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August 15, 2022by David Klemt David Klemt No Comments

Top 10 States Attracting High Earners

Top 10 States Attracting High Earners

by David Klemt

Using the inflow and outflow data of tax filers earning $200,000 or more, SmartAsset identifies the top ten states attracting high earners.

When it comes to the number-one state, “it’s not even close,” says SmartAsset Advisors. Not surprisingly, several top inflow cities (according to Redfin data) line up with SmartAsset’s top inflow state list.

So, why should this information matter to operators? Plainly, it’s important market information. Population, household income, and age information are crucial considerations when opening any business.

In fact, KRG Hospitality includes such data (and much, much more) when conducting research for our proprietary feasibility, business, and concept plans. Among many elements of opening a restaurant, bar, hotel, or entertainment venue, the income of one’s target audience is crucial.

Knowing where high-income households are leaving and moving to can inform many operator decisions. Where should one open their first concept? Which markets should one consider for expansion? What type of concept will work in a market? What are the threshold price points for menu items? How will this information help inform design choices?

Operators need to recoup their outlay. The income of a concept’s ideal guest should be as important to an operator as knowing their costs.

Top Ten Inflow States

Interestingly, the top state on this list did experience significant outflow in 2020. In fact, the state lost 11,756 high-earning households in 2020.

However, the state also added 32,019 such households, netting 20,263 high earners.

Utah
Idaho
Nevada
Colorado
Tennessee
South Carolina
North Carolina
Arizona
Texas
Florida

Another compelling detail of the states on this list pertains to income tax. In short, three of the states don’t levy personal income tax.

Above, they’re the states in bold: Florida, Nevada, and Texas.

Top 10 Outflow States

So, above are the ten states are seeing the greatest an inflow of high-earning households. Which means, of course, there’s an inverse.

Below, the ten states experiencing the greatest outflow of high earners. Unsurprisingly, SmartAsset deems several entries on the list high-tax states. Also, Washington, DC, is a high-tax area.

Moreover, the list below includes five of the top ten high personal income tax jurisdictions (in bold).

Ohio
Minnesota
Washington, DC
Maryland
New Jersey
Virigina
Massachusetts
Illinois
California
New York

However, it’s not as though these states are seeing a massive exodus of high-earning households. In fact, per SmartAsset, these states have more high-income households than the national average.

Nationally, high-earning households account for less than seven percent of all tax filers. According to SmartAsset, nearly nine percent of tax filers are high-income households in the top ten outflow states.

Image: Trevor Neely on Unsplash

August 10, 2022by David Klemt David Klemt No Comments

So, What’s Up with that $180 Million?

So, What’s Up with that $180 Million?

by David Klemt

It’s not much in comparison to the $40 billion we need to replenish the Restaurant Revitalization Fund but $180 million is still significant.

According to a June 14 report, the Small Business Administration is sitting on $180 million in RRF funds. This information came to light due to a Government Accountability Office (GAO) investigation.

Unfortunately but unsurprisingly, the funds likely won’t reach operators for a while. Why is that? Well, the SBA is working with the Justice Department to “formulate a plan on how to distribute” the money.

As we know, bureaucracy tends to move at a glacial pace. Additionally, $180 million is nowhere close to the roughly $42 billion it would take to fund RRF applicants who have not received grants.

Where did this Money come From?

We know that $24 million is from funds set aside by the SBA for litigation. However, according to the National Restaurant Association, the American Rescue Plan Act of 2021 didn’t expressly include such a set aside.

Interestingly, the NRA is calling for the SBA to disperse the litigation set aside to RRF applicants. This is due to their interpretation of “the spirit of the law” and unobligated funds.

Now, on to the biggest chunk of the tens of millions of dollars in unawarded, unobligated RRF money. Where, exactly, are these funds from?

Well, it’s a little murky at the moment. Per the GAO, awards returned by either recipients or their financial instutions amount to $56 million. The rest, according to the GAO, comes from “realized or anticipated recoveries,” per their report.

However, some sources report that $156 million was clawed back by the SBA and that the $24 million set aside make up the $180 million.

So, Who gets the Money?

In short, we don’t know yet. In fact, we don’t even know if RRF applicants will have to apply again for a piece of the $180 million.

Additionally, we don’t know if applicants who received an approval for an RRF grant but didn’t receive the award will be processed first.

What we do know is that if every dollar of this “leftover” $180 million is distributed to RRF applicants, a mere 0.44 percent would receive a grant.

As Nation’s Restaurant News reports, 150,166 RRF applicants were in fact approved for a grant but never received one. It would take over $41 billion to fund all 150,000-plus applicants.

When the Justice Department and SBA finalize a plan, we’ll let you know.

Image: John Guccione on Pexels

United States Capitol Building through trees

August 8, 2022by David Klemt David Klemt No Comments

Congress Fails Us Once More

Congress Fails Us Once More

by David Klemt

A “compromise” and “far from perfect,” the Inflation Reduction Act of 2022 is yet another bill that could include the RRF but fails to do so.

Not content to deliver just the gut punches our industry has already endured, Congress is leaving us out. Again.

A bill that targets inflation in the US should, logically, include replenishment of the Restaurant Revitalization Fund. However, RRF replenishing isn’t among Inflation Reduction Act compromises.

By the way, that isn’t my assessment. It’s President Joe Biden’s summary of the bill’s passage in the Senate: “This bill is far from perfect. It’s a compromise.”

To clarify, this compromise is a $430 billion spending bill that doesn’t include $40 billion to replenish the RRF. That’s interesting, considering Democrats claim the bill will not only generate enough revenue to pay for itself, they say it will generate another $300 billion throughout the next decade.

Restaurants in the US are projected to generate nearly $900 billion in sales this year. Apparently, however, that’s not enough for our politicians and lawmakers to consider us important to the economy.

Instead, those who enjoy near-inscrutable power and are in the position to stop another bout of restaurant and bar closures have chosen not to help. Our industry, which employs millions upon millions of hard-working Americans is once again on the outside looking in.

The Road to Nowhere

In a word, the road to RRF replenishment is exhausting. One Instagram user commented as such on the Independent Restaurant Coalition‘s post about us being left out of a massive spending bill yet again.

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A post shared by Indp. Restaurant Coalition (@indprestaurants)

Three months ago, the US Senate killed RRF replenishment when they voted against even debating the Small Business COVID Relief Act of 2022.

Midway through June I reported that Sean Kennedy, executive vice president of public affairs for the National Restaurant Association, posited that the RRF could be replenished via a reconciliation bill.

Addressing the possibility, Kennedy made clear it was a longshot. He was correct.

Indeed, the Inflation Reduction Act was passed by the US Senate via reconciliation bill. A simple majority consisting of all 50 Democrat senators and Vice President Kamala Harris sends the bill to the House.

Compellingly, the nonpartisan Congressional Budget Office’s analysis of the Inflation Reduction Act indicates the bill’s name is a misnomer. According to the CBO, the bill will either have zero or nearly-zero impact on inflation this year or in 2023. A group of 230 economists warn the bill may increase inflation.

The bill is expected to pass the House in its current form and be signed by President Biden by the end of this week.

Response from the IRC

Immediately after news broke that the Inflation Reduction Act of 2022 passed the Senate but failed to include RRF replenishment, the IRC’s Erika Palomar responded.

The executive director of the IRC said:

“For nearly three years, independently owned restaurants and bars have weathered multiple COVID-19 surges, government-mandated closures, consumer hesitancy, rising prices and ongoing restrictions, while fighting to keep their doors open and staff employed. Restaurants and bars are the heartbeat of every community, and we are incredibly disappointed to not be included in the reconciliation vote this weekend. 177,300 small businesses have been patiently waiting for relief and their needs are being ignored, again.

“Thousands of restaurants and bars are at risk of closing permanently as a result of continued Congressional inaction on the replenishment of the Restaurant Revitalization Fund (RRF). The failure of Congress and the White House to act swiftly is impacting neighborhoods in every state across the country. Congress has failed these businesses, but the Independent Restaurant Coalition is not giving up the fight in any way possible to support independent restaurants.”

Further Disappointment

Over the past 15 months (longer if we really look back), our politicians and lawmakers have been consistent about one thing. They have continually failed to recognize restaurants and bars for what they are: cornerstones of their communities.

Of course, they’ll happily use our businesses for political theater and their fundraisers. But giving us more than lipservice? Not on the agenda.

Image: Paula Nardini on Pexels

Maximalist interior bar or restaurant design

August 5, 2022by David Klemt David Klemt No Comments

Datassential Identifies Top Design Trends

Datassential Identifies Top Design Trends

by David Klemt

For their latest FoodBytes research topic, Datassential tackles some of the top restaurant design trends.

Click here to download Datassential’s “Foodbytes: Restaurant Design Trends” report. If you haven’t already, you’ll need to sign up for FoodBytes reports.

As the title states, this Datassential resource addresses the state of restaurant design. Now, we recommend reading the report for yourself but below you’ll find the points that really stand out to us.

If you’re among the 22 percent of operators that Datassential says are either considering a dining room redesign or have completed one, this report is particularly relevant to you.

Back-0f-house Design

Unsurprisingly, most people envision the interior dining area when considering restaurant design. However, as Lauren Charbonneau of Reitano Design Group says in Datassential’s latest FoodBytes, “Restaurants are living spaces that need to be agile.”

That means considering the entire space, not just the front of house. There’s also this stat from Datassential: 64 percent of operators think shrinking their footprint would be detrimental. If that’s the case, making the BoH smaller rather than the front may be the way forward.

So, let’s take a look at what Charbonneau identifies as BoH design trends to consider.

Clearly, it’s crucial operators consider their back-of-house teams. Providing a better workplace experience and improving efficiency can be done through design. Per Charbonneau, operators can use clever design and equipment choices to reduce steps, movement, labor, footprint, and costs.

Additionally, sustainability is not only crucial to responsible operation, being sustainable can reduce costs. Selecting Energy Star, Water Sense, and multi-functional equipment can make tasks easier for BoH teams, make a business more sustainable, and, again, drive down costs.

Maximalist Design

Finally, it seems, the minimalist design trend is losing its stranglehold on restaurant design. Of course, if that approach and design language works for a particular concept, it works.

However, maximalism is growing in popularity. For this type of design, think lots of color and bold patterns. Then, think about using multiple patterns and textures, including on the floors.

So, wallpaper, artwork, plush seating, loud tiles… Per Datassential, maximalism appeals to younger guests. In part, this is because these spaces can offer so many Instagrammable moments.

Monochrome Design

Okay, before we begin, “monochrome” doesn’t only mean a black-and-white palette. While that can work very well depending on the concept, monochrome also means using different tones of a single color.

Of course, there are multiple ways to approach this design trend. For example, if one does want to select a black-and-white scheme, Matte Black Coffee in Los Angeles is compelling.

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A post shared by Coffee . Food . Experience (@matteblackcoffee)

Not only is the design monochrome, guests feel as though they’re inside a two-dimensional image. Per Datassential, this type of design is growing in popularity across the US specifically.

In terms of colorful monochrome, a great example is NYC’s Pietro Nolita. Not only have they chosen pink for their palette, it’s a core element of their branding: Pink AF.

View this post on Instagram

A post shared by Healthy Italian cuisine (@pietronolita)

Yet another way to approach this trend is for operators to use varying tones of particular colors to delineate different spaces. So, the dining room may be tones of pink while the bar is green and a private dining room is blue.

Nostalgic Design

As we’re all well aware, the pandemic derailed people’s plans. In particular, people hit the pause or cancel button on travel and vacations. Now, people appear to restarting their travel plans and getting back out there.

However, we’re also dealing with inflation. So, many people are holding off on spending money on travel. This is where restaurant design comes into play.

According to Datassential, “nostalgic escape” is a trend to watch moving forward. While very specific, this trend combines a dive into the past and capturing vacation vibes.

Per their FoodBytes report, Datassential identifies the following elements as key to this design approach:

Soft shades of colors. In particular, pink.
Tropical designs.
Fifties, Eighties, and Nineties design elements.

One concept that leverages this trend and did so before the pandemic is the Hampton Social. Currently, there are eight locations and two more are on the way.

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A post shared by The Hampton Social (@thehamptonsocial)

Of course, it’s imperative that operators commit only to design language that’s authentic to their concepts. Pursuing a trend simply to pursue it is a clear path to disaster. That said, these design trends have massive appeal and can work for many operators and their brands.

Image: Davide Castaldo on Unsplash

August 3, 2022by David Klemt David Klemt No Comments

8 Books to Read this Month: TOTC Edition

8 Books to Read this Month: Tales of the Cocktail Edition

by David Klemt

This month’s engaging and informative book selections consist of the eight finalists from two of the 2022 Spirited Awards writing categories.

For your convenience, the award winner kicks off each category below. To review July’s book recommendations, click here.

Let’s jump in!

Best New Cocktail or Bartending Book

WINNER: The Japanese Art of the Cocktail

This is the first cocktail book written by Masahiro Urushido, the award-winning bartender from NYC’s Katana Kitten. After just one year with Urushido at the helm, Katana Kitten took home a 2019 Spirited Award. The Japanese Art of the Cocktail features 80 recipes and serves as a deep dive into a unique approach to cocktails and technique.

Death & Co: Welcome Home

The third book from Alex Day, Nick Fauchald, and David Kaplan, the team behind Death & Co., features more than 400 recipes. Now, while this book targets home bartenders, it’s also beneficial to bar professionals as it delves into the Death & Co. cocktail development program. Is that worth a $35 investment? Absolutely. Pick up Death & Co. Welcome Home today.

The Cocktail Seminars

As the story goes, author Brian D. Hoefling taught his fellow Yale students about cocktails and build techniques during his senior year. The Cocktail Seminars is a collection of five of Hoefling’s education seminars and spans 30 cocktail recipes. Along with technique, readers will learn about the history of cocktails, which they and their bar teams can leverage to engage with guests.

The Way of the Cocktail: Japanese Traditions, Techniques, and Recipes

The Way of the Cocktail comes from Julia Momosé, one of the minds behind Chicago cocktail destination Kumiko. From classics to new riffs, the recipes in this book are based on 24 micro-seasons.

Best New Book on Drinks Culture, History, or Spirits

WINNER: The Oxford Companion to Spirits and Cocktails

David Wondrich and Noah Rothbaum team up for likely the deepest dive into the role alcohol plays in human history. The Oxford Companion to Spirits and Cocktails is everything you ever wanted to know about fermentation, distillation, aging, cocktails, cocktail bars, and more. In addition to global techniques and processes, readers will be treated to illustrations, a guide to making drinks, and even a timeline of distillation and spirits.

Bourbon: The Story of Kentucky Whiskey

Clay Risen is considered an authority on spirits. In particular, he’s lauded as an expert on whiskey. Bourbon lovers will appreciate the Bourbon: The Story of Kentucky Whiskey box set for what it is: a definitive history of America’s native spirit. Along with profiles of Kentucky distillers, Risen has included interviews and photographs to tell the story of bourbon.

Drunk: How We Sipped, Danced, and Stumbled Our Way to Civilization

Edward Slingerland takes a look at not just the history of imbibing but what has motivated humans to catch a buzz with alcohol. Drunk goes far beyond anecdotes, myth and lore and uses science to address why alcohol is so important to so many people. More case study than well-spun yarn, Drunk is as entertaining as it is investigative.

Girly Drinks: A World History of Women and Alcohol

Written by Mallory O’Meara, Girly Drinks takes a hard look at the gendering of bars, brewing, distillation, and drinking culture. O’Meara also delves into the history and cultural importance of women bartenders like Ada Coleman, creator of the Hanky Panky.

“Filling a crucial gap in culinary history, O’Meara dismantles the long-standing patriarchal traditions at the heart of these very drinking cultures, in the hope that readers everywhere can look to each celebrated woman in this book—and proudly have what she’s having.”

Image: Mikołaj on Unsplash

August 1, 2022by David Klemt David Klemt No Comments

Tales Reveals 2022 Spirited Awards Winners

Tales of the Cocktail Reveals 2022 Spirited Awards Winners

2022 Spirited Award winner Lynn House

Congratulations to the 2022 Spirited Awards winners, revealed last week during the 20th anniversary of Tales of the Cocktail.

First opening their doors in 2018, NYC’s Katana Kitten took home two awards. The dream team trio of Masahiro Urushido, Greg Boehm, and James Tune won Best US Cocktail Bar and best US Bar team.

Another American venue that won two Spirited Awards is Jewel of the South in New Orleans. Opened in 2019, Jewel of the South was crowned Best US Restaurant Bar. Additionally, the US Bartender of the Year is Chris Hannah, co-owner of the NOLA dining and drinking destination.

We also want to extend a special congratulations to Bar Hacks guest Lynn House. To learn more about House, this year’s Best US Brand Ambassador, check out episode 52 of Bar Hacks.

Internationally, two bars also took home multiple awards. 🔶🟥🔵 A Bar with Shapes for a Name and Lyaness at Sea Containers London, both in London, won two Spirited Awards. The former is this year’s Best New International Cocktail Bar. Plus, it’s the home of Remy Savage, the 2022 International Bartender of the Year.

Lyaness at Sea Containers London clinched Best International Hotel Bar andWorld’s Best Bar. So, London, New Orleans, and New York showed out at the 2022 Spirited Awards.

To view the finalists in each category, please click here.

US Award Categories

U.S. Bartender of the Year presented by Del Maguey: Chris Hannah (Jewel of the South, New Orleans, LA)

Best U.S. Bar Mentor presented by BarSmarts: Sean Kenyon

Best U.S. Brand Ambassador presented by Libbey: Lynn House (Heaven Hill)

Best U.S. Bar Team presented by William Grant & Sons: Katana Kitten (New York, NY)

Best U.S. Cocktail Bar presented by Absolut Vodka: Katana Kitten (New York, NY)

Best U.S. Hotel Bar presented by Grey Goose: Silver Lyan at the Riggs (Washington, DC)

Best U.S. Restaurant Bar presented by Maison Ferrand: Jewel of the South (New Orleans, LA)

Best New U.S. Cocktail Bar presented by Aviation Gin: Happy Accidents (Albuquerque, NM)

International Award Categories

International Bartender of the Year presented by Patrón Tequila: Remy Savage (🔶🟥🔵 A Bar with Shapes for a Name, London, UK)

Best International Bar Mentor presented by Lyre’s Non-Alcoholic: Lauren Mote

Best International Brand Ambassador presented by Lyre’s Non-Alcoholic: Martin Hudak (Mr. Black Spirits)

Best International Bar Team presented by House of Angostura: MAYBE SAMMY (Sydney, Australia)

Best International Cocktail Bar presented by Tequila Fortaleza: Tayēr + Elementary (London, UK)

Best International Hotel Bar presented by Perrier: Lyaness at Sea Containers London (London, UK)

Best International Restaurant Bar presented by Amaro Montenegro and Select Aperitivo: Sexy Fish (London, UK)

Best New International Cocktail Bar presented by Stranger & Sons: 🔶🟥🔵 A Bar with Shapes for a Name (London, UK)

Global Award Categories

Best New Spirit or Cocktail Ingredient presented by Tales of the Cocktail Foundation: Lyre’s Non-Alcoholic Italian Orange

World’s Best Cocktail Menu presented by Diageo Bar Academy: Little Red Door (Paris, France)

World’s Best Spirits Selection presented by Beam Suntory: Jack Rose Dining Saloon (Washington, DC)

Pioneer Award Presented by The Blend: Amanda Gunderson (CEO and co-founder, Another Round Another Rally)

Timeless International Award presented by Jägermeister: Harry’s New York Bar (Paris, France)

Timeless U.S. Award presented by Johnnie Walker: Bemelmans Bar at The Carlyle, A Rosewood Hotel (New York, NY)

Helen David Lifetime Achievement Award presented by William Grant & Sons: Julie Reiner (Co-founder Clover Club, Leyenda, Social Hour Cocktails, Mixtress Consulting)

World’s Best Bar presented by Tales of the Cocktail Foundation: Lyaness at Sea Containers London (London, UK)

Writing and Media Award Categories

Best Cocktail & Spirits Publication presented by Diageo Bar Academy: VinePair

Best Broadcast, Podcast, or Online Video Series presented by Diageo Bar Academy: The Cocktail Lovers

Best Cocktail & Spirits Writing presented by Diageo Bar Academy: “Get Real: The bar world looks beyond feel-good measures on sustainability and climate change” by Max Falkowitz for Imbibe Magazine

Best New Cocktail or Bartending Book presented by Lyre’s Non-Alcoholic: The Japanese Art of the Cocktail by Masahiro Urushido and Michael Anstendig

Best New Book on Drinks Culture, History, or Spirits presented by Diageo Bar Academy: The Oxford Companion to Spirits & Cocktails edited by David Wondrich with Noah Rothbaum

Image: Cory Fontenot

July 13, 2022by David Klemt David Klemt No Comments

Is Your Business in a Top Time Out City?

Is Your Business in a Top Time Out City?

by David Klemt

Hot off the presses, Time Out is now revealing the results of their Time Out Index 2022, an annual list identifying the world’s top cities.

The global publication, founded in the late 1960s, surveyed 20,000 “city dwellers.” Time Out focuses on cities’ restaurant, bar, nightlife, entertainment, and art scenes.

For 2020 and 2021, Time Out put emphasis on the pandemic and how cities maintained resiliency and kept communities together. In 2022, priority is given to flourishing nightlife, dining, and drinking, along with culture.

Additionally, Time Out gives weight to a city’s sustainability, safety, walkability, and affordability. To learn more about how Time Out analyzes data, click here.

Compelling Rankings

Below, you’ll find Time Out’s ranking of the best 53 cities in the world for 2022. I’ve broken the list into sections: 53 to 11, and ten to number one.

Interestingly, the 20,000 survey respondents note the dining, drinking, and nightlife of the top five cities. In fact, the nightlife scene of number three is “the world’s best.”

And city number two? Survey takers think it’s the most fun—”funnest,” according to Time Out—in the world.

Now, I know our audience is largely American and Canadian, so I’ll get to how both rank. Six cities—the usual suspects, basically—in the US are on the list. Only one American city is in the top ten, and it’s likely not the one you think. As for Canada, one city claims the 27 spot, another is number nine.

You’ll find the Canadian and American cities in bold below. Champing at the bit to see the results? Scroll down!

Time Out Cities 53 to 11

Doha, Qatar
Hong Kong
Bangkok, Thailand
Istanbul, Turkey
Johannesburg, South Africa
Rio de Janeiro, Brazil
Auckland, New Zealand
Sydney, Australia
Abu Dhabi, United Arab Emirates
Singapore
Accra, Ghana
Los Angeles, California, USA
Rome, Italy
Dubai, United Arab Emirates
Barcelona, Spain
Miami, Florida, USA
São Paulo, Brazil
Dublin, Ireland
Athens, Greece
Manila, Philippines
Kuala Lumpur, Malaysia
Paris, France
Tel Aviv, Israel
Mexico City, Mexico
Boston, Massachusetts, USA
Lisbon, Portugal
Toronto, Ontario, Canada
Delhi, India
San Francisco, California, USA
Tokyo, Japan
Stockholm, Sweden
Birmingham, England
Buenos Aires, Argentina
New York, New York, USA
Lyon, France
Porto, Portugal
London, England
Taipei, Taiwan
Melbourne, Victoria, Australia
Mumbai, India
Manchester, England
Madrid, Spain
Cape Town, South Africa

The Top Ten Time Out Cities

Copenhagen, Denmark
Montréal, Québec, Canada
Berlin, Germany
Marrakech, Morocco
Prague, Czech Republic
Amsterdam, Netherlands
Glasgow, Scotland
Medellín, Colombia
Chicago, Illinois, USA
Edinburgh, Scotland

Congratulations to the top 53 cities in the world! We expect big things from their dining, drinking, and nightlife moving forward.

Image: Christopher Alvarenga on Unsplash

July 12, 2022by David Klemt David Klemt No Comments

What’s Up with Meat, Poultry and Seafood?

What’s Up with Meat, Poultry and Seafood?

by David Klemt

We know how plant proteins are performing with consumers but what do we know about how meat, poultry, and seafood are doing?

Well, because of a recent report from Datassential, we know many consumers are “meat-limiters.” And research from the World Resources Institute shows that plant-based performance is nuanced.

Interestingly, the performance of animal proteins on-premise appears to be following a beverage trend: Moderation. According to Datassential, more consumers are reducing their consumption of meat and poultry than increasing it in comparison with 2021.

So, meat-limiters may be indicative of the future of meat consumption.

Consumer Shifts

As the name implies, meat-limiters are limiting or otherwise reducing their consumption of animal proteins. Importantly, it doesn’t appear that a significant percentage of consumers are eliminating animal proteins from their diets.

Rather, many people are simply increasing the amount of plant-based items they’re eating. However, that increase is more aspirational than real in some cases.

Per Datassential’s survey of 1,500 consumers in the US, just over 70 percent of people are meat eaters. In contrast, nearly 25 percent are “flexitarian.” Just two percent are vegan or pescatarian, and only three percent are vegetarian.

So, the vast majority of Americans are still consuming meat, poultry, and seafood. We just now have reason to believe that more consumers may be leaning toward a flexitarian diet.

A bit over a quarter of consumers consume meat every day. Still, many people aspire to eat more vegetables, fruits, and whole grains, per Datassential.

However, there are more pescatarians, vegans, and vegetarians among Gen Z than the overall population. According to Datassential, this could indicate a shift away from animal proteins in the future.

Meat Performance is Nuanced

Just like plant-based performance, meat performance is nuanced. There are many factors at play.

Shifts in what consumers value are driving changes to the performance of proteins. Health, sustainability, the climate, taste, and affordability have an effect on all proteins, animal and plant.

Undeniably, inflation and shaken consumer confidence are impacting protein performance. Everything, it seems, is more expensive at the moment. Generally speaking, animal proteins are pricier than plant-based items.

It makes sense, then, that some consumers are reducing their intake of animal proteins and filling that void with fruits, veggies, and legumes.

Of particular note are shifts in daily and weekly consumption of animal proteins in 2022. Meat consumption once or more per week—beef, lamb, pork, veal—is up three percent. However, there’s a ten-percent increase in consumers eating poultry once or more per week.

Interestingly, daily poultry consumption is down seven percent in comparison with 2021. Likewise, daily consumption of seafood is also down seven percent, and fewer people are consuming it less than once per week.

Plant-based is Down

Despite what some would think, meat-limiters don’t appear to be driving up plant proteins significantly.

In fact, according to Datassential, the daily consumption of plant-based proteins is down. Per the research firm, seitan, tempeh, and tofu are the experiencing the greatest drop in daily consumption.

The fact is that across generations, more consumers eat animal proteins on a daily basis than their plant-based counterparts. Gen Z, per Datassential, consumes more animal proteins on a daily basis than other generations.

So, how does it make sense that people are reducing their meat intake but plant-based isn’t seeing a sizable jump in consumption?

In part, the answer is the growing popularity of plant-forward dishes. These are items, like bowls, that offer a small amount of meat, poultry, seafood or dairy. The majority of these menu items consists of plants but are not free of animal proteins completely.

The path forward may indeed be a plant-forward menu. Of course, this is heavily reliant on a specific concept or brand. Still, it’s likely many restaurants can do well offering mixed dishes, those heavier on plant proteins than animal proteins.

Image: Peter Pham on Unsplash

Note: This article is based on information from Datassential’s “2022 Plant-Forward Opportunity” report. To access a number of free reports, sign up with Datassential today.

July 6, 2022by David Klemt David Klemt No Comments

Meat-limiters Driving Change

Meat-limiters Driving Change

by David Klemt

You’re likely familiar with dietary terms like vegetarian, vegan, pescatarian, and even flexitarian, but what about meat-limiter?

As the name implies, a meat-limiter is a person actively choosing to reduce their meat intake. It’s also an umbrella term that includes vegan, vegetarian, pescatarian, or flexitarian diets.

Earlier this year, Datassential took a look at plant-based opportunities. Over the course of a week, 1,500 Americans ages 18 to 88 were surveyed online.

Datassential conducted their research with three partners:

The Culinary Institute of America
Food for Climate League
Menus of Change University Research Collaborative

The results are revealed within Datassential’s “2022 Plant-Forward Opportunity” report. To access a number of free reports, sign up with Datassential today.

Meat-limiter Guests

Just over a quarter of Americans—29 percent—are meat-limiters in some way. That number climbs to 36 percent for Gen Z, per this Datassential survey.

Of four major diets (vegetarian, vegan, pescatarian, flexitarian), vegetarian and vegan are the least common. The overall US population consists overwhelmingly of meat eaters (71 percent). Nearly a quarter, 22 percent, are flexitarian.

For Gen Z, those same numbers are 65 percent and 19 percent, respectively. Interestingly, Gen Z has more vegetarians and vegans than other generations.

But then there’s this: When it comes to the daily consumption of animal proteins, Gen Z is at the top. It’s Millennials who consume the most plant-based proteins on a daily basis.

Animal proteins are still at the top across generations. However, people are consciously reducing their meat intake and seeking plant-based alternatives.

What’s Driving Meat-limiters?

In comparison to 2021, Datassential hit on a compelling finding. A mere six percent of the US population was actively reducing meat intake last year.

That number has skyrocketed in 2022. This year, per Datassential, 21 percent of consumers can be considered meat-limiters.

Given the pandemic, it makes sense to assume this dietary change is due to personal health. However, climate change is a major driver.

Overall, 55 percent of consumers feel climate change is important. That number climbs to 71 percent for meat-limiters, 69 percent of students.

Half of consumers also feel that plant-based foods, in general, are better for the planet. Nearly half (47 percent) feel these foods are also more sustainable. Again, the number increases for meat-limiters and students (and Millennials, as well).

Interestingly, two-thirds of consumers feel traditional plant-based food items are healthier than new plant-based meat alternatives. However, a little over 60 percent of consumers find both plant-based food categories healthy.

Takeaway

Before proceeding, it’s important to recognize that a survey of just 1,500 people comes with a margin of error.

Still, the results are compelling and provide insight into today’s consumer. Among the top insights:

Consumers are trying more plant-based menu items.
Climate change and sustainability are driving consumer decisions.
More consumers are concerned with their health.

Per Datassential, one way to appeal to a wide range of guests is offering “mixed dishes.” These are menu items that combine animal and plant proteins. Another way forward is menuing plant-forward dishes that include a small amount of meat, poultry, fish, or dairy.

If we accept that only a tiny fraction of the US population is vegetarian or vegan, targeting flexitarians and daily meat eaters in this way makes sense.

Image: Yoav Aziz on Unsplash

July 5, 2022by David Klemt David Klemt No Comments

Datassential IDs LTO Keys

Datassential Identifies Limited-time-offer Keys

by David Klemt

Food and beverage market research firm Datassential turns their attention to limited-time offers in one of their latest reports.

Part of the FoodBytes series of resources, “A Look at Limited-time Offers” is a free Datassential trend report. If you have yet to do so, sign up for Datassential FoodBytes reports.

There are several ways for savvy operators to drive traffic. Loyalty programs and subscriptions are two popular modern-day solutions.

However, the LTO is tried, true, and can boost traffic, engagement, loyalty, sales, and revenue.

Of course, there are different ways to execute LTOs. There’s the recurring, anticipation-driving item: McDonald’s McRib. Then there’s the seasonal offering: Starbucks Peppermint Mocha. And the return of a popular item eliminated years prior: Taco Bell Mexican Pizza and Wendy’s Spicy Chicken Nuggets.

Some LTOs have been going strong for years, others are leveraging a sense of nostalgia. In fact, some appear to be a direct response to Internet chatter.

Which LTO?

Per Datassential, 63 percent of LTOs most recently purchased by consumers were impulse decisions. And when the firm dives into LTOs in general, they find that one product stands above the others.

The top-performing LTO food item in terms of order frequency is the burger.

Now, does that mean you have to menu an LTO burger to succeed with this type of promotion? Of course not.

A successful LTO is one that’s authentic to your brand. And, clearly, it needs to be one that interests your guests. If you’ve been reading KRG Hospitality articles for a while, you know what I’m going to say next.

But for those who are new around here, I’m going to tell you to review your consumer data. What items are performing best? What flavors are resonating with your guests?

Now, look at the industry. What flavors and items are trending? How can you leverage them—in an authentic way—into an LTO?

If a burger may not work, will a different type of sandwich do the job? How about nuggets, breakfast items, a dessert, or a beverage?

Know your brand, know your guest, know what’s bringing the heat.

How Long?

Once you know what you’re offering, the next question should be obvious. How long are you going to make it available?

Every concept is different. What works for one may not work for another. However, analyzing what others do in terms of LTO duration and frequency can help inform you.

And as it turns out, Datassential’s latest FoodBytes report addresses “LTO cadence.”

The majority of operators—43 percent—run an LTO once every one to three months. Considering the popularity of seasonal LTOs, this frequency makes sense.

Interestingly, a quarter of operators offer an LTO more than once per month. Just about as many execute one every three to six months.

Far, far less common is running an LTO once every six to 12 months. In fact, this is the approach of just seven percent of operators. A mere two percent of operators run an LTO less than once every 12 months.

Again, there’s no “right” answer here. Some operations can succeed with multiple LTOs each month, some find success rarely offering one at all.

Takeaway

Operators know their brands best. They should know their guests equally as well, or at least strive to do so. As such, an operator should have an idea of what to offer in terms of LTO food or beverage items.

And, of course, operators should data-obsessive. That’s the only real way to have an idea of what LTOs will work, how often they should run, and how frequently one should be available.

But there’s more to know. Datassential also reveals challenges that deserve serious consideration before executing any LTO:

Do you have time to train staff on the new item?
Is your staff strong when it comes to upselling?
Will your guests complain when the new product is no longer available?
Do you have to source one or more ingredients for this item?
Is/Are the ingredient(s) necessary readily available?

The LTO is a proven marketing and promotion tool when done well. Challenging, yes, but worth the effort.

Image: amirali mirhashemian on Unsplash