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The 50 Best Bars in North America

The 50 Best Bars in North America in 2023

by David Klemt

Double Chicken Please cocktail bar interior

Double Chicken Please in New York City is number one on this year’s list.

The buildup toward this year’s World’s 50 Best Bars is growing with the recent announcement of North America’s 50 Best Bars.

Mexico City, the 2023 North America’s 50 Best Bars host city, is home to several of this year’s rankings. A true cocktail destination loaded with extraordinary bars, Mexico City boasts eight entries. Overall, 14 of the 50 bars on the 2023 list are in Mexico.

Of course, New York City also claims an impressive number of bars earning spots on the list. In fact, NYC boasts 12 of the 50 best bars in North America. More than half of the bars—28—are in the US.

Not that anyone asked, two of the bars on the 2023 list are in the city where I was born, Chicago: Kumiko and Milk Room. And I’m going to give a special nod to Herbs & Rye, number 27 and located in my hometown of Las Vegas (and the US headquarters of KRG Hospitality).

Herbs & Rye cocktail bar and restaurant in Las Vegas, Nevada

Of the 50 best bars in North America, Canada is home to seven. Four of these are in Toronto (where KRG Hospitality’s global headquarters are located), two are in Montreal, and one is in Vancouver.

Just one bar in the Caribbean makes the 2023 North America’s 50 Best Bars list. But what a bar: La Factoría is number 24.

Below you’ll find this year’s rankings; destination awards; and individual awards. Speaking of, congratulations to Julio Cabrera and Christine Wiseman! You’ll see why as you scroll. To review last year’s list, please click here.

Congratulations to all the bars and their bar teams representing the best of North America in 2023!

2023 North America’s 50 Best Bars Destination Award Winners

The Best Bar in Northeast USA, sponsored by Perrier

Double Chicken Please (No. 1; New York City, New York)

The Best Bar in South USA, sponsored by Torres Brandy

Jewel of the South (No. 5; New Orleans, Louisiana)

The Best Bar in the Midwest USA, sponsored by Rémy Martin

Kumiko (No. 8; Chicago, Illinois)

The Best Bar in the West USA, sponsored by Naked Malt

Thunderbolt (No. 10; Los Angeles, California)

The Best Bar in the Caribbean, sponsored by Scrappy’s Bitters

La Factoría (No. 24; San Juan, Puerto Rico)

The Best Bar in Canada, sponsored by Tia Maria

Civil Liberties (No. 12; Toronto, Ontario, Canada)

The Best Bar in Mexico, sponsored by Bareksten

Handshake Speakeasy (No. 2; Mexico City, Mexico)

2023 North America’s 50 Best Bars

  1. Milady’s (New York City, New York)
  2. Youngblood (San Diego, California)
  3. Platform 18 (Phoenix, Arizona)
  4. Brujas (Mexico City, Mexico)
  5. Clover Club (New York City, New York)
  6. Allegory (Washington, DC)
  7. The Dead Rabbit (New York City, New York)
  8. Bar Mordecai (Toronto, Ontario, Canada)
  9. Yacht Club (Denver, Colorado)
  10. Bar Leather Apron (Honolulu, Hawaii)
  11. Aruba Day Drink (Tijuana, Baja California, Mexico)
  12. Maison Premiere (New York City, New York)
  13. Milk Room (Chicago, Illinois)
  14. Mother (Toronto, Ontario, Canada)
  15. Cure (New Orleans, Louisiana)
  16. Cloakroom (Montreal, Québec, Canada)
  17. Sweet Liberty (Miami, Florida)
  18. Service Bar (Washington, DC)
  19. Atwater Cocktail Club (Montreal, Québec, Canada)
  20. Selva (Oaxaca de Juárez, Oaxaca, Mexico)
  21. Death & Co. (Los Angeles, California)
  22. Martiny’s (New York City, New York)
  23. Pacific Cocktail Haven (San Francisco, California)
  24. Herbs & Rye (Las Vegas, Nevada)
  25. Kaito del Valle (Mexico City, Mexico)
  26. Café de Nadie (Mexico City, Mexico)
  27. La Factoría (San Juan, Puerto Rico)
  28. Arca (Tulum, Quintana Roo, Mexico)
  29. Sabina Sabe (Oaxaca de Juárez, Oaxaca, Mexico)
  30. El Gallo Altanero (Guadalajara, Jalisco, Mexico)
  31. Hanky Panky (Mexico City, Mexico)
  32. Botanist Bar (Vancouver, British Columbia, Canada)
  33. Mace (New York City, New York)
  34. Rayo (Mexico City, Mexico)
  35. Baltra Bar (Mexico City, Mexico)
  36. Bar Pompette (Toronto, Ontario, Canada)
  37. Employees Only (New York City, New York)
  38. Attaboy (New York City, New York)
  39. Civil Liberties (Toronto, Ontario, Canada)
  40. Zapote Bar (Playa del Carmen, Quintana Roo, Mexico)
  41. Thunderbolt (Los Angeles, California)
  42. Café La Trova (Miami, Florida)
  43. Kumiko (Chicago, Illinois)
  44. Overstory (New York City, New York)
  45. Dante (New York City, New York)
  46. Jewel of the South (New Orleans, Louisiana)
  47. Licorería Limantour (Mexico City, Mexico)
  48. Katana Kitten (New York City, New York)
  49. Handshake Speakeasy (Mexico City, Mexico)
  50. Double Chicken Please (New York City, New York)

2023 North America’s 50 Best Bars Individual Awards

Roku Industry Icon Award 2023

Julio Cabrera (No. 9; Café La Trova; Miami, Florida)

Altos Bartender’s Bartender Award 2023

Christine Wiseman (Bar Lab Hospitality)

Michter’s Art of Hospitality Award 2023

Botanist Bar (No. 19; Vancouver, British Columbia, Canada)

Siete Misterios Best Cocktail Menu Award 2023

Allegory (No. 45; Washington, DC)

Disarronno Highest New Entry Award 2023

Bar Pompette (No. 15; Toronto, Ontario, Canada)

Nikka Highest Climber Award 2023

Overstory (No. 7; New York City, New York)

Campari One to Watch Award 2023

Manhatta (New York City, New York)

London Essence Best New Opening Award 2023

Rayo (No. 17; Mexico City, Mexico)

Ketel One Sustainable Bar Award 2023

Yacht Club (No. 42; Denver, Colorado)

Double Chicken Please image: Emmanuel Rosario / Hanna Lee Communications. Herbs & Rye image courtesy of Hanna Lee Communications.

KRG Hospitality. Bar Consultant. Nightclub. Lounge. Mixology. Cocktails.

by David Klemt David Klemt No Comments

SevenRooms Introduces New Tool: Pre-Shift

SevenRooms Introduces New Tool: Pre-Shift

Front of house staff member using SevenRooms

A new tool from SevenRooms will help operators and their teams make the most of pre-shift meetings to deliver exceptional service.

Aptly named, Pre-Shift provides a real-time, data-driven picture of a given shift’s reservations. Operators and their leadership team members will no longer need to hit the office, navigate to the day’s reservations, and print out guest data—assuming they have such valuable information.

Further, this new feature is accessible via the venue’s devices (tablets, phones, etc.). Pre-Shift, then, offers a real-time view of reservations and robust guest data. Well ahead of arrivals, staff will know a guest’s seating preference, relationship with the venue, reviews they’ve left, allergies, and much more.

Intriguingly, Spago has been testing Pre-Shift ahead of SevenRooms’ announcement and launch. Per Steve Scott Springer, the GM of Spago of Beverly Hills, this new tool is a game-changer for restaurants.

Less than two months ago, SevenRooms launched Email Marketing. It’s likely we can expect more new features to roll out throughout 2023.

To learn more, please review the Pre-Shift press release below.

SEVENROOMS’ PRE-SHIFT FEATURE EMPOWERS TEAMS TO STREAMLINE PRE-SERVICE OPERATIONS

New data-driven tool serves as a one-stop-shop for restaurant teams to enhance the guest experience and build guest loyalty

NEW YORK (May 3, 2023) – SevenRooms, a global guest experience and retention platform for the hospitality industry, today announced a new product feature, Pre-Shift, which provides operators with key shift details they can leverage to inform and lead pre-service meetings. Pre-Shift is built to power and simplify pre-service meetings for restaurant operators and their staff around the world.

The new feature provides operators a real-time, unified view of everything they need ahead of each shift and saves employees’ time with an out-of-the-box informational report. Instead of paper print-outs and laborious briefing forms, Pre-Shift allows teams to harness rich customer data with up-to-the-minute information on every guest joining during that shift.

With ongoing labor shortages, Pre-Shift is a crucial tool in helping operators save time on administrative tasks like pulling guest and reservation data to optimize a team’s pre-shift meeting ahead of service with all stakeholders. This allows operators and staff to instead focus on delivering exceptional, personalized experiences the moment that guest walks through the door. Operators have the ability to embrace new consumer expectations to provide an incredible guest journey from start to finish.

By incorporating this tool, staff can utilize SevenRooms’ rich guest data and Auto-Tags to educate themselves on incoming guests. The tool highlights valuable insights such as allergy information, dining preferences, previous experiences with the restaurant, and positive/negative reviews. It also provides a quick snapshot of that day’s notes on menu specials, private events or special requests, making it easy for staff to reference back to quickly throughout the course of service. Whether it’s the maître d, host, server or back of house employees, Pre-Shift enables all staff with the information they need to deliver exceptional service, build guest loyalty, and keep up with diner expectations as they continue to evolve.

Pre-Shift helps restaurants deliver personalized hospitality at scale with invisible technology. Guest and reservation data can be accessed on the fly without double clicks or additional navigation via iPhone and iPads for the utmost convenience. No other reservation management product on the market today offers such a robust overview with automated guest data incorporated into its dashboard, saving operators time as they set up for service.

“The magic of SevenRooms is in the way that we’re able to serve up relevant guest information to restaurants at key points of service. Our new Pre-shift view takes that magic one step further by strategically aggregating the most important guest insights before service even begins,” said Allison Page, Co-Founder & Chief Product Officer at SevenRooms. “We seamlessly take the data available for a shift and serve up key insights that the front of house should be aware of heading into service – for instance, guests with a high propensity to spend, guests who have previously left negative reviews, guests with allergies and more. Pre-Shift provides operators a real-time, unified view that takes pre-service preparation to a whole new level, ultimately providing guests with exceptional, frictionless experiences.”

“Pre-Shift is a great addition to Spago’s pre-service meeting,” said Steve Scott Springer, General Manager at Spago Beverly Hills. “When we began using the group-by server feature, it really was an ‘a-ha’ moment. This is exactly the way every restaurant wants to prep their employees ahead of a shift. We put the entire view up on a screen so our team can see and follow along. This is so much easier than what we used to do – it’s a no-brainer.”

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, email marketing 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: SevenRooms

by David Klemt David Klemt No Comments

Nikka Age Statement Whiskey Returns to US

Nikka Age Statement Whiskey Returns to US

by David Klemt

Nikka Whisky Yoichi Single Malt 10 Year Old bottle

After an eight-year hiatus, Nikka is bringing age-statement whisky back to the United States, starting with Yoichi Single Malt 10-Year-Old.

Operators with robust whisky programs, their guests, and collectors will recall what happened back in 2015. That was the year that Nikka’s Yoichi age statement whisky line was shelved. The Yoichi portfolio’s stars—10, 12, 15 and 20 Year Old whiskies—were replaced by an expression labeled “No Age Statement.”

Interestingly, we can trace the withdrawal of age-statement Japanese whisky and disappearance of iconic bottles to the 1980s. In response to a slowdown in demand, Japanese distillers reduced production. While that move helped deal with the drop in demand and sales, there would be consequences decades later.

Eventually, the world discovered some of the most iconic whiskies on the planet: Hibiki 12 and 17, Yamazaki 12 and 18, and the aforementioned Yoichi 15 and 20.

Of course, the rabid demand for Japanese age statement whiskies resulted in an extinction event, of sorts. The reduced production that gave the world some of the most amazing luxury whiskies ever known, coupled with intense (and likely unforeseen) demand, eventually put distilleries in dire straits.

Simply put, Japanese distillers needed time to replenish their precious liquids. So, for several years, whisky lovers have been waiting for new aged-statement whiskies from Japan. Around 2017, articles and blog posts started sounding the alarm. Whisky experts told us we’d have to wait at least five years to see the return of age-statement expressions. And, as Nikka’s announcement shows, they were right.

To be clear, no-age-statement expressions have proven themselves compelling portfolio-mates during our wait. However, seeing a bonafide return to age statement whiskies is exciting.

Yoichi Single Malt 10-Year-Old

Not only is Nikka returning to age statements, they’re paying tribute with this 10-year-old release, a brand-new addition to the portfolio. Yoichi Single Malt 10-Year-Old commemorates Yoichi Distillery attaining “Important Cultural Properties” status.

More specifically, ten buildings on the grounds of Yoichi Distillery earned this important designation. Ten buildings, ten years of aging.

“We are honored for the Yoichi Distillery to receive this designation from Japan’s Agency for Cultural Affairs. This designation helps ensure we will pass on the history of Japanese whisky to future generations,” says Emiko Kaji, Nikka Whisky global marketing and sales general manager. “To celebrate this special honor, we welcomed the return of Nikka Whisky aged statements and released the Yoichi Single Malt 10-Year-Old, a new expression created by the current blenders.”

 

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A post shared by Nikka Whisky (@nikkawhiskyusa)

This new, 45-percent ABV expression will be available in limited quantities. However, Nikka says the production will be “ongoing” and release on an annual basis. The suggested retail price is $175.

“A momentous moment for Nikka Whisky, we are so excited to bring the release of Yoichi Single Malt 10-Year-Old to the US,” says Dan Leese, CEO and president of Hotaling & Co. “As Nikka Whisky looks to celebrate its 90th anniversary in 2024, this release is a testament to their historical significance in the world of whisky and a preview of what’s to come as they continue to build and enrich their traditional range.”

Momentous, indeed. I’m eager to see more age-statement expressions become available throughout North America. Yoichi 10 is a fantastic start.

Image: Nikka Whisky

KRG Hospitality spirit education

by David Klemt David Klemt No Comments

TOTCF Names 2023 Spirited Award Honorees

TOTCF Names 2023 Spirited Award Honorees

by David Klemt

Neon sign in red that reads "Cocktails"

The Tales of the Cocktail Foundation has announced the 17th annual Spirited Awards honorees, organized into several regions.

Unless otherwise noted, each award category recognizes ten honorees. Categories include best cocktail bar, best restaurant bar, best hotel bar, best new bar, and best bar team.

Additionally, I have to say that I’m impressed by how the TOTCF further recognized several global regions. There’s the United States, of course, separated into three regions of its own. Then there’s Asia Pacific, Canada, Europe, Latin America and the Caribbean, and Middle East and Africa.

I’m focusing on three specific regions for this article: the US, Canada, and Latin America and the Caribbean. This decision comes from that fact those are KRG Hospitality’s three main areas of operation. But don’t worry, Asia Pacific, Europe, and Middle East and Africa: we’re coming for you, too.

To review the list in its entirety, please click here.

Unsurprisingly, Austin, Chicago, Las Vegas (our US headquarters), Nashville, New Orleans, New York, Phoenix, San Francisco, and Washington, DC are well represented. However, it’s refreshing to see other markets recognized, such as Portland, Maine, and Brookline, Massachusetts. Montreal, Toronto (our Canadian headquarters), Vancouver do Canada proud, of course.

Congratulations to this year’s honorees! Cheers!

Best US Cocktail Bar: US Central

  • Bordel (Chicago, Illinois)
  • DrinkWell (Austin, Texas)
  • Estereo (Chicago, Illinois)
  • Julep (Houston, Texas)
  • Kiesling (Detroit, Michigan)
  • Manolito (New Orleans, Louisiana)
  • Nickel City (Austin, Texas)
  • Sparrow (Chicago, Illinois)
  • Sportsman’s Club (Chicago, Illinois)
  • The Roosevelt Room (Austin, Texas)

Best US Cocktail Bar: US East

  • Bar Goto (New York, New York)
  • barmini by José Andrés (Washington, DC)
  • Dear Irving Gramercy (New York, New York)
  • Double Chicken Please (New York, New York)
  • Old Glory (Nashville, Tennessee)
  • Overstory (New York, New York)
  • Pearl Diver (Nashville, Tennessee)
  • Portland Hunt + Alpine Club (Portland, Maine)
  • Serenata (Washington, DC)
  • Service Bar (Washington, DC)
  • Sunken Harbor Club (Brooklyn, New York)

Best U.S. Cocktail Bar: US West

  • Bitter & Twisted Cocktail Parlour (Phoenix, Arizona)
  • Century Grand (Phoenix, Arizona)
  • Foreign National (Seattle, Washington)
  • Navy Strength (Seattle, Washington)
  • Raised by Wolves (San Diego, California)
  • Rum Club (Portland, Oregon)
  • Thunderbolt (Los Angeles, California)
  • Trick Dog (San Francisco, California)
  • True Laurel (San Francisco, California)
  • Wildhawk (San Francisco, California)
  • Yacht Club (Denver, Colorado)

Best US Restaurant Bar: US Central

  • Arnaud’s French 75 Bar (New Orleans, Louisiana)
  • Bakery Bar (New Orleans, Louisiana)
  • Grey Ghost (Detroit, Michigan)
  • Kumiko (Chicago, Illinois)
  • Lengua Madre (New Orleans, Louisiana)
  • Maple and Ash (Chicago, Illinois)
  • Margot’s (New Orleans, Louisiana)
  • Mister Mao (New Orleans, Louisiana)
  • Monteverde (Chicago, Illinois)
  • Spoon and Stable (Minneapolis, Minnesota)
  • The Hope Farm (Fairhope, Alabama)
  • The Lounge at MARCH (Houston, Texas)

Best US Restaurant Bar: US East

  • Blossom Bar (Brookline, Massachusetts)
  • Bresca (Washington, DC)
  • Café La Trova (Miami, Florida)
  • COTE Korean Steakhouse (New York, New York)
  • Crown Shy (New York, New York)
  • Gramercy Tavern (New York, New York)
  • Jaguar Sun (Miami, Florida)
  • Macchialina (Miami, Florida)
  • Manhatta (New York, New York)
  • The Grey (Savannah, Georgia)

Best US Restaurant Bar: US West

  • Accomplice Bar (Los Angeles, California)
  • Bar Agricole (San Francisco, California)
  • Bicyclette (Los Angeles, California)
  • Cleaver: Butchered Meats, Seafood & Classic Cocktails (Las Vegas, Nevada)
  • L’Oursin (Seattle, Washington)
  • Lolo (San Francisco, California)
  • Palomar (Portland, Oregon)
  • Redbird (Las Vegas, Nevada)
  • Valentine (Phoenix, Arizona)
  • Viridian (Oakland, California)

Best US Hotel Bar: US Central

  • Bar Marilou at the Maison de la Luz (New Orleans, Louisiana)
  • Catbird at the Thompson Hotel (Dallas, Texas)
  • Chandelier Bar at the Four Seasons New Orleans (New Orleans, Louisiana)
  • Hot Tin at the Pontchartrain Hotel (New Orleans, Louisiana)
  • Lazy Bird at The Hoxton (Chicago, Illinois)
  • loa at the International House (New Orleans, Louisiana)
  • Midnight Rambler at The Joule (Dallas, Texas)
  • The Bar at Hotel Zachary (Chicago, Illinois)
  • The Elysian Bar at the Hotel Peter and Paul (New Orleans, Louisiana)
  • Vol. 39 at The Kimpton Gray Hotel (Chicago, Illinois)

Best US Hotel Bar: US East

  • Allegory at the Eaton Hotel (Washington, DC)
  • Champagne Bar at The Surf Club Miami (Miami, Florida)
  • Dear Irving on Hudson at the Aliz Hotel (New York, New York)
  • El Quijote at Hotel Chelsea (New York, New York)
  • Minibar at The Meridian Hotel (Miami, Florida)
  • Orilla Bar & Grill at the Urbanica the Euclid Hotel (Miami Beach, Florida)
  • Panorama Room at Graduate Hotel Roosevelt Island (New York, New York)
  • Raines Law Room at the William (New York, New York)
  • White Limozeen at The Graduate (Nashville, Tennessee)
  • Zou Zou’s at the Pendry Manhattan West (New York, New York)

Best US Hotel Bar: US West

  • Anasazi Bar and Lounge at the Rosewood Inn of the Anasazi (Santa Fe, New Mexico)
  • ARDOR at The West Hollywood EDITION (West Hollywood, California)
  • Del Rey at Villa Royale (Palm Springs, California)
  • Hey Love at The Jupiter (Portland, Oregon)
  • Legacy Club at Circa (Las Vegas, Nevada)
  • Libertine Social at the Mandalay Bay (Las Vegas, Nevada)
  • Little Rituals at the Residence Inn/Courtyard by Marriott (Phoenix, Arizona)
  • Mountaineering Club at the Graduate Seattle Hotel (Seattle, Washington)
  • Overlook Lounge, Aperitifs & Spirits at the Wynn (Las Vegas, Nevada)
  • Ski Lodge at The Cosmopolitan (Las Vegas, Nevada)

Best New US Cocktail Bar: US Central

  • Adiós Bar (Birmingham, Alabama)
  • Bandista at the Four Seasons (Houston, Texas)
  • Dovetail Bar at the Schaeffer Hotel (New Orleans, Louisiana)
  • EZ’s Liquor Lounge (Houston, Texas)
  • In Plain Sight (Austin, Texas)
  • Nine Bar (Chicago, Illinois)
  • Penny Drip (Fort Wayne, Indiana)
  • Refuge (Houston, Texas)
  • The Elm (Bloomington, Indiana)
  • The Meadowlark (Chicago, Illinois)

Best New US Cocktail Bar: US East

  • Amazonia (Washington DC)
  • Chez Zou (New York, New York)
  • Church (Baltimore, Maryland)
  • Lobby Bar at The Hotel Chelsea (New York, New York)
  • Martiny’s (New York, New York)
  • Marygold’s Brasserie at the Arlo Wynwood (Miami, Florida)
  • Milady’s (New York, New York)
  • Nubeluz at The Ritz-Carlton New York, NoMad (New York, New York)
  • Swan Room at Nine Orchard (New York, New York)
  • The Danforth (Portland, Maine)
  • The Gibson Room (Miami, Florida)

Best New US Cocktail Bar: US West

  • Baby Gee (Long Beach, California)
  • Capri Club (Los Angeles, California)
  • Dalva (San Francisco, California)
  • For The Record (San Francisco, California)
  • Here Today Brewery & Kitchen (Seattle, Washington)
  • Khla (Phoenix, Arizona)
  • Pacific Standard + The Sunset Room at the KEX Portland (Portland, Oregon)
  • The Butterscotch Den (Sacramento, California)
  • The Let’s Go Disco and Cocktail Club (Los Angeles, California)
  • UnderTow (Gilbert, Arizona)

Best International Cocktail Bar: Canada

  • Atwater Cocktail Club (Montreal, Québec)
  • Bar Mordecai (Toronto, Ontario)
  • Bar Pompette (Toronto, Ontario)
  • Civil Liberties (Toronto, Ontario)
  • Cry Baby Gallery (Toronto, Ontario)
  • El Pequeño Bar (Montreal, Québec)
  • Milky Way Cocktail Bar (Montreal, Québec)
  • Mother Cocktail Bar (Toronto, Ontario)
  • The Cloakroom Bar (Montreal, Québec)
  • The Keefer Bar (Vancouver, British Columbia)

Best International Cocktail Bar: Latin America & Caribbean (LATAM&C)

  • ALQUÍMICO (Cartagena, Colombia)
  • Baltra Bar (Mexico City, Mexico)
  • Café de Nadie (Mexico City, Mexico)
  • Chintoneria (Buenos Aires, Argentina)
  • El Barón Cafe & Cocktail Bar (Cartagena, Colombia)
  • El Gallo Altanero (Guadalajara, Mexico)
  • Handshake Speakeasy (Mexico City, Mexico)
  • Las Brujas (Mexico City, Mexico)
  • Pocket (San Jose, Costa Rica)
  • Tres Monos (Buenos Aires, Argentina)

Best International Restaurant Bar: Canada

  • Aloette (Toronto, Ontario)
  • Bar Kismet (Halifax, Nova Scotia)
  • Highwayman Restaurant & Bar (Halifax, Nova Scotia)
  • Honō Izakaya (Québec City, Québec)
  • Kissa Tanto (Vancouver, British Columbia)
  • Le Majestique (Montreal, Québec)
  • Le Swan French Diner (Toronto, Ontario)
  • Published on Main (Vancouver, British Columbia)
  • The Ostrich Club (Halifax, Nova Scotia)
  • Wind Cries Mary (Victoria, British Columbia)

Best International Restaurant Bar: Latin America & Caribbean (LATAM&C)

  • ARCA Tulum (Tulum, Mexico)
  • Aruba Day Drinking Bar (Tijuana, Mexico)
  • Casa Prunes (Mexico City, Mexico)
  • COCHINCHINA (Buenos Aires, Argentina)
  • Huset Cocina de Campo (Mexico City, Mexico)
  • Lady Bee (Lima, Peru)
  • La Sala de Laura (Bogotá, Colombia)
  • Mesa Franca (Bogotá, Colombia)
  • SubAstor (São Paolo, Brazil)
  • Tan Tan (São Paolo, Brazil)

Best International Hotel Bar: Canada

  • 1927 Lobby Lounge at the Rosewood Hotel Georgia (Vancouver, British Columbia)
  • Bar Artéfact at Auberge Saint-Antoine Hotel (Québec City, Québec)
  • Botanist at the Fairmont Pacific Rim Hotel (Vancouver, British Columbia)
  • Clive’s Classic Lounge at the Chateau Victoria Hotel (Victoria, British Columbia)
  • Clockwork Champagne & Cocktails at the Fairmont Royal York Hotel (Toronto, Ontario)
  • Library Bar at the Fairmont Royal York (Toronto, Ontario)
  • Lobby Lounge and RawBar at Fairmont Pacific Rim (Vancouver, British Columbia)
  • Marcus Restaurant + Terrace at the Four Seasons Hotel (Montreal, Québec)
  • Rundle Bar at the Fairmont Banff Springs (Banff, Alberta)
  • The Courtney Room at the Magnolia Hotel (Victoria, British Columbia)

Best International Hotel Bar: Latin America & Caribbean (LATAM&C)

  • BEKEB at the Hotel Casa Hoyos (San Miguel de Allende, Mexico)
  • Celajes Lounge Bar at Hotel Belmar (Monteverde, Costa Rica)
  • Fifty Mils at the Four Seasons Hotel (Mexico City, Mexico)
  • Hotel B Relais & Châteaux (Lima, Peru)
  • Mi Amor Bar at the Mi Amor Hotel (Tulum, Mexico)
  • Mezcaleria Gota Gorda at the Boutique Hotel Soiree (Playa Zipolite, Mexico)
  • Mulberry Project at La Zebra Hotel (Tulum, Mexico)
  • Nobu at the Nobu Hotel Los Cabos (Cabo San Lucas, Mexico)
  • Rum Room at Rosewood Little Dix Bay (British Virgin Islands)
  • Zapote Bar at the Rosewood Mayakoba (Playa del Carmen, Mexico)

Best New International Cocktail Bar: Canada*

  • Bagheera (Vancouver, British Columbia)
  • Bar Banane (Toronto, Ontario)
  • Friendlies Bar (Vancouver, British Columbia)
  • Mount Pleasant Vintage & Provision (Vancouver, British Columbia)
  • Sidecar (Ottawa, Ontario)
  • Simpl Things (Toronto, Ontario)
  • Stolen Goods (Ottawa, Ontario)
  • The Stock Room (Vancouver, British Columbia)
*8 nominees due to the number of nominations received.

Best New International Cocktail Bar: Latin America & Caribbean (LATAM&C)

  • CATA Agave Bar (Tamarindo, Costa Rica)
  • Comeré (Oaxaca, Mexico)
  • Door No.4 (Georgetown, Cayman Islands)
  • Jardín Tragos y Pasteles (Bogotá, Colombia)
  • Juliana (Guayaquil, Ecuador)
  • Library by the Sea at The Kimpton Seafire Resort (Seven Mile Beach, Cayman Islands)
  • Mamba Negra (Medellín, Colombia)
  • Mulberry Project at Tribu Hostel (Holbox, Mexico)
  • Rayo Cocktail Bar (Mexico City, Mexico)
  • Sastreria Martinez (Lima, Peru)

Best US Bar Team: US Central

  • Arnaud’s French 75 Bar (New Orleans, Louisiana)
  • DrinkWell (Austin, Texas)
  • Grey Ghost (Detroit, Michigan)
  • Half Step (Austin, Texas)
  • Lazy Bird at The Hoxton (Chicago, Illinois)
  • Nickel City (Austin, Texas)
  • Porco Lounge & Tiki Bar (Cleveland, Ohio)
  • Standby (Detroit, Michigan)
  • The Roosevelt Room (Austin, Texas)
  • Three Dots and a Dash & The Bamboo Room (Chicago, Illinois)

Best US Bar Team: US East

  • Allegory at the Eaton Hotel (Washington, DC)
  • Attaboy Nashville (Nashville, Tennessee)
  • Bar Belly (New York, New York)
  • Clover Club (Brooklyn, New York)
  • Double Chicken Please (New York, New York)
  • Hawksmoor (New York, New York)
  • LPM Restaurant & Bar Miami (Miami, Florida)
  • Overstory (New York, New York)
  • Service Bar (Washington, DC)
  • The Fox Bar & Cocktail Club (Nashville, Tennessee)

Best US Bar Team: US West

  • Century Grand (Phoenix, Arizona)
  • Happy Accidents (Albuquerque, New Mexico)
  • Highball Cocktail Bar (Phoenix, Arizona)
  • Pacific Cocktail Haven (San Francisco, California)
  • Paper Plane (San Jose, California)
  • The Snug (Sacramento, California)
  • True Laurel (San Francisco, California)
  • UnderTow (Phoenix, Arizona)
  • Viridian Bar (Oakland, California)
  • Williams & Graham (Denver, Colorado)
  • Yacht Club (Denver, Colorado)

Best International Bar Team: Canada

  • Atwater Cocktail Club (Montreal, Québec)
  • BarChef (Toronto, Ontario)
  • Civil Liberties (Toronto, Ontario)
  • Clive’s Classic Lounge at the Chateau Victoria Hotel (Victoria, British Columbia)
  • Dear Friend Bar (Dartmouth, Nova Scotia)
  • Laowai (Vancouver, British Columbia)
  • Lobby Lounge and RawBar at Fairmont Pacific Rim (Vancouver, British Columbia)
  • Published on Main (Vancouver, British Columbia)
  • The Cloakroom Bar (Montreal, Québec)
  • The Keefer Bar (Vancouver, British Columbia)

Best International Bar Team: Latin America & Caribbean (LATAM&C)

  • ALQUÍMICO (Cartagena, Colombia)
  • Café de Nadie (Mexico City, Mexico)
  • Chintoneria (Buenos Aires, Argentina)
  • El Barón Cafe & Cocktail Bar (Cartagena, Colombia)
  • Handshake Speakeasy (Mexico City, Mexico)
  • Hanky Panky (Mexico City, Mexico)
  • Las Brujas (Mexico City, Mexico)
  • La Factoria (San Juan, Puerto Rico)
  • La Uat (Buenos Aires, Argentina)
  • Tres Monos (Buenos Aires, Argentina)

Image: Luciann Photography on Pexels

by David Klemt David Klemt No Comments

Sticking to Your Standards

The Importance of Sticking to Your Standards

by David Klemt

Person writing down notes

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

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

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

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

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

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

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

Setting Standards

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

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

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

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

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

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

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

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

The Cheat Code

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

How so? It’s quite enlightening.

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

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

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

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

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

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

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

Image: Owen Michael Grech on Unsplash

KRG Hospitality Start-Up Restaurant Bar Hotel Consulting Consultant Solutions Plans Services

by David Klemt David Klemt No Comments

Chip Klose and the ABCDEs of Marketing

Chip Klose and the ABCDEs of Marketing

by David Klemt

Letters A through E on switches

Marketing strategist and restaurant coach Chip Klose knows that if a process is too complex, people will abandon it. Hence, his ABCDEs of Marketing.

At this year’s Bar & Restaurant Expo, Klose broke down his marketing process. Additionally, he explained his overall approach to his marketing strategy.

First, Klose makes clear that there definitely is a right way to market. Put simply, the correct way involves taking a results-oriented approach. Ask yourself what what result you want from your marketing. Then, measure the results.

Second, people need to differentiate marketing from marketing tools. SEO, social media, table toppers, digital presence—these are tools. Marketing is how people answer a number of key questions:

  • What’s the product?
  • Who’s the product for?
  • How can marketing reach the target (audience)?

When people come to the understanding that marketing is maximizing the use of marketing tools, they’ll implement far more effective campaigns.

A: Audience

According to Klose, most people create a product—in the context of this article, a restaurant, bar, hotel, etc.—and then look for an audience.

That approach makes it difficult to implement an effective marketing strategy. Why? Because it makes it more difficult to understand a concept’s category. Without that understanding, it’s challenging to segment the population to identify targets.

Instead, Klose recommends looking at a market and asking the following question: Who has a problem? The standard advice entrepreneurs receive is to identify a problem, create a solution, scale, and retire on an island.

Well, owners and operators in the hospitality space are entrepreneurs. So, Klose suggests looking at what a given market is missing in terms of a restaurant, bar or hotel. So, find an audience’s pain point. This will not only help narrow down a concept, it will reveal if a solution already exists.

The next step, of course, is conducting a feasibility study, one of KRG Hospitality’s core specialties.

B: Brand

Assuming a restaurant or bar concept is the solution to an audience’s problem (proven by a feasibility study, of course), the next step is communication.

The restaurant idea isn’t “just” a restaurant, the bar not “just” a bar, the hotel concept not “just” a concept. No, the concept coming to their market is a solution to the audience’s problem.

When crafting a marketing plan, the messaging should articulate what problem the concept solves, and how.

C: Competition

There are essentially a few ways to view other businesses in this industry. They’re competition to stay ahead of; not competitors at all; or operations that serve to validate an operator’s solution to an audience’s problem.

Klose falls into the validation camp. Is another concept trying to solve the same problem? That means an operator bringing their own solution to the same market is onto something.

“Competition validates your idea and gives you a category,” says Klose.

Identifying a concept’s category provides an operator with the opportunity to stay top of mind, to dominate that category.

Once again, however, this also points to the need for a feasibility study. One or two solutions to the same problem is one thing. Entering a market saturated with the same solution is quite another. A feasibility study exposes saturation.

D: Differentiation

So, an operator has their solution to an audience’s problem. They’re confident in the completion of their due diligence. They have a brand identity and it communicates how it solves a problem. The competition is identified and the operator is moving forward with their solution confidently.

What’s next?

Whether an operator subscribes to the idea that they have no competitors, want to crush the competition, or use competitors as a yardstick, they need to differentiate themselves.

Klose says answering the questions below can help:

  • How does the concept stand out in a given market?
  • Once that concept is firmly in a category, how does it separate itself from the competition?
  • What are the stories only this operator and brand can tell?

That last question should be circled, underlined, italicized, and bolded. In fact, Klose asks his clients to write down 20 stories only they can tell. The results give them plenty of marketing material and helps them differentiate their concept from others.

E: Everything

Yes, “E” is for “everything.” As in, everything that makes a brand, a brand.

The brand’s logos and colors. The steps of service, food, drinks, even the pricing… These and more are the elements—the everything—that give a brand an identity.

Understanding and applying Klose’s ABCDEs will help operators maximize the use of marketing tools for their marketing strategies. There are a lot of solutions to problems out there, and even more noise. An effective marketing strategy cuts through that noise to put an operator’s specific solution directly in front of their target audience.

Be sure to follow Klose on Instagram and check out his Restaurant Strategy podcast. And make sure to check out KRG’s Bar Hacks podcast if you aren’t a regular listener already.

Image: Diomari Madulara on Unsplash

KRG Hospitality marketing support. Restaurant. Bar. Cafe. Lounge. Hotel. Resort.

by David Klemt David Klemt No Comments

How to Make a $3,500 Mint Julep

How to Make a $3,500 Mint Julep

by David Klemt

2023 Woodford Reserve Secretariat Julep cups

If you want to craft an incredible $3,500 Mint Julep, the first step is to acquire one of 50 Woodford Reserve gold Secretariat Julep cups.

Now, should $3,500 seem a “bit” exorbitant, you can also opt for one of 100 silver Julep cups for $1,000.

Cup in hand, simply fill it with crushed ice and pour a refreshing Mint Julep over it. Et voilà—a delicious $3,500 or $1,000 Mint Julep!

Okay, so you’re probably wondering what I’m on about. Am I really suggesting you craft thousand-dollar-plus cocktails? I mean…if you have guests who’ll pay that much, yes, I am.

In reality, however, I’m making you aware of this year’s Woodford Reserve $1,000 Mint Julep™ charity program. This program is a longstanding Kentucky Derby tradition.

For 2023, the $1,000 Mint Julep™ will benefit the Secretariat Foundation. That makes sense given that this year marks the 50th anniversary of Secretariat winning the Derby.

The foundation, the brainchild of Secretariat’s owner Penny Chenery, is a non-profit that focuses on equine-related industry subjects, such as:

  • veterinary research into lameness of the horse;
  • Thoroughbred retirement and rehabilitation facilities;
  • therapeutic equestrian programs; and
  • general funding for related established charitable programs.

Silver and Gold

As you probably can put together yourself, there are 150 Secretariat Mint Julep cups available. One hundred are silver, 50 are gold. Respectively, they cost $1,000 and $3,500.

In keeping with this year’s theme of celebrating Secretariat and supporting the horse’s namesake charity, each features blue and white checkered silks in sapphires. The 2023 Mint Julep cups are handmade by Louisville, Kentucky jewelers From the Vault.

Gold 2023 Woodford Reserve Secretariat Mint Julep cup

People who choose to support the charity via purchasing the gold cup will have their name engraved on the bottom of the cup. These cups also come with the autograph of Ron Turcotte, Secretariat’s jockey.

In addition to supporting the charity, people who buy one of the 150 cups will have access to the $1,000 Mint Julep Experience at Churchill Downs on Derby Day. (Which is also where and when buyers must pick up their cups.)

Secretariat’s Mint Julep

Alright, so let’s be more realistic. Only 150 people are going to splash out for the $1,000 or $3,500 Secretariat Mint Julep. And while supporting a charity like the Secretariat Foundation is a great thing to do, people are struggling.

So, below you’ll find the recipe for the Mint Julep variation that those attending the $1,000 Mint Julep Experience will be enjoying. It’s up to you if you want to offer it on Derby Day to raise funds for the Secretariat Foundation or a charity of your choosing. It’s perfectly reasonable to simply offer the refreshing cocktail as a Derby Day LTO.

Pack a Julep cup with crushed ice, making sure to make a dome over the lip of the cup. Add the whiskey and liqueur to a mixing glass and stir. Pour over the prepared cup. Garnish with one sprig of mint and one stalk of Virginia bluebells.

Should you prefer a more traditional build, express the oils of a mint leaf inside the cup. Add the bourbon, chestnut liqueur, and crushed ice. Garnish with more crushed ice, mint, and Virginia bluebells, then serve.

For our most bourbon-centric Bar Hacks podcast episodes—including episode 32 with Woodford Reserve—click here.

Images: Woodford Reserve

KRG Hospitality Beverage Programming

by David Klemt David Klemt No Comments

Tips from Tipps on Cool Concepts

Tips from Tipps on Building a Cool Concept

by David Klemt

Mama Foo Foo Daytona bar and DJ booth

It’s true that “cool” is difficult to define, and yet as amorphous a concept as it can be, we can create a vibe that embodies this important design element.

Some people have an innate understanding of the cool factor. They can identify it, design for it, and reënvision it. However, even these people can’t always explain the concept of cool.

To repurpose a 1964 quote from Supreme Court Justice Potter Stewart, “I know it when I see it.” And to paraphrase that quote, many of us would say we know cool “when we experience it.”

Of course, I can say that the KRG Hospitality team knows cool and develops concepts around this nebulous design concept. But that wouldn’t be cool; if you call yourself cool, you’re not. It’s sort of like attempting to give yourself a nickname—it really doesn’t work. (When I was in the Air Force I witnessed what happened to a few brand-new F16 trainees who tried to give themselves their own call signs. The results? Yikes.)

So, I’m going to share some helpful thoughts on this topic from a friend of KRG. Invictus Hospitality co-founder Michael Tipps, who knows cool when he sees and feels it.

Importantly, he and his team can also design for it. During the 2023 Bar & Restaurant Expo in Las Vegas last month he shared his thoughts on this idea to a room full of operators and leadership team members.

To check out some of the cool concepts in the Invictus portfolio, click here. For the KRG portfolio gallery, follow this link.

So, You Wanna be Cool…

With very few exceptions, most people thinking about their dream restaurant, bar, nightclub, eatertainment concept, or hotel don’t want to embody the antithesis of cool. In fact, I’ll say that if someone does design an “uncool” concept purposely and does so successfully…it’s cool.

That said, here’s an important tip from Tipps on developing a cool concept: “If your bar or restaurant is epic, it will attract everyone.”

However, that doesn’t mean designing a place that attempts to make everyone happy. Instead, consider your target guests—groups of people you and your partners understand, ideally—and design for them.

Nailing your concept for your target guests will attract other groups. And before anyone says that sounds exclusionary, that’s not what Tipps or I are talking about. Listen to anyone from the KRG Hospitality and Invictus Hospitality teams speak and you’ll know making any guest feel unwelcome isn’t on the menu.

Instead, consider the longstanding maxim that you can’t please everyone. Hence, focusing on your target guests to pull the threads tighter during the concept development phase.

Another key consideration when trying to nail down the cool factor? Differentiation.

“If everyone is used to westerns, somebody wants an action movie,” says Tipps. In other words, in a market saturated by one or two types of concepts, there are people dying for something different.

So, develop your dream concept with the idea of delivering something different in mind.

Stay True

This isn’t exactly a hot take but at the end of the day, all restaurants serve food. All bars serve drinks. All hotels provide rooms.

In other words, people can go anywhere for at least decent food and drink, and a place to sleep. The differentiators that separate one concept from another are atmosphere, service, and culture. Those three elements (along with some others) define a particular brand.

When your dream concept is on paper and you’re ready to make it a brick-and-mortar reality, you must stay true to it. Using the KRG process as an example, our feasibility studies, concept development plans, and business plans combine to form our Roadmap to Success. This is a document hundreds of pages long that’s unique to every client and concept we develop.

Once that deliverable is in your hand, it’s crucial to stay true. Or, as Tipps said at BRE in March, “You have to remain steadfast and focused on your concept.”

Designing a cool concept can take you into deep, uncharted waters in your chosen market. The voice telling you that you need to rein things in can be a loud, nagging one. Learn to quiet that panicking voice.

It can be daunting to design something you think is cool. You may find yourself asking if anyone would even want this “cool” concept.

Well, an unfiltered Tipps suggests you consider your answer to the following question: “How do people know what they want if they haven’t fucking seen it?”

You can build the next Applebee’s, Chili’s or Fridays. Or you can build something unique that will set a new standard in a market. And that’s not a knock against those chain restaurants—they’re successful on a global scale. But if you don’t want to operate an Applebee’s, don’t design yourself one.

A Word on Rebranding

Owing to the pandemic, rebrands are, as Tipps says, ubiquitous. This makes sense as people’s perspectives are different now. Operators want to finally own their dream concept. Hospitality pros want to work for brands that share their values, and that they deem cool. Guests want to spend their time and money on brands with which they identify (and also deem cool).

“If somebody wants to rebrand, they probably should,” says Tipps.

According to Tipps, however, “a lot of people confuse a rebrand with a refresh.”

While new tables, chairs, and paint can feel like a huge change, that’s not a rebrand. While many guests appreciate a refresh, their relationship with the brand won’t change much.

So, if an operator doesn’t plan and execute a full rebrand carefully, Tipps says they need to temper their expectations for a measurable ROI.

Now, if you have ideas for a cool rebrand, planning is crucial. But that doesn’t just relate to knowing what you want. You need to have your new name, logo, colors, menus, and exterior and interior designs finalized, of course.

However, you need to plan for how long the rebrand will take. As an example, when Invictus last rebranded their own concept they planned for two months to prepare to shut down for a full week.

Your cool new concept and its cool new details? They cost money and, as importantly, they take time. Which, as we all know in this business, costs even more money when you’re shut down.

Now’s the time to move forward with your cool new concept. Don’t hesitate to take your first step toward owning the cool brand you’ve always really wanted. While you’re dreaming about your concept, someone else in your market is making theirs a reality.

Image courtesy of Invictus Hospitality

KRG Hospitality brand identity. Restaurant. Bar. Cafe. Lounge, Hotel. Resort.

by David Klemt David Klemt No Comments

Real-world Menu Tips from Chef Brian Duffy

Real-world Menu Tips from Chef Brian Duffy

by David Klemt

Two restaurant food menus

I wonder what Chef Duffy would say about these menus.

Call it an education session, call it a workshop, one of the best features of the Bar & Restaurant Expo is live menu feedback from Chef Brian Duffy.

This is certainly true of the 2023 Bar & Restaurant Expo. During this year’s BRE (formerly Nightclub & Bar Show, or NCB), Chef Duffy delivered well over two hours of real-world menu feedback.

To be sure, BRE educational programming is always beneficial. Attendees who take the time to plan their schedules to include education sessions will take invaluable tips back to their businesses.

However, watching in real time as Chef Duffy critiques real menus submitted by BRE attendees provides insight that will impact the guest experience and success of a restaurant or bar immediately.

When delivering his feedback, Chef Duffy is unacquainted with the menus. He’s also unfiltered. So, attendees of these sessions are provided a window to Chef Duffy’s professional opinions, on the fly, in real time.

Take, for example, this blunt statement: “If you serve tilapia in your restaurant, you suck.” Before anyone has a conniption, Chef Duffy is referring to unethically farm-raised tilapia that’s often exposed to waste.

Technical Difficulties

Due to unforeseen AV issues, Chef Duffy was unable to use the large screens in the room to review menus for 30 to 40 minutes.

Now, some speakers may be shaken when encountering such a technical difficulty. This isn’t the case for Chef Duffy. In fact, all in attendance from the start of his session were lucky enough to gain insights beyond menu design because of the AV issues.

First, we all gained some insight into Chef Duffy’s consulting process. When engaged for restaurant consultation, he watches an evening service. Next day, he’s in your kitchen at 10:00 AM. What he sees in your kitchen tells him what’s happening throughout your restaurant. By the way, if he encounters just two spelling errors on your menu, he’s done reviewing it—you need a fresh start.

Second, inventory. Chef Duffy assumes you keep eleven percent of your overall revenue on your shelves. So, if you’re generating $100,000 each month, your shelves hold $11,000 of product. When reviewing your financial situation, take a look at that number for your own restaurant or bar.

Third, executive chefs versus head chefs. Chef Duffy has been on the ground for more than 100 restaurant openings. He has interviewed countless chefs. Have you ever wondered about the difference between an executive chef and a head chef? Knowledge of the financial aspects of running a kitchen. Without it, someone’s not an executive chef—they’re a head chef. Executive chefs know (and in theory can be trusted with) finances; head chefs make sure the brigade comes to work on time.

Finally, a cost-reduction tip. When you speak with your food reps, ask about DWO items: “Discontinued When Out.” You may be able to get your hands on some great items for a fraction of the cost.

Pricing Tips

Since we’ve looked at costs, let’s take a look at pricing.

Determining pricing effectively involves more than just gathering intel about your competitors. Chef Duffy suggests looking over your entire menu and committing to a pricing hard deck.

For example, “I’ll never sell a starter for less than X dollars.” You commit to never selling a entree for lower than a certain dollar amount. If you breach that promise, you may damage your brand.

Staying on the topic of pricing, don’t take advantage of your guests. Chef Duffy absolutely believes you can charge premium prices—but only for innovation. How do you know if a menu item is innovative? If it has made its way to major chain restaurants and you’re not doing anything unique to your version, it’s not innovative.

In terms of layout and design, don’t “lead” guests to prices with dots, dashes, or solid lines. Just place the price next to the item and move on.

Menu Tips

Another crucial tip that really should go without saying but, well, here we are, is proofreading. Want to make sure your menu is correct in a fun way? Throw a proofreading party. Invite ten of your VIP guests, gather your staff, invite some friends and family if you won’t be distracted, and ask for honest feedback.

Of course, you can elevate this event by serving new menu items tapas or family style to your VIPs. Brand-new restaurant yet to open? I suggest having the proofreading party with staff, friends, and family.

Keep in mind that menu real estate is valuable. Does a section of your menu come with identical accompaniments? Explain that at the top of section rather than including them in every. single. item. separately. Yes, this happened during the live 2023 BRE reads.

Chef Duffy would like you to stop putting specials on your menu. Again, menu real estate is valuable. If you can spare the room for specials, are they really special? Instead, your servers should know the day’s specials and share them with your guests from memory. And speaking of memory, upselling really only works if your staff knows the menu backward and forward.

Oh, and Chef Duffy would love it if you’d stop doing truffle fries if you’re not going to use premium products.

Your Menu Isn’t “Just” a Menu

Obviously, I haven’t shared every one of Chef Duffy’s menu tips. However, the above should serve as more than enough to motivate you to review your own menu with a critical eye.

In fact, you should be inspired to have your leadership, BoH, and FoH teams review the menu as well.

Yes, spelling matters. Yes, grammar matters. And yes, every detail and bit of menu real estate matters. This is because, simply put, your menu is more than a list of items for sale.

As Chef Duffy says, “Your menu is your calling card, it’s just that simple.” He would also tell you that the first place people encounter your business is online after a search. So, your website is your showcase. But your menu? That’s your billboard on the freeway, as he says.

QR codes may have been the standard from 2020 to 2022. We all know why. But for the most part, with the exception of QSRs and LSRs, people want to hold your menu. It’s a tactile experience and true engagement.

Menu design, like your website’s design, matters. Don’t believe me? I have two framed menus on my office wall, and they’re not from client concepts.

To learn more about Chef Brian Duffy, visit his website here. And, of course, make sure to follow him on Instagram. To listen to his Bar Hacks podcast episodes, click here for episode 33 and here for episode 53.

Image: Catherine Heath on Unsplash

KRG Hospitality Complete Bar Menu Audit

by David Klemt David Klemt No Comments

Meet Customers Where They Are, Part 3

Meet Customers Where They Are, Part 3

by David Klemt

Person using Google search on their phone

If you truly want to meet your potential guests where they are, you need to be as discoverable as possible via mobile and desktop search.

The first part of this series discusses meeting guests in secondary and tertiary markets. Also, part one recommends looking into suburbs and watching moving data.

Part two looks into the importance of being top of mind for delivery, takeout, and pickup guests. Even with the current demand for socializing and in-person dining, off-premise dining guests are an important focus.

Now, I’m talking about being discoverable. Why? Because of where your guests are: their phones and desktops.

So, there are few crucial elements of your business to consider. Your website still matters. You need to ensure you own your venue listings. It’s crucial that your location information is up to date across platforms.

And now, meeting guests where they are will mean improving the odds that AI chatbots recommend your business.

Another ongoing KRG Hospitality series is our conversations with ChatGPT, Bing AI, and now Google Bard. It’s our chat with the latter that shows the importance of improving online discoverability.

Below, interactions with Bard and ChatGPT about using AI chatbots to discover restaurants, bars, and hotels.

Google Bard

Can people use Bard to discover new restaurants and bars, and book reservations?

Yes, people can use Bard to discover new restaurants and bars, and book reservations. Bard can access and process information from the real world through Google Search and keep its response consistent with search results. For example, if you ask Bard to find a restaurant with good Italian food in San Francisco, it will look for restaurants that have been rated highly by other users and that serve Italian food. Bard can also book reservations for you through OpenTable.

What criteria do you use to determine the best restaurant, bar or hotel for someone asking you to conduct a search of such businesses?

I use a variety of criteria to determine the best restaurant, bar, or hotel for someone asking me to conduct a search of such businesses. Some of the most important criteria include:

  • Customer reviews. I look at customer reviews to see what other people have said about the restaurant, bar, or hotel. This helps me get a sense of the quality of the food, service, and atmosphere.
  • Location. I also consider the location of the restaurant, bar, or hotel. I want to make sure that it is in a convenient location for the person I am recommending it to.
  • Price. I consider the price of the restaurant, bar, or hotel. I want to make sure that it is within the person’s budget.
  • Type of food. If the person is looking for a specific type of food, I will try to find a restaurant that serves that type of food.
  • Atmosphere. I also consider the atmosphere of the restaurant, bar, or hotel. If the person is looking for a casual or formal atmosphere, I will try to find a restaurant that fits their needs.
  • Other criteria. I may also consider other criteria, such as the hours of operation, the availability of parking, and the presence of accessibility features.

By taking all of these factors into account, I can help the person I am recommending it to find the best restaurant, bar, or hotel for their needs.

How can a restaurant, bar or hotel improve the odds that Bard would recommend them to someone?

There are a few things that a restaurant, bar, or hotel can do to improve the odds that I would recommend them to someone:

  • Provide excellent customer service. This means being friendly, helpful, and responsive to customer needs. It also means going above and beyond to make sure that customers have a positive experience.
  • Offer a unique or memorable experience. This could be anything from a special menu item to a unique atmosphere. Something that makes the restaurant, bar, or hotel stand out from the competition.
  • Be consistent. This means providing the same level of service and quality every time a customer visits. It also means being reliable and keeping promises.
  • Be responsive to feedback. This means listening to what customers have to say and taking their feedback into account. It also means being willing to make changes based on feedback.

By following these tips, restaurants, bars, and hotels can increase the odds that I would recommend them to someone.

If I asked you to find me the best cocktail bar in Las Vegas for early evening drinks and the best upscale restaurant for a late dinner in Las Vegas, what would you recommend?

Sure, I can help you with that. Here are my recommendations for the best cocktail bar and upscale restaurant in Las Vegas for early evening drinks and late dinner, respectively:

  • Cocktail bar: The Vesper Bar at The Cosmopolitan of Las Vegas. This award-winning bar offers a wide variety of cocktails, as well as a beautiful atmosphere. It is perfect for a romantic evening or a night out with friends.
  • Upscale restaurant: The Dorsey at The Venetian Las Vegas. This Michelin-starred restaurant offers a tasting menu of modern American cuisine. The atmosphere is elegant and the service is top-notch. It is perfect for a special occasion or a romantic dinner.

I hope this helps!

ChatGPT

Can people use ChatGPT to discover new restaurants and bars, and book reservations?

As an AI language model, I can provide recommendations and information about restaurants and bars, but I cannot directly book reservations for you. However, I can suggest several online platforms that allow you to book reservations at restaurants and bars, such as OpenTable, Resy, and Yelp Reservations. These platforms allow you to search for restaurants and bars based on various criteria such as location, cuisine, price range, and availability, and make reservations online.

If you’re looking for restaurant recommendations, I can provide suggestions based on your preferences such as cuisine, location, price range, and other factors. Additionally, I can provide you with information such as hours of operation, contact information, and customer reviews. Please let me know if there’s anything specific you’re looking for and I’ll do my best to assist you!

How do you help ChatGPT users find the best restaurants, bars, and hotels?

As an AI language model, I can help ChatGPT users find the best restaurants, bars, and hotels by using natural language processing and machine learning algorithms to understand the user’s preferences and provide personalized recommendations.

To find the best restaurants and bars, I can consider various factors such as cuisine, location, price range, ambiance, and customer reviews. I can also take into account any dietary restrictions or preferences the user may have, such as vegan or gluten-free options.

To find the best hotels, I can consider factors such as location, price range, amenities, and customer reviews. I can also help users find hotels based on their preferred style of accommodation, such as luxury, boutique, or budget.

In addition to recommendations, I can also provide users with useful information such as hours of operation, contact information, and directions. I can also assist with booking reservations or finding deals and discounts if available.

How can a restaurant, bar or hotel improve the odds that ChatGPT would recommend them to someone?

There are several ways a restaurant, bar, or hotel can improve the odds of being recommended by ChatGPT to someone:

  1. Positive Customer Reviews: Positive customer reviews are one of the most critical factors in ChatGPT’s recommendation algorithm. Encourage your customers to leave positive reviews on platforms such as Google, Yelp, or Tripadvisor, as these can greatly improve your chances of being recommended.
  2. High-Quality Photos: High-quality photos of your establishment, food, and drinks can make a big difference in attracting potential customers. Ensure that your website and social media pages have high-quality images that showcase the ambiance, menu, and overall experience of your establishment.
  3. Accurate and Up-to-Date Information: Ensure that your establishment’s information is accurate and up-to-date on various platforms. This includes your address, phone number, hours of operation, and menu.
  4. Responding to Customer Queries: Respond promptly to customer queries or complaints on various platforms, including social media. This shows that you value customer feedback and are willing to make improvements to provide an excellent experience.

Offering Unique Experiences: Offering unique experiences or features, such as signature cocktails or locally sourced ingredients, can help your establishment stand out and increase the likelihood of being recommended by ChatGPT.

If I asked you to find me the best cocktail bar in Las Vegas for early evening drinks and the best upscale restaurant for a late dinner in Las Vegas, what would you recommend?

For the best cocktail bar in Las Vegas for early evening drinks, I would recommend The Chandelier at The Cosmopolitan of Las Vegas. It is a three-story bar with a stunning chandelier centerpiece, offering a wide range of signature cocktails and a luxurious ambiance. It’s perfect for early evening drinks with friends or colleagues.

For the best upscale restaurant for a late dinner in Las Vegas, I would recommend Joel Robuchon at MGM Grand. It is a Michelin-starred restaurant with an elegant dining room and exceptional French cuisine. They offer a variety of tasting menus, including a vegetarian option, and a vast wine selection. The service is impeccable, and the atmosphere is perfect for a romantic dinner or a special occasion.

Takeaways

First, the bar and restaurant recommendations. As a Las Vegas local for creeping up on two decades, they’re solid. I think a first-timer would find them helpful and be happy with those selections.

More importantly, however, is what each bot reveals about discoverability. Operators need to make sure they’re responding to reviews quickly and properly; that they’re listings are under their control and the information is accurate; and that they’re courting reviews in the 4.0- to 4.7- star range. (More on that rating range in the near future.)

Then there are the other important considerations, such as pricing, cuisine, and atmosphere. When taking control of listings, operators must categorize their venues accurately.

Technology innovations often present a paradox. Ostensibly, technology makes lives easier. However, many operators likely find that much of tech makes things more difficult.

Leveraging tech often requires more work on the operator side—innovations often make things simpler for our guests. Of course, tech can make things easier for operators, it just takes a lot of work initially.

As people rush to develop AI—some say too quickly—it’s going to be top of mind for people searching for restaurants, bars, nightclubs, eatertainment venues, hotels, etc. Operators are going to have to meet their guests where they are: search engines and chatbots.

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Yes, We Finally Spoke with Google Bard

Yes, We Finally Spoke with Google Bard

by David Klemt

Person using Google Bard AI on their phone

Come on, now—you must know that after speaking with ChatGPT and Bing AI and sharing those chats our conversation with Google Bard is next.

Perhaps because its launch is more recent, Bard is slower to answer than ChatGPT. I can’t know for certain but it’s reasonable to assume eager users are overwhelming Bard.

As far as the user experience, I like that Google includes a disclaimer about interacting with Bard. Unsurprisingly, Google warns that Bard can provide inaccurate, misleading, or false information. Interestingly, the company also recommends people “Google it” if they’re unsure about the answers Bard offers.

Below you’ll find the same questions I asked of ChatGPT in January and Bing AI in March. Not surprisingly, Bard “believes” robots and AI are more beneficial than detrimental for our industry.

Please write 400 to 500 words about robots and artificial intelligence working in restaurants, from the perspective of robots and AI.

As a robot working in a restaurant, I have a unique perspective on the challenges and opportunities that automation presents. On the one hand, it can be difficult to compete with humans who are more flexible and creative. On the other hand, automation can help restaurants to reduce costs and improve efficiency.

One of the biggest challenges for robots in restaurants is the need to be able to adapt to changing circumstances. For example, if a customer makes a special request, a robot needs to be able to adjust its plans accordingly. This can be difficult, as robots are often programmed to follow a set of instructions.

Another challenge is the need to be able to interact with customers in a natural and engaging way. Customers expect robots to be polite and helpful, and they should be able to answer questions and provide assistance. This can be difficult, as robots are often not as good at understanding human language as humans are.

Despite these challenges, there are also many opportunities for robots in restaurants. Automation can help restaurants to reduce costs by eliminating the need for human employees. This can be especially beneficial in areas with high labor costs. Automation can also help restaurants to improve efficiency by reducing the time it takes to prepare and serve food. This can lead to shorter wait times for customers and higher profits for restaurants.

In addition, automation can help restaurants to provide a more consistent and reliable experience for customers. Robots are not subject to the same fatigue and errors as humans, and they can work 24 hours a day without a break. This can lead to better food quality and faster service.

Overall, I believe that the opportunities for robots in restaurants outweigh the challenges. Automation can help restaurants to reduce costs, improve efficiency, and provide a better experience for customers. As the technology continues to develop, I believe that robots will play an increasingly important role in the restaurant industry.

From the perspective of artificial intelligence, the use of robots in restaurants is a fascinating development. AI has the potential to revolutionize the restaurant industry, and it is already being used to automate tasks such as food preparation, order taking, and delivery.

AI can also be used to personalize the restaurant experience for customers. For example, AI can be used to recommend dishes that customers are likely to enjoy based on their past orders. AI can also be used to create virtual assistants that can answer customer questions and provide support.

The use of AI in restaurants is still in its early stages, but it has the potential to revolutionize the industry. AI can help restaurants to improve efficiency, reduce costs, and provide a better experience for customers.

Can you explain to me, in 300 to 400 words, what the ethical implications are for restaurant, bar, and hotel operators using artificial intelligence and robots to complete tasks?

Sure. Here are some of the ethical implications for restaurant, bar, and hotel operators using artificial intelligence and robots to complete tasks:

  • Job displacement: The use of artificial intelligence and robots could lead to job displacement, as some tasks that are currently done by humans could be done by machines. This could lead to increased unemployment and reduced income for workers.
  • Bias: Artificial intelligence and robots could be biased, as they are often trained on data that is collected from human sources. This could lead to unfair treatment of customers, employees, and other stakeholders.
  • Privacy and security: The use of artificial intelligence and robots could raise concerns about privacy and security, as these systems could collect and store data about customers and employees. This data could be used to track customers’ movements or to monitor employees’ activities.
  • Safety: The use of artificial intelligence and robots could raise concerns about safety, as these systems could malfunction or make mistakes. This could lead to injuries or even death.
  • Customer experience: The use of artificial intelligence and robots could have a negative impact on the customer experience, as some customers may find it unsettling or uncomfortable to interact with machines. Additionally, customers may feel that the use of robots and artificial intelligence detracts from the human element of the service experience.

It is important for restaurant, bar, and hotel operators to consider these ethical implications before implementing artificial intelligence and robots in their businesses. By carefully considering these issues, operators can help to ensure that the use of these technologies is done in a responsible and ethical manner.

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. This is because humans are inherently biased, and this bias can be reflected in the way that we design and engineer systems.

One way that bias can be introduced is through the data that is used to train artificial intelligence systems. If the data is not representative of the population that the system will be interacting with, then the system may be biased. For example, if an artificial intelligence system is trained on data from primarily white and wealthy customers, it may have difficulty understanding and serving customers from other backgrounds.

Another way that bias can be introduced is through the algorithms that are used to control artificial intelligence systems. If the algorithms are not designed to be fair, then the system may be biased. For example, if an algorithm is designed to favor customers who spend more money, then customers who spend less money may be treated unfairly.

It is important for human designers and engineers to be aware of the risks of bias and to take steps to mitigate these risks. This can be done by using a variety of methods, such as using diverse data sets, designing fair algorithms, and testing systems for bias. By taking these steps, we can help to ensure that artificial intelligence and robots are used in a fair and ethical manner.

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5 Books to Read this Month: April 2023

5 Books to Read this Month: April 2023

by David Klemt

Flipping through an open book

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

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

Let’s jump in!

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

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

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

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

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

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

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

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

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

Bar Hacks: Developing The Fundamentals for an Epic Bar

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

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

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

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

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

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KRG Hospitality. Consultant. Consulting. Culinary. Bar. Hotel. Mixology. Technology.

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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.

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WSWA Presents Cannabis Regulation Plan

WSWA Presents Cannabis Regulation Plan to Congress

by David Klemt

Drink with cannabis leaf artwork on top

The Wine & Spirits Wholesalers of America are making their support for federal adult-use cannabis legalization and regulation known.

In summary, the WSWA is urging Congress to treat cannabis in a similar manner to alcohol. Impressively, the organization is doing more than just imploring members of Congress to legalize and regulate adult-use cannabis.

Rather, the WSWA is showing their commitment by doing much heavy lifting. Click here and you’ll find the WSWA Principles for Comprehensive Federal Legalization and Oversight of the Adultuse Cannabis Supply Chain. This is a comprehensive document that serves as a framework for the federal government to take action.

“The time has come for Congress to legalize and regulate adult-use cannabis at the federal level,” says Francis Creighton, CEO and president of the WSWA. “The success of our alcohol regulatory system offers a proven model for cannabis regulation, one that will promote public health and safety as well as a fair and competitive marketplace.”

Why Does the WSWA Care About Cannabis?

It’s clear when reading the WSWA letter to Congress and the organization’s framework document that they anticipate this question.

In a letter to House Speaker Kevin McCarthy, Majority Leader Charles Schumer, Minority Leader Hakeem Jeffries, and Minority Leader Mitch McConnell, the WSWA lays out precisely why they’re addressing federal legalization and regulation:

I am writing to you today to announce that we at the Wine & Spirits Wholesalers of America (WSWA) believe the time has come for Congress to legalize and regulate adultuse cannabis at the federal level.

We have reached this position because the current conflict between state and federal law is not only causing adverse consequences for consumers and nonconsumers of cannabis but will also have longterm public health and safety costs that are too great to ignore. Twentyone states and the District of Columbia representing roughly half the U.S. population have already legalized adultuse cannabis, yet the markets in these states remain illegal under federal legislation. This conflict undermines the rule of law and weakens public health and safety, while leaving states unsupported in their efforts to create safe, regulated markets and eliminate dangerous blackmarket activity.”

What Does the WSWA Want?

Essentially, the WSWA wants the US government to apply the same principles of federal beverage alcohol regulation to adult-use cannabis:

  • Award permits to cannabis producers, testing facilities, importers, and distributors;
  • approve and regulate cannabis products;
  • collect federal excise tax efficiently and effectively; and
  • implement effective public safety measures.

To that last point, the WSWA calls for the development of “a reliable standard for all types of impaired driving, similar to blood alcohol concentration.” In other words, a BAC equivalency for cannabis.

Of course, I don’t think I’m coming to any groundbreaking conclusion in assuming the organization foresees financial benefits. Alcohol importers and distributors, for example, know how to maneuver through the red tape of federal regulation already. And they’re well positioned to apply for permits, should they be allowed to handle both alcohol and cannabis.

This is an interesting development, one that many will support. The WSWA makes a compelling point. Additionally, providing framework is a wise strategic move.

However, we’re in highly partisan, politically charged times. There’s no reason yet to assume Congress will take up federal legalization and regulation any time soon.

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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.

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

by David Klemt David Klemt No Comments

IRS Proposes New Tip Reporting Program

IRS Proposes New Tip Reporting Program

by David Klemt

"Tax Man" graffiti on red brick wall

The Internal Revenue Service is proposing a voluntary tip reporting program which they’re calling the Service Industry Tip Compliance Agreement (SITCA).

Making the announcement via Notice 2023-13 back in February, the IRS is giving people the chance to comment on the SITCA proposal.

Per the IRS, their intention is to “take advantage of advancements” in POS, scheduling, and e-payment technology. How do they intend to leverage all this tech? In short, the IRS is proposing that POS systems will have to process payments and tips in the same way.

To clarify further, if someone pays by credit card, they’ll have to tip via credit card. If a guest pays in cash, they’ll have to tip in cash. So, should SITCA become the industry standard, the days of paying with a credit card but leaving a cash tip will be over.

However, in my eyes, this isn’t a simple “modernization” of IRS processes.

If the IRS is proposing a new for businesses to process tips, they’re looking to catch non-compliant businesses and tipped workers. A likely culprit or contributing factor to this IRS scrutiny? The retail venues now asking for or suggesting tips when customers check out.

So, it would be wise to reiterate to your team the need to report tips accurately. And remember, business owners need to ensure they’re complying with tip reporting as well. Getting flagged for inaccurate reporting is a great way to catch an audit, penalties, and a huge bill.

Nuts and Bolts

According to the IRS, SITCA will reduce taxpayer burdens. And, of course, the service claims the program will also reduce their own administrative costs.

Additional “features,” per the IRS website, are as follows:

  • The monitoring of employer compliance based on actual annual tip revenue and charge tip data from their point-of-sale system. There will be allowance for adjustments in tipping practices from year to year.
  • Participating employers demonstrate compliance with the program requirements by submitting an annual report after the close of the calendar year. This reduces the need for compliance reviews by the IRS.
  • Employers participating in SITCA will receive protection from liability under the rules that define tips as part of an employee’s pay for calendar years in which they remain compliant with program requirements.
  • Participating employers have flexibility to implement employee tip reporting policies best suited for their employees and business model. Policies must be in accordance with the section of the tax law that requires employees to report tips to their employers.

Requests for Comment

Interestingly, Notice 2023-13 contains a request for comments in four specific areas:

  • By what means a technology-based time and attendance system may be used by tipped employees to report tips. This includes tips in cash and other forms of tipping made through electronic payments methods (other than a credit card), regardless of whether the tips are received directly from customers or through tip sharing arrangements.
  • How tip sharing practices vary across service industries and how the SITCA program can support employer participation while accommodating potential differences in Federal, state, and local labor and employment law requirements.
  • By what methods employers of large food or beverage establishments participating in the SITCA program may meet their filing and reporting obligations under section 6053(c) and also satisfy the SITCA program requirements for compliance, while minimizing the administrative burdens on taxpayers and the IRS.

Those interested in providing such feedback have until May 7, 2023 to do so. The IRS has set up two ways to provide comments on Notice 2023-13:

  • Mail: CC:PA:LPD:PR (Notice 2023-13), Room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, D.C. 20044; or
  • Electronic: Visit the Federal eRulemaking Portal at www.regulations.gov (indicate IRS and Notice 2023-13) and follow the instructions for comment submission.

Personally, I have more questions than comments. Bear in mind, the IRS will stop accepting comments, feedback, and questions on May 7, 2023.

Image: Jon Tyson on Unsplash

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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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Slice Releases 2023 “Slice of the Union”

Indie Pizzeria App Slice Releases 2023 Report

by David Klemt

Wood-fired pizza on paddle

The annual Slice of the Union report from independent pizzeria ordering app Slice offers excellent insight into the indie pizza space.

Per the company’s website, Slice serves all 50 states and works with 19,000 pizzerias. For context, that’s a network of pizzerias more than double in size in comparison to Domino’s.

In my opinion, then, the company is well-positioned to deliver data regarding the indie pizzeria space.

Additionally, Slice says they save independent operators money. To date, Slice claims partners have saved more than $265 million in fees that would have gone to third-party delivery services.

In part, that’s due to a 2021 innovation by the company. At the International Pizza Expo in Las Vegas in August of 2021, Slice unveiled fixed-price, tiered packages for partners.

 

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A post shared by Slice (@slice)

Essentially, Slice intends to help local, indie pizzerias boost their reach, discoverability, and revenue. The company’s mission is “empowering independent pizzerias.” In part, Slice accomplishes their mission to “Keep Local Thriving” by offering indie pizzeria operators access to technology and services that rival the big pizza chains.

Below you’ll find some of the insights from the 2023 Slice of the Union that most stand out to me. To review the report in its entirety yourself, please click here. Not only is it an informative read, it’s actually fun.

Ordering Occasion

Kicking things off, ordering occasions. As all operators should know, many guests seek out particular cuisine, drinks, or venues dependent upon their dining or drinking occasion.

In the 2023 Slice of the Union, Slice takes a look at a couple occasions that motivate people to order pizza: sports and awards shows.

Now, it’s no surprise that people order pizza to enjoy while watching sports. So, since that’s common knowledge, Slice goes deeper and identifies the top sports leagues:

  1. Football
  2. Basketball
  3. Baseball
  4. Hockey

No mention of my two favorites, F1 and MotoGP, but at least hockey makes the cut. (My Vegas side says, “Go Knights!” but my born-in-Chicago side says, “Go ‘Hawks!”)

When we look at awards shows, the top spot may be somewhat of a surprise:

  1. People’s Choice Awards
  2. Tony Awards
  3. Emmy Awards
  4. Golden Globes
  5. The Oscars

Interestingly, the Grammys only manage an honorable mention. And there’s something poetic about pizza being the “people’s choice” for the People’s Choice.

Another bit of compelling data. Slice says that most people buckle and give up on their New Year’s resolution to keep away from pizza on January 13.

What’s in a Name?

There are certainly some creative pizzeria names out there.

However, Slice identifies not just some of the most common names but how many pizzerias use them:

  1. Joe: 206 pizzerias
  2. Sal: 206 pizzerias
  3. Tony: 114 pizzerias
  4. Johnny: 56 pizzerias
  5. Ray: 43 pizzerias
  6. Nino: 21 pizzerias

Flavors on the Rise

Wondering what the top topping is? What Slice sees as the pizza trends to watch?

Well, Slice has the answers to those questions (and more) in their annual report.

Pepperoni, as Slice says, “is a classic.” So, it wouldn’t provide much insight to just say, “Hey, pepperoni is popular.” Operators who offer pepperoni—and why wouldn’t they?—are already aware of its ubiquity.

Instead, Slice identifies the topping that’s showing the most growth. Per Slice, mushrooms has shown up on 8.9 percent more pizzas. Also, ranch dressing showed up on 9.7 percent more pizza orders in 2022.

Now, which trends may gain more significant footholds in the pizza space this year? Slice identifies two in their report:

  • Roman-style pizza
  • Pickle pizza

A Roman-style pizza is thin crust and pushes the toppings out all the way to the edges. A pickle pizza features—shocker—pickles heavily. According to Slice, this style of pizza normally includes a garlic sauce and mozzarella cheese.

Again, you’ll want to check this report out for yourself as there’s much more useful information. Click here to read it now.

Image: Dylan Sauerwein on Unsplash

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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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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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The Incredible Rise of Luxury Whiskeys

There are Luxury Whiskeys. Then There are These…

by David Klemt

Closeup image of whiskey in a glass

Some investors look at whiskey as a luxury good worthy of parking their dollars, with some outperforming gold and the S&P 500 Index.

In fact, super- and ultra-premium whiskey has at times outperformed gold over the past decade. According to some reports, investments in whiskey casks performed better than gold, the S&P 500, and Bitcoin just a few years ago.

Of course, the hospitality and spirits worlds have long been reporting increased interest in luxury whiskey. Really, consumers have shown interest in premium, super-premium, and ultra-premium spirits across several categories.

In other words, it appears that the “drink better” movement continues to accelerate.

This is, of course, great news for operators. Premium and above spirits command higher prices on-premise, boosting revenue.

But there’s luxury, and then there’s luxury. There are ultra-premium spirits, and there are truly exclusive bottles. I suppose hyper-premium describes these incredibly rare expressions. After all, there are hypercars and hyperyachts, and the owners of such vehicles are the people who can afford hyper-premium spirits.

Two examples of such spirits made headlines recently, and wow—their prices are eyewatering.

The Highland Park 54 Year Old

Interested in a taste of the late ’60s? This Scotch was laid down back in 1968 by Highland Park.

And back in 2008, Highland Park master whisky maker Gordon Motion combined four refill butts and six refill hogsheads. That was also the year that Gordon Motion was named master whisky for the distillery. It seems Motion wasted no time in creating an awe-inspiring whisky for Highland Park.

Highland Park’s 54-year-old whisky is stunning, and just 225 bottles are available. This is, of course, a nod to the distillery’s big 2023 anniversary celebration. Highland Park was founded in 1798; 2023 is their 225-year anniversary.

So, what’s a 700ml, 46.9% ABV bottle of Highland Park 54 Year Old going for? Each one carries a price tag of £39,000, or nearly $47,000 USD. There is, of course, no telling what each bottle will be valued at in the future (or if they’ll appreciate, so be careful, investors).

As far as flavor profile, there are, of course, woody and peaty notes. However, there’s also camphor, pistachio, kiwi, and lychee. However, I’m sure whatever I write here will never do justice to experiencing a dram of 54 Year Old.

Gordon & MacPhail Generations 80-Years-Old

For once, I’m nearly speechless. This is the world’s oldest Scotch. And, until we learn otherwise, world’s oldest whisky.

Of particular note, this is Glenlivet liquid rested by father-and-son duo John and George Urquhart in a Gordon & MacPhail cask.

The liquid was laid down on February 3, 1940 and bottled on February 5, 2020. There are 250 decanters available, and these vessels are as stunning as the whisky they contain.

Architect and designer Sir David Adjaye OBE (knighted in 2017) designed the decanter and oak case. Glencairn Crystal Studio stepped up for production of the decanter. Wardour Workshops crafted the case from sustainably sourced oak.

As I stated above, Highland Park’s 54-year-old Scotch costs nearly $50,000. So, what does this Gordon & MachPhail 80-Years-Old Scotch cost?

Well, we won’t really know until October 7 of this year. That’s the date that Sotheby’s will auction off Generations 80-Years-Old Decanter #1.

The world-renowned luxury marketplace is estimating this lot will go for between $120,000 and $255,000. Although, that price could be driven higher should the auction heat up.

Some of the tasting notes from Charlie MacLean MBE include: almond oil, scented hand-soap, sandalwood, dates, salted plums, figs, dry Oloroso Sherry, and a menthol finish.

The Takeaway

I’m not suggesting that operators drop tens of thousands of dollars on hyper-premium bottles. While doing so could translate to hefty margins per ounce sold from such bottles, it’s not realistic for most restaurants and bars.

However, it’s clear that consumers are showing interest not only in learning about luxury spirits but also an inclination to splash out for a taste.

Are 50- to 80-year-old spirits extreme examples of luxury? Absolutely. Do they point to interest in more affordable examples of luxury? Again, absolutely.

Decades-old spirits are rare but not, if this makes sense, uncommon. While the two bottles above are generating headlines, there are others out in the world garnering interest. Examples are Morthlach 70-Year-Old and 75-Year-Old.

Moreover, these rare expressions generate interest in the distilleries that produced them. So, while the average guest may not be able shell out for a 50-year-old single malt, they could be persuaded to try one from that same distillery that’s half that age.

This is, of course, where storytelling comes into the guest experience. An educated, interested, and engaging front-of-house team can be a sales powerhouse.

Image: Anthony Torres on Unsplash

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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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