Restaurant Operations

Straining a cocktail into a rocks glass over ice cubes
by David Klemt David Klemt No Comments

Reverse Cocktails for Lower ABV Sips

Reverse Cocktails for Lower ABV Sips

by David Klemt

Straining a cocktail into a rocks glass over ice cubes

A simple and creative way to add low-proof drinks to a menu is to offer reverse cocktails.

As a concept, reverse cocktails are simple to understand. However, they’re also a great way to engage the bar team.

Better still, they offer guests looking to enjoy less-spirited drinks a real cocktail experience.

What’s a Reverse Cocktail?

Essentially, a reverse cocktail is exactly what it sounds like. Let’s use the classic Martini as an example.

Say your classic recipe calls for two ounces of gin, a half-ounce of sweet vermouth, and a dash of orange bitters. To build the Reverse Martini, half the gin, quadruple the sweet vermouth, and keep the bitters the same.

That’s a quick and dirty example. You and your bar team will want to play with your recipes—different vermouths and gins will deliver differing results.

Vermouths, amaros, and low-proof aperitifs are ideal for building reverse cocktails and expanding your cocktail program.

What’s the Point?

Reverse cocktails lower the ABV in comparison to their standard, boozier counterparts.

Michael Toscano, Woodford Reserve brand ambassador and Bar Hacks podcast guest, thinks many people are looking to slow down their alcohol intake. Home bartenders, if reports are accurate, have been pouring spirits generously during the pandemic. When they get out, they may be after lower-proof sips.

A reverse cocktail is a creative solution to enjoying cocktails in a new way with less alcohol.

Of course, they also offer operators a new guest experience. A menu section with the title “Reverse Cocktails” is likely to spark some guest interest and questions. Also, such drinks are a great way to refresh drink menus and move some inventory.

There’s also the fact that reverse cocktails give guests seeking low-ABV sips the full cocktail experience—there’s no risk of alienating them.

Image: Adam Jaime on Unsplash

Man in empty restaurant and bar in Ottawa, Ontario, Canada
by David Klemt David Klemt No Comments

Canadian Hospitality Needs Real Help

Canadian Hospitality Needs Real Help

by David Klemt

Man in empty restaurant and bar in Ottawa, Ontario, Canada

Restaurants, bars and other foodservice establishments throughout Canada need specific relief to survive, replace lost jobs, and return to profitability.

The seemingly endless and severe provincial restrictions is putting far too much strain on a struggling industry.

Yes, there are some federal provisions in place. No, they’re not enough.

Relief Efforts

Currently, the federal budget promises extensions for wage and rent subsidies. Those subsidies would extend to September 25, 2021.

However, most Canadians, per a Restaurants Canada survey, agree that the industry needs more help.

If additional industry-specific relief faces significant delays or doesn’t come at all, operators, employees, and their families will suffer.

No wonder, then, that 90 percent of Canadians (according to the Restaurants Canada survey) feel restaurants and bars need federal support to remain in business and continue paying staff.

Support Proposals

Of the approximately 98,000 foodservice establishments throughout Canada, about 10,000 are out of business. As of last month, 319,000 lost foodservice jobs had yet to be filled.

No other industry in Canada is facing such startling numbers. Add to that the fact that the industry contributes to four percent of Canada’s GDP, restaurants are the first employers for most Canadians, women comprise nearly 60 percent of the restaurant workforce, and visible minorities comprise over 30 percent of ownership and labor, and the situation grows even starker.

Clearly, industry-specific relief is necessary.

Restaurants Canada is campaigning for the following measures:

  • Extend the wage and rent subsidies through April 2022.
  • Develop subsidy requirements that more closely match the dire reality the industry continues to face.
  • Implement an employee retention and retraining credit to defray Covid-19 protocol costs.
  • Partial forgiveness for all government-backed loans.
  • Removal of merchant fees from the tax portion of restaurant bills.
  • Restore the meals and expenses to 100 percent on a temporary basis.
  • Develop and implement a culinary tourism incentive for the 2020 and 2021 tax years, using New Brunswick as a model.
  • Implement a rebate program that provides government reimbursement of $15 per person, per meal.
  • Freeze the Excise Act, including Excise Act 2021.

Act Now

It took more than a year but the industry and its supporters in America helped bring about meaningful change for restaurants, bars, and other hospitality venues.

The same can be done in Canada, and time is of the essence.

For example, the Restaurant Revival Working Group is a good start for effecting change. The group consists of government and industry representatives.

Click here to review the list of Restaurant Revival Working Group members, particularly those in government, so you can contact them.

Image: Tyler Farmer on Unsplash

Modern neon sign hanging in window
by David Klemt David Klemt No Comments

RRF Applications Open Monday

RRF Applications Open Monday

by David Klemt

Modern neon sign hanging in window

In long overdue but very welcome news, the Small Business Administration’s RRF portal opens to accept applications on Monday.

Operators and business owners will be able to register this Friday, April 30.

We definitely recommend doing so to make the application process simpler and (hopefully) less frustrating on Monday, May 3.

What You Need to Know

Mainly, the following: The SBA’s RRF portal link is https://restaurants.sba.gov. It would probably be a good idea to go ahead and bookmark that site now.

Alternately, operators using an SBA POS partner to apply. Partner systems include Clover, NCR, Square, and Toast.

Per the SBA, operators will be able to register via the website beginning at 9:00 AM EST on Friday. Again, it would be wise to plan on doing exactly that.

Anything that can be done to speed up the application process opening Monday should be done.

According to the SBA website, certain eligible entities will be given priority. For the first 21 days the application process is open, priority will be granted to small businesses with a minimum of 51 percent ownership by women, veterans or socially disadvantaged people.

However, all eligible owners and operators should register on Friday and apply on Monday. Doing should, in theory, help applicants secure their grants in a more timely manner.

RRF Preparation

The SBA’s Restaurant Revitalization Fund portal opens at noon ET on Monday. It’s best to prepare as much as possible as it’s likely applicants may find themselves in a queue depending upon traffic.

Operators can calculate their grant amounts with the following equations for applicants:

  • in operation prior to or on January 1, 2019: 2019 gross receipts minus 2020 gross receipts minus PPP loan amounts.
  • that began operations partially through 2019: (Average 2019 monthly gross receipts x 12) minus 2020 gross receipts minus PPP loan amounts.
  • who began operations on or between January 1, 2020 and March 10, 2021: Amount spent on eligible expenses between February 15, 2020 and March 11, 2021 minus 2020 gross receipts minus 2021 gross receipts (through March 11, 2021) minus PPP loan amounts
  • not yet opened but have incurred eligible expenses: Amount spent on eligible expenses between February 15, 2020 and March 11, 2021 minus 2020 gross receipts minus 2021 gross receipts (through March 11, 2021) minus PPP loan amounts

Note: Entities who began operations partially through 2019 may elect, at their own discretion, to use either calculation two, three or four above.

For further guidance and to prepare as much as possible, please click here for the SBA’s RRF guide, and click here to review the sample application.

The Independent Restaurant Coalition also has a handy checklist posted to Instagram:

Good luck!

Image: Prateek Katyal on Unsplash

Woodford Spire Kentucky Derby cocktail
by David Klemt David Klemt No Comments

2021 Kentucky Derby Drink Recipes

2021 Kentucky Derby Drink Recipes

by David Klemt

Woodford Spire Kentucky Derby cocktail

The 2021 Kentucky Derby takes place this Saturday, May 1. These cool drinks are perfect for the hottest two minutes in sports.

This year, the unbeaten Essential Quality is the favorite to win the 147th Run for the Roses. Hot Rod Charlie, Rock Your World, and Medina Spirit are also in consideration.

Personally, given the subject of this article—bourbon cocktails—we’d like to see Bourbonic take the first race in the Triple Crown.

Since Woodford Reserve is the official Presenting Sponsor of the Kentucky Derby, you can’t go wrong with the Woodford cocktails below.

Of course, the 2021 Woodford Reserve Derby Bottle makes these Derby drinks taste that much better.

Cheers!

Woodford Mint Julep

Recipe courtesy of Woodford Reserve

This is the traditional Derby Day cocktail. Churchill Downs will be pouring gallons of this classic.

Express the essential oils in the mint and rub them inside the glass (or a Julep cup, ideally). Add simple syrup, bourbon, and crushed ice. Stir, then garnish with more ice, fresh mint, and powdered sugar.

Mint Julep made with Woodford Reserve by Michael Toscano

NYC Mint Julep

Recipe by Michael Toscano, Woodford Reserve Brand Ambassador

As loyal Bar Hacks podcast listeners may already know, Michael Toscano knows his way around an irresistible Mint Julep. When you’re done with this article, click here to listen to Episode 32 of Bar Hacks with Toscano.

Muddle six blackberries with simple syrup and a healthy bunch of mint leaves (eight to ten). Add two ounces of Woodford Reserve Bourbon and fill the Julep cup with crushed ice. Stir and lift ice until the Julep cup is frosted. Garnish with two blackberries and a fresh sprig of mint.

Note: To build this cocktail precisely as Michael recommends on our podcast, add 1.5 ounces of Woodford to the Julep cup over crushed ice. Add more ice to create a mound on top of the cup, then float the remaining half-ounce of bourbon. Finish with a healthy dusting of powdered sugar and either nutmeg of powdered chocolate.

Woodford Spire Kentucky Derby cocktail

Woodford Spire

Recipe courtesy of Woodford Reserve

Some people may not know that this is the Official Cocktail of the Kentucky Derby. Most assume that title goes to the Mint Julep.

In a mixing glass, mix Woodford Reserve, lemonade and cranberry juice with a bar spoon. Pour into a copper cup, add crushed ice to the top of the glass, and serve with a lemon twist.

Zero-proof Woodford Spire

Recipe courtesy of Woodford Reserve

Those choosing to enjoy Kentucky Derby festivities without alcohol will appreciate this refreshing drink.

  • 2 parts Lemonade
  • 2 parts Unsweetened iced tea
  • 1 part Cranberry juice
  • Lemon twist to garnish
  • Crushed ice

Prepare and serve the same as the full-proof Spire.

Images: Woodford Reserve / Brown-Forman

Help Wanted sign taped in window
by David Klemt David Klemt No Comments

The Reality of Hiring Right Now

The Reality of Hiring Right Now

by David Klemt

Help Wanted sign taped in window

Operators can add recruitment, hiring and retention among to the growing list of challenges they’re facing due to the pandemic.

Labor struggles aren’t exactly a shock to the hospitality industry.

However, the speed with which the many stark predictions of labor shortages and challenges across North America has caught some by surprise.

Outlook: Brutal

Fast-casual to fine dining. Independent to chain. Regional hospitality group to multi-national powerhouse.

No operator, no concept, no market appears immune to today’s recruitment, hiring or retention challenges.

It’s not the only reason but the federal boost to unemployment is exacerbating the situation. Restaurant operators across America have been reporting that their workers are making more on unemployment than they would make returning to their jobs.

It’s likely the hiring situation won’t improve until the end of August or start of September; the federal boost to unemployment is set to expire on September 6.

Of course, that points to another glaring industry issue: livable wages and benefits.

The pandemic didn’t cause the labor shortage and hiring problem on its own, but it certainly hasn’t helped anything. Some operators throughout North America say they’ve been hunting for workers for all positions for months.

Incentives & Bonuses

Operators are fighting for workers. To many reading this, that’s not a surprise. However, many operators report fighting to even get candidates to show up for interviews.

Famously, one McDonald’s franchisee in Tampa, Florida, is using a $50 incentive for interviews. If a candidate manages to follow through and show up for their interview, they walk away with $50.

During a recent conversation with Chef Brian Duffy (which we’ll be releasing as episode 33 of the Bar Hacks podcast), interview incentives came up. While it’s no $50 bonus just for showing, Chef Duffy has offered candidates free lunch for appearing for their interviews. And yes, he still struggles.

Interestingly, appearance incentives don’t appear to be working. What does appear to be working? Increasing starting wages, referral programs, apply-via-text functionality, and all manner of signing and performance-based bonuses.

The bonuses run the gamut. Show up for all your shifts for three or four months and earn a $500 bonus. Paying down student loans. Fronting the bill for culinary school. One restaurant in Alabama is offering an SUV to their top-performing worker later this year.

In addition to bonuses, wages are seeing a boost. Jobs that would normally start at $12 to $15 per hour are now offering starting wages of $16 to $18 dollars per hour.

No matter how one slices it, the situation leads to cost hikes across the board for operators. When costs increase for operators, prices increase for consumers. Margins shrink, the old cycle continues, the industry struggles.

Reality Check

Now, it’s simple to blame the pandemic for the current situation. To say it’s not a major factor would be incredibly disingenuous.

That said, the struggle to find and keep workers is also a culmination of decades-long, industry-wide problems.

Lack of diversity, inclusion, equality, living wages, opportunities, and transparency; failure to address social issues; inexcusable, threatening, and outright illegal behavior… All of this and much more contributes to the industry’s hiring and retention challenges.

That’s a criminally shallow summary of the situation—I’m well aware. Doug Radkey, president of KRG Hospitality, addresses the need to review and reset the industry in his book Hacking the New Normal. He takes a deep dive into rejecting the status quo in this industry.

My point is that operators can’t blame their woes solely on the pandemic, absolving themselves of responsibility.

Operators must take a hard look at themselves and their operations, and ask difficult questions. Doing so can be uncomfortable. But neither positive change nor growth come from resting in the comfort zone.

Image: Tim Mossholder on Unsplash 

"This is the sign you've been looking for" white neon sign on brick wall
by krghospitality krghospitality No Comments

SBA Releases RRF Guide and Forms

SBA Releases RRF Guide and Forms

by David Klemt

"This is the sign you've been looking for" white neon sign on brick wall

Operators in the United States are nearing the opening of the Restaurant Revitalization Fund application process.

The Small Business Administration’s RRF program guide and sample application are now available.

Let’s jump in!

RRF at a Glance

In simple terms, the RRF is the most targeted relief the industry in America has received since the pandemic took hold.

Eligible entities apply for a tax-free grant equal to the amount of a their pandemic-related revenue losses.

To calculate a grant amount, an applicant subtracts 2020 gross receipts from 2019 gross receipts. Applicants must deduct first-draw PPP and second-draw PPP loans, even if they’re paid back or forgiven. Any economic disaster loans—Economic Injury Disaster Loans, for example—are not RRF deductions.

Per the SBA, operators do not need to register for a System for Award Management (SAM.gov) account, meaning they no longer need to acquire a DUNS number.

RRF Eligibility

As the SBA’s RRF program guide states, eligible businesses A) must not be closed permanently, and B) are places where customers gather primarily to consume food or drink. Such entities include:

  • restaurants;
  • bars;
  • saloons;
  • lounges;
  • taverns;
  • food trucks, carts and stands;
  • snack and non-alcoholic beverage bars;
  • licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase product; and
  • other similar places of business in which the public or patrons assemble for the primary purpose of being served food or drink.

However, that’s in no way the entire list of eligible businesses. Bakeries, breweries, microbreweries, brewpubs, taprooms, distilleries, wineries, and tasting rooms are eligible if they can provide documentation (which must accompany their application) that:

  • on-site sales to the public comprised at least 33% of gross receipts in 2019; or
  • original business model should have contemplated at least 33% of gross receipts in on-site sales to the public if they’ve yet to open or opened in 2020.

Interestingly, it’s possible for an inn to be eligible for the RRF. Such a business is subject to the same eligibility requirements as bakeries, breweries, etc.

Eligible Expenses

Businesses that receive an RRF grant may use the funds for eligible expenses during their covered period. That timeframe is the “period beginning on February 15, 2020 and ending on March 11, 2023.” Should the business close permanently, that period will end when the business permanently closes or on March 11, 2023, whichever occurs sooner.”

A grant recipient must return any funds to the Treasury if they’re unable to use for eligible expenses by the end of the covered period.

So, which expenses are eligible per the SBA for the RRF program? Below is a short list of eligible expenses:

  • Payroll costs (sick leave, costs for group health care, life, disability, vision, or dental benefits during periods of paid sick, medical, or family leave, and group health care, life, disability, vision, or dental insurance premiums).
  • Payments on any business mortgage obligation, both principal and interest (Note: Excludes any prepayment of principal on a mortgage obligation).
  • Business rent payments, including rent under a lease agreement (Note: Excludes any prepayment of rent).
  • Construction of outdoor seating.
  • Business supplies (including protective equipment and cleaning materials).

For the full list of eligible expenses and many more RRF details, please click here to download and view the entire SBA RRF program guide. To view the sample application and prepare for the process to begin, click here.

Disclaimer

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

Image: Austin Chan on Unsplash 

Canadian flag against blue sky and white clouds
by David Klemt David Klemt No Comments

Celebrate National Takeout Day!

Celebrate National Takeout Day!

by David Klemt

Canadian flag against blue sky and white clouds

Today is the big day: National Takeout Day in Canada!

Canada Takeout is challenging Canadians to place takeout orders and set a national record.

Obviously, this national challenge is very straightforward—if you’re in Canada, order takeout!

Take Part

As an operator, make sure your loyal customers know to participate today. You know what that means—flood social media.

If there was ever a right time to leverage your social media channels, it’s today.

Post about your takeout menu. Post about any specials you’re offering to entice your customers to place takeout orders. Show off your food. Use the hashtags #takeoutday and #Canadatakeoutrecord. Encourage your customers to post their orders and use the same hashtags.

Also, ensure your receipt printing system is set to label takeout orders as “Takeout” on receipts. That makes it possible for your customers to upload their receipts to the Takeout Tracker; make sure you tell your customers to do that so they can be counted.

Go All In

Canada Takeout’s mission is “reminding Canadians to order takeout.” The organization is helping Canada set the all-time record for takeout orders today in several ways.

We’ve been over their hashtags and that you should absolutely use them. However, Canada Takeout has also created social media assets anyone can download and use. One of these assets features a fantastic slogan: “Eat well. Support local. Set a record.”

Click here, scroll down, and download. While you’re at it, make sure you’re following Canada Takeout on Instagram and Facebook.

Keep it Going

This isn’t Canada Takeout’s first initiative. The organization launched the inaugural National Takeout Day last year, April 15, 2020.

Per a press release, the hashtag #takeoutday has earned more than 160 million impressions, reaching nearly 53 million people.

Canada Takeout also celebrates other food-related holidays. Visit the site and you’ll see that they’re looking forward to Thai Food Day (April 21), Tomato Day (April 28), and Mexican Food Day (May 5).

Get your takeout menu ready, promote it on social, and help set a record today!

Image: chris robert on Unsplash

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

5 Books to Read this Month

5 Books to Read this Month

by David Klemt

Flipping through an open book

Spring is traditionally the time when we’re meant to reinvent or otherwise better ourselves. These books can help you do just that.

Some will help you expand or enter this business, others will boost your marketing and social media, and a couple will help you refresh your drink menu.

With restrictions easing and vaccination rates in the United States growing, now’s the time to improve yourself and your business.

Prepare now for pent-up demand for in-person dining and drinking.

Food Truck Business Guide for Beginners

Looking to enter this industry with a food truck or expand your existing business with one? This book is a great place to start.

Food Truck Business Guide for Beginners is a comprehensive guide that covers:

  • common mistakes that lead to food truck failure, and exactly how to avoid them;
  • the most successful ways to secure funding;
  • how to master marketing;
  • best practices for passing health inspections;
  • tackling and mastering marketing for your business;
  • and many more topics.

The Terroir of Whiskey: A Distiller’s Journey Into the Flavor of Place

Dr. Rob Arnold is a plant biochemist and the master distiller at TX Distillery. To say he understands the science of whiskey and terroir is obvious.

What’s less obvious is the direction Dr. Arnold’s book heads into. He takes readers to distilleries in Kentucky, Ireland, Scotland and elsewhere, but he takes things further.

In The Terroir of Whiskey, Dr. Arnold shines a light on plant breeders, local farmers, and distillers bringing back “lost” grains. These same innovators are also attempting to create new grains to further develop terroir.

This book will definitely enhance your whiskey knowledge and engagement with guests.

Rad Cocktails

Yes, this book’s description states that it focuses on the home bartender.

No, that doesn’t mean bartenders, operators, and other hospitality pros can’t learn from it.

Rad Cocktails, in addition to including awesome illustrations, also embodies a growing cocktail trend: simplification. Innovative cocktails don’t have to be complicated or take ten minutes to build.

Beautiful Booze: Stylish Cocktails to Make at Home

Natalie Migliarini, also known as Beautiful Booze, has more than 95,000 followers on Instagram. Her cocktail recipes, photographs and mastery of social media help her stand out in a roiling sea of influencers.

Her first book, Beautiful Booze: Stylish Cocktails to Make at Home, also targets home bartenders…on the surface. This book, creative cocktail recipes, can help elevate anyone’s bartending skills. The beautiful photography will also help inspire anyone to take their social media shooting to the next level.

Hacking the New Normal: Hitting the Reset Button on the Hospitality Industry

Alright, this may seem self-serving. However, I wouldn’t have written the foreword for a book I didn’t believe this book would truly help people.

Millions of hospitality industry professionals’ lives were imperiled at the start of last year. We continue to innovate and adapt to overcome unprecedented challenges.

Hacking the New Normal addresses the need for an industry-wide reset and seeks to guide operators through rebuilding for the long term, and to strengthen the industry moving forward.

Image: Mikołaj on Unsplash 

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

Stand Out with Weird Holidays: April

Stand Out with Weird Holidays: April

by David Klemt

Stay Weird neon sign with purple background

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

Several “holidays” are set against every date on the calendar. They range from mainstream to food focused to weird.

Focus on the latter to raise eyebrows, carve out a niche for your restaurant or bar, and attract more guests.

Of course, you shouldn’t try to celebrate every holiday, weird or otherwise. Focus on the days that are authentic to your brand; resonate with your guests; and help you grab attention on social media.

April 14: National Reach as High as You Can Day

This is a holiday that will likely work best on social media. Just like there’s always a holiday and people like to say “there’s always a tweet,” there’s always a hashtag.

Use this day (and its accompanying hashtag) to highlight staff who want to participate, along with your venue.

Of course, if you want to involve your guests in person, go for it. Put your head together with your staff and get creative.

April 15: National Take a Wild Guess Day

You can take promotions centered around this day in several directions. The simplest way is to use the holiday to engage with followers on your social channels.

Consider borrowing from the “wrong answers only” posts on Instagram. Post a blurred, pixelated or “censored” item, like a bottle. In the caption, ask followers to “guess” what it is—wild guesses only.

This holiday also works well with blind tasting events.

April 16: Wear Pajamas to Work Day

I’d say this holiday is fairly self-explanatory. Let your front-of-house staff participate by wearing pajamas, with full team buy-in. Or, encourage your guests to wear their pajamas to your restaurant or bar.

If this holiday fell on a Saturday or Sunday, this would be a great day for a brunch promo. Of course, there’s nothing to say you can’t execute a Friday brunch.

April 16: National Bean Counter Day

In the United States, this holiday is taking place a month before the Tax Day deadline. If you’re so inclined, you could offer a deal to all the tax preparers and accountants in your area.

Although, you can also go a completely different direction. You can fill a large jar with beans—coffee would be great—and have guests guess how many there are. You can even post the jar full of beans to social, encouraging follower engagement. Closest guess wins a prize.

April 22: National Jelly Bean Day

Oh, hey… Remember that bean-counting holiday from way up there? I wonder if that bean-guessing idea would work for this holiday…

April 23: National Talk Like Shakespeare Day

If you think you or your social media manager can handle it, encourage your followers to describe your restaurant or bar as though they’re the Bard himself.

Or, as a Shakespearean translator would explain it, “Encourageth thy followeth’rs to describeth thy restaurant ‘r bar as though those gents’re the Bard himself.”

April 25: National DNA Day

Yesterday, I shared how our DNA plays a significant role in how we perceive bitter flavors. National DNA Day would be a great time to plan and execute a PTC strip and cocktail event.

April 27: National Tell a Story Day

How well do your loyal guests know you and your brand? How well do they know your staff?

National Tell a Story Day is an excellent time to leverage the story features on your social channels. Show off the venue and tell your brand’s story. If you have team members who want to participate and tell share a story, that’s a great way to engage with followers and guests.

April 28: National Superhero Day

If there was a ever a day to encourage your staff and/or guests to dress up for a fun time… National Superhero Day also leverages Shudder’s “Halfway to Halloween” event.

To take this holiday in another direction, you can also celebrate members of your community who give back to others by giving back to them.

“Weird” holidays aren’t just a dynamic way to engage with guests. Asking your team for ideas for holiday promotions is an excellent way to keep them engaged, which is a smart way to retain staff.

Image: Dan Parlante on Unsplash 

Please ask for our brunch menu chalk restaurant sign
by David Klemt David Klemt No Comments

Dial In Your Brunch Before Mother’s Day

Dial In Your Brunch Before Mother’s Day

by David Klemt

Warming weather, pent-up demand, and less-restrictive Covid rules—at least in the United States—make brunch viable in many markets.

Plus, we’re just a month away from Mother’s Day. If everything goes right, dining restrictions won’t keep operators from capitalizing on this big brunch holiday.

Considering your brunch menu now—including your Champagne and sparkling drinks—will help you dial it in before Mother’s Day.

To help you perfect your brunch operations, let’s look at a casual chain, a taco shack, a fine-dining restaurant, and a casual independent restaurant that focuses on comfort foods.

Las Vegas

Things are looking up for Las Vegas. Nevada’s current Covid-19 status is Mitigation.

Restaurants, bars, pubs, breweries, distilleries and wineries may operate at 50-percent indoor capacity. There’s no occupancy limit for outdoor dining, but operators must follow social distancing guidelines.

The city is known for its buffets, of course. Some are open again, thanks to the easing of restrictions. However, Las Vegas buffets are known globally—let’s focus on a more traditional restaurant for this list. I also want to venture off the Strip—but not too far.

Lazy Dog is a casual dining chain with a focus on craft beer and dog-friendly operations. Canine buddies are welcome on their patios.

You may be wondering why, given all the incredible restaurants in Las Vegas, I’m looking at a casual chain. The answer, quite simply, is that I want to offer an array of suggestions to get you thinking about your own brunch offerings.

First, there’s the $20 DIY Mimosa. For $20, guests get a 750mL of Freixenet Cava with either orange juice of Kern’s Peach Nectar.

Then there are the brunch menu food items. There’s a generous portion of avocado toast that comes with cheesy scrambled eggs; a Breakfast Burger; a Breakfast Club Sandwich; a couple of breakfast quiches; and Bacon Candy, which is bacon with brown sugar, crushed red pepper chili flakes and black pepper.

Lazy Dog’s brunch is a good example of how to make bottle service fun and accessible, and elevating brunch menus in a way that’s familiar and appealing to guests.

Nashville

It’s still standard operating procedure for guests in restaurants and bars to wear face coverings unless eating or drinking. Capacity is 175 people maximum per floor. There’s a limit of 10 guests per table inside, 25 outside.

However, restaurants and bars are open in Nashville for indoor dining. Venues that serve alcohol must cease service at 1:00 AM and close at 2:00 AM. If there is no alcohol service, a restaurant may remain open for 24 hours.

Redheaded Stranger takes brunch in a deceptively simple direction: breakfast tacos. Brunch doesn’t have to be standard breakfast foods, after all.

Flour tortillas are made in house and pair well with mouthwatering brunch fillings. There are tacos with bacon, tater tots, egg and cheddar cheese; chorizo, egg, sour cream and cheddar; and tater tots, jalapeño crema, red hatch chiles, and American cheese. Oh, and don’t forget their inventive sauces, like Dr. Pepper Hot Sauce.

Of course, no brunch is complete without cool, refreshing drinks. The taco hot spot offers Bloody Marys, Mimosas, Margaritas, and frozen cocktails.

Orlando

Florida is in Phase 3 of their reopening plan. That means restaurants, bars and nightlife venues are open for business.

There’s an executive order in place in Orange County, Florida, mandating face masks in public settings. Orlando is in Orange County.

Otherwise, it’s business as usual.

Chef’s Table at the Edgewater is an award-winning fine dining restaurant. People travel from all over the world for the food and experience.

The Chef’s Table brunch menu features upscale but accessible fare. There are Duck Fat Fries to share (or keep to yourself); Lobster Mac & Cheese; a trio of Mini Beef Wellingtons; Chicken and Waffles made with sweet-tea-brined chicken and bourbon maple syrup; Vegan Chilaquiles Verdes to which one can add a sunny-side-up egg.

Philadelphia

As of April 4, restaurants and bars are able to enjoy relaxed Covid restrictions. One of the biggest reasons for restaurants and bars to rejoice is the return of bar services. Barriers are required promote social distancing.

As far as indoor capacity restrictions, restaurants and bars that self-certify may operate at 75 percent. Venues that don’t self-certify may open at 50 percent indoor capacity.

Establishments can serve alcohol without the purchase of food, and there’s no longer a curfew for removing alcohol from tables.

One Philly restaurant that got our attention with their brunch menu is the Twisted Tail. The Headhouse Square eatery offered a $39/person prix fixe menu for Easter, taking full advantage of Pennsylvania’s new Covid regulations.

Their “standard” brunch menu features creative items such as Crawfish Mac & Cheese, Beer-Battered Cheese Curds, and Buttermilk Chicken Sandwich.

Image: Natasha Kapur on Unsplash 

Person pulling apart melty grilled cheese sandwich
by David Klemt David Klemt No Comments

Grilled Cheese Day: Mastering the Melt

Grilled Cheese Day: Mastering the Melt

by David Klemt

Person pulling apart melty grilled cheese sandwich

There are few comfort foods more popular than a well-made, melty grilled cheese sandwich.

It’s such a perfect comfort food that it has its own national holiday in the United States.

National Grilled Cheese Sandwich Day is April 12 in the US. From what I’ve read, Canada also gets in on the fun.

Melt Mastery

If you want to make the best grilled cheese sandwiches, not just any cheese will do.

The saying goes that you can’t squeeze blood from a stone. Well, you also can’t squeeze a melt out of a hard cheese cheese.

So, you want to make one of the comfiest of comfort foods. Cheese selection matters. Here’s what to consider:

  • Moisture content. Hard cheeses have very little water content and therefore don’t fully liquify.
  • Fat content. Cheeses with a high fat content melt very well.
  • Acidity. Cheeses that are highly acidic get stringy when melted. Acid-curded cheeses (vegan, many goat cheeses) don’t melt much, if at all.
  • Age. If you want melty cheese that results in that visually appealing cheese pull, look for fresh and unaged cheeses.

Melt Mates

It’s tempting to throw the cheese drawer at a sandwich. If one cheese is great, more cheeses are even better, right?

Wrong. Certain cheeses melt together better than others. Consider this:

There are restaurants that have grilled cheese eating challenges. Complete such a challenge, bask in glory forever. The reason this particular challenge must be completed quickly is melting points. As the sandwich cools, the cheeses congeal. The harder, lower-fat cheeses make it much more difficult to finish the admittedly ridiculous challenge sandwich.

So, which challenges melt the best and tend to play well together? Check out the list below:

  • American
  • Blue Cheese
  • Brie (works particularly well with fruit slices, jam and aged Cheddar)
  • Cheddar (look for younger versions for the best melt)
  • Colby
  • Comté
  • Fontina
  • Gruyère (again, younger versions tend to be better for grilled cheese sandwiches)
  • Monterey Jack
  • Mozzarella
  • Muenster
  • Pepper Jack
  • Provolone
  • Raclette
  • Taleggio

Become Legend

Comfort foods have become big-time revenue generators during the pandemic in America and Canada. There’s no reason to believe that’s going to change any time soon.

Master your melt and your sandwiches will become legend. Master the sides, dips and other accoutrements that enhance your legendary sandwich(es) and you’ll become a grilled cheese god.

Image: Nathan Dumlao on Unsplash

Draft beer on bar
by David Klemt David Klemt No Comments

This Would Be a Good Time for a Beer

This Would Be a Good Time for a Beer

by David Klemt

Draft beer on bar

New Beer’s Eve and National Beer Day are relatively new American holidays closely related to prohibition and Repeal Day.

I’m sure you’re thinking, “Wait a second—Repeal Day takes place in December. What’s wrong with you?”

First, you’re right. Second, we don’t have time to get into all of that.

However, beer became legal again well before the Eighteenth Amendment was repealed.

The Cullen–Harrison Act

It’s 1933 and a United States Senator and a Congressman sponsor a bill changing the definition of “intoxicating beverage.”

The bill is aptly known as the Cullen-Harrison Act. It doesn’t legalize all beer but it makes it legal to sell beer with alcohol content no greater than 3.2 percent.

Such alcohol content, it’s thought, is so low as to not be intoxicating.

Congress enacts the so-called Beer Permit Act on March 21, 1933. President Franklin D. Roosevelt signs the act into law the next day, and it goes into effect April 7, 1933.

President Roosevelt, signing the Cullen-Harrison Act, famously says, “I think this would be a good time for a beer.”

National Impact

Beer drinkers—and very likely people just looking for a legal drink—rejoice, obviously.

Across the United States, people gather in droves outside breweries. According to reports, people will consume 1.5 million barrels of beer the day the Cullen-Harrison Act becomes the law of the land.

Fast forward to 2009. Justin Smith, who lives in Richmond, Virginia, at the time celebrates the first National Beer Day. Smith sets off a chain of events involving social media and Untappd. In 2017, Virginia officially recognizes National Beer Day.

Let’s Celebrate!

National Beer Day is accompanied by New Beer’s Eve.

The latter celebrates those brave and thirsty souls that lined up outside our nation’s breweries the day before the Cullen-Harrison Act went into effect.

We get to celebrate two beer holidays this week: New Beer’s Eve on Tuesday and National Beer Day on Wednesday.

New Beer’s Eve is an excellent day for operators to showcase their newest beers.

Both days are ideal for highlighting 0.0 and 0.5 beers, along with what we now refer to as “session” beers (5.0 percent and lower).

Oh, and don’t forget to use President Roosevelt’s famous quote when promoting these two holidays: “I think this would be a good time for a beer.”

Image: cottonbro from Pexels

Busy bar in black and white
by David Klemt David Klemt No Comments

The 5 Ds of Bystander Intervention

The 5 Ds of Bystander Intervention

by David Klemt

Busy bar in black and white

One non-negotiable for operating a restaurant, bar, nightclub or other hospitality venue is ensuring the safety of guests.

Harassing, threatening and violent behavior cannot be tolerated, period. Some venues employ trained and certified security tasked with keeping patrons safe.

However, not every business in this industry, restaurants for example, employ or retain security personnel. There are online and in-person security courses that owners, managers and staff can complete, and I encourage operators to look into doing so. Some courses can not only empower participants, they can result in the lowering of insurance premiums they’re considered so effective.

Additionally, it’s wise to study conflict resolution and de-escalation. Both are valuable skills in hospitality and other areas of our lives.

In the meantime, a global movement called Hollaback! has come up with the Five Ds of Bystander Intervention. These began as the Three Ds by Green Dot in the early 2000s. In 2015, they became the Four Ds. In 2017, a fifth “D” was introduced.

You’ll find the Five Ds below. Not every step works perfectly on the operations side but they’re still helpful. Doing nothing is simply not an option.

Distract

Per Hollaback!, distraction is a subtle and creative way to intervene, and the goal is “to derail the incident by interrupting it.” The witness employing distraction engages the victim of harassment directly, ignoring the harasser. Hollaback! provides the following examples of distraction:

  • Pretend to be lost. Ask for the time. Pretend you know the person being harassed. Talk to them about something random and take attention off of the harasser.
  • Get in the way. Continue what you were doing, but get between the harasser and the target.
  • Accidentally-on-purpose spill your coffee, the change in your wallet, or make a commotion.

It’s important to note that staff will need to read the situation if they witness harassment. Also, some of the above examples don’t really work in a hospitality setting, but you understand the idea.

Delegate

Delegation is simply asking for assistance or help. In many cases, if a staff member is witnessing harassment they’ll have a manager on duty on which they can rely for assistance.

Conversely, a manager can delegate to a staff member to employ the distract technique. In this situation, the staff member engages the victim of harassment and asks if they want them to call law enforcement. The manager can also direct a staff member to call law enforcement.

However, as Hollaback! notes, “a history of being mistreated by law enforcement has led to fear and mistrust of police interventions,” so the victim may not want to involve police. However, the venue must also protect themselves, so it may be necessary to involve law enforcement for documentation and other purposes.

Document

Along with protecting the victim and putting a stop to harassment, documentation is a crucial step.

All hospitality venues should be set up to complete incident reports. This protects victims (and therefore other guests and the community) and the business.

Hollaback! instructs a bystander to assess the situation first. If another bystander is already intervening, the witness must assess their own safety. Record the incident only if safe to do so.

Anyone who records the incident should ask the victim what to do with the recording. Don’t post it online—this is a traumatic experience and doing so is a violation in and of itself.

Delay

As Hollaback! explains, many incidents of harassment take place very quickly. It’s possible the incident will be over before a bystander can distract, delegate or document the harassment.

In a restaurant, bar or other hospitality setting, the harasser may exit the venue immediately, before staff can step in. That doesn’t mean everything is back to “normal.”

Hollaback! suggests engaging the victim in the following ways:

  • Ask them if they’re okay and tell them you’re sorry that happened to them.
  • Ask them if there’s any way you can support them.
  • Offer to accompany them to their destination or sit with them for awhile.
  • Share resources with them and offer to help them make a report if they want to.
  • If you’ve documented the incident, ask them if they want you to send it to them.

Direct

More than likely—and unfortunately—this is the step most familiar to bartenders, servers and other front-of-house staff.

Direct means to confront the harasser directly. Of course, this is the riskiest step.

Hollaback! suggests assessing the situation to ensure the bystander is safe physically; the victim is safe physically; the victim wants someone to intervene; and the situation may be unlikely to escalate if they confront the harasser.

Again, operators will have to come up with a plan for addressing harassment, threats and violence. Staff must be aware of policies and what’s expected of them, and they should feel comfortable sharing their thoughts on policies.

Incidents can happen at any type of venue in any location at any time. Doing nothing, however, is unacceptable.

Disclaimer

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

Image: Pixabay

Preparing a cocktail at home for living room tasting event
by David Klemt David Klemt No Comments

Meet Customers Where They Are, Part 2

Meet Customers Where They Are, Part 2

by David Klemt

Preparing a cocktail at home for living room tasting event

We seem to approaching a semblance of normalcy but some consumer behaviors—drinking at home among them—are likely here to stay.

Per Distill Ventures, the living room is the new tasting room.

Consumers are drinking at home, drinking during the day, and prioritizing convenience.

So, will you get creative and meet your customers where they are—their living rooms?

The New Tasting Room

Fresh off their third whisky summit, Distill Ventures believes consumers will seek out more at-home experiences.

This is partly due to some regions around the world locking down. Additionally, consumers know they can partake in experiential guests at home.

Consider what some brands are putting together to engage with people at their homes:

  • Cynar: CynArts & Crafts, Paint by Numbers Virtual Party, complete with brushes and paints sent to participants.
  • Campari: Decoding the Science of Bitter, including a PTC strip sent to participants to gauge their bitter response.
  • Espolòn Tequila: Virtual Espolotería, an online bingo-style game.

Distill Ventures and the panelists of their third summit see people’s living rooms as a viable place to engage consumers.

While the latest summit focuses specifically on whisky distillers, brand marketers and retailers, the findings are transferrable.

Don’t Be Left Out

If consumers are going to engage more with brands at home, operators must meet them in their living rooms. That means going beyond offering standard delivery.

Obviously, operators need to attract guests to their brick-and-mortar locations. And pent-up demand for in-person experiences is set to explode.

However, that initial explosion in traffic will eventually taper off, and more quickly than we think. That gradual slow-down will make digital engagement crucial.

This industry requires adaptability and agility to survive and thrive. Operators and their teams will need to focus on social, YouTube and webinar-style engagement to engage with current and new customers.

Bar team members who want to participate can share recipes and techniques via live videos. Of course, kitchen team members can do the same.

Scheduling digital events—guided tastings and cooking classes—can also draw customers. Operators should just make sure they don’t give too much away to their audience so they’ll feel compelled to visit in person as often as they can.

Succeeding with these events opens the door to potentially lucrative collaborations. Operators should reach out to brand partners for branded, themed events.

With enough lead time, packages can be put together and delivered with partner help. Of course, in “help” in this context means “dollars and/or product.”

You’ll never know what support your partners are willing to provide if you don’t ask.

Image: Boozy Events on Unsplash 

The face on a bank note
by David Klemt David Klemt No Comments

PPP 2nd Draw vs ERTC vs RRF: What to Know

PPP 2nd Draw vs ERTC vs RRF: What to Know

by David Klemt

The face on a bank note

Some regions, states and people are behaving like the pandemic is over but our industry is still in crisis.

There is good news in the form of a few resources business owners can utilize.

Let’s take a look at the the Employee Retention Tax Credit, second Paycheck Protection Program draw, and Restaurant Revitalization Fund.

Paycheck Protection Program

Today is your last day to apply for the second PPP draw. That’s why we’re starting here and why, if you haven’t yet, you need to apply now.

According to the Small Business Administration, a borrower is (generally speaking) eligible if they:

  • previously received a first-draw PPP loan and will use (or has used) the full amount only for authorized uses;
  • have no more than 300 employees; and
  • are able to demonstrate at least a 25-percent reduction in gross receipts between comparable quarters in 2019 and 2020.

Applicants seeking a second draw need to know the following:

  • No extension date has been announced for the second PPP draw.
  • Each single borrower is limited to a $2 million loan.
  • Using the first draw as a model, the average loan size may be around $128,000.
  • The terms of second-draw PPP loans are the same regardless of who is borrowing and who is lending.

Use SBA Lender Match to find a lender today.

Employee Retention Tax Credit

When it comes to relief for this industry, much of the focus is on the PPP and RRF.

However, the ERTC can be a valuable resource for eligible restaurants.

First, what’s the ERTC? It’s a payroll tax credit—fully refundable—meant to persuade employers to keep and compensate their workers when they’re not fully operational.

Second, who’s eligible? To claim ERTC for a given calendar quarter, restaurant operators must show:

  • full or partial suspension as a result of orders from a governmental authority limiting commerce, travel or group meetings due to Covid-19; or
  • they experienced a significant decline in gross receipts during the calendar quarter when compared to 2019.

The above criteria apply to the quarter an operator is applying for the ERTC.

To better understand the ERTC, we’re including an example from the National Restaurant Association:

Henry’s Hotcakes (HH) received a $120,000 PPP loan in April 2020. These funds were fully spent on its 10 employees by September 20, 2020. Previously, HH would not have qualified for ERTC. However, HH can now reach back to its wages for the fourth quarter of 2020 (OCTDEC) and obtain up to $5,000 per eligible employee (50% credit of up to $10,000 in eligible wages) in ERTC.

Click here to read more about the ERTC on the IRS website.

Restaurant Revitalization Fund

The Restaurant Revitalization Fund is the most recent relief resource to come to fruition, so it stands to reason that it’s top of mind for most operators.

According to recent reporting, the SBA—the agency responsible for overseeing the RRF—is aiming for early April to launch the fund.

Here’s what restaurant and bar operators need to know now:

  • A grant is equal to the amount of a restaurant’s pandemic-related revenue losses.
  • Grants are tax-free.
  • To calculate a grant amount, subtract 2020 gross receipts from 2019 gross receipts. Operations must deduct first-draw PPP and second-draw PPP loans, even if they’re paid back or forgiven.
  • Any economic disaster loans—Economic Injury Disaster Loans, for example—are not RRF deductions.
  • Per the SBA, operators do not need to register for a System for Award Management (SAM.gov) account, meaning they no longer need to acquire a DUNS number.

The following are eligible RRF expenses:

  • broad operational expenses;
  • payroll, rent, and mortgage interest;
  • “normal” food and beverage inventory;
  • various supply purchases (PPE, for example);
  • property damage costs related to public disturbances in 2020;
  • debt obligations to suppliers before covered period;
  • interest payments on any other debt obligations incurred prior to Feb 15, 2020; and
  • refinancing EIDL.

Bear in mind that when it comes to the PPP, ERTC and RRF, changes in requirements and other processes are subject to change. Operators must stay up to date on these and other programs.

Disclaimer

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

Image: Freddie Collins on Unsplash

Chess pieces on a chessboard
by David Klemt David Klemt No Comments

Restaurant or Bar Dream? Make Your Move

Restaurant or Bar Dream? Make Your Move

by David Klemt

Chess pieces on a chessboard

If your dream is to open a restaurant, bar or nightclub, you’re not doing yourself any favors by waiting to make it a reality.

The same goes for starting up any other type of hospitality business.

We’re in uncharted territory and things seem unstable. But waiting to move forward with your concept is setting you back.

Industry Challenges

We can all agree that the destruction wrought upon the hospitality industry in 2020 continues to be felt today.

Tens of thousands of business closures. Millions of jobs and hundreds of billions of dollars in revenue lost.

Some experts say the veteran operators and workers won’t be back. The financial damage and psychological trauma will drive them out of the industry. Others disagree, myself included, saying those operators won’t stay down for long. This industry works its way into people’s blood.

The pandemic is responsible for the permanent or long-term closure of nearly 20 percent of restaurants in America. Most of the restaurants lost were well-established operations. The industry is down 2.5 million jobs that it will take years to recover.

Since March of last year, Canada has seen the closure of 10,000 restaurants. The country is facing the loss of 800,000 industry jobs.

Waiting to open a restaurant or bar, therefore, seems to make sense. Only no, it doesn’t.

Don’t Wait

Time is rarely on anyone’s side. And I’m not the first to say that perfection is an illusion. Our industry would be a fraction of what it is if people chose to wait for the “perfect time” to open.

That doesn’t mean it’s great to throw caution—and hundreds of thousands of dollars—to the wind.

Rather, those with a vision for a business in this industry owe it to themselves to move forward.

Let me put it this way: If you have an idea but you’re waiting for “the right time,” you’re already behind.

Forward Progress

The key is being strategic, making calculated decisions.

There are operators who successfully opened new concepts in the midst of the pandemic. We’re going to see new entrants in this industry this year as well. Will you be among them?

Maybe you’re not ready to break ground or sign a lease. Perhaps you’re not ready to send in a crew to renovate a space.

However, there are crucial moves you can make so that when you’re ready ready, you can move quickly. Think agility.

Will you be applying for a grant to fund part of your business? Complete the paperwork and submit it now.

Do you need a consultant? Do your research now and schedule those conversations.

You need demographic, feasibility and other studies done. Will you do them? Will you retain the services of an industry researcher?

If you’re not yet ready, take meaningful steps today because your future competitors are making their moves. It takes longer than you think for each crucial step to be completed, and there are dozens.

Your concept won’t become a reality if it only lives in your head. Don’t watch your opportunity to thrive in this industry pass you by.

Image: Kei Scampa from Pexels

Make My Ghost Kitchen container exterior
by David Klemt David Klemt No Comments

Container Kitchens: The New Footprint

Container Kitchens: The New Footprint

by David Klemt

Make My Ghost Kitchen container exterior

Would it be a surprise to anyone after the past twelve months that shipping containers may be the new commercial kitchens?

According to two 2021 Restaurants Canada Show panelists, custom containers are the future.

A partnership between a builder and designer is providing restaurateurs with an intriguing solution.

Meet the Problem Solvers

Jonathan Auger is the president of Juiceworks Exhibits. The company operates out of Mississauga, Ontario, Canada.

Juiceworks designs, engineers, and fabricates memorable exhibits and installations. Click here to view projects for clients such as Genesis, Infiniti and Volvo.

Nicholas Goddard is the founder of Portage Design Group, located in Toronto.

Portage specializes in interior design and offers a full suite of services, including research, sophisticated design, and construction management. The company’s restaurant design work can be seen here.

Together with a small but skilled team, Auger and Goddard have formed Make My Ghost Kitchen.

Custom Container Flexibility

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

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

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

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

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

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

Custom Container Costs

Make My Ghost Kitchen’s custom containers come with the necessary equipment. They also feature a delivery window and fabricated with a small pickup vestibule.

Obviously, prices go up with the quality of equipment. Other customizations, it stands to reason, can also push container costs up.

On average, however, Auger says an eight-foot by 20-foot container can be had for as low as $20 per square foot. Prices can climb north of $50 to $75 per square foot, however.

Whether functioning as a ghost kitchen or marketing showpiece, operators can choose from ventilation solutions. The containers can vent to interior (which heats them up quickly) or exterior. Another cost to consider is water. If a municipality doesn’t grant access to their water it will need to be trucked in.

Finally, a custom-kitted kitchen can be an asset. If an operator decides it’s time to move on, they have the potential to sell their container.

Image: Make My Ghost Kitchen

Stop Asian hate signs
by David Klemt David Klemt No Comments

AAPI-Owned Restaurants in Canada

AAPI-Owned Restaurants in Canada

by David Klemt

Stop Asian hate signs

KRG Hospitality stands in solidarity with the Asian American and Pacific Islanders (AAPI) community in Canada.

The hate and violence directed toward AAPI communities is unacceptable and reprehensible—it has no place in this country.

Below, we’ve listed AAPI-owned restaurants people can support in the three main Canadian markets in which we operate. Of course, we encourage people to find additional AAPI-owned businesses they can support.

We must come together and support one another. The hospitality industry is about diversity and inclusion.

We’re a family that looks out for each other and the communities we serve. The divisiveness and hate must stop.

Calgary

Silver Dragon (Cantonese and Szechuan cuisine). Located in Chinatown.

Foreign Concept (Modern Pan-Asian cuisine). Located in Beltline.

U & Me (Chinese cuisine). Located in Chinatown.

Pho Dau Bo (Vietnamese cuisine). Located in Forest Lawn.

Pad Thai Restaurant (Thai cuisine). Located in North Mount Pleasant.

Lola’s Filipino Kitchen (Filipino cuisine). Located in Meridian.

Ke Charcoal Kitchen (Yakitori and sushi). Located in Beltline.

Toronto

R&D (Modern Asian cuisine). Located in Chinatown.

Nami (Japanese cuisine). Located in Moss Park.

Tinuno (Filipino cuisine). Located in St. Jamestown.

Phở Hưng (Vietnamese cuisine). Located in Chinatown.

Dumpling House (Chinese cuisine). Located in Chinatown.

Hong Kong Bistro Cafe (Hong Kong-style comfort and fast food). Located in Chinatown.

House of Gourmet (Chinese cuisine). Located in Chinatown.

Vancouver

Chinatown BBQ (Modern Cantonese-style cuisine). Located in Chinatown.

Bao Bei (Chinese cuisine). Located in Chinatown.

Kulinarya Filipino Eatery (Filipino cuisine). Located in Grandview-Woodland.

Viet House (Vietnamese cuisine). Located in the Lower Mainland.

Yuwa (Japanese cuisine). Located on the West Side.

Maenam (Thai cuisine). Located in Kitsilano.

Torafuku (Pan-Asian cuisine). Located in Strathcona.

Image: Jason Leung on Unsplash 

Stop Asian Hate protest sign in San Francisco, CA
by David Klemt David Klemt No Comments

AAPI-Owned Restaurants to Support

AAPI-Owned Restaurants to Support

by David Klemt

Stop Asian Hate protest sign in San Francisco, CA

We at KRG Hospitality stand in solidarity with the Asian American and Pacific Islanders (AAPI) community across the United States.

The hate and violence directed toward AAPI communities has no place in this country—enough is enough.

We want to bring attention to Stop AAPI Hate, a nonprofit organization with multiple resources, including incident reporting.

Below, we’ve listed AAPI-owned restaurants people can support in the four main American markets in which we operate. Of course, we encourage people to do their own research and find additional AAPI-owned businesses they can support.

The hospitality industry is multi-cultural and all about diversity and inclusion. We’re a family that looks out for each other and the communities we serve.

We need to come together and support one another. The divisiveness and hate needs to stop.

Las Vegas

Oming’s Kitchen (Filipino cuisine). Located southwest of Silverton Casino Hotel.

Lotus of Siam (Northern Thai cuisine). Located in University District or Southridge.

Soho Japanese Restaurant (Japanese cuisine). Located in Concorde Plaza.

Soho SushiBurrito (Sushi burritos, rice bowls, salads and nachos). Located in Rancho Sereno, northwest of Silverton Casino Hotel, and at the UNLV campus.

Momfuku (Contemporary Japanese, Korean and Asian-American cuisine). Located inside the Cosmopolitan.

Nashville

Steamboys (Chinese comfort food). Located in Germantown, Hermitage and Nolensville.

Soy Bistro (Korean-inspired cuisine). Located in Brentwood, TN.

Miss Saigon (Vietnamese cuisine). Located in Charlotte Park.

The Smiling Elephant (Thai cuisine). Located in Historic Waverly.

Tànsuo (Chinese cuisine). Located in North Gulch.

Orlando

Sticky Rice Lao Street Food (Laotian cuisine). Located in Colonialtown South.

Kadence (Sushi and sake bar). Located in Audubon Park.

BBB Tofu House (Korean cuisine). Located in Westside Crossings.

Taglish (Filipino cuisine). Located in Lotte Market.

Kai Asian Street Fare (Asian cuisine). Located in Winter Park, FL.

Philadelphia

Chubby Cattle (Chinese cuisine). Located in Chinatown.

Mi ‘n Tea (Vietnamese bánh mì and Taiwanese bubble tea). Located in Manayunk.

Perla (Filipino cuisine). Located in East Passyunk.

Philly Poké (Hawaiian poke bowls, sushi, Japanese and Chinese cuisines). Located in Chinatown Square.

Seorabol Center City (Korean cuisine, Korean barbecue and sushi). Located in

Image: Jason Leung on Unsplash 

Light bulb idea concept on wood background
by krghospitality krghospitality No Comments

NRN Shares Inclusion Insights Report

NRN Shares Inclusion Insights Report

by David Klemt

Light bulb idea concept on wood background

Featuring insights from their 2021 Power List, an inclusion report from American trade publication Nation’s Restaurant News is now available.

Overall, NRN’s 2021 Power List consists of C-suite and executive heavy hitters from some of the most influential restaurant groups.

For example, Domino’s, Yum Brands, &pizza, and Momofuku Restaurant Group, are on this year’s list.

To compile their 2021 Power List: Leadership & Inclusion Insights report, NRN asked their power players to identify a team member who embody inclusivity.

Lessons Learned from 2020

NRN’s report is broken down into five sections; this is the first.

Reading through the insights in this section, you’ll find that agility and adaptability are crucial to navigating crises. That will come as no surprise to many.

However, what really strikes me are the words of Donnie Upshaw, SVP for people at Wingstop. Upshaw cites the importance of culture and core values:

“Our core values, known as ‘The Wingstop Way’—service-minded, authentic, entrepreneurial and fun—have been and will continue to be our guiding light through all seasons of our business.”

Those core values, along with Wingstop culture and a focus on retaining top talent, are keys to their successful navigating of the pandemic.

Accomplishments During a Pandemic

The pandemic has torn apart the hospitality industry and continues to do so. In America, we’re just now seeing specific relief targeting foodservice businesses.

Given the situation, just surviving the pandemic is an accomplishment.

Still, chain and independent operators are forging paths forward and inspiring others inside and outside of the industry.

Erika Palomar, COO of the Independent Restaurant Coalition, says the group “faced the darkest hours, together.”

Palomar continues: “They held fast to their commitment to change the most lives possible. This group has the remarkable ability to look beyond their door and inspire others to take action and make bold changes that will serve this industry and our society for the better.”

Importance of Leadership & Impact

The job of owners, operators, managers, and mentors is to lead. Doing so is one of the most effective tools for growing a business and retaining talent.

Adversity, of course, is one of the—if not the—greatest challenges to leadership.

Beth Scott, president of Fleming’s, says building trust is the first step in realizing the core of what it means to be a leader: inspiring and influencing, not commanding.

Jason Crain, CRO of Slutty Vegan, says, “Leading is dynamic and solution oriented.” Crain points to knowing when to implement different forms of leadership as a crucial element.

Further Insights

NRN’s report has two more categories, “Fostering Diversity & Inclusion” and “The Future of Foodservice.” There are insights from several more power players who drive the missions of inclusivity, diversity and equity.

We encourage you to follow this link and review the report for invaluable motivation and inspiration for your own business.

Image: Free-Photos from Pixabay

Person ordering Uber Eats
by krghospitality krghospitality No Comments

Kitchen Showdown: Virtual vs. Ghost

Kitchen Showdown: Virtual vs. Ghost

by David Klemt

Person ordering Uber Eats

The lines between virtual and ghost kitchens are growing increasingly blurry as they rise in popularity.

The terms aren’t interchangeable—they’re separate concepts.

Let’s snap the two into focus so operators can decide for themselves which, if either, is for them.

Virtual Kitchen

A virtual kitchen or virtual restaurant supports a brick-and-mortar concept. This includes food trucks.

Standard process is as follows:

  • A concept in a certain category seeks to expand their menu options without diluting or otherwise damaging their brand.
  • They create new menu items and sometimes a new brand.
  • Their existing kitchen or kitchens create these new items, which are online- and delivery-only.

A virtual kitchen has a brick-and-mortar location in a technical sense, but the brand’s existence is essentially digital as far as consumers know.

Ghost Kitchen

These facilities are delivery-only and commonly produce virtual brands’ items, which is a possible source of the confusion surrounding ghost and virtual kitchens. A truly virtual brand is only available online, either via its own ordering site or a delivery app—it has no brick-and-mortar location of its own.

We’ve known since the Chicken Wars first started that chicken sells, apparently in all forms. Several virtual brands, largely focused on wings and sandwiches, are succeeding with the help of ghost kitchens.

However, ghost kitchens also rent themselves out to or otherwise enter into contracts with third-party concepts with brick-and-mortar locations of their own to produce their delivery menu items.

The explosive rise of delivery is driving investment in ghost kitchens (former Uber executive Travis Kalanick’s CloudKitchens is an excellent example). It’s also the reason that so many industry experts and speculators declare ghosts “the future of restaurants.”

Not the Same

This quick rundown should clarify the differences between virtual kitchens and ghosts. Their missions may be similar but their operations are not.

Image: Charles Deluvio on Unsplash

Momofuku Las Vegas interior
by David Klemt David Klemt No Comments

Is Gen Z the Workforce Solution?

Is Gen Z the Workforce Solution?

by David Klemt

Momofuku Las Vegas interior

Is Gen Z the solution to the industry’s workforce problem?

That’s one big question posed during the 2021 Restaurants Canada Show.

A panel consisting of Philip Mondor, president and CEO of Tourism HR Canada; Adam Morrison, president and CEO of Ontario Tourism Education Corporation; Jody Palubiski, CEO of the Charcoal Group; and Lori Wilson, manager of people and change at BDO Consulting have answers.

The Problem

Canada’s hospitality industry is facing a labour shortage. In fact, that has been the case since before the pandemic.

According to several sources, the hospitality industry is Canada’s fourth-largest private-sector employer. And yet, there’s a labour crisis.

This is partially due to Baby Boomers retiring. As they leave the workforce, there’s a disparity in the number of people in Canada working or seeking work.

According to a January 2020 report from The Globe and Mail, there were at least 60,000 empty positions in foodservice before Covid-19 lockdowns.

Mondor concurs with that article’s sentiment. He expects “a very large shortfall” over the next year that could force the industry into a four-year recovery.

The Solution?

Neither Wilson, Mondor, Morrison or Palubiski see Gen Z as the solution to Canada’s labour shortage problem.

Now, that isn’t to suggest that operators and managers should dismiss Gen Z. Rather, Mondor suggests including this generation as they enter the workforce without viewing them as the only solution.

“Relying on youth alone is not going to meet the demand,” says Mondor.

Instead, Mondor posits that new Canadians—immigrants—will play a significant role in the hospitality industry moving forward. In fact, Mondor expects immigrants to make up 50 percent of Canada’s workforce.

Recruitment and Training

Palubiski says that what separates Gen Z from other generations is how connected and informed they are. Screen time provides Gen Zers plenty of information about social, regional and global issues.

To recruit Gen Z, Palubiski suggests brands and businesses be transparent about their stances on issues such as sustainability and the climate.

However, that approach to recruiting isn’t just effective when it comes to Gen Z—employees and guests alike want to know where a brand stands.

Morrison says that it’s important to be cognizant of the employment market. Knowing what people are being paid, even if an operator can’t match or beat that rate, is helpful. It’s also part of an effective strategy, says Morrison, to understand the ambitions of candidates to see if available roles will match their motivations.

Retention

Once an operator has built a team, the next step—training—is key to staff retention. And not just training for the specifics of one particular role in a restaurant or bar.

Rather, the panel agrees that this industry does a poor job of documenting transferrable skills. For example, operators can help develop employees’ leadership and conflict resolution skills (among many others) that they can take into other careers. Operators must explain that benefit to employees and help nurture it.

Additionally, the panel suggests looking at training and retention in the following ways to adapt and make businesses in this industry stronger:

  • Invest in people, don’t just hire them. That means training and developing their skills and careers.
  • View hiring and training as investments, not costs.
  • Everyone makes mistakes. True leaders admit their mistakes, fix them, and move forward.
  • Ask this question: Do your employees feel a greater affinity for this industry and your business after they’ve started working with you?

In parting, operators and managers should consider this: Palubiski had to furlough 950 employees due to the pandemic. A staggering 95 percent returned when they were called back. That is effective hiring, training, development and retention to emulate.

Image: Jason Leung on Unsplash

Guests in a restaurant and bar
by David Klemt David Klemt No Comments

Rediscovering Your Guests in 2021

Rediscovering Your Guests in 2021

by David Klemt

Guests in a restaurant and bar

Labatt Breweries of Canada wants operators to get to know their guests all over again in 2021.

Luckily, this isn’t a massive undertaking. However, it requires commitment and an understanding of altered consumer behavior.

During the 2021 Restaurants Canada Show, Labatt presented “Rediscover Your Guest: The 2021 Consumer.”

Christina Veira, bar and beverage curator for the RC Show, hosted the digital session. Labatt panelists included Michelle Tham, head of education and certified Cicerone, and Megan Harris, director of insights and strategy. Casey Ferrell, vice president of US and Canada Monitors for Kantar Consulting rounded out the panel.

Who’s Your 2021 Guest?

The good news is that Canadians are still consuming beverage alcohol. The less-good news is that they’ve gotten used to drinking mainly at home.

In fact, per Megan Harris, 95 percent of beverage alcohol occasions now happen at home. Harris also says there’s excitement about a return to in-person restaurant and bar service. However, several pandemic-driven behaviors will persist, including:

  • Takeout
  • Delivery
  • Daytime drinking
  • Working from home

Guests are set to unleash a torrent of pent-up demand when they can safely return to restaurants and bars. They want to indulge themselves, have fun and new experiences, but also feel safe.

Generally speaking, younger guests are more tolerant of risk. Conversely, guests over 50 years old are more cautious.

Vaccine Influence

Per Ferrell, there are four distinct vaccine groups in Canada and the United States:

  • People have gotten a Covid-19 vaccine.
  • People who can’t wait to get a Covid-19 vaccine.
  • People who are unsure about Covid-19 vaccines.
  • People who refuse to get a Covid-19 vaccine.

Ferrell says to remove the final group on that list. Doing so shows that about two-thirds of Canadians (and Americans) are in the process of getting the vaccine. Therefore, operators need consider how to address vaccination safety along with vaccination requirements for guests and employees. For Ferrell, the best lever to pull is the one that addresses Covid-19 and vaccine risks.

Additionally, just because the calendar ticked over to 2021 doesn’t mean everything is different. Accordingly, Ferrell feels that Q1 is the “More of 2021” stage of this year. He expects people to open up their bubbles during possibly Q2 or Q3, the “Less Covid-19” stage. Parties that include multiple households will return in force in Q4.

How to Meet 2021 Guest Expectations

First, we must be cautious when people return to restaurants, bars and other venues en masse. That initial boost in traffic driven by pent-up demand will ebb quicker than one would expect.

To get people through the doors, operators will need to focus on:

  1. health and safety;
  2. staff expectations and training;
  3. social interactions and the joy deficit; and
  4. guest experience and journey.

Harris sums up the first point succinctly: Anything that can be touchless, should be touchless. Operators should expect contactless features to remain moving forward. The expectation for hygiene will also remain. Guests will want to see employees cleaning and sanitizing, for instance.

Speaking of employees, operators must address the role they’ll plan in crowd management. Unfortunately, management and employees will have to be ready to enforce health and safety protocols strongly.

As Ferrell notes, long-term lockdown means large swaths of the population need to re-learn how to interact with others. One way to drive guests through restaurant or bar doors is promoting the role they play in socializing. Hospitality businesses facilitate social interaction—it’s one of the industry’s greatest strengths. Equally, restaurants and bars fill people’s joy deficits.

Operators, says Harris, need to consider:

  • every way they can offer an experience guests can’t have at home;
  • how they can capitalize on the daytime drinking experience;
  • how to extend the guest experience—pre-visit and post-visit;
  • how to attract older guests to their venues;
  • leveraging patio spaces; and
  • focusing on messaging that promotes escapism and excitement.

Another interesting consideration concerns table distances. Every operator needs to weigh square feet per guest and distancing tables. Social distance will likely remain important to guests for at least a little while post-pandemic.

Bonus

Ferrell answered a question I asked about Las Vegas specifically. Dayclubs, which largely focus on elevating pool parties, are an integral part of Vegas hospitality.

So, how can they signal their commitment to health and safety as relates to infections?

Ferrell’s answer is that evidence appears to indicate that pools are Covid-19 infection spreaders. Therefore, dayclub operators should focus more on the crowd control aspect of health and safety. Additionally, messaging should focus on indulgence.

After all, says Ferrell, not much is more indulgent than saying, “I’m going to take the day for myself and go to a daylife venue.”

Image: Nick Hillier on Unsplash

Person using Uber Eats on their iPhone
by David Klemt David Klemt No Comments

SevenRooms Reveals Third Party Impact

SevenRooms Reveals Third Party Delivery Impact

by David Klemt

Person using Uber Eats on their iPhone

New findings from SevenRooms, the powerful reservation and guest relationship platform, show the impact third-party delivery has on restaurants.

In partnership with YouGov, a respected internet-based market research and data analytics firm, SevenRooms finds that direct delivery saves operators thousands of dollars per month.

The overall finding of the “Data & Dollars: Revealing the Impact of Third-Party Marketplaces” report is startling. Operators are relying on a technology that in reality is harming them and their bottom line.

Cost of Convenience

Foodservice operators and workers, along with being hospitable in their mission to serve others, are adaptable.

The industry proves this time and time again. This is particularly true of the past 12 months.

Nimble operators pivot quickly, so it makes sense that so many restaurants, bars and other foodservice businesses embrace delivery, takeout and curbside pickup. Doing so is a direct and seemingly logical response to a major shift in consumer behavior to lockdowns, restrictions, and health concerns.

Most operators are well aware that state third-party delivery platforms take a 30-percent commission on average. However, the cost goes beyond devastatingly high fees: operators also lose control of the guest journey.

Real-world Example

SevenRooms illustrates the negative financial impact third-party delivery platforms with three examples: a high-end Italian restaurant in New York; a high-end steakhouse in Los Angeles; and a high-volume casual restaurant in California.

Let’s take a look at the last example.

Over a six-month period, the restaurant fulfills 19,000 combined orders. Delivery makes up 75 percent of these orders, takeout/pickup account for 25 percent. The average order is $33, and over the six-month period the total order volume is $617,500. Had the restaurant implemented direct delivery rather than third-party, they would have saved about $154,000.

Break those savings down and the restaurant would save approximately $25,600 per month that could go to:

  • PPE: 853 boxes of face masks or 196 boxes of gloves.
  • Takeout: 101,000 food containers.
  • Guest experience: 522 tanks of propane to keep guests warm on patios.

Using an average rent amount of $6,000-15,000 per month in Los Angeles, that’s also two to four months’ rent.

Guests Support Direct Delivery

The impact of third-party delivery on restaurants isn’t lost on consumers. Many view ordering food as more than just convenient, they see it as a way to support their favorite businesses.

Luckily, consumers are supportive of ordering delivery, takeout and pickup directly from restaurants.

Per SevenRooms:

  • Firstly, 37 percent of Americans are eager to do anything they can to help restaurants.
  • Nearly half, 48 percent, think it’s more economical to order directly from a restaurant.
  • 28 percent who say they prefer ordering directly to third-party delivery feel that way after seeing their favorite restaurants suffer.
  • 23 percent are informed and think third-party delivery platforms charge restaurants too much in fees.
  • 16 percent feel that the harm done to restaurants by third-party delivery outweighs any benefits.

Leverage Direct Delivery Support

SevenRooms identifies several ways in their report that operators can succeed in getting consumers to order directly.

One way is the platforms’ own Direct Delivery solution. We speak to SevenRooms CEO Joel Montaniel about this solution on our Bar Hacks podcast.

Then, of course, there are an array of incentives consumers are willing to accept in exchange for direct delivery and ordering:

  • 41 percent of Americans would order directly over ordering via third-party if a restaurant has its own app with features such as tracking and communication.
  • 37 percent consider a complimentary item such as an appetizer, drink or dessert in addition to their order an appealing incentive.
  • 32 percent like the idea of a personalized promotion applied to a future order or in-person visit.
  • 28 percent indicate interest in a personalized promotion for their meal such as a discount code or comp item.
  • 17 percent are fans of restaurants using ordering history to customize their menu and experience.

Read the entire report here. To learn more about SevenRooms, please click here. Connect with SevenRooms on Twitter, Facebook, LinkedIn and Instagram.

Image: cottonbro from Pexels

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