Restaurant Operations | KRG Hospitality

Tortilla with beans, cotija cheese and egg

January 10, 2023by David Klemt David Klemt No Comments

Canadian Trends 2023: Technomic

Canadian Trends 2023: Technomic

by David Klemt

Restaurant, bar, and hotel operators will find this year’s data-driven trend predictions from Technomic for 2023 insightful.

Interestingly but perhaps not surprisingly, some operators may be looking beyond North America for inspiration.

Per Technomic, Central and South American cuisines could influence menus in Canada this year. Other food trends that might take hold are “retro” health items, and all manner of pickled foods.

Of course, not every Canadian trend prediction involves F&B. According to Technomic, tech and the guest experience will play important roles.

To review last year’s Technomic predictions, click here. Now, let’s jump into Technomic’s 2023 predictions.

Guest Experience

Certainly, the guest experience should always be top of mind for operators, their leadership teams, and their staff.

In this instance, Technomic isn’t suggesting that the guest experience in general will be a trend. Obviously, with as important as it is to the success of any business, it’s a cornerstone.

Rather, Technomic predicts that guests will continue to feel the need to rein in their spending due to ricing costs and prices. However, the foodservice research firm also believes there’s still heavy desire for social interaction.

So, both those financial and social influences translate to the following: overdelivery.

Operators and their teams must ensure they position their brands well; make guests feel special every visit; and really dial in the guest experience. Specifically, Technomic suggests focusing on younger generations and menus with at least a couple specialty items that aren’t easy for a guest to replicate at home.

In other words, do whatever it takes to entice guests with memorable experience and quality menu items, and keep them coming back for more.

Technology

Multiple industry sources believe that 2023 is the Year of Tech for the hospitality industry. In particular, some sources believe that POS systems will receive significant attention from operators looking to upgrade.

Compellingly, Technomic sees the situation a bit differently. In particular, they’re suggesting that QR code menus may find themselves on the sidelines. Traditional menu, according to Technomic, will make their comeback this year.

Also making a (possible) resurgence? Per Technomic, in-person ordering for carryout and in-person dining.

As far as tech innovations that Technomic expects to take off this year, they see the following as standouts:

loyalty programs;
enhanced/upgraded cooking equipment;
automated inventory software/platforms; and
digital menu boards for back of house.

Culinary

As hinted at above, Central and South American cuisines are expected to take off in Canada, per Technomic.

The research firm provides specific—and delicious—examples:

Honduras: Baleadas tacos
Dominican Republic: Wasakaka sauce
El Salvador: Curtido slaw or relish
Peru: Aji amarillo and rocoto peppers
Bolivia: Saltenas, similar to empanadas

Another culinary trend Technomic predicts will perform well in Canada? Pickled everything.

Okay, maybe not everything. However, Technomic expects “pickling, fermenting, dehydrating and freeze-drying” to “increasingly pop up on menus.” The firm expects that operators will offer a wide range of “unusually pickled items outside of the typical veggies, including proteins and seeds.”

So, if you’re an operator reading this, it may be time to motivate your back-of-house staff to get creative with their pickling ideas.

Finally, pandemic-driven, health-based trend foods like turmeric and ginger may start to fade in popularity. Instead, predicts Technomic, items with “classic” health descriptors such as “natural,” “real,” “free,” “reduced,” and “lower” will get attention from guests looking to eat and drink healthier.

For your own copy of this Technomic report in its entirety, click here.

Image: Roman Odintsov on Pexels

January 9, 2023by David Klemt David Klemt No Comments

Minimum Wage Rises for Most of USA

Minimum Wage Rises for Most of USA

by David Klemt

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

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

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

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

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

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

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

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

States Increasing Minimum Wage

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

Alaska: $10.85 per hour
Arizona: $13.85 per hour
California: $15.50 per hour
Colorado: $13.65 per hour
Connecticut: $15 per hour (June 1)
Delaware: $11.75 per hour
Florida: $11 per hour (September 30)
Hawaii: $12 per hour
Illinois: $13 per hour
Maine: $13.80 per hour
Maryland: $13.25 per hour
Massachusetts: $15 per hour
Michigan: $10.10 per hour (could rise further; lawsuit pending)
Minnesota: $8.63 per hour (small employer); $10.59 per hour (large employer)
Missouri: $12 per hour
Montana: $9.95 per hour
Nebraska: $10.50 per hour
Nevada: $11.25 per hour (July 1)
New Jersey: $14.13 per hour
New Mexico: $12 per hour
New York: $14.20 per hour (excluding some areas); $15 per hour for fast food workers
Ohio: $10.10 per hour
Rhode Island: $13 per hour
South Dakota: $10.80 per hour
Vermont: $13.18 per hour
Virginia: $12 per hour
Washington: $15.74 per hour

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

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

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

Cities, Counties, Districts

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

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

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

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

Image: Adam Nir on Unsplash

January 6, 2023by krghospitality krghospitality No Comments

Dynamic Pricing or Dynamic Menus?

Dynamic Pricing or Dynamic Menus?

by Doug Radkey

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

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

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

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

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

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

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

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

Guest Experiences

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

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

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

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

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

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

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

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

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

Now let’s switch that scenario to a restaurant.

The Restaurant Scenario

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

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

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

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

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

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

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

Dynamic Menus

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

So, what’s the difference?

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

According to the National Restaurant Association:

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

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

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

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

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

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

Market Price

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

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

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

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

Knowledge is Power

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

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

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

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

Be Nimble

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

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

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

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

The Tech Stack

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

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

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

In Summary

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

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

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

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

Image: Joe Neric on Unsplash

January 4, 2023by David Klemt David Klemt No Comments

Celebrating the Baltic Porter

Celebrating the Baltic Porter

by David Klemt

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

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

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

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

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

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

What’s Baltic Porter?

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

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

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

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

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

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

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

The Baltic Porter was born.

Characteristics of Baltic Porter

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

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

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

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

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

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

Image: Peter Fischer from Pixabay

January 3, 2023by David Klemt David Klemt No Comments

5 Books to Read this Month: January 2023

5 Books to Read this Month: January 2023

by David Klemt

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

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

Let’s jump in!

The Vegan Chinese Kitchen

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

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

Tea: Wine’s Sober Sibling

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

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

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

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

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

Pick up Conversations Behind the Kitchen Door from Amazon.

Build: An Unorthodox Guide to Making Things Worth Making

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

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

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

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

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

Image: Mikołaj on Unsplash

"Think about things differently" neon sign

January 2, 2023by David Klemt David Klemt No Comments

Program for Unique Holidays: January 2023

Program for Unique Holidays: January 2023

by David Klemt

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

Several holidays are set against every date on the calendar, and January is no exception. These holidays range from mainstream to esoteric.

Pay attention to the “weird” or unique holidays to raise eyebrows, carve out a niche for your restaurant or bar, and attract more guests. Why do what everyone else is already doing? Why program only around the same holidays as everyone else?

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

You’ll find suggestions for promotions below. However, the idea behind our monthly holiday promotions roundup is to inspire you and your team to get creative and come up with unique programming ideas.

For our December 2022 holidays list, click here.

January 5: National Whipped Cream Day

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

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

January 6: National Technology Day

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

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

January 7: Old Rock Day

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

January 10: National Cut Your Energy Costs Day

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

January 11: Learn Your Name in Morse Code Day

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

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

January 17: National Bootlegger’s Day

This is the holiday to celebrate brands or cocktails that:

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

January 20: Penguin Awareness Day

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

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

January 21: Squirrel Appreciation Day

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

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

January 29: National Puzzle Day

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

January 31: National Backward Day

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

Image: Ivan Bertolazzi on Pexels

December 30, 2022by David Klemt David Klemt No Comments

Top Ten 2022 KRG Hospitality Articles

Top Ten 2022 KRG Hospitality Articles

by David Klemt

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

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

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

US Senate Fails to Replenish the RRF

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

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

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

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

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

Read this article in its entirety by clicking here.

SBA Releases 46% of Held RRF Funds

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

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

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

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

Click here to read this article in its entirety.

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

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

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

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

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

To read this article, please follow this link.

8 Glendalough Distillery Cocktail Recipes

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

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

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

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

Sláinte!

Click here for these creative drink recipes.

7 Coffee Liqueurs You Need to Know

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

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

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

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

Delivery and Takeout Food Trends for 2021: Canada

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

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

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

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

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

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

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

To read this article, follow this link.

Container Kitchens: The New Footprint

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

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

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

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

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

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

Learn more—click here.

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

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

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

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

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

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

Click here for these social media messaging examples.

Developing a Bar Concept w/ Sensory Experiences

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

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

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

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

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

Read this article here.

Creating Restaurant Brand Ambassadors

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

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

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

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

That’s where an ambassador program comes in.

To read on, click here.

Image: George Pagan III on Unsplash

Margarita with dehydrated citrus garnish

December 28, 2022by David Klemt David Klemt No Comments

Top 2022 Grubhub & Uber Eats Drinks

Top 2022 Grubhub and Uber Eats Drink Orders

by David Klemt

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

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

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

Top Grubhub Coffee Orders

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

Iced Coffee
Hot Coffee
Iced Caramel Coffee
Iced French Vanilla Coffee
Frozen Coffee

Top Grubhub Milk Alternatives

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

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

Oat Milk
Almond Milk
Coconut Milk
Soy Milk
Cashew Milk

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

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

Top Grubhub Alcohol Orders

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

Beer
Margarita
Hot Sake
Piña Colada
White Wine (Sauvignon Blanc)

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

Top Uber Eats Alcohol Orders

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

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

So, here’s their list in its entirety:

Steak + Margaritas
Pizza + White Claw
Burritos + Margaritas
Chicken + Sangria
Wings + Beer

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

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

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

Takeaway

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

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

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

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

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

Image: Edward Howell on Unsplash

December 27, 2022by David Klemt David Klemt No Comments

FAST Act Dealt Knockdown Blow

FAST Act Dealt Knockdown Blow

by David Klemt

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

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

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

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

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

What’s FAST?

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

In summary, FAST:

FAST does the following:

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

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

Opposition

A statement from Save Local Restaurants reads, in part:

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

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

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

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

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

Takeaway

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

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

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

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

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

Image: Johann Walter Bantz on Unsplash

December 26, 2022by David Klemt David Klemt No Comments

Canada’s Single-use Plastics Ban

How Canada’s Single-use Plastics Ban Affects Operators

by David Klemt

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

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

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

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

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

What’s Banned?

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

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

Checkout bags designed to carry purchased goods from a business and typically given to a customer at the retail point of sale.
Cutlery includes:
- knives
- forks
- spoons
- sporks
- chopsticks
Foodservice ware designed for serving or transporting food or beverage that is ready to be consumed, and that:
- contains
  - expanded polystyrene foam
  - extruded polystyrene foam
  - polyvinyl chloride
  - carbon black
  - an oxo-degradable plastic
- are limited to the following items
  - clamshell containers
  - lidded containers
  - boxes
  - cups
  - plates
  - bowls

Ring carriers are flexible and designed to surround beverage containers in order to carry them together.
Stir sticks designed to stir or mix beverages, or to prevent a beverage from spilling from the lid of its container.
Straws include:
- straight drinking straws, and
- flexible straws, which have a corrugated section that allows the straw to bend, packaged with beverage containers (juice boxes and pouches)

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

What does this mean for Operators?

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

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

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

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

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

Image: Volodymyr Hryshchenko on Unsplash