Watching the Weather

Dale Venturini

President/CEO, RI Hospitality Association

As we get ready for another New England winter, it’s impossible to forget just how closely our hospitality community is tied to the mercy of Mother Nature. Whether it is rain, snow, heat or something a whole lot worse, no amount of planning and preparation can undo what the weather has in store for us.

In the winter, the snow is our biggest menace. The threat of just a few inches can prompt well-intentioned city and town planners to issue parking bans to help expedite the speed at which plow trucks can clear the roads.

But in major cities, street parking may be the only parking for restaurants and take-out spots. While some might think it’s the bitter cold that keeps our customers away, it’s often the lack of parking created by these bans. A parking ban issued in the name of convenience, not safety, can have a devastating impact on the bottom line.

In the summer, the mere mention of rain in the seven day forecast will cause people to dramatically alter their plans, even if the day the rain is predicted is still seven days away. If a meteorologist describes the weather as partly cloudy instead of partly sunny, the phones start ringing off the hook with concerns from guests with reservations.

In the past, the RI Hospitality Association (RIHA) has routinely engaged with emergency planning officials and local meteorologists about the impact their decisions can have on business at our restaurants, hotels, and other hospitality-based businesses. They’re always receptive to our thoughts, and we greatly appreciate their concern.

Still, there are some weather events that represent true emergencies. Regardless of what we hope will happen, the only option is to wait out the worst Mother Nature has to offer. Rhode Island, and the Eastern coastline, experienced this with Hurricane Sandy on October 29.

As Sandy approached, many of our most-treasured destinations made the only sensible decision -- board up and wait. Many escaped with no damage or just minor damage. Others had to throw away ingredients after losing power. But, not every establishment was so lucky.

Some establishments sustained a devastating blow, unable to withstand the fury of the local wind and waters which usually provide a picture-perfect setting. The good news is that it looks like these establishments will be able to rebuild. It will take not only time but also dedication and commitment. Those are two traits which I’m proud to say permeate Rhode Island’s hospitality community.

Hurricane Sandy serves as a critical reminder that no matter how much planning we do or how many discussions about preparedness we have, Mother Nature has complete control.   Our responsibility is to make sure we are ready so that our employees, our guests, and the physical buildings where our restaurants and hotels are housed will be as safe as possible.  Hopefully it will be years before we see another storm of this magnitude again. 

A Year-round Investment

Dale Venturini

President/CEO, RI Hospitality Association

Each September, RIHA in conjunction with the National Restaurant Association recognizes National Food Safety Month. In the hospitality industry, we hold proper food handling and food safety in the highest regard. It’s something that is on our minds every single day. But, it also helps to take a step back from the hustle and bustle of our daily routines to put a renewed focus on an important issue such as this one. That is exactly what we were able to do once again last month.

The cornerstone of RIHA’s National Food Safety Month programming included two-hour Food Handler safety courses offered at a deeply discounted rate of 85% off the usual fee. Instead of digging into the obscure aspects of food safety, we used this as an opportunity to help our members get back to basics. It’s important to cover the basics. After all, these are the skills we use most often which are most likely to be taken for granted.

Topics included Personal Hygiene and Controlling Time and Temperature. There was also a focus on Preventing Cross-Contamination, as well as Cleaning and Sanitizing equipment. It may seem elementary, but do you really know the proper way to wash your hands? If you do, do all of your employees and co-workers? Participants also walked away with a workbook filled with more than 50 pages of critical information to help them be successful in this avenue.

According to the Centers for Disease Control and Prevention, one out of every six Americans becomes ill with a food borne illness each year. Some don’t even realize it: they chalk it up to a stomach ache or the latest bug that is going around. Still, the CDC says 128,000 people annually require hospitalization.

That is why it is important not to focus on food safety and training for just one month, but rather, to put extra emphasis on this area throughout the entire year. Food safety is an important mission at RIHA and we routinely offer ServSafe® trainings and certifications to our members and non-members on a monthly basis. While these courses do come with a fee, it is significantly more affordable than similar programs offered by other groups.

A program truly unique to RIHA is our Private Food Safety Audit Program. Want to know if you’re doing something wrong before the state inspector pops in to say hello? A member of our team has been trained by the RI Department of Health to conduct virtually the exact same surprise audit conducted by state inspectors. The big difference: our inspector is known to be a lot tougher on kitchens to make sure everyone is performing at their best! Following the inspection, which can last up to five hours, you’ll receive a report on the findings to help you develop a course of action, if needed.

At first glance, the small expense associated with food safety training or an audit may seem like an unnecessary cost to incur. After all, in the restaurant industry every penny counts. But, take a minute to consider what you stand to lose if just one single employee fails to live up to your expectations because it was assumed he or she knew the right way to do a simple task. You’ll quickly realize that proper food safety training is an invaluable investment which should be made 365 days a year.

Can You Hear Me Now?

Dale Venturini

President/CEO, RI Hospitality Association

The hustle and bustle of summer is in full swing. For many of us, this will mark our busiest and most successful season since the recession began. The economic climate is improving, our guests are returning, and we’re (hopefully!) turning a larger profit. Still, every penny counts and I recently received several phone calls that made me wonder how much money we may be leaving on the table.


At the RI Hospitality Association, we receive dozens of calls from dozens of people about dozens of different situations every week. It’s completely normal, and we welcome each one. We know that if one person has a question, comment or complaint, the odds are many others do but simply don’t know where to turn. So, when I receive multiple phone calls about the same complaint in a brief period of time, I take notice.

These phone calls were all about noise. Each one wanted to know the same thing: why have restaurants become so noisy? Once upon a time, restaurants were quiet destinations. Perhaps there was gentle music drifting through the air, but the environment was intended to be conducive to conversation. The sound of techno and rock music thumping against eardrums was reserved strictly for nightclubs and bars.

Today, the rules have changed. As restaurants battle to attract young, successful, free-spending 20- and 30-somethings, it’s all about establishing a hip and trendy environment. What better way to showcase the energy of this crowd than with upbeat music and a restaurant design that enhances sound – thereby making diners literally have to yell to each other to be heard above the continuous buzz going on around them.

The ambiance may feel young and fun, but it may encourage guests in the dining room to skip out on dessert for a break from the noise.

Cell phones also create a constant distraction. They ring, buzz and vibrate non-stop. They’re no longer discretely tucked away in a purse or pocket either. Often times, cell phones sit on the table next to the water glass or bread basket.

We all have trouble unplugging – I’m the first to admit it – yet we all agree that someone loudly chatting on a cell phone at the next table can detract from a great experience. With so many great dining options, who wants to go back if the meal was less than perfect?

While these may seem like extreme reactions – and they are – the point remains the same. We work incredibly hard to set ourselves apart from our competitors. If the guest has walked through our door, we’ve won that part of the battle. Now, let’s make sure they don’t rush through their meal.

Take a minute to ask yourself, from a business perspective, are you doing something that may encourage guests to shorten their experience? I know I’ve taken several phone calls where noise levels have done just that.

Don’t get me wrong – I love a fun atmosphere and I’m not saying restaurants should be as quiet as the neighborhood library. That would be a huge mistake.

But, consider turning the music down a notch or asking guests to mute their phones for the peace of everyone. Over time, you may notice you’re guests are staying longer and you’re selling more appetizers, drinks and desserts. At a time when every penny counts, wouldn’t that be an easy way to grow your bottom line?

A Victory for Hospitality

Dale Venturini
President/CEO, RI Hospitality Association

A collective sigh of relief was exhaled by hospitality professionals across Rhode Island recently. Late in the night on Thursday, May 31st, the powerful House Finance Committee revealed the new Rhode Island State Budget.

For four long months, the RI Hospitality Association (RIHA) and our allies have been waging a full-scale campaign against a proposal by Governor Lincoln Chafee to raise Rhode Island’s meals and beverage tax from 8% to 10%.
The impact of this tax increase would have been disastrous. Rhode Island’s fourth largest industry, employing more than 60,000 people, is hospitality. Yet a 10% meals and beverage tax would scare away conventions, force families to vacation elsewhere, and even encourage Rhode Island residents to make the short drive to Massachusetts or Connecticut for a meal out because their respective meals taxes are already significantly lower. Layoffs would be unavoidable.

For a state still saddled with double-digit unemployment, this proposition was simply too risky. We did everything in our power to help lawmakers realize the catastrophe which would ensue, and I’m happy to report that the leadership in the General Assembly agreed. When the newest version of the budget was released, the meals and beverage tax increase was noticeably missing from the $8.1 billion spending plan.

Over the last several months, I’ve repeatedly written in this space about our campaign. I’ve talked about what RIHA was doing to rally public support; shared the fears of local hospitality professionals if this tax passes; and the importance of a vibrant hospitality sector to a healthy state economy.

Now, I’d like to use this space to say “thank you.”

Thank you, House Speaker Gordon Fox.
Thank you, Senate President Teresa Paiva-Weed.
Thank you, House Finance Committee Chairman Helio Melo and Senate Finance Committee Chairman Daniel DaPonte.

A cornerstone of our campaign was a call to action for restaurants and hotels, their employees and guests to contact their legislators. We asked and they responded enthusiastically. To the members of the General Assembly who patiently listened to the concerns voiced in tens of thousands of phone calls and emails: thank you.

I’d also like to thank the RIHA Board of Directors, our members, and those who donated to the campaign in the form of money, volunteerism, or other resources. There are far too many to list, but if it were not for your support this campaign may not have ended with the same result.

A few days after the meals tax increase was removed from the budget, I had the opportunity to spend time with Nancy Johnson, the Chair of the American Hotel & Lodging Association and National Restaurant Association Chair Roz Mallet, who had traveled to Rhode Island to be our keynote speakers at RIHA’s annual Women in Hospitality Luncheon.

This incredible event celebrates the contributions women make to the hospitality community, and it is a wonderful reminder of the opportunity available in our industry. Our keynote speakers personify those opportunities.

Ms. Johnson began her career as a server in a hotel restaurant. Today, she is Executive Vice President of Carlson Hotels and the Chair of the American Hotel & Lodging Association. Ms. Mallet is the President and CEO of PhaseNext Hospitality, a franchise operating group and the former President and Interim CEO of Caribou Coffee Company. It’s no exaggeration to say these women are important power-players in our industry.

Speaking with them, I feel even more fortunate that the meals and beverage tax increase will not take place. If it had, I would have been left to wonder what young person just beginning a career in hospitality would have been shown the door because of the drop in business. It would have made me wonder if the hospitality community would now miss out on the next Nancy Johnson or the next Roz Mallet.

Instead of wondering, I’m happy to say “thank you” to all of those who agreed that 10% was simply too much for Rhode Island.

True Stories

Dale J. Venturini
President/CEO, RI Hospitality Association

One of the best parts of my job is meeting so many of the wonderful people who make up Rhode Island’s hospitality community. With more than 60,000 hospitality jobs in the Ocean State, they come from every walk of life. They are men and women, young and old. Many different ethnicities are represented. While our backgrounds, job functions and reasons for choosing this career path may be different, our goals are essentially the same: to create a great experience for our guests.

Since Rhode Island Governor Lincoln Chafee unveiled his new budget proposal in February seeking to raise the Meals and Beverage tax from 8% to 10%, it’s safe to say the already enormous number of people I interact with on a regular basis has increased tenfold. One of the questions that I am continually asked is “Why hospitality? Don’t we pay enough already?”

It’s no secret restaurants and hotels have struggled mightily during the economy downturn. Some have closed, but many have found a way to make it work. We’re even creating new jobs again, which few other industries in Rhode Island can claim right now.

To outside observers, the potential passage of this tax increase is just another obstacle for us to overcome -- a mere inconvenience. But, those of us on the inside know the effects will be much more dire.

This proposed tax increase isn’t just a hurdle for hospitality professionals in Rhode Island fighting to stay profitable. It’s a true threat. From the mom and pop operations to the big guys with corporate backing, a 10% Meals and Beverage tax has the power to fundamentally change the landscape of Rhode Island’s fourth largest industry, and not for the better.

I know this for a fact because since the tax was proposed in February, I have looked into many weary eyes and listened to stories about what it will cost business owners and their employees alike.

At one of our rallies, I spoke with a couple who own a pizzeria. They actually shut down their restaurant for the afternoon, skipping the very profitable lunch rush, to attend the rally. They told me they have just one other employee who works evenings. This allows either the husband or wife to take a night or two off during the week, ensuring they don’t have to work from open to close seven days a week. They told me if this tax passes, they’ll likely have to lay off that other employee, then face the daunting task of working all day, every day.

Also during a rally, a banquet hall operator asked how this tax proposal would affect business that’s already been booked for 2013. Specifically, he said two separate brides who already had dates for 2013 reserved had called him asking if they would still be charged the 8% tax or if they would have to pay the 10% tax.

They had already put down deposits and were very concerned they wouldn’t be able to afford the additional cost burden. In both cases, they said they were considering whether to cancel their Rhode Island receptions to select a banquet hall in Massachusetts where the sales tax was just 6.25%. We had to tell him his only options were to charge them 10% and risk losing the business, or to charge them 8% and pay the other 2% out of his own pocket. Anyone who has ever organized a wedding reception knows 2% can be thousands.

On a third occasion, I met the operators of a bed and breakfast. It wasn’t a large operation. In fact, it was family run, and quite small. They were bewildered by this tax proposal. They told me that they’ve been crunching the numbers every way possible and have just one option if the Meals and Beverage tax is raised: shut down for good.

Each one of these stories is heartbreaking in its own way. That’s why we are fighting. We continue to hold rallies, collect petition signatures, and testify at budget hearings. We continue to tell our stories to everyone who will listen. Yet, we also look forward to the day when this issue is defeated and we can return our focus to creating a great experience for our guests.

The Danger of Taxing Hospitality

Dale J. Venturini
President/CEO, RI Hospitality Association

Rhode Island’s hospitality industry, perhaps more so than any other, is uniquely positioned to provide stability and growth to the state’s sluggish economy. Presently, hospitality and tourism is one of the few sectors which have experienced growth. Given the proper resources, this crucial area of the state’s economy has the potential to attract new visitors, create additional jobs and bring in more revenue for Rhode Island.

This is possible because hospitality is unique. It’s not like other industries, and that is why is cannot be taxed like most other industries. The danger of taxing hospitality like you would tax other businesses is that you threaten to drive away the very guests who contribute so much financially to Rhode Island’s economic well-being.

However, each year, proposals attempting to cash in on restaurants, hotels, and the other businesses that make our tourism industry so vibrant are put forth. And each year, members of our community wonder why others want to make it more difficult for us to attract visitors who are ready and willing to spend their money here.

While creating new taxes and raising existing ones is a perennial proposal each budget season, I feel a superior option would be to consider how we can spend money to make Rhode Island more appealing to day-trippers, conventioneers, domestic tourists, international travelers and world class events.

Part of what makes hospitality so unique is that it has virtually limitless potential for growth. Simply put, the more visitors we attract to Rhode Island, the more jobs we are able to create and the more revenue we are able to generate in tax recipients. What other industry can say that?

That is why it is a short-sighted fiscal policy to tax hospitality as part of a larger effort to plug a budget deficit. Instead, policymakers should be focused on making our industry as competitive as possible. Consider some of these interesting facts contained in a report about Rhode Island’s tourism industry by IHS Global Insight, an internationally respected economic forecasting company, which demonstrate exactly how valuable each visitor is.

• Every 187 visitors create a new job in Rhode Island.


• If tourism didn’t exist, each household would pay an additional $1,310 in taxes to maintain the current level of state of local tax receipts.


• Each visitor generates about $444 in expenditures. $88 of this goes to Rhode Island businesses that do not directly “touch” that visitor.


• Each visitor creates about $119 in tax receipts. $69 of that typically goes to state and local authorities.


• It only takes 198 visitors to pay for one Rhode Island public school student for one year.


• Each visitor adds about $210 to the Rhode Island Gross State Product.

The hospitality industry understands the financial pressure facing not only Rhode Island, but all 39 cities and towns. Our industry is also under immense pressure. As we fight to keep our costs down, and our prices affordable, the cost of commodities used by our restaurants continues to rise at an exponential rate.

For example, over the last two years, the cost of flour is up 22%; coffee is up 18%; eggs are up 17%; butter is up 13%; and gloves for our employees are up 21%. The price of beef and veal is up 15%, while pork is up 12%. Despite this, menu prices have increased just 1.5%. Hotels and other businesses are also working to remain affordable in light of more expensive operating costs.

As the fourth largest industry in Rhode Island – one uniquely positioned to provide growth and stability to the Rhode Island economy – we must constantly evaluate how we can be as competitive as possible in order to draw additional visitors to our state. Imposing new taxes, now or in the future, will never accomplish this goal.

The Year Ahead

Dale J. Venturini
President/CEO, RI Hospitality Association

Are you exhausted from the seemingly endless discussion about the economy that has been taking place over the last several years? I know I am. But, with the health of the hospitality community so intimately tied to the ebb and flow of the marketplace, it’s a conversation that simply can’t be avoided.

As 2011 was drawing to a close, the RI Hospitality Association (RIHA) hosted its annual Economic Outlook Breakfast. About 100 industry leaders gathered to hear some of the leading minds in hospitality research lay out their predictions for 2012. To be completely honest with you, it was not the news many of us were hoping to hear. But, it was the news we were expecting.

The news many of us, myself included, wanted to hear was that job growth would dramatically reduce the unemployment rate; discretionary spending would return to pre-recession levels; and that consumer confidence was on the rebound. That simply isn’t the case right now, and we all understand that.

What we learned was that Rhode Island and the nation continue to be mired in a growth recession. While economic contraction seems to have halted, at least for now, there is no meaningful growth taking place. Consumer confidence also remains low.

However, it’s not all bad news. According to one of our panelists, Hudson Riehle, Senior Vice President of Research and Information at the National Restaurant Association, restaurants and food service providers are among the top creators of jobs nationwide since March 2010. That’s when many analysts say the job recovery began. Riehle says he expects full service, limited service, and managed food service operations to see some growth in 2012.

Riehle also told the group that pent up demand for restaurants continues to increase. According to a recent survey conducted by the National Restaurant Association, two out of every five adults say they are not eating out as much as they would like too. This is great news, as any improvement in the economic climate is likely to result in additional business, and potentially the need for more job creation.

Rachel Roginsky, President of Pinnacle Advisory Group, focused on the lodging industry, and said her organization found Rhode Island hotels can expect modest, continued growth in occupancy percentage, daily rates, and REVpar (revenue per available room). However, Roginsky says economic uncertainty remains the biggest threat to the industry, with the potential to flat line any growth. This is a trend that holds true in markets across the country.

Shane Norton, a Senior Consultant at IHS Global Insights’ Travel & Tourism Group, told the gathering that he expects Rhode Island to set a new record for total visitors to the state in 2012, but that growth will remain flat in 2013 and beyond unless there is a change in the economic climate.

While some of this news may not be as good as we had hoped for, it’s important to remember that each year continues to be a little bit better than the year before. 2011 was better than 2010. 2010 was better than 2009. 2009 was better than 2008.

2012 may not be our best year ever. Even though many of us are disappointed that the economic recovery is not moving along as fast as we would like, we can look forward to this year being the best year we have had since the recession began. That is certainly something to look forward too.

Stars Shine Bright in Tough Economy

Dale J. Venturini
President/CEO, RI Hospitality Association

I can honestly tell you that one of my favorite nights of the year is the RI Hospitality Association and RI Hospitality Education Foundation ‘Stars of the Industry’ awards ceremony. This year, we recognized the service and achievements of more than 60 hospitality professionals and organizations representing hotels, restaurants, tourism, and allied businesses. More than 500 people -- family, friends, colleagues, and elected officials -- turned out to celebrate the special occasion.

When I think back to the humble roots of this event more than 20 years ago, and reflect on how it has grown from a tiny banquet to an annual can’t miss gala at the Rhode Island Convention Center, I can’t help but think it’s due in large part to the spirit of community that drives the hospitality industry.

The Stars of the Industry awards ceremony recognizes individuals and organizations for their contributions to tourism, restaurants, and food service both over the last year, and over the course of a career. The recipients aren’t nominated by a committee; they are chosen by their bosses, co-workers, and even their customers.

Being recognized by your peers is perhaps one of the most meaningful achievements one can receive. Our peers are the people we work with every day. They are the people who see us at our best and at our worst. They understand the hard work, dedication, and commitment we put forth to be the best that we can be.

These are virtues which are easy to abandon during the tough economic times we have been experiencing over the last several years. As we continue to do more with less, it’s easy to become overwhelmed, to stop caring, and to just go through the motions of the day.

But, the individuals we have the honor of recognizing did just the opposite. As we poured through dozens and dozens of nominations, many of the same words consistently popped up: silent leader, mentor, role model, dedication, honest, trustworthy, dependable, driven, and generous. Instead of throwing in the towel, our recipients buckled down and looked for new ways to help their co-workers, their customers, and our Association.

For some of our recipients, it is the most recent recognition for an illustrious career dedicated to service. For others, it is the first time they have been honored, and I find it particularly gratifying to be able to recognize their work.

Our Employees of the Year awards often recognize those who toil without recognition. They are our waitstaff, line cooks, luggage team, sales coordinators, department managers, event managers and others who ensure our operations run smoothly every single day.

I wish I had the space to recognize each recipient by name in this column; but, there are simply too many to list and it would be a disservice to leave anyone out. However, I encourage you to take a few minutes to visit our website, rihospitality.org, and read through the names of this year’s winners for yourself.

While we may have recognized the work of 60 or so individuals and organizations, there are many more who work to make the hospitality and tourism industry in Rhode Island such a wonderful, vibrant community.

As we begin 2012 with high hopes and high expectations, I also encourage you to keep an eye out for the stars of your own business. Take the time to let them know you appreciate all they do to make our industry one of the best in Rhode Island.

Once again, congratulations to all of our recipients and good luck in 2012!