In the food and beverage industry, change is constant. Adapting to trends, the economy and regulations is necessary if success is to be the bottom line.
Next month the New Grand Hotel on Vernon Street will officially unveil a subtle change the ownership group hopes will have a big impact.
“The minute you quit investing in your business, chances are that is going to be the start of your decline and demise,” says Danny Rickaby, operating partner at the New Grand.
The investment Rickaby and his partners have made in the last couple months stems from adapting Louie’s Steakhouse and Lounge to today’s trend and challenging economy.
With economic tough times driving customers’ spending habits, a few months back the team at the New Grand changed the menu of one of Nelson’s prime formal fine dining options. By adding some value items to the menu, the restaurant is now more of an upscale casual experience.
“It’s improved the value at Louie’s,” explains New Grand food and beverage manager Rob Little. “We haven’t sacrificed the quality of the product, but we have added more dishes that are more price sensitive. It’s been well received.”
Due to the increase in traffic, the former lounge area at the front of the restaurant was adapted to seat those looking to eat.
The dilemma was what to do with the popular lounge traffic that enjoyed the ambience and comfort of an area being swallowed up by the increasing popularity of the new menu.
The other major factor in today’s bar industry is the provincial government’s tougher stance on drinking and driving. The new .05 regulations have resulted in a drop of between 12 and 15 per cent for alcohol sales at the New Grand.
So with demand in the Uptown Sportsbar going down, Rickaby decided to turn a portion of that establishment into the lounge.
“The industry has taken a huge wallop the last five years and the government just keeps whacking at it,” says Rickaby.
“You better adjust in some form or fashion because if you don’t what happens to you? I know what happens… you won’t exist. There are pubs closing down all over the province and we are just reacting so we don’t become one.”
The lounge area that now houses the big comfy chairs, fireplace and in-wall waterfall, was not long ago the designated smoking area.
Having to adapt to the province’s changes to smoking in restaurants and bars, the New Grand invested cash into turning the area into a ventilated room. When indoor smoking was done away a few years later, that investment proved to have only short term results.
The investment this time around has already proven positive for the New Grand. It’s popular with locals and hotel guests.
“We have a lot of longstanding employees that have lived in this community for a long time,” says Little. “We care about those people and the only way to keep these people employed is to come up with creative new ways to increase business.”
Rickaby says the financial investment was not huge, but during these trying times it was something the owners felt they could manage.
“It’s a big impact change,” Rickaby says.
Though construction is complete and the new lounge is open for business, the New Grand is planning a grand opening on the September 16 and 17 weekend.