Victory, Campaigns and Collateral Damage

November 2006

By Dale J. Veturini
President & CEO of the Rhode Island Hospitality & Tourism Association

On November 7th, Rhode Island voted down the amendment to change our state’s constitution in a 63% to 37% landslide. It was a great victory for the people of Rhode Island and for the state’s hospitality and tourism industry. The Rhode Island Hospitality and Tourism Association was one of the earliest and most vocal opponents to the casino because of the impact the casino will have on the State’s restaurant, lodging, entertainment and tourism industries.

Winning a battle of this scale is not done by one individual. It is the effort of hundreds, even thousands, of individuals who spent countless hours knocking on doors, leafleting neighborhoods, distributing information to customers, writing checks, and talking to anyone who will listen. As president and CEO of RIHTA, I am honored to represent such an amazing group of business owners and employees who gave this campaign their heart and soul.

As with most professional organizations that represent a broad based group of businesses and individuals, not all members agreed with the Association’s position. As with any position the Association takes, RIHTA encourages all members to make up their own mind on where they stand on any issue and how best to protect their business.

The campaign was one of the most expensive and ugliest campaigns on record. Never before has an issue so energized the public or captured the media’s interest. Harrah’s and the pro-casino groups spent more than $15 million, where as Save Our State, the anti-casino coalition of which the Rhode Island Hospitality and Tourism Association was a founding member, spent nearly $4 million.

Accusations and mud slinging reached new heights as both sides leveled charges against the other. It pitted neighbor against neighbor, friend against friend, and unfortunately, colleague against colleague. Respect is a word that often gets thrown to the side of the road during campaigns. It can even be said that respect has no place in politics. And, this campaign was no exception.

It was a game of he said, she said. It was a personal fight for many, with battle lines drawn not in sand, but in permanent marker. Professional differences turned into personal attacks.

On any given day, open any of the daily newspapers across the State and there was at least one, if not more, stories related to the casino, as well as numerous editorials and letters to the editor on one side of the issue or the other. The airwaves were filled with casino debates, often with the talk show hosts as passionate about the issue as their listeners, and TV cameras all too eager to show up to any press event that either side held in hopes of capturing a confrontation between the two sides. Both the pro and anti-casino groups were all too eager to feed the media frenzy with PR stunts in the attempt to grab the day’s headline from the other.

On November 8th, we woke up with a victory. Now we have to find a way to work together again, no matter which side of the issue we stood. As difficult as that may prove to be, we have to find a way to mend fences, heal wounds, and move on to protect and promote the hospitality and tourism industry and Association members. The day will come when we will need to stand side-by-side on another battle, and if this campaign has taught us anything, it is the power of the hospitality industry and the impact we have on defining public debate.

Membership in the Association is not limited to the Association’s lobbying efforts or public positions. Membership offers businesses a wealth of cost-saving benefits, including discounts on employee training programs, membership to national trade organizations, and access to cost-saving programs. Perhaps the greatest benefit of membership is the public’s understanding that membership associates your business with the very best in the industry. That is more valuable than any election outcome.

The Value of Community Partnerships

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

“If we are together, nothing is impossible.”

These eloquent words stated by Winston Churchill are simple and straightforward, but speak volumes on the importance of partnerships. United, we can accomplish anything – and everyone benefits.

The hospitality and tourism industry in Rhode Island, and throughout the nation, has continued to prove itself as a cornerstone of the community. Whether it’s to fight hunger in our neighborhoods, mentor youth, or to raise funds for a host of causes, our industry is often first to support our local communities. In fact, the National Restaurant Association reports that nine out of 10 restaurateurs contribute food, money or other resources to charitable causes on a regular basis.

Fostering community partnerships is one of the most significant ways businesses can get involved in their communities, and its reach extends past any individual or industry. Creating alliances with philanthropic partners not only places your business in a leadership role within the community, but it also helps to strengthen the communities in which we live and work, benefiting the success of our businesses and our quality of life.

As an association, RIHTA takes pride in participating in many community partnerships throughout the year, including a recent alliance with the Rhode Island Association of Fire Chiefs (RIAFC) and its Fire Prevention Week campaign. The Association has partnered with Rhode Island’s Fire Marshal, George S. Farrell, to help educate the public on the importance of fire safety and prevention during 2006’s Fire Prevention Week, October 8-14. As part of the partnership, RIHTA will assist RIAFC by kicking-off campaign initiatives, such as a press conference with Governor Carcieri, Fire Marshall Farrell and the state’s fire chiefs, to help spread the word on this year’s national campaign theme, “Preventing Cooking Fires: Watch What You Heat.” RIHTA’s partnership with RIAFC is a win-win venture, as both associations can share resources to communicate the campaign’s important message to as many persons – consumers and business owners – as possible.

Helping to promote community initiatives is just one valuable reason to create partnerships with local organizations. Businesses can be an invaluable source of support to organizations endorsing or opposing legislative issues, and as we head into election season, this important type of partnership is all the more critical. In addition to the Association’s partnership with Save Our State, a non-partisan coalition to oppose the West Warwick Casino ballot question, RIHTA has lent its support and resources to organizations such as the Rhode Island Department of Transportation, the Housing Resources Commission, Roger Williams Park Zoo, and Fort Adams State Park, who are looking to Rhode Island’s voters to approve bond issues to help fund vital programs that benefit our state’s residents as well as the hospitality and tourism industry.

Another beneficial reason to create charitable partnerships is to offer support to events that both raise money for worthy causes and help bring the community together in the spirit of giving. Whether it’s offering complimentary catering services at a gala event, sponsoring a group of employees at a charity walk, hosting a charity drive of canned goods or clothing, or simply donating funds to a philanthropic organization, supporting charitable endeavors truly strengthens our neighborhoods, and highlights our industry’s commitment to giving back to the community that serves us well.

The National Restaurant Association often refers to restaurants as the “cornerstones of the community,” and Rhode Island’s hospitality industry is no exception. I encourage you to give the Association a call to learn more about the community partnerships RIHTA has developed on behalf of our membership, and other ways your business can give back.

Working Towards a Common Goal: Building a Coalition

September 2006

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

As the old adage goes, politics make strange bedfellows. And, that is no truer than when a hotly contested public issue is at hand, such as casino gambling. This election, Rhode Island voters will have the chance to vote for or against changing the state’s constitution to allow for a Harrah’s casino in the town of West Warwick.

The Rhode Island Hospitality and Tourism Association has always opposed casino gambling in Rhode Island, as have many other associations and individuals. With Harrah’s seemingly unlimited resources and commitment to spend whatever it takes to convince the voters to support the ballot question, the Association cannot work alone to defeat Harrah’s. The only way to defeat the casino is to pool resources and work together with other like minded organizations and individuals.

Building a coalition to preserve or combat against a common cause may seem like a simple task, especially when a large group of people shares a same goal. However, keeping all the members of the coalition content and motivated can be as challenging, if not more, as defeating the enemy itself. Building a successful coalition is an exercise in patience, interpersonal communication, respect, resolve, and, most importantly, the ability to lay aside egos and differences for the greater good.

Recently the Rhode Island Hospitality and Tourism Association joined forces with other professional organizations, social groups, individuals, private corporations and elected officials to form Save Our State, a coalition to defeat the casino on the ballot. The first order of business when forming Save Our State was to define what the coalition stood for and to develop a mission statement.

Save Our State is a non-partisan coalition of various interested individuals, groups and companies, that stands united to oppose the proposal to amend our state constitution to allow Harrah’s Operating Company to establish a destination resort gambling casino in West Warwick. Save Our State welcomes all Rhode Islanders to join us in voicing opposition to amending the state’s constitution.

Save Our State stands united and is respectful of the opinions of all its members and will serve to protect Rhode Island, its constitution, and the taxpayers from a bad casino deal.

The Rhode Island Hospitality and Tourism Association opposes a casino because of the devastating impact the casino will have on the state’s existing hospitality and tourism businesses and employees. Others oppose the ballot question because it is inappropriate to alter the state’s constitution for a private gambling company. There is a group of individuals and organizations who oppose the casino because of the impact on the quality of life and the impact on the neighboring towns’ infrastructure. And yet others are opposed to a casino because of its social impact or because they are opposed to gambling all together. Whatever the reason for opposing the casino, everyone agrees – we cannot let the Harrah’s win in November. If that happens, we all lose.

At the hub of any coalition is a common goal, but sometimes, the goal becomes muddled amidst fighting and disregard. Sharing a common cause does not necessarily mean that everyone shares the same attitudes or beliefs, and trying to ignore this basic fact will get in the way of creating a strong, unified alliance – if you allow it to happen. Not acknowledging individuals’ opinions for the sake of avoiding conflict is not only insensitive, but is also counterproductive, as it threatens to make your coalition’s message one-sided and ineffective. The success of any coalition depends on how well group members can place their focus on the common goal, and to do this, it is critical that members are respectful and mindful all people’s opinions and beliefs.

Being passionate about an issue can bring out the very best in people. It can also bring out the very worst. For the coalition to be successful, nonetheless, what must emerge is a passion to agree that the message must spoken with one voice.

As Legislative Session Ends, Critical Issues Remain

August 2006

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

At 4:26 a.m. on June 24, after a marathon session within the walls of the State House, the General Assembly wrapped up their 2006 legislative session. Up until the final chaotic minutes of this year’s session, the Rhode Island Hospitality and Tourism Association has exercised its due diligence to monitor legislation that has the potential to impact the hospitality industry. And, true to form, several bills were passed by the General Assembly that, if signed by the Governor, will directly affect the way hospitality companies do business.

One issue that has been examined and debated for several years will be decided upon by voters this November; the issue of course being the proposed Harrah’s casino in West Warwick. A recent survey administered by Brown University pollster Darrell West found that 52 percent of likely voters oppose changing the state’s Constitution to allow a privately-owned company to operate a casino in West Warwick, which shows that the Association’s efforts, along with fellow casino opposition groups, are working to inform voters on what is inherently a bad deal for the state of Rhode Island. While this poll is encouraging, Harrah’s Entertainment has only begun to spend its millions of dollars to sway voters into thinking that altering our Constitution to suit their out-of-state interests would be of benefit to our state.

For years, we’ve seen and heard the advertisements, and we all know the promise of jobs, revenue and tax relief that Harrah’s proposes every year, although there is no guarantee that these promises are nothing more than just that – promises. What’s worse, the current ballot question heading to the November ballot provides no details on the size and scope of the project, the tax rate Harrah’s will pay to the state, and the partnership between Harrah’s and the Narragansett Indians.

In its steadfast effort to contest any casino in Rhode Island, RIHTA retained prominent Providence attorney Joseph Larisa to assist in its casino-opposition testimony, and also lent its support to Save Our State, Inc. (SOS), a non-partisan coalition of venerated Rhode Islanders, professional business groups and corporations created to oppose the November ballot question to give Harrah’s Entertainment the exclusive license to operate a casino in West Warwick.

In addition to the casino issue, the Association has been keeping a close watch on other legislative matters, and also doing its part to testify on the house and senate floors. Early in the legislative session, the Association submitted legislation that would allow patrons to bring home a securely resealed bottle of wine from restaurants. The bill, which has been referred to as both the “Merlot to Go” and the “Wine to Go” bill, passed in June, and at press time was ready to go into effect, pending the Governor’s signature. The passing of this bill was a win-win for the hospitality industry and consumers alike, and will encourage restaurant patrons to order their favorite bottle without the worry of wasting money on wine left behind on a restaurant table. This common-sense law not only offers more choice for restaurant diners, but it can result in higher check averages for restaurateurs and higher tips for servers, all adding up to a stronger bottom line for hospitality businesses.

When drafting the “Wine to Go” legislation, RIHTA paid special attention to create a safe, effective solution that promotes the responsible, enjoyable consumption of wine. The Association is a proponent of responsible alcohol consumption and service, and commends legislators who have worked diligently to prevent drunk-driving and the other negative effects of irresponsible drinking. On July 5 – one day after the Fourth of July, one of the deadliest days for alcohol-related traffic accidents in the country – Governor Carcieri signed legislation that eliminated a major loophole in the state’s drunk-driving laws. Before the new law took effect, the penalty for refusing a Breathalyzer test was significantly less than the penalties for driving under the influence. Now, people who refuse to take breath tests will receive tougher punishments, and those who repeatedly refuse Breathalyzers will be threatened with jail time. The consequences of reckless drinking are felt by everyone, but as an industry that strives to serve alcohol responsibly, the Association will continue to support legislation that endorses the safe consumption of alcohol.

The 2006 legislative session wasn’t without the normal threat of increased wages and taxation. RIHTA was again successful in staving off an attack to increase the state’s hotel tax, which is an already high 6 percent, on top of the 7 percent sales tax and the 1 percent meals tax. Earlier this year, after the Governor vetoed a similar bill in 2005, the General Assembly passed legislation that raised the minimum wage to $7.10 an hour, which took effect on March 1 of this year, to be followed with another $.30 raise to take effect on January 1, 2007. Although the Association is opposed to all minimum wage hikes, the legislature made no qualms about its desire to raise the minimum wage, and had made up its mind long ago to implement the increase. Nonetheless, RIHTA was 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.

Although the legislature has gone home for the summer, many issues of a critical nature continue to play out in the political arena, from the November casino referenda to acts awaiting the pen of Governor Carcieri. As always, RIHTA will keep its members abreast of these ever-important developments, and looks to its members to join in the fight of protecting the hospitality industry, the state’s second largest.

“Generation Why” - Who They Are, and Why They Matter

July 2006

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

This past April, the Rhode Island Hospitality and Tourism Association was pleased to host an informative seminar with Eric Chester, author and motivational speaker who specializes on the subject of “Generation Why” – a subject he knows well, as he even coined the moniker. Generation Why, as Chester labels the upstart workforce, is made up of the 16- to 24-year olds of Generation Y; born after 1980 that, for better or for worse, hold the future of your business in their hands.

You are frustrated by their lack of work ethic, their problem with accepting authority, and their blunt questions: “Why can’t I take the day off?” “Why do I have to do things this way?” “Why should I care about this job?” To truly understand Generation Why and the reason for all those questions, it is helpful to know the factors that helped mold their attitudes toward work and life.

Born of Baby Boomer parents, the youth of Generation Why have seen their parents put in 20 to 30 years of work at one job, only to be laid off due to mergers or acquisitions. They are not looking to stay at one job for the entire span of their career as they parents might have, and are uninterested in following only one career path. This curiosity is intriguing to young workers, but can be disastrous for those who employ them.

The generation gap between employers and their 16- to 24-year old employees is filled with not just years, but with a whole set of different values, attitudes and beliefs. And with different beliefs come very different expectations. In a world where young adults can’t remember a time without the internet or MTV and can’t imagine life without a cell phone, Generation Why expects instant gratification at play, and at work. They want everything – an easy job with high pay and no “heavy lifting” – and they expect it now. As a result, the emerging workforce is impatient, easy to become disengaged, and hard to retain.

Although the generation gap is wide, it can be bridged by taking advantage of the younger generation’s strong suits while setting a strong leadership example for them to follow. A great piece of advice from our seminar with Eric Chester was his suggestion of fostering relationships with Generation Why employees. For them to care about your business, you need to care about them. By putting in the time to build connections with employees and by guiding careers as well as rewarding hard work, an inspiring leader can create an inspired workforce.

Keeping impatient Generation Why workers stimulated is also very important, but it can be a challenging task for busy hospitality employers. However, the time it takes to engage young workers is time well spent, as it helps to combat costly turnover. Taking advantage of young workers’ technological savvy and ability to learn quickly not only is a smart way to train workers, but it helps keep workers motivated. Try offering young workers opportunities to learn new skills, using interactive training programs – many offered through the Association’s partnership with the National Restaurant Association and the American Hotel & Lodging Association – and using creative reward systems such as small bonuses and sales contests. Young workers are eager to build their resumes with skills and experience, and in providing meaningful learning opportunities, business owners can encourage employees to work hard for their businesses while avoiding the trap of constant turnover.

As Eric Chester says in the title of one of his books on Generation Why, “Getting Them to Give A Damn,” the objective in hiring and retaining young workers is to encourage them to be caring and committed employees. This is not just a quippy title – it is a critical issue that can affect the livelihood of your business. As much as some employers would like to ignore or resist the trend, the fact is, the 16- to 24-year old workforce makes up 26-percent of our total population. And, with such a tight labor force as it is, the hospitality industry already has to compete with other industries in finding quality employees from among a very small pool.

To succeed – much less survive – in this new economy, business owners and managers need to find ways to retain young employees. To do this, it is critical to understand what makes Generation Why tick, and bring out the best in this emerging workforce.

For more information on Eric Chester and his books on Generation Why, visit http://www.generationwhy.com/, or call RIHTA at (401) 223-1120.

Harrah’s Casino Proposal – Once Again, A Bad Deal

June 2006

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

In 2004, Rhode Island’s General Assembly passed legislation that would have placed a referendum question on the ballot asking the voters of Rhode Island whether or not they wanted a resort casino in Rhode Island. The question was ultimately not placed on the ballot because the legislation was found to be unconstitutional by the Rhode Island Supreme Court. Casino proponents were back in 2005, with new legislation, and once again the Rhode Island Supreme Court, in an advisory opinion, found the proposed legislation to be unconstitutional.

In both cases, the Court’s decision was based on a point in the constitution that requires “lotteries” to be operated by the State. The Supreme Court provided a road map for casino proponents to follow if they want to propose building a casino in Rhode Island – make it state operated.

Instead of heeding the advice of the Rhode Island Supreme Court, casino advocates are looking to circumvent it by proposing a resolution to place a question on the ballot to change the State’s constitution to allow Harrah’s to build and operate a resort casino in West Warwick.

The Rhode Island Hospitality and Tourism Association remains steadfast in its opposition against any casino in Rhode Island, and is further opposed to destroying the State’s constitution to suit the interests of an out-of-state casino operator.

Although I’ve said it before, it is important to remember the important role the hospitality and tourism industry plays in Rhode Island. It is state’s second largest industry, generating more than $6.4 billion in revenue and employing approximately 67,000 people with more than $1.2 billion in salaries and benefit packages.

Rhode Island enjoys ones of the highest percentages of owner-operated restaurants; with the majority of those being small businesses, which operate on small margins. Rhode Island restaurants, hotels, entertainment venues and convention facilities cannot compete against Harrah’s comp program.

Harrah’s is known as the king of the comps. It’s a great business model for them to offer free accommodations, free dinners, free spa services, free entertainment, and even free retail products, including electronics, clothing and anything else you can image. And, Harrah’s has arguably the best player loyalty program in the world. It keeps people inside the casino to spend their money at the gaming stations. It is a program that certainly improves Harrah’s bottom line. But, what will improve their bottom line will crush area restaurants and hotels.

In one study, Harrah’s is reported to comp 85 percent of hotel rooms at their properties in Atlantic City. It’s plain and simple – our restaurants and hotels cannot compete with free.

And, with the latest proposal put forth by Harrah’s, which includes 55,000 square feet of convention and meeting space, the casino would be competing against the Rhode Island Convention Center – which is owned by the State of Rhode Island - and area hotels for conventions, meetings, and hotel rooms.

Nationally, studies show that 67 percent of casino gambling revenues come from the local economy, and another 18 percent from the regional economy. The revenue pumped into Harrah’s casino will be nothing more than a redistribution of money that would have been pumped into area restaurants, entertainment venues and attractions. And, with Harrah’s extensive comp and player loyalty program, not only will area restaurants, retail outlets and attractions lose, but the State will also be a loser in sales, hotel, and meals taxes.

Harrah’s and casino proponents are smart. They are promising all sorts of investments, jobs and revenue allocated to property relief, but there is NO guarantee that it will happen. There are no details on the size and scope of the project, no details on the tax rate, no guarantee of a so-called windfall in property tax relief. The resolution, as presented today, does not provide any solid facts on which the voting public can accurately make a decision. The only question this resolution asks the voters is whether they should change the State’s constitution for Harrah’s Entertainment.

Harrah’s has continued to change the scope of their casino project. Since 2004, the magnitude of the project has grown – not only in the number of slots, but also in the square footage of convention space, the number and type of restaurants, and other amenities. What guarantees do we have that the proposal they put forth today will not change by next year?

This project has grown from $450 million, to $600 million, to the latest proposal of $1 billion. We knew that the devastation that a $450 million dollar casino complex would have on the State’s hospitality and tourism industry would have been irreversible. Imagine our concern when we see plans for a $1 billion facility, with more slots, more convention space, more ability to undercut surrounding hotels and restaurants subsidized by gaming revenue.

This is too important a decision – it affects too many Rhode Islanders – to move to a ballot question without due diligence or guarantees. The Rhode Island Hospitality and Tourism Association strongly urges the General Assembly to not allow the resolution to go forward and to protect not only one of the State’s most valuable industries, but also to protect the integrity of the State’s constitution.

State Health Care Mandates: Anti-Business, Anti-Job and Anti-Employee

May 2006
By Dale J. Venturini

President & CEO, Rhode Island Hospitality and Tourism Association

Across the country, organized labor is making a move, in essence, to create a universal healthcare system, on the backs of business owners. Last year Maryland was the first state to pass what has been dubbed the “Wal-Mart Legislation,” which requires companies with 10,000 or more employees to spend at least eight percent of payroll on healthcare. While Wal-Mart is the only company in Maryland that the legislation impacts, before the ink was dry, legislators submitted new legislation to lower the number of employees. Similar legislation is being considered in 36 states, including Rhode Island. It is the intention of labor to pass legislation that would impact only a small number of companies to quell opposition to the legislation, only to turn around seconds later and propose legislation requiring most, if not all, businesses to provide health coverage.

Massachusetts recently passed legislation requiring all companies with more than 10 employees to provide healthcare to all employees, or pay a $295 fee per employee to the State of Massachusetts. The legislation is expected to bring a $45 million windfall to the State of Massachusetts, at the cost of Massachusetts business owners.

Healthcare mandate legislation forces business owners to provide health insurance, but does nothing to address the issue of access to affordable health insurance. Rhode Island’s hospitality employers provide their workers with robust benefits that accommodate the unique dynamics of the hospitality workforce, a workforce dominated by young people, non-heads of household, and part-time and seasonal employees, many of whom have coverage through sources other than their employer. Imposing an arbitrary payroll tax on an industry with already slim profit margins will force employers to make a choice between laying off workers or raising prices.

In recent years, small business owners have seen healthcare costs skyrocket, with annual increases in the double digits. Mandating health coverage for all employees or mandating a company spend a certain percentage on healthcare for employees will do nothing to curb the cost of health care for business owners. While mandates make health insurance more comprehensive, they also make it more expensive. According to the Washington Policy Center, mandated benefits increase the cost of basic health coverage from a little less than 20 percent to more than 50 percent.

Why are healthcare mandates so popular? Elected representatives find it difficult to oppose any legislation that promises enhanced care to potentially motivated voters. The sponsors of mandates know this fact of political life. As a result, government interference and control of the health care system is steadily increasing. So too is the cost of health insurance.

In recent years, Rhode Island has made strides at becoming more attractive to business, with the tax credit program, and recently proposed overhaul of the state’s income tax structure. We applaud the Legislature’s efforts, but caution that mandating healthcare is a step backwards. Further, we encourage state and federal policymakers to focus on ways to control health care costs, improve health quality and provide affordable coverage to employees of employers large and small.

The Rhode Island Hospitality and Tourism Association has joined forces with the Greater Providence Chamber of Commerce and the National Federation of Independent Businesses to fight healthcare mandate legislation in Rhode Island.

Rhode Island Ready for “Wine To Go”

April 2006
By Dale J. Venturini
President and CEO, Rhode Island Hospitality and Tourism Association

As diners walk into the entrances of their favorite restaurants, they may notice a commemorative plaque or magazine article noting the restaurant’s award-winning wine selection. With restaurants putting a lot of thought and effort into creating their wine lists, wine has become an integral part of the dine-out experience.

And yet, restaurant diners may retreat from ordering a bottle of wine with their dinner because they are hesitant to spend money on a bottle they know they will be unable to finish. Worse, they may order a bottle of wine and feel inclined to finish the entire bottle, which, needless to say, is an unwanted result that can lead to disastrous consequences.

The Rhode Island Hospitality and Tourism Association recently submitted legislation to give consumers the choice to order a bottle of wine and save the rest for another time, rather than have the unfinished portion and the money spent on it wasted. Thirty-four states have passed some form of “Wine to Go” or “Merlot to Go” legislation, which includes every New England state including Massachusetts, where legislation passed in early March. Adding Rhode Island to this ever-growing list would be a win-win for the hospitality industry and restaurant patrons alike.

Under the proposed legislation, restaurant patrons who purchase a full meal would be permitted to take home their opened bottle of wine, which will be securely sealed, bagged, and labeled with the date of purchase. The seal would also be secured in a way where it would be evident if it were broken before the bottle reached the patron’s home. Because the bottle will be sealed, bagged and transported in the trunk of a vehicle – or behind the last upright seat in the rear of the vehicle for automobiles without trunks – patrons will be in compliance with the state’s current open-container laws.

This law isn’t just about being able to take an open bottle of wine home. It is about giving restaurant patrons a greater range of options when dining out. Instead of being limited to ordering from the ‘by the glass’ wine menu, diners can select the exact wine of their liking from an expanded ‘by the bottle’ list. Diners may also be more apt to experiment with new tastes and different varieties of wine when they don’t have to worry about leaving an unfinished bottle behind. And, the patrons who enjoy the wine they had at a restaurant only to forget its brand name or varietal can now repeat their purchase at a restaurant or package store, easier. What this creates is a clientele of diners who are more comfortable and confident when ordering wine, enhancing their dining experience. What this can mean for restaurants are higher check averages, which results in higher tips for servers and a stronger bottom line for restaurateurs.

“Wine to Go” is a safe, effective solution that promotes responsible, enjoyable consumption of wine, and encourages wine-lovers to indulge in their favorite bottle when dining. Rhode Island is ready for “Wine to Go.”

To track the legislation endorsed by the Association and currently under review by the General Assembly, visit http://www.rilin.state.ri.us/BillText/BillText06/SenateText06/S2194.pdf to view Senate bill 2194.

Economic Outlook for Restaurants Looks Bright; Now It’s Time to Prepare

March 2006
By Dale J. Venturini
President & CEO, Rhode Island Hospitality and Tourism Association

A new year for Rhode Island’s restaurant industry is well underway, and with a milder than expected winter and a moderate reprieve from high heating prices, restaurants are enjoying a good start to 2006. So far, so good; but if 2005 taught us anything, it’s that we cannot let complacency prevent us from preparing for the issues that are poised to affect the industry in the upcoming year.

To help business owners gain a better idea of the current industry landscape, the Rhode Island Hospitality and Tourism Association is hosting the 3rd annual Economic Outlook Breakfast on April 4th at the Crowne Plaza Hotel in Warwick. This informative seminar will provide a timely update on the economic status of the hospitality industry on both a local and national level, and will offer an in-depth look at current trends and growth opportunities within the industry.

Joining us once again this year to share their insights on the hospitality industry will be Hudson Riehle, Sr. Vice President of Research and Information Services for the National Restaurant Association and a leading source for economic data in the industry; and Rachel Roginsky, Principal and Co-owner of the Pinnacle Advisory Group and Pinnacle Realty Investments. Also joining us will be Adelita Orefice, Director of the Rhode Island Department of Labor and Training, who will answer participants’ questions on new business regulations that affect the hospitality industry, as well as provide an overview of the state’s current market and workforce conditions.

If you are planning on attending this year’s Breakfast, it would be beneficial to become acquainted with the issues that are poised to affect the industry in the upcoming year.

According to the National Restaurant Association’s 2006 Restaurant Industry Forecast, the state of Rhode Island is expected to post restaurant sales of $1.7 billion this year – a 5.3 percent increase over 2005 – which represents 8 percent of New England’s total restaurant sales for 2006. While this sounds promising, it is critical to note other facts and trends to create a successful plan of action.

While sales are up, employment is down. One of the greatest issues facing Rhode Island’s hospitality and tourism industry is a shortage of qualified employees, and we’re not alone. According to the NRA’s forecast, 31 percent of quick-service operators and a sizeable percentage of full-service restaurant operators (42 percent) cite recruiting and retaining employees is their top challenge for 2006.

Part of the problem is the sharp decline in the number of teenage workers. In fact, just 43.7 percent of 16- to 19-year-olds participated in the labor force in 2005 – the lowest level on record. This is alarming news for local Rhode Island’s hospitality businesses as the industry relies on teenage and college-age employees more so than non-seasonal regions of the country. One way to combat this issue is to post positions – and post them early – at high schools and colleges, and check with local schools to see if they are hosting summer job fairs for students.

Another cause for concern is the rate at which Rhode Islander’s disposable income is growing. Higher than expected gas prices, increases in heating costs and high housing costs leave Rhode Islanders with less disposable income to spend on dining out or at area attractions than the rest of the country. Real disposable income is forecasted to advance at a 2.6 percent rate in Rhode Island in 2006, as compared to 2.7 percent in New England and 3.0 percent in the nation as a whole. While that is better than the dismal 1.6 percent gain posted in 2005, it is a clear sign that Rhode Islanders are feeling a pinch in their wallets, which translates into a lower rate of sales for your business.

While the economic horizon is not without its risks, the good news is that the national restaurant industry will likely perform against an economic backdrop that will continue to improve. Two key indicators of restaurant performance are expected to enjoy growth in 2006, which bodes well for continued growth in restaurant sales. These indicators include the Gross Domestic Product, which is projected to increase at a solid 3.7 percent rate in 2006, just above the 3.6 percent gain registered in 2005. The U.S. economy is also projected to add jobs at a 1.9 percent rate in 2006, stronger than the 1.6 percent gain registered last year, and the strongest job growth in six years.

I hope you will join us on April 4th for the Economic Outlook Breakfast. And, as always, if you are in need of additional industry information, the Association is the best source of information.

Alcohol Server Training Law – Are You in Compliance?

February 2006
By Dale J. Venturini
President/CEO, Rhode Island Hospitality and Tourism Association

From fire codes to health code regulations, hospitality businesses have to consistently take stock at the way they do business to determine whether they are in compliance with a host of important rules and requirements. With the start of the new year, business owners in Rhode Island should take heed of new regulations that have recently gone into effect – the alcohol server training law.

The alcohol server training law, enacted on January 1, 2006, requires all hospitality establishments with liquor licenses to meet alcohol server training and certification requirements. Now that the law is officially in effect, it’s time to ask the question: is your business in compliance?

The law requires that all employees that serve alcohol, hold supervisory capacity over those who serve alcohol, valet cars or check IDs must receive certification through a state-sanctioned, four-hour training program. Current employees without prior training must receive certification by April 1, 2006, and any new employees must obtain training within 60 days of being hired. And, employees must be re-certified every three years.

The Rhode Island Department of Mental Health, Retardation and Hospitals (MHRH) is responsible for certifying alcohol server training programs. Eligible programs will be evaluated and certified based on its efficacy in teaching the following criteria: the physiological effects of alcohol, alcohol’s association with social problems, the legal requirements related to alcohol service, how to identify patrons who are impaired, and techniques in refusing service to intoxicated patrons. A list of certified programs is listed on both the MHRH’s website, http://www.mhrh.state.ri.us/, and the website of the Rhode Island Department of Business Regulations, http://www.dbr.state.ri.us/.*

During the last few weeks, the Association has received an influx of calls from both members and non-members, asking how and where to obtain training, which employees are required to receive training, and when they would need to be trained by. To accurately gauge whether your business is in compliance, it is important to understand the law’s regulations. The Association is always available to answer any questions you may have with this or any issue, but as the opportunity is at hand, I hope to answer some of the inquiries we have been getting, here.

One question the Association has been asked by several members is whether door staff needs to be certified. In the language of the law, door staff refers to bouncers or any person who checks ID at a restaurant, bar or club. This does not refer to hosts or hostesses, and as such, they would not be required to receive server training.

Even though employees who do not serve alcohol do not need to be trained, it is important to know what your business’ liability is. On a busy night, an employee who normally doesn’t serve alcohol may jump in behind the bar, or serve a glass of wine to a patron dining at a table. Even if this person were to serve drinks only once a year, they need to be certified. As prevalent as frivolous lawsuits have become, it would be foolish to open your business to liability by not ensuring that the necessary employees were certified.

Another frequent question the Association has been receiving is whether prior certification is recognized under the new law. Any hospitality employee that has received alcohol server training prior to December 31, 2005 is considered certified for three years. Some training programs, such as TIPS, have expiration dates, and those dates would still apply. Furthermore, if an employee has received training in another state with a program sanctioned by Rhode Island, their certification would be valid under the Rhode Island law.

The passing and enacting of the alcohol server training law not only provides servers the knowledge and confidence necessary to serve alcohol responsibly, it also may lower your insurance costs. The Association encourages business owners to contact their insurance agencies, to see what kind of discounts they offer to businesses for providing alcohol server training to their employees.

We also encourage you to call the Association with any questions on the alcohol server training law, and also to learn more about ServSafe Alcohol™, the nationally-accredited program offered by RIHTA. The next four-hour ServSafe Alcohol™ course will take place at the RIHTA offices in Cranston from 8am to noon on February 20th. To assist hospitality owners in bringing their businesses into compliance, RIHTA can administer ServSafe Alcohol™ at their place of business for a nominal fee. Give us a call at (401) 223-1120 today.

*At press time, MHRH was still in the process of certifying programs. In the meantime, establishments may seek training for their employees utilizing existing alcohol server training programs, which will be recognized for up to three years.

One New Year’s Resolution We Can All Keep

January 2006

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

On January 1st, millions of Americans make their New Year’s Resolutions, vowing to change their ways. The number one resolution by Americans every year centers on food and exercise. “This year, I am going to lose weight and keep it off” yell Americans as they ring in the New Year.

And, they stick to their guns - at least for the first month. By February, the treadmills and the elliptical machines are quiet and Americans quickly revert to the pre-New Year’s ways and weights.

We are getting heavier. The average weight for U.S. men increased by 25 pounds over the past 40 years, while weight for the nation's women rose 24 pounds, according to a recent study from the Centers for Disease Control and Prevention. And, an estimated 64 percent of U.S. adults are either overweight or obese.

In recent years, we have seen a number of diet gurus emerge. The Atkin’s Diet - filled with saturated fats, but no carbs - become the most popular diet since the grapefruit diet of the 70s. The South Beach Diet, which calls for a more balanced diet, but requires a 500-page book to follow, came next. Unfortunately, the secret to a healthy lifestyle can’t be found between the pages of these best-selling books. Americans would lose more weight if they did bicep curls with all the diet and exercise books, than if they followed the advice offered inside.

Americans love food - no doubt about it. And, Americans love dining out. And yes, it seems Americans are becoming more and more obese over time. As waistlines have increased, so has the call to find something to blame for the fattening of America. The target – America’s restaurants.

As little as five years ago, we never would have thought about suing a restaurant because we gained weight. But, today we’re told it’s not our fault we’re fat, it’s the evil restaurant empire that has brainwashed us into eating poorly and not exercising.

No one is forcing Americans to eat unhealthy foods. There is no smoking gun memo or hidden agenda among America’s restaurants to make Americans fatter. Even in today’s super-sized world, there are plenty of healthy alternatives on every menu, from fast food to five-star restaurants.

The rise in obesity is the result of many complex factors affecting eating and activity behaviors. It is naïve and simplistic to only consider one factor, such as consumption – regardless of the type of food – when determining whether someone is healthy. Individual eating habits and activity behaviors are influenced by a wide range of interconnected psycho-biological, cultural, social and environmental factors.

When consumers dine in one of the nation’s 900,000 restaurants, they can choose from a wide variety of portion sizes and healthy choices. In fact, in a poll conducted by the National Restaurant Association, seventy percent of adults agree that there are enough portion sizes available in the nation’s restaurants, particularly for people who are watching their calories and fat consumption.

It is not the restaurant industry’s role to dictate to Americans appropriate portion sizes and menu choices based on their weight and physical appearance. Should we start weighing our customers before they sit down to dinner to determine their portion size? Should the government start taxing people based on their weight? Where would it end?

Instead of reading and watching that Americans are getting fatter, we should put down the newspaper, turn off the TV and get some exercise. The secret to healthy living is best achieved through balanced diet and exercise, not by blaming some of America’s favorite foods and restaurants.

So, let’s all begin the New Year with a resolution we CAN keep – let’s resolve to stop blaming others for our behavior and let’s commit to taking responsibility for our choices in life.