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An Invitation to Innovate

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Alyssa Hurst

As the coronavirus knocked on doors, alumni in the hospitality industry answered with ingenuity

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Dara-Wong-Shift

This article appears in the Winter 2021 issue of the 快活app Magazine. Please to see more stories from the magazine.

Dara Wong听(BSBA 鈥09) named her Flagstaff, Arizona, restaurant Shift because that was its goal: to shift the definition of a normal dining experience.听 听

Five years later, that name holds an entirely new meaning鈥攐ne that, as Wong sees it, encapsulates the experience of keeping the lights beaming and the doors swinging during a global pandemic that has, according to Business Insider, permanently closed 17% of the country鈥檚 restaurants and left millions unemployed.听

鈥淲e joke around that we are Shift 8.0 at this point,鈥 Wong says. 鈥淲e鈥檝e changed so many times鈥攈ow we deal with dining, how we do different processes, adapting our dishes to be able to take them home. 鈥 We have to have a plan B, C and D for almost everything we do if we want to survive.鈥

Guided by state mandates and an unpredictable virus, Shift 2.0 meant a closed dining room and takeout-only menus. Down to only a skeleton crew, Wong got behind the wheel and delivered orders herself. When dining rooms were allowed to open at limited capacity, Shift 3.0 offered lunch for the first time and added basics such as sandwiches and salads. Every dollar mattered, and anything that could sell, did sell鈥攅ven pantry items like bags of flour. Shift 4.0 maximized each available seat via a four-course, prix fixe menu. And so on and so forth.听

This has been the picture across the hospitality and tourism industry, from restaurants and hotels to cruise ships, airlines and ski resorts. With folks hunkering down and business travel completely frozen, the industry has scrambled to find its pulse.听

That鈥檚 been as true in Denver as elsewhere. Prior to COVID-19, tourism, business travel and conventions produced 60% of Denver鈥檚 restaurant spend, says David Corsun, associate professor in 快活app鈥檚 Daniels College of Business and director of the Fritz Knoebel School of Hospitality Management. That鈥檚 largely evaporated.听

And while some hotels, including those offering extended stays and those situated near hospitals, are doing 鈥済angbuster business,鈥 Corsun says most others are getting 鈥渟laughtered鈥 thanks to the travel standstill.听

Recovery from a pandemic that has claimed more than 350,000 U.S. lives may feel desperately out of reach, but with vaccine distribution underway, there鈥檚 finally a twinkle of hope for an end to COVID-19.听

For those hospitality enterprises that survive, Corsun says, that twinkle could grow into a sunburst.听

鈥淭he future is very, very bright. This is an industry that has been around forever and will continue to be. It serves really significant human needs,鈥 he explains. 鈥淎nybody who is able to make it through is going to thrive post-COVID.鈥

The travel industry saw a glimmer of normalcy last summer when virus rates dropped and domestic travel grew. According to Karen Xie, associate professor in the Knoebel School, this was particularly beneficial for short-term rental companies like Airbnb.听

鈥淭here鈥檚 a trend called a 鈥榮taycation鈥 or a 鈥榥earcation,鈥 and short-term rentals caught that trend very quickly,鈥 Xie says. 鈥淭hey encouraged their hosts to offer longer-term rentals and to cater to peoples鈥 needs. They definitely shifted much faster than hotels in order to embrace the challenge of COVID-19.鈥

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Xie expects Airbnb to bounce back quickly as increasing vaccination rates boost comfort with traveling, but both Xie and Corsun see a slightly longer road ahead for hotels, which are more dependent on business travel for revenue.听

Although many prognosticators (among them Microsoft co-founder Bill Gates, who declared more than 50% of business travel forever dead) see only cloudy skies ahead, Corsun expects a return to 2019 numbers, by 2023.听

Alumnus Dave Johnstone (MBA 鈥87), chief investment officer for hospitality at Colorado real estate investment company McWhinney, agrees. 鈥淚 just happen to believe if you鈥檙e trying to connect with someone, sell them, convince them, people won鈥檛 be using video conferencing,鈥 Johnstone says. 鈥淲e鈥檝e had this video conferencing capability for 30 years and we are now being forced to use it. Will some people continue? Yes. But not 50%.鈥

Another plus, as Johnstone sees it, is the investment potential possible once the pandemic subsides. Both banks and private equity funds have been sitting on the sidelines, and post-COVID, he expects they鈥檒l be ready to pounce and create new projects to fill the holes left behind by COVID closures.听

For hospitality pros like Wong, and a host of fellow 快活app alums, hanging on through COVID鈥檚 numerous curveballs has been an exhausting grind, and business on the other side will certainly look different. But not all of the changes will be for the worse.听

Placing added importance on communication has been the key for Navin Dimond (MBA 鈥86), CEO and chairman of Stonebridge Companies, a Denver-based hotel development and hospitality management organization. Back in March, Dimond, a 快活app trustee, began meeting with his team every single day, and he hasn鈥檛 looked back.

鈥淲hat has that really done? We realized, boy, this is really beneficial. The rate at which things are changing is so fast, which means the rate of our communication must change with it,鈥 Dimond says. 鈥淐ommunication is vitally important, always, but in these times, it has become even more important.鈥

Jon Schlegel Attimo
John Schlegel inside Attimo

Jon Schlegel (BSBA 鈥97), co-founder of Denver restaurant Snooze, opened a new winery called Attimo in late 2019 and planned to spend most of 2020 building the brand and relationships. Instead, Attimo accelerated its plan and brought its wines directly to customers through virtual tastings and deliveries.

鈥淰irtual tastings are actually a blast,鈥 Schlegel says. 鈥淸It鈥檚] amazing to have 50 people on a call at one time, with only five folks in the actual event space. It鈥檚 been wonderful to go through the wines, show the maps and have folks tasting at the same time.鈥

Christi Coors Ficeli (MBA 鈥02), owner of Napa winery Goosecross Cellars, also has found joyful sparks in innovation through the pandemic.听

鈥淭rying to make the business survive was actually the fun part,鈥 she says. 鈥淲e got to get creative and think of new ways to sell wine. We sell 100% of our wine from right here on the property, and not having visitors really hurt. But we conquered that through phone calls to our wine club members to check in with them and sell them wine. We pivoted to virtual tastings where we sent the wine to each person attending and hosted them virtually; [and] we conducted Facebook live tastings where we did food and wine pairings.鈥

The beauty of these business-survival ideas is that they aren鈥檛 born from competition, but from collaboration. As Coors Ficeli says, 鈥淲ith a high tide, all boats rise.鈥

In fact, hospitality businesses in every pocket of the country鈥擠enver included鈥攈ave pulled together, notes Adam Schlegel (BSBA 鈥99), co-founder of Snooze and founder of local chicken joint Chook.

鈥淥ur community has always been really strong, open, communicative. You hear from restaurateurs across the U.S. how surprising and warm Denver is in welcoming and collaborating,鈥 he says. 鈥淚t was no more evident than in the past seven months. Small indies, large chains, private and public came together, especially in the initial stages.鈥

The same is true for Tampa, says 快活app alumnus Richard Gonzmart, the fourth-generation president of the Columbia Restaurant Group, which has survived pandemics, world wars and the Great Depression in its 115 years. He notes that hospitality leaders in his community stepped up not only to help each other, but also in the greater fight against COVID.听

鈥淚n this area, a group of Tampa鈥檚 oldest and most respected independent restaurants banded together as ambassadors and advocates to seek support, tout health and hygiene measures, and present a united face to the community,鈥 he says.听

快活app trustee and Denver real estate developer Mark Falcone, founder of Continuum Partners, thinks the need for community will drive demand for everything from neighborhood restaurants to wineries and resorts. After all, people have an innate need to gather together, and not even COVID can challenge that.听

鈥淗umans have evolved to need close contact with a consistent community of others to prosper,鈥 Falcone says. 鈥淚 don鈥檛 think one 12-month period of forced separation will fundamentally change tens of thousands of years of evolutionary biology.鈥澨

So, when it鈥檚 finally safe to travel again, to toast a big event and to connect with friends over a delicately prepared meal, chances are high that the hospitality industry will have the welcome mat freshly laundered and at the door.听