Guest Blog Human trafficking is a pervasive issue that often operates under the radar in everyday settings. Despite its prevalence, this crime can be difficult to detect without trained eyes to recognize the signs. This is where everyday heroes, such as hospitality employees, can play a vital role in identifying and reporting suspicious activity that could potentially save lives. The Role of Everyday Workers Employees in hotels and restaurants are often on the front lines of human trafficking activity. Traffickers frequently exploit these venues for their illegal operations, using them as a means to exploit victims. This is why it is crucial that hospitality employees to be trained in recognizing the red flags of human trafficking, such as unusual behavior or signs of physical abuse. Training and Awareness Businesses Ending Slavery and Trafficking (BEST) is joining forces with the Oregon Restaurant and Lodging Association (ORLA) to provide free human trafficking prevention training for ORLA’s members, with the goal of preventing the exploitation of vulnerable people in Oregon. BEST’s Inhospitable to Human Trafficking training is a 30-minute, video-based, online training available in Spanish and English. It can be taken individually on a computer, or in a group setting, and employees can receive a certificate of completion after taking the course. This free training can be easily accessed through the ORLA membership website. Providing training for employees who work directly with the general public on how to identify and respond to potential cases of human trafficking is key to combating this crime. Education and awareness can empower individuals to take action when they suspect something is amiss. By arming employees with the knowledge and resources they need to be able to spot a potential human trafficking situation, it increases the chances of identifying victims so they can get the help they need, and it helps bring traffickers to justice. Protecting Employees & Guests When human trafficking happens on business properties, it’s dangerous for victims, employees, and other guests. It can also impact guests’ assessment of the safety of the location and damage brand reputation. Because of ORLA’s commitment to train its members, more human trafficking victims can be identified and connected with the supportive services they need to begin to rebuild their lives after trafficking. This approach to preventing human trafficking is essential, because when employees learn the signs, they can help create a culture where everyone steps up and steps in to make a difference in improving the safety for all guests. Conclusion Front line employees are essential in the fight against human trafficking. By training and empowering more employees across Oregon to be able to recognize the signs of this crime, BEST and ORLA are striving to create a network of vigilant individuals who are committed to protecting the vulnerable. It is imperative that everyone in the hospitality industry helps take some responsibility for combatting human trafficking. By working together, everyday heroes can help create a safer world. | Katie Amodei Katie Amodei is the Communications Director for the Seattle-based nonprofit, Businesses Ending Slavery and Trafficking (BEST). Their goal is to equip employers to make a difference in the fight against human trafficking through awareness raising, consultation, training, and providing employment opportunities for survivors. This guest blog was submitted by Businesses Ending Slavery and Trafficking (BEST). For more information on guest blog opportunities, contact Marla McColly, Business Development Director, Oregon Restaurant & Lodging Association.
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US dairy cows upcycle over 300 million pounds of food waste every day. Much of the food waste going to cows comes from food byproducts that humans can’t eat but cows can - like potato peels and onions from a local potato chip maker, brewery grains and yeast from beer breweries, spent grains from local bakeries, hazelnut hulls, cotton seed from making clothing, biodiesel byproducts, and more. Dairy cows possess a superpower: an incredible 4-chambered stomach and digestive system that allows them to eat these various byproducts as part of their regular diet. If these byproducts weren’t upcycled on dairy farms, they would pile up at factories or end up in landfills. In fact, it’s estimated that large manufacturers divert around 77% of their food byproducts to animal feed. Diverting these byproducts from landfills reduces methane and greenhouse gases and frees up the land for other uses - like crops for human food production. Animal nutritionists work with farmers to create specialized diets for cows at every life stage, and work to incorporate a variety of food byproducts that cows will enjoy. Not only are these byproducts highly nutritious for cows, but feeding cows has emission reduction benefits too. The carbon emissions of sending byproducts to a landfill for incineration is 60% greater than feeding them to cows. By taking on byproducts, dairy farms help other industries operate smoothly and add value to the local food system. Byproducts make up 30% of the world’s agricultural production. Finding a place to upcycle byproducts is essential to the operations of many businesses and industries. What’s more, sending byproducts to help feed dairy cows is a great way to reduce food waste and certainly helps businesses keep costs down, particularly for the farmers. One example here in Oregon is the innovative partnership between Oregon breweries and dairies. Brewers extract a small amount of sugar from grain during their brewery process; about 85% of brewer waste comes from this process. According to a recent estimate, up to 20 billion lbs. of BSG is produced in the USA each year. Using byproduct grains from brewers can provide beneficial nutrients to dairy cows and help farmers control their feed costs. By working together brewers and dairy farmers can keep their production cycles operating smoothly and prevent substantial byproducts from going to landfills. In Oregon, we have some great examples of farms working collaboratively with food and beverage manufacturers to divert food waste by upcycling byproducts. For example, a local dairy farm receives about over 3,000 gallons of yeast water from a two local breweries each week, which they use to top dress their total mixed rations. It's a substantial byproduct - they have 4 tanks reserved on the property for it. Yeast water contains a little bit of protein, which helps the grains to stick to each other and is nutritionally beneficial for their herds. What’s more, the manure from their farm is used at many of the neighboring vineyards in the area. The delicious dairy foods made here in Oregon come from good milk, derived from healthy and happy cows. It is a wider food industry collaboration to support feeding these cows with nutritious byproducts to help businesses reduce costs, keep food waste low, and support others in the community. | Oregon Dairy and Nutrition Council This guest blog was submitted by the Oregon Dairy and Nutrition Council (ODNC). For more information on guest blog opportunities, contact Marla McColly, Business Development Director, Oregon Restaurant & Lodging Association.
Guest Blog Dining out should be a delightful and worry-free experience, where patrons can savor delicious meals in a safe environment. However, the hospitality industry faces numerous challenges when it comes to maintaining safety standards, ranging from foodborne illnesses to workplace hazards. In this article, we'll delve into key areas of focus for restaurant safety, emphasizing the importance of a proactive approach to mitigate risks and enhance the overall dining experience. 1. Prioritizing Food Safety
2. Operational Excellence
3. Employee Safety and Wellness:
4. Customer Safety:
Restaurant safety is a shared responsibility that requires proactive measures from both operators and customers. By implementing comprehensive safety protocols, providing thorough training, and fostering a culture of safety, restaurants can create an environment where everyone can dine safely and enjoyably. To learn more about how safety impacts your premiums find more at www.gethip.biz. This guest blog was submitted by Risk Strategies Fournier Group. For more information on guest blog opportunities, contact Marla McColly, Business Development Director, Oregon Restaurant & Lodging Association.
Guest Blog Insurance underwriters research your business before issuing a quote or renewing coverage. They find clues about your day-to-day operations in customer reviews, social media profiles, and even the image gallery on your website. Since this analysis can affect your insurance rates, you want to make sure your online presence conveys an accurate story. Here’s what underwriters look for and factors you need to think about: If you say you’re a restaurant, but you’re open until 1 a.m., are you really a bar? Suppose you describe your business as a family restaurant where people of all ages bond through great food and conversation. However, on Yelp, several reviews compliment your cocktails and live entertainment. And your Instagram feed features young adults dancing, a flashing disco ball, and a crowded bar. At the very least, you can expect the underwriter to ask questions to classify your business correctly. Maybe you are a family restaurant until 8 p.m. But after that, you cater to a different target audience that wants to drink and party. The latter scenario is more expensive to insure. What kinds of risks are you taking? An insurance company can deny or cancel coverage if they don’t like what they see online. One establishment featured its ice shot glasses on social media. Fun-loving patrons downed the liquor then smashed their ice “glasses” on the floor, creating a slip hazard. At another place, a bartender stood on top of the bar to toast a patron’s birthday. The restaurant added this celebratory picture to their website. Standing on the counter was not a normal activity in this workplace, but the insurance company didn’t know that. They assumed it was part of the business’s culture, and the worker’s comp carrier spoke up. They didn’t want the risk exposure. Do you comply with laws and regulations? Recently, a bar advertised its “happy hour” on social media with a photo showing “$1 beer all day.” Oregon law prohibits promoting happy hours on social media. Additionally, the beer price and event duration posed underwriting concerns since both factors can contribute to over-consumption of alcohol. In this case, the insurer canceled the bar’s entire insurance package. 7 tips for avoiding an adverse underwriting decision In five minutes, an underwriter is sizing up your business by looking at your online presence. They are asking themselves, “Do I even offer insurance to you? If I let you in the door, will I need to charge you more because I perceive you as riskier?” To position your business in the best possible light with underwriters:
The insurance coverage you need depends on the classification of your business. Are you a bagel bakery or a brew pub? What percentage of your revenue comes from alcohol sales — 0%, 20%, 50%, 80%? If there’s a mismatch between the info on your insurance application and online presence, you risk an adverse underwriting decision. Insurers may decline to quote. Or if you already have coverage, you risk claim denials and the potential for policy cancellation. Take the opportunity to shape your story. Submit a letter or video with background information you want the underwriter to consider. Highlight the steps you’ve taken this year to improve your risk profile. Provide context to help insurers understand your online reputation and business vision. | Rob Hoover Rob Hoover of Risk Strategies Fournier Group manages ORLA’s Hospitality Insurance Program (HIP). Contact him to learn more about online reputation and insurance pricing. This guest blog was submitted by Risk Strategies Fournier Group. For more information on guest blog opportunities, contact Marla McColly, Business Development Director, Oregon Restaurant & Lodging Association.
Guest Blog While millions of well-meaning Americans flock to gyms with a newfound desire to improve their health there is one area of their well-being that is likely still being neglected - cyber health. All around us, our offices, where we shop, and even where we workout – technology is everywhere. It’s a significant part of all our lives and we rely on it moment to moment to get successfully through each day. As our reliance on technology and the internet grows, so does the opportunity for adversaries to use it against us. But, just like working out to improve our physical health and protect against disease, following simple tips from the Cybersecurity and Infrastructure Security Agency (CISA) can improve our online health and protect us from cyberattacks, ransomware, and identify theft. So, in the new year resolve to visit the Cybersecurity and Infrastructure Security Agency (CISA) new campaign – Secure Our World – that offers steps everyone should follow to improve our cyber health. The message that pops up on our phone or computer to update software or install security patches is an example of ways we can improve our cyber health. Here are a few other simple actions we can take to protect our information and stay safe online: Use strong passwords that are long, random, and unique to each account. And use a password manager to generate them and to save them. Enable multifactor authentication on all accounts that offer it. This function sends a text to your phone, or you receive an email to ensure it is, indeed, you accessing the account. Enable this function, particularly for financial, healthcare, social media, and other accounts detailing your personal information. Think before you click really means recognizing email phishing attempts. Be cautious of unsolicited emails, texts, or calls asking you for personal information. Resist the urge to click on these links and don't click on links or open attachments from unknown sources. Update software every time your device prompts you. In fact, enable automatic updates on software so the latest security patches keep devices continuously up to date. The Secure Our World website is a centralized hub for cybersecurity awareness resources. This is where you will find information on securing personal accounts, offering guidance on personal device safety, safe internet browsing practices, social media usage, and protecting personal information online. Secure Our World also includes support and resources for families. It provides guidance on implementing parental controls, fostering safe digital habits, and ensuring a secure online environment for children. Your New Year’s resolution can now include equipping yourself with the knowledge and resources needed to stay safe while online. Happy New Year. | Patrick Massey, Regional Director, Cybersecurity and Infrastructure Security Agency (CISA) This guest blog was submitted by Cybersecurity & Infrastructure Security Agency (CISA). For more information on guest blog opportunities, contact Marla McColly, Business Development Director, Oregon Restaurant & Lodging Association.
Guest Blog If you haven’t read my previous guest blog content, my name is Joseph Hollcraft and I am the Director of IBA’s Oregon Hospitality Industry Transaction Division. In this fifth and final installment in the series, I’m going to discuss best practices around preparing your business for sale as it relates specifically to restaurants, bars, and lodging establishments. Business valuation is a sophisticated and nuanced process. If you’ve spent time researching how to exit your business you’ve likely come across the concept of a “multiplier.” A multiplier is a multiple of SDE, or Seller Discretionary Earnings. SDE is the measure of benefit to ownership generated by a business and includes salary, profit and any expenses run through a business by ownership. However, there are some elements that are benefits to ownership that my valuation process can’t account for. The short version of this concept is this: dollars taken out of the business or put into things like Cost of Goods Sold can’t be examined, and each dollar taken out of the business costs between two and six dollars in final valuation due to the use of multipliers. Below are three cases where business value is lost due to discretionary choices by ownership. The first and most common expression of the above is running personal costs through Cost of Goods Sold. Let’s say you go to Costco to bulk purchase supplies for your company. Unless each purchase is itemized and personal expenses notated, anything you buy and bring home is a cost to the business that ultimately comes out of the bottom line. This could be food for home, necessities like paper towels, or other home goods you or your family might want. If you spend $1,000 a month doing this, that translates into $12,000 a year. This would reduce your company’s valuation by between $24,000 and $72,000, depending on the multiplier. If you spend more than $1,000 a month in this scenario the loss of business value goes up accordingly. The second is hiring family members or other people close to you at a rate above market. If you have a son or daughter who is running your business in the GM position, and you’re paying them $100,000 when the position in your business’s market only commands $65,000, then your business is spending $35,000 it doesn’t have to pay. Caring about the people close to you and giving them an extra boost is a privilege few of us are able to provide. Those business owners that can, often enjoy helping the people around them. The bottom line here is the cost at time of valuation is substantial. As in the above example, $35,000 spent on an employee that doesn’t need to be spent to hire and keep a quality GM translates into $70,000 to $210,000 in business value. This may be worth it to you, but it’s a point to consider. It can also create problems in terms of retention of the individual for the buyer. Would a person stay at a job where they have to take a pay cut? The third example is holding cash rather than running it through the business. No one enjoys paying taxes. One way business owners reduce their tax liability is keeping cash income off the books and taking it home as a benefit to ownership. In businesses that generate substantial cash, even just 10% of gross, the loss in value can be gigantic. I valued a restaurant that was generating approximately $5,000,000 in sales. About 10% of that gross was in cash. Figuring a 12% net profit margin, which is common for restaurants, this 10% of gross in cash equates to $60,000 of net a year, which translates to a loss of between $120,000 and $360,000 in go-to-market price. The business I valued in this example had a profit margin even higher, at around 25%. The owner took almost every dollar of cash out of the business, not reporting it on his P&L. My valuation of this incredibly successful business was approximately $1,200,000. Had the owner left all of the cash in the business, it would have commanded a value closer to $2,000,000. This can be the difference between comfortably retiring for the rest of your life and needing to work again five or ten years down the road. This concludes my five part series on strategies and best practices around an exit from your business. If you haven’t read the previous four blogs posted here on the ORLA website, it may be beneficial for you to review them. Should you desire a professional opinion of the value of your business, feel free to contact me via email or at (503)739-4880. All conversations will be held in strict confidence. You can also review IBA’s website at www.ibainc.com which houses a veritable treasure trove of information on preparing your business for sale and what professional mergers and acquisitions specialists such as myself can do for our clients. Thank you for your time and attention. I look forward to hearing from you should the need arise, and I hope you and yours had a wonderful holiday season. | Joseph Hollcraft, IBA This guest blog was submitted by International Business Associates (IBA). For more information on guest blog opportunities, contact Marla McColly, Business Development Director, Oregon Restaurant & Lodging Association.
Guest Blog The successful construction of a home requires skilled contributions from multiple building industry professionals including architects, roofers, drywall installers, plumbers, & electricians. Select the wrong parties and the project will have delays, cost overruns, and potentially an unhappy homeowner. The sale of a business is a sophisticated, nuanced process requiring comprehensive knowledge, experience, and superior skill. It is a process that most entrepreneurs are unfamiliar with when they begin to think about retirement. Intelligent entrepreneurs surround themselves with high caliber professionals. The following are the important advisors to place on your team if you are looking to sell a business for a strong market value in a transaction employing best practices. The quarterback of a business sale team is the business broker. The professional services provided by an intermediary in selling a company require extensive experience and knowledge to perform at a high level. The first service provided is the valuation of a business. Valuing a business is a complicated, subjective science incorporating accounting, finance, and investment principles on one side of the spectrum and expertise similar to assessing art on the other. The ability to price a business incorporating knowledge of the 2023 buyer climate and create a competitive marketplace for parties to acquire a company are two reasons why only a professional intermediary with a resume of success should be engaged. In many cases, only one opportunity for selling in a confidential environment at a premium value exists for an entrepreneur. Potential buyers located, the next step is to facilitate information provision and negotiations in a manner that ensures all relevant elements are addressed and decisions are made from a foundation of knowledge. The top business brokers in the marketplace will work for free being compensated with a percentage of the sale when the transaction is completed. Salespeople requesting retainers convey a lack of confidence in their ability to perform. A business broker selected, they will be joined on the transaction team by the accountant and attorney of the business owner. A similar pairing will exist on the buyer side of the transaction. Roles of the accountant include assessing the valuation, supporting due diligence (Essentially a building inspection of a business), and providing guidance on tax allocation. Attorneys mitigate post transaction liability. An additional professional needed in most deals is a banker. Although at face level a buyer supporting professional, in fact this is a VERY important party to the seller, as the ability to get the deal financed will impact the percentage of cash and price received at closing. Failure to build the right advisory team will likely cost an entrepreneur money in sale price, cash at closing, taxes, or potential deal trailing liabilities. The top business brokerage firms have a significant Rolodex of professional advisors they can introduce to buyers & sellers. | Joseph Hollcraft, IBA Additional information on IBA, an ORLA Allied Partner, can be found at www.ibainc.com. Contact Joseph Hollcraft at 503.739.4880, and Gregory Kovsky, IBA’s President & CEO, at 425.4543052. This guest blog was submitted by International Business Associates (IBA). For more information on guest blog opportunities, contact Marla McColly, Business Development Director, Oregon Restaurant & Lodging Association.
Guest Blog The online holiday shopping season is here, and millions of Americans will be looking for that great deal, but so will hackers looking to take advantage of unsuspecting shoppers. With more than $8.8 billion lost last year to scams and fraud, according to the Federal Trade Commission, it’s important to shop safely while online. Cyber criminals are searching for weaknesses in your devices or internet connections or will attempt to extract personal and financial information through fake websites or charities. The best defense against these threats is awareness. The Cybersecurity & Infrastructure Security Agency (CISA) has some valuable tips on easy things all of us can do to shop more safely this holiday season. CISA, recommends you take these steps all year long, not just during the holidays. Doing this could save you from being an online target of hackers.
And specifically for the holiday season CISA recommends:
For more information on CISA’s safe online holiday shopping tips visit our website at cisa.gov/shop-safely. This guest blog was submitted by Cybersecurity & Infrastructure Security Agency (CISA). For more information on guest blog opportunities, contact Marla McColly, Business Development Director, Oregon Restaurant & Lodging Association.
Guest Blog As owners of successful hospitality businesses approach retirement, questions of legacy, succession, and financial planning loom large. For many entrepreneurs, funding their golden years requires selling the company and transitioning the proceeds from the sale into passive income generating assets. Selling a privately held company or family business is a sophisticated, nuanced process. The following elements are commonly addressed during negotiations in a business sale transaction. Price - The sale price of a business is a reflection of the company’s market value determined in good faith negotiations between equally motivated parties. The final negotiated value will be impacted by the economic environment, the ability to create a robust, competitive marketplace in a confidential environment, and justification of the value to prospective buyers and their professional advisors. Terms - Flexibility in deal structure is key to maximizing business value. Elements of seller financing and deferred compensation can significantly increase the total purchase price and deliver tax savings. A performance-based mechanism to supplement the fixed price can capture market share, intellectual property potential, and anticipated revenue growth from executive, strategic initiatives with appropriate risk allocation between the parties. Financing part of the purchase price for a qualified buyer can reduce the seller’s tax liability and open the door to more cash at closing if it supports bank acquisition capital. Seller’s Assistance - A period of transition training to ensure a smooth transfer of operations is customarily part of a transaction. The level of post-sale engagement depends on the complexity of the business model and the successor’s needs. Support can include in-person training, virtual consulting, employment contracts, and retained equity. Covenant-Not-To-Compete - An intelligently structured non-competition agreement will protect the buyer’s investment while preserving the seller’s ability to engage in areas not deemed to be in competition with the sold business. Tax Allocation - In an asset sale, the purchase price is commonly allocated among goodwill, equipment, inventory, non-competition, and consulting agreements. Stock sales still have the potential for amortized assets and tax strategy. The input of tax professionals is advised to determine the best tax allocation of assets and ensure mutually beneficial tax treatment for both parties. Timeline - Establishing a targeted closing date creates a strategic roadmap for measurable progress toward deal completion. Important key target dates to establish include satisfaction of due diligence and feasibility contingencies, legal documentation finalization, securing of financing, and receiving any necessary licensing or third-party consents. There is no substitute for knowledge, experience, and superior skill in negotiating the sale of a privately held company or family business. IBA has sold more businesses in the Pacific Northwest than any other firm. All communication with IBA is held in strict confidence. 100% of IBA’s fees are performance based. Additional information on IBA can be found at www.ibainc.com. Joseph Hollcraft, an ORLA Allied Partner and this blog’s author, can be reached at 503-739-4880; or Gregory Kovsky, IBA’s President & CEO, can be reached at (425) 454-3052, Joseph@ibainc.com, gregory@ibainc.com, or www.ibainc.com/2023. This guest blog was submitted by International Business Associates (IBA). For more information on guest blog opportunities, contact Marla McColly, Business Development Director, Oregon Restaurant & Lodging Association.
Guest Blog Oregon Dairy and Nutrition Council works on behalf of dairy farm families to build trust and demand for local dairy foods. Oregon is An Agricultural Wonderland Throughout the state of Oregon, a thriving food and drink industry means that locally made foods are in abundance. More than 220 high-quality crops are grown here, placing Oregon 6th in the U.S. for crop diversity. With our rich volcanic soil, clean mountain air, pure spring water and diverse climate zones, Oregon is not only an exceptional place to grow crops, but a place where people (and dairy cows) thrive. Happy, Responsibly Raised Cows Make Great Milk! The Oregon dairy community’s unwavering eye on sustainability and social responsibility has resulted in an impressive 11 US Dairy Sustainability awards for the region in the last 10 years. Dairy farmers are committed to being stewards of the land, and focus on upcycling byproducts, particularly to maintain good nutrition for their herds, reducing water usage, and adapting new game-changing technologies. As of 2023, Oregon has 156 dairy farm families caring for more than 126,000 cows. Dairy farms across the state vary in size, from just a few milking cows, to as many as 30,000. Oregon dairy farms of all sizes ensure the high quality of the milk they produce by raising healthy, happy cows. Oregon milk consistently ranks in the nation’s top five for quality, which we can enjoy in the premium and award-winning dairy products that are crafted here. From Great Milk, Comes Exceptional Cheese You can find every type of artisan cheese within the borders of our state…from brie to blue, and fromage blanc to aged cheddar. Our award-winning, premium cheeses stand out in both national and international competitions. Oregon artisan, farmstead, and specialty cheesemakers took home 18 medals, including blue ribbons in six categories, at the American Cheese Society’s (ACS) 2023 Annual Cheese Competition. Oregon is also home to the 2019 World’s Best Cheese winner – Rogue River Blue by Rogue Creamery, the first and only USA cheese to ever win the coveted top honor at the World Cheese Awards. Dairy IS Oregon Our local dairy farms and cheesemakers in Oregon are an essential part of our communities. These businesses provide jobs, support community programs, give back to local organizations and are champions of Oregon as a destination to live, work and play. By choosing Oregon, you’re not just supporting our farming families and passionate artisans, you’re getting some of the best cheeses being made today. Eat More Cheese! Oregon made cheeses elevate any cheeseboard, salad, burger, breakfast sandwich, and more with a bit of wild landscape and handcrafted love in every delicious bite. You can discover Oregon cheese at your local farmer’s market, independent and natural grocers, or by visiting one of the 15 cow’s milk creameries in the state. Learn even more about these unique cheese makers and the delicious and diverse range of products on offer by visiting Oregoncheeseguild.org/cheesemakers. This guest blog was submitted by the Oregon Dairy and Nutrition Council (ODNC). For more information on guest blog opportunities, contact Marla McColly, Business Development Director, Oregon Restaurant & Lodging Association.
Guest Blog The sale of a privately held company or family business has a unique marketing challenge. On one level, similar to selling any product, it is in the seller’s best interest to have the maximum number of potential buyers know the business is for sale and to engage with as many parties as possible. The market dynamic principles of supply and demand convey that the higher the demand and the lower the supply, the better the price a product can be sold. In the case of a business sale, the supply is one and the opportunity to purchase is unique for a specific time & place and may not be available again for a long time. Now the challenge. In the sale of a business, most owners desire to have no one know that their company is for sale prior to the transaction being completed. This desire (or should I say fear that keeps entrepreneurs up at night) is motivated by concern about how the information will be received by customers, employees, and vendors. The last thing an entrepreneur wants is to have staff turnover, customers revisit an existing relationship, or competitors take advantage of the situation. The good news is that business buyers seeking an acquisition are aligned with sellers in wanting the information a business is for sale to be held in strict confidence. This is motivated by a desire to retain customers, employees, and vendor relationships. Reconciliation of these directly conflicting elements requires knowledge, experience, and skill. Knowledge is employed in the development of a comprehensive marketing program that attracts the maximum number of qualified parties while maintaining an environment of strict confidence. It is beneficial to engage a business brokerage firm with experience selling companies in the relevant industry and geographic area, as they may already know potential buyers. It is prudent to use a mergers & acquisitions intermediary with processes and legal documentation in place that will allow only financially qualified parties with sincere interest in an acquisition to learn a company is for sale. Most of all it is critical to hire a broker with the skill to navigate the process from justification of the maximum possible sale price to confidential, competitive market creation with the ability to successfully negotiate the best possible outcome and facilitate the deal to closing with the least amount of transactional turbulence. There is no substitute for knowledge, experience, and skill in a professional advisor. Seek the best and you will get the best outcome. IBA has successfully sold more companies in the Pacific Northwest than any other company. We are licensed to sell real estate in Washington & Oregon. All communication with is held in strict confidence. 100% of IBA’s fees are performance based. Additional information on IBA can be found at www.ibainc.com. Joseph Hollcraft, an ORLA Allied Partner and this blog’s author, can be reached at 503-739-4880; or Gregory Kovsky, IBA’s President & CEO, can be reached at (425) 454-3052, Joseph@ibainc.com, gregory@ibainc.com, or www.ibainc.com/2023. This guest blog was submitted by IBA. For more information on guest blog opportunities, contact Marla McColly, Business Development Director, Oregon Restaurant & Lodging Association.
Guest Blog The hospitality industry is a dynamic and ever-evolving sector, facing a unique set of challenges and opportunities. In recent years, the industry has been impacted by various factors, including economic uncertainty, natural disasters, and cyber threats. These factors have contributed to an increase in insurance premiums and a tightening of underwriting guidelines, making it more difficult for hospitality businesses to obtain and maintain adequate coverage. Key Factors Affecting Hospitality Insurance There are several key factors that are affecting hospitality insurance in 2023 and 2024, including:
In addition to the general challenges facing the hospitality industry, there are also some specific insurance issues that businesses in this sector need to be aware of:
By understanding and addressing these specific insurance issues, hospitality businesses can better protect themselves from potential risks and ensure their long-term success. Key takeaways for hospitality businesses:
Recommendations for Building Resilience in 2023 & 2024 In order to build resilience in 2023 and 2024, hospitality businesses should take the following steps:
This guest blog was submitted by Risk Strategies Fournier Group. For more information on guest blog opportunities, contact Marla McColly, Business Development Director, Oregon Restaurant & Lodging Association.
Establishing the estimated market value of a privately held company or family business is a sophisticated, nuanced process requiring significant knowledge & experience. Business value is built on four pillars: Market Demand, Profitability, Potential, & Infrastructure. Market Demand’s influence on value is calibrated by industry, geography, economic conditions, & financing availability. The role of profitability is straight forward. The more profitable a company the higher the value and the larger the dial for turning up Market Demand. Profitability that is sustainable or growing is the most attractive in the business opportunity marketplace. No one purchases a company desiring to exactly replicate what it did yesterday. All business buyers acquire companies seeking to see how it will perform under their ownership. The larger the opportunity for growth and enhanced efficiency the more potential a business has and the higher the value. Infrastructure value can be found in a spectrum of assets ranging from employees to physical & online locations to intellectual property and from customers to equipment to suppliers and inventory. Only a mergers & acquisitions intermediary firm has the knowledge to incorporate present market demand into a valuation process. Business appraisers & CPA’s use the data generated by business brokers for their market comparables and lack the comprehensive knowledge of the dealmakers learned from working in the field facilitating transactions. IBA offers complimentary opinions of business market value to potential customers interested in selling their companies. The service is free as a method of providing entrepreneurs an opportunity to assess our knowledge, experience, and customer service without contractual obligation. All information shared with IBA is held in strict confidence. IBA traditionally sells businesses within 10% of our suggested market value. IBA has the ability to justify our values to buyers, accountants, banks, investors, and lawyers. The true value of a business is what a willing buyer & seller will agree in an arm’s length transaction. The value of having a highly skilled, knowledgeable, & experienced intermediary convey the value proposition should not be underestimated. IBA has consistently achieved timely sales of privately held companies and family businesses in Washington, Oregon, Alaska, and Idaho for strong market values since 1975 out of our physical offices in Bellevue, Spokane, & Portland. Additional information on IBA can be found at www.ibainc.com. Joseph Hollcraft, an ORLA Allied Partner and this blog’s author, can be reached at 503-739-4880; or Gregory Kovsky, IBA’s President & CEO, can be reached at (425) 454-3052, Joseph@ibainc.com, gregory@ibainc.com, or www.ibainc.com/2023. This guest blog was submitted by IBA. For more information on guest blog opportunities, contact Marla McColly, Business Development Director, Oregon Restaurant & Lodging Association.
Key performance indicators (KPIs) are foundational to most jobs. These useful measurements help companies understand progress over time. But beyond revenue growth and profit margin, there’s one KPI some managers overlook: joy. How happy are your employees? Perhaps more importantly, what’s your own level of joy in your job? At Dell Technologies and at Renegade Global—a consulting practice that helps people invest in their personal brand and growth—we see the people in our businesses, not just the professionals. 1. Make play nonnegotiable. Play goes hand in hand with curiosity, which in turn fuels engagement. When you prioritize play, you combat opposing feelings of burnout and even depression. 2. Diversify your sources of happiness. There are different kinds of happiness: “rock star,” which you might experience after a big win; “flow,” which happens when you’re caught up in something you enjoy; and “higher purpose,” which occurs when you focus on something bigger than yourself. You need all three. 3. Avoid the three Ps. Of the common pitfalls people tend to fall into at work, three Ps top the list: perfectionism (seeking an unattainable standard), people-pleasing (never putting yourself first) and personalizing (making things “about you”). Be sure to give yourself—and others—the grace to make mistakes. Prioritize your own needs and remember that not everything is personal. 4. Overcome difficult conversations. Effective communication is an art form. When you have a difficult conversation ahead, consider the following steps:
At Dell and within Renegade Global, we have seen great results with weekly check-ins, asking questions such as, Which activities did I love? Which ones did I loathe? What are my priorities? What help do others need from me? With these tips in mind, you can transcend clichés about work-life balance and make joy a core KPI of your job. Want to read more stories like this? Check out Realize magazine. This guest blog was submitted by Dell Technologies. For more information on guest blog opportunities, contact Marla McColly, Business Development Director, Oregon Restaurant & Lodging Association.
Over a coffee meeting to introduce myself to the CEO of the Boys & Girls Clubs of Bend last winter, a casual conversation led to brainstorming what would become a nine-week summer pilot project called Workforce Wednesday. As the director of Workforce Development for Visit Central Oregon, one of my focus areas is working to cultivate the region’s talent pipeline. A challenge that goes hand-in-hand with this is the misperception that tourism jobs are low-pay, high-churn roles that aren’t viable career paths. So, you can imagine the excitement when presented with an opportunity to help young people understand this is not the case. #WorkforceWednesday is a program geared toward middle school-aged youth that gives them opportunities to learn about career paths in the tourism industry. For Visit Central Oregon the goal of this project was to work with the Boys & Girls Clubs of Bend to design field trips to tourism-related businesses that would be fun, educational, hands-on and memorable. We wanted the experiences to be unexpected — to highlight diverse careers that would spark interest. I’m sure the first thing some might think is: Why middle-schoolers? Admittedly, this age group is largely not of a legal age to enter the workforce. But they are the prime age to inspire. As an emerging workforce, this cohort can develop an understanding of how their passions and interests can lead to jobs and career paths they’d never considered. This inspiration can stay with them as they continue through school, think about their first summer job, and make decisions about college and beyond. The program included a trip to Drake Park with the Visit Bend team to learn about digital marketing and the economic value of tourism. The kids got to participate in a photo shoot — everything from style and layout, to finding the perfect shot and posting an Instagram reel. Next up was a trip to Humm Kombucha to learn all about the art of brewing craft beverages (that they are old enough to drink!). Kids witnessed everything that goes into the kombucha-making process and got to help create their own signature batch. The following week, the group met with Cog Wild, which gave participants an overview of tour operator/outfitter business operations, and the importance of developing and maintaining local trail systems, followed by a mountain bike ride. From there, the kids met with REI, Saxon’s Fine Jewelers, The Stacks Art Studios & Gallery, and Regal Cinemas in the Old Mill District to learn about high-volume business operations in one of the most popular shopping areas in Bend. Last but not least, the students made their way to Santiam Snolab, where they were immersed in the business operations of a local maker, and got to collaboratively design and build their own custom snowboard and set of downhill skis. "Programs like this are a tangible way to start educating and inspiring future workforce that will be critical to sustaining a thriving tourism industry." Bess Goggins, the CEO of Boys & Girls Clubs of Bend observed incredible engagement from the kids — as the summer went on, the kids’ genuine curiosity and interest increased exponentially. Kids that would have otherwise stayed home were opting into the program to participate. One parent noted that their child “did so many fun things that we would never have been able to do at home” and that they had “one of the best summers to date and came home every week with a positive experience to share.” The program was such an incredible success that there are conversations to expand it into the school year across other industries and sectors. Talks are also underway to continue the #WorkforceWednesday program next summer with a hospitality and tourism lens once more. I especially love the #WorkforceWednesday program because it is something that other destinations can replicate. Workforce development can be daunting — but programs like this are a tangible way to start educating and inspiring future workforce that will be critical to sustaining a thriving tourism industry. | Jaime Eder This guest blog was submitted by Jaime Eder, Director, Workforce Development and Community Engagement for Visit Central Oregon, and originally published in The Bend Bulletin.
App-based tools are helping divert food waste and provide meals to the hungry. Do you ever wonder what happens to the leftover supermarket rotisserie chickens at the end of the day? Or all those everything bagels in the case at closing time? Or the extra macaroni and cheese, collard greens, cornbread and other sides at your local barbecue chain? Unfortunately, much of this perfectly edible food probably goes to waste; more than one-third of the food produced in the U.S. is not consumed, according to the EPA’s 2021 report, Farm to Kitchen: The Environmental Impacts of U.S. Food Waste. The environmental impact of one year of food waste is staggering—it uses the same water and energy as 50 million homes and emits the equivalent level of greenhouse gases as those generated by 42 coal-fired plants. Meanwhile, nearly 34 million people—including 5 million children—are grappling with food insecurity in the U.S. But there are multiple players deploying technology to help disrupt this waste chain. These tech-powered companies and nonprofit groups are using app-based tools that connect to virtual dashboards to match unwanted food and grocery items from restaurants, corporate cafeterias and supermarkets with community-based groups that feed the hungry. The dashboard allows a restaurant owner, chef or manager to upload what food is available, along with delivery or cooking instructions and shelf life, and a nonprofit partner to claim the item. Depending on the service, the app can dispatch a third-party service driver or volunteer within a specified time frame to ensure the food is viable after delivery. “Much food waste occurs because of confusion over labeling,” says Suzannah Paul, director of Philly Food Rescue (PFR), which is part of the Share Food Program, a regional food bank and hunger relief organization. “Best-by, use-by, sell-by, and even marked expiration dates are not true safety indicators or real expiration dates, except in the case of infant formula.” The USDA and EPA have set an ambitious goal of slashing food waste by 50% by 2030. Reducing or eliminating food waste “presents opportunities to increase food security, foster productivity and economic efficiency, promote resource and energy conservation, and address climate change,” according to the EPA. Can this technology remove a key barrier to alleviating this food waste crisis? Serving a tech solution Founded by entrepreneur Jasmine Crowe in 2017, Goodr takes a holistic view of waste—it partners with major food service companies like Compass, Aramark, and Sodexo, hotel chains like IHG, and other food industry clients in more than 30 cities around the country to manage and process their food waste—whether through donations and other “hunger relief solutions,” or services like waste management and organic composting. For the Atlanta-based B Corp., dealing with food waste is a matter of “logistics,” according to Ryan Moore, senior partnerships manager. Their tier of services “allows for businesses to get rid of any food scraps—things they prepare food with, anything that’s leftover and not eaten on a plate,” Moore says. A recent transport coordinated by Goodr consisted of 17 trays of cooked chicken, pork, potatoes and green beans. Using its dashboard-based system, Goodr was able to quickly get the food to a nonprofit behavioral healthcare agency called Homeward Bound in Dallas. With the organization providing 70 to 100 people with three meals a day, the timing couldn’t have been better. “Having the meals already cooked was great because, like everyone else, we are having trouble finding staff,” says Christine Wicker, Homeward Bound’s director of development. Data: the crucial ingredient Describing its mission as “for profit, for good,” Goodr says it has been able to scale quickly because it’s a business. It claims a community and environmental impact of facilitating 30 million meals, diverting 3 million pounds of food from landfills and preventing 6.2 million carbon emissions. Businesses pay a monthly fee based on the number of scheduled pickups and can claim a tax deduction for food they donate. In 2022, Goodr nearly tripled its staff, going from 13 workers in July to about 35 by the end of the year. “We would not be able to do this without being in the time of technology,” Moore says. “The popularity of Uber and other apps allows Goodr to do this. We leverage ride-share companies to do what we do—the majority of our pickups are drivers that are already in transit. There’s no middleman, so we can make sure the food doesn’t end up in the landfill.” For Goodr, data analysis plays a key role not only in matching available food with the right recipient but also in helping donors better understand the demand for their products or menu items—and how to reduce waste. Several years ago, for example, one of Goodr’s bagel clients was tossing 200 bagels a day. After just three months of tracking, they were able to cut the amount by more than half. Another customer operated a corporate cafeteria and, through the metrics on their Goodr dashboard, determined that three of their five most-wasted products featured pork. As a result, they retooled the menu to better reflect their audience preferences. For overburdened chefs, the ability to donate unused food has provided an incentive for them to track their data more carefully. “Our goal is to show clients, ‘You’re wasting this much food, and this is what you’re wasting,'” Moore says. “It’s going to allow them to be better at not wasting food. If you add an incentive that you can donate it to local nonprofits and help your community, that’s a whole new incentive for companies that have tried tracking in the past where it hasn’t worked.” Protections for good Samaritans For some restaurants and food businesses, liability concerns may prevent them from donating food—if someone gets sick, they don’t want to be held responsible, or so the conventional wisdom goes. However, several federal laws shield them from liability. The 1996 Bill Emerson Good Samaritan Act offers federal protection from liability of any food donated for free “in good faith.” A newly enacted law—the Food Donation Improvement Act—further exempts from liability donors who provide food at a so-called “good Samaritan reduced price” (basically at cost) and also allows them to donate directly to “food insecure individuals” rather than have to use a nonprofit partner. According to Paul, the Good Samaritan Act “never had any agency offering clarification, so some brands do feel safer throwing good food away. And unfortunately, it’s sometimes given as an excuse for inaction,” Paul says. To err on the safe side, Philly Food Rescue recommends that all rescued food be distributed, eaten or frozen within 24 hours. “We do quality checks on items in our warehouse and set expectations with food donors about what kinds of donations are appropriate to send out to our partners,” Paul says. “Our partners know the food is still good to eat and won’t be good for long.” But the best outcome is to avoid food waste as much as possible. While food stores and businesses have their own metrics to follow for generating—and managing—waste, the consumer plays a role, too. That should be food for thought the next time you tap your pizza delivery app for a two-for-one pizza delivery deal when you might only need one pie, RSVP to a business luncheon but don’t stay to eat, or pass over a gallon of milk at the supermarket with a short “sell by” date. | By Robert DiGiacomo This guest blog was submitted by Dell Technologies. For more information on guest blog opportunities, contact Marla McColly, Business Development Director, Oregon Restaurant & Lodging Association.
Learn from local chefs and managers how to set up a successful compost program All businesses and commercial kitchens generating more than one 60-gallon roll cart of food scraps per week in the Metro region will be required to separate their food scraps and keep them out of the landfill by composting, donation or upstream prevention practices. How to set up compost Hear how The Old Spaghetti Factory set up food scrap collection. General Manager Gary Shepard shares how they:
He explained that he was hesitant at first but found they were able to compost without any inconvenience or additional labor, and that staff supported it almost instantly. Watch the 2.5 min video* Compost tips from an experienced Chef Providence Milwaukie Hospital’s Grapevine Café has been composting since 2012. Executive Chef Martin Pedersen shares how they:
Chef Pedersen also talks about the benefits and positive staff and customer response. Watch the 2 minute video* Find opportunities to trim waste Embassy Suites by Hilton Washington Square hotel found that separating food scraps helped them find ways to reduce food waste and save thousands of dollars a month. General Manager Scott Youngblood and Executive Chef Scott Hensley share how they:
Once you start collecting food waste, you can more easily tell what is frequently wasted each day. Knowing this might help you reduce how much of certain foods you order and prepare, which can lower your purchasing costs and cut prep time. Visit FoodWasteStopsWithMe.org to learn more about the food scraps separation policy and/or to request assistance from a food waste reduction specialist. SHARE YOUR STORY! Does your business have a successful donation program going? Share your experience to inspire other companies to follow in your footsteps! Click here and submit your Success Story - we can’t wait to hear from you! Food Waste Stops with Me is a collaboration between Metro, the Oregon Restaurant & Lodging Association, the Oregon Department of Environmental Quality, and city and county governments to help food service businesses reduce food waste. *All videos have Closed Captions/Subtitles option for the following languages: Spanish, Vietnamese, Simplified Chinese, Russian and English Guest Blog The leisure and hospitality industry is one of the largest employer pools in the country, employing over 16 million people nationwide. While a lot of progress has been made in this industry to push the talents of those with disabilities, obstacles still exist. Unfortunately, one of the greatest barriers is employers’ assumptions that people with disabilities may not be able to perform certain tasks due to their conditions. This misconception deprives the industry of great talent while denying countless people the chance to pursue fulfilling work. Here are some tips to learn how you can create opportunities for people with disabilities as an employer. Know Your Responsibilities as an Employer The Americans with Disabilities Act (ADA) is crucial to promoting an inclusive and accessible workplace, making it unlawful for employers to discriminate against a qualified individual who has a disability. Ensure all aspects of employment are fully accessible, including recruitment, hiring, and training. As an employer, you must engage in an interactive discussion with your employees or applicants to identify and provide reasonable accommodations, making sure those with disabilities can fully participate in your workplace. Don’t assume a candidate cannot perform the requirements of the job due to their disability. By adhering to the ADA’s requirements, you can ensure compliance with state and federal regulations. Ensure Accessibility Through the Hiring Process Ensuring compliance with the ADA also requires that your hiring process is accessible to those with disabilities. Embracing online applications is a pivotal move in this direction. By giving your applicants the option to apply online, you’ll break down physical barriers for candidates. Online applications can be tailored to accommodate various accessibility needs, such as screen readers, magnification tools, and keyboard navigation for individuals with visual impairments or mobility limitations. Keep in mind that your online applicants will probably want a PDF filler instead of having to print, fill out, and scan paper documents. Make your job applications available as fillable PDFs that your applicants can fill out and sign online! Encourage Professional Advancement According to JobSkills.org, encouraging your employees with disabilities to pursue professional advancement is a win-win strategy that can unlock the full potential of your team. For example, if you run a large chain with an IT department, empowering your employees to pursue an education in technology can ensure a highly-skilled and diverse IT team. With your support and mentorship, your employees can take steps for an online computer science degree, acquiring skills and knowledge they will bring back to your business. Furthermore, offering such opportunities signals to all employees that the company values their growth and is dedicated to building a workforce that reflects the richness of diverse talents and perspectives. Align Roles with Individual Strengths When you hire someone with a disability, try to align their roles with their unique strengths rather than focusing on the limitations of their disability. For example, individuals with great interpersonal skills may thrive in guest services, front desk positions, or concierge roles. In the realm of housekeeping, employees with physical disabilities can be valuable members of the housekeeping staff, contributing to the maintenance and cleanliness of your establishment. For food and beverage roles, identify specific positions that align with the individual’s abilities, such as hosting, taking orders, preparing food, or bussing tables. Be sure to prioritize accessibility across all roles by providing the tools and equipment your staff need to do their jobs effectively. For those with hearing or vision challenges, the right software will ensure these employees can complete work on the computer. By recognizing and leveraging the unique strengths of employees with disabilities, and making reasonable accommodations wherever possible, you can create a diverse work environment with a low barrier to entry. As the leisure and hospitality industry evolves, so must our approach to creating opportunities for people with disabilities. By increasing accessibility through the hiring process, like making applications available online, encouraging the professional development of our staff, and matching employees with roles in which they will thrive, we can maximize the potential of our workforce while unleashing a range of diverse skills and perspectives. | Martin Block Guest Blog | Food Waste Stops with Me As a food service business, you have the power to create a positive impact in your community by donating your excess edible food to local food banks and pantries. Not only does this provide much-needed nourishment to your hungry neighbors, but it also comes with many benefits for your business. In this blog post, we'll explore the advantages of donating your surplus food and how you can establish a program with the help of local government staff. Support from Local Government Setting up a food donation program is a straightforward process, especially when you have the support of local government staff. They can provide technical assistance with donation dos and don’ts, best practices for success and connect you with food banks and pantries in your area, ensuring that your excess edible food reaches those who need it most. By working together, you engage employees to create a strong network of support that uplifts your neighborhood and builds meaningful connections. Liability Protection and Tax Incentives Potential liability issues are among the leading concerns for businesses considering donating their food. Federal and state laws protect you from liability when you donate food in good faith that you believe to be safe and edible (Bill Emerson Food Donation Act and Oregon Good Samaritan Law). Additionally, your business may be eligible for tax incentives provided by the federal government, further reducing any financial burden and encouraging participation in food rescue programs. Prevent Waste, Benefit the Environment The hospitality industry generates a significant amount of food waste. By taking proactive measures to prevent avoidable waste by donating your excess abundance, you contribute to a healthier environment. Not only can this act of kindness save you money on disposal fees, but it also promotes goodwill for your business. Embracing sustainable practices like sharing extra food and ensuring it is not unnecessarily wasted showcases your commitment to making a difference in your region. Enhancing Your Reputation and Community Engagement Not only is donating food a responsible and compassionate choice, but it also boosts your business's reputation. When your customers see your dedication to giving back, they view your establishment as one that cares about its most vulnerable community members. This supportive act can increase customer loyalty, improve employee satisfaction and influence others in your industry to follow your lead. Launch your food donation program today- it’s easy and rewarding! Visit FoodWasteStopsWithMe.org to learn more or to request assistance from a local food waste reduction specialist. SHARE YOUR STORY! Does your business have a successful donation program going? Share your experience to inspire other companies to follow in your footsteps! Click here and submit your Success Story- we can’t wait to hear from you! Food Waste Stops with Me is a collaboration between Metro, the Oregon Restaurant & Lodging Association, the Oregon Department of Environmental Quality, and city and county governments to help food service businesses reduce food waste. This guest blog was submitted by Food Waste Stops with Me. For more information on guest blog opportunities, contact Marla McColly, Business Development Director, Oregon Restaurant & Lodging Association.
A recent study by BMI and NRG (National Research Group) confirms that music positively impacts the way consumers interact with local eating and drinking establishments. According to the findings, bars and restaurants that feature live music have customers who eat, drink and spend more when listening to music they enjoy, resulting in higher revenues for many business owners. Out of the 1,000 nationally represented U.S. consumers (1) surveyed across age demographics 21+, atmosphere and music are a big part of what keeps them returning to the establishments that they frequent. When taking a closer look at the data, specifically the responses of Millennials, music is the second most important feature they consider when selecting a bar or restaurant. In fact, it’s something they actively seek with more than half of respondents reporting that they often check the establishment’s website to see if they have live music before choosing where to go. Music not only drives consumer traffic, but it also has the potential to increase revenue. The survey found that nearly 80% would stay longer if good music was playing, with close to 60% stating that they would buy more food and drinks to continue listening to music that they enjoy. That stat is even higher for Millennials at 70%. Other findings show that music makes memories, and it has the potential to make or break the customer experience. Eighty-six percent of all those surveyed said that good music at a bar or restaurant creates a more memorable experience, with 89% of Millennials agreeing. Across the board, the younger generations show that music is an important part of the dining experience, with 84% of Gen Z and Millennials noting they are more likely to stay at a bar or restaurant with good music. If the music isn’t right, however, one out of two patrons said they would leave an establishment. Live music also has very tangible benefits for consumers and businesses by creating ambiance and bringing people together while helping bars and restaurant owners differentiate themselves from competitors. Eighty-two percent said that their experience is more enjoyable with live music and noted that the type of music played tells a lot about the establishment, including helping to establish its brand. People were also more likely to wait for a table and grab a drink at the bar if live music was playing to keep them entertained with 81% of those surveyed saying they’d wait 20 minutes. That number rose to 87% when you just look at how Millennials responded, and 80% of that demographic would also pay for a two-drink minimum to hear live music. In addition to consumers, restaurant owners and managers were also interviewed, sharing that they saw a clear boost in revenue on the nights that featured live music. An owner with breweries in Colorado and Utah confirmed that customers stay longer and spend more money when a band or DJ performs, commenting, “check averages tend to go up 5-10% … and revenues have jumped almost 25% on the nights that we have live music.” The owner of a family Italian restaurant in Atlanta, GA agreed, noting, “Without the [live] music we didn’t have the linger time, we would close sometimes at nine o’clock. With the live music, we could push one o’clock in a bedroom community. There were more liquor sales, and that’s a 75% profit margin.” See infographic below, and for the complete survey, click here. (1) A quantitative online survey among 1,000 nationally representative people age 21+ who regularly visit EDEs (at least 3x per month). To represent the B2B perspective, NRG conducted six in-depth-interviews with owners, operators and managers of bars and restaurants. This guest blog was submitted by BMI, a National Partner of the Oregon Restaurant & Lodging Association (ORLA). For more information on guest blog opportunities, contact Marla McColly, Business Development Director, ORLA.
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