Restaurant Operations | KRG Hospitality

April 26, 2022by David Klemt David Klemt No Comments

Forward Progress: 2022 Drink Trends

Forward Progress: 2022 Drink Trends

by David Klemt

Curious about what drink trends to leverage throughout 2022 to fulfill guest desires and expectations? Datassential has answers.

Of course, nobody has a crystal ball. However, as their name suggests, Datassential has something similar: data.

A trove of their valuable data was shared during Bar & Restaurant Expo 2022. Amanda Torgerson, senior account manager at Datassential, revealed the trends operators should be aware of this year.

Datassential MegaTrends

During this informative session, Torgerson shared what Datassential has identified as three “megatrends.” In other words, two trends that are particularly noteworthy.

First up, self-service. Whether beer, wine, or cocktails, Datassential thinks today’s guest wants more control.

Self-service beverage alcohol taps offer control in multiple ways, pour size and customization among them.

In addition, guests don’t have to wait for servers or bartenders when serving themselves. And, of course, self-service cuts down on front-of-house labor costs.

Second, experiential imbibing. In this context, this doesn’t simply relate to occasion, service, location, and ambiance.

Rather, the drink itself is an experience. Experiential cocktails engage multiple senses and include:

color-changing cocktails (those using butterfly pea powder, for example);
cocktail carts (similar to tableside guacamole preparations, tableside cocktail prep and service);
fire and smoke: smoked, charred, and burnt cocktails;
drinks that invoke nostalgia and guests’ childhoods;
frozen drinks; and
beer, wine, spirit, and cocktail flights.

Finally, botanicals. As we know, scent is a crucial component of taste. Botanicals, obviously, activate one’s olfactory sense.

Additionally, botanicals can affect a drink’s appearance and taste. So, break out the Chartreuse, Lillet, and elderflower liqueurs.

And while your team is at it, consider how else scent can be used to entice guests and enhance the drinking experience.

Best of the Rest

Treating this as more of a speed round, let’s review Datassential’s trend predictions in four major categories.

Seltzer/Beer

When it comes to hard seltzer, Datassential has (re)confirmed what we all know: This category has staying power. And as many operators found out during the pandemic, seltzers can boost to-go and delivery sales.

Beer cocktails are also trending up, per Datassential. Mini-bottles of beer also having a moment, and can easily tie into the beer cocktail trend.

Finally, heirloom beers—those made with heirloom grains—are proving popular with consumers.

Wine

According to Torgerson, wine seltzer is poised for a moment. Relating it to the hard seltzer trend, consider this Wine Cooler 2.0, as Torgerson said.

Other key wine trends are frizzante and red sparkling wines, orange wines, and canned sake.

Then there’s fruit wines, which means any wine not made from grapes. During her session, Torgerson suggested using these in cocktails.

Cocktail

In addition to cocktails on tap, Datassential sees the following as cocktail trends to watch:

Drinks made with genever.
Hybrid rums, blends of light and dark rums.
Ranch Water (typically a highball made with tequila and lime juice, topped with Topo Chico).
Single-serve, premade cocktails such as RTDs. These are great for off-premise sales.
Boozy frozen desserts.

Global

Focusing first on increasingly popular spirits, Datassential’s data shows that pisco, mezcal, and Japanese whisky are trending up.

In terms of wine, operators should look into regions that are perhaps “lesser known” in North America. Some examples from Torgerson’s presentation are Georgian and Hungarian wines.

And finally, what Datassential identifies as “drinking for a cause.” Such causes and beverage activations can be local or global as the world is so much more connected.

Image: ABHISHEK HAJARE on Unsplash

April 25, 2022by David Klemt David Klemt No Comments

Hiring Struggles? Engage These Age Groups

Hiring Struggles? Engage These Age Groups

by David Klemt

Staff turnover rates are still above pre-pandemic levels and there’s no silver bullet solution. However, two companies have some helpful advice.

Both Service Management Group and Technomic shared their tips during Restaurant Leadership Conference. Interestingly, each company has a different approach to the current hospitality industry labor problem.

In short, both SMG and Technomic advise operators to engage with vastly different age groups. However, they each have information that supports their recommendations.

Service Management Group

Jennifer Grimes, senior vice president of client services for Service Management Group, co-presented a session with Jim Thompson, COO of Chicken Salad Chick.

SMG is a software-with-a-service platform that seeks to the employee, customer, and brand experience. One crucial element of the company’s mission is the reduction of staff turnover.

During the RLC session, Grimes shared several years of hospitality turnover rates:

2017: 72%
2018: 75%
2019: 79%
2020: 130%
2021: 86%

First, some context. The general consensus is that the industry’s average turnover rate has been between 70 and 80 percent for close to a decade. However, in comparison to other industries—10 to 15 percent—that’s stratospherically high.

Secondly, the turnover rate has been on rise since before the pandemic. Per some sources, the rate jumped from 66 percent in 2014 to 72 percent in 2015, a trend that continues to this day.

For SMG, the age group operators should seek to engage—generally speaking, of course—is 25 to 34 years old. Per the SWaS platform, this group was the most engaged pre-pandemic.

One reason for SMG’s suggestion is that Boomers appear to opting out of the workforce.

During the presentation by Grimes and Thompson, the latter shared that Chicken Salad Chick predicts the 2022 turnover rate to be just slightly above the 2019 rate.

Technomic

Unsurprisingly, Technomic had some numbers to share during RLC 2022 in Scottsdale, Arizona.

Per data provided by Joe Pawlak and Richard Shank, 70 percent of operators are still struggling with labor. Recruiting, hiring, and retaining staff doesn’t appear to be getting any easier four months into 2022.

Technomic also pointed out that the US saw the lowest population growth in its history last year: 0.1 percent.

Additionally, almost 17 percent of the country’s population is now at least 65 years old. In 2019, 48 percent of people 55 or older retired. That number is now just over 50 percent for the same age group.

Nearly seven million American consumers turn 60 each year, while four million turn 70 or older.

Logically, one may assume that Technomic is saying a significant portion of the US population is leaving the workforce. So, it’s best to focus on the same age group as SMG recommends.

However, Technomic is recommending a different strategy. Per Pawlak and Shank, retirees (mostly ages 55 and up) tend to have valuable managerial skills and experience.

Obviously, those skills and all that experience can be of great benefit to operators and our industry.

Certainly, all groups should be engaged by operators seeking to recruit, hire, and develop their teams. So, as KRG Hospitality sees recruitment, operators should craft targeted, authentic messaging that appeals to each age group.

Image: Sebastian Coman Photography from Pexels

April 22, 2022by David Klemt David Klemt No Comments

Código 1530 Pursuing Low-waste Initiatives

Código 1530 Pursuing Low-waste Initiatives

by David Klemt

Blue Weber agave plant in Tequila, Mexico

Tequila Código 1530 is making the upcycling of the agave they use a cornerstone of the brand’s sustainability efforts.

Some agave growers and tequila producers the plant as mulch, fertilizer, and biofuel. Bagasse, the fibrous material distillers separate from agave piñas, along with the leaves, is composted and used to fertilize agave fields.

While not common, some distillers will even take other producers’ agave bagasse and leaves to compost it.

However, Código 1530 is now doing even more with their agave.

Agave Sustainability

According to some in the spirits and hospitality industries, tequila may end vodka’s dominance in the US this year. Obviously, this would be the result of an increase in consumer demand.

Well, that necessitates an increase in production. So, it follows that agave growers have motivation to grow and harvest as much mature agave as possible.

However, it takes about eight years for some agave plants to mature. Others take more than ten years. For some rarer species, maturation takes twelve years or more.

Of course, production leads to waste. In simple terms, that’s the problem producers must solve.

One definition of “sustainability” is striking an ecological balance that preserves natural resources. For tequila production in particular, this means finding ways to meet consumer demand while harvesting agave reponsibly.

While composting and mulching is a great idea, Código 1530 sees the need to take things further.

More than Mulch

We’ve probably all been given at least one drink served with a paper straw. Unfortunately, that means most of us know how quickly that experience can become less than enjoyable.

Even some of the best-made paper straws can turn soggy long before a drink is finished. On the operator side, that’s not great for the guest experience, to say nothing of the costs associated with stocking paper straws.

However, some operators and their guests are willing to stick with paper straws to be sustainable. That’s admirable but there may be a better way, and it involves agave.

“We quickly realized that after harvesting agave to distill Código 1530 Tequila, the remaining agave was only being used as mulch to top our soil for future plants or burned as a fuel source,” explains George Strait. “We are still using some of the excess agave fiber as mulch, and now have begun producing straws and cups in a sustainable and eco-friendly manner.”

Strait, as some may know, is an investor in Código 1530. A lesser-known fact is that Strait graduated Texas State University (formerly known as Southwest Texas State University) with a degree in agriculture.

“This is a lifesaving program for sea life affected by plastic pollution,” says Strait of Código 1530’s new agave sustainability efforts.

Unlike paper straws, agave straws don’t get soggy or deform. Additionally, they can be thrown out in normal trash after use as they’re biodegradable.

However, this agave initiative doesn’t end with straws. Código 1530 is also making agave fiber cups, coffee cups, cocktail shakers, and shot glasses.

Tea-quila

To celebrate Earth Day and their sustainability efforts, Código 1530 has created the drink below.

Image: Amir Shafii, Código 1530

1.5 oz. Código 1530 Blanco
3 oz. Bergamot tea
0.75 oz. Lemon juice
0.5 oz. Lavender simple syrup
Lavender sprig to garnish

Housemade simple cuts down on the waste associated with producing and shipping bottles of syrup. To make the lavender simple syrup, bring one cup of water and one cup of sugar to a boil. Add ten sprigs of lavender while water and sugar are boiling, let cool, then strain. For this low-waste cocktail build, add all ingredients and ice to a shaker. Shake, then strain into a Collins glass with ice. Garnish with a sprig of lavender.

Image: BRUNO EMMANUELLE on Unsplash

April 20, 2022by David Klemt David Klemt No Comments

Chain Restaurants: Present & Future

Chain Restaurants: Present & Future

Technomic presented the state of chain restaurants, now and next, during Restaurant Leadership Conference 2022 in Scottsdale, Arizona.

Obviously, the entire hospitality industry is facing significant struggles. Rising costs, supply chain chaos, labor shortages and challenges, inflation… The past two-years-plus haven’t been easy.

However, there’s reason for operators and their leadership teams and staff to be optimistic. Additionally, independent and small-chain operators can learn from Technomic’s findings.

Challenges & Threats

Well, let’s take our medicine first, starting with the supply chain. In short, it’s bedlam.

Joe Pawlak (standing in for David Henkes) and Richard Shank of Technomic said as much during RLC 2022. Per their data, 35 percent of operators dropped at least one manufacturer between 2020 and 2021.

Whether because of rising costs, an inability to consistently deliver product, or other factors, operators had to adapt. Clearly, there’s a nasty trickle-down effect when an operator drops a supplier.

And then there’s inflation. Interestingly, Shank calls what we’re seeing currently as “existential inflation.” Relating to consumers, this means their confidence is shaken in terms of spending.

Of course, this type of consumer perception manifests in several ways. For example, some guests cut down on visits. Others will cut down on ordering, skipping appetizers and desserts. Perhaps they have one less beer, glass of wine, or cocktail.

Also, some guests “trade down.” Meaning, there are consumers who opt for casual restaurants rather than fine dining. Or, they’ll move from fast-casual to QSR.

Looking at the numbers, however, nearly 40 percent respondents to a Technomic survey say they’re visiting restaurants less. This makes sense, as 81 percent are concerned about how inflation will impact them personally.

On the operator side of inflation comes pricing. During Pawlak and Shank’s presentation, they used QSR dinner pricing as a real-world example.

According to Technomic, the tipping point for guest perception of good value is just $7. At only $10, consumers feel things are getting expensive.

As Pawlak and Shank pointed out, this is a problem. After all, the average price for dinner at a QSR is $10.08. That number may already be higher today.

Opportunities

Medicine taken, we can move to the good news.

First, Technomic predicts a strong Q3 this year. Additionally, they don’t expect double-digit year-over-year inflation.

In terms of labor, Technomic doesn’t expect costs to go down. However, they do anticipate that they’ll level off rather than rise.

Then there are the numbers. For the top 500 chains in the US in particular, 2021 was a “banner year,” according to Pawlak. On an aggregate basis, sales for the top 500 (McDonald’s is number one, for those wondering) are up 17.9 percent.

Also, every category of restaurant is performing better. The top 500 chains, for instance, are up 18 percent year-over-year. Midscale restaurants are up 38.5 percent. Casual is up 30.2 percent while fast is up 22.2 percent, QSRs are up 13.2 percent. As far as the biggest bump, fine dining is up 56.9 percent.

Looking at 2019 for obvious reasons, the industry was down 49.1 percent in sales in April 2020. However, the industry was down just about a single percentage point in February of this year compared to the same time in 2019.

So, how do we keep sales trending upward when facing inflation and other threats? Pawlak, Shank, and Technomic have some advice.

Operators, for instance, can implement the “balanced barbell” pricing strategy. In this model, high-value items drive business alongside premium offerings. In other words, don’t discount the entire menu just to entice guests to keep visiting.

Once guests get a taste for falling prices, they’ll consider the lower prices the standard. After that, any increase can be perceived as “too expensive.” Of course, discounting the whole menu also impacts guest perception of the brand negatively.

In addition, Technomic suggests offering higher net profit discount bundles, and implementing off-premise, large-party strategies.

Should Technomic’s predictions prove true, the industry may see an even stronger Q4 and start to 2023.

Image: Alex Haney on Unsplash

April 19, 2022by David Klemt David Klemt No Comments

Dining Room Tech on the Rise

Dining Room Tech on the Rise

by David Klemt

After years of restaurant technology adoption moving at a glacial pace, the industry now appears to be embracing innovations at light speed.

In fact, in just two short years some in the industry think it may be time to slow down. New tech can be exciting but jumping on every “innovation” is expensive, time consuming, and inefficient.

However, slowing down doesn’t equate to hitting the pause button.

Dining room tech was a topic of discussion at the 2022 Restaurant Leadership Conference in Scottsdale, Arizona. The two speakers agree that our industry needs to ease off the tech throttle a bit.

However, they also feel that tech innovations in the restaurant space will continue at a faster rate than they did pre-pandemic.

Session host Raymond Howard, a co-founder of Ziosk, interviewed Chris DeFrain and Hernan Mujica about dining room tech. DeFrain is a CPA at Lehigh Valley Restaurant Group, which operators 21 Red Robin franchises throughout Pennsylvania. Mujica is CIO for Texas Roadhouse.

Red Robin

Industry professionals and consumers alike should be familiar with Ziosk. After all, Red Robin has been a client with tech company since August, 2012.

Anyone who has visited a Red Robin has certainly interacted with a Ziosk terminal.

According to DeFrain, there are some interesting consumer behaviors taking place in Red Robin dining rooms. When it comes to tech, guests appear satisfied to place orders for appetizers and desserts via Ziosk terminals.

As DeFrain sees it, the guest would rather not wait for a server for ordering those types of food items. However, guests do seem to prefer ordering entrees from a server.

That’s a positive in DeFrain’s opinion, as he believes that ordering must remain the domain of servers. While he contends that the tech-based ordering process needs streamlining, DeFrain doesn’t appear interested in taking it out of servers’ hands completely.

This makes sense; the server as an integral element of the guest experience. How can a casual dining restaurant build guest loyalty and deliver a memorable guest experience without an engaging front-of-house team?

Of course, dining room tech should do more than accept orders, summon a server, and offer tableside payments. Today, data is king. Powerful platforms collect as much useful data as possible.

To that end, DeFrain appreciates that Ziosk provides data Red Robin leadership teams can share with staff. For example, a server can be shown how much they’re making in tips during their shift.

Finally, DeFrain says that guest usage of Ziosk terminals is improving feedback and comments.

Texas Roadhouse

In comparison to Red Robin, Texas Roadhouse took longer to sign on with Ziosk. In part, interestingly, this was due to the redesign of the terminal itself.

Turns out, Texas Roadhouse waited for a Ziosk terminal that took up less space and looked better on the chain’s tables.

Per Mujica (and any Texas Roadhouse guest), the in-person experience is core to the brand. Therefore, dining room tech must be an enhancement, not a detriment.

Like Red Robin, the chain has no interest in adopting tech that replaces FoH staff.

Another consideration regarding dining room tech should be important to all operators: The tech must be user friendly. According to Mujica, restaurant guests are happy to embrace tech innovations—if it’s easy to use.

So, operators must be careful and deliberate when choosing their tech stack. Generally speaking, native tech users (Gen Z) will likely be much quicker to learn how to use a particular technology than a Baby Boomer or even Gen X counterpart.

As such, operators must know their guests in order to adopt tech that enhances rather than alienates.

Another reason Texas Roadhouse chose Ziosk, per Mujica, comes down to mobile pay. In short, the chain didn’t like the mobile pay guest experience.

In terms of the future, Mujica predicts that handheld, tableside ordering is the future of dining room tech.

Takeaway

Like Mujica says, operators have now seen what tech innovations can do for them. In short, there’s no turning back.

And I agree with Mujica and DeFrain: it’s likely (and necessary) that tech development will slow a bit moving forward. Honestly, we all need room to breathe, consider the innovations available currently, and decide what works best for a particular business.

Likewise, I agree that tech can’t be allowed to alter the service model. Technology shouldn’t be seen as a replacement for staff.

Interestingly, restaurateur David Chang addressed this very subject during a 2022 RLC conversation. In his opinion, tech won’t replace restaurant roles, it will streamline them. At most, said Chang, tech will replace small, repetitive tasks, such as the physical flipping of a burger.

In closing, when deciding on the tech stack, operators should consider the following: ease of use for guests, ease of use for staff, streamlining of operations, and cost.

In this space, tech should never be embraced simply because it’s shiny and new. Not only is that costly in terms of investment, it can cost guest loyalty and visit frequency.

Image: Vishnu Mohanan on Unsplash

April 18, 2022by David Klemt David Klemt No Comments

This Simple Test Reveals Process Problems

This Simple Test Reveals Process Problems

by David Klemt

There’s an easy way to identify whether there are changes that need to be made to processes and practices that only requires observation and time.

Luckily, it doesn’t take much time, either. In less than a week, an operator can determine if there are issues relating to onboarding new hires.

This simple test was shared during the 2022 Restaurant Leadership Conference in Scottsdale.

Interviews are Just the Start

It should go without saying but here we go: The hiring process doesn’t end with the interview.

An operator or their leadership team found an amazing job candidate? Awesome! That’s no small feat these days.

However, that’s just the first step in hiring and building a rock star restaurant, bar or hotel team.

Step two is onboarding, step three is training, and step four is advancement.

For KRG Hospitality, onboarding goes far beyond filling out federal and state paperwork. There’s more to it than setting up direct deposit and getting a new hire on the schedule.

Rather, operators need to implement a fully developed onboarding process. The key word there is “process.”

True onboarding includes the review of an employee handbook and an introduction to the business. During this process new hires should become familiar with the brand’s history, vision, culture, mission, and core values.

By the end of this process, a new team member should understand what’s expected of them, both in their individual role and behaviorally. Additionally, they should be introduced to the entire team.

In reality, the onboarding process is the development of a professional relationship.

The Test

Technically, the actual test for operators is for them to have in-depth hiring, onboarding and training processes in place.

So, operators should take a moment to review whether they have those processes.

However, the test I’m talking about here relates to onboarding directly. It’s simple and it was shared during RLC 2022 by Jim Thompson, COO of Chicken Salad Chick.

The only requirement is a few days’ time and an observant operator and/or leadership team.

Let’s say a candidate nails the interview. In particular, their personality is perfect for the available role. As the the hospitality industry maxim goes, hire for personality, train for skills.

The new hire works their first shift but their personality doesn’t shine through. However, that could be first-day jitters. Unfortunately, that personality the leadership team hired for is nowhere to be seen during their next few shifts.

According to Thompson, if a new hire’s personality doesn’t shine through within four shifts, there’s likely a process and practices issue. The lack of personality is an indicator that the new team member doesn’t feel confident in their role.

The onboarding process—either too shallow or nonexistent—is a likely culprit. Operators can use this test, a simple four-shift observation of a new hire, to determine if there’s a problem.

Once identified, the operator and their leaders can put their heads together, review the issue, and implement effective, positive change.

Image: Caroline Attwood on Unsplash

April 15, 2022by David Klemt David Klemt No Comments

The Uber Effect: Recruit and Retain

The Uber Effect: Recruit and Retain

by David Klemt

To better understand how to recruit and retain top talent these days we can simply look at what’s known as the Uber Effect.

We just got back from the Restaurant Leadership Conference in Scottsdale, Arizona. The education was top-notch, featuring a wide range of restaurant industry experts.

One outstanding session illustrates the need for operators—chain and independent—to change their approach to recruiting and retaining staff.

Flexibility in the Workplace

According to Jennifer Grimes, senior vice president of client services for Service Management Group, people in the labor pool are after three things when seeking employment.

Generally speaking, they want better pay, better benefits, and better scheduling. Gone are the days of people focusing only on their paychecks.

And per Jim Thompson, chief operating officer of Chicken Salad Chick, the Uber Effect is largely responsible for this shift in focus. The Uber Effect refers to people realizing they can be much more in control of their careers.

In simplest terms, Uber drivers are in control of their workdays. They can work as often as they want, whatever hours they want, and wear what they want while working.

Of course, it’s not complete anarchy. There are rules, there are expectations, there are standards. However, there’s also flexibility.

Along with more flexibility in scheduling, people want the following:

workload balance;
ability to trade shifts;
better communication; and
paid vacations.

Today’s modern scheduling platforms make it simple for operators and their leadership teams to meet these expectations. With these apps, operators and leadership can:

assign specific roles to individual team members;
communicate clearly with staff;
allow staff to trade, drop, and pick up shifts; and
fill available shifts.

One Size Doesn’t Fit All

Thompson has an interesting anecdote about availability.

A Chicken Salad Chick manager conducting interviews didn’t proceed with a candidate. Asked by Thompson why they wouldn’t be moving forward, the manager pointed to the candidate’s availability.

During the interview, the candidate provided only a single day and the manager felt that wasn’t enough. However, Thompson disagreed with the manager’s assessment.

What if, Thompson posited Thompson, their availability filled a currently open shift? At least there would be one less shift for leadership to worry about.

But it went deeper than just that point. Good operators and leaders know that job interviews aren’t one-way streets. Candidates are also interviewing their potential employer.

What if this candidate provided limited availability because they’re unsure about a particular employer? They may not know the brand all that well, they likely don’t know the leadership team, and they don’t yet understand the workplace’s culture.

As Thompson says, “One size fits all is over.” Operators and their leadership teams need to be flexible.

It’s highly possible that just a few shifts in, if the narrow-availability team member is a good fit and finds the job engaging, they’ll broaden they’re availability.

Developing the Culture

Of course, the above scenario comes down to culture. And Thompson has an interesting thought on that operational element.

If an operator isn’t constantly developing their culture, it will grow stagnant. Maintaining the current culture isn’t good enough.

Failing to do so will ultimately lead to a decline in guest satisfaction. When that happens, a decline in traffic comes along with it.

It’s really rather simple: How an operator and the leadership team treats employees trickles down to guests. Unhappy and unsatisfied staff provide poor service. How long are guests going to tolerate negative guest experiences?

And no, simply offering competitive compensation doesn’t automatically equate to treating staff well.

“Competitive pay, to me, is the cost of entry,” says Thompson.

To this point, the COO, also the self-appointed chief smile officer, addresses how the restaurant chain respects personal time.

Chicken Salad Chick, founded in 2008, is closed on Sundays. This isn’t due to any religious influence. Rather, the founders, per Thompson, were influenced by what they perceived as a high divorce rate in the restaurant space.

So, the brand wants employees to have family time. That’s also why there stores are also closed by 8:00 PM. In some cases, they close at 5:00 or 7:00 PM. Again, personal and family time.

Could they generate more revenue if they opened earlier and closed later? Probably. However, their culture is crucial to their success.

Takeaway

If operators want to begin the process of truly developing a positive workplace culture, there are several questions Thompson suggests operators and their leaders should ask.

Is the brand purpose driven? Does focus on fun, family, and culture?

How can the business offer incremental value to staff? Are the pay and benefits competitive? Is the workplace safe and are their opportunities for staff to advance?

What’s the community like within the four walls? How’s the energy within those walls?

Are the processes and practices in place helping or hindering recruitment and retention? How can the processes be simplified so employees learn what they need to know quickly?

How flexible is the business, honestly? What’s being done to truly help leadership create better relationships with the team?

Finally, I’ll end on something interesting from Grimes. Analyzing employee engagement, SMG has found that isn’t just about compensation.

In fact, when it comes to what makes most people perceive their job as fulfilling, the top influencer is working with people they like. Second is salary and benefits. Third, rewarding work.

Operators need to adapt to employee expectations, just as they need to focus on those of guests. Sitting down with their leadership teams to discuss Thompson’s questions is a great first step toward developing a culture that works and rewards.

Image: Priscilla Du Preez on Unsplash

April 13, 2022by David Klemt David Klemt No Comments

Leadership Facepalm, Part Two

Leadership Facepalm, Part Two

by David Klemt

In a stunning example of tone-deafness and callousness, a franchisee executive sent an email that led to severe consequences.

And no, I’m not talking about the termination of the offending exec. That, in my opinion, was well deserved.

In this instance, the email has led to mass resignations and damage to a global restaurant chain’s reputation. What’s more, the negative impact to the brand’s reputation comes from consumers and employees.

Of course, I’m talking about the now-infamous Applebee’s “gas prices” email.

The Email: Labor

Let’s just jump right into the email, because…wow.

“Most of our employee base and potential employee base lives paycheck to paycheck,” writes the executive. “Any increase gas prices cuts into their disposable income.”

This could have been an excellent example of awareness and perhaps even empathy. In the context of this email, it’s appalling.

Why? Mainly because this executive appears to be celebrating the fact that Applebee’s employees, at least those who work for this franchisee, are barely earning a living wage.

“As inflation continues to climb and gas prices continue to go up, that means more hours employees will need to work to maintain their current level of living,” continues the author.

In this exec’s view, this franchisee is “no longer competing with the government when it comes to hiring.” He cites stimulus payments and boosted unemployment support have run out. Therefore, he reasons that people will be forced to return to the workforce.

The author further points to competitors increasing wages to recruit and retain employees. This, he figures, is untenable and some will have to close their doors. So, the labor pool will fill up and this franchisee will benefit.

The Email: Wages

Some of what I’ve laid out above is accurate. According to some estimates, about two-thirds of Americans live paycheck to paycheck.

Additionally, it’s accurate to state that some employees will seek more hours to combat the effects of rising costs. Further, yes, the labor market is turbulent and challenging.

And, unfortunately, some independent operators are facing incredibly difficult decisions. To recruit and retain, they’ll need to be competitive and raise their wages. To pay for that, they’ll need to raise prices, passing on rising costs to customers. In some instances, for some operators, that will prove unsustainable.

However, an executive in this industry shouldn’t be delighted about any of this. And they certainly shouldn’t see it as an opportunity to potentially pay employees even less.

You see, the author of this email suggests that the franchisee can bring in new workers “at a lower wage to decrease our labor (when able).”

He then recommends monitoring employee morale to ensure that the Applebee’s operated by this franchisee is their “employer of choice.”

For me, however, the most eyeroll-inducing line is this: “Most importantly, have the culture and environment that will attract people.”

Images of printouts of the email reveal that at least a handful of recipients agreed. “Great message Sir! [sic]” reads one response. Another paints the email as “Words of wisdom.”

Clearly, the culture and environment are unhealthy.

The Consequences

Before I proceed, know this: I’m not going to name the author. It’s not remotely difficult to find the author’s name if you feel the need.

However, I will name the franchisee that finally fired him. American Franchise Capital reportedly owns more than 120 Applebee’s and Taco Bell locations in nine states.

So, to be clear, this executive didn’t work for Applebee’s directly. In fact, Applebee’s has disavowed the former executive and the email.

In the interest of clarity, it’s possible the author worked for Apple Central LLC, owned by American Franchise Capital.

As far as fallout, it was swift. According to reports, consequences were realized immediately. A Kansas franchise manager was shown the emails, printed them out for staff to discover, and comped the meals of everyone at the location. Then, he quit and the staff walked out.

Per reporting, four other Applebee’s managers quit, as did several employees. The location remained closed for at least the following day.

If reports are accurate, Applebee’s lost five managers, nearly a dozen employees, and sales from a location for at least two days. That’s just the localized fallout.

Applebee’s, of course, is distancing the company from the former executive. However, that’s not going to stanch the reputational bleeding and turnover.

As we know, a significant percentage of consumers want to know their dollars and support are going to companies that align with their values. The same is true of employees; they want to work for companies with values they can get behind.

A Final Thought

This now-infamous email was sent March 9. Just two weeks later, it was circulated and went viral. The author, gleeful about being able to hire employees “at a lower wage,” was fired before the end of March.

I’ve seen several takes on this situation, and I’ve read some accompanying leadership advice. One in particular caught my attention.

Unfortunately, it’s not because I thought it was great advice: Be cautious about what you send via blast emails.

I’m not saying one shouldn’t be careful about what they send out in emails—that’s good advice. However, that’s not the lesson I’ve learned from this situation.

Personally, I see this as a lesson in emotional intelligence, relationship intelligence, brand culture, and work environment.

At least two companies, one with annual sales in the billions of dollars, another in the hundreds of millions, have had their reputations tarnished. The fault may not lie with Applebee’s but they’ll be dealing with the consequences regardless.

If an operator is going to learn anything about being cautious, it’s this: Be cautious when hiring those in leadership positions. Be cautious about those with whom you enter into partnerships. And be careful about how you view those who work for you.

If you aren’t seeing those who choose to work for you as people worthy of your respect, as human beings, your brand’s culture is poisoned.

Image: Daria Nepriakhina on Unsplash

Close-up shot of person texting on phone in a restaurant

April 12, 2022by David Klemt David Klemt No Comments

Leadership Facepalm: Don’t Do This

Leadership Facepalm: Don’t Do This

by David Klemt

Here’s a hot take on the employer-employee dynamic: Don’t text staff at 3:00 in the morning demanding they come in on their day off.

In fact, let’s compress this piece of advice. Don’t text staff at 3:00 in the morning.

Really, I shouldn’t have to explain the myriad reasons that doing so isn’t acceptable. However, a post on Reddit shows that this topic needs addressing.

Are You Serious?

Yes, I’m using a Reddit post as an example of what not to do. And yes, I’m going to assume the post is legitimate for the purposes of education.

Owners, operators, and members of leadership teams need to lead. Micromanaging, assuming staff is at their beck and call, and domineering behavior only lead to high turnover.

A high staff churn rate is costly, and not just financially. Yes, it costs thousands of dollars to replace a single member of staff. However, immediate financial costs shouldn’t be the only concern.

Churning through staff also damages a restaurant, bar, hotel, or owner’s reputation. Should they become known as a bad employer—word gets around quickly in this industry—and eventually an operator won’t be able to hire rock star talent.

Over time, they’ll only draw in workers that chase away their guests. After that, the operator will be closing the doors.

“You Need to Be a Team Player”

Interestingly, the Reddit post that’s inspiring this article isn’t brand new. The post in question is about six months old.

But these days, with the shift in the employee-employer dynamic that’s taking place, stories of “epic” or “savage” quitting garner attention.

Again, there are myriad reasons people are drawn to these stories. Rather than read through those, let’s take a look at this quitting story.

A bartender took to Reddit (again, I’m assuming this is a fact) to share texts from his (former) manager. The timestamp on the first text? 2:59 in the morning.

“I need you to come in from 11a-10p today,” starts the text. The reason? Only one bartender is on the schedule for an event that day.

In response, the bartender says, “No thank you,” stating it’s their day off. And then the manager makes a demand using a term that gets thrown around far too much when some people in a position of authority don’t get the response they want (in my opinion).

The bartender is told they need to be a “team player,” and that “it isn’t all about you.” On a positive note, the manager does then say “please” and asks the bartender to come in.

Putting their cards on the table, the bartender says they’ve had a few drinks and don’t want to work an eleven-hour shift with a hangover. Personally, I don’t think the manager was due that explanation but okay.

This doesn’t sit well with the manager, who now attempts to police the bartender’s personal time. According to the texts, the bartender needs “to stay ready for work.” This is apparently because “getting too drunk is not a good look if you can’t stay prepared.”

“Fed Up with You”

After a few more texts back and forth, the manager fast-tracks this situation’s escalation. The bartender is told that they’re going to talk about the bartender’s “attitude” when they “come in Sunday.”

Well, it’s highly unlikely that conversation ever took place. According to screengrabs of the texts, the bartender replies, “No we’re not.” They then proceed to remind the manager that “dozens” of places are hiring bartenders. They’re happy to go work for one of those businesses.

Unsurprisingly, the manager attempts to backpedal. They say that the bartender is making a rash decision “because you’re drunk” and will regret it the next day. That approach doesn’t work.

Now, there’s one sentence that suggests to me, if this situation is real, that the owner needs to address this manager. Or, if this manager is the owner of the business, that they need to work on developing leadership skills.

That line? “I’m fed up with you.”

Sure, they could mean they’re fed up with them in this instance. However, the line follows the bartender saying that their are several other places they can find work instead.

My interpretation is that at a minimum, these two have a problem with one another. Worst case, this manager isn’t doing the owner (or themselves) any favors with their “leadership” style.

Just…Don’t Do This

Please, please, please, don’t text or call staff at 3:00 in the morning. There are perhaps a tiny handful of reasons to ignore this advice. As I see it, those reasons all involve emergencies.

And no, being short-staffed for an event the following morning is not an emergency worthy of texting or calling an employee to cover a shift so late at night/early in the morning.

There are several leadership and scheduling solutions that can prevent this type of situation. In this particular instance, since the bartender was “fed up with” this manager, they were going to quit sooner or later.

Which brings me to my first point: Operators need to know what their leaders are doing. How are they treating staff? How does the staff perceive the leadership teams?

Secondly, how do the operator and other leaders perceive one another? Is everything running smoothly or is one “leader” not really leading?

And finally, scheduling technology. These days, there’s really no excuse for many kinds of scheduling problems. Several scheduling apps integrate well with popular restaurant, bar, and hotel POS systems.

For example, HotSchedules gives staff the ability to give away, swap, and pick up shifts. Another example is OpenSimSim, which provides an open shift invite feature. Staff can also set their profiles to auto-accept shifts as they become available.

7shifts and Schedulefly can also help fill shifts. And like HotSchedules and OpenSimSim, leaders can message groups and individuals, and vice versa.

Perhaps the biggest takeaway here is this: The maxim, “People don’t leave jobs, they leave managers,” is accurate. Leaders need to respect their team members and their personal time.

Image: Alex Ware on Unsplash

United States Capitol Building dome in greyscale

April 7, 2022by David Klemt David Klemt No Comments

House Votes to Replenish RRF

House Votes to Replenish RRF

by David Klemt

Eleven months after the closure of the Restaurant Revitalization Fund application portal, Congress has voted on RRF replenishment.

Earlier today, the House voted “yes” on $42 billion for the RRF via the Relief for Restaurants and Other Hard Hit Small Businesses Act of 2022 (HR 3807).

To clarify, the intent is that funds go to original applicants who were left out when the portal closed.

Neither the $1.7 trillion Build Back Better Act nor the $1.5 trillion omnibus spending bill passed in March included the RRF Replenishment Act.

So, this news is obviously fantastic. However, it’s also long overdue.

We’ve waited nearly 11 months for movement on relief for our ravaged industry. In comparison to the hospitality industry, the legislative process often moves at a glacial pace.

For obvious reasons, the long delay in replenishing the RRF has been devastating.

Nearly a month ago, I wrote and published “Congress is Abandoning Us.” Some considered the article harsh, others agreed with what I wrote.

To be clear, I stand by what I said after ten months of inaction. However, I’m relieved—cautiously—that the House proved their support for our industry today.

$55 Billion Lifeline

In its current form, the House bill would provide $42 billion. This is the amount believed to be enough to award grants to the original applicants from May of 2021.

Additionally, there’s another $13 billion for businesses in other hard-hit industries. So, the House bill provides a total of $55 billion in relief.

Per bill co-author Rep. Earl Blumenauer (D-OR), those who applied last year for the first (and only) round of RRF relief won’t have to re-apply.

Rep. Blumenauer reportedly told Nation’s Restaurant News that “[t]he independent restaurant is the foundation of a livable community.”

Continuing, Rep. Blumenauer told NRN, “We need to have these institutions to provide a foundation for our neighborhoods.”

As far as the source of the $55 billion, the money is supposed to come from funds recovered from 2020 and 2021 pandemic relief programs. This includes billions of dollars stolen through fraudulent relief program claims.

In an effort to combat further fraud and show the public that the funds are indeed going to the correct recipients, the SBA will be required to be transparent about its process.

As it stands, grant recipients will need to spend the funds on eligible uses by March 11, 2023.

Bittersweet

While this is huge news for our industry, it’s somewhat difficult to let go of my frustration fully. The RRF portal opened May 3, 2021. It closed just 21 days later, shutting out an estimated 177,000 grant applicants.

In June of last year, Sens. Kyrsten Sinema (D-AZ) and Roger Wicker (R-MS), and Reps. Earl Blumenauer (D-PA) and Brian Fitzpatrick (R-PA) introduced a bill to replenish the RRF.

That was followed in July by the ENTREE Act, introduced by Rep. Blaine Luetkemeyer (R-MO).

Then, in August, Sen. Rand Paul (R-KY) objected to a unanimous consent motion to fund the RRF. Essentially, after that occurred, it was crickets.

As stated above, when the Build Back Better Act was passed in November, relief for our industry was nowhere to be found.

Given all of this, and the fact that the bill must now go before senators for debate and a vote, I find myself still uneasy about the fate of the RRF.

We often say hope isn’t a strategy. However, I hope our senators do the right thing and pass the relief our industry so desperately needs and deserves.

Image: Joshua Sukoff on Unsplash

April 6, 2022by David Klemt David Klemt No Comments

XDar Vodka Resumes Ukraine Production

XDar Vodka Resumes Production in Ukraine

by David Klemt

Over the past several weeks, the people of Ukraine have shown the world their resilience, tenacity, and refusal to submit to Russia.

The sovereign European nation has endured attacks and atrocities that began on February 24 of this year. Nearly six weeks since the invasion, Ukraine has resisted and repelled the vaunted Russian military.

There’s no end in sight. The world is learning daily about the atrocities and possible war crimes being perpetrated in Ukraine.

Because of this, any good news coming from Ukraine is welcome.

“Gift of Grain”

Incredibly, Ukrainian distiller XDar Vodka is resuming production. The brand, whose name translates to “gift of grain,” is reopening their distillery.

Now, this is all no small feat: XDar Vodka’s distillery is in the Cherkassy region of Ukraine. So, when I say XDar Vodka is a Ukrainian product, I mean they distill their spirits in Ukraine.

This wheat vodka is made using the region’s artesian water. Impressively, the result is a clean vodka that scored 92 points in the 2016 Ultimate Spirits Challenge.

Further, XDar Vodka flies in the face of the “definition” of vodka. Supposedly, vodka is meant to be odorless, colorless, and flavorless. Not XDar.

Instead, tasting notes include wet sand, floral notes, vanilla, cotton candy, burnt sugar, and a touch of sweetness.

And yes, XDar does have distribution in North America via Liquorum Imports, Inc. In addition, XDar can be purchased through Royal Wine Merchants.

Those who want to try XDar Vodka as well as support this tenacious Ukrainian brand can also place orders through Drizly.

Bittersweet Anniversary

2022 marks XDar’s 20th anniversary. Obviously, this is bittersweet for the brand and its 4,400 employees.

To that point, XDar stopped production when Russia attacked Ukraine. However, the distillery continued to pay its workers.

“The people at XDar are committed to their employees,” says Natalya Kolosok of Liquorum Imports, Inc. “They are some of the strongest people in the world.”

Now, the brand is resuming production. According to the distillery, XDar is doing so safely. According to a statement from Kolosok, this is in part due to the desires of the distillery’s team.

“The employees, while grateful for the assistance, don’t just want a check, they want purpose,” says Kolosok. “They want to work, which is why, as safely as possible, XDar opened up their facility to resume production.”

That’s resilience. That’s tenacity. And those characteristics exemplify the people of Ukraine.

Images provided by KLG Public Relations

New Orleans, Louisiana, architecture in the French Quarter

April 5, 2022by David Klemt David Klemt No Comments

TOTC Launches New Philanthropic Committee

TOTC Launches New Philanthropic Committee

by David Klemt

Continuing their growth and commitment to supporting the spirits and hospitality industries, Tales of the Cocktail announces a new committee.

Formerly known as the Grants Committee, this committee will act as an advisory board to TOTC Foundation. In this capacity, the new Philanthropy & Development Committee will guide decisions regarding the TOTCF’s portfolio of philanthropic endeavors.

In launching the Philanthropy & Development Committee, the TOTCF is responding directly to the needs of the spirits community.

Commitment to Philanthropy

Supporting the industry is a TOTCF cornerstone. This commitment was supercharged when the Solomon Group and Neal Bodenheimer, Jr. took over in 2018.

Upon purchasing the rights, the Solomon family and Bodenheimer, Jr. transformed TOTC into a non-profit. Since then, the organization has developed ways to benefit New Orleans and the spirits and hospitality industries.

One major avenue of support came by way of the TOTCF Grants Committee. Their mission was straightforward and lofty: “to support nascent or existing programs, non-profit organizations, and individuals developing a specific project that will impact the global hospitality community present day and beyond.”

In selecting recipients, the Grants Committee reviewed submissions. Recipients needed to support the TOTCF’s core pillars with a focus on diversity, representation, and inclusivity: Advancement, education, and support.

One such recipient that exemplifies the Grant Committee’s work is Turning Tables. From their website:

“Turning Tables advocates for equity in the hospitality industry by providing mentorship, educational tools, and platforms for exposure in a system of support for the black and brown communities of New Orleans.”

New Name, Bigger Mission

To be clear, the Philanthropy & Development Committee is still offering grants. However, the past two years saw the expansion of the Grants Committee’s mission.

In addition to grants, the committee:

provided direct relief to industry professionals;
entered into more non-profit partnerships;
boosted the number of Beyond the Bar activations;
engaged in advocacy and policy efforts;
and expanded mental health and wellness capabilities.

Given the evolution of the committee’s work, transforming to the Philanthropy & Development Committee better communicates the mission.

“I’m really excited about this new era of the committee,” says Philanthropy & Development Committee co-chair Kellie Thorn. “While grant-giving will still be a focus, we will now have the opportunity to diversify the way that we serve the drinks community as well as continue to provide thoughtful insight to the Foundation about our industry.”

Continental Drift and Drift Kitchen owner Eric Bennett co-chairs the committee alongside consultant and educator Thorn. The eleven current committee members are:

Tiffanie Barriere
Chris Cabrera
Claudia Cabrera
Samuel Jimenez
Nandini Khaund
Yisell Muxo
Lisa Nguyen
Chris Patino
Vivian Pei
Kelsey Ramage
Morgan Schick

To learn more about the Philanthropy & Development Committee, click here.

Image: Aya Salman on Unsplash

April 4, 2022by David Klemt David Klemt No Comments

5 Books to Read this Month: April 2022

5 Books to Read this Month: April 2022

by David Klemt

This month’s engaging and informative book selections will help you develop next-level culinary, beverage and marketing skills throughout 2022.

To review February’s book recommendations, click here.

Let’s jump in!

My America: Recipes from a Young Black Chef

This book is scheduled to be released on May 17 of this year. I anticipate this cookbook by Chef Kwame Onwuachi, which includes 125 recipes, to come flying off the shelves. In addition to more than 100 recipes, Chef Onwuachi connects his personal journey to food, culture, and places. Pre-order My America now!

Paddy Drinks: The World of Modern Irish Whiskey Cocktails

Jack McGarry, Sean Muldoon, and Jillian Vose are back with their latest Dead Rabbit book. The trio’s latest release, Paddy Drinks, shares Irish whiskey drink recipes you’ll find on the actual Dead Rabbit menu. However, that’s just one portion of this informative book. Inside are whiskey flavor wheels, tasting notes, illustrations depicting whiskey production, and more. And if that’s not enough for you, David Wondrich provides the foreword.

Founder Brand: Turn Your Story Into Your Competitive Advantage

In Founder Brand, Dave Gerhardt explains why your brand’s story is one of the most valuable assets you own as an entrepreneur.

From the Amazon listing: “This is a tactical guidebook that first shows you how to tell your story, then how to put your story to use as a marketing strategy. You’ll learn how social media provides a bridge between you and your customers, the platforms that are appropriate for your business, and how to measure results to truly determine value.”

Finding Mezcal: A Journey into the Liquid Soul of Mexico

You don’t have to be a veteran bartender or spirits expert to know that mezcal continues to rise in popularity. Written by Ron Cooper, founder of artisanal mezcal brand Del Maguey, Finding Mezcal includes 40 cocktail recipes from bartenders and chefs; photographs; Cooper’s own artwork; and much more.

Bar Hacks: Developing The Fundamentals for an Epic Bar

Industry expert and KRG Hospitality president Doug Radkey wrote this informative and conversational book. This is the perfect read for aspiring or seasoned bar, pub, lounge, or even restaurant owners, operators, and managers looking for that competitive edge in operations. If you’re looking for both fundamental and in-depth planning methods, strategies, and industry focused insight to either start or grow a scalable, sustainable, memorable, profitable, and consistent venue in today’s cut-throat industry, Bar Hacks is written just for you

Image: Mikołaj on Unsplash

Stay Weird neon sign with purple background

April 1, 2022by David Klemt David Klemt No Comments

Stand Out with Weird Holidays: April 2022

Stand Out with Weird Holidays: April 2022

by David Klemt

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 April is no exception. These holidays range from mainstream to “weird.”

Pay attention to the latter 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 last month’s list, click here.

April 1: National One Cent Day

Please, please, please tell me you’re not going to indulge in an April Fool’s Day “prank” today. Instead, consider—if your jurisdiction will allow it—getting rid of dead stock for a penny with a purchase of a food and/or beverage item. You won’t get rich doing it but you also won’t be sitting on stock that’s just taking up space.

April 2: National Handmade Day

An easy riff on “handmade” is “housemade.” So, on this crafty holiday you can easily promote the housemade items on your menu. Make your own bitters? Promote it. Craft your own sauces? Let the world know.

April 6: National Tartan Day

No, it’s not “weird” to wear tartan. And no, it isn’t weird to celebrate anything and everything Scottish. However, this isn’t exactly the best-known holiday, so we’re including it on this list.

This is an easy one: Encourage your guests to wear tartan, take photos, and post it on social media (tagging your business, of course). Create a promo highlighting a Scottish whisky and/or gin and you’ve got a winner.

April 13: National Make Lunch Count Day

It’s fairly easy to celebrate and program on this holiday. The entire point of this day is to make lunch the best meal. Operators, you should know exactly what to do to execute a promo for this holiday.

April 15: National Take A Wild Guess Day

Who among us hasn’t taken a wild guess for a prize? We all know how this works: A jar or a convertible (why not, right?) is filled with jelly beans, gumballs, etc. People guess how many of said item are in said container. The person who guesses the closest wins a prize.

April 19: National Hanging Out Day

Talk about the perfect day to encourage your guests to spend a morning, afternoon, evening or night at your business with their friends. This holiday can be as simple as coming up with a few F&B promotions that will keep butts in seats for a while.

April 23: National German Beer

Hey, can you guess how you should celebrate this day? Hint: The clue is in the name.

April 24: National Pet Parents Day

If you allow dogs and other pets inside your venue or on the patio, this is the time to celebrate pet parents. Just remember when creating your promo that you need to include pet-safe F&B items.

April 27: National Tell a Story Day

As an operator, you know the importance of telling a story. Whether that story is that of your brand’s, a brand you feature, or a food or beverage item, it’s a powerful engagement technique. So, you can use this holiday to tell your brand’s story or encourage your guests to engage by telling their own stories. In fact, this is a great day to help facilitate connections between guests.

April 30: National Sense of Smell Day

Experts estimate that anywhere from 70 to 90 percent of taste is smell. Creating a promotion focusing on our sense of smell can be complicated but the payoff can be huge. So, activate your reps and see how they can help you show your guests the power of their sense of smell.

Image: Dan Parlante on Unsplash

People toasting with a variety of cocktails

March 30, 2022by David Klemt David Klemt No Comments

Prepare for the New Rules of Hospitality

Prepare for the New Rules of Hospitality

by David Klemt

Guests are returning to bars, restaurants, and hotels, so you need to prepare now for the new rules of hospitality.

If you’re wondering what those rules are, wonder no more. We have a number of articles addressing them, some of which are here, here, and here.

Phil Wills, owner and partner of the Spirits in Motion and Bar Rescue alum, also has some thoughts. In fact, Wills shared his approach to what he identifies as the new rules of hospitality last week.

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A post shared by Phil Wills (@phil_i_am11)

During Bar & Restaurant Expo 2022, Wills presented “The New Rules of Hospitality: What a Post-pandemic Consumer Wants.”

Below, you’ll find what Wills has to say about hospitality in 2022 and beyond in three categories.

Hospitality

Wills kicked off his session with a simple question: How do you define “hospitality”? And yes, he put attendees on the spot, asking them for their answers.

It’s always at least a bit amusing that even the most outgoing operator gets shy in a conference setting. I’ve never seen so many people suddenly need to check their phones, shoes, or the ceiling tiles as when they’re asked to participate in a class or education session.

For Wills, the definition is “making a guest feel welcome, as though they’re in your home.”

Obviously, the answer is different for everyone. As Wills says, the key is considering how you and your brand define hospitality. If that seems easier said than done, Wills has some tips, presented in the context of a guest visit.

First, guests take in the sights, sounds, and smells of your space. They also consume your menu items, and converse with your staff, their party, and other guests.

Look at your business through the eyes of your guests. Now, this can be a difficult exercise, particularly if you spend a lot of time in your restaurant, bar or hotel.

So, ask team members to do the same and provide feedback. We take for granted what our spaces, food, and drinks look like.

To improve the guest experience, pay attention to ticket times and F&B consistency. This will reduce recovery incidents and phrases.

Finally, Wills recommends engaging with guests (if that’s what they want). However, he also suggests facilitating connections between guests.

Interestingly, Wills also says, “Regulars are old money. You want to get that new money.” Then, you want to convert that new money into old money. Rinse, repeat.

Training

As relates to training, Wills categorizes new hires in two ways: toll takers and moneymakers.

Toll takers take a toll on your business. They cost you money, and if they don’t receive the proper training they can chase guests away.

So, you’ll need to spend time and money to convert toll takers into moneymakers.

Speaking strictly in a technical sense, training needs to provide team members with the knowledge and tools to become moneymakers. To accomplish this, Wills has three keys to making training stick:

Don’t make training too easy. If training is easy, team members won’t retain what they’re taught. Challenge your staff.
Vary your training. There are a number of training methods at your disposal. Use multiple methods to engage your staff. Wills suggests combining shift work, book work, and tests, at a minimum.
Turn training into a competition. At this point, we’re gamifying just about anything. So, Wills recommends the platform 1Huddle to gamify your training.

Labor

Simply put, Wills says we need to find new ways to make this industry exciting to new hires.

According to the National Restaurant Association, we’re still seeing significant job losses in hospitality, foodservice, and lodging and accommodation.

In fact, we’re down 14 percent when it comes to full-service restaurant jobs. For bars and taverns, the number is 25 percent.

For Wills, offering incentives, mental health breaks, and even cash bonuses for staying in role for a number of months can draw the attention of new workers.

However, he also has another interesting idea: making people smile. On average, according to Will’s research, people smile 20 times each day. He wants to find ways to make people smile 20 times during a single visit to a restaurant or bar.

Now, Wills admits he’s still working on how to accomplish this lofty goal. I believe a key component is creating a working environment that inspires team members to smile 20 times per shift.

Image: Kelly Sikkema on Unsplash

March 29, 2022by David Klemt David Klemt No Comments

The Leasing Game: Terms & Conditions

The Leasing Game: Terms & Conditions

by David Klemt

Understanding the ins and outs of the leasing game means knowing the meaning of several legal and industry terms.

Winning at this game also requires a deep understanding of everything that’s in your lease agreement.

I addressed the importance of negotiating your lease (and more) yesterday. Today, let’s go over the terms you need to know.

A Warning

Before I run down a list of terms (as in phrases), let’s go over other terms you need to understand.

Namely, the terms for which you negotiated before you signed your lease. Let me reiterate: You know all of this before you sign your lease.

Do not sign anything unless you understand every word of every sentence in every paragraph on every page. If that seems overwhelming, pay a lease agreement attorney to analyze and advise you on a lease. It’s worth the spend, and please do this before you sign anything.

Why a lease agreement or real estate attorney? Because a lease agreement is a legal document. You don’t sign legal documents without knowing what’s in them.

Some Context

Based on the number of hospitality professionals that descended on Las Vegas last week, trade shows and conferences are back in full force.

KRG Hospitality attended the 2022 Bar & Restaurant Expo, formerly the Nightclub & Bar Show.

Friends of KRG, Invictus Hospitality (IH), presented a handful of sessions during the show. One of these was “Understanding the Leasing Game & How to Get Ahead.”

As I wrote yesterday, IH principal Homan Taghdiri hosted the informative session. He shared a wealth of knowledge every operator, new or veteran, should know.

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A post shared by Invictus Hospitality (@invictushospitality)

The first bit of information was this: Know that you have the right to negotiate your lease. If someone tells you otherwise, they’re lying or they don’t know what they’re talking about.

As for the second piece of advice, see the section above this one.

Know These Terms

In this context, “terms” means words and phrases. Below is a list of terms that Taghdiri addressed during his session.

Note that I’m not sharing definitions, I’m sharing recommendations from Taghdiri’s session.

Tenant. This is you—individually—if you don’t have a business or other properties for a landlord to go after (sue).
Guarantor. You can negotiate the removal of your personal guarantee. As an example, Taghdiri suggested a clause stipulating if you pay on time for ten years, your personal guarantee is removed. After all, you’ve proven yourself for a decade.
Security deposit. Again, you should be rewarded for proving yourself and your concept. Negotiate a security deposit burn-off, like a month of security deposit removed from every year of the agreement.
Use of space. You need to know the following: current and future use(s) of the space; exclusive and competitive uses; obtaining conditional use permits and licenses. Bake in the ability to pivot, adjust, or modify your agreement. The pandemic exposed how important it is to understand use of space in several markets.
Force majeure. Another element exposed by the pandemic. Including a pandemic specifically as a valid force majeure trigger is a smart move on the tenant’s part.

Moving into the Space

Are you building the space out or is the landlord? Is it a combination of both?

Who’s responsible for delays? Is the landlord responsible for upgrades or refreshes over time?

You need to negotiate for and understand the following:

Premises delivery. When do you get the space? What’s the scope of work that the landlord must complete for delivery of the space? Is there a tenant already in the space? If so, when are they leaving? What if they don’t leave on time?
Landlord’s obligations. Is the landlord responsible for the HVAC, mechanical, electrical, and/or plumbing systems? Are they responsible for the roof on the building, the windows, and maintaining ADA compliance? Who’s responsible for the common areas, such as the parking lot and the lot’s lighting? As an example, how often are they required to repair, refresh, or resurface the parking lot?
Insurance requirements. You need to know what coverage, deductibles, and exclusions you’re agreeing to before you sign your lease. Taghdiri recommends asking for the proposed insurance clause and sending it to your insurance provider. If you can’t afford their insurance requirements, you can’t afford the space and need to walk away.
Miscellaneous. What are the security requirements for the space you’re occupying? For example, if you’re a nightclub, the landlord may stipulate how many security personnel must be working on certain days during specific hours of operation. Speaking of which, what days are you required to be open? What’s the minimum number of hours you must operate each day of the week? Should you find yourself in a shopping center with anchors, what happens if an anchor leaves? Are you required to address sound abatement?

Avoid Pitfalls

Understand the following before you sign anything:

Nobody can force you to sign a lease. Since there’s no such thing as a standard lease, you don’t have to accept whatever the landlord offers. If you don’t like the terms, don’t sign the lease.
Remember, a lease agreement is a legal document. Fully review and understand the terms. Never sign anything blindly.
Brokers aren’t “bad” but they’re not necessarily putting your needs before their own interests. If you’re going to work with a broker, find the right one for you.
Just like you need to find the right broker if you go that route, you need the right legal representation. Legal fees are worth it to understand your lease agreement. Just make sure you’re going to the right person to review it and give you advice.*

Combined with a willingness to negotiate (and walk away if you can’t get the terms you want), an understanding of the terms on this page will put you ahead of the competition. Happy space hunting.

*The information contained in this article does not represent legal or financial advice from any representative of KRG Hospitality, Invictus Hospitality, Bar & Restaurant Expo, or Questex.

Image: BP Miller on Unsplash

March 28, 2022by David Klemt David Klemt No Comments

This is How You Win When Leasing

This is How You Win When Leasing

by David Klemt

At this year’s Bar & Restaurant Expo, the Invictus Hospitality team tackled a crucial step of any project: The lease.

Invictus (IH), friends of KRG Hospitality, know a thing or two when it comes to leasing a space. Principal Homan Taghdiri is a tenacious negotiator.

Case in point, an Invictus project in Orlando that opened during the pandemic. The space was owned by the city, which can certainly complicate matters. Taghdiri sunk his teeth in and refused to let go—for seven months. That’s crocodile or Komodo dragon patience.

The result? Favorable terms and massive cost savings.

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Taghdiri presented “Understanding the Leasing Game & How to Get Ahead” at Bar & Restaurant Expo 2022. You know this show by its former name, Nightclub & Bar.

Knowing that when Taghdiri smells blood in the leasing water he’ll clamp down and death roll until he gets his way, I attended his session.

Before we dive in, know this: If we disagreed with the IH approach to leases, we wouldn’t share their tips. The information below would cost, as Taghdiri points out, about $2,000 coming from an attorney.

Of course, neither KRG Hospitality nor Invictus Hospitality is providing legal or financial advice in this article. I’m just passing along information, as IH was doing during their session.

Leasing Dos and Don’ts

If you take nothing else from this article and Taghdiri’s session, make it this tip: Do negotiate your lease.

“You have to negotiate your lease,” says Taghdiri. “It is a must.”

Not you should. Not you can. You must negotiate your lease. Neither of us can emphasize this enough.

In fact, it’s your right to do so. Which brings us to our first leasing don’t. Do not believe anyone who says you can’t negotiate a lease.

“Anyone who tells you that you can’t negotiate your lease is lying to you,” says Taghdiri.

And if they’re not lying, they just don’t know what they’re talking about. Either way, don’t listen to them. Walk or run away.

Also, do your due diligence. Knowing what you’re getting into before signing is on you. Taghdiri recommends you ask the following before signing anything:

What generation is the space? Is it brand-new? It’s first generation. Did the first tenant leave? It’s second-generation, and so on.
Is the space totally empty?
Does it have space allocated for gas, electric, etc.?

Ideally, you’ll find a second-, third- of fourth-generation bar or restaurant space. Why? They can provide massive cost savings to you.

Do fight for the terms that are important to you. These include amount of the lease, the length of the lease, and any incentives.

However, don’t over-negotiate your lease. Do put yourself in the landlord’s position. They’ve invested significant capital developing the space and they need an ROI. Pick your most important terms and negotiate them. You risk a landlord walking away from a deal if you negotiate every single item and make things difficult.

Lease Types

So, you’ve found your perfect space. Do you know which type of lease you want? Not certain which is right for you?

No problem, because Taghdiri broke them down during his session.

Standard. This is the easiest to explain because it doesn’t exist. A particular landlord may have “standard” lease, but their isn’t one that spans the industry.
Full service gross is the easiest of the actual leases. Everything is negotiated and clear in the lease, and you simply pay the agreed-upon amount.
Triple net is the opposite of the FSG lease. You pay your base rent. Then, your landlord passes on operational costs to you, which you also pay.
Percentage Rent. Basically, this is a hybrid lease. You pay base rent plus a percentage of sales. For example, you may pay natural breakpoint on top of base rent. This type of lease can be beneficial to newer businesses. However, some landlords do not like percentage rent leases.
Modified gross is, basically, any lease that isn’t an FSG. This is the most common lease, and it’s most easily explained as a modified FSG.

First-time operators or owners entering an unproven market will likely want to first focus on modified gross or percentage rent leases. However, FSGs are certainly attractive.

Length of Lease

Landing on a lease amount that you can live with is only part of the battle. Far too many people overlook the length of their lease, focusing too hard on the amount.

So, let’s take a look at some crucial factors you need to consider before signing anything.

Base Term. Let’s say you’ve invested several million dollars into your project. It’s sort of hard to imagine paying that investment off in two years, isn’t it? So, a two-year lease probably isn’t ideal. Give yourself the time you most reasonably need to open your doors and make money. Again, don’t focus solely on the amount of the lease.
Option Periods. Taghdiri explains term options thusly: “Jump into the pool safely before knowing what’s in it.” The real-world example is easy enough to understand. Agree to a three-year lease but bake one or two (or more, if you want or can) five-year renewal options into the agreement. Doing so means that you can trigger the renewal prior to the term’s conclusion. In other words, the landlord won’t be able to (easily) kick you out if you want to keep leasing the space. Just be aware that your landlord will likely also want to bake new terms into the agreement along with the renewal options.
Early Termination Rights. When it comes to this element, Taghdiri explains that this may be limited to longer-term (ten years or more) leases. Essentially, it’s what it sounds like. You should be confident in your concept before you even get to the lease stage. However, it’s not a bad idea to have an early exit plan in mind. So, you may be able to sign up for a long-term lease but bake in an 18- or a 24-month termination clause. Just remember that if you don’t exercise this agreed-upon right within the timeframe, you’ll be responsible for the original term of the agreement.

The Million-Dollar Question

You likely have a burning question searing itself into your brain right now. It’s a common question: “How much rent should I pay?”

There are a few ways to approach a satisfactory answer. The bullshit answer is, “Whatever you can afford for the space you really want.”

That’s the first step toward blowing a budget, blowing out already razor-thin margins, and skyrocketing costs.

One way to approach the how-much question is due diligence and comparables. What are the comps in your selected area? What are people paying in the neighborhood? What’s best for your business, and is that identified in your pro forma?

That said, Taghdiri did present a general lease amount rule. Try to keep your rent at 11 percent of gross sales, or less. Ten percent is even better, obviously. Anything less than that and you’re a master negotiator.

Image: Randy Laybourne on Unsplash

March 25, 2022by David Klemt David Klemt No Comments

Who Was the Legendary King Gambrinus?

Who Was the Legendary King Gambrinus?

by David Klemt

Just who is Gambrinus, the cultural icon beer lovers honor and celebrate on April 11, King Gambrinus Day?

Most simply, he’s an excellent excuse to enjoy a pint. More importantly, he’s a fantastic reason for operators to execute a beer promotion to drive traffic and revenue.

But who was Gambrinus? And was he actually a king?

Let’s dive in!

A King?

Gambrinus may want a word with Budweiser. After all, they’ve claimed the title “King of Beers” since around the 1950s.

If one runs a search for Gambrinus and scans the results quickly, he was a king. Although, other sources identify him as a duke. Or maybe he was a count.

Intriguingly, he’s often referred to as the inventor of beer. Sometimes, he’s lauded as the patron saint of beer.

Gambrinus is also known as the embodiment of joviality, conviviality, and incredible feats of drinking. Legend has it, he could put away 144 beers in a single sitting.

And how did he become credited with this most magnificent of creations? In a completely natural way, of course.

As the totally reasonable story goes, Gambrinus was taught the secret to brewing beer over 500 years ago by the Egyptian gods Osiris and Isis.

However, a German historian has said this character was based on another mythical character: Gambrivius. This German king, who may also have been named Gampar, also learned beer brewing by Isis and Osiris.

In other words…Gambrinus very likely never existed.

Gambrinus, Cultural Icon

Real or (most likely) not, Gambrinus is deeply embedded in beer and brewing culture.

There are breweries, restaurants, and bars that feature Gambrinus—as a king, of course—around the world.

In fact, if one takes a look at a can of Victoria beer, they may find the fabled king in the logo. He’s wearing regal finery and holding a beer aloft, admiring it.

And should anyone find themselves in Porte Alegre, Brazil, they’ll find Restaurante Gambrinus. Guess who the restaurant’s name pays homage to.

Of course, the king has made it America. Reportedly, Pabst Brewing has commissioned at least three Gambrinus statues. The first iteration was crafted in 1967 and is named King Gambrinus, Legendary Patron of Brewing.

So, fine—King Gambrinus Day doesn’t honor a “real” king. Is that such a bad thing? What we’re really celebrating on April 11 is beer itself.

We’re paying homage to brewers, breweries, and beer lovers across the globe. There’s nothing wrong with celebrating what some call the nectar of the gods, and others call the drink of kings.

Before April 11, take a look at your beer menu and program. Review how your bar team pulls and serves a pint. Make certain you know what beer-loving guests want to drink, and have plenty on hand.

Let’s all raise a pint to Gambrinus, king, duke, count, or mythical figure. Cheers!

Image: engin akyurt on Unsplash

Bottles of Glendalough Distillery 7 Year Old Mizunara Finish on top of a barrel

March 23, 2022by David Klemt David Klemt No Comments

Single Malts for International Whiskey Day

5 Single Malts for International Whiskey Day

by David Klemt

In case it isn’t yet obvious, March is full of an array of wonderful cocktail and spirits holidays perfect for restaurants and bar promotions.

So, it’s pretty impressive that we can end this month with International Whiskey Day. Or, if you prefer, International Whisky Day.

Wondering which you should use, “whiskey” or “whisky”? Well, there’s a (mostly) accepted method for distinguishing the two.

As some spirits aficionados and historians explain it, if a country has the letter “E” in its name, so should the word “whiskey.” No “E”? Then it’s “whisky.”

Or, and this may be controversial, you can just use whichever you prefer. Or perhaps use the spelling that’s on your favorite label. Alternately, if executing a promotion with a sponsor, ask their preference and use it.

At any rate, we all get to celebrate uisce beatha (Irish) or uisge beatha (Scottish) on Sunday, March 27.

Below you’ll find some suggestions for bottles to showcase on International Whisk(e)y Day. Cheers!

American Whiskey

Obviously, there’s a glaring issue with trying to choose a single bottle of whiskey to represent the US. In short, there are dozens (at a minimum) of bottles from which to choose.

So, to make things easier (on me, I suppose), I’m limiting this list to single malts. Look, I had to draw a line somewhere.

Honestly, this doesn’t make things incredibly simple. You may find it surprising to learn that the US has the American Single Malt Whiskey Commission (ASMWC). Not only that, but the commission has nearly 100 members.

To promote and protect American single malt, the ASMWC defines this whiskey as:

made from 100-percent malted barley;
produced at one distillery;
mashed, distilled and matured in the US;
matured in 700-liter or smaller oak casks;
distilled to no more than 160 proof (80-percent ABV); and
bottled at 80 proof or more (40-percent ABV).

There are, thankfully, several dozen bottles to choose from to represent American single malt whiskey. For my list, I’m selecting Westward American Single Malt Whiskey Cask Strength.

Produced in Portland, OR, this double-gold winner is the 125-proof version of Westward’s original single malt whiskey. Bold, assertive, rich, and complex, this bottle embodies this American whiskey category.

Canadian Whisky

When it comes to whisky, Canada is known for its blends. Canada’s whiskey world is also known for bold but smooth rye.

However, there are distillers paying homage to their Scottish roots and traditions. These masters of their craft are working hard to put single-malt Canadian whiskies on the map.

In particular, craft distillers in Vancouver are producing single malts that deserve the world’s time and attention.

Now, when it comes to Canadian single malt, I’m a neophyte. However, I believe you and your guests will appreciate my selection.

Commodore Canadian Single Malt Whisky is crafted by Odd Society Spirits. The distillery is located in Vancouver, British Columbia.

Compellingly, Commodore is produced with malted barley grown in BC. Weighing in at 92 proof, expect pepper and tobacco on the palate, balanced with dark fruit and sweetness.

Irish Whiskey

Another country known for its blends is Ireland. Jameson, Bushmills, Red Breast, Powers… Each distillery produces world-famous, revered blends.

However, Ireland crafted several styles of whiskey over the course of many centuries. Single malts were certainly among them.

Of course, that style fell to wayside as the thousands of distilleries in Ireland shut down decades ago. Luckily, some modern-era distilleries are tapping into centuries of Irish distillation history.

Among these is Glendalough Distillery, our guest for episode 71 of the Bar Hacks podcast. Co-founder Donal O’Gallachoir reveals their latest expression, an Irish single malt finished in exceedingly rare Japanese mizunara casks.

So, for my Irish single malt selection, I choose Glendalough 7-Year-Old Mizunara Finished. You can learn more about this bottle and Glendalough listening to the podcast linked above or reading this article.

Scottish Whisky

If it’s difficult to choose just one American single malt whiskey, it’s nearly impossible to land on only a single single malt Scotch.

Do I choose the highest age statement (and an immense price tag)? Is the smart move the “most accessible” bottle? A peat monster?

What about the most traditional bottle? The most experimental? In the end, I opted for a single malt whisky that falls into the latter category.

At this point, we expect to see Oloroso sherry, port, and bourbon cask finishes. What’s a bit more unusual is a rum cask finish.

So, I’m going with the Balvenie Caribbean Cask. This 14-year-old single malt spends 14 years maturing in American oak casks. Then, it’s finished in ex-rum barrels.

The result is a unique and compelling whisky with notes of banana, cocoa, brown sugar, fresh fruit, and toffee.

Australian Whisky

When he started Starward, founder David Vitale had one mission: Craft the whisky that would come to define the entire category. No pressure.

To accomplish this mission, Vitale and company aim to capture Australia’s terroir in every bottle of every expression.

Their barley is sourced in Australian. Local malt masters (malters? maltsters?) malt said barley. The yeast comes from local Australian brewers.

And it doesn’t stop there. Any ingredient used to craft Starward Whisky must be within one day’s drive of the distillery. That distillery is located in Melbourne.

Why Melbourne? Because it’s the Foodie Capital of Australia. Why does that matter? Because Starward is also meant to be enjoyed with food.

You can learn more about Starward and David Vitale on episode 63 of Bar Hacks.

So, which bottle did I choose? Starward’s very first whisky, the single malt Starward Solera. If you and your guests want to experience Australian single malt, this is where to start.

You really can’t go wrong with any of these bottles. If you’re celebrating International Whiskey Day, life is great. Enjoy!

Image: Glendalough Distillery

Sazerac cocktail and mixing glass on bar

March 22, 2022by David Klemt David Klemt No Comments

National Cocktails: Canada & America

National Cocktails: Canada & America

by David Klemt

We’re taking a look at two cocktails that can trace their roots to America and Canada for this year’s National Cocktail Day.

Further, KRG Hospitality has a headquarters in each country. So, we’ll be focusing on the cocktails for which Canada and America are known.

Celebrate National Cocktail Day, March 24, with the recipes below. Cheers!

Canada’s Official Cocktail

Let’s kick things off with Canada. There’s no cocktail with as close an association to the Great White North as the Caesar.

In fact, it’s Canada’s national cocktail. So ubiquitous, it’s woven into the fabric of Canadian pop culture.

Consider this Letterkenny exchange as exhibit A:

Darryl: “I’d have a Bloody Caesar.”

Wayne: “Do you wanna know what? I’d have a Caesar, too.”

Squirrely Dan: “I could have a Caesar if you guys are havin’ Caesars.”

Darryl: “Hard to see a Caesar and not want a Caesar.”

Wayne: “That’s actually how they market Caesars.”

According to cocktail lore, the city of Calgary and province of Alberta get to call themselves the home of the Caesar.

Disputed Origins

As the story goes, Walter Chell invented the cocktail in 1969. Chell was a restaurant manager at the Calgary Inn, now a Westin property.

Oh, wait. There’s also Walter Winchell and the Smirnoff Smiler cocktail. Tracing mentions back to 1953, this drink is made with vodka, tomato juice, clam juice, and Worcestershire sauce.

Hang on… In 1959, Charles Addams—y’know, the creator of the Addams Family—said he created the Gravel Gertie in Manhattan, New York. This cocktail calls for vodka to be mixed with tomato juice, clam juice, and Tabasco sauce.

Well, Chell was onto something when he combined every ingredient in the Smiler and Gertie. To me, this an original that stands far above any perceived predecessors.

Chell also crafted the recipe using a “rule of four”:

one shot of vodka;
two dashes of hot sauce;
three dashes of salt and pepper; and
four dashes of Worcestershire sauce

Prepare a glass with a celery salt or salt and pepper rim. Add ice, then add the above ingredients. Top with Caesar mix (Clamato juice, these days), and garnish with a celery stock and lime.

America’s Unofficial Cocktail

Now, onward to America. So, we don’t have an official national cocktail here. Clearly, our neighbors to the north know how to have more fun.

We have a native spirit—bourbon—but that’s where it ends.

However, we do have New Orleans. And in New Orleans we have the birthplace of American hospitality.

We have something else in New Orleans. In 2008, the Louisiana state senate passed a bill that named an official cocktail for the city.

That cocktail? The Sazerac.

Two Bases, One Drink

Cocktail historians will tell you that there are essentially two recipes for the Sazerac. They’ll also tell you that the origins of this cocktail are under dispute.

Are you beginning to see a pattern with cocktail history? It’s never clear, is it?

First, let’s address the original, assuming it’s America’s first (or at least oldest known) cocktail. From the 1850s to 1870s, it was made with Cognac. And not just any Cognac, Sazerac de Forge et Fils.

Depending on who you ask, either bar owner Aaron Bird or Antoine Amedie Peychaud invented the Sazerac. The cocktail recipe includes two dashes of Peychaud’s Bitters, so it’s easy to understand why some credit Peychaud with creating this drink.

Then, there’s the version that took off in the 1870s. Again, depending on the source, either American tastes changed or a phylloxera outbreak affected Cognac production. Perhaps both are true, converging to alter the Sazerac recipe.

Either way, rye whiskey replaced absinthe, and Herbsaint replaced the absinthe. Some bartenders also substitute bourbon for the rye.

The Recipe

It’s not difficult to make a Sazerac, just like it isn’t difficult to find one in New Orleans.

You’ll need two Old Fashioned (aka rocks) glasses, or one Old Fashioned and a mixing glass.

Rinse a chilled glass with absinthe or Herbsaint, and add ice. In the mixing glass or second glass, add ice, two ounces of Cognac, rye whiskey or bourbon, a half-ounce of simply syrup, and three dashes of Peychaud’s Bitters. Stir until well chilled.

Before straining, discard the ice and any excess absinthe or Hersaint from the prepared glass. Now, strain into prepared glass, express a lemon peel, and use that peel as garnish.

Alternatively, you can split the base and do Cognac and rye or bourbon, paying homage to each version of the Sazerac.

Image: Johann Trasch on Unsplash

March 21, 2022by David Klemt David Klemt No Comments

Share These Vermouth Facts with Guests

Share These Vermouth Facts with Guests

by David Klemt

Today is World Vermouth Day, so here are some interesting facts you and your bar team can share to engage with guests.

Before we dive in, a few vermouth basics.

First, contrary to what some believe, vermouth isn’t a spirit. Rather, vermouth is a fortified wine.

In most cases, vermouth producers boost—or fortify—alcohol content with a neutral grape spirit.

Centuries of History

Vermouth can trace its history back to at least the 16th century. However, it’s possible it goes as far back as 12th century China.

Like so many products behind the bar, the exact origins are in dispute. Some say vermouth is a Chinese creation, some say its home is Greece, crediting Hippocrates with its creation. Still others attribute its invention to Germany.

Regardless, many believe that vermouth is one of the oldest types of beverage alcohol.

Doctor’s Orders

As is the case with plenty of intoxicants, this fortified wine has roots in medicine.

From the 16th century until about midway through the 18th century, Italian vermouth was recommended by doctors to settle upset stomachs.

This makes sense given its makeup: Vermouth is a wine combined with a spirit, infused by roots, herbs, and spices. The array of botanicals found in vermouth can certainly aid in digestion.

In fact, offering vermouth on your menu as an aperitif or digestif is a smart move.

Booze Relatives

You, your bar team, and guests may find this connection interesting. Vermouth and absinthe are family members.

According to some alcohol historians, “vermouth” is a French pronunciation of the German word “wermut.” Wermut translates from German to English as “wormwood.”

Centuries ago, German and Hungarian fortified wines contained wormwood.

An argument can be made that amaro is also a relative of vermouth. While not a requirement, amaro can contain wine. If an amaro has that component, it can technically be a vermouth.

Modern Vermouth

Toward the end of the 18th century, Antonio Benedetto Carpano created what’s now considered modern vermouth.

As the story goes, Carpano was studying to be an herbalist. In 1786, in Turin, Italy, he blended a white muscatel with herbs and spices. Modern vermouth was born.

Owing to modernization and commercialization, some paint vermouth with two broad brushes.

There are those who refer to all red vermouths as Italian vermouths. They then categorize all white vermouths as French. This is, in part, due to the French overwhelmingly producing dry, white vermouths.

Even More Modern

Well, maybe not exactly more modern. Perhaps it would be more accurate to refer to a particular style as “more recently recognized.”

During Prohibition, American producers made vermouth. According to my research, these were not looked upon favorably. In fact, they were considered cheap and poorly made.

That’s not the style I’m talking about here. Starting in the 1990s, and initially attributed to Californian producers, American vermouth production came out swinging with Western Dry.

In general, this style of vermouth leans heavier on the wine and uses different botanicals.

Not Just a Clever Shirt

You have probably seen bartenders or other hospitality professionals wearing this Mover & Shaker shirt:

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In case it doesn’t load for you, it says, “If you’re reading this put vermouth in the fridge.” That’s not a joke—keep it in the refrigerator.

Perhaps due the misconception that vermouth is a spirit, some people treat it as such. In other words, they just leave their vermouths out.

Being a fortified wine, vermouth can go bad in just a few months once open. So, this World Vermouth Day, if you haven’t already, put vermouth in the fridge.

Image: Giorgio Trovato on Unsplash

Tales of the Cocktail Foundation Dame Hall of Fame luncheon

March 18, 2022by David Klemt David Klemt No Comments

Dame Hall of Fame Nominations Open!

Dame Hall of Fame Nominations Now Open!

by David Klemt

Now in its tenth year, nominations are open for the Dame Hall of Fame, honoring individuals who have a positive impact on hospitality.

In particular, the Dame Hall of Fame recognizes people who move accessibility and intersectionality forward.

The Tales of the Cocktail Foundation (TOTCF) and Ladies United for the Preservation of Endangered Cocktails (LUPEC) are accepting nominations until March 30. Currently, there are 42 DHOF members.

On July 29, three inspirational and influential Dames will join their peers. These three individuals will be inducted into the DHOF at the Ritz-Carlton New Orleans.

To nominate a potential inductee, please complete this form.

“We are so proud to be entering our tenth year of Dame Hall of Fame, which has become one of the most revered recognitions of Tales of the Cocktail Foundation,” says TOTCF CEO Eileen Wayner. “The collective magnitude of the Dames is unparalleled, and it is truly our honor to gather such a talented group of individuals, while inducting newcomers who are making a lasting impact on the hospitality community.”

Co-chairs Overseeing Process

The Dame Hall of Fame was first established in 2012. Since then, nearly four dozen of the most influential individuals have been inducted.

More than just an honor, the DHOF encourages continued mentorship. DHOF members seek to further diversity, inclusivity, and equity within the cocktail and hospitality communities.

In 2022, for the first time, two members will co-chair the DHOF. They will each take on this role for a two-term, effective immediately.

Additionally, the co-chairs will oversee this year’s DHOF nomination process. Learn more about each co-chair below.

Kirsten “Kitty” Amann

Kitty has more than fifteen years of experience in the beverage industry as a brand ambassador, cocktail book author, podcaster, publicist, bartender, and spirits writer. She is the New England Market Manager for Uncle Nearest Premium Whiskey and author of Drinking Like Ladies: 75 Modern Cocktails from the World’s Leading Female Bartenders.

In her roles, she is honored to share untold stories of greatness and help the truth find the light. Kitty is a founding member of the Boston chapters of Ladies United for the Preservation of Endangered Cocktails (LUPEC Boston) and the U.S. Bartenders Guild. As a frequent speaker on the history of women behind the bar and in the spirits industry, and has presented at Tales of the Cocktail, The Manhattan Cocktail Classic, Portland Cocktail Week, San Antonio Cocktail Conference, San Francisco Cocktail Week, Speed Rack Academy, and at the Smithsonian.

Kitty has taught yoga in Boston and around the world since 2010. She was among the first in the industry to introduce movement and breathwork to fellow bartenders, servers, and brand ambassadors to support their careers, and has presented at Tales of the Cocktail, The Manhattan Cocktail Classic, Portland Cocktail Week, and for local restaurants and USBG chapters.

Tiffanie Barriere

The bartender’s bartender, Barriere is an influencer and educator who has been awarded some of the beverage industry’s highest honors. The Bar Smart graduate, she is a Tastemakers of the South award-winner who spent seven years as the beverage director of One Flew South, the “Best Airport Bar in the World.”

As an independent bartender, she is known for creative and innovative cocktail menus for pop-dinners and bar consultancy clients, hosting mixology classes around the nation, and connecting culinary and farm culture with spirits. As a leader, she is a member of the Tales of the Cocktail Grants Committee, the James Beard Beverage Advisory Board, and a member of the Atlanta chapter of Les Dames d’Escoffier.

Barriere and her cocktails have been featured in such publications as Imbibe Magazine (print and online), Forbes, Essence, The Bitter Southerner, Cherry Bomb Magazine, Washington Post, Eater, VinePair, Food Republic, and Garden & Gun.

In 2020, Tiffanie was featured on Food Network’s The Kitchen, honored as the Tales of the Cocktail Foundation’s Dame Hall of Fame U.S. Inductee, along with the cover photo of Imbibe Magazine for the “Top 75” issue. The Louisiana-Texas native is the trustworthy mentor of some of the best bartenders and mixologists in the world. Tiffanie’s main goal is education, service and fun with every pour.

Nomination Criteria

In 2022, the three inductees will receive individual awards. There will be a United States inductee, an international inductee, and a Pioneer Award inductee.

Woodford Reserve will present the first two inductees, while The Blend will present the Pioneer Award.

The criteria for nominations is below, provided by the TOTCF:

DHOF US and International Inductees Presented by Woodford Reserve:

In addition to being a woman, non-binary or trans individual, to be considered to be inducted into the US DHOF, nominees must:

be a person whose professional and personal accomplishments have shaped the beverage landscape and provide visible models of achievement for tomorrow’s leaders;
serve as a leader and mentor; and
reside in the United States of America.

In addition to being a woman, non-binary or trans individual, to be considered to be inducted into the International DHOF, nominees must:

be a person whose professional and personal accomplishments have shaped the beverage landscape and provide visible models of achievement for tomorrow’s leaders;
serve as a leader and mentor; and
reside outside of the United States of America.

The Pioneer Award by The Blend:

This award recognizes an individual who has encouraged mentorship and contributed to making the hospitality industry equitable and inclusive by working to remove barriers as it pertains to gender identity, race, religion, and socioeconomic status.

The Pioneer Award, which was named for hospitality trailblazer and New Orleanian Ruth Fertel, will be announced on June 21 in conjunction with the TOTCF Spirited Awards. The recipient of the Pioneer Award will also be inducted into the DHOF during the July 29 Induction Ceremony.

Click here to nominate an individual today!

Image: Corey James Photo

Glendalough Distillery Wild Gin Irish gin

March 16, 2022by David Klemt David Klemt No Comments

8 Glendalough Cocktail Recipes for St. Patrick’s Day and Beyond

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.

by David Klemt

8 Amazing Irish Whiskey and Gin Cocktails

Below, eight refreshing and sophisticated drink recipes made with Glendalough whiskeys and gins. Sláinte!

The Lough Inn

This highball is made with Glendalough Double Barrel, a single-grain Irish whiskey aged in ex-bourbon barrels before being finished in Oloroso sherry casks.

2 oz. Glendalough Double Barrel Single Grain Irish Whiskey
1 oz. Spiced honey syrup (see note)
1 oz. Fresh lemon juice
Soda to top
Lemon wheel or slice to garnish
Mint leaf to garnish
1 cup Honey for spiced honey syrup
0.5 cup Water for spiced honey syrup
4 Cinnamon sticks for spiced honey syrup
1 pod Star anise for spiced honey syrup

Add ice to a highball glass, then add first three ingredients. Top with soda water. Garnish with lemon wheel or slice and freshly torn mint leaf.

For spiced honey syrup: Add honey, water, cinnamon sticks, and star anise to pot. Bring to a boil, then stir. Strain into container.

Pot Still Highball

Deceptively simple to build, this cocktail highlights the terroir of the land surrounding Glendalough Distillery.

1.5 oz. Glendalough Pot Still
Soda to top
Grapefruit peel to garnish
Mint leaf to garnish (freshly torn and slapped, of course)

Prepare a highball glass with an ice shard, spear or cylinder. Pour in Glendalough Pot Still whiskey, then top with soda. Glendalough Distillery recommends a 1:2 ratio, Pot Still to soda. Garnish with mint leaf.

Glendalough Negroni

The foraged botanicals in Glendalough Wild Gin add even more complexity and depth to the classic Negroni. In fact, the flavors work so well this recipe maintains the Negroni’s crucial 1:1:1 ratio.

1 part Sweet vermouth
1 part Campari
1 part Glendalough Wild Gin
Orange peel

Prepare an Old Fashioned with ice. Add first three ingredients to glass in the above order. Add more ice if necessary. Stir, express orange peel, and place as garnish.

Glendalough Wicklow 75

Bubbles make everything better and everyone happier.

35.5 ml Glendalough Wild Gin
20 ml Lemon juice (fresh-squeezed, of course)
10 ml Sugar syrup
Prosecco to top
Lemon twist to garnish

Add all ingredients to shaker. Add ice and shake until well chilled. Strain into Champagne flute, top with Prosecco, and garnish with lemon twist.

Glendalough Rose G&T

This simple classic receives a huge visual and aromatic boost from Glendalough Rose Gin.

2 oz. Glendalough Rose Gin
Tonic to top (the higher the quality, the better)
Lime slice
Mint leaves

Add ice to glass, then add Rose Gin. Top with tonic, and garnish with lime slice and mint leaves.

Glendalough Rose Gin Fizz

One way to elevate the highball is to use a striking pink-hued Irish gin.

1.5 oz. Glendalough Rose Gin
0.5 oz. Elderflower liqueur
Raspberry & Lime sparkling water to top
Lime wheel to garnish

Add ice (spear, shard or cylinder for impact), Rose Gin, and liqueur to highball glass. Stir, then add sparkling water to top. Garnish with lime wheel.

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Glendalough Rose Collins

Boost the classic Collins with Glendalough’s striking rose-petal gin.

1.5 oz. of Glendalough Rose Gin
1 oz. of Lemon juice (freshly squeezed)
0.5 oz. of Sugar syrup (1:1 ratio, hot water to sugar)
Soda to top
Lemon peel to garnish
Cherry to garnish

Combine first three ingredients in a shaker with a cup of ice. Place an ice shard, spear or cylinder to a highball glass. Shake until well chilled, then strain into glass. Top with soda, and garnish with lemon peel and cherry.

Glendalough Hibiscus Rose

Refreshing and flavorful, the hibiscus tea syrup plays incredibly well with Glendalough Rose Gin.

1.5 oz. Glendalough Rose Gin
0.5 oz. Hibiscus tea syrup (see note)
0.5 oz. Lemon juice (fresh squeezed)
Prosecco to top
Dehydrated lemon wheel to garnish
Rose petals to garnish
33 oz. Water for hibiscus tea syrup
16 oz. Sugar for hibiscus tea syrup

Add first three ingredients and ice to a shaker. Shake until well chilled and double strain into a coupe. Top with Prosecco, and garnish with dehydrated lemon wheel and rose petals.

For the hibiscus tea syrup: Steep seven hibiscus tea bags in 33 ounces of water for 15 minutes. Add 16 ounces of sugar.

Images & Recipes: Glendalough Distillery

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Glendalough Distillery 7 Years Mizunara single malt Irish whiskey and glasses

March 15, 2022by David Klemt David Klemt No Comments

Heritage & Innovation: Glendalough

Heritage & Innovation: Glendalough Distillery

by David Klemt

Glendalough Distillery’s five founders are on a mission to honor Ireland’s rich distilling history and heritage.

As Bar Hacks guest Donal O’Gallachoir describes them, the whiskeys Glendalough crafts are remarkably different. O’Gallachoir, co-founder, national brand ambassador, and cheeky bottlewasher, aims to elevate Irish spirits.

More accurately, Glendalough’s founders want to return Irish whiskey to its rightful, historic place. That place? Among the top whiskeys in the world.

As you’ll learn, Glendalough will elevate your St. Patrick’s Day menu. In fact, these whiskeys and gins will elevate your entire menu, period.

Centuries of History

On episode 71 of Bar Hacks, O’Gallachoir briefly but compellingly shares Irish whiskey’s story. As he tells it, it was once estimated Irish whiskey accounted for up to 90 percent of world whiskey consumption.

That’s easy to believe when you factor in how Irish whiskey production can be traced back to at least the sixth century. There’s also the fact that Irish distillers were crafting, as O’Gallachoir puts it, “a wealth of styles.”

Unfortunately, a terrible string of wars—literal and economic—all but eradicated Ireland’s distilleries. When I say eradicated, I mean that when Glendalough Distillery opened in 2011, it became the fourth or fifth distillery in the country.

There used to be 200 licensed distilleries in the country, along with around 1,800 unlicensed distilleries. For decades of the 20th century, there were only two to three licensed distilleries in operation.

So, it makes sense that consumers outside of Ireland think the country produces only one style of whiskey: Irish. Meaning, light-bodied, sweet, and meant to be thrown back as a shot.

O’Gallachoir is well aware of the compelling paradox of modern Irish distillation. If the blended style of Irish whiskey most people know today hadn’t kept the industry alive, Glendalough and its expressions may not exist today.

Distillation Innovation

All Glendalough whiskeys are single malt and chill filtered. This stands in stark contrast to blended Irish whiskeys, the current dominant (modern) style.

Glendalough is, to oversimplify it, honoring centuries of Irish whiskey production. Single-malt Irish whiskey was what we would now label super- or ultra-premium. The difference between Irish and Scotch whiskey was the latter’s smoked, peated profile. The former was once preferred worldwide.

Glendalough is dedicated to crafting super-premium Irish whiskey. Doing so means they don’t make things easy on themselves.

Let’s start with Glendalough’s Double Barrel expression.

As the name suggests, this whiskey is finished twice. First, it’s aged in ex-bourbon barrels. Second, it’s matured in Oloroso sherry casks. Eschewing blends, Glendalough studies the science of different types of barrels to craft its styles.

Of course, they also honor Irish distilling heritage through another expression: Glendalough Pot Still. To say no other style of whiskey embodies Irish production like pot still doesn’t do this distillation method justice.

In fact, Irish pot still whiskey is geographically protected; it can only be crafted in Ireland. However, when it comes to honoring Ireland, Pot Still doesn’t end there.

Glendalough initially ages Pot Still in ex-bourbon barrels. However, it’s finished in Irish oak. Truly, this expression captures the terroir of the mountainous region Glendalough calls home.

In other words, Pot Still is a super-premium taste of Ireland in a bottle.

And then there’s the distillery’s newest expression.

The Red String of Fate

About two weeks ago, Glendalough released their latest innovation: 7-Year-Old Single Malt Mizunara Finish.

Whiskey aficionados will recognize mizunara instantly and begin scheming to add this bottle to their collections.

Mizunara, Japanese oak, is renowned for several reasons. The wood imparts incredible flavors unlike those from other barrels. But, like all things rare and magical, mizunara is also incredibly challenging.

The challenges begin with the trees themselves, which can take hundreds of years to grow fully. This oak doesn’t grow straight, so crafting even one stave can be difficult.

Then there’s the water content. Mizunara translates to “water oak,” and it’s not an ironic nickname. The water content of mizunara is sky high, and it’s also highly porous.

It takes fantastic skill and experience for coopers to craft mizunara barrels that don’t crack or leak. To learn more, please click here to hear O’Gallachoir tell the story of Glendalough traveling to Hokkaido in Japan to form a relationship with an independent cooperage to craft Mizunara Finish casks.

Incredibly, the latest Glendalough expression isn’t a limited-edition release. Rather, this joins the core lineup and will be released twice per year. Be on the lookout for batch 001.

It seems that Glendalough whiskey and mizunara barrel coopers were fated to find one another. In fact, the red thread on each bottle of Mizunara Finish pays homage to the Japanese legend of the red thread of fate.

An invisible red thread connects those who are destined to find one another. It grows shorter and shorter as their paths collide.

Going Wild

You may recall that I said Glendalough doesn’t make things easy on themselves. This is evidenced by their gin.

Unlike other distilleries, Glendalough started with whiskey distillation and later pursued gin production.

They also forage for the ingredients used to craft their Wild Gin. If it’s not within ten miles of the distillery and growing wild, it’s not in the bottle.

According to O’Gallachoir, it takes a year to produce one bottle of this gin. Rejecting easier methods of production like automation, each batch of Wild Gin is crafted by taste and aroma.

Then there’s the visually and aromatically impactful Rose Gin. Crafted to honor Glendalough’s head distiller’s mother Rose, this is a rose-petal gin.

Now, you may assume it’s like drinking a bottle of decades-old, overpowering, rose-scented perfume. However, O’Gallachoir assures me this is absolutely not the case.

Instead, this striking bottle is intensely floral but balanced, and undeniably unique. O’Gallachoir suggests trying it in a Bee’s Knees.

In just over a decade, Glendalough has elevated Irish craft spirits. There are more innovations to come and I can’t wait to try them.

To learn more about O’Gallachoir and Glendalough Distillery, please listen to episode 71 of the Bar Hacks podcast.

Image: Glendalough Distillery