From the July/Aug 2010 issue of Wisconsin Restaurateur Magazine
In the past 32 years in the hospitality industry, I have come to the conclusion that we are some of the most giving business people and some of the most solicited businesses. That being said, in these tough times, how do we sift through requests for donations, decipher who to say yes to and how do we handle the ones we have to turn away without offending? Everyone believes in the importance of their causes and it is very hard to say no, especially to a current customer.
Throughout the years we have come up with some ways that may be helpful and work for you as well. First of all, we realize that we need to set our marketing and promotion budget and try to stick to it. This in itself can and should be pointed out. We have a policy to not give out cash. So that’s an easy request to address. The next one we usually shy away from is a letter that clearly tells us—or suggests—what we should donate. We believe that determination should be up to us. Another fundraising solicitation letter that draws my attention is the one that asks for donations for their function which is actually being held at one of our competitors’ businesses. (The nerve of them to have it there when we would have done a much better job for them!) In those cases we send them our brochure along with a gift certificate letting them know we would love the opportunity to host their next event and include a “first time” introductory offer.
In addition to dining gift certificates, we offer our time, services such as a chef to help them with an outside function, a gift certificate for an outside picnic or volleyball party, free rooms for fundraising causes and auction items. We also offer a “buy one get one” deal on our gift certificates for some requests. The attitude we try to remember is that all these solicitations are opportunities to impress potential customers. The goal is to get more traffic in the door and give them reasons to come back.
So many restaurant owners and operators are involved in their communities. In this challenging economy it seems like people turn to restaurants looking for help even more than ever. The National Restaurant Assocation’s Restaurant Neighbor Award was created over a decade ago to recognize the work that restaurateurs are doing in their communities. Wisconsin’s state finalists for this national award are announced in this magazine’s WRBN section on page 26.
I’m sharing a copy of the letter we’ve been enclosing with donated gift certificates.
To Whom it May Concern:
Saxe’s would very much like to support all worthy causes such as yours, but unfortunately it is not possible to budget for all requests we receive. Economic times have hit our industry very hard as they have many other industries. Your current request has been granted, but future requests will be considered for a “buy one, get one complimentary” dining certificate through our website at www.saxesdining.com. We ask and would appreciate your consideration and support when dining out or planning a special event. This will in turn help us to continue to support good causes such
as yours.
We applaud your personal efforts in improving the community and outreach to people in need.
May God Bless You,
Thomas E. & Lynn Saxe
This is a great association and being able to share the struggles and, at times, even vent about the situations we all go through makes it all the better. Thank you for that opportunity. WR |
|
From the July/Aug 2010 issue of Wisconsin Restaurateur Magazine
Well here we are in the crazy, lazy, hazy days of summer when our state should be inundated with tourists eager to enjoy our natural beauty, fantastic attractions, relaxing lodging, camping, resorts and wonderful restaurants—and, of course, our legendary hospitality. We are ready and, thank God, many have come.
However, there are realities. We are still in a recession. Discretionary spending is still limited. Competition is intense to attract tourists and “bag” a greater share of a smaller pot. Then there are the “talking heads” that trample each other getting to microphones and TV cameras to share their economic expertise, telling people they ought to vacation at home this summer and save money.
In the face of this, what does the State of Wisconsin do but decrease the 2010 tourism promotion budget by nearly 17% (due to a 13.5% cut in the overall Department of Tourism budget). Their justification is that every agency must be cut to help solve the state’s fiscal crisis. That would be true if all spending produced the same results—but it doesn’t. A cut in a promotional budget results in a decline in market share, fewer jobs and reduced state tax revenue. I’ve been to many business seminars in my day and most advise businesses to cut many things when times are tough, but not marketing. To cut marketing is to cut your lifeline to the market and open the road to your competition.
This is exactly what has happened to Wisconsin. In 2009, the promotional investment for Wisconsin Department of Tourism remained flat. Also during 2009, traveler expenditures decreased by an estimated $1 billion.
Some might say that Wisconsin’s decline was caused by the recession, not by marketing cuts. However, if that were true, how does one explain that Wisconsin communities that increased promotional investment during the same period were impacted less negatively or actually showed some growth?
It may be illustrative to look at our neighbor to the east: Michigan. Or dare I say, “Pure Michigan.” Has anybody not seen and heard that catchy slogan? Michigan’s economy makes Wisconsin look like the land of plenty. Yet what did Michigan do? They increased their promotional budget in 2009 to $30 million. In the very poor economic climate of 2009, this expenditure generated 680,000 new visitors to Michigan from outside the Great Lakes region and $250 million in spending. New visitors paid $17.5 million in state taxes while in Michigan. By the way, this is not counting the increased revenue generated by travelers from inside the region or in-state who also saw the “Pure Michigan” campaign.
Now, as the “stimulus” money has run out, Michigan’s 2010 tourism promotion budget has been reduced to $15 million, which will ride on the coattails of the previous year’s $30 million investment. That’s still a great deal more than Wisconsin’s 2010 tourism promotion budget of only a little more than $9 million. This has to stop!
The Governor and the Legislature are missing an opportunity to help struggling small businesses increase employment and generate substantial tax revenues with which to help grow our way out of the deficit.
What to do: Explain this error to all three candidates for governor and every incumbent legislator or candidate. Ask for $15 million in “Pure” promotion dollars in each year of the 2-year state budget period that begins July 1, 2011. We can compete with any state in our region if we have parity. Email, call, write and talk to them personally. This is the time. They are up for election. They are likely to listen. WR
Statistics provided by the Wisconsin Department of Tourism |
