Hotel Operations

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by David Klemt David Klemt No Comments

Maximizing a Hotel’s Off-Season

Maximizing a Hotel’s Off-Season

by Doug Radkey

AI-generated image depicting a hotel owner or executive in the lobby of their property

Note: AI-generated image.

Nearly every hotel experiences an off-season during the calendar year, a period of time when they can see occupancy rates drop by as much as 30 percent.

But when did it become normalized to sit back and view this significant dip as acceptable?

With the right strategies, these periods can become opportunities for growth. Or in the very least, reduce the occupancy drop to five or ten percent.

What would that difference do to your annual outcome?

Forecast Your Off-Season

Hotel operators, independent and chain, should be mindful of the off-season, forecast demand effectively, and leverage local opportunities. This change in approach can help hotels develop comprehensive strategies to maximize revenue and occupancy during traditionally slow periods.

Being mindful of this period allows you to develop strategies proactively to mitigate its impact. This approach involves recognizing the specific months or times of year when demand traditionally drops, which can vary significantly depending on your location and target market.

For instance, a beach resort may experience a lull during the colder months, whereas an otherwise busy hotel located in the heart of a large city might see fewer guests during the summer when business travel decreases. Identifying these patterns helps operators better prepare and implement measures to attract guests and maintain profitability during these quieter times.

Effective forecasting involves analyzing historical data to identify trends and patterns in occupancy rates, daily rate, and revenue metrics. Tools such as Atomize, a dynamic revenue management system (RMS), and Mews, a property management system (PMS), can provide valuable insights by processing large amounts of data and highlighting seasonal fluctuations.

Predicting slow seasons accurately gives operators the ability to adjust their marketing strategies, pricing models, and operational plans. Doing so optimizes performance, and minimizes the negative impact of a reduction in demand.

Diversify Your Target Market

One of the most effective strategies for maximizing hotel revenue during the off-season is diversifying your target market. Broadening the scope of a hotel’s potential guests attracts new segments that may not have been the primary focus during peak periods.

This can include targeting niche markets such as wellness travelers, eco-tourists, digital nomads, and local residents looking for staycations. Each of these segments has unique needs and preferences an operator can cater to with specific packages or experiences.

To reach these off-season niche markets effectively, hotels need to create customized marketing campaigns that speak to their interests and needs directly. Personalized, targeted marketing can enhance the appeal of your hotel to these segments significantly.

For example, digital nomads, who seek remote working environments, can be attracted with packages that include high-speed internet, comfortable workspaces, and discounted long-term stays. Marketing campaigns for this segment could highlight the hotel’s co-working spaces, business amenities, and serene surroundings conducive to productivity.

When targeting local residents looking for staycations, campaigns could emphasize the convenience and luxury of a local getaway, offering special weekend packages, family deals, or romantic escapes.

This strategic approach may not only fill rooms but also build brand equity among niche segments, ensuring a steady flow of revenue throughout the year.

Embrace Group Bookings

Group bookings can be an effective strategy for filling rooms quickly, and generating revenue during the off-season.

Targeting groups helps hotels secure multiple reservations at once, thereby stabilizing occupancy rates, and mitigating the impact of seasonal downturns.

Further, group bookings encompass a wide range of categories, including corporate events, conferences, weddings, family reunions, and social gatherings. Each of these groups has specific needs and expectations. Operators can meet these needs through tailored packages that include group discounts, meal plans, and activity options.

Going further, operators can appeal to these groups by partnering with local tour operators and community organizations to promote personalized packages.

Dynamic Pricing Strategies

Dynamic pricing involves adjusting room rates in real-time based on demand, competition, and other market factors.

Leveraging revenue management software and data analytics helps hotels optimize pricing to attract more bookings while maintaining profitability. This flexible approach ensures that room rates are always competitive and aligned with current market conditions, filling rooms that might otherwise remain vacant. These pricing strategies can be extended into bundles and experiences to showcase additional value.

Combining accommodation with additional services and amenities offers more value to guests, making their stay more appealing. These bundles not only enhance the guest experience but also encourage longer stays, and increased spending on-site.

Further, curated experiences can range from culinary workshops and wellness retreats to cultural tours and outdoor adventures. Understanding the preferences of the targeted or niche off-season market should lead to the creation of unique and memorable experiences that go beyond standard accommodation offerings.

For example, a hotel might collaborate with a local chef to offer cooking classes, or with artists to provide guided art workshops. Curating guest experiences not only differentiates the hotel from competitors but also provides added value that can justify higher room rates during the off-season.

Lastly, a dynamic pricing strategy could be used to encourage short-term and long-term stays beyond the typical three- to seven-night range.

For short-term stays, offering discounted rates for extended weekends or mid-week stays can appeal to both leisure and business travelers looking for a quick escape. With long-term stays, hotels can provide special rates and amenities for guests staying multiple weeks or even months. Doing so can attract digital nomads, business travelers on extended assignments, or families relocating to the area.

Strategic Adjustments

Outside of trying to build business, the off-season provides an ideal opportunity for hotels to review and adjust their operations. This ensures they are running efficiently and effectively, and preparing themselves for the next peak season.

During these quieter periods, hotels should conduct comprehensive reviews of operational efficiencies to identify areas where processes can be streamlined.

This may involve analyzing housekeeping routines, front desk procedures, and food and beverage operations to find ways to reduce waste and improve service delivery. Focusing on these improvements enhances overall efficiency, which not only saves costs but also improves the guest experience.

Reviewing and updating standard operating procedures (SOPs) is another crucial task that can be undertaken during the slow season. Hotels can take this time to involve staff in the review process, gathering feedback on current procedures and identifying any gaps or inefficiencies. Updated SOPs can then be communicated and implemented through targeted training sessions, ensuring that all team members are aligned, and equipped to provide the highest standard of service.

The off-season is an excellent time to schedule one-on-one meetings with team members, and comprehensive training sessions that include refreshers on existing protocols, along with introductions to new technologies or service standards. Investing in staff development not only improves service quality but also boosts employee satisfaction and retention.

Technology plays a pivotal role in modern hospitality management, and the slow season is the perfect time to review and upgrade technological systems. Whether it’s enhancing the property management system (PMS), implementing a new guest (customer) relationship management (CRM) tool, or upgrading the hotel’s Wi-Fi infrastructure, these technological improvements can enhance operational efficiency and guest satisfaction significantly.

Additionally, hotels can explore new technologies such as AI-driven analytics and automated check-in systems to stay ahead of industry trends and improve the guest experience.

Review Playbooks

The off-season is a strategic time to review and adjust various playbooks that guide a hotel’s operations and strategy.

Reviewing the Brand Strategy Playbook ensures that the hotel’s identity, values, and positioning remain strong and relevant. Operators can update Marketing Playbooks to reflect new trends and campaigns tailored to attract guests during the next 12 months. Business Playbooks should be assessed to ensure all operational plans align with the current market environment and organizational goals. Financial Playbooks are critical for maintaining financial health, and reviewing them helps identify cost-saving opportunities and areas for investment.

Regularly updating these playbooks maintains strategic clarity and agility, ensuring a hotel remains ready to capitalize on opportunities as they arise.

Utilize the off-season to build occupancy, leverage revenue opportunities, adjust operations, update SOPs, enhance training programs, and upgrade technology. Doing so helps a hotel to optimize its performance.

This proactive approach ensures that when the busy season returns, the hotel is not only coming out of the off-season with better cash flow, but operating smoothly and efficiently, providing an exceptional guest experience.

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by David Klemt David Klemt No Comments

Text, Email & Social Media Marketing

Text, Email & Social Media Marketing: Which is Best?

by David Klemt

A woman wearing a black-and-white-striped top checking her smartphone

Text-message marketing versus email marketing: which is best for your business?

One of the key topics that SevenRooms addresses in the first of their annual trends report is how operators can make the most of their marketing efforts.

Today, the primary marketing channels are text/SMS, email, and social media. An operator needs to understand their guests to know which will be most effective for their business.

Or, more accurately, an understanding of one’s guests is the key to leveraging a mix of those channels effectively.

An operator must consider their target audiences, and how they tend to engage with brands. Further, consideration must be given to people’s relationships with their phones.

As a real-world example, one of our clients’ guest pools skews significantly toward Baby Boomers. When discussing marketing strategy, the client expressed a concern when text marketing came up. They stated that their older guests would likely push back against this form of marketing.

However, no generation is a monolith. Therefore, I’ll be speaking in generalities when it comes to generational cohorts and their behavior.

Marketing Channel Engagement

Generally speaking, younger generations don’t seem to find text marketing invasive. Younger consumers are also used to engaging with and discovering brands and businesses via social media.

In contrast, an operator may find that their older Gen X and Baby Boomer guests prefer email marketing. It’s important to bear in mind that older generations also consume social media content. For example, SevenRooms findings show that 24 percent of Gen X and Baby Boomers can be influenced to visit a restaurant via F&B posts. However, these generations appear to engage with menu posts from restaurants they already follow.

That last bit of information tells me that older guests follow restaurants they’re considering visiting or have visited previously. Per SevenRooms data, the same goes for Millennials. That said, 43 percent of this generation are influenced by posts that showcase a restaurant’s personality.

Interestingly, just over half of Gen Z is influenced via video content from businesses they don’t already follow. These accounts are pushed to them via a platform’s engagement and discovery algorithms.

With the caveat that I’m painting different generations with broad strokes, posts that show off the menu may work best to engage older consumers. Posts that illustrate the personality of a brand and its team may resonate best with Millennials, and video content is king for grabbing the attention of younger consumers.

Businesses targeting a mix of consumers will want to develop a varied social media strategy. Content should consist of still photos and video that show off menu items, team members, and what guests can expect during a visit. Engagement will show an operator which posts are resonating the most with their followers and guests.

So, which marketing channel is best? All of them, when combined strategically.

An Effective Mix

Speaking of developing an effective strategy, SevenRooms asked operators about their social media marketing results.

Since the point behind marketing is to increase bookings to boost traffic and revenue, SevenRooms looked into which social media content achieved the best results.

Nearly 40 percent of operators surveyed said that organic posts result in the most bookings. This is followed by paid social media advertising, at 33 percent. Just over a quarter of operators surveyed pointed to influencer content as driving the greatest number of bookings.

One percent of operators say they don’t track their social media marketing results. For obvious reasons, this isn’t part of a winning strategy. If the results of an operator’s marketing efforts can’t be tracked, how can they know what works, and if they need to change an element of their strategy (such that it is)?

Nuance

As SevenRooms makes clear in their 2024 Restaurant Trends and Diner Expectations report, a multi-channel marketing strategy is a key to success.

Results will boil down to more than texting younger consumers and emailing older consumers. SevenRooms suggests what we at KRG Hospitality would also recommend: nuance.

An actual strategy is necessary, and that means being intentional with each marketing channel.

For context, an operator is likely best served to keep marketing text messages short. So, think reservation availability due to cancellations or no-shows. Email is a marketing channel best suited to longer messages. When it comes to social media marketing, a restaurant or bar’s social accounts should be viewed as relationship-building avenues.

In closing, an operator’s multi-channel marketing strategy requires a multi-pronged approach. Each channel must be leveraged differently. Text marketing shouldn’t be used the same way as email marketing messages, and neither should be used in the same way as a brand’s social accounts. When it comes to those accounts, a mix of posts is most effective for reaching different types of consumers.

The real keys are for operators to know who they’re targeting, track their marketing efforts, and develop an understanding of their guests. Throwing things against the wall to see what sticks just creates a mess; operators must be intentional in their marketing and operations to convert guests and achieve long-term success.

Image: Andrea Piacquadio via Pexels

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by David Klemt David Klemt No Comments

Going Remote: A New Era for Hospitality

Going Remote: A New Era for Hospitality Coaching

by Doug Radkey

 

An AI-generated image of a man in a suit speaking remotely via computer to a woman in a suit

Note: AI-generated image.

Did you know that over the course of the past five years, the number of remote workers in the US has jumped by a staggering 44 percent?

Over the past 12 years, that number is an astounding 159 percent, and it shows no sign of slowing down.

The hospitality industry, like many others, is embracing a new era of remote work. This shift is now transforming how bars, restaurants, and hotels receive coaching and consulting services.

How can remote hospitality coaching help you start, stabilize, or scale your business? Leveraging remote coaching can provide you with flexible, cost-effective, and expert guidance no matter where you are.

Large markets such as Toronto, New York, London, and Los Angeles, for example, are no longer the only cities that can receive impactful one-on-one advice to better their businesses.

The Rise of Remote Work in Hospitality

Remote help was once a rarity in hospitality. However, the pandemic accelerated its adoption across the industry.

Much like other elements of technology in this industry—remote coaching, for example—allows hospitality businesses in any areas to access advice and support. Indeed, it no longer matters if a business is rural or in a global destination.

Remote consulting is the great equalizer, providing underserved communities with valuable insights. For decades, most agencies narrowed their focus toward projects in major cities.

Further, it provides flexibility and convenience. Anyone can schedule coaching sessions at a time that works best for them, or when an issue arises that calls for real-time intervention.

Removing the need for travel—and the associated costs—results in more cost-effective results. For several years now, KRG Hospitality has empowered clients in even the most far-flung destinations to obtain the consulting and coaching to start, stabilize, and scale their business.

Have a stable internet connection or decent cell reception? Then you’re all set.

Key Areas of Focus

Whether you’re starting a new restaurant, stabilizing a boutique hotel, or scaling a bar, a remote coach provides the structured guidance needed to navigate challenges and achieve success.

One example is onboarding a coach to help you start a restaurant by providing guidance through weekly calls that cover each phase of development. This often begins with an initial discovery call to understand your vision and goals, followed by coaching you through the variety of playbooks you need to develop strategic clarity.

The coach assists with everything, from site and support team selection to interior design, equipment selection, and construction management. From there, the operational setup phase may include coaching you through hiring and training, and developing standard operating procedures (SOPs). Your coach can also help you with pre-opening preparations, from marketing, menu development, and final inspections. Following a comprehensive checklist ensures you open on time, and on budget.

A second example is onboarding a coach for a boutique hotel seeking to stabilize operations. Weekly calls following an operational audit allow the coach to guide you through a short-term and long-term ImpactMAP. This tool focuses on brand strategy, internal programming, marketing plans, technology, systems and SOPs, people and culture, financial wellbeing, and mindset.

Regular coaching calls ensure continuous improvement and adaptation of strategies, leading to a stabilized and profitable business.

For a third example, consider a bar seeking to scale beyond one location. Through weekly calls, a remote coach can provide guidance on developing a scalable strategy. You have to remember, scaling your business isn’t just about replication; it’s about strategic adaptation.

A remote coach can ensure that you’re truly ready financially, operationally, and mindfully for this next step in your journey of developing a true legacy in this industry.

Tools that Enable Remote Coaching

Remote coaching is greatly enhanced by the use of various tools and technologies that facilitate communication, organization, and data-driven decision-making.

Video conferencing platforms such as Zoom, Microsoft Teams, and Google Meet enable real-time communication between coaches and clients, ensuring effective and timely guidance.

Project management software such as Trello, Asana, and Monday help organize tasks and track progress. These platforms ensure all aspects of the coaching process are efficiently managed and executed. Additionally, data analytics tools such as POS and PMS systems provide valuable insights, allowing coaches and clients to make informed decisions based on comprehensive data analysis.

During the pandemic, we successfully used remote coaching to help launch a thriving restaurant in Orlando. Due to pandemic-ear travel restrictions, we developed the project with the clent without setting foot on the property until a year after its grand opening. Leveraging video conferencing platforms, we conducted real-time strategy sessions with the restaurant’s leadership team.

We utilized project management tools to organize tasks, track progress, and ensure that every aspect of the restaurant’s development was managed meticulously. Data analytics tools provided valuable insights into market trends, guest preferences, and operational efficiencies, allowing us to make informed decisions remotely.

Despite the challenges posed by the pandemic, this approach ensured the restaurant opened smoothly, and achieved immediate success. This real-life example demonstrates the power of technology and effective remote coaching in the hospitality industry.

Overcoming Challenges

Overcoming the challenges of remote coaching requires strategic measures to ensure effective communication, build trust, and manage technical difficulties.

Maintaining clear and effective communication is crucial, which can be achieved through regular check-ins and video calls.

Building trust is important for the relationship to work. This involves consistent interactions and transparent communication. Despite physical distance, it’s key to the success of any project to establish a rapport between the coach and the client.

Addressing the potential of technical difficulties prevents disruptions from happening. This ensures highly effective relationships, and more successful outcomes. The right coach will not only help you start your business, they’ll be the first one to think about calling if you need help stabilizing, or want to scale.

Implementing Remote Coaching

When considering a coach for your bar, restaurant, or hotel, start by assessing your needs. This will help you identify which areas of your business will benefit the most from remote coaching.

Next, choose the right coach by selecting someone with the expertise, values, and experience that align with your specific requirements. It’s crucial to set clear goals, so define the objectives and expectations for your coaching sessions. Doing so ensures that both you and the coach are aligned on desired outcomes.

Finally, commit to regular reviews, and the adjustment of coaching strategies. This approach involves ongoing evaluations to ensure continuous improvement, and adaptation to any evolving challenges or opportunities in your business.

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by David Klemt David Klemt No Comments

SevenRooms Drops Extensive 2024 Report

SevenRooms Drops Extensive 2024 Report

by David Klemt

Guests dining in a light, bright restaurant featuring a glass ceiling and hanging plants

Today, we’re taking a look at the first-annual trends report from marketing and operations platform SevenRooms, which focuses on the guest experience.

To gain an understanding of the current state of affairs in America, SevenRooms analyzed the product data of more than 3,000 US clients. Further, the platform engaged over 250 operators, and 1,000 consumers.

The result is a data-rich report that offers helpful insights for operators.

Two findings are particularly interesting to me, and the team here at KRG Hospitality. One, it appears that Americans are back to seeking out their third spots. As a refresher, a third spot, space, or place is where one spends time when away from home or work. Consumers tend to be loyal to these places, making them part of their everyday or weekend routine.

Two, younger consumers are leading the way in terms of restaurant visits. Per SevenRooms, 38 percent of Millennials visit restaurants five or more times per month. Gen Z is also visiting restaurants frequently, with 24 percent visiting five times or more. However, that number climbs to 45 percent for Gen Z when it comes to three or four monthly visits. Among Millennials, 33 percent visit restaurants three or four times per month.

That tells us that younger consumers are eager to socialize, and restaurants can fulfill that desire. As savvy operators know, a person can eat or drink at home; food and beverages are just excuses to get out, hang out, and meet new people.

This also tells us that operators need to ensure they’re ticking several boxes to resonate with younger guests: value, convenience, and personalization. I’ll add that consumers have shown they want to support brands with values that align with their own.

There are many more insights in SevenRooms’ new report, which you can find below. To view the report in its entirety, click here.

SEVENROOMS RELEASES 2024 RESTAURANT TRENDS AND DINER EXPECTATIONS REPORT FOR THE HOSPITALITY INDUSTRY

Annual report gives an inside look at how restaurants are delivering better guest experiences and personalizing their marketing in the age of AI and automation

NEW YORK (August 6, 2024) – SevenRooms, the leading CRM, marketing and operations platform for growing restaurants, today released its first annual trends report, “2024 Restaurant Trends and Diner Expectations,“ highlighting how restaurants are filling the need for ‘third places’, connection spots outside the home and workplace, what consumers expect from their dining experiences, and how restaurants are leveraging AI and automation to keep diners coming back.

The study, commissioned through independent third-party research firm Censuswide, examines consumer and foodservice operator insights, alongside data from SevenRooms restaurant customers. It emphasizes the importance of restaurants understanding their guests and providing experiences and value to consumers, including marketing and tech trends that operators are paying attention to.

Diners Expect More From Restaurants

While it’s no surprise that diner expectations have evolved in recent years, consumers across generations and cities share key expectations when dining out — they’re looking for convenience, personalization and value from brands they trust. Restaurants must nail all aspects of the guest experience, from hospitality and service to ambiance and atmosphere, to transform diners into brand ambassadors and get them to bring their dollars back more often.

When looking across generations, Millennials are driving a dining resurgence – dining out most frequently with 38% saying they dine out more than 5x a month. They are seeking more from their restaurant visits, and are willing to spend more for elevated experiences, like theatrical elements or high-end items like caviar. For these experiences, Americans are willing to spend up to $63 per person with 45% of Gen Zers open to paying even more. As diners focus on the quality over quantity of their experiences, that means restaurants must do more to keep those diner dollars. Dining upgrades consumers are willing to spend more fall into three categories – experiential, luxurious and personal, including:

  • Experiential (e.g. tableside martini cart; fish presentation or deboning, etc.)
    ○ Dallas – a menu item with some theater (86%)
    ○ Washington DC – a menu item with some theater (71%)
  • Personal (e.g. birthday dessert; welcome drink)
    ○ Chicago – a mocktail or personalized item (55%)
  • Luxurious (e.g. caviar, freshly shaved truffles, seafood tower)
    ○ Los Angeles – high-end items like caviar (55%)
    ○ New York – high-end items like caviar (48%)

Outside of these experiential offerings, restaurants must also capitalize on influential factors that bring diners back. For example, 34% of Gen Zers want personalized surprises in service like a free dessert. Meanwhile, 26% of Millennials care about the ease of making a reservation and 24% of Gen Xers consider the rapport they develop with front-of-house staff. Tailoring guest experience and service helps operators turn one-time diners into loyal customers.

“New consumer demands are pushing restaurants to find the right balance between hospitality and automation to create the experiences guests crave and return for,” said Joel Montaniel, CEO & Co-Founder at SevenRooms. “Diners want both access and recognition when spending their hard-earned dollars, and restaurants must embrace new strategies – and technologies like AI and automation – to enhance hospitality at every touch point. Whether leveraging platform data to personalize diner experiences or power marketing and retention programs, technology and data serve as a vehicle to execute hospitality that guests remember and return for. When technology is used effectively, it allows operators to focus on building deeper connections and delighting guests, one experience at a time.”

Loyalty is Never One-Size-Fits-All

In the U.S., there was a 21% year-over-year increase in reservations comparing Q1 2023 to Q1 2024 and restaurants are looking to a promising future. Whether operators are focused on opening new locations or revamping their social media marketing efforts, one factor remains the same – establishing personal relationships with diners is the strongest way to build and maintain loyal customers.

Consumers have a strong intent to dine with their favorite brands. If a guest can’t get a reservation at their preferred restaurant, 39% of guests look for a sister restaurant to dine at, and 27% check other sites for the same restaurant.

Cultivating loyalty is critical. Loyalty is not a one-size-fits-all effort and diners have different interests when it comes to the benefits they seek out from loyalty programs. Restaurants need to understand their diner demographics to curate operations and offerings, getting their guests to not only return more often but spend more in the process.

38% of diners who would spend $89-$126 on an average night are looking for exclusive VIP events, while 33% of consumers who dine out 7-8 times per month want VIP access to specialty seating areas. Breaking down generational differences:

  • 72% of Gen Zers care most about free menu items
  • 30% of Millennials care most about VIP access to specialty dining areas
  • 1 in 5 Gen Xers and Baby Boomers want early access to reservations

Genuine, Tailored Marketing is Critical to Success

When it comes to marketing, authenticity and personalization reign supreme for consumers. Guests want to be known by their favorite restaurants, and restaurants want to know and understand their guests. To reach these consumers, and serve up personalized marketing that makes guests want to return, restaurants have to use all the tools in their arsenal – from social media to email and text marketing automation – to create high-touch communications that are both authentic and personal.

79% of restaurant operators spend the majority of their marketing budget on social media. Their top social media goals are to drive bookings or online orders (39%), increase brand awareness (29%) and communicate with their audiences (29%). But not all content is created equal – 39% of operators say that organic posts drive the most bookings to their restaurants. Restaurants that showcase their personality – highlighting their team, food and drinks and atmosphere – will win with consumers as they look for more genuine content from brands.

Most diners like hearing about restaurant promotions and offers via email and text, and aren’t as interested in social media DMs or phone calls, but specific preferences vary by generation. 41% of Gen Zers prefer text marketing, whereas 38% of Millennials and 37% of Gen X prefer email marketing.

With targeted Email Marketing, the data report notes that operators see 23% higher open rates and 28% higher click-to-open rates, generating 2x more revenue per email. Text marketing is fairly new for restaurants, but has huge potential, with an average open rate of 98% and $1.64 average reservation revenue generated per text message on SevenRooms. For one SevenRooms customer, Fabio Viviani Hospitality, it drove $220,000 in revenue and 3,000 new guests in just 4 months.

“The biggest thing that excites me about text messaging is that it’s very hard to ignore. When our phones beep, we are just driven to look at them,” said Harry Kaminski, CMO at Fabio Viviani Hospitality. “It’s easier to ignore an email than it is a text.”

Artificial Intelligence (AI) Comes into Play

Every industry today is using AI and automation in some way to streamline their operations and help staff work more efficiently – and the same is true for the restaurant industry. 70% of operators surveyed said they use artificial intelligence in some way to run their business, including:

  • 35% – Processing reservations
  • 34% – Inventory management
  • 33% – Data analytics
  • 27% – Scheduling
  • 26% – Dynamic pricing

But there is room to grow with AI, with only 16% saying they use it to create marketing collateral and 15% for staff hiring and training. With personalized marketing a large focus for operators in 2024 and beyond, as well as hiring and retaining staff to deliver on high-touch hospitality, operators have an opportunity to use AI more effectively.

“AI elevates our storytelling around data,” said Kelly MacPherson, Chief Supply Chain and Technology Officer at Union Square Hospitality Group. “We have a wealth of data at our fingertips, but this can create analysis paralysis. With AI, we can more efficiently synthesize the data, create stories about what’s happening, why it’s happening, and what we can do about it, and then present these stories to our teams in a digestible format with actionable next steps.”

For more information about SevenRooms and to download the full report, please visit here.

About SevenRooms

SevenRooms is a CRM, marketing and operations platform for growing restaurants in the hospitality industry. From Michelin star gems to local favorites, the all-in-one platform helps restaurants increase sales, delight guests, and keep them coming back, automatically. The full suite of products includes reservations, waitlist and table management, review aggregation, referrals, email marketing, and marketing automation. Founded in 2011 and venture-backed by Amazon, Comcast Ventures and PSG, SevenRooms has more than 10,000 dining, hotel F&B, nightlife and entertainment clients globally, including: Marriott International, MGM Resorts International, Mandarin Oriental Hotel Group, Wynn Resorts, Jumeirah Group, Hard Rock Hotels & Resorts, Wolfgang Puck, Michael Mina, Bloomin’ Brands, Union Square Hospitality Group, Australian Venue Co., Maple & Ash, The Wolseley Hospitality Group, Dishoom, Groot Hospitality, MLSE, Live Nation and Topgolf.

Research Methodology

SevenRooms partnered with Censuswide Research – a third-party, professional research and consulting organization. Total sample size was 1,004 U.S. consumers. Fieldwork was undertaken between March 4-11, 2024. The survey was carried out online. The figures have been weighted and are representative of all U.S. adults (aged 16+).

SevenRooms partnered with Censuswide Research – a third-party, professional research and consulting organization. Total sample size was 251 U.S. operators (hospitality decision-makers). Fieldwork was undertaken between March 4-19, 2024. The survey was carried out online. The figures have been weighted and are representative of U.S. hospitality operators.

SevenRooms provided anonymized internal data representative of U.S.-based restaurants using the SevenRooms platform and surveyed a sample of operators at various restaurant sizes and types across the U.S. from March-May 2024.

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Flipping through an open book
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5 Books to Read this Month: August 2024

5 Books to Read this Month: August 2024

by David Klemt

Flipping through an open book

Our August book selections focus on the 2024 Spirited Award finalists and winner of the 2024 Best New Cocktail or Bartending Book.

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

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

Let’s jump in!

The Ice Book: Cool Cubes, Clear Spheres, and Other Chill Cocktail Crafts

The winner of the 2024 Spirited Award for Best New Cocktail or Bartending Book. This is much more than just a guide for making crystal clear ice cubes or sphere. While that’s certainly a focus, The Ice Book includes tips on embossing and branding ice, creating huge slabs, and even making ice bowls for punches and other large-format drinks. Truly, this book will help you master ice.

From Amazon: “In The Ice Book, internationally renowned cocktail icepert Camper English details how to use directional freezing to make perfectly pure ice in a home freezer, carve it up into giant diamonds and other shapes, and embed it with garnishes, including edible orchids and olives. You’ll learn how to create a frozen bowl for Negroni punch, serve a Manhattan inside an ice sphere, and infuse cubes with colors and flavors to create cranberry cobblers, a color-changing Gin and Tonic, and other awesome drinks.”

Grab this book now.

Slow Drinks

With a shift in mindset you’ll likely notice the incredible world of cocktail ingredients at your fingertips during something as simple as a walk around your neighborhood. The author of this book, Danny Childs, is an ethnobotanist who can guide you through that change. Further, this informative book is more than just a list of botanicals you can grow and forage. You’ll learn how to pickle, infuse, and even ferment, taking your cocktail creation to incredible new heights. If there was ever an excuse to start and maintain a garden dedicated to your bar team, it’s picking up this book.

From Amazon: “Organized by season, Slow Drinks teaches home cooks, industry pros, homebrewers, and foragers how to transform botanical ingredients—whether gleaned, grown in the garden, or purchased from the store—into singular beverages and cocktails. With transporting photography and gorgeous color illustrations, Slow Drinks is the definitive guide to backyard mixology that can live just as comfortably in your basket on a foraging trip, as it can on the coffee table as a conversation piece.

Click here for the hardcover.

Tropical Standard: Cocktail Techniques & Reinvented Recipes

What if a bartender married modern cocktail-crafting techniques to dozens upon dozens of classic cocktail recipes? Well, odds are they’d be Garrett Richard, bar manager of Sunken Harbor Club. And documenting this marriage would be drinks author Ben Schaffer.

When it comes to drinks, some bartenders feel the original variants are sacred; techniques, ratios, and ingredients aren’t to be altered. However, there’s no reason classics can’t be honored and built in more modern ways, for modern palates.

From Amazon: “Crucial techniques are clearly detailed, including how to balance syrups, flash blend, handle carbonation, tackle tinctures, cordialize citrus, and power up juice with acid adjusting. Over the course of 84 recipes, vintage cocktails like the Rum Barrel, Mai Tai, and Ray’s Mistake are reimagined just as future classics are revealed, including the Beachcomber Negroni, Winter in L.A., and Field of Mars. These drinks honor founding legends such as Donn Beach, Trader Vic, and Harry Yee as well as modern icons, including Dale DeGroff, Audrey Saunders, Julie Reiner, and Dave Arnold.”

Pick it up here.

The Book of Cocktail Ratios: The Surprising Simplicity of Classic Cocktails

Speaking of cocktail ratios…this is your book if you and your bar team want to achieve a deeper understanding of balance. If you think about it for a moment, you’ll understand the importance than ratios and balance have on a cocktail. It goes beyond ensuring a particular drink tastes great. And it goes further than guaranteeing consistency. Shift one ingredient enough and you’re not just altering the taste, you’re likely making a different drink entirely. As author Michael Ruhlman points out, a Gimlet, Daiquiri, Bee’s Knees are the same cocktail; it’s the ratios that separate them.

From Amazon: “As Michael Ruhlman explains, our most popular cocktails are really ratios—proportions of one ingredient relative to the others. Organized around five of our best-known, beloved, classic families of cocktails, each category follows a simple ratio from which myriad variations can be built: The Manhattan, The Gimlet, The Margarita, The Negroni, and the most debated cocktail ever, The Martini.”

Order yours now.

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

Doug Radkey‘s followup book to Bar Hacks! The world around us has changed. The food and beverage industry has changed. The hospitality industry has changed. But will some ways of life change for the better? Will perhaps the restaurant, bar, and hospitality industry come out even stronger? With the right changes to the previous status quo, it is possible. There’s no question, resets are major undertakings, but a major reset will provide us with a clean start and that’s what this industry needs.

From Amazon: “Whether or not you’re a hotelier, restaurateur, bar owner or a front-line staff member—this book will position you for success in the new normal. With a spotlight on hybrid business models, real estate, profit margins, technology, guest experiences, culture, diversity, and mindset, Hacking the New Normal is the guidance you need.

Click here to pick your copy up today.

Image: Mikołaj on Unsplash

KRG Hospitality. Bar Consultant. Nightclub. Lounge. Mixology. Cocktails.

Hospitality Reinvented podcast logo in 2:1 ratio compared to original, produced by KRG Hospitality
by David Klemt David Klemt No Comments

Hospitality Reinvented: A New Series

Hospitality Reinvented: A New Podcast Series

by Doug Radkey

 

Hospitality Reinvented podcast logo in 2:1 ratio compared to original, produced by KRG Hospitality

In my opinion, and likely that of many others, the hospitality industry today is at a crossroads, facing both unprecedented challenges and opportunities.

As we navigate these changes that are upon us, it’s clear that a reset or reinvention is not just desirable, but essential.

To truly understand hospitality and the way forward, let’s take a few steps back.

Hospitality has its roots deeply embedded in ancient civilizations, where the concept was often viewed as a sacred duty and a fundamental aspect of societal norms.

In ancient Greece, for instance, the idea of “xenia” represented a code of hospitality and protection that was honored by both hosts and guests. This tradition emphasized generosity and courtesy toward strangers, reflecting a reciprocal relationship that benefited both parties.

Similarly, in medieval Europe, hospitality was a core tenet of life. Monasteries provided food, shelter, and medical care to travelers and pilgrims. These historical practices established the foundational principles of hospitality that continue to influence the industry today.

The Definition of Hospitality

At its core, as we know it today, hospitality is about providing a welcoming environment, exceptional service, and genuine care for guests. The fundamental principles include warmth, generosity, and attentiveness to the needs of others. These principles are designed to make guests feel valued and comfortable, creating a memorable experience that encourages repeat visits and positive word-of-mouth.

The essence of hospitality lies in anticipating and exceeding guest expectations, ensuring that every interaction is characterized by respect and kindness. This unwavering commitment to guest satisfaction is what distinguishes truly exceptional hospitality services from the rest.

In the modern era, hospitality has evolved to incorporate technological advancements and changing consumer preferences while maintaining its core principles. Today, hospitality encompasses a broader range of services and experiences, from luxurious accommodations and gourmet dining to personalized services and cutting-edge technology.

The rise of digital tools on the hotel side, such as mobile check-ins, AI-powered concierge services, and virtual tours, has transformed how hospitality businesses interact with and serve their guests. Moreover, contemporary hospitality also places a strong emphasis on sustainability and cultural authenticity, with many brands striving to minimize their environmental impact and offer experiences that celebrate local heritage and traditions.

These modern interpretations reflect the industry’s adaptability and commitment to enhancing guest experiences while trying to stay true to the timeless principles of warmth and generosity.

The Purpose of Hospitality

The primary purpose of hospitality is to create memorable experiences that leave a lasting impression on guests. In today’s competitive market, it is no longer sufficient to simply provide a place to stay or a meal to eat.

Hospitality businesses must go above and beyond to craft unique and personalized experiences that guests will remember fondly, and talk about long after their visit.

This involves attention to detail, creativity, and a deep understanding of what delights and surprises a targeted set of guest. From custom welcome amenities and personalized room settings to curated local excursions and immersive cultural activities, the goal is to create a sense of wonder and joy that makes guests feel special and valued.

Another vital purpose of hospitality is building meaningful relationships with guests. Hospitality is fundamentally about human connection and fostering a sense of community. By treating guests as individuals rather than transactions, hospitality businesses can cultivate strong, lasting relationships that encourage repeat visits and brand loyalty.

Genuine, personalized interactions during which staff take the time to understand and cater to each guest’s unique needs and preferences are mandatory. Building relationships also means engaging with guests before, during, and after their stay through various touchpoints and guest journey maps that now many include personalized emails, social media interactions, and follow-up surveys.

Ongoing interactions help to establish a deeper bond with guests, making them feel appreciated and connected to the brand.

Elements of Hospitality We Need to Leave in the Past

One of the key elements that the hospitality industry must leave behind is the reliance on outdated practices. These include rigid check-in and check-out times, excessive paperwork, and a lack of technological integration.

Modern guests expect flexibility, convenience, and efficiency, which cannot be provided through antiquated methods. Embracing digital solutions such as mobile check-ins, contactless payments, and automated booking systems can streamline operations and significantly enhance the guest experience.

We need to move away from outdated practices so hotels and other hospitality businesses can meet the evolving expectations of their clientele, and stay competitive in the market.

Reluctance to Change

Resistance to change is another significant hurdle that the hospitality industry must overcome. The rapid pace of technological advancement and shifting consumer preferences demand that businesses continuously adapt and innovate.

However, a reluctance to embrace new technologies and modern approaches can stifle growth and lead to stagnation. Successful hospitality businesses must foster a culture of innovation and agility. They need to encourage their teams to stay ahead of trends and adopt new practices that enhance guest satisfaction and operational efficiency.

A commitment to embracing change and aligning a forward-thinking mindset will help operators better navigate the challenges of the modern marketplace.

Lack of Sustainability

Further, the hospitality industry has long been criticized for its unsustainable practices, including excessive water and energy consumption, waste generation, and reliance on single-use plastics. As environmental consciousness grows among consumers, it is imperative for hospitality businesses to adopt more sustainable practices. This includes implementing energy-efficient systems, reducing water usage, minimizing waste, and sourcing eco-friendly products.

Many bars, restaurants, and hotels are now pursuing green certifications and adopting practices such as using solar energy, installing low-flow fixtures, and offering recycling programs. Prioritizing sustainability means hospitality businesses can not only reduce their environmental footprint but also attract eco-conscious guests.

Toxicity

Lastly, toxic workplaces that fail to take care of their team members are another critical issue that needs to be addressed.

The hospitality industry is notorious for high employee turnover. Unfortunately, we’ve become known for poor working conditions, lack of career advancement opportunities, and inadequate compensation. Each of these go against the essence of hospitality.

How we treat our guests is how we should treat our very own people. Creating a positive work environment that prioritizes staff well-being, professional development, and fair treatment is essential for retaining talent and ensuring high-quality service. This includes providing comprehensive training programs, offering competitive salaries and benefits, and fostering a supportive, fun, and inclusive culture.

Hospitality businesses can improve job satisfaction, reduce turnover, and ultimately enhance the overall guest experience by investing in their people.

Where the Hospitality Industry is Going

There’s no secret, hospitality is embracing technology at warp speed. Operators are now inundated with solutions promising to enhance operational efficiency, plus staff and guest experiences.

Innovations such as artificial intelligence (AI) and the Internet of Things (IoT) are transforming how hotels and other hospitality businesses operate.

AI-driven chatbots and virtual assistants are improving guest services by providing instant responses to guest inquiries, along with personalized recommendations. IoT devices are enabling smart room controls, allowing guests to adjust lighting, temperature, and entertainment options with ease. Blockchain technology is enhancing security and transparency in transactions and loyalty programs.

Leveraging these advanced technologies sets the hospitality industry down the path toward providing more seamless, personalized, and engaging experiences for guests.

Focus on the Right KPIs

As the industry evolves, so do the metrics used to measure success. Traditional key performance indicators (KPIs) such as occupancy rates and average daily rates are being supplemented with new, more holistic KPIs.

Guest satisfaction scores, social media engagement, and sustainability metrics are becoming increasingly important. For example, Net Promoter Scores (NPS) provide insights into guest loyalty, and the likelihood to recommend the hotel to others. Social media metrics, including likes, shares, and reviews, reflect the hotel’s online reputation and guest engagement.

Additionally, sustainability metrics such as energy consumption per guest and waste reduction rates are being tracked to ensure that the hotel is meeting its environmental goals.

These new KPIs offer a more comprehensive view of a hotel’s performance, encompassing guest experiences, brand reputation, and environmental impact.

The Guest and Staff Experience

The future of hospitality is also about reimagining staff and guest experiences to create more meaningful and memorable interactions.

For staff, this means providing ongoing training and professional development opportunities. This approach keeps the team updated with the latest industry trends and technologies. Despite the technology, operators need to empower team members. A great leader ensures their teams are receiving valuable training on the skills and knowledge they need to excel. Doing so improves service quality, and boosts morale and retention rates.

On the guest side, new programming and experiences are being introduced to cater to diverse interests and preferences. By focusing on innovative staff and guest programming, the hospitality industry is creating environments that are enriching, engaging, and memorable.

Spirit of Hospitality

With all that said, amidst all the technological advancements and new metrics, it is essential to bring back the true essence of hospitality and what it means to be hospitable. We have to get back to the “why” of what we do in this industry, and remind ourselves once again about the true definition of hospitality.

At its core, hospitality is about genuine care, warmth, and making guests feel welcome and valued. This involves cultivating a culture of empathy and service excellence in which every guest interaction is an opportunity to create a positive impact.

Personalized service, attention to detail, and going the extra mile are the hallmarks of true hospitality. It’s about creating an atmosphere where guests feel at home, whether they are eating at a restaurant, having a drink at the bar, or staying for a night or an extended period.

Blending modern conveniences with the timeless principles of hospitality ensures that the heart and soul of hospitality remain intact, even as it continues to evolve and reinvent itself.

Introducing Hospitality Reinvented Podcast Series

As the hospitality industry continues to evolve, staying ahead of trends and innovations is crucial for success. That’s why I am excited to announce the launch of the Hospitality Reinvented podcast series hosted with yours truly, Doug Radkey.

This podcast, set to go live this month, aims to explore and discuss the latest developments in the hospitality industry. I’ll provide insights and strategies to help operators and their businesses thrive in their dynamic and competitive market.

The Hospitality Reinvented podcast will delve into a variety of topics, from the integration of modern technology and new KPIs to reimagining staff and guest experiences. Each episode will blend timeless principles of hospitality with modern innovations and strategic playbooks, offering listeners practical advice and inspiration to create a guest-centric, sustainable, and forward-thinking industry.

The podcast will serve as a valuable resource for hospitality professionals looking to reinvent their operations and stay ahead of the curve. Join us on this journey as we explore how to blend tradition with innovation to shape the future of hospitality.

Tune in to Hospitality Reinvented each week and discover how you too can transform your business and create lasting, memorable guest experiences.

Join us on this journey by subscribing to the Hospitality Reinvented podcast, following us on social media, and staying engaged with the latest insights and trends here at KRGHospitality.com.

Image: KRG Hospitality

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by David Klemt David Klemt No Comments

Program for Unique Holidays: August 2024

Program for Unique Holidays: August 2024

by David Klemt

"Think about things differently" neon sign

Do you want to stand out from from other restaurants and bars in your area? Change how you think about your August 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?

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 July 2024 holidays list, click here.

August 3: National Mustard Day

Condiments offer the perfect finishing touch to the dishes we present to guests. Given their importance, we should celebrate them whenever we get the chance.

For some, nothing but mustard belongs on a hot dog. And there are even those out there who claim it’s the only condiment that belongs on a burger.

August 6: National Night Out Day

Traditionally, this holiday aims at encouraging communities to set up neighborhood watches. However, some communities also use this day to simply foster a sense of togetherness, organizing cookouts, block parties, and concerts.

This is a great day to establish your bar or restaurant as part of the community, particularly if your business is family friendly.

August 7: Particularly Preposterous Packaging Day

This is certainly one of the more obscure holidays I’ve encountered. To put a spin on this day to leverage it for a bar or restaurant, I suggest engaging your kitchen and bar teams to come up with an over-the-top presentation for one food item, and one drink. Make it Instagram-worthy and it’ll spread like wildfire on social media, making it a clever marketing exercise.

August 11: Play in the Sand Day

This is another holiday during which operators will benefit from tapping into the creativity of their kitchen and bar teams. The back of house, for example, can look into creating a sand pudding dessert. As for the bar team, the Blood and Sand is a classic whiskey cocktail that teams with the theme.

August 12: Afternoon Tea Week

An entire week dedicated to afternoon tea! In 2024, this holiday runs to August 18. Afternoon Tea Week is a fantastic way to boost traffic and revenue during the lunch daypart. Further, operators have two shots at brunch to cap this weeklong holiday.

Engage the bar team to have them create an LTO menu of tea-based cocktails, including zero-alcohol to full-ABV options.

August 14: World Calligraphy Day

If you have someone on your team with particularly fantastic handwriting, a sandwich board, and chalk (or markers for acrylic boards), you’re all set to celebrate this holiday. Not only can these signs lure passersby into a restaurant or bar, people like to spread them on social media. The same goes for restaurants and bars with chalkboard menus, making them useful marketing tools.

August 20: National Chocolate Pecan Pie Day

You’ve probably eaten a slice of pecan pie. But what about chocolate pecan pie? It’s possible many of your guests haven’t tried this lesser-known dessert. I bet your kitchen team can change that…

August 22: Burger Day

On its face, Burger Day isn’t particularly unique. However, any holiday can be made unique with a clever and creative promotion.

While it’s the ideal day for promoting your signature burger (or burgers), it will also work as a traffic-boosting LTO. For example, if you don’t have a smashburger on your menu, consider creating one for Burger Day. As another example, if you don’t have sliders, this is the time to offer them. Track the sales of your Burger Day LTOs to consider making them repeat promotions, or adding them to the standard menu permanently.

August 27: National Just Because Day

Sometimes operators are handed the perfect day to create and execute any promotion they can imagine. This is one of those days.

August 30: National Beach Day

Drinks with umbrellas, tropical shirts and beachwear, summery drinks, classic cookout dishes, refreshing desserts… Even bars and restaurants that don’t have an outdoor area can be transformed into a beachy scene.

Image: Ivan Bertolazzi on Pexels

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An AI-generated image of a split screen, technology versus people
by David Klemt David Klemt No Comments

Bridge the Gap: Tech and Hospitality

Bridging the Gap Between Technology and Personal Development in Hospitality

by Doug Radkey

An AI-generated image of a split screen, technology versus people

We shouldn’t have to say this, but the above is an AI-generated image.

It’s said that between 70 percent and 80 percent of hospitality businesses plan to increase their investment in technology and AI over the next five years.

As the industry evolves, the key to success lies in bridging the gap between technology and personal development.

Exploring how integrating technology, artificial intelligence, and personal development can transform your hospitality business is more important now than ever before. It’s crucial that today’s operators understand and leverage these elements to improve operations, enhance guest experiences, and foster staff growth.

The Role of Technology in Modern Hospitality

In today’s fast-paced world, the hospitality industry is undergoing a significant transformation, driven by the rapid advancement of technology.

Hotels, restaurants, and bars are increasingly leveraging innovative tools such as AI, IoT (Internet of things), and data analytics to improve efficiency, personalize services, and to stay competitive. As these technological advancements continue to evolve, they are reshaping the landscape of this hospitality, making it more dynamic and responsive to the ever-changing needs of guests.

While technology offers numerous benefits to the hospitality industry, it also presents several challenges and potential downsides. One significant concern is the risk of de-personalization, as the increased use of automated systems and AI can create a barrier between guests and staff. This barrier has the potential to diminish the personalized touch that is a hallmark of exceptional hospitality.

Additionally, the learning curve for staff can be steep. Team members may require extensive training and ongoing support to utilize new technologies effectively. This can lead to initial inefficiencies and frustration as employees adapt to unfamiliar tools and processes.

Balancing technological advancements with human interaction is crucial to maintaining the warmth and personalized service that guests expect, while also ensuring that staff are adequately equipped, and comfortable with the technological tools at their disposal.

The Emergence of AI in Hospitality

There is no better example of the transformative impact of technology on modern hospitality than the recent developments in artificial intelligence. Hospitality-centric AI applications range from chatbots and predictive analytics such as dynamic pricing tools to personalized marketing platforms, offering a plethora of benefits.

Leading hotel chains like Marriott and Hilton have successfully implemented AI-driven guest services and operational efficiencies, setting new standards in the industry.

For example, these hotels are increasingly using AI to personalize the guest experience, from check-in to check-out. Hilton’s Connie, powered by IBM Watson‘s AI, acts as a concierge, assisting guests with information about hotel amenities, dining recommendations, and local attractions.

AI enhances guest personalization by tailoring services to individual preferences while streamlining operations through automation, and providing valuable insights into guest behavior and preferences.

However, these advancements are not without challenges. Data privacy concerns are paramount, requiring stringent measures to protect guest information. Additionally, ongoing management and updates necessitate in-depth training and processes for staff to effectively integrate AI into their daily routines.

Balancing these challenges with the benefits is crucial to harnessing this technology to its full potential in hospitality.

The Importance of Personal Development in Hospitality

The rapid advancement of technology in the hospitality industry underscores the critical importance of continuous staff training and development. As new tools and systems are introduced, keeping staff updated with the latest technological advancements is essential.

Continuous training programs ensure that employees are proficient in using these new technologies, which not only enhances their productivity but also improves the overall guest experience.

For instance, regular workshops and online courses can help staff stay abreast of the latest AI applications and digital tools, enabling them to seamlessly integrate these advancements into their daily operations.

In addition to keeping up with technology, skill enhancement plays a crucial role in personal development. Key skills for hospitality staff must now include digital literacy, adaptability, and emotional intelligence on top of the core values team members should come to understand during onboarding.

Three Keys

Digital literacy ensures that employees can navigate and utilize various digital platforms and tools effectively. Adaptability is essential in a fast-paced industry where change is constant, enabling your staff to adjust quickly to new processes and technologies. Emotional intelligence, which involves understanding and managing one’s emotions and those of others, is particularly important in hospitality, where guest services and interaction are paramount.

Developing these skills through targeted training programs—along with onboarding those that fit your values—can enhance staff performance and guest satisfaction significantly. Moreover, personal development initiatives can greatly influence staff motivation and retention by investing in the continuous growth and development of your employees.

When staff feel valued and see opportunities for personal and professional growth, they are more likely to stay with your business, reducing turnover rates. This is particularly important in this industry, where high turnover can disrupt operations and negatively impact service quality.

By fostering a culture of continuous learning and development despite the advancements in technology, your business can create a motivated and loyal workforce that is committed to delivering exceptional guest experiences.

Bridging the Gap: Integrating Technology and Personal Development

To truly revolutionize this industry, it is essential to adopt a holistic approach that integrates technology while maintaining a strong focus on human elements. A balanced approach ensures that while technology streamlines operations and enhances guest experiences, the human touch remains a key component of hospitality.

This integration involves not only the implementation of advanced technologies but also the development of staff skills to use these tools effectively.

Such an approach ensures your business can harness the full potential of both technology and its workforce, creating a seamless and enriching experience for both staff and guests.

Creating effective training programs is a critical step in this integration. These programs should include comprehensive education on technology and AI, ensuring that staff are not only familiar with new tools but also confident in using them.

Keys to Effective Training

Training should be continuous and not a one-off or a one-hour briefing, and should cover practical aspects of technology use.

For example, this may include operating digital check-in systems or utilizing AI-driven guest service platforms, as well as theoretical understanding of how these technologies enhance operations and guest satisfaction.

Regular workshops, online courses, and hands-on training sessions can help staff stay updated with technological advancements, and develop the necessary skills to leverage these tools in their daily tasks.

Fostering a collaborative culture is equally important in helping staff embrace these new technologies. Encouraging a culture of collaboration and continuous improvement can significantly ease the transition to a technology-enhanced workplace. Involving staff in the decision-making process and encouraging feedback ensures that team member feel valued. Therefore, they are more likely to engage with new technologies.

Bridging the gap between technology and personal development requires a balanced approach that integrates technological advancements with comprehensive training programs and a collaborative culture. This holistic strategy ensures that the hospitality industry can leverage the benefits of technology while maintaining the essential human touch that defines the exceptional service we all love and strive for.

Integrating the Technology

Integrating technology and personal development doesn’t set aside the requirement for careful assessment and planning. Begin by evaluating your current technology and training needs to identify gaps, and opportunities for improvement.

Conduct an audit of your existing systems and processes (tech-based and non-tech-based systems), gather feedback from your staff, and set clear objectives for integration. A thorough assessment helps create a strategic playbook that aligns technological advancements with the developmental needs of your staff, ensuring a cohesive approach.

When it comes to technology adoption, it’s crucial to select and implement new tools that complement your personal development goal, operational needs, and guest experiences. Choose technologies and AI tools that enhance operational efficiency and guest experiences without compromising the human element.

Consider factors such as ease of use, scalability, and integration capabilities. Pilot testing new technologies before full implementation can help identify potential issues, and ensure a smoother transition.

Regular updates and feedback are essential for maintaining the effectiveness of your technology and training programs. Take the time to establish a continuous feedback loop where staff can share their experiences and suggestions for improvement, and then update your systems and training materials regularly to reflect the latest advancements and best practices.

This proactive approach ensures that your team remains equipped with the knowledge and skills needed to leverage new technologies more effectively.

Overcoming Resistance to Change

If you’ve been operating for a number of years and the embracing of technology is new to your style of operations, you may receive resistance from staff who have been with you for a while. Addressing potential resistance to change is a common challenge in integrating technology (or any other type of change).

Strategies for overcoming this resistance may include involving staff in the decision-making process, providing comprehensive training, and highlighting the benefits of new technologies. Developing a growth-based mindset within your workplace culture—through positive reinforcement and recognition of early adopters—can also help encourage acceptance and enthusiasm for change.

Lastly, continuous improvement is vital for sustaining the benefits of technology and personal development initiatives while positioning your brand for the new era that’s upon us.

Evaluate the impact of new technologies and training programs on your operations regularly, and be aware of guest satisfaction scores. Use performance metrics and feedback to identify areas for improvement, and make necessary adjustments.

This commitment to ongoing development ensures that your hospitality business remains competitive and adaptive to future industry changes.

Bridging the gap between technology and personal development is essential for creating a seamless and enriching experience for both staff and guests. Embrace these approaches so your business can innovate and thrive, while still maintaining the warmth and personalized service that define exceptional hospitality.

Image: DALL-E

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A well-crafted chicken sandwich with pickles, lettuce, and sauce, served next to a basket of French fries
by David Klemt David Klemt No Comments

Campbell’s Shares Tips for LTOs

Campbell’s Shares Tips for LTOs that Generate ROI

by David Klemt

A well-crafted chicken sandwich with pickles, lettuce, and sauce, served next to a basket of French fries

Yes, the Chicken Sandwich Wars are still going strong in 2024.

We appreciate Campbell’s Foodservice’s reports and posts, and their most recent insights address how operators can succeed with LTOs.

For example, our look into their tips for leveraging nostalgia is here. And our thoughts on Campbell’s Culinary TrendPulse 2024 report are here for your review.

This time out, Campbell’s Foodservice, utilizing data from Technomic, Datassential, and other sources, is tackling LTOs.

If you’re a regular reader of KRG Hospitality’s industry insights, you know we love an LTO—if an operator executes it effectively. Along those lines, you probably also know that we view Taco Bell as a leader in the industry when it comes to leveraging the power of LTOs.

Not only does the QSR giant know what their guests want, they know how to generate demand. In fact, Taco Bell understands the power not just of LTOs but of tying them to their subscriptions. Take, for example, their Taco Lover’s Pass and the Toasted Breakfast Taco menu drop.

When approached with thoughtful consideration, well-executed LTOs are a crucial element of an operator’s marketing and branding strategy. They drive traffic and sales, boost guest engagement and loyalty, and attract attention from first-time guests.

Of course, crafting a gainful LTO—gaining profits, loyalty, and positive public perception—can be easier said than done. However, there are a number of steps you can take to get the ball rolling and come up with one that reflects your brand, and resonates with guests.

Four Steps

Kicking off their tips, Campbell’s Foodservice recommends keeping LTOs simple. As they say in their report, which you can read here, operators need not “reinvent the wheel” when developing these promotions.

You can differentiate an LTO menu item from its standard counterpart in a number of simple ways. A few examples are using a unique cooking process, crafting a limited-edition sauce, and featuring a distinctive and specific topping or two.

Another tip is to do your best to offer LTOs that embrace current trends. While sharing these tips, Campbell’s cites Datassential and the revelation that just 20 percent of all LTOs are recurring. That means that the vast majority of LTOs are new creations, not stalwarts like the McRib. To draw the attention of a wider swath of guests, feature regional and local items and flavors. Per Datassential, 70 percent of guests are interested in such LTOs.

Speaking of attention, operators should learn how to take and edit attractive F&B images. Or, as Campbell’s says, “make LTOs pretty.” Per Datassential, roughly a third of consumers will try an LTO if it looks appealing in an advertisement or in-store imagery.

Finally, and this one is crucial as it embodies the previous three tips, leverage seasonality. It’s currently summer, so what can you add in the way of flavor to an existing item? Is that item regional and locally sourced? Will photographing it and crafting a sharp post communicate the season and inspire a bit of FOMO? These questions can help guide your approach to crafting profitable LTOs.

Oh, and to help you get started, I’ve shared Campbell’s season flavor suggestions below. Cheers!

Campbell’s Foodservice Seasonal Flavors

Not only did Campbell’s share tips for succeeding with LTOs, they also provided several examples of seasonal flavors to inspire you and your team.

Since it’s July, I’ll start with their summer suggestions.

Summer: basil, blackberries, corn, cucumbers, peaches, tomatoes, watermelon, zucchini

Fall: artichokes, cranberries, edamame, parsnips, pears, pumpkin, sweet peppers, tomatillos, turnips,

Winter: butternut squash, persimmons, radishes, salsify (a root vegetable), sunchokes, sweet potatoes, tangerines

Spring: asparagus, fava beans, pea greens, rhubarb, snap peas, spring onions, strawberries

Campbell’s Foodservice sources:

  1. Foodservice and Hospitality: A strong LTO strategy helps operators retain and grow their customer base (March 2024)
  2. Datassential: Limited Time Offers Keynote Report
  3. Technomic: 162 Best-in-Class LTOs for 2023
  4. Food & Drink Resources: A Limited Time Offer Strategy For Restaurants
  5. Your Guide to Seasonal Fruits and Vegetables, The Spruce Eats
  6. Datassential: State of the LTO 2024

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AI-generated image of the Tales of the Cocktail Spirited Award on top of a bar, next to a cocktail
by David Klemt David Klemt No Comments

Cheers to the 2024 Spirited Award Winners!

Cheers to the 2024 Spirited Award Winners!

by David Klemt

AI-generated image of the Tales of the Cocktail Spirited Award on top of a bar, next to a cocktail

This image depicting what an AI system “thinks” a Spirited Award looks like will always amuse me.

We didn’t attend Tales of the Cocktail this year but we did watch the Spirited Award livestream to celebrate our peers receiving the recognition they deserve.

Let’s dive right into it!

A massive congratulations to the team at ALQUÍMICO in Cartagena des Indias, Colombia, for grabbing the World’s Best Bar crown.

Two incredible and generous bar pros, Alex Jump and Danil Nevsky, are this year’s Best US Bar Mentor and Best International Bar Mentor, respectively. I want to thank Jump for using her time on stage to call out the mental and physical health threats our industry continues to face.

This year’s Timeless US Award goes to The Buena Vista in San Francisco, California, while the Timeless International Award winner is Café Pacifico in London, UK. Hidetsugu Ueno’s commitment to the craft of bartending, hospitality, mentorship, and community earned him the 2024 Helen David Lifetime Achievement Award. Colin Asare-Appiah (“Get involved, bruv!”) is the more-than-deserving winner of this year’s Tales Visionary Award.

A special congratulations to Nectaly Mendoza, Joy Figueroa, and the team at Cleaver in Las Vegas for earning the Best US Restaurant Bar award. Yes, my civic pride is showing.

Another tip of the cap goes to Handshake Speakeasy in Mexico City, Mexico, for picking up three Spirited Awards: World’s Best Cocktail Menu, Best International Bar Team, and International Bartender of the Year. Congratulations to Eric van Beek!

Allegory at the Eaton Hotel takes two Spirited Awards back to DC: Best US Hotel Bar, and US Bartender of the Year. Cheers to Kapri Robinson!

Should you want a refresher regarding the four finalists from each award category, click here. The top-ten nominees are listed here, and the top-ten regional honorees can be found via this link.

Below, the award winners in the order they were revealed during the 2024 ceremony. Cheers!

Best New International Cocktail Bar

Bar Leone (Hong Kong)

New New US Cocktail Bar

Superbueno (New York, New York)

Best Cocktail & Spirits Publication

The Cocktail Lovers

Best Cocktail & Spirits Writing

“A New Spirit Confronts the Consequences of Colonialism,” by Adaorah Oduah, for Punch

Best International Brand Ambassador

Dave Mitton, Lot 40 / J.P. Wiser’s

Best US Brand Ambassador

Anna Mains, Monkey Shoulder

Best Broadcast, Podcast, or Online Video Series

Bartender At Large, hosted by Erick Castro

World’s Best Cocktail Menu

Handshake Speakeasy (Mexico City, Mexico)

Best International Restaurant Bar

Danico (Paris, France)

Best US Restaurant Bar

Cleaver – Butchered Meats, Seafood & Classic Cocktails (Las Vegas, Nevada)

Best International Bar Team

Handshake Speakeasy (Mexico City, Mexico)

Best US Bar Team

Jewel of the South (New Orleans, Louisiana)

Best International Hotel Bar

BKK Social Club at Four Seasons Bangkok (Bangkok, Thailand)

Best US Hotel Bar

Allegory at the Eaton Hotel (Washington, DC)

Best New Book on Drinks Culture, History, or Spirits

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

Best New Cocktail or Bartending Book

The Ice Book: Cool Cubes, Clear Spheres, and Other Chill Cocktail Crafts by Camper English

Best International Cocktail Bar

ALQUÍMICO (Cartagena des Indias, Colombia)

Best US Cocktail Bar

Yacht Club (Denver, Colorado)

World’s Best Spirits Selection

Baba Au Rum (Athens, Greece)

Best New Spirit or Cocktail Ingredient

YUZUCO Yuzu Super Juice

International Bartender of the Year

Eric van Beek, Handshake Speakeasy (Mexico City, Mexico)

US Bartender of the Year

Kapri Robinson, Allegory at the Eaton Hotel (Washington, DC)

Best International Bar Mentor

Danil Nevsky

Best US Bar Mentor

Alex Jump

Image: Shutterstock. Disclaimer: This image was generated by an Artificial Intelligence (AI) platform.

KRG Hospitality. Bar Consultant. Nightclub. Lounge. Mixology. Cocktails.

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