In R.I., ‘Overall cost of doing business is outrageous’
Restaurant owners and hoteliers have had to face a tough few years during and after the COVID pandemic that include a persistent staffing crisis, rising costs, a disastrous supply chain problem, changing tastes, and tricky red tape that can make owning and operating a business even harder.
Earlier this year, Rhode Island Hospitality Association president and CEO Dale Venturini announced she would retire after nearly four decades leading the trade group. Heather Singleton, the association’s chief operating officer, stepped up to serve as the association’s interim CEO in the meantime, and spoke about the challenges the restaurant and lodging industries face in 2024, legislative priorities, and her own future.
Q. At no surprise, the Washington Bridge has to be rebuilt. We know this is already decimating businesses. What is the association focused on?
Singleton: For a while, everyone was taking this “wait to see” what the results are approach. Now, we know it’s going to take a couple of years to get back to normal. We’ve started listening sessions with business owners to hear directly from them on what kind of help they’re really going to need over the next few years, and we plan on working with elected officials to help support those businesses. But immediately, RIHA is relaunching our Employee Relief Fund, which is for employees that are currently facing an unexpected financial hardship. This fund initially came about because of COVID, but we still had some money left in that fund so we’re going to be reopening that.
Q. How much could an employee receive from this fund?
A. It’s up to $1,000. The United Way of Rhode Island and the Rhode Island Foundation had helped us get that fund set up during the pandemic, and we received a lot of donations to continue feeding it. During COVID, these funds are what helped some employees who were laid off. When folks returned to work, we decided to turn it into a relief fund that has been used for emergencies.
Q. What kinds of emergencies?
A. An employee from Connecticut was living and working in Rhode Island when her parents contracted COVID pretty badly and it was not a good situation. She just needed gas money in order to get back and forth from Rhode Island to Connecticut
to help her parents. The relief fund was able to help with that.
Q. Other than the bridge, what are the most pressing concerns your members face in 2024 in Rhode Island?
A. The overall cost of doing business is outrageous. Everything from business insurance, utilities, goods, transportation fees, labor, rent, and other expenses are all much more expensive.. If sales are up, the money is just going out the back door. If sales aren’t up, businesses are having a hard time keeping up.
Q. Most states spend an average of $20 million on tourism marketing. Ours is only $5 million, but much of our economy depends on the hospitality industry. What’s with the divide?
A. We work with all of the tourism regions in Rhode Island, and consider them the “front of the house” while the association is the “back of the house.” We’re focused on a lot of the advocacy, lobbying efforts, and workforce issues; the tourism regions are in charge of promoting the destination and bringing folks in. I know that $5 million is not a lot. We’re trying to bring in leisure travelers, business travelers, and people coming in to visit friends and family. That’s three different sectors of tourism. We need a lot more than $5 million.
Q. What is the association planning to advocate for in front of lawmakers this year?
A. Everything is on the table. We’re tracking close to 150 pieces of legislation right now that have been introduced in this session. [For example, there are two pieces of legislation that have been introduced in the General Assembly that could force restaurants to stop charging service fees.]
Q. Happy Hour was canceled in Rhode Island in 1985. Will it ever return? Should it?
A. We haven’t taken a position on this. We surveyed our membership and the results showed business owners were split right down the middle. Some were very supportive of it; others felt it wouldn’t help them.
Q. Are you looking to serve as RIHA’s permanent CEO?
A. Yes, I’ve applied. I’ve been here for 26 years, and with Dale as my mentor and coach over the years, it’s always been my goal to lead the association.
Q. If you were selected, what are your yearlong goals for RIHA?
A. First thing is to deal with the crisis at hand: the Washington Bridge crisis. I’m only a few weeks into the job as interim CEO and the bridge is definitely going to be a major focus for us.
Outside of the bridge, I’d like to revaluate our current benefits and services that we’re offering members to make sure they are still valuable. I want to look out for new partnerships and expand membership. So many new places are coming up into the industry, and I need to meet and hear from them directly.