Trust is Not a Four Letter Word

December 2009
By Dale J. Venturini
President and CEO, Rhode Island Hospitality Association

“Our distrust is very expensive.” – Ralph Waldo Emerson

This simple statement by one of the most well-known orators of his time is as true today as it was in the 1800s. Focusing the message and relating it to our industry is an easy adaptation, and one that can serve as an important lesson for growth and saving money.

The RI Hospitality Association is not alone in its mission to provide members with the highest level of services, offerings and training. In fact, every hospitality association throughout the nation does its best with the resources allocated to provide the very best for its membership.

I don’t think that the industry actually realizes the level of in-depth research, vetting and exploration by committee that occurs to ultimately provide our membership with what we consider to be the best offerings and options to help them do business more efficiently, safely and productively.

Members need to embrace their associations and trust that their best interests are being represented. No association would offer services or training to its membership without doing all of the lengthy and necessary legwork and research to provide the best options.

The RI Hospitality Association recently launched an electricity buying program. We vetted many energy providers and did what seemed like an insurmountable amount of research to find the right fit for our membership. And, we are pleased that so many members have taken advantage of cost-savings in our natural gas and new electricity buying programs. Members are saving up to 30% on their energy bills by simply trusting that the Association has done the proper research to provide the best buying program for them.

However, many more members have gone off on their own and signed contracts with energy brokers whose deals might have looked good on paper, but ultimately weren’t reflected in the savings on their energy bill. Why? Because they didn’t do the right research, didn’t explore fees and didn’t vet their supplier.

I recently received a letter from a member who owns and operates one of the largest family-owned restaurant groups in the Ocean State. This is what he had to say:

“I have a hard time understanding any member’s reluctance to get involved in RIHA’s energy purchasing program. I saved close to $20,000 on gas alone last year. This year will represent the second year that I have expanded my purchases with the group to include electricity and I anticipate significant savings in this area as well.

Beware of unscrupulous vendors offering you savings that seem too good to be true…they usually are! Why not trust the association to do the work of sorting out the options and identifying the ones that are legitimate and will save us money...you are a member of the association because you recognize the work they do to keep our industry alive and well. Here is an opportunity to make that membership pay dividends to your business.” – Robert Bacon, owner, Gregg’s Restaurants & Pubs.

The hospitality industry in Rhode Island, and throughout the nation, has continued to prove itself as a cornerstone of the community. Through strategic partnerships, mentoring programs, safety and job training, and lobbying, we are instrumental in furthering the cause of the industry. This didn’t just happen overnight, it has been a gradual progression over time that is built on a foundation of trust, dedication and accomplishment.

Your continued path to success is to trust that each state hospitality association is keeping its membership’s best interests at heart. I implore you to take advantage of the services and programs that your own association is currently offering. Without your critical buy-in, trust and support we cannot continue to grow.

You Only Get One Shot to Make a First Impression

November 2009
Dale J. Venturini
President/CEO, Rhode Island Hospitality Association

Keeping hospitality businesses alive throughout New England in this tough economic climate is top of mind for all of us, and it needs to remain that way for the foreseeable future. Thriving local businesses are the food that keeps associations, chambers, beverage distributors, food purveyors, linen companies, etc. operational.

As more and more local businesses start to evaluate the value of each dollar spent, the RI Hospitality Association has recently unveiled a program that can affect and influence a wide array of businesses – it’s called First Impressions: Exceptional Customer Service™ and it can help anyone who has contact with the public, from customer service, to sales, to hostesses, hotel workers, and on.

The Rhode Island Hospitality Education Foundation developed this program in an effort to address some of the findings in our Skills Gap Study, released in 2008. There was overwhelming evidence that soft skills are an important barrier to advancement. Areas cited as those lacking were - communication skills, conflict resolution, leadership, problem solving and teamwork; all skills that are necessary in almost any given job that has interaction with the public.

This training program focuses on helping trainees to develop each of these areas in order to provide service at a level above and beyond what is expected by the customer. The heart of this three-hour training program is based on communication with add-on components including appearance, hygiene, posture, handshakes, and body language.

While many of us might not think that these subtle first impression components are as important as overt and verbal interaction, they are often more important. How you shake a hand or look someone in the eye and how neat your appearance is can often make all the difference in how the public views you – and by extension, the company you work for.

Participants are taught that these non-verbal exchanges are where the majority of communication occurs. Additionally, this program covers tone of voice, choosing the right words, serving dissatisfied customers and the use of different communication styles in order to more effectively work with customers and other team members.

The training is facilitated in a manner that appeals to all learning styles. A visual display of the presentation, hard copies of the training deck, lecture, skill practice exercises and group work are all incorporated into the session. This training can be customized to any employment level from entry level to managers to owners. The program is mobile and can be taught on-site at the employer’s location or off-site in a training classroom setting.

In addition to adding value to our RIHA membership, we are also offering it as a turnkey service to help other businesses in Rhode Island, including local chambers of commerce who can run this program for a fee to their membership. This helps increase the chambers’ value proposition and also helps us offset training costs.
It makes good sense for both an organization’s bottom line as well as filling a need for a new membership offering.

Embracing this type of training will not only better the public’s opinion of your company, but will also enrich your employees’ interactions with potential and existing customers.

Rising Marketing Tides Float all Boats

October 2009

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

In these challenging economic times as we’re seeing budgets cut and staff eliminated, when advertising is a luxury and marketing consists of a restaurant owner saying hello to his or her guests, finding a financially feasible marketing vehicle that can help many businesses at once seems far fetched.

However, marketing is still vitally important to keeping the business of hospitality moving in the right direction. As I repeatedly say, and as we all know, people will always need our venues to celebrate, to mourn, to reunite and to conduct business. However, out of sight is out of mind and unless you’re regularly offering big percentages off checks, chances are that business is still down from this time last year.

Late last year, our restaurant members at RIHA came to us and asked for help to increase their business’ visibility to consumers, to help them stay top-of-mind in the current economy. We were challenged to come up with a cost-effective, high-visibility plan that would literally fit every one of our restaurant members. That was no small task and, I’m pleased to announce the results of our efforts.

After much thought and consideration, we came up with a one-stop, one-shop, one-fit option...the RI Dine card www.RIDine.com which makes its debut this month.

RI Dine is a new, innovative gift card program that allows purchasers to spend the card at any restaurant that is participating in Rhode Island. The card is completely flexible – consumers can purchase any monetary denomination – and the card is ‘green’ in that it is also rechargeable. For this exciting venture, we partnered with Providence Monthly magazine, Washington Trust bank and Swipe It Technology.

There are many great benefits for members who sign on to participate in RI Dine including: a six-month advertising campaign in Providence Monthly, East Side Monthly, SO Rhode Island, The Bay and Newport This Week, website presence on the RI Dine website, and many public relations initiatives. Best of all, by participating, consumers continue to spend their money locally, which is so important to the local economy.

The cost to the restaurant is nominal, there is a one-time set-up fee and a small percentage of gift card sales go back to fund the program. Participating restaurants also receive window decals, a custom POP display for the program. The ability to run a restaurant’s own gift card program through the RI Dine system, and a discounted terminal to run the program if needed. Best of all, in most cases, the program can be integrated into an existing POS or stand alone credit card terminal.

In Rhode Island, where more than 60,000 residents get a paycheck from a hospitality or tourism job and with nationwide unemployment expected to hit double digits, the industry needs to pull together to find and create affordable marketing programs that can help everyone at the same time.

And, as the holidays approach and you look at your list of folks to buy for, having an option to buy a card that could be used in a wealth of restaurants in the state makes a lot of sense.

This program is certainly not unique to Rhode Island and can be affordably recreated in any state that wishes to do so. In challenging economic times, we need to rise to the occasion and continue to give consumers what they want – choice, ease, and great service!

Hospitality & Tourism – the Steam in the Economic Engine

September 2009

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

I have long been saying, and many of you are in full agreement, that hospitality and tourism play a huge role in a state’s economy. Our industry represents life’s necessities – eating, drinking, shelter, as well as a multitude of life’s little pleasures including movies, attractions, museums and beaches. However, the bottom line is that our industry gets people out there spending money to support the local economy.

Be this as it may, it seems that no matter where you live or what percentage of your state’s economy is comprised of revenue from our industry – lawmakers are continuously trying to slash tourism and tourism-related dollars. How many of you are hearing that your tourism budgets or tourism agencies are being stripped to the bone?

The industry does a fantastic job of bringing in revenue to state coffers, however, we cannot do it alone. We need the support of our state agencies to help us target our message and attract the right type of consumers – both business and vacationers.

In Rhode Island, more than 60,000 residents get a paycheck from a hospitality or tourism job and with our unemployment at the 2nd highest in the nation at 12.4% - the worst our state has seen in more than 30 years - the hospitality industry is a vital economic generator and job creator.

Unfortunately, even though restaurants and hotels provide millions of dollars to Rhode Island every year in the form of meals and beverage taxes and lodging taxes, our industry is often overlooked as one of mediocre or low-paying jobs, when in fact we are the 2nd largest industry in the state.

According to the Providence Journal (RI Unemployment Tops 12%, June 19, 2009) Leonard Lardaro, professor of economics at the University of Rhode Island, said in past recessions growth in manufacturing and construction brought the State out of the economic doldrums. However, that’s a thing of the past. Now, the growth engines for the state are tourism, healthcare and nonprofits.

Simply put, we cannot afford to cut dollars allocated for tourism growth. And, I know that we are not alone – how many of you out there throughout New England are facing a similar situation? The good news is that studies all seem to point to the fact that across the globe, travelers are opting to stay in their own backyards for leisure travel. In fact, recent articles on domestic tourism all report that going abroad – regardless of your country of origin – seems to be falling.

Therefore, it is vitally important that our tourism dollars are keenly focused on drive locations and easy flight paths, trying to capture those travelers who are still willing to/can afford to experience some time away from home.

The bottom line is that we need to continue feeding the hospitality and tourism industry so that we can continue to create jobs, keep our local economies moving, and ultimately help to restore consumer confidence.

Right now, we New Englanders are perfectly positioned to take advantage of what is a prime tourism season – fall. In all six states, we can boast beautiful foliage, scenic trails and hiking, wonderful restaurants, and rustic or luxurious accommodations.

The key is to work together with your own tourism engines to strengthen your message and ultimately, to create that targeted outreach and appeal to bring tourism dollars into your own backyard.

Dog Days of Summer Spur Burgeoning Energy Consumption

August 2009

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

Green is no longer just a color; it’s a way of life for many Americans and American business owners. Simply put, the environment can no longer support the population’s growing energy consumption. And, while resources are being funneled to find the newest and most environmentally friendly fuels, we all need to band together to help diminish our environmental footprint. It’s not only the right thing to do; it’s the most cost effective thing to do.

In this economy, we are all focused on our core business and trying to cleverly and inexpensively market ourselves to consumers to try and get our numbers back up to more normal times, so adding the task of becoming green can seem a little overwhelming.

The hospitality industry consumes vast amounts of resources; according to industry experts, a typical hotel purchases more energy in just one week than 100 families do in an entire year. And, if each hotel actively engaged in just one or two environmentally sound policies, from using non-hazardous and biodegradable cleaning products to using hybrid vehicles, the impact would be even greater.

For many years, the balance between the green line and the bottom line just didn’t match up. But balance is possible, thanks to evolving technology and economic considerations. For many companies, environmentally conscious actions need no longer be contrary to financial considerations with compact fluorescent light bulbs, low flow bathroom fixtures including toilets and showers, hybrid electric vehicles and more efficient refrigeration.

However, saving money on energy is equally as important as taking steps to limit consumption and usage. Remember the saying, there is power in numbers? We are all tightening the belt and pinching every penny right now. Here in Rhode Island, RIHA has an electric and natural gas buying program. While we’d like to think we’re on the cutting edge in the hospitality industry, there are many other states that also offer similar programs. A common trend, however, is that while many businesses have begun green practices, all too few members are signing up to reap the economic benefits of purchasing fixed price energy. By buying energy in a group directly from the supplier, your business can save thousands of dollars each year, freeing up funds that could be put towards the implementation of additional green initiatives, thus saving even more money and reducing the carbon footprint of your business.

So why the resistance? Well, there is some paperwork to read, understand and sign. And with so many of us solely focused on customer dollars, this can seem like a daunting task. Let me assure you, the first time you get an invoice that shows a drastic reduction in your energy bill, you will celebrate the few minutes that it took you to go through the paperwork.

Energy buying programs are most effective when a large number of members are involved. Simply put, the more people who come to the table, the better the rate. Through programs like these, we are able to negotiate rates that are far below the rates that ‘normal consumers’ receive through their local gas and electric company.
In fact, we have members that are saving up to 15% off their previous natural gas bills based on their usage. For some hospitality businesses, this represents a huge amount of money.

As these dog days of August begin and electricity bills start to skyrocket due to increased air conditioning and refrigeration costs, don’t let your business be one of those who suffer staggering energy bills each month. Join your local hospitality energy buying program and you won’t be sweating when your bill arrives.

The Importance of Having a Food Safety Plan

July 2009
By Dale J. Venturini
President & CEO, Rhode Island Hospitality Association

As the days are getting warmer and the hot days of summer are right around the corner, it is vitally important for each restaurateur to have a Food Safety plan in place. And, not only is it an integral part of doing business safely, it is also the law in Rhode Island.

Food safety is being taken seriously at a national level, as well. President Obama’s recent appointment of a new FDA Commissioner is a clear indication that food safety is a top priority for the FDA under the new administration. And, with so many foodborne illnesses being the top story on the evening news, it is no wonder that such a high priority is being placed on safe food handling throughout the United States.

What does this mean to businesses? According to the RI Department of Health (DOH), all food service establishments are required to submit and maintain a written food safety plan with standard operation procedures in accordance with the latest DOH code. Non-compliance with the food safety plan mandate could result in failure to pass inspection.

With limited resources at many state departments of health, there is more responsibility placed on business owners to ensure that their restaurants are compliant with food safety laws. To help avoid costly fines and irreparable damage to a restaurant’s reputation, it is imperative to get staff educated and compliant on the latest laws.

To help meet this need, the RI Hospitality Association is poised to announce the addition of a Food Safety Training Specialist to its staff. This person will provide on-site preventative inspections before the DOH comes into the establishment to screen for violations, identify and eliminate conditions hazardous to life and health in food facilities, as well as make recommendations to food service operators and assist in the development and implementation of Hazard Analysis Critical Control Point systems. The goal is to nip any safety problems in the bud before the DOH can levy fines and write up violations, and ultimately minimize the risk of foodborne illnesses.

In addition to on-site help, RIHA offers many classes to educate employees and managers alike including: Food Safety Plan Development Program, ServSafe® Food Managers Certification, ServSafe® Food Managers Re-certification, and the ServeSafe® Introductory Food Safety Training Course.

For readers outside of RI, I encourage you to visit your state’s restaurant organization’s website, your local DOH website or the National Restaurant Association – which has detailed information on food safety classes, www.restaurant.org, as well as listing where you can sign up for a nearby class.

And, safe food handling doesn’t just end in restaurants. The summer months mean more fresh fruits and vegetables are being purchased, handled and consumed at home. To practice safe food handling in your own kitchen, the Food and Drug Administration offers several safety tips for safe consumption:

• Always wash your hands before preparing food.
• Wash fresh fruits and vegetables with water. Soak produce for one to two minutes to reduce the risk of illness.
• Use a vegetable brush to scrub away microbes and bacteria.
• Always clean your counter top, cutting boards, and utensils after peeling produce and before cutting.

With what seems like a constant stream of news on new viruses and food borne illness around the world, we all need to take food safety seriously. One slip can cost your business thousands upon thousands of dollars in fines and lost revenue, and cause irreparable harm to your reputation. And, most importantly, it could cost you your health.

Don’t Judge a Law by its Label

June 2009
By Dale J. Venturini
President/CEO, Rhode Island Hospitality Association

There are a lot of good ideas out there that turn out to be not quite as good as they first seemed. Take the menu labeling law under consideration in Rhode Island; it has good intentions, but in reality, it would be needlessly confusing for customers and costly for small Rhode Island entrepreneurs.

The bill would mandate posting food calorie counts on all menus, menu boards, and drive-thrus for any restaurant that is part of a chain with 15 or more locations nationally. On the surface, that doesn’t sound ridiculous, right?

Well, put yourself in the position of a consumer stopping in at a small chain restaurant owned by a local entrepreneur. Our guest could be coming from Boston or Miami or even Tuscaloosa. Rhode Island’s unique labels may mean little – or worse, actually cause confusion – in that case. So there’s limited value customers will receive.

And now imagine, for a moment, putting yourself in the shoes of a Rhode Islander who saved up to start his or her own small franchise that is part of a national brand. They may only have one or two locations, but are now subject to a law essentially designed for major companies. Consider the experience of one New Jersey franchisee, who consulted a nutrition expert and estimated it could cost around $1 million to comply with the law and generate nutrition labeling for the 63 core items on his menu.

In short, our local franchisees will incur major costs, even though that is clearly not the intention of our elected officials. Good intentions or not, though, the impact to restaurant franchisees will be immense, given that approximately 29% of all restaurants are owned by franchisees (and that number jumps to more than 50% for the quick-service segment).

These economic concerns are heightened by the important role in that restaurants play in our State’s economy. Restaurants and foodservice companies are expected to employ 52,000 Rhode Islanders this year, which represents 11% of the State’s total employment. Now is not the time to target our State’s restaurants for costly new laws that could impair the ability to keep or grow jobs.

These problems, however, should not be construed as a roadblock to expanded menu labeling; rather, consider them a roadmap for a better route to informing consumers.

Instead of relying on a patchwork of State-based laws, which will drive up costs for our local businesses and further confuse customers who are looking for further nutrition labeling, Congress is already considering a federal law that would provide clear rules for restaurants nationwide.

Even better, the plan is already supported by businesses that know which regulations will best help consumers and keep local establishments competitive. Last October, more than 30 companies and associations that represent restaurant owners and franchisees, manufacturers, distributors, suppliers, business organizations and health organizations launched the Coalition for Responsible Nutrition Information. It supports federal legislation, known as the Labeling Education and Nutrition (LEAN) ACT, that would provide consumers in all 50 states with detailed nutrition information in chain restaurants and other foodservice establishments using a uniform, national standard.

The LEAN act is based on the Nutrition Labeling Education Act (NLEA). Just like the NLEA was enacted almost 20 years ago to meet consumers’ need for nutrition information on packaged foods and beverages, expanding NLEA to include food sold by chain food service establishments will give consumers what they want: more detailed nutrition information when they want it no matter where they are in the country.

The good news on menu labeling is that customers already have access to a wealth of information and federal officials are looking at ways to further expand these options. We should not let the good intentions of our local leaders to unintentionally harm our local entrepreneurs and job creators.

Halting Business Travel Puts the Breaks on our Local Economy

May 2009

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

Lately, it seems we’ve all been reading about various corporations that are taking bailout money and are still proceeding with lavish out-of-state events and functions. While I don’t think anyone agrees that these companies should continue with their opulent business travel, it’s important to distinguish the difference between this type of rare situation and necessary business travel conducted by millions of responsible companies.

Business travel is responsible for more than 2.4 million jobs nationally and injects more than $240 billion into the nation’s economy, providing $39 billion in federal, state and local tax revenues. This is a vital revenue stream that we cannot dam based on the actions of a few companies that are making national headlines.

Recently, in an effort to create transparency in spending and offer business travel parameters, the American Hotel & Lodging Association, and members of the meetings, events and incentive travel industries, joined in issuing guidelines on acceptable business travel practices to companies that have received emergency government lending. These guidelines are poised to offer assistance so that every company is able to participate in sensible and necessary business travel.

Even though we live in a world of telecommunications, videoconferencing and webcasts, face-to-face meetings are crucial to getting business done. And, we need to recognize that business travel cannot come to a halt without seriously damaging the economies of the states with which companies choose to spend their business dollars.

With every meeting and convention that comes to your home state, citizens recognize tangible tax relief in the form of subsidies from hotel and food and beverage taxes. According to the RI Economic Development Corporation, every 220 visitors to Rhode Island equals a new job here. And, visitor (business and leisure) tax contributions save every Rhode Island household $1,350.00 in taxes, annually.

In fact, business travel represents millions of dollars to Rhode Island every year from meetings and conventions business which also impacts hotel, restaurant, and attraction revenue. In fact, 26% of all tourism revenue is a direct result of business travel. With so many states facing massive deficits, we cannot discourage responsible business travel.

Even as our President has openly discouraged corporate travel and spending, his ‘meeting’ on January 20th brought in an estimated $150 million to Washington, DC businesses. I am certain every hotel and every restaurant in DC and in the surrounding states were thankful to have had such an incredible influx of people. It was possibly the largest-scale ‘convention’ in the area in recent memory.

At 10.5%, Rhode Island has the third highest unemployment rate in the nation, just under Michigan and South Carolina. When companies cancel corporate travel, it means blocks of hotel rooms stay empty, seats in restaurants remain vacant and the convention centers sit dark – this translates into hundreds of hourly workers being released from work. In a State in which one in every 10 Rhode Islanders has a job in the tourism industry, canceled meetings and conventions business equals hundreds of jobs.

The bottom line is that business travel equals jobs. We can’t afford any more job loss in Rhode Island, Michigan, South Carolina or anywhere else. We need to continue doing business and to welcome companies into our states to fill our convention centers, our hotels, our restaurants and our attractions.

This is not the time to call for business travel restrictions; this is the time to recognize that responsible business travel is integral to the success of the companies practicing it, as well as the states hosting it. Let’s continue welcoming business travel with open arms and be the true ambassadors who will keep the folks in our industry working.

Restaurants Need to Get Back to Basics

April 2009

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

As we all weather the recession, cutting back on those services and products that are not ‘essential,’ there is one area that is crucial to daily existence...food. As folks cut down on restaurant visits and opt to cook at home, now more than ever, it is critical for restaurateurs to have their finger on the pulse of what is happening in their front-of-the-house operations.

As business owners, proprietors tend to focus on back-of-house operations - food costs and waste, inventory and labor. Now, is the time to monitor each dollar carefully, but don’t get caught in your back room office. It is crucial to be on the floor, to talk to your customers, to bus a table and see what patrons aren’t eating. Often, what is left behind on the table can speak volumes about what should be happening in the kitchen.

If your plate presentation looks good, can you forego the pricey fruit or vegetable garnish that might look appealing, but is largely not consumed or noticed by customers? How do you know if they’re eating it or not? Get out there and see what your patrons are saying and doing. Pick up some dishes, see what is being eaten and what is simply window dressing.

What about bread? Times are changing...and while having rolls and butter on the table used to be the norm in most restaurants, it’s not anymore. By all means, provide this staple to your guests if they ask for it, but you can save thousands of dollars each year by providing it on a request-only basis.

And, another reason to spend more time talking to guests is that when the going gets tough, Americans get going- toward comfort foods and cozy experiences. As we all tighten our belts on spending, each dollar becomes more important and folks want to patronize the restaurants where the food is good, they feel welcome and are greeted warmly and remembered.

Think about it, when you and your significant other – or family – choose to go out to dinner, where will you go? Will you choose the restaurant where the owner is at the front door and says hello, asks if you’ll be having the usual, and asks how little Jimmy is doing in school? Or will you continue to have dinner at the restaurant where the hostess doesn’t greet you with anything except, ‘how many?’ and drops you off at a table without so much as another word. Make sure your restaurant is going to do what it takes to get repeat business and instill customer loyalty.

Now, is also the perfect time to capitalize on the current food trends of tapas-style meals (smaller portions, more cost efficient) and a return to cozy menu offerings that provide comfort during troubling times...dishes like meatloaf and mashed potatoes or macaroni and cheese.

Remember, as a restaurant owner, you are the backbone of Rhode Island’s economy and have a duty to fulfill; it’s no small challenge. You need to stay in business and thrive in order to provide valuable jobs.

In fact, restaurant jobs represent 10.2 percent of total employment in Rhode Island, and restaurant sales generate tremendous tax revenues. In 2008, restaurant revenue in the State was nearly $2 billion. According to the National Restaurant Association, every dollar spent in Rhode Island’s restaurants generates and additional $.83 in sales for the State’s economy.

Now, is the time to get back to basics. Spend the time in the front-of-the-house, talk to your customers, see what works and what is wasteful on your menu. Right now, we all need to feel reassured, comforted and valued. Remember, at the end of the day, we are truly a high-touch, as well as a high-tech, industry.

Attracting Visitors is Key in 2009

March 2009

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

We are facing serious budget shortfalls on state and national levels. In this unprecedented era of congressional bailouts and money woes across all industry lines, it has never been more critical on a local, budgetary level to promote tourism and to reinforce drive destinations.

With gasoline prices holding steady below $2.00 per gallon, it is the perfect time for New England states to really aggressively promote tourism throughout the region. It has never been a more affordable option to visit Newport from New Hampshire or to drive to Bar Harbor from Rhode Island and stay for the weekend.

Hotels provide enormous tax benefits to states in the form of occupancy and lodging taxes. In Rhode Island, our hotels provide $16M in taxes to the State. These are crucial dollars to our local economy.

But, as we know, tourism has been as hard hit as any other industry beginning in the last quarter of 2008. According to a recent industry report by STR Global on more than 36,000 hotels, the U.S. hotel industry finished 2008 with a 60.4% occupancy rate, an average daily rate of $106.55 and revenue per available room of $64.37. The occupancy rate was 4.2% lower than in 2007. STR also predicts that the hotel business won’t get better until the second half of 2009.

So, it is vitally important that we all become ambassadors for our state’s tourism industry. Tourism is the second largest industry in Rhode Island, employing more than 67,000 people. According to the RI Economic Development Corporation, every 220 visitors equals a new job in Rhode Island. Tourism’s tax contribution saves every household $1,350.00 in taxes, annually. And, one in every 10 Rhode Islanders has a job in the tourism industry.

With unemployment rates skyrocketing across the nation, the tourism industry is perfectly placed to provide some employment relief. Tourism is an industry that will never be outsourced in any state. We can build cars in Mexico and we can manufacture in China, but our attractions, beaches, hotels and restaurants are fixtures that can only be enjoyed by visiting.

The big push is to Buy American and support America...well, there is no better way to do this than to patronize our great attractions, eat at our restaurants, stay at our hotels and visit our museums, aquariums, and national parks.

Tourism keeps Americans working. Tourism is a vital economic driver. We all know that there is no better way to promote a destination than by word of mouth. I encourage all of you to spread the word about what your own state has to offer. Talk about Maine’s coastline, New Hampshire and Vermont’s skiing, Massachusetts’ great sports teams, Rhode Island’s vibrant arts, and Connecticut’s quaint towns. Encourage those you know and can affect to take that road trip, to patronize hotels and restaurants and to become part of the bailout solution. Consumer confidence has to return and we have to do everything we can as private citizens to help return our country to normalcy.

Tourism dollars are crucial components to every state’s bottom line. And, there are so many fantastic packages to be found all over New England. Be a tourist yourself, bring your family and enjoy a neighboring state’s attractions and of course, recommend Rhode Island. While we are the smallest State, we have some of the best restaurants and hotels in the area and I for one am proud to represent such a vibrant and dedicated industry.

Industry Forecast for 2009: Cooperation, Communication and Collaboration

February 2009

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

“For last year's words belong to last year's language and next year's words await another voice. And to make an end is to make a beginning." -T.S. Eliot, Nobel laureate in literature

Congratulations, 2009 is underway and we’ve made it through one of the toughest economic years in recent times. I’m not sure about you – but I am absolutely glad to say good bye to 2008. There wasn’t a single industry that remained unscathed by the impacts of Wall Street, unemployment, the housing market, and previously exorbitant gasoline prices.

The mantra that we all need to apply to this year is: cooperation, communication and collaboration. It has never been more important than now for all of us to work together to help shore up the base of our industry. There are some significant cracks in the foundation all across our nation and while our natural inclination is to huddle tight and protect our own, we need to work together – across the board – in order to not only survive, but to also thrive.

According to the National Restaurant Industry’s 2009 Forecast, every move matters. From marketing and menu innovation, to rising costs and consumer needs, every step along the way is critical as we move into the new year ahead.

The NRA projects that the restaurant industry is in fact expected to grow. Total restaurant-industry sales are forecast to rise to nearly $566 billion – a projected rise of 2.5 percent. What does that mean in real terms? Well, with adjustments for inflation, the industry’s sales are projected to decline 1.0 percent in 2009. This decline would mark the second consecutive year of real-sales declines – which is the first such occurrence in the 40 years that the NRA has been tracking industry sales.

But, it’s not all bad news. The NRA also reports that consumers remain strong in their desire to frequent restaurants. In fact, 45 percent of adults surveyed say restaurants are an essential part of their lifestyle, although 35 percent report not going out as often as they wish due to the economy.

However, the industry is still among the Nation’s strongest. And, in a time when it seems every industry is looking for a helping hand from the government, including the big three automakers, our industry still stands on its own two feet. This year, restaurant and foodservice locations are expected to hit 945,000 outlets and provide employment opportunities for 13 million people. By comparison, the US Auto industry employs approximately two million people from manufacturing, to parts, to dealership positions.

What can you do on a local level to entice patrons into your establishments? Well, first and foremost, do not take the path of least resistance. Many restaurants are offering half-price and other discounted gift cards in 2009, as a means to get an early cash infusion. While your first quarter will look good, you will NEVER recover from this loss and in a year where every move does matter, you need to be smart about how you discount.

The top trend the NRA sees is an expanded focus on value, in conjunction with operational improvements that cut costs without taking away from the dining experience. This doesn’t mean that folks have an eye to cheap, unhealthy foods – quite the contrary. In fact, 2009 will bring an increased demand for more healthful food choices, small plates, organics and locally-grown produce. Restaurants that can create value-focused menus that incorporate components of local produce with a focus on smaller Tapas-style plates should do well.

Our industry is definitely a powerhouse and it’s because of the shared cooperation, communication and collaboration among operators, owners and managers. We all need to understand that the rising tide floats all boats. And, as 2009 will surely demonstrate, there has never been a more critical time to have that tide on the rise.

The Stars Shine Everyday

January 2009
By Dale J. Venturini
President/CEO, Rhode Island Hospitality Association

Recently, the Rhode Island Hospitality Association held its Annual Meeting and Stars of the Industry Awards dinner. More than 400 hospitality and tourism employees joined together to celebrate the accomplishments of colleagues, friends and family. The Stars of the Industry Awards recognize the outstanding achievements of members of the hospitality, foodservice and tourism industries. Award recipients were chosen not only for their dedication and contributions to their careers, but for their involvement in their local communities.

The success of Rhode Island’s hospitality and tourism industry is a reflection of the individuals and businesses that make up the industry, and it is with great pleasure that I congratulate all of this year’s Stars of the Industry winners for their tremendous accomplishments. Their achievements go far in making the hospitality and tourism industry one of the most successful in Rhode Island, in fact, we are the second largest industry in the State.

Our employees continuously strengthen the industry’s position as the cornerstone of the economy and the community. We are fortunate to have some of the best and brightest out there who are looking to make a difference and create a career for themselves.

The event gives us the opportunity each year to showcase the individuals who make up our industry. We should highlight these individuals, as well as the more than 67,000 employees who make up the fabric of the industry each and every day. From servers to general managers, housekeepers to security personnel, and chefs to sales managers, our industry runs the gamut on viable employment and career paths.

But, more so than recognizing the individual achievements of employees during an annual dinner, we should all take a moment to thank those who we come in contact with in the business. Hospitality venues comprise the backdrop of every important milestone in our lives, and we often overlook the folks who are at the ready to serve and to make your memory a good one. How often have you been to a restaurant and said, ‘the food was good, but we had an amazing server who really made our dinner special,’ or ‘the hotel was beautiful, but the concierge went out of her way to help us find that perfect spot for dinner.’

Hospitality workers are the magic makers, they are the folks who add a sprinkle of fairy dust to create a special memory. They help make a romantic dinner memorable by offering suggestions and wine pairings, they make a hotel stay brighter by providing a room with a great view and they make a child laugh by leaving a bunny made from hand towels and elastics on the bed; they are the memory makers and they are an important part of all of our lives.

With the economy officially in a recession, we know that folks have less disposable income to spend in restaurants, hotels and attractions. And, when they do go out, they are often not as cheerful as they have been in brighter economic days. However, a kind word of thanks can go a long way. As we know, difficult times can either bring out the best in us or the worst. Let’s focus on the best – in fostering a culture of community and supporting one another in our own backyard.