Restaurant Operations

Closeup of Ben Franklin on $100 bill
by David Klemt David Klemt No Comments

Minimum Wage Rises for Most of USA

Minimum Wage Rises for Most of USA

by David Klemt

Closeup of Ben Franklin on $100 bill

More than half of the states across America are either now seeing a boost to minimum wage or plan to increase the hourly minimum by the middle of this year.

In total, minimum wage is up in 27 states. However, the rise isn’t yet in place in a handful of states, including Nevada.

Now, the federal minimum wage still has yet to go up. That rate remains at $7.25 per hour, where it has been since 2009. For the curious, if a person works 40 hours per week and is compensated at the federal minimum rate, that’s just over $15,000 per year—before taxes.

Per Motley Fool: “If we factor in inflation, [federal minimum wage] would have had to grow to $10.20 to let people buy the same amount of goods and services today [as in 2009]. In real terms, the current minimum wage has shrunk by almost 30% since it was set.”

You’ll see below that I didn’t list the increases for tipped workers. As an operator, you should already be well aware of the minimum rate your tipped workers must be paid. In all likelihood, your suite of software is already updated to the current requirements (but check yourself to be certain).

The list will provide an idea of what you’re up against. It’s difficult to recruit rock stars if you’re unable to offer wages above minimum wage, never mind at minimum wage.

Today, for most workers, the minimum isn’t going to cut it. So, when you’re looking at what you can offer, keep in mind the minimum wage for both tipped and un-tipped workers in your area.

Also, know what other operators are paying. To remain competitive, consider what else you can offer, including your values and culture.

States Increasing Minimum Wage

Below, the states with an increase to the minimum wage. Rather than organize the list by hourly rate or rate of increase, I set it up alphabetically.

  1. Alaska: $10.85 per hour
  2. Arizona: $13.85 per hour
  3. California: $15.50 per hour
  4. Colorado: $13.65 per hour
  5. Connecticut: $15 per hour (June 1)
  6. Delaware: $11.75 per hour
  7. Florida: $11 per hour (September 30)
  8. Hawaii: $12 per hour
  9. Illinois: $13 per hour
  10. Maine: $13.80 per hour
  11. Maryland: $13.25 per hour
  12. Massachusetts: $15 per hour
  13. Michigan: $10.10 per hour (could rise further; lawsuit pending)
  14. Minnesota: $8.63 per hour (small employer); $10.59 per hour (large employer)
  15. Missouri: $12 per hour
  16. Montana: $9.95 per hour
  17. Nebraska: $10.50 per hour
  18. Nevada: $11.25 per hour (July 1)
  19. New Jersey: $14.13 per hour
  20. New Mexico: $12 per hour
  21. New York: $14.20 per hour (excluding some areas); $15 per hour for fast food workers
  22. Ohio: $10.10 per hour
  23. Rhode Island: $13 per hour
  24. South Dakota: $10.80 per hour
  25. Vermont: $13.18 per hour
  26. Virginia: $12 per hour
  27. Washington: $15.74 per hour

Among the states on the list above, four are lifting minimum wage to at least $15. Those states are Connecticut, Massachusetts, California, and Washington. Additionally, the minimum wage is $15 per hour in parts of New York.

Interestingly, employers in Nevada can reduce the minimum wage by one dollar if they pay qualifying health insurance. In such a case, the hourly minimum will be $10.25.

Only one of these states, Montana, will remain under $10.

Cities, Counties, Districts

As stated above, some parts of New York have a minimum wage higher than $14.20.

There are also cities, counties, and districts boosting the minimum wage.

  • Denver, Colorado: $17.29 per hour
  • Long Island, New York: $15 per hour
  • New York City, New York: $15 per hour
  • Washington, DC: $16.50 per hour
  • Westchester County, New York: $15 per hour

Overall, more than half the country either already increased the minimum wage or will do so later this year.

Image: Adam Nir on Unsplash

Two sportbikes racing
by krghospitality krghospitality No Comments

Dynamic Pricing or Dynamic Menus?

Dynamic Pricing or Dynamic Menus?

by Doug Radkey

Two sportbikes racing

A key phrase used throughout 2022 was “the new normal.” In 2023, a key term you will likely hear a lot is “dynamic pricing.”

What is dynamic pricing? It can get quite complex, but the global consulting company, McKinsey, defines dynamic pricing as “the (fully or partially) automated adjustment of prices.”

The term is not entirely new to hospitality. Hotels and the overall travel industry have used modules of the pricing model for years. But for restaurants and even bars, yes, it is something new.

It is also a model getting a lot of attention of late, which begs the following question: Why?

As the bar and restaurant industry recovers from the effects of the pandemic, a dynamic pricing model that optimizes revenue opportunities may seem quite attractive. After all, our industry is looking to rejuvenate its sales to pre-pandemic levels.

Essentially, a dynamic pricing model within this industry would work like this: increase prices when demand is up (peak periods), decrease prices to draw guests in when demand is down (off-peak times).

But should this be a model that disrupts the industry in 2023 and into 2024?

While I am all for a little disruption, the industry needs to tread carefully through this potential transition to dynamic pricing (or perhaps just around the phrase itself) that’s based on demand levels.

Guest Experiences

We all know (or should know) that we do not sell a product. What we sell is an experience.

If we can create a positive, memorable guest experience first and foremost, the revenue will follow.

While hotels and travel, as examples, have boasted “positive financial results” over the years through their different approaches to dynamic pricing (while still trying to focus on the end-user guest experience), independent bar and restaurant brands must be careful not to create a hostile brand perception.

Why? Because many consumers view changing prices based solely on levels of demand as being unfair.

Being unfair will certainly create a negative guest experience and/or brand perception. The hotel and airline industries have been able to navigate this perception successfully by offering alternatives. For example, different rooms and amenities or less convenient flight times at different price points. Essentially, companies in lodging and travel provide options and flexibility before customers make the choice to spend.

What about rideshare and surge pricing as another example? Many of you reading this have likely been burned by surge pricing as a consumer, which can be by definition a form of dynamic pricing.

Have you ever tried to book a rideshare during peak periods in a major market? What would normally be a $20 ride is suddenly $40 to $60 (or more) because of their dynamic pricing model.

What did I do in this situation during a recent business trip? I walked another 25 feet up to the cab staging area of the airport and got my ride for $25.

The end results? I had a negative customer experience with the rideshare company, first and foremost. Additionally, that negative experience drove me to the competition. The key here is I was given a choice.

Now let’s switch that scenario to a restaurant.

The Restaurant Scenario

You book a table at your favorite restaurant and order that incredible steak dinner you always enjoy. But instead of it being $50 like you have grown accustomed to, it is now $75 or more. How are you as a consumer going to feel about this new price just because you visited your favorite spot during a “peak period” on a Saturday night? Were you given a choice before the spend?

Of course, this can work in the opposite direction: ordering a meal during a non-peak time and getting it for a cheaper price, thereby getting a discount.

But should we be confusing our customers based on their chosen, convenient time to visit your restaurant or bar? Should you also focus on “discounting” to drive people to your business?

I have even seen recommendations for offering an increased price for peak period but using what was the previous regular price during the non-peak times, labeling the normal price a “discount.”

Should we be framing our regular priced menu options as a discount just so we can charge and make more during a peak period? Is this being fair and ethical to your loyal customers? Should we be going down this road?

With this model (and the phrase “dynamic pricing”), which is based on demand, it is very easy to see how you can quickly confuse or alienate your loyal guests. Unless the industry in its entirety migrates over to this demand-driven model, a similar scenario as outlined above can play out for you and your guests.

Without extremely strong but transparent communication systems in place (which will be a challenge in itself), it is safe to assume that they will likely visit another restaurant up the street and/or provide negative feedback because they feel your pricing model is confusing or unfair.

Dynamic Menus

The phrase that is much more simplified and will be more easily embraced by both operators and guests is “dynamic menu.”

So, what’s the difference?

While it is still by definition “the (fully or partially) automated adjustment of prices,” it is not based on demand throughout the day. Rather, pricing is based on simple supply chain and operational cost adjustments.

According to the National Restaurant Association:

  • 95 percent of restaurants have recently had significant supply delays or shortages of key food items; and
  • 75 percent of restaurants have had to change their menu because of supply chain issues.

With a more dynamic menu, you can adjust pricing to suit those changes accordingly, through the lens of real-time ingredient cost, labor costs, productivity levels, and even the availability of certain menu items.

This simply means that the incredible steak dinner a guest has always enjoyed at your place is perhaps now $53 instead of $50 because the price of beef went up the past week or month. This ensures that as an operator, you will have a minimal gap between your theoretical and actual food costs.

Again, this should work both ways, meaning if the price of beef has gone down, so too should the price.

This means that your guests are paying an accurate value for each item, based on your intended sales mix and contributions, without a loss in margin on your end or negative experience on the guest end.

This means that everything on your menu is “market price” or MP. Where have we seen that before…?

Market Price

We all know restaurant menus will commonly deduct a price and replace it with the term “market price” (often abbreviated to “MP”). This means the price of the menu item depends on the market price of the ingredients, and the price is available upon request. It has been used for years for seafood in particular—most notably lobsters and oysters—in many restaurants.

Therefore, this pricing model is not entirely new. So, why should it stop at just high-priced seafood?

The reason many operators would use the abbreviated MP was because they did not want to reprint menus every single day as the prices fluctuated greatly.

As we move towards digitally savvy restaurant operations, implementing integrated technology and menus, we can begin to find alternatives and ensure that we are actively pricing our menus accordingly based on the market (and overhead costs) to strengthen top- and bottom-line results.

Knowledge is Power

To make a dynamic menu work, whether you’re a QSR, sports bar, casual-dining or fine-dining concept, or any other category of bar or restaurant, you need to know your target customers, provide a targeted menu, and know your numbers (the data).

Curating and engineering a menu should be a simplified process. To be honest, this should have been streamlined prior to the pandemic.

Your menu should be developed based on data, consumer sentiment, regional ingredients, regional suppliers, and local talent within the confines of the overall concept. Food and beverage programs should be developed with thought, care, speed, precision, execution, and last-but-not-least: consistent profits in mind.

Keeping menus “small” (10 to 12 or even 15 items at maximum) will be the new threshold of a successful, more profitable operation. This size of menu will allow bars and kitchens to operate more efficiently; keep inventory costs both low and controlled; control training and labor costs; and provide guests with the most flavorful and exciting items that they truly want.

Be Nimble

You also want to provide menu flexibility by continually reviewing your supply chain. Maintaining a strong personal relationship with your suppliers is imperative. You must also review your costs and inventory on a daily and weekly basis to make dynamic menus work.

To keep inventory, purchase orders, and potential waste to a minimum, it will be crucial that you to ensure your menu is small but innovative. The only way to accomplish this is through effective data management.

However, the new challenge for many independent brands is making data timely, relevant, digestible, and actionable for operators and their leadership teams. The ability to collect, interpret, and effectively react to key datapoints is going to be crucial for anyone who wants to implement a dynamic menu, and for moving forward in general.

At the end of the day, profiting from a dynamic menu is all about making decisions based on accurate cost and productivity data. Of course, there’s only one way to obtain data: embrace technology and create strategic clarity around it.

The Tech Stack

The key to successfully implementing a dynamic menu is integrating a stack of technology that provides real-time data and trend reports.

From point-of-sale software and reports to accounting software, inventory and recipe management software, and invoice management software or a suite that includes all of the above that’s integrated and working together, you can obtain real-time data to adjust your pricing based on real-time ingredient and productivity costs on a daily or weekly basis.

You want seamless movement of data from front- to back-of-house that will position you to make decisions and have a more complete picture of inventory stock levels, costs, and ordering needs, plus itemized sales, contribution margins, and productivity levels.

In Summary

While we must find ways to be innovative, potentially price-gouging our guests during peak periods and discounting during slow periods is not the way for this industry to recuperate and build loyal customers.

Building a strong brand through the creation of memorable experiences and by building connection with your community along with strategic planning, effective marketing, the elements of culture, and efficient operations, you can build sustainable revenue and profit channels.

By following a more dynamic menu approach within your operations, you can still maintain transparency with your guests with less challenging communication methods, remain a fair and well-respected brand within your community, and improve your margins by three to five percent or more with the right people and systems in place.

That sounds like a pretty good deal to me. The question here remains: Are you Team Dynamic Pricing or Team Dynamic Menus?

Image: Joe Neric on Unsplash

Closeup of dark beer with foamy head
by David Klemt David Klemt No Comments

Celebrating the Baltic Porter

Celebrating the Baltic Porter

by David Klemt

Closeup of dark beer with foamy head

In just over two weeks we celebrate a rich, dark beer style with sweet malty characteristics that traces its history back to the 18th century.

Once a favorite among the working class in London, Baltic Porter is seeing a resurgence. This is, unsurprisingly, driven largely by interest from the craft beer world.

Tracing its own history to 2016, Baltic Porter Day celebrates its namesake beer. The beer holiday takes place every third Saturday in January. So, this year we celebrate Baltic Porter Day on January 21.

That should give operators enough time to prepare. One of the best ways to drive interest in this holiday—and beer style in general—is to look into local breweries. Craft breweries, brewpubs, and microbreweries around the world release Baltic Porters to celebrate this holiday.

Locality and hyper-locality are, as we know, important to many guests. That makes it a smart move to develop relationships with local brewers, distillers, farmers, vintners, etc.

Operators who don’t yet have those relationships need to commit to changing that this year. And, hey, Baltic Porter Day is an excellent reason to begin that change and approach local brewers.

What’s Baltic Porter?

In the 1700s, high-hop Pale Ale wore the beer crown in England. However, some small breweries made a run at the throne. They wanted to see a dark beer on top.

So, according to some beer historians, brewers looking to take on Pale Ale began with sweet brown beer. The beer was higher-hopped, dark, and higher alcohol with cocoa, chocolate, and coffee notes.

Porter was born, named for the working class people who embraced it: dock and street workers.

Eventually, the production and reach of Porter of small brewers was overtaken by larger breweries. This is largely due to maturation time, which translates to higher costs; it can take six to twelve months for a Porter to mature.

Over time, Porter found its way to Northern Europe, including Estonia, Latvia, and Lithuania. Those three countries are known as the Baltic states.

Brewers in those countries tried their hand at Porter production. Importantly, Baltic state brewers put their own spins on Porter. Notably, they replaced ale yeast with lager yeast.

Additional changes include replacing British hops with Baltic hops, and blending pale and dark malts. Baltic brewers roasted the malts in a drum kiln. The invention, created by Daniel Wheeler, allowed brewers to roast malts without burning them.

The Baltic Porter was born.

Characteristics of Baltic Porter

Curious operators and teams can find the official Beer Judge Certification Program guidelines for the this style here.

As a quick summary, the following are keys to Baltic Porter:

  • Appearance: Opaque dark brown to dark reddish-copper. Not black in appearance.
  • Aroma: Rich, malty sweetness with some dark malt characteristics. No hops on the aroma.
  • Flavor: A roasted but not burnt flavor. Rich, malty sweetness. Caramel, nuttiness, toffee, molasses. Dried fruit and alcohol.
  • Mouthfeel: Medium to medium-high carbonation keeps the beer from feeling “heavy” on the tongue. Smooth but full-bodied.
  • Finish: Licorice or roast coffee.

Since this beer tends to range in ABV from 6.5 to 9.5 percent, it’s wise to serve this beer with food. Think hearty fare, like barbecue, chili, and burgers, and Gouda as a cheese pairing.

Of course, local brewers should be able to offer up their own ideas for food pairings. After all, they know their beer better than anyone else.

As some sources note, people often serve Baltic Porter in a snifter. However, a pint glass is perfectly acceptable for this beer style.

Image: Peter Fischer from Pixabay

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

5 Books to Read this Month: January 2023

5 Books to Read this Month: January 2023

by David Klemt

Flipping through an open book

This month’s engaging and informative book selections will help you hone your culinary, beverage, and operational skills to dial in your business.

To review the book recommendations from December 2022, click here.

Let’s jump in!

The Vegan Chinese Kitchen

Today, people have certain ideas that flash before them when they hear or read “plant based.” For many, it’s a phrase that indicates a food item is an impossible meat alternative that attempts to go beyond it’s animal counterpart, hint hint.

However, plant-based also means…plants. Just plants, that’s all. The Vegan Chinese Kitchen, Chef Hannah Che’s plant-based cookbook, dives into traditional and modern Chinese vegan cuisine. Remember, plant-based doesn’t only mean “meat alternative made with plants.” Buy here.

Tea: Wine’s Sober Sibling

Have you ever considered drinking tea as an alternative to consuming wine? I know I hadn’t until I came across this book.

There are more than 70 recipes in Tea: Wine’s Sober Sibling, several of which are Dry January-friendly. Along with best practices for restaurant operators, there are also pairings, like tea and cheese, and tea and chocolate. Grab this book and consider using tea in different ways at your restaurant or bar.

Conversations Behind the Kitchen Door: 50 American Chefs Chart Today’s Food Culture

Where is the culinary world headed in 2023? Chef Emmanuel Laroche and his colleagues have some thoughts.

From Amazon: “Emmanuel’s podcast Flavors Unknown, as well as his worldwide search for new foods and flavors, are at the core of Conversations Behind the Kitchen Door. Scores of chefs offer essential insights and entertaining observations about the food scene today—information that will be of interest to new and aspiring chefs, as well as foodies and home cooks who follow trends in restaurants and recipes. Readers will walk away from Conversations Behind the Kitchen Door with a deeper understanding ofthe minds and creative practices of famous chefs, as well as a map to begin to create sensational dishes of their own.”

Pick up Conversations Behind the Kitchen Door from Amazon.

Build: An Unorthodox Guide to Making Things Worth Making

I’m willing to bet that you’ve heard of the following products: the iPod, the iPhone, and Nest thermostat. And I’m certain you realize an entire team of people was the behind the creation of those devices. Tony Fadell, the person who ran those teams is the author of Build.

You don’t have to be in tech to benefit from this book. Really, Build is about leadership, decision making, mentorship, bouncing back from failure, and more. Essentially, this helpful and informative book is “a mentor in a box.” One of the key takeaways of this book should motivate you to read it: “You don’t have to reinvent how you lead and manage.”

Your Table Is Ready: Tales of a New York City Maître D

Author Michael Cecchi-Azzolina was the maître d’ at several of New York’s hottest restaurants for decades. Scoring reservations for some of these destinations was viewed as more important than landing a table at one of NYC’s top-tier nightclubs.

Cecchi-Azzolina tells stories of a (mostly) bygone era while also providing his take on the restaurant industry. For some, this book will be amusing and relatable. Others will find this representative of an era best left behind as we move the industry forward. Order Your Table is Ready today.

Image: Mikołaj on Unsplash

"Think about things differently" neon sign
by David Klemt David Klemt No Comments

Program for Unique Holidays: January 2023

Program for Unique Holidays: January 2023

by David Klemt

"Think about things differently" neon sign

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

Several holidays are set against every date on the calendar, and January 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 December 2022 holidays list, click here.

January 5: National Whipped Cream Day

There’s a ton you can do with whipped cream when it comes to your F&B. From garnishing shots to piling it on desserts, whipped cream is just a fun time.

This is also the perfect holiday for party spots to offer Whipshots or feature whipped cream-flavored vodkas.

January 6: National Technology Day

There are several ways to approach programming for this day. To focus on one, this would be a great day to highlight your cool bar tech. One item that comes to mind is the Ripple Maker.

For those unfamiliar, this is a device that prints images on top of frothy or foamy drinks via food-safe media. Ripple’s next-gen device, the Ripple Maker Pro II, is available now.

January 7: Old Rock Day

The purpose of this holiday is to celebrate the planet. Earth is an “old rock,” after all. Two programming ideas that come to mind are: celebrating classic rock; showcasing spirits that have been on the market for decades (or even centuries).

January 10: National Cut Your Energy Costs Day

By now we all know that sustainability and responsible business practices matter to many guests. National Cut Your Energy Costs Day is a great time highlight your own eco-friendly policies, potentially raising money for “green” causes.

January 11: Learn Your Name in Morse Code Day

If you want to have some fun with your guests, print an LTO menu with F&B item names in Morse code. Include descriptions that aren’t in Morse code that give guests an idea of what to expect from each item.

There are several Morse code translators online, like this one.

January 17: National Bootlegger’s Day

This is the holiday to celebrate brands or cocktails that:

  • survived prohibition;
  • were created during prohibition; or
  • produce or feature moonshine.

January 20: Penguin Awareness Day

Are you aware of penguins? You’re not? That’s odd.

Anyway, there’s an almost startling amount of cocktails with “penguin” in their name. So, why not create an LTO menu of “penguin” cocktails? Bonus points if some proceeds can go to a penguin-focused charity.

January 21: Squirrel Appreciation Day

Do you appreciate squirrels? Well, you should—it’s believed they plant three billion oak trees every year.

Now, I bet you can guess what I’m going to suggest: celebrating the classic Pink Squirrel. And why not? It has been around since the 1940s and is an icon, after all. If you really want to go all out, slap some foods into a Jell-O mould and get crazy.

January 29: National Puzzle Day

As with other holidays, there are a few ways to celebrate National Puzzle Day. You can provide guests some small puzzles to keep them busy (and keep them at your restaurant or bar for longer). Alternatively, get your hands on a very challenging puzzle, set it up on a card table, and encourage guests to work on it together. Or even ask guests to bring in their own puzzles.

January 31: National Backward Day

Programming for this holiday can be as simple as printing your menu backwards. Of course, you can also get much more immersive—it’s all in the details and recognizing opportunities to help guests walk away with memories.

Image: Ivan Bertolazzi on Pexels

Social media likes graffiti
by David Klemt David Klemt No Comments

Top Ten 2022 KRG Hospitality Articles

Top Ten 2022 KRG Hospitality Articles

by David Klemt

Social media likes graffiti

As we head into a promising new year of opportunities and growth, we want to take a look back at our most popular articles of 2022.

Before we jump in, we also want to thank you for your support. We greatly appreciate our readers, newsletter subscribers, clients, and partners.

Let’s all do what it takes to crush 2023!

US Senate Fails to Replenish the RRF

After conflicting reports and speculation, the US Senate has finally voted this week on replenishing the Restaurant Revitalization Fund.

Last week, multiple sources reported that the Senate would hold their RRF vote this week. Just days ago, several outlets sounded the alarm, reporting that the vote would be pushed to next week. The reason, these sources provided, was the Senate’s scramble to repackage and hold another vote on aid for Ukraine.

Senator Rand Paul (R-KY) blocked the bill that would provide $40 billion in defense and humanitarian aid. Unsurprisingly, it was also Sen. Paul who objected to $43 billion in emergency funding last August, killing that RRF replenishment effort.

Today, on the Senate floor, Sen. Paul repeatedly derided the replenishment of the RRF as a “bailout.” Additionally, he asked, “Where’s the emergency?”

So, one can infer that the impending closure of an estimated 50 percent of RRF applicants—88,500—isn’t an emergency to the Kentucky senator. Simple math shows that if each of those applicants has just ten employees, that’s a loss of 885,000 jobs.

Read this article in its entirety by clicking here.

SBA Releases 46% of Held RRF Funds

As it turns out, reports that the Government Accountability Office found $180 million in unspent Restaurant Revitalization Fund money were inaccurate. So, the $83 million the SBA disbursed before Thanksgiving was the entirety of the funds the GAO found.

This week, both the Small Business Administration and National Restaurant Association made statements about the release of $83 million in RRF funds.

“This week, the U.S. Small Business Administration (SBA) began distribution of returned funding in the Restaurant Revitalization Fund (RRF) program, following the program’s closure in June 2021. In doing so, the SBA worked with the advice of the Department of Justice on a plan to distribute the remaining funds, approximately $83 million,” reads a press release from the SBA.

“In addition to other SBA assistance programs, the RRF has helped more than 100,000 restaurants and other food and beverage business owners survive the pandemic,” continues the administration’s statement.

Click here to read this article in its entirety.

Hotels, Guest Data and Guest Expectations: A Chat with SevenRooms

People are eager to get back out there and hotels, of course, play a crucial role in their travel plans. However, we’re not engaging with the same guests we were pre-pandemic.

No, today’s guest demands more from the hotels and resorts they select. And a key to delivering on guest demands is collecting guest data.

But while operators know they’re supposed to be collecting guest data, there’s some uncertainty about what to actually do with it. Enter: SevenRooms.

More accurately, meet Austen Asadorian of SevenRooms. Not only can he address meeting guest demands through tech, he can address how to use guest data responsibly and effectively.

To read this article, please follow this link.

8 Glendalough Distillery Cocktail Recipes

Offer your guests something different for your St. Patrick’s Day promotion with Glendalough Distillery cocktail recipes.

Without a doubt, you should have plenty of the expected Irish whiskeys on hand. However, Glendalough Distillery Double Barrel, Pot Still, Wild Gin, and Rose Gin are extraordinary Irish whiskeys and gins.

Each spirit the distillery crafts honors the art of Irish distillation, a craft that stretches back centuries. What’s more, each whiskey Glendalough crafts is single malt—there are no light-bodied blends in their lineup.

To learn more, check out episode 71 of the Bar Hacks podcast with Glendalough Distillery co-founder and national brand ambassador Donal O’Gallachoir.

Sláinte!

Click here for these creative drink recipes.

7 Coffee Liqueurs You Need to Know

Whether you and your bar team are making Espresso Martinis, riffing on classics or creating something new, consider these coffee liqueurs.

National Espresso Martini Day takes place on Tuesday, March 15. Leading up to this bar holiday, the cocktail is experiencing yet another resurgence.

In fact, this cocktail more than any other seems to maintain an enviable rate of “surging back” in popularity. Maybe it’s time to just admit that it’s a modern classic people love to hate…but still order and enjoy.

To learn which brands you need to know, click here.

Delivery and Takeout Food Trends for 2021: Canada

Patrons, analysts and experts have spoken: delivery and takeout will remain standards in the new era of hospitality.

Analysts and experts have spoken with data, and consumers have spoken with their dollars.

But there’s another consequential voice that matters when it comes to delivery: that of the operator.

There’s no denying that the operator is shoved aside in the third-party delivery relationship. At the very least, that’s the overwhelming perception. Once an operator signs on with such a service, their guest data becomes the delivery company’s data.

Whatever company owns the data owns the guest, their journey and engagement, and the targeted marketing efforts. That means a restaurant or bar’s guests receive offers and promotions for their competitors.

In short, third-party delivery platforms disrupt the guest journey.

However, there are some data the third-party delivery services do share. As we saw midway through 2020, for example, Uber Eats and Grubhub released the top orders and other useful information in publicly available reports. Some of the services also release end-of-year or year-in-review reports, as SkipTheDishes did for Canada.

To read this article, follow this link.

Container Kitchens: The New Footprint

In some cases, a smaller restaurant footprint is attractive to operators. This is due in part to guest behavior we’ve seen since 2020. That is, guests haven’t been able to or felt comfortable with dining indoors at restaurants.

Then, of course, there’s the cost factor. A smaller footprint, generally speaking, equals lower initial investment and rent. An operator with a new concept can use a container before investing in a brick-and-mortar location.

Other benefits relate to market testing; expansion; virtual and ghost kitchen operations; and delivery and pickup.

Operators looking to expand or add retail, along with QSRs, are showing interest in Make My Ghost Kitchen’s containers. One explanation for the interest is simple: containers are highly mobile.

An operator sends their kitted out container to a potential market. They open up shop and test the viability of their concept. If the reaction is less than desirable, they move the container to another market.

For example, one client set up a container complete with a delivery window. In just six hours they sold 3,600 burgers.

Learn more—click here.

How to Address Temporary Restaurant and Bar Closures: 5 Social Media Examples

There are a few reasons a F&B business will have to close due to the Covid-19 outbreak: official mandate, reduced indoor and outdoor dining capacities, and voluntary temporary closures.

Mandated closures are, on the surface, straightforward. Government officials decree that certain types of businesses must close their doors by a specific date and time, and owners are expected to comply.

Closures induced by capacity restrictions are less straightforward. It has become woefully apparent that most lawmakers don’t understand (or don’t care) that at a certain threshold, reducing indoor and outdoor dining capacities is as good as forcing a restaurant or bar to close; the value proposition of remaining open simply isn’t there.

A voluntary temporary closure can come about because of capacity limitations, but they can also be the result of other factors. A significant workforce reduction, lack of traffic, rising costs of goods, or an internal Covid infection.

The stark reality is that the likelihood today’s operators are going to have to craft social media posts and emails announcing temporary (and possibly extended) closures is anything but slim.

Click here for these social media messaging examples.

Developing a Bar Concept w/ Sensory Experiences

Owning a bar is a dream for most that must be met with the right research, planning, and mind-set.

One’s market will, and must, define the concept. To be successful, you must be open to building a venue the market both wants and needs.

Concept development is giving your ‘idea’, both soul and character. A bar’s concept is the lifeline of its brand and longevity in the market. It makes your venue stand apart from the competition, and it’s ultimately your bar’s unique selling proposition.

Have you ever walked into a bar and been confused about its identity? The interior doesn’t match the beverage offerings, the social media experience doesn’t reflect the actual experience, and even the music doesn’t seem to match the vibe of the bar.

This is what happens when there isn’t a clear and detailed concept development plan in place, and it is a sure fire way to be just average at best.

Read this article here.

Creating Restaurant Brand Ambassadors

Ask nearly every restaurant owner what their number one, long-term marketing ‘program’ or tactic is, and most will say effective word of mouth. This can be great until it starts to fizzle down or another new restaurant opens up down the street resulting in the competition becoming the new talk of the town.

Instead of shooting into the wind and hoping ‘word of mouth’ with deliver desirable long-term results, restaurateurs need to embrace a program that is an extension of word-of-mouth marketing, by developing what is called ‘brand ambassadors.’

A brand ambassador will positively represent and promote a restaurant’s venue. They will embrace the company values, vision, mission, and culture. They will strengthen a restaurant’s identity within the community by providing additional visibility and overall awareness.

Yes, word of mouth happens organically over time because of excellent food, drink, service, and experiences, don’t get me wrong. But what if there was a way to double-down and create multiple micro-communities and multiple levels of ambassadors to promote a restaurant’s brand?

That’s where an ambassador program comes in.

To read on, click here.

Image: George Pagan III on Unsplash

Margarita with dehydrated citrus garnish
by David Klemt David Klemt No Comments

Top 2022 Grubhub & Uber Eats Drinks

Top 2022 Grubhub and Uber Eats Drink Orders

by David Klemt

Margarita with dehydrated citrus garnish

The year-end Grubhub 2022 Delivered and 2022 Uber Eats Cravings reports identify this year’s delivery order drink trends.

Last week, we dove into Grubhub and Uber Eats’ top food orders. If you haven’t already, read that article here.

This week we’re going to check out what drinks were most popular in 2022 for both platforms.

Top Grubhub Coffee Orders

People are still working from home, full- or part-time. So, it makes sense that consumers are placing coffee orders for breakfast, snack, and lunch dayparts.

  1. Iced Coffee
  2. Hot Coffee
  3. Iced Caramel Coffee
  4. Iced French Vanilla Coffee
  5. Frozen Coffee

Top Grubhub Milk Alternatives

Of course, with coffee orders come milk orders. And as you’re probably well aware, milk alternatives are only growing more popular with consumers.

So, below are the top milk alternatives among 2022 Grubhub users.

  1. Oat Milk
  2. Almond Milk
  3. Coconut Milk
  4. Soy Milk
  5. Cashew Milk

As a possible explanation for the dominance of oat milk, sustainability could be a driver. According to available data, producing a pound of oats is much more sustainable than producing one pound of almonds.

It’s believed that oats are more favorable when it comes to basically every measure of sustainability.

Top Grubhub Alcohol Orders

I can’t say that I’m shocked to find the Margarita is the top cocktail order. It is, after all, the long-reigning Queen of Cocktails.

  1. Beer
  2. Margarita
  3. Hot Sake
  4. Piña Colada
  5. White Wine (Sauvignon Blanc)

I’ll admit that I’m slightly surprised that a red wine isn’t among the top five.

Top Uber Eats Alcohol Orders

Interestingly—perhaps a bit frustratingly—Uber Eats took a different approach to identifying their top drinks.

Rather than dedicating space solely to alcohol orders, their top drinks are part of combinations. As in, the “most frequently paired food + alcohol” combos.

So, here’s their list in its entirety:

  1. Steak + Margaritas
  2. Pizza + White Claw
  3. Burritos + Margaritas
  4. Chicken + Sangria
  5. Wings + Beer

However, there’s another drink in the Uber Eats “most unexpected food combos” section:

  • Ham + Cream Cheese
  • Fruit Roll Up + Hot Cheetos
  • Pickles + Whipped Cream
  • Popcorn + Pickle Juice
  • Dark Chocolate + Tomato Salad
  • Pizza + Applesauce
  • Sushi + Ranch
  • Peanut Butter + Pizza
  • Cheese + Martinis
  • Watermelon + Mustard

Therefore, we can reasonably extrapolate that the top 2022 Uber Eats alcohol orders are the Margarita, White Claw, Sangria, beer, and Martini.

Takeaway

If we compare reports and look for similarities, we see that two drinks are at the top: beer and Margaritas.

Both make sense. Beer, in can, bottle, and growler forms, travels very well. That makes beer ideal for delivery where it’s legal.

And as far as Margaritas go, there’s a wide array of canned options available. Again, canned cocktails travel well for delivery. Of course, restaurants and bars can also obtain the equipment to prebatch and package their signature Margaritas.

Ideally, your POS system can run reports to identify which drink orders are most popular for your delivery customers. Also ideal: operators should take as much control over their business as they can, implementing direct delivery as long as it’s feasible.

So, look into direct delivery, run your reports, and take more control while reducing costs.

Image: Edward Howell on Unsplash

Boxer being knocked back by punch
by David Klemt David Klemt No Comments

FAST Act Dealt Knockdown Blow

FAST Act Dealt Knockdown Blow

by David Klemt

Boxer being knocked back by punch

A bill we think is one to watch, California’s Fast Food Accountability and Standards Recovery Act, may be on the ropes already.

Assembly Bill 257, known as the FAST Act, is “on hold” until 2024. So, while the Save Local Restaurants coalition and voters have yet to kill the bill, it may be out on its feet.

We reported two months ago that fast food chains were moving quickly to kill the FAST Act. It appears that the initial attack on AB-257 was successful.

That is, the chains and coalition got what they want: the ballot initiative vote has knocked down AB-257.

For those unfamiliar with the Save Local Restaurants Coalition, the following organizations are members: The National Restaurant Association (NRA), US Chamber of Commerce (USCC), and International Franchise Association (IFA). Further, fast-casual and QSR chain coalition members—including Starbucks, In N Out, McDonald’s, and Chipotle—threw nearly $13 million at the ballot measure that halted FAST.

What’s FAST?

To read AB-257, the FAST Act, in its entirety, click here.

In summary, FAST:

FAST does the following:

  • establishes the Fast Food Council, ten members appointed by the Governor, the Speaker of the Assembly, and the Senate Rules Committee. The council will operate until January 1, 2029;
  • defines “the characteristics of a fast food restaurant“;
  • gives the Fast Food Council the authority to set “minimum fast food restaurant employment standards, including standards on wages, working conditions, and training“;
  • provides the council the power to “issue, amend, and repeal any other rules and regulations, as necessary”; and
  • allows the formation of a Local Fast Food Council by a county, or a city that has a population of more than 200,000.

Voters effectively stopped California from implementing FAST until November 2024 at the earliest. (That is, if the California Secretary of State verifies that the referendum effort did indeed secure the required amount of signatures.)

Opposition

A statement from Save Local Restaurants reads, in part:

The quick-service restaurants targeted by the law – which include coffee shops, juice bars, pizzerias, delis, and salad shops – already operate on small, single-digit profit margins. These include more than 10,000 small businesses, including thousands of women- and minority-owned businesses.

If these restaurants are forced to absorb the costs, the result will be bad for workers and local communities. To survive, many restaurant owners will have no choice but to reduce worker hours or introduce automation. Some may choose to leave their communities entirely or go out of business.

As is often the case with overreaching California policies, this is likely only the beginning.

Additionally, the National Restaurant Association, a member of the coalition, has said the following:

The impacts of the FAST Act won’t be limited to quick service restaurants in California. The law allows the new regulating council to set a higher minimum wage for quick service restaurants. Independent restaurants will, however, be forced to increase their pay to match, so they can remain competitive when recruiting and retaining workforce.

Takeaway

We believe this bill is one to watch because similar efforts could spring up in other states. Also, just because the bill is on hold until 2024 in California doesn’t mean other states aren’t working on similar legislation right now.

Now, there are obviously two sides to consider. Opponents, as we see above, say FAST will raise prices, eliminate jobs, and hurt families.

Proponents believe FAST will protect the health, safety, and welfare of fast-food workers. Additionally, the Fast Food Council could increase the minimum wage for fast food workers above California’s $15.50 minimum (effective January 1, 2023).

We’ll keep an eye on FAST over the next couple of years. Perhaps the coalition can work with California on a bill that protects fast food workers and doesn’t hurt operators and the communities they serve.

At any rate, FAST is down but certainly not yet out.

Image: Johann Walter Bantz on Unsplash

Single-use plastic straws and utensils
by David Klemt David Klemt No Comments

Canada’s Single-use Plastics Ban

How Canada’s Single-use Plastics Ban Affects Operators

by David Klemt

Single-use plastic straws and utensils

With a few exceptions, Canada’s ban on the manufacture, importation, and sale of single-use plastics is now officially in effect.

However, that doesn’t mean restaurant and bar operators need to worry about current inventories just yet. While the Single-use Plastics Prohibition Regulations are in effect, operators have a year to deplete their stocks.

SUPPR is a crucial element of Canada’s overall plan to combat pollution and reach a goal of zero plastic waste by 2030. The single-use plastics ban was announced in June of this year.

“We promised Canadians we would deliver a ban on single-use plastics. Today, that’s exactly what we’ve done,” said Minister of Environment and Climate Change Steven Guilbeault the day SUPPR was announced. “By the end of the year, you won’t be able to manufacture or import these harmful plastics. After that, businesses will begin offering the sustainable solutions Canadians want, whether that’s paper straws or reusable bags. With these new regulations, we’re taking a historic step forward in reducing plastic pollution, and keeping our communities and the places we love clean.

Now, six months later, it’s the law of the land.

What’s Banned?

Essentially, Canadian operators must evaluate everything they use for delivery and takeout or pickup. If any items are single-use plastic, they must be gone by December 2023.

Per SUPPR, the manufacture, importation, and sale of the following is prohibited:

  • Checkout bags designed to carry purchased goods from a business and typically given to a customer at the retail point of sale.
  • Cutlery includes:
    • knives
    • forks
    • spoons
    • sporks
    • chopsticks
  • Foodservice ware designed for serving or transporting food or beverage that is ready to be consumed, and that:
    • contains
      • expanded polystyrene foam
      • extruded polystyrene foam
      • polyvinyl chloride
      • carbon black
      • an oxo-degradable plastic
    • are limited to the following items
      • clamshell containers
      • lidded containers
      • boxes
      • cups
      • plates
      • bowls
  • Ring carriers are flexible and designed to surround beverage containers in order to carry them together.
  • Stir sticks designed to stir or mix beverages, or to prevent a beverage from spilling from the lid of its container.
  • Straws include:
    • straight drinking straws, and
    • flexible straws, which have a corrugated section that allows the straw to bend, packaged with beverage containers (juice boxes and pouches)

For accuracy, the above comes from the Government of Canada website directly, unedited.

What does this mean for Operators?

Again, operators in Canada don’t need to toss their current stock of the above items.

However, Restaurants Canada does recommend that operators contact suppliers and customers if they import, export, or sell prohibited items currently.

The single most important thing for operators to do now is research single-use plastic alternatives. Items need testing as changes will affect F&B items and the guest experience.

Of course, it’s possible an operator’s current supplier already offers alternatives to single-use plastics. That could prove convenient but costs, supply chain reliability, and impact on menu items need careful consideration.

Sustainability and responsible practices are no longer just conversation topics within the industry. As of this week, in Canada, they’re the only way forward.

Image: Volodymyr Hryshchenko on Unsplash

Burgers, French fries and milkshakes
by David Klemt David Klemt No Comments

Canada’s Top 2022 DoorDash Orders

Canada’s Top 2022 DoorDash Orders

by David Klemt

Burgers, French fries and milkshakes

Operators curious about the most popular delivery items in 2022 will be happy to learn that DoorDash’s year-end report is ready for viewing.

Those who want to compare it to predictions from several sources earlier this year can click here. The DoorDash Canada report can also be compared to consumer trends in Canada revealed back in October.

Before we jump in, I’m not detailing the DoorDash report in its entirety here. To review the entire report, please click here.

Instead, I’ll be sharing the top takeaways in terms of top menu items; top cuisines; and top items by province.

Speaking of provinces, a word to New Brunswick, Newfoundland and Labrador, Northwest Territories, Nova Scotia, Nunavut, Prince Edward Island, and the Yukon. Please don’t break out the pitchforks and come for me for not including you in this article. DoorDash’s report only covers data from six provinces—I didn’t leave you out intentionally.

Top DoorDash Cuisines in Canada

  1. American
  2. Mexican
  3. Japanese
  4. Thai
  5. Mediterranean
  6. Indian
  7. Chinese
  8. Italian
  9. Korean
  10. Filipino

Top DoorDash Items in Canada

  1. Burgers & Fries
  2. Fried Chicken
  3. Poutine
  4. Sushi Rolls
  5. Chicken Wings
  6. Burritos
  7. Chicken Rice Bowl
  8. Shawarma Wraps
  9. Curry
  10. Pad Thai

I think there’s one key takeaway that stands out in regards to this list. Notably, it appears that while chicken isn’t number one, it’s undeniably popular amongst Canadian DoorDash users.

In fact, according to DoorDash data, chicken reigns supreme in British Columbia. When you reach the province-specific sections below, you’ll see how powerful the cravings in BC are for chicken.

Top DoorDash Late-night Items

Again, chicken rules the DoorDash roost in this category.

  1. Chicken Nuggets
  2. Fries
  3. Poutine
  4. Chicken Wings
  5. Chicken Burgers
  6. Apple Pie
  7. Cheeseburger
  8. Spinach & Cheese Dip
  9. Chocolate Fudge Sundae
  10. Crispy Chicken

Top DoorDash Items: British Columbia

  1. Burrito Bowl
  2. Szechuan Chicken Lettuce Wraps
  3. Butter Chicken
  4. California Roll
  5. Crispy Chicken Sandwich
  6. Tofu Bowl
  7. Chocolate Chip Cookies

Top DoorDash Items: Ontario

  1. Cheeseburger
  2. Coffee
  3. Burrito Bowls
  4. Chicken Shawarma
  5. Crispy Chicken
  6. Bagels
  7. Pad Thai
  8. Beef Patty
  9. Pizza
  10. Onion Rings

Top DoorDash Items:Alberta

  1. Spinach and Cheese Dip
  2. Chicken Cheddar Sandwich
  3. Chilli Chicken
  4. Kale Salad
  5. Margarita Pizza
  6. Hot Apple Turnover

Top DoorDash Items: Québec

  1. Poutine
  2. Cappuccino
  3. Pad Thai
  4. Steak and Cheese
  5. Croissant
  6. Dumplings
  7. Chips
  8. Tacos

Top DoorDash Items: Saskatchewan

Interestingly, a beverage item holds the top spot in Saskatchewan.

  1. Bubble Tea
  2. Pepperoni Pizza
  3. Pork Bun
  4. Crispy Pork
  5. Garlic Bread
  6. Pasta

Top DoorDash Items: Manitoba

  1. Fries
  2. Butter Chicken
  3. Red Velvet Cake
  4. Poke Bowl
  5. Shawarma Wrap

As I stated in Wednesday’s article detailing Grubhub and Uber Eats’ reports for the US, we believe operators should take as much control over their restaurants and bars as possible. At KRG Hospitality, that means implementing direct delivery if it makes sense: ease of use, delivery capabilities, favorable costs, etc.

It’s also helpful to know what consumers in your area are craving and ordering. Such information can provide a useful baseline for many concepts’ menu development.

Image: John Fornander on Unsplash

Chef pointing burrito halves toward camera
by David Klemt David Klemt No Comments

Grubhub and Uber Reveal Top 2022 Items

Grubhub and Uber Reveal Top 2022 Items

by David Klemt

Chef pointing burrito halves toward camera

Grubhub’s 2022 Delivered and Uber Eats’ 2022 Uber Eats Cravings reports are live and there’s one surprise that’s immediately evident.

The top food item lists for both platforms make one thing clear right away: the chicken sandwich is no longer sitting on its throne.

Instead, as far as the data for these two delivery powerhouses show, there’s a new food item king. More compellingly, this menu item holds the throne on both platforms.

Now, I’m not suggesting the fried chicken sandwich is in the dungeon. In fact, the popular sandwich causing “wars” in the QSR space is still holdings it own. Indeed, the sandwich is still in the top five overall at Uber Eats.

Shockingly, it’s not in the top five overall at Grubhub. However, the fried chicken sandwich is among the top five Grubhub lunch and late-night orders.

So, which menu item wears the crown for 2022 in the kingdoms of Grubhub and Uber Eats? The burrito.

That’s awesome news for most operators. Much like the humble but mighty chicken sandwich, concepts can put their signature spin on a burrito. In fact, most concepts can put multiple signature spins on the new king of delivery items. One way to approach this would be to create a permanent signature and then seasonal LTOs.

Top 10 Grubhub Items

In 2022, the fried chicken sandwich only clinches the number seven spot at Grubhub.

Just like Uber Eats, cheeseburgers and pizza outperform the chicken sandwich.

  1. Burrito (bowl or regular)
  2. Cheeseburger
  3. Cheese Pizza
  4. Pad Thai
  5. Chicken Quesadilla
  6. California Roll
  7. Fried Chicken Sandwich
  8. Caesar Salad
  9. Chicken Tikka Masala
  10. Boneless Wings

Top 5 Grubhub Breakfast Items

  1. Sausage, Egg + Cheese Sandwich
  2. Donuts
  3. Sausage Burrito
  4. Bagel with Cream Cheese
  5. Muffins

Top 5 Grubhub Lunch Items

  1. Burrito
  2. Cheeseburger
  3. Fried Chicken Sandwich
  4. Cheese Pizza
  5. Chicken Quesadilla

Top 5 Grubhub Late-night Items

  1. Chicken Quesadilla
  2. Fried Chicken Sandwich
  3. Cheeseburger
  4. Mozzarella Sticks
  5. Cheese Pizza

As we see, the chicken quesadilla does some heavy lifting at Grubhub. The item holds the number five spot overall, at lunch, and during the late-night daypart.

Top 10 Uber Eats Combos

For their 2022 report, Uber Eats takes a different approach than Grubhub. Instead of just listing individual items, the platform identifies their top combos.

  1. Burrito + Cheese
  2. French Fries + Salt
  3. Cheeseburger + Diced Onions
  4. Chicken Sandwich + Fries
  5. Breakfast Sandwich + American Cheese
  6. Soup + Bread
  7. Pancakes + Sausage
  8. Pizza + Mozzarella
  9. Salad + Balsamic Vinaigrette
  10. Quesadilla + Sour Cream

Most “Unexpected” Uber Eats Combos

  • Ham + Cream Cheese
  • Fruit Roll Up + Hot Cheetos
  • Pickles + Whipped Cream
  • Popcorn + Pickle Juice
  • Dark Chocolate + Tomato Salad
  • Pizza + Applesauce
  • Sushi + Ranch
  • Peanut Butter + Pizza
  • Cheese + Martinis
  • Watermelon + Mustard

To read both reports in their entirety, click here for Grubhub and here for Uber Eats. There are more insights, including beverages and beverage combos.

Of course, longtime readers and our clients know where we stand on third-party delivery platforms. Ideally, operators should take as much control over their business as they can. For us, that means implementing direct delivery as long as it’s feasible and incurs lower costs than third-party.

We view delivery platform reports as menu development resources. It’s always wise to keep up to date on consumer and food trends, after all.

Image: Kamila Bairam on Pexels

2023 KRG Hospitality Milestone Checklist
by David Klemt David Klemt No Comments

The Major Milestones You Must Reach

The Major Milestones You Must Reach to Open a Restaurant

by David Klemt

2023 KRG Hospitality Milestone Checklist

Opening a restaurant is no small task, with projects requiring the completion of 500 unique tasks before welcoming guests.

KRG Hospitality president Doug Radkey identified these tasks several years ago. The commitment to systematically accomplish these tasks is a cornerstone of our approach to all projects.

Our feasibility studies, branding, concept and brand development, and programming are unique and customized to every client. However, the journey from idea to grand opening is a path dotted by hundreds of waypoints.

There’s a reason we call our project plans Roadmaps to Success: we’re here to help guide our clients to and through each waypoint on the map.

Below you’ll find just 50—just a tenth—of the unique tasks we at KRG believe you must complete before your grand opening. You’ll find more than 80 tasks in the brand-new 2023 KRG Hospitality Restaurant Start-up Cost Report + Checklist.

Both the list below and the checklist included in our free Restaurant Start-up Cost Report download will give you an idea of what we work on with each of our clients. These tasks should also highlight the enormity that is taking your concept from idea to brick and mortar.

To download your free copy of our 2023 Restaurant Start-up Cost Report + Checklist, click here.

Planning & Admin Tasks

  • Complete your project feasibility study.
  • Develop your concept and brand plan.
  • Develop and test a layout/drawing.
  • Complete a strategic business plan.
  • Complete a marketing and tech stack plan.
  • Finalize your start-up budget.
  • Analyze and secure necessary funding.

The Support Team Tasks

You’ll need to secure:

  • Business insurance broker
  • Business and liquor license attorney
  • Restaurant and bar consultant
  • Project manager
  • General contractor and trades
  • Mentor or coach

Site Development Tasks

When it comes to these tasks, you may have an idea of roughly what to expect.

For example, one necessary task is…securing your property of choice. Another task to cross off or set a check next to? Signing the lease.

But there are other tasks you may not anticipate or think of when planning to open a restaurant:

  • Submit drawings to municipality.
  • Start and manage project renovations.
  • Set a SMART opening date proposal.
  • Set up and submit deposits for utilities.
  • Develop your service sequence (flow).

You’ll also need to source the following:

  • Exhaust hood supplier
  • Millworker and specialty supplier
  • Interior and exterior signage company
  • Grease trap cleaning
  • Used oil pickup/recycling
  • Exhaust hood cleaning

Operations Development Tasks

  • Complete a kitchen workflow plan.
  • Complete service sequence analysis.
  • Source take-out container suppliers.
  • Secure security, sound, and video, plus applicable licenses.
  • Secure point-of-sale and tech Systems.
  • Develop recipe books for kitchen and bar.
  • Develop package of standard operating procedures.

Brand Development Tasks

Developing your brand involves much more than choosing a logo and colors.

Consider every design and service element a branding opportunity. Your brand development tasks will include developing:

  • your core statements;
  • graphic design/branding kit;
  • website and social media accounts;
  • a promo video strategy;
  • a “coming/opening soon” plan; and
  • your media strategy for the launch.

You’ll also need to:

  • complete the F&B concept stage;
  • complete the F&B testing stage;
  • source menu cover supplier (for dine-in version)
  • complete a photo shoot; and
  • plan for and execute a soft opening.

Team Development Tasks

  • Develop your staff hiring strategy.
  • Plan for and complete HR and compliance forms.
  • Develop onboarding manuals.
  • Source staff uniform suppliers.
  • Promote job fair or interview dates.
  • Hold a staff orientation night.
  • Execute a staff-building exercise shift.
  • Create a brand ambassador program.

Image: KRG Hospitality

United States Capitol Building exterior and Peace Memorial
by David Klemt David Klemt No Comments

Restaurant Tax Credit Support Grows

Bipartisan Effort for Restaurant Revitalization Tax Credit Grows

by David Klemt

United States Capitol Building exterior and Peace Memorial

One week after the Restaurant Revitalization Tax Credit Act introduction in the Senate, a companion bill is in play.

This time, the bill is a bipartisan effort. Representative Earl Blumenauer (D-OR) is the sponsor of HR 9574. Joining him are Reps. Brian Fitzpatrick (R-PA) and Dean Phillips (D-MN).

HR 9574 is nearly identical to the Senate version, S.5219. In fact, the only real difference relates to number of employees.

Restaurant Revitalization Tax Credit Act Summary

Just like the bill in Senate currently, the House of Representative bill proposes a $25,000 payroll offset for restaurants.

In terms of eligibility, HR 9574 is identical to S.5219: Restaurant Revitalization Fund applicants. More precisely, eligible applicants that applied for but didn’t receive an RRF grant.

Further eligibility requirements are as follows:

  • Restaurants with operating losses of at least 30 percent in 2020 and 2021 in comparison to 2019; or
  • restaurants with losses of at least 50 percent in either 2020 or 2021 in comparison to 2019.

If you’re familiar with the Senate’s version, which predates the House version by a week, you may be wondering about the difference between the two bills.

Well, it comes down to number of employees. For the Senate bill, restaurants with ten employees or fewer could be eligible for the maximum payroll tax credit. That credit, again, is up to $25,000 for 2023. For every employee over ten, the refund cap drops by $2,500.

However, the House bill approaches number of employees a bit differently. Restaurants with ten or fewer employees would receive the full $25,000 payroll tax offset. For restaurants with between 11 and 20 employees, the offset would be “partially refundable.”

A Lifeline

It’s likely that neither HR 9574 nor S.5219 will receive a vote until January 2023, at the earliest.

Of course, time is of the essence for our industry. This isn’t lost on Rep. Blumenauer—an author of the RESTAURANTS ACT of 2021—or his co-sponsors.

“Restaurants and their employees were hit harder than any other industry during the COVID-19 pandemic,” says Rep. Blumenauer. “The federal government has provided some help to these institutions through the Restaurant Revitalization Fund, legislation based on my RESTAURANTS Act. But the program has fallen short, with only one-third of all applicants receiving funding.”

To add to Rep. Blumenauer’s mention successful applicants, it’s estimated that more than 175,000 applicants haven’t received a grant.

Hope, as the saying goes, isn’t a strategy. But hopefully at least one of these bills is floored, voted on, and passed in January. Too many deserving restaurants have had to endure an agonizing series of RRF roller coasters.

To continue introducing bills—hope—just to watch them fail to go anywhere is becoming cruel at this point.

Image: Emily Studer on Unsplash

2023 KRG Hospitality Start-up Costs Guide
by krghospitality krghospitality No Comments

KRG Unveils 2023 Start-Up Guide

KRG Hospitality Unveils 2023 Restaurant Start-Up Cost Report + Checklist

2023 KRG Hospitality Start-up Costs Guide

KRG HOSPITALITY RELEASES FIFTH ANNUAL RESTAURANT START-UP COST REPORT + CHECKLIST

Toronto-based hospitality industry consulting firm with offices in key markets throughout Canada and the United States of America unveils their latest restaurant cost report, milestone checklist, and interactive hospitality calculator.

December 15, 2023 (TORONTO)—Today, KRG Hospitality unveils their 2023 Restaurant Start-up Cost Report + Checklist. The Toronto-based consulting firm specializes in startup restaurant and bar projects along with boutique hotels, experiential concepts, and entertainment venues. KRG also has offices in key markets throughout the United States of America.

For the past five years KRG has researched, reviewed, and published the annual start-up cost guide, one of the industry’s leading resources dedicated to restaurant project costing.

And each year this informative and transparent guide is used as a trusted budgeting tool by developers, lenders, contractors, consultants, and aspiring restaurateurs. The guide is founded upon KRG Hospitality’s proprietary database of previous project costs, which includes project data from restaurants, bars, and cafes developed over the past 24 months.

Further, this annual KRG Hospitality also includes a start-up checklist that identifies an array of crucial milestones: KRG president Doug Radkey has identified 500 unique tasks that must be completed for a successful restaurant opening.

This year’s checklist reveals a number of these crucial tasks. Updated for 2023, the guide also includes the interactive KRG Hospitality Calculator.

The costs to start a restaurant have been on a steady rise over the past 5 years. Major drivers are increases in inflation, interest, labor, construction, equipment. Of course, there are also the unique materials required to deliver a scalable, sustainable, memorable, profitable, and consistent on-premise, off-premise, or hybrid-style concept.

Drawing upon this comprehensive guide, an industry-leading expert has analyzed the information and provided a succinct and user-friendly summary of the findings for each major start-up category. This isn’t simply a couple of pages identifying a few costs. Rather, the fifth annual guide is a deep dive that provides real insight into what to expect in 2023.

The Checklist

As stated, there are 500 unique tasks an operator needs to complete over the course of developing and opening the doors to their concept.

To make it simple to navigate, the 2023 checklist is organized into sections: Planning & Admin, the Support Team, Site Development, Operations Development, Brand Development, and Team Development.

From starting off with the targeted, customized, and in-depth feasibility to planning and executing the soft opening, KRG identifies dozens of key milestones in this year’s guide.

Download your copy of the 2023 KRG Hospitality Restaurant Start-up Cost Report + Checklist today! Click here.

About KRG Hospitality

KRG Hospitality is a storied and respected agency with proven success over the past decade, delivering exceptional and award-winning concepts throughout a variety of markets found within Canada, the United States, and abroad since 2009. Specializing in startups, KRG is known for originality and innovation, rejecting cookie-cutter approaches to client projects. The agency provides clients with a clear framework tailored to their specific projects, helping to realize their vision for a scalable, sustainable, profitable, memorable, and consistent business. Learn more at KRGHospitality.com. Connect with KRG Hospitality and the Bar Hacks podcast on social: KRG Twitter, Bar Hacks Twitter, KRG Media Twitter, KRG LinkedIn.

Disclaimer

While using this guide helps develop a rough preliminary financial and strategic milestone plan, it is strongly recommended that you seek professional expert advice to provide you with a more precise, project specific estimate as each concept and market will be slightly different. KRG Hospitality Inc. is not responsible for any project that is not currently under contract within the company.

Image: KRG Hospitality
Tower Bridge in Sacramento, California
by David Klemt David Klemt No Comments

Top 10 US Metro Areas by Inflow, Q3 2022

US Metro Areas with Greatest Outflow and Inflow, Q3 2022

by David Klemt

Tower Bridge in Sacramento, California

Real estate brokerage Redfin identifies the top ten American cities in terms of inflow and outflow, according to Q3 data.

Interestingly, a quarter of people appear to be searching for homes in cities different from where they currently live. Also compelling: one state, per the brokerage’s data ending in the month of October, is a clear favorite.

Obviously, this is important data for operators to have. When it comes to labor and guest pool changes, inflow and outflow information can be quite useful.

Top Inflow Cities: August to October 2022

Review the list below to see the metro areas experiencing the greatest inflow.

  1. Orlando, Florida
  2. Dallas, Texas
  3. North Port, Florida
  4. Cape Coral, Florida
  5. Phoenix, Arizona
  6. Tampa, Florida
  7. San Diego, California
  8. Miami, Florida
  9. Las Vegas, Nevada
  10. Sacramento, California

Did you spot the big trend? The state of Florida represents 50 percent of the list. Per Redfin‘s interpretation of the data, home buyers want leave expensive coastal cities behind.

Interesting to us in particular, two cities—Las Vegas and Orlando—are key KRG Hospitality markets. Also interesting is that Nevada and Florida are on the back half of Forbes’ best cities for starting a business in 2023.

However, we’ve seen strong hospitality industry recovery in Las Vegas this year. In fact, even the entertainment industry in Las Vegas is exploding. Additionally, we continue to gain clients in Orlando.

Top Outlow Cities: August to October 2022

Below are the metro areas seeing the greatest outflow.

  1. Philadelphia, Pennsylvania
  2. Seattle, Washington
  3. Denver, Colorado
  4. Detroit, Michigan
  5. Chicago, Illinois
  6. Boston, Massachusetts
  7. Washington, DC
  8. New York, New York
  9. Los Angeles, California
  10. San Francisco, California

If we compare Redfin’s Q2 data to the list above, it’s mostly the same. In fact, the top four outflow cities are identical. Spots five through nine are simply a reshuffling of Q2 and Q3 data.

However, Minneapolis, number ten in Q2, is replaced by Philadelphia in Q3. According to Redfin data, those Philly residents searching for homes elsewhere are showing interest in Salisbury, Maryland.

Consider how expensive it can be to move to and live in LA and San Francisco. It makes sense that California is the only state with two cities on the list above, doesn’t it?

Per Redfin, San Francisco residents are searching Sacramento and Seattle. Those in LA are looking at San Diego and Las Vegas.

Takeaway

It’s important to know where people are moving to and what cities they’re leaving behind. And it’s interesting to get a data-driven view of which states may be best for starting a business.

However, it’s far more useful to know how feasible a given ZIP code may be for a specific concept. So, while these types of lists are helpful, they’re not as practical as a targeted feasibility study.

Moreover, the dust doesn’t appear to have settled when it comes to migratory patterns of home buyers. It’s quite possible that Redfin’s 2023 inflow and outflow data will change once again in Q1 and Q2.

Image: Stephen Leonardi on Unsplash

US Capitol Building and cloudy sky
by David Klemt David Klemt No Comments

Is Restaurant Revitalization Back?

Restaurant Revitalization Back on the Table?

by David Klemt

US Capitol Building and cloudy sky

After watching the Restaurant Revitalization Fund die a slow, painful death earlier this year, three senators are trying to help the industry again.

Three Democratic senators seem to think that the RRF battle isn’t over. Senators Ben Cardin (D-MD), Sherrod Brown (D-OH), and Patty Murray (D-WA) are trying once again to help RRF applicants. As a refresher, Sen. Cardin is among the original RRF legislation authors.

Last Thursday, the senators introduced the Restaurant Revitalization Tax Credit Act. Now, before we get into the details, it appears this bill is a stop-gap of sorts. A statement from Sen. Murray suggests as much.

Per a statement from Sen. Muray, the “Restaurant Revitalization Fund left too many behind. I believe we need to replenish the Fund and will keep pressing to do so. Until that happens, bills like the Restaurant Revitalization Tax Credit Act will help keep restaurants afloat.”

It’s safe to say a significant number of operators prefer replenishment of the RRF to a tax credit. However, this could represent a step in the right direction.

The Restaurant Revitalization Tax Credit Act

For those with an interest in dissecting the bill, the text in its entirety is here.

In summary, here’s what Sens. Cardin, Brown, and Murray want to see become law: a payroll offset of $25,000. Of course, it’s not that simple—there are requirements and nuances.

First, the only eligible restaurants are RRF applicants who didn’t receive a grant. Second, the restaurant must prove:

  • operating losses of at least 30 percent in 2020 and 2021 in comparison to 2019; or
  • losses of at least 50 percent in either 2020 or 2021 in comparison to 2019.

Additionally, applicants must have been operating at least as far back as March 14, 2020. There’s also a payroll tax requirement: the applicant restaurant must have paid the taxes in at least two quarters in 2021. But wait—it doesn’t end there.

Restaurants with ten or fewer employees could offset a maximum of $25,000 in payroll taxes for the entirety of 2023. However, for every employee over ten, the refund cap drops by $2,500.

So, this bill appears to target very small operations for assistance. Assistance, we can only hope, that’s meant to help until the Senate and House replenish the RRF.

After all, Sen. Murray did say this bill—”bills like,” to be precise—is meant to “help keep restaurants afloat.”

It’s difficult to view this effort through anything but a skeptical lens given what happened earlier this year. And hope, as the saying goes, isn’t a strategy. But I suppose this bill represents a glimmer of hope that the estimated 175,000-plus RRF applicants who never received a grant may still get the help they deserve.

Image: J. Amill Santiago on Unsplash

Frustrated man sitting on couch
by David Klemt David Klemt No Comments

Leadership Facepalm, Part Three

Leadership Facepalm, Part Three

by David Klemt

Frustrated man sitting on couch

We almost got to next year without another viral leadership facepalm moment but then an Olive Garden manager sent a memo.

In case you’re unaware of the now-infamous Olive Garden memo, here’s a recap:

  • Zero tolerance for calling off.
  • Sick team members must come in and prove they’re ill.
  • If someone’s dog dies, they must bring the dead animal in to prove its death.
  • Family emergencies are not private and must come with an explanation.

The manager who authored the memo also takes time to boast about their perfect attendance record.

For the curious, the first entry in our leadership facepalms is here. Part two is here.

The Letter

Below you’ll find the letter, addressed to “ALL Team Members.” To read it in its entirety, click here.

“Our call offs are occurring at a staggering rate. From now on, if you call off, you might as well go out and look for another job. We are no longer tolerating ANY excuse for calling off. If you’re sick, you need to come prove it to us. If your dog died, you need to bring him in and prove it to us.”

I highly doubt that’s Olive Garden or Darden policy.

“If its a ‘family emergency’ and you can’t say, too bad. Go work somewhere else. If you only want morning shifts, too bad go work at a bank. If anyone from here on out calls out more than ONCE in the next 30 days you will not have a job.”

It doesn’t get any better when the manager brings up their own track record:

“Do you know in my 11.5 years at Darden how many days I called off? Zero. I came in sick. I got in a wreck literally on my to work one time, airbags went off and my car was totaled, but you know what, I made it to work, ON TIME! There are no more excuses.”

Interestingly, the manager implies they’re speaking for all the leaders:

“Us, collectively as a management team have had enough.”

A Breaking Point

First, I’m not pretending a staggering amount of operators, leadership teams, and team members aren’t at their breaking points. The labor shortage and staffing struggles are a real crisis in our industry (and others, of course).

Second, I’m not suggesting that operators and their teams aren’t justified in their frustration and anger.

If we’re to accept just this year’s reporting alone, it appears many people are comfortable being rude to service workers. It’s a disturbing trend, and it’s motivating people to leave public-facing roles. As they’re leaving, many are swearing off the hospitality industry entirely.

Third, I think the memo above highlights our need to address mental health in this industry. Sure, it’s easy to write this manager off as a jerk and terrible leader. But what if we look at this through the lens of stress?

The memo could easily be the manifestation of a breaking point. It’s also possible the entire management team was behind this email.

Damage Done

Let’s look at this situation solely as an example of poor judgment and leadership. Imagine the damage it could do to any restaurant or bar, chain or independent.

What do you think a memo like this does to the ability to recruit? To retain? How does such an email do anything but exacerbate labor problems?

Darden, Olive Garden’s parent, went into crisis management mode when this memo went viral. It appeared on Reddit, was picked up by news outlets and other websites, and exploded.

Ultimately, Darden terminated the manager to whom the memo is attributed: “We strive to provide a caring and respectful work environment for our team members. This message is not aligned with our company’s values. We can confirm we have parted ways with this manager.”

The Olive Garden location in Kansas where this situation took place may recover. They’re a large chain, people tend to have short memories for news, and regulars will likely stay loyal.

But what if this occurred at an independent restaurant? The damage could be irreparable.

Work Culture

Now, it should be obvious that from a simply operational standpoint, this situation highlights an unhealthy work environment and culture. That should go without saying.

So, instead I want to say something else.

Operators need to check in with their team members. Leaders, front of house, back of house—everyone. Stress levels are reaching breaking points and every one of your team members needs to know they matter, they’re safe, and they’re supported.

Check in. Survey your team. Be empathetic. And if you’re an operator, you need a support system of your own.

Being a leader doesn’t mean being infallible. It’s not poor leadership or weakness to admit you need help.

Image: Nik Shuliahin 💛💙 on Unsplash

Philadelphia skyline at sunset
by David Klemt David Klemt No Comments

Starting a Business? Consider These States

Want to Open a Business in 2023? Consider These States

by David Klemt

Philadelphia skyline at sunset

If you’re considering opening a restaurant, bar, nightclub, eatertainment venue, or hotel in 2023, you should consider these states.

As it turns out, according to Forbes, one state is the home to a major KRG Hospitality market: Philadelphia.

Per Forbes Advisor, Pennsylvania is among the top five states for starting a new business next year. In fact, the Keystone State ranks number four.

To make their list, Forbes analyzed all 50 states through the lens of five categories:

  • Business costs
  • Business climate
  • Economy
  • Financial accessibility
  • Workforce

Within those categories, Forbes examined 18 metrics. The result, as already stated, is that just three states rank ahead of Pennsylvania for this Forbes list.

Top 25 States to Start a Business in 2023

Below you’ll find how the top half of the list shakes out. Indiana, Colorado, and North Dakota claim the top positions. A low cost of living and “a business-friendly climate” put Indiana in the number-one spot.

One interesting reason that Pennsylvania ranks so highly comes down to funding for entrepreneurs. Per Forbes, “total small business loan funding in Pennsylvania is double that of the national average.”

  1. Washington
  2. West Virginia
  3. Rhode Island
  4. Idaho
  5. Utah
  6. Wisconsin
  7. South Carolina
  8. Virginia
  9. Hawaii
  10. Mississippi
  11. Missouri
  12. New Hampshire
  13. Massachusetts
  14. California
  15. Connecticut
  16. Delaware
  17. Ohio
  18. Illinois
  19. Montana
  20. North Carolina
  21. South Dakota
  22. Pennsylvania
  23. North Dakota
  24. Colorado
  25. Indiana

However, the list above is interesting for another reason: the recent addition of consultant Kim Richardson to the KRG Hospitality team. Not only is Kim representing our Philadelphia, Pennsylvania, office, she’s our rep for the Northeastern region of the United States.

That means she’s serving Connecticut, Delaware, Maine, Massachusetts, New Hampshire, Maryland, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont. Or, put another way, Kim is representing KRG in six states on the list above. (Pennsylvania is in bold above, while the other Northeastern states on the list she’s representing are in italics).

Proceed with Caution

Now, a word of reason and caution. Just because someone tells you that a particular state or city is the best place for your business doesn’t mean success will follow automatically.

It really doesn’t matter how great the idea for your concept happens to be—long-term success in this industry takes hard work. And that work starts with the planning phase.

So, no, you can’t just throw a dart at the Northeastern states or a map of one of the states on this list and open your restaurant, bar, or hotel there. Site selection involves more than contacting a commercial real estate agent, viewing a few locations, and signing a lease.

There’s a long list of tasks that you must complete in the planning stage before you ever open your doors. An in-depth feasibility study, a KRG Hospitality specialty, identifies the best location for a specific concept. In actuality, the feasibility study includes several smaller tasks that must be completed.

Again, this is simply to determine the best place for a particular concept. There are many other tasks you must complete, each of which KRG is here to help you accomplish.

So, while this list is interesting, there’s much more for your consideration.

The Bottom 10

Since I know you’re curious, below you’ll find the ten states that represent the tail end of the Forbes list:

  1. New York
  2. New Mexico
  3. Vermont
  4. Michigan
  5. Oregon
  6. Florida
  7. Nevada
  8. Kentucky
  9. Oklahoma
  10. Kansas

Now, another word of caution. These states rounding out the list of 50 doesn’t mean they’re “the worst” for starting a business.

In fact, we’ve had great success in Florida, as one example. So, take this list with a grain of salt: there’s much more to consider for a hospitality concept to give it the best odds of success in any market.

Image: Dan Mall on Unsplash

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

5 Books to Read this Month: December 2022

5 Books to Read this Month: December 2022

by David Klemt

Flipping through an open book

This month’s engaging and informative book selections will help you hone your culinary, cocktail, and operational skills to dial in your business.

To review November’s book recommendations, click here.

Let’s jump in!

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

Understanding recipe ratios will help any bar professional produce balanced, delicious, and memorable cocktails. In fact, getting a grasp on ingredient ratios is a fundamental bartender skill, and it’s crucial to the guest experience.

Author Michael Ruhlman organizes The Book of Cocktail Ratios into five cocktail families. And interestingly, Ruhlman makes a bold claim: many popular cocktails are actually the same cocktail—adjusting the ratios makes them seem different. Grab this book here.

Chef’s PSA: How Not to be the Biggest Idiot in the Kitchen

Look, most of us have been in at least one situation or new workplace where we may have felt like the biggest idiot there. It’s not a pleasant feeling, but at least it’s a feeling we can get over.

This collection of “culinary truisms” aims to set new chefs up for their first steps into a new kitchen: “This book is filled with short little lessons or PSA’s that every cook needs to know to get along successfully in the kitchen. The great thing about this book is that it is a guide for you early in your career and later when you are developing others.” Pick up Chef’s PSA here.

Jacques Pépin Art Of The Chicken

Chef Jacques Pépin loves chicken. In fact, Chef Pépin loves chickens so much that he doesn’t just honor them in the kitchen, they’re the subject of his paintings as well.

Not only will you find beautiful illustrations in Jacques Pépin Art Of The Chicken, you’ll learn about Chef Pépin’s journey through the culinary world. And, of course, there are recipes to learn. Purchase via Amazon here.

The Death of Demographics: Valuegraphic Marketing for a Values-Driven World

Regular listeners of the Bar Hacks podcast will recognize author and speaker David Allison. He has, after all, been a guest twice, appearing on episode 46 and episode 67.

The Valuegraphics Project founder’s latest book, The Death of Demographics, is available in hardcover, paperback, and Kindle formats. From Amazon: “By focusing on deep values rather than surface habits or traits, valuegraphics uncover what drives and unites us. Based on decades of behavioral science research, adding valuegraphics to your insights can improve your marketing effectiveness by a factor of eight or more.” Purchase this book here.

The Business Scaling Blueprint: Building a Foundation to Grow Your Brand

Author and business mentor Tony DiSilvestro has started more than 30 businesses over the course of 30 years. As a mentor, he shares the lessons he’s learned with CEOs and entrepreneurs, and now he’s sharing his experience in book form. The Business Scaling Blueprint is, as the name implies, a practical path toward growing brands.

As a business owner, operators need to grow and scale their restaurants, bars, and hotels. Even if there’s no intention to expand to a multi-location or multi-concept business, growth and scalability are crucial to any business. Available for pre-order on Amazon.

Image: Mikołaj on Unsplash

The word "play" painted on a wall
by David Klemt David Klemt No Comments

SevenRooms and CSV form Partnership

SevenRooms and Competitive Social Ventures form Partnership

by David Klemt

The word "play" painted on a wall

Guest experience and retention platform SevenRooms will kick off 2023 with a partnership with Competitive Social Ventures.

This new partnership is yet another example of SevenRooms’ continuous growth. For technology in general and our industry in particular, this is excellent news.

Consider how long it has taken, up until recently, for hospitality to embrace tech innovations. Navigating tech solutions can be daunting. Equally intimidating can be the cost of implementing new tech in a restaurant, bar, or hotel.

Watching a tech platform continue to innovate and grow, therefore, is good news for operators and their teams.

SevenRooms traces their founding to 2011. In comparison, many “solutions” never escape the vaporware stage, existing only on paper. With more than a decade of operation under its belt, SevenRooms is established and positioned for longevity.

In other words, the platform is worthy of operator consideration and investment. We make no secret of our preference for SevenRooms at KRG Hospitality. Unless they prove we should think otherwise, the platform is our favorite tech-based guest retention solution.

Beyond functionality, ease of use, and effectiveness, the company’s continuous growth motivates our support. Look at how SevenRooms grew in 2021 alone:

The platform also started 2022 with the hiring of a chief revenue officer, Brent-Stig Kraus.

Social Entertainment

With its headquarters in Alpharetta, Georgia, Competitive Social Ventures blends sports, socializing, and entertainment.

In fact, the company refers to the brands it has brought to market as “competitive socializing entertainment concepts.”

Last year, CSV brought Fairway Social Alpharetta and Roaring Social Alpharetta to market. The former focuses on sports simulators. Roaring Social, on the other hand, delivers a speakeasy experience combined with bowling.

Arriving in 2023, the real estate holding company plans to launch Pickle & Social concepts throughout the Metro Atlanta. As the name suggests, the concept features indoor and outdoor pickleball courts. Guests will also have access to table tennis. And like Fairway Social and Roaring Social, Pickle & Social will feature live music and an elevated F&B experience.

CSV already makes use of SevenRooms’ reservation and guest data management tools. Going into 2023, this partnership will evolve into review aggregation, marketing automation, and table waitlist management. The latter makes it easier for any concept to handle walk-ins as painlessly as possible.

Most importantly, the partnership with SevenRooms empowers CSV to pursue their growth plans. While the growth of SevenRooms is impressive and confidence-inspiring, their commitment to client growth is the real story here.

When choosing their tech stack, operators need to know the relationship is mutually beneficial. In fact, they need to be confident that each platform is here for long-term success.

In fact, operators should look at every relationship through this lens: Is every partner working to help you grow?

Image: Ben Hershey on Unsplash

Stay Weird neon sign with purple background
by David Klemt David Klemt No Comments

Stand Out with Weird Holidays: Dec. 2022

Stand Out with Weird Holidays: December 2022

by David Klemt

Stay Weird neon sign with purple background

Want to stand out from from other restaurants and bars in your area? Then commit to keeping it weird.

Several “holidays” are set against every date on the calendar, and December is no exception. These holidays range from mainstream to “weird.” For example, I’m sure you’re familiar with Hanukkah, Christmas, Kwanzaa, and a little event we call New Year’s Eve.

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?

Of course, you shouldn’t try to celebrate every holiday, weird or otherwise. And this month’s list in no way includes every odd holiday.

Focus on the days that are authentic to your brand; resonate with your guests; and help you grab attention on social media.

For November’s list, click here.

December 5: Bathtub Party Day

So, technically this day is about encouraging people to take a bath rather than a shower. However, this can be a great day for celebrating gin and prohibition-era cocktails.

Why gin in particular? For many, winter is gin season. Additionally, when people think of prohibition they tend to think of “bathtub gin.”

December 6: World Trick Shot Day

This is another holiday that celebrates something specific. In the case of World Trick Shot Day, it’s the basketball trick shot.

However, not every venue has basketball available to their guests. Many eatertainment venues do, but the same can’t be said for every restaurant or bar. But if your business has other bar games on offer, you can certainly adapt this holiday to encourage your guests to take their best shots.

December 8: National Pretend to be a Time Traveler Day

Yes, Halloween is over. That doesn’t mean people won’t dress up and have some fun. From Doctor Who to Marty McFly, there are plenty of characters, movies, and TV shows out there your guests can use as inspiration to celebrate this holiday.

December 11: International Mountain Day

Our mountains are incredible, powerful, and crucial resources. So, on this holiday, highlight brands from mountainous regions and those committed to sustainability efforts.

December 12: Gingerbread House Day

This one can get messy but it can also draw in a lot of guests. There are a few ways to go about celebrating Gingerbread House Day, of course. One way I can think of is to encourage your guests to come by and help decorate a large gingerbread version of your restaurant or bar.

December 16: National Ugly Christmas Sweater Day

Fine, this isn’t exactly the weirdest holiday out there. At this point, the ugly Christmas/holiday sweater is a movie and television show trope. That doesn’t make it any less fun.

Come up with your own twist to bring guests through your doors this National Ugly Christmas Sweater Day. That can mean creating a particular theme for ugly sweaters, for example.

December 21: Phileas Fogg Win A Wager Day

When I came across this holiday I knew I’d be including it on this list. The name of the day is ridiculous, and the specificity is impressive. How could I resist?

This holiday, should you choose to accept celebrating it, is dedicated to Phileas Fogg. Who’s that? Fogg is the character in Around the World in Eighty Days who accepts the challenge referenced in the book’s title.

December 22: National Re-gifting Day

People participate in a lot of holiday gatherings throughout December. Many take place before the start of Hanukkah or Christmas Day.

That means a lot of people get gifts before December 22 that they’d perhaps rather not keep. So, encourage your guests to roll in on National Re-gifting Day for a drink, a bite, and an exchange of gifts.

December 23: National Pfeffernüsse Day

No, this isn’t a weird holiday—it’s mostly a fun word to say: “pfeffernüsse.” For non-German speakers, that’s probably a “weird” word. Most importantly, it’s a delicious, spiced cookie that makes for a great treat or fun interpretation as a holiday season cocktail.

December 30: No Interruptions Day

We all need time to disconnect, to log off and be unreachable. Your restaurant or bar is the perfect place for people to hit “do not disturb” on their devices and escape before New Year’s Eve.

Image: Dan Parlante on Unsplash

KRG Hospitality Licensing Program logo
by krghospitality krghospitality No Comments

KRG Hospitality Adds to Team

KRG Hospitality Enters New Era of Growth with Addition to Team

by David Klemt

KRG Hospitality Licensing Program logo

Kim Richardson joins the KRG Hospitality team, representing Philadelphia and the Northeastern US region via the agency’s new license program.

PHILADELPHIA, PA—KRG Hospitality today announces an exciting new addition to the consulting agency’s team. Following several years of success, KRG is now entering a new phase of growth.

Kim Richardson, who has more than 23 years of experience in the hotel and restaurant industry, will represent KRG at the agency’s Philadelphia office. Further, Richardson will be KRG’s representative for the Northeastern region of the United States, serving Connecticut, Delaware, Maine, Massachusetts, New Hampshire, Maryland, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont.

As the newest member of the KRG team, Richardson is excited to bring all her hospitality industry knowledge and experience to the Philadelphia area. From Five Diamond Hotels to brick-and-mortar restaurants, she has had her hands in the Philadelphia hospitality scene since moving to the city in 2003. With an admiration for the industry since a very young age, she has a passion for all things hospitality. Most importantly, Richardson brings with her a passion and eagerness to help grow the industry and lead others to success.

“There’s nothing more rewarding than understanding a client’s dream, perfecting it, and bringing that vision to life,” says Richardson.

This exciting new addition to the KRG team represents the launch of the agency’s new licensed consultant program. KRG operates in several key markets—Toronto, Las Vegas, Calgary, Vancouver, Philadelphia, Nashville, Orlando, and the Caribbean—and is planning to add more partners as regional representatives throughout 2023.

“As we move forward from the pandemic era, we look forward to positioning the brand for continued and further success,” says KRG Hospitality president Doug Radkey. “Creating a licensed consultant program provides us the opportunity to reach a wider audience, provide additional value and support for our clients, and help push this exciting industry forward.”

About KRG Hospitality

KRG Hospitality is a storied and respected agency with proven success over the past decade, delivering exceptional and award-winning concepts throughout a variety of markets found within Canada, the United States, and abroad since 2009. Specializing in startups, KRG is known for originality and innovation, rejecting cookie-cutter approaches to client projects. The agency provides clients with a clear framework tailored to their specific projects, helping to realize their vision for a scalable, sustainable, profitable, memorable, and consistent business. Learn more at KRGHospitality.com. Connect with KRG Hospitality and the Bar Hacks podcast on social: KRG Twitter, Bar Hacks Twitter, KRG Media Twitter, KRG LinkedIn.

Image: KRG Hospitality

Empty, broken plate on floor
by David Klemt David Klemt No Comments

169 Grants May be the End of the RRF

169 Grants May be the End of the RRF

by David Klemt

Empty, broken plate on floor

UPDATE: According to some sources, the report of $180 million in “leftover” RRF money are inaccurate. The disbursement of $83 million represents the final release of RRF funds.

The $83 million in grants going out this week to 169 recipients may be the end of the Restaurant Revitalization Fund in its entirety.

Unfortunately, it’s possible last week’s awards represent the final grants. This, despite the Government Accountability Office (GAO) finding $180 million in funds in July.

As far as the sources of these funds, that topic remains a bit vague.

However, the story is that more than $150 million are the result of clawbacks. More than a third, if reporting is accurate, is the result of recipients or financial institutions returning grants. Reports indicate another $24 million come from the SBA setting aside $24 million for litigation.

Per the National Restaurant Association months ago, the American Rescue Plan Act of 2021 does not include a provision for a litigation fund. Therefore, the NRA called for the SBA to disburse that money to RRF applicants.

What we do know is that last week’s RRF grant recipients should be receiving their funds this week. According to the SBA, 169 recipients were awarded a portion of $83 million in RRF money.

Again, that’s money the GAO found back in July. It’s also less than half of the reported $180 million the government agency found this summer.

Given the fact that the SBA announced a disbursement of just 46 percent of the “leftover” funds, many believed another round was in the works. Sadly, that may not be the case. It’s possible—and increasingly likely, regrettably—that the rest of the $180 million in funds won’t go to grant applicants.

Now, I want to be clear on one important point: I’m relieved for the 169 grant recipients. I truly hope the funds arrive in time to help them and their teams.

While I’ll feel disappointment if a second round of the $180 million never materializes, I’m happy for those who received a portion of the $83 million awarded last week.

Frustration

So, where does the industry go from here? The failure of Congress to replenish the RRF left a reported 150,166 applicants with zero assistance. According to Nation’s Restaurant News, it would have taken $41 billion to award each applicant a grant. Obviously, $180 million was never going to serve to help that many applicants.

Frustratingly, the answer to the question above appears to be: Move forward on our own. And that unsatisfactory answer has flooded with me opinions.

One opinion? Our industry, it seems, is always left to fend for itself. Despite the millions of people hospitality employs, lawmakers and politicians don’t seem willing to assist us—and therefore their constituents—in meaningful ways.

Another opinion? Perhaps we need to build a more powerful lobby to have our voices heard. Such an effort began in earnest to support the RRF. However, too many elected officials were comfortable refusing to replenish the fund.

A third opinion was shaped by Eileen Wayner, CEO of Tales of the Cocktail. As a guest on the Bar Hacks podcast she addressed the perception of operators and hospitality workers as being adaptable and resilient.

While those characteristics can be admirable, Wayner expressed something I think we all feel: Sometimes, we’re tired of being resilient. Sometimes, we’re tired of being expected to adapt. There are times our industry needs help.

When you’re constantly seen as resilient, people believe you don’t need assistance. What we’ve seen with the RRF and its failed replenishment is that too many people with the power to help can write us off. “They’re resilient,” they say. “They’ll figure it out. They’ll be fine.”

Well, we’re not all “fine.” We needed help, and we deserved it.

Image: CHUTTERSNAP on Unsplash

Delivery worker on bicycle on city street
by David Klemt David Klemt No Comments

$28.82 per Hour for NYC Delivery Workers?

$28.82 per Hour for NYC Delivery Workers?

by David Klemt

Delivery worker on bicycle on city street

In response to the New York City Council’s proposal of $23.82 per hour for delivery workers, some “deliveristas” are asking for more.

Now, before we proceed, no, this isn’t a re-run of an article from last week. This isn’t a case of déjà vu—it’s the evolution of a news story that’s developing rapidly.

So, how much more do delivery workers in NYC want? Well, they’re after a significant bump over the council’s minimum hourly wage proposal.

Requesting that the NYC Council more accurately account for deliverista expenses, some delivery workers are asking for $28.82 per hour.

Early last week, a group consisting of Los Deliveristas Unidos and the Worker’s Justice Project members came together. They gathered at New York City Hall to make their stance on the NYC Council’s minimum wage proposal.

As the deliveristas see it, an increase from $23.82 to $28.82 more accurately reflects their operating expenses. The argument is compelling when one considers costs beyond fuel.

Asking for More

After all, not every delivery worker in NYC (and other markets) uses a car, truck or SUV to make deliveries. That should explain the use of the term “delivery worker,” not “delivery driver.” Some deliveristas ride motorcycles, mopeds, or bicycles. I’m willing to bet some even use scooters, rollerblades, or skateboards.

Using any mode of transportation as a delivery worker comes with requirements, both legal and practical. For example, deliveristas must maintain insurance, maintain their transportation, and purchase and maintain safety equipment.

And yes, that safety equipment is crucial. According to some reports, around a third of NYC those who deliver on two wheels have been injured on the job. Tragically, 33 delivery workers have been killed since 2020. In fact, NYC says delivery workers have the highest injury rate.

Another interesting development may seem semantic. However, when one takes time to truly consider the point it’s rather poignant.

In asking for the proposal of $23.82 to rise by $5 by 2025, are asking for a living wage. Not minimum wage, as the proposal frames the hike, but a living wage.

One worker, Antonio Solís, as quoted by The City, a non-profit NYC news publication, explained: “We are asking the city to make a $5 adjustment, to go that extra mile to ensure we get to a living wage.”

A Request, not a Rejection

It’s also important to note that NYC’s delivery workers aren’t rejecting the council’s minimum wage proposal. Rather, the request is that the council considers updating their proposal ahead of a December 16 public hearing on the matter.

So far, companies like DoorDash, Grubhub, and Uber Eats haven’t released much in the way of statements. However, there have been reports quoting a handful of representatives. In pushing back against the proposal, they’ve mentioned increased costs; reduced deliveries; and the possibility of “locking out” deliveristas if delivery demand is low at a given time.

Should legislation go into effect after the public hearing, it’s likely we’ll see lawsuits from the delivery companies.

Image: Patrick Connor Klopf on Unsplash

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