News | KRG Hospitality

Fever-Tree Distillers Cola bottle and cocktail

June 23, 2021by David Klemt David Klemt No Comments

Fever-Tree Cola: Set Aside Your Soda Gun

Fever-Tree Cola: Set Aside Your Soda Gun

by David Klemt

Fever-Tree, the company elevating mixers since 2005, is now focusing on producing the finest cola.

Like the entirety of the Fever-Tree portfolio, Distillers Cola honors spirits and enhances cocktails.

And, like its mates in the lineup, the newest Fever-Tree product is made only with premium ingredients.

Commitment to Quality

Fever-Tree’s founding principle has always been producing high-quality mixers with high-quality and exotic ingredients. Co-founder Tim Warrillow and CEO of Fever-Tree North America Charles Gibb search the globe to find and partner with the best producers possible.

Much of that drive is down to the brand’s focus on honoring distillers and their spirits along with cocktail programs and bars.

In the mid-2000s, Warrillow and Gibb made a stark realization about spirits and cocktail. Distillers were crafting incredible spirits but most mixers were either standard or substandard.

Obviously, that changed with the launch of Fever-Tree, undeniable leaders and innovators in the mixer category.

Exotic Cola

For years now, today’s consumer has been drinking better. With unfettered access to information, social media and brands, they’ve been learning more about spirits and cocktails.

Intriguingly, the pandemic didn’t change that, and all signs point to a continued dedication to quality drinking.

Also, great bartenders want to tell, as Gibbs says, the best stories through the best cocktails. In doing so, they’ve taught their guests how to drink better.

Of course, part of improving one’s drinking is seeking out products produced with quality ingredients.

According to Warrillow, Fever-Tree is excited to finally take on “the biggest mixer of them all, cola,” the most-popular soft drink flavor in the world. He says people have been asking for Fever-Tree to craft their own cola for quite some time now.

It should come as no surprise to any Fever-Tree fan that Distillers Cola is produced with a commitment to craft.

The kola nuts are grown wild in the Caribbean sweet, earthy, and a natural source of caffeine. Large Tahitian limes from Mexico—the Yucatán province specifically—are bold but not overwhelming. Jamaican pimento berries (allspice) imbue Distillers Cola with flavors of cinnamon, clove, nutmeg and pepper. Madagascan vanilla—the “most prized” vanilla, per Warrillow—is intense, sweet, and lends to a creamy mouthfeel.

Distillers Cola, being a mixer and not a soft drink, is high in carbonation but reins in its sweetness.

A Mixer with Intent

Now, Fever-Tree Distillers Cola is meant to elevate bourbons and dark rums. Of course, that doesn’t mean its use is limited.

In fact, Speed Rack co-founder Lynnette Marrero suggests mixing up a Gin & Distillers Cola. Certainly, that’s a much different direction than Rum or Whiskey & Colas.

And Marrero’s Going Back to Kalimoxto, which she describes as “the spritz meets sangria,” calls for 0.5 oz. Cognac, 0.5 oz. Fernet, 3 oz. red wine (nothing too tannic: think Pinot Noir or Beaujolais), and 3 oz. Fever-Tree Cola. Simply stir and serve with a lemon wheel.

Indeed, this brand-new Fever-Tree product is practically begging for cocktail experimentation.

Reposado, añejo, and extra añejo tequilas, some mezcals, amaros, Scotch and rye whiskeys… A new mixer opens up a world of menu possibilities.

However, the best place to start is likely two of Fever-Trees intended cocktails: an elevated Rum & Cola or Whiskey & Cola. In fact, Warrillow and Gibbs say it was developed with Bacardí Cuatro in mind.

Interestingly, Allen Katz of New York Distilling Co. tasted “about 15 barrels” of their Ragtime Rye with Distillers Cola. According to Katz, the cola pairs very well with a whiskey with more fruit, less cedar and spice. In fact, he likes it so much he has committed a single barrel to a special Distillers Cola release—be on the lookout, whiskey hunters.

Also, since Governor Andrew Cuomo has lifted Covid-19 restrictions, people can visit New York Distilling’s Shanty to try a specialty cocktail made with Distiller’s Cola.

Holster Your Soda Guns

Yes, soda guns have been de rigueur for decades. They’re convenient in terms of service, particularly in a high-volume setting.

They’re also often perceived as being perpetually dirty. And, in many cases, that perception is reality.

Of course, in other cases it’s simply what guests have been taught from myriad articles and blog posts.

When I asked Gibbs how he expects to convince operators to hang up their soda guns and choose Distillers Cola instead, his answer was compelling. On the bar side, he points to the fact that bartenders want to craft and serve the best possible cocktails. To do that, they need high-quality ingredients. Along with that, many guests know Fever-Tree and seek it out.

That’s all well and good, but what about the operator side? Gibbs notes that bars across the country are ripping out their soda guns. Clearly, this is a response to health-conscious guests who perceive what comes out of the gun to be unhealthy or subpar in quality.

Those same operators, therefore, aren’t buying and storying bags of syrup. Instead, they can purchase higher-quality ingredients that deliver on consistency. Consistency and quality are key elements of the guest experience. Gibbs also says that operators can charge more for a drink made with premium ingredients like Fever-Tree.

Of course, the next step is for operators and their front-of-house teams to try Fever-Tree Distillers Cola for themselves. Not only will it elevate their bar programs, it certainly enhances to-go cocktail kit options.

Image: Fever-Tree

Hand holding United States of America passport

June 22, 2021by David Klemt David Klemt No Comments

Third-party Vaccine Passports on the Way

Third-party Vaccine Passports on the Way

by David Klemt

Operators will likely have to further wade into politics if so-called “vaccine passports” become standard.

If recent reporting is accurate, several platforms will bring vaccine passports to market.

The hospitality, lodging and travel industries have been thrust into politics since for several years now. Unfortunately, the pandemic has only made the situation more precarious.

Dangerous Waters

For many operators, navigating today’s politically-charged atmosphere is an unwelcome development.

It’s bad enough that hospitality, lodging and travel have been thrown into utter chaos for well over a year. America and Canada have lost tens of thousands of restaurants and bars. Operators able to survive have lost millions of workers.

Too many people have lost jobs, savings, homes, and any sense of stability in their lives. Mental health, as a result, is on the decline for many people.

Unfortunately, all of those awful things are being exacerbated by politics. In America in particular (if reports are accurate), politics have severely divided the country.

Covid-19 safety protocols were politicized immediately. Restaurant, bar, hotel and travel workers found themselves playing pandemic police, putting them in dangerous situations.

If vaccine passports become standard, operators will find themselves deeper in the political quagmire. Workers will likely face a greater risk for confrontations with hostile guests.

What’s a Vaccine Passport?

In short, a vaccine passport is a way for someone to prove they’ve received a Covid-19 vaccine.

Per recent reports, the Biden administration has said they have no plan to implement federal vaccine passports.

However, several states have already banned this form of proof of vaccination. These include: Alabama, Arizona, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Montana, North Dakota, South Carolina, South Dakota, Texas, Utah (but private companies can require workers to get vaccinated), and Wyoming.

So far, two states—Hawaii and New York—have implemented vaccine passports. As far as the other states, vaccine passports are not a requirement or haven’t been banned yet.

New York’s vaccine passport, Excelsior Pass, was developed by IBM. A vaccinated New York resident downloads the app, a business owner downloads the scanner app, and vaccination status can be confirmed. Similar apps are believed to be in the works.

Again, however, many states have banned these apps.

What Does this Mean for Businesses?

If vaccine passports are banned fully where an operator does business, the decision has been made for them.

However, some bans relate only to government entities—businesses can require proof of vaccination.

And if a state doesn’t prohibit vaccine passports at all? The situation can be even more challenging for operators.

Operators eager to protect their workers and guests from infection may welcome vaccine passports. Some operators may feel these passports are an invasion of privacy and reject them. Still others may view them as a potential source for harassment and discrimination.

Should an operator require vaccine passports, they should expect backlash that could directly impact business. Operators who prohibit the use the vaccine passports may be viewed as “irresponsible” and also face backlash

Once again, the pandemic has put operators in several industries in no-win situations. Operators should consider their vaccine passport plan and the messaging around it now.

Image: Levi Ventura on Unsplash

Statue of McDonald's mascot Ronald McDonald waving

June 21, 2021by David Klemt David Klemt No Comments

McDonald’s Facing Privacy Lawsuit

McDonald’s Facing Privacy Lawsuit

by David Klemt

A McDonald’s customer in Illinois, a state with some of the strictest privacy laws in America, is suing the fast food giant.

The largest fast food chain in the world is testing artificial intelligence in select drive-thrus throughout the Prairie State.

In theory, the technology will become a valuable operational element and enhance the guest journey.

However, one plaintiff in Illinois says McDonald’s is violating the state’s Biometric Information Privacy Act (BIPA).

AI-powered Drive-Thrus

Two years ago, McDonald’s made two significant technology company acquisitions.

In March of 2019, the fast food company purchased Dynamic Yield for a reported $300 million. Six months later, McDonald’s acquired Apprente.

The former acquisition brought “decision tech” to the QSR, using its digital billboards and ordering kiosks to make recommendations to guests depending on preferences, item popularity, and time of day.

The latter purchase is intended to bring automated voice ordering to McDonald’s drive-thrus through artificial intelligence.

Per CNBC, McDonald’s CEO Chris Kempczinski says AI is delivering an 85-percent order accuracy rate in its test stores. Currently, AI is taking 80 percent of the orders at ten Illinois McDonald’s locations.

Clearly, McDonald’s is investing in tech the company believes will enhance and speed up the guest drive-thru experience.

Lawsuit

Shannon Carpenter’s class-action lawsuit alleges that McDonald’s “violated BIPA because it failed to obtain proper consent prior to collecting and disseminating Plaintiff’s and the other class members’ voiceprint biometrics who interacted with its AI voice assistant at its Illinois locations.”

Carpenter filed the lawsuit after visiting a McDonald’s location last year in Lombardi, Illinois. The location is one of ten test stores.

The complaint also says, “McDonald’s AI voice assistant goes beyond real-time voiceprint analysis and recognition and also incorporates “machine-learning routines” that utilize voiceprint recognition in combination with license plate scanning technology to identify unique customers regardless of which location they visit and present them certain menu items based on their past
visits.”

In short, the plaintiff is alleging that McDonald’s is violating Illinois’ BIPA law by:

collecting biometric information (voiceprints in this case specifically) without consent;
not making the company’s data retention policies public;
failing to declare how long customer biometric data will be stored; and
not starting how the company intends to use the collected biometric data.

So far, McDonald’s has not released a statement addressing Carpenter’s lawsuit.

Customer Data

How much is one’s privacy worth? The price of a Big Mac or a Quarter Pounder combo?

Guest data and user privacy is a hot-button topic. For example, Apple made big news this year with the rollout of iOS 14.5 and its accompanying privacy features.

Carpenter’s lawsuit against McDonald’s carries implications for how businesses can collect and use guest data.

However, it also highlights an element of operating a restaurant in our tech-driven world.

It has been suggested by some business experts that the adage “cash is king” should be replaced by “data is king.” And yes, customer/guest data is incredibly valuable.

But so is reassuring guests that their data is safe with a given business. Operators, therefore, should be transparent about what guest data they’re collecting and what they intend to do with it.

And, as the McDonald’s lawsuit makes abundantly clear, there are laws governing the collection and handling of guest data. Operators should ensure that they and their partners are handling guest data legally, ethically, and responsibly.

Image: Vijaya narasimha from Pixabay

Try the free KRG Hospitality Bar & Restaurant Start-up Calculator, rectangle

June 15, 2021by David Klemt David Klemt No Comments

Introducing the KRG Start-up Calculator

Introducing the KRG Bar & Restaurant Start-up Calculator

by David Klemt

We are incredibly excited to announce the launch of a helpful new tool for new and veteran operators alike: the KRG Hospitality Bar & Restaurant Start-up Calculator.

It couldn’t be simpler to use, and it will give users an idea of how much funding their project will require.

Just enter the square footage you desire or that you know you’ll need. Then, our brand-new calculator generates more than 40 key costs for your review.

Know Your Numbers

New or veteran, single unit or multi, success in this business requires an obsessive knowledge of numbers.

Costs, in particular, are operators’ eternal opponents. People incur the greatest costs before they ever open their doors for business.

Now, that’s just common sense on one hand. Securing a location, kitting out a kitchen, building out the front of house—these are five-, six- and sometimes even seven-figure endeavors.

However, on the other hand, the massive costs that come with opening a new restaurant or bar are often the result of surprises or insufficient planning.

That’s where our calculator comes in.

Here to Help

There’s a reason that the KRG Bar & Restaurant Start-up Calculator populates more than 40 fields.

That reason is simple: preparation is key.

For instance, does your current plan budget for utility deposits, business insurances, opening F&B inventory, soft opening and launch month strategies, the complete array of construction or renovation costs?

Here’s a real-world example of our calculator at work:

Let’s say you want to open a 2,200-square-foot pub. At the minimum, you should budget at least $2,547 for business insurances and nearly $8,200 for opening F&B inventory. And you’ll likely want to set aside at least $14,806 for emergencies.

Try it out for yourself today!

Disclaimer

As with any online calculator, this free calculator is to be used as an initial reference point. Every project is unique in its own way. Property and leasing costs, equipment, and renovation costs will heavily fluctuate based on market, concept, and the status/condition of a chosen property.

Image: KRG Hospitality

June 14, 2021by David Klemt David Klemt No Comments

Guest Journey: Acquire, Engage, Retain

Guest Journey: Acquire, Engage, Retain

by David Klemt

What if you could change your operational mindset for the better in the time it takes to enjoy a cup of coffee?

SevenRooms is confident they can help you do exactly that.

The SevenRooms Coffee Break series tackles one important operational element per 20-minute webinar.

Time for a Coffee Break?

It’s no secret that we’re fans of SevenRooms here at KRG Hospitality. In addition to supporting the actual platform, we’re always eager to share their data-driven reports and insights.

CEO Joel Montaniel is the guest on episode 24 of our Bar Hacks podcast. (You can—and should—listen to the episode on Spotify, Apple Podcasts, or wherever you listen to podcasts.)

Given how much SevenRooms values collecting and sharing data that can improve operations industry-wide, it’s not a surprise that they also offer informative webinars.

So far, there are three webinars in the Coffee Break series. And, of course, each shares a way that operators can improve their business.

That’s certainly welcome as we emerge from stay-at-home orders, ease restrictions, and welcome more guests.

The current entries focus on what SevenRooms is dubbing the Restaurant Renaissance. As Doug Radkey, president of KRG Hospitality says, we can take two paths leading to the post-pandemic world.

One, we can recognize that the industry needs an overhaul, making improvements for operators, workers and guests.

Two, we can learn nothing, do nothing, and watch the industry collapse.

Restaurant Renaissance

Call it what you prefer: the Restaurant Renaissance. The New Roaring Twenties. Re-emergence. The New Normal. The Post-pandemic World.

Sure, it’s cool to have a catchy label to slap onto unique eras. It’s better to have a clear plan and path for moving forward.

To that end, SevenRooms identifies four key factors driving what they’re calling the Restaurant Renaissance:

Vaccines
Warmer weather
Pent-up consumer demand
Restrictions lifting

Alexa Detzi, director of Enterprise Success at SevenRooms, addresses these elements in the first Coffee Break webinar, “Acquire.”

We’ve said many times that operators need to prepare for an explosion in consumer demand and guest traffic. In addition, we’ve made it clear that we’ll most likely experience a severe drop-off in traffic after the initial demand wanes.

Of course, there are several ways things might play out in the New Normal. However, huge traffic in many markets followed by a drop makes the most sense.

Get Ready

The first three SevenRooms Coffee Break webinars focus on the guest journey:

I highly recommend signing up and watching each webinar, sooner rather than later. Guests are already being subjected to a cacophony of marketing overtures—you need to cut through the noise.

We Want to Help You

Like SevenRooms, KRG Hospitality is dedicated to helping operators.

If you’re seeking to open a new business, whether your first venue or an expansion, should also download our 2021 Restaurant Start-up Cost Guide & Checklist.

And for operators looking more direct and guided assistance for improving your business, we also offer KRG Mindset.

Next time you have 15 or 20 minutes to yourself, check out our Solutions and Resources pages, reach out, and let’s set up your Roadmap to Success.

Image: Garrhet Sampson on Unsplash

June 9, 2021by David Klemt David Klemt No Comments

Tip Elimination is Back on the Table

Tip Elimination is Back on the Table

by David Klemt

Several operators across the country feel that as we emerge from pandemic life, now is the time to once again try eliminating tips.

Back in 2015, Danny Meyer made a decision about tips in his restaurants that sent shockwaves through the industry. Over the course of five years, Union Square Hospitality Group (Meyer’s group) implemented a hospitality included policy to eliminate tipping.

To be sure, it wasn’t only Meyer’s restaurants that examined and put no-tipping policies in place. However, Union Square was certainly among the highest-profile operators to try it out.

Good Intentions

Per the CEO of Union Square and founder of Shake Shack, attempting to do away with tipping was about promoting equity in the hospitality.

Tipping has been linked to the propagation of sexism, racism, harassment, and exploitation.

Meyer has also said that he believes it leads to wage instability, and studies have shown it contributes to outright wage theft. And, as anyone who has worked in a restaurant knows, tipping can create a gap—and therefore tension, among other issues—between the front of house and back.

However, it has proven difficult to for no-tipping policies to take hold. This is in part because tipping is so ingrained in American society. And, of course, there’s also the issue of increasing menu prices; some people are fine with tipping but not with paying more for menu items.

Guests aren’t the only individuals who have pushed back against eliminating tips. Unsurprisingly, the very people Meyers and other operators are trying to help have rejected no-tipping policies.

Many servers and other FoH staff have made it clear that they’re not interested in working for an operator who eliminates tips.

Reinstatement of Tipping

Around eleven months ago, Meyer announced he would reverse course on his hospitality included policy. According to reporting, Meyer had done so not because of pushback against increased menu prices (about 15 to 20 percent to cover increased labor costs).

Rather, the five-year experiment never worked exactly as Meyer and Union Square had hoped. As he told Pulitzer Prize-winning journalist Jonathan Capehart during a Washington Post Live conversation back in March of this year, the policy wasn’t sustainable.

“It worked to a degree, but it was not sustainable, and the biggest reason it wasn’t sustainable was we could never quite do all the things we wanted to do for our team members like make sure that a formerly tipped employee could make as much as she made when she was tipped, make sure that we had a 401(k) plan, make sure we had a really, really generous family leave policy,” Meyer told Capehart.

And then there was the impact of the pandemic. Meyer finally pulled the plug on his no-tipping policy after New York allowed restaurants to reopen for outdoor dining a year ago. Reportedly, Meyer didn’t see how he could stand in the way of his staff making additional money.

2021 Experiment

Interestingly, several news outlets are reporting that operators around the country are at least considering doing away with tips this summer.

Again, this is at least in part due to the pandemic. Restaurateurs who have wanted to implement policies similar to Meyers’ Hospitality Included see this year as the time to try.

We still don’t know exactly what post-pandemic life will be. However, a hospitality industry reset is certainly coming—and it’s absolutely overdue.

So, it does make sense that as operators can change guest and staff perception of tipping and living wages as we all emerge from pandemic life and face a new world.

For example, the Chicago Tribune has reported that Big Jones, owned and operated by Paul Fehribach, has implemented service fees so he can cover offer servers between $18 and $25 per hour. A 20-percent fee for in-person dining or placing an order with a live person, and a 10-percent fee attached to online orders go to Big Jones payroll.

While there has been some pushback, the Chicago Tribune reports that Fehriback says Big Jones reactions are trending toward the positive.

It’s possible that tip elimination simply doesn’t work for some restaurant categories. As an example, those policies may work out in the casual dining space but not fine dining. Time will tell if it works at all.

Image: Sharon McCutcheon on Unsplash

June 8, 2021by David Klemt David Klemt No Comments

Reopening Ontario: Patios Return Friday

Reopening Ontario: Patios Return Friday

by David Klemt

There’s great news for Ontario and the province’s new reopening plan: outdoor dining is returning three days ahead of schedule.

From June 11 on—barring any governmental changes—the province of Ontario will enter Step 1, which focuses on outdoor activities.

Due to favorable indicators such as the province’s vaccination rate, Reopening Ontario will kick off early.

A Welcome Surprise

Ontario has been in under heavy restrictions for nearly two months. So, this news represents a refreshing glimpse of light at the end of a ridiculously long tunnel.

Initially, Reopening Ontario was slated to begin Step 1 on June 14.

The earlier date and announcement should help restaurant and bar operators take advantage of the coming weekend. After weeks upon weeks of living under a stay-at-home order, the decent-at-best forecast should be clear enough for Ontarians to get outside.

Step 1

Reopening Ontario is focusing on the following to progress through the three steps:

the provincewide vaccination rate; and
improvements to key public health and health care indicators.

Per the plan, the province will remain in each phase of the plan for a minimum of 21 days.

The first step allows for outdoor gatherings of ten or more people. And, for restaurants and bars, outdoor dining with a limit of four people per table.

RestoBiz is reporting that there will be an exception allowing for households with more than four people. The publication also reports that nightclubs may offer delivery, drive-through and takeout as long as they only operate as food or drink establishments.

To move to Step 2, 70 percent of adults must receive at least a single dose of Covid-19 vaccine. Additionally, 20 percent of adults need to receive a second dose (of a two-dose regiment).

Two weeks after Ontario reaches that target, the province will move forward.

Step 2

In this phase of Reopening Ontario, restaurants and bars can seat six people per table outdoors.

Per Ontario’s official government website, restaurants and bars will also be able to offer karaoke. Of course, in this phase it must take place outside.

The single-dose target vaccination rate to move on from Stage 2 is 70 to 80 percent of adults. Also, 25 percent of adults must receive two doses (of a two-dose regimen).

If those targets are hit and key public health and health care indicators are favorable, the province will progress further.

Step 3

Obviously, this the least-restrictive phase of Reopening Ontario.

In Step 3, restaurants and bars can once again return to indoor dining. There will be capacity and other restrictions in place.

Also, buffets can return.

Outdoor dining capacity will focus on social distancing: there must be two metres between tables.

Should the vaccine rate and other indicators continue to improve, it’s possible that Ontario will reopen fully as soon as 21 days after Step 3 begins. Of course, we’ll monitor the situation and see what Ontario officials say about a return to “normal.”

For now, things are looking up. To review the Reopening Ontario plan, click here.

Image: Taylor Vick on Unsplash

Prairie Dash mobile game from High West and American Prairie

June 1, 2021by David Klemt David Klemt No Comments

Play with High West, Protect the Plains

Play with High West, Protect the Plains

by David Klemt

For a limited time, you can help help protect the Great Plains of Montana just by playing a fun mobile game.

High West and American Prairie are partnering for a short time to raise $50,000.

The money from playing Prairie Dash will go toward conserving Montana’s Great Plains.

A Dash of Conservation

High West has long been supportive of conservation efforts throughout the West. For every game of Prairie Dash people play, the distillery will donate $1 to American Prairie, up to $50,000.

Proceeds from sales of High West American Prairie Bourbon from the distillery’s online store or Drizly will also go to American Prairie.

The game is simple but, of course, challenging to play. Using your thumbs, you’re trying to get a pronghorn to its actual, real-world top speed: 61 MPH.

Interesting aside you can share this month while you’re serving guests or out for a drink, the pronghorn is known as the American antelope. However, the Great Plains mammal is most closely related to giraffes.

Each time you get the pronghorn to its top speed, you’ll be presented with a different obstacle-clearing challenge.

The Leaderboard

Players are given a number of entries depending on their scores. So, the higher you score, the more entries you’ll have the opportunity to submit.

The prize, beyond helping conserve the West during Outdoors Month, is incredible.

One winner will head to High West’s distillery in Park City, Utah, for a one-of-a-kind, curated experience.

So, click this link to play Prairie Dash—the game will only be available through the end of June.

“We are committed to celebrating and conserving the beauty and nature of the West, the place we call home. With the launch of Prairie Dash, we’re excited to bring that mission to life and provide both High West loyalists and new brand fans with a chance to take part in the efforts,” says High West general manager Daniel Schear. “American Prairie is truly one of the most fantastic projects of our time, and it’s been an honor to work alongside their team to protect today’s Western habitats for future generations to come. We invite our community to join in on the movement, too, all while enjoying a little friendly competition and sipping on one of our favorites, American Prairie Bourbon.”

Good luck! See you on the leaderboard.

Image courtesy of High West

Covid-19 vaccine vial on blue background

May 31, 2021by David Klemt David Klemt No Comments

EEOC Clarifies Vaccine Stance

EEOC Clarifies Vaccine Stance

by David Klemt

American employers have the right to require Covid-19 vaccination as a condition of employment.

This is according to recent clarifications from the Equal Employment Opportunity Commission (EEOC).

Perhaps learning from yet more missteps from the Centers for Disease Control and Prevention, the EEOC is making their position clearer.

Requirements

Per the EEOC, requiring workers to get a Covid-19 vaccine doesn’t violate federal law.

However, an employer failing to provide “reasonable accommodation” in accordance with the Americans with Disabilities Act would be illegal.

According to the EEOC’s guidance update:

“Federal EEO laws do not prevent an employer from requiring all employees physically entering the workplace to be vaccinated for COVID-19, so long as employers comply with the reasonable accommodation provisions of the ADA and Title VII of the Civil Rights Act of 1964 and other EEO considerations. Other laws, not in EEOC’s jurisdiction, may place additional restrictions on employers.”

Additionally, employers who offer on-site vaccinations take on an additional responsibility. They must keep confidential any personal medical information gleaned during employee pre-vaccination screenings.

Of course, the agency’s guidance isn’t only for employers. Employees can access a fact sheet explaining pandemic-specific protections that are in place.

Incentives

The EEOC’s update also addresses the right for employers to offer employees vaccine incentives.

In short, the agency says incentives are legal as long as they’re not coercive. Of course, legal experts will argue that one person’s perception of coercion will differ from another’s.

Really, the only example the EEOC provides for what may constitute a coercive incentive is “a very large incentive” that may make an employee “feel pressured to disclose protected medical information.”

Per a survey by Arizona State University and the Rockefeller Foundation, two-thirds of employers plan to offer vaccination incentives rather than mandates. However, nearly half say they’ll implement mandates if incentives don’t work. Only one-third of survey respondents don’t plan to impose vaccination requirements on employees.

Challenges

Look, we all know America is a litigious society. Given that, it shouldn’t come as a surprise that some states have already banned vaccine requirements and passports.

Nor should it be a shock that lawsuits have been filed by employees challenging the legality of vaccine requirements. At least half of US states have introduced bills seeking to seek to limit COVID-19 vaccine mandates.

Operators have a lot to consider when it comes to vaccine requirements and incentives. For example, offering the incentive that fully vaccinated employees can go maskless at work while non-vaccinated workers must wear masks can be a form of discrimination.

Beyond legal challenges, operators must also contend with public perception and backlash. With the divisions plaguing America currently, operators have a lot to think about before requiring Covid-19 vaccines for employees. While some guests will view such requirements as a responsible move that protects employees, guests and the public, others will see it as a massive violation of personal freedoms and a form of tyranny.

Truly, this is a time when operators must seriously draw on their leadership abilities, empathy, and emotional intelligence.

Clearly, the topics of vaccine requirements and vaccine incentives necessitate careful consideration. This is an important leadership moment that hinges on an operator’s understanding of their team, their guests, and the market in which they operate.

Do not make vaccine decisions lightly.

Disclaimer

This content is for informational purposes only, and should not be used as legal or other advice. This article does not constitute legal advice, nor does any information constitute a comprehensive or complete statement of the matters discussed or the law. This information is of a general nature and does not address the circumstances of a specific individual or entity. The reader of this information alone assumes the sole responsibility of evaluating the merits and risks associated with the use of any information before making any decisions based on such information.

Image: Daniel Schludi on Unsplash

Wad of dollar bills with red rubber band

May 28, 2021by David Klemt David Klemt No Comments

State of the RRF: By the Numbers

State of the RRF: By the Numbers

by David Klemt

The “tale of the tape” of the Restaurant Revitalization Fund tells a clear story: the RRF needs an injection of tens of billions of dollars.

Clearly, $28.6 was nowhere near enough to award every eligible restaurant and bar with a grant.

In fact, the RRF would need at least another $50 billion to serve all eligible applicants.

The Numbers

First, the Small Business Administration is to be commended for setting up the RRF portal, making the application process clear, and handling applications well.

However, there’s one glaring issue with the RRF and the review and awards process. I’ll get to that in the next section.

Per the National Restaurant Association, more than 362,000 applications were submitted via the RRF portal.

In total, the applications add up to $75 billion in grant requests. Again, the RRF was funded by the government with $28.6 billion. It doesn’t take a mathematician to see that the fund was severely underfunded.

Controversy

Last week, a number of Republican members of Congress sent a letter to the SBA. The gist of their message was that the RRF’s closure was premature. Therefore, the group concluded, non-priority applicants wouldn’t receive grants or even have the opportunity to apply for grants.

In the letter, which can be reviewed here, the authors also took shots at Democrats, the Biden Administration, and undocumented immigrants.

Setting politics aside, the announcement of the RRF’s portal closure was inarguably premature. The application process was first opened on Monday, May 3. For the first 21 days, the SBA announced that while all eligible entities could apply, only priority applicants would be processed and awarded grants.

However, the RRF portal closed to applications on Monday, May 24…21 days after it first opened. The members of Congress who penned the letter to the SBA have a point: the SBA closed the RRF portal after only operating within the priority window.

Now What?

There’s no other way to put this: The RRF needs more funding.

Essentially, it needs twice the funding it had when it was first seeded. There’s zero guarantee that Congress will address this matter, but at least a handful of lawmakers are aware of the dire situation.

Two weeks ago, the NRA launched a petition urging the government to replenish the RRF. Of course, the RRF also needs to be reopened for applications, and the application process needs to be open to all eligible applicants.

There’s no promise the petition will achieve the desired result but we must do something. Click here to sign the petition and tell Congress the RRF needs to be replenished and reopened.

Image: Karolina Grabowska from Pexels