3 minute read
From the CEO
Oregon Hospitality’s Return to Service Continues
The Gross Regional Product (GRP) of Oregon’s restaurant and lodging industries is pushing forward, but challenges remain centered on sales performance translating to bottom line profit. The headwinds are strong as inflation takes its toll on both food and labor costs. Thankfully, Oregonians are still spending in the face of record-breaking gas prices eating away at discretionary income.
Despite our challenges we have much to be grateful for. Restrictions on business are in our rear-view mirror, technological advancements continue to empower our operators striving for every possible cost control, and our state is home to this summer’s World Athletic Championships – an event coming to the United States for the first time ever.
Our partners running tourism organizations across Oregon have been preparing to maximize the opportunities coming our way as thousands of international travelers descend upon Hayward Field in Eugene for the 10-day competition kicking off on July 15. A 2015 study estimated $52 million in spending directly related to the event and $138 million in overall economic impact.
Whether your hospitality business is in the Eugene area or elsewhere, this summer is sure to be full of stories citing record sales numbers as our industry attempts to keep up with travel demand and inflationary pressures.
With so much changing so rapidly, ORLA and its Foundation have entered a new partnership with EMSI/Burning Glass to track data points on compensation, job postings, and employment rates at all levels of our state economy. The new software will assist us in our work advocating for workforce development dollars and help us pinpoint regions suffering from the biggest employment supply and demand gaps. It will come as no surprise to restaurant operators that cooks remain one of the most sought-after hires. And compensation for cooks is rapidly increasing as employers battle each other for available talent. According to the latest EMSI/ Burning Glass report, cooks in Oregon are easier to come by compared to the national average which may seem hard to believe given the challenge. The national average for number of cooks in a region the size of Oregon is 5,289 compared to the 6,174 we currently have employed here. In addition, the 5-year projection for cooks anticipates an 8 percent increase in cook employment to over 6,600 by the year 2026.
Our new data capabilities will prove helpful as your state association prepares for the 2023 Legislative Session in Salem. Having the ability to run sophisticated reports at the city and county level for all hospitality job types will assist us in our relationship building efforts with so many new elected officials. The Oregon Legislative Assembly will experience record turnover with 25 of the 60 Oregon House seats being filled by newly serving Oregonians regardless of the outcomes in the November election. These dynamics will make our efforts that much more important as the fall election comes into focus and new legislators prepare to serve in early 2023. Look for personal invitations to join ORLA staff at regional meetings with legislators around the state in November, December, and January once our general election results are finalized.
Our industry has the pleasure of serving on the frontlines in bringing joy and happiness back to the lives of others as guests recover from the physical and emotional strains caused by the pandemic. This is our return to service. Cheers to you all in your efforts to bring smiles, laughter, and profitability back to your operation this summer and know ORLA has your back. We hope to see you soon at ORLA’s Hospitality Conference September 11-12 in Eugene! JASON
