Teamwork | KRG Hospitality

April 18, 2023by David Klemt David Klemt No Comments

Sticking to Your Standards

The Importance of Sticking to Your Standards

by David Klemt

One crucial task for all restaurant, bar, nightclub, and hotel operators is to set the acceptable standards and commit to maintaining them.

Hospitality operations are subject to an interesting paradox. We’re all told to prepare for things to go sideways during any given shift. We’re also told that adhering to our standards of service will help us weather a storm of challenges. Oftentimes, however, the first thing to slip at the first sign of trouble is: our standards.

When a client signs on with KRG Hospitality, they are given the task of identifying their core values. There’s an exercise for this key development step; it’s part of our standards.

Your core values inform your standards (and so much more): leadership team standards; front- and back-of-house team member standards; and standards of service. Additionally, you should spell out these standards during the onboarding process, utilizing an employee manual—which new hires must sign and date—and practical training.

It’s absolutely crucial that you and your team commit to your standards fully. They’re inviolable, what both KRG president Doug Radkey and Chef Brian Duffy call your “non-negotiables” during speaking engagements and when working with clients.

Are people going to make mistakes, including you? Yes. On occasion, a standard is going to slip. The key is understanding that maintaining standards helps reduce these occasions; panicking and allowing them to slip just drops us deeper into quicksand.

Someone on the team is going to miss a service step. Something will occur during a shift that’s not up to standards. What’s important in those moments is the ability for the team to recognize the slip quickly and correct course immediately.

Setting Standards

There are different ways for operators to select their standards. The example I provide at the top of this article is one approach KRG implements.

Michael Tipps, co-founder of Invictus Hospitality and friend of KRG Hospitality, has an intriguing approach of his own. He shared this during the 2023 Bar & Restaurant Expo in Las Vegas.

“Standards separate operators and their teams,” says Tipps. While he doesn’t encourage operators to look at every other operator in their market as competition, he does advocate for differentiation.

Tipps shared a three-step approach to standards. (Step two, by the way, is the one I find intriguing.)

Create your standards. Again, there are different approaches.
Pick your committee. I’m going to explain this further.
Set standards against the grandest vision of your venue.

So, what does it mean to “pick your committee”? Well, it means surrounding yourself with people you respect…real or imagined. As Tipps explained during BRE, he has people in his life that he considers his committee. The real-life members of this committee are a sounding board for any number of ideas, questions, challenges, and even mistakes.

And yes, his committee also includes “imaginary” members, such as Michael Jordan and Phil Jackson. These are people that he doesn’t know personally but are known to have incredibly high standards. They’re high achievers and, of course, many have biographies and we can know their standards. Tipps has “asked” these committee members, “How should I handle X?”

This creative approach isn’t for everyone but every operator should at least give it a shot. When we step that far out of our comfort zones the results can be incredible.

The Cheat Code

On the specific topic of service standards, Tipps has a cheat code for operators: hotels. “The hotel mindset is a hospitality cheat code,” says Tipps.

How so? It’s quite enlightening.

Think about your restaurant. Now, think about it as the first-floor cornerstone of an upscale hotel. Imagine that there are 250 incredible boutique hotel rooms above your restaurant. These rooms command rates of several hundred dollars per night. Now think about how you would treat each guest in these expensive rooms if they ask for a straw.

“Make the effort to care like nobody else can,” says Tipps.

Always bear in mind that hospitality is how you make people feel. Your mission should be for each and every guest to feel relevant.

Generally speaking, most people don’t want to be alone. They’re not just coming to your restaurant because they’re hungry, to your bar because they’re thirsty. In reality, as Tipps would tell you, they’re coming to be around other people. They’re using your F&B as a reason to be around other people and feel relevant.

Your mission is to ensure people feel relevant when they spend time at your venue with your team. The package you send to accomplish this mission is your standards of service.

“Self-inflicted mediocrity is the result of laziness and lack of accountability,” Tipps says.

Hold everyone accountable for enforcing your standards—including yourself—and you’ll level up in every facet.

Image: Owen Michael Grech on Unsplash

April 10, 2023by krghospitality krghospitality No Comments

Loneliness and the Entrepreneur

5 Steps Entrepreneurs can take to Combat Loneliness

by Jennifer Radkey

Author John Donne may have penned the quote, “No man is an island,” in the 17th century but, like many truths of human nature, it’s still relevant today.

We’re all attached to each other in some way; our humanity is intertwined. It’s when we lose sight of this that we may start to feel lonely. We may also feel as though we’re in isolation from the world around us.

Entrepreneurs often walk a lonely road. The success of your business relies on the effort you put into it daily. With a drive to succeed and a passion for what you are doing, it can often be hard to separate life as an entrepreneur from anything else.

There can be a level of pride in the entrepreneur’s journey that makes it challenging to acknowledge that there’s genuine struggle. When society paints a rosy picture of the life of the entrepreneur—setting your own schedule, doing what you love, earning your own riches, etc.—it can feel as if you aren’t doing something “right” when you’re running a successful business yet feel stress, loneliness, and gloom.

Being an entrepreneur has its perks and many would tell you they can’t imagine doing anything other than running their own business. However, this doesn’t mean that the path is easy or without its risks of social isolation, anxiety, burnout, and depression.

It’s time that we acknowledge all aspects of being an entrepreneur—the good, the bad, and the ugly—to peel back the façade of perfection. We need to allow space for honesty, connection, and self-care.

Below are five steps entrepreneurs can take to combat loneliness as an entrepreneur.

1. Find like-minded individuals who can relate.

Often, entrepreneurs may feel as if no one else understands them, no matter how well-meaning or supportive friends and family may be.

Connect with people who you can be honest with and who will listen with little judgement. This can be through a social group that connects entrepreneurs not for the purpose of business growth and networking, but to build friendships and share stories.

If a group like this does not exist, consider starting one yourself.

2. Practice mindfulness with your external relationships.

Share with loved ones when you’re feeling particularly disconnected or stressed. They may not understand life as an entrepreneur, but they have your best interest at heart and can help you find balance between your work life and personal life.

Finding time to spend with the people who care for you as a whole person is important. Doing so can remind you to acknowledge and respect all the different sides of who you are, not just the entrepreneur side.

3. Learn how to be in a healthy relationship with yourself.

Acknowledge when you need social time. Recognize when you’re not getting enough sleep. Take time to enjoy hobbies or participate in physical activity. Take time to appreciate your accomplishments and feel proud of what you achieve.

Try journaling or participating in the things you loved doing before you became an entrepreneur to create connections and feel less alone.

4. Share the burden.

As an entrepreneur you often quietly place a tremendous amount of responsibility onto your shoulders. This can lead to feeling entirely on your own—even if you have a team surrounding you.

Learn to place trust in your team and to release some of those responsibilities to others. If you are a solopreneur, perhaps look to other professionals to whom you can outsource some of your tasks ( virtual assistant, social marketer, etc.).

5. Seek professional help if needed.

If you feel alone in the process and don’t have anyone you feel you can speak to, consider seeking a professional to help.

Consider hiring a professional life coach If you’re looking to create stronger social connections; need help with work/life balance or stress management; or wish to manage external relationships better.

If you suspect a mental illness, such as an anxiety disorder or depression, reach out to a registered therapist. There’s no shame in asking for help if it means living a well-rounded life that’s successful not only professionally but personally.

Entrepreneurs are masters of paving the way for their visions to come to life. However, the road they pave doesn’t need to be a lonely one. Applying the same drive to your personal well-being as to the success of your business will only have positive outcomes!

Cheers to your personal and professional growth!

Image: Gustavo Zambelli on Unsplash

April 4, 2023by David Klemt David Klemt No Comments

5 Books to Read this Month: April 2023

5 Books to Read this Month: April 2023

by David Klemt

Our engaging and informative April book selections will help you take your bar, restaurant or hotel to higher levels, and develop your leadership skills.

To review the book recommendations from March 2023, click here.

Let’s jump in!

Unreasonable Hospitality: The Remarkable Power of Giving People More Than They Expect

When Will Guidara took over the famous Eleven Madison Park, the restaurant had just two stars and he was only in his mid-twenties. Before his 40th birthday, the changes and strategies he implemented helped the restaurant earn the title of the Best Restaurant in the World.

One of cornerstone’s of Guidara’s was “bespoke hospitality.” He and his team truly went above and beyond. Examples of the Eleven Madison Park team’s approach to hospitality illustrate just how over the top they went to deliver memorable guest experiences. If you’re looking for inspiration to step up your hospitality, pick up or download Unreasonable Hospitality today.

Blue Ocean Strategy, Expanded Edition: How to Create Uncontested Market Space and Make the Competition Irrelevant

I’m going to address the viability of the blue ocean strategy before getting into the book. Creating a hospitality concept without competition isn’t really feasible. Go too far into “blue waters” and there won’t be any “fish” (traffic). And where, exactly, would one put their restaurant, bar, or hotel where there’s no competition but still enough traffic to generate a profit?

Those issues addressed, this book is still valuable to owners and operators. One need not eliminate competition completely to take lessons from the blue ocean strategy. Businesses must still differentiate themselves from competitors, and they must look for unique opportunities to help them stand out. Blue Ocean Strategy may not work perfectly but much is still very helpful.

Contagious Culture: Show Up, Set the Tone, and Intentionally Create an Organization that Thrives

Anese Cavanaugh’s Contagious Culture addresses a topic that we often discuss with clients, in our articles, and during speaking engagements: workplace culture. From large corporations and regional or national restaurant chains, to independent restaurants, bars, and hotels, culture will make or break an organization. Cavanaugh’s techniques will improve your workplace culture and energize your team, an undeniable key to success.

From Amazon: “This is Contagious Culture, a game-changing guide to transforming corporate culture from within, developed by the award-winning creator of The IEP Method to strengthen your ‘Intentional Energetic Presence.’ This is more than a leadership book―this is your future calling.”

Bar Hacks: Developing The Fundamentals for an Epic Bar

Doug Radkey is the founder, president, and lead strategist of KRG Hospitality. He’s also a hospitality industry speaker, educator, and author. This is his first book, Bar Hacks, which is also the name of the podcast we produce through KRG Hospitality.

Now, while the title states this book is a guide for developing and running an epic bar, the strategies carry over to restaurants, hotels, and other hospitality concepts. It’s difficult—if not impossible—to elevate one’s skills and service without first mastering the fundamentals. Whether you’re new to the industry or are a veteran who feels the need to reset and revisit the fundamentals, Bar Hacks is your guide.

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

There’s a first book, which means there must be at least one other one, right? Right! Hacking the New Normal is Doug’s second book.

This book is a direct response to the pandemic, what it did to the industry, and the issues many operators would prefer to ignore. However, the devastation is so great that ignoring the changes that should have been made decades ago isn’t a viable option. With a spotlight on hybrid business models, real estate, profit margins, technology, guest experiences, culture, diversity, and mindset, Hacking the New Normal will position you for success in our new hospitality landscape.

Image: Mikołaj on Unsplash

Chess pieces on chess board in grayscale

March 31, 2023by David Klemt David Klemt No Comments

Empower Your Team to Make Decisions

Do You Empower Your Team to Make Decisions?

by Kim Richardson

Empowerment is about so much more than trusting someone to follow clearly defined rules; you must learn to trust your team’s judgement.

Yes, even when things don’t go according to plan. If you’re only training your team on the “rules,” you’re doing a disservice to them and yourself. So, let’s have a little chat about empowerment. What does it mean to you? What are your expectations of your team when you tell them they are empowered?

Looking back throughout your own work history, have you ever had a job where your boss told you that you were empowered to make decisions, but you didn’t actually know what to do or how to make decisions? Did anyone ever explain “the how” of decision making to you?

Now, look at yourself as a leader. Have you ever had employees that you’ve told are empowered to make decisions, yet they get a manager every time someone needs something out of the ordinary? Are you explaining to your staff “the how” of decision making, along with your expectations?

It’s frustrating to feel like the house might fall down when you’re not in it. That’s no way to operate a business. We all want our staff to be able to make educated decisions when we’re not around. We shouldn’t have to hold their hands and be part of every single decision.

Still, there are times when, left to their own devices, a team member doesn’t make the decision you’d want them to make. This makes owners and leadership team members feel as though they must be at work every second.

So, how do you move away from micromanagement and learn to trust your team’s decision making?

Leverage Teachable Moments

You’ll never be able to give an example of every possible situation that may arise. Therefore, you’ll never be able to train your team on everything that they’ll encounter on any shift.

How do you tell someone how to handle situations when you’re not around? You don’t, and I don’t suggest you even try. Instead, you need to instill a sense of empowerment in your team.

However, “empowerment” is just a word if you’re not educating your team. You need to teach staff how to make good decisions. And how do you even start to do that? Cash in on all the teachable moments that happen throughout the day!

Once upon a time we were all new to this industry. I’m sure you have a few stories of some mistakes you’ve made along the way. I know I certainly do.

Think back to those situations. Did someone explain to you why you made a mistake? More importantly, did they then help you understand what to do next time? Or did they just get mad and make you feel like a failure?

I’ve had the privilege of working with some amazing people over the years. There are several people that really put effort into teaching me. The different things they taught me helped me to understand the ins and outs of decision making, even in situations I know very little about.

Example 1: The Restaurant

For my first job ever, I was a hostess at an Italian restaurant and pizzeria. During the training process I was told to rotate sections when seating tables. That’s easy enough, right? Well…maybe not.

Sometimes I’d see exceptions to this rule. The same section would get sat twice in a row, for example. I watched exceptions to “the rule” get made with no clue as to why.

One day, I sat the same section twice in a row. I don’t remember why, but I do remember the server’s reaction.

Right after seating the second party in the server’s section she let me know how annoyed she was by my decision. Now, I knew I messed up immediately—she let me know. But I didn’t know why it wasn’t okay that I had double-sat her this time.

All I knew is there was a rule I was expected to follow…unless I wasn’t supposed to follow it. Sometimes it was okay to disregard the rule, sometimes not. The rule wasn’t clarified before I began my role as a hostess, it wasn’t explained during training, and it wasn’t explained in the moment I “broke” the rule.

At some point it was explained to me that there were several factors that influenced the “double-seating rule.” For instance, you might skip a section in the rotation if they were just sat a big party. You might double-seat someone if they were regulars, family or friends and the server was able to accommodate an additional table. Of course, there were several other factors that could come into play.

The biggest issue is that none of that was explained to me during training. Moreover, I was left to figure out the nuances of seating on my own.

Example 2: The Hotel Sales Office

I worked at a hotel in the sales office for my first job out of college handling group room blocks.

The contracts I sent out to clients had cutoff dates 30 days prior to the event. Again, sounds pretty simple, doesn’t it?

One day a bride emailed me asking if she could extend the cutoff date. The cutoff date fell on a holiday weekend and she was concerned that people might not have time to book their rooms. I wrote her back and very politely told her no. So she reached out to my boss, Jill, who told her yes.

And then I got called into Jill’s office.

I remember that conversation like it was yesterday. Jill was very nice about the situation and explained that it was okay to make exceptions for people sometimes. Sometime later, I extended a cutoff date for another group. Should be an acceptable exception, right?

Nope. I got my hand slapped on that one. There was a citywide event going on over those dates. The hotel was fully sold out and turning away business. In this circumstance, it was actually a huge problem to extend the cutoff date.

Great—here we go again with a rule that exists in a gray area, and no one explained its nuances. As it turns out, there are factors that go into extending a cutoff date, such as how many rooms the group has already picked up; how busy the hotel is over the dates of their room block; and the relationship you have with the client.

I don’t know if anyone ever flat out explained these gray areas to me. Instead, I was left to figure out the nuances through trial and error.

Example 3: The Dish Tub Incident

At that same hotel several years later I started handling banquet events. One day, a client told me their registration desk needed dish tubs lined with cloth napkins. I threw it on the banquet event order.

Well, I happened to work at a Five Diamond hotel. Dish tubs with napkins sitting out in view of the public? That’s not how we did things. Enter: Bruce the Banquet Manager.

No detail, however small, escaped Bruce. Referring to the dish tubs and napkins, Bruce asked me why they were necessary. I actually had no idea what the client wanted with the tubs and napkins. So, I reached out to the client.

Turns out all she needed was a way to store welcome packets for event attendees. These days, we just put up a QR code and call it good. Once I let Bruce know what the containers were actually for, he understood. However, we weren’t about to load unsightly dish tubs with welcome packets. Instead, we found something more aesthetically pleasing and in line with our level of service.

I spoke about the Dish Tub Incident with Jill. To her credit, she helped me understand that people who are planning meetings so frequently are sending standard specs. Sometimes there would be a request on a BEO that wouldn’t make sense for the venue. Crucially, she taught me that if I ever saw something that didn’t make sense I needed to ask questions.

Truthfully, I don’t remember if it was that conversation or another but Jill taught me one of the best lessons: Ask the client what goal they’re trying to achieve. By understanding their goals we could provide solutions that made sense for us and honored their wishes. Additionally, we’d deliver the excellent service they had come to expect.

Example 4: The Hotel Cafeteria

Let’s take a little break from talking about my mistakes and talk about somebody else’s.

Many years later, I was working at another hotel. One day, I went to the cafeteria and the fruit bowls had Asian pears in them. I love Asian pears, so I was really excited about those bowls.

Now, those particular pears were probably a day away from being spoiled. I went to the cafeteria the next week and there were the Asian pears again! This time, they were perfectly fresh, crisp pears.

Well, I certainly enjoyed that. You want to know who didn’t enjoy that? The executive chef!

As it turns out, Chef sent the pears that were about to go bad to the cafeteria because they were leftovers from something else. He didn’t want them to go to waste. But the fresh, crisp pears that were out the following week? Those were a different story.

There was a kitchen team member who saw the Asian pears go down the week before. When he was setting up the cafeteria the following week he threw some in the fruit bowl. No one had told him that Asian pears are expensive. Also, no one had told him the pears were just going down to the cafeteria because they were close to spoiling. They’re not typically the type of thing set out in the employee cafeteria.

While I would never expect Chef to stop and explain every single decision he’s making, it’s the perfect example of seeing one of your superiors doing something and thinking you’re supposed to do the same.

Leaders Teach

When I look back on some of the mistakes I made, they seem pretty obvious with many years of hindsight.

The solutions to unexpected situations are common knowledge to me now. If you also have some years in this industry, they’re likely common knowledge to you.

And that’s my point.

I was young. I was inexperienced. People didn’t always tell me the things they had learned that were common knowledge to them. So, they also didn’t share their expectations with me.

I can only assume that you have people on your team that are young and inexperienced. As seasoned hospitality professionals, we all make decisions every day that can be teaching moments. These moments are part of the learning experience. Using them to shape your team will help your business run better.

Have you implemented an onboarding process? Do you have a detailed employee manual? Do you have actual systems in place? If so, great—you’re ahead of the curve.

But do you think that you’re training new and existing employees on every situation that will ever pop up during their shifts? Really, that’s impossible. Instead, be on the lookout for teachable moments. Put people on your leadership and empower them to do the same.

In turn, they’ll help empower your staff to make the “right” decisions for your business. And importantly, they’ll feel empowered to learn from mistakes so they don’t repeat them. Over time, and it won’t take long, you and your leadership team will be able to step away and work on other parts of the business. In fact, you’ll find that you can step away from the business from time to time.

People are going to make mistakes. That includes you. Don’t let these teachable opportunities go to waste.

Image: Hassan Pasha on Unsplash

March 22, 2023by David Klemt David Klemt No Comments

Spring Clean Your Business!

7 Ways to Give Your Business a Spring Cleaning!

by Kim Richardson & David Klemt

In case you’re so busy you didn’t catch it, we’re officially—finally—in spring, and that means it’s time to spring clean your business.

Below you’ll find a spring cleaning slideshow with helpful advice from KRG Hospitality consultant Kim Richardson.

Each slide contains her best advice for reviewing, refreshing, and improving your business. For your convenience, Kim organizes her spring cleaning advice in just seven slides.

It’s time to look at your business through fresh, energized eyes! Your team, guests, and bottom line will thank you.

[metaslider id=78443]

Note: Unable to view the slides above? Each slide is transcribed below.

1 Re-plant Your Core Values

Review your core values with your team.
Post them where everyone can see them daily.
Foster core values through consistent training.
What kind of experiences are you offering your team?
Hire a coach to help you discover your core values.

2 Tidy up Your Guest Journey Map

Walk through your business from the guest perspective.
Review your website for content, ease of use, current info.
Review your technology and potential pain-points.
Touch up items that may have become run down: paint, signage, furniture, equipment, etc.
Review your flow of service and communication.

3 Spruce up Your SOP & Training Programs

Evaluate how well current SOPs are being followed.
Evaluate how well you continuously train your team.
Make updates as needed and add any new procedures.
Ensure SOPs are easily accessible by your team.
Discuss your standards during pre-shift meetings.

4 Deep Clean Your Financial Books

Review your budgets and projections for the year ahead.
Review and organize the financials tracking processes; receipts, invoices, files, etc. and digitize what you can.
Consider updating your financial tracking technology or bringing in a third party to assist.

5 Dust off Your Business Plan

Evaluate the progress of your business plan.
Acknowledge what you have accomplished.
Are you on track to achieve your goals this year?
Do all of your goals still make sense?
Make any necessary updates and create a game plan to stay on track; review every 30 days.

6 Freshen up Your Marketing Plan

Budget time and money to dedicate towards marketing for the next 90 days.
Create strategic campaigns that will create awareness, build a database, and retain your targeted customers.
Consider working with a third party or having someone dedicated to this role internally.

7 Declutter Your Mind

Perform a calendar audit.
Review goals and formulate action plans.
Practice mindfulness through journaling or meditation.
Consider hiring a mindset coach to help you organize your life and your business.

Image: PAN XIAOZHEN on Unsplash / Slideshow Images: Kim Richardson / KRG Hospitality

2023 KRG Hospitality Start-up Costs Guide

December 15, 2022by krghospitality krghospitality No Comments

KRG Unveils 2023 Start-Up Guide

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

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

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

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

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

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

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

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

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

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

The Checklist

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

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

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

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

About KRG Hospitality

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

Disclaimer

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

Image: KRG Hospitality

December 10, 2022by David Klemt David Klemt No Comments

Leadership Facepalm, Part Three

Leadership Facepalm, Part Three

by David Klemt

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

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

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

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

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

The Letter

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

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

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

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

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

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

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

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

A Breaking Point

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

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

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

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

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

Damage Done

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

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

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

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

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

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

Work Culture

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

So, instead I want to say something else.

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

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

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

Image: Nik Shuliahin 💛💙 on Unsplash

"I Voted" stickers on a white background

November 8, 2022by David Klemt David Klemt No Comments

Are You Rewarding Voters Today?

Are You Rewarding Voters Today?

by David Klemt

Voting is one of the hallmarks of democracy, a right and privilege so crucial that one can’t overstate or exaggerate the value and importance.

It is, therefore, supremely unfortunate that access to this right has become so acrimoniously political. Of course voting relates to politics—that’s a given. That doesn’t mean the act itself should be disingenuously politicized for twisted means.

For example, far too many people have grown convinced that their vote means nothing. Further, it’s an outrage that voting is made so difficult for so many who know voting matters.

So important is this fundamental right, there are three amendments to the US Constitution protecting it specifically: the Fifteenth, Nineteenth, and Twenty-sixth.

Before going further, I’m not this passionate in support of only those who vote “my way.” I want every American of voting age to have easy access to cast their ballot. Equally as important to me, I want every American to feel like their vote means something.

Of course, that also means accepting results we don’t like. We don’t always get our way in a democracy, after all.

This is all to say the following: Operators can play a role in elections. A simple-yet-important role.

Encourage Voters

I’m not the first to say it: Restaurants and bars are the cornerstones of their communities.

Back in June, I expressed the role our industry plays across the country and globe: “Restaurants and bars are pillars, cornerstones of the communities they serve. These are businesses that welcome people in, treat them like family. They’re there for them as they move through their lives. People who were seemingly at odds with another routinely found common ground over a bite and a sip. More often than not, that’s still the case.”

I still believe this, and that’s why I believe operators can play a role on this Election Day, and those in the future. The role is simple but powerful: Encourage your community to get out there and vote.

Now, one clear way to motivate your community to get out there today is to reward those wearing “I Voted” stickers when they visit your restaurant or bar. It’s commonplace now for operators to offer voters food and drink discounts, free menu items, or other perks on Election Day.

Restaurants and bars around the country routinely execute this type of promotion. From free sides and snacks to discounts on entrees and drinks, operators throughout the US find ways to encourage voting.

Proceed with Caution

Just keep something in mind: Legal scholars say that when federal candidates are on the ballot, such promotions are illegal.

The interpretation of a particular federal statute makes it illegal to pay people to vote. “Paying” includes providing something of value in exchange for voting, such as food or a drink.

One workaround is to ensure anyone who enters your business can participate in your promotion. No “I Voted” sticker? No problem. A guest says they haven’t voted? Not a disqualification.

Another solution is to simply encourage your social media followers to vote and come by for a visit. No reward, necessarily, just encouragement to exercise their right.

In other words, be the supporter and motivator your community needs. And be careful about any promotions you may be offering today.

Image: Element5 Digital on Unsplash

September 20, 2022by David Klemt David Klemt No Comments

Addressing Substance Abuse in the Industry

Restaurant Business Articles Address Substance Abuse

by David Klemt

Two revealing Restaurant Business articles paint a startling picture of the industry’s struggles with drug and alcohol abuse.

Unfortunately, the subject of substance abuse in restaurants and bars isn’t new. This has long been a pervasive, prevalent issue in the hospitality industry.

There are, as Restaurant Business authors point out, several reasons our industry continues to grapple with substance abuse.

Since we’re nearing Sober October, this topic’s importance seems particularly poignant. Of course, the health of hospitality industry professionals should always be a paramount operator concern every day. It shouldn’t take a specific month for us to address this issue, just to forget about it after 31 days of consideration.

Hospitality workers should feel supported by the business owners and operators for whom they work. Additionally, they should feel safe among the leadership team and their fellow team members. In part, this feeling of security and safety should manifest in being comfortable speaking about substance abuse in the workplace.

A significant element of creating a supportive, safe, and healthy culture is removing the stigma of struggling with substance abuse that persists today. How can operators, leadership, and team members help one another if they make peers feel shame for struggling with drugs or alcohol?

A crucial step toward addressing the issue of substance abuse is fostering a culture of respect, support, and safety. If anyone in any role—from ownership and leadership to front of house and back of house—feels as though they can’t speak with someone safely about their struggles, we can’t address this topic effectively. And if we can’t address it in a meaningful way, we can never effect real change that can improve and save lives.

Pervasive Struggles

A Restaurant Business article from last week addresses substance abuse and culture. “How Restaurants Feed a Culture of Substance Abuse” reveals disturbing statistics.

At the start of their article, editors Peter Romeo, Heather Lalley and Joe Guszkowski share a horrific story. In February of this year, Colorado law enforcement found six adults and a toddler in an apartment. The six adults had all overdosed on fentanyl-laced cocaine; five had died. All six adults worked in chain or independent restaurants.

Four years ago, Delaware officials investigated the state’s opioid crisis. They found 10 percent of Delaware residents who died due to opioid overdoses were foodservice workers. According to Restaurant Business, state officials concluded that foodservice experienced a higher rate of opioid deaths than any other industry.

Among the most-shocking revelations in the Restaurant Business article pertains to the US workforce as a whole. Frustratingly, the US government hasn’t researched illicit drug use in the workforce since 2015. So, for all we know, the numbers I’m about to share have either increased or decreased.

In a typical month in 2015, 8.6 percent of the US workforce was using illicit drugs. However, that number pales in comparison to the rate of illicit drug use among restaurant and hotel workers: 19.1 percent.

Examining Substance Use Disease (SUD), a term encompassing drug and alcohol abuse, the numbers expose the weight of our industry’s struggle. In 2015, 9.5 percent of the US workforce suffered from SUD. For restaurants and hotels? That number was nearly double: 16.9 percent, higher than any other industry.

Fentanyl Deaths

Restaurant Business Editor-in-Chief Jonathan Maze reveals how “restaurants are ground zero” for fentanyl overdoses.

Fentanyl is cheap to produce and transport. It doesn’t take much to be deadly. And most people who have the misfortune of consuming it do so unwittingly. As it turns out, drug dealers lace all manner of other drugs with it because it’s so powerful. So, cutting drugs with fentanyl is more “cost effective” for drug dealers.

This particular excerpt from Maze’s “As Fentanyl Deaths Soar, Restaurants Are Ground Zero” is startling: “Throughout the country, restaurants and bars are such common places for overdose deaths among customers that advocates are training bartenders and servers to administer Narcan, a medication used to treat opioid overdoses. They are also becoming sources for fentanyl test strips so customers can see if the drugs they’re taking are laced with the powerful drug.”

Further, this troubling excerpt: “The fentanyl epidemic is particularly troublesome in the restaurant industry given the generally high rate of drug use among workers. Restaurant work is notoriously intense. The hours are long and late, and employees are on their feet all day. They often get hurt on the job and can turn to painkillers, legal or otherwise.”

When I say that we need to address substance abuse in our industry to save lives, I’m not employing hyperbole. I mean it quite literally.

Please take the time to read these two Restaurant Business articles in their entirety. We need to take action today.

Image: cottonbro via Pexels

September 5, 2022by David Klemt David Klemt No Comments

5 Books to Read this Month: September 2022

5 Books to Read this Month: September 2022

by David Klemt

This month’s engaging and informative book selections will help you develop next-level leadership skills and dial in your drink menu.

To review August’s book recommendations, click here.

Let’s jump in!

Your Restaurant Culture Sucks!: Stop surviving. Start thriving. Escape mediocrity

Donald Burns, the Restaurant Coach and friend of KRG Hospitality, completes his Your Restaurant Sucks! trilogy. For the third book in the self-improvement and hospitality industry leadership series, Burns tackles culture.

In Your Restaurant Culture Sucks!, Burns helps owners, operators, and leadership team members understand the importance of workplace and company culture. Instead of complaining that “nobody wants to work anymore,” look inside and find out why perhaps nobody wants to work for you. That kind of honesty helps implement real change, change that sets you apart and improves recruitment, hiring, and retention.

“All restaurants can buy from the same vendors and hire from the same labor pool. What separates the good, from the great to the outstanding is culture!”

Subtract

Sometimes changing our outlook and improving our leadership skills is about streamlining.

“We pile on ‘to-dos’ but don’t consider ‘stop-doings.’ We create incentives for good behavior, but don’t get rid of obstacles to it. We collect new-and-improved ideas, but don’t prune the outdated ones. Every day, across challenges big and small, we neglect a basic way to make things better: we don’t subtract.”

With Subtract, Leidy Klotz explains how changing how we approach solutions can be life changing. Maybe we need to stop adding and start subtracting to improve our strategies.

Cure: New Orleans Drinks and How to Mix ’Em from the Award-Winning Bar

If you travel to New Orleans and you’re in this industry, you probably make sure to include Cure on your itinerary. For more than a decade this 2018 James Beard Award winner (Outstanding Bar Program) has been integral to the city’s craft cocktail scene.

Whether you’re after a deceptively simple beer and shot or a cocktail made with a rare, allocated bourbon, Cure is there to elevate your French Quarter visit. And soon you’ll be able to bring Cure home with you, and to your restaurant or bar as well. Available now for preorder, Cure includes 100 cocktail recipes that tell the tale of NOLA from past, present, and future.

Craft Beer Design: The Design, Illustration and Branding of Contemporary Breweries

Anyone who pauses to consider beer can design knows that it’s becoming nearly as important as the liquid. With thousands of breweries all over the US alone, how does a brewer stand out? How does a small, independent craft brewer grab a potential new customer’s attention in a sea of options? In part, through their can designs. Of course the beer itself is crucial and the most important element. However, a consumer has to be motivated to try a beer before they learn how good it tastes.

Craft Beer Design dives deep into craft beer design, featuring real-world examples and interviews with the designers themselves.

Think Again: The Power of Knowing What You Don’t Know

Curiosity keeps us learning. The pursuit of knowledge keeps us sharp. Learning helps us improve ourselves, our leadership, and our operations. The belief that we’ve learned all there is to know, however, prevents us from learning to our own detriment.

Much like Subtract teaches us how to remove rather than add, Think Again proposes a new approach: unlearning and rethinking. Why do we get defensive when we’re wrong? Why are we so afraid of challenges to long-held beliefs? Admitting when we’re wrong and seeking facts is a strength, not a weakness.

Image: Mikołaj on Unsplash