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Bar operations | KRG Hospitality - Part 27

Bar operations

Wooden spoon loaded with salt
by David Klemt David Klemt No Comments

American Trends 2022: Technomic

American Trends 2022: Technomic

by David Klemt

Wooden spoon loaded with salt

Two weeks ago, I reviewed and shared Technomic’s “Canadian Trends: Looking Ahead to 2022” report, and now it’s America’s turn.

Not too surprisingly, the US and Canada are similar in terms of a few 2022 trend predictions.

And while the Omicron variant of Covid-19 is causing some restaurants and bars to close, there is some good news from Technomic.

Salt

First, a difference between America and Canada. As you may recall from my review of Canadian predictions, Technomic predicts butter will be even more important next year.

Interestingly, salt is the big prediction for the United States. The reasoning is similar: people are seeking out comfort in these difficult times.

Technomic’s “2022: The Year of the Climb” report states flat out that, “Salt is the new fat.”

The industry intelligence firm predicts that salt will be increasingly important in kitchens—and on tables—in 2022.

For example, Technomic expects operators to focus salt-cured fish and meats. Of course, that doesn’t just meet a predicted consumer demand. Cured foods can be preserved for longer, which is appealing to operators.

Seaweeds, salt blends, and salty sauces will be used in the kitchen. According to Technomic, some of those will replace (or accompany) traditional salt on tables.

Going further, Technomic predicts that salt will find its way into cocktails. This can be in the form of salty ingredients or salt water, a trend from a few years ago.

Creative Prep

Let’s stick with the kitchen a bit longer.

This is one of the strongest similarities shared by the US and Canada. Technomic predicts that operators will need to focus on cross-utilization and creativity.

As you’ve likely already figured out, this is because of supply chain issues. The more ways items can be used without introducing new SKUs, the easier things may be for operators.

Some examples of cross-utilization suggested by Technomic:

  • Roasting, grilling, and blistering items normally served raw.
  • Pickling ingredients.
  • Fermenting items.
  • Turning some items into jams.
  • Aging some ingredients.

Labor Challenges

Obviously, the labor shortage is felt throughout North America. Unfortunately, this is another similarity when comparing Technomic’s American and Canadian 2022 trend predictions.

KRG Hospitality has addressed the need for the industry to make significant changes several times this year. In particular, founder and president Doug Radkey published a book, Hacking the New Normal, calling for change to improve working conditions and the industry’s long-term survival.

Technomic is suggesting the same. The firm predicts the following for 2022:

  • Wage increases across the board.
  • Benefits (healthcare, emergency child care, 401(k), and more).
  • Virtual hiring events.
  • Referral and signing bonuses.

However, more needs to be done. The industry doesn’t simply need to revamp its image, it needs to:

  • address—and not dismiss—issues raised by current hospitality professionals;
  • solve the problems that led to so many hospitality workers quitting jobs and giving up on the industry;
  • implement real solutions for the problems the industry has faced and, frankly, nurtured for decades.

And that’s just the start. If we don’t face our industry’s challenges head-on, there won’t be much of an industry in the future.

The Battle for Comfort

Yes, comfort food will be important next year. Hence the entire section on salt above.

However, when I mention comfort in this section I’m referring to personal comfort levels.

You’ve likely been hearing from industry peers and seeing on social media that a number of bars are closing until December 29 or December 30. These temporary closures are due to spikes in positive Covid-19 cases, mostly driven by Omicron.

Many Americans, eager to return to a semblance of their pre-Covid lives, want to spend time in restaurants and bars. However, people need to balance their comfort levels with their desire for social experiences.

In response, Technomic predicts that operators will need to balance the on-premise and off-premise. In other words, omni-channel operators must dial in their offerings.

Per Technomic, operators have to figure out their mix: interactive in-person experiences, takeout, and delivery.

Good News

Technomic is making two 2022 predictions that should come as a relief to operators.

First, Q1 of 2022, per Technomic, “will reveal a particularly strong year-over-year performance” in comparison to 2021.

Overall, the firm projects a 10.4-percent sales increase for 2022 when compared to 2019 sales.

There is, however, a caveat. We’ll have to take rising menu prices into account when analyzing this year’s and next year’s sales levels.

For those wondering which category is predicted to perform the best, Technomic identifies limited-service restaurants will recover quickest.

In contrast, full-service will see slower recovery. Business, leisure, and indeed “bleisure” travel will have an impact on full-service traffic.

So, 2022 isn’t going to magically return to pre-pandemic “normal.” However, should Technomic’s conservative sales prediction prove accurate, recovery is on the menu.

Image: Jason Tuinstra on Unsplash

Square terminal in restaurant kitchen
by David Klemt David Klemt No Comments

Square: 2022 Threats & Opportunities

Square: 2022 Threats & Opportunities

by David Klemt

Square terminal in restaurant kitchen

As all hospitality professionals know, the past nearly two years is imposing rapid change on the industry, necessitating rapid, strategic adaptation.

The key word in the above sentence isn’t “adaptation,” it’s “strategic.”

Of course, it’s hard to make strategic choices without as much information as possible.

To that end, we’ve reviewed Square‘s recently released “Future of Restaurants: 2022 Edition.” This is the company’s second annual Future of Restaurants report.

Square partnered with Wakefield Research, surveying 500 operators and 1,000 consumers to identify 2022 threats and opportunities.

Threat: Labor Shortage

Most operators aren’t going to want to read this prediction from Square. However, we can’t identify and adapt for opportunities if we don’t acknowledge threats.

Per Square’s report, the labor shortage may never see a correction. In other words, welcome to yet another new normal.

More than 70 percent of operators say they’re facing a labor shortage, per Square. Just over 20 percent of available positions were, at the time the survey was conducted, unfilled.

Instead, operators will likely, according to Square, need to make operational and work culture changes:

  • Improve working conditions. For example, encouraging and acting on team feedback. Another example? Modernizing scheduling.
  • Ensure workers are being mentored and not simply managed.
  • Hire, train, assign tasks, and schedule more strategically to operate with a smaller team.
  • Offering incentives that entice higher-quality candidates to work for you.

One participant quoted in the Square report claims that QR code ordering dropped their labor cost percentage by 150 percent.

Threat: Lack of Tech

As SevenRooms suggested when looking forward to 2022, technology solutions can lessen the burden of labor shortages. That leads us to another big threat: failing to embrace tech.

Some operators bristle at the word “automation.” For many, it conjures an image of robots in the kitchen and delivering food to tables.

Obviously, we’re opposed to replacing staff with any form of automation. However, we support automating tasks if that means team members are better utilized.

Why not automate inventory? Why not automate online order filling? If it improves operations and the guest experience, automation is less threatening.

According to Square’s report, 62 percent of operators think automation is appealing for managing online, delivery, and contactless orders. Ninety percent of operators say that back-of-house automation—if staff can focus on more important tasks—is a good idea.

More than 90 percent think automated inventory is an appealing solution.

It has taken a lot of time for hospitality to catch up to other industries in embracing tech. But Square reports that 36 percent of restaurants upgraded their business tech in 2021.

Of course, automation will become a threat if operators lean too heavily into it and stop paying attention to detail.

Phrased another way, be tech-savvy, not tech-reliant.

Opportunity: Omni-channel

Square see implementing an omni-channel strategy as the way forward. In fact, their general manager for Square Restaurants, Bryan Solar, said the following:

“We see the time of the dine-in only or takeout only as largely done forever.”

Going omni-channel (diversifying) in the restaurant space means making online ordering and delivery important elements within the overall business strategy. To that end, Solar posits kitchens will grow in size to better handle online orders.

Square’s survey reveals some intriguing numbers:

  • 13 percent of consumers say they’ll avoid restaurants that don’t offer online ordering.
  • Among restaurants with online ordering, those channels generate 34 percent of their revenue.
  • Over the past year, 54 percent of restaurants either added or expanded online ordering channels.
  • Online ordering is likely here to stay: 69 percent of respondents plan to offer it post-Covid-19.
  • 24 percent of operators are planning to allow guests to order alcohol from them online.

Another interesting set of numbers pertains to first- and third-party delivery. As we’ve stated several times, we much prefer operators offer first-party or direct delivery. According to Square, 49 percent of operators plan go direct delivery. More than half—62 percent—will pursue third-party delivery. That suggests that some operators will offer both.

Opportunity: Direct Ordering

When it comes to engaging online guests, operators need to control the experience. As I wrote for another publication years ago, a restaurant or bar’s website is still very important.

This statistic proves that statement true: Per Square, 68 percent of online guests want to order via a restaurant’s website or app, not a third-party.

More than likely, a significant portion of those guests want to know they’re supporting a restaurant and its staff directly. Hence the importance placed on ordering via the website or their own branded app.

So, operators would do well to ensure their websites feature an ordering widget. Or, they can opt to have an app built (or at least skinned) for their business.

Opportunity: Kiosks

According to Square’s survey results, 79 percent of consumers prefer ordering from kiosks over ordering from staff.

Most consumers and operators likely associate ordering kiosks with fast food restaurants. However, other categories can also benefit from these devices.

Close to half—45 percent—identified it as a preference when ordering at a casual-dining restaurant.

And fine dining isn’t immune to the convenience of tech. A little over 20 percent of consumers prefer to order via kiosk in the fine-dining space.

Overall, kiosks speak to the guest desires for convenience and safety. More than a third indicated that ordering via digital menu is appealing because they don’t have to touch a menu someone else has touched. And 37 percent like a digital option because they don’t have to wait for a server to bring them a physical menu.

Eleven percent of Square survey respondents will avoid a restaurant if they don’t offer digital menus.

Nearly half (45 percent) of restaurants are planning to offer QR code menus post-Covid-19. Another benefit of digital menus is dynamic pricing. As costs fluctuate, operators can increase or reduce prices easily without printing new menus.

Outlook

Representing a stark contrast from 2020 survey results, nearly 60 percent of operators say the survival of their restaurants is a concern in 2022.

That’s still a high number but vastly lower than how operators answered about 2021. Last year, 92 percent of operators surveyed said they were worried about survival.

According to Square’s report, operators are looking past surviving and making long-term plans. That’s a welcome sign that confidence is improving.

To review Square’s “Future of Restaurants: 2022 Edition” report in its entirety, click here.

Image: Patrick Tomasso on Unsplash

SevenRooms guest data image
by David Klemt David Klemt No Comments

SevenRooms Predicts 2022

SevenRooms Predicts 2022

by David Klemt

SevenRooms guest data image

As we near the end of a tumultuous 2021 we must look ahead to 2022 to set our industry up for best strategies, innovations, and recovery.

SevenRooms is doing just that, looking at what operators should consider to meet guest expectations next year.

In a blog post on the company’s website, SevenRooms reveals what they believe are the keys to success in 2022.

Let’s jump in.

More is More

The first quarter of 2022 will mark two years of the pandemic and its affects on the industry.

As SevenRooms says, some guests will not have been out of their homes for two years. The company predicts this contingent will be looking to unleash pent-up demand.

Of course, that represents an opportunity for operators. Another wave of pent-up demand can mean a boost in traffic and revenue.

However, guest expectations will be sky high. That cliché that less is more? Yeah, you can toss that right out.

More will be more for this contingent of guests looking to dine and drink out after feeling cooped up for month after endless month.

Sure, some guests are aware that operators are facing labor shortages, increased costs, and other pandemic-driven challenges. They know that workers are overwhelmed and finding themselves in hostile confrontations they certainly don’t deserve.

And sure, some guests are sympathetic to those struggles. However, they have their demands and expect restaurants, bars, and hotels to meet them.

What can operators do to meet those demands? In fact, what can they do to anticipate and overdeliver on guest expectations?

SevenRooms has a couple suggestions.

Collect guest data. At this point, this should be a given. How can an operator engage with and retain guests if they don’t really know anything about them?

Embrace more tech. Platforms like SevenRooms can handle a restaurant or bar’s reservations quickly and easily. This is a feature that, per SevenRooms, more than half of guests expect a restaurant or bar offer. Some platforms can also automate marketing; send guests post-visit surveys; and tackle review aggregation.

Convenience Reigns Supreme

Here’s a quick, impromptu survey:

Do you prefer a seamless restaurant, bar or hotel experience, or do you like frustrating dining, drinking and lodging experiences?

I’m going to go ahead and assume you prefer the former option. In other words, you like what your guests like: convenience.

Well, SevenRooms is predicting that the desire for convenience will only grow stronger among guests.

Yes, delivering on the increasingly important topic of convenience will rely on collecting data. But rather than view it as just one more task, SevenRoom suggests looking at it in a more positive light.

A number of the conveniences guests expect can be automated. They can even help ease the burden of the labor shortage somewhat.

For example, contactless ordering and contactless pay are close to becoming standards. Offering those features to guests means meeting expectations, thereby delivering an excellent guest experience. On-demand ordering and paying can also ease some front- and back-of-house pressure.

Collecting guest data allows management and front-of-house staff to add personal touches before a guest is even seated. Again, seamless, excellent guest service.

Another convenience? Online ordering. SevenRooms isn’t the first to predict that on-demand ordering is here to stay. In fact, a suite of conveniences will be important moving forward:

  • Online ordering during in-person visits and for delivery or pickup.
  • A user-friendly reservation system that goes deeper than just picking a date and time. Why not allow guests to select seats and even request upgrades?
  • A virtual waitlist. Not only is this convenient, SevenRooms says this feature can boost walk-in traffic and reduce abandonment.
  • Contactless, mobile paying options.

There you have it. Two seemingly basic predictions—higher expectations and a desire for even more convenience—with the potential to boost traffic, loyalty, and revenue.

Image: SevenRooms

Front of house staff member using SevenRooms
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ThinkFoodGroup Partners with SevenRooms

ThinkFoodGroup Partners with SevenRooms

by David Klemt

Front of house staff member using SevenRooms

Reservation and guest engagement and retention platform SevenRooms and ThinkFoodGroup announce their new partnership today.

This announcement marks at least the third high-profile partnership involving SevenRooms.

One partnership from earlier this year is with online ordering platform Olo. Another is between SevenRooms and TheFork.

As is normally the case when it comes to SevenRooms partnerships, the relationship will be collaborative.

ThinkFoodGroup be onboarding the restaurants in their portfolio onto the platform. This maneuver will deliver several benefits through the full SevenRooms suite:

  • Reservation, waitlist and table management
  • Marketing automation
  • Online ordering capability
  • Rating aggregation

Additionally, ThinkFoodGroup will be joining SevenRooms in an advisory role. The platform will benefit from the expertise of Chef José Andrés and the ThinkFoodGroup team.

In short, ThinkFoodGroup will gain valuable insight into their guests throughout their entire portfolio. SevenRooms will gain valuable insights they can use to improve their platform and better serve the hospitality industry.

Interestingly, ThinkFoodGroup appears to have been using SevenRooms prior to this newly announced partnership. The platform is already in use at:

  • The Bazaar by José Andrés at the SLS South Beach
  • Bazaar Meat by José Andrés at The Sahara Las Vegas
  • China Chilcano in Washington, D.C.
  • China Poblano at The Cosmopolitan of Las Vegas
  • é by José Andrés at The Cosmopolitan of Las Vegas
  • Jaleo at The Cosmopolitan of Las Vegas

From Joel Montaniel, CEO and founder of SevenRooms:

“With the hospitality industry returning to full-speed, it’s more important than ever for operators to prioritize technology platforms that are hyper-focused on helping restaurants thrive. We’re thrilled to welcome the ThinkFoodGroup team to our SevenRooms family, helping them build upon their incredible guest experiences across their properties. Most importantly, we look forward to learning from José and his team’s incredible expertise and unique perspective. Supporting and advocating for the hospitality industry has always been at the core of our business. There is so much work for us to do as the industry recovers, and we look forward to walking in lockstep with José and his team to build back better.”

From Chef José Andrés, CEO, co-founder and executive chairman of ThinkFoodGroup:

“Providing outstanding experiences for our guests has always been a priority. In light of the challenges brought on by COVID, we realized just how important it was to have a partner who can help us bring them to life in a seamless way. I am excited to bring SevenRooms into our restaurants globally, and for ThinkFoodGroup to also join the company as an industry advisor.”

From Sam Bakhshandehpour, President of ThinkFoodGroup:

“Pushing the limits of what’s expected in hospitality is at the core of our business. SevenRooms is completely transforming the restaurant technology platform, and we’re thrilled to partner with a like-minded company who thinks progressively and has the cutting-edge technology to challenge the status quo. Together, we will collaborate on building solutions that put operators’ success at the forefront.”

This year’s SevenRooms partnerships, announcement of a new CFO, and innovations (such as their Direct Delivery module), show the platform’s commitment to improvement and supporting the industry.

When operators are selecting the platforms to include in their tech stacks, ease of use and integration, along with growth, should be among their considerations. So, too, should be industry advocacy.

SevenRooms continues to prove that they deserve top marks for each of those crucial elements.

Image: SevenRooms

Quotes provided by SevenRooms via press release

by David Klemt David Klemt No Comments

5 Books to Read this Month: December

5 Books to Read this Month: December

by David Klemt

Flipping through an open book

This month’s fun and informative book selections will help you develop next-level culinary, beverage and leadership skills this December.

To review November’s book recommendations, click here.

Let’s dive in!

Can I Mix You a Drink?

Superstar T-Pain partners with mixologist Maxwell Britten, formerly the bar director for James Beard Award winner Maison Premier. The fifty recipes in Can I Mix You a Drink? match up with a lyric or sentiment from T-Pain songs. There are amusing and insightful anecdotes from T-Pain, and the high-end, glossy photography in the book match the high-end recipes. Overall, this book is a vibe, much like a great cocktail bar.

The Oxford Companion to Spirits & Cocktails

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

The Alchemist Cocktail Book: Master the Dark Arts of Mixology

When one thinks of chains, they tend to think of global fast-food and fast-casual brands. However, The Alchemist stands in stark contrast to that thinking. The Alchemist is a chain of stunning, experimental cocktail “theaters.” These cocktail bar and restaurant venues elevate the cocktail to new heights, paying just as much attention to experiential and atmosphere details as drink build details. The Alchemist Cocktail Book shares 100 original Alchemist recipes, including low- and no-alcohol drinks.

Market Fresh Mixology Presents Life, Love, Happiness & Cocktails

If you’ve ever wondered what inspired someone when they were creating a now-famous cocktail, this is the book you want. Not only does mixologist Bridget Albert, senior national director of education for Beam Suntory and founder of the Academy of Spirits and Fine Service, tell the stories behind 40 cocktail recipes, she invites others to join her. Life, Love, Happiness & Cocktails features Tony Abou-Ganim, Julie Reiner, and more telling the personal stories behind their recipes.

Hacking the New Normal

Are you ready to take your restaurant, bar, lounge, hotel or resort from concept to reality in 2022? Treat yourself this holiday season to a gift that will help you achieve your goal and dream of operating a successful hospitality venue. Do you know someone who has been talking about opening a restaurant, bar or hotel but hasn’t made their move yet? Hacking the New Normal is the perfect gift for them this holiday season.

Image: Mikołaj on Unsplash

Military combat helmet in digital camouflage
by David Klemt David Klemt No Comments

Adding Veterans to Your Team

Adding Veterans to Your Restaurant, Bar or Hotel Team

by David Klemt

Military combat helmet in digital camouflage

Do more this Veterans Day by encouraging those who have served to apply and interview for available positions on your team.

There are several benefits to providing job opportunities to veterans, regardless of the country (or countries) in which you operate.

Of course, there are dos and don’ts that come along with recruiting, hiring and working with veterans.

Benefits to Hiring Veterans

Before we begin, a caveat: Remember that veterans are individuals. “Veteran” is a label, a designation, a descriptor. In no way is one person who is a veteran interchangeable with another.

That said, there are some elements of military service that are similar to those of successful hospitality operations.

Teamwork, a strong work ethic, leadership skills, precision in tasks, achieving goals, consistency in results… When a restaurant, bar or hotel team is operating at its best, it can be said they work with military precision.

Generally speaking, veteran job candidates bring experience to the table that can benefit an operator greatly.

Additionally, it’s commonly said that hospitality leadership should hire for personality because they can train requisite skills. Speaking generally again, many veterans are so used to receiving specialized training that they’ll likely appreciate and respond quickly to yours.

If you want your business to operate with military precision, why wouldn’t you hire military personnel who fit well within your team?

Questions to Ask During Interviews

Obviously, there are definite dos and don’ts when it comes to discussing a veteran’s military experience.

As curious as you may be about some aspects of a veteran’s experience, questions shouldn’t be invasive or offensive.

Some examples of questions you should ask are:

  • “What did you do (in the Air Force, Army, Coast Guard, Marines, Navy, National Guard or Reserves)?”
  • “Why did you choose that branch of the military?”
  • “How long did you serve?”
  • “Do you come from a military family?”
  • “Where were you stationed during your career in the military? Did you visit any other countries?”
  • “Where was your favorite place you visited or lived?”
  • “How do you think your experience in the military will benefit you here?”

As you can see, nothing in those questions should make a veteran applicant uncomfortable.

Questions and Behaviors to Avoid

Speaking of discomfort, there are many questions that you should never ask a veteran. Not just during the interview process, but ever.

Also, if a veteran informs you they’re uncomfortable answering a question about their service, that should be respected.

Examples of questions and topics you should avoid are:

  • “Do you have PTSD (Posttraumatic Stress Disorder)?”
  • “Do you find it hard to get back to ‘real/regular’ life after being in the military?”
  • “Did you ever get shot/stabbed/bombed?”
  • “Did you ever kill anyone?”
  • “What’s the worst thing that ever happened to you while you served?”
  • Current military conflicts, particularly if you haven’t served in the military.
  • Referring to elements of work through military analogies.
  • Insulting branches of the military if you never served.

In short, treat veterans with the respect their deserve, as you should any other member of your staff. Veterans aren’t novelties or curiosities—they’re people.

For too long, veterans have faced undue scrutiny and undeserved stigmatization. It shouldn’t be difficult to turn that around when the solution is simple: Give veterans respect; treat them like  people since that’s precisely what they are; and provide equal opportunity.

Image: israel palacio on Unsplash

Flipping through an open book
by David Klemt David Klemt No Comments

5 Books to Read this Month: November

5 Books to Read this Month: November

by David Klemt

Flipping through an open book

This month’s fun and informative book selections will help you develop next-level culinary, beverage and leadership skills this November.

To review October’s book recommendations, click here.

Let’s dive in!

Cook as You Are

The Great British Baking Show contestant Ruby Tandoh is a food writer with a half-dozen books to her name. Her latest will likely change how you look at food and its preparation. In particular, the “mini” version of Cook as You Are aims to be as inclusive as possible. The free download makes it easier for people who learn differently or require assistance in the kitchen to enjoy cooking. Cook as You Are features 100 original recipes created by Tandoh that don’t require hours of preparation or professional-grade kitchen equipment to execute.

The Bullhearted Brand

Expert Joseph Szala explains why operators should view branding as a strategic endeavor. Branding is more than a clever name, eye-catching logo, and slick tagline. Szala, as he explains, “lay(s) out the foundational elements and details about creating and scaling restaurant brands” in The Bullhearted Brand, drawing from years of real-world experiences.

Bourbon’s Backroads

Bourbon is one of the few spirits that America can truly claim as its own. Myths and legend abound, such as the claim that whiskey can only be called bourbon if it’s produced in Bourbon County. Karl Raitz conducted extensive research to uncover the full history of bourbon in the United States for Bourbon’s Backroads.

Gilded Age Cocktails

Author Cecilia Tichi takes readers on a cocktail journey spanning three decades. The Gilded Age, which took place between 1870 and the early 1900s, is known as the Golden Age for cocktails. Readers will be able to learn the stories of not only classic Golden Age cocktails to pass on to others, but also the stories of their creators. Gilded Age Cocktails transports us back to the pre-Prohibition Era, a time when bartenders first became famous and helped us all drink better.

Hacking the New Normal

Doug Radkey, president of KRG Hospitality, author of Bar Hacks and Hacking the New Normal, makes the case for making meaningful, impactful change in order for the hospitality industry to survive and thrive moving forward. As he explains during bonus episodes of the Bar Hacks podcast, as have multiple podcast guests like Chef Brian Duffy, the industry won’t truly recover unless we change our mindsets and the way restaurants, bars, hotels, resorts, entertainment venues, and arenas operate and treat staff.

Image: Mikołaj on Unsplash

Chef's knife and honing rod crossed on cutting board
by David Klemt David Klemt No Comments

Incentive Economy: What are You Offering?

The Incentive Economy: What are You Offering?

by David Klemt

Chef's knife and honing rod crossed on cutting board

You know about the gig economy but are you familiar with the incentive economy?

It’s quite simple, and there are myriad ways for operators to engage with it. In fact, you likely already participate in the incentive economy in some way.

To put it succinctly, the incentive economy is all about the perks of a job beyond a paycheck.

The Old Ways are Out

On episode 53 of our Bar Hacks podcast, Chef Brian Duffy addresses the need for changes in our industry directly.

First, he tackles the lack of transparency in leadership by some operators. As Chef Duffy says, “That’s an old school way of doing it. That was an old school way, that was the Eighties.”

According to the chef, and we wholeheartedly agree, we now find ourselves in a “different phase” in the industry.

Then, Chef Duffy takes on how leadership in the industry treats staff.

One effective recruiting and hiring incentive Chef Duffy offers on the podcast deals with scheduling. None of his cooks close both nights of a weekend. He also posts schedules two weeks in advance so there are, A) no surprises, and B) if staff need to swap or drop, they have time to do so without impacting the business.

This simple scheduling incentive is attractive to new hires and existing staff. Why? Because working unpredictable, erratic hours is stressful.

“That ruins your life,” explains Chef Duffy.

If operators want to attract new hires, keep their team together, and reduce turnover, listening to staff about scheduling is crucial.

Things Need to Change

Chef Duffy shares a story on the podcast about his daughter and her experience working at a restaurant operated by a hospitality group.

No, he doesn’t name the group or the concept. The who isn’t the point here, it’s the what.

That what is how leadership bungled not only a scheduling issue but also how they botched Chef Duffy’s daughter’s two-week notice, her final shifts, and her final pay.

For more context, his daughter wasn’t a new hire who bailed after perceiving she had been treated poorly. She had worked at that restaurant for a year, there were ongoing issues, and she finally left.

As we all know, we’re down about a million jobs in this industry. That loss isn’t simply because of the pandemic. Our industry is undergoing a seismic cultural shift and we’re losing people who won’t return to hospitality.

Things need to change if we’re going to reverse this trend and strengthen the industry. KRG Hospitality president Doug Radkey addresses the change we need in his latest book, Hacking the New Normal. Chef Duffy addresses some of the necessary changes on our podcast as well.

“We can complain as much as we want, but we created it,” Chef Duffy says. “We as owners and operators and managers, we created what’s happening right now.”

Get Creative

The only limits to incentivizing your staff are your imagination, staying consistent with policies and procedures, being respectful of your staff and guests, and the law. Remain in those confines and get creative.

An incentive doesn’t need to be a grand gesture or prize. In many instances, something that makes a shift more fun and breaks up the monotony is enough to energize the staff.

“I want my staff, I want my front-of-house staff, to know what my sales goal is for the day,” says Chef Duffy. “And then I want to run a contest with that.”

One of the chef’s favorite contests is simple and highly motivating: Follow the Twenty.

Chef Duffy puts a twenty-dollar bill into play against a particular item or menu category. For example, either a specific dessert or any dessert.

Whenever a team member sells a dessert, they get the $20 that’s in play. If a different person sells another dessert, they get the twenty. Follow the Twenty incentivizes the first person to sell more of an item to hang onto the money, and the game motivates the rest of the staff to outperform their coworker to get the prize.

The last member of staff to sell a dessert that shift or day keeps the money.

Offering another creative incentive he’s seen, Chef Duffy shares that there’s a restaurant out there offering a free tattoo to kitchen staff that stays for at least 30 days. Will some staff leave after they get their tattoo? Possibly. Hiring wisely, implementing training policies and procedures, treating staff with respect, making scheduling easier and more flexible, ensuring clear communication is embedded in the fabric of your brand’s culture, and offering further incentives can prevent that turnover.

Offer Ongoing Education

“We live in an incentive world now,” says Chef Duffy. Explaining that he doesn’t operate large kitchens, large bars, or employ large teams, he admits he can only do so much in terms of incentives.

However, his approach to incentivizing staff to stay starts with this example of true leadership: “The one thing I can do is treat my employees well.”

With decades of experience in the industry, Chef Duffy’s knowledge is something he can offer his staff. A big believer in education, passing down information that can enrich team members’ careers and lives is an incredibly valuable incentive.

During a recent training session with a very young kitchen staff, the chef started with the very basics of education.

“Hey, guys, here’s a knife. This is a knife,” he said to the kitchen staff. “There’s seven different parts to a knife. Here’s the most powerful part, here’s the most precise part. This is how you hold it, this is what we do…”

Just reading that, it may seem like Chef Duffy was being condescending. That’s not the case. He wants to share as much of what he’s learned over the years to pass on his collected knowledge.

“I want people to feel as if they’re gaining something from me and the knowledge that I have rather than, ‘Go cut those onions and I’m gonna yell at you if you do it the wrong way,'” says Chef Duff.

Make Meaningful Change Today

Making impactful change can feel overwhelming. Let’s face it, it’s easier to just stay the course. But these days, staying the course can cost you your staff, then your guests, and then your business.

One way to start making change is to look inward at yourself, and at your leadership team.

Are your staff gaining anything from you beyond a job and paycheck? Is your leadership team mentoring and incentivizing staff? Are you, your leaders, and your team happy at work?

If the answer to those questions is “no,” do what’s reasonable to improve your brand’s work culture.

As Chef Duffy says, “The whole dynamic of it has to change and we have to take better care of our employees.”

Image: Steve Raubenstine from Pixabay

2021 calendar on cell phone
by David Klemt David Klemt No Comments

Modernize Your Scheduling Today

Modernize Your Scheduling Today

by David Klemt

2021 calendar on cell phone

Scheduling platforms and apps modernize restaurant, bar and hotel team management, streamlining and simplifying several processes.

When it comes to improving communications, the benefits of updating and upgrading how you manage scheduling can’t be overstated.

Of course, in our tech-heavy world, several scheduling platforms do more than just inform your employees about their shifts.

Today’s options handle payroll; assign specific tasks to particular team members; help leadership provide feedback; give staff a platform to provide feedback to leadership; and much more.

Staff Retention

Now, we’ve addressed how our industry has been much quicker to embrace new tech innovations over the past couple years.

We’re bringing up the topic of scheduling platforms for a specific reason. We all make mistakes, and we can learn from those mistakes. And we can also learn from others’ mistakes so we can do our best to avoid making them as well.

On today’s episode of the Bar Hacks podcast, Chef Brian Duffy shares a story about a scheduling issue.

During his return appearance, Chef Duffy explains that his 20-year-old daughter provided two months’ notice about days off she needed to her former employer. “Former” is key here.

It’s clear that the hospitality group property at which she once worked either didn’t utilize a scheduling app, didn’t communicate well, or both.

At any rate, Chef Duffy’s daughter received constant phone calls from management during her vacation. Obviously, that would be infuriating.

Even worse, after she quit that job—she had provided two weeks’ notice—this former employer called to ask if she was coming in for “her shifts.” Well, no—she had quit, with notice.

Clearly, there are other issues with that leadership team beyond a lack of clarity in scheduling. However, a powerful, easy-to-use staff management tool could possibly have kept Chef Duffy’s daughter from quitting this job. A powerful platform, for example, like the four below that are mentioned on episode 53 of Bar Hacks.

7shifts

When choosing a scheduling platform, one crucial element is integration. 7shifts integrates with several major POS systems, such Toast, Harbortouch, Heartland, TouchBistro, Micros, Upserve, and Clover.

In addition to scheduling, which is a given feature for all these platforms, 7shifts offers robust features. Leadership can send one-on-one messages to staff or create group chats. The app itself is a timeclock and handles payroll. And more inclusive packages provide operators with labor budgeting, sales forecasting, labor alerts, and even state-based compliance tools.

7Shifts is free for single locations with up to 10 workers. At the Appetizer level, 7shifts costs $17.99 per month, per location, for up to 20 team members. For $39.99 per month, per location, operators with up to 30 staff can take advantage of the Entrée level. The Works is $69.99 per month, per location, and manages an unlimited number of staff.

HotSchedules

One of the key features of HotSchedules is labor forecasting. Per the platform’s website, HotSchedules “labor forecasts are based on activity, historical data, and specific business rules” to reduce costs and increase revenue.

On the leadership side, scheduling is streamlined and simple to use. Managers can approve—or deny—shift requests with a single click. They can also message individual team members or send messages to a single location.

On the team side, staff can give away, swap and pick up shifts via the convenient app. Staff can request time off, and HotSchedules integrates with their Google Calendars. Upon arrival, staff can clock in through the HotSchedules app and track their attendance and pay.

OpenSimSim

At the surface level, it may seem like OpenSimSim isn’t as robust as the company’s competitors. However, it’s powerful and efficient.

One of the best OpenSimSim features is the open shift invite. Using this feature, team members can be invited to apply for an open shift once one becomes available. In addition, staff can set their profiles up to be auto-approved for open shifts.

Of course, OpenSimSim offers features similar to other scheduling platforms. For example, leadership receives real-time open shift, overtime, and late clock-in notifications. Users can also direct message and group chat via the platform.

Schedulefly

Last on this list solely because I organized these platforms alphabetically is Schedulefly. When you look into this platform, you’ll notice immediately that it’s powerful enough to manage concepts with multiple units.

Managers can quickly and easy navigate each unit in their chain to handle scheduling, broadcast messages for individual locations, message specific team members, and more. Is there a shift that needs to be filled at a specific unit? Schedulefly makes it easy to target the appropriate location and get it filled.

Similar to 7shifts, Schedulefly offers pricing based on staff size. There are no contracts, no fees, and each “level” offers all the same features and services:

  • 19 staff or fewer: $30/month
  • 20 to 39 staff: $40/month
  • 40 t0 59 staff: $50/month
  • 60 to 79 staff: $60/month
  • 80 staff or more: Contact Schedulefly for pricing.

It should go without saying that scheduling is crucial. Understaffing, overstaffing, staffing frustrations, failing to listen to staff about scheduling, and not simplifying the process can increase staff turnover.

Outdated approaches to scheduling also leads to significant decreases in revenue.

At its core, scheduling is a form of communication, a vital one. Commit to improving your communication today by upgrading your scheduling. Your leadership team and staff will thank you.

Image: Gerd Altmann from Pixabay

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