Hospitality Financial Leadership – Live-in Arrangements – Part 1

The hotel business is perhaps the second oldest business in the world. I read that somewhere long ago, and it stuck. The kind of live-in arrangements described in this article are not about that but, rather, what our industry provided in the past to its senior leaders and managers. Some of what you’re about to read I experienced first hand and some of it was passed on down to me through stories and folklore. After all we only have our yarns and parables to share and once they’re gone, they’re no longer part of our culture. Here is my shot at preserving some of that. I also want to mention that I am in no way complaining or pointing out supposed abuse of power or privilege, it’s just the opposite – I’m celebrating our past.

The Food & Beverage Storeman

Yes, that’s right, that was me in the summer of 1982. Returning to my first love of a summer resort after two winters and the summer before pounding the liquor, beer, and wine in the hotel bar scene. Someone I respected told me to get serious about the hotel business and stop just playing around. I was attending hotel school at the same property during the off season. He suggested I take on an administrative function to learn more about how things that matter in the hotel, really work.

I initially thought this was absurd – pure madness. Me give up the constant night life and seemingly big man on campus position that came with the much-coveted bartender badge, to take on a number-crunching mind-bending parliamentary type of role? My extracurricular life was something straight out of the movie Dirty Dancing. Was my mentor crazy? What 20-year-old who had a seemingly permanent grin and tan to boot would consider such a lame move. I remember thinking if I entertained such an idea my life would be so boring and probably, I would die.

But as fate would have it, something happened that winter and spring that changed my way of looking at it. What happened was a girlfriend. Quite by accident cupid’s arrow caught me and I was smitten with the hotel General Manager’s daughter. Not only did I fall flat on my face for her, I also received a parallel diploma in advanced hotel management from both her father and mother. Both of them expelled the virtues of growing up and that meant looking for advancement in progressive roles rather than floating along in the bar scene.

So what do you think I did? Of course, I followed the advice and tutelage of her mother. She was a wonderful person alive with color and a zest for life. She had grown up in the cruise ship world of the 60’s and transitioned into hotels. Her outlook was very positive and she encouraged me to take the step, to learn and develop. So was her father but mom had the gift of persuasion.

A few short weeks later we opened the hotel for yet another summer and I was the newly minted “food & beverage storeman.” Many of my buddies gave me the gears. How could I give up the “B” team for such a lame job? I have never been one to dwell on what other people think of me, especially guys my own age, so it largely fell on deaf ears.

I did learn an enormous amount that summer: products, processes, controls, scams, back door deals and the like. I especially liked the fact that people were counting on me to get what they needed in the kitchens and bars so they could deliver to our guests. But one thing happened that changed everything for me.

Shortly after we opened the GM’s wife (my old girlfriend’s mother at this point) who lived in the hotel’s house across the street came to see me. She asked how it was going and we had a great chat. Then she asked the question I was not ready for. She said, “Where is our requisition book?” To which I replied, “What requisition book?” “Oh,” she said – the one that goes with the house.” And she smiled like someone who knows something that you don’t. With that I said, “Let me check into this and I’ll call you this afternoon.” This was fine with her and off she went.

My next move was up one floor to the assistant controller’s office. Mike, God rest his sole was at his desk. I interrupted whatever he was doing and asked if he had a moment. He looked up and gave me the usual stupid look and said, “What is it now?”

I replied about the GM’s wife and her request, to which he sat straight up and yelled, “Werner.” That was the controller’s name; he was just in the office next door. He joined us and for the next 15 minutes the intrigue was thick. I learned that historically the GM who was live-in, and his family were entitled to free rent and food and beverage supplies from the hotel or grocery store. However, the company had moved away from the free housing to a taxable benefit and the F&B was grandfathered out with wage adjustments, to which the controller confessed that maybe the GM who was fairly new to the property )not the job), could possibly be out of the loop.

My walking orders were to do nothing until certain individuals in Toronto were consulted. I countered that I had promised to get back to her and it was made very clear to me to stand down and do no such thing until this was sorted out. The controller told me he would speak to the GM and straighten this out.

Well, later that afternoon she called and asked where here requisition book was, to which I replied, “The controller will speak with your husband, and I don’t know anything else.” She thanked me but I knew by the tome of her voice that she was not happy.

The following day Mike came to see me. He explained that there was much ambiguity around the GM’s contract and we should just give her what she wanted and it probably won’t be much other than “special things” that the hotel gets that you can’t find in the local grocery store. Ok – thanks!

That afternoon she appeared again with her own requisition book. Two full pages of food, everything from spinach to saffron, meats, fish, produce, groceries, and she also had a half page of assorted alcohol beverages. About 2 minutes after she left Mike magically appeared and asked for the book. After looking at it for a second, he said, “Holy crap.” He took the book and disappeared; 10 minutes later both Mike and Werner were in my office, “This was not the deal. This is against company policy.” Wait until I call Danny.”

To say the least, the battle was on. The next day things heated up and I had a visit first thing in the morning from the GM. I don’t think he had ever been in the storeroom before. He was very diplomatic and said, “There has been a mix-up and we need to sort it out. In the meantime, give my wife all the items on the requisition.” “OK, no problem,” I replied.

This was the modus operandi each week for the rest of the summer. At the end of each month, I was asked to cost the requisitions and I got to tell you they were expensive.

The final curtain for the resort was late September which coincided with a 7-page requisition for food and a 3-page beverage request. “It’s a long winter,” she told me as I lugged the items into their basement that was aptly equipped with a large walk-in fridge and freezer, dry storage and wine/liquor closet.

I asked Mike, “Who pays for all of this?” To which he replied, “It’s none of your business.” 😊 After all it’s the hotel business.

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