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September 17, 2024by David Klemt David Klemt No Comments

The Modern Approach to Systems: Part 1

The Modern Approach to Systems: Part 1

by Doug Radkey

Must be a magician.

In the hospitality industry, where guest satisfaction and operational efficiencies are paramount, systematic strategies are essential for maintaining a high-level of excellence.

Whether you’re running a high-end cocktail bar, a fast-casual restaurant, or an elevated boutique hotel, the intricacies of daily operations demand a structured approach to ensure smooth functionality, and exceptional service delivery.

After walking through this approach recently with a client, I thought it would be a great opportunity to introduce you to two powerful methodologies that have transformed businesses worldwide: the Kaizen methodology, and Six Sigma strategies. We use both of these approaches with all our clients at KRG Hospitality because they offer comprehensive frameworks for achieving operational excellence through continuous improvement and efficiency.

Kaizen, with its focus on incremental changes and fostering a culture of constant innovation, and Six Sigma, with its emphasis on reducing variability and enhancing quality, provide invaluable tools for those in this industry.

By exploring their application in bars, restaurants, and hotels, I am going to highlight how these systematic strategies can elevate guest experiences, and create a culture of excellence that will help improve nearly every aspect of your business.

Understanding Kaizen

Kaizen is a Japanese term that translates to “change for the better,” or “continuous improvement.” It represents a philosophy that emphasizes small, incremental changes to processes, products, or services rather than large-scale transformations.

This approach fosters a culture of constant improvement, encouraging everyone in an organization to contribute to enhancing efficiency and quality.

The concept of Kaizen originated in post-war Japan, where it was developed as a response to the need for rapid industrial growth and efficiency. It gained widespread recognition and was popularized by Toyota’s production process, known as the Toyota Production System (TPS).

Toyota implemented Kaizen principles to streamline its manufacturing processes, reduce waste, and improve overall quality. Ultimately, this approach played a crucial role in establishing the company as a global leader in the automotive industry today.

The Core Principles of Kaizen

Focus on Incremental Changes and Continuous Improvement: Kaizen emphasizes making small, manageable changes regularly rather than waiting for major breakthroughs. This approach allows for the constant refinement and improvement of processes, leading to significant compounded gains over time. Seeking better ways to do things continuously helps organizations stay agile, and respond to changes in the market or industry quickly.
Emphasis on Teamwork and Employee Involvement: A key aspect of Kaizen is the active involvement of all employees, from top management to frontline workers. Everyone is encouraged to identify areas for improvement, and to contribute ideas. This inclusive approach fosters a sense of ownership and accountability, as employees at all levels feel empowered to make meaningful changes. Teamwork is essential in Kaizen, as collaboration and open communication enable the sharing of knowledge and best practices.
A Culture of Continuous Learning: Kaizen promotes a learning-oriented culture in which employees are encouraged to develop their skills and knowledge continuously. This focus on education and training helps create a workforce that is adaptable and capable of implementing improvements. By cultivating a mindset of curiosity and openness to new ideas, organizations can foster innovation, and sustain long-term growth.

The Plan-Do-Check-Act Cycle

The PDCA cycle, also known as the Deming Cycle, is a foundational tool in the Kaizen methodology. It provides a structured framework for implementing changes, and ensuring their effectiveness. The cycle consists of four stages:

- Plan: Identify an area for improvement, set objectives, and develop an action plan.
- Do: Implement the plan on a small scale, testing the proposed changes.
- Check: Evaluate the results of the implementation, comparing against objectives.
- Act: Based on the evaluation, make necessary adjustments, and standardize the successful changes. If the results are not satisfactory, revisit the Plan stage, and repeat the cycle.

The PDCA cycle is a continuous loop that encourages organizations to keep refining their processes, and strive for excellence continuously. It ensures that improvements are data-driven and based on careful analysis, reducing the risk of failure, and increasing the likelihood of sustainable success.

Applying Kaizen to the Industry

By fostering a culture of efficiency, teamwork, and guest-centricity, Kaizen helps bars, restaurants, and hotels enhance their operations, and deliver exceptional guest experiences.

Here, I explore how Kaizen can be applied, using three key areas as examples.

Kaizen in Bars

Streamlining Bar Layout and Workflow: In a bar setting, the layout and workflow are crucial for ensuring quick service, and minimizing wait times. Kaizen encourages a meticulous examination of the bar’s physical layout, from the positioning of glassware and bottles to the arrangement of mixing stations and garnishes. By optimizing these elements, bars can reduce the time taken to prepare and serve drinks, leading to faster service, and increased guest satisfaction. For example, organizing the bar setup to minimize the distance bartenders need to travel can enhance efficiency significantly.

Continuous Menu Optimization: Guest preferences and trends in the beverage industry are evolving constantly. Kaizen’s principle of continuous improvement can be applied to menu optimization, where bars review sales data and guest feedback regularly to refine their offerings. By identifying popular drinks and experimenting with new mixes, bars can keep their menus fresh and appealing. Additionally, removing underperforming items helps streamline inventory and reduce waste, contributing to overall cost efficiency.

Enhancing the Guest Experience: Kaizen emphasizes the importance of guest interaction in creating a memorable experience. Regular staff training is vital to ensure that bartenders and servers are skilled in both mixology and guest services. Training sessions can focus on refining communication skills, upselling techniques, and handling guest questions more effectively. By fostering a welcoming and engaging atmosphere, bars can enhance satisfaction, and encourage repeat business.

Kaizen in Restaurants

Implementing Lean Kitchen Practices: In restaurants, the kitchen is the heart of operations. Kaizen can be applied to implement lean kitchen practices that minimize waste, and improve efficiency. This includes optimizing food preparation processes, standardizing portion sizes, and ensuring proper inventory management. By reducing unnecessary steps and streamlining workflows, restaurants can decrease preparation times, reduce food waste, and, ultimately, lower their food costs.

Refining Service Protocols: Refining service protocols regularly is essential for maintaining high standards of guest service. Kaizen encourages continuous evaluation and improvement of service procedures, from seating arrangements to cleaning protocols to table service. Restaurants can identify bottlenecks in service delivery by analyzing guest flow and feedback, and make necessary adjustments. For instance, optimizing the sequence of service can increase table turnover rates, allowing restaurants to serve more guests during peak hours, and maximize revenue.

Encouraging Staff Participation: A core tenet of Kaizen is the involvement of all employees in the improvement process. In restaurants, this means encouraging staff to identify operational challenges and propose solutions. Restaurants can tap into a wealth of boots-on-the-ground insights by fostering an inclusive environment in which employees feel valued and heard. Regular pre-shift meetings, team meetings, and one-on-ones can be effective platforms for gathering feedback and implementing changes. This participatory approach not only enhances operational efficiency but also boosts employee morale and engagement.

Kaizen in Hotels

Optimizing Housekeeping Processes: Housekeeping is, of course, a crucial component of hotel operations, impacting guest satisfaction directly. Kaizen can be applied to optimize housekeeping processes, ensuring timely room turnovers, and maintaining high cleanliness standards. This involves standardizing cleaning procedures, scheduling, and the use of cleaning supplies. Hotels can reduce the time required to prepare rooms for new guests by implementing efficient practices, improving occupancy rates, check-in times, and guest experiences.

Improving Front Desk Operations: The front desk is still the first point of contact for guests at many hotels, and it plays a crucial role in shaping a guest’s first impressions. Kaizen encourages continuous improvement in front desk operations, focusing on streamlining check-in/check-out processes, managing guest inquiries, and handling reservations. By leveraging technology and training staff, hotels can reduce wait times, enhance service accuracy, and provide personalized experiences. For example, implementing mobile check-in options can expedite the process and cater to tech-savvy travelers while freeing up time for staff to spend with guests who are not so tech-savvy.

Fostering a Culture of Hospitality and Attentiveness: Beyond operational efficiency, Kaizen promotes a culture of hospitality, and attentiveness among hotel staff. This involves training employees to anticipate guest needs, provide courteous service, and handle special requests with care. Hotels can cultivate loyalty and encourage positive reviews by creating a welcoming environment, and exceeding guest expectations consistently. Regular feedback loops, such as guest satisfaction surveys, can help hotels identify areas for improvement, and ensure that staff remain committed to providing exceptional service.

Takeaway

The application of Kaizen in bars, restaurants, and hotels leads to enhanced efficiency, improved service quality, and increased satisfaction.

By focusing on continuous improvement and involving all employees in the process, your business can create a dynamic and responsive environment that adapts to changing guest needs and market conditions. This commitment to excellence not only drives operational success but also strengthens your brand reputation, and guest loyalty.

To keep this from being too long, I’ve broken this article into two parts. Look for part-two on developing Six Sigma, and how combining both Kaizen and Six Sigma can take your business to new heights.

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September 16, 2024by David Klemt David Klemt No Comments

2024 Datassential 500: Guest Perception

2024 Datassential 500: Guest Perception

by David Klemt

Last week we took a look at the data-driven findings that identify, organize, and rank chain restaurants in the US, forming the Datassential 500.

This annual report sorts the 500 top-performing chains by segment. Further, Datassential identifies the top chains by both number of units, and sales.

In doing so, the F&B intelligence agency uses hard numbers to determine numbers one through 500.

But what about guest perception? Unit and sales growth may appeal to board members, investors, executives, and other hospitality professionals, but what matters to the people their restaurants serve?

It’s doubtful that even the staunchest fans of a particular restaurant chain are aware of or, frankly, care about how many locations they operate. Nor are they likely all that concerned about their annual revenue, unless they’re an investor as well.

To get to the bottom of how the public perceives chain restaurants in the US, and what brands they rank at the top, Datassential looked at six key metrics.

Those metrics? Food quality, service, experience, affordability, value for dollar, and net promoter score.

While the results aren’t exactly shocking, they’re quite telling. A handful of US chains dominate the consumer-facing metrics. And for the most part, they’re not among the top ten of the 2024 Datassential 500.

Anyone interested in reading this year’s report can do so via this link. Alright, let’s check out how the public ranks US chain restaurants.

Perception Matters

To make the comparisons easier, the top 10 US restaurant chains by unit and by sales are below.

Top 10: Total Units

Subway
Starbucks
McDonald’s
Dunkin’
Taco Bell
Domino’s Pizza
Burger King
Pizza Hut
Wendy’s
Dairy Queen

Top 10: Total Sales

McDonald’s
Starbucks
Chick-fil-A
Taco Bell
Wendy’s
Dunkin’
Burger King
Chipotle
Subway
Domino’s Pizza

Guest Perception

Okay, so those are the top performers in the US, by the numbers. Units were counted, sales were analyzed.

Now, these are the brands that guests feel are at the very top, organized into six categories.

Food Quality

Texas Roadhouse
Chick-fil-A
Longhorn Steakhouse
Cheesecake Factory
Ruth’s Chris Steak House

Service

Chick-fil-A
Texas Roadhouse
Longhorn Steakhouse
Cheesecake Factory
In-N-Out Burger

Experience

Chick-fil-A
Ruth’s Chris Steak House
Texas Roadhouse
Maggiano’s Little Italy
In-N-Out Burger

Affordability

Little Caesars
Freshii
Papa Murphy’s
Cici’s Pizza
Pollo Tropical

Value for Dollar

Papa Murphy’s
Little Caesars
Cici’s Pizza
In-N-Out Burger
Del Taco

Net Promoter Score

To determine this ranking, survey participants were asked “How likely would you be to recommend this chain to friends and family?”

Chick-fil-A
Texas Roadhouse
In-N-Out Burger
Longhorn Steakhouse
Portillo’s Hot Dogs
Cheesecake Factory
The Capital Grille
Ruth’s Chris Steak House
Maggiano’s Little Italy
Topgolf

Subway and McDonald’s may dominate the list in terms of number of units and annual sales, but Chick-fil-A dominates in one key area. Word-of-mouth marketing still matters, undeniably, and, according to Datassential, most consumers perceive Chick-fil-A as the restaurant chain to recommend.

Followed by Texas Roadhouse and In-N-Out Burger, smaller brands are delivering on important operational elements. Consumers at large appear to favor these brands when it comes to stretching their dollars, along with how they perceive the quality of food, the level of service, and the overall dining experience.

Operators interested in scaling their business need to set aside ego and desire, and look at their business objectively. They need to ensure they’re nailing the fundamentals and have the right systems in place first.

Image: BP Miller on Unsplash

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Stainless steel address numbers spelling out the number 500

September 13, 2024by David Klemt David Klemt No Comments

The 2024 Datassential 500

How Does the 2024 Datassential 500 Shake Out?

by David Klemt

The annual Datassential 500 ranking is a valuable report that identifies industry leaders, the fastest growers, and segment performance.

Further, this yearly report shows the scale of restaurant business in the US. In a word, it’s gargantuan.

Looking at 2023 data, the top 500 chains in the US operated 238,152 units. And those 238,000-plus restaurants generated $417.13 billion in 2023.

For the former, that’s growth of 2.1 percent in comparison to 2022. And for the latter, the top 500 grew by 7.5 percent compared to last year.

Those numbers are from just 500 chains; the report doesn’t take into account other chains or independent operators. When we add all dining and drinking establishments in the US, the industry generated $1.09 trillion in 2023.

Again, the US restaurant business is a colossus.

Perhaps unsurprisingly, limited-service and quick-service restaurants are the top-performing segments by unit within the Datassential 500. In 2023, the LSR segment consisted of 212,469, and unit growth was up by 2.3 percent. The QSR segment reached 170,241, representing unit growth of 1.9 percent.

In fact, every segment but one saw unit growth in 2023. One may assume the segment that slipped was fine dining. That’s usually a safe bet, but the segment actually saw the most growth. It was midscale restaurants that suffered a bit of a blow, shrinking by 0.1 percent.

That means that LSRs, QSRs, full-service restaurants (FSRs), fast casual, casual dining, and fine dining all grew. Further, that growth ranged from 0.3 percent (FSR) to 4.6 percent (fine dining).

There are many more insights, so I encourage anyone interested to download the report for themselves.

Segment Shakedown

Before we jump into the top US chains, let’s take a look at how the categories break down.

Type of Cuisine

American: 88
Pizza: 70
Desserts & Snacks: 69
Sandwich: 47
Coffee: 47
Burger: 37
Mexican: 36
Salad & Healthy: 31
Southern: 24
Asian: 22
BBQ: 12
Steakhouse: 11
Italian: 9
Seafood: 9
Greek & Mediterranean: 9

Growth by Segment: Unit (LSR)

Salad/Healthy: +11.2%
Coffee: +5.9%
Other: +4.6%
Dessert/Snack: +4.3%
Mexican: +3.0%
Chicken: +2.9%
Pizza: +1.6%
Bakery-Cafe: +0.8%
Sandwich: -0.4%
Burger: -0.4%

As we can see, Salad/Healthy LSRs saw almost double the growth by unit than the next-largest segment, Coffee.

Further, Sandwich and Burger shrunk slightly.

Growth by Segment: Unit (FSR)

Regional/Ethnic: +7.6%
Sports Bar: +3.8%
Midscale: +0.3%
Seafood/Steak: +0.1%
Italian/Pizza: -0.9%
American: -2.0%

Regional and ethnic full-size restaurants saw the most growth. In fact, they grew by twice the amount of sports bars, and several times more than midscale FSRs.

Growth by Segment: Sales

Limited-Service Restaurant: $338.18 billion (+8.1%)
Quick-Service Restaurant: $263.48 billion (+8.0%)
Full-Service Restaurant: $78.95 billion (+5.0%)
Fast-Casual Restaurant: $74.70 billion (+8.6%)
Casual-Dining Restaurant: $55.57 billion (+4.8%)
Midscale Restaurant: $20.05 billion (+4.5%)
Fine-Dining Restaurant: $3.33 billion (+10.7%)

The good news is that every segment saw sales growth in 2022, with Fine Dining and Fast Casual experiencing the biggest increases.

Of course, that’s relative. Fine Dining generated just $3.33 billion in comparison to LSRs, which generated more than $338 billion.

Still, positive growth is always great to see.

Growth by Segment: Sales (LSR)

Salad/Healthy: +17.0%
Chicken: +11.9%
Dessert/Snack: +10.1%
Coffee: +9.8%
Other: +9.3%
Mexican: +9.1%
Burger: +7.5%
Sandwich: +7.2%
Bakery-Cafe: +1.8%
Pizza: +1.6%

Not only did Salad/Healthy lead the way in LSR unit growth in 2023, it’s the top performer in terms of sales.

Again, the good news is that the Datassential 500 saw LSR sales growth across the board.

Growth by Segment: Sales (FSR)

Regional/Ethnic: +10.2%
Seafood/Steak: +6.7%
Midscale: +5.2%
Italian/Pizza: +4.2%
American: +3.8%
Sports Bar: +3.2%

As far as FSR performance, every segment experienced growth, with Regional/Ethnic leading the charge.

The Top 5(00)

So, which US chains are at the top? Well, an accurate answer depends on segment, number of units, and sales.

Oh, and it also depends on whether we’re talking about which chains Datassential have identified as industry leaders, and which are the fastest growers.

Industry Leaders

According to Datassential, the top five US chains by number of stores are Subway (20,133), Starbucks (16,346), McDonald’s (13,449), Dunkin’ (9,580), and Taco Bell (7,405).

However, that ranking changes a bit when we look at through the lens of sales. In that case, the top five are McDonald’s ($52.91 billion), Starbucks ($29.98 billion), Chick-fil-A ($21.58 billion), Taco Bell ($13.95 billion), and Wendy’s ($12.29 billion).

Those are the industry stalwarts. How do the fastest-growing US chains stack up?

Fastest Growers

Looking at unit growth over the span of one year, the top performers in the US are 7 Brew (+373.7 percent), The Peach Cobbler Factory (+358.3 percent), Hangry Joe’s Hot Chicken (+281.8 percent), KPOT Korean BBQ & Hot Pot (+275.0 percent), and Foxtail Coffee Co (+176.2 percent).

Switching gears to sales growth over a single year, Hangry Joe’s Hot Chicken led the way, growing by more than 500 percent. Hangry Joe’s is followed by The Peach Cobbler Factory (+332.5% percent), Nick The Greek (+304.7 percent), 7 Brew (+267.3 percent), and Pizza King Inc (+264.7 percent).

However, Datassential gets more granular in their 2024 report, breaking down the top five across multiple segments.

Top Ranked By Unit (Overall)

Top 5: Quick Service

Subway
McDonald’s
Dunkin’
Taco Bell
Domino’s Pizza

Top 5: Fast Casual

Starbucks
Chipotle
Panera Bread
Wingstop
Tropical Smoothie Cafe

Top 5: Midscale

Waffle House
IHOP
Denny’s
Cracker Barrel
First Watch

Top 5: Casual & Fine Dining

Applebee’s
Buffalo Wild Wings
Chili’s
Olive Garden
Outback

Top Ranked By Unit (Growth)

Top 5: Quick Service

7 Brew
The Peach Cobbler Factory
Foxtail Coffee Co
Cupbop
Swig

Top 5: Fast Casual

Hangry Joes Hot Chicken
Just Love Coffee Cafe
The Great Greek Mediterranean Grill
Nautical Bowls
Ellianos Coffee Co

Top 5: Midscale

Snooze Restaurant
Eggs Up Grill
Kura Sushi Bar
Another Broken Egg Cafe
Maple Street Biscuit Co.

Top 5: Casual & Fine Dining

KPOT Korean BBQ & Hot Pot
Topgolf
The Juicy Crab
Jinya Ramen Bar
Hopdoddy Burger Bar

There are many more insights to be had, so please consider downloading your own copy of the 2024 Datassential 500 report here.

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September 11, 2024by David Klemt David Klemt No Comments

Balancing Menu Creativity with Preferences

Menu Design: Balancing Creativity and Guest Preferences

by Nathen Dubé

Note: AI-generated image.

A menu is not just a list of dishes; it’s a strategic tool that influences guest choices, enhances the dining experience, and maximizes sales.

Therefore, a well-designed menu is a crucial component of a restaurant’s success.

Come along with me and we’ll explore the principles of effective menu design, balancing creativity with guest preferences, and the role of menu psychology in driving decisions.

Key Principles of Effective Menu Design

Layout and Structure

The foundation of a great menu lies in its layout and structure. Organizing menu items logically—grouping appetizers, mains, desserts, and beverages into distinct sections—guides guests through their dining journey.

This structure helps in creating a seamless experience where guests can find what they are looking for easily. Subsections like “vegetarian,” “seafood,” or “grilled” can further refine the selection process.

Logical organization not only aids in navigation but also enhances the overall dining experience by reducing decision fatigue.

Item Placement

Item placement on the menu can have a significant impact on what guests decide to order.

The “Golden Triangle” concept suggests that guests’ eyes typically first gravitate to the center, then the top right, and finally, the top left of the menu. Placing high-margin items in these areas can drive sales.

Additionally, highlighting signature dishes and specials in these prime spots can make them more appealing. Strategic placement is essential for maximizing the visibility of certain items, encouraging guests to order the dishes that are most profitable or unique.

Readability

A menu should be easy to read and visually appealing. Choosing appropriate fonts and sizes ensures that the text is legible in various lighting conditions.

A key factor to bear in mind is maintaining clear spacing between items to prevent the menu from looking cluttered and overwhelming.

Ensuring the clarity and ease of reading is vital; if a guest struggles to read the menu, it detracts from their dining experience. Effective readability involves the thoughtful selection of fonts, sizes, and spacing to create a harmonious and inviting look.

Balancing Creativity and Guest Preferences

Creative Culinary Expression

A menu is an opportunity to showcase the chef’s creativity and culinary expertise. Innovative dishes that use unique ingredients or cooking techniques can set a restaurant apart from its competitors.

Creativity is crucial for developing a distinctive culinary identity, and offering guests an exciting and memorable dining experience.

However, it’s important to balance creativity with dishes that guests are familiar with and enjoy. Balancing innovation with tradition ensures that while the menu offers new and novel experiences, it also provides comfort and familiarity.

Popular Guest Preferences

To appeal to a broad audience, a menu should include a mix of creative dishes and popular favorites. Including familiar dishes alongside innovative options can cater to a wider audience, making everyone feel welcomed and valued.

Additionally, considering dietary restrictions and preferences is crucial. Offering vegetarian, vegan, gluten-free, and allergen-friendly options ensures that all guests can find something they love. Addressing dietary needs and preferences not only broadens the guest base but also demonstrates the restaurant’s commitment to inclusivity and guest satisfaction.

Market Trends

Staying updated with current culinary trends helps keep the menu fresh and exciting.

For instance, trends such as plant-based diets, sustainability, and ethnic fusion can attract trend-conscious diners. Incorporating these trends into the menu shows that the restaurant is contemporary and aware of its guests’ evolving tastes.

Aligning the menu with market trends can create a buzz and draw attention to the restaurant, enhancing its reputation as a forward-thinking and dynamic establishment.

The Role of Menu Psychology

Influencing Guest Choices

Menu psychology involves using strategic design and phrasing to influence what guests order.

Some effective techniques include strategic pricing methods like decoy pricing. This approach involves placing a high-priced item next to a mid-priced item to make the latter seem more reasonable. Another tactic is charm pricing, an approach that uses prices that end in “.99” to make them appear more attractive.

These subtle cues can guide guest decisions and encourage them to choose certain dishes. Understanding menu psychology allows restaurants to steer guests subtly towards higher-margin items without being overtly pushy.

Maximizing Sales

Highlighting profitable dishes with visual cues, such as boxes, borders, or bold text, can draw attention to these items. Descriptive language that evokes the senses can make dishes sound more appealing, and entice guests to try them.

For example, describing a dish as “succulent, slow-roasted pork with a caramelized apple glaze” creates a vivid image, and stimulates appetite.

Effective use of menu psychology can boost sales significantly, and enhance the dining experience by making the menu more engaging and enticing.

Enhancing Appeal with Descriptive Language and Visuals

Descriptive Language

Using evocative and sensory words to describe dishes can enhance their appeal. Highlighting unique ingredients, preparation methods, and the origin of the dish creates a story that resonates with guests.

Descriptive language adds depth and dimension to the menu, transforming it from a simple list of dishes into a narrative that engages the guest’s imagination. Phrases like “handcrafted,” “locally sourced,” and “artisanal” add a touch of sophistication and quality, making dishes sound more attractive and special.

Visuals

Including high-quality images or illustrations of key dishes can boost their appeal significantly. Visuals help guests imagine the dish, and can trigger an emotional response

A well-designed menu with complementary color schemes and design elements reinforces the restaurant’s theme, and creates a cohesive brand identity.

The use of appealing visuals can stimulate appetite, and make the decision-making process more enjoyable for guests, enhancing their overall dining experience.

Examples of Innovative Menus

Case Studies of Successful Menus

Analyzing menus from renowned restaurants provides valuable insights into successful design choices.

For instance, The French Laundry in California uses a minimalist menu design that emphasizes simplicity and elegance, allowing the focus to remain on the high-quality ingredients and sophisticated dishes.

Similarly, Nobu’s menu balances innovative Japanese-Peruvian fusion dishes with classic favorites, catering to a diverse clientele.

These examples illustrate how thoughtful menu design can enhance the dining experience, and create a distinctive brand identity.

Insights from Industry Experts

Menu design professionals and restaurateurs offer valuable best practices. Experts suggest evaluating and adapting the menu continuously to meet changing guest preferences and market trends.

Updating the menu regularly not only keeps it interesting for repeat guests but also allows for the introduction of seasonal ingredients and new culinary innovations.

Industry insights highlight the importance of flexibility and responsiveness in menu design, ensuring that the restaurant remains relevant and competitive.

Conclusion

A thoughtfully designed menu is a powerful tool in the restaurant industry. It balances creativity with guest preferences, uses psychology to influence choices, and enhances appeal through descriptive language and visuals.

Investing in effective menu design can enhance the dining experience, drive guest satisfaction, and boost sales. For restaurateurs, it’s an essential aspect of creating a successful and memorable dining establishment.

By understanding and implementing these principles, restaurant owners can craft menus that not only reflect their culinary vision but also resonate with their target audience, ensuring a winning formula for success.

A well-designed menu can transform the dining experience, making it more engaging, enjoyable, and, ultimately, profitable for the restaurant.

Image: Microsoft Designer

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An AI-generated hotel bar area with seating next to large windows, with numbers superimposed over the image

September 10, 2024by David Klemt David Klemt No Comments

Modern Day Revenue Management for Hotels

Modern Day Revenue Management for Hotels

by Doug Radkey

Note: Image generated by artificial intelligence.

The landscape of hotel revenue management has evolved significantly in recent years, driven by both tech advancements and changing consumer behaviors.

With this in mind, I think now would be a good time to explore these current trends, tools, and strategies in hotel revenue management.

Below, I outline the importance of data analytics, dynamic pricing, and AI in maximizing revenue today, and as we move forward in this industry.

The Evolution of Revenue Management

In the early days of the hotel industry, revenue management was a relatively straightforward affair.

While the overall concept of revenue management originated in the airline industry in the 1980s, it was later adapted by hotels. Traditional practices relied primarily on static pricing models, where room rates were set based on the season, room type, and booking lead time. Rates were adjusted infrequently (often just a few times per year), and they were influenced mainly by historical data documented internally, and the intuition of revenue managers.

Hotels used simple tools such as spreadsheets and reservation logs to track bookings and manage their inventory. The focus was on achieving high occupancy rates rather than maximizing revenue per available room (RevPAR) and the other key metrics that we follow today.

Discounts and promotions were applied sporadically, without a deep understanding of market segments or consumer behavior, to help drive revenue during off-season periods. Group rates and corporate contracts were negotiated based on fixed rates, with little consideration for fluctuating market conditions.

From Static Pricing to Dynamic, Data-Driven Strategies

The transition from those early days to modern revenue management practices began in the late 1990s and early 2000s, driven by tech advancements and increased competition in the accommodation space.

The advent of online travel agencies (OTAs), real-time booking systems, and sophisticated data analytic tools transformed how hotels approached their pricing and inventory management.

So, what’s the modern approach?

Data-Driven Decision Making: The incorporation of advanced data analytics revolutionized revenue management. Hotels began leveraging large datasets from various sources, such as reservation systems, customer relationship management (CRM) software, and market intelligence platforms. This data-driven approach enabled more accurate forecasting, segmentation, and pricing strategies. Revenue managers could now analyze booking patterns, guest preferences, and demand fluctuations to make informed decisions.
Dynamic Pricing Models: Dynamic pricing involves adjusting room rates continuously based on real-time market demand, competitor pricing, and other external factors. This approach allows hotels to maximize revenue by selling the right room to the right guest at the right time and price. Dynamic pricing models consider various data points, including booking pace, market trends, weather, and special events, to optimize their recommended rates.
Automation and Real-Time Adjustments: Modern revenue management systems (RMS) introduced automation, allowing hotels to implement real-time rate adjustments. These systems use algorithms and machine learning to analyze data and update rates across all distribution channels automatically. This automation minimizes manual errors, and ensures consistent pricing across platforms, enhancing the hotel’s ability to respond to market changes quickly.
Focus on Total Revenue Management: While traditional revenue management focused primarily on room revenue, modern practices embrace a more holistic view known as total revenue management. This approach considers all revenue streams, including food and beverage, spa services, and other on-property offerings. By optimizing pricing and promotions across all areas, hotels can now maximize total revenue and profitability.

The Importance of Data Analytics

Data analytics involves the systematic analysis of data to uncover patterns, correlations, and trends that inform strategic decisions.

Sounds fairly important, right? In the hospitality industry, data analytics helps you understand market dynamics, predict demand, and tailor your hotel’s offering to meet guest needs. This level of analysis is paramount for developing effective revenue management strategies that maximize profitability.

One of the primary functions of data analytics in hotel revenue management is demand forecasting. By analyzing historical booking data, seasonal trends, and external factors such as local events, weather, or economic conditions, hotels can predict future demand accurately. This forecasting through data analytics enables hotels to adjust room rates more dynamically, optimize inventory allocation more efficiently, and implement targeted marketing campaigns that drive results.

Modern analytics platforms have revolutionized hotel revenue management by providing sophisticated tools for data analysis, strategic planning, and dynamic pricing. Atomize RMS stands out as a prime example of an advanced analytics tool that leverages data-driven decision-making to optimize hotel performance through dynamic pricing. This cloud-based revenue management system (RMS) uses sophisticated algorithms and machine learning to provide real-time pricing recommendations, as well as market insights.

Atomize enables hotels to make informed decisions based on real-time market conditions and predictive analytics by leveraging machine learning and big data. This data-driven approach leads to more precise pricing strategies, optimized inventory management, and improved profitability.

Moreover, the system’s ability to automate and streamline revenue management processes reduces the risk of human error, and frees up time for hotel staff to focus on other critical aspects of operations, such as providing a memorable guest experience, and elevating service quality.

The Role of Artificial Intelligence (AI)

Artificial Intelligence (AI) has further revolutionized the field of revenue management in the hotel industry, offering advanced capabilities that enhance both efficiency and profitability. Another AI-powered RMS provider is Duetto Cloud’s Game Changer, designed to analyze large datasets, identify patterns, and make real-time decisions.

One of the key capabilities of an AI-powered RMS is the automated pricing optimization. The system monitors market conditions continuously and adjusts room rates based on real-time data, with limited rules in the back-end. This dynamic pricing approach allows hotels to capitalize on fluctuations in demand, ensuring that they are charging the optimal rate at any given time.

These accurate forecasts can enable hotels to plan more effectively, manage inventory, and allocate resources more efficiently.

For example, AI can help predict when a hotel is likely to experience high demand and adjust staffing levels accordingly, ensuring optimal service quality. Additionally, accurate forecasting helps in identifying potential periods of low occupancy, allowing hotels to implement targeted marketing campaigns and promotional offers to boost bookings.

Beyond pricing and forecasting, AI-powered RMS can also enhance the guest experience through personalization. By analyzing guest data such as booking history, preferences, and feedback, AI systems can tailor offers and recommendations to individual guests.

For instance, an advanced RMS can identify a guest’s preference for specific room types, amenities, or dining options and use this information to provide personalized packages or upsell relevant services.

As AI technology continues to evolve, its role in revenue management is expected to grow, offering even more sophisticated capabilities and insights for hotels. Embracing AI-powered RMS now is going to be essential for hotel operators who are looking to compete and win in today’s fast-paced and data-driven market.

Integrating Revenue Management with Other Hotel Operations

As mentioned above, modern hotel revenue management is moving away from the siloed approach of focusing solely on room-based revenue. Increasingly, that outdated method is being replaced by a more holistic perspective that encompasses the entire guest experience.

This shift necessitates cross-department collaboration, aligning revenue management with sales, marketing, and operations to create cohesive strategies that optimize total revenue. Integrating efforts across departments means hotels can enhance their revenue streams and also provide a seamless and enriching experience for their guests.

To maximize total revenue, hotels must look beyond room revenue to optimize ancillary revenue streams, such as food and beverage (F&B), spa services, events, and so much more. This approach, known as total revenue management (TRM), involves a comprehensive strategy that considers all aspects of the guest experience.

For example, coordinating F&B with revenue management ensures that the on-property restaurant reservations and event bookings align with the hotel’s overall occupancy and pricing strategies.

The obvious and ultimate goal of cross-department collaboration is to enhance the guest journey and experience. Aligning efforts across revenue management, sales, marketing, and operations ensures hotels can create a seamless and personalized experience for their guests.

This can include personalized room amenities, customized dining options, and exclusive access to hotel facilities. Engaging with guests before, during, and after their stay through targeted communications and personalized offers can further enhance their experience and encourage repeat visits.

Looking Ahead

As you can see, modern hotel revenue management has become an intelligent discipline driven by data analytics, dynamic pricing, and artificial intelligence (AI). These elements are really becoming a non-negotiable for optimizing revenue, enhancing guest experiences, and maintaining a competitive edge.

Data analytics provides deep insights into market trends, guest behaviors, and demand patterns, enabling more accurate forecasting and strategic decision-making. Dynamic pricing, powered by real-time data and AI, allows hotel operators to adjust room rates fluidly, maximizing revenue by responding to market conditions.

AI further enhances revenue management through advanced capabilities such as predictive analytics and personalized guest services, all of which streamline operations and improve efficiency when integrated with other departments within your hotel.

Looking ahead, the future of hotel revenue management promises exciting innovations and trends. As AI and machine learning technologies continue to advance, we can expect even more precise forecasting models, and highly personalized guest experiences. The integration of big data from diverse sources, including social media, online reviews, and IoT devices, will provide richer datasets for analysis, leading to more nuanced insights and strategic opportunities.

Additionally, the increasing importance of TRM and revenue per available guest (RevPAG) will encourage hotels to optimize not just room revenue but also ancillary streams such as dining, spa services, events, and more.

Move Forward Today

For hotel operators like yourself, you must embrace and invest in advanced analytics tools, AI-powered RMS, and dynamic pricing strategies.

Adopting a data-driven approach will position you to better understand your hotel’s market, anticipate demand fluctuations, and tailor your offering to meet guest expectations.

This proactive stance will not only drive revenue growth but also enhance your brand equity.

Stay ahead of the curve and adopt cutting-edge technologies and strategies to navigate the complexities of the modern market and ensure long-term success. Now is the time to invest in the future, leverage the power of data and AI, and lead your hotel to new heights of profitability and excellence.

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September 9, 2024by David Klemt David Klemt No Comments

How’s Your 30 Days of Bourbon Challenge?

How’s Your 30 Days of Bourbon Challenge Going?

by David Klemt

Drink Raddannd Bourbon, aged for “snake” years.

September is National Bourbon Heritage Month, and Bourbon & Banter have thrown down their 30 Days of Bourbon Challenge again this year.

For those who are unaware, allow me to introduce you to Bourbon & Banter.

Bourbon devotee and advocate Patrick Garrett founded Bourbon & Banter back in 2011. What has followed over the course of 13 years is the coming together of a team of bourbon aficionados, a community of bourbon lovers, a podcast, and a tasting experience team called DrinkCurious, founded in 2022.

Oh, and, of course, the 30 Days of Bourbon Challenge, which I first covered in September 2021.

Now, I’m well aware that it’s September 9. I’m sure many of you had enjoyed separate bourbons in the eight days prior to the publication of this article. For those who haven’t, it isn’t as though a member of the Bourbon & Banter team is going to run into your bar and slap a bourbon out of your hand if you and your guests run the challenge through October 8.

So, make sure to connect with Bourbon & Banter, tag social posts with #30DaysOfBourbon and #BourbonHeritageMonth, and donate $30 to the charity of your choice if you see fit. Hey, that would be an excellent way for you and your guests to raise funds for a deserving, local cause.

To help you and your guests try new, exciting bourbons this month, check out the Breaking Bourbon release calendar. Scroll down to August and September for some of the newest bourbons to hit the market.

Cheers!

Only. Bourbon. Counts.

There are some rules that you and anyone else participating in this challenge need to honor.

First and foremost: only bourbon counts. I mean, it’s in the name of the creators of this challenge, and the challenge itself.

So, one more time: only bourbon counts.

And, in case anyone needs a refresher, bourbon is, according to the Alcohol and Tobacco Tax and Trade Bureau (TTB), a “[w]hisky produced in the U.S. at not exceeding 80% alcohol by volume (160 proof) from a fermented mash of not less than 51 percent corn and stored at not more than 62.5% alcohol by volume (125 proof) in charred new oak containers.”

The good news is that, as Bourbon & Banter point out, Tennessee whiskey counts toward this challenge. For the curious, this is because Tennessee whiskeys—generally speaking—are bourbons that are filtered through charcoal chips before being rested. This step, which doesn’t violate the rules for classifying a whiskey as a bourbon, is known as the Lincoln County Process.

A Few More Rules

Really, I see these more as guidelines. Why? Because Bourbon & Banter, in my opinion, are simply clarifying a few key details in the interest of integrity. However, they’re maintaining the fun factor of their 30 Day Bourbon Challenge.

Another rule is that the mash bill is important, and as long as one recipe is different from another, it counts as a separate bourbon. As an example, many bourbon aficionados are aware that Four Roses boasts ten different mash bills. Well, each of those counts as a different bourbon, so that’s ten bourbons right there.

Per Bourbon & Banter’s rules, finished bourbons also count toward the challenge. As they explain their stance, “As long as the finished bourbon started life as a bourbon we see no reason to exclude it due to alternative barrel finishing.”

Just like mash bill is important, so is expression. To that end, no, different barrels of the same expression do not count as different bourbons for this challenge.

For all of the rules, click here. And for your own copy of the official 30 Days of Bourbon Challenge calendar, click here and scroll down.

Now, check out your bourbon inventory, organize your reps, activate your team, and engage your guests. You’ve all got some bourbon to ~~drink~~ learn about!

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September 6, 2024by David Klemt David Klemt No Comments

Is Demand for Delivery Down?

Is Demand for Delivery Down?

by David Klemt

I have done this. Cargo straps required.

Not too long ago, it seemed as delivery was going to overtake people’s desire to enjoy a restaurant in person, but that trend may be on a downward swing.

At first, this trend made perfect sense, for obvious reasons. For a while, the best way for consumers to enjoy their favorite restaurants and show support was to order delivery.

Rideshare companies jumped on delivery, as did several platforms. When guests were able to visit restaurants in person freely, delivery had become a habit for many of them. In fact, ordering delivery had become the de facto method of engaging with restaurants for a not-insignificant percentage of people.

However, operators and their teams weren’t shy about exposing their delivery “partners.” I think it’s fair to describe the fees operators were being charged by some of these partners as outrageous.

When the public found out about these fees, they didn’t sit well. Takeout, carryout, takeaway, order for pickup… Whatever your preferred nomenclature, people began seeing it as superior to delivery. This shift in consumer behavior was driven by a desire to support their favorite restaurants.

Of course, there are other factors that affected people’s move away from delivery. I’m confident in saying that most of us who have ordered delivery at some point in the last couple of years has experienced at least one of several downsides.

However, has delivery really fallen out of favor? Have takeout or drive-up pickup actually been passing up delivery?

Datassential’s 2024 Midyear Trends Report has some insights that can answer those questions. You can (and should) check it out for yourself here.

The State of Takeout and Delivery

To obtain a snapshot of the state of the performance of delivery and takeout, Datassential conducted a survey in May of this year. The F&B intelligence platform surveyed 400 US operators and more than 1,500 US consumers.

According to Datassential, nearly half of restaurant operators reported increases in guests dining in person at their restaurants.

Perhaps more telling, however, is that Datassential’s survey reveals that half of restaurants aren’t even offering delivery. I don’t know the breakdown of operators who once offered delivery and stopped doing so versus operators who never offered delivery.

What I do know is that there are, as I alluded to up top, many reasons for people to eschew delivery. Chief among these are cost, and the condition of the order when it arrives to the guest.

On the operator side, cost is once again a consideration, as are negative reviews and complaints. More than one study has shown that operators often get the blame when a third party botches an element of the delivery. These complaints can include food being delivered lukewarm or cold, parts of the delivery missing, or the wrong items being delivered to someone.

But, again, is demand for delivery slipping?

Per Datassential’s report, takeout and catering are outpacing the growth of delivery for US operators. Almost 40 percent of operators who participated in Datassential’s survey reported an increase in frequency for takeout and catering orders. In comparison, just 20 percent of respondents ordered an increase in delivery order.

Just eight percent of operators indicated a decrease in takeout and delivery. In fact, the greatest decrease impacts catering (14 percent), according to Datassential’s report.

Takeaway

Delivery, simply put, doesn’t work for every operator or every concept. Moreover, it looks like consumer desire for takeout is on a greater upswing in contrast to delivery.

For concepts that succeed with delivery, it’s imperative that operators control the process rather than cede to third parties, in my opinion.

The best way forward will vary from business to business. Operators and their teams need to be ruthless the quality, consistency, accuracy, and value of all orders, whether placed in person, for takeout, or for delivery. Further, when it comes to takeout and delivery, the ordering process must be convenient.

What’s clear is that every operator needs to dive into their data, determine how guests prefer to order from their restaurant, and pursue those preferences to enhance the guest experience.

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September 5, 2024by David Klemt David Klemt No Comments

15 Years of Consulting: Lessons Learned

15 Years of Consulting: Lessons in Adaptability, Innovation, and Resilience

by Doug Radkey

Note: AI-generated image.

I made a life-altering decision to start consulting in August of 2009, and over the past 15 years I’ve accumulated more than 30,000 hours of experience.

Over the past 15 years and the span of those tens of thousands of hours, I’ve contributed to the creation of more than 270 new concepts. Further, these concepts boast a long-term success rate of over 98 percent.

Reaching these achievements, along with fifteen years in business, hasn’t been easy.

There have been many ups and many downs, just like any other business. There are times of standing high on a mountain, and times of wanting to throw in the towel.

One key element I have learned over the years is that success goes far beyond having a great vision and concept; it requires passion, precision, and execution.

This journey has been filled with pivotal moments, and by what I can boil down to as three fundamental and invaluable lessons in adaptability, innovation, and resilience. Each of those lessons are now rooted in KRG Hospitality’s core values of being creative, cultivated, and connected.

The lessons I’ve learned over the course of 15 years and more than 270 new concepts can help you and your business start, stabilize, and scale.

The Power of Adaptability

Adaptability in business refers to the ability to adjust and respond to changing circumstances, market conditions, and guest expectations. It is the capacity to pivot strategies, embrace new technologies, and innovate to stay both relevant and competitive.

For me, adaptability has meant developing a mindset of openness to change and a willingness to experiment with new approaches.

It is not just about reacting to changes as they happen but anticipating shifts in the market proactively, while preparing to meet new challenges. In business, this means being flexible in your operations, resilient in the face of adversity, and innovative in problem-solving.

An adaptable hospitality business is one that can adjust its offerings quickly, refine its services effectively, and even overhaul its business model if necessary. As importantly, such a business can accomplish all of that without any long-term disruption to its profit channel.

To embrace adaptability, you must foster a culture that values learning and continuous improvement. This involves encouraging your employees to share their ideas and feedback, experimenting with new systems, technologies and processes, and being open to constructive criticism.

It also requires a deep understanding of the market and guest needs, allowing your business to pivot swiftly and efficiently when necessary.

Adaptability is also about having a growth-based mindset. This type of mindset involves seeing challenges as opportunities for growth rather than obstacles. By being adaptable, your business can stay ahead of the competition, meet changing guest expectations, and capitalize on new opportunities.

In a world where change is the only constant, embracing adaptability is not just an option, it’s a necessity for long-term success. As entrepreneurs, cultivating this trait can lead to innovative solutions, greater efficiency, and a more sustainable long-term business model.

Embracing Innovation

Embracing innovation is about thinking creatively, challenging the status quo, and finding novel solutions to existing problems.

In this industry, innovation can manifest in various forms, such as adopting new technologies, offering unique guest experiences, or implementing sustainable practices. As an entrepreneur and leader in this industry, embracing innovation is crucial for staying relevant.

You will begin to see here how each of these lessons truly go hand in hand. For me, however, innovation goes beyond mere invention; it involves applying new concepts and ideas in practical and impactful ways.

In hospitality, innovation can be product-driven, such as developing a new menu item or room service feature. Or it can be process-driven, such as streamlining operations through a new technology integration. Innovation can also be guest-centric, focusing on enhancing the overall guest experience through personalized services or tailored offerings.

For example, the introduction of mobile check-in and digital concierge services in hotels revolutionized the guest experience, offering convenience and personalization.

Similarly, restaurants have innovated by incorporating immersive dining experiences that engage all of our senses. These innovations not only attract new guests but also differentiate a business in a crowded marketplace.

How to Embrace Innovation

To embrace innovation, your business must cultivate a culture that encourages creativity and experimentation. This involves creating an environment where employees feel empowered to suggest new ideas, and are not afraid to take risks.

Leadership plays a critical role in setting the tone for innovation, providing the necessary resources, and fostering an open-minded atmosphere.

One practical way to embrace innovation is to stay up to date about industry trends and technological advancements. Attending industry conferences and participating in webinars and mastermind groups can provide valuable insights and inspiration.

Additionally, businesses in this industry should invest in research and development (R&D) to explore new opportunities and test innovative concepts.

Finally, embracing innovation requires a willingness to adapt and iterate. Not every new idea will be successful, but the process of trying, learning, and refining is critical for continuous growth.

Your business should establish mechanisms for evaluating the effectiveness of new initiatives, and be prepared to pivot when necessary.

Fostering a culture of creativity, staying informed about trends, and actively seeking new opportunities helps your business innovate in ways that enhance the guest experience, and drive long-term financial success.

Driving Resilience

Resilience in business refers to the ability to withstand and recover from challenges, setbacks, and unexpected changes. It involves maintaining stability and continuity while adapting to new circumstances.

In further business context, this includes the ability to manage financial pressures, operational disruptions, shifts in consumer behavior, or even personal setbacks. Resilience also encompasses the mental and emotional strength to stay focused and positive in the face of adversity.

Resilient businesses are not immune to problems; rather, they are equipped to handle them effectively, and learn from the experience.

In my experience, you must be willing to prioritize building strong relationships with guests, community partners, and industry peers in order to embrace innovation. These connections provide a support network that can offer assistance, advice, and resources during tough times. Collaborations with local businesses and partnerships with suppliers can also provide you with a critical support line.

Real-World Resilience

Personal anecdotes often serve as powerful illustrations of resilience, providing real-world examples of overcoming adversity and demonstrating the strength required to persevere. Real-life examples show that resilience is not just an abstract concept but a practical quality that can be developed and applied in everyday life.

These stories often detail the emotional, mental, and physical hurdles faced, and the strategies used to overcome them.

For example, a story about recovering from a business failure can illustrate the importance of maintaining a positive mindset, and seeking new opportunities. Perhaps it is a career setback, a health challenge, or a natural disaster. Regardless, these personal stories often include reflections on the lessons learned from facing adversity.

These reflections can range from practical advice, such as the importance of planning and preparation, to emotional insights, such as the value of gratitude, and the strength found in vulnerability. Stories of resilience serve as a reminder that setbacks and challenges are a natural part of life, and that it is possible to overcome struggles with determination and support.

Lastly, building resilience also involves cultivating a positive and proactive mindset. It’s imperative to view challenges as opportunities to innovate and improve. This can mean reevaluating business models, exploring new revenue streams, or investing in your people for further training and development.

Resilient businesses are not just reactive, they are proactive in anticipating potential issues and preparing for them. By building strong relationships, learning from setbacks, and maintaining a positive outlook, your business can navigate challenges and emerge stronger.

Core Values in Action

Core values are the fundamental beliefs and guiding principles that shape the culture, decision making, and identity of your business. They are the compass that directs the actions and attitudes of everyone within your organization, from leadership to frontline employees.

In the hospitality industry, core values are particularly crucial as they also define the guest experience and set the tone for interactions with guests, employees, partners, and the community.

For entrepreneurs and leaders in this industry, developing and embracing core values is crucial for creating a cohesive and purpose-driven business. Core values not only guide strategic decisions but also inspire and motivate the team, ensuring alignment with the mission and vision.

Over the past 15 years, our journey in the industry has been guided by these three core values: Creative, Connected, and Cultivated. These values have aligned perfectly with the lessons I’ve learned and shared about being resilient, innovative, and adaptable.

Our Core Values

Creativity is at the heart of innovation. It involves thinking outside the box, challenging conventions, and finding unique solutions to problems.

In the hospitality industry, creativity is needed for differentiating a brand and providing memorable experiences. Our creative approach has allowed us to design distinctive concepts, develop engaging strategies, and craft personalized staff and guest experiences.

Embracing creativity means exploring new ideas constantly, and staying open to unconventional approaches.

Being connected refers to fostering strong relationships with guests, community partners, and industry peers. It’s about building a network of support and collaboration that extends beyond the business itself.

In times of adversity, these connections have been invaluable. Whether it’s partnering with local businesses during economic downturns or engaging with guests through personalized communication, staying connected has helped us navigate challenges and seize on potential opportunities.

Lastly, cultivation is the process of continuous growth and improvement. It involves nurturing talent, refining processes, and striving for excellence.

In our experience, being cultivated means committing to lifelong learning, and embracing a growth-based mindset. This value has driven our dedication to professional development, the quality in our deliverables, and operational efficiency.

To embrace core values, your business must integrate them into every aspect of operations. This includes staff onboarding practices, guest interactions, and strategic decision making. You and your leaders should model these values and encourage employees to do the same.

Demonstrating and reinforcing your core values consistently allows you to create a strong, unified culture that resonates with both employees and guests.

And the end of the day, you have to remember that core values provide direction, inspire action, and foster a sense of purpose.

Conclusion

As I sit back and reflect on the lessons learned from 15 years of consulting in the hospitality industry, it’s clear that the journey has been shaped by the powerful forces of adaptability, innovation, and resilience.

These experiences have not only defined our approach but have also laid the foundation for future endeavors. The hospitality landscape evolves continuously, with new challenges and plenty of opportunities on the horizon. From technological advancements to shifting guest preferences, the industry is truly poised for positive transformation.

Looking ahead, however, it’s crucial for businesses to remain flexible and open to change.

For us, continuing to embrace adaptability means staying agile in the face of uncertainty, and being ready to pivot when necessary. Innovation will continue to play a pivotal role, driving new concepts and experiences that set businesses apart.

Resilience, as always, will be the foundation that supports us through trials and tribulations, ensuring that we meet the characteristics needed to win.

I strongly encourage you to internalize these three qualities in your own journey. Whether you’re an entrepreneur, a coach or consultant, or an industry professional, integrating them into your own set of core values—be it creativity, connection, cultivation or any other set of values—will anchor you in your pursuit.

These values are not just guiding principles but also a source of strength and inspiration.

Embracing adaptability, innovation, and resilience, and staying true to our core values, has made us confident in navigating this ever-changing terrain with purpose over the next 15 years.

Who’s with us?

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September 4, 2024by David Klemt David Klemt No Comments

5 Books to Read this Month: September 2024

5 Books to Read this Month: September 2024

by David Klemt

Our September book selections focus on the 2024 Spirited Award finalists and winner of the Best New Book on Drinks Culture, History, or Spirits category.

These books cover an array of topics, from mastering ice and drink ratios to foraging for botanical cocktail ingredients.

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

Let’s jump in!

Juke Joints, Jazz Clubs, and Juice: A Cocktail Recipe Book Cocktails from Two Centuries of African American Cookbooks

Toni Tipton-Martin’s book has earned not only a Spirited Award, it’s a James Beard Award nominee, and has been hailed as one of the best cookbooks of the year by several publications. The story of the impact of Black drinking culture on drinking culture as a whole is told through more than 70 recipes.

From Amazon: “Juke Joints, Jazz Clubs, and Juice spotlights the creativity, hospitality, and excellence of Black drinking culture, with classic and modern recipes inspired by formulas found in two centuries’ worth of Black cookbooks. From traditional tipples, such as the Absinthe Frappe or the Clover Leaf Cocktail, to new favorites, like the Jerk-Spiced Bloody Mary and the Gin and Juice 3.0, Toni Tipton-Martin shares a variety of recipes that shine a light on her influences, including underheralded early-twentieth-century icons, like Tom Bullock, Julian Anderson, and Atholene Peyton, and modern superstars, such as Snoop Dogg and T-Pain.”

Get your copy today.

How to Taste: A Guide to Discovering Flavor and Savoring Life

Tasting, whether food or beverage, is a key component of any hospitality professional’s skillset. To help people get the most out of tasting—and to make it a less-intimidating process—Mandy Naglich has written How to Taste. There are under 100 people with the Advanced Cicerone certification, and Naglich is one of them. I’d say, then, that she’s well qualified to teach others how to maximize a tasting.

From Amazon: “Take a seat beside highly-trained cheese analysts, world-class sommeliers, competitive whiskey tasters, internationally recognized chefs, and sensory scientists as experts divulge the secrets to discerning the notes in a range of ingredients, from a dab of honey to a spoonful of olive oil—and even a sip of mineral water.”

Pick up this book here.

ICE: From Mixed Drinks to Skating Rinks–a Cool History of a Hot Commodity

This may seem like a strange thing to say, but ice, as a commodity, has been “a thing” in America for not much more than 200 years. I think it’s safe to say that it’s also something we tend to take for granted. After all, it’s just frozen water, right?

From Amazon: “In Ice, journalist and historian Amy Brady shares the strange and storied two-hundred-year-old history of ice in America: from the introduction of mixed drinks “on the rocks,” to the nation’s first-ever indoor ice rink, to how delicacies like ice creams and iced tea revolutionized our palates, to the ubiquitous ice machine in every motel across the US. But Ice doesn’t end in the past. Brady also explores the surprising present-day uses of ice in sports, medicine, and sustainable energy—including cutting-edge cryotherapy breast-cancer treatments and new refrigerator technologies that may prove to be more energy efficient—underscoring how precious this commodity is, especially in an age of climate change.”

Buy it now!

The Maison Premiere Almanac Cocktails, Oysters, Absinthe, and Other Essential Nutrients for the Sensualist, Aesthete, and Flaneur: A Cocktail Recipe Book

Since opening its doors for the first time in Brooklyn, NY, in 2011, the Maison Premier has established itself as one of the most important and influential drinking and dining establishments in America. One can argue quite easily that it’s considered one of the best bars and restaurants in the world. The Maison Premiere Almanac features 90 cocktail recipes, and it’s a James Beard Award nominee along with being a Spirited Award finalist.

From Amazon: “As captivating as the bar itself, The Maison Premiere Almanac is both a visual delight—drawing on photography, illustration, and graphic design—and a detailed guide to the rarefied subjects that make Maison Premiere unique, including deep explorations into the art of the cocktail and cutting-edge bartending techniques and equipment.”

Grab yours today.

Bar Hacks: Developing The Fundamentals for an Epic Bar

Yep, I’m taking the opportunity to recommend Doug Radkey’s first book. Radkey is, as you may know, the president of KRG Hospitality. 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!

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September 3, 2024by David Klemt David Klemt No Comments

Program for Unique Holidays: Sept. 2024

Program for Unique Holidays: September 2024

by David Klemt

Do you want to stand out from from other restaurants and bars in your area? Change how you think about your September 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, September boasts celebrations of the cheeseburger, the double cheeseburger, cheese pizza, pepperoni pizza, beer, and guacamole. Those are fantastic F&B holidays sure to appeal to your guests. However, you can still celebrate some “out there” holidays to get people’s attention and draw them to your business.

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 August 2024 holidays list, click here.

September 4: Eat an Extra Dessert Day

You know what’s better than selling one dessert? Selling multiple desserts.

One approach that may perform well for you, depending on your concept and menu, is to create new, smaller versions of desserts so people won’t be too stuffed to enjoy more than one treat.

September 8: National Ampersand Day

Ah, the ampersand. This is perhaps my favorite logogram, since it means “and,” and it looks cool when stylized. Since this symbol represents “and,” this is the perfect day to feature a menu of food-and-drink pairings or shot-and-beer pairings. I recommend a tiered LTO menu, with a few options for each level: Beam & Bud Light, Woodford & Guinness, etc.

September 9: National Wiener Schnitzel Day

This dish comes to us from Vienna. It’s so good and comforting that it’s one of Austria’s national dishes. Germans, of course, love wiener schnitzel as well.

To leverage this holiday, consider making a traditional version made with veal cutlets, served with French fries, mashed potatoes, or Hasselback potatoes. If you want to build an LTO menu, though, look to other versions of this dish. For example, there’s a non-breaded wiener schnitzel variant served with a cream sauce called rahmschnitzel. One can also argue that Japanese tonkatsu (pork, not veal), Danish skinkeschnitzel (made with pork rather than veal), and American chicken-fried steak will work for this holiday.

September 14: National Eat a Hoagie Day

The humble hoagie is an institution. Depending on where you operate, these iconic sandwiches may be known as heroes, grinders, submarines, subs, po’boys, bombers, or torpedoes. However, if your guests know them as hoagies, you better come correct. Hell hath no fury like a Philadelphian presented with a hoagie with mustard on it, for example.

September 15: National Crème de Menthe Day

Crème de menthe enjoys a deep history, which you can read about here. The main takeaways are the two most-famous cocktails that feature this legend among liqueurs: the Grasshopper, and the Stinger. Both classics are great for an LTO menu celebrating the final days of summer.

September 17: National Table Shuffleboard Day

Does your bar, restaurant, or eatertainment concept feature table shuffleboard? If it does, you’re poised to leverage this holiday.

One of the most effective approaches is to organize a tournament. Of course, you can also feature other contests, like Closest to the Edge.

September 21: Escapology Day

Okay, this one is a bit specific. If your restaurant or bar is located in the same market as an escape room (or several, as is the case for a city like Las Vegas), consider partnering with them if it makes sense to do so. You and your team can recommend your guests check out a particular escape room. Conversely, the escape room can recommend your restaurant or bar for post-escape food and drinks. To solidify the partnership, both businesses can offer a discount or other benefit to each other’s guests.

Really, we want you to think about local businesses that can serve as strong partners.

September 23: National Great American Pot Pie Day

Two weeks ago we tackled comfort foods. In particular, transforming traditional comfort foods into soups. This holiday is the perfect time to make an LTO soup (or, if it performs well, a permanent menu item, or recurring LTO from fall through winter) out of one of the best-known comfort classics, the pot pie.

September 24: Innergize Day

Summer is coming to a close. Traditionally, this means vacation and relaxation time is over as people return to offices, and children return to school.

Innergize Day is about relaxing and disconnecting. It’s quite likely your concept can facilitate relaxation, escaping devices, and slowing down.

September 25: Better Breakfast Day

Is your concept open for the early morning daypart? Do you serve brunch? More importantly, is your concept committed to serving healthy food and drinks, or are you interested in updating your menu to feature healthier items?

If you answered yes to any of those questions, this could be the day for you. Use social media and other marketing channels to promote your healthy menu. Create items like healthy breakfast bowls and smoothies if it’s time for an update, and promote your new, healthier menu.

Image: Ivan Bertolazzi on Pexels