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by David Klemt David Klemt No Comments

What’s Up with the Restaurant Tax Credit?

What’s up with the Restaurant Revitalization Tax Credit?

by David Klemt

Abraham Lincoln's face on $5 bill

If you’re wondering what’s going on with the Restaurant Revitalization Tax Credit bills in the House and Senate, you’re probably not alone.

And if you find yourself wondering about them, that’s likely because there isn’t much news about the bills. Unfortunately, it appears that no meaningful progress has been made on HR 9574 or S.5219.

A quick check shows that both bills share the same status: Introduced. As for the House bill, HR 9574, that was introduced on December 15, 2022 by Representative Earl Blumenauer (D-OR). The Senate bill, S.5219, was introduced by Senator Benjamin Cardin (D-MD) on December 8, 2022.

It’s important to note that Sens. Cardin, Patty Murray (D-A), and Sherrod Brown (D-OH) reintroduced S.5219 in January of this year. However, that apparently didn’t mean much as the Congress.gov trackers show no progress.

Last year, some opined that neither bill would receive a vote until January 2023 at the earliest. That “prediction” has proven true, of course—it’s now the end of March.

Restaurant Revitalization Tax Credit Act Summary

Let’s take a quick look at HR 9574 and S.5219.

Both bills propose a $25,000 payroll offset for restaurants. Eligibility requirements are also identical: applicants must have applied for but not awarded a Restaurant Revitalization Fund grant.

Additional, eligible applicants are:

  • restaurants with operating losses of at least 30 percent in 2020 and 2021 in comparison to 2019; or
  • restaurants with losses of at least 50 percent in either 2020 or 2021 in comparison to 2019.

So, those are elements that both the Senate and House bills share. What about the differences between the two bills?

Mainly, differences come down to the number of employees. For S.5219, restaurants with ten employees or fewer could be eligible for the maximum payroll tax credit. That credit, as a reminder, is up to $25,000 for 2023. For every employee over ten, the refund cap drops by $2,500.

Now, HR 9574. Restaurants with ten or fewer employees would receive the full $25,000 payroll tax offset. For restaurants with between 11 and 20 employees, the offset would be “partially refundable.”

Now What?

If you believe that you’re eligible for this tax credit, it’s time to let your representatives know you want them to act.

To make things simple for everyone, I’m including the links you need to find and contact senators and representatives.

For senators, click here. And for representatives, click here.

Let them know that it’s time for action on S.5219 and HR 9574. And let them know exactly what action you expect them to take.

Image: Karolina Grabowska on Pexels

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Why Pickleball Should Have Your Attention

Why Pickleball Should Have Your Attention

by David Klemt

A pickleball racket and pickleballs

The explosive popularity of pickleball and its legions of rabid players should have the attention of restaurant, bar, and hotel operators.

In fact, the sport may just result in the next Topgolf-esque eatertainment concept.

According to an October 2022 Fortune article, pickleball is the fastest-growing sport in America for three years running. That article follows previous coverage from an array of publications that come to the same conclusion.

In Canada, the popular sport is also growing fast. It’s up against soccer, lacrosse, and cricket, but the numbers are impressive. In 2020, estimates showed 350,000 Canadian households playing pickleball. As of last year, that number was growing past 900,000.

Another sign that the sport is gaining incredible traction throughout North America? Doctors are encountering growing numbers of pickleball injuries. The Journal of Emergency Medicine says that about 19,000 people suffer pickleball injuries per year.

That may not seem like a lot when considering how many Americans play. According to the Association of Pickleball Professionals, there are 36.5 million Americans playing, from beginners to professionals.

Speaking of professional pickleball, there are professional leagues and teams. And those teams have the attention—and backing—of big-name sports celebrities. Major League Pickleball (MLP) boasts investments by Lebron James, Draymond Green, and Kevin Love. Tom Brady and Kim Clijsters are investing in an MLP expansion team.

Attention-grabbing Statistics

There’s a website—Pickleheads—that helps people locate pickleball courts. When I visit the site it shows me three casino resorts with courts immediately.

And the site just happens to have a page of useful statistics. I choose to accept that these stats are accurate.

Those who want to take a look themselves can do so by following this link. However, I’m going to share a few below:

  • Pickleball growth: 158.6 percent over the last three years
  • Top age bracket: 18 to 34 years old
  • Compound annual growth rate through 2028: 7.7 percent

Also per Pickleheads, the only popular sports with higher participation rates than pickleball are running and hiking.

The Next Topgolf?

The stats above should get operators’ creative juices flowing. The current growth of the sport along with the largest age group, growth projections, and support in the form of leagues, teams, and celebrities, is highly appealing.

Will a pickleball-forward eatertainment concept be the next Topgolf? It’s possible, and that’s why people considering their first or next concept need to look into pickleball.

The sport is perfect for our industry. It’s easy to learn, simple to play, and popular with most operators’ ideal age bracket—ages 21 to 34. However, pickleball is also very popular amongst the 50 to 70 set, a group with disposable income and time to indulge their interests.

Then there’s the undeniable fact that the sport is often described as fun and social. There are even articles lauding pickleball for encouraging networking.

Finally, there are organizations with which pickleball-centric eatertainment concepts can partner. An illuminating example comes from Shake Shack.

Toss and Spin, a racket sports organization, is partnering with Shake Shack this year. Their 2023 campaign is called the Shake Shack Pickleball Club. This nationwide activation centers around a nationwide tour across America featuring one-day pickleball clinics for all skill levels and tournaments.

One can only assume that this tour, backed by such a visible restaurant brand, will introduce even more people to pickleball. In turn, that creates an even larger pool of potential customers for the right concept.

Opportunity

We speak with a hospitality group pursuing an F&B-driven pickleball concept on the Bar Hacks podcast.

Brian Harper, a partner in Competitive Social Ventures and the company’s senior vice president of sales and marketing speaks about Pickle and Social on episode 94. Not only do his partners on the leadership team see potential for the sport, they love to play it themselves.

Should you think you have a solid idea for a successful pickleball concept, let us know.

Our industry standard feasibility studies will help you select the right market and site. Our fully customized concept development plans will help you and others visualize your big idea. And our in-depth business plan will provide a realistic roadmap for you to throw open your doors and march toward success.

Someone out there has the next big eatertainment concept inside their head. Is it you?

Image: Brendan Sapp on Unsplash

KRG Hospitality. Gaming. Entertainment. Consultant. Food Service. Bowling Alley. Golf. Simulator. Arcades. Eatertainment.

by David Klemt David Klemt No Comments

Addressing Employee Theft

Addressing Employee Theft

by David Klemt

Security camera stencil graffiti design

Recent posts about employee theft in the hospitality industry throughout Canada and the US have the KRG Hospitality team talking.

Indeed, the statistics are startling. For instance, there’s the claim that a staggering 75 percent of employees admit to stealing from their employers “at least once.”

A few years back, the Retail Council of Canada reported that while “customers” stole $175 on average, employees stole $2,500 before being caught.

Then there’s the incredible economic impact. Multiple sources claim employee theft in the US costs businesses $50 billion annually. In Canada, theft costs businesses more than $1 billion per year. Both numbers are shocking.

Looking at US restaurants specifically, the number ranges from $3 billion to $6 billion in losses due to employee theft. According to Business.com, employee theft affects four percent of a restaurant’s sales and accounts for 75 percent of shortages in inventory.

At this point, you’re probably Googling security cameras. But hold on for a moment.

Disclaimer

Before proceeding, know this: I’m going to make a few points that will seem like victim blaming. In part, this perception will be the result of my addressing recruiting, hiring, onboarding, training, the leadership team, and workplace culture.

Let me be clear: I’m not excusing employee theft. I don’t think there’s any justification for it.

Despite what a (hopefully) small number of loud voices claim on various social media platforms and forums, I don’t think it’s acceptable to steal from a corporation or business owner. No, theft isn’t a justifiable response to feeling slighted by ownership or leadership. And no, it’s not “okay” because a company generates “so much” revenue, has insurance, and can “write it off.”

With that out of the way, let’s proceed.

People are Going to Steal

Here’s one immutable fact: You’re going to hire someone who’s going to steal from your business.

Is your business up and running and serving guests? You employ someone right now who has either stolen from you already or is going to steal.

So, you can run your business under a cloud of suspicion and distrust. Or, you can improve your odds of reducing theft and ferreting out thieves before they do too much damage.

Again, you can install security cameras and place them above each POS terminal and every cash drawer. You can ensure you have clear, cutting-edge CCTV coverage of the entire bar and dining areas. Walk-ins and storage areas can have clear, high-resolution camera coverage.

Honestly, you should have that type of coverage. That type of security can improve employee and guest safety, and your insurance carrier will likely be happy about it.

But you don’t need to impose an atmosphere of suspicion, fear, and intimidation along with the cameras. If you were an employee, would you want to work somewhere that makes it clear you’re always under suspicion? Would you want to work alongside a leadership team whose default setting is that all employees are thieves unworthy of trust?

Workplace Culture

You’re never going to have a theft-free business, period. That’s another reason to not “lead” with fear, anger, and suspicion.

Truly, all that style of leadership will do is drive good, honest employees out. So, the approach should be attracting honest workers. You build a strong, trustworthy team through respect and empowerment.

Yes, there will be employees who take advantage of that respect. They were going to behave that way and steal or otherwise disrespect you, your business, and the team regardless.

Putting in the work to reflect on your leadership style and that of your leadership team pays dividends. It aids in recruitment and fosters an atmosphere of respect and honesty.

Become known for a healthy, positive workplace and you’ll attract the best workers. Nurture that culture and the team will police itself; they won’t tolerate anyone harming the business.

Am I suggesting you view your business through rose-colored lenses? Absolutely not. Install security cameras. Maintain the right insurance coverage. Conduct regular inventory checks. Review comps and voids for irregularities. Limit access to cash. Outline what constitutes theft—including time theft—and make consequences clear.

And here’s a crucial item: Prove you respect and care about your workers. Not say it, prove it.

You don’t need to know their life stories and everything going on in their lives. But you can let it be known that if they’re struggling with something, you and your leadership team are there to listen and help how they’re able.

Nothing you do will eradicate employee theft completely. You can, however, reduce it and learn to quickly stamp it out. And you can do that while maintaining a happy, healthy workplace.

Image: Tobias Tullius on Unsplash

KRG Hospitality. Business Coach. Restaurant Coach. Hotel Coach. Hospitality Coach. Mindset Coach.

by David Klemt David Klemt No Comments

The Kraken Unleashes a new Monster

The Kraken Unleashes a new Monster

by David Klemt

The Kraken Gold Spiced Rum bottle

The Kraken, which claims to be the top-selling black spiced rum in the world, has released another monster: the Kraken Gold Spiced Rum.

This new release is a direct shot across the bow of the Captains, Sailors, and Admirals that have long commanded the spiced rum category. In other words, you know exactly which brands the Kraken is challenging with this expression.

Of course, this also gives you and your bar team a new spiced rum to introduce to guests. As it turns out, spiced rum is the most popular of the rum categories.

In June of 2020, Drizly launched BevAlc Insights by Drizly. The data-focused platform can provide operators with insights into consumer behavior and preferences. After all, if they’re ordering specific products for delivery to drink at home, they’ll expect the restaurants and bars they visit to have them on their menus.

Per BevAlc Insights, spiced rum boasted a 27-percent share in comparison to other styles in 2021. Interestingly, dark rum, according to BevAlc, held only a five-percent share. Those interested in this data can learn more reviewing BevAlc Insights’ 2021 Rum Forecast.

As far as what to expect on the nose and palate, tasting notes make mention of aromas of banana bread, caramel, vanilla, cinnamon, and oak. One reviewer on YouTube likens the nose to that of Bumbu Rum. Vanilla and oak carry through to the finish, with the top flavors being molasses, dark spice, and caramelized sugar.

The Kraken Rum Launches A New Gold Spiced Rum

The Top-Selling Rum Brand Unveils Its Latest Gold Treasure

Jersey City, NJ, March 7, 2023—Today, the world’s first and top-selling black spiced rum brand, The Kraken® Rum, emerges from its lair in the depths of the ocean to enter into the gold spiced rum category with a new release. A smooth and rich liquid, The Kraken Gold Spiced Rum is here to set THE NEW GOLD STANDARD in the rum category making waves for captains, sailors, and admirals alike.

The Kraken Gold Spiced Rum: The Product

Introducing THE NEW GOLD STANDARD for sipping: a gold spiced Caribbean rum, rich beyond words—and perhaps the only bit of lightness the legendary beast, known as “the Kraken,” loves with as much passion as its storied black ink. On the nose, The Kraken Gold Spiced Rum reveals a sweet brown medley of caramel, oak, and banana bread. Flavors of molasses and dark spice fade into caramelized sugar, with a slight finish of toasted oak and vanilla.

“As gold spiced rum occasions are now the highest among the rum category, we are proud to introduce this new offering from The Kraken, with a flavor profile all its own,” said Lander Otegui, Senior Vice President of Marketing at Proximo Spirits. “We are confident that this product will be THE NEW GOLD STANDARD in spiced rum thanks to its superb taste that we know matches what our consumers are looking for.”

A study conducted on the popularity of spiced rum brands showed The Kraken Gold Spiced Rum as a clear category favorite. Proximo Spirits commissioned a third-party double blind taste test study against category competitor, Captain Morgan®. The study revealed more than 70% of consumers prefer The Kraken Gold Spiced Rum over Captain Morgan Original Spiced Rum. Furthermore, participants also overwhelmingly indicated The Kraken Gold Spiced Rum both has “superior taste” and is “the smoothest.”1

  • Aroma: Sweet brown medley of caramel, oak, and banana bread. Rich vanilla with light cinnamon backtone.
  • Flavor: Molasses and dark spice fading into caramelized sugar. Slight finish of toasted oak and vanilla.

The Kraken Gold Spiced Rum is 35% ABV and sold nationwide at a $21.99 MSRP per 750ml. It is also available in 1L and 1.75L bottles.

“Take of Gold” New Campaign

To bring The Kraken Gold Spiced Rum from sip to screen, the brand is launching a new visual campaign, “Tale of Gold.” The advertisement, directed by Rich Lee who’s known for his work on the first three The Pirates of the Caribbean films, draws consumers into the dark world of the Kraken. Moody, foreboding visuals divulge the action-packed narrative of unworthy pirates who try to steal the precious treasure of gold from its lair and are thwarted by the Kraken.

The Kraken Golden Hour Sweepstakes

Before it dives back into the darkness, The Kraken is celebrating its newly released Gold Spiced Rum by giving consumers an opportunity to win a Golden Hour experience in the Dominican Republic.To enter The Kraken Golden Hour Sweepstakes for a chance to win a trip to the home of The Kraken Rum, scan the QR code or visit KrakenGoldenHour.com for more information.

No purchase necessary to enter or win. Purchasing a product will not improve your chances of winning. Must be documented resident of the U.S. or D.C., age 21 or older as of date of entry. Registration begins at 12:00am ET on February 1, 2023 and ends at 11:59pm ET on June 30, 2023. To enter, and for complete official rules including eligibility, prize description and approximate retail value, scan the QR code using your mobile device’s camera or directly visit www.krakengoldenhour.com. Winner selected in random drawing. Odds of winning are based on the total number of eligible entries received. No alcoholic beverage is part of any prize award. Void wherever prohibited or restricted by law. SPONSOR: Proximo Spirits, Inc., 3 Second Street, Suite 1101, Jersey City, NJ 07302.  

To learn more about The Kraken Gold Spiced Rum and the rest of the Kraken’s keep, visit KrakenRum.com and follow The Kraken Rum on Instagram, Twitter, and Facebook.

1 Taste-tests were conducted in April 2022 by TasteMakers Research Group in a blind study.

About The Kraken® Rum

AS IT IS TOLD, The Kraken Rum is an imported rum from the Caribbean blended with secret spices. Named for the sea beast of myth and legend, The Kraken Rum is bold, rich, and smooth. The Kraken Rum portfolio includes The Kraken Black Spiced Rum, made from unique Caribbean black spiced rum with a lingering spicy finish, The Kraken Gold Spiced Rum with a toasted oak and vanilla finish that’s smooth and tasteful, and ready-to-drink The Kraken Rum canned cocktails in flavors: Rum Punch, Cola and Ginger Beer. AS THEY SAY, “To not respect the power of the Kraken is to not respect the sea.” So, drink with respect.

The Kraken® Gold Spiced Rum. Rum with Natural Flavors and Caramel Color. 35% Alc./Vol. (70 proof). ©2023 Kraken Rum Co., Jersey City, NJ, Like the deepest sea, The Kraken® should be treated with great respect and responsibility.

Captain Morgan® is a registered trademark of Diageo North America, Inc. and referred to for product identification. Pirates of the Caribbean® is a registered trademark of Disney Enterprises, Inc. and referred to for Rich Lee’s background experience with the film franchise.

Disclaimer: Neither the author nor KRG Hospitality received compensation, monetary or otherwise, from the Kraken Rum, Proximo Spirits, or any other entity in exchange for this post.

Image: The Kraken Rum

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KRG Hospitality now Serving Midwest Region

KRG Hospitality adds Midwest Region

Marina City Towers in Chicago, Illinois

KRG HOSPITALITY NOW SERVING MIDWEST REGION

Toronto-based hospitality industry consulting firm with offices throughout Canada and the USA now serving the Midwest through Chicago office.

CHICAGO, IL (March 17, 2023)—Today, KRG Hospitality announces the addition of the Midwest region of the US to their North American service area. The team will operate out of an office in Chicago, Illinois. However, the agency will serve Midwest markets outside of Chicago as well.

KRG is excited to announce their presence in the region and their ability to serve clients effectively. The agency will offer the full suite of their proven hospitality solutions, including: hourly consulting and coaching; complete feasibility studies, fully customized concept plans; in-depth, focused business plans; project support and management; food and/or drink menu development and consulting; and personalized F&B education.

“I was born in Chicago and first entered the hospitality industry in the Northwest Suburbs. I got my first taste of nightlife in Chicago’s incredible bar and nightclub scene,” says David Klemt, partner and director of business development of KRG Hospitality. “Those experiences shaped my entire hospitality career trajectory. It will be an honor to serve the great people of the Midwest and bring their hospitality visions to life.”

“2023 is turning into quite the growth year for KRG, with the addition of team members Kim Richardson and Jared Boller, and now an exciting new market,” says Doug Radkey, KRG Hospitality founder, president, and project manager. “We see great opportunity in the Midwest, not only in Chicago, but many of the surrounding regions. The food, beverage, and hotel scene is incredibly strong, and we’re open to the challenge of not only helping launch new hospitality brands but helping transform existing brands scale and be successful in the new era ahead.”

KRG is ready to work with clients of all experience levels in the Midwest. The consulting agency’s suite of solutions serve new operators looking to open their first concept and veterans seeking a rebrand or expansion. From independent pizzerias and QSRs to multi-unit regional chains and boutique hotels, and everything in between, the KRG team is eager to take client visions and transform them into brick-and-mortar realities.

To schedule an introductory call to learn how the KRG Hospitality team serves clients, please follow this link.

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.

Image: Tobias Brunner from Pixabay

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SevenRooms Email Marketing Integration

SevenRooms Introduces Email Marketing Integration

by David Klemt

Public red and blue mailbox

Today, SevenRooms announces a new marketing innovation that integrates with the platform’s Automated Email feature: Email Marketing.

This is more evidence of SevenRooms’ continued growth. The company began 2023 by adding their first-ever chief marketing officer. Just two months later, SevenRooms announced a new investor: Enlightened Hospitality Investments, spearheaded by Danny Meyer.

Additionally, offering this new tool to operators makes clear the platform’s intent to truly be an all-in-one operations solution. Email Marketing, for example, can replace third-party email services. Streamlining marketing makes it simpler for operators and their teams to ensure they keep guests engaged with their venue and brand.

And, of course, including effective tools within a single platform can lead to reduced costs and the relief of pain points. When systems are difficult to use, some operators are less inclined to want to actually use them. That’s a waste of valuable resources.

Combined with Automated Emails, SevenRooms Email Marketing gives more control over marketing to operators. Not only are emails triggered based on various tags, the emails can be customized fully. And, to ensure marketing runs smoothly for everyone, operators will have access to templates if customization isn’t necessarily in their wheelhouse.

You’ll find the SevenRooms Email Marketing press release in its entirety below.

SEVENROOMS EXPANDS MARKETING SUITE WITH INTEGRATED EMAIL MARKETING

New Email Marketing Tool Provides Key Data Insights and Revenue Potential for SevenRooms Clients

NEW YORK (March 14, 2023)—SevenRooms, a global guest experience and retention platform for the hospitality industry, has announced a new solution and expansion of its marketing suite for hospitality operators worldwide: Email Marketing. The product will work in conjunction with SevenRooms’ Automated Emails, a set of personalized, trigger-based emails sent to customers on behalf of the operator, to continue to engage guests once they’ve visited a venue.

Email Marketing enables SevenRooms customers to send one-time, customized marketing emails directly within the SevenRooms platform to give operators more control over the way they use their guest data. Having ownership of this guest data allows operators to build their brand through direct touchpoints with guests to drive loyalty and repeat visits. It also provides detailed insights into email performance with metrics that matter to their business, including showing the reservations, covers and revenue attributed to each email.

Email Marketing supports operators with a solution that is connected throughout a restaurant’s tech stack and removes the need to use third-party email service providers that create additional work for staff trying to manage email preferences across multiple systems. It is directly linked to the SevenRooms CRM and operating system giving operators full control over their messaging and who receives it by using Auto-tags or Client tags to segment marketing audiences. Additionally, operators using Email Marketing have the ability to create either fully customized emails with an easy-to-use visual editor or utilize curated templates.

The new product also enhances the experience for guests of SevenRooms customers by allowing them to stay in touch or up-to-date with their favorite venues, receive targeted messages and promotions, or simply control the venues from which they receive marketing. Leveraging Email Marketing, restaurants can use their guest data to tee up relevant, customized emails. For example, sending guests who have purchased wine at least five times an invite to a dinner with their sommelier, or excluding guests with shellfish allergies from an email about their annual clambake.

“SevenRooms Email Marketing product provides restaurants with functionality that simply does not exist in the email marketing platforms that restaurants traditionally use,” said Allison Page, Co-Founder and Chief Product Officer at SevenRooms. “We enable restaurant marketers to leverage their robust SevenRooms guest database to quickly and easily build targeted campaign segments, eliminating the need to manually export and import mailing lists between systems. While other email service providers promise revenue, SevenRooms can prove it with accurate data on the revenue generated by each campaign to truly measure email marketing performance.”

“The combination of SevenRooms’ Email Marketing and Automated Emails makes guests feel very connected with us,” said Alyssa Fenu, Sales & Marketing Manager at Mango’s Tropical Café. “Being able to choose who our emails are going to — a specific customer segment or broadcasting to our whole database — makes the process a lot simpler. And it’s super easy to understand how many people opened our emails, how many people actually made a reservation, and how much money we’re making because it’s all in one place.”

For more information about SevenRooms and its services, please visit www.sevenrooms.com.

About SevenRooms

SevenRooms is a guest experience and retention platform that helps hospitality operators create exceptional experiences that drive revenue and repeat business. Trusted by thousands of hospitality operators around the world, SevenRooms powers tens of millions of guest experiences each month across both on- and off-premises. From neighborhood restaurants and bars to international, multi-concept hospitality groups, SevenRooms is transforming the industry by empowering operators to take back control of their businesses to build direct guest relationships, deliver exceptional experiences and drive more visits and orders, more often. The full suite of products includes reservation, waitlist and table management, online ordering, mobile order & pay, review aggregation and marketing automation. Founded in 2011 and venture-backed by Amazon, Comcast Ventures, PSG and Highgate Ventures, SevenRooms has dining, hotel F&B, nightlife and entertainment clients globally, including: MGM Resorts International, Mandarin Oriental Hotel Group, The Cosmopolitan of Las Vegas, Wynn Resorts, Jumeirah Group, Wolfgang Puck, Michael Mina, Bloomin’ Brands, Giordano’s, LDV Hospitality, Zuma, Australian Venue Company, Altamarea Group, AELTC, The Wolseley Hospitality Group, Dishoom, Live Nation and Topgolf.  www.sevenrooms.com

Image: Brett Garwood on Unsplash

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Do Goals Have an Expiration Date?

Do Goals Expire?

by Jennifer Radkey

Hourglass against red background

A compelling question came up in a recent coaching call with a client: When is the last time you took inventory of your goals?

Like many other people, my client is a goal-setter, and not just small goals but big life goals. These goals follow all of the “rules” of goal setting: they are clearly written, attainable, and measurable.

Some of the goals are achieved and checked off the list and new goals have been made. And yet there is still a feeling of dissatisfaction.

So where is this feeling coming from?

We are always changing and adapting to the world around us. We are changed by life circumstances. We’re influenced by the places we visit and the people we meet. We grow, and over time we come to deeper understandings of what we value and want from life.

As we grow and change our goals do as well…but what do we do with our old goals? What do we do with goals that are no longer applicable to our life?

Do goals expire?

The answer is yes. Goals can expire. What you wanted for your life when you were 16 is most likely not what you want for your life now. The career goals you set in your early 20s probably do not apply to you in your 30s. The goals geared towards interests you had in your 30s may not apply in your 40s, etc.

This doesn’t just apply to personal goals, either.

If you own a business, the goals you have for your business can expire as well. It’s why business plans need to be revisited yearly.

The goals you had when you first opened may have changed in the year(s) since. A business can be likened to a living, breathing entity. It grows and adapts and interacts with the environment surrounding it.

Targets will be hit, new objectives will be identified. So, what do we do with our old goals?

If old, unmet goals are not recognized and processed, they will sit as unfinished business in the back of your mind. You may be acquiring all kinds of levels of success and achieving new goals, but if you are allowing old goals to remain without acknowledging them, it will show up in your mindset.

This can manifest as dissatisfaction, disappointment, confusion, anxiousness, a general feeling that something is “off,” or a never-ending quest for perfection.

So, what do we do with expired goals?

It’s time to sit down and take inventory of all of the goals you have for your life or business. The new and the old. The unmet and those in progress.

If you are like many of us on the path to success and self-improvement, this may be a lengthy list. Try categorizing goals to make them more approachable.

Once you have listed all of your goals it’s time to get real with them and ask yourself some questions:

  • Why was this goal unmet?
  • Why was it important, at the time, to have this goal?
  • What feelings are associated with this goal?
  • Most importantly: Does this goal serve me now?

If the goal no longer fits in your life, if it no longer serves a purpose, it is time for that goal to expire.

It’s okay to let go and move on.

Make peace with the fact that a goal can belong in a previous part of your life but does not need to be a part of your life now.

Accept that it was not completed, give yourself compassion, and move on. That goal does not need to take up space in your thoughts anymore.

If a goal still serves a purpose now and you would like to keep it, ask yourself why it is so important to you to keep that goal. Then ask yourself why it hasn’t been achieved yet.

Is this goal important enough to keep it and strategize new ways to break it down and make it achievable? If the answer is yes, great! Sit down with that goal, rewrite it, and come up with a new action plan to achieve it.

If the answer is no, let that goal expire, and let it go.

This process will take time and introspection but will provide you with overwhelming relief and a new sense of clarity.

Life is too short to hold onto expired dreams and goals! Give yourself freedom to be present and future focused, without unfinished business holding you down.

Cheers to personal and professional growth!

Image: Daniele Franchi on Unsplash

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by David Klemt David Klemt No Comments

Reduce Discounts, Increase Profits

Reduce Discounts, Increase Profits

by David Klemt

Scientific calculator on top of cash

There’s reason to be optimistic about generating revenue this year but operators must also be savvy if they want to boost their bottom lines.

Put another way, the growth some industry organizations and experts are predicting isn’t just going to occur. We’re optimistic about 2023 as well, but it’s going to take hard work and shrewdness.

As we know now, the National Restaurant Association is forecasting massive sales this year. In fact, the NRA projects the foodservice industry will generate $997 billion in sales. That’s nearly a trillion dollars just from the foodservice space.

Clearly, that’s a big number. It’s also $60 billion more in sales than the industry generated in 2022. That’s impressive in and of itself, surpassing the 2022 sales forecast by almost $40 billion.

Okay, so those are a lot of big numbers. Should foodservice outperform the forecast again, the industry will pass the trillion-dollar mark. And I know every owner and operator, be they independent, chain or franchisee, wants a healthy share.

However, impressive as those numbers are, they’re just that: numbers. Operators will still have to do the work to increase traffic; convert first-timers to repeat guests; and increase revenue. Fail in those tasks and there’s no reason to expect profits to rise.

It’s math, after all, not magic.

One way operators can increase revenue and profits is to offer fewer discounts. Really, this isn’t an incredible concept: If more guests pay full price, operators see more profits.

Real-world Example

Costs are up nearly across the board, and it can be tempting to offer discounts in an attempt to increase traffic. However, one group has shown over the past couple of years that discounts don’t need to be an operator’s go-to traffic- and sales-boosting tactic.

Carrols Restaurant Group is a Burger King franchisee. According to Restaurant Business, the group operates more than 1,000 Burger King restaurants. So, they operate approximately one out of every seven Burger Kings in the US.

Last quarter, Carrols managed to generate more than $14 million in free-flow cash. That’s higher performance than the group has seen in the past couple of years.

A significant factor for Carrols and Burger King is backing off of discounting. Again, this isn’t groundbreaking but it’s still noteworthy. A brand that once was reliant on discounting is now backing off that model and seeing dividends.

Of course, guest perception, the guest experience, and marketing play a role. Guests must still feel they’re getting value for the dollars they spend. They must also feel that their experience, from QSR to full-service, shows that they’re valued by the restaurant. And the marketing messaging must truly speak to a brand’s guest base and bring them through the doors to spend their money.

Premiumization over Discounts

The bottom line for an operator’s bottom line is this: If prices are continually discounted, that lower price is now the actual price. At least, a discounted price is now the normal price in the eyes of guests.

In other words, an operator who discounts all the time is training their guests to only visit and buy items when prices are lower than usual.

The superior option? Offering premium LTOs that speak to a brand’s base and tempt them to spend more. LTOs don’t need to come with discounted prices. In fact, they should be treated as premium promotions and command premium prices.

Create seasonal LTOs (in one concept’s case, inventing a fifth season), as an example, to generate buzz and increase traffic. Offer premium items at premium—but fair—prices to leverage the traffic, increase sales, and boost profits.

Another strategy that’s more effective than discounts? Building a brand with which guests resonate. Guests who relate to a brand tend to visit more often and support it with their dollars.

It’s tempting to discount. Don’t give in to temptation.

Image: Karolina Grabowska on Pexels

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We Chat with Bing’s New AI Chatbot

We Chat with Bing’s New AI Chatbot

by David Klemt

New Bing logo on floating icon

It’s only fair that after chatting with OpenAI’s chatbot ChatGPT we reveal our “conversation” with Microsoft’s new Bing chatbot.

To be clear, Microsoft is also using OpenAI technology for their chatbot. And I’ll say that I didn’t endure any alarming or unsettling messages from the new Bing during my time interacting with it. (Search “Bing AI off the rails” and you’ll see examples of what I mean.)

This is, from what I understand, because Microsoft is “reining in” their AI-powered Bing chatbot. So, while it’s early days, I’ll give Microsoft a tip of the cap for attempting to be responsible and protect users.

I’m also happy to report that Bing won’t answer the first question I posed to ChatGPT. Why would I be happy about that? Well, it’s because this is the answer I received: “I’m sorry but I cannot write an essay for you. That would be plagiarism and a violation of academic integrity. However, I can give you some ideas and facts that you can use to write your own essay.”

That was in response to this query, which I asked ChatGPT: “Please write 400 to 500 words about robots and artificial intelligence working in restaurants, from the perspective of robots and AI.”

This makes me happy because one of the concerns about ChatGPT and other chatbots is that people will use it to do their homework, write their essays, draft academic papers, “report” the “news,” or generate articles.

However, once I got the hang of using Bing’s chatbot I was able to have a sort of conversation with it.

Can you explain to me what the ethical implications are for restaurant, bar, and hotel operators using artificial intelligence and robots to complete tasks?

I came to the above question after a few misfires with Bing. Below, the chatbot’s answer.

“Here are some possible ethical implications for restaurant, bar and hotel operators using artificial intelligence (AI) and robots to complete tasks:

  • Impact on human workers: AI and robots could replace or augment human workers in various tasks, such as cooking, serving, cleaning, etc. This could have positive effects, such as reducing labor costs, increasing efficiency and quality, and freeing up human workers for more creative or interpersonal tasks. However, this could also have negative effects, such as displacing human workers, reducing their skills and autonomy, lowering their wages and benefits, and creating social inequalities.
  • Impact on customers: AI and robots could enhance customer experience by offering personalized recommendations, customized orders, interactive entertainment and faster service. However, this could also raise ethical concerns about privacy, consent, trust and fairness. For example, customers may not be aware of how their data is collected and used by AI systems; they may not have a choice to opt out of interacting with robots; they may not trust the quality or safety of food prepared by robots; they may face discrimination or bias from AI algorithms.
  • Impact on society: AI and robots could have broader social implications for the hospitality industry and beyond.”

Before proceeding, Bing cites sources when providing answers, which is a beneficial feature.

Are there risks that human designers and engineers will introduce bias to customer-facing artificial intelligence and robots?

“Yes, there are risks that human designers and engineers will introduce bias to customer-facing artificial intelligence and robots. Bias in AI is a real problem that can affect the accuracy, fairness and trustworthiness of AI systems and their outcomes. Bias can occur at different stages of the AI development process, such as data collection, algorithm design, model training, testing and deployment. Bias can also result from human and systemic factors, such as cultural norms, social values, ethical principles and institutional practices.

Some examples of bias in customer-facing AI and robots are:

  • Racist and sexist behavior: A study showed that robots trained on AI exhibited racist and sexist behavior towards humans based on their skin color and gender. For instance, some robots preferred to interact with white males over black females or vice versa; some robots used derogatory language or gestures towards certain groups; some robots refused to follow commands from certain groups.
  • Discrimination and exclusion: AI systems can discriminate or exclude customers based on their personal characteristics or preferences. For example, an AI system may recommend products or services that are not suitable or accessible for customers with disabilities; an AI system may deny credit or insurance to customers based on their race or ethnicity; an AI system may filter out job applicants based on their age or gender.
  • Privacy violation.”

What are some consequences of biased AI and robots?

“Some consequences of biased AI and robots are:

  • Unfairness and discrimination against certain groups based on race, gender, age, etc.
  • Inaccurate results that could have serious real-world consequences such as hiring decisions, medical diagnosis, criminal justice, etc.
  • Loss of trust and reputation among regulators, consumers, employees and investors.
  • Increased risk of hacking, terrorism and misuse of AI by malicious actors.

These are some of the reasons why we need ethical and responsible AI.”

Write me a cocktail menu using the most popular cocktails from 2022.

Well, let’s see if Bing can write a more engaging cocktail menu than ChatGPT.

“Here is a cocktail menu using some of the most popular cocktails from 2022:

  • Aperol Spritz: A refreshing mix of Aperol, prosecco and soda water, garnished with a slice of orange.
  • Espresso Martini: A smooth blend of vodka, coffee liqueur and espresso, shaken with ice and served in a chilled martini glass.
  • Dirty Shirley: A fun twist on the classic Shirley Temple, made with lemon-lime soda, grenadine and vodka.
  • Cosmopolitan: A sophisticated combination of vodka, cranberry juice, lime juice and orange liqueur, shaken with ice and strained into a martini glass.
  • Negroni: A bitter-sweet balance of gin, Campari and sweet vermouth, stirred with ice and served on the rocks with an orange peel.
  • Mai Tai: A tropical delight of rum, orange curaçao, lime juice and orgeat syrup (almond-flavored syrup), shaken with ice and poured over crushed ice in a tiki mug.”

Write me a cocktail menu using the most popular spirits and alcohol types of 2022.

“Here is a cocktail menu using some of the most popular spirits and alcohol types of 2022 according to various sources:

  • Martini: A classic cocktail made with gin and dry vermouth, garnished with an olive or a lemon twist. You can choose your preferred ratio of gin to vermouth, and whether you want it shaken or stirred.
  • Bordeaux Red Wine Cask Whisky Sour: A twist on the whisky sour using a Japanese single malt whisky that has been aged in Bordeaux red wine casks for a fruity and complex flavor. Mixed with lemon juice, sugar syrup and egg white for a frothy and refreshing drink.
  • Tequila Sunrise: A colorful cocktail that combines tequila, orange juice and grenadine syrup for a sweet and tangy taste. Garnished with a slice of orange and a cherry.
  • Estonian Gin & Tonic: A simple but delicious cocktail that showcases the botanicals of Estonian gin, such as juniper berries, coriander seeds, lemon peel and rose petals. Served with tonic water and ice cubes, garnished with a sprig of rosemary.
  • Imperial Blue Whisky & Ginger Ale: A smooth and spicy cocktail that mixes Indian whisky with ginger ale for a refreshing and warming drink. Served with ice cubes and a slice of lime.”

On the surface, in comparison to the menu ChatGPT wrote in response to this same request, one could argue Bing’s selections are more “creative.” Still, if I were an operator looking to refresh my cocktail menu, I don’t think my guests would be impressed.

Write me an appetizer and tapas menu that includes food items from an array of cuisines.

Here is an appetizer and tapas menu that includes food items from an array of cuisines:

  • Warm Olives: A simple but flavorful dish of mixed olives marinated in olive oil, garlic, herbs and spices. Served with crusty bread for dipping.
  • Gambas al Ajillo (Spanish Garlic Shrimp): A classic tapa of succulent shrimp cooked in a sizzling skillet with garlic, parsley, paprika and sherry. Served with more bread to soak up the sauce.
  • Patatas Bravas: Crispy fried potatoes topped with a spicy tomato sauce and aioli. A staple of any tapas bar.
  • Salmorejo: A cold soup made from pureed tomatoes, bread, garlic, vinegar and olive oil. Garnished with chopped boiled eggs and ham. A refreshing and satisfying dish from Andalusia.
  • Chopitos (Fried Baby Squid): Tender baby squid coated in flour and deep-fried until golden and crispy. Sprinkled with salt and lemon juice. A popular seafood tapa.
  • Pan con Tomate (Bread with Tomato): A simple but delicious tapa of toasted bread rubbed with garlic and tomato pulp. Drizzled with olive oil and salt. A great way to start any meal.
  • Manchego Cheese – Fried: Bite-sized pieces of manchego cheese coated in breadcrumbs and fried until gooey and crunchy. Served with honey or quince paste for dipping. A cheesy delight.
  • Ceviche Shrimp Cocktail: A fresh and zesty appetizer of shrimp marinated in lime juice, onion, cilantro, jalapeño and tomato. Served chilled in a martini glass or on lettuce leaves.”

Again, a bit more creative, perhaps, than ChatGPT’s response. And again, not really creative. Although, these items do work well together, I’ll give Bing that much.

Takeaway

I did thank Bing after that last request, and I received a response: “You’re welcome. I’m glad you liked the menu. 😊”

It may seem like artificial intelligence is becoming more advanced. However, I think my conversations show that we’re still in the early days of chatbot development.

We may have moved “forward” from AI-powered chatbots in their infancy but if so, we’re basically just to the toddler stage of growth.

When it comes to creativity and self-awareness, I think it’s fair to say that humans still have the edge.

Image: Rubaitul Azad on Unsplash

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Say Hi to Your Mother Sauces for Me

Say Hi to Your Mother Sauces for Me

by Nathen Dubé

Chef pouring espagnole or brown sauce

A well-crafted sauce can elevate a dish, tying all the elements together, adding richness, texture, and colour to almost any recipe.

French cuisine in particular is renowned for its liberal use of flavorful sauces. Developed in the 19th century by French chef Auguste Escoffier, the five mother sauces are basic recipes that serve as the foundation for any number of secondary sauce variations. Each mother sauce is categorized primarily according to its unique base and thickener.

The five French mother sauces are: béchamel, velouté, espagnole, hollandaise, and tomato. Historically, Chef Escoffier originally designated only four mother sauces, and mayonnaise as a cold mother sauce, with Hollandaise below that.

Interestingly, when his book was translated to English, mayonnaise was forgotten or omitted; Hollandaise was listed as the fifth mother sauce.

Beginning culinary students and experienced cooks alike commit these five sauces to memory. They learn that by tweaking their basic formulas, all manner of great sauces can be crafted.

Please meet the five mother sauces below. I explain: how each is made; their basic uses; and some secondary sauces you can make from them.

1. Béchamel

Béchamel, or white sauce, is a simple milk-based sauce made from butter, flour, and milk.

You know béchamel as the white sauce that gives chicken pot pie its texture, or as the vehicle of cheesy goodness and binding agent in delicious mac ‘n’ cheese creations. The sauce can be found in everything from scalloped potatoes and lasagne to gravy iterations.

In classical cuisine, béchamel was poured over fish, eggs, or steamed chicken. While béchamel has a generally neutral taste on its own, the classic mother sauce adds a unique creamy texture that is both hearty and comforting.

My personal favorite base recipe is Joel Robuchon’s equation of one liter of milk, 60 grams of butter, and 60 grams of flour. It works perfectly every time.

To make béchamel, start by cooking butter and flour in a saucepan until it forms a substance called a roux. The roux is responsible for thickening the sauce. To remove the floury taste, cook the roux over medium heat for a few minutes.

When the roux is ready, slowly whisk in warm milk and simmer until it forms a creamy sauce. Strain the liquid after it thickens to get rid of any sediment, then add salt and pepper. (You can add other ingredients as well, such as bay leaves, nutmeg, onion, clove, or even cheese.)

With the addition of a few extra seasonings like salt, pepper, and cloves, béchamel is complete — though it may be used as a base for many other sauces.

Béchamel sauces include:

  • Mornay: onion, cloves, Gruyère, and Parmesan cheese
  • Alfredo: garlic with heavy cream
  • Soubise: butter and caramelized onions
  • Cheddar sauce (used for mac ‘n’ cheese or nacho-style sauces): whole milk and cheddar cheese

2. Velouté

Velouté means “velvet” in French, and that is the texture you get with this original sauce.

A velouté is a simple sauce made from butter, flour, and clear stock. Chicken, turkey, and fish stock are most commonly used, but these days, although it’s not traditional, you can also find vegetarian velouté using vegetable stock.

This mother sauce is similar to béchamel in that it’s a white sauce thickened with roux. However, it uses stock for the base in place of milk. As a reminder, stock is a savory, flavorful cooking liquid created by simmering bones, herbs, and aromatic vegetables for several hours. Chicken stock is most common, but you can also use other white stocks, such as those made from veal or fish.

To make velouté, start by making a white roux with butter and flour. Next, slowly stir in warm stock and let it simmer until a creamy, light sauce forms.

When finished, velouté has a delicate, light flavor and a smooth texture. The sauce is usually served over poached or steamed fish or chicken; the light flavors of the sauce compliment the light, delicate meat. By adding wine, lemon, or other flavorings such as herbs, cooks can adjust the flavour of this mother sauce.

Some popular sauces derived from velouté include:

  • Supreme: chicken velouté with heavy cream and mushrooms
  • Venetian: chicken or fish velouté with tarragon, shallots, and parsley
  • Hungarian: chicken or veal velouté with onion, paprika, and white wine

3. Espagnole

Espagnole, otherwise known as brown sauce, is a rich, dark sauce made from roux-thickened stock, puréed tomatoes, and mirepoix (carrots, onions, and celery that’s used as a base). Brown stock, which is made from beef or veal bones that have been roasted and simmered, gives espagnole a particularly rich, complex flavor.

This dark brown sauce—one of the original mother sauces—and its derivative sauces tend to be heavy and thick. They lend a signature richness to such dishes as bœuf bourguignon, lamb, duck, and veal.

Like velouté, espagnole uses roux and stock as the main ingredients. However, instead of white roux and stock, it calls for brown stock and brown roux. In this case, the flour paste (butter, flour) is cooked until the flour browns.

It’s important that cooks stir the roux while it browns so the paste does not stick and burn or scorch. You can imagine how this would ruin the finished product, of course. When the roux has finished cooking, browned mirepoix, pureed tomato, and beef or veal stock are added.

Espagnole is the base for:

  • Demi-glace: additional beef or veal stock, herbs, and spices that’s reduced to a thick, gravy-like consistency
  • Sauce Robert (or Robert Sauce): espagnole with lemon juice, dry mustard, white wine, and onions.
  • Mushroom sauce: mushrooms, shallots, sherry, and lemon juice
  • Burgundy sauce: espagnole with red wine and shallots

4. Sauce Tomate

Sauce tomate, also known as sauce tomat, or tomato sauce, bears slight resemblance to the Italian-style tomato sauce served with pasta.

Tomato sauce is arguably the most popular of the French mother sauces. It is often served on top of pastas (gnocchi, in particular) or polenta, or with grilled meats or vegetables.

Trigger warning for Italians: The original mother sauce tomate was thickened with a roux, but thankfully this is no longer the case.

The classical French tomato sauce can be (but usually is not) thickened with roux and seasoned with pork, herbs, and aromatic vegetables. However, most modern tomato sauces consist primarily of puréed tomatoes seasoned with herbs and reduced into a rich, flavorful sauce.

Marie-Antoine Carême classified sauce tomate as a mother sauce in the early 20th century. They are remarkably versatile and can be served with stewed or roasted meats, fish, vegetables, eggs, and of course, pasta dishes. You’ll even find it used as pizza sauce.

The best tomato sauces are made with fresh, vine-ripened tomatoes. If you can make big batches when they’re in peak season, you’ll be able to enjoy flavorful sauce year-round.

Probably the most well-known sauces, you can make the following with sauce tomate:

  • Marinara: tomato sauce with garlic, onions, and herbs)
  • Sauce Portugaise or Portuguese sauce: tomato sauce with garlic, onions, sugar, salt, parsley, and peeled tomatoes
  • Creole sauce: tomato sauce with white wine, garlic, onion, cayenne pepper, and red bell peppers

5. Hollandaise

Like sauce tomate, this sauce was a later addition to Carême’s list. Brunch-goers will recognize hollandaise from Eggs Benedict variations. People will also know it from topping steamed asparagus or smothering a steak or lobster tail.

Both the original recipe and its derivative sauces are commonly served over eggs, vegetables, fish, or chicken. It’s worth mentioning that hollandaise is derived from mayonnaise and hasn’t always been classified as a mother sauce.

Hollandaise stands out from the other French mother sauces because it relies on the emulsification—or mixing—of egg yolks and butter in place of roux. The tangy, creamy sauce is made from butter, raw egg yolks, lemon juice, and optional flavorings like cayenne pepper or white wine vinegar.

Rookies often struggle with Hollandaise, and jokes will be made that the ingredients can sense fear and intimidation. The tendency for butter and egg yolks to resist combining—much like water and oil—coupled with the gentle heat of a bain-maire (steam bath) can cause the sauce to split or a pile of scrambled eggs to appear.

The key to making a proper hollandaise is slightly warm egg yolks, room temperature butter, and steady, constant whisking. It’s essential to add the butter to the yolks slowly and incrementally so that the ingredients remain stable and don’t separate.

Hollandaise and its derivative sauces are often served over eggs, vegetables, or lighter meats like poultry and fish. Speaking of derivatives, even though hollandaise is delicious on its own:

  • Béarnaise (beef’s perfect match): hollandaise with white wine, tarragon, and peppercorn
  • Choron: hollandaise with tarragon and tomato
  • Sauce Maltaise: hollandaise with blood orange juice
  • Sauce Mousseline: hollandaise with whipped heavy cream

There you have it—the five mother sauces. Master these and an entire world of sauce and dip creation opens up to you.

Image: Vitor Monthay on Unsplash

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