Restaurants: Driving the Economy, Supporting the Community

December 2005

By Dale J. Venturini
President & CEO, Rhode Island Hospitality and Tourism Association

As Americans turned on CNN one morning in September, devastation and destruction filled the screen and we all assumed a natural disaster had occurred in a third world country on the other side of the world. We were shocked and saddened when we realized we were looking at images of America’s Gulf Coast. Where majestic and historic landmarks once stood, now stood only water and rubble. We were shocked and awed by what had become of New Orleans, a place we associate with good music, good people, and great food.

The recent devastation of the Gulf Coast highlighted something more than just the gaps in local, state and federal emergency response. It highlighted America’s compassion and generosity towards complete strangers. In the days following Hurricane Katrina when the nation came to grips with the destruction, a great desire to help washed over the country. And, American restaurants and American diners responded.

The National Restaurant Association refers to restaurants as the “cornerstone of the economy, careers and the community.” According to the NRA, nine out of 10 restaurateurs contribute food, money or other resources to charitable causes on a regular basis. This dedication to the community was in full view recently, as an astonishing 17,000-plus restaurants donated a portion of their sales on October 5 to benefit hurricane relief efforts through the nationwide event, “Dine For America.” Although we won’t know the total amount that was raised until December, it will surely make a big difference in the lives of the people affected by the hurricanes in the Gulf Coast.

When it comes to this charitable spirit, restaurants in Rhode Island are no exception. More than 60 of the state’s restaurants participated in “Dine For America.” From the Rhode Island Hospitality and Tourism Association’s Board of Directors, our heartfelt thanks to our restaurant partners that participated in Dine for America, and an extended thank you to our restaurants that have continued to support the relief efforts through individual fundraising events. Your compassion and generosity are truly inspirational.

As important as the industry’s commitment to the community, is the impact on the local and national economy. The National Restaurant Association recently announced the latest economic impact figures for Rhode Island’s restaurants, and once again the numbers prove that Rhode Island’s hospitality industry remains the cornerstone of the our State’s economy. According to the NRA, restaurant sales figures in Rhode Island will reach a projected $1.8 billion in 2005, an increase of $200 million over last year. In addition to direct sales, every $1 spent in restaurants generates an additional $0.90 in indirect sales for non-restaurant industries. Projected sales tax for 2005 will reach $126 million, with an additional $18 million generated from the one percent meals and beverage tax. Restaurants throughout the country are also enjoying strong growth, increasing the industry’s total projected sales for 2005 to $475.8 billion, a jump from $440.1 billion in 2004.

Restaurants in Rhode Island are the engine of economic growth in the State, providing career and employment opportunities for individuals of every age, background, and skill level. Currently, there are just over 50,000 people working in some capacity in the restaurant and foodservice industry – representing 10.1 percent of the total workforce, and this number is expected to grow to more than 56,000 employees by 2015.

Despite continued pressure from increased costs associated with energy, health insurance and employment, the restaurant industry remains one of the few growth industries in the State. They are the cornerstones of both the community and the economy, generating revenue for the State, career opportunities for individuals of all ages and backgrounds, and generosity to the communities they serve. It all adds up to the perfect recipe for success.

Easing the Increasing Cost of Doing Business

November 2005

By Dale J. Venturini
President & CEO, Rhode Island Hospitality and Tourism Association

On August 17, RIHTA held a meeting with Jim Razzaboni of Constellation NewEnergy, a competitive supplier of electricity to large commercial and industrial companies, which represents industry associations including the Massachusetts Lodging Association and the Rhode Island Food Dealers Association. Jim answered questions from RIHTA members and RIHTA President & CEO Dale Venturini, and discussed how an energy pooling program could potentially save member restaurants, hotels and allied companies money on electricity bills.

Similar to the gas pooling program currently offered to RIHTA members, participating members would lock in a long-term fixed price for electricity, that over time can accrue a considerable amount of savings, as compared to purchasing the standard offer price for the utility. With “blend and extend” options, the fixed price can be renegotiated to keep in line with competitive rates, adding increased flexibility to the program.

The Association is currently researching the program to evaluate whether an electric group-buying program would benefit all member businesses equally, from the 50-seat restaurant to the large resort hotel.

Creating a Strategy
Whether the Association and its members decide to participate in the Constellation NewEnergy fixed-price electricity program or search for an alternate savings opportunity, the concept of developing a strategy and keeping a close eye on market trends is critical, both in planning for utility costs, and in planning for the other costs of running a hospitality business, including employee salaries, health insurance, and food, beverage and linen expenses.

Across all business segments, costs are increasing at a rapid rate. The cost of doing business is ever-increasing, and it is getting more and more difficult to budget for price instability and volatility. With the growing cost of health care, an aging population and the proliferation of frivolous lawsuits, the cost of insuring employees continues to inch its way up. And, as oil prices reach all-time highs and gas prices hit the once-unthinkable $3.00 mark, these price movements directly impact the cost of electricity, food and beverage delivery, and other costs of doing business in the hospitality, lodging and foodservice industry. In addition, when consumers absorb the same cost increases in utilities and life necessities, their levels of spending in restaurants and hotels may decline, making it harder for hospitality properties to survive, much less flourish within such a volatile market.

You cannot always predict the market, but you can prepare for its ups and downs by creating a long-term strategy that incorporates increased costs. A great way to alleviate some of these increasing costs is to participate in the Association’s variety of discount and benefit programs for members.

Association Health Plans
When exploring how to best serve our members, we create a line of communication with members to see what kind of programs would help them do business better. One issue that is of the most importance to members is the rising cost of health insurance. Restaurateurs want to provide health benefits to their employees, and while many do, other small business owners cannot because of skyrocketing costs.

RIHTA and the National Restaurant Association (NRA) strongly support legislation to allow associations to provide Association Health Plans for members. The plans, or AHPs, would lower health-care costs and increase access to care by providing increased competition and choices for employers looking to provide affordable health coverage. RIHTA will continue to track developments on the efforts to secure AHPs for hospitality owners in the legislature.

Exclusive Member Discounts
As a member of RIHTA, you owe it to your business to take advantage of the established cost-saving benefits RIHTA offers. By incorporating these discount programs into your overall business strategy, you will be better able to prepare for those increases in the market and save money all the while. Here are just some of the discount programs RIHTA currently provides for its members:

• Natural Gas Buying Group: Provided by CBC Energy Corporation, the gas pooling program offers an effective energy management program for hospitality businesses, and reduced prices on natural gas. For more information, call RIHTA’s representative Diane Van Pelt at (413) 436-7043.
• Insurance Discounts: Christopher & Regan Insurance of North Kingstown is the endorsed Worker’s Compensation and Property/Casualty Liability Insurance provider for RIHTA. Special rates are available for qualifying members. For a quote, call Thomas Regan at (401) 885-4460.
• Credit Card Processing: RIHTA offers “TakeCharge,” which offers exclusive rates for credit card processing with increased payment choices and quick and secure transactions.
• Training Discounts: As always, RIHTA offers its members subsidized prices on its Education Foundation’s ServSafe® Food Safety and ServSafe Alcohol™ training programs.
• National Association Discounts: RIHTA-member restaurants automatically receive free membership into the National Restaurant Association, and RIHTA-member hotels with 50 rooms or more receive free membership into the American Hotel & Lodging Association. Each association offers cost-saving benefits, from discounts on office supplies to lower rental car rates.

For more information on any or all of these benefits, or to learn more about the electric group buying program, call RIHTA today at (401) 223-1120.

RIHTA Members Respond to Smoking Ban

October 2005

By Dale J. Venturini
President & CEO, Rhode Island Hospitality & Tourism Association

One month after the Rhode Island legislature enacted the statewide smoking ban at most hospitality establishments on March 1, RIHTA sent out a survey to 272 of its member hotels, bars and restaurants to gauge the effects of the smoking ban on their businesses. The results are in, and an overwhelming majority of businesses reported no marked impact on sales in the first month of the ban.

According to the 93 businesses who participated in the survey – representing a strong response rate of 34% – 80.6% of the respondents said that the smoking ban had no impact on sales during the month of March. Surprisingly, members who reported an increase in sales outnumbered those who saw a decrease in sales. 10.8% of respondents saw their sales increase after the smoking ban was enacted, while 8.6% reported a decrease in sales.

When asked those who detected a decline in business to estimate the rate of the decrease, percentages ranged from 2% to 30%, averaging between 5% and 15%. For members who saw sales increase upon the start of the ban, the rate of the increase varied between 2% to 30%.

52% of respondents allowed smoking in their establishments prior to the ban.

The results of RIHTA’s survey echo recent statistics compiled by the Rhode Island Department of Health. According to the Health Department’s Betty Harvey, the department has observed little resistance to the smoking ban law, and report few workplace compliance issues. In fact, the number of non-compliance complaints reported to the Health Department dropped from 46 during the first two weeks of the ban’s enactment, to 15 reported from May 1-15.

On a related note, participants of the RIHTA smoking ban survey were asked to list any factors, other than the smoking ban, that have contributed to decreased sales. Answers ranged from decreases in convention center bookings, to gas prices, the war, and a general slowdown in the economy. The number one reason for a drop in business, according to many respondents, was a snowy winter season.

And at the State House…
As the temperature rises outside, so does the pace at the State House to get as much done before the legislative session winds down. With only a few weeks left before the State Senate and House of Representatives head home for the summer, expect to see a flurry of activity on many pieces of legislation that may affect your business. This is the time to be extra vigilant in tracking legislation. Here is an update on a couple of critical pieces of legislation.

Alcohol Server Training Legislation – Consensus on Legislation Reached
Working with CCRI, URI, MADD, the Department of Business Regulation (DBR), the Division of Substance Abuse of the Department of Mental Health, Retardation and Hospitals (MHRH), state representatives Kenneth Carter and Peter Lewiss, and state senator Leo Raptakis, a consensus on revised Alcohol Server Training legislation has been reached, resulting in legislation that is expected to pass both the House and Senate and be signed by Governor Carcieri.

In order to be a valid training program in Rhode Island, all alcohol server-training programs will be reviewed and certified by MHRH. All servers must be trained in one of the MHRH-approved certification programs within 60-days of employment with a score of not less than 75%. Certification is valid for three years.

RIHTA, in partnership with the National Restaurant Association (NRA), was able to include language that allows for portability of certification (if an employee is trained in a RI MHRH-approved program in another state, the certification is valid in Rhode Island). Further, RIHTA and the NRA stopped a move to prevent online training programs. RIHTA also was able to get a provision included into the legislation that recognizes all persons trained prior to December 31, 2005, as having valid certification.

DBR will act as the enforcement agency, with the power to levy fines and suspensions for violations. Once passed into law, the legislation becomes effective January 1, 2006. All servers must have valid permits no later than 90 days thereafter.

Casino Update – RIHTA Retains Constitutional Law and Gaming Lawyer
RIHTA has retained Attorney Joseph S. Larisa, Jr., of Providence, as counsel relating to the Association’s opposition to the proposed West Warwick destination casino complex.

Mr. Larisa is a former chief legal counsel and chief of staff to former Governor Lincoln Almond. Now in private practice, Larisa served as lead counsel for Governor Carcieri during the Governor’s request for an advisory opinion from the Rhode Island Supreme Court relating to last year’s casino legislation. The Supreme Court sided with the Governor and declared the casino legislation unconstitutional.

Larisa is considered an expert in legal issues regarding the gaming industry and constitutional law. Governor Carcieri has once again retained Larisa in regard to the advisory opinion recently requested by the House of Representatives on this year’s casino legislation.

RIHTA has established a separate legal fund to secure funding for the upcoming legal battle over the destination casino complex proposal.

Membership and its Privileges

September 2005
By Dale J. Venturini
President & CEO, Rhode Island Hospitality and Tourism Association

From January until mid-July, the platform on which most are used to seeing the Rhode Island Hospitality and Tourism Association is undoubtedly political. As the official advocacy group of the hospitality and tourism industry in Rhode Island, RIHTA is committed to making the industry’s voice stronger where it counts most – from our town halls, to the State House.

However, the Association is not just a lobbying organization. During an active legislative session like the one that just wrapped up, members may overlook the host of benefits that we, together with our national partners, provide. Now that the legislators have adjourned for the year, it’s a great time to remind members of RIHTA’s numerous offerings that not only keep you informed of the impending issues that can affect your business, but can also help you increase productivity, and save money.

As the famous advertising adage goes, “Membership has its privileges.” RIHTA members can enjoy numerous privileges with their investment in the Association, from automatic memberships into the National Restaurant Association and American Hotel and Lodging Association, to discounts on employee training programs like ServSafe® Food Safety and ServSafe Alcohol™ server training courses, to group buying programs that can lower the cost of utilities. We keep you informed of critical legislative issues through editorials such as this one, and through faxes, emails and monthly member newsletters. We bring hospitality professionals in different fields together –security, vending, human resources, and management, to name a few – for meetings and seminars that reinforce best practices and offer valuable networking opportunities. And, we connect you with partner companies that offer discounted supplies, programs and services.

It seems that few members take full advantage of the resources provided by our national partners, the AH&LA and the NRA, perhaps because they are not fully aware of the substantial programs and services they each offer.

RIHTA-member hotel properties with 50 rooms or more receive free membership into the AH&LA, which not only represents your interests in Washington in efforts such as the increase in the H-2B Visa cap, but offers several workforce development programs, and sizeable discounts on health insurance, training materials, and with companies like Staples supply stores and Hertz rental cars.

In addition to offering its everyday discounts and training programs, the AH&LA regularly launches new programs to best serve its members. One of these initiatives is the New York Police Department’s “Operation Nexus,” a broad network of businesses working together in an effort to prevent terrorist attacks. The AH&LA has joined “Operation Nexus” in their efforts to share best practices to hoteliers and their employees, which help workers apply their knowledge of the lodging industry with every customer encounter – giving them the tools necessary to discern suspicious activities that might indicate a link to terrorism. For more information on “Operation Nexus” or any of the AH&LA’s offerings, log on to www.ahla.org.

Have you visited the NRA’s website, www.restaurant.org, lately? There, you will find out about the NRA’s newest programs and services. Along with the AH&LA, the NRA is at the forefront of introducing new programs that offer the highest benefit to members. Two of the NRA’s most recent programs, “TakeCharge” and “AskUs!” do just that.

Introduced in February, the “TakeCharge” program provides exclusive rates for credit card processing to small and mid-size restaurants, as well as increased payment choices. Besides accepting all major credit cards provided through the NRA’s “TakeCharge” partner, First Data Corp., the program offers a secure, expedient way to process payment methods. PIN-secured debit acceptance through leading networks like the STAR® network ensures secure transactions, and near-instant processing and TeleCheck Electronic Check Acceptance® service ensures quick transactions.

Another great new program from the NRA is “Ask Us!” This new offering is a voluntary, nationwide effort to help restaurants determine dietary content in dishes, and help nutrition-conscious customers make informed menu choices. “Ask Us!” not only helps improve the image of your business within today’s increasingly health-conscious environment, but it also helps our industry as a whole demonstrate its willingness to help Americans make responsible eating decisions. To make it even easier for restaurants to participate in “Ask Us!,” RIHTA is currently in the process of purchasing software that will enable the Association to analyze the dietary content of dishes for its members.

Being a RIHTA member has many privileges, but perhaps the biggest benefit RIHTA members gain is status within the community. As a member of RIHTA, you are grouped with the most prominent hospitality businesses in the state, and other industries see you in that light. When the media calls the Association for reaction or feedback on a hospitality-related issue, whether it be an increase in minimum wage or new fire code requirements, RIHTA redirects the press to its members, when appropriate. Because of this, your business becomes known as a leading authority in the media, at the statehouse, and within the business community. It’s a win-win for everyone, not to mention a remarkable benefit.

For every “privilege” we offer, RIHTA continually looks for additional cost saving programs and beneficial services for our members. It’s our way of ensuring that you receive a return on your investment in the association, and more. Call us at (401) 223-1123 for more information on these programs, or to offer suggestions on other membership benefits we can provide, to help serve you best.

A Legislative Update

August 2005

By Dale J. Venturini
President and CEO, Rhode Island Hospitality and Tourism Association

Typically in late June and early July, legislators at the state house work at a rapid pace to vote on remaining matters before ending the annual legislative session and going home for the summer. Moreover, it’s usually around this time of year when some of the most critical issues concerning Rhode Island’s residents and business owners alike are decided upon. True to form, the end of the 2005 legislative session brought numerous important bills to the pen of the Governor, with several of them directly affecting the hospitality industry.

One of the key roles of the Rhode Island Hospitality and Tourism Association is to monitor legislation that has the potential of impacting the industry; both by pushing for the measures that help the industry to grow and flourish, and also by lobbying against the measures that could negatively impact your business. While you run your company, we help protect its livelihood on Smith Hill with the support of our members.

More often than one might think, a piece of legislation that looks benign on the onset can transform into a significant issue. Nothing is never certain until a bill is passed or defeated, which is why it is critical for the Association to follow bills every step of the way.

In an instance that occurred in the last few weeks, legislators added an amendment to the floor of the house in an attempt to protect consumers from “escheat,” or fees associated with unclaimed property. However, legislation was almost passed that would have made restaurant gift certificates eligible for escheat, making it “abandoned property” if not redeemed within three years. Because it is illegal to place expiration dates on gift certificates, it would have meant restaurants would have had to send monies to the state from any gift certificates that were unclaimed after three years.

The Association quickly redrafted a bill which the legislature passed, stating that gift certificates “shall not be presumed to be abandoned.” Many thanks go out to Representative Patrick Kennedy, Speaker Murphy, Senate President Montalbano, Attorney General Lynch and General Treasurer Tavares for insuring that gift certificates would be exempt from escheat laws, as well as Vincenzo Iemma from Capriccio’s for his active participation with the Association in resolving this issue. It goes to show that both the Association and its members need to remain attentive to the goings-on at the state house in an effort to protect the industry’s continued prosperity.

Here is a brief recap of additional legislation that was voted on or resolved during the last few weeks of the legislative session:

Fire Safety Code Legislation
One of this legislative session’s most critical issues for hospitality businesses was the classification of “organized dining facilities” under the fire safety code. As the deadline for businesses to install sprinkler systems approached, several key members of the Association worked in partnership with fire sprinkler companies and local and state fire officials to reclassify certain businesses as organized dining facilities, which in turn exempt these businesses from the “nightclub” definition under the fire safety code.

Accordingly, an “organized dining facility,” “a place of public accommodation… where private events are held and where the primary source of revenue is derived from rental charges for the use of the facility and service of food…” for weddings, banquets, fundraisers and the like, shall be required to comply with the requirements for all other “Places of Assembly.”

In addition, the Fire Safety Code Board of Appeal & Review also issued a revised schedule for businesses to install sprinkler systems. The new schedule is as follows:

• July 1, 2005: Deadline to have a signed contract for the design of the sprinkler system, covering the subject facility, in place
• October 31, 2005: Deadline for the completion of the design of the complete sprinkler system proposed for the facility
• December 31, 2005: Deadline for securing all approvals for the proposed sprinkler system
• July 1, 2006: Deadline for the filing of any appeal, or request for extension, of the final October 31, 2006 deadline
• October 31, 2006: Final deadline for compliance

Minimum Wage Increase
Earlier this year, the House of Representatives passed legislation that would increase the minimum wage from $6.75 to $7.25 an hour, to be effective January 1, 2006. Under the legislation, the minimum wage increase would be followed by another increase to $7.50, effective January 1, 2007.

The legislature made up its mind long ago that it was going to raise the minimum wage. But, with the lobbying efforts of the Association, we were able to negotiate a lower rate – from $7.25 to $7.10 for the first increase, and from $7.50 to $7.40 for the second increase.

On June 29, Governor Carcieri vetoed the minimum wage bill. At the time of this editorial’s deadline, it was unknown whether the legislature would take up the veto before adjourning.

Casino Question Shelved for 2005
Supporters of the proposed West Warwick Casino and Harrah’s Entertainment have dropped their efforts in seeking a special election for this November. The statewide vote would have asked Rhode Islanders to vote on a “state-operated” casino, run by Harrah’s and the Narragansett Indian Tribe under contract with the State Lottery Commission.

Casino supporters cite timing issues as the reason for ending their push for a special election in 2005. The new casino legislation was revised from language submitted in 2004, which was ruled unconstitutional by the state Supreme Court last year. The Legislature has requested an advisory opinion from the Supreme Court on the constitutionality of this year’s casino legislation. The Court will rule sometime after oral arguments are made on August 15th, thereby making it impossible for the Legislature to vote on a referendum before they adjourned for the year.

Summer is Your Time to Shine

July 2005
By Dale J. Venturini
President and CEO, Rhode Island Hospitality and Tourism Association

Whether it’s for our pristine beaches, historic sights, storied architecture or popular cultural events, large numbers of tourists will flock to Rhode Island during the upcoming summer months. It goes without saying that summer is the busiest time of year for hospitality and tourism operators, and, as the second largest industry in the state, a successful summer season is critical not only for hospitality businesses, but for the strength of the overall economy in Rhode Island.

Rhode Island has long enjoyed a strong travel and tourism industry, attracting 16 million visitors in 2003, and generating more than $2.6 billion from tourists who patronize our restaurants, hotels, tourist attractions and retail shops. With 38% of visitor expenditures taking place in July, August and September, the summer is Rhode Island’s peak tourism season.

Vacations are a complete experience, from the tourist attractions, to the hotel stays, to the restaurants visitors enjoy. Impress those visitors now, and you’ll have them coming back to your restaurant, hotel or attraction, coming back to vacation in Rhode Island, and telling friends about their wonderful experience in the Ocean State. Summer is your time to shine, but you have to be prepared.

Before the summer season really heats up, now is the time to take stock of the measures your business has in place (or needs to put in place) to accommodate the increased number of guests the warmer weather brings to the area. Ask yourself this question: is your establishment equipped to handle the influx of seasonal customers? More importantly, is your establishment prepared to provide these customers with the highest quality of service possible?

The most apparent measure is increasing your workforce. With more customers comes the need for more employees, and sometimes the need for seasonal, or temporary, work staff. Although these employees are hired on a temporary basis to help meet the demand during the summer season, they should still receive the same training as your permanent, full-time staff. Your entire staff, from top to bottom, is the face of your establishment, and you should not risk offering the service your loyal customers have come to expect and the service tourists expect to receive, by cutting corners.

From proper food safety procedures to responsible alcohol service, providing thorough training for new and temporary staff, and offering refresher courses for more seasoned workers is an essential step in preparing for the bigger crowds. Proper alcohol service becomes even more critical during the summer months, particularly for restaurants and bars, as young guests on school vacation visit more and the majority of guests stay out longer. Signing staff up for a Bar Code® course is the best way to ensure all of your employees know how to identify whether a guest’s photo ID is valid, recognize the signs of a patron who has reached his or her limit, and ways to decline further service. If you have more than 15 people in need of training, RIHTA instructors can come to your place of business to administer Bar Code, making it easy and convenient to offer the proper training to all of your employees.

Safety and security precautions are another set of measures that businesses should assess before the summer season heightens. Go over your establishment’s safety plan with all of your employees, especially new and seasonal workers, to make sure that all staff members know what to do in the case of any emergency. Before the season hits its busiest peak, schedule a drill for your employees after hours to ensure they know who to call in emergency situations, how to communicate with customers during an emergency, and where all emergency information is posted.

As a tourism destination, Rhode Island has so much to offer. Yes, visitors will remember the beaches and the museums, WaterFire and the mansions, but hospitality is what keeps visitors coming back. Tourists may remember the sites and sounds of the Ocean State, but they’ll never forget the great people they met along the way. The best tourism promotions start with your employees. It’s better than any article, advertisement or television commercial. Prepare your employees to give guests the best experience possible, and Rhode Island’s hospitality and tourism industry will continue to sizzle, during the summer and beyond.

Working Together to Strengthen Our Industry

June 2005

By Dale J. Venturini
President and CEO, Rhode Island Hospitality and Tourism Association

As an operator of a hospitality business, you make important decisions every day - decisions that affect not only your business, but also your employees and loyal customers. It’s not always easy. But, at the end of the day, you are the ultimate decision maker, and you make choices with careful consideration, based on what you feel is necessary to protect your business.

Just as hospitality properties make critical decisions on a daily basis to drive the growth of business, the Board of Directors for the Rhode Island Hospitality and Tourism Association does the same, only it’s done on a larger scale. As the official advocacy group for the food service, lodging, travel and attractions industries in Rhode Island, RIHTA strives to protect all aspects of the hospitality industry, and the Association’s Board of Directors are the people working both behind the scenes and on the frontlines to make this happen.

The RIHTA Board of Directors is comprised of business professionals from all areas of the hospitality industry – business owners like you, including restaurateurs, hoteliers, and industry-related marketers and vendors – whose role is to represent the interests of not only RIHTA members, but of the hospitality industry as a whole. These dedicated members work hard to bring the critical needs of the industry to the attention of city and state legislators, advocating issues that best promote the industry and keeps it competitive with neighboring areas, and opposing legislation that would affect the industry in a negative way.

Oftentimes, Board members are forced to work through strong opposition from lawmakers or other industries when making difficult decisions. There are even times when the opposition comes from RIHTA members themselves. When representing more than 500 members and 65,000 employees, we know that not all members will agree with the decisions made by the RIHTA Board, which, is completely understandable. It is the Board’s hope that members realize the amount of time and effort used to weigh each issue, and be assured that every decision is made in the interest of the industry’s continued growth and prosperity. We can agree to disagree, but in the end, the welfare of the industry as a whole is at the heart of every decision made.

Also at the core of each decision is one factor that weighs heaviest in the Board’s decision-making process – member feedback. The Association works to gain member input with faxes, polls and questionnaires with the intent of gauging your opinions on the factors that could make your business stronger, or the obstacles that could hinder it. Without your participation, the Board’s job of promoting the needs of the industry is made all the more difficult. To represent you best, we need to hear your voice.

The most important role of the Board is to make RIHTA members’ voices heard, loud and clear. The Association can guide you through the process every step of the way, whether it be providing information on the best ways to contact your elected officials, helping draft letters to the editor or message points for legislative hearings – anything to ensure that the needs of your business are recognized.

No matter how minor an issue may be, no victory is ever small. It applies to the strides and successes your business makes every day, and the same goes for the RIHTA Board of Directors. In an environment that’s constantly threatened by challenges that can affect the future growth of the industry and the prosperity of your business, it is more critical than ever to join the efforts of the RIHTA Board of Directors in educating the ultimate decision makers – city and state legislators – on the needs and priorities of our industry.

By working together, we can take the hospitality industry in Rhode Island to greater heights. That would be the biggest victory of all.

If it’s good enough for the Donald, then it’s good enough for us…

March 2005
By Dale J. Venturini
President & CEO, Rhode Island Hospitality & Tourism Association

In the current installment of the reality TV show, The Apprentice, teams of budding entrepreneurs were tasked with running hospitality businesses in the first two challenges – the first working at a Burger King franchise and marketing a new burger, and the second to renovate and operate a seaside motel. In both instances, the teams that won excelled in customer service. If Donald Trump, one of the most successful business leaders in America, recognizes that the skills learned working in the hospitality industry are transferable to success in the board room, who are we to argue?

In fact, an overwhelming majority of the nation’s CEOs worked in the hospitality industry at one point in their career, and I’m certain that many will tell you that their time spent in the hospitality industry is where they learned the value of hard work.

The Rhode Island Hospitality and Tourism Association works in partnership with state and local work programs to help train people in hospitality jobs and get them into the workforce, where they earn much more than a paycheck, they earn the satisfaction of taking pride in working. The hospitality industry teaches valuable skills, which are transferable to other industries. A waitress is doing much more than taking an order; she is practicing customer service and sales. A hotel front desk clerk troubleshoots problems. The skills learned in the hospitality industry are some of the most transferable to other job segments, including marketing, sales, accounting, quality control and customer service.

The hospitality industry offers more than an opportunity for an entry-level position; it offers the opportunity for advancement, as the hospitality industry offers more opportunities for advancement of women and minorities than any other industry.

Additionally, the hospitality industry offers opportunities for people who are entering the workforce for the first time, as well as provides a forum for professionals who wish to learn a new skill. It is an industry in which, through hard work and tenacity, the American dream of owning a business can be achieved.

In a time when job growth in other markets is slow, if not completely stagnant in Rhode Island, the hospitality industry is a job generator. We should be looking to see how we can continue to grow this industry, and use the skills needed to be successful, and translate that into other job segments.

Continuing our Fight Against a Casino in Rhode Island

April 2005
By Dale J. Venturini
President & CEO, Rhode Island Hospitality and Tourism Association

Last August, we all breathed a collective sigh of relief when casino legislation was found unconstitutional by the Supreme Court, and ripped from the November ballot. However, as we expected, casino proponents wouldn’t stay quiet for long.

Last month, revised casino legislation was put back on the table at the state house. In order to work around the state’s constitutional provisions, this year’s bill seeks a special election in November on a “state-operated casino,” run by Harrah’s Entertainment and the Narragansett Indians under contract with the state Lottery Commission.

As the infamous saying goes, “you can put lipstick on a pig, but it’s still a pig” – this seems to describe this year’s legislation in a nutshell. Some of the words may have changed, but by and large, the legislation remains the same. It still calls for a mega-resort destination casino with a 500-room hotel, Harrah’s brand restaurants, retail shops, entertainment venues and convention space. And, the bill still proposes that Harrah’s pay only 25 cents of every dollar to the state, while Rhode Island’s VLT facilities provide 60% of their revenues to state coffers.

What’s more, the effort to change the bill’s wording to avoid constitutional hurdles has only made the legislation even more deceptive. The bill’s drafters are proposing to put this question on the ballot: “Shall the state operate a casino gaming facility in the town of West Warwick?” There’s no mention of Harrah’s in the question, although the majority of the money spent at the casino would end up in their pockets. Don’t be fooled.

The Rhode Island Hospitality and Tourism Association is continuing its fight against the building of a casino in Rhode Island, and is currently working in partnership with several associations to stop the proposed casino from getting on the November ballot. Last year, we could not have won the fight without the passion and commitment of the individual businesses that make up our hospitality and tourism industry. Now, as Harrah’s proves almost daily that they will stop at nothing to ensure their big casino interests succeed in Rhode Island, we cannot rest on our laurels. We need to work even harder in our efforts to oppose the casino. Most importantly, we need your support.

The first line of defense is to educate customers on the negative impact the casino would have on existing businesses and our way of life in Rhode Island. We may not have the deep pockets of Harrah’s, but we do have the truth, and we need to share it with every customer that’s willing to listen. The reality is this – any economic boon that Harrah’s promises with its enormous casino would be at the expense of the 5,000 hospitality venues and more than 67,000 employees in Rhode Island.

The Association will continue to update members on all developments from Harrah’s and the Narragansett Indian Tribe, and will inform you of ways you can assist in protecting your business, our industry and the quality of life in Rhode Island. With so much at stake, we cannot be lulled by a false sense of security or the idea that the casino issue will resolve itself as it did last year. More than ever, we need to maintain a united front to continue the fight against the devastating effects of a casino.

Rhode Island Hospitality & Tourism Association Urges H2B Visa Reform as 2005 Cap is Reached

February 2005
By Dale J. Venturini
President & CEO, Rhode Island Hospitality & Tourism Association

The U.S. Citizenship and Immigration Services has received enough H-2B visa petitions to meet this year’s congressionally mandated cap of 66,000 new workers and will no longer accept any new H-2B petitions.

Since then, RIHTA has received numerous phone calls from business owners who will be severely short staffed this summer because the cap was reached so quickly and unexpectedly. According to current federal regulations, business owners must file completed petitions 120 days prior to the worker entering the United States. Many business owners were caught completely off guard by the announcement that no more petitions would be accepted, and now have no recourse to hire seasonal immigrant employees.

In Rhode Island, where hospitality and tourism accounts for the second largest industry in the state, restaurateurs and hoteliers rely on the hard work and dedication of immigrants, many of them returning to Rhode Island’s resorts and restaurants from their home countries year after year, to make their summer tourism season a success. With a restricted amount of skilled workers this summer, hospitality and tourism businesses could encounter intense competition among other businesses scrambling to fill positions, resulting in a negative effect on revenues.

Part of the problem in hiring summer workers is the longer length of the summer travel season. What was once a three-month season has expanded into a half-year enterprise, starting as early as May and running as late as November. With students returning to school in mid-August, many summer hospitality positions are unsuitable for their schedules.

For many a summer season, the solution to staff shortages in Rhode Island—and throughout the country—was the recruitment of skilled immigrant workers. In fact, foreign workers have become so integral to the success of the restaurant industry, that the industry has become the nation’s largest employer of immigrant workers. Immigrants have contributed significantly to the hospitality and tourism industry in an arrangement that is mutually beneficial - employers gain reliable workers, and the workers gain experience and make more money then they would in their native countries.

If your business is facing a shortfall and skilled and qualified labor because of the H2B Visa cap, please call or write your US Senator/Congressman and urge them to raise the H2B Visa cap on temporary employees.

How to contact your US Senator and Congressman:

US Senator Lincoln Chafee
170 Westminster Street
Suite 1100
Providence, RI 02903
(401) 453-5294

US Senator Jack Reed
201 Hillsdale Rd.
Suite 200
Cranston, RI 02920
(401) 943-3100

Congressman James Langevin
249 Roosevelt Avenue
Suite 200
Pawtucket, RI 02860
(401) 732-9400

Congressman Patrick Kennedy
300 Centerville Road
Suite 200
Warwick, RI 02886
(401) 729-5600

Your Questions on the Smoke-free Workplace Law – Answered

January 2005

By Dale J. Venturini
President & CEO, Rhode Island Hospitality and Tourism Association

On March 1, 2005, Rhode Island will be the seventh state in the country to go smoke-free in its workplaces. The “Public Health and Workplace Safety Act” bans smoking in virtually all workplaces – from bars and restaurants to offices, malls, sports arenas, movie theaters, museums and even bingo halls.

The rules and regulations for the smoke-free workplace act are available online at http://www.health.ri.gov/hsr/regulations/proposed/smoking_prop.pdf, and copies can be ordered by calling the Rhode Island Department of Health at 401.222.1039. For the sake of “clearing the air” and to help explain the law’s new policies, I thought I’d take this opportunity to answer some of the questions I’ve been hearing most from our members.

Q: Who must go smoke-free, and when?

A. The law is, in essence, an act of workplace safety. So, in the simplest terms, any building that employs people must go smoke-free. This includes almost all hospitality businesses – restaurants, bars, hotel common areas – as well as the restrooms, lobbies and elevators located within the establishments. Businesses must be in compliance by March 1, 2005.

Q: Which businesses are exempt?

A: There are several hospitality businesses that are exempt from the smoke-free workplace law:

• Smoking bars are exempt, but only if they can prove that the revenue generated by tobacco is greater than the total revenue generated by the serving of beverages and food.
• Establishments that operate exclusively under a Class C liquor license (bars) are exempt if they employ less than 10 people. However, their exemption will expire on October 1, 2006.
• Establishments with a Class D liquor license (clubs) that are private, not-for-profit and have a defined membership are also exempt, but only until October 1, 2006.
• The state’s “pari mutual” facilities, Newport Grand and Lincoln Park, are exempt. Under the Act, these facilities must provide designated smoking and nonsmoking gaming areas, ventilation systems, and must allow employees the right to work in a smoke free environment.
• Hotels can allow smoking in what is designated as “smoking rooms,” provided that not more than 50-percent of the rooms are designated as such.

Q: Can a restaurant have smoking on an outdoor patio or deck?

A. Yes. As long as the outdoor area is physically separate from the enclosed workplace, employees and customers may smoke on an outdoor patio or deck.

Q: Who enforces the smoke-free workplace law?

A: There are four entities that are in charge of enforcing the Act: The Rhode Island Department of Health, your local fire department, your customers, and you. The Health Department and local fire departments will be making visits to your establishment to make sure it is in compliance with the new law, and they expect owners, managers, operators and employees at hospitality establishments to stop any customer who lights up in a restricted area.

Customers—or any person who desires to register a complaint—can also enforce the new law. Persons can submit a written letter to the Department of Health, which may trigger an investigation from the Department.

Q: What are the penalties for noncompliance?

A: If the Department of Health determines that your establishment has violated the Act, the first violation will bring a $250 penalty. Businesses will be fined $500 for a second offense, and $1,000 for the third and subsequent offenses. And, if you fail to pay the penalties within 30 days, the fines will double.

Q: What signs do I have to post?

A: The Department of Health will provide establishments with the necessary signage, at cost. The mandatory signs must include on them the well-known symbol for “no smoking” – a cigarette enclosed in a big red circle with a red bar slashed across it. The signs must also contain the following words: “It is illegal to smoke in this establishment. To report a violation call Rhode Island Department of Health: 401.222-3293.” This will make it easier for customers or your employees to call and register complaints, and enforce the law.

Ensure that you obtain enough of the required signs, as it is required that every entrance to your establishment has a conspicuous sign posted.

I hope this quick Q&A session helped to clarify the new workplace smoking law, and will help make it easy for your establishment to stay in compliance. If you have any other questions or concerns, call RIHTA at 401.223.1120.