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.
