PARSIPPANY, NJ— Steve Belmonte, president/CEO of Ramada Franchise Systems, recently issued a 12-page statement to franchisees outlining several brand initiatives that will be put on hold during the upcoming months in response to the travel slowdown. “Since the horrendous attacks on 9/11, many franchisees are really suffering from decreased volume,” said Belmonte. “We’ve taken a hard look at the company and have come up with ways to create assistance and relief for the franchisees.” Food and beverage procedures top the list of postponed brand standards, particularly for the brand’s full-service Ramada Inn and Ramada Plaza hotels. For example, through Dec. 31, 2001, limited service properties are permitted to offer a scaled down version of the ‘executive lite breakfast,’ featuring standard continental breakfast items like cereal and muffins, as opposed to waffles and fresh fruit salad. Full service hotels are also permitted to serve the ‘executive lite breakfast’ as opposed to the full breakfast menu, for a limited time, as long as there is no charge to guests. “Some properties have had a substantial slowdown in business and need to temporarily relax their F&B operations. It’s saves the franchisees a significant dollar amount,” he said. In addition, properties experiencing low lunch volumes may choose to offer a self-service deli concept, and weekend dinner service is optional until Dec. 31 2001. Ramada has also postponed the deadlines of some of its new quality assurance standards including: the installation of eight wooden hangers in closets as opposed to metal; the addition of a full-size ironing board and steam iron; and installation of non-slip, ceramic floor tiles and marble thresholds at the doors. All of the above QA initiatives are on hold until June 2002, giving the franchisees an additional year to prepare for the added costs. “From an operators standpoint, these are the things that concern them most,” said Belmonte. “We just don’t feel it’s appropriate to mandate additional costs on our franchisees at a time like this.” In addition, Ramada is postponing its annual convention until Oct. 2003. The event was originally scheduled for November 2002. “All we did was push it back a year,” he said. “If 2002 is a tough year financially, it’s not reasonable to make franchisees pay for convention fees, airline tickets, and hotel rooms.” Instead, Ramada will be hosting a teleconference that will be broadcasted in 30 markets, free of charge, Belmonte said.
Steve Belmonte