Bill Geist's Zeitgeist

The Re-Imagined Annual Meeting

One of the few positives that have emerged from the pandemic is how creative some of us have become. What started with Zoom Happy Hours in an attempt to maintain a sense of normalcy in the early days of the 'VID has blossomed into some pretty ingenious ways.

Take, for example, the ubiquitous DMO Annual Meeting. For the most part, these have been relatively staid events over the years...and we've been honored to keynote a bunch. But, in an era of physical distancing, DMOs have had to get creative, like the Greater Springfield MA CVB did last month.

Theirs was typically an event with food and drink...so Mary Kay Wydra and her team sent boxes to each registrant to the Zoom meeting, with instructions to not open said box until the event began. Once the Annual Meeting was gaveled to order, participants opened their boxes to find wine, beer and snacks for the meeting, as they listened to Mary Kay's recap of the year and her vision for the future. It was a great twist on an old theme in which I was honored to play a part.

Visit Jefferson Parish holds their Annual Meeting next week as a hybrid event. Those who feel comfortable gathering will mask up at a local theatre to mark the occasion while those who don't will be able to tune in from home.

And then, there's Visit Tulsa...which recently hosted their Annual Meeting at a local Drive-In movie theatre. Over 150 people munched on popcorn and watched the annual show from their cars at the Admiral Twin. And then were treated to a movie recently shot in Tulsa.

I love this industry and the creatives we get to work with every day.

Capitalizing on ThanksVIDing

As with just about everything in 2020, this year's Thanksgiving will look like no other in memory. Travel advisories, consumer fear of air travel and a hospitality industry still suffering the loss of millions of jobs are all conspiring against many of us planning to get together this year. 

And, with fewer people around our tables, how many of us will feel compelled to really put in the time we typically did? And, that's where what's left of the hospitality community has an opportunity. Restaurants around the nation are pivoting again, this time offering Thanksgiving feasts to go. Destination Madison recently shared a growing list of restaurants doing up everything from full holiday menus to pies for take-out.

But our favorite to date has to be what Tulsa's BOK Center and Cox Business Convention Center are doing. With neither facility seeing much business these days, one could expect them to stay dark over the holiday. Instead, the in-house catering team from these facilities is whipping up fully cooked and chilled Thanksgiving dinners (with reheating instructions included with each order) to "make your guests think you spent all day in the kitchen." Honestly, what a sensational way to keep staff from these two facilities engaged and employed while providing a huge number of meals thanks to vast kitchens at their disposal.

Really smart.

What it's Really Like

As I've told audiences on several virtual Annual Meeting presentations we have done for Destination Marketing Organizations, what we thought would be a universal understanding of the pain caused by government-ordered shutdowns simply hasn't happened. And, that's because a lot of people don't work in hospitality and can't fathom the depth of pain we feel. They're still working; getting a regular paycheck and benefits. They may be inconvenienced by the 'VID...but they aren't looking at eviction.

Terri and I have a special affinity for Hell's Kitchen, a Minneapolis bar-restaurant that hosted our DMO client-and-friend reception when Destinations International met in the Twin Cities in 2016. If you were there, you know how nasty cool this employee-owned spot is.

Terri continues to be tickled by their irreverent e-mail marketing (We're happy to be offering delivery & curbside pickup so you can take a little Hell home with you)...but shared this recent missive with me last evening. While the majority of the e-mail was about opportunities to make Hell's Kitchen part of their fans' Halloween, there was this at the close of their message:

As promised, we want to keep you up to date with how HK is surviving COVID because so many of you have written that you like our "behind the scenes" news. Even though we expanded our hours and delivery range dramatically last month, the truth about trying to survive COVID as a large, downtown restaurant with high fixed costs and real estate taxes remains harsh:

We're thrilled with all the orders we've received for Pickup and Delivery, but the numbers don't lie: our total September 2020 income was just four percent of what we brought in September 2019. That's not a typo: our business is down 96% compared to last year's same period.

Our staff roster pre-covid was 155--it's now at 7, and that's after bringing back more employee-owners to help with delivery and expanded hours.

When we first closed down on March 16, we were completely debt-free and had money in the bank. That's why we were so positive in April..."don't worry, folks. We have our savings account to get us through this temporary setback" (keep reading to see why we're still optimistic). On March 16, our "current" payables to food and service vendors amounted to approximately $193,000 (we've always paid invoices on time, so nothing was past due). Of that amount, we've paid off all but $15,000 and are almost caught up. We're thrilled that we've been able to honor our commitments to our critical food suppliers, but it drained our savings completely.

As the virus continued to drag on into fall and we still had mounting bills (remember, our "burn rate" while closed is still well over $50k/month), we were finally forced to dip into our PPP funds in early September. Many people think "but that government stimulus PPP money was forgiven, wasn't it?" Nope; in fact, NONE of it was forgiven because we did not have anyone on payroll during the government's "time limit," a restriction which made NO sense whatsoever for restaurants throughout the country that were (or are) still shut down to help control the spread of the virus. So ALL of our PPP money is now DEBT which now must be paid back.

Re the PPP loan: No matter how frustrating it was to once more take on debt, we're still grateful, because we honestly feel this loan will give us a long enough runway to survive COVID through next spring if we spend our pennies wisely. Our mantra is "Every. Penny. Counts." For example, we now drag the soiled linens home each week rather than pay the linen service. We moved all of our banquet supplies from our rented storage lockers ($412/mo) to our empty dining rooms. We cancelled every contract we could (grrr to those mega companies who don't give a damn). Even our many phone lines are now down to only a few, and our unused bar coolers/refrigerators are turned off to save on our electrical bill. Baby steps, righhhht?

That's our story and yes, we still have a lotta moxie and hope. We didn't share these details to despair, guilt-trip or inspire fear; our skeleton crew is doing an amazing job guiding the business back to safe harbor and we're confident that Hell's Kitchen will weather the storm. We only share these admittedly-scary numbers because we want everyone to understand the reality of running a downtown restaurant that was dependent on 1) office occupancy, 2) hotel occupancy, 3) convention center activity and 4) visitors to downtown music, sports, and theatre events.

So whether you're in NYC, Nashville, L.A., Seattle, Charlotte, Houston, Chicago or any other major metropolitan area, don't forget to also support the indies that have helped make your downtown experiences unique and marvelous all these years. Those "takeout and delivery" orders mean the world to us all as we wait for this nightmare to be over. Your help now allows us to get back to normal and take care of you when our dining rooms finally reopen.

Be well, stay swell and VOTE!

We know Hell's Kitchen will survive; it's who they are. But, did you catch all the contracts they've canceled? What about those companies...and the ones that depend on them? The ripple is frightening. And, most Americans don't recognize that this all will impact them in the next year.

Did you also pick up on the real estate taxes that contribute to their "sunk costs?" That government has ordered these businesses closed, shouldn't there be some relief there, as well?

And, of course, Congress continues to sit on its hands.

Be well, stay swell and VOTE, indeed.

Culinary Ghosts

As we shared last Thursday, the impact of the government's ham-handed response to the 'VID has hit restaurants and hospitality businesses especially hard. Here in Madison, a number of iconic restaurants have closed for the winter...and some have sadly closed forever.

An hour or so south of the Mad City, a number of Rockford restaurants have taken a different tack, creating what they call "Ghost Restaurants." These are eateries that exist virtually and often offer fare that isn't on the menu at the host kitchen but is still prepared there. Like a Mexican restaurant selling pizza and an Italian restaurant selling wings.

In an article in the Rockford Register-Star, restauranteur Paul Sletten said, “I had staff who needed hours. I had our hog farmer Joe at McKenna Farms who needed to sell pigs. It was less about making money and more about helping our staff...we have about 19 employees, and we have made work for all of them.”

And isn't that what people in the hospitality industry do? Look out for each other? So sad that some of the most noble business people around are being left adrift by our elected officials.

Most Simply Don't Understand

Congress takes a lot of crap for being out of touch...but we keep electing them. And, maybe our own collective lack of understanding of what makes an economy hum is reflected in their utter lack of concern for just how bad it's gotten for the hospitality industry.

This article from one of Madison's newspapers is simply chilling (no pun intended). With temperatures dropping into the 40s and 50s, outdoor drinking and dining becomes increasingly difficult. And, with the virus spiking in Wisconsin, patrons here are increasingly skittish to head indoors.

The result, scores of restaurants are closing for the winter...and some forever. If you're from around here, you know the names. If not, trust me, these are big names and icons we're talking here.

Without another round of financial assistance, our communities will be mere shells of what made them attractive and successful. The losses we are experiencing here in Madison is just the tip of a mammoth iceberg that nobody seems to want to notice.

Winter is coming.

Bringing the Pain Front and Center

The team at the Cabarrus County CVB has been masterful at their use of video during the pandemic. Their "Pit Stop" video early in the crisis was one of the most hopeful and heartfelt videos we saw last Spring.

I know that many of us in the Destination Marketing sphere believed that the unimaginable carnage that descended on the travel and hospitality industries during the second and third quarters of this year would result in a newly sophisticated appreciation of our role in the economies and quality of life in our communities. While many people supported their favorite businesses by stepping up their patronage of those that could deliver product virtually, distantly and/or take-out, so many of our community leaders have yet to fully understand the acute pain.

With all due respect, they have been dealing with their own struggles and, unless they knew someone from the hospitality and performance sectors, they haven't yet experienced the pain.

Donna Carpenter and her crew are back with two new videos. One encourages area businesses to get certified as safe and healthy with the voices of local partners spreading the message. Which, of course, is the most effective way to get viewers engaged.

But, it is the second video that is so amazingly powerful. "The State of the Hospitality and Tourism Industry" peels back the happy face we typically show the world to showcase the pain our partners experience as they are forced to layoff staff and potentially close their doors. It puts a face to the pain; it gives voice to the agony so many feel.

And, we can surely hope that it will resonate with Local, State and Federal leaders that there are so many of their constituents crying out for their help.

Your Vote Matters

Last week, we shared that the government's chaotic response to the 'VID caused a restauranteur in Minocqua WI to shutdown for the season. Not that such a decision is an unusual situation in these unsettled times. But, the owner wrote an open letter to his fans, closing it by saying, "Please join me in voting against everyone who hurt us on November 3." 

Here's hoping he ordered his pair of Regenerative Organic Stand Up Shorts from Patagonia...because a company spokesperson has confirmed they are sold out of run that had the words "Vote the Assholes Out" on the backside of the garment tag.

Too funny.

The Suffering Congress Ignores

Few have been spared from the pain wrought by the 'VID. But, it's the small business owner that has been impacted the most. And, when one recognizes that roughly 95% of tourism-related businesses are classified as "small business" by the SBA, you have your proof that travel and hospitality have been hurt the worst. Yet, Congress fiddles while small businesses close, wiping out hundreds of thousands of entrepreneurs and millions of jobs.

A restauranteur in Minocqua recently closed his business until next season, citing the lack of State leadership in an insane, partisan-fueled stop-start-stop dance that has been Wisconsin. His closing line in a Facebook post announcing the close was "Please join me in voting against everyone who hurt us on November 3."

You'd think that, in the less than 50 days to election day, our elected leaders would be focused on voters over campaign contributors and political ideology. But, I see no such evidence as scores of business owners shutter their dreams and the livelihoods of so many. Think they're pissed? Think they'll vote?

Maybe what our elected leaders all need is to read this open letter from one of the owners of the now-shuttered Mermaid Inn on New York City's Second Avenue. I dare any member of Congress to read the owners' story and not be galvanized to do something NOW to assist these businesses who were forced to close in March. 

Because, if action isn't taken, I dare say that there will be a sizable portion of the more than 15 million people that were employed in the restaurant industry in this country in March that will give voice to their disgust at what Congress has become on November 3rd.

Or, one must ask, does Congress even care?

This is What DMO Pros Do

In yesterday's post, we shared a story about how a City government has shifted from "them's the rules, bub" to "how can we make this work." Refreshing...and as Quint Studer points out in Building a Vibrant Community, that's exactly what today's local governments should be doing to encourage private sector Place Making.

The back story makes this tale even better. Amie Burrill is the Executive Director of Experience Burnsville. The reporter who wanted to do a story on the soon-to-open Ineffable Brewing Company had reached out to Amie via the DMO's Facebook page using Messenger on Monday morning around 10. That would be the morning of Labor Day, when Experience Burnsville was closed, for a Labor Day story to run that evening.

Never fear...because DMO pros like Amie don't pay attention to holidays or operating hours. Even when they are out of town, as Amie was. But, because she brought her "business phone" along on her trip, she picked up the message in minutes, connected the owners of Ineffable to the reporter and alerted a Board member (also a City Council member). An hour later, the TV crew arrived at the brewery to interview the owners (and the City Council's Dan Gustafson). And, the piece aired that evening, showcasing not only the brewery but the City's can-do response to entrepreneurial opportunities for viewers throughout the Twin Cities.

This is how it's done in the pros.

Nicely played, Amie.

 

This is How Government Should Work

You gotta love the entrepreneurial spirit in the face of a global crisis. Three friends from the Twin Cities are planning to open a brewery in Burnsville MN next month called the Ineffable Brewing Company. As with any such venture, there is typically a staggering gauntlet of regulatory hoops to traverse. But apparently, the economic struggles brought on by the response to the 'VID has the City of Burnsville reassessing how it works with local businesses.

Dan Gustafson is a Burnsville city council member (and Board member of Experience Burnsville). In a recent interview on KSTP-TV, he said, "We've gone from 'these are the rules' to 'how can we make this work?' And that's how we're operating out here these days."

Bravo Burnsville. And here's hoping that more communities realize that going back to "these are the rules" isn't nearly as effective in Place Making as "how can we make this work."

Congratulations to the crew preparing for their grand opening. We can't wait for our next visit to Burnsville to experience Ineffable.