Monday, September 28, 2015

When It Rains, It Pours

As you know, although I no longer own the Inn, I am still in the hospitality business as the general manager of a condotel property. A condotel is a condominium complex built to be operated as a hotel. The condos are owned by individuals that are then members of an association and the association manages the hotel operation. There is a general manager that answers to a board of directors. The owners have use of their units more than a timeshare would allow but can not reside on the property. Our particular property was permitted as a transient occupancy hotel. The logistics of such a property can get somewhat complicated both from a bookkeeping aspect as well as who is responsible for what aspect. Most of the time, the property runs smooth but the past three weeks...well, lets just say when it rains, it pours. Or rather the carnival has been in town.

We have had an intermittent power failure problem in one condo. Our maintenance person, who is very knowledgeable yet not a licensed electrician, a licensed electrical contractor and even the power company have tried to resolve the issue for three weeks now. We can't seem to make it fail but as soon as we put a guest in the unit, there is a partial power failure. We have replaced several components of the unit's electrical system from the main breaker to a bad GFI and finally concluded that the initial replacement breaker was not making good contact with the questionable busbar (what the breaker plugs in to). We also had to replace a water heater in the unit during this period. Fortunately, the guests in residence during the water heater failure were regulars who were very patient.

99.5 percent of the time, we have amazing guests who are thrilled with the condo, the location, our cleanliness and services and our staff but that .5 percent that we had in the past 3 weeks could test the patience of the Pope. Guest A wanted us to come and refresh her unit within a 30 minute window of when she turned her "Do Not Disturb" to "Please Make Up This Room". This isn't necessarily efficient from a logistical standpoint but we were also expected to know the exact moment that she turned it. Guest B complained that there were a couple of items not perfect (housekeeping wise) on the day of their arrival and yet didn't bring it to anybody's attention until the last day of their stay. Guest C, D & E complained that the noise of the compressor that maintains the pressure in the fire suppression system bothered them. The compressor has been running intermittently for 3 years (and longer) with limited noise complaints and now we have three complaints in one week. Guest F complained that a bed was too squeaky. Although it is one of the newest beds and we had never had any other complaints, it was squeaky and was one more thing that needed to be addressed.

We have addressed a multitude of cosmetic and functional problems in the past three years but leaks, both water from plumbing or drains and air from the fire suppression system, are the most difficult to diagnose. On a dry pipe fire suppression system like ours, air pressure holds back the water unless a sprinkler head fails allowing water to flow to the "hot" spot. As is the nature of mechanical systems with pipes and valves, there is the probability of minute loss of pressure hence the need for a compressor on the system to rebuild the pressure periodically. My understanding is that the compressor in a well sealed system should only run about 15-20 minutes once a week. This one runs more than that in spite of the fact that we have had a number of components replaced during the last 3 years. Some where, out there is still a significant loss of air...or maybe several seemingly insignificant ones. The process of elimination continues.

A water leak is even worse to diagnose than electrical issues or air loss. Water follows the path of least resistance so tracing the drip back to the source is not always easy and water always leaves a mess. The icing on the cake during this period was water pouring from a previously repaired spot in the carport. Turns out that a drain from the HVAC systems (not easily visible to anyone including our maintenance person, the HVAC company and not on the blueprints that we have on hand) was stopped up. Looking at the amount of water flowing from the leak, you would think that someone was overflowing the tub but no, just the HVAC drain. Go figure. Several methods of unclogging later we now have a free flowing drain. So now we know. Moving on to preemptively unclog the others.

All of these hassles happening while we are still moderately busy, I am fighting a cold personally and my wallet with both business and personal debit cards was stolen while purchasing bedding for a unit owner. We are all now ready for a little less rain...or at least for the carnival to leave town.

Friday, August 28, 2015

More Nitty, Gritty Things to Know Before You Jump "Inn"



Upon our sister-in-law's unexpected death, Mr. V made the decision to take us into the innkeeping business giving me the bed and breakfast that I had always wanted and his brother the restaurant that he wanted. The overall goal was ultimately to give his chef brother a new focus.  So Mr. V took off to the mountains of Virginia in search of finding an existing inn property or the right property to convert. Money was thought to be a relative non-issue because our home in Florida was valued at $400K more than we owed on it. After a week of exploring mountain communities in NC and VA and nearly giving up, a chance encounter led him to the Davis Bourne Inn in Independence, VA. An appointment was made and after consulting with me by phone, we agreed on a price to offer and that we would talk before the "check" was written. The next phone call that I received was the "I wrote that check" one. At that point, we were committed but we soon realized that more exploration should have been done in regards to legalities and local issues before the writing of the check.

Thursday, August 13, 2015

Employees, Friends or "Business Partners"

Staffing, next to working capital, is one of the biggest challenges in every business. Let's face it, work ethics are not what they used to be. Nor are benefits and incentives from companies. In the service industry, there seems to be two groups of potential employees...those highly educated but haven't yet gotten a job in their field with the mindset that they deserve more money than the job can pay and those who are just looking for a paycheck. If you can find someone in the middle, someone interested in doing a good job, especially in the service industry, hang on to them for all it is worth.

I have been fortunate enough to have a few of those employees along the way. Employees that put in extra effort to solve a problem, to cover the hours needed or to create a little something extra...a guest favor or a special recipe. My little old washer woman (her name for herself) went above and beyond to provide clean, crisp linens for the restaurant and bed and breakfast. Not just linens that went through the washer and dryer but beautiful linens that sparkled. My head server was a gifted craftsperson creating all kinds of special things including tote bags that I use to this day. When my husband and his chef brother abandoned the project, one of my amazing girlfriends, AE, came on board and brought her incredible talents to the back of the house. Let me say, that there were a number of great friends who pitched in to make a difference when the brothers exited but AE actually sat through the adaptive planning phase even as they were making their exit and she stayed on through the first season on my own. Currently, I have staff members that I feel are my right and left arms. They go the extra mile in every regard and, for that, I am thankful.

Many in the hospitality industry believe that they can get by with paying a minimum wage and giving minimal hours. Personally, I have always found that is better to provide a good employee respectable pay and as close to full time hours as possible than to continuously be training new employees. Even if I can't provide full time hours in a single position, I try to offer the opportunity to pick up extra hours in another position. For instance, I have had servers work in the back of the house in pantry or prep and front desk clerks pick up hours in housekeeping or maintenance. Cross training is a good thing when you have a small staff as it allows your staff more hours and you, backup employees when someone calls out or needs off. You also eliminate a lot of the "not my job" mindset when people are cross trained. If you give them as many hours as you can, you help keep them dedicated to you and your business instead of having to work their schedule around their second job.

If your plan is a KISS one with a limited scope of the business and limited rooms, then one or two dedicated housekeepers will probably be easy to find. A good laundry person is much harder to find and a good laundry service, almost impossible but that is another post for another time. If your business concept is more complex but summer seasonal, teachers are better assets than college students most of the time. Many teachers are looking to supplement their income and they are mature, responsible professionals. You can find some great college kids for seasonal work but most are not going to be available until Memorial Day or later and they are going to want to leave mid-August, when you still have three more weeks of high season (if summer is your season). Local college students living and attending school in your area work well because they don't have to make a to and from school transition. For a property with a restaurant, consult with your local high school or community college for referrals from counselors of their top students. Students with good grades are more likely to be great employees. Just keep in mind that there are regulations regarding handling alcohol under the age of 18 and using kitchen equipment like slicers under the age of 17. Your local ABC authority and health department can give you those guidelines.

Be careful of family and friends of your own as well as of your employees. Working together can put a strain on what is otherwise a great relationship and, in the grand scheme, I value great relationships more than an employee need. Sometimes families can work together well...more than likely, not. If your existing relationship prior to the consideration of working together is not uber respectful and healthy, then working together is not likely to be a success. The teenager that needs something to do to stay off video games or stay out of trouble is not likely to do the quality job that you need done. I am not adamant about not hiring family and friends of employees but have come to the conclusion that they should not work closely hand in hand on a daily basis. While I do come to love and care for many of my employees, I try not to develop "hang out" type relationships with them so I keep the professional relationship necessary to run a great business.

At the end of the day, your business is your business to you and a job to your employees. But if you can find someone willing to meet you in the middle between just a paycheck and vested interest, bring them along on the journey and reward them as best you can.


Saturday, July 25, 2015

Are You Really Ready to Jump into the Deep End of the Pool or Should You KISS?

Many people, me included, don't, didn't realize the different levels of innkeeping available. From the simple 2-3 room B&B to a country inn with restaurant and wedding services, the level of commitment, and work, varies greatly. At DBI, although I loved the friends in the community that I met through the restaurant, it was my least favorite aspect of the venture. While weddings were a lot of work, I really enjoyed them and having a bride tell you that her wedding day was "perfect" is ultimately satisfying. The bed and breakfast was rewarding and I met so many interesting people that I would not have necessarily gotten to know with just the restaurant.

My dad and step-mom operated a three room B&B on Center Hill Lake in TN for a few years. They are very hospitable and very much enjoyed their guests but found that they were busier than they actually wanted to be. Good problem to have.  After having the experience of operating Davis-Bourne with all aspects of it, I don't think that I personally could go back to the "simplicity" of a 2-3 room B&B.

At some such time that the stars align, we would love to reopen Davis Bourne Inn but only if we have the funding to repurchase the property mortgage free and have the extra cash needed to make improvements. Then it would be a financially viable proposition and a destination asset for the community. We would operate the bed and breakfast and offer weddings and events. I don't see myself reopening Journey's End Restaurant, at least not as a full time restaurant dependent upon support from the community. Maybe as bi-monthly special dinners or music in the parlor events but...then again...

The problem with a "part-time" restaurant mindset is being able to hire good, dependable staff. Good people need good jobs, all the time. The community is too small to utilize a temp agency and besides, labor from a temp agency is just that, labor. People to pass plates, fill drinks, do tasks. If you are looking to be in the inn-timate hospitality business then you want real employees with real personalities that really care about the business. Those folks are hard to find and I have had a few of those in my time but that is a post for another day.

Weddings are reasonably profitable but require a lot of planning and a lot of physical work. I wish I had a dollar for every chair I had schlepped, every table I had moved... I could certainly purchase DBI back mortgage free. There are multiple levels of involvement at a wedding venue that you can have. You can simply rent space out such as a carriage house, a lawn or like banquet space and just set parameters for tents, setup times, caterers, etc and let a wedding planner or coordinator worry with making sure tables are properly set-up, caterers are on time and that every spoon is polished. Or you could own the chairs and tables, make arrangements for the perfect shade of plum table linens, prepare the food and direct all the setup. This was, for me, the most profitable aspect but also the most work. Brides and grooms who don't have to rent tables, chairs, etc will pay more for the venue.

As you recall from my first post, my original "idea" was for a B&B with a tea room. Great idea but not generally a profitable one. For the most part, tea rooms draw Red Hat Ladies and other luncheon groups and the profit margin on twenty $10 lunches is minimal at best. Volume is where the money is at for most restaurants. At DBI, I projected that an average of 35 covers (dinners) a meal would be a reasonable break even paying all expenses but we just couldn't get it there consistently enough, especially after the economy turned in 2008.

I would steer clear of white linen table cloth style service and lean more toward a less is more environment if I were to reopen Journey's End Restaurant. More fun, less fluff. I waited tables for a summer at a neat little spot on St. Simons Island. Great concept. Butcher paper on the tables with a cup of crayons for the kids and kids at heart. Fun music playing. Open atmosphere.
And no laundry to deal with.

Were money not an object, we would finish the 100+ year old carriage house into banquet space and add the first set of Treetop Cottages. The cottages would add B&B handicapped accessibility and double the guest room occupancy.

Money aside, time is the biggest constraint for the level of commitment. Even a small, B&B operation ties you down, especially on weekends. A larger operation with a well developed staff will allow you the best opportunity for an escape. Well developed being the key words.

When deciding on the type of operation and therefore, the level of commitment, make a list with your spouse, partner or family of the different considerations. Here are some questions to consider...
1. Am I willing to give up my weekends? Am I willing to forgo weekend events such as festivals, concerts and such? Will I operate seasonally or year around?
2. Who is going to be responsible for this adventure? If the family is going to be involved, on what level? Tread very likely when working with a spouse or other family. It takes a very special combination of personalities to get along daily in such an intimate setting. Defined, written of each persons responsibilities is a must.
3. Am I purchasing an established business with a web site and social media in place? If not, do I have the capital to make all financial obligations for 1-2 years? Although the grand opening of a restaurant can generate an immediate boost of revenue, it usually only lasts 60-90 days before the new wears off. A new B&B will take some time and dedicated marketing to fill the rooms regularly. Always join your local and state tourism bureaus and the premier B&B association in your state. Weddings take even longer to develop an audience. You can pick up a few local bookings for special events fairly quickly but large weddings will take time to develop.
4. If you will need employees, is there a local base to draw from? For restaurant and special events, teachers make great part time employees. Check with the area high school guidance counselor for referrals of responsible, industrious students for many positions. Keep in mind that ABC and food safety laws may limit the positions that those under 18 can fill.
5. Is there a progressive tourism bureau and a well staffed visitors center?

6. Money...are you willing to operate on a shoestring, doing all the work yourself or do you have some capital over and above initial opening needs such as furnishings, permits and licensing, insurance, etc to carry you through?

This is just a minimal list of questions that you should ask yourself. Regardless of your level of commitment, should you truly have the hospitality gene, I believe you will find a B&B a rewarding experience.


Sunday, June 28, 2015

Why Do You Want to Be an Innkeeper?

Even looking back, it is hard to pinpoint exactly why I originally wanted to be an innkeeper. I love people. Ok, most people. I love being creative and I love decorating. I love a challenge. But back then, when I was soaking in the tub with pencil and paper in hand, I can't imagine that I could put my finger on any of those. I just knew that I wanted to have a bed and breakfast.

Now you might be under the impression from my original post that I would never go back to operating a B&B. Not so. I currently am the general manager of a 21 unit condotel property on a barrier island in SE North Carolina that the staff and I strive to operate with the hospitality of a B&B.

Sunday, June 21, 2015

So You Want to be an Innkeeper

For many years, I dreamed of operating a bed and breakfast. A quaint little home in a beautiful little downtown manageable by myself alone with 3-4 guest rooms and a little tea room for luncheons and special events. Dreaming and scheming, I would escape the kids by locking myself in the bathroom with a hot bath and pencil and paper. I would draw, design and take notes. Lace curtains here. Vintage china there. Fancy cookies and tea upon arrival. I clipped recipes. Saved magazine articles of bedroom designs that made me feel good, that I thought others would enjoy. Hospitality all around. I believed that this was all doable and that it would all be profitable. Be very careful what you wish for.