I have been talking about our current labour situation and how 5 years ago you were setting sales records and scrambling for staff as we headed in to the boom and now as most of you are doing the same sales as you were then you are talking about how tough business is and all of the great candidates out on the market.  Perception is STRANGE!  In one circumstance you were scrambling to find people and now you are holding off on hiring (but not worried about finding people).

It is coming – the labour crunch that is!  I have said it before and I’ll say it again, pre-boom unemployment was 7.8% (in 2004) and now…7.9% .  That is a whopping .1% difference.  I have challenged people to go back and check their sales and compare present day to 2004/2005 and see if there is any difference. 

The reality is that as Manufacturing and Oil & Gas pick up all of your “loyal” staff will be picking up their gear and heading out to make the perceived “big bucks.” In 2007 high school drop-out rates were the highest they have ever been and post secondary enrollment was the lowest it has ever been – people were dropping out to go out in to the work force to make $! And statistically the 18-25 age demographic is SHRINKING – yep, shrinking.  Our population is aging and nearly half of the people in Canada are headed for retirement and there are far less of the “younger generation” to fill the vacant spots left by those who are retiring.

Here is a prediction.  In the next 12-18 months you WILL be scrambling for staff.  Unemployment will be at or under 7% and business will booming (not to the levels seen in 2007 but pretty respectable).  If oil gets over $80/barrel people will be migrating to the prairies in droves.  If manufacturing picks up in Ontario people will be lining up.  We in the Canadian Hospitality don’t do a great job at keeping our people happy or paying them what they deserve which leaves the door open for them to leave to find better opportunities.  Unfortunately we are a “feeder” industry!  People come to us when they need some quick cash and as soon as something better comes along – they’re gone.

So I challenge you to do a better job with your people and work to make our industry one of pride, prestige and recognition.  Lets make our professional feel proud to be a part of our industry and most importantly lets start changing the “rules” we have defined and start treating our employees they way they deserve to be treated.

I want to hear from you on this topic.  Are you frustrated with your current situation?  What would you change if you had the power to do so?

I want your comments and would love to start a conversation.  Please leave your comments and forward this article to anyone you think might appreciate it.

Join our Group on LinkIn – Canadian Hospitality Professionals Unite!

Current and Future Prospects in the Hospitality Industry

The seasonality of the hospitality industry does create challenges that are somewhat unique to the industry. The important question is: What the industry is doing over the long run rather than just season to season?

Some numbers might help; in 2009 the tourism industry in BC was worth almost 10 billion to the provincial economy. That equals wages for a significant number of people in BC!   Recent reports from the BC Tourism, Culture and Arts Minister Kevin Kruger wants to see the industry in BC expand to $19.6 billion by 2015.  Interestingly enough as a comparative New Zealand’s tourism contributes about $25 billion annually to their economy. Whereas Kruger’s number might be a little optimistic there is no doubt that hospitality and tourism will continue to grow in BC and indeed nationally.   Hospitality companies know this, look at the growth we have seen in Vancouver in the last year, the opening of two new high end hotels in the downtown core, renovations and upgrades to others.  The opening of one of the newest LEED convention centres in the world hit the market late last year which just happens to be in Vancouver as well.  If you think these properties “just opened for the Olympics” think again.  These new hotels and facilities where built because the stakeholders see real potential in our expanding market.  This translates into more jobs for the city and region.

Here’s a look at numbers from the accommodations side.  Statistics around room rates and occupancy are often used as a measure of success in the industry and here’s what’s been happening this summer.  The occupancy in Vancouver hotels has been the highest in all of Canada’s three major markets; Vancouver, Toronto and Montreal. Vancouver’s average weekly occupancy rate has been as high as 85% whereas Toronto has only reached  75%,  Montreal at 78%.   Sure Toronto and Montreal have more hotels rooms to fill than Vancouver, but its’ nice to know that what we have here is experiencing such a high occupancy for the summer months.  Even more telling are some numbers from June 2009 to June 2010.  For Vancouver, the occupancy rate was 70% in June 2009 and near 74% in June 2010, That translates to 704 more hotel rooms that where sold and 704 more rooms that needed to be maintained and cleaned, and more to the point at least 704 more customers in the Vancouver hotels and on our streets over the same time last year.

Another number that should tell you we’re doing better  than 2009 is the Average Daily Rate (ADR).  In the same three markets, yup you guessed it!  Vancouver is ahead of the pack in recent weeks with an ADR of $157.00 compared to a high of $137.00 in Montreal and only $123.00 in Toronto.  Vancouver comparing June 2009 to 2010, the ADR rose from $148.52 to $154.16. That’s $100,000 more per month in the Vancouver economy for just accommodations not to mention the spin off to attractions, entertainment and the food and beverage industry.

So what do these numbers tell us about employment in the hospitality industry in Vancouver?  Overall it indicates a strong market, at least stronger than the other two major markets in Canada.

Employees in recent years have had to be more resourceful with job searches, do your homework with regard to the companies you apply to, that’s why we have the internet.  I know you hear it all the time, but believe me it’s true, for those that are persistent and do the back ground research there are jobs in the industry.  Also don’t wait around to see what jobs come up in the papers or posted online, some stats suggest that almost 80% of the jobs found are from word of mouth and networking.  This is particularly true in the tourism industry were people often work at a number of different companies at the same time. They have an incredible amount of “intell” with regard to the hidden job market. So get out there and network!

How many jobs are in BC’s economy in tourism and hospitality?  The Canadian Census for 2006 (the most recent census figures available) groups tourism sector employment over five major groups; food and beverage services, transportation, accommodation, recreation and entertainment and finally travel services.  The Canadian Government NOCC codes identify some 400 different job titles in hospitality and tourism all within these major groups.  Back to 2006, the Canadian Census identifies 271,000 British Columbians employed over these five groups, with more than 147,000 in the lower mainland.  Put another way, more than 55% of the employment in tourism is found in the Vancouver region.  It gets better, some estimates put employment in the hospitality industry in Greater Vancouver to over 226,000 by 2015. Or if you like 80,000 more jobs in the industry from 2006 Census numbers to the projections for 2015, this translates to an average of more than 8,000 new jobs in this region every year.

Remember some tips for your job search:

1. There are jobs out there
2. Be persistent
3. Be prepared for your search and interviews
4. Get more training to enhance your skills and professional development, it increases your marketability
5. Last but not least, develop your professional network in the industry.

Company Profile:

Mike Walmsley is the owner and president of Cobalt Hospitality Consulting specializing in cost solutions for the industry as well as employee training and professional development.  mike@cobalthospitality.com

Egon von Foidl, is a seasoned hotelier with significant international experience in the development and management of deluxe hotels, resorts, golf and spa operations. His practical skills, hands-on management style, combined with a strong sales, marketing and PR/promotions knowledge, as well as fiscal responsibility, has earned him high recognition within the hospitality industry and awarded him the prestigious “CANADIAN HOTELIER OF THE YEAR AWARD” in 2003. What makes his experience unique is, that he not only brings many years of operational experience, but also re-positioning, development, design, and opening experience of hotels, resorts, condo/resort, golf courses and spas operation to the table.

Good afternoon from hot and humid Miami. It has been a busy month with a week long visit to Costa Rica and visits to all key hotels and resorts such as Four Seasons, Melia, RIU, Hilton, Marriott and selected independent hotels. It was very interesting to see that all inclusive operators such as Melia and RIU, located on wonderful private beaches with a wide variety of amenities, would produce occupancies in July of 50% and an ADR in the $120 to $150 range. Four Seasons on the other hand, with rates in the low $400.00 produced an occupancy of 85%. Obviously the rich are not as much affected by the economic troubles. It was always my philosophy that you either operate in the very high end market or pursue the budget market. It is the mid market and in particular non branded properties that feel the strongest impact by the economical swings.

OK let’s get back to the USA and Canada.

When looking at statistics for tourism in Ontario it is still very sad to see that border crossings from the US to Ontario decreased by 14.7% versus 2009. Overseas visits increased by 0.3%. With the economy in the US still struggling and the US Dollar being nearly at par, traffic would expected to be lower. The Euro compared to the Dollar is now near the $1.30 range from 1.48 in 2009. The UK and France had declining visits to Canada, Germany an increase of 5% and Japan a year to date increase of 30%

Ontario showed an occupancy of 57.5% with Toronto showing strong growth and occupancy of 75.8%

When looking at Canada at large, in year over year measurements, The Canadian hotel industry occupancy increased by 11.7 percent to 65.9 percent. ADR was up 5.2 percent to $131.51

When looking at the US year over year measurements, the industry increased by 12.6 percent to 59.2 percent occupancy with the ADR staying virtually flat at $96.31. REVPAR is listed at 57.00.

Among the top markets Boston experienced the largest gain with occupancy of 70.4%. It is also interesting to note that New Orleans is showing gains in occupancy, ADR and REVPAR and is finally getting the deserved support from the travel industry.

I am planning visits to Chicago and Toronto this week, then Boston and NYC next week and back to Miami end of the month.

Much success

Egon von Foidl

President/CEO

HRG Hospitality Resources Group International

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I know what you are thinking – Budgets, Bottom Line, we don’t have the money.  The only answer I can give you is spend the money now OR spend twice as much shortly when you have to hire, train and retain 50% of your staff.

Here is what we know – 50% of YOUR STAFF, yes your staff is LOOKING for a new job right now because they feel over worked and under-appreciated.  And believe it or not they really don’t care about your budget or excuses of why they have to work extra hours and receive no compensation or why they have to find a way to do 10 hours of work in their scheduled 8 hours.

It is not hard to see when you go out.  Staff are largely disengaged, you can watch and listen to them complain about their job while they are working and in a time when the market is “flush with great people” looking for work, right?  Well, if there are so many great people out there why is there such average or even sub-par service happening out there?

The answer is easy.  The people you do have don’t like their job – that’s why 50% of them are looking, right now.  When the economy is tough, big business  focus on the bottom line and that’s it.  Profits matter not people, which may have been acceptable when people used to line up for jobs.  But in a day when employers line up for staff, upsetting your current people might not be the smartest thing to do as finding suitable replacements is a huge challenge in its self but when you take in to consideration the cost of turnover (1 years wages) it is twice as costly.

One of the major reasons why they are looking is that they are over worked and under-appreciated!  You know they are because you are too!  It is often difficult to have sympathy or empathy for your staff when your gas-tank it on empty too.  I know, I have been there, in fact it is the exact reason I am a recruiter now.  There is so much downward pressure on the leaders which is then transferred to the line staff.  The reality is that 50% of the people reading this are looking for a new gig and probably for this exact reason.

I want to hear from you on this topic.  Are you frustrated with your current situation?  What would you change if you had the power to do so?

I want your comments and would love to start a conversation.  Please leave your comments and forward this article to anyone you think might appreciated it.

Corey Harlock – the Hospo Headhunter

Presenting sub-par offers can kill your business in more than one way.  As we discussed in the previous article, the market is NOT flush with people desperately looking for work.  In fact quite we have seen the opposite happen.  Skilled and qualified people are actually holding out for jobs and offers that will meet their demands both professionally and financially.  Research shows that salaries have actually increased over the past 12 months!  So the chances of you getting an “ace” on “the cheap” is slim and none!

If you are able to land the big fish for a good deal – it will be a short term relationship – I guarantee it. There are some people out there that need to take a survival job to pay the bills, so they will accept your offer and say all the right things.  You will think that you proved me wrong and that you have strengthened your team under budget.  And you have – short term.

We know that 50% of ALL OF YOUR STAFF are currently looking for a new job.  This is true.  50% of all staff out there (yep you read that right)  are just waiting for a better offer to come down the pipe so they can fire you and join a new company and people who are taking survival jobs are at the top of that list.  Think about it.  Would you take a pay cut to do the same job if you had too?  I don’t think so!  Either would the people who you low balled.  So these people are putting in their hours and paying their bills, all the while waiting for their real opportunity to come their way.  I have referred to these employees as rental players. Sure you have beefed up your line up – but on for the short term.  The Free Agent Frenzy is just around the corner and just like pro sports your aces will be looking for go to the team that offers them the sweetest deal.

Turn over HURTS!  Especially when you are turning over key management and execs.  If you do land a big fish for a low price and they start to have an impact on your business – what will happen when they leave you for a job willing to pay them for their experience?  Think about the cost to your business.  When they do leave the market will be even tighter – so finding an equally skilled and available person will be a lot tougher.    And while you are looking for that elusive replacement what will happen to all of the work that was done by the person who left your business without a second thought.  It WILL COST YOU a lot of $!

Now is the time to offer and pay people what they are worth.  Despite what you might be telling them we know that the market is getting better for both job seekers and your business. We are approaching 2005 numbers in unemployment and I bet in sales (for your establishment).  Do you remember 2005?  Setting sales records, feeling the hiring crunch, paying higher salaries?  Well guess what – you are right there again!  Go back and check for yourself.  Look at your sales month over month in 2005.  Look at your occupancy, ADR, AGC; however you are measuring your sales and see for yourself.

Every article I have read in the past few months shows that all signs are pointing up.  Sales, travel, employment, consumer spending etc.  Do not believe your own hype and get caught thinking that you can low ball good people and make it work long term.

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So many people I talk to out there tell me that they don’t require a recruiter, they will just post an ad and we will get lots of great applicants.  Well there are a few things at play here.  I use those job boards too and I know that you will not get “lots of great candidates.”  Secondly, there are just not a lot of candidates out there!

Do you remember 2004?  If you do, you’ll recall that is when things started to “jump” in our economy.  Monthly sales records, companies growing and you started to comment on the lack of good applicants coming through the door and in many cases just the lack of applicants at all.  We to put things in perspective the unemployment rate back then was… 7.8%.  Doesn’t seem so bad does it?  The HUGE majority of our aging population was 6 years younger and still thinking about work.

Currently, where do you think our unemployment is?  Must be a lot higher than 7.8%?  Maybe it’s 8.5% or even close to 9.0%.  NOPE it is currently at 7.9%.  That’s right it is a whopping .1% higher than it was when you were setting your sales records back in 2004!

Go back and see for yourself.  I would be curious to know where your current sales are compared to 2004.  What if they were the same?  What does that mean?  In 2004 you were setting sales records and in 2010 with virtually the same sales you are struggling to recover from a recession.  Hmmm, just food for thought.

My point being – staffing was challenging back in 2004 and we are in virtually the same economic climate we were in back then.  So why then would you think that there are lots of “great” candidates out there in the market?  Were they there in 2004?

 It is time to change our mind set and start to realize that times have changed.  In a world where the average length a person will stay with you is 2 years – yep that is not a typo, and it is getting harder to replace that person with another equally skilled individual, hiring is going to get even tougher.  It will be the difference between success and failure (which has lots of different definitions: closing your doors, working 80 hours/week, losing your family etc.)and remaining small or growing (both in business and units).

My question is what are you going to do about it in your business?

The economy is recovering but wages are going up??? Really!  Do people in our industry feel they get paid fairly in comparison with others or for the work they do.  The answers may SHOCK you.

Born & raised in Calgary, graduated from Hotel & Restaurant Management at SAIT in 1998. In 1999, Patricia developed her hospitality consulting company PMK Consulting and has since assisted several hotels and restaurants with service excellence, marketing and cost effectiveness. In August of 2000 Il Sogno opened as what was considered at the time a forward thinking/ cosmopolitan Italian dining room. Introducing Calgarians to the ‘new’ Italy: the young generation of Italian food & beverage professionals, combining that with the passion she has for being raised in Calgary: what she calls “one of the best cities in the world” has given local Calgarians the chance to enjoy a world class restaurant right here in Calgary. Her ambition and desire for excellence in the food and beverage industry has brought many young chef’s, servers, and sommeliers through the doors of Il Sogno and has inspired them to make their own mark on the Calgary dining scene. Patricia’s goal has always been to have Il Sogno serve as a place of trust that allows for memorable moments to be shared amongst diners.

Well, Well, Well…its August…can you believe it? Where, tell me, where does the time go?  I know you probably don’t want to hear this, but that means that there are only four months until Christmas!!! Isn’t it crazy how time flies? 

This month, I am going to talk about inspiration, celebration and “the table”.  In my opinion; one of the two, if not both should occur at “the table”, every single day.  Afterall, it is the reason why I blog about this fabulous city and the great places it has to visit, dine and enjoy a glass.  It is also, by the way, is the reason why I opened a restaurant.

Ironically or not, Il Sogno (the restaurant in Bridgeland) celebrates its anniversary in August and this year it will be 10 years old!!! For those of you who are thinking to yourselves…really? 10Years? I thought it would have only been 5? Or Wow! Because, in the restaurant business, those years are like “dog years” and yes that means that I am 70 years old!!! Well maybe not, but some days I definitely feel like it. Yes, the answer is 10 Years and as I gear up to “celebrate” this anniversary, I naturally find myself in a reflective and very nostalgic frame of mind, which in turn got me to thinking about “the table” and its significance or lack of in this day. 

I grew up in a half European, half rural Albertan household…yes I am very lucky. “The table” was one of the most important places in our home growing up and still is today. It was the place that the family gathered whether we wanted to or not to start our day and end it.  I refer to it now as “the canvas” to which you have the ability to create moments that will last forever with whomever you share it.  Hopeless romantic perhaps, but don’t kid yourself the moments are not always happy, but they still occur and everyone who sits around “the table” should know that it matters that you are there. 

Here are my questions; is “the table” any less important today? Doesn’t the idea of sharing a glass, a meal and a great conversation provide some grounding and/or substance to our day? Does the time it takes to prepare a great meal, open a good bottle or entertain our good friends and family in our homes or at a great restaurant equate the lasting memories that may result from it? Are we all so busy and perhaps on autopilot, that the table has become secondary and perhaps an inconvenience? As much of an inconvenience perhaps, as the importance of the food that we put on it and the time we spend around it? I would love to hear what you think? Don’t get me wrong, for some the thought of sharing a glass with some members of our family is painful, I get it.  Or having to sit across from our bosses,  parents or significant others to ”share” what we are really thinking, invasive and terrifying, but really what other basic need do we all share that can bring us together this easily? I mean not everybody likes golf! And maybe, just maybe, we need to communicate more? What do you think?

When I was growing up the meal WAS the occasion; with madatory breakfast which was always better on the weekends, often lunch and ALWAYS dinner.  Why can’t the meal itself be an occasion? The act of sitting down together to share and validate the day no matter how insignificant you may think it was. I am lucky enough to have had and still have amazing chefs in my life, where I am pretty sure a conversation about a tomato can last for hours, not joking. They are constantly thinking about the food that inspires them and can most likely remember the moment they sat at “the table” and had the most amazing meal to which that very tomato made an appearance. The Italian ladies that have worked withme for years at the restaurant, talk about the dinners they made the night before as if it was both news worthy and epic EVERYDAY, yes everyday, like a summer Blockbuster!   I am also lucky enough to have grown up in a house where at breakfast; my mother would ask everyone what we would like for dinner, because it was that important to how she planned her day and in turn how we ended ours.

Whether you stay in and or dine out, the meal is still very much a key factor in the occasion, don’t underestimate the value to which you choose. It can be a children’s birthday party at Chuck E. Cheese, Bullwinkles or Boston Pizza. Or perhaps a quick bite at Earls, Joeys or the Cactus club before a movie? Something a little more business appropriate or romantic in which case; Il Sogno, Catch, Rouge,Teatro, River Café, or Le Chaumiere might fit the bill. What about catching up with an old friend over a great glass of wine and some share plates from Una, Kensington wine bar and A.K.A? Celebrate that mom nor dad have to cook tonight and all of you randomly choose a place you have never been but have always wanted to try like the brand new Notable by Michael Noble in Bowness…because there is inspiration and sharing in trying new things too!

In my ten years at Il Sogno, I have witnessed; Entertaining friends from out of town, birthdays, anniversaries, graduations, sending kids off to college and welcoming them home, bon voyage dinners for friends who have been transferred, marriage proposals, break ups, retirements, weddings, Christmas parties, memorials, business interviews, deals being made, deals being broken and the closing dinners that result.   I have seen tears, anger, laughter, love and compromise all across “the table”. Lucky me!

There is  a reason why they call it “soul food” and so many reasons why we need it…so do yourself a favor and create a moment across “the table” you might be surprised what happens when you are paying attention to who is sitting there, what you are eating and the endless possibilities that are placed before you.

Buon Apetito!

Patricia Koyich – Owner of Il Sogno: http://www.ilsogno.org/