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Big dreams, smallbudget
Hotel leans on Costco for success
By Tim Talevich
ASK MICHEAL KIDD to show you the Costco products he uses in the quaint Avila La Fonda Hotel in Avila Beach, California, and you'd better be prepared for a long tour.
In the hotel's lobby, you'll see palm trees in ornamental pots, dried gourds as decorations and fresh flowers. In each of the Spanish-mission-inspired hotel's 30 rooms, you'll find a big Vizio HDTV, iPod clock radio, Cuisinart coffee grinder and maker, a microwave, wine-and water glasses, silverware and utensils, pots and pans, all from Costco. And don't forget the mattresses, sheets, towels and toiletries.
Not to belabor the point, but most of the provisions in the hotel, located on California's scenic central coast, come from the Costco in nearby San Luis Obispo. For Kidd, it makes perfect business sense as he works to find a niche to make the Avila La Fonda (fonda means "inn") successful in a very competitive industry—in a very trying time.
Kidd is a gregarious, Santa-esque figure who is easy to find in tiny Avila Beach as he strolls from the hotel to one of the other local businesses he has an ownership in—Joe Momma's Coffee Bar, a spa called Nekkidd and the Inn at Avila Beach. Success for La Fonda, he explained recently over coffee and a signature cinnamon roll at Joe Momma's, lies in offering guests a five-star hotel experience, but not at a five-star price. The only way he can achieve that is by keeping his costs low.
"That's where Costco comes in," says Kidd. "Costco makes it possible for me to make a high-quality experience affordable."
Touches of that philosophy can be seen
throughout. Each room is stocked with a courtesy basket with free bottled water, soda and candy. In the evenings, guests are invited to a free wine tasting featuring samples from California's popular Central Coast wineries and appetizers (all from Costco, of course). A library offers free use of books, DVDs and music (ditto). And the hotel has a special "Chocolate Pantry," stocked with Costco chocolates, candies and drinks, for guests with a late-night sweet tooth. It operates on the honor system at cost, which means a soda for 35 cents and no fighting a vending machine.
"I know this all sounds bizarrely cultish, but we do it all for a reason," laughs Kidd. "People are surprised by all these little extras. It makes a difference. I feel we're offering a value to bring in repeat customers."
Has Costco
helped you in your
business? Tell us how.
E-mail connection@
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TIM TALEVICH
Company Name: Avila La Fonda Hotel
Contact: Micheal Kidd, managing partner
Address: 101 San Miguel St.
Avila Beach, CA 93424
Web site: www.avilalafonda.com
Note: Costco members receive a 30 percent discount on the published room rate at the hotel. Certain restrictions apply; see the hotel's Web site for details.
Kidd has worked in hotel managementand marketing for 30 years. He and his business partners found a vacant lot in Avila Beachandfeltthere wasroomforasmall boutique hotel in the area. Avila La Fonda opened in better times, in August 2007.
Like any savvy businessperson, Kidd studies the competition to find ways to differentiate Avila La Fonda from the pack.
"It involves hundreds of things," Kidd explains. "Every good hotel has a TV, so we installed big HDTVs. Every good hotel has fine sheets, so we bought 500-thread-count sheets. Every good hotel has a coffee maker, so we have coffee grinders and makers. We're always looking at how to enhance our guests' stays by giving quality for a good price. We wouldn't be able to do that without Costco."
Every Thursday afternoon, hotel workers load into the company truck for the trip to Costco and supplies for the week. Of course, along with the basics they fill up the gas tank at Costco.
"We get everything there," Kidd says. "Our washers and dryers and office supplies. The Kirkland Signature™ laundry detergent. Pet beds and dishes. Patio furniture and those big umbrellas."
This guest gets the picture and politely starts to leave. "Hey, wait," Kidd says. "I forgot to show you the storage area in the basement. We have those Gorilla storage racks with all our extra supplies and ..." C
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