Mindset – Page 2 – KRG Hospitality

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August 1, 2024by David Klemt David Klemt No Comments

Program for Unique Holidays: August 2024

Program for Unique Holidays: August 2024

by David Klemt

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

Several holidays are set against every date on the calendar, and this month is no exception. These holidays range from mainstream to esoteric.

Pay attention to the “weird” or unique holidays to raise eyebrows, carve out a niche for your restaurant or bar, and attract more guests. Why do what everyone else is already doing? Why program only around the same holidays as everyone else?

Of course, you shouldn’t try to celebrate every holiday, strange or otherwise. Focus on the days that are authentic to your brand; resonate with your guests; and help you grab attention on social media.

You’ll find suggestions for promotions below. However, the idea behind our monthly holiday promotions roundup is to inspire you and your team to get creative and come up with unique programming ideas.

For our July 2024 holidays list, click here.

August 3: National Mustard Day

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

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

August 6: National Night Out Day

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

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

August 7: Particularly Preposterous Packaging Day

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

August 11: Play in the Sand Day

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

August 12: Afternoon Tea Week

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

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

August 14: World Calligraphy Day

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

August 20: National Chocolate Pecan Pie Day

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

August 22: Burger Day

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

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

August 27: National Just Because Day

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

August 30: National Beach Day

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

Image: Ivan Bertolazzi on Pexels

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

July 30, 2024by David Klemt David Klemt No Comments

Bridge the Gap: Tech and Hospitality

Bridging the Gap Between Technology and Personal Development in Hospitality

by Doug Radkey

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

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

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

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

The Role of Technology in Modern Hospitality

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

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

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

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

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

The Emergence of AI in Hospitality

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

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

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

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

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

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

The Importance of Personal Development in Hospitality

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

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

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

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

Three Keys

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

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

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

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

Bridging the Gap: Integrating Technology and Personal Development

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

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

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

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

Keys to Effective Training

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

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

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

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

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

Integrating the Technology

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

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

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

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

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

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

Overcoming Resistance to Change

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

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

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

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

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

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

Image: DALL-E

A team meeting at a table, with people taking notes on notepads

July 25, 2024by David Klemt David Klemt No Comments

Feedback: Friend or Foe?

Feedback: Friend or Foe?

by Jennifer Radkey

Feedback can be used as a powerful tool for personal and professional growth, so why is it that the majority of people purposefully avoid it?

The short answer is that we don’t like to be told that we aren’t doing a good job. Even if the feedback is all positive, there is that slight chance that there might be some negative feedback. Therefore, it’s avoided all together.

There needs to be a mind shift towards feedback. Instead of thinking of it as a criticism of you personally, think of it as constructive advice for how to become a better version of you. Once you accept that, you can use that feedback to build a better version of your business.

Feedback is subjective to the person who is giving it. It is dependent upon that person’s experiences, values, and beliefs, which is why it can not be taken at face value. Feedback needs to be heard without judgment, and then examined for validity.

Assessments and feedback are tools that, when used properly, can give you an edge over your competition.

These tools provide clarity, and allow you to see potential areas for growth that you may not have been able to notice otherwise. When the feedback is positive, it highlights strengths for you to celebrate. When it is negative, it shines light on areas that need to be examined and possibly improved upon.

Who wouldn’t want that opportunity? So, instead of hiding or running away from feedback, what should you be doing?

Seek it Out

Make it a goal to actively seek feedback from others. Shifting your mindset and perception of feedback—positive or negative—to accept that it will help improve your business is powerful. If you are the one seeking feedback, then there is no room to fear it.

Who should you be asking for feedback from? Everyone!

Let’s start with your team. Your business is only as strong as your team. Your success relies heavily upon their performance.

You are most likely already providing constructive feedback to your team and celebrating their successes. (If this is not the case, you need to make this change.)

Are you asking for their feedback though?

Knowing how your team feels about working in your establishment is critical for creating a positive culture, lowering turnover, and building a reputation that makes people clamor to work for you. Create anonymous surveys or bring in a third party to conduct stay interviews to obtain the most valid and truthful feedback from your team. Many may be too fearful to share their honest opinion face to face with an owner or a member of a leadership team.

Next up, you need feedback from your guests.

Most operators already have a system in place for hearing customer feedback, whether it be Google reviews, Facebook reviews, or another platform. The question is…what are you doing with those reviews? Are they being read and considered, and replied to with a thoughtful response?

All three of those actions need to happen to take full advantage of the feedback guests provide. A guest who feels heard and valued is a guest who will respect your business.

Lastly, what feedback do your colleagues have for you? What are your competitors saying about you? Do vendors have a positive experience interacting with you?

The more you know about how others view your business, the more power you have to make informed, effective changes.

Analyze It

Once you have received feedback it’s time to approach it from a curious and analytical mindset. Remove emotional response (or accept your emotional response and put it aside) so that you can benefit from whatever the feedback may be.

Yes, if the feedback is negative you may have an initial negative response. You may feel defensive, angry, anxious, or frustrated. Accept that these are natural responses and then move on.

You will not be able to clearly analyze the feedback if you are stuck in a negative mindset.

A successful operator uses strategic thinking as their main tool to gain clarity. Get curious and start asking questions.

Is the feedback relevant? Is there truth in it? What experience led to it? How was that opinion formed?

Some feedback will require action to be taken on your end, others will not. It’s up to you to analyze and decide.

Implement It

After requesting and analyzing feedback, it’s time to implement it!

Purposeful action defeats fear every time. Take what you have discovered through the feedback that you sought out, and put it into action.

Create S.M.A.R.T. goals and an action plan for you and your team. Or, if the action is larger in scale, host a team meeting, and work together to create the goals and plan. Creating goals as a team allows for everyone to take ownership of the process and the results.

Don’t forget that it’s not only negative feedback that may need to be addressed with action, but positive feedback as well.

How are you going to share positive feedback with your team, and how will you celebrate it? Success is not only built upon implementing change where needed but also in the act of practicing gratitude when needed. Make sure you are doing both.

So, it’s time to stop hiding from feedback; it is your friend.

Seek it, analyze it, and then implement it. Not all feedback requires action on your end, but sometimes you will receive valuable feedback that may create a change in your business that could propel you to another level of success. Be ready for it.

Cheers to personal and professional growth!

Image: Dylan Gillis on Unsplash

July 23, 2024by David Klemt David Klemt No Comments

Difference Between a Plan and Playbook

The Difference Between a Plan and a Playbook

by Doug Radkey

Sometimes AI comes up with impressive images. This is one of them.

You’ve likely heard that 80 percent of hospitality businesses fail within the first five years.

When you ask those in the industry the question of why there is such a high rate of failure, they reply with a fairly predictable list of factors. These tend to be location, concept or brand confusion, lack of service standards, toxic workplace culture, sub-par marketing efforts, and mismanaged funds.

Many operators who fail try to quickly blame external factors, such as the economy.

When you ask the next question—what are the other 20 percent of operators doing differently to surpass five years in business—you get one simple answer. The difference between those who drive a sustainable profit of 12, 15 or 20 percent (or more) and those who don’t boils down to one thing and one thing only: they have strategic clarity.

It’s not that the successful 20 percent did not battle challenges or the same tough economy or labor struggles. What they had was clarity, and a playbook detailing how to overcome a multitude of challenges.

So how do you achieve strategic clarity? Well, it’s much more than just writing—or filling out a template for—a business plan.

What is Strategic Clarity?

Strategic clarity is the comprehensive understanding and alignment within your hospitality business regarding its identity, direction, purpose, and the means to achieve its goals.

It involves clear communication and consensus on key aspects of the business, ensuring that everyone is working towards the same objectives. Below, the key components that define strategic clarity.

1. Understanding Who We Are

Core Identity: This includes the mission, vision, and core values of your business. It defines what the business stands for, and its fundamental purpose.
Strengths and Weaknesses: Recognizing the business’ strengths, weaknesses, opportunities, and threats (SWOT) aids in identifying the core competencies and areas for improvement.
Culture: The shared beliefs and practices that characterize the business’ internal environment, and how it interacts with both staff and guest perceptions.

2. Knowing Where We are Going

Vision: A clear and compelling picture of what the business aspires to become in the future. It serves as a guide for choosing current and future courses of action.
Long-term Goals: Specific, measurable, achievable, relevant, and time-bound (SMART) goals that outline the desired outcomes over an extended period.
Milestones: Intermediate targets that mark progress towards the long-term goals.

3. Understanding Why We are Doing This

Purpose: The fundamental reason for the business’ existence beyond making a profit. It encompasses the broader impact the business aims to have on its community.
Motivation: The driving force behind the business’ actions and strategies. This includes the values and principles that guide decision-making, as well as behavior.
Stakeholder Alignment: Ensuring that the goals and activities of the business align with the interests and needs of its stakeholders: guests, employees, investors, and the community.

4. How We are Going to Get There

Strategy: The overarching plan that outlines how the business will achieve its vision and long-term goals. It includes the allocation of resources and the selection of strategic initiatives.
Tactics: The specific actions and steps that will be taken to implement the strategy. This involves detailed planning, delegation, resources, and execution.
Performance Metrics: The criteria and tools used to measure progress and success. Key Performance Indicators (KPIs) and other metrics help track the effectiveness of strategies and tactics.
Continuous Improvement: The process of regularly reviewing and refining strategies and tactics based on performance data and changing circumstances.

Strategic clarity is essential for the cohesive and effective functionality of your bar, restaurant, or hotel business. This leadership approach ensures that all members understand and are aligned with the business’ identity, direction, purpose, and methods.

By achieving strategic clarity, organizations can navigate challenges, seize opportunities, and build upon sustainable long-term success. What we have found over the years that attributes to long-term clarity and success is a series of playbooks.

Understanding Plans and Playbooks

Let’s first dive into the critical distinction between a plan and a playbook, and why this matters for your bar, restaurant, or hotel. Understanding and utilizing both can significantly impact your business’ ability to start strong, stabilize effectively, and ultimately position you to scale successfully.

A traditional business plan, as you may know it, is a document that outlines your goals, and the steps you will take to achieve them. It’s often the number one consideration to secure funding and to set strategic direction.

However, it is, more often than not, missing plenty of crucial information, strategies, and guidance that end up planting a false sense of security.

A playbook, on the other hand, is a more comprehensive guide filled with detailed processes, best practices, and adaptable strategies tailored to your specific operations. Within this dynamic industry, you need more than a standard business plan if you want to be successful.

In fact, you should have eight different playbooks in place to position yourself within the top echelon of this industry.

The Power of Playbooks in Hospitality

While plans are often static or rigid (and often forgotten about shortly after they’re written), playbooks are designed to be flexible and adaptable.

Playbooks provide a step-by-step guide, ensure consistency and efficiency, and offer adaptable strategies and best practices to start, manage, and grow effectively.

Playbooks go into more granular details, and provide actionable steps. In this way, they’re notably different from a singular business plan.

The Eight Playbooks

No matter if you are operating a coffee shop, bar, restaurant or hotel (or any other concept within the hospitality industry), the following eight playbooks should be looked at as non-negotiables.

Feasibility Study/Playbook: The foundational guide for assessing the viability of your hospitality business idea. It involves a comprehensive analysis of the market, competitive landscape, financial projections, and operational requirements. This playbook helps you determine whether your concept is realistic and profitable before committing significant resources.
Concept Playbook: Focuses on refining your hospitality business idea into a clear and compelling concept. This playbook guides you through creating a unique value proposition, defining your target market, and outlining the core elements of your business, including service style, interior design, and internal programming.
Prototype Playbook: A step-by-step guide to developing a tangible representation of your hospitality concept. This playbook helps you create a prototype that can be tested and refined before a full-scale launch. This playbook covers design specifications, operational workflows, fixtures/furniture/equipment, and detailed budgets.
Brand Strategy & Identity Playbook: Defines the strategic approach to building and maintaining a strong brand. This playbook covers the creation of your brand identity, messaging, and positioning to ensure consistent and impactful brand communication. It involves color psychology, core values, mission statements, brand experiences, and more.
Marketing Playbook: Outlines the strategies and tactics to attract, build, and retain your target guests. This playbook provides a roadmap for creating and executing effective marketing campaigns across various channels. It provides a step-by-step guide on content, social media management, database building, email marketing, partnerships, and community activations, along with detailed guest journey maps.
Tech-stack Playbook: Provides guidance on selecting and implementing the correct technology solutions to enhance your hospitality operations. This playbook ensures that your technology infrastructure supports your business goals and improves efficiency. This playbook identifies technology gaps, software solutions, hardware requirements, and integration plans, plus training and support on technology.
Financial Playbook: A comprehensive guide to manage your hospitality business’ finances. This playbook covers budgeting, financial forecasting, accounting practices, and financial performance analysis. It should highlight financial contingency plans, mock labor schedules, daily/weekly/monthly/seasonal traffic reports that align with the business, and financial objectives.
Operational Playbook (a.k.a. Business Plan): Outlines the day-to-day operations in great detail, along with long-term strategies. This playbook ensures that all aspects of your operations are well-coordinated and aligned with your overall business goals, and the other seven playbooks. It should highlight standard operating procedures, labor plans, supply chain management, guest services, and measurable operational metrics.

You’ll notice there are seven other playbooks written before the business plan. Far too often, this is where people start. Without the other seven playbooks, it will be nearly impossible to craft a winning playbook for your day-to-day operations.

When Should You Use Playbooks

To Start: These eight playbooks are crucial to craft your success story right from the beginning. Build the foundations before signing a lease or purchasing a property.
To Stabilize: If you’re currently underperforming (profit margins under 12 percent for bars and restaurants, and under 15 percent for hotels), use playbooks to generate impactful results.
To Scale: These playbooks will help ensure that both your first location—and the next location—are prepared for consistent operations without diminishing your brand equity.

Strategic planning within detailed playbooks is essential for your hospitality business’ success.

Regardless of your current position, evaluate your use of business plans, and consider developing comprehensive playbooks instead. Make the time and commitment to achieving true clarity in your business, and position yourself to be on the correct side of this industry’s statistics.

AI image generator: DALL-E