Author: David Klemt

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Plant-based Performance is Nuanced

Plant-based Performance is Nuanced

by David Klemt

LikeMeat plant-based burgers in skillet with onions

The World Resources Institute is making the case that the success of plant-based products on-premise will require menu changes.

In particular, changes need to be made menu item descriptions. Drilling down even further, the language we use in descriptions is crucial to performance.

Simply put, just offering recognizable plant-based brands and their products isn’t enough.

Speaking to Guests

When it comes to plant-based food items, there are multiple consumer segments to consider.

For example, there are those who are all-in on plant-based. Targeting this group is easy—promote the fact that you have the products they want.

There’s also the previous group’s counterpart: uninterested in these food items. It’s likely you’re simply never going to convince them to even try plant-based menu items.

Of course, there are the consumers in between. If succeeding with plant-based menu items will translate to more guests engaging with your business, increasing traffic and revenue, speaks to your brand in an authentic way, and matters to the community you serve, these are the guests you need to win over.

But as stated above, simply putting Impossible, Beyond, LikeMeat, or other brands on your menu likely isn’t enough. This is something some fast-casual brands are experiencing. Plant-based performance, as evidence and anecdotes appears to show, is nuanced.

Announcing plant-based alternatives seems to result in a quick rise in sales. However, that initial interest doesn’t appear to last long. And when sales slow an operator either finds themselves sitting on stock, lowering prices, or both.

Again, if succeeding with plant-based items is good for your brand, you’ll need to do some work.

Language Matters

The World Resources Institute (WRI) addressed this topic last week via video presentation. Titled “Messaging that Works: Engaging Diners in Climate Action,” the nearly hour-long video states that language matters for plant-based buy-in.

A study conducted by the WRI found that “nudging” guests with the right messaging boosted plant-based sales. The institute tested ten “framing themes” with ten associated themes.

Two types of messages “came out on top by a long way,” according to presentation host Edwina Hughes:

  • Small change, big impact
  • Joining a movement

Per the WRI’s study, those two themes resulted in around double the demand for plant-based items as other themes.

The first theme speaks to a person’s personal agency, or their actions and the impact they can have on their own lives.

Joining a movement relates to social norms. In particular, suggesting something is a movement tells someone that there are like-minded people already engaged with this concept, product, lifestyle, etc.

Putting this to Use

Menu descriptions, table talkers, POS messaging, and social media can all play a role. Again, this is only if this is important to your brand and guests. If plant-based menu items aren’t authentic to your business, the “Small change, big impact” messaging may not be of interest to you.

For operators who want to succeed with plant-based items, the WRI presentation suggests a “nudge.” In relation to the first theme from above, the process would be:

  • Personal empowerment statement: A person can have a positive impact on the environment.
  • Easily attainable action: Substitute one meat-based meal for a plant-based one.
  • Easily understood personal outcome: A positive result that can come from their purchase.

When it comes to the movement theme, operators can use the following nudge, provided by the WRI as an example during their presentation:

“Ninety percent of Americans [size and/or relevance of group] making the change to eat less meat [group’s behavior] choose plant-based dishes that have less impact [call to action].”

Plant-based menu items aren’t really a trend anymore, but they’re also not quite mainstream. If they’re going to perform stronger in the QSR and other segments, they’ll need better messaging.

Additional Takeaway

The lessons learned from WRI’s presentation aren’t limited to the performance of plant-based menu items. Nudges can work for all manner of products in all types of concepts.

When you look at your menu with a truly critical eye, ask yourself:

  • Does it have attention-grabbing descriptions?
  • Do the descriptions accurately describe the items?
  • Would you be swayed by your descriptions?
  • Are there any calls to action?

If you can’t answer yes to most or all of those, your menu would likely benefit from revisions.

Your menu isn’t just a catalogue of food, drinks, and prices. Rather, it’s a powerful sales and marketing tool. Take the time to leverage it accordingly.

Image: LikeMeat on Unsplash

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Be Different this Valentine’s Day

Be Different this Valentine’s Day

by David Klemt

Red graffiti heart with black outline on weathered, worn wall

When people are considering spending time and money on a holiday two years into a pandemic, they’re seeking unique experiences.

This is particularly true of holidays that traditionally involve an evening out at a restaurant or bar.

Sure, the tried and true will still probably work. After all, the pandemic has driven comfort and comfort foods to perform well.

However, a significant percentage of guests want to experience something new when they leave their homes. Below you’ll find two Valentine’s Day drink recipes and an example of entertaining programming.

When it comes to beverage programming, most people expect bubbles or rosé wines. And of course pink wines, Champagne, Prosecco, Cava, and other sparkling wines should be on hand.

But offering a Valentine’s Day cocktail that isn’t a French 75 can help your holiday menu stand out. One recipe leverages a spirit that may knock vodka off its throne this year. The other showcases a spirt that various industry experts have been hoping claim the number one spot for years.

Kiss from a Rosa

Tequila, particularly premium and ultra-premium expressions, is crushing it as a category. This Valentine’s Day cocktail is made with Código 1530 Rosa, an ultra-premium blanco tequila.

Rested for one month in uncharred French white oak barrels formerly filled with Napa Valley Cab, this unique tequila is characterized by a rosé hue.

Kiss from a Rosa tequila cocktail from Codigo 1530 for Valentine's Day

  • 1.5 oz. Código 1530 Rosa tequila
  • 0.5 oz. Cointreau
  • 0.5 oz. Raspberry syrup
  • 0.5 oz. Lemon juice
  • 1 Egg white
  • Pink sugar or raspberries to garnish
Build it: Combine all ingredients in a cocktail shaker without ice. Shake hard for roughly 30 seconds, until the ingredients form a foam. Add ice to the shaker and shake until chilled. Strain into a rocks glass. Garnish with pink sugar or raspberries on a cocktail pick.

Bacardí Old Cuban

I’ve lost track of the number of people who have predicted (hoped is probably more accurate) that rum will “finally have its year.” With tequila projected to potentially crush vodka and Irish whiskey performing so well, it’s unlikely rum will dominate 2022.

However, the category may still experience even more growth this year. Reserva Ocho is based on the Bacardí family’s reserve rum.

The eight-year-old premium rum’s dried fruit, spice, and vanilla notes play well with Prosecco. This cocktail also features a pairing that many guests wouldn’t expect to work: rum and Prosecco.

Bacardí Old Cuban rum cocktail made with Bacardí Reserva Ocho Rum

  • 2 oz. Bacardí Reserva Ocho Rum
  • 2.5 oz. Martini & Rossi Prosecco
  • 4 Mint leaves
  • 1 oz. Simple syrup
  • 1 oz. Lime juice
  • 2 dashes of Bitters

Build it: Combine all the ingredients except Prosecco in a cocktail shaker with ice. Shake vigorously, then double-strain into a coupe. Top with Prosecco and garnish with a mint leaf float.

Both cocktails above can easily justify premium pricing.

Dueling Axes Las Vegas Valentine’s Day

Featured on episode 41 of Bar Hacks, Dueling Axes offers an upscale axe-throwing experience. Of course, being upscale doesn’t mean the venue is stuffy.

Rather, Dueling Axes emphasizes fun and unique experiences. Their Valentine’s Day programming is an example of balancing the familiar with the unexpected.

From February 13 through February 15, couples will be treated to two free glasses of Champagne. Groups of four or more will receive a bottle of Champagne for free.

On February 13, however, Dueling Axes is offering an attention-grabbing promotion.

Targeting Galentine’s Day guests, the venue is encouraging people to bring in photos of their exes. The staff will hang the picture on the bullseye to motivate throwers to ace their tosses.

A bit aggressive? Sure. A tad dark? Yep. Memorable? Absolutely.

The recipes and programming above illustrate that simple deviations from the expected can help your venue stand out. This Valentine’s Day, strike a balance between the expected and unique.

Image: Tengyart on Unsplash

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Bring the Heat: It’s Spicy Margarita Day!

Bring the Heat: It’s Spicy Margarita Day!

by David Klemt

Tanteo Tequila Jalapeño Margarita made with Tanteo Jalapeño Tequila

Today is the day to dial up the heat and deliver some fiery flavors to your guests with spicy Margaritas.

Why? Because it’s the second annual National Spicy Margarita Day!

Originally known as Founder’s Day, this bar holiday comes to us from Tanteo Tequila.

Participation is easy enough, and even easier if you have Tanteo Jalapeño, Habanero, and Chipotle bottles.

Tanteo CEO and Master Blender Neil Grosscup explains the signature cocktail holiday on the Bar Hacks podcast. During episode 64, Grosscup shares that the inaugural celebration honored late Tanteo founder Jonathan Rojewski. The holiday also highlights the brand’s mission: Crafting a tequila that makes the world’s best spicy Margarita.

However, it’s not just about promoting the brand and their favorite cocktail. Rather, Tanteo leverages this holiday to encourage people to give back.

Sustainability Initiatives

As Grosscup explains on Bar Hacks, he and the Tanteo team value three forms of sustainability:

  • Economic
  • Social
  • Environmental

The Tanteo distillery’s ownership spans 84 agave-farming families. Tanteo Tequila is the 85th owner. This business model—the only distillery owned by a co-op of agave farmers—is an example of economic sustainability.

There are a few reasons for this approach. One of those is that it helps the farmers weather market swings. Indeed, agave is acutely susceptible to shifts in market value. When there’s too much agave, the value of a kilo of agave can plummet quickly. Another reason for the Tanteo co-op is transparency.

About 150 bars are participating in this year’s National Spicy Margarita Day. For every spicy Margarita made with Tanteo Tequila sold at these venues through January 30, $1 will go to a variety of waterway cleanup charities:

  • Chattahoochee Riverkeeper
  • Friends of the Chicago River
  • Friends of the LA River
  • Keep the TN River Beautiful
  • Ohio River Foundation
  • Orange County Coastkeeper
  • San Diego River Park Foundation
  • Trinity River Audubon Center
  • Un Salto Con Destino. This organization is cleaning up the Rio Santiago. The Tanteo distillery is in Juanacatlán, Jalisco, Mexico, and the Rio Santiago is crucial the surrounding community.

How to Participate

It’s a little late to join officially as a bar partner with Tanteo. However, that doesn’t mean you shouldn’t celebrate the holiday.

Serving up spicy Margaritas is always a great idea. One simple way to leverage National Spicy Margarita Day is to create a small specialty menu. With at least three Margaritas, you can boost the heat level of each version to appeal to different guest’s spice preferences. You can alter heat levels using different Tanteo expressions, infusions, bitters, syrups, etc.

Or, you can simply perfect your restaurant or bar’s signature spicy Margarita. Either way, promote your participation on across your social platforms.

Speaking of social, snap a pic of your Margarita(s) and use the tag #NationalSpicyMargDay. Notice the spelling: the hashtag uses “Marg,” not “Margarita.” For every social media post tagged #NationalSpicyMargDay, Tanteo will donate $1.

See below for three Tanteo spicy Margarita recipes. ¡Salud!

Tanteo Jalapeño Margarita

Tanteo Jalapeño Margarita cocktail and bottle of tequila

  • 2 oz. Tanteo Jalapeño Tequila

  • 1 oz. Fresh lime juice

  • ¾ oz. Agave nectar

Prepare a rocks glass by adding ice. Optionally, rim glass with Tanteo Jalapeño Salt or your signature blend. Add all ingredients to a shaker with ice. Shake well and strain into prepared rocks glass. Garnish with a lime wedge or jalapeño slice (or both).

Tanteo Habanero Margarita

Tanteo Habanero Margarita on a board with habanero peppers with tequila bottle in background

 

  • 2 oz. Tanteo Habanero Tequila

  • 1 oz. Fresh Lime Juice

  • ¾ oz. Agave Nectar

Prepare a rocks glass by adding ice. Optionally, rim glass with Tanteo Jalapeño Salt or your signature blend. Add all ingredients to a shaker with ice. Shake well and strain into prepared rocks glass. Garnish with a habanero pepper.

Tanteo Chipotle Margarita

Tanteo Chipotle Margarita in garnished rocks glass next to tequila bottle

  • 2 oz. Tanteo Chipotle Tequila

  • 1 oz. Fresh Lime Juice

  • 1/2 oz. Agave Nectar

Prepare a rocks glass by adding ice. Add all ingredients to a shaker with ice. Shake well and strain into prepared rocks glass. Garnish with a chipotle pepper, orange slice, or lime wedge.

Image: Tanteo Tequila

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NRA Sends Survey Results to Congress

NRA Sends Economic Survey Results to Congress

by David Klemt

United States Capitol Building beneath cloudy skies

On the heels of the IRC’s National Day of Action to Save Restaurants, the National Restaurant Association has sent a letter to Congress.

Sent by Sean Kennedy, executive vice president of the NRA, the letter urges Congress to finally replenish the RRF.

“After two years of closures, COVID-19 variants, worker shortages, and inflationary pressure,” reads the letter, in part, “a dangerous number of restaurants are at the end of the line.”

A Critical Moment

As I’ve written several times (exhaustively, some would say), the bill meant to replenish the Restaurant Revitalization Fund was first introduced in June 2021. We’re now a week away from February 2022.

In August of last year, a unanimous consent vote to provide $43 billion in emergency funding to the industry was shot down by Senator Rand Paul (R-KY). Build Back Better passed the House in November 2021. However, it didn’t include the Restaurant Revitalization Fund Replenishment Act.

As expressed by Sean Kennedy in an email sent yesterday, we’re at a critical juncture. Kennedy points to two dates when making his point: February 18 and March 1.

All government spending expires on the former date, and President Joe Biden delivers his State of the Union Address on the latter date. Kennedy suggests that the only large-scale spending bill of 2022 will be passed between those dates.

So, it’s probable that we have mere weeks to pressure Congress into replenishing the RRF.

The Numbers

Kennedy’s letter to Congress is addressed to Nancy Pelosi (D-CA), Chuck Schumer (D-NY), Kevin McCarthy (R-CA), and Mitch McConnell (R-KY).

Citing the results of the NRA’s largest-ever economic survey, Kennedy urges action on the RRF from Congress. The NRA’s executive vice president estimates that replenishing the RRF will save over 1.6 million restaurant jobs.

Below are the survey results included in Kennedy’s letter to Congress:

  • 88 percent of restaurants saw decline in customer demand for indoor on-premises dining due to the omicron variant.
  • 76 percent of operators report that business conditions are worse now than they were just three months prior.
  • 74 percent of operators say their restaurant is less profitable now than it was prior to the pandemic.
  • Almost 50 percent of restaurant operators who didn’t receive RRF grants feel it’s unlikely that they’ll stay in business beyond the pandemic without a grant.
  • 94 percent of restaurant operators who applied for an RRF grant but did not receive funding said a future grant would enable them to retain or hire back employees.
  • 96 percent of recipients said the RRF grant made it more likely that they would be able to remain in business.
  • 92 percent of recipients said the RRF grant they received helped them pay expenses or debt that had accumulated since the beginning of the pandemic.
  • The initial round of grants, per the NRA, likely saved more than 900,000 restaurant jobs.

Now is not the time to relent—we need to keep up the pressure. If Kennedy and the NRA are correct, we have only weeks to receive the help our industry needs and deserves.

Image: Harold Mendoza on Unsplash

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Launch of the Irish: Whiskeys You Want

Launch of the Irish: Whiskeys You Want in 2022

by David Klemt

Jameson Orange Irish Whiskey bottle and cocktails

Tomorrow is National Irish Coffee Day. What better time to take a look at the Irish distilleries and releases to look out for in 2022?

From the looks of things, Ireland’s distillers are set to unleash a flood of enticing whiskeys this year. This bodes well for whiskey lovers, Irish coffee and St. Patrick’s Day fans, and your menu.

Below you’ll find ten bottles to update the Irish whiskey section of your menu. Sláinte!

Jameson Orange ($24.99 SRP)

From arguably the most recognizable name in Irish whiskey comes Jameson Orange . You can check out the bottle in the image above. With natural orange flavor, Jameson says Orange works well neat, on the rocks, and in cocktails. In particular, simple drinks like Jameson Orange and Cranberry.

Bushmills Causeway Collection 27-Year-Old Bourbon Cask ($745 SRP)

You can take two things away from this Bushmills bottle’s name. First, this ultra-premium Irish whiskey comes with hefty price tag. Second, the maturation process involves bourbon barrels. In fact, the first 21 years of maturing takes place in first-fill bourbon casks from Kentucky.

Tullamore DEW XO Caribbean Rum Cask Finish ($39.99 SRP)

Looking to switch things up with your tiki or nautical bar menu? Want to offer a new take on tropical drinks? Replace the rum with Tullamore DEW XO Caribbean Rum Cask Finish. To craft this unique expression, Tullamore DEW finishes their whiskey in former demerara rum casks, which impart notes of bananas, dates, and raisins.

Midleton Very Rare Dair Ghaelach Kylebeg Wood, Tree No. 2 ($352 SRP)

An important element of the whiskey experience—all spirits, ideally—is getting a taste of the region from which originates. With Dair Ghaelach, which translates to “Irish oak” in Irish or Scottish Gaelic, Midleton aims to deliver a taste of the heart of Ireland. They do this by finishing this expression in casks made from virgin Irish oak from, of course, Kylebeg Wood.

Method And Madness Single Malt ($95 SRP)

Micro Distillery in Midleton, Ireland, which you’ll find in County Cork, first laid this whiskey down in 2002. The liquid matures in bourbon casks before finishing in Fresnch Limousin Oak barrels. Expect cereal malt notes on the nose; barley, ice cream cone and cinnamon stick on the palate; and bon-bons on the finish.

The Pogues Single Malt ($24.99 SRP) and Blended ($28.99 SRP)

Yep—the Pogues. The Celtic band teamed up with Master Distiller Frank McHardy to craft two Irish whiskeys. Single Malt, packaged in a bold red bottle, offers a smooth sip with notes of chocolate, cinnamon, marshmallow, nougat, wood, and spice. The Pogues Blended Irish Whiskey combines grain and malt whiskeys, delivering dark chocolate, citrus, dark fruit, and spice on the nose and palate.

Roe & Co. ($29.99 SRP)

Straight out of Dublin, Roe & Co. produces creamy smooth, warm and inviting blended Irish whiskey. This bottle just may become a favorite among your guests on St. Patrick’s Day this year.

Micil Inverin Small Batch ($51.99 SRP)

This bottle comes from the first distillery to open legally in Galway, a coastal town on the west side of Ireland. Founder Pádraic Ó Griallais is a sixth-generation poitín (very generally speaking, “Irish moonshine”) distiller. The Scotch drinkers among your guests will appreciate the charred wood and peat characteristics of Iverin Small Batch. I would definitely try this in a Penicillin.

Sailor’s Home The Journey ($51.99 SRP)

Hailing from Limerick, Ireland, Sailor’s Home crafts four expressions of Irish whiskey. For this roundup, I’m sharing The Journey, a Gold Medal winner at the 2021 International Spirits Challenge. As the distillery suggests, this may become your guests’ new go-to Irish whiskey, and likely in short order. First, whiskey is aged in virgin American oak casks. The liquid is then moved to American bourbon barrels. Finally, that liquid is combined with malt Irish whiskey that was matured in American bourbon barrels and finished in Jamaican rum casks. As the distillery says, “No other Irish whiskey is made like this.”

Shanky’s Whip ($24.99 SRP)

Fine, this isn’t strictly an Irish whiskey. Shanky’s Whip is a blend of liqueur and Black Irish whiskey. Perfect for shooting, in a highball with cola, or dropped into a pint of stout.

Prices in USD. Image: Jameson 

by David Klemt David Klemt No Comments

Stories Sell: Whiskey Maturing and Aging

Stories Sell: Whiskey Maturing and Aging

Glass of whiskey neat against black background

The whiskey emoji in real life.

When it comes to tempting a guest out of their comfort zone or introducing someone to a new spirit, telling a compelling story is key.

Now, when we’re talking about whiskey, there are several directions the relevant stories can take.

We can focus on a distillery’s heritage and legacy. There are the histories of master distillers and master blenders. And there are innovations that pertain to maturing and aging.

Look, it’s been a heavy week. The National Day of Action to Save Restaurants took place on Tuesday. Half of this week’s KRG Hospitality were focused on that crucial campaign.

So, I think we need to end this week with something fun. Remember, when your guests are having fun at your venue, they’re more apt to order that second or third drink. Of course, a fun experience also encourages first-time guests to convert to loyal, repeat guests.

You know what’s fun? Checking out how distillers are innovating and crafting special releases. Many limited-run expressions leverage attention-grabbing maturing and aging techniques to stand out.

Below are a few unique expressions. Sometimes, short and snappy is the best sales approach. Quickly sharing how a particular bottle was matured or aged can sell a dram quickly and effectively.

Jefferson’s Ocean

This bottle, a “very small batch” blend of straight bourbon whiskeys, goes on journey before arriving in your guest’s glass.

How great a journey? According to Jefferson’s Bourbon, Jefferson’s Ocean barrels travel on the deck of a ship 25 ports across five continents. During this aging process, the barrels also cross the equator twice.

The result is a unique bourbon with hints of salted caramel popcorn, tropical fruit, and brine. In short, the salt air of the sea is captured in each barrel that takes this impressive trip.

Starward Two-Fold, Nova, and Solera

David Vitale, the founder of Starward Whisky, is the guest on episode 63 of the Bar Hacks podcast.

During his episode, Vitale explains that Starward matures in Australian wine barrels. And to make sure the Australian distillery gets the most out of these barrels, Starward sources them from wineries that are within a day’s drive.

Vitale calls Two-Fold the “Swiss Army knife of whiskies.” Working well neat, on the rocks, in cocktails (like a Two-Fold & Tonic, says Vitale), and with food. Nova, also matures in barrels once filled with Australian red wine. The result is a whisky that Vitale says makes the world’s best Manhattan.

For Solera, Starward takes a slightly different approach. The distillery utilizes the Spanish Solera method for this expression, as the name implies. However, to really deliver a dram that embodies its home, Solera is matured in former Apera barrels. Apera, an Australian fortified wine, is similar to sherry.

Starward Ginger Beer Cask

If ocean aging and wine barrel maturation doesn’t grab your attention, this bottle may at least get an eyebrow raise out of your and your guests.

Now, before I proceed, this is a highly allocated Starward expression. During his podcast interview, Vitale told me even he, the founder, only gets one of these bottles when they come up for release.

The 2022 Starward Ginger Beer Cask is the seventh bottling of this experimental expression. To craft this rare spirit, Starward brews alcoholic ginger beer (Vitale comes from the craft beer brewing world in Australia) and finishes their single malt whisky in those ex-ginger beer casks.

Expect strong, spicy, warm notes of ginger, along with candied citrus, dark chocolate, vanilla, and pineapple.

American Highway Bourbon

When country music superstar Brad Paisley went on tour in 2019, he brought along something unique. That special something? A world first: 90 barrels of whiskey inside a 53-foot trailer.

That “rolling rickhouse” traveled coast to coast across 25 states. The 90 barrels toured and aged with Brad Paisley for more than 7,300 miles.

When the tour concluded, the trailered whiskey was blended with three Kentucky bourbons to create Batch One: one three year, one 13 year, and one 15 year. American Highway Reserve, in collaboration with Bardstown Bourbon Company, was born.

Batch Two is coming in 2022. For this expression, the rolling rickhouse followed Paisley’s 2021 tour.

Each of the bottles above tell a unique, tempting story. Better yet, these stories can be told to guests quickly. Upselling is an art, and these bottles make it easier.

Image: Mathew Schwartz on Unsplash

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SevenRooms Kicks Off 2022 with Growth

SevenRooms Kicks Off 2022 with Growth

by David Klemt

Restaurant worker using SevenRooms on tablet

SevenRooms continues their growth by kicking off 2022 with the announcement of a new, crucial addition to the team.

Today, the hospitality technology company announces the hiring of Brent-Stig Kraus. Formerly the senior vice president of sales for ChowNow, Kraus will take on the role of chief revenue officer at SevenRooms.

As CRO, Kraus will play a crucial role in further accelerating SevenRooms’ impressive global growth. The company’s new CRO will accomplish this goal by identifying and pursuing partnership opportunities, targeting high-growth sales, and scaling sales globally.

Steady Growth

In March of last year, SevenRooms brought on Pamela Martinez as the company’s chief financial officer.

By September of 2021, the platform announced a multi-year partnership with TheFork. In particular, this was major news for operators throughout Europe and Australia. Additionally, this partnership illustrates how SevenRooms is pursuing long-term global growth.

A month later, in October of last year, the company entered into a partnership with Olo. In doing so, SevenRooms ensures clients who also use Olo can capture their off-premise customers’ information. That data then creates profiles for those customers automatically, meaning operators can learn more about and effectively market to customers who engage with them via online orders.

In December of 2021, SevenRooms and ThinkFoodGroup—the hospitality company behind Chef José Andrés’ portfolio of restaurants—announced their partnership. Interestingly, this partnership sees ThinkFoodGroup joining SevenRooms in an advisory role.

And it’s not just filling crucial C-suite roles and entering into partnerships that benefit operators and the industry that are examples of SevenRooms’ rapid growth.

Along with hiring Martinez as CFO, the platform launched Direct Delivery in March 2021. This online ordering solution helped operators eliminate third-party fees; retain control of guest data; and fulfill guest desire to order from restaurants directly and seamlessly.

Finally, the company ended 2021 by sharing their 2022 trend predictions.

Why this Matters

Tech innovations are crucial to the long-term future of the hospitality industry. Restaurateurs, bar owners, and hoteliers, were once wary of adopting new tech.

Now, they’re investing more to streamline operations; automate reservations, online ordering, and marketing campaigns; and improving customer and staff relationships.

However, without growth a platform eventually becomes outdated. When that happens, the investment made by an operator to include it in their tech stack becomes a burden and liability.

As SevenRooms continues their growth, they prove worthy of an operator’s support and investment. We continue to support SevenRooms—without receiving any compensation for doing so—in large part because of the platform’s growth.

In addition to their available tools, we’re always eager to see what they’ll release next to make life simpler for operators.

Image: SevenRooms

by David Klemt David Klemt No Comments

US Operators, Take Action Today

US Operators, Take Action Today

by David Klemt

Chef doing prep alone in kitchen

Today is the day to let Congress know the clock has run out on our patience for them act on replenishing the RRF.

In all honesty, the industry’s tolerance for governmental inaction on the RRF ran out last year. Right around the time, I’d say, the RRF application portal closed, leaving almost 200,000 applicants without crucial grants. As a reminder, the portal closed after just 21 days of launching.

Today is the National Day of Action to Save Restaurants. The Independent Restaurant Coalition is leading the charge for this campaign.

To participate, follow the IRC on Instagram, Facebook, and Twitter. Additionally, click here to sign up for their emails. Spread the word and encourage staff, guests, your family members, and friends to take part as well.

Below you’ll find more details for taking action to #SaveRestaurants and #SaveBars today and moving forward.

Industry Advocacy

The IRC has been fighting and advocating for the industry since the start of the pandemic. Today, they’re asking owners, operators, workers in all segments of the industry, communities, and guests to throw their support behind this crucial fight.

So, today is the day to inundate your representatives with phone calls. Dial this number to reach the Capitol switchboard: 202-224-3121. The IRC provides state-specific fact sheets, which can be found here.

For an example of what you’ll find on a state’s fact sheet, here are some details for Nevada:

  • The leisure and hospitality industry accounts for 87.6 percent of all jobs lost in the state.
  • In Nevada, the industry is worth $9.9 billion, with 5,980 restaurants and bars throughout the state.

Those are just two pertinent facts about the industry in Nevada.

Along with phone calls, people should contact their representatives via email. Follow this link to email Congress and tell them to replenish the RRF.

Send a Message

Of course, social media will also play an important part in today’s campaign. Flooding Instagram, Facebook, Twitter, and other channels with #SaveRestaurants, #SaveBars, and #ReplenishRRF should get Congress’ attention in a very public, very newsworthy way.

Click here to access the IRC’s social media and website toolkit.

It’s time to let Congress know we’re doing waiting for action. We’re done with the lip service, platitudes, and empty words of support. And we’re done with the broken promises, disarray, and inaction.

Personally, I plan on once again letting my state representatives know that I’m watching. Those who don’t do their jobs and help replenish the RRF won’t be receiving my vote. I can’t support those who won’t support us. Whether you want to send that message is up to you.

Today, however, make your voice heard and send at least this message: We demand Congress acts now.

Image: Rohan G on Unsplash

by David Klemt David Klemt No Comments

January 18 is National Day of Action

January 18 is National Day of Action to Save Restaurants

by David Klemt

Full restaurant dining room at gastrolounge Rusted Crow in Detroit, Michigan

Tomorrow, January 18, the Independent Restaurant Coalition is spearheading the National Day of Action to Save Restaurants.

The IRC is asking all hospitality professionals, vendors, guests and communities to participate.

In short, the time for asking nicely is over. On Tuesday, we must all demand that Congress actually put action to their professed support of the hospitality industry.

On Tuesday, the IRC will send out an email detailing how everyone can push for action on replenishing the RRF. So, click here to sign up for email updates from the coalition.

People can also follow them on Instagram for National Day of Action to Save Restaurants details.

A Dire Situation

According to an email sent out by the IRC (again, you should sign up), a significant number of restaurants and bars find themselves in dire situations.

Per IRC survey results:

  • more than one in four restaurants (28 percent) that didn’t receive RRF grants are facing eviction;
  • almost 50 percent are facing bankruptcy; and
  • close to 60 percent of restaurants are reporting sales drops of more than 50 percent during the surge in Omicron infections.

For context, let’s review how RRF grants helped some recipients survive:

  • Ten percent are facing eviction.
  • Twenty percent are facing bankruptcy.

Is an RRF grant a silver bullet? No, but it’s certainly valuable ammunition in the fight for the survival of independent restaurants and operators, and therefore the industry itself.

Time is Up

Actually, time ran out months ago. Congress has allowed months to go by without taking any meaningful action.

In fact, one US Senator, Rand Paul (R-KY), blocked a vote to provide the industry with $43 billion in emergency funding. The senator killed the unanimous consent motion back in August of 2021.

As a refresher, the RRF grant application portal was closed last year on May 24. A bipartisan group introduced the Restaurant Revitalization Fund Replenishment Act of 2021 in June.

And like I mentioned, emergency funding was smacked off the table just two months later.

In November, Build Back Better was passed. Of course, it didn’t include the RRF Replenishment Act. So, apparently building America back better doesn’t include restaurants, bars, lounges, etc.

It’s clear that America’s politicians and lawmakers are content to not accomplish much. “Owning” one’s opponents via social media and sound bites is apparently much more important.

Sniping at one another, not doing the jobs they were elected to do, is the order of the day. Meanwhile, independent owners and operators are being left out in the cold and crushed under the weight of a web of inconsistent Covid-19-related mandates and guidelines. Their staff members are expected to act as the Covid police, risking their health and safety.

I could go on but we all know what’s happening: The people elected to represent the people are abusing the privilege by ignoring us.

The time for asking nicely for Congress to take action is over. It’s time to demand action.

Image: Stanford Smith on Unsplash

by David Klemt David Klemt No Comments

Top 2021 KRG Hospitality Articles

Top 2021 KRG Hospitality Articles

by David Klemt

Page in Olympia typewriter with "2021" typed onto it

We’ve gathered the top KRG Hospitality articles from 2021 and separated them into five distinct categories: Food, Beverage, Operations, Marketing & Promotions, and Industry News

Food

Delivery and Takeout Food Trends for 2021: Canada

It should come as no surprise that interest in what food items Canadian consumers wanted to order for delivery and takeout skyrocketed last year. (link)

Delivery and Takeout Food Trends for 2021: United States

Obviously, owners, operators and management wanted to stay current on consumer food trends in the USA as well. (link)

Have a Slice of Nostalgia: The Return of Viennetta

Never underestimate the marketing, promotions, and profitability power of nostalgia. This is particularly true when people are seeking comfort. (link)

Beverage

Uncorked: 2021 Wine Trends to Watch

Understanding what wines are trending is an effective way to boost profits and overcome wine intimidation. (link)

Fever-Tree Cola: Set Aside Your Soda Gun

Outright eliminating soda guns may be a long shot. However, cocktails crafted using bottled craft ingredients can justify premium prices. (link)

These are the Drinking Trends to Watch in 2021

We may not have a crystal ball but we have the next best thing: Data. (link)

Operations

Container Kitchens: The New Footprint

Several industry experts and intelligence agencies predict smaller restaurant footprints moving forward. Container kitchens are certainly a viable method to shrink venue sizes. (link)

The Reality of Hiring Right Now

It really doesn’t need to be said but I’ll do it anyway: The labor shortage and “Great Resignation” are real. (link)

The 5 Ds of Bystander Intervention

Sure, great food and beverage are crucial to luring people in, wowing them, and converting them to repeat guests. However, so is the experience. A key element of a positive memorable experience is ensuring guests feel safe. (link)

SevenRooms Reveals Third Party Delivery Impact

The high-tech reservation platform shows what many suspected to be true: Direct delivery is better for operators than third-party delivery. (link)

Marketing & Promotions

How SevenRooms Improves Operations

Not only does SevenRooms make handling reservations easier, it also makes setting up marketing campaigns simple and effective. (link)

This Generation is Most Likely to Dine In

If you want to know who to market in-person dining to, here’s your answer. (link)

0.0 to 0.5 Beers to Know for Dry January and Beyond

Dry January (along with Damp January) is here to stay. This is a sampling of alcohol-free and low-ABV craft beers to offer Dry and Damp January guests. (link)

Industry News

I Tried the Mask Made for & by Hospitality

None of us enjoy wearing face masks. This mask is comfortable to wear and amplifies the wearer’s voice. (link)

What’s the RRF Replenishment Act?

Well, here’s one take on an answer to this question: It’s the bill to replenish the RRF that has made zero progress since June of 2021. (link)

Build Back Better…Without Restaurants or Bars?

The BBB Act was passed in November. Of course, it didn’t include the Replenish RRF or ENTREE acts. It’s much easier for politicians and lawmakers to say they care about and support our industry than actually prove it. (link)

Image: Markus Winkler on Unsplash

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Moderation Movement: Damp January

Moderation Movement: Damp January

by David Klemt

Cocktail resting on a ledge in front of a window

Move over, Dry January, there’s yet another alternative to “traditional” alcohol consumption at the start of a new year.

As we know, Dry January consists of abstaining from drinking any alcohol for 31 days. Also known by the awkward name Dryuary, this annual practice continues to gain popularity.

However, not everyone is comfortable with this all-or-nothing approach. Instead, there are those who want to try Damp January.

What is It?

You’re likely already guessing how Damp January works. Rather than abstinence, participants practice moderation.

Generally speaking, that’s it—it isn’t a complex concept. However, there are many approaches to Damp January.

Some people set hard limits for themselves. For example, a wine drinker may resolve to only consume three glasses of wine per week. A beer drinker may choose to only have two beers from Monday through Friday.

Another approach is to determine how many full alcohol drinks one consumes on a weekend. Then, they decide to reduce that consumption by 50 or 75 percent.

However one chooses to participate in Damp January, the goal is reduction and moderation.

Is this a Fad?

In a word, no. Whatever label is put on it—moderation, sober curious, reduction—many consumers are looking to drink less alcohol.

Dry January was once seen as a fad. Instead, it’s safe to say it’s much closer to being mainstream.

Of course, time will tell if Damp January will earn as much buy-in as its abstinence-focused counterpart.

However, it’s easy to see how Damp January may become long-term behavior for some consumers.

What Does this Mean for Operators?

There are those who simply want to be more mindful of their alcohol consumption. Their goal isn’t to stop drinking alcohol, it’s to make lifestyle changes and reduce their drinking.

Sift through social media, forum and blog posts, and articles on the subject, and you’ll come across interesting motivations for moderation. In many cases, people point to alcohol playing a role in their social lives.

Of course, that means drinking with friends, coworkers, and family members at restaurants, bars, and nightclubs. They simply want to consume less alcohol per visit.

This doesn’t have to present as a threat to operators. The increasing popularity of alcohol-free beers, zero-proof spirits, and low-ABV options can prove profitable for a restaurant or bar’s bottom line.

Guests who making the decision to not consume alcohol or seek out low-proof options still want to socialize. They still want to visit bars and restaurants. More importantly, they want to feel comfortable in their choice.

So, it’s up to operators to ensure Damp and Dry January guests don’t feel alienated or mocked for reducing or abstaining from drinking. Providing low- and zero-proof drinks—and highlighting them on menus—shows these guests they’re welcome and supported.

Additionally, it’s crucial that these guests receive the same level of service and presentation as other people at your bar or restaurant. A little thought to make sure they’re treated the same will go a long way.

Image: Mathew MacQuarrie on Unsplash

by David Klemt David Klemt No Comments

Top 10 Bar Hacks Bonus Episodes: Goals

Top 10 Bar Hacks Bonus Episodes for Setting and Achieving Goals

by David Klemt

We’ve rounded up the ten best bonus episodes of Bar Hacks that feature KRG Hospitality president Doug Radkey offering goal-setting guidance.

Obviously, we all want to succeed. However, it’s not always obvious where we should start. This has been proven all the more true the past two years.

Doug has a way of cutting a path through the overwhelming noise and distractions operators face each day. The Bar Hacks bonus episodes below can help listeners take a deep breath, reset, and take the necessary steps to identify, measure, and achieve their 2022 goals.

Bonus #1: Strategic Clarity

Doug explains strategic clarity as the understanding of who we are, what we’re working toward, and how we’re going to get where we want to go. Click here to listen.

Bonus #3: Simplification

In this episode, Doug asks listeners a simple question: “Is your vision for your restaurant or bar’s systems complex or simplified?”

Bonus #4: Acceptance

We can’t really make achievable goals if we don’t understand the current situation we’re facing. In this bonus episode, Doug explains why it’s important to be able to accept change and differences.

Bonus #6: Decision Making

We make thousands of decisions every day, from the simple to the complex and everything in between. Doug shares his insights into clearly and confidently making decisions for your business. Click here to learn more.

Bonus #7: Innovative Leadership

What is innovative leadership? It’s confidence in your abilities and your team, knowing when to get out of the way, and the culmination of a few other key concepts. To listen, click here.

Bonus #9: Flexibility

For this bonus episode, Doug explains why success in this era of hospitality requires owning the entire guest journey, frictionless omni-channel experiences, and other elements of a flexible approach to business.

Bonus #12: Self Care

Doug shares his thoughts on one of the most crucial elements of operating a business in the hospitality industry. Hint: He’s not talking about menus, marketing or making money in this episode.

Bonus #13: Confidence

Do you think you have a growth-based mindset or a fixed mindset? Doug discusses confidence and the impact it has on your ability to lead effectively in Bar Hacks Bonus #13.

Bonus #14: Self Learning

Knowing that you don’t know it all opens up your world and makes you a better leader. Doug explains how seeking out knowledge, experiences and opportunities to learn makes you a better operator, keeps you sharp, helps you better relate to and mentor others, and improves your business in every way. Listen now!

Bonus #17: The Seven Cs

Doug explains each of the Seven Cs and how they’ll help you build a winning team. Without the right people on staff, you don’t have much of a chance to achieve your goals. Click here to listen to this important episode.

To listen to the first five bonus episodes in this list in one convenient episode, please click here for today’s Bar Hacks podcast episode. Cheers!

Image: Mikołaj on Unsplash

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The 2022 KRG Hospitality Start-Up Guide

The 2022 KRG Hospitality Start-Up Guide

by David Klemt

2022 KRG Hospitality Start-Up Cost Guide & Checklist download

The 2022 KRG Hospitality Restaurant Start-Up Cost Guide & Checklist is here!

If you’ve been putting off opening your restaurant concept, wait no longer. With our guide and checklist, you can make the best, informed decisions to open in 2022.

Yes, opening a restaurant seems daunting in 2022. However, industry intelligence firms such as Technomic have predicted measurable recovery this year in comparison to 2021.

Waiting for the time to be “just right” to open a restaurant just isn’t realistic. The longer one waits to make their move, the further ahead established and new operators can get ahead. Your desired location can be snapped up, competitors can build loyal customer bases, and things get more difficult overall.

That said, that doesn’t mean you should throw caution to the wind. We certainly don’t believe rushing into anything is a good idea. If anything, rushing rather than making informed, deliberate decisions is the antithesis of strategic.

So, what’s the desired middle ground between haphazard and hesitancy? Nimble and informed.

Our 2022 Restaurant Start-Up Cost Guide & Checklist provides useful financial information based on real-world scenarios. This will give you a realistic idea of how much start-up capital you’ll need to realize your entrepreneurial dreams this year.

What can you expect in our latest download? Take a look below.

Subsections

This is no three- or four-page quick-hit guide. Rather, the 2022 KRG Hospitality Restaurant Start-Up Cost Guide is 33 pages of real-world tips and data:

  • Start-up costs
  • Renovation costs
  • Scaled costs (four concept scenarios)
  • Restaurant operating guide

Checklist

Due to the tremendous job scope—in addition to the planning, organization, and communication requirements to start a successful restaurant—we highly recommend working with a team of professionals to save time and financial resources.

Below you’ll find a handful of the 500 unique tasks crucial to opening a restaurant.

Planning and Admin

You must:

  • complete feasibility study;
  • develop concept and brand; and
  • complete strategic business plan.

Supporting Cast

You’ll need to secure:

  • an accountant;
  • a real estate agent/broker; and
  • a project manager.

Site Development

The first steps are all crucial to the timeline:

  • Secure property of choice;
  • Sign commercial lease; and
  • Submit drawings.

Operations Development

Examples of the hundreds of tasks you must complete include:

  • a kitchen workflow plan;
  • bar and takeout workflow; and
  • developing a recipe books for the kitchen and bar.

Again, these are just a handful of the 500 unique tasks you’ll complete to start your restaurant.

Download our 2022 Restaurant Start-Up Cost Guide & Checklist to start your journey today.

Image: KRG Hospitality

by David Klemt David Klemt No Comments

How to Achieve Your Goals in 2022

How to Achieve Your Goals in 2022

by Jennifer Radkey

"Wake up, kick ass, repeat" neon sign on wall

The start of a new year for many is symbolic: Fresh year, fresh start.

With the best of intentions, millions of people worldwide create resolutions and set goals for both personal and professional growth and achievement. These goals are created with full enthusiasm and determination and then….the majority of them never come to fruition.

Studies have shown that approximately 80 percent of New Year’s resolutions fail. So what happens? And how can we push forward to achieve our goals instead of letting them slip away?

The majority of us know how to set clearly defined goals. It is something we learned in school, or have read countless articles about. It seems as if it is human nature to want to improve, to do better and be better.

In the hospitality industry, we ask our team members to set goals weekly, if not daily. Goals typically include improving guest retention, increasing sales, improving guest experience, etc.

But once these goals are set, what systems are in place to help your team achieve them? And are you leading by example?

Goal Setting

There are many techniques to goal setting. George Doran, Arthur Miller, and James Cunningham developed the very popular SMART goal tool to assist in developing clearly defined, task-oriented goals. They state that goals should be Specific, Measurable, Assignable, Realistic, and Time-specific (SMART).

Rhonda Byrne’s book, The Secret, discusses envisioning your goals and life desires to attract them to you. But goal achievement is more than just setting a clear goal, or dreaming about what it would be like to achieve that goal. Those are the starting points.

Goal achievement is a process. It can be nitty and gritty and tough. There is typically no easy way. However, there are strategies we can use to help us achieve them, and the result will almost always be worth the extra effort.

Why We Fail

There are countless reasons why goals or resolutions fail, but the reasons mostly fall under two categories: You either lose your willpower or your waypower.

The concepts of willpower and waypower in relation to goal achievement is introduced in Rick Snyder’s Hope Theory, explained is his book The Psychology of Hope: You Can Get There From Here.

Willpower is the desire to achieve your goal; it’s the fire that pushes us to keep going after what we want. Waypower is the map for how we will get to our end goal; it’s the careful plan we have in place to ensure we overcome any obstacles that get in our way.

When we lack willpower our goal seems unachievable, and therefore we give up. When we lack waypower, as badly as we may want to achieve our goal, we are lost with no clear idea of how to get there.

How to Succeed

Finding Your Willpower

If you have lost your willpower, there are several ways to reignite your desire to achieve your goal.

The first is to have constant reminders of your goal. Have it written somewhere where you will have access to it several times a day. Set reminders on your phone, put sticky notes around your office or house, create a vision board representing your goal as your screensaver or on a wall in your home or office.

Remind yourself of why you set the goal in the first place and how it will make your life better.

Many of us lose our willpower when faced with obstacles. Instead of being deflated by obstacles, look at them as challenges to be defeated. Use obstacles as fuel for your fire rather than water to dampen it.

When faced with obstacles it is also helpful to remind yourself of goals that you have achieved in the past and the obstacles you had to overcome to get there. Remembering this time will allow you to acknowledge that you ARE capable and therefore will keep your willpower intact.

Finding your Waypower

Life is busy, and when you are being pulled in many directions at the same time it can be easy to lose your way towards achieving your goals. To ensure that you stay on the path towards goal completion, there are several actions you can take.

Try breaking long-range goals into smaller steps. Start with the first step, and move on to the next, checking off and celebrating each step as you go.

Before you even begin your journey towards goal completion, map out different routes you may need to get there. Knowing these routes beforehand will make it easier to stay focused along the way.

Lastly, know when to ask for helpand be willing to accept it. If you get lost on your way to your goal, perhaps you need some advice from someone who has already achieved that goal.

WOOP

One of my favorite goal achievement strategies is WOOP, created by Gabriele Oettingen. This acronym stands for Wish, Outcome, Obstacle, Plan.

WOOP is a straightforward and effective tool to use when setting goals, and has been practiced by everyone from elementary school students to CEOs of major corporations. Once practiced, WOOP can take less than five minutes of your time while providing great clarity.

The first step is to state your wish or goal clearly. Next, envision the outcome of achieving your goal. Take a couple minutes to really picture what it will look and feel like to achieve your goal.

You are then going to contrast that by thinking of what obstacles might block you from achieving your goal. It is important to note that these obstacles are internal not external.

We rarely have control over external obstacles but do have control over internal ones. What is it about you that will stop you from reaching your goal? Is it low self-esteem, laziness, doubt? Are you distracted easily?

Lastly, you are going to plan what to do when met with an obstacle by using “if/then” phrasing. For example, “If I am feeling lazy and want to have a Netflix marathon instead of working on my goal, then I will get off the couch, do ten jumping jacks, grab a drink of water, and start working on my goal.”

If you are interested in trying out the WOOP tool for goal setting/achievement you can visit www.woopmylife.org.

Own It

Goal setting and resolutions should not be a forced activity you do every new year, or birthday, or every Monday morning to start your week. Goal setting and achievement should be a constant, flowing activity that reaches into all parts of your life.

Through the use of strategies and consistent review, reassessment, and awareness, goals don’t need to be lost or given up on, unless that particular goal no longer serves a purpose to you.

Own your goals and take pride in your achievements. In the end, you will always be your number one advocate for your own growth.

So go get it! Cheers to professional and personal well-being!

Image: Justin Veenema on Unsplash

by David Klemt David Klemt No Comments

5 Books to Read this Month: January ’22

5 Books to Read this Month: January ’22

by David Klemt

Flipping through an open book

This month’s fun and informative book selections will help you develop next-level culinary, beverage and leadership skills as we kick off 2022.

To review December 2021’s book recommendations, click here.

Let’s jump in!

Try Dry: The Official Guide to a Month Off Booze

For those who want to learn more about Dry January, Try Dry is an insightful resource. Of course, this book is also informative beyond the first month of the year. As living alcohol-free movement becomes more mainstream, it’s important for operators to understand the movement. Whether permanent or temporary, there are myriad reasons some guests decide against drinking alcohol.

Of Peats and Putts: A Whisky and Golf Tour of Scotland

During the pandemic, interest in golf skyrocketed. In part, this has led to increased interest in golf simulators, driving ranges, and nine-hole rounds of golf rather than full, 18-hole outings. Of Peats and Putts tells the story of golf and whisky in Scotland. A compelling read for operators looking to bring golf into their businesses.

The Way of the Cocktail: Japanese Traditions, Techniques, and Recipes

Not even two months on the market and already causing quite the buzz! The Way of the Cocktail comes from Julia Momosé, one of the minds behind Chicago cocktail destination Kumiko. From classics to new riffs, the recipes in this book are based on 24 micro-seasons.

Bourbon [Boxed Book & Ephemera Set]: The Story of Kentucky Whiskey

Clay Risen is considered an authority on spirits. In particular, he’s lauded as an expert on whiskey. Bourbon lovers will appreciate the Bourbon: The Story of Kentucky Whiskey box set for what it is: a definitive history of America’s native spirit. Along with profiles of Kentucky distillers, Risen has included interviews and photographs to tell the story of bourbon.

Amaro: The Spirited World of Bittersweet, Herbal Liqueurs, with Cocktails, Recipes, and Formulas

There are many reasons to love amaro. Bitter and bittersweet notes, complex flavor profiles, and their utility when it comes to crafting low-ABV cocktails are among those reasons. Amaro by Brad Thomas Parsons explores the rich history of amaro and includes over 100 recipes.

Image: Mikołaj on Unsplash

by David Klemt David Klemt No Comments

Stand Out with Weird Holidays: January ’22

Stand Out with Weird Holidays: January ’22

by David Klemt

Stay Weird neon sign with purple background

Want to stand out from from other restaurants and bars in your area? Then commit to keeping it weird.

Several “holidays” are set against every date on the calendar, and January is no exception. These holidays range from mainstream to food-centric to weird.

Pay attention to the latter to raise eyebrows, carve out a niche for your restaurant or bar, and attract more guests. Why do what everyone else is already doing?

Of course, you shouldn’t try to celebrate every holiday, weird or otherwise. And this month’s list in no way includes every odd holiday.

Focus on the days that are authentic to your brand; resonate with your guests; and help you grab attention on social media.

For last month’s list, click here.

January 5: National Bird Day

The Jungle Bird. Grey Goose. Famous Grouse. Redbreast. Eagle Rare. Wild Turkey. Kentucky Owl. Chicken wings. Duck fat. Use this holiday to feature your bird-themed cocktails, spirits, beers, and foods.

January 7: National Tempura Day

When it comes to 2022 trend predictions, comfort food is right at the top of many experts’ lists. And when it comes to comfort foods, battering and frying is always a winner. If you can batter and fry it, put it on your menu and promote it.

January 11: National Milk Day

This is the day to perfect and promote your milk cocktails. The Coquito, Bourbon Milk Punch, the Grasshopper, the Mudslide… National Milk Day is easy and fun to celebrate.

January 14: National Dress Up Your Pet Day

Does your business permit guests to bring their dogs or other pets to tag along when they visit? Encourage them to dress up their pets, and make sure you document the results on your venue’s social media channels.

January 19: National Popcorn Day

Is popcorn weird? No, of course not. Is tricking out your popcorn with seasonings weird? That depends on how creative you and your back of house can be. Think outside the popcorn tub, craft some intriguing popcorn flavors, and get your guests talking on social media.

January 20: National Get to Know Your Customers Day

Yep, I’m gonna encourage your strongly to collect the data of every guest who visits and spends money at your business. This would be a great holiday to launch or heavily promote your loyalty program.

January 24: National Beer Can Appreciation Day

Creative beer can design goes hand in hand with craft beer brewing. A lot of thought goes into beer can design and particularly eye-catching labels deserve more than a passing glance. Feature the most creative and attention-grabbing beers on your menu on National Beer Can Appreciation Day. And yes, you should definitely feature them on your social media channels.

January 29: National Corn Chip Day

Ah, the corn chip, a perfect vessel for hearty dips. They’re also ideal for walking tacos, a.k.a. tacos-in-a-bag. If you have corn chips and taco fixin’s, you can offer your guests walking tacos on National Corn Chip Day.

January 31: National Backward Day

There are several ways you can celebrate this day with your guests and staff. One simple but fun way to do so is to encourage your guests to dine in backwards order: dessert first, entrée, and then appetizer. Of course, you could print a specialty menu backwards but that runs the risk of annoying your guests. But still…interesting idea.

Image: Dan Parlante on Unsplash

by David Klemt David Klemt No Comments

Keep Up Your Momentum in 2022

Keep Up Your Momentum in 2022

by David Klemt

Start of 2022 track or path concept

In 2022, our focus needs to be on recovery, which means starting strong, gaining steam, and keeping momentum going throughout the year.

The past two years have been a nonstop flurry of starts, stops, and false starts for American and Canadian operators.

Every challenge operators face during a “normal” day has been compounded. Recruiting, hiring, training, marketing, increasing traffic and revenue, managing inventory…it’s all more challenging.

However, “challenging” doesn’t mean “impossible.” Under the best of conditions, restaurant, bar, and hotel operations are a challenge. Overcoming adversity, in other words, is a consistent element of daily operations.

Now, whether we should view constantly overcoming challenges as a badge of honor… Well, that’s a different conversation, one about industry-wide changes that are long overdue.

For this post, my focus is on starting 2022 off right, building momentum, and keeping it.

KRG Momentum

Last year, we launched a coaching program called KRG Mindset.

KRG is known for our Roadmaps to Success, which include of our in-depth feasibility studies and detailed business plans, both of which help operators secure funding. However, some of our clients aren’t ready for our full suite of startup and expansion solutions.

For these clients, we have the KRG Mindset program. This valuable program’s keystone is a dedicated, certified life coach: Jennifer Radkey.

Both starting and operating a hospitality business can be stressful, exhausting, and time consuming, and it’s easy for your vision, clarity, self-care, and relationships to become lost along the way.

That’s where Jennifer comes in. With a dedicated, certified life coach by your side to ask powerful questions and hold you accountable, the pathway towards achieving your goals will become smoother.

A clear and focused mind and a regular routine of self-care will help you survive both the start-up and day-to-day operating phases, not to mention leading you towards personal and professional success.

Let’s Go!

All hospitality professionals—from business owners to staff—are members of a tight-knit family. Unless you’ve lived hospitality, you just don’t know the challenges, risks and rewards.

That means that startup operators and established operators don’t have to try to navigate the industry alone. Whether you aren’t sure where to even begin your ownership journey or aren’t sure how to overcome the hurdles you’re facing, the team at KRG Hospitality is here for you.

If you’re ready for us to help, click here to learn more about KRG Momentum. And click here to schedule an introductory call.

Image: Tumisu from Pixabay

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Current Restrictions: Canada

Current Restaurant Restrictions: Canada

by David Klemt

Four disposable medical face masks in a pile

KRG Hospitality’s headquarters is in Toronto but we operate in three major Canadian markets: Alberta, British Columbia, and Ontario.

I was visiting the Toronto office, traveling from Las Vegas, when new restrictions were announced due to Omicron.

By the time I landed, I knew each province in which we operate would be at least discussing possible restrictions.

Alberta

The following restrictions apply to restaurants, bars, nightclubs, cafes, and pubs participating in the Restrictions Exemption Program (REP):

  • No more than ten people may be sat at one table.
  • Alcohol service must terminate by 11:00 PM.
  • These businesses must close by 12:30 AM.
  • Billiards, dancing, darts, and other “interactive” activities are prohibited.

As a refresher, the REP program requires operators to require patrons age 12 and above to:

  • provide proof of vaccination, negative results from a test taken within 72 hours of service, or medical exemption; and
  • comply with mandatory masking.

Alternatively, operators can comply with all restrictions as outlined in Alberta’s public health orders.

However, businesses not participating in REP face the restrictions below:

  • Indoor dining is prohibited.
  • Outdoor dining is permitted. No more than six people may sit at the same table.
  • Groups are restricted to one household or two close contacts (for those living alone).
  • Alcohol service must terminate by 10:oo PM. Consumption must conclude by 11:00 PM.

British Columbia

At the time of publication, restaurants, cafes, and pubs can still offer both indoor and outdoor dining.

However, there are restrictions in British Columbia:

  1. No more than six people may be sat at one table.
  2. When not seated, guests must wear face masks.
  3. Guests may not move to between tables, visit other tables, or dance.
  4. Indoor gatherings are limited to 10 people (down from 25).
  5. Outdoor gatherings are limited to 25 people (down from 100).
  6. Operators must maintain physical distancing or barriers between tables.
  7. Alcohol can be served during normal service hours.

Unfortunately, bars, nightclubs, and lounges aren’t facing restrictions, they’ve been forced to close.

These restrictions and closures will remain in place until January 18, 2022. Exceptions include bullet points 2 and 3, which are expected to remain until January 31, 2022.

Ontario

As of December 19, 2021, restrictions that impact restaurants, bars, strip clubs, and other food or beverage venues went into effect:

  • Capacity reduced to 50 percent.
  • No more than 10 people may sit at one table.
  • Guests must remain seated. Only performers or workers may dance.
  • Venues must close for indoor and outdoor dining and drinking by 11:00 PM. However, businesses may offer delivery and takeout past that time.
  • On-premise alcohol sales are prohibited after 10:00 PM. Consumption of alcohol on-premises is restricted after 11:00 PM.

It’s crucial that operators and leadership teams remain up to date on their province’s (and city’s) restrictions. At the start, 2022 will be challenging but opportunities for recovery will present themselves

Image: Markus Winkler on Unsplash

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Soft Versus Stealth Closures

Soft Versus Stealth Closures

by David Klemt

Movie theater sign that reads "This is just intermission" temporary closure message

Restaurants, bars, and entertainment venues throughout North America are closing temporarily due to spikes in Covid-19 infections.

These closures are voluntary and out of an abundance of caution for staff, guest and community health and safety. While not in any way ideal, these voluntary closures are admirable.

Restaurants, bars, and other hospitality-focused businesses are cornerstones of their communities. Putting safety ahead of profits highlights dedication to service.

There are two types of temporary closures an operator can choose, soft and stealth or silent.

Soft Closure

Simply put, a soft closure is the counterpart to a mandated closure. No local, state or federal authority has forced the closure.

Instead, an operator decides it’s best for their staff and community for them to close their doors for a period of time. Currently, the timeframe I’m most often coming across spans Christmas to December 29 or 30.

So, what are the reasons operators are giving for soft closures? The following are the most common I’m encountering:

  • Rises in infections and hospitalizations in a given location.
  • Teams too small to provide service due to infections, mostly driven by Omicron currently.
  • A desire to protect teams from increased risk of infection.
  • Giving staff off from Christmas or Christmas Eve through December 29 or 30 to recharge for New Year’s Eve.

In Canada, some provinces are prohibiting normally lucrative NYE events. So, some operators are closing because it’s not worth attempting to operate as normal until restrictions expire.

Stealth Closure

The difference between a soft and stealth closure are subtle. However, it’s important to understand a stealth closure, and why many operators find them upsetting.

A stealth closure is essentially a type of soft closure. The main difference—which is causing a bit of an uproar—is that the operator doesn’t use their voice to tell the public why they’re closing.

Closing stealthily or silently doesn’t express to the public and lawmakers how dire the situation is for the industry, both locally and overall. Many operators find this unacceptable because the industry isn’t receiving the relief necessary to recover throughout 2022.

To some, a stealth closure lets state and federal legislators shrug off the fact that Covid-19 is once again decimating the industry. I can’t say that I disagree with this assessment.

Of course, operators are free to do as they wish. They must make the best decisions for their businesses, staff, and community.

However, an explanation of the factors that drove the decision sends a clear message that the industry needs relief. Coming together and pressuring lawmakers is the only way we’re going to get the help we need.

Image: Nick Bolton on Unsplash

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Current Restaurant & Bar Restrictions: USA

Current Restaurant & Bar Restrictions: USA

by David Klemt

Four medical face masks on a blue background

According to reporting worldwide, the Omicron variant of Covid-19 is surging and accounting for the majority of new infections.

Scientists, medical professionals, and some lawmakers and politicians are expressing concern. This is due to Omicron apparently being much more transmissible in comparison to other variants.

So far, it appears the current administration isn’t suggesting lockdowns. The CDC isn’t recommending restaurants and bars close down.

And dozens of states are not—for now—imposing new restrictions on people and businesses. However, there are nearly 20 states that have restrictions in place for restaurants and bars currently.

Of course, this situation is fluid and subject to change on a whim. As of the date of publication for this article, this is the currents state of the USA.

No Restrictions

There are, so far, 31 states have no state-mandated restrictions in place:

  1. Alabama
  2. Alaska
  3. Arizona
  4. Arkansas
  5. Delaware
  6. Florida
  7. Georgia
  8. Idaho
  9. Indiana
  10. Iowa
  11. Kentucky
  12. Louisiana
  13. Maine
  14. Michigan
  15. Minnesota
  16. Mississippi
  17. Montana
  18. New Hampshire
  19. New Jersey
  20. North Dakota
  21. Oklahoma
  22. Pennsylvania (Note: Indoor diners must wear masks. Businesses can require proof of vaccination.)
  23. Rhode Island
  24. South Carolina
  25. South Dakota
  26. Tennessee
  27. Texas
  28. Utah
  29. Vermont
  30. West Virginia
  31. Wyoming

Your state may be on this list. If so, it’s still important to remain knowledgeable of current restrictions and guidelines in your area(s) of operation.

Restrictions

The following 19 states have restrictions in place. Most commonly, these are mask requirements for indoor diners.

  1. California: Indoor diners must show proof of vaccination in Los Angeles and San Francisco. Regardless of vaccine status, indoor diners must wear masks.
  2. Connecticut: Unvaccinated required to wear masks indoors.
  3. Colorado: All indoor diners must wear masks. In Boulder County, businesses can apply to receive an indoor mask exemption if they require proof of vaccination.
  4. Hawaii: All indoor diners must wear masks.
  5. Illinois: All indoor diners must wear masks.
  6. Kansas: Requirements vary by county for indoor dining, so check current local guidelines.
  7. Maryland: Requirements vary by county for indoor dining, so check current local guidelines.
  8. Massachusetts: In Boston, indoor diners must wear masks regardless of vaccination status.
  9. Missouri: Requirements vary by county for indoor dining, so check current local guidelines.
  10. Nebraska: Requirements vary by county for indoor dining, so check current local guidelines.
  11. Nevada: Requirements vary by county but for the most part, all indoor diners must wear masks.
  12. New Mexico: All indoor diners must wear masks.
  13. New York: Indoor diners must show proof of vaccination, and masks are required to dine indoors. Unvaccinated required to wear masks indoors.
  14. North Carolina: Requirements vary by county for indoor dining, so check current local guidelines.
  15. Ohio: Requirements vary by county for indoor dining, so check current local guidelines.
  16. Oregon: All indoor diners must wear masks. If physical distancing isn’t possible in outdoor areas, masks must be worn by outdoor guests as well.
  17. Virginia: All indoor diners must wear masks.
  18. Washington: All indoor diners must wear masks.
  19. Wisconsin: Requirements vary by county for indoor dining, so check current local guidelines.

So Far, No Lockdowns

Some restaurants and bars have closed temporarily. These decisions are fueled by myriad factors, including spikes in infections in their markets or staff testing positive for Covid. So far, many of these businesses plan to reopen a day or two before New Year’s Eve.

It may be difficult to be optimistic at the moment. However, more than 70 percent of Americans have received one dose of an approved vaccine. Over 60 percent have received two doses. And nearly 20 percent have received a booster.

While alarmed, reporting shows that scientists and medical professionals aren’t anticipating nationwide lockdowns.

Image: Tamanna Rumee on Unsplash

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Global Trends 2022: Technomic

Global Trends 2022: Technomic

by David Klemt

"For the World" neon sign

What? You didn’t think we would focus only on Canada and America when it comes to 2022 trends, did you?

It’s difficult to keep up with restaurant, bar, and cuisine trends if you keep your focus too narrow.

Technomic is acutely aware of this. So, we took a look at senior research manager Aaron Jourden’s 2022 Global Restaurant Trends Forecast report.

One specific item, a coffee, is a striking standout. But we’ll get to that in a moment…

Operations

First, let’s take a look at restaurant and bar operations.

It’s not just North America that’s facing a labor shortage. And in 2022, Technomic expects this challenge to persist.

There are a few ways we can look at labor shortages and other challenges.

One: We can make no internal changes, pretending hope is a strategy and things will work themselves out magically. Two: We can get cynical and hostile, putting the blame on workers.

Three: We can look at the industry as a whole and operations in particular to make meaningful changes. Working conditions can be improved, leadership skills can be developed, operations can be streamlined, inventory can be cross-utilized and maximized. What are we offering workers and guests? What can be changed to reduce costs, and to increase traffic and revenue?

In other words, operators are in a position to adapt, innovate, and make meaningful changes that will ensure our industry’s long-term survival.

Labor, supply chain, and cost issues will continue in 2022. However, Technomic predicts that 2022 will be the year of measurable recovery.

Fading Ghosts

Technomic isn’t saying that ghost kitchens are going put to rest.

Rather, the firm expects the hype around them to fade away. To be sure, ghost (and virtual—not the same thing) kitchens enjoyed quite a bit more than 15 minutes of fame in 2020 and 2021.

However, we’ve seen recent reports of certain ghost kitchen chains facing logistic and legal troubles. The shine very much seems to be dulling on this pandemic trend.

Again, Technomic doesn’t think ghost kitchens will suddenly disappear. But the incessant coverage? That may be on the way out in 2022.

Food & Flavor Trends

Now, the fun stuff. If Jourden’s report proves accurate, menus throughout the world are going to see some intriguing additions:

  • Breakfast Comes Back. With people heading back to the office and children back in school, the breakfast daypart will return. Operators who did away with breakfast may see value in bringing breakfast food and beverages back.
  • Chicken or the Egg? Per Jourden’s report, the egg sandwich is in a position to knock chicken sandwiches off their pedestal. So, chicken wins either way. Jourden points to an interesting element of this prediction: Eggs are fun, allowing for puns on menus, marketing, and branding.
  • Regional vs. Global. A number of regional brands will stand out against global brands in 2022. Regional brands speak to what today’s consumer wants: locality and hyper-locality; sustainability and responsible business practices; and a focus on healthfulness.
  • What Coffee?! Jourden’s report identifies a number of truly innovative and intriguing F&B trends for 2022. The one that grabbed my attention immediately? Avocado coffee. Already popular in Indonesia, avocado coffee is expected to find its way onto menus across the globe. Other items Jourden thinks will gain traction in 2022: Pão de queijo (Brazilian cheese bread), Mexican flatbreads, vegetarian-friendly meat alternative halloumi, mutabal or moutabal (baba ghanoush’s cousin), regional comfort soups, and plant-based eggs.
  • Functional Foods. If you didn’t find avocado coffee intriguing, what about dessert foods imbued with healthful characteristics? Jourden identifies a few desserts that do more than satisfy a sweet tooth: Hand pies that boost immune systems, macarons made to enhance moods, and even ice cream that will enhance a person’s skin health and appearance.

Next year is going to be challenging. That simply isn’t up for debate. But it’s also going to be rife with opportunity and innovation for savvy operators.

Image: Jon Tyson on Unsplash

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American Trends 2022: Technomic

American Trends 2022: Technomic

by David Klemt

Wooden spoon loaded with salt

Two weeks ago, I reviewed and shared Technomic’s “Canadian Trends: Looking Ahead to 2022” report, and now it’s America’s turn.

Not too surprisingly, the US and Canada are similar in terms of a few 2022 trend predictions.

And while the Omicron variant of Covid-19 is causing some restaurants and bars to close, there is some good news from Technomic.

Salt

First, a difference between America and Canada. As you may recall from my review of Canadian predictions, Technomic predicts butter will be even more important next year.

Interestingly, salt is the big prediction for the United States. The reasoning is similar: people are seeking out comfort in these difficult times.

Technomic’s “2022: The Year of the Climb” report states flat out that, “Salt is the new fat.”

The industry intelligence firm predicts that salt will be increasingly important in kitchens—and on tables—in 2022.

For example, Technomic expects operators to focus salt-cured fish and meats. Of course, that doesn’t just meet a predicted consumer demand. Cured foods can be preserved for longer, which is appealing to operators.

Seaweeds, salt blends, and salty sauces will be used in the kitchen. According to Technomic, some of those will replace (or accompany) traditional salt on tables.

Going further, Technomic predicts that salt will find its way into cocktails. This can be in the form of salty ingredients or salt water, a trend from a few years ago.

Creative Prep

Let’s stick with the kitchen a bit longer.

This is one of the strongest similarities shared by the US and Canada. Technomic predicts that operators will need to focus on cross-utilization and creativity.

As you’ve likely already figured out, this is because of supply chain issues. The more ways items can be used without introducing new SKUs, the easier things may be for operators.

Some examples of cross-utilization suggested by Technomic:

  • Roasting, grilling, and blistering items normally served raw.
  • Pickling ingredients.
  • Fermenting items.
  • Turning some items into jams.
  • Aging some ingredients.

Labor Challenges

Obviously, the labor shortage is felt throughout North America. Unfortunately, this is another similarity when comparing Technomic’s American and Canadian 2022 trend predictions.

KRG Hospitality has addressed the need for the industry to make significant changes several times this year. In particular, founder and president Doug Radkey published a book, Hacking the New Normal, calling for change to improve working conditions and the industry’s long-term survival.

Technomic is suggesting the same. The firm predicts the following for 2022:

  • Wage increases across the board.
  • Benefits (healthcare, emergency child care, 401(k), and more).
  • Virtual hiring events.
  • Referral and signing bonuses.

However, more needs to be done. The industry doesn’t simply need to revamp its image, it needs to:

  • address—and not dismiss—issues raised by current hospitality professionals;
  • solve the problems that led to so many hospitality workers quitting jobs and giving up on the industry;
  • implement real solutions for the problems the industry has faced and, frankly, nurtured for decades.

And that’s just the start. If we don’t face our industry’s challenges head-on, there won’t be much of an industry in the future.

The Battle for Comfort

Yes, comfort food will be important next year. Hence the entire section on salt above.

However, when I mention comfort in this section I’m referring to personal comfort levels.

You’ve likely been hearing from industry peers and seeing on social media that a number of bars are closing until December 29 or December 30. These temporary closures are due to spikes in positive Covid-19 cases, mostly driven by Omicron.

Many Americans, eager to return to a semblance of their pre-Covid lives, want to spend time in restaurants and bars. However, people need to balance their comfort levels with their desire for social experiences.

In response, Technomic predicts that operators will need to balance the on-premise and off-premise. In other words, omni-channel operators must dial in their offerings.

Per Technomic, operators have to figure out their mix: interactive in-person experiences, takeout, and delivery.

Good News

Technomic is making two 2022 predictions that should come as a relief to operators.

First, Q1 of 2022, per Technomic, “will reveal a particularly strong year-over-year performance” in comparison to 2021.

Overall, the firm projects a 10.4-percent sales increase for 2022 when compared to 2019 sales.

There is, however, a caveat. We’ll have to take rising menu prices into account when analyzing this year’s and next year’s sales levels.

For those wondering which category is predicted to perform the best, Technomic identifies limited-service restaurants will recover quickest.

In contrast, full-service will see slower recovery. Business, leisure, and indeed “bleisure” travel will have an impact on full-service traffic.

So, 2022 isn’t going to magically return to pre-pandemic “normal.” However, should Technomic’s conservative sales prediction prove accurate, recovery is on the menu.

Image: Jason Tuinstra on Unsplash

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Hotel Trends to Watch in 2022

Hotel Trends to Watch in 2022

by David Klemt

Unlit hotel sign against blue sky background

Partially driven by the pandemic, in part driven by the march of innovation, these are the hotel (and motel) trends to watch in 2022.

As is the case with restaurant and bar trends from the last two years, these trends are likely to quickly evolve into industry standards.

Once slower on the uptake in comparison to other industries, hospitality is now embracing tech innovations rapidly.

Of course, not every 2022 and beyond trend relies on tech. However, most of the big changes involve tech in some way.

Below are the trends (soon to be standards) to watch and adopt next year.

Digital Room Keys

We do everything on our phones. So, why shouldn’t we access hotel and motel room keys via the devices always in our hands or pockets?

Many tech-forward hotel properties have made it possible to unlock hotel rooms via phone apps. As consumers feel more comfortable that it’s safe, secure and reliable, we can expect physical room keys to become obsolete.

One can also make the argument that doing away with millions of plastic keycards is a more sustainable practice.

Your Face is Your Passport

Points* to anyone who gets the movie I just referenced. (*Points have no value and are not redeemable for anything. But we think you’re cool for racking them up regardless.)

Some properties will make it possible to access a hotel room via biometrics. CLEAR travelers will already be familiar with this tech process.

In short, a guest will be able to unlock their room with their face. In terms of personalization—a guest expectation that’s only growing—facial recognition tech can instantly deliver on a guest’s temp, lighting, and other preferences.

I can also see this technology permitting guests to access clubs; club levels; health centers; pool areas; and order and pay for everything from food and beverage to their entire visit.

Of course, this form of tech relies heavily on people’s comfort levels concerning privacy. So, operators will need to prove themselves responsible with guest data.

Touchless Everything

Convenience works both ways. Guests want frustration-free visits. Operators and managers want to eliminate pain points wherever possible.

Guests are becoming familiar and comfortable with checking in via their phones or kiosks. In some hotels, guests navigate the lobby without ever engaging with an employee.

With the proliferation of digital assistants in homes, guests are already comfortable with voice-based functionality. Ordering room service, turning on the TV and streaming, playing music, drawing automated shades, adjust room temperatures and lights… Digital assistants eliminate several more touchpoints.

AI tech also means hotels can operate with smaller teams effectively. So, hotel design is likely to keep evolving: lobbies will look different, as will rooms, restaurants, bars, and other amenities.

Virtual Room Selection

Speaking of AI, what about VR?

Tech-savvy guests will appreciate being able to “tour” different room options in the virtual space. Such a feature can start a guest’s visit off on the right foot before they ever step onto property.

They’ll know they’re getting the features and views they want, setting up a positive experience. It’s likely VR room tours and selection will also help hotels upsell guests on rooms and features.

Cryptocurrency

There are already hotels and resorts out there accepting crypto. There’s no reason to believe this will fall out of favor any time soon.

In fact, it’s likely guests who prefer to pay via digital currency will be able to pay for every element of their visit with crypto. For these guests, a tech-heavy experience will be appealing:

  • Check out room options via virtual reality before booking;
  • Book their room in the VR space.
  • Utilize digital check-in, then unlocking their room via phone or facial scan.
  • Paying for premium amenities and F&B via crypto ties to biometrics.
  • Contactless check-out.

Guest Who

Unsurprisingly, business travelers were the first to return to hotels during the pandemic. A percentage of these guests sought out hotels that could offer them a work-from-anywhere option.

For the most part, these guests simply needed a fast, reliable WiFI connection. Of course, many of them chose properties for more leisure-focused amenities. This led to the coining of a new industry term: bleisure, a portmanteau of “business” and “leisure” travelers.

It’s likely hotels, motels and resorts will see more traffic from bleisure, solo, and staycation guests in 2022 and beyond.

Many guests will also make property selections based on a brand or group’s sustainability efforts. So, operators will need to ensure they’re being provably sustainable and not just green-washing to attract these guests.

As we can see, technology will feature heavily in the changing hospitality landscape. Initial outlay may be pricy, but as innovations become more commonplace, costs will be driven down. But offering the features that will increase traffic and guest spend? A healthy bottom line is worth it.

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Square: 2022 Threats & Opportunities

Square: 2022 Threats & Opportunities

by David Klemt

Square terminal in restaurant kitchen

As all hospitality professionals know, the past nearly two years is imposing rapid change on the industry, necessitating rapid, strategic adaptation.

The key word in the above sentence isn’t “adaptation,” it’s “strategic.”

Of course, it’s hard to make strategic choices without as much information as possible.

To that end, we’ve reviewed Square‘s recently released “Future of Restaurants: 2022 Edition.” This is the company’s second annual Future of Restaurants report.

Square partnered with Wakefield Research, surveying 500 operators and 1,000 consumers to identify 2022 threats and opportunities.

Threat: Labor Shortage

Most operators aren’t going to want to read this prediction from Square. However, we can’t identify and adapt for opportunities if we don’t acknowledge threats.

Per Square’s report, the labor shortage may never see a correction. In other words, welcome to yet another new normal.

More than 70 percent of operators say they’re facing a labor shortage, per Square. Just over 20 percent of available positions were, at the time the survey was conducted, unfilled.

Instead, operators will likely, according to Square, need to make operational and work culture changes:

  • Improve working conditions. For example, encouraging and acting on team feedback. Another example? Modernizing scheduling.
  • Ensure workers are being mentored and not simply managed.
  • Hire, train, assign tasks, and schedule more strategically to operate with a smaller team.
  • Offering incentives that entice higher-quality candidates to work for you.

One participant quoted in the Square report claims that QR code ordering dropped their labor cost percentage by 150 percent.

Threat: Lack of Tech

As SevenRooms suggested when looking forward to 2022, technology solutions can lessen the burden of labor shortages. That leads us to another big threat: failing to embrace tech.

Some operators bristle at the word “automation.” For many, it conjures an image of robots in the kitchen and delivering food to tables.

Obviously, we’re opposed to replacing staff with any form of automation. However, we support automating tasks if that means team members are better utilized.

Why not automate inventory? Why not automate online order filling? If it improves operations and the guest experience, automation is less threatening.

According to Square’s report, 62 percent of operators think automation is appealing for managing online, delivery, and contactless orders. Ninety percent of operators say that back-of-house automation—if staff can focus on more important tasks—is a good idea.

More than 90 percent think automated inventory is an appealing solution.

It has taken a lot of time for hospitality to catch up to other industries in embracing tech. But Square reports that 36 percent of restaurants upgraded their business tech in 2021.

Of course, automation will become a threat if operators lean too heavily into it and stop paying attention to detail.

Phrased another way, be tech-savvy, not tech-reliant.

Opportunity: Omni-channel

Square see implementing an omni-channel strategy as the way forward. In fact, their general manager for Square Restaurants, Bryan Solar, said the following:

“We see the time of the dine-in only or takeout only as largely done forever.”

Going omni-channel (diversifying) in the restaurant space means making online ordering and delivery important elements within the overall business strategy. To that end, Solar posits kitchens will grow in size to better handle online orders.

Square’s survey reveals some intriguing numbers:

  • 13 percent of consumers say they’ll avoid restaurants that don’t offer online ordering.
  • Among restaurants with online ordering, those channels generate 34 percent of their revenue.
  • Over the past year, 54 percent of restaurants either added or expanded online ordering channels.
  • Online ordering is likely here to stay: 69 percent of respondents plan to offer it post-Covid-19.
  • 24 percent of operators are planning to allow guests to order alcohol from them online.

Another interesting set of numbers pertains to first- and third-party delivery. As we’ve stated several times, we much prefer operators offer first-party or direct delivery. According to Square, 49 percent of operators plan go direct delivery. More than half—62 percent—will pursue third-party delivery. That suggests that some operators will offer both.

Opportunity: Direct Ordering

When it comes to engaging online guests, operators need to control the experience. As I wrote for another publication years ago, a restaurant or bar’s website is still very important.

This statistic proves that statement true: Per Square, 68 percent of online guests want to order via a restaurant’s website or app, not a third-party.

More than likely, a significant portion of those guests want to know they’re supporting a restaurant and its staff directly. Hence the importance placed on ordering via the website or their own branded app.

So, operators would do well to ensure their websites feature an ordering widget. Or, they can opt to have an app built (or at least skinned) for their business.

Opportunity: Kiosks

According to Square’s survey results, 79 percent of consumers prefer ordering from kiosks over ordering from staff.

Most consumers and operators likely associate ordering kiosks with fast food restaurants. However, other categories can also benefit from these devices.

Close to half—45 percent—identified it as a preference when ordering at a casual-dining restaurant.

And fine dining isn’t immune to the convenience of tech. A little over 20 percent of consumers prefer to order via kiosk in the fine-dining space.

Overall, kiosks speak to the guest desires for convenience and safety. More than a third indicated that ordering via digital menu is appealing because they don’t have to touch a menu someone else has touched. And 37 percent like a digital option because they don’t have to wait for a server to bring them a physical menu.

Eleven percent of Square survey respondents will avoid a restaurant if they don’t offer digital menus.

Nearly half (45 percent) of restaurants are planning to offer QR code menus post-Covid-19. Another benefit of digital menus is dynamic pricing. As costs fluctuate, operators can increase or reduce prices easily without printing new menus.

Outlook

Representing a stark contrast from 2020 survey results, nearly 60 percent of operators say the survival of their restaurants is a concern in 2022.

That’s still a high number but vastly lower than how operators answered about 2021. Last year, 92 percent of operators surveyed said they were worried about survival.

According to Square’s report, operators are looking past surviving and making long-term plans. That’s a welcome sign that confidence is improving.

To review Square’s “Future of Restaurants: 2022 Edition” report in its entirety, click here.

Image: Patrick Tomasso on Unsplash

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