Think Outside The Box

Dale J. Venturini

President/CEO, Rhode Island Hospitality Association

While the economic recovery is slow to materialize, let us remain focused on our marketing efforts and keep our goals front and center. In my book: when the times get tough, the tough get creative!

Most of us who have experienced the many ups and downs of business understand that now is the time for more creativity, not less. We would do well to remind ourselves about what made us successful in the first place, and stretch our thinking beyond the traditional marketplace.

In a time when Facebook, Twitter and Google dominate the headlines, let us be cognizant of the fact that it is our thinking outside the box which will expand our business, increase our customer satisfaction, and boost our bottom line performance.

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.

So, ask yourself these questions: When was the last time we did something different than what people expect? When have we ever created something wacky or off-the-cuff? How can we create a buzz and get people talking about what we’re doing?

Then, surprise your employees and customers with answers outside the realm of normalcy, saying “why not” instead of “don’t go there.” Some thoughts include: Why not create special celebrations and promotions around creative holidays such as Belly Laugh Day (January 24), Armed Forces Day (May 21) or Citizenship Day (September 17); Why not Meatless Mondays, Wacky Wednesdays or Thrifty Thursdays; Why not a 55-plus coffee club where customers 55 years of age and older receive free coffee.

In these challenging economic times when 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 creative marketing vehicle seems far fetched. But we’re only limited by power of our creativity. Thinking outside the box will keep us, our staff and our customers energized for the steps ahead and keep us focused on the light at the end of the tunnel.

Exercise Your Voice

Dale J. Venturini

President/CEO, Rhode Island Hospitality Association

It’s no secret that hospitality and tourism is a vital economic engine across New England. In Rhode Island, it is the fourth largest industry, employing more than 60,000 people. In addition, our industry, which is largely comprised of small businesses, contributes millions upon millions of tax dollars to our state coffers, annually.

Therefore, as we're poised to make some big decisions this month, it is of critical importance that we understand where each of our political candidates stand in fostering and protecting our industry as we move into 2011.

Each of us would be wise to make every effort to get the facts and know where our own state politicians stand on the issues of tourism, small business taxes, immigration, health care and job creation. As the elections approach, let us poll our candidates and know where they stand on the myriad issues affecting our industry.

With so many states facing economic crises, gambling is a particularly hot topic now in New England, especially in Massachusetts. It's seen as the panacea to fill rapidly-dwindling state coffers. We also recognize that new attractions like casinos, as well as expanding current landmarks translates into more visitors and more jobs. Therefore, where do our candidates stand on the expansion of casino gaming? To some, this is seen as a boost to our economic recovery, to others it’s seen as an economic burden that will tax our police and fire services, elevate the crime rate and ultimately hurt surrounding small business. Where do your candidates stand on this hot-button topic? Further, what is their vision for developing new attractions that would lure new visitors to your state?

We see a great influx of visitors traveling across our neighboring New England states. Given the fact that so many of our roads and bridges are in poor structural shape, what will our candidates do to make the gateways throughout New England more accessible and user friendly?

In Rhode Island, the extension of the runway at TF Green Airport has been deemed essential by the business community to grow the economy in our state and across New England. But what role will our new Governor play in the future growth of the airport specifically in the areas of luring additional airlines and expanding the service of existing carriers, and making the intermodal more relevant with expanded service?

And, this begs the bigger question surrounding our public transportation systems, which have long been hampered by a lack of financial resources. Here in RI, the trolleys in Providence and Newport have been in decline and disrepair, and the Providence to Newport ferry has been discontinued due to lack of funding. What steps would the candidates take to enhance public transportation as it relates to the visitor industry?

We hear lots of talk about the "brain drain" as students from institutions of higher learning leave our states after graduation because we lack the jobs to keep them here, coupled with unaffordable housing across New England. We need to hear our candidates' plan to stimulate job growth and retain the next generation of workers as they graduate.

The Governor of California made headlines as a pitchman for tourism in his state. What plans do our next leaders have for fixing and funding comprehensive statewide promotional efforts in our own states? Can we picture our own gubernatorial candidates as the next ambassadors of tourism?

These questions and more need to be investigated by our industry in each of our own backyards. Please research your candidates; please see if they are true industry champions that will assist our future growth. Check out their websites, send them emails and call their offices. Let’s get out the vote and be sure we champion the right candidate for the job. We all have the opportunity to vote this month, let's be sure we're connecting the right lines on our ballot entries.

Marketing Equals Value, Not Discounting

Dale J. Venturini

President/CEO, Rhode Island Hospitality Association

"Many a small thing has been made large by the right kind of advertising." - Mark Twain

As you probably have noticed, I have been on a kick lately about not discounting your service or brand. It seems like a quick pick-me-up for businesses in a down economy, but in actuality, it’s a slippery slope that once you start down, is almost impossible to climb back up to ‘normal’ pricing.

In the world of public relations, the mantra ‘first, best, unique’ is what plays heavily into getting noticed by consumers and media alike. The same is true in marketing. While many of you reading this are probably not sitting at the helm of a marketing budget fortune, I’m sure the majority of you are clever, smart individuals who want to get noticed, don’t necessarily have the advertising or marketing dollars to make a big splash in this economy, and are genuinely interested in trying something new to entice more business.

In addition to my position with the RI Hospitality Association, I also sit on the Board of the Rhode Island Convention Center Authority which oversees our arena, the Dunkin’ Donuts Center in Providence. I cannot help but notice all of the Justin Bieber hype going on right now, and it got me to thinking about what a coup it would be for local restaurants to tie-into this national, upcoming concert tour. And, with all of the advertising promoters airing on TV, print and radio, awareness has never been higher. I’m sure wherever Justin is performing, the same hype will be following and consumer awareness is going to be high.

Using the Bieber concert as a tie-in, why not capture the entire family for this teen and tween-focused concert? Perhaps, restaurants could create a complete family meal for a set price and theme it around Bieber Fever? Restaurants could either create an experience for families prior to heading to the concert, or for parents who are dropping off their older children to see the concert, perhaps target them with a different offer to occupy them during the concert period. There are so many ways – that are not copyright infringements – to tie into existing big events. Put your creative minds to use!

Similarly, New York’s famous Radio City Rockettes are currently embarking on a 25-city, nationwide Christmas tour. Not only does nearly 90% of the American population know who the Rockettes are, but they’re also appearing on national morning television promoting the tour, so again, awareness is at an all-time high. If your restaurant is located close to a theater that is showcasing the Rockettes, why not make a special theater dinner package that includes a prix fixe dinner geared to get patrons in the door before the concert, include a special holiday ornament or other celebratory incentive, and market it in conjunction to the show? All it takes is a little ingenuity and creativity. Use your restaurant as your first line of communication. Put up signs or add tent cards detailing the special offer and let word-of-mouth begin!

Additional popular shows like Disney On Ice – Disney/Pixar’s Toy Story 3 is currently on tour through December nationwide. It screams for a fun dinner package for the whole family that includes a Buzz Lightyear or Sheriff Woody character giveaway for the kids and a fun, themed menu. Again, build in the price of the item into the offer – you don’t have to discount or giveaway, it’s all about perceived value. And, it’s all about fun, new, different.

I encourage you to make some community connections with your local theaters or arenas and see what’s coming down the pipeline and what you might be able to create based on the event or show. Again, it doesn’t take a big advertising or marketing budget to get the word out – you have a built in audience with your existing customer base. Use them as the point of contact to spread the news on what’s new. Or, if your business uses social media, use it to push out fun specials that you’re running. Don’t be afraid to try something new as long as it’s not a deep discount.

What’s the worst that happens? You don’t sell that offer, but at least you haven’t created the perception that your brand/offer is only worth a percentage of its value.

Digging in Deep with Discounting

Dale J. Venturini

President/CEO, Rhode Island Hospitality Association

“Don't compromise yourself. You are all you've got.” – Janis Joplin

The recession has spawned a burgeoning market of discount forums for hotels and restaurants. Consumers can purchase restaurant gift cards for up to 50% off through dedicated websites, local radio stations and television stations. It seems that nearly every medium is trying to corner the market on giving you the biggest bang for your buck.

Who wouldn’t want to purchase a $100.00 gift certificate at their favorite restaurant for only $50.00? Why, we’d be foolish not to! We have become a society that regularly expects discounts. We assume that we are constantly overpaying and if we don’t get a deal on our hotel room through Orbitz, Priceline, Kayak, or a host of other discount travel sites, we are obviously overpaying.

Retail shopping has long been targeted by discount sites. When consumers order clothes, furniture or even pet supplies online, there are dedicated coupon and promotional code sites just waiting for a consumer to peruse offerings on everything from 10% off their order to free shipping codes. In fact, who orders anything online anymore without a promotional code? That’s why there is a dedicated area on nearly every retailer’s website just begging you to put a code in for a special deal.

The actor, William Shatner, shows us through his clever commercials that hotels often sit on high-priced rooms until the last minute. In fact, if you wait to book until you’re about to arrive, you can often get a four or five-star hotel for as little as $69.00...in fact, name your price! Hotels have inventory and they don’t want their rooms to go vacant. So, negotiation is anyone’s game.

What does all of this tell consumers? Well, it clearly is teaching that the hospitality business is in fact in the business of overcharging people. And, if we all wait until the very last second, we can often get deep discounts. Now, those of you who are hoteliers know that you would prefer holding your rates and having advanced bookings. Restaurateurs would prefer that consumers pay face value for gift cards. However, as an industry affected so harshly by our nation’s sagging economy, we’ve resorted to deep discounts on our products.

We have, in effect, trained customers to expect to pay less. However, once consumers are used to getting deals and paying discounted rates, it is very hard to bring prices back up to where they should be in normal economic times. This is a dangerous and spiraling practice that we should not, as an industry, buy into.

While I understand that we have to provide incentives and discounts on occasion – particularly to entice group or large-scale business – price cutting and rate lowering is not a practice that should be considered lightly. Instead, we need to focus on value-added incentives to ensure and protect the quality of the brand.

Hotelier Angelo DePeri general manager at the Renaissance Providence Hotel in Providence, RI, has taken this tact to attract consumers to book at his hotel. “We have tried to maintain our rates by focusing on value added amenities like free internet and breakfast.” DePeri has lost business to area hotels that are willing to offer deep discounts, but has been able to maintain his rate and book business because of adding perks and incentives.

In tourism-dependent Newport, RI, Hotel Viking general manager Mark Gervais felt the affects of last year’s economy heavily, but hasn’t let the economic downturn change his rate structure. “I am a firm believer that discounting heavily will take you years to get the rates back up. I do see many hotels using the strategy that lower rates create demand, but I don't believe in that practice even a little bit.” Gervais reports that the Viking has rebounded well in 2010 and expects the trend to continue through 2012.

Remember, at the end of the day, how you represent and price your business to consumers is a reflection of what you believe your brand is worth. If you are continuously discounting your products and services, you’re sending the wrong message to consumers. Once you start down that slope, it is almost an insurmountable obstacle to climb back up. It is far better to offer incentives and value-added amenities to an existing rate than slash prices. And, it gives an operator the ability to ease off on the incentives without compromising value once the demand increases. Once you cut prices, however, it’s almost impossible to bring them back up.

Are Your Servers Alcohol Safe?

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

“Bacchus has drowned more men than Neptune.” - Giuseppe Garibaldi (July 4,1807 – June 2, 1882)

Now that the summer is fully upon us and restaurants are hopefully filled with summertime patrons looking to relax, enjoy a great meal and have an icy-cold beverage, it’s time to talk about safe alcohol service.

Every state in our nation has laws on the books that require anyone who handles and serves alcohol to be trained in safe alcohol service. Often, this includes valets, supervisors, door staff and managers.

The National Restaurant Association’s ServSafe™ Alcohol® program is an approved program by the Alcohol Beverage Control Commission in 47 states – and this includes every state in New England.

In Rhode Island, certification is valid for three years and employees must be trained within 60 days of their hire date – although, there is legislation that will be debated this fall changing the training mandate to within 30 days of hire. Check with your local state’s regulations to determine when you need to train employees, what is required and if a supplement is also mandated.

Now, why is it extremely important that servers are properly trained? Well, beyond the obvious and important issues of patron consumption and safety, your establishment and your server could face steep penalties including fines, imprisonment, loss of your liquor license, and loss of your business. It’s critically important that every member of your staff understands what his/her liability is so that the job of serving the public is taken seriously. It is also your responsibility to ensure that your staff is trained in service and what to look for from fake IDs to an intoxicated guest.

There is potential criminal and civil liability for the server and/or business owner if a minor or a guest who appears to be intoxicated is served and/or this service results in injury to the guest. Penalties can drive up insurance rates if not completely bankrupt a business depending on the severity of the situation.

Here in Rhode Island, we’ve been hearing reports that local police departments are frequenting high-traffic, tourist-driven restaurants undercover in an effort to catch a bartender or server not following safe alcohol handling. The last thing a business owner needs is to have is the police in the establishment making arrests. Not only is it not good for business at that time, the subsequent negative word-of-mouth and potential media interest can be devastating.

What does it take to get your employees certified? You can check with your local restaurant or hospitality association to see if they offer ServSafe™ or other state-approved courses. In most cases, employees can either take the course one-on-one with a teacher, in a classroom setting, or online when it’s more convenient for them. Because it was developed by the industry, it represents many real-world scenarios that employees can face in their line of work. In addition, it also teaches alcohol law, responsibility, recognizing and preventing intoxication, checking IDs properly and handling difficult situations.

The cost of training is generally not prohibitive and is certainly more affordable than facing serious issues down the line. For more information on the ServSafe™ Alcohol® safety program, visit http://www.servsafe.com/ for a full list of offerings, as well as specific regulation information on your own state.

Receiving Food Deliveries: Are you Being Safe?

By Dale J. Venturini
President/CEO, RI Hospitality Association

"The history of government regulation of food safety is one of government watchdogs chasing the horse after it's out of the barn." - David A. Kessler, M.D. (FDA Commissioner)

We’ve all read the widespread reports of food-borne illnesses spread through bacteria discovered in various food sources. In fact, just recently the New York Times ran a piece on a particularly virulent strain of E. coli bacteria found in lettuce that sickened 26 people in five states. And, it was just a few months ago that millions of pounds of ground beef were also recalled because of suspected E. coli bacteria.

While much of the problem lies in not really knowing where our food is truly being sourced from, an entirely separate factor is at work here, the safe transportation of food.

Whether you are reading the reports of these recalls and sickness or are experiencing your own crisis in your own restaurant, there can be dire consequences to a food-borne illness outbreak. Here in Rhode Island, we recently worked with a local restaurant owner who owns multiple businesses and who unfortunately received some of the tainted product you might have read about in the media. This resulted in making several residents ill and had the possibility of creating a disastrous outcome for him.

This prompted me to think about all the ways that we need to protect ourselves...not only in the safe handling and preparation of food, which I continually stress to our membership, but also in the safe reception (transportation) of food products.

Recently, I had an occasion to be at a long-standing, large, family-owned restaurant while food deliveries arrived. I was able to witness a manager test the temperatures of all food items BEFORE they ever left the delivery trucks. The restaurant does not accept any foods that are not compliant with RI food code. RI law stipulates:

3-202.11 Temperature.*

(A) Except as specified in ¶ (B) of this section, refrigerated, POTENTIALLY HAZARDOUS FOOD (TIME/TEMPERATURE CONTROL FOR SAFETY FOOD) shall be at a temperature of 5°C (41°F) or below when received.

(B) If a temperature other than 5°C (41°F) for a POTENTIALLY HAZARDOUS FOOD (TIME/TEMPERATURE CONTROL FOR SAFETY FOOD) is specified in LAW governing its distribution, such as LAWS governing milk and MOLLUSCAN SHELLFISH, the FOOD may be received at the specified temperature.

(C) Raw EGGS shall be received in refrigerated EQUIPMENT that maintains an ambient air temperature of 7°C (45°F) or less.

(D) POTENTIALLY HAZARDOUS FOOD (TIME/TEMPERATURE CONTROL FOR SAFETY FOOD) that is cooked to a temperature and for a time specified under §§ 3-401.11 - 3-401.13 and received hot shall be at a temperature of 57°C (135°F) or above.

(E) A FOOD that is labeled frozen and shipped frozen by a FOOD PROCESSING ESTABLISHMENT shall be received frozen.

(F) Upon receipt, POTENTIALLY HAZARDOUS FOOD (TIME/TEMPERATURE CONTROL FOR SAFETY FOOD) shall be free of evidence of previous temperature abuse.

How many of you who own restaurants are having your food deliveries properly temped before you accept delivery? If you’re not, you really need to...particularly in these hot summer months...a lot can go wrong with refrigeration during transport.

Let me go a step further here, for those few times when you need to run out and pick up perishables in your own vehicle, you need to make sure that you’re transporting the food items safely using coolers and ice packs. It’s not okay to simply put meats, dairy, eggs, etc. in the back of your car – even if it’s for a 10 minute trip back to your business. It’s always better to be safe than sorry.

At the end of the day, it won’t be your supplier or distributor that customers will blame and the media will focus on...it will be you and your business for not taking the adequate steps to ensure that the food you serve is safe. Remember, the public has a long memory and no bad news spreads faster than hearing that someone got sick in a restaurant. It is the easiest and most preventable way to destroy your business.

Please, review your own state’s food codes, make sure you are compliant to the letter of the law, and review your procedures for the safe transport and receiving of any foods that come through your doors for public consumption.

Social Media

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

“Tell me and I forget. Teach me and I remember. Involve me and I learn.” – Benjamin Franklin

While Benjamin Franklin, one of our nation’s founding fathers, may not have foreseen the advent of social media in the 1700s, he certainly realized that in order to engage an audience, you need to include them in the conversation, not just lecture to them.

Social media is really about becoming part of the conversation. Whether it’s through Facebook, Twitter, YouTube or other bookmarking sites, in order to use this medium successfully, you need to be targeted with whom you engage to affect the best results. These forums were set up so that INTERESTED parties could engage in common interests. Imagine if you could advertise to just those folks who were actually interested in your message? Well, this medium allows that – and at no cost except the operator’s time and energies to keep the content fresh.

Many of us are still confused with this new platform – what is it? How can I use it? Does it work? Is it really free? The long and short of it is that it is a new way to connect to people who share your similar interests and goals. If you own a restaurant, you engage foodies, oenophiles, culinary media, etc. If you own a bar, you can engage a similar crowd and wine & spirits media.

Most of us are probably familiar with Facebook – it’s a great way to stay in touch with people you might have lost contact with. While billed as a consumer-only site, many companies have successful pages on this medium and regularly share news on their products and offerings in a non-overt sales way to interested consumers. In addition, many business owners also run Facebook-only contests and promotions – often giving out codes for special discounts, appetizers, etc. It’s a great – and cost-effective – way to share your message with interested fans and followers.

Twitter is a great medium for ‘contributing to the conversation.’ If the topic of the day is culinary, then it’s a great way for a restaurateur to add his or her two cents on a range of topics – not always with regard to his or her business – but, often on a macro level. Twitter is like a constant news feed, fed by media, consumers and businesses; each entity trying to spread a message on a macro or micro level to interested and engaged followers. Twitter, like Facebook, is also a fantastic medium for contests and promotions for your followers.

YouTube, a clearing house for all things video, really works if you have a great commercial that you’d like to share or video from a recent event that went well, etc. It’s a video website where consumers can search by category, title, etc. Again, it’s the ability to reach a targeted audience who has the opportunity to view only subjects that are of interest to them.

Now, how big is social media now? Well, according to the National Restaurant Association’s (NRA) Industry Forecast for 2010, there will be a huge focus on new media to reach new and returning guests. In fact, social media and networking sites like Twitter and Facebook will continue to play a large role in the way consumers receive information. Good old fashioned ‘word of mouth’ which is probably the best form of PR out there, has moved to the social space. If you don’t have a social media plan – you might want to think about creating one for your property this year.

A recent report by the Pew Research Center, a nonpartisan, nonprofit "fact tank" that provides information on the issues, attitudes and trends shaping America and the world, recently unveiled some pretty compelling facts on how Americans use different platforms to get their information. In fact, 92% of Americans use multiple platforms including the Internet, which is the third most popular information platform behind local and national news and ahead of print newspapers and radio.

According to the Center, the internet and mobile technologies are the reason consumers relationship to how they receive news is changing. In today’s new multi-platform media environment, news is becoming portable, personalized, and participatory. In fact, 37% of internet users have contributed to the creation of news, commented about it or disseminated it via postings on social media sites like Twitter and Facebook. The study also showed that people use their social networks and social networking technology to filter, assess, and react to news.

These are very powerful stats! With 92% of Americans using platforms that include the internet, mobile technology and social sites to gain access to news and information, it is a huge opportunity to target and capture a whole new audience of interested and participatory consumers.

The bottom line is that with a pool that large, if you have a targeted plan, you will successfully and efficiently be able to reach new consumers.

Industry Forecast for 2010: Opportunity

March 2010
By Dale J. Venturini
President/CEO, Rhode Island Hospitality Association

“Catch a man a fish, and you can sell it to him. Teach a man to fish, and you ruin a wonderful business opportunity.” – Karl Marx (1818-1883) German philosopher and political economist.

Opportunity is the name of the game for the restaurant and hospitality industry this year, according to the National Restaurant Association’s (NRA) Industry Forecast for 2010. With the country’s economic woes and collapse of the financial market seemingly in the past, Americans have a pent-up need to spend money.

As steady or decreasing employment figures show slight glimmers of hope, the retail industry’s numbers show increases, and the federal stimulus programs continue to put dollars back in American’s pockets, we all feel a stronger sense of consumer confidence. With consumer confidence, comes the return of discretionary spending.

The restaurant industry is at the ready to welcome consumers with open arms. From prix fixe menus, to specially-priced family dinners, to quick-service meal options, to cut-rate gift cards, the industry has been doing what it takes to keep people coming through its doors during the economic downturn.

It’s been a long haul, but all of the hard work will pay off this year according to the NRA’s Forecast. In fact, the organization projects the industry to hit $580 billion this year, a rise of 2.5% from 2009. This equals more than $1.5 trillion in overall economic impact and represents 4% of the U.S. gross domestic product.

Once again, the industry will remain one of the largest employers in the nation, giving jobs to approximately 12.7 million workers. The amazing thing about these numbers is that we’re not talking about huge corporations here...the majority of our industry is comprised of small businesses. In fact, of the 945,000 restaurant locations throughout the United States, the majority employ 50 workers or less.

The NRA Forecast also identifies numerous opportunities for restaurants to build their business this year. Consumer preferences remain largely unchanged from last year with a focus on speed-of-service at QSRs; elegance in fine dining; and the ability to conveniently try the next ‘best thing’ at their local coffee shop or restaurant.

Restaurants are so much a part of our lives that according to the survey, nearly four in five consumers believe that going to a restaurant with family or friends gives them opportunities to socialize and is a better way to use their leisure time, and nine out of 10 adults report going to restaurants on a regular basis.

With this built-in market, it would seem that the industry will have smooth sailing this year. That’s not quite true...operators need to still be mindful of their costs and of providing consumers with what they are looking for. Most experts agree that while the economy has turned a corner in 2010, we still won’t see the levels of consumer confidence and spending that were prevalent prior to the economic downturn in 2008, until the last part of 2010 or early 2011.

In the interim, however, marketing to consumers with an eye to what they’re looking for will help an operator’s bottom line. 65% of adults say their favorite restaurant foods provide flavor and taste sensations that they can’t readily duplicate at home. 40% of consumers say that buying restaurant, take out or delivery meals make them more productive on a daily basis and 29% of consumers report that take-out food is absolutely essential to the way they live.

Other trends include continued marketing of healthful menu items, an eye to ‘green’ products and offerings, delivery and other off-premise options, cooking and other interactive classes and a focus on new media to reach new and returning guests. In fact, social media and networking sites like Twitter and Facebook will continue to play a large role in the way consumers receive information. Good old fashioned ‘word of mouth’ which is probably the best form of PR out there, has moved to the social space. If you don’t have a social media plan – you might want to think about creating one for your property this year.

Our industry is definitely a powerhouse and will remain an essential part of the nation’s economy this year. Keeping an eye on costs, finding new ways to reach consumers and giving customers what they want are all critical to growing the bottom line.

Could we be Facing the Scarlet Letter?

February 2010
By Dale J. Venturini
President and CEO, Rhode Island Hospitality Association

Just when we put the turmoil and financial adversity of 2009 behind us, there is a new threat to business lurking on the horizon – restaurant sanitation grading by boards of health and sanitation departments.

It’s no secret that many state budgets are in decline and facing even steeper cuts. As such, state services suffer and restaurant inspections across the board are down. States just don’t have the adequate manpower to inspect restaurants in a timely fashion.

While some proprietors may take advantage of the situation and not keep a careful eye to their establishment’s compliance, it certainly doesn’t behoove any owner to take a lackadaisical approach to cleanliness and sanitation.

There is no easier and faster way to kill your business than to have an outbreak of a food borne illness originate in your restaurant. And as we all know, word-of-mouth spread from patrons who might notice a lack of cleanliness has been the downfall of many an establishment.

Because there are not enough inspection resources available, it is the obligation of every restaurant proprietor to continuously ensure that he or she is doing her part to be compliant with state law. There are numerous ways to accomplish this, and first and foremost, checking your state’s department of health regulations is a good starting place. In addition, many of your state restaurant associations offer ServSafe® classes in safe food handling and preparation. Finally, some associations, including RIHA, offer Food Safety Self-Inspection Programs that are approved by your state department of health.

It is in the best interest of restaurant owners to be compliant and to take the necessary preemptive steps to maintain a clean environment – or be faced with the potential of having your place of business branded with a ‘scarlet letter’ designating your cleanliness and compliance level.

Sanitation grading – either by alphabet letter, color or a numerical designation – could be coming to your state. Already on the West Coast, parts of Canada, the Carolinas and in a few southwestern states, it is believed that this type of grading will scare restaurants into paying more attention to their sanitation. After all, who wants to be branded with an undesirable designation – and one that is often posted for all patrons to see?

There is no surer way to see business decrease than to have a less-than-desirable grade posted on your front door. Who would go to a B or C level restaurant, when guests could easily frequent the A level establishments?

While we haven’t seen this type of grading in New England...yet...it could be coming soon. In Rhode Island, the department of health has recently raised this topic as a way to help ensure that the industry is policing itself, and is doing the best job possible to maintain the department of health’s compliancy standards.

The bottom line is that people want to eat in clean, safe restaurants. They want to feel that their food is being handled safely and that all necessary and legally-mandated measures are being followed. And, who can blame them? It is their right to expect this, and it is your responsibility as a restaurant owner to provide a safe dining experience.

It is our responsibility as members of the hospitality industry to work together to find the best and the most effective preemptive ways to ensure that we represent safe, clean, and hospitable businesses. Do the right thing, spend the time and educate your employees to the letter of the law so that we don’t have to face new rules and regulations in our industry. We are all in this together, and we all have a huge responsibility to keep our guests safe.

If you are not focused on safety and cleanliness in your restaurant, you are literally betting the house that you won’t get caught. Nobody can afford that wager.

Industry Resolutions

January 2010

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

“And ye, who have met with Adversity's blast,
And been bow'd to the earth by its fury;
To whom the Twelve Months, that have recently pass'd
Were as harsh as a prejudiced jury -
Still, fill to the Future! and join in our chime,
The regrets of remembrance to cozen,
And having obtained a New Trial of Time,
Shout in hopes of a kindlier dozen.”
- Thomas Hood, 19th Century British Poet and Humorist

Ah, 2010. How many of us are happy to ring in this new year if only to say goodbye to the adversities of 2009? This past year marked an unparalleled time in our nation’s economy, employment and overall prosperity. I don’t think many of us went unaffected by recent economic turmoil.

With unemployment levels reaching the double digits across the nation, people had less money to spend, less discretionary income to use on things like restaurants and entertainment. Instead, folks were focused on trying to maintain their mortgages, pay their bills and keep food on their table. Indeed, it has been a trying year for anyone trying to keep a business afloat.

What times of great adversity show us, however, is the stuff we’re made of. Sadly, it often takes a crisis to pull people together, to forge connections, and to unite to find common ground.

In that connection, we often find a culture of community. I know you’ve heard me talk about this in the past, but I truly feel that a culture of community is at the root of all that we do in this industry. And, if you are not seeing this in your individual business, you need to reach out and create it in order to move ahead.

The culture of community is comprised of what I call, ‘the four Cs’: cooperation – working together for a common effort to benefit our industry; collaboration – encouraging teamwork, support and community partnerships; communication – exchanging ideas, information and opportunities; and connection – creating lasting relationships within the industry.

2010 represents the perfect time to really instill this philosophy into your organization. At the RI Hospitality Association, we have a renewed focus on these guiding principles and it has already paid dividends. Our membership is up this quarter over last year at the same time. And, as many of you know, Rhode Island has one of the highest unemployment rates in the nation. So, getting new businesses to sign up is really no small feat.
As I said, in troubled economic times, people really need each other. They seek out others that are in the same situation or predicament in order to find strength in numbers. It is through a common effort that change can occur. It is through an exchange of ideas and opportunities that ultimately leads to lasting relationships. And, lasting relationships are what the future is built on.

Join me in adding the culture of community to your New Year’s resolutions. Embrace it, make it your own and change the course of 2010 for your business. As we ring in the New Year, there has never been more opportunity or promise on the horizon.

Happy New Year.