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:
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.
