Restaurant Operations | KRG Hospitality

Cocktails with edible flowers and dehydrated fruit for garnishes

September 26, 2024by David Klemt David Klemt No Comments

Are “Substituters” Leading NA Growth?

Are “Substituters” Leading NA Growth?

by David Klemt

No-ABV, low-ABV, or full strength?

Revelations shared by the IWSR recently suggest that the very generation driving non-alcohol growth may also be driving traditional beverage alcohol growth.

At least, according to the IWSR, a particular generation is over-indexing in the non-alc category and “full-strength” categories such as rum, whisky, Champagne, brandy and Cognac, and RTDs.

This is because Millennials—there it is, the big reveal—appear to be “substituters.” That is, as explained by the IWSR, much of this cohort consumes alcohol on some occasions, and non-alc beverages on others.

Now, before we proceed, let me get this out of the way: No generation is a monolith. While there’s value in understanding a given generation’s behavior, it’s important to understand that we can really only do so in broad terms.

That said, broadly speaking, members of the Millennial generation appear to be driving the growth of non-alc overall. In comparison to other generations, Millennials are consuming more non-alc spirits, more non-alc beer, and more non-alc wine.

Of course, there’s another caveat I must address: Less than half of Gen Z is of legal drinking age. So, when compared to that generation, the numbers are a bit skewed.

Generally speaking, non-alc is growing across the board in the US. What was once relegated to two or three low-alc beers and barely considered “mocktails” for many, many years is now a viable category. The category has gone from an afterthought to inspiring entire alcohol-free bar concepts, and it hasn’t taken long to achieve this growth.

Numbers

When I say Millennials are consuming more non-alc than other generations, what does that mean? Is the difference subtle, or is it eyebrow raising?

Per IWSR data, it’s the latter.

Last year, 45 percent of all non-alc beer drinkers in the US were Millennials. That number has jumped to 61 percent in 2024. Change focus to non-alc spirits and Millennials make up 66 percent of overall US consumers. That number is 59 percent when we look at who’s drinking non-alc wine.

For some context, just 22 percent of non-alc beer drinkers in the US are Gen X. Take a look at legal-drinking-age Gen Z and that number shrinks to seven percent. Again, though, most of Gen Z isn’t yet LDA.

So, back to substituters. Just under half of all Millennials, according to IWSR findings, vacillate between non-alc and full-ABV. It would appear, then, that Millennials are the most interested in exploring and experimenting with non-alc beverages.

For obvious reasons, this makes it clear that operators need to do more than just toss a couple of alcohol-free beers and sugary zero-proof cocktail concoctions on their menus.

Further, and I know I’m repeating myself, operators need to ensure they deliver the same level of service and guest experience for those abstaining from alcohol as those ordering traditional adult beverages. Failing to do so can alienate guests who choose to not consume alcohol but want to visit and socialize at a bar or restaurant. Why would they return if they receive what they perceive to be a lower level of service?

IWSR’s deep dive and data make it clear that operators need to give the non-alc element of their menu due consideration. The category is growing, interesting is increasing, and it’s smart business.

To review this data yourself, follow this link.

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September 25, 2024by David Klemt David Klemt No Comments

Designing a Safe and Functional Kitchen

Designing a Safe and Functional Kitchen: Essential Considerations and Innovations

by Nathen Dubé

Sharp knives, fire, boiling water, and steam are just some of the dangers present inside a commercial kitchen.

The kitchen is the heart of any culinary establishment, but it is also a high-risk environment where safety and functionality are paramount.

Designing a safe and functional kitchen is crucial for protecting staff, ensuring efficient operations, and complying with legal standards.

This comprehensive guide delves into the essential elements of safe kitchen design, explores innovative safety technologies, and provides expert insights and practical checklists to guide your planning process.

Key Elements of a Safe Kitchen Design

Importance of a Well-Planned Layout and Workflow

A well-planned kitchen layout is the foundation of a safe and efficient kitchen. It minimizes hazards, enhances workflow, and reduces the risk of accidents.

Key considerations include:

Zoning: The separation of prep, cooking, and cleaning areas to prevent cross-contamination and ensure a logical workflow. Each zone should be clearly defined, and equipped appropriately to handle its specific tasks.
Ventilation: Adequate ventilation is essential to remove smoke, steam, and odors, ensuring a comfortable and safe working environment. Proper ventilation reduces the risk of respiratory issues, and maintains air quality.
Lighting: Sufficient lighting is crucial for visibility and safety. Well-lit workspaces reduce the risk of accidents, and help staff perform their tasks more effectively.

Effective zoning enhances kitchen safety and efficiency by minimizing the risk of cross-contamination, and streamlining workflow.

Key zones include:

Preparation Area: Should be equipped with ample counter space, cutting boards, and sinks for washing and prepping ingredients.
Cooking Area: Must include stovetops, ovens, and grills, with proper ventilation and fire safety equipment.
Cleaning Area: Should have dishwashers, sinks, and waste disposal units, and be separated from food prep and cooking zones to maintain hygiene.

The Role of Adequate Ventilation and Lighting

Proper ventilation and lighting are critical for maintaining a safe kitchen environment.

Effective ventilation systems remove harmful fumes and excess heat, while strategic lighting ensures that all work areas are well-illuminated to prevent accidents, and improve productivity.

Innovations in Safety Equipment and Technology

Overview of Modern Safety Equipment

Modern safety equipment has advanced significantly, providing better protection and efficiency.

Innovations include slip-resistant flooring, advanced fire suppression systems, and kitchen appliances with built-in safety features.

Slip-Resistant Flooring Options

Slip-resistant flooring is essential for preventing falls and injuries in the kitchen.

Options include:

Vinyl Flooring: Durable and easy to clean, with textured surfaces to enhance grip.
Rubber Flooring: Provides excellent slip resistance and comfort underfoot, reducing fatigue.
Epoxy Coatings: Applied over concrete floors to create a seamless, non-slip surface.

Fire Suppression Systems and Alarms

Fire safety is paramount in commercial kitchens. Modern fire suppression systems and alarms include:

Automatic Fire Suppression Systems: Installed above cooking equipment, these systems detect and extinguish fires quickly.
Heat and Smoke Detectors: Provide early warning of fire hazards, allowing staff to take immediate action.
Fire Extinguishers: Should be readily accessible, and maintained regularly.

Advanced Kitchen Appliances with Built-In Safety Features

Many modern kitchen appliances come with built-in safety features, such as:

Automatic Shut-Offs: Appliances that turn off automatically if not in use, preventing overheating and fire risks.
Lock Functions: Prevent unauthorized use, and accidental injuries.
Temperature Controls: Ensure precise cooking temperatures, reducing the risk of burns and overcooking.

Technology’s Role in Enhancing Kitchen Safety

Technology plays a significant role in enhancing kitchen safety.

Innovations include:

Smart Appliances: Connected devices that can be monitored and controlled remotely, providing alerts for potential issues.
Sensor-Based Systems: Detect hazards such as gas leaks or equipment malfunctions, and notify staff immediately.
Digital Checklists: Help staff follow safety protocols, and perform regular maintenance checks.

Ergonomics and Staff Efficiency

Importance of Ergonomic Design in Reducing Physical Strain

Ergonomic design is crucial for reducing physical strain, and preventing injuries in the kitchen.

Key elements include:

Adjustable Workstations: Allow staff to work at comfortable heights, reducing back and neck strain.
Anti-Fatigue Mats: Provide cushioning underfoot, reducing fatigue during long shifts.
Proper Equipment Placement: Ensure frequently used items are within easy reach to minimize repetitive strain injuries.

Examples of Ergonomic Equipment and Tools

Ergonomic equipment and tools enhance comfort and efficiency, including:

Ergonomic Knives: Designed with comfortable handles to reduce hand fatigue, and improve precision.
Adjustable Shelving: Allows for easy access to ingredients and equipment without excessive bending or stretching.
Height-Adjustable Tables: Enable staff to work at optimal heights, reducing the risk of musculoskeletal injuries.

Layout Considerations to Minimize Unnecessary Movement and Fatigue

A well-designed kitchen layout minimizes unnecessary movement and fatigue by:

Streamlining Workflow: Arranging equipment and workstations in a logical sequence to reduce walking and reaching.
Clear Pathways: Ensuring aisles are wide enough for safe movement, and free from obstructions.
Efficient Storage Solutions: Placing frequently used items within easy reach to minimize bending and stretching.

Legal and Regulatory Compliance

Overview of Legal Requirements for Commercial Kitchen Safety

Compliance with legal and regulatory requirements is essential for kitchen safety.

These regulations are designed to protect staff and guests, and include health and safety codes, fire safety standards, and more.

Key Regulations

Health and Safety Codes: Outline requirements for cleanliness, sanitation, and food-handling practices.
Fire Safety Standards: Specify the installation and maintenance of fire suppression systems, alarms, and extinguishers.
Building Codes: Ensure that kitchen design and construction meet safety standards for ventilation, lighting, and electrical systems.

Importance of Staying Updated with Local and National Regulations

Staying updated with local and national regulations is crucial for maintaining compliance and ensuring safety. Review and update safety practices regularly to align with the latest guidelines and standards.

Key Takeaways and Recommendations

Prioritize Safety: Make safety a core value in your kitchen design, and operations.
Regular Training: Ensure staff are trained on safety protocols, and the proper use of equipment.
Continuous Improvement: Review and update safety practices regularly to incorporate new technologies and regulations.

Examples of Innovative Solutions and Best Practices

Innovative solutions and best practices from case studies include:

Smart Technology Integration: Using connected devices to monitor kitchen safety and performance in real-time.
Sustainable Design: Incorporating eco-friendly materials and energy-efficient appliances to create a safer and more sustainable kitchen environment.

Checklist for Ensuring Safety in Kitchen Planning

Layout and Zoning: Ensure a logical workflow with separate zones for prep, cooking, and cleaning.
Ventilation and Lighting: Install adequate ventilation and lighting to maintain air quality and visibility.
Safety Equipment: Include slip-resistant flooring, fire suppression systems, and advanced appliances with safety features.
Ergonomics: Implement ergonomic design elements to reduce physical strain, and enhance efficiency.
Regulatory Compliance: Ensure compliance with health and safety codes, fire safety standards, and building regulations.

Key Considerations and Must-Have Elements

Regular Maintenance: Perform regular maintenance on equipment and safety systems to ensure they are functioning properly.
Staff Training: Provide ongoing training on safety protocols, and the proper use of equipment.
Safety Audits: Conduct regular safety audits to identify and address potential hazards.

Tips for Regular Safety Audits and Assessments

Scheduled Inspections: Conduct scheduled inspections to check the condition of equipment, ventilation, and safety systems.
Hazard Identification: Identify and address potential hazards, such as slippery floors, obstructed pathways, and faulty equipment.
Documentation: Keep detailed records of safety audits, maintenance, and staff training to ensure accountability and compliance.

Conclusion

Designing a safe and functional kitchen requires careful planning, attention to detail, and a commitment to ongoing safety practices.

By prioritizing safety in kitchen design and operations, you can protect your staff, enhance efficiency, and create a better working environment. Remember to stay updated with the latest regulations, invest in modern safety equipment, and train your staff on safety protocols continuously.

With these considerations in mind, you can design a kitchen that not only meets but exceeds safety standards, ensuring a productive and secure culinary space.

Safety should never be an afterthought in kitchen planning. It is an integral part of creating a functional and efficient workspace. Following the guidelines and tips outlined in this article will help you design a kitchen that supports the well-being of your staff, satisfaction of your guests, and the success of your culinary operations.

Image: Microsoft Designer

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September 24, 2024by David Klemt David Klemt No Comments

The Modern Approach to Systems: Part 2

The Modern Approach to Systems: Part 2

by Doug Radkey

Six Sigma is a data-driven methodology that focuses on reducing variability and defects in processes to improve overall quality and efficiency.

The term “Six Sigma” refers to a statistical measure that indicates a process is nearly perfect, with only 3.4 defects per million opportunities. This is a methodology that aims to streamline operations, reduce waste, and enhance guest satisfaction by eliminating errors and inconsistencies systematically.

If you want to learn more about the Kaizen approach, please refer to part one of this series, in which we outline the definition and case-study use of Kaizen in bars, restaurants, and hotels.

Introduction to Six Sigma

The concept of Six Sigma was developed by Motorola in the 1980s as a means to improve manufacturing processes and product quality.

Its development was driven by the need to meet the increasingly stringent quality standards in the electronics industry. Motorola’s success with Six Sigma prompted other companies to adopt the methodology, most notably General Electric (GE).

Under the leadership of CEO Jack Welch, GE refined and expanded Six Sigma principles, applying them across various business units to achieve significant cost savings, and quality improvements. This broader application demonstrated the versatility of Six Sigma, making it relevant across industries beyond manufacturing.

The core concepts of Six Sigma revolve around a structured problem-solving framework known as DMAIC, and a strong emphasis on data-driven decision-making. These elements are crucial for identifying inefficiencies, implementing improvements, and sustaining high-quality outcomes.

Framework

The DMAIC framework is the backbone of the Six Sigma methodology, providing a systematic approach to process improvement.

It consists of five phases:

Define: In this phase, the project team identifies the problem, defines the project scope, and sets specific goals. This includes understanding guest requirements and expectations, which are crucial for ensuring that improvements align with guests needs.
Measure: The measure phase involves collecting data on the current process to establish a baseline. Key performance indicators (KPIs) are identified, and data collection methods are standardized to ensure accuracy and consistency. This phase is crucial for quantifying the extent of the problem, and providing a foundation for analysis.
Analyze: In the analyze phase, the collected data is examined to identify root causes of defects or inefficiencies. Statistical analysis tools, such as regression analysis and hypothesis testing, are used to uncover correlations and patterns. This phase helps isolate the factors contributing to variability and defects.
Improve: Based on the insights gained from the analysis, the project team develops and implements solutions to address the root causes. This phase may involve redesigning processes, implementing new technologies, or training staff. The goal is to reduce variability, eliminate defects, and enhance process efficiency.
Control: The final phase focuses on sustaining the improvements made. Control measures are put in place to monitor the process, ensuring that changes are maintained, and that the process does not revert to its previous state. This may include implementing control charts, conducting regular audits, and setting up a response plan for any deviations.

Six Sigma’s emphasis on data-driven decision-making sets it apart from other quality improvement methodologies. By relying on empirical data and statistical analysis, Six Sigma users can make objective decisions based on facts rather than intuition.

Belt System

A unique aspect of Six Sigma is its structured certification system, represented by different belt levels, similar to martial arts.

These belts denote varying levels of expertise and responsibility in Six Sigma methodologies:

Yellow Belt: Yellow Belts have a basic understanding of Six Sigma principles, and assist in data collection and process mapping within their work areas.
Green Belt: Green Belts work on Six Sigma projects part-time while performing their regular job duties. They lead smaller projects, and support Black Belts in data analysis and project implementation.
Black Belt: Black Belts are full-time Six Sigma professionals who lead major projects, mentor Green Belts, and drive process improvement initiatives. They possess advanced statistical analysis skills, and a deep understanding of Six Sigma methodologies.
Master Black Belt: Master Black Belts are highly experienced Six Sigma experts who provide strategic direction, mentor Black Belts, and oversee large-scale improvement projects across the organization. They play a crucial role in developing Six Sigma strategies, and ensuring alignment with organizational goals.
Champion: Champions are senior executives who sponsor Six Sigma projects, and ensure they align with the organization’s strategic objectives. They provide the necessary resources and support to ensure project success.

In summary, Six Sigma is a robust methodology focused on reducing variability and defects through a structured, data-driven approach.

The DMAIC framework guides project teams through problem identification, solution implementation, and control, ensuring sustainable improvements. The certification system, with its various belt levels, provides a clear path for professional development and project management within the Six Sigma framework.

As a result, Six Sigma has become an essential tool for organizations seeking to enhance quality, efficiency, and guest satisfaction.

Applying Six Sigma to the Industry

Through the use of data-driven techniques and structured problem-solving frameworks, Six Sigma helps hospitality businesses optimize processes, enhance quality, and deliver exceptional guest experiences.

Below, I explore the application of Six Sigma in bars, restaurants, and hotels, highlighting specific areas of improvement.

Six Sigma in Bars

Analyzing Beverage Preparation Times: Six Sigma methodologies can be used to analyze the time taken to prepare various drinks, identify bottlenecks, and streamline processes. By collecting data on preparation times and using tools like time-motion studies, bars can pinpoint inefficiencies in their workflow. For instance, rearranging the bar layout, standardizing drink recipes, or optimizing the order in which ingredients are prepared can reduce preparation times. The reduction in prep time leads to faster service, happier guests, and more profits.

Reducing Waste and Improving Inventory Management: Six Sigma tools such as a root-cause analysis can help identify common sources of waste, such as over-pouring, spoilage, or theft. Bars can maintain accurate stock levels, reduce over-ordering, and minimize losses through the implementation of standardized inventory tracking systems, and the conducting of regular audits. Additionally, Six Sigma’s emphasis on data analysis can guide purchasing decisions, ensuring that inventory is aligned with actual demand.

Enhancing Guest Service: Six Sigma can be used to develop and implement comprehensive training programs that cover all aspects of service, from drink preparation to guest interaction. Bars can ensure that all employees provide a uniform level of service by setting clear performance standards, and evaluating staff regularly against this set of criteria. This consistency not only enhances the experience but also strengthens your brand’s overall equity.

Six Sigma in Restaurants

Improving Order Accuracy and Reducing Wait Times: Six Sigma methodologies can optimize the entire order-to-delivery process, from taking orders to serving food. Process mapping and flowcharts can identify potential errors or delays in the process, such as miscommunication between front-of-house and kitchen team. Implementing technology solutions such as digital ordering systems or kitchen display screens (KDS) can reduce these errors, and streamline communication. Additionally, Six Sigma’s data-driven approach can help restaurants analyze peak times and adjust staffing levels accordingly, reducing wait times and improving service efficiency.

Implementing Quality Control Measures: Six Sigma can establish quality control measures for food preparation and presentation, ensuring that each dish meets established standards. This includes defining portion sizes, cooking temperatures, and plating guidelines. Regular quality checks and guest feedback can help maintain these standards and identify areas for improvement. By reducing variability in food quality, restaurants can enhance guest satisfaction, and build a more loyal base of targeted guests.

Six Sigma in Hotels

Reducing Check-In/Check-Out Times: Six Sigma can optimize these procedures by analyzing data on check-in/check-out times, and identifying factors that cause delays. For instance, complex booking systems, insufficient staffing, or lengthy verification processes can all contribute to longer wait times. Streamlining these procedures, such as implementing mobile check-in options or express check-out services, can reduce wait times, and enhance the overall guest experience.

Enhancing Guest Satisfaction: Six Sigma can help establish and maintain high standards for room cleaning and upkeep. This involves defining cleaning protocols, setting time standards for housekeeping tasks, and inspecting rooms regularly for quality assurance. By using control charts and other Six Sigma tools, hotels can monitor the consistency of their housekeeping services, and address any deviations quickly. This attention to detail ensures that guests receive a high level of service consistently, contributing to positive reviews and repeat business.

Analyzing and Reducing Service Errors and Complaints: Service errors and complaints can impact a hotel’s reputation and guest satisfaction negatively. Six Sigma can help hotel operators analyze service errors systematically, including incorrect billing, room assignment issues, or poor guest services. Hotels can implement targeted improvements to prevent future occurrences by categorizing complaints, and identifying their root causes. This might include additional staff training, process adjustments, or technology upgrades. Addressing service issues proactively allows hotels to enhance the overall guest experience, and reduce the likelihood of negative reviews.

In conclusion, Six Sigma provides a structured and data-driven approach to improving operations in the hospitality industry. Whether in bars, restaurants, or hotels, this methodology helps businesses streamline processes, reduce variability, and deliver high-quality experiences to their customers.

Hospitality businesses can achieve operational excellence—and gain a competitive edge in a dynamic and demanding market—by embracing and implementing Six Sigma.

Benefits of a Systematic Approach

While Six Sigma and Kaizen are distinct methodologies with unique strengths, combining these approaches can provide a comprehensive framework for achieving operational excellence in the hospitality industry.

Together, they offer a balanced focus on both long-term strategic improvements and continuous, incremental changes, addressing various aspects of business operations.

Here, I explore how these methodologies can be integrated, and the benefits of leveraging both to enhance your brand’s performance.

How to Integrate Six Sigma and Kaizen

Six Sigma: Focuses primarily on identifying and eliminating defects, reducing variability, and optimizing processes through a structured, data-driven approach. It is particularly effective for tackling complex, high-impact issues that require deep statistical analysis and root-cause identification.
Kaizen: Emphasizes continuous improvement through small, incremental changes. It encourages a culture of employee involvement and teamwork, focusing on making everyday processes more efficient and effective.

Sequential Implementation

Start with Six Sigma to address critical issues, and achieve significant breakthroughs in process efficiency and quality. The DMAIC framework can be used to tackle complex problems, ensuring that major defects and inefficiencies are identified, and resolved.

Follow up with Kaizen to maintain the momentum of improvement. Once the significant issues are addressed, Kaizen can help sustain the gains by fostering a culture of continuous improvement.

This approach ensures that even minor inefficiencies are regularly identified and addressed.

Parallel Application

In some cases, Six Sigma and Kaizen can be applied simultaneously to different areas of the business.

For instance, Six Sigma can be used to optimize high-priority processes such as inventory management and order accuracy, while Kaizen initiatives focus on enhancing guest services and staff engagement.

Comprehensive Improvement

By combining Six Sigma’s analytical rigor with Kaizen’s focus on incremental change, your hospitality business can achieve comprehensive improvement(s).

Six Sigma addresses large-scale, systemic issues, while Kaizen ensures that smaller, day-to-day improvements are made consistently. This dual approach covers a wide spectrum of operational challenges, leading to more holistic development.

Enhanced Employee Engagement

Kaizen’s emphasis on involving all employees in the improvement process complements Six Sigma’s structured project management approach at the leadership level. This combination fosters a sense of ownership and accountability among staff at all levels.

Employees are encouraged to contribute ideas and solutions, creating a more inclusive and engaged workforce. The involvement of employees in both large-scale Six Sigma projects and smaller Kaizen initiatives ensures that everyone is invested in the organization’s success.

Flexibility and Adaptability

The integration of Six Sigma and Kaizen allows businesses to be more flexible and adaptable. Six Sigma provides a robust framework for addressing well-defined, complex problems, while Kaizen offers a more flexible, grassroots approach to managing change.

This adaptability is crucial in the hospitality industry, where market conditions and guest expectations can change rapidly. Businesses can respond more effectively to new challenges and opportunities by using both methods.

Balanced Approach to Cost and Efficiency

Six Sigma’s focus on reducing defects and variability often leads to cost savings through improved efficiency, and reduced waste. Kaizen, on the other hand, emphasizes optimizing everyday processes, which can lead to incremental cost reductions and efficiency gains.

Together, they provide a balanced approach to cost management, ensuring that both significant and minor inefficiencies are addressed.

To the Future

As the hospitality industry continues to evolve, the future of systematic approaches like Six Sigma and Kaizen holds promising potential for further innovations and advancements.

With the increasing integration of technology, such as AI-driven analytics and automation, these methodologies are set to become even more powerful tools for optimizing operations, and enhancing guest experiences. The future will likely see more sophisticated data analytics capabilities, enabling real-time decision-making and predictive insights that can address issues preemptively, before they impact guests.

Additionally, the focus on sustainability and ethical business practices will drive the development of new strategies that not only improve efficiency but also reduce environmental impact.

Moreover, the rise of remote work and digital collaboration tools for larger hospitality groups and portfolios will make it easier for global teams to implement and sustain these systematic approaches, regardless of geographical location. This shift will further democratize access to best practices, allowing even smaller hospitality businesses to compete on a larger scale by adopting proven methodologies.

Simplify the Journey

In light of these advancements, we encourage hospitality businesses to embrace Six Sigma and Kaizen as integral parts of their operational strategy.

Adopting these methodologies helps businesses to improve processes, reduce costs, and enhance the quality of service systematically. This not only leads to immediate benefits, such as increased guest satisfaction and loyalty, but also positions businesses for long-term success in a dynamic and competitive market.

The journey toward operational excellence is continuous, and the integration of these systematic approaches can be a game-changer. As the industry moves forward, those who invest in these methodologies will be better equipped to adapt to new challenges, and seize emerging opportunities.

We urge hospitality businesses to take action now, leveraging Six Sigma and Kaizen to build a resilient, efficient, and guest-focused operation that stands the test of time.

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An AI-generated image of three pint glasses filled with beer sitting on Canadian flag coasters on a picnic table, with a mountain, lake, and Canadian flag in the background

September 23, 2024by David Klemt David Klemt No Comments

Raise Your Glass to Canadian Beer Day

Raise Your Glass to Canadian Beer Day

by David Klemt

This is an AI-generated image, but I still want to visit and drink those beers.

Operators and their guests will raise their glasses and celebrate Canadian beer on October 9, also known as Canadian Beer Day.

This year represents the sixth-annual Canadian Beer Day. Beer Canada created the holiday, with first event launching in 2019.

Not only does this beer-centric holiday honor one of the world’s most-popular drinks, it’s a day to observe its impact on Canada. According to the Beer Canada website, which is an excellent resource that I recommend everyone visit, brewers in the country employ 21,000 Canadians directly.

Zoom out and that number jumps to nearly 150,000 Canadians overall. There are farmers, bartenders, retailers, truckers, designers, and many other people whose employment relies on beer production. Further, almost 90 percent of beer purchased in Canada is brewed locally.

Each year, Beer Canada crafts a theme to go along with Canadian Beer Day. This year, that theme celebrates the cultural significance of the nation’s beer culture.

As an American, I think I’m qualified to say that people have seemed more divided over the past decade than in recent memory. At least, that’s what we’re often being told in the US, Canada, and other countries.

But think about how powerful gathering in pubs and bars has been for breaking down barriers. Having a beer with a stranger and finding middle ground can lower temperatures, and go a long way toward healing communities.

We should all strive to get back to that simple, comforting practice.

“Local” Impact

I may date myself a bit here but I remember the first Canadian beer I ever tried. Growing up in the Midwest in America, it was common to have friends who visited or had family and friends in Canada.

One day in the Nineties, some friends of mine and I got into a lighthearted debate about beer. One of our friends, who had just come back from a trip to Canada, scoffed at our light American pilsners and lagers, stating that we were essentially drinking water.

Then, he opened a cooler and pulled out bottles of Moose Drool Brown Ale. Not long after that moment, I’d be introduced to Moosehead and Labatt.

I still think about that first sip of Moose Drool, particularly when a beer debate heats up. I’m just one person but Canadian beer has had an impact on little old American me.

Canadian Beer

Head to Montréal, Québec, and you can visit the Talon Vaults, the archaeological remains of Canada’s first commercial brewery.

This important bit of beer-brewing history dates back to the late 1660s, when La Brasseries du Roy was opened by Jean Talon in Québec City. However, beer brewing in Canada dates back to at least the 1620s.

In 1786, the legendary John Molson established the Molson Brewery, also in Québec City. I think we all know how significant the Molson story is to Canadian beer.

Today, there are more than 1,300 breweries operating and employing people across Canada. Most are located in Ontario, Québec, British Columbia, and Alberta. Although, there at least a single brewery in every province. For example, there’s one brewery in the Northwest Territories, and one in Nunavut.

Per Statista data, the Canadian beer industry generated $18.43 billion (US $13.6 billion) in 2023, with $7.8 billion (US $5.8 billion) coming from restaurants and bars.

Those are big numbers being put up by just 1,300 breweries.

Celebrate in Style

Along with having a beer and getting to know someone, a great beer and food pairing can improve your day.

So, I asked Nathen Dubé, our chef consultant at KRG Hospitality, for some of his favorite beer pairings. And, wow, did he deliver.

Check out his recommendations below, and consider using them for a Canadian Beer Day limited-time-offer menu.

Let’s start with his favorite personal pairing.

“One of my favorite beer and food pairings is a robust, malty, Canadian brown ale with a perfectly grilled bison burger topped with aged cheddar, caramelized onions, and a touch of maple bacon,” says Nathen. “The rich malt character of the brown ale complements the hearty, gamey flavor of the bison, while the subtle sweetness from the caramelized onions and bacon plays beautifully with the ale’s caramel notes. The cheddar adds a creamy, sharp contrast, making each bite and sip a delightfully balanced experience.”

Now, let’s jump into Nathen’s LTO suggestions. This Canadian Beer Day, he recommends crafting unique, gourmet poutines.

Traditional Poutine

Beer Pairing: Local Pale Ale

Description: Hand-cut fries topped with squeaky cheese curds and a rich beef gravy. The pale ale’s mild bitterness cuts through the gravy’s richness, while its effervescence balances the cheese’s creaminess.

Butter Chicken Poutine

Beer Pairing: Indian Pale Ale (IPA)

Description: Fries smothered in creamy, spiced butter chicken sauce, topped with fresh cilantro and a dollop of yogurt. The hoppy and citrusy notes of the IPA enhance the spices in the butter chicken, creating a vibrant and aromatic pairing.

Pulled Pork BBQ Poutine

Beer Pairing: Smoked Porter

Description: Crispy fries loaded with slow-cooked pulled pork, tangy BBQ sauce, and cheddar cheese. The smoked porter’s roasted malt flavors complement the smoky pork, while its subtle sweetness balances the BBQ sauce’s tang. This poutine can be—or rather should be—prepared and served individually. As a general, Nathen always thinks the darker the beer, the stronger the cheese. On the other flavor profile side, the lighter/fruitier beer, the lighter the cheese.

Be sure to add these tempting poutines to your LTO menu, and visit the Canadian Beer Day website to download their digital and social media assets. Cheers!

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A closeup photograph of four street tacos with meat, onions, and cilantro in soft corn tortillas

September 20, 2024by David Klemt David Klemt No Comments

National Taco Day Makes its Move

National Taco Day Makes its Move

by David Klemt

I call this a good start.

I don’t know how to break this to you, so I’m just going to say it: National Taco Day, one of the world’s most important holidays, has made a big move.

For the past 15 years, National Taco Day has been celebrated on October 4. That means that since its inception, the annual holiday that celebrates the taco has only fallen on a Taco Tuesday three times.

In fact, it didn’t even fall on Taco Tuesday until its third year, in 2011. National Taco Day didn’t repeat the feat again until 2016, and then 2022. Had the date remained the same in perpetuity, we wouldn’t get another National Taco Day on a Taco Tuesday until 2028 at the earliest.

Starting this year—in a week and a half, in fact—National Taco Day will fall on the first Tuesday in October.

I’m going to share my thought process after I first found out about this news.

How did I learn about this massive change? Via a post by Smirnoff. You see, National Taco Day and National Vodka Day have been linked since they each first launched in 2009.

View this post on Instagram

A post shared by Smirnoff (@smirnoff)

It seems that Smirnoff is none too pleased with this news, though they’ll reunite with National Taco Day in 2028.

My first reaction was “I can’t believe this is news,” for a few seconds. That evolved into “I can’t believe this took so long to resolve” rather quickly.

And then I told the KRG Hospitality team about this news.

Finally!

I’ve always thought “Why isn’t National Taco Day always on a Taco Tuesday?” when the holiday has come around.

Finally, someone has acted to rectify this oversight; Taco Bell appealed to National Day Calendar to change the date. It may seem to trivial for a fast-food giant (or anyone else, for that matter) to petition to have a holiday’s date changed when it isn’t a legal holiday.

However, according to a Taco Bell press release addressing this National Taco Day news, it’s rare that National Day Calendar makes such a change. The release goes on to quote Marlo Anderson, the founder of National Day Calendar, which launched in 2013.

“For years, we’ve celebrated National Taco Day on October 4th, but it’s always felt like there was a bigger opportunity to align it with something even more special—Taco Tuesday,” said Anderson.

Interestingly, another fast food chain is credited with creating National Taco Day: Del Taco. Keeping the trivia going, “National” reportedly doesn’t actually pertain to any one country; it’s just what the holiday is called.

While this news is certainly another win for Taco Bell and their, well, obsession with Taco Tuesday (understandable, of course), it’s a win for everyone who loves tacos.

Operators need to pull out all the stops for October 1, the first of the newly revised National Taco Day celebrations. Task your kitchen team with creating LTO tacos, crafting a super-premium version of your signature taco if you have one, and ensuring there are vegetarian- and vegan-friendly options to appeal to every single taco-loving guest.

Let’s go all out!

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September 19, 2024by David Klemt David Klemt No Comments

Innovations in Deep Frying: New Tech

Innovations in Deep Frying: New Technologies

by Nathen Dubé

If you’re deep fryer can do this, you win. At what? Everything.

Deep frying has long been a cornerstone of culinary practices, delivering crispy and flavorful dishes that delight guests, and it’s ready for innovation.

Traditional frying methods can be inefficient, costly, and environmentally unfriendly. The evolution of deep frying technology in modern kitchens has focused on addressing these issues by enhancing efficiency, reducing oil usage, and promoting sustainability.

Let’s explore the latest innovations in deep frying, focusing on oil-conserving fryers and new technologies that are transforming the industry.

Oil-Conserving Fryers and Their Benefits

Oil-conserving fryers represent a significant advancement in kitchen technology. These modern fryers are designed to reduce oil usage and operational costs while maintaining high-quality frying standards.

By optimizing the use of oil, these fryers help restaurant operators lower their expenses and minimize waste, making them an attractive option for eco-conscious businesses, and those looking to improve their bottom line.

How These Fryers Reduce Oil Usage

Oil-conserving fryers achieve their efficiency through several mechanisms.

They often feature advanced filtration systems that keep the oil cleaner for longer periods, reducing the frequency of oil changes. Efficient oil circulation methods ensure that heat is distributed evenly, which not only improves cooking consistency but also extends the oil’s usable life.

Precise temperature controls prevent the oil from overheating and breaking down, further conserving this valuable resource.

Overview of Their Role in Modern Culinary Practices

In modern culinary practices, oil-conserving fryers play a crucial role in enhancing both operational efficiency and sustainability. They allow chefs to produce high-quality fried foods with less oil, reducing costs and environmental impact.

These fryers are particularly valuable in high-volume settings such as fast-food chains, casual dining establishments, and catering operations, where oil usage is typically high.

Key Features of Modern Fryers

Advanced Filtration Systems to Maintain Oil Quality

One of the standout features of modern oil-conserving fryers is their advanced filtration systems. These systems filter out food particles and debris continuously, keeping the oil clean and extending its life.

This not only reduces waste but also ensures that the food maintains a consistent taste and texture.

Efficient Oil Circulation Methods for Consistent Cooking

Efficient oil circulation is essential for consistent cooking. Modern fryers are designed to circulate oil evenly around the food, preventing hot spots and ensuring uniform cooking.

This technology helps achieve perfect results every time, whether frying chicken, French fries, or other popular items.

Temperature Controls for Precise Frying and Energy Efficiency

Precise temperature controls are another critical feature of modern fryers. These controls allow chefs to set and maintain the exact temperature needed for different foods, ensuring optimal cooking conditions.

By preventing overheating, these controls also enhance energy efficiency, and prolong the life of the oil.

New Technologies in Deep Frying

Introduction to Low-Oil Volume Fryers and Their Advantages

Low-oil volume fryers are a recent innovation designed to use significantly less oil than traditional fryers. These fryers maintain high performance while reducing the amount of oil required, leading to lower operational costs and less waste.

They are ideal for small to medium-sized establishments looking to improve their sustainability without compromising on food quality.

The Concept and Benefits of Pressure Frying

Pressure frying is another innovative technology that has gained popularity in commercial kitchens.

This method uses a sealed environment to cook food at higher pressures and temperatures, resulting in faster cooking times, and less oil absorption. Pressure frying not only produces crispier and juicier food but also enhances energy efficiency, and reduces oil consumption.

Smart Automation: Integration of Technology for Ease of Use and Consistency

Smart automation is revolutionizing the way commercial kitchens operate. Modern fryers equipped with smart technology can automate various aspects of the frying process, from maintaining oil quality to adjusting cooking times and temperatures.

These automated systems ensure consistency, reduce the margin for human error, and free up staff to focus on other tasks.

Health and Environmental Benefits

Reduced Oil Absorption in Food for Healthier Outcomes

Innovative frying technologies contribute to healthier food by reducing oil absorption. Low-oil volume and pressure fryers, in particular, produce fried foods that are less greasy, and lower in fat.

This health benefit is increasingly important as consumers become more health-conscious, and demand healthier menu options.

Decreased Waste Generation and Its Positive Environmental Impact

Reducing oil usage and waste generation has significant environmental benefits. By extending the life of frying oil and using less of it overall, oil-conserving fryers help decrease the volume of waste oil that needs disposal.

This reduction in waste contributes to a smaller environmental footprint, and supports more sustainable kitchen practices.

The Role of Innovative Fryers in Promoting Sustainable Cooking Practices

Innovative fryers are at the forefront of promoting sustainable cooking practices. By conserving resources and minimizing waste, these technologies align with the growing trend toward sustainability in the food industry.

Restaurants that adopt these practices can not only reduce their environmental impact but also appeal to environmentally conscious guests.

Insights on the Future of Frying Technologies and Industry Trends

The future of frying technologies looks promising, with ongoing innovations aimed at further improving efficiency and sustainability.

Industry trends indicate a continued focus on reducing environmental impact and enhancing food quality, with smart automation playing an increasingly important role.

Practical Tips for Choosing and Using Fryers

Key Considerations for Selecting the Right Fryer for Your Kitchen

Choosing the right fryer for your kitchen involves several considerations, including the volume of food you need to produce, the type of food you serve, and your budget.

It’s essential to evaluate the features and capabilities of different fryers to find one that meets your specific needs.

Best Practices for Maintaining Fryers to Extend Their Lifespan and Efficiency

Proper maintenance is crucial for extending the lifespan and efficiency of your fryer.

Cleaning and filtering the oil regularly, checking and calibrating temperature controls, and performing routine inspections are all vital practices. Following the manufacturer’s maintenance guidelines will help ensure optimal performance.

Importance of Staff Training to Maximize the Benefits of New Technologies

Staff training is essential to maximize the benefits of new frying technologies.

Ensure that your kitchen staff are well trained in operating and maintaining the equipment. Regular training sessions can keep staff updated on best practices and new features, helping to improve efficiency and food quality.

Conclusion

The advantages of oil-conserving fryers and new frying technologies are clear: these innovations offer significant cost savings, improved food quality, and enhanced sustainability.

Adopting these advanced solutions make it possible for restaurants to reduce their operational costs, minimize their environmental impact, and provide healthier menu options. As the industry continues to evolve, it’s crucial for restaurant owners and chefs to stay informed about the latest technologies, and invest in equipment that supports their business goals and values.

In conclusion, adopting innovative frying technologies is not just a trend but a smart business decision. The benefits of reduced oil usage, improved efficiency, and enhanced sustainability make these technologies a valuable addition to any commercial kitchen.

By prioritizing the integration of these advanced fryers, restaurants can achieve greater success, and contribute to a healthier and more sustainable food industry.

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September 17, 2024by David Klemt David Klemt No Comments

The Modern Approach to Systems: Part 1

The Modern Approach to Systems: Part 1

by Doug Radkey

Must be a magician.

In the hospitality industry, where guest satisfaction and operational efficiencies are paramount, systematic strategies are essential for maintaining a high-level of excellence.

Whether you’re running a high-end cocktail bar, a fast-casual restaurant, or an elevated boutique hotel, the intricacies of daily operations demand a structured approach to ensure smooth functionality, and exceptional service delivery.

After walking through this approach recently with a client, I thought it would be a great opportunity to introduce you to two powerful methodologies that have transformed businesses worldwide: the Kaizen methodology, and Six Sigma strategies. We use both of these approaches with all our clients at KRG Hospitality because they offer comprehensive frameworks for achieving operational excellence through continuous improvement and efficiency.

Kaizen, with its focus on incremental changes and fostering a culture of constant innovation, and Six Sigma, with its emphasis on reducing variability and enhancing quality, provide invaluable tools for those in this industry.

By exploring their application in bars, restaurants, and hotels, I am going to highlight how these systematic strategies can elevate guest experiences, and create a culture of excellence that will help improve nearly every aspect of your business.

Understanding Kaizen

Kaizen is a Japanese term that translates to “change for the better,” or “continuous improvement.” It represents a philosophy that emphasizes small, incremental changes to processes, products, or services rather than large-scale transformations.

This approach fosters a culture of constant improvement, encouraging everyone in an organization to contribute to enhancing efficiency and quality.

The concept of Kaizen originated in post-war Japan, where it was developed as a response to the need for rapid industrial growth and efficiency. It gained widespread recognition and was popularized by Toyota’s production process, known as the Toyota Production System (TPS).

Toyota implemented Kaizen principles to streamline its manufacturing processes, reduce waste, and improve overall quality. Ultimately, this approach played a crucial role in establishing the company as a global leader in the automotive industry today.

The Core Principles of Kaizen

Focus on Incremental Changes and Continuous Improvement: Kaizen emphasizes making small, manageable changes regularly rather than waiting for major breakthroughs. This approach allows for the constant refinement and improvement of processes, leading to significant compounded gains over time. Seeking better ways to do things continuously helps organizations stay agile, and respond to changes in the market or industry quickly.
Emphasis on Teamwork and Employee Involvement: A key aspect of Kaizen is the active involvement of all employees, from top management to frontline workers. Everyone is encouraged to identify areas for improvement, and to contribute ideas. This inclusive approach fosters a sense of ownership and accountability, as employees at all levels feel empowered to make meaningful changes. Teamwork is essential in Kaizen, as collaboration and open communication enable the sharing of knowledge and best practices.
A Culture of Continuous Learning: Kaizen promotes a learning-oriented culture in which employees are encouraged to develop their skills and knowledge continuously. This focus on education and training helps create a workforce that is adaptable and capable of implementing improvements. By cultivating a mindset of curiosity and openness to new ideas, organizations can foster innovation, and sustain long-term growth.

The Plan-Do-Check-Act Cycle

The PDCA cycle, also known as the Deming Cycle, is a foundational tool in the Kaizen methodology. It provides a structured framework for implementing changes, and ensuring their effectiveness. The cycle consists of four stages:

- Plan: Identify an area for improvement, set objectives, and develop an action plan.
- Do: Implement the plan on a small scale, testing the proposed changes.
- Check: Evaluate the results of the implementation, comparing against objectives.
- Act: Based on the evaluation, make necessary adjustments, and standardize the successful changes. If the results are not satisfactory, revisit the Plan stage, and repeat the cycle.

The PDCA cycle is a continuous loop that encourages organizations to keep refining their processes, and strive for excellence continuously. It ensures that improvements are data-driven and based on careful analysis, reducing the risk of failure, and increasing the likelihood of sustainable success.

Applying Kaizen to the Industry

By fostering a culture of efficiency, teamwork, and guest-centricity, Kaizen helps bars, restaurants, and hotels enhance their operations, and deliver exceptional guest experiences.

Here, I explore how Kaizen can be applied, using three key areas as examples.

Kaizen in Bars

Streamlining Bar Layout and Workflow: In a bar setting, the layout and workflow are crucial for ensuring quick service, and minimizing wait times. Kaizen encourages a meticulous examination of the bar’s physical layout, from the positioning of glassware and bottles to the arrangement of mixing stations and garnishes. By optimizing these elements, bars can reduce the time taken to prepare and serve drinks, leading to faster service, and increased guest satisfaction. For example, organizing the bar setup to minimize the distance bartenders need to travel can enhance efficiency significantly.

Continuous Menu Optimization: Guest preferences and trends in the beverage industry are evolving constantly. Kaizen’s principle of continuous improvement can be applied to menu optimization, where bars review sales data and guest feedback regularly to refine their offerings. By identifying popular drinks and experimenting with new mixes, bars can keep their menus fresh and appealing. Additionally, removing underperforming items helps streamline inventory and reduce waste, contributing to overall cost efficiency.

Enhancing the Guest Experience: Kaizen emphasizes the importance of guest interaction in creating a memorable experience. Regular staff training is vital to ensure that bartenders and servers are skilled in both mixology and guest services. Training sessions can focus on refining communication skills, upselling techniques, and handling guest questions more effectively. By fostering a welcoming and engaging atmosphere, bars can enhance satisfaction, and encourage repeat business.

Kaizen in Restaurants

Implementing Lean Kitchen Practices: In restaurants, the kitchen is the heart of operations. Kaizen can be applied to implement lean kitchen practices that minimize waste, and improve efficiency. This includes optimizing food preparation processes, standardizing portion sizes, and ensuring proper inventory management. By reducing unnecessary steps and streamlining workflows, restaurants can decrease preparation times, reduce food waste, and, ultimately, lower their food costs.

Refining Service Protocols: Refining service protocols regularly is essential for maintaining high standards of guest service. Kaizen encourages continuous evaluation and improvement of service procedures, from seating arrangements to cleaning protocols to table service. Restaurants can identify bottlenecks in service delivery by analyzing guest flow and feedback, and make necessary adjustments. For instance, optimizing the sequence of service can increase table turnover rates, allowing restaurants to serve more guests during peak hours, and maximize revenue.

Encouraging Staff Participation: A core tenet of Kaizen is the involvement of all employees in the improvement process. In restaurants, this means encouraging staff to identify operational challenges and propose solutions. Restaurants can tap into a wealth of boots-on-the-ground insights by fostering an inclusive environment in which employees feel valued and heard. Regular pre-shift meetings, team meetings, and one-on-ones can be effective platforms for gathering feedback and implementing changes. This participatory approach not only enhances operational efficiency but also boosts employee morale and engagement.

Kaizen in Hotels

Optimizing Housekeeping Processes: Housekeeping is, of course, a crucial component of hotel operations, impacting guest satisfaction directly. Kaizen can be applied to optimize housekeeping processes, ensuring timely room turnovers, and maintaining high cleanliness standards. This involves standardizing cleaning procedures, scheduling, and the use of cleaning supplies. Hotels can reduce the time required to prepare rooms for new guests by implementing efficient practices, improving occupancy rates, check-in times, and guest experiences.

Improving Front Desk Operations: The front desk is still the first point of contact for guests at many hotels, and it plays a crucial role in shaping a guest’s first impressions. Kaizen encourages continuous improvement in front desk operations, focusing on streamlining check-in/check-out processes, managing guest inquiries, and handling reservations. By leveraging technology and training staff, hotels can reduce wait times, enhance service accuracy, and provide personalized experiences. For example, implementing mobile check-in options can expedite the process and cater to tech-savvy travelers while freeing up time for staff to spend with guests who are not so tech-savvy.

Fostering a Culture of Hospitality and Attentiveness: Beyond operational efficiency, Kaizen promotes a culture of hospitality, and attentiveness among hotel staff. This involves training employees to anticipate guest needs, provide courteous service, and handle special requests with care. Hotels can cultivate loyalty and encourage positive reviews by creating a welcoming environment, and exceeding guest expectations consistently. Regular feedback loops, such as guest satisfaction surveys, can help hotels identify areas for improvement, and ensure that staff remain committed to providing exceptional service.

Takeaway

The application of Kaizen in bars, restaurants, and hotels leads to enhanced efficiency, improved service quality, and increased satisfaction.

By focusing on continuous improvement and involving all employees in the process, your business can create a dynamic and responsive environment that adapts to changing guest needs and market conditions. This commitment to excellence not only drives operational success but also strengthens your brand reputation, and guest loyalty.

To keep this from being too long, I’ve broken this article into two parts. Look for part-two on developing Six Sigma, and how combining both Kaizen and Six Sigma can take your business to new heights.

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September 16, 2024by David Klemt David Klemt No Comments

2024 Datassential 500: Guest Perception

2024 Datassential 500: Guest Perception

by David Klemt

Last week we took a look at the data-driven findings that identify, organize, and rank chain restaurants in the US, forming the Datassential 500.

This annual report sorts the 500 top-performing chains by segment. Further, Datassential identifies the top chains by both number of units, and sales.

In doing so, the F&B intelligence agency uses hard numbers to determine numbers one through 500.

But what about guest perception? Unit and sales growth may appeal to board members, investors, executives, and other hospitality professionals, but what matters to the people their restaurants serve?

It’s doubtful that even the staunchest fans of a particular restaurant chain are aware of or, frankly, care about how many locations they operate. Nor are they likely all that concerned about their annual revenue, unless they’re an investor as well.

To get to the bottom of how the public perceives chain restaurants in the US, and what brands they rank at the top, Datassential looked at six key metrics.

Those metrics? Food quality, service, experience, affordability, value for dollar, and net promoter score.

While the results aren’t exactly shocking, they’re quite telling. A handful of US chains dominate the consumer-facing metrics. And for the most part, they’re not among the top ten of the 2024 Datassential 500.

Anyone interested in reading this year’s report can do so via this link. Alright, let’s check out how the public ranks US chain restaurants.

Perception Matters

To make the comparisons easier, the top 10 US restaurant chains by unit and by sales are below.

Top 10: Total Units

Subway
Starbucks
McDonald’s
Dunkin’
Taco Bell
Domino’s Pizza
Burger King
Pizza Hut
Wendy’s
Dairy Queen

Top 10: Total Sales

McDonald’s
Starbucks
Chick-fil-A
Taco Bell
Wendy’s
Dunkin’
Burger King
Chipotle
Subway
Domino’s Pizza

Guest Perception

Okay, so those are the top performers in the US, by the numbers. Units were counted, sales were analyzed.

Now, these are the brands that guests feel are at the very top, organized into six categories.

Food Quality

Texas Roadhouse
Chick-fil-A
Longhorn Steakhouse
Cheesecake Factory
Ruth’s Chris Steak House

Service

Chick-fil-A
Texas Roadhouse
Longhorn Steakhouse
Cheesecake Factory
In-N-Out Burger

Experience

Chick-fil-A
Ruth’s Chris Steak House
Texas Roadhouse
Maggiano’s Little Italy
In-N-Out Burger

Affordability

Little Caesars
Freshii
Papa Murphy’s
Cici’s Pizza
Pollo Tropical

Value for Dollar

Papa Murphy’s
Little Caesars
Cici’s Pizza
In-N-Out Burger
Del Taco

Net Promoter Score

To determine this ranking, survey participants were asked “How likely would you be to recommend this chain to friends and family?”

Chick-fil-A
Texas Roadhouse
In-N-Out Burger
Longhorn Steakhouse
Portillo’s Hot Dogs
Cheesecake Factory
The Capital Grille
Ruth’s Chris Steak House
Maggiano’s Little Italy
Topgolf

Subway and McDonald’s may dominate the list in terms of number of units and annual sales, but Chick-fil-A dominates in one key area. Word-of-mouth marketing still matters, undeniably, and, according to Datassential, most consumers perceive Chick-fil-A as the restaurant chain to recommend.

Followed by Texas Roadhouse and In-N-Out Burger, smaller brands are delivering on important operational elements. Consumers at large appear to favor these brands when it comes to stretching their dollars, along with how they perceive the quality of food, the level of service, and the overall dining experience.

Operators interested in scaling their business need to set aside ego and desire, and look at their business objectively. They need to ensure they’re nailing the fundamentals and have the right systems in place first.

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September 13, 2024by David Klemt David Klemt No Comments

The 2024 Datassential 500

How Does the 2024 Datassential 500 Shake Out?

by David Klemt

The annual Datassential 500 ranking is a valuable report that identifies industry leaders, the fastest growers, and segment performance.

Further, this yearly report shows the scale of restaurant business in the US. In a word, it’s gargantuan.

Looking at 2023 data, the top 500 chains in the US operated 238,152 units. And those 238,000-plus restaurants generated $417.13 billion in 2023.

For the former, that’s growth of 2.1 percent in comparison to 2022. And for the latter, the top 500 grew by 7.5 percent compared to last year.

Those numbers are from just 500 chains; the report doesn’t take into account other chains or independent operators. When we add all dining and drinking establishments in the US, the industry generated $1.09 trillion in 2023.

Again, the US restaurant business is a colossus.

Perhaps unsurprisingly, limited-service and quick-service restaurants are the top-performing segments by unit within the Datassential 500. In 2023, the LSR segment consisted of 212,469, and unit growth was up by 2.3 percent. The QSR segment reached 170,241, representing unit growth of 1.9 percent.

In fact, every segment but one saw unit growth in 2023. One may assume the segment that slipped was fine dining. That’s usually a safe bet, but the segment actually saw the most growth. It was midscale restaurants that suffered a bit of a blow, shrinking by 0.1 percent.

That means that LSRs, QSRs, full-service restaurants (FSRs), fast casual, casual dining, and fine dining all grew. Further, that growth ranged from 0.3 percent (FSR) to 4.6 percent (fine dining).

There are many more insights, so I encourage anyone interested to download the report for themselves.

Segment Shakedown

Before we jump into the top US chains, let’s take a look at how the categories break down.

Type of Cuisine

American: 88
Pizza: 70
Desserts & Snacks: 69
Sandwich: 47
Coffee: 47
Burger: 37
Mexican: 36
Salad & Healthy: 31
Southern: 24
Asian: 22
BBQ: 12
Steakhouse: 11
Italian: 9
Seafood: 9
Greek & Mediterranean: 9

Growth by Segment: Unit (LSR)

Salad/Healthy: +11.2%
Coffee: +5.9%
Other: +4.6%
Dessert/Snack: +4.3%
Mexican: +3.0%
Chicken: +2.9%
Pizza: +1.6%
Bakery-Cafe: +0.8%
Sandwich: -0.4%
Burger: -0.4%

As we can see, Salad/Healthy LSRs saw almost double the growth by unit than the next-largest segment, Coffee.

Further, Sandwich and Burger shrunk slightly.

Growth by Segment: Unit (FSR)

Regional/Ethnic: +7.6%
Sports Bar: +3.8%
Midscale: +0.3%
Seafood/Steak: +0.1%
Italian/Pizza: -0.9%
American: -2.0%

Regional and ethnic full-size restaurants saw the most growth. In fact, they grew by twice the amount of sports bars, and several times more than midscale FSRs.

Growth by Segment: Sales

Limited-Service Restaurant: $338.18 billion (+8.1%)
Quick-Service Restaurant: $263.48 billion (+8.0%)
Full-Service Restaurant: $78.95 billion (+5.0%)
Fast-Casual Restaurant: $74.70 billion (+8.6%)
Casual-Dining Restaurant: $55.57 billion (+4.8%)
Midscale Restaurant: $20.05 billion (+4.5%)
Fine-Dining Restaurant: $3.33 billion (+10.7%)

The good news is that every segment saw sales growth in 2022, with Fine Dining and Fast Casual experiencing the biggest increases.

Of course, that’s relative. Fine Dining generated just $3.33 billion in comparison to LSRs, which generated more than $338 billion.

Still, positive growth is always great to see.

Growth by Segment: Sales (LSR)

Salad/Healthy: +17.0%
Chicken: +11.9%
Dessert/Snack: +10.1%
Coffee: +9.8%
Other: +9.3%
Mexican: +9.1%
Burger: +7.5%
Sandwich: +7.2%
Bakery-Cafe: +1.8%
Pizza: +1.6%

Not only did Salad/Healthy lead the way in LSR unit growth in 2023, it’s the top performer in terms of sales.

Again, the good news is that the Datassential 500 saw LSR sales growth across the board.

Growth by Segment: Sales (FSR)

Regional/Ethnic: +10.2%
Seafood/Steak: +6.7%
Midscale: +5.2%
Italian/Pizza: +4.2%
American: +3.8%
Sports Bar: +3.2%

As far as FSR performance, every segment experienced growth, with Regional/Ethnic leading the charge.

The Top 5(00)

So, which US chains are at the top? Well, an accurate answer depends on segment, number of units, and sales.

Oh, and it also depends on whether we’re talking about which chains Datassential have identified as industry leaders, and which are the fastest growers.

Industry Leaders

According to Datassential, the top five US chains by number of stores are Subway (20,133), Starbucks (16,346), McDonald’s (13,449), Dunkin’ (9,580), and Taco Bell (7,405).

However, that ranking changes a bit when we look at through the lens of sales. In that case, the top five are McDonald’s ($52.91 billion), Starbucks ($29.98 billion), Chick-fil-A ($21.58 billion), Taco Bell ($13.95 billion), and Wendy’s ($12.29 billion).

Those are the industry stalwarts. How do the fastest-growing US chains stack up?

Fastest Growers

Looking at unit growth over the span of one year, the top performers in the US are 7 Brew (+373.7 percent), The Peach Cobbler Factory (+358.3 percent), Hangry Joe’s Hot Chicken (+281.8 percent), KPOT Korean BBQ & Hot Pot (+275.0 percent), and Foxtail Coffee Co (+176.2 percent).

Switching gears to sales growth over a single year, Hangry Joe’s Hot Chicken led the way, growing by more than 500 percent. Hangry Joe’s is followed by The Peach Cobbler Factory (+332.5% percent), Nick The Greek (+304.7 percent), 7 Brew (+267.3 percent), and Pizza King Inc (+264.7 percent).

However, Datassential gets more granular in their 2024 report, breaking down the top five across multiple segments.

Top Ranked By Unit (Overall)

Top 5: Quick Service

Subway
McDonald’s
Dunkin’
Taco Bell
Domino’s Pizza

Top 5: Fast Casual

Starbucks
Chipotle
Panera Bread
Wingstop
Tropical Smoothie Cafe

Top 5: Midscale

Waffle House
IHOP
Denny’s
Cracker Barrel
First Watch

Top 5: Casual & Fine Dining

Applebee’s
Buffalo Wild Wings
Chili’s
Olive Garden
Outback

Top Ranked By Unit (Growth)

Top 5: Quick Service

7 Brew
The Peach Cobbler Factory
Foxtail Coffee Co
Cupbop
Swig

Top 5: Fast Casual

Hangry Joes Hot Chicken
Just Love Coffee Cafe
The Great Greek Mediterranean Grill
Nautical Bowls
Ellianos Coffee Co

Top 5: Midscale

Snooze Restaurant
Eggs Up Grill
Kura Sushi Bar
Another Broken Egg Cafe
Maple Street Biscuit Co.

Top 5: Casual & Fine Dining

KPOT Korean BBQ & Hot Pot
Topgolf
The Juicy Crab
Jinya Ramen Bar
Hopdoddy Burger Bar

There are many more insights to be had, so please consider downloading your own copy of the 2024 Datassential 500 report here.

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September 12, 2024by David Klemt David Klemt No Comments

How do You Measure Success?

How do You Measure Success?

by David Klemt

That’s a lot of pens…and possibly paintbrushes.

When you take a moment to reflect on your business, what does success mean to you, and what steps are you taking to achieve it?

One obvious measure of success, of course, is monetary. Whether you operate a bar, restaurant, cafe, lounge, nightclub, hotel or other hospitality business, this is a stressful business. Why subject yourself and your team to the hardships hospitality throws at us if there are no financial rewards?

To many, a successful business is one that operates a profit. One that provides the entire team with not just enough money to get by but to thrive and experience financial freedom.

I like to think that most—the vast majority would be nice—operators want the people who believe in their vision enough to work with them to achieve it to make more than just a living wage.

Speaking of buy-in from others, finding people eager to work for them is a measure of success to some operators.

Others find success in achieving accolades. If we were to look at these operators and those who measure success financially, there would surely be an overlap in a Venn diagram.

Operators who find awards, invitations to share their stories, and opportunities to speak and educate others find the validation of their vision to mean they’re successful.

There’s absolutely nothing wrong with measuring success by profits and awards earned. After all, a hospitality business won’t be a business for long if it operates in the red, or people are unaware it exists.

But what about considering how your business makes you feel?

For Your Condsideration

Yes, I’m going to talk about feelings. Our industry is too challenging to pretend money is the only thing that matters. And we simply can’t keep ignoring the topic of mental health and the toll the hospitality industry can take on a person.

So, let’s take a moment to consider some key questions.

Is just the thought of your business accompanied by positive or negative feelings? When it’s time to head into your restaurant, bar or hotel, are you happy and excited? Or does the thought fill you with stress, or worse yet, dread?

I’m speaking on balance, of course. Stress is inescapable. New operator? Stress. A year or two in? Stress. Veteran operator? Stress.

On the whole, however, do you feel satisfied with what you’ve built, and what you’re operating? When you consider your business and brand, are you proud?

Satisfaction, Happiness, and Pride

I was reading a profile on Hotel Management a few days ago that I’m still thinking about.

Speaking of the brand and success, Red Roof Inn president Zack Gharib says, “To me, [ultimately], the measurement is, how are we making the people feel who are invested in us most—our employees, our franchisees, our communities, our guests? If there’s a sense of satisfaction and happiness and pride to be part of [the brand], then we have achieved success.”

Again, there’s nothing wrong with measuring the success of your business in financial terms. When we’re working with a client to bring their vision to life we’re laser focused on long-term financial viability.

However, leading your business toward becoming a brand you’re proud of and happy to operate should also be a consideration.

Picture operating your business so well that your team is proud to work for you. Imagine how you’d feel if the people you serve feel pride having your business in the community.

This business is too challenging to allow it to drain you psychologically, physically, and financially. If you’ve lost control of parts of your business or lost sight of your vision, it’s time to stabilize. Should you feel that you want to build your brand into something bigger, it’s time to consider scaling it. If you’re not proud to tell people about your business, you need a shift in mindset.

Image: Microsoft Designer

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