Can My Employee Say That Online?

Dale J. Venturini
President/CEO, RI Hospitality Association

Facebook. Twitter. Google+. It seems like everyday is now filled with real life discussion about the online discussion. What are friends posting to their newsfeed? What topics are trending? Who’s in your circle? Everyone is a blogger and more importantly, everyone who works for you now has the opportunity to be a spokesman for your company. But, that’s not always a good thing.

With social media now a staple in our lives, businesses are racing to catch up with the creation of their own profiles on many of these sites. And with good reason too: these websites are among the most popular in the world, providing a new outlet to reach hundreds of millions, if not more than a billion, tech-savvy consumers.

This holds true for many restaurants and hotels in Rhode Island. From the mom-and-pop shop to the international chain, social media has emerged as a way to connect with loyal customers, in some instances actually providing a level playing field to compete in a new medium.

Although we’ve spent many hours crafting our own social media strategies to maximize our online exposure and developing responses to refute negative and often baseless attacks, one area which some of us have yet to figure out is how to respond to inappropriate comments or criticism leveled by our own employees in cyberspace.

Everyone has a bad day from time to time. We’ve all gone home and complained about a boss, a co-worker or a customer, but now social media has given each of us an online megaphone to announce these complaints to the entire world, all in 140 characters or less. Often times, it is harmless venting. But, sometimes it can be damaging to the reputation you have worked so hard to cultivate.

As an employer, you are strongly encouraged to develop your own social media usage guidelines for employees. For those of you who do not yet have your own policies, here are some good guidelines to consider when establishing one:

- Remind your staff to only represent themselves online. If they are not authorized to act as an agent of the company online, then they should not engage other users as an agent of the company.

- Remind your staff that if they broadcast their place of employment in their online profile, they are volunteering to become a representative of the company, similar to wearing a company logo in public. Accordingly, their actions should follow the rules of conduct set forth in your Employee Handbook.

- The internet is a vast place, but it’s still a small world. If you would not say something to your boss, co-worker or customer, do not say it online.

According to the American Hotel and Lodging Association, the National Labor Relations Board has reviewed over 129 cases involving so-called “Facebook Firings.” In some cases, the NLRB has sided with the employer, and in other cases the board has sided with the employee.

In cases where NLRB has sided with employees, it is because the Board felt as though free speech was being violated. Free speech is a cornerstone of our society, and as you evaluate the online conversations of your employees, it is important to consider what constitutes free speech. It may be difficult, but filter out comments which you may not agree with, or may not feel are appropriate, from those which are truly malicious, misleading, and libelous.

Usually, if you lay out some simple guidelines, the majority of your employees will cooperate. They understand the power, as well as the inherent danger, contained within social media. But, with so many people now blogging, tweeting, and sharing every tiny detail of their lives, do yourself a favor: take the time now to develop a social media policy for your employees to follow before you find yourself in a situation where you wish you had one.

Help Wanted

Dale J. Venturini
President/CEO, RI Hospitality Association

As I sit down to write this, Rhode Island’s seasonally-adjusted unemployment rate stands at 10.6 percent, down just slightly from 10.8 percent the previous two months. Rhode Island’s economic struggles are well documented, with our unemployment rate topping out at 11.8 percent in December 2009 and January 2010. At points, it was the second highest in the nation.

The stability of the economy still seems slightly uncertain, but the good news is businesses are beginning to rebound from the recession. Many experienced an encouraging uptick in business this year, and in turn were able to begin hiring additional workers for the first time since the economic downturn forced companies across Rhode Island to begin a troubling series of layoffs back in 2007.

Rhode Island’s hospitality industry was hit especially hard by the recession. Our guests began to rethink their travel plans and reconsider how to spend what little expendable income they possessed. The money budgeted to take the family out for dinner was suddenly needed to fix the car, and the money set aside for a weekend getaway was now needed to make sure the mortgage could be paid on time. Difficult decisions were made, and for many of us, the size of our staffs had to be reduced.

Although the recovery has been slow, and it may be several more years before business is back to ‘normal,’ many businesses are once again posting help wanted signs in the window. And, there seems to be no shortage of qualified workers to help replenish our ranks.

This allows managers to be very particular about whom they hire, selecting only the best and brightest applicants. However, one consequence of the economic downturn is not clearly visible on a resume or during an interview. At this time, there are many qualified applicants who are saddled with debt and bad credit. Often times, this information if not readily offered by the candidate, and it only becomes available if we conduct a credit check.

In the hospitality industry, we deal with sensitive information on a daily basis. Over the course of a week, a server may handle thousands of dollars in cash, and process dozens of credit card transactions. Hotel workers have access to guest rooms where valuable items are stored.

Restaurants and hotels stake their reputations on reliability. We work very hard to prove to our guests that we can not only meet but exceed their expectations. There is a level of trust that we will not only serve them, but also keep them safe. This includes protecting their financial information.

From time to time, there have been instances where an employee may be responsible for the theft of money or personal information from an establishment. Often times, this is damaging to the guest or guests who were targeted. It is also damaging to the business, and in extreme cases it can hurt the reputation of the hospitality community.

One of the traits which I have always admired about Rhode Island’s hospitality industry is the sense of closeness. Businesses aren’t rivals. They are neighbors. Our employees are not our workers. They are our family.

I am not here to advocate against hiring a person who has a stack of unpaid bills, or bad credit. Each case is different. The hiring process includes applications, interviews, references and occasional credit checks to help us make the best judgment possible of a person’s character and trustworthiness.

But, as the economy improves and new positions continue to be created, I do urge restaurant owners and managers to be cautious, and carefully consider all of the information available before extending an offer of employment. After all, you are not just adding a new employee. You are adding a new member to our community.

Etiquette 101: Back to Basics

Dale J. Venturini
President/CEO, RI Hospitality Association

The books are closed, the receipts are tallied, and summer 2011 is now a distant memory. For many of us, this was our busiest summer since the recession began. More people are eating out again, and more people are resuming summer trips which may have been put on hold due to financial hardships. Now, more than ever, its paramount that the hospitality industry puts its best foot forward to reinforce to our guests that they are making the right decision to spend their hard earned money with us.

From my own time as a guest this summer, I was extremely surprised by the service, or lack thereof, that I experienced. On different occasions, I witnessed various faux pas that should never take place in a restaurant. While they weren’t the most egregious errors a server could make, it helped me start to think about some of the common things our staff may do, say, or forget to say, that not only reflects poorly on a particular establishment, but also on the hospitality industry as a whole.

Our work begins the moment someone walks through the entrance. The host or hostess should stop any private conversation and immediately welcome the guest. It may be cliché, but you only have one shot to make a positive first impression. If your guest feels like they have to wait to be welcomed, they will immediately begin to wonder what else they will have to wait for during serve.

Another mistake occurs when a server fails to recite the specials. It can be uncomfortable for the guest to ask what, if anything, is being offered. Even worse, make sure your servers do not speed through the items, or forget to offer the price. The only thing worse than listening to the specials be rattled off at lightning speed is listening to a server struggle to remember the details of each dish. It undermines the entire staff’s culinary authority.

When the time comes to serve the table, make sure you take note of who ordered what before delivering each dish. “So, who had the shrimp?” followed by “And who had the steak?” are not appropriate questions to ask. It only takes a brief moment to mark the position of each meal on a ticket, and the end result will ensure that guests can maintain a conversation without interruption instead of wondering if the next dish to be called out will be theirs.

A common misstep by an overeager server usually comes at the conclusion of the meal. Whether it’s the diner at the corner or the four-star restaurant downtown, the question “Are you still working on that?” has been spoken in every dining room in America. There may not be a problem if your guest has finished, but this simple question may make other diners feel rushed. Along the same lines, be careful not to begin clearing the table if someone is still eating. This can have the same effect.

The one question a server should never, ever ask comes at the end of the meal. “Do you want any change?” Often times, the intentions behind the question are innocent enough. The server is busy and can save an unnecessary trip back to the table, or the server hopes it will prevent one final interruption of the conversation. But, it’s important to remember that a tip is not guaranteed, and asking if the guest would like any change is presumptuous and in bad taste.

The Power of Partnerships

Dale J. Venturini
President/CEO, RI Hospitality Association

It’s rare in today’s day and age that a business operates 100% on its own. Sure, the management of day-to-day operations is taken care of by our staffs. But, the competitive environment that we presently operate in results in many hurdles for the typical business owner to clear. Now, more than ever, partnerships are increasingly important as we try to weather what we hope is the final stage of a tumultuous economic climate.

Partnerships are powerful. They allow allies to work together toward a mutually beneficial goal. In an industry such as hospitality, partnerships haven’t just become necessary over the last several years, they’ve always existed.

In fact, the Rhode Island Hospitality Association (RIHA) has been in existence since 1982. Prior to that, we existed as two separate entities: the RI Restaurant Association and the RI Hotel Association. Restaurants and hotels in Rhode Island join the RIHA because we are committed to providing vision, leadership, legislative support and educational resources to our partners.

One partnership created by RIHA is our Green Certification Program with the RI Department of Environmental Management. This program was created several years ago, when going green started to emerge as the responsible way to conduct business. Now, every fall, hotels and restaurants voluntarily assess their own green performance standards in hopes of winning the Green Certification. As an added bonus, AAA of Southern New England has agreed to award its green eco icon to businesses who earn the Green Certification, making these businesses more appealing choices in today’s eco-conscious society.

Through our partnership with the RI Department of Health, we have been able to train one of our food safety instructors to conduct private food and kitchen audits. These audits match the stringent guidelines used by state inspectors, and allow our members to be proactive in ensuring that their kitchens meet proper standards. Sometimes, our audits are even more critical, but the ultimate goal remains the same: to provide the highest level of service possible to our customers.

In order to better fulfill the demands for learning and training opportunities, we formed the RI Hospitality Education Foundation (RIHEF) in 1994. Since the beginning of this endeavor, we have been able to form many more partnerships which have enhanced not only our ability to serve our members, and our member’s ability to serve their customers, but also everyone’s ability to serve the local community.

One of our favorite partnerships is with Dorcas Place. Dorcas Place is a non-profit adult learning center that strives to help low-income Rhode Islanders realize their full potential through literacy, advocacy, and employment. Through our classes, we have reached workers who otherwise would not have an opportunity to pursue an exciting career in hospitality. The generosity of RIHA members has provided a hands-on outlet for these new workers to learn and hone their skills. Dorcas Place is also a place where hospitality workers can learn new skills in order to further their careers.

RIHEF has also found partners with vocational schools and colleges around Rhode Island, allowing us to not only connect students with potential employers, but to also better promote an overall understanding of the hospitality industry.

The last several years have been an extremely difficult time to be responsible for any business. However, the recession has been especially hard on the hospitality industry. Occupancy rates have plunged, and families have reconsidered how best to use their discretionary spending, causing restaurant reservations to lag well behind what we’d like to see. This makes the power of partnerships that much more important.

Social Media, and Setting the Record Straight

Dale J. Venturini
President/CEO, RI Hospitality Association

Facebook. Twitter. Yelp. TripAdvisor. There is no shortage of social networking and review web sites where disgruntled customers can voice their displeasure if an experience is anything but perfect. And with the proliferation of smart phones, it can be done before the final bill has even finished printing.

Log onto any review web site, and you will find countless evaluations. Some are good, some are bad. Sometimes the criticism is warranted. While we try to make every experience perfect, the honest truth is that sometimes mistakes are made. We do our best to rectify the situation to ultimately leave the disgruntled guest with a positive impression.

However, the anonymity of the internet makes it easy for people with malicious intent to wreak havoc on a brand. With just a few keystrokes, inaccurate and even flat-out libelous accusations can be presented as fact. Even more alarming is the difficulty to have these falsehoods removed.

Recently, a top executive at a prominent Rhode Island hotel told me about his struggle to have a fabricated story removed from a popular travel review web site. The post, the executive said, accused his hotel of having bed bugs. In the hotel industry, bed bugs are no laughing matter. The mere suggestion of bed bugs can send guests racing to make reservations elsewhere.

The web site was contacted, and the executive was astonished to learn that in order to have the complaint removed, the burden of proof fell on the hotel to show that it did not actually have bed bugs. Some hotels have hundreds of rooms, and to check each room based on a single anonymous accusation when there have been no prior complaints can be a daunting and expensive task.

The explosion of social media has increased the threat of similar issues for businesses in all sectors. From the world’s biggest brands, to the tiniest bed-and-breakfast, it seems everyone has a Facebook page these days. But what some of us are still missing is a strategic plan to respond to harsh criticism and made-up accusations. After all, each negative post is a crisis in its own right.

The most important rule is to respond, and to respond quickly. This shows your followers that you are engaged and that you care about what they think and feel. Still, the question remains: how should you respond?

If someone is attacking your company, make sure to move the conversation offline as quickly as possible. Be polite, thank them for their feedback, let the commenter know you care about their situation, and offer to contact them, or provide them with a number to call with their grievance.

It’s important to avoid a public dialogue where the merits of your product may be opened up to further scrutiny. It’s also important to avoid a private dialogue via email because the commenter has the ability to post those communications online.

A common mistake is to delete all negative criticism. While it’s true that you control your own Facebook page, it’s not a corporate web site. People participate in social media to be part of a conversation. Sometimes, conversations can be awkward and uncomfortable. A carefully construed, well thought-out response to a negative comment will reflect better on you than having a commenter complain that their original complaint was censored. With that in mind, it’s always ok to delete profanity-laced remarks or insensitive attacks.

If there’s a real problem, fix it. Then let everyone know what you did to solve it. If the problem is fabricated, point out that you’ve never encountered that issue before, but let the commenter know you’d like to discuss it further. If your brand has a loyal following, your other fans may even come to your defense.

Lastly, remember – it’s ok to move on. Just like face-to-face communications, you won’t be able to please everyone all of the time. Have faith that your fans will see an unreasonable malcontent as just that, an unreasonable malcontent.

Social media can be an outstanding tool that compliments traditional marketing and public relations campaigns. It provides a new outlet to connect with and engage your guests. But, just as we prepare for a real life crisis, it's important to be prepared for a social media crisis as well.

Caught in the Act

Dale J. Venturini
President/CEO, RI Hospitality Association

The idea of looking out for the well being of your competition seems almost counterintuitive. After all, isn’t their loss your gain? Not always, and that is one of the many things that make the hospitality industry such a close-knit community.

We are several years into a recession which has had a devastating impact on our bottom lines. Many of us have been forced to lay off employees who are like family. Some of us may have actually let family members go! We’ve used every gimmick in the book to ensure that customers pick our establishment over any other, and while the adversity we face would make it easy to take an “every man and women for themselves” approach to business – it seems the exact opposite is true.

As the going gets tough, we band together. That’s why I’d like to share a true story about how the power of communication between businesses helped catch an alleged thief in the act. (And, like any good true crime story, this one carries a disclaimer: the accused is presumed innocent until proven guilty.)

The saga began in April when a charismatic man named “Kevin” dined at a local restaurant. He was friendly and engaging while he ate and drank his way to a $70 tab. Near the end of his meal, Kevin stepped out for a cigarette and disappeared into the night, leaving the restaurant on the hook for his bill.

The occasional walkout is part of the cost of doing business in the restaurant industry, but in this close knit community, it took less than a day for a waiter to relay the story to a friend who waits tables at another restaurant. Wouldn’t you know it – the same thing happened there as well. When I learned about the story, I issued an alert to RIHA members, and pretty soon, the local dining community was abuzz with one name: Kevin.

Who is He? Where is He from? When will He strike next? I’m told one Bristol restaurant owner who heard about the scam actually stood in the doorway of his patio exit when he realized a diner named Kevin may want to step out for a cigarette.

Word about Kevin’s scam had spread across the restaurant community through phone calls, emails, and word of mouth. Then, on Memorial Day weekend, it was the break in the case we had all been waiting for. That’s when a man named Kevin sat down in a Providence restaurant.

The situation seemed too familiar to some members of the staff who were in the loop on Kevin’s “dine and dash M.O.” That’s when they called over to the restaurant that first started to spread word about the scam back in April. “Think you can identify Kevin?” they asked. A bartender working the night of Kevin’s free meal jumped in the car, racing over.

In the meantime, Kevin finished his meal and received his check. However, he allegedly tried to pay with a bad credit card. Already suspicious, the restaurant called the police. The original bartender arrived, and was able to make a positive ID. The police were filled in and Kevin, now in handcuffs, was taken away.

No one is quite sure how many restaurants Kevin may have hit, or how long he may have been trying this stunt. Was it going on long before he first caught the attention of Rhode Island’s hospitality community in April? While Kevin has already made voluntary restitution to the Providence establishment where he was caught red-handed, the owner tells me he is still pressing charges, and rightfully so.

We work hard to support ourselves, our families, and our employees during these tough economic times. Everyone involved in “Operation Kevin,” as one of the involved parties referred to the episode as, could easily have kept to themselves, and failed to share the critical information they knew. But, they didn’t. Because of the open lines of communication, and the sense of community across our industry, we were able to work together to catch a criminal red handed. Though the people and restaurants in this story remain nameless, I couldn’t be prouder to be associated with them, and I hope their actions inspire others to use the power of communication to their benefit. After all, the hospitality industry is a family and as such, we all need to support each other – in good times and in bad.

Food Safety: Your Customer’s Health Depends On It

Dale J. Venturini
President/CEO, RI Hospitality Association

If you were to ask someone to name an occupation where a person put their life in the hands of another person, chances are, they would name a surgeon, a firefighter, a paramedic, or maybe an airline pilot. I am willing to guess that few, if any, would suggest the occupation of restaurant operator or food service provider. It may seem a little dramatic, but that’s exactly what tens of millions of Americans do every single day.

Most of our customers never give more than a fleeting thought to food safety when they visit our establishments, and that’s to our credit. They trust that we will follow the safeguards put in place by state and federal regulators, as well as our own self-imposed standards for quality assurance. However, from time to time, the safeguards breakdown. Sometimes, an irresponsible supplier, manufacturer, or distributor fails to meet their responsibilities. Sometimes, people are negligent.

In 2009, a nationwide salmonella outbreak cause by tainted peanut butter lead to nine deaths and more than 600 illnesses. In 2010, another salmonella outbreak led to the largest egg recall in the history of the United States.

Then, this year, Rhode Island’s popular St. Joseph’s day tradition of serving a cream-filled pastry called a zeppole was marred by a salmonella outbreak that captured nationwide attention. Two people died, and more than 75 others became ill. According to media reports, the tainted zeppole’s were traced back to a local bakery, and the Rhode Island Department of Health said it found a laundry list of violations which lead to the deadly outbreak. Several lawsuits are now pending.

All three of these examples should serve as stern reminders that we, as restaurant operators and food preparers, are the first line of defense against food-borne illnesses. And with the arrival of summer, we must now exercise an even higher level of vigilance to ensure our food products are safe.

With all of this bad news in the media and in the public domain, there has never been a better time to contact your restaurant association and make sure that if you are a restaurateur, that your staff is compliant with safe food handling training and certification. At RIHA, we’ve taken it one step further and have partnered with the RI Department of Health to provide private safety audits and inspections for a fee. This allows restaurants to understand where they are potentially at risk and to correct those issues immediately before they potentially become a public safety hazard. For more information on this service, visit our website.

Many of us watch the handling of food in our kitchens with the eyes of a hawk. We make sure our employees are washing their hands; we make sure clean utensils are being used; we make sure to avoid cross contamination in prep areas. But, that is not enough. How many of you can confidently recite regulations with regard to safe temperatures for transporting food? We place great trust in our suppliers, but our work should begin the moment the delivery truck pulls up to our loading dock. A malfunctioning cooling system on a delivery truck, even for just a few minutes, can prove disastrous on a 100 degree day.

Do you check to make sure delivery temperatures are within the legal parameters? For the vast majority of foods (there are some exceptions), it should be at a temperature of 5°C (41°F) or below when received.

Do you check your fridge, freezer or whatever is being kept on ice in the kitchen to make sure temperatures meet previously established guidelines for safety? If you don’t, you should be. There’s no excuse. During the hot summer months, the temperature of food can easily climb a couple of degrees without showing any visible difference. But, that small change could mean the difference between something that is safe to consume, and something that could become potentially harmful to your customers. Again, it is of critical importance to make sure that your staff is fully trained and certified according to your state’s department of health codes.

So much trouble and so many illnesses can be avoided by simply following proven safety practices. It’s something the vast majority of businesses that I have come in contact with take very, very seriously. We are the first line of defense against food-borne illnesses. That is why it is critical that we self-police our own kitchens. After all, when customers enter our establishments, they really are putting their health in our hands.

Building Brand Loyalty

Dale J. Venturini
President/CEO, RI Hospitality Association

When is a deal not really a deal? The answer: when it fails to build brand loyalty by rewarding your best customers.

With the economy still struggling to recover, many families continue to stay at home, forcing restaurant owners and hotel operators to search for creative, new incentives to lure both previous patrons and new customers into dining rooms and hotel rooms. Cost-conscious consumers who do open their wallets have returned to old tricks to help them save. Coupon clipping has seen a popular resurgence, and over the last several years, the internet has exploded with dot-com companies that specialize in deal of the day offers.

Online deal of the day offers provide steep discounts for customers, creating a sudden boom in business for the establishment taking part. A day that typically sees a slow trickle of activity can become your busiest for the week, month, or even quarter. But, participation in these deals should be approached with caution. Just as a consumer will weigh the value of a deal by asking if it is worth the price of purchase, restaurant owners and hotel operators should also evaluate if the potential return on reinforcing brand loyalty justifies the impact on the bottom line.

It is important to consider who really benefits from participation in a deal of the day offer. The consumer is the biggest winner, and that’s the way it should be. The purchaser often receives a gigantic discount, sometimes up to or in excess of 50% off the final bill. The third-party also benefits by receiving a large cut for advertising your generous deal to its users. Lastly, there is you, the merchant. What’s left? Usually, not a lot, and that can be a problem in an industry that often operates on razor thin profit margins to begin with.

Deal of the day offers are a great way to lure countless new customers through the door. However, it’s important to remember why they are there at that time: an enticing deal offered by an exciting brand. The trouble for us is that the third party usually gets most, if not all, of the credit. The customers who pack our dining rooms that night aren’t loyal to our brand. They may not even realize we have a brand. They are loyal to the third-party, and they are loyal to the deal.

With that said, don’t worry! Hope is not lost! This is where our work must begin. Deal of the day offers can be an excellent tool to use as part of a comprehensive marketing plan; just don’t make it your entire marketing plan. Use it as one part of a long-term approach to build and reward brand loyalty.

Building brand loyalty does not happen overnight. It is a long term project that can take months and years to establish. Your brand is your identity in the community. It is your message and your mission. Brand loyalty is a powerful force that will not only keep your best customers coming back time and time again, but it will also lend cache to draw new customers in the door.

Instead of using a deal of the day offer to bring in new clientele to give you a one-time bump in business, try using that very same deep discount to reward your current customers. If you don’t have the budget to create coupons or purchase gift cards, use your own database to let frequent diners know that a deal will be presented by a discount website so they’ll have the opportunity to get in on the action. Or, cut the coupons and the websites out all together. When it comes time for the bill, simply subtract that discount at the register, unprompted, then let everyone at the table know you just wanted to say thank you for their valuable business. Imagine their delight; delight that will go a long way toward building and reinforcing loyalty to your brand, not someone elses.

The Importance of Being Educated

Dale J. Venturini

President/CEO, RI Hospitality Association

An economic downturn, such as the one we have experienced in Rhode Island over the last several years, presents many challenges for businesses in the hospitality industry. Year after year, restaurant owners, hotel operators, general managers and supervisors on all levels are forced to make difficult decisions on a multitude of issues that affect the bottom line, including operating budgets, staffing levels, and training opportunities.

Since the RI Hospitality Education Foundation (RIHEF) was created in 1994, we have provided continuing education and training opportunities to hundreds of thousands of Rhode Islanders so that we may better serve our customers and clients. Our programs include state-mandated training on food safety and alcohol service, as well as seminars on customer service, cost control, taxation, and general skills needed for advancement. The RIHEF also provides many opportunities for students preparing to enter the hospitality industry, such as job shadowing, job fairs, access to expert guest speakers and most important, practical, hands-on experience.

The RI Hospitality Education Foundation also assists a third group of workers: adults training to begin a career in hospitality for the first time. At a time when Rhode Island’s unemployment rate remains north of 11 percent, many people are turning to restaurants and hotels in hopes of a promising, new career.

One organization RIHEF is proud to partner with is Dorcas Place, a non-profit adult literacy and learning center that strives to help low-income adults realize their full potential through literacy, employment, advocacy and community involvement.

Through our classes offered with Dorcas Place, we have been able to reach workers who may not have otherwise had the chance to be exposed to the opportunities that an exciting career in hospitality can present. By teaming up with Dorcas Place, we have also opened new doors to those already in hospitality by working hard to improve their literacy skills.

However, in an ironic twist, the same economic downturn that has caused Rhode Island’s unemployment rate to balloon is also limiting career training at the exact time when it is needed most because the grants and funds used to offset the cost are no longer readily available.

Due to a dramatic reduction in workforce development grants, RIHEF has lost a staggering $500,000 of its annual funding for 2011. The impact that this loss of funding will have cannot be overstated. It means we will not be able to assist thousands of Rhode Island residents who presently find themselves out of work, desperately searching for a new career at a time when jobs are scarce, all before their unemployment benefits run out.

This funding helps countless workers. Since 2009, programs sponsored by the RI Hospitality Education Foundation have provided training to more than 5,000 hospitality employees, students and adult learners.

Hospitality-based businesses employ more than 60,000 Rhode Island residents. In fact, hospitality is the fourth largest industry in Rhode Island, making it an economic engine that helps to fuel the success of the entire state. The Ocean State is already home to many top-notch restaurants and hotels. But, in order to remain competitive, it is crucial that our workforce is provided with the funding for the career training and continuing education programs that are paramount to our success.

The lawmakers responsible for budget and grant monies may never see the training, the classroom time, or the incredible extra effort that we put forth behind closed doors to ensure that we are at our very best. But, one thing is certain: our customers, who we serve on a nightly basis, and those workers struggling to reinvent themselves during these tough economic times, will be the first ones to notice when that training is gone.

Snow, Snow Go Away

Dale J. Venturini

President/CEO, Rhode Island Hospitality Association

While many of us are still trying to weather the economic downtown that has adversely affected Southern New England, some of us are now wondering what is the best way to weather a new challenge we all experienced in early 2011 – the weather!

There’s no way around it. Winter weather is a fact of life when living in New England. From sledding and snow blowing to black ice and blizzards – we need to take the bad with the good. But that doesn’t always play into a successful business strategy, especially in an industry where profit margins can sometimes be razor thin.

When a winter storm passes over our region, profits during a particular day part or even an entire day can decrease by 25%, 50%, or even 100% if a business is forced to close. One-time opportunities, such as business generated by February’s production of the hit musical Disney Presents: The Lion King at the Providence Performing Arts Center, are lost.

When parents are forced to stay home because school is canceled, or other business owners tell their employees to take the day off, the breakfast and lunch crowds that many of us depend on never show up, leaving booths and bar stools empty.

With the arrival of each new storm – and there were many this year – I continually heard about two major challenges that RIHA members faced time and time again: parking bans and snow removal.

Sometimes a storm is so large, that the only logical choice is to close. The safety of our employees is paramount. Besides, what’s the point of being open if conditions are so treacherous that there won’t be any customers?

But, during smaller storms when a restaurant has the ability to operate, parking bans put business on ice. While parking bans are crucial to allow plow drivers to quickly – and safely – clear the roads, they can also be incredibly frustrating for establishments. Parking bans eliminate critical parking spots and may be extended without notice. Most frustrating of all: a parking ban may be in place even though the snow that was predicted never materialized. While the intent of parking bans is commendable, I often wonder if there is a better solution than restricting parking every time there is a storm.

Snow removal is also a headache, and an expensive one at that. While plow drivers are furiously working to clear the roads, we are also paying to have our parking lots and sidewalks cleared. On storm days when we choose to remain open despite limited business, snow removal costs eat into our meager profits. On days we are forced to close, those same parking lots and sidewalks must still be cleared, immediately pushing our bottom line into the red. It’s a no-win situation. Just like communities that see their snow removal budgets melt away in the first weeks of winter, we too have no choice but to keep on plowing despite the cost.

One frustrated restaurant owner told me that if a newscaster mentions the word snow, business will instantly drop by 50%, even if the flakes never fall. I don’t know how accurate that is, but the negative effect of winter weather, especially severe winter weather, is glaringly obviously when receipts are tallied at the end of the night, the week, and the month.

No one ever said running a restaurant or a hotel is easy. The snow is just another challenge we need to be prepared to tackle each winter. We do live in New England, after all. Besides, spring is almost here. That means brighter days, and hopefully more profitable days, are on the horizon.

Who Do You Know?

Dale J. Venturini

President/CEO, Rhode Island Hospitality Association

"The future depends on what we do in the present."
- Mahatma Gandhi

I don’t know about you, but here in Rhode Island, our entire political landscape has changed. Many of our incumbent legislators – both friends and foe – have been replaced. We’re now facing a brand new group of lawmakers; many of whom don’t know or understand our industry. This is both an opportunity and a burden, as we will once again have to reinforce our industry’s value so that we do not wind up with a target on our back at budget time.

Some of the states in New England have relatively low unemployment like New Hampshire and Vermont, others including Rhode Island are not as fortunate. And, with the economy largely predicted to remain flat in 2011, states are going to need more revenue to function and plug burgeoning deficits. We really need to be proactive so that our industry doesn’t wind up looking like a cash cow to lawmakers.

It’s been said a thousand times, but it really is all about who you know. No matter where you are in New England, our industry is really a community. And, as in most communities, someone knows somebody, who knows somebody, who can get you in front of the right person.

Now is the time to reach out to your membership and contacts and see who knows whom. Don’t wait until your legislature is already steaming full speed ahead to try and educate them on the importance of our industry. It’s important to take a leadership stand immediately if you already haven’t done so.

First, do your homework. Each of us should know where our own state politicians stand on all the issues that affect our industry including: tourism, small business taxes, immigration, health care, casino gaming, and job creation. Embrace the politicians who understand the importance of the industry and who are already onboard. Having these folks in your corner will make all the difference during the legislative season. What works well, I’ve found, is offering legislators the ability to get in front of our membership and have a meaningful dialog. They appreciate the platform and members appreciate the interaction.

At RIHA, we recently hosted a meet and greet breakfast for all of our new legislators, co-hosted by many of our community and tourism partners and attended by our Board of Directors. It was a great way for our leadership to get to know their new representatives and vice versa. It all goes back to the culture of community – fostering a relationship to find common ground and understanding.

This was also a great forum to showcase the economic and human impact the industry has on your own state. We put together a simple report that lists all the stats on what our industry contributes to the state in terms of taxes from meals, hotels, and tourism; how many residents we’ve had a hand in training through our education foundation; the partnerships with state and non-profit organizations that we’ve affiliated with and supported, etc. When you take a look at everything that your industry contributes from both a financial and human standpoint – the numbers are staggering.

Expanding on that thought process, it’s equally important to form the right partnerships in the community. We’ve all heard the phrase that there is strength in numbers, right? Well, I’m sure you’ve discovered that some of the heads of your Chambers, CVBs and other tourism entities have perhaps changed – it’s just as important to set up meetings with these folks.

Everyone who comprises our industry needs to be on the same page, using the same voice and delivering the same message. It’s only then that we’ll have the numbers, resources and ability to continue growing and continue being an economic cornerstone of our communities.

The Stars Shine Day and Night

Dale J. Venturini

President/CEO, Rhode Island Hospitality Association

Every December, I look forward to our annual meeting and awards ceremony, ‘Stars of the Industry,’ because it gives me a chance to personally award and congratulate some really fantastic people in our industry. While our economy still struggles, you’d never know it to look around the ballroom at the Rhode Island Convention Center and see more than 500 people showing their support for colleagues, employees and friends.

The Stars of the Industry Awards recognize the outstanding achievements of members of the hospitality, foodservice and tourism industries. Recipients were not only nominated for their dedication and contributions to their careers, but for their involvement in their local communities. This year, we gave out more than 50 awards in numerous areas including the American Hotel & Lodging Association State Leadership Award, the National Restaurant Association Restaurant Neighbor Award, and a host of Allied, Hospitality, Tourism, and Lodging awards.

What’s really nice about this type of program is that many of the award winners are actually nominated by customers. Yes, the general public actually takes the time to fill out a nomination form on why their server, bartender, hostess, etc. is deserving of some special recognition. Others are nominated by their peers or managers for going above and beyond the call of duty, providing an exceptional guest experience, or other meaningful contribution to the community.

I’ve been doing this annual event for more than 20 years, but it seems like just yesterday when the Association first launched our awards program. Of course, back then, it was very small and very different than it is today. This year, our event was attended by the Governor of Rhode Island, several mayors, state representatives and senators. Indeed, we’ve come a long way since our humble beginnings in the late 1980s and it’s a good feeling to be recognized by our state’s leadership for all the good our membership does and contributes to the economy and community.

It was the perfect celebratory conclusion to what was a tough year for so many of us. They say that adversity brings people together and the past two years has certainly been rife with adversity. However, it’s my hope that the market indicators for 2011 are accurate and the economy will continue to pick up, jobs will be gained and our country will be back on track to prosperity. We’ve come through a truly dark period and as I talk to my colleagues across the nation, I am hearing a collective – yet cautious–sigh of relief. I’m also heartened when I look through our own ranks. RIHA membership has increased 10% in 2010, reaching approximately 640 members. Perhaps, the worst is behind us.

As 2011 begins, so does a new year of possibilities. When you make your list of resolutions - lose 10 pounds, spend more quality time with the family, add one more...nurture and build your relationships. Visit your neighborhood businesses, get to know those who work there, say a kind word and I guarantee it will get paid back in full throughout the year.

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 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 our industry one of the most successful in Rhode Island.