Hotel Operations | KRG Hospitality

Buffalo Trace Distillery bourbon barrels

June 7, 2022by David Klemt David Klemt No Comments

8 Bottles for National Bourbon Day

8 Bottles for Bourbon Day

by David Klemt

Next week, June 14, is National Bourbon Day, the day America celebrates the country’s “native” spirit.

Clearly, that means one thing: Make sure your promotion catches the eye of the whiskey aficionados, bourbon lovers, and bourbon curious among your guests.

One of the most effective ways to boost traffic on National Bourbon Day is deceptively simple. Simply put, add new bourbon releases to your inventory.

Of course, you should also ensure you have enough of what your regulars normally drink on hand. And let’s not neglect your bourbon cocktails.

First Things First

When deciding what to feature on your promotional or LTO menus, there’s a smart and simple first step to take.

You probably already know what I’m going to suggest: Run reports.

What are your top-selling bourbons? Which are more burden than bourbon, collecting dust in your inventory?

Introduce new bourbons recently? How are they selling?

Then there’s the cocktail menu. Do you know which cocktails are your guest favorites and which they’re not ordering? Are any of these bourbon cocktails?

So, don’t just jump into National Bourbon Day by guessing or assuming what bottles and cocktails to promote. Instead, leverage the power of your POS and run reports. Put hard data behind your promotions, always.

Of course, that’s not your only resource. Curious about what your guests would like to see on the menu and back bar? Ask your bar team.

New Releases

Now, this may come as a shocker: People want to try what’s new. Yeah, I know—hot take.

So, if people want the new thing, give ’em what they want. Below you’ll find some bottles worth asking your reps about for National Bourbon Day.

Obviously, you should ensure you have plenty of the standards on hand. And be cautious about just how much new bourbon you bring in. After all, you don’t have data on how they’ll perform yet.

That said, here are some bottles worth considering.

Basil Hayden Subtle Smoke

Far too often, “smoky” on a label means “tastes like you’re drinking a campfire.” Of course, some of us are into that, depending on our mood or personal tastes.

However, some guests aren’t into smoke bombs. Basil Hayden Subtle Smoke delivers what’s on the label: their high-rye Kentucky bourbon with smoke notes that aren’t overwhelming.

Ben Holladay

Don’t freak out after you read the following sentence. Not all bourbon comes from Kentucky.

Of course, you and your team probably know that. And I’m sure we all think that by now, people know a whiskey doesn’t need to come from Kentucky to be bourbon. However, there are still people who think otherwise.

Educate them with bottled-in-bond Ben Holladay, crafted in Missouri. It’s an interesting bottle labeled Real Missouri Bourbon. According to laws enacted in 2019 and 2020, for a whiskey to earn that designation the producer must:

mash, ferment, distill, age, and bottle in Missouri;
age in oak barrels made in Missouri; and
be made with corn grown in Missouri.

Bottled-in-bond and Real Missouri Bourbon. This bottle should get your guests’ attention.

Blood Oath Pact No. 8

When it comes to bourbon releases, Blood Oath Pacts are always big news. Blood Oath Pact No. 8 should be a welcome addition by the bourbon lovers among your guests.

For this release, Lux Row Distillers combined a a 14-year ryed bourbon, an 11-year ryed bourbon, and an 8-year ryed bourbon finished in Calvados casks.

OKI Reserve

The OKI story goes that two entrepreneurs in Ohio, Chad Brizendine and Jake Warm, bought the brand from New Riff Distilling two years ago.

For those wondering, OKI stands for “Ohio, Kentucky, Indiana,” the tri-state area responsible for most of the world’s bourbon. According to OKI, 99 percent of OKI Reserve is more than eight years old.

Thomas S. Moore

Alright, I’ll admit it—I count this section as four bourbons. But I have a good reason for doing so.

Thomas S. Moore is crafted by Barton 1792 and consists of four expressions: Cognac, Madeira, sherry and Merlot. Any one of these alone is worth the time and effort for a bourbon or whiskey lover to track down. However, think of the potential having two or more expressions available to taste against one another offers you and your guests.

Each Thomas S. Moore expression starts with five- or six-year-old Barton 1792 high-rye bourbon. Depending on the cask used for finishing, the bourbon is aged for another one to four years.

Image: Josh Collesano on Unsplash

June 6, 2022by David Klemt David Klemt No Comments

Back of House Report: The Labor Challenge

Back of House Report: The Labor Challenge

by David Klemt

A recent report from Back of House reveals opportunities for operators amidst the current staffing challenge.

In their report, the restaurant technology platform suggests effective hiring and retention solutions. For example, helping staff find meaning in their work.

To download and access the report in its entirety, please visit BackOfHouse.io.

For some of the platform’s insights into staffing, keep reading.

Why People Leave the Industry

Obviously, people take jobs for a variety of reasons. Often, a person’s first job has one or two motivations: money and/or experience.

Some estimates put a gig in the restaurant industry as the first job for a third of Americans. In Canada, restaurants are the top employers for those under 25 years of age.

However, Back of House sees value in looking at a different metric: Why people leave the industry.

As Back of House states, knowing why someone would leave their job helps an operator determine what benefits to offer to retain talent.

Now, it may be tempting to assume pay is the top reason people leave jobs. Per Back of House, however that’s not the case. Broken down by age group, below you’ll find the reasons people are leaving hospitality:

Pay: 26 to 35
Schedule: 46 to 55
Lack of opportunities: 26 to 35
Lack of benefits: 26 to 35
Work environment: 18 to 25

Look at these issues through the lens of someone moving through life. When first entering the workforce, more people want to find the right employer and workplace. From their twenties to thirties, more concern is placed on moving up, making more money, and receiving benefits. And, per Back of House’s findings, time becomes more of a consideration as people age.

Meaning and Value

Per Back of House, there are two important elements of employment that keep people engaged.

One, meaning in the work they do. In other words, feeling that their work has value. Two, staff want to feel that they’re employers value them.

Of course, both make sense, no? If a person doesn’t see their role in the industry as valuable, they’ll always be looking for the escape hatch. And if they feel that they’re employer doesn’t value them, why would they continue working for them? People, as they say, quit bosses, not jobs.

So, Back of House recommends that operators demonstrate they value their team members by:

investing in their staff;
supporting their staff; and
respecting their staff.

Now, good leaders should already do all of the above. It should go without saying but if someone feels a lack of respect, support, and interest from their employer, they’re not going to remain in their role for long.

And who could blame them? That seems like a terrible workplace and a waste of a hospitality professional’s valuable time. Time, of course, that can be better spent finding a good leader to work for who will help them progress in their career.

There are further insights one can glean from Back of House’s report. To download “Understanding the Staffing Challenge,” please click here.

Disclaimer: Neither KRG Hospitality nor its representatives received compensation to promote this report. The team at KRG simply feels all operators will find value in downloading and reading it, and considering the information contained therein.

Image: Joao Viegas on Unsplash

June 3, 2022by David Klemt David Klemt No Comments

5 Books to Read this Month: June 2022

5 Books to Read this Month: June 2022

by David Klemt

These engaging and informative book selections will help you develop next-level food and beverage skills, and motivate you throughout June, 2022.

To review May’s book recommendations, click here.

Let’s jump in!

Doctors and Distillers

As the historians in our industry have known for a while, cocktails were once considered medicinal. Of course, in some ways that’s still the case.

Industry author, speaker, and educator Camper English shows us how medicine and alcohol have long been connected throughout human history in Doctors and Distillers. Have you head of using wine as a dewormer? How about treating wounds with beer? Would you ever consider using spirits to heal a snakebite? Well, humans have done those things and more with booze. Pre-order this book today!

A Bartender’s Guide to the World

I’m just going to be blunt here: Lauren Mote probably knows more about spirits, liqueurs, and cocktails than you. That’s not a slam—she loves sharing her knowledge and helping people improve their craft and business.

Available for pre-order now for an October launch, A Bartender’s Guide to the World shares not only Mote’s journeys around the world but also more than 75 cocktail recipes. The book’s recipes are organized by their base ingredient. Additionally, there’s an entire chapter just addressing alcohol-free drinks.

The Portugal Cookbook

Chef Leandro Carreira shares well over 500 recipes in The Portugal Cookbook. These dishes range from traditional Portuguese cuisine to modern recipes.

Every region throughout Portugal is represented in this informative and mouth-watering book, including the Duoro Valley and Algarve coast. Portugal is known as a global destination for foodies and this book will definitely help you add some delicious, on-trend recipes to your menu.

Hacking the New Normal: Hitting the Reset Button on the Hospitality Industry

The world around us has changed. The food & beverage industry has changed. The hospitality industry has changed. But will some ways of life change for the better? In Doug Radkey’s second book, Hacking the New Normal, he asks the following: “Do you think you can hit the reset button on your approach to business? Do you think you can help hit the reset button on this industry? I have made the decision to do so. The question remains, have you?”

Trust and Inspire: How Truly Great Leaders Unleash Greatness in Others

Stephen M.R. Covey, author of The Speed of Trust, addresses the leadership crisis we face today. As the author of Trust and Inspire points out, the world is changing but leadership styles remain the same. That simply won’t work moving forward. It’s crucial we change how we view leadership, and develop new leadership styles and strategies if we’re going to succeed from now on.

Image: Mikołaj on Unsplash

Stay Weird neon sign with purple background

June 1, 2022by David Klemt David Klemt No Comments

Stand Out with Weird Holidays: June 2022

Stand Out with Weird Holidays: June 2022

by David Klemt

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

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

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

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

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

For last month’s list, click here.

June 4: National Bubbly Day

Fine, so maybe sparkling wines aren’t weird. Sometimes I just add holidays that have the potential to be fun while driving traffic and revenue to these lists.

As I’m sure you’re already guessing, National Bubbly Day is the perfect time to make your guests aware of your sparkling wines. Bubbly is even more attractive to guests as temperatures rise.

June 5: National Veggie Burger Day

There’s no question that plant-based food items are only growing more popular with consumers. This is the day to showcase your veggie burgers and other meat and dairy alternatives.

June 10: National Herbs and Spices Day

Without herbs and spices, where would F&B be? Task your kitchen and bar teams with creating dishes and drinks that are made better with herbs and spices. Tell your bartenders to break out the torches and light the rosemary!

June 13: International Axe Throwing Day

If you’re an eatertainment venue, bar, or restaurant with an axe-throwing setup, this is one-hundred-percent your day to shine.

June 14: International Bath Day

There are a few different ways to design a promotion around this holiday. One, you can feature distillers who specifically produce gin expressions labeled “Bathtub Gin.” Ableforth’s, for example, is one such producer. Two, you can purchase bathtub-shaped drinkware. Three, you can combine the first two for an LTO pour.

June 16: National Dump The Pump Day

It’s not exactly a secret that gas prices are rising across the nation. With that in mind, it shouldn’t be too difficult to encourage your guests to arrive at your business by bicycle, scooter, skateboard, foot, electric car, or other means of conveyance that doesn’t use gasoline or diesel for fuel.

June 20: American Eagle Day

Interested in a holiday that requires very specific planning? Try American Eagle Day.

One way to celebrate is to design a promotion around award-winning Eagle Rare bourbon. And no, they didn’t pay us to mention them. They just make really good whiskey that works great for this holiday.

June 25: National Leon Day

There’s an entire contingent of people who simply can’t wait for Christmas to come around each year. In fact, they don’t think it’s fair that they only get to celebrate it once a year.

National Leon Day is celebrated every June 25th because it’s the midway point to Christmas. So, forget Christmas in July—celebrate Christmas in June with your guests and specialty LTO menus.

June 29: National Waffle Iron Day

Your guests may be surprised to learn the number of foods that can be waffled. Create an LTO menu that showcases how creative your kitchen team can get with waffle irons. For bonus points, include your bar team with waffled garnishes.

June 30: National Social Media Day

I suppose it was only a matter of time from social media reaching ubiquity to this form of media having its own holiday. Mashable launched the first National Social Media Day in 2010.

Create post-worthy F&B items, come up with your own hashtags, and ask your guests to post pics using those tags to promote your business.

Image: Dan Parlante on Unsplash

May 31, 2022by David Klemt David Klemt No Comments

Tech Shows Up in a Big Way at NRA Show

Tech Shows Up in a Big Way at 2022 National Restaurant Association Show

by David Klemt

The number of tech platforms and solutions at the 2022 National Restaurant Association Show in Chicago was a sight to behold.

Once seemingly technology averse, our industry is awash in platform integrations, apps, and smart devices.

Drive-thru signs are reading license plates and collecting data. Digital menu signs are implementing facial recognition software. Automation is taking on more and more tasks.

Amazingly, the digital paint on the innovations we’re seeing isn’t even dry yet. While some developments may have taken years to come to market, it feels like they’re only one or two years “old.”

Here to Stay

People are still talking about a “return to normal” when it comes to the Covid-19 pandemic. To some, that means going back to their 2019 habits and lifestyles.

Well, that’s not going to happen in the restaurant, bar, or lodging spaces.

Delivery? Here to stay. Contactless payment? Not going anywhere. QR and digital menus? Commonplace at this point.

And contactless pickup? NRA Show 2022 attendees exploring the North Building encountered multiple pickup platforms.

To state the obvious, delivery is expensive. Combine inflation and rising gas prices with third-party delivery platform fuel surcharges and it’s only getting pricier.

Clearly, contactless pickup is becoming a more appealing solution for operators and their customers.

On the one hand, operators who invest in smart, contactless pickup lockers can avoid the exorbitant costs they incur from third-delivery companies. And on the other hand, customers know they can save money by picking up their orders themselves. Moreover, they know they can do so safely with contactless pickup.

Operators can now choose from an array of smart locker setups to leverage customer demand for safe, convenient takeout.

Your New Marketing Partner

Remember when people were blown away by QR code menus? Well, those are already old news.

As an aside, the fine-dining and luxury categories have been over QR codes for quite some time. However, they’re probably not going to be interested in the latest menu innovation. No, they’re much more eager to return to traditional, tactile, luxurious physical menus.

Other categories, though, will likely be interested in smart digital menus. As this tech gets smarter—perhaps terrifyingly so—your menu will be a supercharged sales associate.

There are digital menus coming to market that can recognize an operators guests…and then attempt to upsell them. The more a guest visits a venue with smart signs, the more the platform learns about them and their preferences. From there, the signs can attempt to sell them on a promotion like an LTO item.

Not long ago at all we learned that texting a consumer is a powerful way to market to them. Well, now we’re going to have the opportunity to sell them in a direct, interactive way straight from our menus.

Oh, and if this isn’t impressive enough, there are digital sign platforms capable of displaying surge prices. In the blink of an eye an operator will be able to leverage this type of pricing and revenue generation.

More Powerful POS

There were no shortage of powerful POS systems at the 2022 NRA Show. If anything, there are almost too many options out there for operators to consider.

However, we don’t think this is a bad problem to have. In fact, tech stack selection is one of KRG Hospitality’s key services.

Now, I’m not saying operators need to chase the newest, shiniest POS on the market. If what an operator has is working smoothly and they’re getting the most of their POS every day, there’s no reason to invest in a completely new platform.

But along with POS developments come powerful integrations. Case in point, Lunchbox. In simple terms, Lunchbox is an online ordering, marketing, loyalty, and guest subscription platform.

Recently revamped, this fun brand (one of the coolest booths at the show, if not the coolest) boasts an average increase in same-store sales of 52 percent. Additionally, Lunchbox customers (per the company) experience an average of 42 percent month-over-month revenue growth.

As impressive is the fact that this platform integrates with several top POS systems, including Toast, Oracle’s Micros, NCR’s Aloha, and Revel.

What a time, eh?

Photos taken by and property of author

May 27, 2022by David Klemt David Klemt No Comments

Plants Dominate 2022 NRA Show

Plants Dominate 2022 National Restaurant Association Show

by David Klemt

The National Restaurant Association Show is back in a big way, and meat alternative brands are establishing themselves as much more than a trend.

In particular, plant-based brands made their presence known in the Lakeside Center.

However, some big companies also showcased their animal alternatives in the South Building. Among them, Beyond and Daiya.

Notably, Daiya brought with them their freshly reformulated cream cheese alternative. They also had a creamy, flavorful queso at their booth.

Chik’n

Unsurprisingly, meatless chicken—often stylized as “chik’n”—dominated the NRA Show floor.

However, exhibitors showed off more than just nuggets and fingers. This year was more about innovation.

For example, more than one company is rolling out chik’n wings. Of course, there are no bones, so they’re more akin to nuggets.

Essentially, these chicken alternatives are boneless “wings.” And as we all know, boneless chicken wings are just chicken chunks with better marketing.

Really, it’s the seasoning, heat, and shape that define the chik’n wing. At least, that’s what they are for now. I expect further innovation and refinement for these wings.

Interestingly, some brands appear to be taking on the chicken breast. Now, there weren’t many meatless companies featuring these on the NRA Show floor. Still, there were a couple and their products looked the part.

The textures are also quite close to their meaty counterparts. But I think there’s still work to do.

Plant-based Seafood

Of all the plant-based alternatives, seafood was the star. The CEOs of big brands have been working on these products for several years.

Well, we certainly saw the fruits of their investments at this year’s NRA Show.

Fish fillets, crab cakes, fish patties (including salmon), fish sticks, tuna flakes, shrimp… All were available to sample at exhibitor booths.

Crucially, the flavors and textures were close to the real thing. However, the shrimp mostly relied on being coated in seasoning to mimic their animal-based counterpart.

That said, seeing so many brands committed to bringing plant-based seafood to market was impressive.

Further, the seafood-focused companies are touting the eco-friendliness of their products. Plant-based seafood, they say, can help stop overfishing and stop the reduction of biodiversity in our oceans.

If they appeal to consumers and reduce harm to the planet, these products could perform well in foodservice. Good for the planet and good for the bottom line seems like a win-win to me.

Takeaway

As the 2022 NRA Show showed, plant-based is no longer a trend. These products ceased being a fad long ago.

Now, it’s clear the category is here to stay. The products categories like chik’n are seeing more innovation. Seafood will improve. Other meat alternatives are also improving.

Of course, whether they’re healthy, well, that’s another story. However, consumers seem to want these items regardless.

One thing is obvious, though: The plant-based category is proliferating and will soon reach ubiquity.

Images taken by author

Tales of the Cocktail Red Coat apprentices

May 25, 2022by David Klemt David Klemt No Comments

2022 Cocktail Apprentice Program Class

TOTC Announces 2022 Cocktail Apprentice Program Class

by David Klemt

The Tales of the Cocktail Foundation has announced the 32 members of this year’s Cocktail Apprentice Program, also known as CAP.

For 2022, the CAP apprentices come from seven countries, Washington, D.C., fourteen American states, and Puerto Rico. First launched in 2008, CAP has played host to over 400 apprentices.

These bar professionals are thrown into the organized chaos that is Tales of the Cocktail each year. Well, to be fair, the event likely only feels like chaos to Tales attendees. This gathering of hospitality pros is a precision machine behind the scenes.

Of course, CAP apprentices and veterans are one of the keys to Tales’ success. These bar pros work together to prepare cocktails for for Tales seminars. They also make the many tastings possible. CAP Red and Grey Coats also batch the Dame Hall of Fame and Spirited Awards drinks.

As you’ll see while reviewing the lists below, CAP Red Coats work at some of the world’s premier bars, restaurants, hotels, distilleries, portfolios and brands, and hospitality groups. Moreover, they gain an incredible amount of experience and mentorship from industry veteran Grey, Black, and White Coats.

Valuable Experience

This is, of course, great news for attendees. Many will recognize the names and venues below. And, hey, these apprentices keep the good times flowing at Tales.

But there’s another reason this news is important.

Operators should encourage their bar team stars to apply to be TOTC CAP apprentices each year. The program is open to bartenders, barbacks, and bar managers.

Considering who they’ll meet, work with, and learn from, operators can think of CAP as an investment in their bar team.

In addition to returning to work with a wealth of knowledge and new industry contacts, they’ll be eligible to apply for the Cocktail Apprentice Scholarship Program. Since 2022 CAP Red Coats can apply when applications open next year, it’s reasonable to assume that 2023 Red Coats will be eligible to apply in 2024 for the TOTCF Cocktail Apprentice Scholarship Program.

So, operators who are serious about furthering their bar team’s careers and helping to mentor them should help them apply for the 2023 Cocktail Apprentice Program.

2022 Red Coats

Below are this year’s 32 CAP Red Coat apprentices. You’ll also find their place of work.

Patience Adjei, Twist Night Club and Level Up Lounge (Accra, Ghana, West Africa)
Gerald Akins, Hamlet and Ghost (Saratoga Springs, NY)
Israel Baròn, Casa Prunes (Mexico City, Mexico)
Tammy Bouma, Bluebird Cocktail Room (Baltimore, MD)
Dylan Brentwood, Bar Kismet (Halifax, Nova Scotia, Canada)
Napier Bulanan, Viridian (Oakland, CA)
Yosue Cordero Badillo, Fairmont El San Juan Hotel (Carolina, Puerto Rico)
Chelsea DeMark, Thompson Hotel Savannah (Savannah, GA)
Milton Deya, Melinda’s Alley (Phoenix, AZ)
Linda Douglas, Curly Bartender (Los Angeles, CA)
Kai Duarte, Pacifico on the Beach and Down The Hatch (Wailuku, HI)
Cody Dunavan, Breakthru Beverage Virginia (Richmond, VA)
Glenn Eldridge, ROKA (Dubai, United Arab Emirates)
Tim Frandsen, Jane Jane (Washington, D.C.)
John Fry, Rumba / Inside Passage (Seattle, WA)
Delena Humble-Fischer, Golden Pineapple Craft Lounge (Tempe, AZ)
Princess Johnson, Allegory (Washington, D.C.)
Maria Kim, Southside Parlor (Seoul, South Korea)
Sungjoo Koo, Midnight Rambler (Dallas, TX)
Rylen Komeiji, Here Kitty Kitty / Zouk Group (Las Vegas, NV)
Lars Lunstrum, The Black Cypress (Pullman, WA)
Jacob Mentel, Polite Provisions (San Diego, CA)
Brian “Vito” Morales, Saso Bistro (Pasadena, CA)
Julian Bella Robins, Pursuing MS in Hospitality Management at FIU (Tel Aviv, Israel)
Jomar Santos, The Peacock Lounge Savannah (Savannah, GA)
Jeremiah Simmons, Seven Three Distillery (New Orleans, LA)
Colin Simpson, The Aviary (Chicago, IL)
Taylor Sweeney, Bar Shiru (Oakland, CA)
Vivi Szalavari, Uptown Cafe (Bloomington, IN)
Irlanda Vargas, Bacal (Mexico City, Mexico)
Noor Wafai, The Eddy & Durk’s Bar-B-Q (Providence, RI)
Tim Weigel, Vegas Vickie’s (Las Vegas, NV)

2022 Grey Coats

Identifiable by their grey chef coats, Grey Coats are CAP leaders.

Hagay I. Abramovitz, Imperial Craft Cocktail Bar (Tel Aviv, Israel)
Justine Bock, Gin & Juice (Bristol, UK)
Patrick Braga, Happy Accidents (Albuquerque, NM)
Fifi Bruce, Barrel Brothers (Berlin, Germany)
Richie Delahoyde, Lyre’s Non Alcoholic Spirits (Dublin, Ireland)
Amy Dunki, Barr Hill and Caledonia Spirits (Los Angeles, CA)
Arianna Hone, High West Saloon, Post Office Place (Park City, UT)
Renson Malesi, House of Sage Cocktails (Nairobi, Kenya)
Nicholas McCaslin, The Ritz-Carlton Nomad (New York City, NY)
Allie Phifer, Cayo Coco Rum Bar and Restaurante (Birmingham, AL)
Jessi Pollak, Spoon and Stable (Minneapolis, MN)
Eric Scott, Thyme X Table (Bay Village, OH)
Britt Simons, The Eddy (Providence, RI)
Joey Smith, Chez Zou (New York City, NY)
Sarah Syman, The Dandy Crown (Chicago, IL)
Nigal Vann, The Berkshire Room (Chicago, IL)

2022 Black Coats

CAP assistant managers can be identified by their black chef coats.

Cam Brown, Self-employed (Vancouver, British Columbia, Canada)
Kaleena Goldsworthy-Warnock, The Bitter Bottle and Proof Bar and Incubator (Chattanooga, TN)
Alex Lerman, Pearl Street Hospitality (Denver, CO)
Samm McCulloch, Red Wall Distillery (Sedona, AZ)

2022 White Coats

The industry veterans are CAP managers and wear white chef coats.

Alexis Belton-Tinoco, Johnnie Walker/Proof Media Mix (Chicago, IL)
Cris Dehlavi, Diageo Hospitality Partnership (Columbus, OH)
John Deragon, Resy (Brooklyn, NY)
Trevor Kallies, Freehouse Collective (Vancouver, British Columbia, Canada)
Juyoung Kang, Zouk Group at Resorts World Las Vegas (Las Vegas, NV)

Whenever you come across a Red, Grey, Black or White Coat at Tales, be sure to thank them for all their work. Well, if they don’t have their hands incredibly full. In that case, please get out of their way—they’ve got our drinks!

Image: M.S. Meeuwesen on Unsplash

May 24, 2022by David Klemt David Klemt No Comments

Alright, Seriously—WTF, Grubhub?

Alright, Seriously—WTF, Grubhub?

by David Klemt

Or, more to the point, stop working with “partners” who exploit our industry rather than support it.

In spectacular and entirely predictable fashion, Grubhub’s “free lunch” further reveals that third-party delivery platforms don’t care about restaurants.

Of course, they all say they support restaurant owners and operators. And, of course, they’re quick to pat themselves on their backs for being a pandemic lifeline.

But…no. Time and time again, mainly through their exorbitant and exploitative fees, they prove the opposite is true.

Restaurants and bars aren’t third-party delivery partners. Rather, these relationships are adversarial and detrimental. So much so, in fact, that some states passed laws to limit third-party delivery fees.

In Nevada, for example, Clark County Commissioners passed an emergency ordinance in August 2020 capping those fees at 15 percent. Clearly, we need to stop enriching companies that prove they don’t support the hospitality industry but cause it significant harm.

Free Lunch?

They say there’s no such thing as a free lunch. Apparently, Grubhub really wants to prove that maxim true.

That’s one of the takeaways from their disastrous promotion. Last Tuesday, in what’s being reported as an attempt to claim the delivery throne in New York City, Grubhub offered “free” lunch to anyone who placed an order for delivery.

The requirements for this promotion? Place an order for delivery through Grubhub on May 17 between 11:00 AM and 2:00 PM and use the code “freelunch.”

Of course, customer orders weren’t entirely free. Rather, the code was good for a $15 discount. Still, a wildly attractive offer as the ensuing debacle reveals.

Unsurprisingly, the promotion made for some eye-grabbing and eye-rolling headlines. Buzzfeed News published the most attention-grabbing one: “GrubHub Was Getting 6000 Orders A Minute During Its Promo Today That Left Restaurant Workers Stressed And Customers Hangry.”

Six thousand orders per minute during a promotion with a three-hour window in a single market.

In addition, the outlet reported that one unsatisfied customer was number 3,630 in the Grubhub customer service queue. Apparently—and who can blame him—he hung up before he could speak with a Grubhub rep about his missing order.

Duh

Who could’ve seen this coming? Any of the restaurant owners, operators, or team members Grubhub “serves,” that’s who.

In fact, anyone who works in this industry with on-premise experience knew this was going to happen. So, too, any journalist who specializes in hospitality.

The fact that whoever came up with this promotion didn’t see this coming is revealing. Unless the creators of these apps and services have real-world restaurant experience, they don’t understand the business.

How can one effectively and properly serve an industry without an understanding of how it operates? Hospitality is about service. Shouldn’t the companies attempting to work within our industry work hard to serve alongside us?

Let’s be clear—this promotion was in no way designed to help struggling restaurants. It wasn’t intended to boost their traffic and revenue. Rather, it was solely created to serve Grubhub’s desire to be number one.

As we all know, we’re experiencing major staff shortages. There are also supply shortages making it difficult for operators to obtain product reliably. Grubhub made those problems exponentially worse.

Some restaurants stopped taking delivery orders. Others canceled orders. There were operators who closed in an effort to catch up with orders and prevent the situation from worsening.

According to news stories, some social media users posted that they planned to stop ordering through third-party platforms.

Negative Impact

If you’re new to KRG Hospitality, welcome. You’re likely realizing that we’re not fans of third-party delivery.

Those of you who are familiar with us have known for quite some time that we support direct delivery. That is, delivery controlled and executed by the restaurant itself.

It’s not that we’re against innovation. Rather, our dislike of these platforms, generally speaking, comes from our perception of their behavior.

In our opinion, they take control away from operators and cost them money. Again, speaking generally, they collect customer data that operators should control. Their fees are ridiculous in most cases. And when it comes to the customer experience, their inconsistencies and shortcomings reflect poorly on the operators far too often.

Studies show that customers who have issues with third-party deliveries often place the blame on the restaurant. Food the wrong temperature? Order arrive late? Packages in less-than-ideal condition? While those issues and others can be the fault of the driver, the restaurant often takes the brunt of a customer’s dissatisfaction.

Of course, there’s also the financial impact of third-party delivery on restaurants. A SevenRooms report from last year reveals how these platforms harm operators and their bottom lines.

The Solution

Look, we know operators have a ton on their plates. But protecting and boosting the bottom line is a non-negotiable element of this business.

Yes, it’ll take some time, effort, and money to set up direct delivery. However, it’s the best solution.

Direct delivery means the operator collects and control valuable data. Likewise, the operator can ensure consistency. Through direct delivery, the operator shapes and controls the experience.

Control. Inherently, third-party delivery takes some control away from operators. That’s not a good thing, and neither is their financial impact.

Look into setting up direct delivery, take control, and protect your revenue ASAP. Friend of KRG “Rev” Ciancio and SevenRooms CEO Joel Montaniel each address delivery on the Bar Hacks podcast. Listen to episode 13 with Rev and episode 24 with Joel to learn more about delivery.

We need to stop rewarding companies that exploit our industry and take advantage of our owners, operators, and hard-working staff members.

Direct delivery is the answer. Take steps to implement it today.

Image: Rosie Kerr on Unsplash

U.S. Capitol Building exterior, cloudy blue skies

May 23, 2022by David Klemt David Klemt No Comments

Breakdown: How Senators Voted on RRF

Breakdown: How Senators Voted on RRF

by David Klemt

After a year of waiting, we now know the fate of the Restaurant Revitalization Fund: a 52 to 43 vote that saw RRF replenishment fail on the Senate floor.

Last Thursday, the US Senate voted to debate the Small Business COVID Relief Act of 2022 (S.4008). A filibuster put an end to this effort to replenish the RRF.

To be blunt, this is a disgrace. Eligible RRF applicants have been awaiting needed and deserved grants for a year. We were left out of Build Back Better, we were left out of the $1.5 trillion omnibus spending bill passed in March.

A contributing factor to why this is so disappointing is the passing of S.3811. Of particular note, 32 of the senators who voted against $40 billion for American restaurants and bars voted in favor of $40 billion for supplemental aid for Ukraine.

Now, I’m not saying that Ukraine doesn’t deserve our support. Likewise, I’m not saying that we shouldn’t have voted to provide the war-torn country $40 billion in aid.

However, I am saying that I find it indefensible that dozens of our senators would send that kind of money overseas, then turn around and deny relief for American businesses.

In one moment we have senators saying America needs to come first. They then proceed to turn their backs on hard-working Americans.

Nay Votes

Unfortunately, 43 senators—all Republican—voted against the Small Business COVID Relief Act of 2022. Therefore, they voted against replenishing the RRF.

However, that doesn’t mean all Republican senators voted against the bill. Indeed, four Republicans voted with their Democrat and Independent peers.

Barrasso (R-WY)
Blackburn (R-TN)
Boozman (R-AR)
Braun (R-IN)
Burr (R-NC)
Capito (R-WV)
Cornyn (R-TX)
Cotton (R-AR)
Cramer (R-ND)
Crapo (R-ID)
Cruz (R-TX)
Daines (R-MT)
Fischer (R-NE)
Graham (R-SC)
Grassley (R-IA)
Hagerty (R-TN)
Hawley (R-MO)
Hoeven (R-ND)
Hyde-Smith (R-MS)
Inhofe (R-OK)
Johnson (R-WI)
Kennedy (R-LA)
Lankford (R-OK)
Lee (R-UT)
Lummis (R-WY)
McConnell (R-KY)
Moran (R-KS)
Paul (R-KY)
Portman (R-OH)
Risch (R-ID)
Romney (R-UT)
Rounds (R-SD)
Rubio (R-FL)
Sasse (R-NE)
Scott (R-FL)
Scott (R-SC)
Shelby (R-AL)
Sullivan (R-AK)
Thune (R-SD)
Tillis (R-NC)
Toomey (R-PA)
Tuberville (R-AL)
Young (R-IN)

Yea Votes

It’s important to remember that the Small Business COVID Relief Act of 2022 was a bipartisan effort. Sens. Ben Cardin (D-MD) and Roger Wicker (R-MS) introduced the bill, which included $40 billion for the RRF and $8 billion for other businesses.

Four Republican senators and two Independents voted in the affirmative with all Democrats.

Baldwin (D-WI)
Bennet (D-CO)
Blumenthal (D-CT)
Blunt (R-MO)
Booker (D-NJ)
Cantwell (D-WA)
Cardin (D-MD)
Carper (D-DE)
Casey (D-PA)
Cassidy (R-LA)
Collins (R-ME)
Coons (D-DE)
Cortez Masto (D-NV)
Duckworth (D-IL)
Durbin (D-IL)
Feinstein (D-CA)
Gillibrand (D-NY)
Hassan (D-NH)
Heinrich (D-NM)
Hickenlooper (D-CO)
Hirono (D-HI)
Kaine (D-VA)
Kelly (D-AZ)
King (I-ME)
Klobuchar (D-MN)
Leahy (D-VT)
Lujan (D-NM)
Manchin (D-WV)
Markey (D-MA)
Menendez (D-NJ)
Merkley (D-OR)
Murkowski (R-AK)
Murphy (D-CT)
Murray (D-WA)
Ossoff (D-GA)
Padilla (D-CA)
Peters (D-MI)
Reed (D-RI)
Sanders (I-VT)
Schatz (D-HI)
Schumer (D-NY)
Shaheen (D-NH)
Sinema (D-AZ)
Smith (D-MN)
Stabenow (D-MI)
Tester (D-MT)
Warner (D-VA)
Warnock (D-GA)
Warren (D-MA)
Whitehouse (D-RI)
Wicker (R-MS)
Wyden (D-OR)

Not Voting

Three Democrat and two Republican senators didn’t vote on S.4008.

Brown (D-OH)
Ernst (R-IA)
Marshall (R-KS)
Rosen (D-NV)
Van Hollen (D-MD)

Yay Votes for Ukraine, Nay Votes for RRF

The following senators, all Republican, voted to send $40 billion in aid to Ukraine.

The same day, they voted against $40 billion to replenish the RRF, voting against American restaurants and bars.

Barrasso (R-WY)
Burr (R-NC)
Capito (R-WV)
Cornyn (R-TX)
Cotton (R-AR)
Cramer (R-ND)
Cruz (R-TX)
Daines (R-MT)
Fischer (R-NE)
Graham (R-SC)
Grassley (R-IA)
Hoeven (R-ND)
Hyde-Smith (R-MS)
Inhofe (R-OK)
Johnson (R-WI)
Kennedy (R-LA)
Lankford (R-OK)
McConnell (R-KY)
Moran (R-KS)
Portman (R-OH)
Risch (R-ID)
Romney (R-UT)
Rounds (R-SD)
Rubio (R-FL)
Sasse (R-NE)
Scott (R-FL)
Scott (R-SC)
Shelby (R-AL)
Sullivan (R-AK)
Thune (R-SD)
Tillis (R-NC)
Toomey (R-PA)
Young (R-IN)

Image: PartTime Portraits on Unsplash

United States Capitol Building exterior and blue sky

May 19, 2022by David Klemt David Klemt No Comments

US Senate Fails to Replenish the RRF

US Senate Fails to Replenish the RRF

by David Klemt

After conflicting reports and speculation, the US Senate has finally voted this week on replenishing the Restaurant Revitalization Fund.

Last week, multiple sources reported that the Senate would hold their RRF vote this week. Just days ago, several outlets sounded the alarm, reporting that the vote would be pushed to next week. The reason, these sources provided, was the Senate’s scramble to repackage and hold another vote on aid for Ukraine.

Senator Rand Paul (R-KY) blocked the bill that would provide $40 billion in defense and humanitarian aid. Unsurprisingly, it was also Sen. Paul who objected to $43 billion in emergency funding last August, killing that RRF replenishment effort.

Today, on the Senate floor, Sen. Paul repeatedly derided the replenishment of the RRF as a “bailout.” Additionally, he asked, “Where’s the emergency?”

So, one can infer that the impending closure of an estimated 50 percent of RRF applicants—88,500—isn’t an emergency to the Kentucky senator. Simple math shows that if each of those applicants has just ten employees, that’s a loss of 885,000 jobs.

Rightfully so, people throughout the industry have been more than a little concerned that the bill would receive at least 60 “yea” votes today.

At issue is where the funds would come from. While Democrats view replenishing the RRF as emergency funding, Republicans prefer to reallocate existing funds.

Senate Fails to Replenish RRF

Today’s vote was a long time coming. In fact, it’s just days shy of one year since the RRF application portal closed.

Now, after a 223 to 203 vote in the House to replenish RRF, our senators have failed us. The resulting vote was 52 to 43, falling short of the 60 “yeas” necessary

I’m not despondent over this news. Honestly, I think I’ve made it rather clear that our politicians failing us wouldn’t at all surprise me. Yet I still find myself incredibly disappointed.

Disappointed in how the RRF was handled, disappointed in the grant approval process, disappointed in how emergency funding was blocked, and disappointed in how we were left out of the Biden administration’s Build Back Better and March omnibus bills.

And gravely disillusioned now that I’ve finally learned how little many of our senators care about us. Hospitality is an industry that employed nearly 17 million people in 2019. In terms of revenue, we’re projected by the National Restaurant Association to generate almost $900 billion in sales.

Not enough, it’s clear, for a majority of senators to vote to replenish the RRF.

However, I’m mostly dismayed for the owners and operators who have waited a year just to have this lifeline yanked from their fingertips. Today’s failure in the Senate puts millions of jobs at risk.

Underfunded from the Start

For those who found themselves in RRF limbo, the wait for this vote has been agonizing.

The RRF application portal opened May 3, 2021. Initially, the process looked promising. For the first 21 days, the Small Business Administration announced, priority would be granted to small businesses with a minimum of 51 percent ownership by women, veterans or socially disadvantaged people.

However, the SBA closed the portal immediately after processing only about 101,000 priority applications, or one-third of applicants. So, ever since May 24 of last year, “non-priority” applicants have been left wondering if they’d ever receive an RRF grant.

In addition to the premature closure of the application process, the RRF was woefully underfunded. Clearly, that point was driven home when $75 billion in applications were submitted to a fund with just $28.6 billion.

So, the quick closure and unrealistic funding meant that out of the over 362,000 initial applicants, around 177,000 have been watching and waiting.

A Year-long Wait

Shortly after the RRF portal was closed, a number of Republican members of Congress sent a letter to the SBA. Per the contents of the letter, non-priority applicants wouldn’t receive grants or have the opportunity to apply for grants.

Indeed, those applicants stuck in RRF limbo have been waiting for relief for just days shy of a year. And that’s only counting the days since the portal closed. Operators across the industry, not just those who applied for RRF grants, have been scratching and clawing to stave off insolvency and closures.

Advocates such as the Independent Restaurant Coalition have been sounding the alarm. RRF applicants could be just days away from bankruptcy and needed the government to act. To be brutally honest, relief may still come too late for many applicants.

Congress has certainly had the time to vote on and replenish the RRF. In June 2021, Sens. Kyrsten Sinema (D-AZ) and Roger Wicker (R-MS), and Reps. Earl Blumenauer (D-PA) and Brian Fitzpatrick (R-PA) introduced the RRF Replenishment Act bill. In July, Rep. Blaine Luetkemeyer (R-MO) introduced an alternative bill, the ENTREE Act.

Of course, as we well know, an attempt in August to replenish the RRF with $43 billion in emergency funding was blocked by Sen. Paul. In November, Build Back Better was passed. Obviously, the RRF and our industry were left out the $1.7 trillion dollar bill. Likewise, we weren’t included in March’s $1.5 trillion omnibus spending bill.

Left Out In the Cold

So, of $3.2 trillion dollars in massive bills passed, zero were earmarked for us.

Today, our senators voted 86 to 11 for $40 billion in aid for Ukraine. However, they voted 52 to 43 to provide $40 billion in aid to American restaurants and bars.

Last month, eleven months after the portal closed, the House voted to replenish the RRF. That left the final push to the Senate.

And today, at least 43 senators made their low opinion of us known.

Image: Alejandro Barba on Unsplash