Hotel Operations | KRG Hospitality

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October 4, 2024by David Klemt David Klemt No Comments

The Banks Have it Wrong

The Banks Have it Wrong

by Doug Radkey

It’s widely assumed that a well-written business plan will impress banks and SBA-type programs, and secure the funding required to launch a hospitality concept.

When starting a bar, restaurant, or hotel, most people are told exactly that: “You just need a business plan.”

The problem, however, lies in how these business plans are created. Too often, aspiring entrepreneurs turn to fill-in-the-blank templates provided by banks or online resources. They believe that simply completing the form will open the doors to financing, and start them on the path to building a successful business.

Unfortunately, this approach can do more harm than good. Let’s explore why the traditional reliance on business plan templates, including AI-generated business plans, can set both businesses and lenders up for failure.

In this article I dive into real-world examples, examine the success and failure rates of loans in the hospitality industry, and outline why banks and other programs need to rethink their loan approval processes to reduce risks for not only themselves but the entrepreneurs they serve.

The Problem with Business Plan Templates

Imagine this scenario: You’re excited to open a hospitality business, but you don’t know where to begin. You do some research, and learn quickly that you need a business plan to secure a loan. The bank or Small Business Administration (SBA) offers you a convenient template to complete, or you find one online that seems like it will do the job. You fill in the blanks, submit the plan, and, to your delight, the bank approves all or a portion of your loan.

However, the approval doesn’t mean your business plan is actually sound. Read that again.

It only means it meets the basic requirements of the bank’s loan approval checklist. A template provides a false sense of security, making entrepreneurs think they’ve covered all their bases when, in reality, crucial aspects of the business are left unaddressed.

For example, I recently reviewed a business plan for a client who had used a bank-provided template prior to our engagement. The plan was approved by the bank, but upon closer inspection, I found numerous errors: the start-up financial projections were unrealistic, the cash-flow analysis was incomplete, and crucial aspects of market analysis were missing.

The result? The project is on track to run out of money before it even opens its doors.

This example highlights a troubling issue: Templates don’t provide clarity, and they certainly don’t prompt critical thinking about the true costs to start, and the real challenges that the business will face once it’s operating.

The Risks of Using Templates

Business plan templates may seem like an easy solution, but they come with significant risks.

False Sense of Security: A completed template may look professional, but it doesn’t guarantee that the plan is sound or comprehensive. Key elements can be glossed over, copy and pasted, or simply misunderstood.
Lack of Critical Thinking: A template doesn’t ask tough or industry-specific questions. It doesn’t force you to analyze the competitive landscape, identify potential risks, or develop a clear financial strategy around a unique concept.
Inadequate Financial Analysis: Templates often provide a basic structure for financial projections but fail to help you understand the true costs of starting and running a business. A template won’t be specific to your concept, your revenue and cost channels, or industry benchmarks. The template won’t catch errors in your financials, leaving you and the bank exposed to significant risk.
Inability to Stand Out: In a crowded market such as the US, Canada, or Europe, differentiation is key. A cookie-cutter business plan won’t help you stand out from the competition. Despite handing them out, banks see thousands of these plans, and if you don’t demonstrate why your concept is unique and viable, you’re setting yourself up for denial.

The Dangers of AI-Generated Business Plans

As technology advances, AI-powered business plan generators are becoming more popular. I’ve seen a few ads for them over the past few months.

These tools claim to be able to create a business plan in minutes, promising efficiency and ease. However, relying on AI to write your business plan is just as dangerous as using a template. The same issues apply: lack of clarity, shallow financial analysis, and the absence of critical thinking.

AI-generated business plans may provide a surface-level solution, but they cannot replace the deep analysis required to make a business successful. Business plans need to be customized and thought out thoroughly, with insights drawn from real-world strategic planning.

Hospitality Industry Loans: Success and Failure Rates

The hospitality industry—particularly the accommodation and food service sectors—has one of the highest loan approval rates, but it also has some of the highest operator failure rates.

According to the U.S. Small Business Administration, in 2022 alone, 6,297 loans were approved for the accommodation and foodservice industry. These accounted for 13.2 percent of all small business loans, and 19.2 percent of total loan dollars. The average loan amount was US $784,768.

Despite these impressive loan numbers, the success rate of a business in this industry tells a different story. Only about 20 percent of hospitality businesses make it to their fifth year, and the average time to pay off a business loan ranges from five to ten years. The failure rates are driven by various factors, including cash-flow problems, a lack of market understanding, and poor financial planning.

So, why do banks continue to approve business loans based on inadequate business plans?

The Need for More than a Business Plan

Each reason for a business failing points to one underlying cause: lack of strategic clarity. In many cases, these businesses began with a standard business plan but skipped the other non-negotiable playbooks truly needed to be successful.

A well-rounded approach to strategic planning includes much more than a business plan.

Aspiring or seasoned bar, restaurant, and hotel operators need to develop feasibility studies to determine whether their business models can succeed in their target market. They also need concept development plans, prototype drawings, brand strategy plans, tech-stack plans, marketing plans, and financial playbooks.

Only after these steps are completed should the final business plan be written.

How Banks Can Improve Loan Success Rates

Banks have an opportunity to reduce their risks significantly—and increase the success rates of the businesses they fund—by requiring more than the completion of a business plan template during the loan approval process.

Instead, they should request detailed feasibility studies, along with the other playbooks, that go beyond the basics.

By working with entrepreneurs to ensure they have true clarity about their business model, market conditions, and financial outlook, banks can reduce default rates, and build stronger partnerships with their clients.

In addition, by encouraging the use of customized plans over templates or AI-generated plans, banks can ensure that they are investing in businesses with a clear path to success.

My Final Thoughts

Yes, a business plan is a vital tool for any entrepreneur, but it must be more than just a template, and lenders need to stop relying on these fill-in-the-blank approaches.

To build a successful business, you need more than a plan on paper; you need clarity, strategy, and a deep understanding of your market and financials. It’s time for banks, financing programs, and even angel investors to get it right and demand more than a standard business plan template. Only then will both the business and the lender see the long-term success they’re striving for.

Perhaps they, too, can then achieve success rates in the 90th percentile.

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October 2, 2024by David Klemt David Klemt No Comments

5 Books to Read this Month: October 2024

5 Books to Read this Month: October 2024

by David Klemt

Our October book selections focus on restaurant and bar interior design, developing leadership skills, an infamous liqueur, and themed cocktails.

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

Let’s jump in!

Dining Out: The New Restaurant Interior Design

Impactful bar, restaurant, and hotel design is paramount. Your space is how your guests interact with your brand in person and online. It’s much more than just four walls; your venue is the physical manifestation and representation of your concept. Therefore, it’s important that you nail your design details. I think you’ll find Dining Out inspiring.

From Amazon: “The book takes the reader on a journey to some of the most cutting-edge examples in restaurant design and architecture from around the world. With a descriptive text for each project, it focuses on the craftmanship, color schemes, decorative details, lighting and furnishings that form the identity of the space, serving as a source of inspiration and reference for professional designers, foodies and other people involved in the restaurant business. Interior and exterior photographs, as well as blueprints of each design, present the reader with a rich range of styles, from modern minimalist spaces to ones defined by bold contemporary colors, a sleek industrial look or designs that look to the past for inspiration.”

Order your hardcover copy here.

Reset: How to Change What’s Not Working

Part of being an entrepreneur or member of a leadership team is implementing new initiatives. And sometimes, after monitoring these new initiatives for a set amount of time, we find out that they’re just not working. So, what do you do? This book will help you take decisive, timely action.

From Amazon: “Changing how we work can feel overwhelming. Like trying to budge an enormous boulder. We’re stifled by the gravity of the way we’ve always done things. And we spend so much time fighting fires—and fighting colleagues—that we lack the energy to shift direction.

“But with the right strategy, we can move the boulder. In Reset, Heath explores a framework for getting unstuck and making the changes that matter. The secret is to find ‘leverage points’: places where a little bit of effort can yield a disproportionate return. Then, we can thoughtfully rearrange our resources to push on those points.”

Place your pre-order for this book today.

Cocktails and Consoles: 75 Video Game-Inspired Drinks to Level Up Your Game Night

At the end of August, I shared some interesting information from a Datassential report. According to the intel agency, close to 200 million Americans are gamers, and that interest in gaming spans all ages. Further, gamers spent well over $50 billion on this particular hobby in 2023. Datassential also found that 45 percent of gamers have made F&B decisions after consuming video game-related ads or content, so this info is relevant to restaurant and bar operators.

From Amazon: “Created especially for video game fans, this cocktail book features controller-friendly recipes that all offer playful homage to favorite games and characters including The Oregon Trail Buck (The Oregon Trail), Pom of Power (Hades), The Miles Edgeworth MarTeani (Ace Attorney), The Cake Is a Lie (Portal), Stardrop Swizzle (Stardew Valley), Miriel, Pastor of Vows (Elden Ring), Ether (Final Fantasy XIV), Liquid Snake (Metal Gear Solid), Lady Dimitrescu Fizz (Resident Evil Village), Sardegna Simulator Spritz (Gran Turismo), Falcon Punch (Super Smash Bros.), and more. Cocktails and Consoles has the perfect drink for every player and every video game!

Click here to order your copy.

Malört: The Redemption of a Revered and Reviled Spirit

So, perhaps I’m a bit odd, but I like the taste of Malört. Strangely, even though I grew up outside of Chicago and began my journey in bars and nightclubs in the city, I didn’t try Malört until I moved to Las Vegas. If you haven’t tried it, and you have a distributor who can get it for your bar reliably, you, your staff, and your guests are in for an experience.

From Amazon: “Author and beer expert Josh Noel unpacks a uniquely American tale, equal parts culture, business, and personal relationships—involving secret love, federal prison, a David vs. Goliath court battle, and, ultimately, the 2018 sale of Jeppson’s Malört, which made Pat Gabelick, a 75-year-old Chicago woman who spent much of her life as a legal secretary, into an unlikely millionaire.”

Grab yours here!

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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October 1, 2024by David Klemt David Klemt No Comments

Program for Unique Holidays: October 2024

Program for Unique Holidays: October 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 October 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, October 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 September 2024 holidays list, click here.

October 1: The New National Taco Day

That’s right; National Taco Day has changed! You can read my article addressing this change here for more details, but what you need to know is that from today onward, National Taco Day will always fall on a Taco Tuesday.

October 2: Walk Your Dog Week

If your venue is dog friendly, and you operate in at least a decently walkable city or town, this is a great week to invite your guests to pop in for a dog treat, a bite, and a drink with their best friends.

October 4: Plaidurday

This day is dedicated to plaid. Plaid shirts, plaid pants, plaid shoes, plaid hats, plaid coats, plaid scarves, kilts featuring a tartan… If it’s plaid, encourage your guests to come by your place while they’re wearing it.

October 11: It’s My Party Day

Okay, this is an odd one. Really, it’s all about nostalgia. Technically, it’s about people revisiting their sweet sixteen parties, which is incredibly specific. Personally, I’d tap into your understanding of your guests and come up with a nostalgic theme that will appeal to them. After all, October is all about dressing up and themed parties.

October 12: National Motorcycle Ride Day

If your venue is motorcycle friendly, encourage your guests who ride to organize a ride, with a stop at your business to relax and refuel.

October 15: National Chicken Cacciatore Day

Recently, we addressed the importance of putting your spin on classic comfort foods. Chicken cacciatore, a recipe that’s about 600 years old, certainly falls into this category; it’s a classic comfort food, and your kitchen team can certainly put their own take on it.

October 21: Apple Day

We also addressed applejack, America’s first native spirit, just yesterday. Sure, you can do caramel apples or apple pie to celebrate this day, but I think you should bring your bar team into the mix, and create an LTO menu featuring applejack cocktails.

October 24: National Food Day

It sounds like this holiday is incredibly open ended, doesn’t it? A blank slate for any cuisine or food item you want to program a holiday promotion to leverage.

However, it’s specifically focused on featuring natural foods. For tips on how to build a natural, farm-to-table menu, check out KRG Hospitality chef consultant Nathen Dubé’s article here.

October 25: Chucky, the Notorious Killer Doll Day

I’ve included this because, wow, is it specific. It’s also a great day to play the Child’s Play movies and Chucky television show, within the confines of the proper licenses, of course.

October 30: National Candy Corn Day

Candy corn sucks, and if you agree (which means you’re correct), you’ll use this day to campaign against this food crime against nature.

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September 27, 2024by David Klemt David Klemt No Comments

Someone to Rely On: Accountability

Someone to Rely On: Accountability Partners

by Jennifer Radkey

To share or not to share, that is the question. More specifically, should you share your goals with others or should you keep them top secret?

I find there are three different groups of people when it comes to goal setting. There are the people who like to shout their goals from the mountaintop for everyone to hear. Then there are those who share with just a few select people. And, of course, the people who keep their goals entirely to themselves.

Is one approach better than another? The answer to that question depends on who you are telling your goals to, if anyone.

Be Strategic

You need to be strategic with whom you share your goals. Before you tell someone an intended goal you need to consider if sharing with them will affect your chances of reaching it.

There has been quite a lot of research recently on goal setting. One of these studies was done by NYU psychologist Peter Gollwitzer, and it included four tests.

In these tests subjects wrote down their goals, and then worked on them for up to 45 minutes. They were allowed to stop working on their goal at any time. Half of the test subjects kept the goals they had written down to themselves; the other half announced them out loud to the group.

Here’s the interesting thing: Those who had kept their goals to themselves spent the entire 45 minutes working on their goal, and still felt they had a ways to go before reaching it. The study participants who announced their goals to the group averaged only 33 minutes of working on their goal, and felt that they were close to completing it. So, they didn’t feel the need to continue working on it.

Essentially, they gave up on it.

Be Cautious

What does all this suggest? Well, due to how our brains work, sharing our goals gives us the same psychological satisfaction as actually achieving them. Therefore, we don’t do the same amount of hard work to reach them.

Hearing a lot of personal praise from others when we share a goal gives us that hit of satisfaction, making the process of achieving it less necessary. On the opposite end, hearing disapproval of our goals may make us doubt ourselves, and give up before even getting started.

So, should you keep your goals top secret? While research is still being done on this topic, it appears that sharing your goals with carefully selected individuals and reporting on your progress with them can actually aid you in achieving your goals.

You need an accountability partner.

Be Selective

When seeking an accountability partner you want to choose someone who embodies three main traits. They need to be impartial, honest, and positive.

An impartial accountability partner is not personally invested in whether or not you reach your goal. They come from a neutral space, and while they are rooting for you to succeed, there’s nothing in it for them either way.

They are able to provide unbiased observations, and offer a very helpful outsider perspective that often allows for greater clarity.

Friends can serve in this role if they don’t have a personal stake in whether you reach your goal. They would like you to because they want to see you succeed, but there’s nothing in it for them, no matter the outcome.

If your goal is to open a new restaurant, your spouse, as supportive and amazing as they are, may not be the best accountability partner. This is because the outcome of you achieving or not achieving this goal is going to have implications on their own life as well.

An honest accountability partner can be relied on to tell you the truth, and to ask the questions needed for you to be honest with yourself. They don’t tell you what you want to hear; they tell you what you need to hear.

In order to reach goals you need someone who will spark light on reality, someone who will point out what you are doing well, and what you may not be doing competently. They are honest in a helpful way, never in a degrading way. I don’t believe in being brutally honest; we should all be honest while remaining respectful of others.

Be Mindful

Lastly, the best accountability partners have a positive mindset. They will help you seek ways in which you can improve and grow.

A great accountability partner will cheer on your successes, and help you create action plans when reaching your goals becomes challenging. An accountability partner is there to help you thrive, not bring you down.

Effective accountability partners can be difficult to find. This is one reason why the coaching industry has taken off like it has. A good life coach becomes an accountability partner, a sounding board, and creates space for self-discovery and planning.

Unless you are organized, resilient, and dedicated to taking action, you may want to share your goals with an accountability partner who can help you stay focused and motivated along the way.

As for the social media blasts sharing your newest goals…maybe hold off on those until you have reached the goal. As good as it may feel to share with everyone, you may actually be doing more harm than good.

Cheers to personal and professional growth!

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September 24, 2024by David Klemt David Klemt No Comments

The Modern Approach to Systems: Part 2

The Modern Approach to Systems: Part 2

by Doug Radkey

Six Sigma is a data-driven methodology that focuses on reducing variability and defects in processes to improve overall quality and efficiency.

The term “Six Sigma” refers to a statistical measure that indicates a process is nearly perfect, with only 3.4 defects per million opportunities. This is a methodology that aims to streamline operations, reduce waste, and enhance guest satisfaction by eliminating errors and inconsistencies systematically.

If you want to learn more about the Kaizen approach, please refer to part one of this series, in which we outline the definition and case-study use of Kaizen in bars, restaurants, and hotels.

Introduction to Six Sigma

The concept of Six Sigma was developed by Motorola in the 1980s as a means to improve manufacturing processes and product quality.

Its development was driven by the need to meet the increasingly stringent quality standards in the electronics industry. Motorola’s success with Six Sigma prompted other companies to adopt the methodology, most notably General Electric (GE).

Under the leadership of CEO Jack Welch, GE refined and expanded Six Sigma principles, applying them across various business units to achieve significant cost savings, and quality improvements. This broader application demonstrated the versatility of Six Sigma, making it relevant across industries beyond manufacturing.

The core concepts of Six Sigma revolve around a structured problem-solving framework known as DMAIC, and a strong emphasis on data-driven decision-making. These elements are crucial for identifying inefficiencies, implementing improvements, and sustaining high-quality outcomes.

Framework

The DMAIC framework is the backbone of the Six Sigma methodology, providing a systematic approach to process improvement.

It consists of five phases:

Define: In this phase, the project team identifies the problem, defines the project scope, and sets specific goals. This includes understanding guest requirements and expectations, which are crucial for ensuring that improvements align with guests needs.
Measure: The measure phase involves collecting data on the current process to establish a baseline. Key performance indicators (KPIs) are identified, and data collection methods are standardized to ensure accuracy and consistency. This phase is crucial for quantifying the extent of the problem, and providing a foundation for analysis.
Analyze: In the analyze phase, the collected data is examined to identify root causes of defects or inefficiencies. Statistical analysis tools, such as regression analysis and hypothesis testing, are used to uncover correlations and patterns. This phase helps isolate the factors contributing to variability and defects.
Improve: Based on the insights gained from the analysis, the project team develops and implements solutions to address the root causes. This phase may involve redesigning processes, implementing new technologies, or training staff. The goal is to reduce variability, eliminate defects, and enhance process efficiency.
Control: The final phase focuses on sustaining the improvements made. Control measures are put in place to monitor the process, ensuring that changes are maintained, and that the process does not revert to its previous state. This may include implementing control charts, conducting regular audits, and setting up a response plan for any deviations.

Six Sigma’s emphasis on data-driven decision-making sets it apart from other quality improvement methodologies. By relying on empirical data and statistical analysis, Six Sigma users can make objective decisions based on facts rather than intuition.

Belt System

A unique aspect of Six Sigma is its structured certification system, represented by different belt levels, similar to martial arts.

These belts denote varying levels of expertise and responsibility in Six Sigma methodologies:

Yellow Belt: Yellow Belts have a basic understanding of Six Sigma principles, and assist in data collection and process mapping within their work areas.
Green Belt: Green Belts work on Six Sigma projects part-time while performing their regular job duties. They lead smaller projects, and support Black Belts in data analysis and project implementation.
Black Belt: Black Belts are full-time Six Sigma professionals who lead major projects, mentor Green Belts, and drive process improvement initiatives. They possess advanced statistical analysis skills, and a deep understanding of Six Sigma methodologies.
Master Black Belt: Master Black Belts are highly experienced Six Sigma experts who provide strategic direction, mentor Black Belts, and oversee large-scale improvement projects across the organization. They play a crucial role in developing Six Sigma strategies, and ensuring alignment with organizational goals.
Champion: Champions are senior executives who sponsor Six Sigma projects, and ensure they align with the organization’s strategic objectives. They provide the necessary resources and support to ensure project success.

In summary, Six Sigma is a robust methodology focused on reducing variability and defects through a structured, data-driven approach.

The DMAIC framework guides project teams through problem identification, solution implementation, and control, ensuring sustainable improvements. The certification system, with its various belt levels, provides a clear path for professional development and project management within the Six Sigma framework.

As a result, Six Sigma has become an essential tool for organizations seeking to enhance quality, efficiency, and guest satisfaction.

Applying Six Sigma to the Industry

Through the use of data-driven techniques and structured problem-solving frameworks, Six Sigma helps hospitality businesses optimize processes, enhance quality, and deliver exceptional guest experiences.

Below, I explore the application of Six Sigma in bars, restaurants, and hotels, highlighting specific areas of improvement.

Six Sigma in Bars

Analyzing Beverage Preparation Times: Six Sigma methodologies can be used to analyze the time taken to prepare various drinks, identify bottlenecks, and streamline processes. By collecting data on preparation times and using tools like time-motion studies, bars can pinpoint inefficiencies in their workflow. For instance, rearranging the bar layout, standardizing drink recipes, or optimizing the order in which ingredients are prepared can reduce preparation times. The reduction in prep time leads to faster service, happier guests, and more profits.

Reducing Waste and Improving Inventory Management: Six Sigma tools such as a root-cause analysis can help identify common sources of waste, such as over-pouring, spoilage, or theft. Bars can maintain accurate stock levels, reduce over-ordering, and minimize losses through the implementation of standardized inventory tracking systems, and the conducting of regular audits. Additionally, Six Sigma’s emphasis on data analysis can guide purchasing decisions, ensuring that inventory is aligned with actual demand.

Enhancing Guest Service: Six Sigma can be used to develop and implement comprehensive training programs that cover all aspects of service, from drink preparation to guest interaction. Bars can ensure that all employees provide a uniform level of service by setting clear performance standards, and evaluating staff regularly against this set of criteria. This consistency not only enhances the experience but also strengthens your brand’s overall equity.

Six Sigma in Restaurants

Improving Order Accuracy and Reducing Wait Times: Six Sigma methodologies can optimize the entire order-to-delivery process, from taking orders to serving food. Process mapping and flowcharts can identify potential errors or delays in the process, such as miscommunication between front-of-house and kitchen team. Implementing technology solutions such as digital ordering systems or kitchen display screens (KDS) can reduce these errors, and streamline communication. Additionally, Six Sigma’s data-driven approach can help restaurants analyze peak times and adjust staffing levels accordingly, reducing wait times and improving service efficiency.

Implementing Quality Control Measures: Six Sigma can establish quality control measures for food preparation and presentation, ensuring that each dish meets established standards. This includes defining portion sizes, cooking temperatures, and plating guidelines. Regular quality checks and guest feedback can help maintain these standards and identify areas for improvement. By reducing variability in food quality, restaurants can enhance guest satisfaction, and build a more loyal base of targeted guests.

Six Sigma in Hotels

Reducing Check-In/Check-Out Times: Six Sigma can optimize these procedures by analyzing data on check-in/check-out times, and identifying factors that cause delays. For instance, complex booking systems, insufficient staffing, or lengthy verification processes can all contribute to longer wait times. Streamlining these procedures, such as implementing mobile check-in options or express check-out services, can reduce wait times, and enhance the overall guest experience.

Enhancing Guest Satisfaction: Six Sigma can help establish and maintain high standards for room cleaning and upkeep. This involves defining cleaning protocols, setting time standards for housekeeping tasks, and inspecting rooms regularly for quality assurance. By using control charts and other Six Sigma tools, hotels can monitor the consistency of their housekeeping services, and address any deviations quickly. This attention to detail ensures that guests receive a high level of service consistently, contributing to positive reviews and repeat business.

Analyzing and Reducing Service Errors and Complaints: Service errors and complaints can impact a hotel’s reputation and guest satisfaction negatively. Six Sigma can help hotel operators analyze service errors systematically, including incorrect billing, room assignment issues, or poor guest services. Hotels can implement targeted improvements to prevent future occurrences by categorizing complaints, and identifying their root causes. This might include additional staff training, process adjustments, or technology upgrades. Addressing service issues proactively allows hotels to enhance the overall guest experience, and reduce the likelihood of negative reviews.

In conclusion, Six Sigma provides a structured and data-driven approach to improving operations in the hospitality industry. Whether in bars, restaurants, or hotels, this methodology helps businesses streamline processes, reduce variability, and deliver high-quality experiences to their customers.

Hospitality businesses can achieve operational excellence—and gain a competitive edge in a dynamic and demanding market—by embracing and implementing Six Sigma.

Benefits of a Systematic Approach

While Six Sigma and Kaizen are distinct methodologies with unique strengths, combining these approaches can provide a comprehensive framework for achieving operational excellence in the hospitality industry.

Together, they offer a balanced focus on both long-term strategic improvements and continuous, incremental changes, addressing various aspects of business operations.

Here, I explore how these methodologies can be integrated, and the benefits of leveraging both to enhance your brand’s performance.

How to Integrate Six Sigma and Kaizen

Six Sigma: Focuses primarily on identifying and eliminating defects, reducing variability, and optimizing processes through a structured, data-driven approach. It is particularly effective for tackling complex, high-impact issues that require deep statistical analysis and root-cause identification.
Kaizen: Emphasizes continuous improvement through small, incremental changes. It encourages a culture of employee involvement and teamwork, focusing on making everyday processes more efficient and effective.

Sequential Implementation

Start with Six Sigma to address critical issues, and achieve significant breakthroughs in process efficiency and quality. The DMAIC framework can be used to tackle complex problems, ensuring that major defects and inefficiencies are identified, and resolved.

Follow up with Kaizen to maintain the momentum of improvement. Once the significant issues are addressed, Kaizen can help sustain the gains by fostering a culture of continuous improvement.

This approach ensures that even minor inefficiencies are regularly identified and addressed.

Parallel Application

In some cases, Six Sigma and Kaizen can be applied simultaneously to different areas of the business.

For instance, Six Sigma can be used to optimize high-priority processes such as inventory management and order accuracy, while Kaizen initiatives focus on enhancing guest services and staff engagement.

Comprehensive Improvement

By combining Six Sigma’s analytical rigor with Kaizen’s focus on incremental change, your hospitality business can achieve comprehensive improvement(s).

Six Sigma addresses large-scale, systemic issues, while Kaizen ensures that smaller, day-to-day improvements are made consistently. This dual approach covers a wide spectrum of operational challenges, leading to more holistic development.

Enhanced Employee Engagement

Kaizen’s emphasis on involving all employees in the improvement process complements Six Sigma’s structured project management approach at the leadership level. This combination fosters a sense of ownership and accountability among staff at all levels.

Employees are encouraged to contribute ideas and solutions, creating a more inclusive and engaged workforce. The involvement of employees in both large-scale Six Sigma projects and smaller Kaizen initiatives ensures that everyone is invested in the organization’s success.

Flexibility and Adaptability

The integration of Six Sigma and Kaizen allows businesses to be more flexible and adaptable. Six Sigma provides a robust framework for addressing well-defined, complex problems, while Kaizen offers a more flexible, grassroots approach to managing change.

This adaptability is crucial in the hospitality industry, where market conditions and guest expectations can change rapidly. Businesses can respond more effectively to new challenges and opportunities by using both methods.

Balanced Approach to Cost and Efficiency

Six Sigma’s focus on reducing defects and variability often leads to cost savings through improved efficiency, and reduced waste. Kaizen, on the other hand, emphasizes optimizing everyday processes, which can lead to incremental cost reductions and efficiency gains.

Together, they provide a balanced approach to cost management, ensuring that both significant and minor inefficiencies are addressed.

To the Future

As the hospitality industry continues to evolve, the future of systematic approaches like Six Sigma and Kaizen holds promising potential for further innovations and advancements.

With the increasing integration of technology, such as AI-driven analytics and automation, these methodologies are set to become even more powerful tools for optimizing operations, and enhancing guest experiences. The future will likely see more sophisticated data analytics capabilities, enabling real-time decision-making and predictive insights that can address issues preemptively, before they impact guests.

Additionally, the focus on sustainability and ethical business practices will drive the development of new strategies that not only improve efficiency but also reduce environmental impact.

Moreover, the rise of remote work and digital collaboration tools for larger hospitality groups and portfolios will make it easier for global teams to implement and sustain these systematic approaches, regardless of geographical location. This shift will further democratize access to best practices, allowing even smaller hospitality businesses to compete on a larger scale by adopting proven methodologies.

Simplify the Journey

In light of these advancements, we encourage hospitality businesses to embrace Six Sigma and Kaizen as integral parts of their operational strategy.

Adopting these methodologies helps businesses to improve processes, reduce costs, and enhance the quality of service systematically. This not only leads to immediate benefits, such as increased guest satisfaction and loyalty, but also positions businesses for long-term success in a dynamic and competitive market.

The journey toward operational excellence is continuous, and the integration of these systematic approaches can be a game-changer. As the industry moves forward, those who invest in these methodologies will be better equipped to adapt to new challenges, and seize emerging opportunities.

We urge hospitality businesses to take action now, leveraging Six Sigma and Kaizen to build a resilient, efficient, and guest-focused operation that stands the test of time.

Image: DALL-E

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An AI-generated image of a sci-fi deep fryer flying at hyperspeed through space

September 19, 2024by David Klemt David Klemt No Comments

Innovations in Deep Frying: New Tech

Innovations in Deep Frying: New Technologies

by Nathen Dubé

If you’re deep fryer can do this, you win. At what? Everything.

Deep frying has long been a cornerstone of culinary practices, delivering crispy and flavorful dishes that delight guests, and it’s ready for innovation.

Traditional frying methods can be inefficient, costly, and environmentally unfriendly. The evolution of deep frying technology in modern kitchens has focused on addressing these issues by enhancing efficiency, reducing oil usage, and promoting sustainability.

Let’s explore the latest innovations in deep frying, focusing on oil-conserving fryers and new technologies that are transforming the industry.

Oil-Conserving Fryers and Their Benefits

Oil-conserving fryers represent a significant advancement in kitchen technology. These modern fryers are designed to reduce oil usage and operational costs while maintaining high-quality frying standards.

By optimizing the use of oil, these fryers help restaurant operators lower their expenses and minimize waste, making them an attractive option for eco-conscious businesses, and those looking to improve their bottom line.

How These Fryers Reduce Oil Usage

Oil-conserving fryers achieve their efficiency through several mechanisms.

They often feature advanced filtration systems that keep the oil cleaner for longer periods, reducing the frequency of oil changes. Efficient oil circulation methods ensure that heat is distributed evenly, which not only improves cooking consistency but also extends the oil’s usable life.

Precise temperature controls prevent the oil from overheating and breaking down, further conserving this valuable resource.

Overview of Their Role in Modern Culinary Practices

In modern culinary practices, oil-conserving fryers play a crucial role in enhancing both operational efficiency and sustainability. They allow chefs to produce high-quality fried foods with less oil, reducing costs and environmental impact.

These fryers are particularly valuable in high-volume settings such as fast-food chains, casual dining establishments, and catering operations, where oil usage is typically high.

Key Features of Modern Fryers

Advanced Filtration Systems to Maintain Oil Quality

One of the standout features of modern oil-conserving fryers is their advanced filtration systems. These systems filter out food particles and debris continuously, keeping the oil clean and extending its life.

This not only reduces waste but also ensures that the food maintains a consistent taste and texture.

Efficient Oil Circulation Methods for Consistent Cooking

Efficient oil circulation is essential for consistent cooking. Modern fryers are designed to circulate oil evenly around the food, preventing hot spots and ensuring uniform cooking.

This technology helps achieve perfect results every time, whether frying chicken, French fries, or other popular items.

Temperature Controls for Precise Frying and Energy Efficiency

Precise temperature controls are another critical feature of modern fryers. These controls allow chefs to set and maintain the exact temperature needed for different foods, ensuring optimal cooking conditions.

By preventing overheating, these controls also enhance energy efficiency, and prolong the life of the oil.

New Technologies in Deep Frying

Introduction to Low-Oil Volume Fryers and Their Advantages

Low-oil volume fryers are a recent innovation designed to use significantly less oil than traditional fryers. These fryers maintain high performance while reducing the amount of oil required, leading to lower operational costs and less waste.

They are ideal for small to medium-sized establishments looking to improve their sustainability without compromising on food quality.

The Concept and Benefits of Pressure Frying

Pressure frying is another innovative technology that has gained popularity in commercial kitchens.

This method uses a sealed environment to cook food at higher pressures and temperatures, resulting in faster cooking times, and less oil absorption. Pressure frying not only produces crispier and juicier food but also enhances energy efficiency, and reduces oil consumption.

Smart Automation: Integration of Technology for Ease of Use and Consistency

Smart automation is revolutionizing the way commercial kitchens operate. Modern fryers equipped with smart technology can automate various aspects of the frying process, from maintaining oil quality to adjusting cooking times and temperatures.

These automated systems ensure consistency, reduce the margin for human error, and free up staff to focus on other tasks.

Health and Environmental Benefits

Reduced Oil Absorption in Food for Healthier Outcomes

Innovative frying technologies contribute to healthier food by reducing oil absorption. Low-oil volume and pressure fryers, in particular, produce fried foods that are less greasy, and lower in fat.

This health benefit is increasingly important as consumers become more health-conscious, and demand healthier menu options.

Decreased Waste Generation and Its Positive Environmental Impact

Reducing oil usage and waste generation has significant environmental benefits. By extending the life of frying oil and using less of it overall, oil-conserving fryers help decrease the volume of waste oil that needs disposal.

This reduction in waste contributes to a smaller environmental footprint, and supports more sustainable kitchen practices.

The Role of Innovative Fryers in Promoting Sustainable Cooking Practices

Innovative fryers are at the forefront of promoting sustainable cooking practices. By conserving resources and minimizing waste, these technologies align with the growing trend toward sustainability in the food industry.

Restaurants that adopt these practices can not only reduce their environmental impact but also appeal to environmentally conscious guests.

Insights on the Future of Frying Technologies and Industry Trends

The future of frying technologies looks promising, with ongoing innovations aimed at further improving efficiency and sustainability.

Industry trends indicate a continued focus on reducing environmental impact and enhancing food quality, with smart automation playing an increasingly important role.

Practical Tips for Choosing and Using Fryers

Key Considerations for Selecting the Right Fryer for Your Kitchen

Choosing the right fryer for your kitchen involves several considerations, including the volume of food you need to produce, the type of food you serve, and your budget.

It’s essential to evaluate the features and capabilities of different fryers to find one that meets your specific needs.

Best Practices for Maintaining Fryers to Extend Their Lifespan and Efficiency

Proper maintenance is crucial for extending the lifespan and efficiency of your fryer.

Cleaning and filtering the oil regularly, checking and calibrating temperature controls, and performing routine inspections are all vital practices. Following the manufacturer’s maintenance guidelines will help ensure optimal performance.

Importance of Staff Training to Maximize the Benefits of New Technologies

Staff training is essential to maximize the benefits of new frying technologies.

Ensure that your kitchen staff are well trained in operating and maintaining the equipment. Regular training sessions can keep staff updated on best practices and new features, helping to improve efficiency and food quality.

Conclusion

The advantages of oil-conserving fryers and new frying technologies are clear: these innovations offer significant cost savings, improved food quality, and enhanced sustainability.

Adopting these advanced solutions make it possible for restaurants to reduce their operational costs, minimize their environmental impact, and provide healthier menu options. As the industry continues to evolve, it’s crucial for restaurant owners and chefs to stay informed about the latest technologies, and invest in equipment that supports their business goals and values.

In conclusion, adopting innovative frying technologies is not just a trend but a smart business decision. The benefits of reduced oil usage, improved efficiency, and enhanced sustainability make these technologies a valuable addition to any commercial kitchen.

By prioritizing the integration of these advanced fryers, restaurants can achieve greater success, and contribute to a healthier and more sustainable food industry.

Image: Microsoft Designer

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The Tea Lounge inside the lobby of Capella Bangkok, number one on the 2024 World's 50 Best Hotels ranking

September 18, 2024by David Klemt David Klemt No Comments

The World’s 50 Best Hotels: 2024

World’s 50 Best Unveils the top Hotels of 2024

by David Klemt

The Tea Lounge inside the lobby of Capella Bangkok.

Announced yesterday at The World’s 50 Best Hotels ceremony in London, England, the best hotel in the world features 101 rooms, suites and villas.

In direct contrast to the manic, fast-paced city in which it’s located, Capella Bangkok is a serene oasis. Floor-to-ceiling windows provide panoramic, mesmerizing views of the Chao Phraya River, and allow sunlight to flood into their generous rooms.

Speaking of rooms, their smallest is more than 650 square feet; suites range from over 1,000 square feet to well over 2,000 square feet. Accommodations are more like luxury apartments than mere hotel rooms.

And for those discerning guests who demand only the absolute best? There are two stunning villas to choose from, one of which is the Presidential Villa.

I think we’ve all been curious what hotel, if any, would climb past Lake Como’s Passalacqua to claim the number-one spot. Would the property belong to a massive portfolio? Be a heritage property or a new build? How many keys would the hotel that claims the crown boast?

Will Passalacqua repeat their 2023 feat and hold the top spot for a second year?

We now have the answer to those questions. And we know that while Capella Bangkok will now sit upon the World’s 50 Best Hotels throne for at least the next 12 months, Passalacqua still claimed the number-two spot.

Of course, along with the Best Hotel in the World Award, the 2024 World’s 50 Best Hotels also revealed the best hotels in Africa, Asia, Europe, North America, Oceania, and South America. This year’s ceremony also featured three brand-new awards, which you’ll find below.

American Express Travel One to Watch Award

The Peninsula Istanbul (opened February 2023)

Ferrari Trento Most Admired Hotel Group Award

Aman

SevenRooms Icon Award

Sonia Cheng, CEO of Rosewood Hotels & Resorts

The World’s 50 Best Hotels 2024: 50 to 11

Kokomo Private Island (Yaukuve Levu Island, Fiji)
The Tasman (Hobart, Tasmania, Australia)
Hotel Esencia (Tulum, Quintana Roo, Mexico)
The Brando (French Polynesia)
The Connaught (London, England, UK)
Six Senses Zighy Bay (Dibba, Oman)
Singita Lodges – Kruger National Park (Kruger National Park, South Africa)
Suján Jawai (Rajasthan, India)
Hotel Castello di Reschio (Umbria, Italy)
Gleneagles Hotel (Auchterarder, Scotland)
Le Bristol (Paris, France)
Amangalla (Fort Galle, Sri Lanka)
Royal Mansour, Marrakech (Marrakech, Morocco)(No. 3 Gin Art of Hospitality Award)
Aman New York (New York, New York, USA)
Eden Rock – St. Barths (Saint Barthélemy)
Hotel Bel-Air (Los Angeles, California, USA)
Four Seasons at The Surf Club (Miami, Florida, USA)
Capella Singapore (Singapore)
Four Seasons Madrid (Madrid, Spain)
La Mamounia (Marrakech, Morocco)
The Carlyle (New York, New York, USA)
One&Only Mandarina (Puerto Vallarta, Jalisco, Mexico)
Mount Nelson (Cape Town, Western Cape, South Africa)(The Best Hotel in Africa)
Park Hyatt Kyoto (Kyoto, Japan)
The Siam (Bangkok, Thailand)
The Calile (Brisbane, Queensland, Australia)(The Best Hotel in Oceania)
Rosewood São Paulo (São Paulo, Brazil)(The Best Hotel in South America)
The Lana (Dubai, UAE)
Bulgari Tokyo (Tokyo, Japan)(Nikka Whiskey Best New Hotel Award)
Desa Potato Head (Bali, Indonesia)
Borgo Santandrea (Amalfi, Italy)
Four Seasons Firenze (Florence, Tuscany, Italy)
Maroma (Quintana Roo, Mexico)(Flor de Caña Eco Hotel Award)
Hotel du Cap-Eden-Roc (Antibes, France)
Chablé Yucatán (Chocholá, Yucatán, Mexico)(The Best Hotel in North America)
Hotêl de Crillon (Paris, France)
Four Seasons Bangkok at Chao Praya River (Bangkok, Thailand)
Raffles London at the OWO (London, England, UK)(Lavazza Highest New Entry Award)
Mandarin Oriental Bangkok (Bangkok, Thailand)
Claridge’s (London, England, UK)

The World’s 50 Best Hotels 2024: 10 to One

Nihi Sumba (Sumba Island, Indonesia)
Atlantis The Royal (Dubai, UAE)(The Highest Climber Award: Number 44 in 2023)
Soneva Fushi (Eydhafushi, Maldives)(The Lost Explorer Mezcal Best Beach Hotel Award)
Aman Tokyo (Tokyo, Japan)
Raffles Singapore (Singapore)
The Upper House (Hong Kong, People’s Republic of China)
Cheval Blanc (Paris, France)
Rosewood Hong Kong (Hong Kong, People’s Republic of China)
Passalacqua (Moltrasio, Como, Italy)(Carlo Alberto Best Boutique Hotel Award)(The Best Hotel in Europe)(Number 1 in 2023)
Capella Bangkok (Bangkok, Thailand)(The Best Hotel in the World)(The Best Hotel in Asia)

Congratulations to the team behind Capella Bangkok for earning the number-one spot on the second-annual World’s 50 Best Hotels list!

Main Image courtesy of The World’s 50 Best Hotels. Capella Bangkok image: PanoramicStudio

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An AI-generated image of an open hand "holding" gears that are hovering over the palm, illustrating the concept of systems

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.

Image: DALL-E

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An AI-generated image of a tattooed female bartender, standing and smiling behind the bar

September 12, 2024by David Klemt David Klemt No Comments

How do You Measure Success?

How do You Measure Success?

by David Klemt

That’s a lot of pens…and possibly paintbrushes.

When you take a moment to reflect on your business, what does success mean to you, and what steps are you taking to achieve it?

One obvious measure of success, of course, is monetary. Whether you operate a bar, restaurant, cafe, lounge, nightclub, hotel or other hospitality business, this is a stressful business. Why subject yourself and your team to the hardships hospitality throws at us if there are no financial rewards?

To many, a successful business is one that operates a profit. One that provides the entire team with not just enough money to get by but to thrive and experience financial freedom.

I like to think that most—the vast majority would be nice—operators want the people who believe in their vision enough to work with them to achieve it to make more than just a living wage.

Speaking of buy-in from others, finding people eager to work for them is a measure of success to some operators.

Others find success in achieving accolades. If we were to look at these operators and those who measure success financially, there would surely be an overlap in a Venn diagram.

Operators who find awards, invitations to share their stories, and opportunities to speak and educate others find the validation of their vision to mean they’re successful.

There’s absolutely nothing wrong with measuring success by profits and awards earned. After all, a hospitality business won’t be a business for long if it operates in the red, or people are unaware it exists.

But what about considering how your business makes you feel?

For Your Condsideration

Yes, I’m going to talk about feelings. Our industry is too challenging to pretend money is the only thing that matters. And we simply can’t keep ignoring the topic of mental health and the toll the hospitality industry can take on a person.

So, let’s take a moment to consider some key questions.

Is just the thought of your business accompanied by positive or negative feelings? When it’s time to head into your restaurant, bar or hotel, are you happy and excited? Or does the thought fill you with stress, or worse yet, dread?

I’m speaking on balance, of course. Stress is inescapable. New operator? Stress. A year or two in? Stress. Veteran operator? Stress.

On the whole, however, do you feel satisfied with what you’ve built, and what you’re operating? When you consider your business and brand, are you proud?

Satisfaction, Happiness, and Pride

I was reading a profile on Hotel Management a few days ago that I’m still thinking about.

Speaking of the brand and success, Red Roof Inn president Zack Gharib says, “To me, [ultimately], the measurement is, how are we making the people feel who are invested in us most—our employees, our franchisees, our communities, our guests? If there’s a sense of satisfaction and happiness and pride to be part of [the brand], then we have achieved success.”

Again, there’s nothing wrong with measuring the success of your business in financial terms. When we’re working with a client to bring their vision to life we’re laser focused on long-term financial viability.

However, leading your business toward becoming a brand you’re proud of and happy to operate should also be a consideration.

Picture operating your business so well that your team is proud to work for you. Imagine how you’d feel if the people you serve feel pride having your business in the community.

This business is too challenging to allow it to drain you psychologically, physically, and financially. If you’ve lost control of parts of your business or lost sight of your vision, it’s time to stabilize. Should you feel that you want to build your brand into something bigger, it’s time to consider scaling it. If you’re not proud to tell people about your business, you need a shift in mindset.

Image: Microsoft Designer

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An AI-generated image of a chef-owner and head chef reviewing a restaurant menu

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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