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Bar Hacks: ReFire: Episode 1, Part 1

Bar Hacks: ReFire: Episode 1, Part 1

by David Klemt

Bar Hacks: ReFire podcast "black paper" background cover

In the latest episode of the Bar Hacks podcast, I introduce an innovative format called Bar Hacks: Refire, tackling real-world hospitality scenarios.

Joined by Bradley Knebel, client services director at Empowered Hospitality, the first episode offers a fresh perspective on managing bar and restaurant challenges.

The discussion kicks off with a focus on staff management, addressing the question of rehiring former employees. What may seem like a simple question proves to be anything but when Bradley and I break down the interplay of labor shortages, cultural fit within a team, and other key elements.

Our goal, as it will be with every episode of ReFire, is for listeners to gain valuable insights into the decision-making process behind giving second chances, and the impact of such decisions on team dynamics.

Whether you’re a bar owner, manager, or aspiring hospitality professional, this episode offers a wealth of knowledge and strategies to navigate the challenges of running a successful bar or restaurant.

Below, a transcript of the first part of the first episode of Bar Hacks: ReFire. Bradley and I jump into each scenario cold (for the most part), so the tone is conversational rather than formal. Cheers!

Transcript: Bar Hacks: ReFire: Episode One

David: Hey, welcome back to the Bar Hacks podcast… We’re gonna try something a little different today with the format, and I’m kind of playing around with it. I think I’m gonna call it Bar Hacks: ReFire because we’re giving people a second bite of the apple for a situation that maybe we read about that we don’t agree with, or that we can study and kind of revisit as a way to give some advice.

But my guest today is Bradley Knebel. He is the client services director at Empowered Hospitality. He worked for, I wanna say a decade, for Danny Meyer’s Union Square Hospitality Group until a couple years ago. He was the GM of Tatiana, and he helped bring that restaurant to, I believe, a three-star review in The New York Times. It has also been recognized as the number one restaurant in New York City during its tenure. And we met at this year’s Flyover Conference, me and Bradley, and we were hanging out with the founders of that show, Sarah Engstrand and Greg Newman. (And just a little drive-by on Dave Kaplan, as well, was hanging out with us, of Death & Co.)

We just had some really great conversations, and some good drinks, and really good pizzas at that one spot. They were, I think, wood-fired out of a food truck. Really good. So, I was doing my second ever public speaking engagement, which was still nerve wracking for me. I know I do a podcast, but this is completely different than talking to a room full of industry experts and industry newbies who are hoping I can tell them something good. And I think, Bradley, it was your first public speaking since Empowered Hospitality and doing your thing over there, and you and Kaplan were nice enough to sit in on my session and actually ask me questions that were helpful for everyone else, and yourselves.

So, I had this idea bopping around in my head about a different podcast format, because I was like, “Well, I do interviews, but I don’t always get the chance to address, you know, operator topics and server topics, and bartender and chef topics, because I want the audience to learn from the expert that I’ve got on.” That’s my very long-winded way of saying, welcome, Bradley, and let’s try this new podcast format.

Bradley: Hi, Dave, thanks for having me. I’m super excited about this. I think it’s going to be a really fun format, and I like the Bar Hacks: ReFire because we’ve all had to refire something that didn’t come out right. Or you accidentally overcooked something because something else comes up in the moment, and you just totally forget that you have something cooking. So, I love the name. And also, for your second public speaking, I thought you did incredibly well. I certainly enjoyed your conversation, and it was also so relevant to what you do, and kind of what you and I have talked about in the past of like, how do you build successful restaurants from the ground up and where do you start? And we’ve even joked about how many people we’ve met who just say, “I have money, I want to open a restaurant. Let’s do this,” and don’t realize how hard it is. So, really excited to dive in on some of these questions we have today, and thank you so much for having me on the show today.

David: Absolutely. And hopefully we do many more of these.

The ReFire Format

David: So, for the audience, what happened is, I sifted through… I’m basically going through online—there’s subreddits that, basically, everybody knows there’s a subreddit for everything. Good or bad, there’s a subreddit for it. Servers have a subreddit. Bartenders, chefs, bar owners, restaurant owners, hotel owners… I mean, they all have subreddits. And then there’s just, you know, forums all over the internet. You can find pretty much any topic. And so, I’m kind of sifting through these for real-world situations. And the caveat there is we’re gonna take these at face value, for the most part. Unless someone is like, “I’m just kidding,” like, “I got you all like in the comments…”

But we’re going to accept that these are really happening, because anyone in the industry knows if you’ve been in there, you know, for a few years, everything happens in this industry. So, a lot of this stuff is believable, even as outlandish as it might sound. The only thing I’m going to do, really, and Bradley’s going to do when we bring these topics up, is we’re not going to read them verbatim. We’re going to summarize. And the reason for this is I don’t want people to get doxxed. I don’t want them to, you know, get review bombed because someone decided, “I’m going to side with the server on this and let’s review bomb this operator.” You know, things like that.

So, we’re trying to be general but still get to the crux of the situation, and I’m sure they’ll get more specific as we go. I chose three to start with; hopefully, we get to all three. If we have a great conversation on, like, the first one or two, we’ll save the third one, or you know, however it works, for the next one. But that’s how this is gonna work. I’m sure it’ll evolve, ‘cause I’m not, like, a strict, like, “Oh, this is how it’s going to be” ‘cause it’s quote-unquote “my podcast,” because I’m not like that. We’re going to have fun with this.

Situation 1: Second Chances? Hire Hard, and Manage Harder

David: Situation one is interesting. So, this is written ostensibly by a bar and restaurant owner, and we can all relate to this, you know, the past couple years. This one said the past year or so he’s had trouble—actually, I don’t know if it’s a he or she, I shouldn’t even say that—they have had trouble finding and keeping staff, and when they do keep them, keeping them happy.

So, the kitchen has two or three cooks. It’s a relatively small team. When it’s busy in the restaurant there are, from what I can interpret, there are two cooks on. And when it’s slow, one cook is doing everything. Pretty standard for a small operation, I would say. (These days, you’re trying to control labor costs. My business partner Doug will say, “We don’t cut costs, we control them.” You start cutting things and it can get ugly, and it’s a whole other can of worms. I’m sure Bradley would agree with that.)

They had a new hire, seemed perfect. From what I understand, they were a good fit because everybody relies on one another. Like, “Hey, I need to take this day off. Can you take this?” It’s very…it seems informal. They can just talk to each other and get things done. But because It’s a small team, they need someone reliable, which is what they thought they had. This is a part-time worker; they had another job.

Within that first month, just a slew of, just, unfortunate events struck this new hire, and they could not, they couldn’t sustain it. And so, they gave no notice—they just quit. The operator didn’t freak out in the, in the post, was just like, “That’s really disappointing that they didn’t even, you know, text me like, ‘Oh, I can’t do this for another two weeks.’” But it does seem like real life got in the way, and this person wouldn’t probably have been able to reliably give, you know, two weeks or a week.

However, a couple weeks after that happened, the person came to get, I assume, their first paycheck. Their last, but I’m assuming their only, paycheck. And I don’t think the operator was there. They talked to the lead chef, and they apologized, and they expressed that they had stabilized everything, and just a bad time all at once, basically. And they would really love to come back. And, in fact, they would like to come back full time. So, I don’t know if that means that, the job they lost, they couldn’t get that back, or they were just like, “You know what? I actually like this place. I would like to be here full time.”

And so, the whole point of the post was, do you give second chances? Or would you give second chances to someone who just quit and then shows up for their paycheck? So, because of what Empowered does, specializing in HR and things like that for this industry, I figure we’ll go with you first on this topic and see what your initial thoughts are.

Tornado People

Bradley: Yeah, I think some things that are really interesting about this question, and thanks for passing it over, is it was a really short tenure before the person left. Right? So, this cook in question was there for, I think it sounded like a month. And then because of life… And I think it’s important in this instance to state that the incidents that led to this employee leaving were outside of the workplace, and I think that’s an important distinction here. So, there were things that happened in this employee’s personal life. It was losing a job and some other pretty unfortunate situations that led to them basically leaving with no notice, which is never a great sign. That feels really terrible. As an operator, you’re now scrambling. You thought you had your plans in place. And for such a small team, as you mentioned earlier, if it’s a team of three or four people, losing one is a massive part of that labor force.

So, I think the flag here is: Do you think it’s repeatable? Do you think that that one blip and moment was a really unfortunate circumstance? We’ve all met—I like to call them tornado people, where for good or for bad, things just spiral around them. Things are just never going well. There’s always: breaking this lease; I had to leave; I had to move out of this apartment; I just lost this job; you know, my partner just said this. And so, if it’s somebody who is just a tornado person, it’s going to kind of keep revolving back. So, I would be really worried with this employee and with this hire. Is this a pattern? Just a pattern you saw a single piece of that becomes unreliable?

And also, can you trust this person again? Especially because the kitchen is run on a singular body during, I’m assuming, lunches, Sunday, Monday, Tuesdays… You know, if this person is working a Monday dinner, how confident are you now that they’re going to show up? Labor is hard right now. You’re seeing a massive labor shortage, especially in the culinary world. There’s a huge disparity in the back of house right now, and it’s real. But you also need to make sure you’re hiring the right thing. And you mentioned earlier, I worked for Union Square Hospitality Group for Danny for a long time, and one of our big tenets, when it came to talent and came to people, was “hire hard, and manage harder.” It’s finding the right fit, and sometimes it can be really challenging. That does mean having to jump in. And as anybody who’s worked in this industry long enough knows, that sometimes mean you’re washing dishes by yourself at 1 am because your dishwasher stormed out, or your dishwasher is now covering a prep station, or, you know, one of the other crazy things that just happens in this industry.

So, my big thing to question here is, do you think this is a pattern? Is this something that’s going to happen again? Do you think you can trust this employee again? And then my biggest question also was, what was it about this employee that made them, quote-unquote, a perfect fit? Was it because they just didn’t complain and did their job well, or were they adding to the culture? So, if they were adding to the culture, if they were adding to the standards, if they were really building themselves in the space, then I, I think a second chance could be warranted, knowing all the life circumstances that went into it. But if this person was a good fit just because they came in usually on time, usually did what they were supposed to do, and left the station usually clean, I just… The risk of having another month spiral out to me is a really big concern, especially for a team that small, and for a team who has to operate on their own pretty consistently.

Two Minds

David: And then the other question is, so you, let’s say now we’re, we’ll bring you back. And then the question becomes, what kind of limitations do you put on this? Because I’m of two minds.

Okay, well, the apology does go a long way, I appreciate that. Maybe the owner wasn’t on property when the person came. And then the question in the back of my head would be, did you plan that so you don’t have to deal with the owner, and you apologize to the cook because maybe you respect other chefs, but you don’t really respect the owner, or you just didn’t wanna deal with the owner, or they just happen to not be there and you want to apologize to everybody who you affected. That’s possible.

But then you start doing the, you know, okay, well, we need to do, like, a 60-day probationary period, or a 90-day. And while I do agree with those, sometimes, I do think they do affect the culture, and they affect your employees. Like, “Right, I have this constant, like, just spotlight on me. I’m afraid to make any mistake.” Or what if legitimately something just happens? Like, okay, so their car broke down, and then they went to get the bus, and that’s running late, or it’s just stuck in traffic. They try to get there and they’re still late. Are you going to listen to them and not ding them? Or is it, “Okay, well, I don’t want to hear it again. You’re out of here.”

So, I do think probationary periods make sense, but not when you are laser-focused on them. You made a huge mistake and now we’re going to put these limitations on you. That’s not healthy, I don’t think, for either side. So, I maybe would do it like, hey, you can come back, but we’re going to go part-time first, and then I really don’t want…I’m not going to give you a lone shift; you’ll always be with another one of their cooks, and hopefully they show up for every shift.

But then it’s, you know, do the cooks get input? Does the owner get to go, “Okay, look, this is going to affect you directly. This is your team, essentially. Do you want this person back?” Because I do think that these are conversations you need to have with the team affected. And it does affect the entire team, but the direct team first. And then if you wanna ask the front-of-house manager, “What do you think of the situation? Like, do you trust the kitchen if this person’s here?”

So, I don’t think there’s, a silver bullet. I think it really is going to come down to a culture. And like you said, was this person a good fit because of culture, or were they a good-

Bradley: Fit because they were a body?

David: That’s…yeah, that’s the answer. If it’s because “I need this person here,” then if there’s only a month, I think you can survive another month looking for somebody, and hopefully they work out better. And I hate saying “hopefully,” ‘cause that’s so not strategic. Like, “Oh, I hope they work out.” But that really is part of it. Like you said, you hire hard.

But still, I mean, one of our industry peers thought they hired the right general manager for a restaurant once, and turned out they were doing drugs in the office, and stealing money. And I’m not vilifying the drug part, to be honest; that’s an issue that we need to address with a lot more compassion. But they were stealing money, and committing crimes on the property, and that was the issue. And none of that had even occurred to them because the interviews were so good, and the in-person interactions were so good when they were on site. So, it didn’t even occur to them until they didn’t show up and they’d been arrested, and the cops like, “Hey, does this person work for you? ‘Cause check all this.”

There’s always the X factor, and we have to put a lot of trust in people when we hire them. But that is also why I don’t know about you, but I don’t like the standard interview questions. Like, let’s just rubber stamp this. We ask these questions, we pencil-whip the answers, they got them, alright? Most people know how to answer an interview question to get, you know, a thumbs up from somebody.

So, I think a lot of the approach of, “Let’s hang out for a shift.” (And we have to pay them for the shift.) But like, are, they a good fit? Do I want to spend 13 hours with this person a day, or am I like, “Oh, get out of here”? Like, I can’t stand you already. Or—because we can train skills, we all know that—like you said, is it a body? And if it’s a body, I think you move on. Like, I appreciate the apology, but I don’t think it’s worth the headache if that’s the case.

“Probationary Periods are Fake”

Bradley: I agree. We, at Empowered Hospitality, advise clients that probationary periods are fake. And I think there are a few things that probationary periods always worry me because, especially depending on your jurisdiction, depending on where you are in the country, they may or may not be legal, they may or may not be enforceable. Empowered Hospitality operates mostly in New York City, but we have clients all over the country. But we advise all of our New York clients that probationary periods are fake. You know, you might say that you have a 30-day probationary period that you try to terminate somebody, but if you terminate without documentation, they can still go to unemployment court. And if you’re in a very pro-labor state like New York, in a pro-labor city like New York City—which isn’t a bad thing, I think this is a great thing; like labor needs protection—but you’re going to lose that case. Even if they’re on a 30-day probationary period, even if you put it in a handbook, even if you had them sign something… Probationary periods, I think, don’t work, in my personal, professional opinion. I think it just, it’s stage shifts, it’s having trails that should be paid, and in some places need to be paid, but, like, seeing them in action.

And, I also… One of the big flags here, too, is the first three months that somebody is in a job, not only is it when they’re learning the job, they’re learning the culture, they’re learning how to be successful, but it’s also when they’re on their best behavior. So, in this first 90-day cycle when this person is supposed to be on their best behavior, and it’s usually when you get the least amount of complaints and the most amount of, I don’t want to say production, but kind of, like, positive enforcement into the company, they’ve already come in, spiraled out, left with no notice, come back and apologize, and then tried to change the initial condition of their employment, which was part-time, into full-time. So, they’re basically coming back during the window that you’re really evaluating them as a long-term employee. They have basically said, “No, I want to change what I’m doing.”

And then I also have this, like, needle in the back that’s saying are they coming back full-time because they lost their other job that they can’t get back, and they just need something, and you’re the easy target? And all of this to say, if you get along with this person really, really well, you believe that it was an unfortunate event, they’ve shown track record either through resumes or through word of mouth that, like, it was just a blip, and you’re willing to take that risk? Absolutely. There’s so much risk in our industry. Every hire is a risk. Every time you buy a new product from a new vendor, it’s a risk. There’s so much risk in this industry outside of just financial. And so, if you’re willing to take that risk, then that’s a risk you’re willing to take. But it is a risk.

You know, it’s because also, what’s one thing we say all the time? It’s not the shining employee, and it’s not the employee that’s the worst, it’s the employee that just coasts. That’s the biggest detriment to your business. The biggest detriment to your business is the person who just does enough, but doesn’t do enough to actually, like, get anywhere, either probationary or excelling. And so, if you hire this person in and then they end up being one of these tornado people, but they don’t do anything like quit again on the spot, it’s gonna be really challenging to exit this person successfully without risks of the business. And right now, you’re at a moment that there is no risk to not hire them.

The Verdict

David: I probably wouldn’t hire back. And, not to sound like I’m not compassionate, because my gut reaction, personally, with no business involved, is, yeah, they apologized. It was a month. Like, they had a string of things that did not directly involve the company go wrong. Like, let’s try it again.

But on the business side, the operator side, I’m like, what probably wasn’t even a full month of work, you already survived without this person after this all happens. So, I would just keep looking. And as far as probationary periods, you’ll never see it listed in one of our manuals. We do onboarding manuals. We do training manuals. We do checklists. We do a ton of documents for our clients when they ask us to. We have never talked about a probationary period. It’s just like, nope: this is what we expect from you, we’re gonna document it if you don’t do it, and corrective action. It’s gonna start with, “Hey, just don’t do that again,” and then it escalates. So, we don’t do probationary: it’s just, “Please don’t break the standards. If you do, we can talk about it, ‘cause maybe the standard should change.” I mean that does happen, but it’s mostly just don’t do that. And then we’re gonna keep having to escalate this if you keep doing this.

Bradley: And you mentioned something that I think is really important: the day the employee starts, they’re your employee. And by all intents and purposes they’re the same. They need to be treated the same as somebody who’s been there for five years, right?

So, yes, they’re taking more coaching, and there’s more training. They’re taking more time as you’re adapting them to your culture. But that doesn’t mean that there’s any different standard that you can hold them to because they’re new in terms of, like, paperwork, termination process if you have a disciplinary process laid out within your handbook or laid out within any sort of documents or policies, especially if they sign off on them. So, making sure that every hire is a commitment, and you should be willing to put the time and investment into them, but you also have to hold all of them accountable in the same way.

Because I also worry—and kind of diatribing on this a little bit—I worry what message is to sending to the rest of your team, right? If he would have, I’m assuming this person’s a he, but if this person would have quit and said, “I can’t give you notice because of all of these things. I can try and pick up a shift here, but right now this isn’t working,” that’s one thing. But that’s not what happened in this case, you know? This person had a bunch of unfortunate situations happen to them outside of work. But then instead of trying to work with their employer to say, “Hey, I’m working through these things, can I take two weeks to figure this out? I know I just started.” But it was, “I’m gone.” And then a month later like, “Hey, I’m back. Can I get a job?” And so, if it was one of my clients, I would be hard pressed to advise “Yes.”

David: And it was a “he.” When they wrote it, it was a “he.”

“You have to protect your entire team”

Bradley: If it was a tough labor market, I could see there were definitely extenuating circumstances that could sway one way or the other. But just at face value, this feels like a really challenging rehire. Not because they don’t care about the person. I don’t think anybody gets into this industry because they don’t care about people. And I’m super empathetic, but I’ve been in restaurants for 20 years. It’s very transient. We’ve seen people come and go.

And just the risk that I would have taken 20 years ago… And on people, I take less now. I think maybe I’ve been burned too many times, or seeing too many patterns come through, but… At the end of the day, you feel bad for this one person, but you have to protect your entire team. And so when you’re the employer, sometimes the good of the whole team makes you make some tough choices, or makes you make choices that maybe you personally don’t agree with or personally make you feel, “Hey, I feel like I might be a bad person, but I can’t do this because I have 16 other people that work for me that show up every day that have been there consistently, and they need to have a team that shows up as well.”

I’m going to go back to the biggest flag here for me is that it was only one month of, like, good behavior. If this had been somebody who had been there for, like, three months, six months, a year and then had to quit, no notice, all these things happened in their personal life, and then came back and was like, “Look, I am so sorry life spiraled.” You also have a little bit more judgment on that person’s character. One month in, you don’t know who that person is.

David: Excellent point. Yeah. There’s no way that they—well, not no way—but it’s very low odds they knew exactly who this person is after, I think they said they worked like two or three shifts a week, part-time. So, you just don’t know.

So, yeah, I think both of us are agreeing that you just move on from this, not because you’re cold-hearted, but because it is the best decision for the company, and the team. Like I said, if you really have that culture where you have a meeting, like, “Hey, this is what happened, you all have a vote.” I mean, I’ve seen that happen; it does happen. If that’s the kind of culture, maybe it’s a different answer. But I don’t think the market is so bad that you can’t do without, you know, finding another, waiting another month, two months to hire another person who will fit the same role part-time with the possibility of going full-time. I don’t think it’s that dire.

Pass them On?

Bradley: If you, if a few heartstrings pulled out for this man and you, I still don’t know if I bring him in for the culture. But nobody in restaurants also doesn’t know anybody. It’s, “Hey, I don’t think it’s a good look to bring you back here. It doesn’t set a good precedent for the team. You know, I also am not sure this is, like, going to be a great long-term fit. But if you’d like, I’m happy to talk to somebody else, and see other places in the industry that you might be able to go.”

But that’d be a risk because then you’re putting your reputation on this person’s shoulders.

David: True.

Bradley: But if you trust that they’re good… I still don’t know that bringing them back on sets the right precedent for the company. You could help them in other ways instead of just bringing them back into your space, into your business.

David: That’s a good point. Yeah. You could definitely pass them on. But like you said, now you get the phone call from the person you passed them on, like, “What did you do?!”

Bradley: After a month, they’re like, “They just quit.” Exactly, yeah. I’d say history always repeats itself. And that is long-term and short-term. So, that would be my biggest concern here, outside a few others.

Listen to Bar Hacks: Refire, episode one on Spotify, Apple Podcasts, or wherever you listen to podcasts.

Note: Transcript provided by Eddy by Headliner, edited by author for clarity.

Image: Canva

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5 Books to Read this Month: December 2024

5 Books to Read this Month: December 2024

by David Klemt

Flipping through an open book

Our December book selections focus on nailing the fundamentals, an infamous drink, themed sips and bites, non-conformists, and more.

To review the book recommendations from November 2024, click here.

Let’s jump in!

The Hour of Absinthe: A Cultural History of France’s Most Notorious Drink

It’s undeniable that, until relatively recently, absinthe has been one of the most misunderstood beverages on the market. Who hasn’t heard or read that one of its most infamous effects is hallucinations? Well, it turns out that the people most famous for imbibing this legendary drink were just drinking so much of it, they were hammered out of their minds. There are no psychoactive ingredients in absinthe.

So, what else have we gotten wrong about “the green fairy”? This book answers that question, and so many more.

From Amazon: “At the height of its popularity in the late nineteenth century, absinthe reigned in the bars, cafés, and restaurants of France and its colonial empire. Yet by the time it was banned in 1915, the famous green fairy had become the green peril, feared for its connection with declining birth rates and its apparent capacity to induce degeneration, madness, and murderous rage in its consumers. As one of history’s most notorious drinks, absinthe has been the subject of myth, scandal, and controversy.”

Order your copy now.

The World Central Kitchen Cookbook: Feeding Humanity, Feeding Hope

We at KRG Hospitality support World Central Kitchen with donations, and have done so for years. WCK’s values align with our own, and its a charitable organization that truly supports people, and provides hope.

Their first-ever cookbook, aptly titled The Word Central Kitchen Cookbook, won a James Beard Award this year. Now, you can support the WCK and their campaigns, and recreate or find inspiration from their recipes. This book is well (and creatively) organized, with chapters titled Empathy, Urgency, Adaptation, Hope, Community, Resilience, and Joy.

From Amazon: “In their first cookbook, WCK shares recipes inspired by the many places they’ve cooked following disasters as well as inspiring narratives from the chefs and volunteers on the front lines. Photographs captured throughout the world highlight community and hope while stunning food photography showcases the mouthwatering recipes. ”

Get the spiral-bound version here!

Puncheons and Flagons: The Official Dungeons & Dragons Cocktail Book

There’s no doubt that Dungeons & Dragons has grown in popularity over the years. It appears this interest in the game can be credited at least partially to podcasts and videos of actual game play. In fact, I listen to three D&D-themed podcasts regularly, and try others from time to time…and I’ve never played the game.

If you operate a concept that encourages gamers to gather, play, socialize, drink, and eat, you’ll find value in the pages of Puncheons & Flagons. Alongside shareable snack recipes are cocktail and zero-proof drink builds. Basically, everything your gamer guests need to keep game play going strong.

From Amazon: “Entertain fabulously while you adventure in your next D&D campaign! Puncheons & Flagons is a delightful and fun-filled cocktail and snacks book filled with fare that would be served up at your character’s favorite tavern, inn, or market along the Sword Coast. All seventy-five dishes, created by a professional recipe developer, are easy to prepare and provide everything you need for hosting and entertaining with D&D flair.”

Hardcover available here.

Originals: How Non-Conformists Move the World

While we all need to understand and master the fundamentals, every operator and hospitality professional takes a personal journey to and through this business. We categorize concepts but each is different, and the vast majority are based on a unique vision. It’s a key driver for the team KRG Hospitality; we love learning about our client’s projects, where we can help, and working alongside them to bring their vision to reality.

In other words, this is an industry of non-conformists hellbent on making their own way. This book is a deep dive into the mindset that drives so many hospitality pros.

From Amazon: “Learn from an entrepreneur who pitches his start-ups by highlighting the reasons not to invest, a woman at Apple who challenged Steve Jobs from three levels below, an analyst who overturned the rule of secrecy at the CIA, a billionaire financial wizard who fires employees for failing to criticize him, and a TV executive who didn’t even work in comedy but saved Seinfeld from the cutting-room floor. The payoff is a set of groundbreaking insights about rejecting conformity and improving the status quo.”

Order the paperback here.

Bar Hacks: Developing The Fundamentals for an Epic Bar

It’s the last book roundup of the year and yes, I’m taking the opportunity to recommend KRG president and principal consultant Doug Radkey’s first book. In his this book he explains the importance of nailing the fundamentals in order to:

  • start your operator journey in the best possible position;
  • stabilize your business; and
  • scale when the time comes, if that’s what you want.

From Amazon: “This informative and conversational book is the perfect read for aspiring or seasoned bar, pub, lounge, or even restaurant owners, operators, and managers looking for that competitive edge in operations! If you’re looking for both fundamental and in-depth planning methods, strategies, and industry focused insight to either start or grow a scalable, sustainable, memorable, profitable, and consistent venue in today’s cut-throat industry–Bar Hacks is written just for you!”

Click here to get your copy today!

Image: Mikołaj on Unsplash

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Program for Unique Holidays: December 2024

Program for Unique Holidays: December 2024

by David Klemt

Restaurant or bar owner sitting at the bar, working on a schedule or calendar

AI-generated image.

Do you want to stand out from from other restaurants and bars in your area? Change how you think about your December holiday programming.

Several holidays are set against every date on the calendar, and this month is no exception. These holidays range from mainstream to esoteric.

Pay attention to the “weird” or unique holidays to raise eyebrows, carve out a niche for your restaurant or bar, and attract more guests. Why do what everyone else is already doing? Why program only around the same holidays as everyone else?

To provide a handful of examples, December boasts celebrations of flavored vodka, mountains, a famous fruit salad, and iced cookies. Those are all things you can get creative and program around, and celebrate with your guests.

Of course, you shouldn’t try to celebrate every holiday, strange or otherwise. Focus on the days that are authentic to your brand; resonate with your guests; and help you grab attention on social media.

You’ll find suggestions for promotions below. However, the idea behind our monthly holiday promotions roundup is to inspire you and your team to get creative and come up with unique programming ideas.

For our November 2024 holidays list, click here.

December 6: National Bartender Day

Short of scheduling bartenders off (should they want the day off, of course), what else can you do for your bar team to celebrate them?

Driving traffic to your bar and encouraging generous tips could be nice. Hit your social channels and suggest your followers come visit their favorite bartenders.

December 7: National Rhubarb Vodka Day

Tart when raw, sweeter when cooked, rhubarb most often delivers a bright flavor profile. Producers of rhubarb vodkas sometimes focus solely on the vegetable, others combine it with lemons and other ingredients to create complex, balanced expressions.

Two products to look into come from Mammoth Distilling and Chase Spirits Co. Of course, if you don’t mind missing the holiday this year, you can produce your own, and it only takes about a month to achieve the maximum effect.

December 9: National Pastry Day

Is your kitchen team skilled in the art of pastries? In fact, do you have a pastry chef on the team? If so, this is the day (and remaining month) to let them flex their creative pastry skills for starters, mains, and desserts.

December 11: International Mountain Day

This holiday is meant to celebrate not just mountains but the role they play in our lives. For example, the bounty of botanical ingredients we can find in mountainous regions. And, of course, the effects mountains can have on distillation and aging.

On this holiday, look to your back bar and kitchen. Whiskeys like Stranahan’s and TINCUP leverage the mountains, as do gins like Rainier Mountain Fresh Gin and the aptly named Mountain Gin. There are also tequilas like Mijenta and Teremana. On the kitchen side, look into local suppliers who forage in mountainous areas for items you can feature in dishes.

December 12: National Ambrosia Day

You know it. You love it…or maybe not. It’s a classic: ambrosia, the fruit salad that either activates your nostalgia or makes you recoil.

There are a few ways to approach this holiday. One, you can reproduce a family recipe for ambrosia, if you have one. Two, you can look up an old

December 16: National Chocolate-Covered Anything Day

I think this is one of those holidays that’s self-explanatory. Look at your menus and ask yourself, “What if I covered that in chocolate?”

December 21: National Coquito Day

Look, I get it: eggnog is a classic. Sure, there are people who like eggnog, and seek it out in December. However, there’s also the coquito, which is, in my opinion, a far better drink.

You can learn more about the coquito in an article I wrote about it a couple of years ago. And after you read that one, read about the carajillo, another cocktail that shines in December (and the rest of the winter months).

December 23: National Pfeffernüsse Day

Cardamom, cinnamon, nutmeg, ginger, black pepper, anise, mace, cloves, and sugar come together in a tidy package called pfeffernüsse. This iced cookie is perfect for the season, and if your kitchen has baking and dessert skills, they should be able to produce these fantastic cookies. Pfeffernüsse, as you may imagine, work well as a dessert and with after-dinner drinks.

December 28: National Card Playing Day

It’s very likely that the card- and board-game playing guests who frequent your restaurant, bar or hotel got some new games this month. If your concept encourages guests to gather and play such games, this is an excellent holiday for them to visit your spot and try out their gifts (while eating and drinking with friends and family).

December 30: National Bacon Day

It’s bacon. Go HAM and feature bacon everything, including drink garnishes.

Image: Microsoft Designer

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The 7 Principles of Hospitality

The 7 Principles of Hospitality

by Doug Radkey

Image of a resort pool in the evening, with palm trees and the hotel in the background

Let’s start with a simple but important question: When you hear the term “hospitality industry,” what first comes to mind?

For many, the first thing that comes to mind is….hotels. And while hotels are a significant part of hospitality, they’re definitely not the complete picture. In fact, the true essence of hospitality often transcends what we experience in a standard hotel environment.

Bars, restaurants, resorts, and entertainment venues are all spaces where the principles of hospitality should be experienced equally. Hospitality is about how we treat peopleour guests, visitors, our vendors, and even our team memberswith generosity, warmth, and genuine care.

Yet, in recent years, a shift has occurred. Many people I speak with in the industry feel that we’ve lost touch with the foundational principles of hospitality in a variety of settings. Whether it’s the focus on tech integration, rush to hire due to labor shortages, lack of proper onboarding and training, or clarity in what we do and why we do itsomething has gotten lost along the way.

As we move forward, it’s time for the industry to refocus on what hospitality truly means, and realign with the core principles that make this industry remarkable.

No matter the style of concept you operate or plan to operate, the seven principles of hospitality are the foundation of exceptional service and memorable experiences. These principles aren’t just for fine dining or five-star resorts, and they aren’t just fancy buzzwords. They’re actionable insights that can elevate any hospitality business.

1. Self-Awareness

Hospitality starts with you. The first step to great hospitality is understanding how our own behavior impacts those around us—our guests and our teams.

Practicing self-awareness isn’t always easy, particularly in high-pressure situations. So, ask yourself: How aware are you of the emotions you’re instilling in others during conversations, especially under stress?

Self-awareness is more than a personality trait; it’s a skill that helps create a warm, caring environment for guests. It’s about managing how we come across to others actively, and ensuring our actions align with the culture we want to build in our business.

To create a genuine sense of hospitality, we must start with a clear sense of self.

2. Guest Awareness

Read your guest’s energy, not just their appearance. The ability to read guests and anticipate their needs is crucial, but it goes beyond surface-level assumptions.

Hospitality isn’t about stereotyping based on appearance, accents, or perceived financial status. Instead, it’s about sensing the energy and mood they bring into your space.

When we understand the energy guests bring, we can adapt our approach, tailor our communication, and build genuine connections. This is hospitality in its most fundamental form: creating a personalized experience by being attentive and observant.

3. Connection

Hospitality is about meaningful connections. When you’re both self-aware and guest-aware, you can begin to tailor your interactions to each specific guest (and your staff, too).

Authentic, unique, and genuine hospitality is what leaves a lasting impression. Building a connection with guests isn’t just about providing a service. The key is to cultivate an experience that feels personal.

In his work, author Daniel Pink talks about intrinsic and extrinsic motivation, noting that connection is one of our core intrinsic motivators. We’re drawn to hospitality because of our natural desire to connect with others. It’s this connection that creates the most memorable guest experiences and fosters loyalty.

A business grounded in genuine connections will always stand out.

4. Authenticity

Be yourself. Guests can tell when you’re not—so stop the act.

Authenticity is essential in hospitality. Yet, so many teams I work with feel they need to become someone else on the floor, changing their voice or putting on a façade. Often, this stems from misguided career advice imparted early on that tells us we aren’t interesting enough as we are.

But here’s the truth: The most engaging and captivating version of yourself is the real one.

People connect with genuine personalities, not manufactured ones. Drop the façade, and bring your authentic self to every interaction. Guests sense authenticity, and it’s what will draw them back again and again.

So, next time you interact with a guest, do a reel for social media, or interview a potential team member, bring your authentic self. That’s the version of you with which people connect.

5. Anticipation & Attention to Detail

Tell guests what you’re going to do, do it, then tell them you’ve done it.

One of the secrets to providing an excellent guest experience is being prompt, responsive, and thorough in communication. A big part of managing guest expectations is being clear about what to expect. Tell guests what you’re going to do, keep them informed while you’re doing it, and follow up afterward.

Increasingly, guests want their visits to feel personalized. Whether you add small, thoughtful touches to a meal, or offering a personalized greeting in a hotel, attention to detail shows guests that they’re valued.

Anticipation of guest needs is what sets hospitality apart from other service-based industries.

6. Alignment

Help your team see how their role fits into the bigger picture. Alignment means connecting each team member’s work with their broader life goals and values. Many people in our industry might not see hospitality as their forever career, but that doesn’t mean their time with us can’t be meaningful.

Find out what matters to each team member, whether it’s professional growth, financial stability, or simply enjoying their work. Then, align their role with these values.

A team that feels connected to their work is more motivated, more focused, and more likely to deliver a higher level of service.

Alignment isn’t just about job roles, it’s about helping people find purpose and satisfaction in what they do. It’s crucial that we build team experiences just like we create guest experiences.

7. Presence

Be engaged in the moment fully with your guests. Presence means engaging completely with what you’re doing.

When you’re talking to a guest, be invested in that moment completely. Avoid distractions, scripted conversations, or rehearsed interactions. Genuine presence is about being open, honest, and interested in their experience.

For leaders, fostering a culture of presence is crucial. Every interaction you have with your team either reinforces or diminishes this value. Be mindful of how your behavior impacts others, and encourage your team to approach each guest with this mindset.

Celebrate moments of genuine connection, and provide feedback when things don’t go as planned. Presence isn’t just a skill; presence is a cultural value that transforms service.

Real-Life Example: The Solmar Resort

To illustrate these principles, I’d like to share a personal experience from the Solmar Resort in Cabo San Lucas, Mexico.

After a hurricane passed near the Baja Peninsula, David and I arrived for a business retreat, only to find the resort quieter than usual. Despite the calm, the staff maintained a vibrant and uplifting culture. They were fully engaged—no one was on their phones, no one was leaning or looking board, no one was gossiping, and the team members greeted each other with genuine joy and fist pumps.

Even with more staff than guests on the property, their sense of purpose and commitment to hospitality was evident. From dancing and singing while performing side duties, to the warm, friendly interactions with us as guests, the experience was unforgettable. The Solmar team embodied the “one-house” approach: everyone worked together seamlessly to deliver an exceptional experience.

During our visit, we experienced true hospitality in action, where every interaction was meaningful an, most importantly, intentional.

Reclaiming the Foundation of Hospitality

The seven principles of hospitality—self-awareness, guest awareness, connection, authenticity, anticipation, alignment, and presence—are not just theoretical ideas. These are actionable values that can transform guest experiences, and set your brand apart in a crowded market.

At its heart, hospitality is about people. It’s about creating an environment where our team and our guests feel welcomed, seen, and valued. If we want to elevate our industry, we need to return to these foundational principles, and train our teams to embody them in every interaction.

So, let’s commit to reclaiming the true essence of hospitality. Whether you’re running a bar, restaurant, or hotel, these principles provide a roadmap to building a culture of excellence that guests won’t soon forget. By focusing on experience and connection, we can redefine hospitality for a modern audience, and make it as impactful as it’s ever been.

Remember, hospitality isn’t just about serving food and beverage, or providing a bed. Hospitality is about creating memories that guests carry with them long after they’ve experienced your brand.

Image:

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Will this Drink Trend Lead Us into 2025?

Will this Drink Trend Lead Us Into 2025?

by David Klemt

AI-generated image of two purple Ube Cream Liqueur cocktails on a bar

AI-generated image.

One of the latest drink trends, a unique cream liqueur made from purple yam, may have the staying power to heat up through New Year’s Eve.

Now, when I describe it as unique, I’m not indulging in PR-speak, I mean it; there’s only one Ube Cream Liqueur. That includes, up to this point, additional expressions. Again, there’s only one Uber Cream Liqueur.

Making this liqueur even more exclusive is the fact that just one distillery produces it: Destileria Barako. They’ve done so since 2016. The distillery makes some other intriguing products as well. For example, there’s a lychee and lemongrass liqueur called Gayuma that also includes vacuum-distilled smoke distillate. Compelling…

So, what is Ube? Put very simply, it’s a lavender-colored cream liqueur made from ube. That’s a purple yam, and the liqueur itself calls the Philippines home. Interestingly, while the liqueur is lavender in color, ube can be violet, purple, lavender, and even white.

Before I go any further, a purple yam is not the same as a purple sweet potato. A purple yam will be, generally speaking, sweeter than its sweet potato counterpart, while being slightly more subtle in terms of flavor profile. Expect vanilla up front, with a subtle nutty undertone and finish.

And if you’re curious as to the meaning of “ube,” it translates from Tagalog to English as “tuber.” Quite a literal name for this special vegetable.

Okay, great. But what about the liqueur that appears to be popping up on craft-cocktail-focused menus in the US?

What is Ube?

On the surface, it’s an imported cream liqueur in an attractive, fashionable bottle.

Seriously, look at the Instagram post below; that’s going to grab guests’ attention.

 

View this post on Instagram

 

A post shared by Ube Cream Liqueur (@ubecreamliqueur)

Going deeper, Ube is made from the eponymous tuber, coconut husks, and sugarcane vodka. The ingredients are sourced from local farms and their communities throughout the islands that make up the Philippines (of which there are more than 7,600).

The liquid itself is rich and creamy, as one would expect. Like its namesake, Ube’s flavor profile includes vanila, and a subtle nuttiness. However, the sugarcane vodka is detectable, and coconut also shines through.

Along with being unique, it’s also versatile. Bar guests can’t really go wrong with ordering it in just about any configuration: neat, chilled, on the rocks, frozen, in a cocktail… Ube is highly adaptable.

And that, if I had to point to a characteristic beyond flavor and mouthfeel, is likely why this cream liqueur is rising in popularity.

Bar teams can get creative with it. Guests can enjoy it in myriad forms. Even the culinary team can get involved, as it’s an intriguing ingredient for dishes (particularly dessert).

Introducing guests to Ube isn’t a hard sell, either. The bottle and liquid itself are appealing to the eye. And while bar and culinary teams can really tap into their imaginations and talents to create quirky sips and dishes, it works in instantly recognizable drinks as well.

For instance, there’s the Ube Mudslide, Purple Russian (a variant of the White Russian, of course), Ube Colada, Ube Coco Old Fashioned, and even the Ubegroni.

Proceed with Caution

Here’s a a viewpoint with which you may be familiar: Once a trend emerges and people jump on it, it’s no longer a trend. Instead, it either experiences widespread adoption, reaches ubiquity, or dies.

Another viewpoint is that due to social media, trends come and go so quickly that even those that stick around for more than a few days tend to fall off quickly.

Search online for Ube and you’ll likely come across posts about finding it in the US that are a year or more old. It seems that the interest in this particular cream liqueur picked up in earnest around August of this year.

All that is to say this: For the most part, unless a person or group of people originates a trend, everyone else will be a step or two behind if they choose to jump on it. Most trends don’t even actually reach that status; they die in their nascent stage: a fad.

So, operators and their teams should be selective when a product, flavor, menu item, preparation, etc. is getting a lot of attention “suddenly.”

Chasing every trend isn’t efficient, and doing so flies in the face of consistency.

Important Considerations

There are several questions an operator should consider and answer before embracing any trend (or fad). Below, the assumption is that the trend involves a specific product.

  • Will this resonate with enough guests to make this profitable?
  • Does this trend work with our brand or are we forcing it to fit artificially?
  • Can it be obtained easily and consistently? If not, can we make our own housemade version? What will that cost, including labor?
  • How much will it cost to add this product to our inventory?
  • What will it cost to train the team to use this product?
  • Who will train the team on this product? What’s the estimated learning curve? What will training cost, in terms of product and labor?
  • In terms of pricing, what’s our projected profit margin per item made with this product? How many do we expect to sell on a daily, weekly, and monthly basis, keeping in mind that this is a consumer trend.
  • How quickly, with the above considerations (and more), can we actually leverage the popularity of this trend? Will it still be popular after we’ve completed our due diligence?

Don’t Abandon Your Standards

This caution isn’t aimed at embracing Ube specifically. Rather, this is advice for considering any trend, product, or menu item.

The standard is for operators to be obsessed with their numbers. Look at the top operators in the businessnot necessarily those earning the most awards, but those leading their bars and restaurants to long-term success, and focused on building generational wealthand you’ll see how much they focus on numbers; they know them inside and out.

All too often it can be tempting to drop standards when something goes sideways. Service goes awry, for example, and we try to take a shortcut to recover.

The same can be said for chasing trends. It can be tempting to just throw a new, trending item on the menu without crunching the numbers, taking a shortcut to leverage the trend as quickly as possible.

A savvy operator will consider the numbers before adding anything to their inventory and menu. It shouldn’t take long, and running the numbers will prove whether the trend is worth pursuing.

Image: Microsoft Designer

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Understanding TAM, SAM, and SOM

Unlocking Growth Potential: Understanding TAM, SAM, and SOM

by Doug Radkey

Image of a person in a suit superimposed over a chart and city skyline

After working through this with a client the other day, we thought it would be a good opportunity to explain the acronyms of TAM, SAM, and SOM.

These concepts can help your business start, stabilize, or scale.

Let’s be real: in the hospitality industry, understanding your market and its potential is paramount for sustainable growth and profitability. This is where the concepts of TAM (Total Addressable Market), SAM (Serviceable Addressable Market), and SOM (Serviceable Obtainable Market) come into play.

For bars, restaurants, and hotels, these metrics aren’t just marketing or financial jargon. Each provides critical insights that inform feasibility studies, shape marketing strategies, and guide business decisions.

Below, we’ll break down each of these concepts, illustrate how to calculate them, and explain their role in building effective strategies for your hospitality business.

The Definitions

TAM (Total Addressable Market)

TAM represents the overall revenue opportunity available if your business held 100 percent of the market share. It is the entire potential market size without any constraints like geography, budget, sociographics, or operational limits.

Example: For a new bar, the TAM would represent the total annual spend of all consumers in your market who drink out, regardless of their preferences, location within a region, or budget.

SAM (Serviceable Addressable Market)

SAM is the portion of TAM that your business can reach realistically, given practical limitations like geographic location, regulatory constraints, more targeted sociographics, and operational scope. Going further, SAM also considers factors that make a portion of the TAM unfeasible for your business to serve.

Example: Using the same bar concept, SAM would represent all the people within a certain radius who are willing to visit a bar with a similar concept, who can afford your menu, and who are within your reach given your physical location.

SOM (Serviceable Obtainable Market)

SOM is the segment of the SAM that your business can capture. This metric accounts for your competitors, market share estimates, and your unique ability to attract your ideal guests within your SAM.

Example: For the bar, SOM would be the percentage of patrons within your SAM that you expect, realistically, to convert into regular guests, taking into account competition, unique value proposition, and brand positioning.

Why These Metrics Matter

Each of these metrics provides a progressively more realistic picture of your business’ revenue potential.

Your business plan cannot be “targeting males and females between 25 to 45 years old.” You have to go much deeper than that to be successful.

TAM shows you the broadest possible opportunity, but SAM narrows it down based on serviceable factors. SOM gives you a realistic goal to aim for based on your most targeted factors.

Their Role in Feasibility Studies and Marketing Plans

In hospitality, feasibility studies are essential for understanding whether a business idea is viable.

When you’re assessing the potential of a new bar, restaurant, or hotel, the TAM, SAM, and SOM calculations give you quantitative data that can help you avoid common mistakes such as overestimating your market potential, or failing to identify target demographics accurately.

Feasibility Studies

  • TAM Analysis: Helps validate whether there’s a broad demand for your concept.
  • SAM Analysis: Identifies a focused portion of the market that fits within your operational range.
  • SOM Analysis: Helps set realistic revenue goals by factoring in competition and market positioning.

When preparing a feasibility study, using TAM, SAM, and SOM ensures that your projections are grounded in reality, giving potential investors or stakeholders confidence in your plan.

Marketing Plans

Once you’ve established a feasible market, TAM, SAM, and SOM inform your marketing strategies.

  • TAM helps you understand the entire universe of potential guests, useful for broader brand awareness campaigns.
  • SAM directs you to specific geographic or demographic segments for targeted campaigns.
  • SOM guides the creation of highly focused, competitive strategies to capture and retain market share in a specific segment.

By utilizing TAM, SAM, and SOM, your marketing plan becomes tailored, efficient, and likely to generate a higher return on investment.

How to Calculate TAM, SAM, and SOM for Your Hospitality Business

Step 1: Define Your Target Market

Before calculating TAM, SAM, and SOM, it’s essential to understand and define your target market. This includes analyzing demographics (age, income, education) and psychographics or sociographics (lifestyle, preferences, values).

For a local bar, restaurant, or hotel, understanding these details about your audience is crucial because your business’ reach will likely be local or regional.

If, for example, you’re opening an elevated cocktail bar, you might define your target market as:

  • Travelers aged 30 to 50 with disposable income between $70,000 and $90,000 per year.
  • Downtown business professionals who are interested in after-office food and beverages.
  • Individuals and tourists seeking upscale F&B and unique guest experiences.

Did you know? In Canada and the US specifically, there are over 65 sociographic or “tapestry” profiles that make up the fabric of our neighborhoods.

Step 2: Calculate TAM

To calculate TAM, consider the total market demand for your type of service.

  • Formula: TAM = (Total number of potential customers) × (Average annual spend per customer)
  • Example for a Bar: If the estimated number of people in your city who visit bars is 200,000, and the average spend per person is $500 annually ($41.67 per month), the TAM would be 200,000 × $500 = $100 million.

Step 3: Calculate SAM

To calculate SAM, refine TAM by narrowing down to the guests you could reach realistically based on your location, budget, and other factors. Use your sociographic/tapestry profiles to help.

  • Formula: SAM = (Total number of reachable guests within your service area) × (Average spend)
  • Example for a Bar: Out of 200,000 potential guests, suppose only 50,000 are within a 10-mile radius who are between 25 and 45 years old, who drink, and who make between $50,000 and $70,000 per year. SAM would be 50,000 × $500 = $25 million.

Step 4: Calculate SOM

Finally, to determine SOM, evaluate how much of the SAM you believe you can capture realistically. This often depends on your competitive positioning, your marketing effectiveness, and operational capacity.

  • Formula: SOM = (Total number of targeted guests you can convert realistically) × (Average spend)
  • Example for a Bar: If you believe you can capture 10 percent of your SAM, SOM would be 5,000 guests × $500 = $2.5 million.
  • Now, compare that to your daily, weekly, and monthly traffic projections and your daily, weekly, and monthly revenue projections. How close are you?

Sample Calculations for a Boutique Hotel Business

To illustrate these calculations, let’s imagine a boutique hotel in a medium-sized city:

  1. TAM Calculation:
    • Target market: All tourists visiting the city annually.
    • Estimated annual visitors: One million.
    • Average annual spend per tourist on accommodations: $1,000.
    • TAM = 1 million × $1,000 = $1 billion.
  2. SAM Calculation:
    • Focused market: Visitors who prefer boutique hotels versus chain flags who are between 22 and 42 years old.
    • Estimated visitors who prefer boutique hotels: 20 percent of TAM (200,000).
    • SAM = 200,000 × $1,000 = $200 million.
  3. SOM Calculation:
    • Realistically, the hotel expects to capture five percent of SAM based on its operations, the number of rooms, its daily rates, and expected occupancy rates.
    • SOM = 10,000 guests × $1,000 = $10 million.

Why Defining Your Target Market is Crucial

All that said, calculating TAM, SAM, and SOM is only effective if you have a clearly defined target market. Hospitality businesses must understand their audience’s demographic and sociographic details, which is why initial market research is so essential.

For instance, if a new restaurant targets health-conscious millennials, knowing their spending patterns, dining preferences, and local competition will make the calculations more accurate.

With detailed sociodemographic insights, you can more precisely estimate TAM, SAM, and SOM, creating a feasibility study that reflects realistic market conditions.

The Benefits of Using TAM, SAM, and SOM in Your Business Planning

By incorporating TAM, SAM, and SOM into your feasibility studies and marketing plans, you can make data-driven decisions that increase your business’ chances of success.

Here’s how each metric adds value for you and your business:

  • Informed Decision-Making: These metrics offer clarity for market potential, helping you avoid costly mistakes.
  • Financial Confidence: TAM, SAM, and SOM provide stakeholders with measurable data, increasing confidence among investors or lenders.
  • Efficient Marketing: Focusing on SOM in marketing efforts allows you to deploy resources effectively, targeting guests you are most likely to convert.
  • Adaptability: These metrics aren’t static; you can adjust TAM, SAM, and SOM as market dynamics change, ensuring your business stays relevant.

Why Now is the Time to Embrace TAM, SAM, and SOM

In a competitive hospitality landscape, using TAM, SAM, and SOM can provide a strategic advantage. By understanding your true market potential, you can design a feasibility study and marketing plan that align with realistic growth goals.

While TAM shows you the big picture, SAM and SOM bring clarity to your specific opportunities, helping you prioritize resources and strategies that will yield the best return.

As you move forward with planning, remember: calculating TAM, SAM, and SOM is not a one-time task. Updating these metrics regularly as your business and the market evolve can provide insights that will keep your brand relevant and profitable.

My final thoughts: Before you dive into launching a new bar, restaurant, or hotel, take the time to do a deep dive into TAM, SAM, and SOM. It’s not just about understanding your market; it’s about maximizing your opportunity to stabilize and then scale within it.

By leveraging TAM, SAM, and SOM, you’ll be equipped to create a hospitality concept that doesn’t just survive but sets a new standard for success.

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Program for Unique Holidays: November 2024

Program for Unique Holidays: November 2024

by David Klemt

Restaurant or bar owner sitting at the bar, working on a schedule or calendar

I don’t know why but AI seems to think anyone who owns a restaurant or bar has a beard. AI-generated image.

Do you want to stand out from from other restaurants and bars in your area? Change how you think about your November holiday programming.

Several holidays are set against every date on the calendar, and this month is no exception. These holidays range from mainstream to esoteric.

Pay attention to the “weird” or unique holidays to raise eyebrows, carve out a niche for your restaurant or bar, and attract more guests. Why do what everyone else is already doing? Why program only around the same holidays as everyone else?

To provide a handful of examples, November boasts celebrations of the bold and pungent, Gose beer style, stuffing, and metal. Those are all things you can get creative and program around, and celebrate with your guests.

Of course, you shouldn’t try to celebrate every holiday, strange or otherwise. Focus on the days that are authentic to your brand; resonate with your guests; and help you grab attention on social media.

You’ll find suggestions for promotions below. However, the idea behind our monthly holiday promotions roundup is to inspire you and your team to get creative and come up with unique programming ideas.

For our October 2024 holidays list, click here.

November 8: Cook Something Bold and Pungent Day

This is the day to shine a spotlight on menu items that are heavy on aromatics, intense flavors, and presentations that demand attention.

November 9: Chaos Never Dies Day

If your bar or restaurant has a chill, relaxing vibe, this may be a great holiday for you and your guests. Chaos Never Dies Day is about mindfulness, relaxation, de-stressing, and, if healthy, socializing with friends and family.

Encourage your guests to visit your venue, silence their phones, and escape for a while.

November 10: Area Code Day

Area Code Day is an excellent time to celebrate your community. Showcase the local producers and collaborators with whom you partner, for example.

November 11: National Metal Day

Does your bar play metal? Do you feature live metal bands? Would you say your overall theme and ambiance is metal? Have I got a holiday for you…

November 15: National Philanthropy Day

Organize food, coat, or clothing drives. Highlight a charitable organization that your bar, restaurant, or hotel supports. This is one of the best days of the year for you and your guests to get involved with organizations that improve the community.

November 17: International Happy Gose Day

Several centuries old, Gose comes to us from Germany. Generally speaking, this wheat beer is tart, sour, spicy, and salty. Of course, craft brewers love to make styles their own, so there are Goses out there with other dominant characteristics.

Fans of this style of beer will tell you that it pairs well with everything. However, when developing your Gose promotion, keep grilled meats, seafood, roasted root vegetables, and tangy, powerful cheeses in mind.

November 21: National Stuffing Day

We all know that person whose main food focus on Thanksgiving (American, Canadian, or otherwise) is stuffing (or dressing, depending on preparation and pedantry). Sure, the other dishes are great, but they may just stab someone in the hand with their fork if they get between them and stuffing. In fact, we may be that person.

In the lead-up to Thanksgiving, task your kitchen with creating an irresistible stuffing (or dressing), and preparing it in multiple ways: waffled, sandwich, etc. Who knows? It may just lead to Thanksgiving Eve takeout orders.

November 22: National Farm-City Week

People celebrate this week to honor the farmers who help make American Thanksgiving possible. Of course, farmers deserve recognition for more than just one holiday.

This is a fantastic time of year to call attention to the farms and farmers with whom your restaurant partners.

November 29: Sinkie Day

Okay, so this one could be interesting. With all the prep and formality that can go into some people’s Thanksgiving celebrations, Sinkie Day offers welcome casualness. In simple terms, it’s about grabbing a bite while standing over a sink. Basically, rejecting a dining table, and eating anywhere else.

One spin you and your restaurant team can put on Sinkie Day is to highlight the items on your menu that are transported and eaten just about anywhere easily.

November 30: National Mason Jar Day

Cocktails, their alcohol-free counterparts, soft drinks like teas and sodas, kombucha, desserts, even salads… There’s a lot a creative bar or restaurant team can do with menu items, mason jars, and presentations.

Image: Microsoft Designer

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5 Books to Read this Month: November 2024

5 Books to Read this Month: November 2024

by David Klemt

Flipping through an open book

Our November book selections focus on recognizing your own potential, developing and enhancing culinary and cocktail skills, and leadership.

To review the book recommendations from October 2024, click here.

Let’s jump in!

Soups, Salads, Sandwiches: A Cookbook

Who doesn’t appreciate dining on a soup, salad, and sandwich? It’s one of the most famous food-based trinities in the world. Each of these individual items is a blank canvas for creativity from your kitchen team; they can be as simple or complex and inventive as you and your team desire. A soup, salad, or sandwich can introduce guests to new flavors. When presented as a trio, they can also tell a cohesive, compelling culinary story. In this aptly named cookbook, Matty Matheson tells interesting stories, and shares more than 120 recipes.

From Amazon: “Packed with character, personal stories, 126 scrumptious recipes, and vivid photographs of a day-in-the-life with Matty and his family, Soups, Salads, Sandwiches will have you fearlessly whipping up your own combinations in the kitchen.”

Order your copy today on Amazon, or wherever you get books.

Unsliced: How to Stay Whole in the Pizzeria Industry

Mike Bausch, the author of Unsliced, was one of the first guests on the Bar Hacks podcast. If you’d like to give his episode a listen, it’s number number 18 (Spotify link | Apple Podcasts link). In his book, Bausch lays everything out for pizzeria operators, from leadership and marketing to adjusting your mindset.

These two sentences from the description of Unsliced say it all, and they resonate with me and my partners at KRG Hospitality: “It’s hard not to get discouraged in this business. But with the right perspective, smart systems, and hard work, your restaurant can thrive.”

From Amazon: “If you own a pizzeria, you know something most people don’t: the pizza business is more cutthroat, stressful, and multifaceted than Wall Street. Every day is a constant struggle to manage overhead, attract loyal customers, stand out from the pack, and keep your employees motivated.

“Running a pizzeria is hard. But it doesn’t have to be as hard as you think.”

Pick this book up here.

The Bartender’s Pantry: A Beverage Handbook for the Universal Bar

Published earlier this year, The Bartender’s Pantry by Jim Meehan and Bart Sasso offers a unique departure from the standard cocktail recipe book. As you glean from the word “pantry” in the title of this book, Meehan and Sasso encourage bartenders to take a culinary approach to crafting drinks. However, The Bartender’s Pantry is also aimed at cooks. Really, this is a great book that should help bring the front and back of houses together. There are more than 100 recipes, and this book is available in a flexibound version, which makes it infinitely cool.

From Amazon: “Each chapter features artfully illustrated recipes incorporating the featured ingredients that bring the reader into the kitchens of some of the world’s most revered bartenders, baristas, importers, and chefs. Their innovative takes on traditional recipes including horchata, matcha, Turkish coffee, sorrel, kvass, and ice cream are followed by full-page photos of over 50 cocktails that incorporate them including modern classics like the Gin Basil Smash, Earl Grey MarTEAni and Penicillin.”

Grab the flexibound version from Amazon.

Beyond the Hammer: A Fresh Approach to Leadership, Culture, and Building High Performance Teams

Author Brian Gottlieb identifies three challenges that just about every business faces: leading staff to take ownership of the work they do; friction between departments or separate teams; and producing inconsistent results. He also presents a strategy in Beyond the Hammer to overcome these challenges, in addition to high employee turnover, and burnout.

From Amazon: “These common issues create high turnover and force managers into crisis mode where they’re consumed putting out daily fires. Over time, the very nature of the business changes and a new culture emerges; one shaped by the lowest level of acceptable behavior.”

Hardcover available on Amazon.

Hidden Potential: The Science of Achieving Greater Things

If you’ve listened to episode 100 of the KRG Hospitality-produced Bar Hacks podcast (Spotify link | Apple Podcasts link), you’ve heard Tako Chang talk about discovering the Double Chicken Please team’s hidden talents. Moreover, you’ve heard how impressed she is with the team’s skills, and encouraging each member to develop them further. That’s an example of great leadership.

This book, written by organizational psychologist Adam Grant, addresses finding and exploring your own potential; doing the same for others; and why we should focus more on learning than working ourselves to the bone to achieve success.

From Amazon:Hidden Potential offers a new framework for raising aspirations and exceeding expectations. Adam Grant weaves together groundbreaking evidence, surprising insights, and vivid storytelling that takes us from the classroom to the boardroom, the playground to the Olympics, and underground to outer space. He shows that progress depends less on how hard you work than how well you learn. Growth is not about the genius you possess—it’s about the character you develop. Grant explores how to build the character skills and motivational structures to realize our own potential, and how to design systems that create opportunities for those who have been underrated and overlooked.”

The hardcover costs less than the paperback right now on Amazon.

Image: Mikołaj on Unsplash

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Why Your Inner Circle Matters

Why Your Inner Circle Matters

by Jennifer Radkey

A person standing in water, creating a circle and sparks with steel wool and fire

Is your inner circle creating sparks of inspiration, or burning you down?

In the world of hospitality, where every interaction counts, there’s one factor that could be influencing your success more than you realize: the people with whom you surround yourself.

As a hospitality professional, you work in highly social environments, so it’s essential to understand the impact your inner circle has on your mindset, and the success of your business.

How can the energy and attitudes of those around you shape your success? And how can being intentional about your relationships elevate both your personal and professional life?

Let’s take a closer look.

The Power of Influence

We’ve all heard the saying, “You are the average of the five people you spend the most time with.”

It’s a concept that rings true in both personal and professional settings. In the hospitality industry, where relationships and team dynamics are crucial, the people you spend your time with can have a major impact on your mindset.

Your inner circle can either lift you up or drag you down, influencing your thoughts, behaviors, and even your beliefs about what’s possible. When you need to maintain a positive mindset, this influence can make or break you.

Energy and Attitude: The Contagious Effect

Ever notice how working with someone who’s upbeat and energetic can make a shift fly by? Or how spending time with a negative, cynical colleague can drain your motivation?

The energy people bring to the table is contagious. Over time, it seeps into your mindset.

Think of your mindset like a garden. If you plant yourself in rich, fertile soil—surrounded by positivity, encouragement, and growth—your mindset will flourish. But if your garden is full of weeds—like negativity, doubt, and pessimism—it becomes much harder to grow.

In hospitality, where guest service relies heavily on positivity, allowing negative energy to take root can stifle your personal growth, and your ability to grow a loyal guest base.

As a team leader, your mindset sets the tone for the entire team. Show up to team meetings with a negative mindset and your meetings will sound like reprimands and demands instead of inspiration, growth, and encouragement.

The Role of Supportive Relationships

One of the most powerful ways others influence us is through their support—or lack thereof. In a high-pressure environment, having people around you who believe in your potential, challenge you to improve, and celebrate your wins can be transformative.

Supportive relationships remind you of your goals when you’re feeling down, push you to persevere when things get tough, and keep you focused in the chaos.

On the opposite side, if you’re surrounded by people who doubt your ambitions or criticize your efforts, it can be difficult to stay motivated. In the long run, these negative influences can damage your confidence, and make you question your ability to achieve your goals.

In an industry where confidence is crucial to providing top-notch service and leading successful teams, the people you surround yourself with can either enhance or diminish your sense of worth. By aligning yourself with those who inspire and uplift you, you’ll be better equipped to maintain a positive mindset, even in challenging situations.

Setting Boundaries to Protect Your Mindset

So, how do you ensure that the people around you contribute positively to your mindset and success? It starts with setting boundaries.

Boundaries are essential for protecting your mental and emotional well-being. If someone’s energy is toxic or draining, it’s important to limit the influence they have over you.

In business, where teamwork is essential, setting boundaries might not mean cutting people out of your life completely. However, it does mean being mindful of how much time and energy you invest in relationships that aren’t serving your growth. It also means being aware of the energy of a person when choosing whether to have them join your team or not.

Protecting your mental space ensures that you remain focused on your goals, and can give your best to your team, your guests, and yourself.

Seeking Growth-Oriented People

To thrive in both business and life, it’s essential to seek out people who are growth-oriented; those who are always looking to improve themselves, who push you to think bigger, and who motivate you to take action.

Building a network of ambitious, driven individuals within the hospitality industry can be transformative.

When you surround yourself with people who are passionate about growth, their energy becomes contagious. They’ll challenge you to step outside your comfort zone, pursue new opportunities, and push past self-imposed limits.

Taking Action: Evaluate Your Circle

Take a moment to reflect on the people in your life, particularly within your professional circle.

Who are the five people with whom you spend the most time? How do they make you feel? Do they lift you up, or hold you back? Are they helping you move closer to your goals, or keeping you stagnant?

This exercise can be eye-opening, and it’s an essential step in building a more positive, growth-focused environment for yourself. Remember, only you can choose what mindset you want to adopt, and how you will allow others to influence you.

Final Thoughts: Be Intentional About Your Circle

As a hospitality professional, your mindset is key to your success. The people around you play a major role in shaping it.

Be intentional about surrounding yourself with those who uplift, inspire, and challenge you. Protect your mental space with boundaries, and actively seek out relationships that align with your goals and values.

If you’re looking for a supportive community of like-minded hospitality professionals, join us in The Collective, a group coaching program designed to help you achieve your goals with clarity and confidence. Together, we’ll create an environment that supports both personal and professional growth.

Remember, you have control over who you allow into your life, and how much influence they have. Choose wisely, and watch your success story unfold.

Cheers to personal and professional well-being!

Image: Harry Shelton on Pexels

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Shifting Focus on KPIs

Shifting Focus on KPIs

by Doug Radkey

Person holding up fingers, making the "focus" film or photograph gesture

Key Performance Indicators (KPIs) have long been the cornerstone of measuring success in business, particularly in the hospitality industry.

Restaurants, bars, and hotels rely on these metrics to track occupancy rates, average ticket prices, cost of goods, and guest satisfaction scores, among many others. However, as the industry evolves, so too must our understanding of what truly drives sustainable success.

The traditional KPIs measure outputs—numerical results that often focus on profitability, efficiency, and growth. But as hospitality businesses become more guest-centric and employee-driven, we need to rethink what KPIs really mean.

Instead of focusing solely on these cold, hard numbers, we should be emphasizing what I call the new KPI: Keeping People Informed, Involved, Interested, and Inspired.

This shift acknowledges that success in hospitality is not just about what’s measurable on a spreadsheet but also about engaging employees, nurturing guest and vendor relationships, and fostering a culture of collaboration and growth.

This article, which I have been planning to write for quite some time now, will explore how redefining KPIs to prioritize keeping people informed, involved, interested, and inspired can transform the hospitality industry, leading to more engaged teams, happier guests, and better business outcomes.

KPI: Keeping People Informed

In any form of hospitality business, from boutique hotels to bars and restaurants, the foundation of success lies in clarity, transparency, and communication.

Keeping people informed, whether they’re employees, guests, or stakeholders, is key to fostering trust, loyalty, and operational clarity.

Informing Employees

Despite the growth in technology, employees are still the lifeblood of the hospitality industry. Informed employees are empowered employees.

When they understand the bigger picture—what the business is trying to achieve, and how their role contributes to that goal—they feel a greater sense of purpose and motivation.

In the past, KPIs often stayed in the boardroom. If they left the boardroom, they remained among the leadership team on the floor. So, either way they were detached from true day-to-day operations.

A shift toward the new KPI requires involving employees in the business’ key metrics, and sharing relevant information transparently.

For example, when a hotel shares its Total Guest Revenue Management goal and explains the efforts needed to improve these numbers, every department can align their strategies to support this objective. Housekeeping understands the need for timely room turnovers. The marketing team knows where to focus their efforts. Guest services is equipped to handle the flow of on-property guests more efficiently.

Practical Steps:

  • Hold regular meetings to discuss current business performance and future goals.
  • Share performance dashboards that are accessible and understandable to all staff members.
  • Break down KPIs into department-specific insights, so each team knows how their performance impacts the overall business.

Informing Guests

On the guest side, keeping them equally informed is crucial in today’s digital age, where transparency and real-time information drive decision-making.

Whether that means updating guests on room availability, menu changes, or special promotions, being proactive with information helps manage expectations, and creates a seamless guest experience.

Hotels and restaurants can use digital platforms to keep guests informed, providing them with personalized experiences. For instance, a hotel app that informs guests about spa availability or the restaurant’s current waitlist times ensures that each guest feels valued, and in control of their experience.

Practical Steps:

  • Implement digital platforms, like apps or SMS services, that keep guests informed of their bookings, promotions, and real-time service updates.
  • Train staff to be communicative and transparent about wait times, service delays, or special offerings to manage guest expectations.

KPI: Keeping People Involved

Engaging with employees and involving them in the decision-making process is crucial for motivation and a sense of ownership.

KPIs should not be top-down metrics that only the leadership team values. Instead, they should provide a framework that allows employees to contribute actively, and understand how their efforts influence success.

Involving Employees

In the traditional sense, KPIs are viewed as targets employees must meet, and are provided without much context.

Keeping people involved means allowing employees to help define these targets, along with the pathways to achieve them. Involving employees and allowing them to set their own performance indicators gives them ownership of their work, and makes them feel accountable for outcomes.

For example, a restaurant can engage its service staff by involving them in discussions about upselling, suggesting specific strategies that they feel comfortable executing. They become part of the plan to improve the average ticket price or increase sales of high-margin items, rather than feeling like they’re being micromanaged.

This approach cultivates a culture of continuous improvement, collaboration, and engagement. When employees feel that their input is valued and implemented, they are more likely to be motivated to contribute actively, and innovate within their roles.

Practical Steps:

  • Host brainstorming sessions with employees to identify goals, challenges, and solutions. This fosters a sense of collaboration and inclusion.
  • Implement feedback loops where staff can share what’s working and what’s not on a consistent basis. Adjust KPIs based on this real-time insight.

Involving Guests

In the hospitality industry, guest involvement often determines the quality of their experience. Personalized service, where guests are involved in customizing their stay or dining experience, results in higher satisfaction levels.

From hotels offering customizable room amenities to restaurants allowing diners to build their own experiences, guest involvement directly correlates to guest loyalty and satisfaction.

Practical Steps:

  • Offer personalized experiences, such as allowing hotel guests to choose room preferences, or dining guests to customize their meals and dining experience.
  • Utilize surveys, post-stay feedback apps, or other mechanisms to involve guests in shaping future services and experiences.

KPI: Keeping People Interested

Maintaining interest and enthusiasm among employees and guests alike is vital for long-term success.

The new KPI focuses on creating a sense of purpose, engagement, and excitement about the work being done.

Keeping Employees Interested

Employees who are interested in their work are far more productive. They’re also committed to delivering high-quality service.

Traditional KPIs can sometimes feel disconnected from day-to-day tasks. Reframing KPIs to focus on team engagement and purpose helps keep employees interested in their roles. This is where challenging yet meaningful KPIs come into play.

For instance, a restaurant’s kitchen staff can be challenged to reduce food waste by five percent. Instead of just announcing this target, the leadership team should encourage the kitchen to come up with the strategies to achieve it. Whether that means repurposing on-hand ingredients for an LTO or improving portion control, the involvement and challenge keep staff interested and motivated.

Reviewing progress regularly, celebrating milestones, and recognizing achievements enhances employees’ engagement and satisfaction, keeping them interested in their contributions to the team’s success.

Practical Steps:

  • Implement monthly or quarterly team challenges that are tied to larger business objectives, with recognition or rewards for achieving these targets.
  • Organize regular check-ins to discuss career development, skill development, and other methods of keeping employees passionate about their work.

Keeping Guests Interested

The modern guest is no longer interested in just receiving a meal or room; they’re seeking a memorable experience. Hotels, bars, and restaurants must innovate constantly to keep guests coming back.

Whether through offering seasonal menus or LTOs, hosting unique on-premise events, or incorporating local culture into the experience, keeping guests interested requires ongoing creativity.

Practical Steps:

  • Rotate seasonal offerings or limited-time events to keep the brand fresh and exciting.
  • Personalize guest experiences based on previous stays, orders, or preferences.

KPI: Keeping People Inspired

Finally, people—employees and guests—need to be inspired. Inspiration fuels action, creativity, and, above all, loyalty.

When employees are inspired, they go above and beyond in their roles. When guests are inspired, they become loyal advocates of your brand.

Inspiring Employees

Traditional KPIs rarely inspire employees; they just feel like boxes to be checked.

But the new KPI focuses on creating ambitious yet attainable targets that challenge employees to push their boundaries. This includes setting stretch goals that inspire employees to think creatively, and innovate.

For example, a bartender could be challenged to create a new cocktail using sustainable ingredients. As another example, a hotel service staff member could be encouraged to improve guest check-in times while maintaining high guest satisfaction scores.

Leaders must also inspire their teams by sharing success stories through pre-shift meetings, fostering a positive workplace culture, and providing opportunities for growth and development. When employees are inspired by their leaders, they are more likely to take initiative, and drive the business forward.

Practical Steps:

  • Set SMART, ambitious goals that push employees out of their comfort zones but are still attainable.
  • Recognize and celebrate those who exceed expectations, and inspire others to do the same.

Inspiring Guests

Inspiration isn’t just internal; guests also need to feel inspired by the spaces and services they encounter.

In guests, a feeling of inspiration can be achieved through extraordinary design, unique offerings, or service that goes above and beyond. An inspired guest becomes a loyal one who shares their experiences, and recommends the business to others.

Practical Steps:

  • Design spaces and experiences that delight guests, and exceed their expectations.
  • Use storytelling in your marketing to inspire guests before they even walk through your doors. Then through a curated guest journey map, encourage them to share their experience with their network.

The New Vision: Why Now is the Time for Clarity

As we look ahead in this industry, there has never been a better time to build clarity in your hospitality business.

The post-pandemic landscape has shifted guest expectations, employee needs, and operational requirements. Businesses that succeed in this new environment will be those that understand the importance of keeping people informed, involved, interested, and inspired.

Clarity in your vision and execution will set your business apart in a competitive and dynamic market. By focusing on this new form of KPI, you can create a hospitality brand that not only survives but exceeds expectations in the years to come.

So, as you plan for the year ahead, ask yourself how you can keep your team and guests more informed, involved, interested, and inspired.

The answer will unlock your path to long-term success.

Image: Canva

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