News

by David Klemt David Klemt No Comments

What’s the RRF Replenishment Act?

What’s the RRF Replenishment Act?

by David Klemt

The United States Capitol Building with cloudy sky in background

The ENTREE Act isn’t the only bill seeking to replenish the Restaurant Revitalization Fund. In fact, a bipartisan bill predates the ENTREE Act by a month.

So, what’s the difference between that bill and the Restaurant Revitalization Fund Replenishment Act of 2021?

Let’s take a look.

Additional Funding

Clearly, the biggest similarity between the two bills is the amount of money both are after.

Both the RRF Replenishment Act and ENTREE Act seek $60 billion.

As people familiar with the RRF will recall, the fund launched with $28.6 billion. Obviously, that was nowhere near enough funding to meet the demand for grants.

The RRF Replenishment Act was introduced in June by the same bipartisan group that first introduced the RRF. Sens. Kyrsten Sinema (D-AZ) and Roger Wicker (R-MS), and Reps. Earl Blumenauer (D-PA) and Brian Fitzpatrick (R-PA) introduced the bill on June 3.

Per a press release, nearly $50 billion in grant applications were left outstanding. The RRF application portal was closed just 21 days after launching.

$60 Billion

The biggest difference between the RRF Replenishment and ENTREE acts? Sourcing the $60 billion to replenish the RRF.

Per the text of the bill, the ENTREE Act would use unspent funds from the American Rescue Plan and Economic Injury Disaster Loans.

As for the RRF Replenishment Act, the funding would essentially come from “printing” an additional $60 billion.

Clearly, Americans will have differing opinions when it comes how the RRF is funded. However, using unspent, previously allocated funds does seem like a more logical approach.

So far, there’s no word on how these two bills may impact one another. There’s no news about the bills working in conjunction, just as there’s no news yet about a preference for one over the other.

With all eyes on the Senate and the progress of the infrastructure bill, we’re still awaiting answers on the RRF Replenishment and ENTREE acts.

Image: oljamu from Pixabay

by David Klemt David Klemt No Comments

Today’s the Day: Canada Opens Border

Today’s the Day: Canada Opens Border

by David Klemt

Canadian Border Services Agency sign on chainlink fence

The big day is here and Canada is opening their border to the USA.

Today, Americans and permanent residents can enter the country for “discretionary,” a.k.a. non-essential, travel.

Of course, the border is only open to travelers who can prove their vaccination status (full series).

Quarantine Lifted

As many Canadians are well aware, quarantining was mandatory for people traveling into Canada up until today.

Asymptomatic travelers, with very specific exemptions, were required to quarantine for 14 days upon arrival. The mandatory quarantine included a three-night stay at a hotel authorized by the Canadian government.

Oh, and the traveler had to cover the cost of the mandatory hotel stay.

However, that wasn’t all that was required. Travelers had to create and submit a quarantine plan. Foreign national who failed to submit a plan deemed suitable faced the risk of border agents turning them away.

Of course, the mandatory quarantine dissuaded Canadians from traveling across the border for essential travel. After all, Canadians weren’t exempt from hotel quarantine.

Requirements

Now, Americans or permanent residents residing in America aren’t receiving unfettered access to the border. Indeed, there are requirements that must be met for anyone hoping to cross into Canada from the US.

Per the Government of Canada website, in its entirety for clarity:

“Beginning on August 9th, 2021 at 12:01 a.m. EDTfully vaccinated United States (U.S.) citizens and permanent residents will be eligible to enter Canada for discretionary (non-essential) reasons, such as tourism, however these individuals must:

  1. be fully vaccinated: to be considered fully vaccinated, a traveller must have received the full series of a vaccine—or combination of vaccines—accepted by the Government of Canada at least 14 days prior to entering Canada. Currently, those vaccines are manufactured by Pfizer-BioNTech, Moderna, AstraZeneca/COVISHIELD, and Janssen (Johnson & Johnson).
  2. be residing in and travelling from the U.S.;
  3. have a valid pre-arrival COVID-19 molecular test result taken in the U.S. (antigen tests are not accepted);
  4. be asymptomatic;
  5. submit their mandatory information via ArriveCAN, including proof of vaccination in English or French;
  6. be admissible under the Immigration and Refugee Protection Act; and,
  7. take a test on arrival, if required.”

So, if you or someone you know is planning to travel to Canada from America, make sure you follow the requirements precisely.

Operators, Be Ready

So far, news of increasing infection and hospitalization rates aren’t impacting Canada’s decision; the border is open as of today. Neither New York City’s vaccine mandate nor an increasing amount of counties and corporations implementing mask and vaccine mandates are deterring Canada.

Additionally, it doesn’t appear as though the Canadian government plans to implement other travel requirements (so far).

Canadian restaurant, bar, hotel, and entertainment venue operators need to be ready for an influx of guests. This is particularly true for operators in large metropolitan areas and well-known tourist destinations.

Pent-up demand for travel, experiences, reunions, weddings, and just escape should skyrocket with the Canada-US border reopening.

Also, should things go well, operators need to prepare for even more travels next month. While not written in stone, Canada plans to open the country’s borders to other countries on September 7.

Interestingly, this is also excellent news for those waiting to open a restaurant or bar. Plans to reopen borders should prove to be a boon for the Canadian economy. So, now’s the time to move forward.

Canadian operators must be vigilant about monitoring the border situation. Fresh opportunities arrive on your doorstep starting today.

Image: Hermes Rivera on Unsplash

by David Klemt David Klemt No Comments

What is the ENTREE Act?

What is the ENTREE Act?

by David Klemt

United States Capitol Building on fifty dollar bill

Foodservice and hospitality operators are waiting for Congress to act and replenish the Restaurant Revitalization Fund.

Well, that replenishment may come in the form of a bill from Rep. Blaine Luetkemeyer (R-MO).

Congressman Luetkemeyer is a ranking member of the House Committee on Small Business.

Restaurant Revitalization Fund Empty

As operators know, it didn’t take long for the RRF to be depleted entirely.

The Small Business Administration opened the RRF application portal on May 3. Just 21 days later, the portal was closed to new applicants.

More than 60 percent of eligible applicants in need were not awarded grants from the $28.6 billion fund.

Clearly, that amount was nowhere near enough to meet the needs of our industry.

People have been calling for Congress to #replenishRRF ever since the RRF portal was closed on May 24.

Entrepreneurs Need Timely Replenishment for Eating Establishments Act

To be fair, Congress acted quickly to at least address the SBA’s shortcomings in handling the RRF.

Early in June, a bipartisan group introduced Restaurant Revitalization Fund Replenishment Act of 2021. Sens. Kyrsten Sinema (D-AZ) and Roger Wicker (R-MS), and Reps. Earl Blumenauer (D-PA) and Brian Fitzpatrick (R-PA) introduced the bill on June 3.

The bill seeks $60 billion to replenish the RRF and the funds would essentially come from “printing more money.”

However, Rep. Luetkemeyer introduced the Entrepreneurs Need Timely Replenishment for Eating Establishments Act on July 20.

The aptly (if unwieldy) named bill is also proposing $60 billion. However, the funds would come from a combination of sources.

ENTREE Act Funding

Both sources would pour unspent, previously allocated funds into the ENTREE Act.

Rep. Luetkemeyer’s bill proposes using state and local funds from the $1.9 trillion American Rescue Plan.

The ENTREE Act would also secure funds from Economic Injury Disaster Loans that have yet to be spent.

Currently, there’s no indication if Congress intends for these bills to somehow work together. Also, no date has been put forth regarding voting on either the Restaurant Revitalization Fund Replenishment Act or ENTREE Act.

However, we can put pressure on Congress by asking them to act quickly on these bills. So, let’s come together and contact our representatives—it can take just 30 seconds.

Image: Karolina Grabowska from Pexels

by David Klemt David Klemt No Comments

New York City Mandates Escalate

New York City Mandates Escalate

by David Klemt

Times Square empty in New York City during Covid-19 pandemic

Mandates requiring people to wear masks and maintain social distance indoors aren’t new.

However, a mandate requiring proof of vaccination status to dine and drink inside a restaurant or bar is a new development.

This week, Mayor Bill de Blasio is escalating Covid-19 mandates in New York City.

Restaurants and Gyms

To date, New York City is nearing a 70-percent full vaccination rate.

The latest pandemic mandate is likely intended to boost the city’s vaccination rate. Per reporting, the Delta variant of Covid-19 accounts for more than 70 percent of new cases in New York City.

Interestingly, the new mandate requires workers, not just customers, to prove their vaccination status. It also makes New York the first major city to implement such a requirement.

So far, the requirement pertains to indoor restaurants, bars, nightclubs, performances, and gyms.

Per Mayor de Blasio’s announcement, the vaccine mandate, referred to as “the Key to NYC Pass,” will begin with a transition period that starts August 16. Beginning September 13, full enforcement of the mandate via New York State’s Excelsior Pass app; the NYC COVID SAFE app; or paper vaccination card is expected.

Union Square

Predictably, the response to this mandate comes in three flavors: supportive, hostility, and apathetic.

So, those who support the requirement are applauding it, saying they’ll feel safer when dining out. Conversely, those who oppose the new mandate believe this is glaring government overreach and an infringement on their freedoms.

In a way, however, this mandate isn’t completely new. Some operators throughout the United States already require proof of vaccination to enter their venues.

Currently, several media outlets are focusing on Danny Meyer and his Union Square Hospitality Group.

Several days before Mayor de Blasio’s announcement, Meyer said guests who want to dine and drink in his NYC restaurants will need to prove vaccination status starting September 7.

Additionally, Meyer announced current and new employees would have to prove they’ve been vaccinated.

At the moment, it doesn’t appear Shake Shack, of which Meyer is founder and chairman, will follow suit.

Not the First

However, Meyer is not the first operator to implement and enforce strict Covid-19 protocols to protect their teams, guests and communities.

Perhaps some of the focus on Meyer is intended to draw eyes and ears, and ultimately encourage more people to get vaccinated fully. After all, celebrity chefs and operators have nationwide and global influence.

Cynically, however, it’s to not dismiss the focus on Meyer as a ploy for ratings, clicks, and engagement.

At any rate, many operators across the country require proof of vaccination to work and dine at their restaurants, bars, nightclubs, and hotels. And many were doing so before Meyer made his announcement.

One such chef-operator is Eric Rivera, who operates ADDO in Seattle. He has required proof of vaccination for employees and guests since May of this year.

In fact, Chef Rivera has been strict in his handling of Covid-19 health and safety measures since last year.

A visit to Chef Rivera’s website finds the following disclaimer, attributed to him:

“All of our experiences are for vaccinated guests only. That will remain permanent. If that’s a problem for you then there are plenty of restaurants that will reward you for doing nothing, this isn’t one of them.”

During an NPR interview, Chef Rivera explained his stance succinctly: “I don’t want to be somebody’s last meal. Whatever I’m doing food-wise and restaurant-wise isn’t worth that.”

He’s active on Twitter, where he makes his position and policies clear.

Takeaway

If you think I’m going to point out that New York City’s new mandate increases the likelihood of hostile confrontations with guests, you’re correct. I’ve said it before and I’ll say it again.

Also, if you’re guessing that I’m going to point out that guest-facing team members must receive support from leadership when policing guest behavior, you’re two for two.

However, policies like those put in place by Chef Rivera and others throughout the industry highlight something else: They’re showing the fallacy of the maxim “the customer is always right.”

Why should operators tolerate aggression toward their employees from disrespectful, angry customers—for any reason—if the employee is remaining professional and respectful?

It certainly seems that a growing number of operators are tired of capitulating to everyone who walks through their doors. The days of bowing to customers and failing to support and defend employees look to be ending.

Personally, I’m in favor of putting that outdated adage to rest. Continuing to reward guest behaviors we find objectionable—which has been the industry’s stance for decades—ultimately motivates good employees to quit. Again, this isn’t a pandemic-driven phenomenon—it has been going on for generations.

Of course, each operator must do what they think is best for their business. Just about every decision made in this industry is risky, but risk is something all operators understand inherently. Watching dollars walk out the doors never to return can be a frightening proposition. So is the prospect of losing good workers and incurring the associated costs.

The need to balance the comfort and safety of their team members and guests is paramount—an absence of either will shut a business down. Today, however, choosing guest dollars over employee dignity, safety and mental health is inexcusable and evidence of a problematic company culture.

If we’re truly in the midst of a Great Resignation, I can’t fault operators for deciding to keep their employees safe. Even if we weren’t facing a labor shortage, I’d support operators who support their workers.

Image: Paulo Silva on Unsplash

by David Klemt David Klemt No Comments

We Need to Join Forces on the RRF

We Need to Join Forces on the RRF

by David Klemt

The United States Capitol Building with blue sky and white clouds in the background

It’s time for all hospitality professionals to come together and tell Congress to replenish the Restaurant Revitalization Fund.

Honestly, it’s well beyond time for us to all join forces and send our message to Congress.

Owners, operators, managers, and team members need to contact their representatives. Additionally, they need to encourage their friends and family members to do the same.

If we’re going to stop the damage to our industry, this needs to be done.

State of the RRF

Per this download from the National Restaurant Association, 455,304 eligible restaurants applied for RRF grants.

In total, 278,304 restaurants were awarded grants.

To be fair, that’s excellent news. And the Small Business Administration should be applauded for providing lifelines to nearly 280,000 restaurants.

However, the $28.6 billion the fund was seeded with was never going to be enough. Also, the SBA’s RRF portal was open nowhere near long enough.

Toward the end of May, Republican members of Congress sent a letter to the SBA. In it, they criticize the SBA for closing the portal so quickly.

To provide context, the RRF application portal was open a mere 21 days. Further context: the SBA made it clear before the RRF portal was opened that only priority applications would be processed for the first 21 days.

Replenish the RRF

According to the NRA, 177,000 eligible RRF applicants were not awarded grants.

That number represents a total of $43.6 billion in grants that haven’t been awarded.

So, not only does the SBA need to reopen the RRF, they need to replenish it with at least $43.6 billion. The NRA is asking that Congress refill the RRF with $50 billion.

We all know that the situation is dire. Per the NRA, 1.3 million jobs have been lost. Since the first 14 months of the Covid-19 pandemic, restaurants have lost $290 billion in sales. Obviously, that number has grown. At least 90,000 restaurants have either closed their doors long-term or forever.

However, this isn’t only about our industry. As the NRA shows, every dollar spent on this industry generates $2 for farming, baking, fishing, and other industries.

Looking at the numbers makes it clear: We all need to carve out the few minutes it will take to tell our representatives what we want.

What do we want? For the RRF to be replenished. Click here to tell Congress to replenish the RRF with at least $50 billion, and make sure to spread this message on social by using #ReplishRRF.

There are millions and millions of us in this industry. Now more than ever, we need to join forces and pull in the same direction.

Image: Louis Velazquez on Unsplash

by David Klemt David Klemt No Comments

More States Issue Mask Mandates

More States Issue Mask Mandates

by David Klemt

United States of America atlas roadmap with push pins

Unsurprisingly, more states, counties and cities across the US and the country’s territories are issuing mask mandates.

In some cases, the mandates and guidance are coming down regardless of vaccination status.

Unfortunately, these actions are a response to reports of Covid-19 infection and hospitalization increases. The rise in cases and hospitalizations is due in large part to the highly transmissible Delta variant.

In fact, the Centers for Disease Control and Prevention (CDC) is once again changing course. Now, the CDC recommends that people in areas where Covid-19 infection rates are “substantial” or “high” wear masks inside indoor public places.

A map of these areas can be found on the CDC’s COVID Data Tracker page.

Local Defiance

Illustrating the divisive times in which Americans find themselves, some mandates are pitting local officials against their state counterparts.

For example, Florida. Per several outlets, Palm Beach County officials are ordering masks to be worn indoors by everyone irrespective of vaccination status. Of course, the mandate stands in direct defiance of Governor Ron DeSantis’ statewide ban of such an order.

No word yet on Gov. DeSantis suing the county over the order.

However, Missouri Attorney General Eric Schmitt is suing St. Louis County and city officials to stop their mask mandate. Currently, St. Louis requires masks be worn indoors and on public transportation.

Also, no word on whether these mandates will impact Canada’s plan to reopen the border for non-essential travel to vaccinated Americans.

Mandates: Vaccinated, Unvaccinated

Below, a list of the states and territories with mask mandates in some form (public transit, public places, state buildings, for example) in place.

The following orders pertain to everyone, vaccination or no vaccination.

  • California
  • New Hampshire
  • Hawaii
  • Illinois
  • Indiana
  • New Jersey
  • Kansas
  • Maryland
  • Massachusetts
  • New Mexico
  • Mississippi
  • Montana
  • Nevada
  • New York
  • North Carolina
  • North Dakota
  • Ohio
  • Oregon
  • Puerto Rico
  • Virginia
  • New York

As always, check with your local, county and state authorities for full details.

Mandates: Unvaccinated

Here, a list of the states and territories with requirements in place only for those who are unvaccinated.

  • Colorado
  • Connecticut
  • Delaware
  • Kentucky
  • Michigan
  • Pennsylvania
  • Rhode Island
  • Vermont
  • Washington
  • Washington, DC

Again, residents should check with state, county and local authorities for requirements and guidance.

Operator Concerns

Once more, owners and operators find themselves having to police guest behavior and compliance regarding Covid-19 mandates and recommendations.

And once again, it’s the guest-facing team members who will be thrust into any confrontations with hostile customers.

While not a silver bullet by any means, operators should communicate their intent to comply with mandates. Social media posts, emails and phone conversations should make requirements and expectations clear.

Additionally, operators and managers need to stay on top of employee concerns and comfort levels. Leadership must also make it clear, with actions and not just words, that their teams will be supported when engaging with guests.

The industry is in a very tenuous place and has been for many months. Workers are leaving and not coming back. Perhaps it’s time—respectfully and professionally—to set aside the maxim that “the customer is always right” and err on the side of employees.

Image: Morgan Lane on Unsplash

by David Klemt David Klemt No Comments

Canada to Reopen Border

Canada to Reopen Border

by David Klemt

Canadian airplane with maple leaf on tail

In a move months in the making, Canadian Prime Minister Justin Trudeau is opening the border to Americans.

Remarkably, this loosening of Canada-America border restrictions doesn’t pertain solely to essential travel.

Rather, the border will open on August 9 for non-essential travel to American travelers (and permanent residents) who can prove their vaccine status.

Great News

Obviously, this is fantastic news for Canadian hospitality operators (and other business owners, of course).

Really, it’s great news for all Canadians and Americans: people can finally visit family and friends, and the economy should see a boost.

This news comes on the heels of other positive developments for Canada, such as the country’s vaccination rate now surpassing that of America’s. There’s also the province of Ontario bringing back indoor dining.

According to media reports, Canadian officials are in communication with American President Joe Biden’s administration about opening the border the other way.

However, there is no information yet about when that will happen. When asked about Canada’s announcement regarding the border, White House press secretary Jen Paski said the following:

“Any decisions about reopening travel will be guided by our public health and medical experts. We take this incredibly seriously. We look and are guided by our own medical experts. I wouldn’t look at it through a reciprocal intention.”

Should all to plan, Canada will open the border to travelers from other countries on September 7.

The Details

Of course, Americans can’t just flash their passport and cross the border. People eager to enter to Canada need to plan ahead a few days.

This is due to the requirement that Americans—with few exceptions—need to submit travel information 72 hours before arriving at the border. For example, if an American would like to cross the border the day it reopens to them, August 9, they’ll need to begin the process no later than August 6.

So, those travelers will need to use the ArriveCAN website, iOS app, or Android app.

ArriveCAN users using the website will show Canadian border agents a printout. App users will show them their screen.

Also, travelers will need to complete a Covid-19 test within the same 72 hours and be asymptomatic upon arriving at the border.

To review eligibility requirements—including lists of eligible and ineligible vaccines—click here. Full details are here.

The Opportunity

Clearly, the plan to open the border to American travelers and Canadians who found themselves stuck in America due to the pandemic presents a terrific opportunity for business owners.

In particular, in terms of our industry, bar, restaurant and hotel operators must see this development as excellent news.

Family members and friends will be eager for long-overdue reunions. That means hotel stays and restaurant and bar visits. There are also opportunities that relate to weddings, such as rehearsal dinners.

Obviously, operators must prepare for an influx of guests. So, they need to schedule accordingly, prepare staff for possibly overwhelming amounts of traffic, and ensure precautions are in place that reassure team members their health and safety are being considered.

In terms of those who waiting for the “right time” to open their restaurant or bar, this news could be a signal that the hospitality industry is on its way toward recovery in Canada.

It’s crucial that operators and management balance guest and employee comfort levels. Doing so will aid in boosting traffic, increasing revenue, and recruiting, hiring, and employee retention efforts.

Image: John McArthur on Unsplash

by David Klemt David Klemt No Comments

Mask Mandates, Recommendations Return

Mask Mandates, Recommendations Return

by David Klemt

Downtown Los Angeles, California

Pointing to vaccination hesitation, vaccination refusal, and rises in Covid-19 cases, some cities are mandating masks indoors.

Importantly, mandates and recommendations are coming down irrespective of vaccination status.

Of course, many people are unhappy about this news. Much of the backlash includes the claim that a return to masks proves vaccines don’t work.

However, others point to variants—in particular, Delta—spreading via the unvaccinated and unmasked.

Unfortunately, continuing divisiveness means hospitality and other frontline workers are again at risk for hostile confrontations.

Los Angeles County, California

If you’re an operator in Los Angeles County, masks indoors aren’t just a recommendation. An indoor mask mandate went into effect on Saturday, July 17.

Just a month prior, embattled Governor Gavin Newsom proudly announced California’s unrestricted reopening.

Now, the more cynical among us see Gov. Newsom’s June reopening as a bid to stave off recall efforts. However, recall ballots will go out to Californians next month.

Per reporting, California’s Covid-19 infection rate is close to tripling. Los Angeles County health officials say the indoor mask mandate comes out of an overabundance of caution.

On a different note, health officials expect the state’s vaccination rate to effectively combat a spike in infection rates. The current rate isn’t expected to match or surpass those of prior peaks in the state.

As far as mandate details, it’s quite simple: Masks are required for everyone indoors, regardless of their vaccination status.

According to reports, an additional ten California counties are recommending masks indoors. No word yet on if other counties—or the state as a whole—will announce mask mandates. Nor is there an end date for LA County’s current mandate.

Southern Nevada

While not a mandate, the Southern Nevada Health District is recommending people, regardless of vaccination status, wear masks indoors.

Unsurprisingly, Las Vegas is experiencing an influx of visitors. With vaccination rates on the decline and infection rates on the rise, health officials are concerned.

More than 2.9 million visitors flocked to Las Vegas in May. Clark County, Nevada, which includes Las Vegas, has a population of over two million.

Of course, it’s important to remember that, for now, wearing masks indoors is a recommendation. However, some resorts and casinos—Westgate and the Venetian among them—now require their employees to wear face masks.

So far, neither Las Vegas, Clark County or Nevada have implemented a mandate. Of course, that could change and a mandate may be in the wings.

Orange County, Florida

Much of the news of returning mask mandates and recommendations focuses on Los Angeles and Las Vegas.

In fact, some critics are attacking Nevada Governor Steve Sisolak, accusing him of blindly following Gov. Newsom.

Interestingly, though, is that a mayor in Florida is also recommending face masks.

Mayor Jerry Demings of Orange County recommends wearing masks indoors, vaccination status notwithstanding. The phrasing of the mayor’s announcement refers to the suggestion as an “official recommendation.” However, no mandate is in place currently.

Frontline Risks

Clearly, mask mandates and even recommendations are going to anger some of the population.

Unfortunately, hospitality workers (and those in other public-facing industries) are once again at risk of confrontations. Even without mandates, some businesses that choose to require masks experience hostility.

The last thing America needs is more divisiveness, anger, and potential for confrontations.

Millions of hospitality professionals have left the industry for good. One factor leading to those losses has been concern for safety due to people angry over mask and vaccine requirements.

Obviously, operators must do whatever’s in their power to ensure the safety of their team members and guests. Leadership must not only convey their support for their employees, they must stand behind that messaging with their actions.

In cities where masks mandates and recommendations return, operators need to focus on safety as much as employee retention. Indeed, the former aids the latter, which aids recruiting and hiring.

Image: Daniel Lee on Unsplash

by David Klemt David Klemt No Comments

People are Returning to Cities

People are Returning to Cities

by David Klemt

 

Aston Martin DB5 on freeway in Phoenix, Arizona

It seems the people fleeing big cities in a “mass exodus” are throwing their moving trucks and vans into reverse.

Millennials and Gen Z are apparently leaving the suburbs and rural areas.

Analysts are looking at significant increases in rent as proof of the shift.

Climbing Rent

Anyone following along with real estate is aware that the housing market is off-the-charts hot right now.

Bidding wars for houses and condos are driving prices up by tens of thousands of dollars in many cases.

Well, those bidding wars aren’t only affecting housing sales.

In some markets, rates for rental properties are climbing by more than 40 percent. Per reports, rent is up 7.5 percent across the nation.

Now, bidding wars are taking place for rental properties. As is the case with homes and condos, there’s less inventory than demand.

Obviously, that drives up prices.

Who and Where?

Millennials and Gen Z are driving the journey back to the cities.

Many in those generations moved out of cities to live with friends or family. During the pandemic, doing so was a sound in terms of physical, mental, and financial health.

According to data from ApartmentGuide.com, the following markets are seeing year-over-year increases in one- and two-bedroom apartment rent:

  • Tucson, AZ
  • Santa Ana, CA
  • Henderson, NV
  • Las Vegas, NV

For the full report, click here.

Another market is, per several outlets, seeing an influx in younger, wealthy renters and buyers: Phoenix, AZ.

In fact, the wealthy have been investing in property throughout Phoenix, Las Vegas, Denver and Dallas.

Of course, the nation’s biggest cities are also drawing more people. For example, New York City is experiencing an influx of residents.

This is largely due to the relaxing of Covid-19 restrictions and an increase—in some cities and states—in vaccination rates.

It’s important to meet guests where they are. Those looking to expand or open new venues should give serious consideration to booming secondary markets.

Image: iStrfry , Marcus on Unsplash

by David Klemt David Klemt No Comments

Hospitality Labor Shortage not Improving

Hospitality Labor Shortage not Improving

by David Klemt

Wait station to side of busy bar

Surveys and data focusing on the restaurant and hotel employment situation paint a stark picture.

The sobering reality is that operators can’t simply point to the pandemic as the reason they’re failing to fill available positions.

Instead, we need to focus on the problems hospitality workers continue to face.

It’s not going to be easy. However, it can lead to positive change. That change can help the hospitality industry recover and thrive long into the future.

Culture is Crucial

Per several sources, millions of hospitality professionals are washing their hands of the industry.

Unfortunately, foodservice and lodging workers are citing several reasons for the exodus:

  • Lack of livable wages.
  • Inconsistent wages.
  • Stress levels not worth level of monetary compensation.
  • Lack of benefits.
  • Lack of mentoring and/or career progress.
  • Industry volatility, particularly devastating as a result of the pandemic.
  • Unhealthy lifestyle: Long shifts, late nights, and alcohol and drug abuse.
  • Cultures of harassment and discrimination.

Obviously, it’s easier to blame labor shortages on the workers. Well, being easier doesn’t make it true.

Industry and workplace culture matters. Employee turnover rates were high long before the pandemic ravaged the planet.

Rather than make excuses, operators need to look at their restaurant, bar or hotel’s culture.

Barking orders and feeling infallible isn’t leadership. Admitting failures and shortcomings—and learning from them and implementing positive changes—is how successful operators lead.

Generic Job Listings

Last week, KRG Hospitality president Doug Radkey asked a simple but poignant question on LinkedIn: Are your job listings just like everybody else’s?

He suggests knocking it off with the old standards:

  • “Are you friendly, energetic, and highly motivated?”
  • “Are you an experienced and enthusiastic [insert position]?”
  • “The ideal candidate must work well in a fast-paced environment and be a team player.”
  • List of basic job tasks.

What’s appealing about such basic, generic ads? Why would rock star talent be moved to work for operators who post these types of ads?

Instead, Doug suggests the following:

  • Hire for values, not experience. Training can address systems and standards, not personality and drive.
  • Operators should be transparent about their core values, company culture, and potential for growth.
  • Showcase the approach to inclusivity, diversity, acceptance, and flexibility. That is, if that’s authentic. If not, that’s a flashing, neon red flag that requires addressing.
  • Offer a living wage, benefits, potential for personal growth, and education.
  • Produce a video of team members sharing why they work at the company. This must be genuine and honest.

A unique approach to ads, hiring and onboarding can lead to an increase in employee retention.

Yes, it’s more comfortable to avoid looking internally for the roots of problems. It’s more comfortable to avoid blame. And it’s more comfortable to point fingers anywhere but at ourselves.

That’s not leadership. And it certainly won’t improve any operator’s situation, nor will it improve the hospitality industry and its opportunity to thrive.

Image: One Shot from Pexels

Top