Bar operations

An interior of an upscale neighborhood restaurant, with the primary focus on the large center bar
by David Klemt David Klemt No Comments

Growth Isn’t the Reward, It’s the Responsibility

Let’s be honest, the hospitality industry still talks about growth with far too much romance and not nearly enough discipline.

In 2025, a survey of more than 300 multi-unit operators found brands were planning to open 20 percent more locations despite economic headwinds. Additionally, the National Restaurant Association’s 2026 outlook pointed to continued investment in growth and technology even under ongoing cost pressure.

At the same time, our friends at Black Box Intelligence have warned that closures are still part of the equation, particularly for concepts that expanded without the operational strength to absorb volatility.

I feel a duty to address and interpret this tension.

Scaling isn’t about opening another location because the dining room is full, the group chat is excited, or a landlord brought you a deal. Scaling means duplicating a business model, a guest experience, and a profit engine without diluting the brand or increasing dependency on the founder.

by Doug Radkey

An interior of an upscale neighborhood restaurant, with the primary focus on the large center bar

Think this looks ready to scale? The answer is much deeper than you may think.

Whether you’re preparing to start down the path to opening your concept or are already operating a venue or venues, you need to understand one key point clearly: You do not scale because you’re busy, you scale when you’re stable.

The Growth Trap Operators Keep Falling Into

There is a story I have seen too many times, and perhaps you have as well.

A founder opens their first location. The concept gets traction: social media looks good, and Fridays are packed. There’s a line at brunch. Guests start asking when the second location is coming. Some people start referring to this single location as a brand. Investors start circling, and the founder begins to believe growth is the next logical step. So, they open their second location.

The first store slips because leadership attention is divided. The second store opens with a team that knows the idea, but not the standard. Service becomes inconsistent, costs drift, and training becomes informal. The founder starts working more, not less. The brand has expanded, but the business has not scaled.

This is a mistake that continues to happen, time and time again. Operators confuse popularity with repeatability, revenue with readiness, and ambition with infrastructure.

Let’s remember that a second location isn’t scale, it’s a test.

Scaling is not Expansion. It is Repetition Without Degradation.

This is the first principle serious operators need to lock in: Expansion means you opened another box; scaling means the box performs without diluting what made the first one work.

That means five things must remain true as you grow:

  1. The guest experience stays recognizable.
  2. The culture transfers.
  3. The economics remain disciplined.
  4. The systems hold.
  5. The founder becomes less essential, not more.

If one location only works because the owner is in the building, that’s not a scalable model; it’s a founder-carried operation.

That distinction matters for both startups and existing venues alike.

For Startups

Startups love to talk about growth early because growth feels validating and makes the concept feel real. I can’t count how many times I’ve been on a discovery call where the prospect talks about opening multiple locations before there’s even one built.

For a startup, scale should not even be in the conversation until the business has moved beyond survival and into predictable performance, or what we like to refer to as “stabilization.”

That means:

  • the model is validated.
  • the guest is clearly defined.
  • the programming and labor model are in sync.
  • the opening and operational playbooks exist.
  • the business is not being held together by adrenaline.

For Existing Venues

Operators who are already operating venues can fall into a different trap: they assume that because the business has been open for some time, maybe even years, the model is automatically mature enough to scale.

Let me put this simply: It is not. Longevity does not equal readiness.

A ten-year-old restaurant can still be founder-dependent, undisciplined, and financially fragile. A boutique hotel can have strong occupancy and still be too inconsistent operationally to replicate.

Age isn’t an indicator that a concept is ready to scale; stability is.

The Precondition: Stabilization Before Scaling

This is where too many operators get impatient. They want the growth story before they have the control story.

But stabilization comes first, always. A stabilized business isn’t perfect, but it is predictable.

Operators who operate a stable business know:

  • what drives profit.
  • what standards matter most.
  • what labor model is sustainable.
  • what guest experience can be repeated.
  • what systems protect consistency.
  • what happens when sales soften or costs spike.

Stabilization is where the business stops behaving like a hustle and starts behaving like an operating system. Without that, scale will expose every weakness.

If your labor model is emotional, scaling magnifies it. If your menu is bloated, scaling magnifies it. If your communication is weak, scaling magnifies it. And if your leadership bench is thin, scaling magnifies it.

Growth doesn’t fix fragility; it multiplies it.

The Mindset Required Before You Scale

Most founders and operators need the hardest mindset reset right here. They need to understand that scaling isn’t a reward for effort, it’s a responsibility to the model.

Before scaling, leadership needs to answer one question honestly: “Why do we want to grow?”

Do not give the polished answer; answer with the real one. Be honest.

Is it ego? Is it fear of missing the market? Is it investor pressure? Is it the belief that more locations will solve financial stress? Is it the desire to turn a founder-led business into an actual asset?

Scaling for the wrong reason usually creates the wrong outcome.

The right mindset before scaling looks like this:

  1. Growth must serve the model, not rescue it.

A weak first location does not become healthy because you add a second one.

  1. The goal is duplication without dilution.

If the second, fifth, or tenth location changes the guest experience, the culture, or the economics in the wrong direction, the growth is not strategic.

  1. The founder must become less central.

If every key decision still runs through the owner, the brand is not ready.

  1. Clarity matters more than speed.

The market will always create pressure to move faster. Serious operators know disciplined growth compounds more than rushed growth.

  1. Scale is a long-term value decision.

This isn’t just about opening more units; it’s about creating a more valuable company.

The Signs That You’re Ready

This is the part many operators want to skip to: the checklist, the green lights.

And I’m sharing them with you below. But know this: You must understand that the green go-ahead lights sit on top of everything noted above.

  1. Your numbers are predictable.

Not just revenue: contribution margin, prime cost, labor productivity, cash flow timing, and break-even thresholds.

  1. The business performs without your physical presence.

If you can’t leave for two weeks without panic, you are not ready.

  1. Systems are documented.

Not in your head, and not in your managers’ memories. In actual playbooks, SOPs, training sequences, and leadership rhythms.

  1. Leadership depth exists.

You have more than strong employees. You have future operators, future GMs, and future department heads.

  1. Guest experience is repeatable.

The guest experience isn’t amazing only when the founder is there. It’s repeatable at standard, by system.

  1. Culture is clear.

The values are visible in behavior, not just language. Standards are reinforced consistently, even under pressure.

The Takeaway Any Serious Operators Should Save

The industry still loves the story of growth.

Bigger. More locations. New markets. New flags. New addresses.

But the operators who win the next decade will be the ones who earn it. They will:

  • stabilize before they expand.
  • know their numbers before they open another door.
  • build leaders before they sign another lease.
  • document systems before they copy the concept.
  • understand that growth is not proof. Performance is.

So when are you ready to scale?

Not when the room is full. Not when the next landlord calls. Not when investors get excited. Not when your ego wants the headline.

You are ready to scale when the business is stable enough to duplicate without depending on your exhaustion.

That’s the standard.

And if you’re not there yet, that isn’t failure; it’s clarity. Because the smartest move in hospitality is not scaling early, it’s scaling when you’re truly and honestly ready.

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Interior of a light, relaxing restaurant with a focus on the modern, sophisticated light fixtures and open window to the sidewalk and street.
by David Klemt David Klemt No Comments

Emerging Brands are Compound Startups

Why the smartest one to 15-unit hospitality brands are not “small chains” yet. They are startups learning how to repeat themselves without breaking.

Growth in this industry has entered a new era. From recent conference discussions, what we are seeing and hearing is that bar, restaurant, and even boutique hotel operators still plan to open more locations despite cost pressure.

However, the conversation has shifted from raw expansion to sustainable growth, stronger unit economics, and operational readiness.

At the same time, industry data continues to show that closures remain part of the landscape, particularly for brands that grew faster than their model matured. Black Box Intelligence has warned that unit closures are likely to continue, even as some operators keep developing more locations.

That’s why this thought matters: emerging brands are just compound startups.

A second, fifth, or 15th location does not magically make a brand “corporate.” It simply means the founder is attempting to repeat a business model under more pressure, with more people, in more places.

by Doug Radkey

Interior of a light, relaxing restaurant with a focus on the modern, sophisticated light fixtures and open window to the sidewalk and street.

This article breaks down what “compound startup” means; why so many operators misunderstand scale; and what serious bar, restaurant, and boutique hotel entrepreneurs must build before growth becomes an asset instead of a liability.

The Growth Illusion: Why More Locations Can Hide a Weaker Business

In hospitality, growth is seductive:

  • A packed dining room turns into a second site conversation.
  • A strong summer in one market becomes an excuse to test another.
  • Friends, investors, landlords, and even guests start asking the same question: “When are you opening the next one?”

That question flatters the ego; it does not validate the model.

Too many operators assume that one good location means they have a scalable brand. What they often have is a founder-carried success story.

The owner still approves too many decisions. The best managers still rely on the founder’s instinct. The menu still works because one chef protects it. The guest experience still lands because the founder is in the room.

That is not scale. That is heroics, and heroics do not compound.

A Story Every Growing Operator Will Recognize

A founder opens a strong first location. Maybe it is a cocktail bar, maybe a neighborhood restaurant. Maybe it is a small lifestyle hotel with food and beverage anchors.

The first unit performs well enough. Reviews are good and revenue looks strong. Staff is stretched, but the energy feels high. There is momentum.

Then the founder opens a second location. Almost immediately, the cracks widen.

The first unit loses focus because the founder is no longer present every day. The second unit opens with a team that knows the standards in theory but not in rhythm.

From there, costs and inventory variance increase, culture starts to split, and guests notice inconsistency. Managers become messengers instead of coaches and leaders. The founder begins working more, not less.

This is the point where many operators say “Growth is hard.”

But here’s the thing: growth is not the issue. Unrepeatable success is the issue.

An emerging brand is still a startup because every new unit is a new test of the model. The only difference is that the cost of failure gets higher with each location.

Pillar One: Scaling is Not Expansion. Scaling is Repetition Without Degradation.

The first truth serious operators need to accept is this: opening more units is not scaling. Repeating a model without dilution is scaling.

That means the following must remain true from location one to location five:

  • The guest experience still feels intentional.
  • The unit-level economics still make sense.
  • The culture still transfers.
  • The systems still hold.
  • The brand identity still lands clearly.

If any of those degrade with each unit, you are not scaling; you are stretching.

This is where a lot of emerging brands get trapped. They call themselves a “chain” because they have multiple addresses. But operationally, they are still improvising. They have expanded their footprint without maturing their infrastructure.

A second location should not prove ambition, it should prove repeatability. That is a much higher bar to reach.

Pillar Two: Systems Compound. Effort Does Not.

Startups are fueled by intensity. That is normal. Founders often work harder, stay later, and solve more problems than anyone else in the building. In the early stage, effort covers a lot of weakness.

But effort has a limit. What has no limit? Systems.

The brands that become scalable stop asking “How do we keep up?” They start asking “What must be documented, standardized, and delegated so this works without us?”

That simple mindset shift changes everything.

Systems do not automatically make a brand bureaucratic or corporate. They ensure that knowledge leaves the founder’s head and enters the business in usable formats:

  • strategic playbooks
  • programmed SOPs
  • role clarity
  • service standards
  • training flows
  • decision rules
  • opening and closing disciplines
  • vendor and purchasing frameworks

This is where compounding begins.

Every time a system replaces memory, the business becomes more transferable. Every time a process becomes trainable, leadership gets lighter. Every time expectations become standardized, culture gets stronger.

The founder who still solves everything manually is not building an emerging business; they are scaling personal exhaustion.

Pillar Three: Every Unit Should Be a Feedback Loop, Not Just a Revenue Line.

This is where serious operators separate themselves from the hopeful.

A new location should do more than add top-line revenue. It should teach the brand something.

Every additional unit should refine the model:

  • program complexity
  • labor deployment
  • average revenue per guest behavior
  • service pacing
  • production flow
  • local marketing
  • daypart demand
  • guest retention patterns

That is how compound startups evolve into disciplined brands.

You are not just opening more bars, restaurants, or boutique hotels. You are gathering intelligence. Every unit is a live test of what is truly core to the concept and what was only working because of geography, novelty, or founder presence.

The smartest operators treat each location as a strategic lab. The struggling operators treat each location as proof they were already right.

One mindset compounds wisdom, the other compounds blind spots.

Pillar Four: Leadership Depth, Not Real Estate, is the True Growth Constraint.

Most people think growth is limited by capital, real estate, or timing. In hospitality, growth is usually limited by leadership depth.

You can always find another space. Just as you can always raise more money or can always negotiate another lease.

What is much harder is building a bench of people who can lead the brand at standard without the founder becoming the glue for every decision.

This is the hidden scaling trap.

A business can look ready on paper while being leadership-fragile in practice. Ask better questions:

  • Can your current GMs develop managers into future AGMs who can then become future GMs?
  • Can someone open a new unit without you holding every meeting?
  • Can your business and developed culture survive your physical absence?
  • Can the business solve problems without escalating them all upward?

If the answer is no, you do not have a scaling problem. What you have is a leadership development problem, and this is where many emerging brands stall.

Not because demand disappeared but because the founder never stopped being the sun in the solar system. Real scalable businesses are not built on charismatic founders. They are built on distributed leadership, reinforced systems, and cultural consistency.

Pillar Five: Unit Economics Turn Growth Into Wealth or Waste.

This is the point many operators avoid because it feels less fun than branding, design, or buzz.

But this is the pillar that determines whether an emerging brand becomes a wealth-building machine or an expensive ego project.

Revenue is loud, unit economics are quiet.

The industry is full of businesses that grow volume and revenue faster than profitability. That is why sustainable expansion has become such a focus. Operators planning new locations are doing so under heavier cost pressure, more scrutiny around labor and inventory, and growing emphasis on profitability discipline.

If your first location does not have healthy unit-level economics, your fifth location will not solve that; it will amplify it.

That means serious operators must know:

  • contribution margins.
  • prime cost discipline.
  • ADR + TGRM for hotels.
  • labor productivity (not just labor costs).
  • sales per square foot.
  • cash flow timing.
  • return on invested capital by unit.
  • payback timeline.
  • break-even thresholds under pressure and volatility.

This is where emerging brands become compound startups in the truest sense. They do not just add units, they improve the model so each new location has better odds, better data, and better operational intelligence than the one before it.

That is compounding; not ambition without infrastructure, and not “we’ll figure it out later.”

Compounding means the business gets smarter as it grows.

What This Means for Small Hospitality Brands Right Now

If you operate between one and 15 locations, this should reframe how you see yourself.

You are not “small” in some dismissive sense, and you are not “too early” to think like a chain.

But you are also not “there” just because you have multiple units. You are an emerging brand, which really means you are a compound startup.

That requires a different mindset:

Stop asking:

  • How fast can we grow?
  • Which market is next?
  • How do we get bigger?

Start asking:

  • What in this model is actually repeatable?
  • What still depends too much on founder energy?
  • What is documented versus assumed?
  • Where are margins strongest and weakest by unit?
  • What are we learning with each location?
  • Who can lead without us in the room?

Those questions build a legacy business. The others just build motion.

The Strategic Takeaway Serious Operators Should Save

The brands that win the next decade will not be the fastest to expand. They will be the most disciplined in how they repeat. That is the entire game.

A startup proves an idea. An emerging brand proves a system. A great hospitality company proves that the system can grow without sacrificing the soul of the brand.

So if you are sitting at one, three, or ten locations right now, remember this:

You are not done being a startup. You are simply in a more expensive chapter of it.

Treat each unit like a lesson. Treat systems like assets, leadership depth like oxygen, and unit economics like truth.

Emerging brands are not just growing businesses, they are startups that learned how to compound. And in hospitality, that is the difference between becoming a brand and becoming a cautionary tale.

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A salad with chicken and Parmesan cheese shavings.
by David Klemt David Klemt No Comments

Service Failure: A Real Restaurant Experience Through 3 Lenses

We’ve returned from Las Vegas after attending the 2026 Bar & Restaurant Expo, at which Doug Radkey hosted an impactful education session.

Interestingly enough, his session addressed the top eight reasons for the failure rate in hospitality.

On our second evening we had a memorable restaurant experience. Unfortunately, it isn’t memorable because it was so amazing.

There’s something particularly frustrating (if not infuriating) about receiving bad service from a restaurant as a hospitality professional attending an industry trade show event at the host hotel.

Things go wrong, standards slip, and teams need to recover; perfection is an illusion. We’ve all been there, on the service side and the guest side. And we’ve all experienced smooth recoveries on both sides.

Having to recover due to a service drift isn’t the end of the world. In fact, I firmly believe recovery opportunities are valuable coaching moments that can improve the overall operation.

However, when multiple issues arise and zero recovery ever takes place, that’s a problem. There’s just something, as I’ve said, that really makes service failure stand out when one has just left a hospitality industry event during which one has connected with operators, educators, and consultants, walked a few hundred feet down a casino corridor, chosen a restaurant, and received poor service.

The irony of experiencing this hours after presenting a session on the failure rate in hospitality was not lost on us.

Again, these are learning opportunities. So, I’m going to break down the service failure through three lenses. 

by David Klemt

A salad with chicken and Parmesan cheese shavings.

All I wanted was a salad. Not this salad (I never got to see it), but one similar.

Let’s take a look at what went sideways from the guest perspective, coaching opportunity perspective, and strategist perspective.

The Service Failure

Everything started off well. The host stand was helmed by friendly employees. Servers looked like they were on their game.

The restaurant wasn’t slammed but it wasn’t dead; there were several tables available, and most seats at the bar were empty. Great—we asked to sit at the bar, taking a corner seat on the opposite side of the service well.

From that seat, the server stations, corridor to the kitchen, main dining room area, and service bar were in view.

We ordered a cocktail and a beer from the bartender, placed our food orders…and that was the final interaction we had with the bar team until we were ready to pay our bill.

It may seem a bit odd, but as much as I wanted the quesabirria I had ordered, I was really looking forward to the Caesar salad. After a couple of days on the Strip, a morning and afternoon at the Las Vegas Convention Center, and a couple of hours at the Welcome Kickoff Party, something light and refreshing seemed like a great idea.

Unfortunately, that salad never came. Neither did the bartender after serving the single rounds of drinks we managed to order. There was no check-back on the drinks, nor any of the dishes that were dropped off by runners. In fact, the empty glasses were never removed, and the empty plates just sat in front of us, stacking up. And no, the bar wasn’t slammed; we were two of the half-dozen or so guests seated there.

The bartender seemed far more interested in preparing the bar for a close that was about two hours away. Worse, the manager on duty, often posted up at the service well, corrected none of the failure they could clearly see. They were busy expoing drinks, glancing at our empty glasses and plates, and not engaging with us or the bar team. [Note: Busy doesn’t indicate that you’re getting anything done or being efficient. In fact, it can indicate the opposite.]

The Guest Perspective

When a guest receives poor service, they’re not focusing solely on an item they didn’t receive. That’s a huge part of it, of course, but not the whole story.

Their frustration often goes beyond “I didn’t get one of my items.”

Depending on the person, they’ll likely feel a range of emotions and internalize what can be perceived as a personal slight.

Have they done something to start their visit on the wrong foot? Do they look like they don’t belong, somehow? Does the staff not like them for some reason?

Failing to deliver one item, refusing to check back with a guest, and ignoring their attempts to get your attention can easily make a guest feel alienated, irrelevant, and insignificant.

Hospitality is about making everyone feel welcome, relevant, and valued; the focus is on providing serving others. The concept of hospitality is betrayed when we do or say anything that tells a guest they don’t matter, or that they’re not “good enough” to get great service.

I felt none of that, but I’m also in hospitality; I don’t take it personally. I was busy attempting to discover the root cause of the failure and waiting for a recovery that wouldn’t come, beyond the salad that never appeared being taken off the bill at the end of our meal (after I was finally able to address it).

Guests who don’t work in hospitality, on the other hand, may take entirely avoidable service failures personally, leave feeling very much the opposite of welcome, and encourage others to never visit the offending restaurant.

The Coach Perspective

When a person in a leadership role notices standards slipping, the knee-jerk reaction is often to intervene immediately and solve the problem for their team. That’s entirely understandable, particularly when that leader plans to address the drift from standards at the next pre-shift meeting (and follows through on that plan).

That said, some service issues provide an excellent opportunity for leaders to develop a powerful and valuable skill: coaching.

Just as there are differences between strategists, consultants, and coaches, there are notable differences between managing and coaching.

Managers use direct, one-way communication; they tell the people who report to them what to do. When it comes to standards drifting, they tend to solve the problem for the team. (Good and great managers also take responsibility for the drift.)

Coaches use two-way communication to guide an individual to find the solution on their own. In that way, they develop people, empower them, and are often excellent mentors.

Ideally, a hospitality team’s leaders are managers and coaches, knowing when to leverage the strengths of both roles.

Had the MoD at the restaurant noticed our empty glasses, which we had slid across to the edge of the bar next to our empty plates, he may have pulled the bartender aside for a moment. In a coaching role, he could have asked a simple question: “What’s going on with Seats 1 and 2?” or “What do you see at 1 and 2?”

Either question would have told the bartender the MoD had spotted an issue and expects them to figure out what it is. That would also have told the bartender they need to reset and focus on guest service. Such a simple coaching move can help build a sharper, more engaged team.

Coaching redirects work for every role in the house, and they’re more powerful than many operators and their leaders may realize.

The Strategist Perspective

I’m more disappointed in the failure of the MoD to intervene than I am the bartender. And the fact that the bartender working service well didn’t intervene while the MoD was expoing drinks tells me a lot about the restaurant’s culture.

The service well bartender absolutely noticed our empty glasses and plates, and turned away when eye contact was made. If they saw me try to get their attention, they felt comfortable ignoring me by stepping to the other side of the bar, breaking sight line via the center back bar.

I’m not going to snap my fingers or raise my voice to get a bartender or server’s attention; the former is horrific, and the latter isn’t a pleasant guest experience. If my direct “excuse me” is ignored a few times, I’m going to enter assessment mode, settle in, and observe how the team works, with a focus on the venue’s leadership.

The service bartender also didn’t feel the need to say something to their peer who was supposed to be serving guests, or felt uncomfortable doing so. And the bartender who had (barely) served us was clearly quite comfortable ignoring two guests in front of the MoD, who could also see that we were not having a great experience.

Instead, when not rushing to the back of house, that bartender busied themselves with cleaning and straightening behind the bar. Interestingly, none of that busy work involved our section of the bar.

As the person in a leadership position, I place the responsibility for service failure entirely on the MoD. If they were the GM, the restaurant is flying a flock of red flags. If the issue is this one manager, the rot still runs deep; the team has learned that standards can drift when that manager is running the show.

Going deeper, that means the damage is done. If standards drift when one manager is on, poor habits don’t just disappear when a different manager is overseeing the restaurant. Instead, some team members (at least two that I can think of at this restaurant) learn how to hide their bad habits depending on which manager is working their shift. The culture needs to be addressed, starting with considering and reflecting on values, deciding on the non-negotiables, documenting SOPs clearly, and training on them, starting with the leadership team.

This restaurant team has likely learned that standards where they work are negotiable, which means they’re not standards at all. If they’re not standards, they’re just recommendations. And if what’s expected isn’t enforced as a true standard, the operation isn’t run by systems, it’s plagued by inconsistencies.

None of that leads to success.

Image: Raphael Nogueira via Unsplash

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A closeup image of a hand attached to the leads of a lie detector, with the small polygraph machine sitting on the bar top.
by David Klemt David Klemt No Comments

Three Lies Hospitality Operators Need to Stop Telling Themselves

Revenue vanity, generational myths, and the expensive distractions hurting operators.

The hospitality industry spends an extraordinary amount of time talking about the wrong things.

Operators debate generational stereotypes. They brag about revenue numbers, and chase the newest technology platform.

Meanwhile, the operators who actually build durable businesses are focused on something far less exciting: structure, discipline, and profit.

Spend enough time walking trade show floors, reading hospitality headlines, or sitting through conference panels and the pattern becomes impossible to miss.

Hospitality doesn’t suffer from a lack of passion; it suffers from distraction.

And some of the loudest conversations in the industry right now are built on myths that waste operators’ time, money, and attention.

by David Klemt

A closeup image of a hand attached to the leads of a lie detector, with the small polygraph machine sitting on the bar top.

Illustration generated using AI

Here are three of the worst lies distracting operators.

Lie #1: Sales Equals Success

Revenue is hospitality’s favorite number. Or, phrased a bit differently, sales are hospitality’s favorite vanity metric.

Operators proudly announce they’ve done $3 million or $5 million in annual sales. Trade show rooms applaud when they hear big sales numbers. Social media celebrates. Award nominations start rolling in. Hospitality publications write features.

But revenue alone tells you almost nothing about whether the business is healthy.

A venue doing $3 million in sales and netting $100,000 isn’t a success story. It’s really a stressful job disguised as a business. A significant number of hospitality entrepreneurs end up giving themselves jobs instead of building businesses and empires.

Sales tells you how busy you were. Profit tells you whether your model actually works.

Too many operators chase volume (full dining rooms, long lines, packed weekends) because volume looks impressive. However, the reality is busy doesn’t equal profitable.

Busy rooms and long lines look impressive to some. But profitability, not popularity, is what determines whether a business survives.

The operators who survive long-term aren’t chasing top-line numbers, they’re protecting margins.

Lie #2: Generations Explain Everything

Another long-standing distraction is the industry’s obsession with explaining everything through generational stereotypes.

We’ve read and heard them all: Boomers are entitled, Millennials have killed restaurants, and Gen Z doesn’t drink.

Did you notice I skipped Gen X? That happens a lot when discussing generations.

These narratives make for easy articles and viral social media posts. However, they rarely reflect what operators actually see inside their venues.

Guests aren’t demographic caricatures, they’re people.

Yes, preferences evolve. But successful operators pay attention to how guests behave in their rooms, not how someone online claims an entire generation behaves.

When operators get distracted by generational mythology, they miss the fundamentals that have always mattered: hospitality, atmosphere, consistency, and value. They also miss another key factor when serving people: speaking to guests’ personal values.

Hospitality doesn’t need better stereotypes; nobody and no industry does. Hospitality needs better observation.

Lie #3: Critical Thinking is Optional

This is where the industry’s most expensive mistakes happen.

Operators will hesitate to invest $30,000 in strategic planning that could protect hundreds of thousands or millions of dollars in capital. But they’ll sign a $50,000 equipment order without blinking.

Operators will overspend on technology platforms they barely use. They’ll chase design trends that photograph well but do nothing for the business. They’ll throw open their doors and add complexity before they’ve built stability.

It happens constantly.

People under-invest in critical thinking and over-invest in shiny equipment, overpowered tech, and unnecessary design.

The irony is that thinking—strategic clarity, concept development, operational structure, financial discipline—is the part that determines whether a venue survives.

Equipment doesn’t fix a weak concept, technology doesn’t repair broken operations, and beautiful interiors don’t create profitability.

You know what does tick all those boxes? Systems and structure.

The Reality

Bars, restaurants, nightclubs, eatertainment, hotels, and every hospitality business in between rarely fail because operators lack passion.

They fail because operators chase signals that look impressive and buy into stereotypes disguised as actionable data points. Failure comes because they’re distracted by revenue headlines, generational myths, shiny equipment, trendy technology, and, possibly the most damaging of all, refusing to change because “we’ve always done it this way.”

If these distractions dominate so much operator thinking, what’s the answer to this key question: What really creates truly durable hospitality brands?

Signals that actually matter.

The operators who build durable businesses focus on something much less glamorous: building businesses with real pull.

They develop and build out clear concepts. They adhere to disciplined operations, and implement profitable systems.

Everything else is noise, and noise is expensive.

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by David Klemt David Klemt No Comments

The Most Expensive Phrase in Hospitality

The hospitality industry has a very clear adaptation problem. A high percentage of restaurants, for example, operate on approximately give percent pre-tax margin in the U.S. That leaves almost no room for error when labor, food, rent, and utilities rise at the same time.

In Canada, as we at KRG Hospitality have pointed out (along with the likes of those at Dalhousie), there is deep operator stress. Many restaurants are operating at a loss or near break-even.

In the U.S., Black Box Intelligence reported weakening year-end 2025 traffic and sales momentum, while the National Restaurant Association continues to highlight persistent cost pressure as a defining theme.

That is the context for one of the most expensive and dangerous phrases in hospitality leadership: “We have always done it this way.”

This era is a wake-up call for both startup founders and existing operators in hospitality. Operators must avoid acting on panic and abandoning the fundamentals of hospitality, and instead abandon complacency.

What got you here will not get you there. The habits, the assumptions, and the systems that helped you open and survive or thrive in one era can quietly become liabilities in the next.

by Doug Radkey

A compass sitting on top of financial documents, lit by a ray of sunlight

Where are you, your business, and your finances headed?

This is why the hospitality industry needs to be reinvented.

The Phrase That Sounds Safe but Isn’t

“We have always done it this way” sounds practical.

It sounds seasoned. It sounds like experience speaking.

In reality, it often means something else:

  • We stopped questioning our assumptions.
  • We normalized inefficiency.
  • We confused tradition with strategy.
  • We are asking the market to adapt to us instead of us adapting to the market.

That mindset is dangerous because it hides behind familiarity, and familiarity is seductive in hospitality.

When the floor is busy, regulars still show up, and staff know the routine, it can feel irresponsible to change anything.

But here is the hard truth: The market does not reward your comfort; it rewards your relevance.

What the Market Is Telling You Right Now

Guests have changed. Teams have changed. Costs have changed. Technology has changed. Attention spans have changed. Expectations have changed.

The public still wants restaurants. But they also want proof.

They want proof of value, proof of consistency, and proof that the final bill feels fair. Your guests are not quitting hospitality, they are rationing it.

Guests are becoming more selective, and saving their spend for places that feel worth it (as I recently wrote in an article titled “The Public Has Spoken.”

At the same time, operators are under real pressure:

  • Average food and labor costs have risen sharply since 2019, according to the National Restaurant Association.
  • Only a minority of casual dining brands posted positive same-store sales growth in several 2025 Black Box Intelligence snapshots.
  • December 2025 same-store traffic was down 3.3 percent in Black Box Intelligence tracking, showing how fragile demand can become when momentum softens.

And yet many operators are still responding with legacy thinking:

  • Raise prices, and hope.
  • Add more menu items, and hope.
  • Work longer hours, and hope.
  • Wait for traffic to rebound, and hope.

Hope is not a system. Hope is not a strategy. Hope will not create positive change.

The Startup Version of the Problem

Early-stage concepts are particularly vulnerable to this mindset because founders often confuse inspiration with readiness.

A founder falls in love with a concept. They’ve seen something work somewhere else. Maybe they worked in a similar venue years ago. Perhaps friends tell them the city “needs this.”

They may think the old rules of location, food cost, staffing, or guest experience still apply in the same way.

So they say:

  • “This is how these places are done.”
  • “This is how the menu should look.”
  • “This is how bars have always made money.”
  • “This is how service should feel.”

The problem is that many startup founders are borrowing assumptions from a version of the industry that no longer exists.

A Startup Story Operators Need to Hear

Imagine a founder opening a neighborhood restaurant today.

They choose a location because it’s in the neighborhood in which they live, and they “know it.” So, they choose to sign a lease without completing a feasibility study. They insist on a 50-item menu because that is what “we had at the restaurant I used to work at.” They refuse to invest in pre-opening systems because “we can train on the fly.” They choose a large footprint because “bigger means more revenue.” They under-budget because “we’ll make it back in the first six months.”

None of that sounds reckless to them. In fact, it sounds normal. Then reality hits:

  • The menu drives waste.
  • The labor model becomes bloated.
  • Training is inconsistent.
  • Ticket times drag.
  • Cash flow tightens.
  • The opening team burns out.
  • The owner starts working 70 hours a week.

What failed was not the dream; what failed was the set of assumptions.

And most of those assumptions were anchored in some version of “This is how it has always been done.”

The Existing-Venue Version of the Problem

For operating venues, the danger is even quieter because existing businesses often survive just enough to avoid confronting what no longer works.

  • A restaurant is still busy on Fridays.
  • The bar still has regulars.
  • Brunch still fills up on weekends.
  • The hotel still books during the off-season.

So, leadership assumes the model is intact.

But under the surface:

  • traffic is softening midweek.
  • labor productivity is declining.
  • guest frequency is down.
  • costs are creeping up faster than pricing power.
  • managers are spending more time solving preventable problems.
  • guests are less forgiving.
  • staff turnover is getting normalized.

This is where “we have always done it this way” becomes a silent killer.

It is not dramatic. It is not obvious, and it is not one big mistake. It’s death by drift.

Why This Mindset Creates Damage

  1. It Protects Broken Systems

The phrase often shows up when someone questions a process.

  • Why do we still print this report this way?
  • Why do we need six people on that shift?
  • Why is the menu still this large?
  • Why is the manager still doing this task manually?

Instead of evaluating the question, leadership defends the tradition. That is how broken systems survive.

  1. It Blocks Innovation Without Protecting Quality

Some operators hear “adapt” and assume people mean “abandon your brand.”

Let me be clear: That is not the meaning of adapt.

Adaptation is not identity loss; it is strategic refinement.

Tightening your menu is not selling out. Improving your tech stack is not becoming robotic or losing human connection. Reworking labor deployment is not disrespecting the team.

Modernizing service does not erase hospitality, it protects it.

  1. It Confuses Activity with Strength

Many operators use old routines because they are familiar, not because they are effective.

That leads to longer hours, more duplicated work, reactive staffing, emotional decision-making, and bloated checklists that do not improve outcomes.

The business looks busy, it just does not get better.

  1. It Makes Scaling Dangerous

A flawed model can survive in one location because the owner is carrying it. However, that will, 100 percent of the time, ensure that it collapses in location number two.

If you scale a business still running on tribal knowledge, heroic leadership, or outdated assumptions, you do not multiply success.

What you’re multiplying in that instance is instability.

The Trend Beneath the Trend

One of the biggest mistakes serious operators make is confusing trends with noise.

Not every change deserves reaction, but some do.

The real skill now is understanding which fundamentals are timeless, and which operating assumptions are outdated.

The Fundamentals Still Matter

  • Ensure you’re operating according to the seven principles of hospitality.
  • Ensure you have cleanliness, pace of service, and brand clarity.
  • Ensure you have leadership presence, value perception, and profit discipline.

The Old Assumptions That Need to Die

  • More menu items means more sales.
  • The owner should be the hardest worker in the room.
  • Managers should solve everything themselves.
  • Being busy means being healthy.
  • Spreadsheets are enough.
  • Guest loyalty is automatic.
  • If I build it, they will come.
  • A strong opening guarantees long-term traction.

That last list is a catalog of damage.

What the Phrase “What Got You Here, Won’t Get You There” Really Means

It does not mean the past was wrong. That phrase means each phase of a business demands a different version of itself.

What got you open is not what stabilizes you.

What stabilized you is not what scales you.

What helped you survive 2019 may not help you survive 2026.

That is simply maturity. A serious operator asks:

  • What must stay true?
  • What must evolve?
  • What is now a bottleneck?
  • What are we tolerating because it feels familiar?
  • What are guests telling us through behavior, not words?

The Strategic Shift Serious Operators Need

  1. For Startups

Start with playbooks, not passion alone.

That means:

  • stress-testing the budget and first-year assumptions.
  • validating the concept against today’s market.
  • developing a strategic roadmap and series of playbooks.
  • understanding the TAM/SAM/SOM of your market.
  • building operating systems before opening day.
  • defining a clear value proposition and guest experience.
  • sequencing your decisions intentionally throughout the process.

The founders who win now are not the most optimistic; they are the most prepared with strategic clarity.

  1. For Existing Venues

Audit your assumptions ruthlessly.

Ask yourself:

  • What part of our operation feels “normal”, but is actually inefficient?
  • What are we doing because it works, and what are we doing because we’re used to it?
  • Where are margins leaking, and why?
  • What would we never design this way if we were starting today?
  • Where is leadership still acting like a firefighter instead of an architect of the experience?

Once you have those answers, you act. Not emotionally, not all at once, but more decisively.

A Better Way to Think

The goal is not to become more trendy or be “a vibe.” The goal is to become an adaptable business.

The goal is not to throw out your identity, the goal is to protect it through better systems.

The goal is not to market harder, the goal is to make the business stronger.

This is where strategic playbooks—not a singular business plan—matter.

A series of real playbooks forces you to think in sequence, test your assumptions, map your reality, and lead from clarity instead of tradition. It gives startups a smarter pre-open path, and gives operating venues a framework to stabilize and scale with discipline.

Without those resources, too many decisions are still based on memory, habit, ego, or convenience. And that fallback to outdated thinking is exactly how “we have always done it this way” survives to bring down yet another business.

The Takeaway Serious Operators Should Write Down

“We have always done it this way” is not operational wisdom. It is often unchallenged drift wearing the mask of experience.

Listen, the hospitality industry is changing whether you like it or not. Guests are changing. Margins are changing. Leadership expectations are changing.

The question is not whether change is coming. The question is whether you are still protecting habits that no longer deserve protection.

Here is the real wake-up call:

  • The next bar, restaurant, or hotel opening will require a different mindset.
  • There’s a solid chance your current pain point is tied to yesterday’s assumptions.
  • Your business will not become more sustainable, scalable, or profitable by defending outdated norms.

The operators who will win the next five years will not be the most stubborn. The winners will be the most honest, the most precise, and the most willing to say:

What got us here won’t get us there.

And then they will build accordingly.

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Drizzling hot honey onto a pepperoni pizza
by David Klemt David Klemt No Comments

2026 Pizza Industry Trends: Styles, Ingredients, Pricing, and Strategy for Operators

There are 75,736 pizzerias operating in the United States right now. Together, they generate an estimated $49.6 billion in annual revenue despite a slight (0.3%) dip year over year, according to IBISWorld.

Meanwhile, 86 percent of Americans ate pizza or flatbreads in 2025, and 40 percent of Gen Z consumers are eating pizza at least once per week.

Demand isn’t the issue; competition is.

Pizza is one of the most democratic menu items in hospitality. It works in a 20-seat neighborhood bar, a 200-seat restaurant, a food hall, a hotel lobby, a stadium concourse, or a multi-unit chain spanning multiple states… Pizza even works via automated vending machines.

It thrives at lunch, during a beer-and-shot-soaked visit to a dive bar, and over late-night cocktails. That said, ubiquity is a double-edged sword.

When nearly everyone sells pizza, differentiation—not dough—becomes the battleground.

Reports from Pizza Today, PMQ Pizza, IBISWorld, and Datassential show competition shifting beyond style and price toward positioning, operational precision, retention, and tech fluency.

Detroit and tavern-cut are surging, hot honey and Calabrian chiles are climbing. Anchovies and sun-dried tomatoes may be sliding. The average large cheese pizza now sits at $16.92 nationally, with some regions pushing past $20.

Data alone doesn’t answer the structural question: How do you turn pizza’s mass appeal into brand gravity? The real structural question is: How do you turn pizza’s mass appeal into brand gravity?

Going further: How do you convert one-time traffic into repeat behavior after investing to acquire it? And how do independents win when chains can often absorb margin pressure more easily?

Let’s break down what the 2026 pizza data actually means for independent operators.

by David Klemt

Drizzling hot honey onto a pepperoni pizza

Pepperoni and hot honey are hot ingredients heading into 2026.

Top Pizza Styles in the US

Pizza Today

  1. New York
  2. Traditional American
  3. Chicago Thin (including Tavern)
  4. Detroit
  5. Neapolitan/Neopolitan
  6. Sicilian
  7. Deep Dish
  8. Grandma
  9. California/American Artisan
  10. Roman

Hot Pizza Styles in the US for 2026

Pizza Today

  1. Detroit
  2. New York
  3. Chicago Thin (including Tavern)
  4. Deep Dish
  5. Sicilian

Datassential

  1. Chicago Tavern-Cut
  2. Detroit
  3. Brick Oven
  4. Chickpea Pizza Crust
  5. Flatbread Pizza
  6. Neapolitan
  7. New York

Top Pizza Ingredients

Pizza Today

  1. Pepperoni
  2. Sausage
  3. Mushroom
  4. Bacon
  5. Onion
  6. Extra cheese
  7. Chicken
  8. Black olives
  9. Canadian bacon
  10. Jalapenos
  11. Ham
  12. Red/Green pepper
  13. Meatballs
  14. Pineapple
  15. Basil
  16. Beef
  17. Fresh garlic
  18. Banana peppers
  19. Spinach
  20. Artichoke

Datassential

  1. Plant-based pepperoni
  2. Pepperoni
  3. Mozzarella
  4. Tomato
  5. Mushroom
  6. Sausage
  7. Chicken
  8. Peppers
  9. Bacon
  10. Garlic

Hot Pizza Ingredients on the Rise in 2026

Pizza Today

  • Brisket
  • Calabrian chili pepper
  • Chorizo
  • Figs
  • Nduja
  • Pistachios
  • Ricotta

Datassential

  1. Plant-based pepperoni
  2. Hot honey
  3. Pepperoni cups
  4. Paneer
  5. Dill pickle
  6. Honey
  7. Calabrian chili pepper
  8. Barbecue pork
  9. Mint
  10. Cotija

Ingredients on the Decline in 2026

According to Pizza Today, most pizzeria operators (at least among those they surveyed) aren’t planning on pulling any ingredients from their menus.

Some respondents are indeed planning to ditch a number of toppings this year:

  • anchovies
  • artichokes
  • shrimp
  • sun-dried tomatoes

It’s likely these eliminations are due to price increases.

Pricing Across the US

PMQ Pizza analyzed pizza trends and data, including pricing.

They engaged Slice, the app that for several years released their own Slice of the Union report, for several data points. I used to look forward to this study each year, but Slice appears to have stopped releasing their report after 2024.

One of the bits of info PMQ asked Slice to provide is the average price for a large cheese pizza. On average, a large cheese pizza costs $16.92 in the States. That said, pricing can be region-specific.

In New England and on the East Coast, a large cheese pizza is under the national average, ringing in at $16.71 and $16.82, respectively.

Moving to the Central US, that price climbs to $17.10. A large cheese pizza, on average, costs $20.17 on the West Coast.

How to Win with Pizza in 2026

It’ll take more than keeping up with pizza style and topping trends to with pizza.

This is particularly true for independents going up against regional, national, and global chains. Chains can often weather rising costs more easily than independents.

Get Personal & Meaty

You likely already have a lunch-daypart-focused menu. It’s possible you’ve even dialed your operation into the snack space, a growing and important revenue driver.

If so, you’re already offering pizza by the slice or personal pizzas. That means you’re well positioned to succeed by tempting proteinmaxxers, diet-conscious guests, and guests on GLP-1 weight loss drugs.

Another way to leverage the trend toward boosted protein consumption is to promote your meat-lover’s pizza.

Cool It

Frozen pizza from independents isn’t exploding, but it is growing. PMQ Pizza has taken note of a handful of indie pizza operations that have managed to take their pizzas nationwide via frozen (and refrigerated) pies.

Indies interested in doing the same can reach out to local retailers, a suggestion made by PMQ Pizza. If doing so proves successful, scale from local stores.

Focus Your Marketing

Pizza Today addresses effective and ineffective marketing techniques in their 2026 Pizzeria Industry Trends Report.

Split into two categories, marketing strategies with less to no effectiveness and strategies with moderate to high effectiveness, the pizza publication helps operators focus their time and resources.

For example, it may be time to consider ditching:

  • flyers
  • direct mail
  • search ads
  • door hangers
  • billboards
  • public relations or press releases
  • geofencing
  • radio ads
  • TV ads
  • magazine ads
  • newspaper ads

Some of the above are more costly than others. If you’re using any of these without seeing ROI, redirect time and money toward higher-performing channels.

Pizza Today identifies social media advertising, word of mouth, loyalty programs, community/sporting events, email, text, video marketing, in-store advertising, and social media influencer campaigns as marketing approaches with moderate to high effectiveness.

Lasering in on loyalty programs, both the Pizza Today and PMQ Pizza reports encourage the development and implementation of this marketing tool. As any operator knows (or learns quickly), guest retention is much less expensive than guest acquisition.

So, focus on transforming first-time guests into valuable repeat guests. Build out a loyalty program, ensure you have a website and that it’s easy to find and use (fast, stable, intuitive, easy to customize orders, etc.), and try to convert most of your traffic into online orders. Free up your phone lines and you’ll likely find you’re capturing more orders and decreasing labor costs, keeping your teams working on more lucrative elements of the operation.

Tighten Your Tech Stack

PMQ Pizza’s 2026 Pizza Power Report includes a checklist on its last page. Using it, you’ll be able to easily identify where your tech stack is strong, where there are gaps, and what to focus on to truly dial it in.

Does every other tool or platform in your stack integrate into your POS? Do you own your online ordering and delivery functions, or are you still using Uber Eats and DoorDash (and losing money, data, and control)?

Is your stack collecting, parsing, and giving you deep, data-rich insights? If so, do you know how to find relevant data, generate useful reports, and track your inventory, other costs, analytics, KPIs, etc.?

And, bringing up everyone’s favorite two letters, are you implementing AI? I’m not asking you to replace humans—that remains a red line for me. Instead, I’m asking you to consider where AI can safely and responsibly streamline your operations, ensure you’re not missing orders, and help control your costs.

Hospitality-focused AI tools can monitor your inventory and automatically place or adjust orders, make staffing more efficient and less costly, and help you implement, optimize, and automate your marketing efforts.

This checklist alone is worth downloading PMQ Pizza’s 2026 report. In fact, I encourage operators to download and review each report directly:

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Female DJ on the decks, overlooking a nightclub crowd bathed in red light
by David Klemt David Klemt No Comments

When Nightlife Becomes an Industry: Spectacle Economics in the U.S.

The U.S. shows what happens when Spectacle Nightlife reaches full maturity: the category shifts from subculture to structured entertainment economy.

Over the past several years, nightlife hasn’t just gotten bigger in the U.S., it has become an industry all its own.

In cities like Las Vegas, a club night can carry the economics of a touring concert, the sales structure of luxury hospitality, and the marketing engine of a major event.

This isn’t nightlife as Scene, it’s nightlife as Spectacle infrastructure. DJ bookings become headline acts, VIP ecosystems become core revenue engines, and venues function less like local scenes and more like recurring live-event platforms.

Understanding this shift isn’t about monitoring trends, it’s recognizing how scale changes the economics, risks, and operating realities of going out.

by David Klemt

Female DJ on the decks, overlooking a nightclub crowd bathed in red light

There was a time when nightlife was primarily a cultural business with entertainment layered into operations and programming.

In the U.S., that equation has flipped.

Today, top-tier Spectacle Nightlife operates at the intersection of three systems:

  • Live-event economics: headliner-style bookings, one-night performance stakes

  • Luxury hospitality mechanics: tiered access, service levels, status signaling

  • Entertainment production logic: lighting, staging, sound, and visuals as core product

This reality goes beyond just running a “busy club.” These venues are now functioning as recurring event platforms.

The DJ is no longer in the background, they’re the headliner. Production is no longer atmosphere, it’s the expectation. VIP is no longer a side offering, it’s the revenue engine.

That is industrialization.

Las Vegas: The Fully Realized Spectacle Model

If you want to see the Spectacle model built out fully, you look to Las Vegas.

Vegas has proven something the rest of the industry now studies and tries to emulate at varying scales: nightlife can be engineered like a large-scale entertainment product when tourism volume, capital investment, and talent pipelines align.

Here, a single night can resemble a festival set compressed into a room (or pool deck, or rooftop, or…):

  • internationally known DJs

  • large-format LED installations

  • choreographed lighting and visual sequences

  • host-driven VIP ecosystems functioning like parallel sales forces

Guest segmentation isn’t incidental, it’s strategic. General admission, elevated GA, table service, VVIP… Each tier represents a different product, not just a different price.

Vegas didn’t simply grow its clubs, it has built a repeatable Spectacle machine.

Spectacle Beyond Vegas: Markets Scaling the Model Differently

While Las Vegas is the clearest example of industrialized Spectacle Nightlife, it isn’t alone.

Other U.S. cities have developed variations of the model. Some may operate at a slightly reduced scale but they’re still built around visibility, production, and high-value guest segmentation.

Miami: Spectacle as Lifestyle Infrastructure

In Miami, nightlife merges with tourism, luxury culture, and 24-hour energy.

Venues like E11EVEN Miami demonstrate how Spectacle logic travels outside Vegas: performance-driven environments, celebrity DJs, VIP ecosystems, and branding that positions the club as a destination in itself. The club even has its own lifestyle clothing brand, with its own dedicated website.

Miami’s version of Spectacle is less about mega-scale venues and more about allure, visibility, and proximity. That said, the economics still revolve around tiered access, production value, and guest perception of status.

Lesson: Spectacle doesn’t need Vegas volume if the city already functions as a global playground.

New York: Spectacle Under Density Pressure

New York City supports both Scene ecosystems and Spectacle venues, but its Spectacle model operates under different constraints: real estate costs, licensing limits, and neighborhood density.

Large-format nights still exist, but the economics require sharper programming, faster turnover of what’s “hot,” and stronger marketing engines. In NYC, Spectacle must fight harder for attention because the city’s overall entertainment field is so crowded.

Lesson: Spectacle in dense urban markets becomes a momentum business: constant refresh, constant visibility.

San Francisco: Spectacle Facing Structural Headwinds

San Francisco shows what happens when Spectacle-style nightlife meets demographic and economic pressure.

Large, generalized club formats have struggled as population patterns and social habits shift. The result isn’t the disappearance of nightlife, but a reduction in the viability of broad, mainstream Spectacle venues.

Markets like this expose a key truth: Spectacle requires the right ecosystem (population flow, tourism, and nightlife culture density) to remain sustainable.

Lesson: Without structural support, Spectacle struggles to maintain gravity.

What Scale Changes

When Spectacle scales to this level, the rules of nightlife shift.

1. Programming Becomes High Stakes

In smaller scenes, a soft lineup might dent a week. At industrial Spectacle scale, one weak booking can impact staffing efficiency, beverage forecasts, and margin performance in a single night.

Talent becomes a cost center that must perform like an asset.

2. Operating Costs Reshape Risk

Between talent fees, production crews, technical systems, security, and host teams, the cost structure resembles event production more than traditional bar operations.

Profitability depends on volume, pricing power, and consistent demand. This model rewards scale, and punishes inconsistency.

3. Marketing Becomes Infrastructure

Promotion is no longer a tactic, it’s a crucial system.

Hosts, promoters, influencer networks, partnerships, and digital campaigns function as a distributed sales and awareness engine. Without it, the machine stalls.

4. The Middle Gets Squeezed

At this scale, the market tends to split into true Spectacle venues, and everything else.

Mid-sized concepts that borrow the look without the engine and gravity often struggle to justify their position.

The Trade-Off of Spectacle at Scale

Industrial Spectacle Nightlife delivers destination pull, global brand visibility, massive revenue potential, and talent relationships that feed future programming.

However, this scale also compresses cultural cycles.

When production value rises everywhere, differentiation must move faster. Trend lifespans shorten, talent dependence deepens, and fatigue sets in more quickly if the experience feels interchangeable.

The more nightlife behaves like industry, the less room there is for cultural ecosystems that are slower to grow to define the mainstream.

The Counterweight: Scene Nightlife in the U.S.

Even in the U.S., Spectacle isn’t the whole story. If Spectacle represents nightlife as industry, Scene represents nightlife as cultural infrastructure.

Further, Scene nightlife isn’t limited to “small” or “secondary” markets, it’s simply the counterweight.

In places like Brooklyn, Chicago, and Detroit, Scene Nightlife operates on a different economic model. The model is defined by lower production arms races, deeper musical or cultural identity, and repeat behavior driven by belonging rather than visibility.

However, these spaces aren’t anti-Spectacle. Instead, they simply monetize a different currency: loyalty rather than volume.

This is the same structural split visible in Canada (and elsewhere), just with greater economic extremes on the Spectacle side in the U.S.

Chicago: Scene as Heritage and Habit

Chicago operates on deep musical lineage and neighborhood ecosystems. House music culture, live music venues, and genre-driven nights create repeat behavior grounded in identity, not production scale.

Chicago’s nightlife isn’t built around Spectacle-motivated spikes, it’s built around weekly rhythms that feel owned by the community.

This is where I first experienced nightlife, from the city’s biggest and most (in)famous nightclubs to goth and industrial bars, and everything in between. Chicago’s Scene Nightlife shaped a significant portion of who I am today.

Detroit: Culture Over Flash

Detroit remains one of the clearest examples of Scene logic. Techno heritage, intimate venues, and music-first environments make nightlife feel participatory rather than performative.

The value isn’t in flashy visual production. In Detroit, the value is in credibility.

Brooklyn: Scene at Urban Scale

Brooklyn demonstrates how Scene can operate at significant size without losing identity. Music-driven venues, warehouse-style events, and culturally specific nights build followings based on trust and consistency.

Brooklyn shows Scene doesn’t mean small. The reality is that Scene Nightlife in Brooklyn is anchored in culture first, scale second.

Portland: Micro-Scene Density

Portland thrives on personality-driven nightlife: themed venues, alternative events, and subculture-specific programming. These rooms rarely compete on spectacle; they compete on character.

This is nightlife designed for people who already know why they’re there, who want to be present, and who value experience over exposure.

Denver: Experience Reframed

Denver shows how Scene evolves with guest behavior. Social events, live music, and alternative nightlife formats emphasize connection, pacing, and community over traditional late-night spectacle.

Here, nightlife behaves less like a production and more like shared experience infrastructure.

What This Means for Operators

When considering starting a nightlife venue, the most important decision by operators isn’t design style, it’s business model identity.

The Spectacle Nightlife model operates on ROE: return on event. Scene Nightlife operates on retention. One monetizes attention in spikes, the other builds gravity that compounds over time.

Dimension Spectacle Nightlife Scene Nightlife
Economic Driver Event revenue spikes Repeat visit frequency
Financial Logic Return on event Retention/Lifetime value
Guest Motivation Visibility, energy, occasion Belonging, familiarity, identity
Programming Model Big nights, headline draws Consistent cadence, trusted rhythm
Risk Profile High volatility Lower volatility, slower growth
Marketing Focus Momentum and reach Community and trust
Gravity Source Hype cycles Habit formation

If You’re Playing Spectacle at Scale:

You are in several businesses at once: the event business, the talent business, and the luxury access business.

To ensure you succeed in Spectacle Nightlife, you need capital depth, programming pipelines, partnerships, and risk tolerance.

This is a high-reward, high-volatility model.

If You’re Not:

Attempting to replicate Spectacle aesthetics without Spectacle economics is incredibly dangerous.

Most markets can’t support industrial-scale nightlife infrastructure. Therefore, following the logic, many are better suited to Scene logic: identity, community, programming cadence, and repeat behavior.

Clarity on how to execute the Scene Nightlife model will help an operator create gravity (the invisible force that pulls the right guests back, again and again).

The Bigger Picture

The U.S. demonstrates what happens when Spectacle Nightlife reaches full economic maturity.

It’s impressive, there’s no doubt it. I’ve witnessed the evolution and industrialization of nightlife in Las Vegas firsthand for nearly two decades.

It’s engineered. Successful Spectacle Nightlife venues are systemized fully, with ruthless precision; nothing is left to chance.

Importantly, it’s also profitable. There are venues that boast nine-figure revenue generation annually.

However, it also makes the defining divide clearer than ever: nightlife today is built either for scale and visibility or depth and belonging.

Operators who understand which business they’re really in—and stop pretending they’re in both—are the industry leaders positioned for longevity as the economics of going out continue to evolve.

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A bar and restaurant with very few guests but many empty tables, chairs, and barstools.
by David Klemt David Klemt No Comments

The Public Has Spoken: How Guests View Bars and Restaurants

A few weeks ago, a popular bar and restaurant in Toronto closed its doors after more than 25 years in business.

Not quietly. Not without attention from local PR. And not without commentary from the public online.

What followed wasn’t just nostalgia or sadness. It was a wave of blunt, uncomfortable public opinion, with comments that should stop every operator in their tracks. Comments such as:

“Bars and restaurants are a cultural wasteland.”
“Not surprised. Kids don’t drink anymore.”
“Why pay $25 for a burger and fries?”
“I can’t afford to go out anymore anyway.”
“Going out is a waste of money. I can cook better at home.”
“Charge less and you’d still be open.”

These weren’t trolls. These were guests (or potential guests). This is a trend we are seeing on many other closure announcements.

Every day, consumers are starting to react honestly to what dining out now feels like to them.

Whether operators like it or not, there is a perception problem that the hospitality industry must confront head-on.

by Doug Radkey

A bar and restaurant with very few guests but many empty tables, chairs, and barstools.

Image: Canva

Operators Must Reinvent the Hospitality Industry

This isn’t just Toronto. It’s everywhere.

Across Canada, the United States, the UK, Western Europe, Australia, and even parts of Mexico, the same themes are emerging: demand still exists, but tolerance is shrinking. Guests are no longer willing to blindly accept higher prices, inconsistent experiences, or unclear value.

Recent data paint a sobering picture:

  • Canada is projected to see roughly 4,000 net restaurant closures in 2026, following a “bloodbath” of approximately 7,000 closures in 2025 (Dalhousie University’s Agri-Food Analytics Lab)
  • Over 86 percent of consumers say they plan to cut back on dining out due to high costs.
  • Input costs for food, labor, rent, and supplies have increased 20 to 30 percent year over year.
  • Many small independent operators, already running on razor-thin margins, are the most vulnerable.

In the UK, net closures continue, though the pace has slowed.

In Europe, bankruptcies in accommodation and foodservice jumped more than 20 percent in 2025.

Australia has seen one of the highest closure rates in hospitality relative to other sectors.

The US looks more stable on paper, but that stability masks aggressive adjustments in casual dining and a widening gap between winners and everyone else.

Mexico remains growth-oriented, but performance is uneven and increasingly value-sensitive.

This is not a localized issue. This is a structural issue, and requires a reset for the industry as a whole.

The Calm Before the Storm

Here’s the part that confuses people.

Just months ago, many headlines talked about recovery, stabilization, and momentum. Many articles boasted about new records in revenue. But as we always say, revenue is a vanity metric.

So what happened? Well, while the perception was about recovery, the fact is, it was just the calm before the storm.

Many operators were surviving on deferred debt, temporary relief programs, optimism, and sheer willpower. Balance sheets were stretched. Lease terms were aggressive. Margins were compressed but ignored. Now, reality is catching up to many operators.

Our working theory is this: This era may become the largest period of restaurant closures in modern history. Not because people stopped eating out, but because years of inflated optimism, weak unit economics, and bad financial discipline finally collide.

The market isn’t cruel, it’s just indifferent.

How the Public Actually Sees the Industry Right Now

This is where operators need to listen more than they talk.

From the guest’s perspective, dining out is judged through a simple lens for most:

“Is it worth it?”

That’s it.

Guests are not anti-bar or anti-restaurant; they are anti-disappointment.

They still want experiences. They still want social connection. They still want great food and drink (and yes, even alcohol). And, of course, they want hospitality.

But what is happening is they are rationing their frequency and raising their expectations.

Across markets, several narratives dominate:

  1. “Dining out costs too much for what you get.”

Affordability is the loudest theme. Inflation, tariffs, and prices rose fast, portions are often viewed as shrinking, and consistency in service has slipped. Guests don’t just feel sticker shock; what they are feeling is uncertainty. They don’t trust that the experience will justify the bill.

  1. “Tipping and surprise charges are out of control.”

Tip fatigue is now mainstream. It’s in the media. Guests are sharing screenshots of their bills on social. People are frustrated by auto-gratuities, hidden service charges, and unclear checkout moments. The final bill often feels disconnected from the experience they just had.

  1. “I’m cutting back, but I still want real nights out.”

This is critical. Again, guests aren’t quitting bars and restaurants; they are choosing moments. Routine dining is being replaced by occasional, intentional experiences. When they do go out, they want it to feel special, even if it is not a typical special occasion. Operators need to fight for that earned dollar more than ever before.

  1. “Value wins. Convenience gets questioned.”

Convenience still matters, but tolerance for fees is collapsing. Delivery, once a savior (particularly during the pandemic), now carries a perception problem. Guests are questioning all-in costs and choosing where value feels honest, even when it comes to convenience.

  1. “I feel bad for operators—but I won’t overpay forever.”

There is an element of sympathy, but not blind loyalty. Understanding cost pressures does not equal unlimited patience. However, the public still doesn’t understand the economics of the industry. Of course, that begs the question: Should they have to?

In short, the public still wants bars and restaurants, but they want proof. They want proof of value, proof of consistency, and proof that the cost makes sense for them.

Where Operators Went Wrong

This is the hard part.

Many closures were not food or beverage problems. They were not service problems or not demand problems. What were they? Strategy problems, or what we refer to as strategic clarity problems.

Too many operators:

  • built concepts without clear strategy and value ladders;
  • raised prices without visibly improving the experience;
  • allowed menus to sprawl, increasing labor and waste;
  • operated with thin or negative margins and called it “temporary”; and
  • treated leases and debt as fixed realities instead of negotiable strategy.

The middle of the market, particularly casual dining, has been hollowed out. Legacy QSRs are fighting traffic declines and digital fatigue. Only a handful of unicorn brands are truly winning at scale.

Being busy is no longer enough. Neither is just being liked. Being open for 10 or 15 or more years is no longer a shield for your brand, as we saw at the start of this article.

Consumer Education Starts with Operator Discipline

As I alluded to a moment ago, guests don’t understand restaurant economics—and they shouldn’t have to. It’s not their job to subsidize inefficiency or poor planning.

Consumer education will not come from lectures or defensiveness. It will come from intentional design. When the word “value” is used, the industry must remember that it does not mean “cheap.” “Value,” to most guests, means “I understand what I paid for, and it was worth it.”

Winning operators are doing a few things differently:

  • Creating clear value ladders on the menu. Entry items that feel generous. Mid-tier bestsellers that anchor frequency. Premium items that sell identity and margin.
  • Engineering portions and prep so guests feel abundance in the right places while margins are protected behind the scenes, which takes planning and strategy.
  • Pairing price increases with visible improvements in speed, cleanliness, hospitality, or consistency. Being intentional with onboarding, training, and culture.
  • Eliminating billing friction. Fewer surprise fees. Clear compensation models. Simple, human scripts at checkout while still providing frictionless payment methods.

The goal is not to race to the bottom, it’s to rebuild trust for the consumer’s earned dollar.

The Real Estate and Balance Sheet Reckoning

Many recent closures weren’t hospitality failures. They were financial failures. It was the period of rent structures, debt servicing, and cash flow timing.

Operators must treat the lease and balance sheet as core strategy, not background admin. That means you should become disciplined about the following:

  • Negotiate harder than you are comfortable with. Rent structure and tenant improvements can make or break the business before the first guest arrives.
  • Build a real cash flow plan: 90-day cash runway targets, weekly dashboards, and a contingency action plan for slower weeks.
  • Price for reality. If your model only works at “perfect” sales, it is not a model, it is hope.

Realistic Opportunities Still Exist

Despite some of the negatives, there is plenty of room to win. The opportunities are just more specific.

  • Focused fast-casual restaurants and QSRs with a strong value story continue to shine. Simple menus, fast throughput, and a reason to believe.
  • Small-footprint, high-productivity concepts. A footprint of 1,200 to 2,500 square feet with disciplined labor, high sales per square foot, and lower build-out costs can outperform larger venues.
  • Occasion-based concepts. Places built for specific moments like brunch culture, late-night, celebrations, and business lunch, where the guest is not comparing you to cooking at home.
  • Hybrid revenue models. A restaurant that also has a catering engine, packaged goods, a market component, a chef’s counter, or private events that deliver add-on experiences.
  • Operational turnarounds and acquisitions. In a churn cycle, buying a distressed asset with good bones can beat building from scratch, if you know how to fix the model.
  • Neighborhood loyalty plays. The public is cautious; become the trusted local go-to and you can win with frequency and reputation, even without hype.

This is not about creativity dying. In reality, it’s about creativity being protected by fundamental discipline.

Design Hospitality for a More Skeptical Guest

So, where do we start? Let’s look at the guest journey first. The first five minutes matter more than ever.

  • Improve the arrival sequence: greeting time, seating clarity, and “what happens next” cues.
  • Upgrade service pacing and check-back timing so guests feel cared for without being interrupted.
  • Ruthlessly remove the things people complain about online: noise management, restroom cleanliness, waitlist confusion, cold food, and delayed drinks.

Look for patterns during the entire guest journey: from awareness to bookings/ordering, from arrival to experience, from payment to post-visit experience.

Shift from Marketing to Conversion Systems

With consumer pullback, attention is not the problem. It’s conversion and frequency that are the culprits.

  • Own your best channels: Provide search and AI-focused profiles, reviews, email and SMS, and a simple loyalty or bounce-back offer that drives the much-needed second visit.
  • Sell occasions, not just items. Give people reasons to choose you this week, such as date night sets, lunch bundles, and fixed-price midweek menus. Curate a memorable experience that has a trackable ROI with guest data capture.
  • Build two off-premise lanes that make money (revenue and profit), such as catering for offices and small events, and pickup bundles that do not collapse food quality.

The New Definition of Winning

Moving forward from here, winners will not be the loudest or trendiest. The winners will be the operators who:

  • deliver a clean, honest value promise;
  • eliminate friction at all guest touch points;
  • run tight systems with both people and technology;
  • build consumer trust through service consistency;
  • know their numbers better than their accountant; and
  • create experiences that guests feel are worthy of leaving home to try.

This is why strategic playbooks and guidance matter more than ever. Not templates, not blind optimism, but real playbooks and guidance. Frameworks that integrate market validation, financial stress-testing, operational discipline, brand positioning, and leadership execution.

What New Entrants Must be Prepared For

This is still a great industry to enter, but the bar is higher. You need more money, more discipline, and more clarity on your lane within the industry. Building a legacy in this industry is still possible.

You must be prepared to navigate the following:

  • Slower ramps: Assume early on that it may take longer to stabilize sales and team performance, and fund that slower ramp up accordingly.
  • Higher operating precision: Guests notice inconsistency faster, and they do not give many second chances. Therefore, building intentional systems early in the process is a non-negotiable.
  • A tougher labor environment: Hiring is not the hard part; retention, training, and performance management are the real challenges. Build your brand on people, processes, and profit.
  • Vendor volatility and margin compression: Your best protection is menu engineering, purchasing discipline, and systems that control costs and reduce waste.
  • Real estate risk: A “great location” can still fail if the lease structure is wrong or the space forces too much labor.

That is exactly why the KRG Roadmap exists.

Most hospitality failures don’t happen after opening, they happen when clarity is skipped. The KRG Roadmap helps you validate readiness, numbers, and sequencing before the pressure begins.

The KRG Roadmap gives you an experienced strategic partner early, helping you think clearly, validate assumptions, and move forward without second-guessing every decision.

The KRG Roadmap clarifies if you are truly ready: financially, operationally, and personally. It defines what your project will actually cost in today’s market. It outlines what comes first, what comes next, and what can wait. And it answers what life looks like before and after opening.

Most importantly, the KRG Roadmap is designed to create a predictable outcome for you as a new or seasoned operator looking to start, stabilize, and scale in this ever-changing industry.

The Final Thoughts

This is still a great industry but the bar is higher than ever.

The good news is this: there is enormous opportunity for those willing to reinvent. Not by guessing better, but by planning better. Stress-testing faster. Executing with both intention and discipline.

The public hasn’t abandoned hospitality, they’ve just raised the standard of what they expect.

The question for operators is simple: Are you listening?

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Clear glasses filled with tea, served from a silver teapot at a restaurant
by David Klemt David Klemt No Comments

Tequila may Drive These 2026 Trends

Tequila may Drive These 2026 Trends

by David Klemt

Clear glasses filled with tea, served from a silver teapot at a restaurant

Is there alcohol in that teapot? Maybe.

While some of us continue to cross our fingers that tequila will have their year as the top spirit, other similar sips may rise up in 2026.

One can argue that tequila finally clinched the Top Spirit crown in the US and made 2025 its year. After all, it showed the fastest growth of any spirit last year.

Further, some sources report that tequila generated more revenue than any other major category in the US. Per reporting, premiumization is believed to be a major driver of tequila’s 2025 success.

However, other sources report that vodka still holds the throne due to volume sales. It probably won’t shock a single person that Tito’s holds the number one spot as 2025’s top-selling brand.

In Canada, beer earned the top spot by overall market share. However, Canadian whisky led in 2025 as the top spirit, though tequila garnered notable interest.

Meanwhile, two spirits similar to tequila may finally have meaningful moments in 2026 as vodka and the world’s most-famous agave spirit battle for the title. If Datassential and Nation’s Restaurant News are accurate in their predictions, raicilla and sotol may finally become even more well known to consumers this year.

What is Raicilla?

This agave spirit has been produced in Jalisco, Mexico (for the most part), for at least three centuries. And yet, it wasn’t granted its own Denominación de Origen (Designation of Origin, or DO) until 2019.

Authentic raicilla can only be produced in 16 municipalities throughout Jalisco, and, for some reason, one municipality in Nyarit, called Bahía de Banderas.

There are essentially two regional types of raicilla, de la costa and de la sierra. As the names imply, the former are coastal raicillas, and the latter are from mountainous areas.

Some varieties of raicilla will be familiar to tequila drinkers: joven, reposado, and añejo. There are also varieties that have been aged or matured in glass, abocado (infused raicilla), and artisanal double-distilled raicilla.

Unlike tequila, which can only be made from Blue Weber agave, raicilla is made from several different types of agave. Intriguingly, most raicilla is made with wild agave. The reason is simple: raicilla production is nowhere near the scale of tequila, so for the most part, producers don’t need to cultivate huge fields of agave.

Generally speaking, there are two primary approaches to cooking agave for raicilla, resulting in different flavor profiles. De la sierra producers tend to cook the agave above ground. Conversely, de la costa producers mainly utilize underground or pit ovens.

So, de la sierra raicilla usually doesn’t have smoky notes like mezcal, whereas de la costa raicilla is more likely to share that profile. Generalizing again, raicilla is characterized most often as being more floral and vegetal than tequila and mezcal. Really, a raicilla’s flavors and aromas are highly dependent on terroir.

What is Sotol?

Contrary to a common misunderstanding, sotol isn’t derived from agave. One common thread connecting tequila and sotol is the fact that they’re both traditional Mexican distilled spirits.

Another similarity is the production method: piñas are harvested and cooked, then fermented and distilled.

However, it’s a plant known as Dasylirion that’s used to produce sotol. Commonly known as “desert spoon,” this plant is a member of the asparagus family, as is agave. This may be what leads some to believe that sotol and tequila are both agave-based spirits.

Like tequila and raicilla, sotol is protected by a DO. This means true sotol can be produced exclusively in the Mexican states of Chihuahua, Coahuila, and Durango. It must be noted, though, that there are producers in Texas “don’t recognize” the DO and bottle what they call sotol.

A detail that may appeal to more sustainability-minded guests: sotol production is considered more eco-friendly in comparison to tequila and raicilla. When harvesting desert spoon for sotol, the roots aren’t dug up, meaning a single plant is capable of producing several bottles of sotol over its lifetime.

Desert spoon piñas are cooked in an earthen pit, and terroir is a factor. Depending on the region—desert, forest, or prairie—a sotol will have different flavor and aroma profiles.

For example, a forest sotol may have notes of pine, eucalyptus, and mushroom. In contrast, a desert sotol may be characterized by leather and pepper. Sotol is complex and will keep the adventurous engaged for quite some time.

How can Operators Capitalize?

One of the most effective ways to introduce guests to raicilla and sotol is to leverage the undeniable and seemingly unstoppable popularity of tequila.

And while it’s fun to nerd out over production, it’s likely a better idea, initially, to taste guests on tequila, raicilla, and sotol. While you’re there, you can also include mezcal.

Particularly notable is NRN itself predicting sotol as a trend of its own this year. Further, Datassential has identified raicilla as a trend in their own report.

Of course, there are also some compelling 2026 trend predictions you can leverage with these two traditional Mexican spirits.

Both raicilla and sotol are more than capable of standing in for tequila and mezcal in cocktails. However, raicilla can also tag in for gin, and sotol can act as substitute for gin and vodka.

Off the top of my head, raicilla or sotol Margaritas and Negronis should appeal to a wide range of guests.

This brings me to a simple trend that NRN predicts may take off in 2026: smaller cocktails.

Think (and Price) Small

That’s it; it’s that simple. People seem to be drinking less, not just in frequency but in ABV.

So, it may behoove operators to offer smaller cocktails, accompanied by appropriately reduced prices. This means the drinks are priced appropriately rather than offering discounts in the hopes of driving traffic.

Not only does this move, when intentional, speak to a current shift in guest imbibing behavior, and appeals to those who want to go out to bars and restaurants but don’t want to spend much.

The New Happy Hour

This is where a few trends converge. According to Datassential, “teatime is the new happy hour.”

And per The IWSR, playfulness may also take hold in 2026. I’m sure you can see where this is going.

In Datassential’s view, teatime rather than traditional happy hour gives operators more leeway in terms of dayparts. Noon, early afternoon, early evening, brunch… It’s all on the table, and there isn’t confusion around start and stop because it’s not referred to as a happy hour.

It also allows operators to offer tea-based cocktails made with raicilla and sotol (or any other spirit), and low- and no-ABV tea drinks. Again, this speaks to a range of consumer behaviors and expectations.

The Three Ps

Whatever trends operators choose to pursue this year, their decisions must be intentional.

That means viewing them through the lenses of People, Processes, and Profits.

People: Do we have the right people in place in the right roles? Are we serving our guests to the best of our abilities? Team member or guest, are we truly treating everyone with respect and gratitude?

Processes: How often are we reviewing each operational element? Are we reviewing our menus at regular intervals over the course of 12 months, or are we doing this annually (or not at all)? How are we approaching our pricing? When was the last time we reviewed and tested each and every one of our systems?

Profits: Total sales are great, but are we making money? As Doug Radkey, president and principal consultant of KRG Hospitality says, “Sales are a vanity metric. Profits tell the real story.” Do we know our numbers? Are we controlling costs? Do we make pricing and labor decisions proactively and strategically, or are we panicking and reacting without careful consideration?

Those are by no means all of the questions we need to ask on a regular basis, but they’ll give operators a solid baseline.

Image: Davey Gravy via Unsplash

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KRG Hospitality president and principal consultant Doug Radkey on stage with his fellow panelists at Bar & Restaurant Expo Denver 2025
by David Klemt David Klemt No Comments

The Real Cost of Business

The Real Cost of Business: What Independent Operators Must Do to Win

by Doug Radkey

KRG Hospitality president and principal consultant Doug Radkey on stage with his fellow panelists at Bar & Restaurant Expo Denver 2025

On stage at BRE 2025 in Denver, Co.

We need to get much more comfortable having uncomfortable conversations about the reality of being a hospitality operator these days.

On a recent trip to Denver, I had the privilege of joining Ashley Bray, Chef Adrianne Calvo, and Lauren Barash on stage at The Hospitality Show and Bar & Restaurant Expo for a conversation that every operator needs to have.

The topic and panel title was “The Real Cost of Business: Economic Pressures & Policy Shocks for Independent Operators.”

This session wasn’t theory. It wasn’t sugar-coated optimism.

This session was raw, real, and filled with straight talk about what’s actually happening across the hospitality landscape right now.

And it was exactly the kind of conversation this industry needs more of, because let’s be honest: today’s operators aren’t just fighting one battle.

They’re fighting them all.

The Stacked Deck: What’s Hitting Operators Right Now

It’s no secret. Tariffs are up. Labor costs are up. Packaging and product costs are up. Rent is up.

And consumer spending? It’s currently on some shaky ground.

Margins continue to be thin for most operators, and while these operators are navigating inflation, interest rate hikes, and volatile supply chains, they’re also facing the human tolls: fatigue, burnout, and turnover at every level.

But here’s the thing: this industry is not broken. It may be bruised, and it may be tired. But it’s resilient.

The bigger problem? It’s too reactive. And reactivity is what often kills profitability.

Hospitality is built on anticipation, such as reading the room before the guest even realizes what they want. But too many owners have lost that skill.

Instead of leading, they fight fires. Rather than anticipate, they react.

To win in this era, you need a playbook supported by clarity, not chaos.

Back to the Fundamentals of Hospitality

Let’s start here, because it’s something I said on the panel. I’m going to keep saying it: Operators need to get back to the fundamentals of hospitality.

Hospitality is not a product, it’s a performance. It’s a feeling. Hospitality is how people are made to feel when they walk through your door.

This is a people-first business. This is a people-over-profits business.

That’s your anchor.

When operators start chasing trends instead of refining fundamentals, they lose sight of what this business is really about:connection.

The businesses that are navigating the challenges and winning right now aren’t necessarily the ones spending the most or cutting the deepest. They’re the ones doubling down on service, culture, and consistency.

Operators confronting today’s challenges successfully have strategic playbooks, onboarding systems, the right tech stack, SOPs, and leadership frameworks in place. Their well-developed systems turn daily operations into muscle memory.

That’s the foundation.

Lead with Strategy and Anticipation

One of the most powerful themes from our conversation was about mindset.

Operators who win in this climate are those who lead with strategy, not emotion.

They’re also the operators who anticipate challenges instead of just react to them.

It’s not strategic to wait for your accountant’s monthly report to tell you where you stand. By then, it’s too late.

You need to have real-time visibility into your numbers, your labor productivity, your inventory, and your guest behaviors.

That’s how you lead with anticipation rather than panic.

The right strategy doesn’t live on a whiteboard, it lives in your systems. It lives in your team meetings. It lives in the mindset you reinforce daily.

If your business only moves when you do, you don’t have a strategy, you have stress-induced operations.

Data is the New Cash

Here’s a truth that every operator should be repeating: Data is just as valuable as cash.

In a volatile market, your ability to make decisions quickly—based on evidence, not instinct—is your competitive edge.

You should know your key metrics at all times:

  • Guest frequency.
  • Average spend per guest.
  • Labor efficiency.
  • Food, beverage, and prime costs.
  • Revenue and profit per square foot.
  • Marketing conversion.

If you can’t track these easily, it’s time to upgrade your tech stack.

Technology shouldn’t stress you out, it should simplify your life. The tech you trust to help you run your business should help you see clearly.

It’s simple: When you understand your data, you control your business instead of being controlled by it.

Menus Built with Intention

Another powerful part of our discussion was about menus. During times of uncertainty, your menu is both your marketing strategy and your financial engine.

Here’s the shift: You need to develop your menu strategically. Focus on what sells, what tells your story, what aligns with your guest, and what aligns with your financial obligations.

Every menu item should have a purpose. Every ingredient should do double duty.

Have a menu of 12 to 15 items that are high-impact items.

Use storytelling to create perceived value. Guests don’t just buy what’s cheapest, they buy what feels meaningful to them.

That’s how you maintain profitability without discounting yourself into irrelevance.

As I said during the panel, “Focus on the guest experience first,” and “sales are a vanity metric. Profit tells your story.”

Perception of Value Without Discounts

Discounting can become a slippery slope. It’s a tactic that has closed more restaurants than it has saved.

You don’t need to lower your price to drive traffic or raise perceived value. Instead of discounting, you need to improve your storytelling.

Bundle thoughtfully. Offer curated experiences. Create tiered packages. Add personalization.

A guest who feels understood will spend more, and return more often.

Discounts train guests to expect less from you; experiences train them to expect more of you.

That’s the difference between a transactional business and a memorable brand.

Build Around People, Processes, and Profit

It always comes back to this: Your people, your processes, and your profit.

If any one of those three is off-balance, your business becomes fragile.

Strong operators know how to hire for values, not just skill. They know how to train through systems, not emotion. They know how to communicate relentlessly and delegate with trust.

That’s not “soft leadership,” that’s a non-negotiable to win in this industry.

It’s also the reason some independent operators are scaling to multiple venues while others are still trapped in the trenches. The old adage remains: Work on your business, not in it.

Culture: Your Ultimate Competitive Advantage

Labor is expensive. Recruiting is hard. Retention is harder.

But the best operators aren’t competing on wage alone, they’re competing on culture.

If your business doesn’t feel purposeful to your team, you’ll never build staff loyalty.

You need to make your staff experience more than a paycheck. Your staff experience is just as important as your guest experience.

Show them the vision. Create career paths. Celebrate wins. Encourage ownership thinking.

And here’s something I say often: You don’t need a “family.” You need a champion team; people who want to win together.

Create stay interviews, not just exit interviews. Find out why your team loves working for you, and document their feedback. Build engagement before burnout.

When people feel seen and supported, they become your greatest marketing engine. In fact, they become your brand ambassadors.

Leadership in a Time of Pressure

Leadership today requires a new kind of stamina.

Stop trying to control people; empower them. Don’t bark orders in the kitchen or on the floor; build alignment. In an age where stress levels are high and margins are thin, empathy is not weakness, it’s strategy.

The best leaders know when to listen, when to decide, and when to step aside. They know that delegation isn’t a loss of control, it’s the gaining of stabilization and scale.

If you want to build a high-performing culture, communication and accountability must be daily habits, not quarterly goals.

Clarity is the Currency of the Future

When you strip everything back—the data, the menus, the systems, the tech—what this conversation in Denver really came down to was one word: clarity.

Clarity around who you are, and what you offer. Clarity around your numbers, your guests, your team, and your future.

Without clarity, you drift. With it, you build momentum.

The operators who have clarity are playing offense.

They’re not waiting for the next trend, policy, or economic shift to tell them what to do. They’re already five moves ahead.

Intentionality in Every Decision

Another phrase highlighted during the panel was “being intentional.”

Intentionality is everything.

Every decision you make, from menu design to hiring to marketing, should serve a clear purpose.

Don’t do things because “that’s what everyone else does,” or “this is how we’ve always done it.” Those mindsets keeps you average.

You need to differentiate.

Every single touchpoint should feel deliberate. Each and every staff and guest interaction should reflect your values. Every operational decision should move you closer to your vision.

Operators who just chase volume lose vision; operators who chase clarity create longevity.

The Operator’s Wellness: You Matter Too

Here’s something I made sure to say on stage, and something I’ll keep repeating until it sticks:

You, as the operator, matter too.

You can’t lead effectively when you’re depleted, and you can’t make smart decisions when you’re burnt out. Make time for yourself.

The energy of an independent business starts with its owner and operator. If your energy is chaos, your team feels it. If your energy is grounded, they follow.

Hospitality demands everything from us, but it doesn’t have to take everything from you.

Remember, structure, boundaries, and recovery are leadership traits, not weaknesses.

From Chaos to Clarity

When you zoom out, the message from our session in Denver was simple:

The independent operators who continue to win move from chaos to clarity.

They have systems and strategy.

They anticipate rather than feel anxious.

Their costs are controlled, not cut.

They understand that technology isn’t replacing hospitality, it’s refining it.

Their numbers are balanced with narrative.

They know their financials before their accountant does.

They lead from clarity, not fear.

The 45-Minute Reality Check

We covered all of this, and more, in just 45 minutes. It was so impactful.

Because conversations like this aren’t just about sharing ideas, they’re about sparking a mindset shift across the industry.

This business is tough. It always has been.

However, when you step back, create structure, and move forward with intention, it becomes something incredible.

We’ve survived prohibition, recessions, and a global pandemic. We’ll survive this era too.

But not by chance, by design.

The Final Challenge

I’ll leave you with you with two questions. First, are you running your business from clarity, or from chaos?

Because the truth is, your numbers won’t lie. Your systems won’t lie. Your team won’t lie.

If you’re still chasing hours instead of strategy, still reacting instead of leading, still trying to outwork the problems instead of out-thinking them, you’re not ready for what’s coming next.

But if you’re ready to anticipate, adapt, and lead with clarity, then your future isn’t just secure, it’s scalable. The operators who build systems and culture today will be the ones setting the standard tomorrow.

The second question is, which type of operator will you be?

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Ditch Draconian Drink Development

Ditch Draconian Drink Development

by David Klemt

Hand throwing two red dice on a dark gaming table

This is not a viable business strategy.

As we enter the holiday season we need to reiterate that a single person can influence the bar and restaurant decision for an entire group.

Let me be even more blunt, now that I’ve got you here. As we head into 2026, I find it a bit shocking that we still need to address alcohol-free programming.

A recent trip to Colorado is putting this topic back in the spotlight for me. Pair it with menu programming for clients and I simply can’t let it go.

KRG Hospitality was in Denver for The Hospitality Show and Bar & Restaurant Expo 2025. President and principal consultant Doug Radkey spoke on a panel with chef and restaurateur Adrianne Calvo and chief marketing officer Lauren Barash.

While we were in town for the show, we attended other education sessions. One of these was “Trend on Tap,” which focused on beverage trends.

The entire panel was insightful, but something said by Miranda Breedlove, the national director of bars for the Lifestyle Division of Hyatt Hotels, really stood out to me.

To summarize, a single person—the non-drinker—has the power to decide which bar or restaurant a group chooses to visit.

Who, not Why

Let’s be clear about a crucial point: It doesn’t matter why someone has chosen to not consume alcohol.

A person may never drink alcohol. They may choose to forego alcohol for a month, week, or day. Someone may decide to stop consuming alcohol during a visit to a bar or restaurant.

None of that matters. What’s important is being respectful of that decision, being hospitable regardless.

One effective way of showing respect for that choice is giving more than a few seconds consideration to your zero-proof options.

In this situation, the who is more important than the why.

Who is the guest your zero-proof program is trying to reach? The guest who decides they want a zero-proof drink.

Why don’t they want to drink alcohol? It doesn’t matter. Why doesn’t it matter? It’s nobody’s business.

The only “why” relevant to this situation is, why are you taking the time to consider a well-crafted, zero-proof program? To be hospitable and serve all of your guests to the best of your ability. That’s good business in the hospitality business.

Which Sounds Better?

I’m going to present you with two options to consider.

Which sounds like a more enjoyable experience to you:

Option 1: Guests who want a non-alcohol drink are limited to water, soda, or juice in a bottle or can, or off the gun.

Option 2: Guests find a curated, zero-proof section on your menu, and experience the same service and presentation as guests who order low- or full-proof cocktails.

Of those two options, which seems like it delivers a memorable guest experience? Which option ensures a guest who doesn’t want to consume alcohol feels comfortable and valued?

I know I wouldn’t bother returning to a bar or restaurant that made me feel alienated rather than welcomed. And if I’m in a group of people, as Breedlove said, I can influence them to avoid that venue while we’re discussing where to go.

Rolling the Dice

Failing to develop an intentional, well-curated non-alc program is rolling the dice.

You’re rolling the dice on the guest experience. Rolling the dice on transforming first-time visitors into repeat guests.

And, in 2025, nearing 2026, you’re rolling the dice on your brand’s perception.

Sure, ten years ago or so the viability of zero-proof was debatable. Some operators and bartenders saw the value in appealing to guests, whether sober or sober in the moment, and treating them to the same experience as every other guest.

In the other camp, operators and bartenders who saw non-alc cocktails as a waste of time. I remember hearing bartenders say that making zero-proof drinks was pointless because they didn’t make the bar money, and didn’t make them tips.

However, it’s no longer debatable; refusing to be intentional about a zero-proof program for your bar or restaurant is bad business.

The proof is in the decision-making process. If the non-alcohol drinker can make the final choice for bar or restaurant selection for an entire party, it proves the importance of non-alc.

Not Done Yet

Breedlove made another excellent point that also relates to outdated thinking about beverage programs.

To paraphrase Breedlove, “batching” is not a bad word.

This is particularly true for high-volume bars. Likewise, it’s true of high-demand signature drinks that drive sales for a particular bar or restaurant.

As Breedlove said, if the drink won’t suffer, put your high-volume orders on draft. The reasoning is simple: your team likely can’t put out as many of a high-performing, high-volume drink to order as they can if it’s batched.

More of that popular, revenue-driving order going across the bar means more revenue, more tips, and reduced ticket times. Overall, it’s a win-win: better for the bottom line, and better for the guest experience.

And, as I’m sure you’ve put together, this can apply to your zero-proof menu. Have a killer non-alc Margarita? Put it on draft, save time in service.

The key to success, whether batching alcohol or non-alcohol drinks, is in the presentation. Give careful consideration to your ice program, glassware, garnish, and presentation so guests don’t feel shafted regarding the experience.

We’re having to adapt in hospitality once again. We need to make sure we’re moving past outmoded ways of thinking so we can move forward quickly and with strategic clarity.

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Excellence Fuels Influence in Hospitality

Excellence Fuels Influence in Hospitality

by David Klemt

The word "excellent" in a vintage script, superimposed over the image of a pint on a bar top.

Cool grabs attention. Good builds trust. And excellence? Excellence transforms your brand into an industry benchmark others want to emulate.

When someone recognizes a hospitality brand’s excellence, when they admire it, that means they respect how its team operates. They see consistency, character, leadership, and the brand’s aesthetic.

They see something that resonates with them. Something they’d recommend, talk about, maybe even want to copy to some degree. When a brand’s excellence is grounded in authenticity rather than performance, it becomes a serious competitive advantage.

The Five Traits of Excellence

When I first looked into these traits, they were described as “admirable,” or the characteristics associated with “admirability.”

However, I’ve had time to sit with these traits, and I feel it’s more appropriate to view them through the lens of excellence.

With that out of the way, research reveals five recurring traits of excellence (or admirability, if you prefer):

  • Attractive
  • Competent
  • Desirable
  • Friendly
  • Trendy

These traits represent perceived value. Not just operational performance, either. They’re tied to the vibe, confidence, and cultural relevance that set brands operating at a higher level—excellence—apart from the rest.

Attractive: First Impressions Still Matter

Let’s not pretend aesthetics don’t matter.

Attractive brands look the part. They photograph well. They feel polished. However, the polish goes deeper than surface level. The aesthetic is part of a greater brand alignment.

Branding communicates and supports identity. Design supports the experience. Everything feels intentional.

You don’t need marble countertops or $300,000 lighting installs to succeed. Yes, those can be fantastic details, but they don’t automatically lead to excellence.

What’s necessary is cohesion, confidence, and strategic clarity in how your brand shows up every day.

Look like you believe in your concept. Most importantly, just don’t look it, live it.

Competent: Show Your Mastery Without Flash

Competence is often invisible when it’s done right. On the flip side, it’s painfully obvious when it’s missing.

Competent brands:

  • run tight ops;
  • deliver consistent product and/or service;
  • empower their teams to handle problems before they escalate; and
  • communicate clearly, inside and out.

Guests and staff trust competent brands because they follow through.

It’s not about perfection. As Bruce Lee is quoted as saying, “If you are cursed with perfectionism, then you’re absolutely sunk. This ideal is a yardstick which always gives you the opportunity to browbeat yourself.”

Instead, it’s all about professionalism and developing leadership skills.

Desirable: Create Pull Without the Performance

Desirability isn’t just about being booked out or trending. I’m not saying those are problems; both are excellent goals to pursue.

What I’m saying is an even better goal is to become someone’s desired brand. You want to lead your business to the level of excellence that makes it the first that comes to mind when someone wants to feel seen, celebrated, cool, or impressed.

People want to be associated with desirable brands. This absolutely applies to hospitality businesses. Guests want to be wowed and motivated to post about your business. They want to host their friends at your spot. They want to bring dates to you and your team, to visit with their colleagues and clients after meetings.

But you have to blow them away with excellence and make your brand desirable.

Desirability shows up when your space aligns with identity. It’s when people say, “This feels like me,” or, “I fit in here.”

Friendly: Be Approachable Without Losing Edge

Hospitality can’t be excellent if it’s cold. Friendliness is the bridge between capability and connection.

In admired brands, friendliness isn’t a script, it’s embedded.

It’s how the hosts greet guests. How managers lead the floor, and how bar teams communicate under pressure. Friendliness, like excellence itself, is achieved by nailing every step and every detail.

Your team is a reflection of your brand’s personality, and leadership’s reinforcement of standards surrounding tone and attitude. Regardless of personality, friendliness needs to be a pillar of your brand; it’s a cornerstone of hospitality.

That doesn’t mean dulling your edge if you, your team, and your brand have one. In that case, it means balancing edginess with professionalism and being warm and welcoming.

So, make sure friendliness isn’t something you or your team fake. Just like believing in your own brand, your team needs to actually live hospitality.

Trendy: Be Culturally Aware, Not Chameleonic

Trendiness is tricky.

Do it well and you feel current. You and your team are plugged in, exciting.

Do it wrong? You feel desperate.

Excellent, admirable brands don’t chase trends, they curate them. Excellent brands set the pace rather than follow someone else’s.

These are the brands that understand what fits their DNA, and, perhaps more importantly, what doesn’t.

Think of trendiness as a signal that you’re paying attention and evolving but not forgetting who you are and losing your brand identity.

Excellence Attracts Talent, and Keeps It

It’s no secret this industry has a labor challenge. But what’s often missed is that excellence works like gravity on guests and on talent.

People want to work somewhere led by someone that gives them a sense of pride. They want to work somewhere that gets talked about for the best reasons. They’re eager to be part of a brand that provides them near-daily opportunities to say, “I helped build this.”

So, give that to them. Become the leader in your market with the team that others are eager to join.

When your brand is admired, recruiting becomes less about chasing candidates and more about filtering them. You attract people aligned with your mission, energy, and culture.

Even better? Admiration born of excellence drives retention; people stay where they feel proud, seen, empowered, and challenged.

Excellence Inspires the Next Generation

When you lead your brand to excellence, you’re not just running a business, you’re helping shape the future of hospitality.

Operators who work toward, achieve, and maintain excellence become case studies. They get quoted, referenced, and emulated.

And whether they know it or not, they spark ambition in others. They inspire the bartender who dreams of opening their own cocktail bar. The server who’s sketching out a fast-casual concept. They’re a mentor to the GM who eventually moves on in their hospitality journey and launches their own successful concept.

Excellent leaders turn staff into students, and transform students into operators, and the cycle continues.

That’s a legacy. That’s leadership. It’s one of the most underrated impacts of getting all of this right.

Why Excellence Drives Long-Term Value

Cool is magnetic. Good is reliable. Excellence is memorable.

Excellent brands get the press, the partnerships, and the loyalty that goes beyond convenience.

They attract talent that wants to grow with them, not just collect a paycheck.

Admired brands:

  • operate with integrity;
  • evolve with purpose;
  • communicate with confidence; and
  • stay consistent in chaos.

To that last point, an excellent brand’s standards are so concrete, so non-negotiable, that they’re capable of thriving in chaotic situation. In fact, they defeat chaos and learn from it.

In short, excellence leads whether it’s trying to or not.

Reflection Questions for Operators

  1. What’s one thing your brand does that genuinely earns admiration rather than just attention?
  2. Are your aesthetics aligned with your service culture?
  3. Do your team members feel proud to represent your concept?
  4. What trends have you adopted that actually fit your identity?

The Final Bite: Know Who You Are, Then Amplify It

Now that you’ve seen all three dimensions —coolness, goodness, and excellence—you’ve got a strategic lens most operators never even consider.

It may seem overwhelming to consider 19 traits and how they relate to your brand. Luckily, you don’t need to master all of them. What you need to do is lead with intention.

Know who you are, amplify that, and remember:

  • Cool gets them in.
  • Good keeps them in.
  • Excellence makes them talk.

Want to build a brand that lasts? Get intentional about how people perceive you, and how your team lives that perception every single shift.

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Good: Trust & Comfort Build Loyalty

Good: Trust & Comfort Build Loyalty

by David Klemt

The word "good" in a vintage script, superimposed over the image of a pint on a bar top.

Cool grabs attention because it’s magnetic and buzzworthy. But if you want people to come back and bring others with them, cool isn’t enough.

You need to be good.

However, when I say “good” I’m not talking about being nice, or offering competent service. This is hospitality; those are (or damn well should be) a given.

In hospitality, in this context, good is about emotional safety, reliability, and the kind of consistency that turns a first-time guest into a regular.

The best hospitality brands do more than just impress, they reassure.

The Eight Traits of Good

According to cross-cultural psychology research, eight traits consistently define what people perceive as “good” in others. We can apply these traits to brands as well.

I shared them earlier this year:

  • Agreeable
  • Calm
  • Conforming
  • Conscientious
  • Secure
  • Traditional
  • Universalistic
  • Warm

If cool is what gets guests in the door, good is what makes them feel welcome, seen, and safe enough to stick around.

Agreeable: Cooperative and Empathetic

Just as you can pick up on tension within moments of stepping inside a given venue, you can feel it when a venue is easygoing.

The team’s on the same page. The energy is collaborative. There’s a sense of mutual respect between staff and guests, and between team members and leadership.

Notably, however, being agreeable in hospitality isn’t about people-pleasing. In reality, it’s about creating a culture of empathy and professionalism.

When you step into such a venue you notice that hospitality isn’t forced, it’s practiced.

Calm: Clear-Headed Under Pressure

Calm hospitality environments feel better. They’re emotionally steady.

The pace may be fast, but the energy is measured, controlled, and confident. Guests pick up on this instantly, and so do team members.

When your culture is calm, you and your team don’t just survive a busy night, you all come together, thrive, and make it look easy.

Conforming: Reliable and Predictable (In the Best Way)

Let’s redefine “conforming.” When I use it in this context, I’m not talking about suppressing creativity. Instead, conformity is an alignment with expectations.

Guests return when they know what to expect. They come back when they trust that the experience will meet the impeccable standard you and your team have set every time.

It’s the culmination of onboarding, continuous training, non-negotiable SOPs, structure, and consistency.

Conformity, in this way, isn’t boring, it’s dependable.

Conscientious: Detailed and Purpose-Driven

Conscientious brands care about the little things. They’re organized, thoughtful, and consistent, and that shows up every shift in a multitude of ways.

It’s how the bar team garnishes each drink. How clean the bathrooms are kept. How team members communicate with each other, leadership, and guests throughout their shifts.

It comes through in your consideration of each and every touch point that guides the guest journey.

Conscientiousness builds trust. You’re delivering on the promise to your guests and your team that you don’t cut corners.

Secure: Safe, Seen, and Stable

Safety in hospitality isn’t just physical, it’s emotional.

Guests want to know that you’re going to take care of them because you respect them. You respect their decision to visit your venue, spend their time with you and your team, and spend their money inside your business.

Likewise, your team members want to feel protected, heard, supported, and empowered. To provide an example, I’ve made it clear more than once in articles and on the Bar Hacks podcast that I expect leadership to support team members. No, the guest isn’t always right. “The customer is always right” isn’t just an abused misquote, it’s an outdated sentiment any way you slice it.

I expect leaders to step in and handle all guest complaints; that’s a crucial part of the job. Do you want your team to believe in your concept? They had better be given proof that they should believe in leadership.

Security is built through:

  • clear boundaries;
  • steady leadership;
  • well-trained staff;
  • staff that feels cared for and respected; and
  • real accountability, regardless of role.

If your guests feel nervous or confused—and they will if that’s how your team feels—you’ve lost them.

Traditional: Grounded, Not Outdated

Tradition gets a bad rap in modern branding. Traditional values—community, respect, attention to ritual—are deeply comforting.

When used well, tradition creates familiarity and nostalgia, particularly at neighborhood spots, legacy venues, or family-forward brands.

And even modern, forward-thinking spots can lean on traditional service values without feeling dated.

Universalistic: Fair, Equal, and Consistent

This is where your hospitality values shine.

Universalistic brands don’t treat some guests better than others. They don’t ignore or dismiss certain demographics.

A universalistic hospitality brand operates from a belief that everyone deserves a great experience.

That belief, that value, creates equity. Equity creates trust.

Once you’ve earned that trust, you need to commit to keeping it. As the saying goes, “Trust takes years to build, seconds to break, and forever to repair.”

Warm: Friendly, Kind, and Human

Warmth is the final, and arguably most important, “good” trait.

Warmth shows up in tone, body language, follow-through, and how guests are made to feel the moment they walk in.

Anyone can serve someone. Warmth is what makes someone feel welcome.

Why “Good” Hospitality Brands Last

Good is often invisible. It doesn’t always get the hype but it builds return visits.

Goodness is what builds reputation, earns word-of-mouth referrals, and retains guests and team members.

Good brands become a reliable part of someone’s routine. They’re the go-to when friends visit from out of town. The default when someone asks, “Where should we go tonight?” They’re the first venue that pops into someone’s head when they think “date night.”

Reflection Questions for Operators

  1. Where does your team already show strength in “good” traits?
  2. Which of these eight traits does your guest journey express naturally?
  3. Which ones feel like gaps, and how could they be reinforced operationally?
  4. Are your brand values visible in your culture and your service, or are they just words on a website and inside an employee manual?

Up Next: Quantifying Excellence

In the final part of this series, we’ll unpack what it means to be seen as excellent, and how that perception drives brand equity, team pride, and long-term influence.

Because once you’ve nailed cool and good, excellence is what turns your brand into a benchmark.

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Cool: Magnetism Matters in Hospitality

Cool: Magnetism Matters in Hospitality

by David Klemt

The word "cool" in a vintage script, superimposed over the image of a pint on a bar top.

We all know what it feels like to walk into a cool space. The room hums, the lighting hits just right. The music, the people, the energy…it’s magnetic.

But when we talk about cool in hospitality, too often we’re referring to aesthetic alone: the vibe, the lighting, and the playlist, among other details.

The truth? Cool isn’t just visual. And it’s not trend-chasing.

Cool is a collection of behavioral traits. When those traits are intentional, the perception of cool becomes strategic. In turn, that magnetism becomes a strategic element.

The Six Traits of Cool

Cool can feel elusive, but it’s not mystical.

Cross-cultural research has identified six traits that people consistently associate with coolness.

They are:

  • Extraverted
  • Hedonistic
  • Powerful
  • Adventurous
  • Open
  • Autonomous

Let’s break them down, and apply them to hospitality.

Extraverted: Show Up and Stand Out

Cool brands don’t hide in the background.

They communicate clearly, loudly, and often. They show up on social and in the community. Cool brands own their tone.

However, they’re not loud for the sake of making noise. It means that they own the room without apology.

Think confident service teams, guest-forward experiences, and spaces designed for connection rather than just consumption.

Hedonistic: Make People Feel Good

Let’s kill the negative spin on the word “hedonistic” right from Jump Street.

In this context, it simply means “pleasure-oriented.”

Cool brands create experiences that feel good. Not just pleasant, memorable.

Drinks that hit flavor and presentation. Lighting that makes everyone look and feel attractive. Flow that feels frictionless.

This is about sensory impact. It’s why people will choose your place even if another spot has better prices or faster service.

Guests aren’t really buying food or drink; they can make either at home. They’re buying the feeling you, your team, and your venue gives them. In reality, they’re buying your cool, expecting it to reflect onto them.

Powerful: Influence, Not Ego

Power in a hospitality setting doesn’t mean dominating the scene.

For a hospitality brand, power means having influence. That influence makes guests feel like they’re somewhere that matters.

Power shows up when:

  • your venue sets trends instead of following them;
  • your team leads with confidence and autonomy; and
  • people talk about your space and brand when you’re not in the room.

A powerful brand doesn’t have to scream, it simply can’t be ignored.

Take the phrase, “real wealth doesn’t scream, it whispers.” Now, replace “wealth” with “coolness.” Do you believe someone when they loudly tell you that they’re cool? Or do you sense when they communicate it without having to say a word?

Adventurous: Show Some Edge

Cool brands take risks.

Try new menu items, new event formats, new collaborations. Don’t wait for permission, just do it.

However, keep in mind that risk and adventure don’t necessarily require recklessness. They simply require you to indicate, with confidence, that you’re willing to experiment publicly.

This could look like a pop-up collab with a neighboring venue. Hosting an event, a person, or a brand that’s never been seen or experienced in your market. Reinventing a tired night of the week with a totally new promotion.

Predictability is comforting, but adventure creates buzz. Be the buzz.

Open: Let the Culture In

Being open means staying curious to new ideas, influences, voices, and formats.

Guests notice when a brand is receptive, diverse, and dynamic. They reward that with their loyalty.

Openness in hospitality looks like:

  • Welcoming feedback, and acting on it.
  • Hiring for perspective rather than just experience.
  • Rotating menus or programming to reflect seasonality and community.

Cool doesn’t look the same in every city or concept. Openness helps you localize your identity without diluting your brand.

Autonomous: Lead with Vision, Not Imitation

The coolest brands feel like they were born fully formed,  even if we know the reality is messier and took years to perfect.

Why? Because they make decisions as themselves, not in response to what others are doing.

Autonomy shows up when your voice and values are clear across every touch point. When you stay consistent, even when competitors pivot. Your autonomy comes through when finally figure out what you’re not trying to be.

Hospitality is full of sameness. Cool stands out when it’s driven by clarity.

Why Cool Still Matters

Cool isn’t shallow, and it isn’t fleeting. Not when it’s rooted in these six traits.

Cool matters because it creates curiosity, conversation, and connection.

It’s what gets people to check you out, to take a risk and try you. That decision to try you is the first step to becoming a loyal guest, team member, or partner.

But remember that while cool can grab people’s attention and create energy, it’s not capable of creating sustainability on its own. You need systems in place to stabilize and scale.

A Few Reflection Questions

  1. What part of your guest experience feels truly cool right now?
  2. What parts feel tired, safe, or imitative?
  3. Which one of the six traits comes to your concept most naturally?
  4. Which one could you amplify intentionally this month?

Next Up: Quantifying “Good”

In the next installment, we’ll talk about the eight traits that make a brand feel good, the kind of hospitality that builds trust, reputation, and retention.

Until then, stay cool.

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Cool, Good, Excellent: 19 Defining Traits

Cool, Good, Excellent: 19 Defining Traits

by David Klemt

"Good. Cool. Excellent." Retro baseball jersey-style font superimposed over the image of a brick wall, bar top, and pint of beer

Cool gets people through your doors. Good impresses guests and keeps them coming back. Excellence inspires people to talk about you.

We throw around words like “cool,” “good,” and “excellent” all the time in this industry.

“Cool new spot.” “Good service.” “Excellent experience.”

But what do these terms actually mean when it comes to hospitality brands and strategy? More importantly, what do they mean to your guests, your team, and your community?

The truth is that perception is everything.

Cool. Good. Excellent. These aren’t just vibes, they’re measurable. If you’re not intentional about which of these traits your brand is projecting, the market will decide for you.

Let’s dig into the 19 traits that shape how your concept is perceived, trusted, and remembered.

Cool: The Magnetism Factor

Cool is what gets people talking. It draws guests in through a mix of confidence, curiosity, and charisma.

Researchers have identified six traits that consistently define cool across a multitude of cultures:

  • Extraverted: Social, talkative, and expressive.
  • Hedonistic: Oriented toward pleasure, excitement, and sensory experience.
  • Powerful: Assertive, influential, and bold.
  • Adventurous: Willing to take risks, and try new things.
  • Open: Curious, flexible, and adaptive.
  • Autonomous: Independent, self-driven, and unconcerned with conformity.

Sound familiar? These are the brands that pop off on social. The ones that get the influencer love, and that make guests feel seen.

You probably thought of a cool brand or two when you started reading this article. Hopefully, one was your own.

That said, there’s a catch: cool alone doesn’t carry a brand. It grabs attention, but without something deeper underneath, people move on. And they move on fast.

Good: The Retention Engine

If cool gets people through the door, good is what keeps them there.

The “good” brand traits are quieter, and that’s the point. They’re what make a concept feel dependable, thoughtful, and rooted.

There are eight of them:

  • Agreeable: Cooperative, empathetic, easy to work with, and accommodating.
  • Calm: Emotionally stable, composed, and clear-headed.
  • Conforming: Consistent, reliable, and willing to follow a structure.
  • Conscientious: Responsible, organized, and focused on detail.
  • Secure: Trustworthy, steady, and emotionally and physically safe.
  • Traditional: Grounded in shared values and norms.
  • Universalistic: Treats all people equally and fairly.
  • Warm: Friendly, kind, and welcoming.

Good brands don’t always make headlines, but they build habits. They’re the spots people go back to week after week. The places that make guests feel like regulars before they even are regulars.

Excellence: The Aspiration Layer

Cool is attention. Good is trust. Excellence? That’s respect.

When a brand is seen as excellent, it carries influence. It becomes a reference point, not just for guests but for peers, media, talent, and even future collaborators.

Five traits define excellence (or admirability):

  • Attractive: Physically appealing, well-designed, and aesthetically impactful/appealing.
  • Competent: Skilled, knowledgeable, and consistently excellent.
  • Desirable: Sought after, relevant, and aspirational.
  • Friendly: Approachable, kind, and human.
  • Trendy: Aligned with current culture without being performative.

Excellent brands don’t just do things well, they inspire.

19 Traits. One Brand. What’s Your Mix?

Let’s be clear: you don’t need to embody all 19 traits at once. You shouldn’t even try to do so. That would be overwhelming for you, your team, and your guests.

But you do need to know which of these traits your brand currently embodies, and which it should emphasize more intentionally based on where you are in your journey.

Here’s a way to think about it:

  • Goal 1: Focus your brand’s defining traits.
  • Goal 2: Boost foot traffic or hype (leverage coolness)
  • Goal 3: Improve retention, reviews, and culture (leverage goodness)
  • Goal 4: Increase brand equity, word of mouth, and influence (leverage excellence)

This applies internally, too. Are you hiring for culture fit? Think about the traits your current team exudes.

Launching a new concept? Choose the traits that will define it from Day One.

At KRG Hospitality, our clients undergo an exercise that helps them identify their values. In turn, this exercise helps them identify the traits that will define their brand long before they ever open their doors for the first time.

Final Thought: Brand Perception is a Strategy, Not an Accident

You’ve built a concept. A vibe. A brand. But your guests don’t just see what you say you are, they feel what you are.

They feel cool, or calm, or cared for. They notice when things flow or when they don’t.

Cool gets them in. Good keeps them in. Excellence makes them talk.

Get the balance right, and you’re no longer reacting to perception, you’re shaping it. And in today’s market, that’s one of the most valuable competitive advantages you can have.

To help you strike that balance, I’ve got three deep-dive articles coming over the course of the next three weeks. One about coolness, one about goodness, and, you guessed it, one focused on excellence. Cheers!

Image: Canva

Client Intake Form - KRG Hospitality

Four neon signs that each say "waiting" in various stages of being lit up
by krghospitality krghospitality No Comments

The Risk of Waiting Until the New Year

The Risk of Waiting Until the New Year

by Doug Radkey

Four neon signs that each say "waiting" in various stages of being lit up

Sometimes “waiting” means “waiting.” Too often, “waiting” means “…until it’s too late,” or “never”

It’s that time of year again.

The leaves are turning. The holidays are approaching. And everywhere you look, people are starting to say the same thing: “I’ll wait until the new year.”

They’ll wait to start the new habit.
To launch the business.
To fix the broken system that’s draining their energy.

But here’s the uncomfortable truth: waiting is one of the most expensive decisions you’ll ever make.

The Myth of January

It seems that January has become society’s magical “reset” button.

This is when people start going to the gym more (or at all). It’s when aspiring entrepreneurs tell themselves they’ll be ready to start. When current operators say the holiday season is too busy.

It’s funny that somehow the turn of a calendar gives them permission to begin.

But in business—and in hospitality in particular—the market doesn’t wait. The competition doesn’t wait. Staff and guests don’t wait.

And the risk of waiting isn’t just lost time, it’s lost opportunity and lost momentum.

The Numbers Don’t Lie

Let’s look at some numbers.

On October 1st, you still have 25.21% of the year left.
By November 1st, you still have 16.71% left.
And on December 1st, you still have 8.49% left.

That’s not scraps. That’s a quarter, a sixth, or even a full month of your calendar. This is time you’ll never get back once it is gone.

So ask yourself this question: Do you really want to burn that much equity of time waiting for a date on the calendar that somehow gives you permission to move forward?

A Familiar Story

Each year, between October and January, I take calls from operators or aspiring entrepreneurs who tell me the same things.

The aspiring entrepreneur wants to open a new concept.
A year or two after first opening, an operator wants to stabilize their operations.
The veteran operator wants to get their brand’s finances under control.

But here’s the thing: approximately 80% of them admit they already decided to “wait until after the holidays.”

By the time they wait it out until the new year, the real estate they were eyeing is gone. The investor they were courting has moved on and is backing a different concept. Or worse, a new or scaling competitor has beaten them to the punch.

The cost of inaction always shows up, 100% of the time.

The Illusion of Busy

I get it. Society and this industry seem to thrive on being busy. The closer we get to the holidays, the easier it is to convince ourselves there’s no time to think about strategy.

Well, here’s the problem: that “too busy” mindset is often just a shield. It’s easier to stay stuck in the chaos than to step back and do the real work of building clarity.

And yet, that’s exactly what separates operators who crush it from those who drift away toward mediocrity or closure.

The ones who wait? They start the new year months behind or in survival mode.

The ones who act now? They start the new year in control.

That’s why this is called “separation season.”

Momentum Beats Motivation

Motivation is fickle. It spikes in January when gyms are full and the journals or planners are fresh.

By February, it all begins to fade.

Momentum, however, is different. Momentum compounds over time.

When you take action in October, November, or December, you’re not just getting ahead. You’re strategizing and developing the foundations. Or you’re training your systems, your people, and yourself to move forward when the calendar flips.

By the time many are just warming up, you’re already moving at full speed. Think about those positive results.

The Risk of Inaction

Let’s talk about what waiting actually costs you.

  • Prime Real Estate: The space you’ve been watching doesn’t wait for January. It will be leased by the operator who had the courage to strategize and take action.
  • Capital: Investors are looking for leaders with confidence and momentum. If you show hesitation, they’ll invest their money elsewhere.
  • People: Your best staff won’t stick around forever waiting for change. If you don’t build clarity and systems, they’ll leave for a team that already has them in place.

The longer you wait, the steeper the climb is going to be in the new year.

The Power of Now

So, what happens when you act now?

  • You gain clarity. Strategic playbooks create focus for your concept, your brand, your financials, and your guest experience.
  • You create momentum. Your systems start running, your people align, and your execution gains speed.
  • You build confidence. Investors, staff, and even guests can feel when an operator is in control.

Taking action now separates yourself from the 99% who sit back and wait.

From Survival to Legacy

Let’s be clear: This isn’t about working more hours. It isn’t about grinding yourself into burnout before the holidays.

It’s about mindset. Ask yourself:

  • Do you believe long hours equal nobility or inefficiency?
  • Do you believe success is about hustle or about alignment?
  • Do you want to survive another year or build a business that outlasts you?

The entrepreneurs and operators who crush it don’t wait for January.

They strategize now. Build now. Lead now.

Why? Because survival is built on reaction. Legacy is built on clarity.

A Challenge for You

Take a hard look at your calendar.

If you start today, you still have weeks (if not months) to set the stage for the business you want to run next year, and the many years thereafter.

Lay the foundation now. Create your strategies now. Get your systems ready now.

Do it now so that when the new year arrives you’re not scrambling to catch up—you’re already miles ahead.

The Final Word

Hospitality doesn’t wait. Guests don’t wait. The market doesn’t wait.

So why are you waiting?

The real flex is proving that October, November, and December are still full of opportunity.

Because when clarity meets courage and strategy meets execution, you don’t just start the new year strong, you start it by separating yourself from others, and leading the way.

Now is the time. Take action. Build momentum. Create your legacy in hospitality.

Image: Levi Meir Clancy via Unsplash

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Canadian flag against blue sky and white clouds
by David Klemt David Klemt No Comments

Five Traits Quantify Admirability

5 Traits Quantify Admirability

by David Klemt

Canadian flag against blue sky and white clouds

In part three of this series, I look at what traits people find admirable in others, and apply them to hospitality concepts.

Some venues are effortlessly cool. Others are undeniably good.

In 2012, a team led by psychologist Ilan Dar-Nimrod published a study in the Journal of Individual Differences titled “Coolness: An Empirical Investigation.”

Researchers asked more than 1,000 Canadian survey respondents (hence the image up top) to define what “cool” meant to them. They were also asked to describe someone they believed fit the label.

Their findings? People tend to assign admirable traits to “cool” individuals. Specifically, attractiveness, competence, desirability, friendliness, and trendiness.

Admirability, to provide further context, “is the quality of being admirable, worthy of respect or approval due to excellent qualities or achievements. It’s a noun that describes something or someone deserving of admiration.”

Interestingly, these attributes, while appealing, don’t align with the “counter-cultural” or “edgy” factors that typically define “actual” coolness in subcultures or social identity theory, per the research team.

In short, people blur the lines between being cool and being appealing or admirable. In hospitality, we often do the same.

Let’s break these five traits down, and look at how they shape the way guests may perceive your brand. If you can set out to build a cool or good hospitality concept, can you build one that’s worthy of admiration?

Attractiveness

In the Dar-Nimrod study, physical and aesthetic attractiveness ranked high as a “cool” trait. That’s largely because many people conflate outer appeal with inner value.

We all know (or should, at least) that being deemed physically attractive doesn’t automatically equal cool. Still, in this particular study of coolness, being attractive was ranked high as an admirable trait.

However, that’s easy for guests to forget when they’re surrounded by sleek interiors, photogenic food, or staff who look like they belong in a luxury fashion brand’s campaign shoot.

In a hospitality setting, attractive design can make a strong first impression. Some bar, restaurant, and hotel operators throw a lot of resources toward making their space look and feel cool. And why not? It does make some sense to assume that an attractive space will attract attractive people.

But cool isn’t curated, it’s effortless. At least, it it should feel that way, from discovery and arrival, and from service to exit and followup. Every aspect of service should be as amazing as the interior and exterior design.

Operators and their teams should identify and remove pain points and deliver smooth, seamless service to help the guest relax and escape. That’s effortless cool.

If the concept lacks a cohesive vision beyond “make it look cool,” there’s a feeling of inauthenticity. The service feels far more like a business deal than experiential, and the experience lacks soul. Soon, guests will see through the attractive façade.

In other words, a stunning dining room or bar doesn’t compensate for transactional hospitality.

If you’re leaning heavily on looks, make sure there’s substance beneath the surface. Create moments. Don’t let the aesthetic do all the heavy lifting.

Competence

Guests love a restaurant or hotel that runs like a Swiss watch. Precision is admirable, and competence feels reliable.

And when things just work, it puts people at ease.

But let’s be honest—competence isn’t inherently cool. In fact, when a brand flaunts its expertise too much, it can come across as smug or inaccessible.

In the Dar-Nimrod study, competence was one of the most frequently mentioned traits in cool people. But being competent doesn’t mean you break rules, take risks, or build culture.

Further, many people today are less interested in your how than your what. It’s becoming nearly as important as your why.

If a guest comes to your bar, what should they expect? What does your restaurant have to offer them? Is there something about your hotel that guests should see and experience?

Focus much more on the why and what, and let them decide if they want to know your how.

It’s the difference between a chef who lets their food do the talking versus one who drills guests with the minutiae of each ingredient and every technique they use to create each dish. Sure, a handful of guests are interested; most just want to scan the menu, order, and eat.

For most concepts, operational excellence should support the experience, not be the experience. Let your team’s confidence come through in calm, collected moments.

Again, coolness seems like it takes very little, if any, effort. It’s a bit of paradox, but great operators put the hard work into analyzing and refining every step of service until it becomes so smooth that it seems to come off effortlessly.

Desirability

Exclusivity creates demand. Demand fuels the perception of coolness.

But here’s the trap: When people want in just because everyone else does (FOMO, anyone?), a concept or brand risks becoming nothing much more than a hype machine.

That can look like cool from the outside. It can even seem like the concept is printing money if seats or rooms are unavailable for weeks or months. However, if the guest experience is just average, all that has been built is a fragile house of cards.

In Dar-Nimrod’s research, social desirability—the idea that someone is wanted, valued, or sought after—was commonly linked to perceived coolness. But desire is contextual.

Just because a place is hard to get into doesn’t mean it’s good, or cool, or will be relevant six months after opening, let alone a year into operations.

Most concepts don’t need a velvet rope. And they don’t need reservations so exclusive that an entire black market industry sprouts up just to obtain one.

What operators, their teams, and their brand need are values, intention, and consistency. That’s what drives real brand loyalty.

Artificial scarcity, like superficial desirability, is fleeting; integrity and authenticity are enduring.

Friendliness

This one’s a bit of a curveball. Friendliness is thought to be one of the core tenets of hospitality. So, how could it not be cool?

In the study, friendliness was often linked with coolness, but not in a defining way. More often, it was background noise—something that made someone likable, not legendary.

Here’s the thing: being friendly is expected in our industry. Being cordial is our baseline; it’s our standard level of professionalism.

It’s warmth, however, that really draws in guests, makes an experience memorable, and inspires repeat visits. In fact, warmth is included in a list of attributes that people tend to equate with being good. You can find that and the rest of the “goodness” traits in the second article in this series.

When everything is pleasant but perceived as too polished, the experience can slide into forgettable territory. Worse, it can feel disingenuous, and easily become off-putting.

I’d argue that being warm and welcoming is a true tenet of hospitality. More so than friendliness, anyway.

To me, friendliness is a byproduct of being warm. It’s what really makes a guest feel welcome when stepping into a bar, restaurant, or hotel. A person really can’t be warm and welcoming without being friendly (unless they’re incredible actors).

Guest-facing staff should be warm, not robotic. They should build rapport, not routines.

Let your team’s personalities shine through, even if it breaks script now and then. Guests remember what’s real, and how staff made them feel.

Trendiness

Trendiness is the most deceptive trait on this list of five.

Dar-Nimrod’s participants often cited trendiness when describing cool people. But deeper analysis by the researchers revealed that trendiness is perceived cool, not authentic cool.

It’s difficult for any concept to seem authentic if its constantly chasing trends. What is the concept if there’s little to no consistency because the operators are just jumping on every shiny, new toy that comes across everyone’s social media feeds?

A venue that pursues every current trend—cocktail techniques, food items, cuisine mashups, design palettes, even vibes—might look cool (attractiveness). We need to keep in mind that fads are fleeting, and trends, however one may influence culture, tend to have short lives.

The authentically cool thing to do is be discerning. Sit back and let others chase fads or trends every time one pops up. It takes much more savvy, and therefore coolness, to wait to embrace a trend that seems organic to your concept.

Make sure you’re building something lasting. Integrate trends in ways that feel organic rather than opportunistic.

Don’t chase every trend; be the source of a trend. That’s a cooler move by nearly every measure.

Final Bite

So what do you do with all this?

Pursuing attractiveness, competence, desirability, friendliness, and trendiness to be cool isn’t necessarily a bad thing. Neither is perceiving these traits as admirable, and striving to develop a concept that has these attributes.

These traits can be cool, and can be admirable, and they do contribute to brand value.

But if you want to build a venue that feels cool in the way that draws a crowd without trying too hard, builds loyalty through authenticity, and sets the tone instead of following it, you’ll need to go deeper.

Cool can’t be faked, but it can be felt. At the end of the day, operators and their teams should strive to be hospitable, warm, and welcoming.

Image: Chris Robert via Unsplash

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A vertical hotel sign reading "GOOD" with glass buildings in the background.
by David Klemt David Klemt No Comments

Eight Traits Quantify Good

8 Traits Quantify Good

by David Klemt

A vertical hotel sign reading "GOOD" with glass buildings in the background.

Is this too on the nose? I feel like it’s too on the nose. At least it isn’t AI!

We took a look at what traits may make a bar, restaurant, or hotel cool. Now, we’re turning our focus to what would make one “good.”

Similarly to cool, it can be easier to identify good than to sit down and quantify it. That is to say, most of us sense goodness better than we describe goodness.

But what meaning of “good” am I using as a form of measurement? For this article, understand that I’m not using the words “good” or “goodness” in the context of rating a restaurant or bar, or its F&B items.

Rather, I’m going the direction of the article I based on the “Cool People” experiment. If we can quantify cool as a person, we can a bar, restaurant, or hotel’s coolness. Therefore, we should be able to do the same to measure a venue or brand’s goodness.

Drilling down further, I’m also not really looking at goodness to judge a brand’s ethics. I like restaurants and bars that implement SOPs that reduce waste. And I think it’s important for hotels to operate in sustainable manners.

However, we can all argue over responsible, ethical operations and whether that makes a brand good. Can a brand be performative but still good? If the result is the same, does it matter if the company doesn’t really care?

Instead, I’m using the “Cool People” experiment’s own attribute measurements, and looking at how they can apply to a hospitality business.

Agreeable

Three attributes scored in the “Cool People” experiment were part of a Big Five Personality Traits* list. This is one of them, along with being conscientious and calm.

If someone is agreeable, they’re sympathetic and warm. They’re perceived as compassionate, cooperative, and kind. People who are perceived as highly agreeable are regarded as empathetic, altruistic, and focused on maintaining positive relationships.

To me, that sounds a lot like a definition of hospitality. The spirit of hospitality is selflessness, kindness, helpfulness, and a devotion to welcoming all.

*Anyone curious to learn more can search for “A very brief measure of the Big-Five personality domains” by Samuel D. Gosling, Peter J. Rentfrow, and William B. Swann, Jr., published in the Journal of Research in Personality in 2003.

Calm

A calm person is emotionally stable. Perhaps the best way to look at this attribute is through its opposite: neuroticism.

If someone’s neurotic, they’re emotionally reactive. Stress and change are seen as threatening by neurotic people. Due to poor coping mechanisms, someone who’s neurotic may think less clearly about what they’re experiencing, and therefore make worse and worse decisions.

On the other hand, a calm person retains their composure, handling stressful situations rationally and gracefully. They’re able to make good, effective decisions in the midst of stress and tension.

So, a calm restaurant or bar doesn’t make its guests feel negative emotions. The vibe may be energetic rather than placid, but it doesn’t feel anxious or angry. Guests who visit a calm hospitality venue won’t be overcome with the desire to leave; they’ll feel comfortable and safe.

This is an attribute that’s certainly tied to culture. If leadership is reactive or emotionally unstable, the rest of the team will feel it, and that will be felt by guests. The same can be said for problematic staff that infect the team with their reactivity and negativity.

A stable, supportive leadership team that hires for and nurtures a positive, healthy team will create a calm atmosphere for guests.

Conforming

Let’s look at how the “Cool People” team presented this attribute to respondents.

  • This person believes that people should do what they are told.
  • He/she follows rules at all times, even when no one is watching.
  • It is important for this person to always behave properly.
  • He/she avoids doing anything people would say is wrong.

At first glance, this sounds like it’s describing an authoritarian: do as your told, and don’t deviate from the rules.

Now, let’s put “conforming” into the context of a well-run bar, restaurant, or hotel.

Ruling with an iron fist is poor leadership. Identifying a brand’s values and mission, and adhering to them every step of the way is real leadership.

Crafting a hiring and onboarding materials, including an employee manual that includes clear SOPs for every role, is the type of conformity that’s healthy for a hospitality business.

The benefit of everyone knowing what’s expected of them, and believing leadership walks the talk of values and mission, is consistency. And consistency is the key result of this form of conformity.

That said, leadership needs to strike a balance between conformity and adaptability. The team should adhere to SOPs without being robotic; empower them to adapt should they find themselves in a service recovery situation.

Conscientious

This is a slippery one. A person who’s perhaps too conscientious can be perceived as obstinate, refusing to change a course of action. People who have low conscientiousness may be viewed as unreliable and sloppy.

The ideal balance, then, is someone who’s reliable and organized, and wants to complete their tasks efficiently.

Were a restaurant or bar to be perceived as conscientious, the team would be known for its top-level service. That impeccable service—including service recovery—would, of course, be linked directly to being conforming, calm, and agreeable.

In short, a conscientious restaurant would be known for its reliable service. A conscientious bar is led by an organized team. Such a hotel would be a well-oiled machine that develops and nurtures a team committed to efficiency.

Secure

There are a couple of ways to view a bar, restaurant, or hotel through the lens of security.

A hospitality venue perceived as secure makes guests and staff feel safe and comfortable. Even those in rougher locations can be secure if the operators do the work to make guests feel safe once they’ve stepped through their doors.

That feeling of security must also extend to staff. The team needs to know and feel that leadership sees their value, treats them fairly, has their back when guests are being difficult or making them feel uncomfortable, and enforces rules consistently.

Security can also take the form of reliability. Putting in the work to be a guest’s “safe” option can pay big dividends. There’s security and long-term success in becoming someone’s “third spot.”

It’s fun to innovate and be edgy. However, it’s also important to be familiar and approachable. Security as reliability and consistency is how a bar, restaurant, or hotel encourages a guest’s second visit, and then the all-too-important third visit that transforms them into a regular.

In either sense of the word, security is a key attribute for a good venue.

Traditional

I’m going to admit that I struggled with this one. The way it was presented to participants of the “Cool People” experiment doesn’t appear to translate directly to bars, restaurants, or hotels.

Half of the measures for this attribute focus on religion explicitly. It’s also presented as the antithesis to hedonism, an attribute associated with people perceived as cool.

Okay, so how can I relate religion to hospitality? Respectfully, I hope. As I view its essence, religion can be defined by community, guidance and belief, and practices.

Traditionally, hospitality is about building and serving communities. Hospitality workers are also a community in and of themselves.

As far as beliefs and guidance, hospitality is driven by service, generosity, and an authentic desire to welcome and accept others.

Those beliefs are reinforced by hospitality professionals who practice:

  • selflessness and sacrifice;
  • creating memories through kindness;
  • providing what guests want;
  • anticipating and honoring their needs; and
  • being respectful, friendly, and welcoming to everyone.

The way I see it, all hospitality venues that are welcoming and committed to hospitality are traditional.

Of course, there’s also the way we all perceive bars, restaurants, and hotels. Even the most innovative, experimental, and experiential concepts (The Aviary in Chicago, for example) are traditional in the sense that guests have an idea of what they should expect when they walk through the doors.

Universalistic

“This person thinks it is important that every person in the world be treated equally.” That’s how someone defined by this attribute could be measured, per the “Cool People” experiment team.

Let’s be honest, treating every guest as equal and equally important is the baseline for hospitality.

People can choose to spend their time and money at any bar or restaurant. Or they can decide against doing that at all, stay home, and make their own food and drinks. The same is true of lodging and accommodation: there are plenty of motels, hotels, and resorts someone can visit.

The question is: Why should they spend their time and money at your bar, restaurant, or hotel?

The answer is: Because you treat every guest with respect, and make them feel welcome and special.

Make someone feel cool and they’ll make return visits. They’ll tell their family, friends, coworkers, tourists, and people online to check out your spot. Make every guest feel relevant, seen, and heard.

It’s non-negotiable for a good restaurant, and that’s what makes a great hospitality brand and venue universalistic. If you’re not interested in welcoming everyone and treating them as equals, you’re in the wrong business.

Warm

Warmth is one of the core elements of hospitality. The people who conducted the “Cool Person” experiment may as well have been talking about a hospitality pro when they included the measures of this attribute:

  • it is important to this person to help people;
  • they care for other people;
  • they’re loyal to his/her friends; and
  • this person devotes himself/herself to people that are close to him/her.

With very few minor revisions, that could absolutely describe the ideal candidate in a bar, restaurant, or hotel job listing.

It’s crucial to hospitality, and it walks hand in hand with being welcoming and agreeable.

We can train just about anyone on the technical aspects of a given hospitality role. That’s what onboarding, training, and ongoing training is all about: developing and reinforcing skills.

That’s why the prevailing wisdom from successful hospitality operators and leaders is to hire for personality. Look for genuine warmth, extraversion, and the personality traits you need for your concept’s team.

Final Sip

Can a hospitality business be perceived as good in similar fashion to a person?

Perhaps. I’ll say that this has been a bit of an odd exercise.

Of course, finding out if I can attribute “goodness” to a bar, restaurant, or hotel has also been fun for me. I hope these two articles—one on quantifying cool, one on measuring good—have been entertaining and compelling for you, as well.

As it stands, I’ve got one more in me. We’ve got a series! Cheers!

Image: Carson Masterson on Unsplash

Client Intake Form - KRG Hospitality

An AI-generated image of a dog wearing goggles, sitting on top of a motorcycle that's parked outside of a bar
by David Klemt David Klemt No Comments

Six Traits Quantify Cool

Six Traits Quantify Cool

by David Klemt

An AI-generated image of a dog wearing goggles, sitting on top of a motorcycle that's parked outside of a bar

It’s difficult to visualize cool, so here’s a dog wearing doggles on a sportbike outside of a bar. Cool!

A team of researchers published the results of an experiment spanning several years, nearly 6,000 participants, and a dozen countries to quantify cool.

The international team’s paper, “Cool People,” was published by the American Psychological Association’s Journal of Experimental Psychology.

Alphabetically, the respondents are from: Australia, Chile, China (mainland and Hong Kong), Germany, India, Mexico, Nigeria, Spain, South Africa, South Korea, Turkey, and the United States.

The team’s research identifies six attributes of being “cool.” Interestingly, while they focused on 13 different regions, attributes associated with being cool are found to be surprisingly stable.

For the most part, cool people share these characteristics across several countries and cultures.

“Coolness is socially constructed such that a person, object, or behavior is cool if people agree that it is cool and uncool if they agree that it is not. Thus, it is less important to know how scholars have defined coolness than to understand what people perceive to be cool and uncool. We therefore operationally define coolness as whether or not a person is subjectively perceived to be cool by an observer.”

Per the Cool People researchers, this is fairly universal.

Relevance to Hospitality

I’ve taken a look at “cool” before. My conclusions were that it’s an amorphous concept, and that most people know something is cool in the moment. So, it’s interesting to see that researchers tackled the topic over the course of five or more years.

“Okay, great,” you may be thinking. “What does this have to do with my business?”

Hospitality is, by its nature, social. Coolness is a social construct, and society (and the cultural subsets therein) decide what’s cool.

People support brands and businesses they think are cool; it’s really that simple. Being deemed cool by a significant number of guests is a key to long-term success for most brands.

This experiment inspired me to look at restaurants, bars, and hotels through the lens of the Cool People experiment. Can we apply the six Cool People attributes to a restaurant, bar, or hotel?

Let’s dive in, or whatever a cool person would say. I guess they wouldn’t have to say anything; they’d make their move and people would follow.

Extraverted/Extroverted

In simple terms, extroverts are perceived—a key word here—as sociable and outgoing. They enjoy being around other people, and want to interact in social settings.

If your restaurant, bar, nightclub, or hotel were a “cool” person, it would display characteristics of an extrovert: sociable, assertive, friendly, makes friends easily, talkative/communicative, enjoys groups, finds socializing energizing, and many others.

(Extraversion versus introversion goes much deeper, psychologically speaking, and I’m keeping things much less complicated here. Introverts can absolutely have the characteristics above.)

Were your venue and staff seen as extroverted (and therefore cool), it would be perceived by guests as welcoming and sociable, at the least. The experience would tell a story, and make guests feel like friends rather than being strictly transactional.

Look appealing? Sound like your business? It should, because that’s hospitality at its core.

Achieving this attribute requires leadership to make the right decisions, from branding and marketing to hiring, onboarding, and training, and also curating the vibe during every daypart.

Hedonistic

Hedonism is indulgence. It’s a focus on pleasure, and an aversion to pain.

Understand this: People can eat, drink, relax, and sleep at home. They don’t really need to visit your bar, restaurant, or hotel; they want to visit your business. People want to socialize, see, and be seen, to feel accepted and special.

Of course, you and your team have to make them want to visit and spend their time and money at your place. They want to leave their homes and be made to feel cool and special, but you need to do the work to lure them to your venue.

A hedonistic restaurant, bar, nightclub or hotel delivers a memorable experience that fulfills guest desires and surpasses their expectations (delivering pleasure). Hedonism in this sense also means ensuring a guest’s exterior stressors melt away while they’re spending time with you and your team (removing pain points).

In my opinion, truly cool people make others feel cool. So, you and your team need to do the same. Look at your touch points. Review your leadership’s approach to service recovery. Be honest about whether your team feels empowered to be themselves while adhering to your SOPs and expectations.

Why? Because your guests want to feel cool. They want to feel relevant, important, seen, and heard. Does your standard of service make guests feel cool?

Show your guests that you think they’re cool. Indulge their wants and needs, unreasonably so if possible. In turn, they’ll want to indulge their desire to socialize, eat, and drink at your place.

Powerful

In the context of your hospitality brand, powerful can be defined as influential.

Does your community view your bar or restaurant favorably? Do the locals in your market support and spend time in your hotel?

If you’ve led your business to becoming a destination for surrounding markets, it’s powerful. And if people aspire to be seen at your business, that’s influence, and therefore power.

Has your restaurant or bar become a destination for people in other cities, states, provinces, and even other countries? Congratulations, you and your team have built, and are running, a powerful concept.

The same is true if your business can scale successfully; a concept that resonates strongly with the public is powerful. (Interestingly, building a brand that can scale but doesn’t is also cool.)

Create a legacy brand, lead your business to achieve long-term success, and you’ll have built a powerhouse.

Adventurous

People perceive as cool any person who’s willing to try new things, and does so often. The reasoning is simple: adventure is cool.

Travel and exploration are cool, and all over social media. Overlanding—self-reliant travel to remote destinations—has surged in popularity over the past few years. The ADV (adventure) motorcycle segment is expected to grow by a billion dollars year over year for the next eight years.

People want adventure, excitement, and new experiences. Hospitality brands are positioned uniquely to fulfill this desire.

Offering guests a unique spin on even a single F&B item can be adventurous. Introducing guests to a new-to-them cuisine is you and your team taking them on an adventure. The same is true for unique amenities, or creating a new way for a guest to experience a space.

Interesting glassware, compelling F&B pairings, eccentric ingredients and presentations, distinct menus, cuisines not otherwise presented in a given market… Even how menus or checks are dropped can deliver an adventure.

Adventurous people are seen as cool. You know what’s even cooler? Being the adventure. Strive to become an escape and escapade.

Open

Along with being adventurous, cool people are viewed as “open.”

Curiosity is cool. Being open to new experiences and ideas is cool. Welcoming people from all walks of life is cool.

This characteristic of coolness is represented in multiple ways in hospitality. A restaurant or bar team can at once be open to new ideas internally, and provide the opportunity for guests to experience new items and experiences.

Empower your team to share their thoughts on your brand, marketing, menus, promotions, and the guest experience. Speaking generally, different generations and groups have different opinions on what’s cool, so ask them for their input.

Be open to change, embrace it, and see how quickly your restaurant, bar, or hotel becomes the cool place to seek out new experiences.

Autonomous

Ask someone if conformity is cool and they’ll likely pull a face and say no. Of course, that’s somewhat ironic since most people want to be—and want to be part of—what’s deemed cool.

Trying to be cool is inherently uncool; we expect cool people to be so effortlessly. It’s a double-edged sword, with cool on one side of the blade and uncool (or cringe, if you prefer) on the other.

Going against the grain, circumventing expectations, and doing their own thing? That’s what cool people do.

It makes sense, then, that a restaurant or bar that doesn’t do and offer what every other place is doing (autonomy) is cool.

From the researchers: “[I]f coolness motivates the spread of innovation, then coolness should be associated with creating and diffusing new ideas.”

To be blunt, most restaurants, bars, and hotels are selling the same shit. In recent years, some big personalities in the industry have been saying this quite plainly. One was on the Bar Hacks podcast recently.

So, if we’re all selling the same things to our guests, how can any concept be seen as autonomous, and therefore cool? It comes down to strict adherence to our vision, a commitment to developing a fully realized brand, our team’s focus on the guest experience, and unique interpretation of menu items.

Of course, that last element can go sideways, slipping away from “cool” and spiraling into confusion or frustration.

Give your guests the cool, unique experience only you and your team can deliver, but make it approachable and understandable. Otherwise, you’ve given them homework, not an escape from their everyday lives.

Cool vs. Good

There’s an additional, interesting component to the Cool People experiment.

Within their paper the researchers reference a Canadian experiment. The study found that Canadian students, at least up to 2012, “frequently” saw cool people as those who demonstrated five characteristics of admirable people: friendliness, competence, desirability, attractiveness, and trendiness.

(Personally, I’m disappointed Canada wasn’t included in the Cool People experiment. I’m comfortable saying the rest of the KRG Hospitality team joins me in my dissatisfaction.)

Cool People researchers posit that that cool people should be admired by others for their status as a cool person. But that leads to other questions: Shouldn’t we admire good people? If so, is cool the same as good?

The researchers were compelled to address those questions during their experiment. Put simply, they found that cool people are capable of being “good.” However, they’re defined, for lack of a better word, as being extraverted, hedonistic, powerful, adventurous, open, and autonomous. You’ll notice “good” isn’t on that list.

So, no, cool is not the same as good, as far as this particular experiment’s findings show.

You’re probably wondering now what characteristics are attributed to good people. Well, you’re in luck, because the Cool People researchers included them in their experiment: conforming, traditional, secure, warm, agreeable, universalistic, conscientious, and calm.

What would the perception of being “good” look like for a restaurant, bar, or hotel? I may just tackle that question in an upcoming article.

Cheers!

AI-generated image: Microsoft Designer

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AI-generated image of a bottle of Cognac, two Cognac snifters, and some mints on a silver platter on a restaurant table
by David Klemt David Klemt No Comments

It’s Time to Perfect Your Moves

It’s Time to Perfect Your Moves

by David Klemt

AI-generated image of a bottle of Cognac, two Cognac snifters, and some mints on a silver platter on a restaurant table

This AI-generated image will make sense after you read this article.

Will Guidara doesn’t just believe in hospitality, he’s all in on the kind that goes beyond expectations and transforms into unreasonable hospitality.

I mean, it’s the title of his best-selling book, and the subject of a Guidara-hosted TED Talk. That should tell you all you need to know about his belief in taking hospitality to “unreasonable” levels.

At the 2025 Bar & Restaurant Expo in Las Vegas, Guidara delivered a keynote that was part challenge, part call to arms. His message was clear: the only true long-term competitive advantage in food and beverage isn’t the food, the drinks, or the space. It’s the hospitality.

The KRG Hospitality team also lives this approach to hospitality. At the end of the day, most concepts are selling the same items. Makes sense given the iron grip purveyors have on F&B, right?

So, a hugely important differentiator is how operators and their teams deliver on hospitality. To that end, Guidara has identified 130 touch points that influence the guest experience. That’s 130 in roads. Or, depending on which moments a team doesn’t leverage, 130 self-imposed obstacles or exits.

The Only Competitive Advantage

“Eventually, someone else is going to come around and create a better product,” Guidara told a packed room in Las Vegas. “The only competitive advantage that exists in the long term is your hospitality.”

That might sound like a line, but coming from Guidara, it’s a philosophy.

He urged operators to “throw [y]ourselves wholeheartedly at the pursuit of those relationships,” referring to the guest connections that drive loyalty, advocacy, and repeat visits.

These aren’t just transactions; these are opportunities to make people feel seen, valued, and appreciated.

Drilling all the way down, whether someone is tossing a few bucks at a quick bite or dropping tens of thousands for an experience, they want the same thing. Everyone wants to feel relevant. To feel important, and even cool.

You may not see the guests you make feel special every day. However, the chances of transforming them into repeat guests increases when you treat them like VIPs regardless of who they are, what they order, and how much they spend.

130 Moments

At Eleven Madison Park, Guidara and his team identified 130 distinct touch points in a guest’s dining experience.

The first moment is that guest researching your venue online, and the last is leaving their table. One of those touch points (or moments) is dropping the check.

And yet, said Guidara, most operators treat it like the end of the story, as nothing more than a transactional curtain call.

Guidara sees it as one last moment to connect. He referenced a study involving 2,000 restaurants: the 1,000 that dropped a mint with the check saw an 18-percent increase in tips. Call it a gimmick if you want, but it’s a small gesture that had a tangible impact. And all those teams had to do was include a mint that costs literally three to five cents.

A Better Ending

As I was sitting in the audience, Guidara’s thoughts on dropping the check reminded me of a Jim Gaffigan bit. Joking about the restaurant experience, he says getting the check can feel like a bit of a gut punch, particularly when the service has been so warm and friendly. Upon receiving the check in his standup bit, Gaffigan deadpans, “I thought we were friends.”

Surely, we can all do better than just walking up, dropping the check, and waiting for payment.

Guidara shared a personal example of turning this touch point into more of a moment. After delivering a particularly high check, he returned to the table with a full bottle of Cognac. He poured a splash into each guest’s glass, then simply left the bottle on the table. Rarely did anyone pour more—but that wasn’t the point. The gesture itself was the takeaway.

Do I expect operators to accompany checks with expensive spirits or wine? No, of course not. But I do want operators, their leaders, and their staff to consider what they can do to leverage the final moments of a guest’s experience.

Review, Rethink, Refresh

Guidara encouraged every operator in the room to review their own touch points.

“In the next month, identify one touch point you may not think about much, and get creative to enhance it,” he said.

This doesn’t mean swinging for the fences and transforming the moment you’ve selected into something needlessly grandiose. Instead, the key is intentionality.

Even a small change—if it’s thoughtful—can become unforgettable.

Further, taking on this exercise should help you fine-tune your service cadence. I recommend undergoing this exercise each month from now until the end of the year, choosing at least one touch point to elevate. More than likely, your steps of service will benefit from this intentionality and resulting refinement.

Team First, Always

Pre-meal, Guidara argued, is the most important time to rally your team.

It’s the moment to communicate the “why” behind your service. This is the time to set the tone, reinforce values, and spread passion.

Pre-meal also happens to be on Chef Brian Duffy’s non-negotiable daily checklist, in case you needed more proof to its importance.

“I believe passion is contagious,” Guidara said during his BRE keynote. “Energy begets energy. Passion begets passion.”

But operators have to be brave enough to go first. Too many are caught up in trying to look “cool,” when what’s actually needed is a little vulnerability and a lot of real talk.

He also reminded leaders to get their hands dirty.

Some people have a romanticized vision of restaurant, bar or nightclub ownership. They think they’ll be the cool person showing up to their hotspot in an expensive drop-top, fawned over by staff and guests alike. The reality is typically much further from that dream.

As an owner, you’ll be the one sprinting to the bathroom to unclog a toilet, or staring at an electrical panel, trying to figure out why half the kitchen went down suddenly.

When your team is in the weeds, the fastest way to earn their respect is to do the most menial task in the room: “Don’t ask them to do anything you wouldn’t do yourself.”

Perfect Your Moves

Guidara uses the word “moves” to describe signature gestures. These are moments that define your operation, steps within your service cadence that set it apart.

Before you start overthinking your cadence or second-guessing every step, your moves don’t have to be dramatic or expensive. What’s important is that they’re yours.

“Only do what you can do well,” said Guidara. “If you can only do one thing, do that one thing and stand out.”

But keep a simple mantra in mind: Complication is the enemy.

“Nothing will gain traction with your team if it’s too difficult to implement.” We take this to heart at KRG, encouraging operators to keep their menus to 12 to 15 items, prepared better than any competitor makes them.

Also, bear this in mind: When team members are invited into the creative process—when they get to contribute to the magic—engagement skyrockets. The back-of-house team should be part of the initial food menu development stage. For the bar menu, the bar team should be actively engaged.

When it’s time for seasonal or mid-year menu refreshes, encourage involvement from the entire team.

Turn Guests Into Ambassadors

This isn’t about over-delivering or giving everything away. Rather, it’s about being present.

When your team is empowered and your service is intentional, you create moments that guests talk about. Those moments turn guests into evangelists.

They come back. They bring others. Your regulars become a legion of ambassadors for your brand.

We live and run businesses in a world where the food, the drinks, and the vibe can all be copied. But that kind of guest loyalty? That’s the one thing that pretenders can’t replicate.

Image: Canva

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AI-generated image of a pile of chicken nuggets on a plate in a restaurant, wtih a red flag jutting out of them
by David Klemt David Klemt No Comments

Chicken Tenders with a Side of Red Flag

Chicken Tenders with a Side of Red Flag

by David Klemt

AI-generated image of a pile of chicken nuggets on a plate in a restaurant, wtih a red flag jutting out of them

Red flag! AI-generated image.

Chef Brian Duffy doesn’t mince words, and when it comes to restaurant menus, he has zero patience for mediocrity and the absence of creativity.

During his latest live menu read at Bar & Restaurant Expo 2025, Chef Duffy once again shared his unfiltered thoughts and tips in real time.

Reviewing menus submitted prior to his live menu read, Chef Duffy went after tired ingredients, uninteresting items, pricing, and menus that scream “I was designed by a supplier!”

For those who have yet to witness a Duffified live menu read, the process is simple. A call for menus is sent out, people send over their menus, and they’re put up on a large screen at the Bar & Restaurant Expo’s F&B Innovation Center or in a classroom.

A key element is that Chef Duffy doesn’t see the menus ahead of time; his thoughts are off the cuff and in the moment.

It’s important to note that not every menu is eviscerated. Chef Duffy points out strengths, and offers suggestions to make good menus great. And, without fail, attendees paying attention will walk away with a pile of helpful tips.

Oh, look, chicken tenders. Yay.

Which came first, the chicken tenders or the apathy?

“If chicken tenders are on your menu, you’re bastardizing your brand.”

That line alone set the tone for the session. Chef Duffy’s point? If you’re trying to build a unique, memorable food program—and you should be—then you can’t fall back on the same tired menu items as everyone else.

If your reports show that chicken tenders are at the top of your sales, that’s a justification for keeping them. However, at least consider getting creative with accompanying sauces, presentations, and enhancements so you stand out from the competition.

Chicken tenders may be “safe,” but safe isn’t what guests remember, photograph, post about, or come back for specifically. Not to slander big brands, but chicken tenders are what people expect from full-service national and global chain restaurants.

Meet with your culinary team, get creative, stand out.

Your first five items reveal everything.

Chef Duffy says he can tell, just from scanning the first five menu items, whether your menu was designed by you or handed down by the food purveyor.

The latter is a problem.

“Your menu is your brand,” Chef Duffy reminded the F&B Innovation Center. “It tells your story, your values, your creativity—or your lack of all three.”

As he has said before, your menu is also your billboard.

That means you need to ditch generic descriptions, rethink your item layout, and stop outsourcing identity to third-party salespeople.

“Everybody has the same shit on their menu,” Chef Duffy said just a year ago. “We’ve been told what to put on our menu buy our purveyors.”

Being honest with yourself, is your menu actually yours, or have you ceded control of your brand to your suppliers?

Pricing should be as intentional as plating.

“I’m all for a funky number, my friends,” Duffy said.

This statement was in response to a menu with less-standard pricing. Whole numbers ending in 0 or 5? Not exactly blowing anyone’s hair back. Rational numbers ending in a 5 or 9? Been done, haven’t they?

Chef Duffy’s reasoning is psychological: Funky numbers can create curiosity. Perhaps more importantly, nontraditional numbers communicate that the pricing wasn’t slapped on from a cost spreadsheet; it was considered.

Of course, you don’t have to pour nonstandard numbers all over your menu. There’s nothing wrong with sprinkling them around instead.

Just be sure that you’ve costed your items down to the temp picks in your burgers, and bev-naps that accompany your drinks, when pricing your menu.

Retire the balsamic.

If your go-to vinaigrette is still balsamic, it’s time to move on.

“It was cool in 1986,” Duffy quipped.

If that statement offends or surprises you, it may be time to check out some flavor trend news and reports. Also, ask your culinary team what they think about the dressings accompanying the salads and other items leaving the kitchen. Anything but enthusiasm should tell you that they have some ideas for more on-trend accompaniments. (Note: A disinterested kitchen is a disengaged kitchen. Get your team excited!)

I’m not saying, and Chef Duffy wasn’t suggesting, that tradition should be tossed in the trash. However, adhering strictly to decades-old tradition in the culinary world puts you, your menu, and your brand at risk of obsolescence.

You have a responsibility to embrace flavors that reflect today’s culinary trends and consumer palates if you work in F&B.

The same goes for buzzword-laden menus and what he calls “culinary white noise”—ingredients and terms that sound impressive but say nothing.

A box, a name, and a story.

When it comes to designing your menu, Chef Duffy likes to see creative item names, detailed but punchy descriptions, and a visual cue—like a box—surrounding (and therefore calling out) featured items.

Why?

Because you’re not just listing food, and that mindset needs a seismic shift.

Restaurant operators, their culinary and bar teams, and their service staff are curating a guest experience. The layout of your menu should help guide the guest journey, telling and reinforcing your brand’s story.

There’s limited real estate on a menu—including digital versions—so every millimeter requires careful consideration to maximize the results.

There’s no room for confusion.

Okay, this next one baffled not only Chef Duffy but every person who attended his live menu read. Honestly, if you have any idea what this meant, please email me with your thoughts.

One menu—remember, this is real life—that Chef Duffy reviewed included the phrase “choice of meat bar bbq” (written here exactly as it was on the menu). And where was this listed? Under the chicken wings.

Seriously, what does that even mean? If a room full of F&B professionals can’t figure it out, something has gone terribly wrong.

Put simply, ambiguity kills confidence. If a guest has to guess what they’re ordering—or worse, ask a server who also doesn’t know—you’ve very likely lost their return visit.

There’s nothing wrong with building mystery. Plenty of chefs, bartenders, and operators come up with item names and descriptions intended to pique guest curiosity.

But here’s the thing: That’s an intentional, curated choice. These items and descriptions are meant to provoke a response. It’s part of the experience, and each server and bartender can answer questions about such items confidently.

Put more simply, there’s a difference between, “Ooo, what’s that?” and, “Um, what’s that?”

Final Bite

Your menu is your voice, so make it count.

Chef Duffy’s latest live menu read was less a menu critique and more a rallying cry this year.

Stop giving up control of your inventory, menu, and brand to your purveyors. If you’re going to have the same dishes as other operators, at least get creative with the ingredients, sauces, and other accompanying items. Revisit your pricing strategy. And, hey, while you’re at it, revisit your dressings and other items, and determine if they’re still adding value.

Whether it’s weird pricing, boxed features, or creative naming conventions, every detail matters. Your menu doesn’t just feed your guests—it frames their expectations, defines your concept, and tells the world your brand story.

And if all else fails, just remember: Lose the chicken tenders and balsamic vinaigrette.

Image: Canva

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Flipping through an open book
by David Klemt David Klemt No Comments

5 Books to Read this Month: March 2025

5 Books to Read this Month: March 2025

by David Klemt

Flipping through an open book

Our March book selections focus on outdoor cooking, miniaturized cocktails, restaurant design, hotel design, and prioritizing the right things.

To review the book recommendations from February 2025, click here.

Let’s jump in!

Tiny Cocktails: The Art of Miniature Mixology

Several years ago, Tales of the Cocktail featured an event highlighting Mar-tiny’s, miniature serves of an array of Martinis. Over the years, I’ve come across mini drinks at bars and pop-up events, and people have always seemed to find the concept compelling. Couple this interesting way of serving with today’s apparent preference for imbibing less alcohol and we have a recipe for successful drinks.

From Amazon: “Tiny Cocktails offers a unique and creative approach to mixology for those who want to savor delicious cocktails without overindulging. The recipes showcase smaller drinks with big flavors—an ideal way to explore new flavors and refine your mixology skills without making a full-drink commitment. Each drink comes in around 3-6 ounces, with about half the alcoholic punch of a full-sized cocktail.”

Order your copy here!

Symon’s Dinners Cooking Out: 100 Recipes That Redefine Outdoor Cooking

Funnily enough, this also reminds me of an awesome, engaging Tales of the Cocktail event. Not too many TOTCs ago, Kimpton Hotels hosted an event during which every food item (save for a couple of cheese boards) was prepared outside, over fire. The result was a fantastic dinner that showcased how the simplest form of cooking, when coupled with creativity, can produce something spectacular.

From Amazon: “In Symon’s Dinners Cooking Out, Michael Symon offers 100 recipes for outdoor cooking including desserts and drinks too. Featuring fan-favorite recipes from his popular Food Network show, Symon’s Dinners Cooking Out, and brand new recipes, this cookbook is sure to excite budding and expert grillers alike. From live-fire classics like Bacon-Cheddar Smash Burgers to unexpected dishes like Fettuccine with Smoked Tomato Sauce, cooks who take it outside will find all kinds of creative ways to use their grills year-round.”

Pick yours up today!

Tasteful: New Interiors for Restaurants and Cafés

I’ve had the opportunity to speak to multiple hospitality-focused interior designers on the KRG Hospitality-produced Bar Hacks podcast. In each case, I’ve asked about their process for helping clients share their vision for a restaurant, bar, or other concept and transform it into a tangible design.

To that end, I present Tasteful, which I hope will help spark creativity in anyone considering the interior design of their own concept, and explain what they’re visualizing to others.

From Amazon: “The ever-evolving landscape of the gastronomic industry never fails to surprise with new ideas and trends—and Tasteful is a testament to that. A follow-up on the earlier gestalten title Appetizer, this book is a curated selection of the most eye-catching interiors of new restaurants, cafes, bars and all kinds of food places. Featuring a variety styles from a host of diverse locations around the planet, Tasteful serves as both a travel guide for intrepid foodies and an inspiration for those passionate about design.”

Grab a copy now!

Design: The Leading Hotels of the World

On the most-recent episode of the Bar Hacks episode I speak with Michael Suomi, an award-winning architect and interior designer who specializes in unique and complex hotel projects (along with restaurant and bar designs). That episode, and this book, should inspire those opening a hotel to knock their design out of the ballpark, and create a narrative for their property.

From Amazon: “Embark on a stunning visual journey through The Leading Hotels of the World, a collection of the world’s most exclusive independent luxury hotels, which consistently dominates prestigious awards, securing top honors in Travel + Leisure’s World’s Best Awards and Condé Nast Traveler’s Readers’ Choice Awards.”

Click here to order your copy!

Undoing Urgency: Reclaim Your Time for the Things that Matter Most

One of our goals for KRG Hospitality clients sounds simple on the surface: spend less time on their business. Imagine having the ability to step away for multiple weeks throughout the year, to actually unplug and not even think about your bar, restaurant, cafe, nightclub, or hotel. We want that for all of our guests, because while we can help make brands, brick-and-mortar businesses, and menus, and make operations run more smoothly, none of us can make more time.

Undoing Urgency, likewise, is about time, and what we do with it.

From Amazon: “Undoing Urgency…details the GAME Plan (Goals, Actions, Metrics, and Execution), which turns core values into high-priority goals and minimum effective dose actions for maximum impact. The GAME Plan works for all goals, having been used at the highest levels in business, health, life, and the most personal ambitions. It takes readers on a journey of personal discovery to identify what brings them value and joy. Ultimately, Reynolds wants to help people break free of urgency and start living a value-driven life dedicated to what is most important to them.”

Buy it now!

Image: Mikołaj on Unsplash

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A trio of protein shake bowls on a wooden plank, resting on a bar top
by David Klemt David Klemt No Comments

Are Snacks Right for Your Menu?

Are Snacks Right for Your Menu?

by David Klemt

A trio of protein shake bowls on a wooden plank, resting on a bar top

Wow, AI-generated food that actually looks like food!

The latest “-ification” to take root in food and beverage centers around people favoring consuming several meals throughout the day.

The “snackification” of F&B menus across the industry is joining “gamification” in moving from trend to standard.

So, what is snackification, and is it right for your concept, brand, and menus?

Let’s start by tackling the first part of that question.

What is Snackification?

Looking at this word from the consumer side, snackification is the replacement of full-size meals with multiple snacks.

There are several factors to which one can point to explain how this behavior went from trend to mainstay. One prevailing theory posits that people snacked more often throughout the day during the pandemic. That particular behavior simply hasn’t fallen to the wayside.

Another driver may be cost. A percentage of consumers perceive “traditional” daypart dining as more expensive than opting for smaller items whenever they feel hungry. Whether true, false, or somewhere in between, this perception exists, and it’s strengthening snacks as a viable menu category.

Of course, there’s also the treat factor. Some people simply like to treat themselves, and a snack several times a week helps them fulfill this desire.

On the operator side, snackification is the embracing of snacks as a revenue generator.

Several restaurants have created snack sections on their F&B menus. Indeed, more than a mere handful of quick-service and fast-casual concepts are leaning into snacks.

However, the creation of QSR brands that focus on snacks truly illustrates the strength of snackification.

Should You Snackify Your Menu?

Making changes to your concept and menu requires careful consideration.

Jumping on any trend should also be done with caution; the same goes for changing an element of operations to embrace a new standard.

There are several questions that need answers before deciding to snackify your menu.

  • What items will you offer as snacks? With the rise in usage of GLP-1 drugs, protein-rich snacks are growing in popularity. A focus on wellness is also motivating consumers to seek out snacks that are lower in sugar and calories. However, sweet treats are still sought after. Again, careful consideration is key.
  • How well do you know your guests? Using data, can you say with confidence that you can leverage snacks successfully? Do you know what types of snacks will resonate with guests? Are the snacks you’re considering in alignment with your brand and concept, or will the change confuse guests?
  • Will offering snacks increase your costs? You need to know know with certainty how snack items will affect labor and food costs.
  • Will the change to snacking impact other dayparts? It’s possible the shift can cannibalize dayparts, which will affect your costs, traffic, and revenue.
  • Can you transform items already on your menu into snacks? Doing so could keep your costs under control, and help you make the shift quickly. What on your menu is high in protein, craveable, and able to be produced in smaller portions easily?

It’s quite likely that snacks will resonate with your guests. However, you need to know, not guess. What does your data tell you about traffic, item sales, and guest preferences?

As I’ve said before, success in this business comes down to math, not magic.

Image: Microsoft Designer

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by David Klemt David Klemt No Comments

Go Orange this Valentine’s Day

Go Orange this Valentine’s Day (and Beyond)

by David Klemt

A bottle of SAVOIA Orancio resting on a bed of grapes and pomegranates

There’s a new, exciting aperitivo from the House of SAVOIA, and it’s flavor profile and color are perfect for celebrating Valentine’s Day.

In fact, SAVOIA Orancio is ideal for celebrating life on any day. Slowing down to appreciate and enjoy is the purpose, after all, of aperitivos and aperitivo culture.

I had the opportunity to chat with Giuseppe Gallo, founder of CASA-SAVOIA (and ITALICUS), about the new Orancio expression, and more on the Bar Hacks podcast.

The orange hue comes from this aperitivo’s base: natural orange wine. This wine is combined with Italian white wine, and spices that pay tribute to the famed Silk Road. These include cinnamon, ginger, and saffron.

Regular readers of KRG Hospitality articles, and listeners of our Bar Hacks podcast, are aware that I’m a strong proponent of bar programs executing an aperitivo hour in place of a traditional happy hour (if it meshes with the concept, of course).

Aperitivos aren’t simply a drink; they’re an integral element of socializing, and Italian drinking culture. Whereas a happy hour is often perceived by some guests as a window in which to visit a bar for discounted drinks and dishes, an aperitivo hour centers largely around bringing people together.

Whether friends or strangers, the key difference is that rather than focusing on downing many “cheaper” drinks before time runs out, the focus is on slowing down, letting go of the stress of the workday, gathering, and preparing for dinner.

To learn more about SAVOIA Orancio and aperitivo culture, listen to Bar Hacks episode 130 on Spotify, Apple Podcasts, or wherever you listen to podcasts. Cheers!

Orancio Spritz

We can trace the origins of the Spritz to 1800s Veneto, one of the 20 regions that comprises Italy. The Spritz evolved in the 1920s, adding bitters, soda, and ice. In the 1970s, as the story goes, the cocktail evolved again, calling for Prosecco rather than still wine.

  • 2 parts SAVOIA Orancio
  • 2 parts Prosecco
  • 3 Green and red grapes to garnish

Add ice to a wine or balloon glass, then add equal parts SAVOIA Orancio and Prosecco. Garnish with the grapes, and serve.

Orancio & Soda a.k.a. L’Americano

Proof that some of the best, most-refreshing cocktails are the simplest. The Americano is described as the link between Italian aperitivo drinking culture and American cocktail culture.

Fun fact: We’ve all come to understand that James Bond has an affinity for Vodka Martinis (as well as other Martinis). However, the first drink 007 ever orders in the first-ever James Bond novel is an Americano.

  • 2 parts SAVOIA Orancio
  • 2 parts Soda water
  • 3 Green and red grapes to garnish

Fill a highball glass with ice, and then add SAVOIA Orancio and soda water. Garnish with grapes, then serve.

Orancio Negroni

Yes, I’m aware that a traditional Negroni is an equal parts combination of Campari, London dry gin, and sweet vermouth. Trust me—and more importantly, trust Giuseppe Gallo—that this Negroni version is worthy of the name.

  • 2 parts SAVOIA Orancio
  • 1 part London dry gin
  • 3 Green and red grapes to garnish
  • Garnish alternative: Orange wedge or peel

Add ice cubes (or one large cube or sphere) to an Old Fashioned glass. Then, add SAVOIA Orancio and gin, and stir. Alternatively, add the two liquid ingredients and ice to a mixing glass for a more traditional preparation. Stir, and strain into a prepped Old Fashioned glass. Garnish with grapes, or with an orange peel to more closely resemble a Negroni. Alternatively, set an orange wedge on top for more of a Sbagliato presentation.

Orancio Margarita

Looking to offer your guests something a bit different? The Orancio Margarita is an Italian twist on one of the most-iconic cocktails ever created.

  • 1 part SAVOIA Orancio
  • 1 part Tequila blanco
  • Half-part fresh-squeezed lime juice
  • 1 barspoon Agave nectar
  • Lime wheel to garnish

Prepare a rocks glass by adding ice. (I also suggest experimenting with a salt rim.) Add ice and all liquid ingredients to a shaker, and shake well. Strain into the prepped rocks glass, and garnish with a lime wheel.

Image provided by SAVOIA

Note: Neither the author nor any representative of KRG Hospitality received compensation, monetary or otherwise, in exchange for this article.

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