Mindset

Flipping through an open book
by David Klemt David Klemt No Comments

5 Books to Read this Month: October 2024

5 Books to Read this Month: October 2024

by David Klemt

Flipping through an open book

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

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

Let’s jump in!

Dining Out: The New Restaurant Interior Design

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

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

Order your hardcover copy here.

Reset: How to Change What’s Not Working

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

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

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

Place your pre-order for this book today.

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

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

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

Click here to order your copy.

Malört: The Redemption of a Revered and Reviled Spirit

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

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

Grab yours here!

Bar Hacks: Developing The Fundamentals for an Epic Bar

Yep, I’m taking the opportunity to recommend Doug Radkey’s first book. Radkey is, as you may know, the president of KRG Hospitality. In his this book he explains the importance of nailing the fundamentals in order to:

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

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

Click here to get your copy today!

Image: Mikołaj on Unsplash

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Two people sitting outside on a bench, dressed professionally, discussing goals and business
by David Klemt David Klemt No Comments

Someone to Rely On: Accountability

Someone to Rely On: Accountability Partners

by Jennifer Radkey

Two people sitting outside on a bench, dressed professionally, discussing goals and business

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

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

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

Be Strategic

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

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

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

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

Essentially, they gave up on it.

Be Cautious

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

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

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

You need an accountability partner.

Be Selective

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

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

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

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

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

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

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

Be Mindful

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

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

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

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

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

Cheers to personal and professional growth!

Image: Medienstürmer on Unsplash

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An AI-generated image illustrating the concept of systems, analysis, and improvements
by David Klemt David Klemt No Comments

The Modern Approach to Systems: Part 2

The Modern Approach to Systems: Part 2

by Doug Radkey

An AI-generated image illustrating the concept of systems, analysis, and improvements

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

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

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

Introduction to Six Sigma

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

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

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

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

Framework

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

It consists of five phases:

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

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

Belt System

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

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

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

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

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

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

Applying Six Sigma to the Industry

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

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

Six Sigma in Bars

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

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

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

Six Sigma in Restaurants

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

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

Six Sigma in Hotels

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

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

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

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

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

Benefits of a Systematic Approach

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

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

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

How to Integrate Six Sigma and Kaizen

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

Sequential Implementation

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

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

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

Parallel Application

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

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

Comprehensive Improvement

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

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

Enhanced Employee Engagement

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

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

Flexibility and Adaptability

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

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

Balanced Approach to Cost and Efficiency

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

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

To the Future

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

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

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

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

Simplify the Journey

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

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

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

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

Image: DALL-E

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An AI-generated image of an open hand "holding" gears that are hovering over the palm, illustrating the concept of systems
by David Klemt David Klemt No Comments

The Modern Approach to Systems: Part 1

The Modern Approach to Systems: Part 1

by Doug Radkey

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

Must be a magician.

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

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

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

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

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

Understanding Kaizen

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

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

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

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

The Core Principles of Kaizen

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

The Plan-Do-Check-Act Cycle

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

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

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

Applying Kaizen to the Industry

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

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

Kaizen in Bars

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

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

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

Kaizen in Restaurants

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

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

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

Kaizen in Hotels

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

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

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

Takeaway

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

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

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

Image: DALL-E

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An AI-generated image of a tattooed female bartender, standing and smiling behind the bar
by David Klemt David Klemt No Comments

How do You Measure Success?

How do You Measure Success?

by David Klemt

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

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

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

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

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

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

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

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

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

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

But what about considering how your business makes you feel?

For Your Condsideration

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

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

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

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

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

Satisfaction, Happiness, and Pride

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

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

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

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

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

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

Image: Microsoft Designer

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An AI-generated image of two silver balloons forming the number 15, superimposed over the interior of an upscale restaurant
by David Klemt David Klemt No Comments

15 Years of Consulting: Lessons Learned

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

by Doug Radkey

An AI-generated image of two silver balloons forming the number 15, superimposed over the interior of an upscale restaurant

Note: AI-generated image.

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

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

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

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

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

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

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

The Power of Adaptability

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

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

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

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

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

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

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

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

Embracing Innovation

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

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

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

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

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

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

How to Embrace Innovation

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

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

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

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

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

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

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

Driving Resilience

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

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

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

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

Real-World Resilience

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

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

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

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

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

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

Core Values in Action

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

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

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

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

Our Core Values

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

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

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

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

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

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

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

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

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

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

Conclusion

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

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

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

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

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

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

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

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

Who’s with us?

Image: DALL-E

 

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An image from the 2024 Tales of the Cocktail keynote session entitled "How Bartenders Grow Your Brand: The Findings"
by David Klemt David Klemt No Comments

Tales Enters Their Fundraising “Era”

Tales of the Cocktail Enters Their Fundraising “Era”

by David Klemt

An image from the 2024 Tales of the Cocktail keynote session entitled "How Bartenders Grow Your Brand: The Findings"

An image from the 2024 Tales of the Cocktail keynote session entitled “How Bartenders Grow Your Brand: The Findings”

Tales of the Cocktail Foundation is partnering with Children’s Hospital New Orleans to raise much-needed funds, and they want your help.

All proceeds this dynamic duo raise via people’s generosity will benefit TOTCF and CHNOLA directly.

By now, you know Tales. While we all look forward to their annual gathering of the bartender community, Tales works all year to advocate for and support hospitality. However, you may be unfamiliar with CHNOLA if you live outside of Louisiana.

Like TOTCF, CHNOLA is a non-profit organization. Next year, the pediatric acute care children’s teaching hospital will celebrate its 70th anniversary. Perhaps unsurprisingly, CHNOLA operates in affiliation with the Louisiana State University Health Sciences Center. In operation for nearly 100 years, LSU Health is home to several key medical schools, and patient care clinics.

Serving those who are just days old to 21 years of age, CHNOLA is a crucial member of the New Orleans community. In fact, as the only children’s hospital in the LCMC Health network, CHNOLA serves not only NOLA, not only the state of the Louisiana, but the entirety of the Gulf Coast region.

Supporting TOTCF and CHNOLA is rewarding in and of itself. But doing so via the dedicated link below will enter one winner per raffle (there are two) for two suite tickets for the Taylor Swift Eras concert being held on October 26 in New Orleans.

You’ll find more details below. Good luck to all who give and enter, and cheers!

TALES OF THE COCKTAIL FOUNDATION ANNOUNCES TAYLOR SWIFT ERAS TOUR TICKET RAFFLE

Two sets of two (2) suite tickets to be raffled off to benefit Tales of the Cocktail Foundation and Children’s Hospital New Orleans

NEW ORLEANS, LA (August 22, 2024)—In support of Tales of the Cocktail Foundation’s (TOTCF) mission to educate, advance, and support the global hospitality industry, the non-profit is thrilled to announce that they are in their fundraising era alongside Children’s Hospital New Orleans (CHNOLA) to raffle two sets of two (2) suite tickets to Taylor Swift’s October 26 Eras concert in New Orleans. Two separate drawings will be held–September 13 and September 20–each selecting one winner to receive a set of two (2) suite tickets for each raffle. All proceeds will directly benefit TOTCF and CHNOLA, additional details and a link to purchase tickets may be found on the dedicated raffle page.

“Following our wildly successful annual Tales of the Cocktail® 2024 conference, we couldn’t be more honored to partner with Children’s Hospital New Orleans on this fun and impactful fundraising effort,” said Tales of the Cocktail Foundation CEO Eileen Wayner. “We are thrilled to welcome Taylor Swift to the Crescent City with New Orleans’ globally recognized hospitality, and send two lucky raffle winners and their guests to enjoy her show.”

“We are incredibly grateful to Tales of the Cocktail Foundation and all of the many raffle participants for choosing to support the vital mission of Children’s Hospital New Orleans. Your generous support helps us care for every child in our community, including some of our most vulnerable,” said Lucio A. Fragoso, President and CEO, Children’s Hospital New Orleans. “Each chance to win helps us continue to provide expert pediatric healthcare for every child, regardless of the family’s ability to pay.”

Drawing Dates:

Raffle 1 – September 13, 2024 at 2 pm CST

Raffle 2 – September 20, 2024 at 2 pm CST

The raffle is conducted by TOTCF, operated under Louisiana Gaming License No. L0010538.

For more information on Tales of the Cocktail, please visit the Tales of the Cocktail Foundation website, Instagram, Twitter, and Facebook.

For more information on Children’s Hospital New Orleans, please visit the Children’s Hospital New Orleans website, Instagram, Twitter, and Facebook.

ABOUT TALES OF THE COCKTAIL FOUNDATION:

Tales of the Cocktail Foundation is a non-profit organization that educates, advances, and supports the global hospitality industry and creates a lasting impact in our host communities. Tales of the Cocktail Foundation is the global leader in spirits education and a platform to tackle issues facing the industry. The pillars of the Foundation are to Educate, Advance, and Support the hospitality industry through programs that benefit individuals and organizations in the community and to make a lasting impact in communities that host our events.

ABOUT CHILDREN’S HOSPITAL NEW ORLEANS

For nearly 70 years, Children’s Hospital New Orleans has delivered expert care for children across our state and region. As the first and largest non-profit, freestanding children’s hospital in Louisiana, we rely on the generous support of our donors, friends, and community to provide expert care for every child, regardless of his or her family’s ability to pay.

A healthier, happier future for our children is possible with your support. Building an extraordinary future for our kids starts by delivering the best possible healthcare for children right here in Louisiana. We invite you to join us in our unwavering commitment to change the health of the next generation.

Image: Josh Brasted

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by David Klemt David Klemt No Comments

Why You Should Invest in Strategy

Why You Should Invest in Strategy and Foresight

by Doug Radkey

A surprising trend is emerging: Many aspiring entrepreneurs, restaurateurs, hoteliers, and seasoned business owners are hesitant to invest in two key elements.

Those elements? Strategy and foresight.

Despite understanding the importance of strategic direction, they often prioritize more immediate needs such as hiring talent, refining processes, and other operational aspects. However, these efforts, while crucial, can lack cohesion and effectiveness without a well-defined strategy guiding them.

Financing can be tight but that’s not often the issue. I’ve witnessed business owners eagerly spend $25,000 on new tables and chairs—when they weren’t necessary—while hesitating to invest the same amount in strategic planning that could yield a much higher return on investment.

It’s even more surprising to see new entrepreneurs pour over $1 million into launching a new bar or restaurant, only to balk at a $25,000, comprehensive strategy package.

This package, which includes a feasibility study, concept development playbook, brand strategy, marketing playbook, tech-stack playbook, financial playbook, and business strategy playbook, is often dismissed as “not in the budget.”

Yet, this investment in strategy is crucial for setting a strong foundation, and ensuring both short-term and long-term success. It’s like navigating without a map, or building a house without a blueprint; there may be some progress, but without a clear vision and destination, there’s a much greater risk of veering off course.

In terms of restaurants, bars, or hotels, a lack of strategy and foresight leads an owner to crumble their business to the ground.

This article explores the reasons why investing in strategy and foresight is not just a wise choice but an essential one for ensuring success and stability in an increasingly unpredictable industry.

What are Strategy and Foresight?

To overcome the laundry list of potential obstacles in this industry, you must prioritize strategic thinking, invest in the necessary resources and expertise, and cultivate a culture that values long-term planning.

No matter whether you’re starting, stabilizing, or scaling your brand, you need both strategy and foresight on your side.

Foresight

Foresight is the process of anticipating and envisioning potential future scenarios, trends, and developments. It involves analyzing emerging patterns, uncertainties, and possible disruptions to understand what the future might hold for you and your bar, restaurant, or hotel.

Foresight is not about predicting the future with certainty but about exploring a range of possibilities, and preparing for each of those scenarios.

Key Characteristics:

  • Explorative: Foresight explores multiple potential futures rather than focusing on a single expected outcome.
  • Long Term: Typically, a focus on the long-term implications of current trends and decisions.
  • Proactive: Foresight encourages proactive thinking and planning to anticipate changes, and prepare for various possibilities.
  • Qualitative and Quantitative Analysis: A combination of qualitative insights and quantitative data to create comprehensive future scenarios.

Strategy

Strategy, on the other hand, is the formulation and implementation of a plan to achieve specific goals and objectives. It involves making deliberate choices and decisions to allocate resources, navigate challenges, and capitalize on opportunities.

Strategy is focused on setting a clear direction, and determining the actions needed to reach desired outcomes.

Key Characteristics:

  • Directive: Strategy provides a clear roadmap and actionable steps to achieve goals.
  • Focused on Execution: The practical aspects of how to achieve desired outcomes, including resource allocation, prioritization, and performance measurement.
  • Short to Medium-Term: Strategy often addresses short to medium-term objectives, aligning current actions with long-term vision.
  • Decision Making: Strategic decisions based on the current understanding of the environment, resources, and capabilities.

Why You Should Integrate Strategy and Foresight

When you combine strategy with foresight you and your business can make more informed decisions. An informed decision is the consideration of both the present context and potential future developments.

Foresight provides valuable insights into emerging trends and uncertainties, helping your brand anticipate challenges and opportunities. This integration ensures that strategic decisions are based on a comprehensive understanding of possible future scenarios. Strategic decision reduce the risk of being caught off guard by unexpected changes.

Integrating foresight into the strategic planning process enhances your businesses adaptability and resilience. Foresight allows you to explore a range of possible futures, and develop contingency plans for different scenarios.

This proactive approach enables you and your team to respond quickly and effectively to changes in the external environment. Whether technological advancements, market shifts, or sociographic adjustments, you’ll be prepared to adapt quickly.

Innovation and Risk Management

Foresight provides a long-term vision, while strategy focuses on short-term actions. By integrating the two, your hospitality business can align its immediate goals and actions with its long-term vision. Doing so ensures consistency and coherence in decision-making, and helps you stay on track toward achieving your long-term objectives. It also helps bridge the gap between future aspirations and current realities, creating a more cohesive and actionable playbook.

When you act with foresight, you encourage the exploration of new ideas and potential innovations by identifying emerging trends and disruptions. Integrating foresight with strategy enables your business to pursue innovative solutions proactively, and capitalize on emerging opportunities. This combination fosters a culture of innovation, and encourages you and your team to think beyond the present, seeking ways to stay ahead of the competition continually.

Foresight helps identify potential risks and uncertainties that may impact your business in the future. Incorporate these insights into the strategic planning process so you can develop strategies for your business that mitigate or manage risks.

A proactive approach to risk management reduces vulnerability, and enhances organizational stability.

Foresight and Strategy Sample for Starting a Hospitality Brand

Strategy

Feasibility Study: Assess market demand, demographics, competition, and potential profitability. This foundational step provides a realistic view of the business opportunity and potential challenges.

Brand and Concept Development: Define the unique selling proposition (USP), story, target market, and brand identity. Develop a detailed playbook outlining the concept, including menu/room design, service style, and intended ambiance.

Site Selection and Design: Choose a location based on the completed feasibility study. Design the space to reflect the brand’s identity and concept with a reputable designer who follows the vision.

Foresight

Market Trends Analysis: Identify emerging food and beverage trends, changes in consumer preferences, and demographic shifts. Use this information to shape the concept and offerings.

Regulatory Landscape: Anticipate potential changes in regulations related to health, safety, and licensing. Prepare to adapt to these changes to ensure compliance and minimize disruptions.

Technological Integration: Explore advancements in restaurant and hotel technology. Plan for their implementation by developing a tech-stack that enhances the guest experience, and operational efficiency.

Foresight and Strategy Sample for Stabilizing a Hospitality Brand

Strategy

Operational Efficiency: Streamline processes, optimize inventory management, and implement cost-control measures. Review financial performance regularly to identify areas for improvement.

Marketing and Branding: Develop a cohesive marketing strategy to build brand awareness and loyalty. Leverage social media, local events, and partnerships to attract and retain guests.

Guest Experience: Standardize service protocols, and enhance staff training. Focus on delivering consistent and high-quality experiences to build a loyal guest base.

Foresight

Scenario Planning: Develop contingency plans for potential disruptions, such as economic downturns, supply chain issues, or changes in consumer behavior. This preparedness helps the business remain resilient in the face of uncertainty.

Competitive Analysis: Monitor competitors’ strategies and market positioning continuously. Adapt and differentiate the brand’s offerings to maintain a competitive edge.

Guest Feedback and Data Analysis: Collect and analyze guest feedback to identify emerging preferences, and areas for improvement. Use this data to refine offerings and enhance guest satisfaction.

Foresight and Strategy Sample for Scaling a Hospitality Brand

Strategy

Expansion Planning: Evaluate potential markets for expansion, considering factors such as demographics, market demand, and competition with a feasibility study. Develop a scalable business model and expansion strategy.

Brand Consistency: Develop and maintain brand standards, and ensure consistency across all locations. Implement standardized operating procedures and quality control measures.

Partnerships and Collaborations: Explore strategic partnerships with suppliers, local businesses and community partners, or other brands to enhance offerings and expand reach.

Foresight

Future Market Opportunities: Identify emerging markets and growth opportunities, such as new geographic regions, niche markets, or evolving guest segments. Plan to enter these markets with tailored offerings.

Innovation and Adaptation: Foster a culture of innovation by encouraging the exploration of new ideas, products, and services. Stay ahead of industry trends and incorporate innovative solutions to differentiate the brand.

Risk Management: Assess potential risks associated with scaling, such as supply chain complexities, cultural differences, or operational challenges. Develop an outlook to mitigate these risks and ensure smooth expansion.

In Summary

The integration of strategy and foresight into your hospitality business is not a luxury but a non-negotiable.

Investing in these areas will provide your business with the tools and insights needed to navigate uncertainties, anticipate market shifts, and make informed decisions that align with your goals. Far from being mere expense lines, strategy and foresight are foundational elements that drive growth, innovation, and resilience.

Prioritize strategic planning and future-oriented thinking so your business can create a cohesive and actionable roadmap that bridges the gap between current realities and future aspirations. This investment enables you to address potential challenges, capitalize on emerging opportunities, and maintain a competitive edge in a proactive manner.

Whether starting a new venture, stabilizing your operations, or scaling your business to new heights, the integration of strategy and foresight empowers you to outperform the competition in this ever-changing environment.

Ultimately, the value of investing in strategy and foresight goes beyond immediate financial returns. This integration cultivates a culture of continuous improvement, adaptability, and forward thinking, ensuring that your business is not only prepared for the future but also positioned to shape it.

As such, you should view these investments not as costs but as crucial assets that contribute to the success and sustainability of your brand.

Image: Canva

KRG Hospitality. Restaurant. Bar. Hotel. Feasibility Study. Business Plan.

A viewing scope looking out toward a sunrise or sunset
by David Klemt David Klemt No Comments

Mindfulness Monday: Believe in Your Vision

Mindfulness Monday: Believe in Your Vision

by Jennifer Radkey

A viewing scope looking out toward a sunrise or sunset

Belief is a powerful thing, a commanding and inspiring force that draws us to people who believe in their purpose or their dream wholeheartedly.

Right now, you probably have a dream, a vision for your future or your business’ future. You could go after that dream on your own. However, at some point you are going to need someone else to believe in you and your vision.

That belief, that buy in from others, will help you build your team, secure funding, and gain personal support.

If you have a vision that you want others to believe in, whether a vision for the future of your business, yourself, your community, or your family, you need to believe in it first yourself.

Doubt can be sensed. Uncertainty clouds clarity.

Before asking others to believe in and support your vision, stop and ask yourself if you truly believe in it. If not, what is stopping you?

Start there. Tackle your own uncertainties before sharing the vision with those you need to believe in you.

Alignment

So what is blocking you from truly believing in your vision?

Most likely your thoughts, mindset, and actions aren’t aligned with your vision or goals. When this occurs, you wind up sabotaging yourself.

Sometimes, we do this wittingly. However, we most often sabotage ourselves unknowingly.

For example, if you believe you are undeserving, or if your self-worth is low, you can’t believe in your vision 100 percent. Do you have thoughts similar to “I don’t think I’ll be able to pull this off,” or “be realistic, no one will ever support this dream of mine”? If so, your thoughts and mindset are not in alignment with your goals.

It’s possible you have a checklist of actions you need to complete for you to realize your dream. If you haven’t checked anything off in months, if you’re procrastinating rather than taking purposeful action, your actions are not aligned with your vision.

You need to stop standing in your own way. We all need to be mindful and stop sabotaging ourselves.

First Steps

If you have low confidence or sense of self-worth, that’s where to start. Begin by looking at ways to boost your self-image. The more you believe you are worthy, the more you will believe in your vision.

What else can stand in your way of believing in your vision? Lack of knowledge and fear of the unknown.

We see this often through our work at KRG Hospitality. Clients come to us with a vision to open a new restaurant, bar, or hotel. And while the visions are solid, many people lack operational knowledge—and therefore lack confidence in themselves to believe that their concept will be successful.

One proven solution is to complete a detailed feasibility study for our client. Feasibility studies are amazing tools that not only prove your vision and concept, but also build confidence through the power of knowledge.

Knowing exactly why a specific business will work in a certain market (or should be located elsewhere) empowers a client to understand how their concept will perform in the real world. Knowledge is power.

When you remove an obstacle as daunting as the unknown, fear subsides. You are able to focus and develop an unwavering, justified belief, and others will take note.

The Power of Belief

Truly believing in your vision will not only help others believe in it too, but it will create a ripple effect of other positive attributes.

Belief boosts resilience, and increases determination and willpower. You will view setbacks as temporary, and challenges as opportunities to shift your mindset, and grow.

Motivation will increase, and you will become less risk averse. As you step out of your comfort zone to pursue your vision, you will, ultimately, end up inspiring others while inspiring yourself.

It’s true, not everyone will believe in your dreams. You don’t need everyone to believe in them. All you need is a handful of supporters to turn vision into reality.

But to inspire those few, you will first need to inspire yourself.

So, go ahead and choose the dreams worth going after. Dedicate yourself to those dreams—you’ve got this!

Cheers to professional and personal well-being!

Image: Matt Noble on Unsplash

KRG Hospitality. Business Coach. Restaurant Coach. Hotel Coach. Hospitality Coach. Mindset Coach.

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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