Bar operations

People toasting with a variety of cocktails
by David Klemt David Klemt No Comments

Prepare for the New Rules of Hospitality

Prepare for the New Rules of Hospitality

by David Klemt

People toasting with a variety of cocktails

Guests are returning to bars, restaurants, and hotels, so you need to prepare now for the new rules of hospitality.

If you’re wondering what those rules are, wonder no more. We have a number of articles addressing them, some of which are here, here, and here.

Phil Wills, owner and partner of the Spirits in Motion and Bar Rescue alum, also has some thoughts. In fact, Wills shared his approach to what he identifies as the new rules of hospitality last week.

 

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During Bar & Restaurant Expo 2022, Wills presented “The New Rules of Hospitality: What a Post-pandemic Consumer Wants.”

Below, you’ll find what Wills has to say about hospitality in 2022 and beyond in three categories.

Hospitality

Wills kicked off his session with a simple question: How do you define “hospitality”? And yes, he put attendees on the spot, asking them for their answers.

It’s always at least a bit amusing that even the most outgoing operator gets shy in a conference setting. I’ve never seen so many people suddenly need to check their phones, shoes, or the ceiling tiles as when they’re asked to participate in a class or education session.

For Wills, the definition is “making a guest feel welcome, as though they’re in your home.”

Obviously, the answer is different for everyone. As Wills says, the key is considering how you and your brand define hospitality. If that seems easier said than done, Wills has some tips, presented in the context of a guest visit.

First, guests take in the sights, sounds, and smells of your space. They also consume your menu items, and converse with your staff, their party, and other guests.

Look at your business through the eyes of your guests. Now, this can be a difficult exercise, particularly if you spend a lot of time in your restaurant, bar or hotel.

So, ask team members to do the same and provide feedback. We take for granted what our spaces, food, and drinks look like.

To improve the guest experience, pay attention to ticket times and F&B consistency. This will reduce recovery incidents and phrases.

Finally, Wills recommends engaging with guests (if that’s what they want). However, he also suggests facilitating connections between guests.

Interestingly, Wills also says, “Regulars are old money. You want to get that new money.” Then, you want to convert that new money into old money. Rinse, repeat.

Training

As relates to training, Wills categorizes new hires in two ways: toll takers and moneymakers.

Toll takers take a toll on your business. They cost you money, and if they don’t receive the proper training they can chase guests away.

So, you’ll need to spend time and money to convert toll takers into moneymakers.

Speaking strictly in a technical sense, training needs to provide team members with the knowledge and tools to become moneymakers. To accomplish this, Wills has three keys to making training stick:

  1. Don’t make training too easy. If training is easy, team members won’t retain what they’re taught. Challenge your staff.
  2. Vary your training. There are a number of training methods at your disposal. Use multiple methods to engage your staff. Wills suggests combining shift work, book work, and tests, at a minimum.
  3. Turn training into a competition. At this point, we’re gamifying just about anything. So, Wills recommends the platform 1Huddle to gamify your training.

Labor

Simply put, Wills says we need to find new ways to make this industry exciting to new hires.

According to the National Restaurant Association, we’re still seeing significant job losses in hospitality, foodservice, and lodging and accommodation.

In fact, we’re down 14 percent when it comes to full-service restaurant jobs. For bars and taverns, the number is 25 percent.

For Wills, offering incentives, mental health breaks, and even cash bonuses for staying in role for a number of months can draw the attention of new workers.

However, he also has another interesting idea: making people smile. On average, according to Will’s research, people smile 20 times each day. He wants to find ways to make people smile 20 times during a single visit to a restaurant or bar.

Now, Wills admits he’s still working on how to accomplish this lofty goal. I believe a key component is creating a working environment that inspires team members to smile 20 times per shift.

Image: Kelly Sikkema on Unsplash

Rich Uncle Pennybags graffiti
by David Klemt David Klemt No Comments

The Leasing Game: Terms & Conditions

The Leasing Game: Terms & Conditions

by David Klemt

Rich Uncle Pennybags graffiti

Understanding the ins and outs of the leasing game means knowing the meaning of several legal and industry terms.

Winning at this game also requires a deep understanding of everything that’s in your lease agreement.

I addressed the importance of negotiating your lease (and more) yesterday. Today, let’s go over the terms you need to know.

A Warning

Before I run down a list of terms (as in phrases), let’s go over other terms you need to understand.

Namely, the terms for which you negotiated before you signed your lease. Let me reiterate: You know all of this before you sign your lease.

Do not sign anything unless you understand every word of every sentence in every paragraph on every page. If that seems overwhelming, pay a lease agreement attorney to analyze and advise you on a lease. It’s worth the spend, and please do this before you sign anything.

Why a lease agreement or real estate attorney? Because a lease agreement is a legal document. You don’t sign legal documents without knowing what’s in them.

Some Context

Based on the number of hospitality professionals that descended on Las Vegas last week, trade shows and conferences are back in full force.

KRG Hospitality attended the 2022 Bar & Restaurant Expo, formerly the Nightclub & Bar Show.

Friends of KRG, Invictus Hospitality (IH), presented a handful of sessions during the show. One of these was “Understanding the Leasing Game & How to Get Ahead.”

As I wrote yesterday, IH principal Homan Taghdiri hosted the informative session. He shared a wealth of knowledge every operator, new or veteran, should know.

The first bit of information was this: Know that you have the right to negotiate your lease. If someone tells you otherwise, they’re lying or they don’t know what they’re talking about.

As for the second piece of advice, see the section above this one.

Know These Terms

In this context, “terms” means words and phrases. Below is a list of terms that Taghdiri addressed during his session.

Note that I’m not sharing definitions, I’m sharing recommendations from Taghdiri’s session.

  • Tenant. This is you—individually—if you don’t have a business or other properties for a landlord to go after (sue).
  • Guarantor. You can negotiate the removal of your personal guarantee. As an example, Taghdiri suggested a clause stipulating if you pay on time for ten years, your personal guarantee is removed. After all, you’ve proven yourself for a decade.
  • Security deposit. Again, you should be rewarded for proving yourself and your concept. Negotiate a security deposit burn-off, like a month of security deposit removed from every year of the agreement.
  • Use of space. You need to know the following: current and future use(s) of the space; exclusive and competitive uses; obtaining conditional use permits and licenses. Bake in the ability to pivot, adjust, or modify your agreement. The pandemic exposed how important it is to understand use of space in several markets.
  • Force majeure. Another element exposed by the pandemic. Including a pandemic specifically as a valid force majeure trigger is a smart move on the tenant’s part.

Moving into the Space

Are you building the space out or is the landlord? Is it a combination of both?

Who’s responsible for delays? Is the landlord responsible for upgrades or refreshes over time?

You need to negotiate for and understand the following:

  • Premises delivery. When do you get the space? What’s the scope of work that the landlord must complete for delivery of the space? Is there a tenant already in the space? If so, when are they leaving? What if they don’t leave on time?
  • Landlord’s obligations. Is the landlord responsible for the HVAC, mechanical, electrical, and/or plumbing systems? Are they responsible for the roof on the building, the windows, and maintaining ADA compliance? Who’s responsible for the common areas, such as the parking lot and the lot’s lighting? As an example, how often are they required to repair, refresh, or resurface the parking lot?
  • Insurance requirements. You need to know what coverage, deductibles, and exclusions you’re agreeing to before you sign your lease. Taghdiri recommends asking for the proposed insurance clause and sending it to your insurance provider. If you can’t afford their insurance requirements, you can’t afford the space and need to walk away.
  • Miscellaneous. What are the security requirements for the space you’re occupying? For example, if you’re a nightclub, the landlord may stipulate how many security personnel must be working on certain days during specific hours of operation. Speaking of which, what days are you required to be open? What’s the minimum number of hours you must operate each day of the week? Should you find yourself in a shopping center with anchors, what happens if an anchor leaves? Are you required to address sound abatement?

Avoid Pitfalls

Understand the following before you sign anything:

  • Nobody can force you to sign a lease. Since there’s no such thing as a standard lease, you don’t have to accept whatever the landlord offers. If you don’t like the terms, don’t sign the lease.
  • Remember, a lease agreement is a legal document. Fully review and understand the terms. Never sign anything blindly.
  • Brokers aren’t “bad” but they’re not necessarily putting your needs before their own interests. If you’re going to work with a broker, find the right one for you.
  • Just like you need to find the right broker if you go that route, you need the right legal representation. Legal fees are worth it to understand your lease agreement. Just make sure you’re going to the right person to review it and give you advice.*

Combined with a willingness to negotiate (and walk away if you can’t get the terms you want), an understanding of the terms on this page will put you ahead of the competition. Happy space hunting.

*The information contained in this article does not represent legal or financial advice from any representative of KRG Hospitality, Invictus Hospitality, Bar & Restaurant Expo, or Questex.

Image: BP Miller on Unsplash

Vintage sale or lease sign in Minnesota
by David Klemt David Klemt No Comments

This is How You Win When Leasing

This is How You Win When Leasing

by David Klemt

Vintage sale or lease sign in Minnesota

At this year’s Bar & Restaurant Expo, the Invictus Hospitality team tackled a crucial step of any project: The lease.

Invictus (IH), friends of KRG Hospitality, know a thing or two when it comes to leasing a space. Principal Homan Taghdiri is a tenacious negotiator.

Case in point, an Invictus project in Orlando that opened during the pandemic. The space was owned by the city, which can certainly complicate matters. Taghdiri sunk his teeth in and refused to let go—for seven months. That’s crocodile or Komodo dragon patience.

The result? Favorable terms and massive cost savings.

Taghdiri presented “Understanding the Leasing Game & How to Get Ahead” at Bar & Restaurant Expo 2022. You know this show by its former name, Nightclub & Bar.

Knowing that when Taghdiri smells blood in the leasing water he’ll clamp down and death roll until he gets his way, I attended his session.

Before we dive in, know this: If we disagreed with the IH approach to leases, we wouldn’t share their tips. The information below would cost, as Taghdiri points out, about $2,000 coming from an attorney.

Of course, neither KRG Hospitality nor Invictus Hospitality is providing legal or financial advice in this article. I’m just passing along information, as IH was doing during their session.

Leasing Dos and Don’ts

If you take nothing else from this article and Taghdiri’s session, make it this tip: Do negotiate your lease.

“You have to negotiate your lease,” says Taghdiri. “It is a must.”

Not you should. Not you can. You must negotiate your lease. Neither of us can emphasize this enough.

In fact, it’s your right to do so. Which brings us to our first leasing don’t. Do not believe anyone who says you can’t negotiate a lease.

“Anyone who tells you that you can’t negotiate your lease is lying to you,” says Taghdiri.

And if they’re not lying, they just don’t know what they’re talking about. Either way, don’t listen to them. Walk or run away.

Also, do your due diligence. Knowing what you’re getting into before signing is on you. Taghdiri recommends you ask the following before signing anything:

  • What generation is the space? Is it brand-new? It’s first generation. Did the first tenant leave? It’s second-generation, and so on.
  • Is the space totally empty?
  • Does it have space allocated for gas, electric, etc.?

Ideally, you’ll find a second-, third- of fourth-generation bar or restaurant space. Why? They can provide massive cost savings to you.

Do fight for the terms that are important to you. These include amount of the lease, the length of the lease, and any incentives.

However, don’t over-negotiate your lease. Do put yourself in the landlord’s position. They’ve invested significant capital developing the space and they need an ROI. Pick your most important terms and negotiate them. You risk a landlord walking away from a deal if you negotiate every single item and make things difficult.

Lease Types

So, you’ve found your perfect space. Do you know which type of lease you want? Not certain which is right for you?

No problem, because Taghdiri broke them down during his session.

  • Standard. This is the easiest to explain because it doesn’t exist. A particular landlord may have “standard” lease, but their isn’t one that spans the industry.
  • Full service gross is the easiest of the actual leases. Everything is negotiated and clear in the lease, and you simply pay the agreed-upon amount.
  • Triple net is the opposite of the FSG lease. You pay your base rent. Then, your landlord passes on operational costs to you, which you also pay.
  • Percentage Rent. Basically, this is a hybrid lease. You pay base rent plus a percentage of sales. For example, you may pay natural breakpoint on top of base rent. This type of lease can be beneficial to newer businesses. However, some landlords do not like percentage rent leases.
  • Modified gross is, basically, any lease that isn’t an FSG. This is the most common lease, and it’s most easily explained as a modified FSG.

First-time operators or owners entering an unproven market will likely want to first focus on modified gross or percentage rent leases. However, FSGs are certainly attractive.

Length of Lease

Landing on a lease amount that you can live with is only part of the battle. Far too many people overlook the length of their lease, focusing too hard on the amount.

So, let’s take a look at some crucial factors you need to consider before signing anything.

  • Base Term. Let’s say you’ve invested several million dollars into your project. It’s sort of hard to imagine paying that investment off in two years, isn’t it? So, a two-year lease probably isn’t ideal. Give yourself the time you most reasonably need to open your doors and make money. Again, don’t focus solely on the amount of the lease.
  • Option Periods. Taghdiri explains term options thusly: “Jump into the pool safely before knowing what’s in it.” The real-world example is easy enough to understand. Agree to a three-year lease but bake one or two (or more, if you want or can) five-year renewal options into the agreement. Doing so means that you can trigger the renewal prior to the term’s conclusion. In other words, the landlord won’t be able to (easily) kick you out if you want to keep leasing the space. Just be aware that your landlord will likely also want to bake new terms into the agreement along with the renewal options.
  • Early Termination Rights. When it comes to this element, Taghdiri explains that this may be limited to longer-term (ten years or more) leases. Essentially, it’s what it sounds like. You should be confident in your concept before you even get to the lease stage. However, it’s not a bad idea to have an early exit plan in mind. So, you may be able to sign up for a long-term lease but bake in an 18- or a 24-month termination clause. Just remember that if you don’t exercise this agreed-upon right within the timeframe, you’ll be responsible for the original term of the agreement.

The Million-Dollar Question

You likely have a burning question searing itself into your brain right now. It’s a common question: “How much rent should I pay?”

There are a few ways to approach a satisfactory answer. The bullshit answer is, “Whatever you can afford for the space you really want.”

That’s the first step toward blowing a budget, blowing out already razor-thin margins, and skyrocketing costs.

One way to approach the how-much question is due diligence and comparables. What are the comps in your selected area? What are people paying in the neighborhood? What’s best for your business, and is that identified in your pro forma?

That said, Taghdiri did present a general lease amount rule. Try to keep your rent at 11 percent of gross sales, or less. Ten percent is even better, obviously. Anything less than that and you’re a master negotiator.

Image: Randy Laybourne on Unsplash

Apple iPad and Apple Pencil with calendar on screen
by David Klemt David Klemt No Comments

5 Reasons Why You Need a Calendar Audit

5 Reasons You Need to Conduct a Calendar Audit

by Jennifer Radkey

Apple iPad and Apple Pencil with calendar on screen

Keeping a hospitality business running smoothly takes an immense amount of organization, and at times you may feel pulled in a million directions at once.

As an operator of a restaurant or bar, your daily calendar may seem like an endless stream of tasks.

You are most likely already using some sort of organizational tool: an agenda, calendar, your phone, or Post-Its all over your office walls. But when was the last time you actually analyzed your calendar?

I’m going to challenge you to sit with your calendar and take a deep-dive audit of just how you are spending your time.

Here are the five reasons you need to do a calendar audit today.

You Aren’t Making Money or Reaching Goals

As the operator of your hospitality establishment, you are responsible for your business’ success. So, dissect your calendar.

What actions are you taking on a daily or weekly basis that directly lead to making money? What percentage of your time is spent on growing your business, rather than running your business? There is a difference.

You are Burnt Out

When you are not at your best, your business will not be at its best. It’s as simple as that.

How many daily operational tasks are you taking on that could be delegated to someone else? You don’t need to be involved in every aspect of the daily operations of your business.

Take a look at your calendar and highlight any tasks you have been doing that could easily be done by someone else on your team. Then, give those tasks away.

Team Morale is Low

Go back and audit your calendar.

When was the last time you scheduled a team meeting? How about individual meetings with employees to go over their successes, growth opportunities, etc.? Is there regular time delegated to improving your workplace culture?

Carve some time out for the people who choose to spend their days working for you, and watch team morale improve.

You Feel Stuck in a Rut

Maybe your business is doing well but has plateaued. Maybe you aren’t excited to go to work anymore. Take a close look at your calendar.

What have you done in the past week or month to create excitement? For example, did you attend any industry related shows or events?

As operators, it is easy to get stuck in a daily routine that doesn’t allow time for creativity. However, it is imperative to schedule time to be inspired.

Your Work/Life Balance is Off

The hours can be long, and with so much to do, you can often feel as if your entire life is your work. Take a close look at your calendar.

Are you scheduling in family time? Time for friends? Time for physical health? Hobbies? Fun?

This can be as simple as scheduling time for something you enjoy that changes up your week:

  • A 15-minute call with your mom every Monday morning.
  • Walking/biking to work twice a week.
  • Meeting up with a friend once a week for a coffee.

We often say that we will do these things. However, unless they are prioritized and written down they aren’t going to happen as much as we need them to.

Performing a calendar audit can be eye-opening and give us an entirely new perspective on how we are using our time. Doing so can help us improve time management, productivity, happiness, and goal achievement.

So, go ahead and mark some time for a calendar audit into your calendar. You will thank yourself later that you did.

Cheers to professional and personal well-being!

Image: Omar Al-Ghosson on Unsplash

"What Now?" graffiti in black spray paint on wall
by David Klemt David Klemt No Comments

What Current CDC Guidelines Mean

What Current CDC Guidelines Mean for Restaurants and Bars

"What Now?" graffiti in black spray paint on wall

Less than two weeks ago, the U.S. Centers for Disease Control and Prevention once again updated the agency’s Covid-19 guidance.

For many in America the updates simply led to more confusion. Others see the changes to CDC guidance as another blow to the agency’s credibility.

The reality of the situation appears to be rather easy to understand. Business owners are most likely ignoring the CDC and just following state and local requirements.

And who can blame operators and their teams for doing so? After all, the guests they serve are likely more concerned about local guidelines than CDC guidance.

States Make First Moves

At this point, it appears the CDC is following rather than leading the way. Several states moved to rescind Covid-19 mandates around two weeks before the CDC changed its guidance.

For example, Nevada Governor Steve Sisolak lifted the state’s mask mandate on Thursday, February 10. Unlike in other states, the mandate was rescinded regardless of vaccination status.

Five days later, California lifted its indoor mask mandate for the vaccinated. The unvaccinated, as of February 16, are still required to mask indoors.

However, the requirement for businesses to check for proof of vaccination was also rescinded. Of course, businesses can still require masks and proof of vaccination if they so choose.

So, Now What?

The CDC and many state health officials are encouraging caution. Another surge in infections is expected.

In fact, the CDC points out that Covid-19 has not yet reached its endemic stage. Some predict the pandemic won’t become endemic until some time in 2023.

For now, the CDC is using three designations to identify different areas throughout the country: low risk, medium alert, and high alert.

Per the agency’s website, 90 percent of the US population is in a low-risk or medium-alert area. People can check their community’s current CDC designation via their new map here.

Low, Medium, High

The three CDC designations each carry specific guidance:

  • Low Risk: People should stay current with their vaccinations. If someone has symptoms, they should get tested.
  • Medium Alert: In addition to Low Risk guidance, people who at high risk of serious illness if infected should ask their healthcare providers if they should wear masks indoors and/or take other Covid-19 precautions.
  • High Alert: Wear a mask indoors, stay current with vaccinations, and get tested if symptoms are felt.

Endless CDC guidance revisions have mainly resulted in confusion and an unfortunate lack of faith in the agency. So, these recommendations really don’t mean much for operators.

Rather, business owners should make they’re in compliance with state and local requirements while taking steps to ensure workers, guests, and their community are safe.

Image: Tim Mossholder on Unsplash

Stay Weird neon sign with purple background
by David Klemt David Klemt No Comments

Stand Out with Weird Holidays: Feb. ’22

Stand Out with Weird Holidays: February ’22

by David Klemt

Stay Weird neon sign with purple background

Want to stand out from from other restaurants and bars in your area? Then commit to keeping it weird.

Several “holidays” are set against every date on the calendar, and February is no exception. These holidays range from mainstream to food-centric to weird.

Pay attention to the latter to raise eyebrows, carve out a niche for your restaurant or bar, and attract more guests. Why do what everyone else is already doing?

Of course, you shouldn’t try to celebrate every holiday, weird or otherwise. And this month’s list in no way includes every odd holiday.

Focus on the days that are authentic to your brand; resonate with your guests; and help you grab attention on social media.

For last month’s list, click here.

February 1: Work Naked Day

Actually, ignore this holiday. But wow, February is coming out swinging.

February 2: Play Your Ukulele Day

Does anyone on your staff play the ukulele? What about your guests? If you think you can handle it, encourage them to bring their ukuleles and throw down at your restaurant or bar. Live entertainment has never sounded so tropical.

February 7: E-Day

This holiday, contrary to what you may be thinking, isn’t about celebrating electronics, email, or vaping. Rather, E-Day is dedicated to honoring the mathematical constant e. Your Pi Day fans will likely appreciate you celebrating E-Day, which you can do by offering F&B items that begin with the letter “E.”

February 8: Laughy and Get Rich Day

If only it were that easy, eh? This holiday is all about having fun, having some laughs, and appreciating simple pleasures. If any holiday is about the pursuit of happiness and enriching our lives with fun and laughter, this is it.

February 15: National Gumdrop Day

With all the candies out there, do people still know about gumdrops? They can be traced back to the 17th century and were first written about in the 1850s. Talk about a throwback! If you can get your hands on some, they make great garnishes for the right cocktails.

February 18:  National Crab Stuffed Flounder Day

Do you have flounder? Do you have crab? And do you have a kitchen staff that can stuff the latter into the former? Then you have everything you need to celebrate but this simple, seafood-focused holiday.

February 22: National Cook a Sweet Potato Day

Of course, if you’re operating a restaurant—or a bar with a kitchen—you can cook more than one sweet potato. Rich in nutrition and flavor, sweet potatoes can be the star or an incredible co-star in a wide range of dishes. Come up with a sweet potato-focused holiday menu and promote it on social media.

February 24: National Toast Day

This holiday is great for featuring breakfast all day, breakfast for dinner, toasted sandwiches… You can also plan and execute an event during which you host a group toast with a specific drink. Cheers!

February 26: National No Brainer Day

Knowing your guests and community will really help you celebrate this holiday. If there’s a food or beverage item or a local custom or event you know your guests love, this is the day to create a promotion around it.

February 28: National Floral Design Day

It’s interesting that this holiday takes place two weeks after Valentine’s Day, a holiday that has traditionally involved giving or receiving flowers. Intended to celebrate the art of floral design, you can celebrate this holiday with edible flower garnishes. Such garnishes just happen to photograph very well for social media, so your guests can help promote your venue.

Image: Dan Parlante on Unsplash

United States Capitol Building beneath cloudy skies
by David Klemt David Klemt No Comments

NRA Sends Survey Results to Congress

NRA Sends Economic Survey Results to Congress

by David Klemt

United States Capitol Building beneath cloudy skies

On the heels of the IRC’s National Day of Action to Save Restaurants, the National Restaurant Association has sent a letter to Congress.

Sent by Sean Kennedy, executive vice president of the NRA, the letter urges Congress to finally replenish the RRF.

“After two years of closures, COVID-19 variants, worker shortages, and inflationary pressure,” reads the letter, in part, “a dangerous number of restaurants are at the end of the line.”

A Critical Moment

As I’ve written several times (exhaustively, some would say), the bill meant to replenish the Restaurant Revitalization Fund was first introduced in June 2021. We’re now a week away from February 2022.

In August of last year, a unanimous consent vote to provide $43 billion in emergency funding to the industry was shot down by Senator Rand Paul (R-KY). Build Back Better passed the House in November 2021. However, it didn’t include the Restaurant Revitalization Fund Replenishment Act.

As expressed by Sean Kennedy in an email sent yesterday, we’re at a critical juncture. Kennedy points to two dates when making his point: February 18 and March 1.

All government spending expires on the former date, and President Joe Biden delivers his State of the Union Address on the latter date. Kennedy suggests that the only large-scale spending bill of 2022 will be passed between those dates.

So, it’s probable that we have mere weeks to pressure Congress into replenishing the RRF.

The Numbers

Kennedy’s letter to Congress is addressed to Nancy Pelosi (D-CA), Chuck Schumer (D-NY), Kevin McCarthy (R-CA), and Mitch McConnell (R-KY).

Citing the results of the NRA’s largest-ever economic survey, Kennedy urges action on the RRF from Congress. The NRA’s executive vice president estimates that replenishing the RRF will save over 1.6 million restaurant jobs.

Below are the survey results included in Kennedy’s letter to Congress:

  • 88 percent of restaurants saw decline in customer demand for indoor on-premises dining due to the omicron variant.
  • 76 percent of operators report that business conditions are worse now than they were just three months prior.
  • 74 percent of operators say their restaurant is less profitable now than it was prior to the pandemic.
  • Almost 50 percent of restaurant operators who didn’t receive RRF grants feel it’s unlikely that they’ll stay in business beyond the pandemic without a grant.
  • 94 percent of restaurant operators who applied for an RRF grant but did not receive funding said a future grant would enable them to retain or hire back employees.
  • 96 percent of recipients said the RRF grant made it more likely that they would be able to remain in business.
  • 92 percent of recipients said the RRF grant they received helped them pay expenses or debt that had accumulated since the beginning of the pandemic.
  • The initial round of grants, per the NRA, likely saved more than 900,000 restaurant jobs.

Now is not the time to relent—we need to keep up the pressure. If Kennedy and the NRA are correct, we have only weeks to receive the help our industry needs and deserves.

Image: Harold Mendoza on Unsplash

Restaurant worker using SevenRooms on tablet
by David Klemt David Klemt No Comments

SevenRooms Kicks Off 2022 with Growth

SevenRooms Kicks Off 2022 with Growth

by David Klemt

Restaurant worker using SevenRooms on tablet

SevenRooms continues their growth by kicking off 2022 with the announcement of a new, crucial addition to the team.

Today, the hospitality technology company announces the hiring of Brent-Stig Kraus. Formerly the senior vice president of sales for ChowNow, Kraus will take on the role of chief revenue officer at SevenRooms.

As CRO, Kraus will play a crucial role in further accelerating SevenRooms’ impressive global growth. The company’s new CRO will accomplish this goal by identifying and pursuing partnership opportunities, targeting high-growth sales, and scaling sales globally.

Steady Growth

In March of last year, SevenRooms brought on Pamela Martinez as the company’s chief financial officer.

By September of 2021, the platform announced a multi-year partnership with TheFork. In particular, this was major news for operators throughout Europe and Australia. Additionally, this partnership illustrates how SevenRooms is pursuing long-term global growth.

A month later, in October of last year, the company entered into a partnership with Olo. In doing so, SevenRooms ensures clients who also use Olo can capture their off-premise customers’ information. That data then creates profiles for those customers automatically, meaning operators can learn more about and effectively market to customers who engage with them via online orders.

In December of 2021, SevenRooms and ThinkFoodGroup—the hospitality company behind Chef José Andrés’ portfolio of restaurants—announced their partnership. Interestingly, this partnership sees ThinkFoodGroup joining SevenRooms in an advisory role.

And it’s not just filling crucial C-suite roles and entering into partnerships that benefit operators and the industry that are examples of SevenRooms’ rapid growth.

Along with hiring Martinez as CFO, the platform launched Direct Delivery in March 2021. This online ordering solution helped operators eliminate third-party fees; retain control of guest data; and fulfill guest desire to order from restaurants directly and seamlessly.

Finally, the company ended 2021 by sharing their 2022 trend predictions.

Why this Matters

Tech innovations are crucial to the long-term future of the hospitality industry. Restaurateurs, bar owners, and hoteliers, were once wary of adopting new tech.

Now, they’re investing more to streamline operations; automate reservations, online ordering, and marketing campaigns; and improving customer and staff relationships.

However, without growth a platform eventually becomes outdated. When that happens, the investment made by an operator to include it in their tech stack becomes a burden and liability.

As SevenRooms continues their growth, they prove worthy of an operator’s support and investment. We continue to support SevenRooms—without receiving any compensation for doing so—in large part because of the platform’s growth.

In addition to their available tools, we’re always eager to see what they’ll release next to make life simpler for operators.

Image: SevenRooms

Chef doing prep alone in kitchen
by David Klemt David Klemt No Comments

US Operators, Take Action Today

US Operators, Take Action Today

by David Klemt

Chef doing prep alone in kitchen

Today is the day to let Congress know the clock has run out on our patience for them act on replenishing the RRF.

In all honesty, the industry’s tolerance for governmental inaction on the RRF ran out last year. Right around the time, I’d say, the RRF application portal closed, leaving almost 200,000 applicants without crucial grants. As a reminder, the portal closed after just 21 days of launching.

Today is the National Day of Action to Save Restaurants. The Independent Restaurant Coalition is leading the charge for this campaign.

To participate, follow the IRC on Instagram, Facebook, and Twitter. Additionally, click here to sign up for their emails. Spread the word and encourage staff, guests, your family members, and friends to take part as well.

Below you’ll find more details for taking action to #SaveRestaurants and #SaveBars today and moving forward.

Industry Advocacy

The IRC has been fighting and advocating for the industry since the start of the pandemic. Today, they’re asking owners, operators, workers in all segments of the industry, communities, and guests to throw their support behind this crucial fight.

So, today is the day to inundate your representatives with phone calls. Dial this number to reach the Capitol switchboard: 202-224-3121. The IRC provides state-specific fact sheets, which can be found here.

For an example of what you’ll find on a state’s fact sheet, here are some details for Nevada:

  • The leisure and hospitality industry accounts for 87.6 percent of all jobs lost in the state.
  • In Nevada, the industry is worth $9.9 billion, with 5,980 restaurants and bars throughout the state.

Those are just two pertinent facts about the industry in Nevada.

Along with phone calls, people should contact their representatives via email. Follow this link to email Congress and tell them to replenish the RRF.

Send a Message

Of course, social media will also play an important part in today’s campaign. Flooding Instagram, Facebook, Twitter, and other channels with #SaveRestaurants, #SaveBars, and #ReplenishRRF should get Congress’ attention in a very public, very newsworthy way.

Click here to access the IRC’s social media and website toolkit.

It’s time to let Congress know we’re doing waiting for action. We’re done with the lip service, platitudes, and empty words of support. And we’re done with the broken promises, disarray, and inaction.

Personally, I plan on once again letting my state representatives know that I’m watching. Those who don’t do their jobs and help replenish the RRF won’t be receiving my vote. I can’t support those who won’t support us. Whether you want to send that message is up to you.

Today, however, make your voice heard and send at least this message: We demand Congress acts now.

Image: Rohan G on Unsplash

Full restaurant dining room at gastrolounge Rusted Crow in Detroit, Michigan
by David Klemt David Klemt No Comments

January 18 is National Day of Action

January 18 is National Day of Action to Save Restaurants

by David Klemt

Full restaurant dining room at gastrolounge Rusted Crow in Detroit, Michigan

Tomorrow, January 18, the Independent Restaurant Coalition is spearheading the National Day of Action to Save Restaurants.

The IRC is asking all hospitality professionals, vendors, guests and communities to participate.

In short, the time for asking nicely is over. On Tuesday, we must all demand that Congress actually put action to their professed support of the hospitality industry.

On Tuesday, the IRC will send out an email detailing how everyone can push for action on replenishing the RRF. So, click here to sign up for email updates from the coalition.

People can also follow them on Instagram for National Day of Action to Save Restaurants details.

A Dire Situation

According to an email sent out by the IRC (again, you should sign up), a significant number of restaurants and bars find themselves in dire situations.

Per IRC survey results:

  • more than one in four restaurants (28 percent) that didn’t receive RRF grants are facing eviction;
  • almost 50 percent are facing bankruptcy; and
  • close to 60 percent of restaurants are reporting sales drops of more than 50 percent during the surge in Omicron infections.

For context, let’s review how RRF grants helped some recipients survive:

  • Ten percent are facing eviction.
  • Twenty percent are facing bankruptcy.

Is an RRF grant a silver bullet? No, but it’s certainly valuable ammunition in the fight for the survival of independent restaurants and operators, and therefore the industry itself.

Time is Up

Actually, time ran out months ago. Congress has allowed months to go by without taking any meaningful action.

In fact, one US Senator, Rand Paul (R-KY), blocked a vote to provide the industry with $43 billion in emergency funding. The senator killed the unanimous consent motion back in August of 2021.

As a refresher, the RRF grant application portal was closed last year on May 24. A bipartisan group introduced the Restaurant Revitalization Fund Replenishment Act of 2021 in June.

And like I mentioned, emergency funding was smacked off the table just two months later.

In November, Build Back Better was passed. Of course, it didn’t include the RRF Replenishment Act. So, apparently building America back better doesn’t include restaurants, bars, lounges, etc.

It’s clear that America’s politicians and lawmakers are content to not accomplish much. “Owning” one’s opponents via social media and sound bites is apparently much more important.

Sniping at one another, not doing the jobs they were elected to do, is the order of the day. Meanwhile, independent owners and operators are being left out in the cold and crushed under the weight of a web of inconsistent Covid-19-related mandates and guidelines. Their staff members are expected to act as the Covid police, risking their health and safety.

I could go on but we all know what’s happening: The people elected to represent the people are abusing the privilege by ignoring us.

The time for asking nicely for Congress to take action is over. It’s time to demand action.

Image: Stanford Smith on Unsplash

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