Bar

by David Klemt David Klemt No Comments

The 2022 KRG Hospitality Start-Up Guide

The 2022 KRG Hospitality Start-Up Guide

by David Klemt

2022 KRG Hospitality Start-Up Cost Guide & Checklist download

The 2022 KRG Hospitality Restaurant Start-Up Cost Guide & Checklist is here!

If you’ve been putting off opening your restaurant concept, wait no longer. With our guide and checklist, you can make the best, informed decisions to open in 2022.

Yes, opening a restaurant seems daunting in 2022. However, industry intelligence firms such as Technomic have predicted measurable recovery this year in comparison to 2021.

Waiting for the time to be “just right” to open a restaurant just isn’t realistic. The longer one waits to make their move, the further ahead established and new operators can get ahead. Your desired location can be snapped up, competitors can build loyal customer bases, and things get more difficult overall.

That said, that doesn’t mean you should throw caution to the wind. We certainly don’t believe rushing into anything is a good idea. If anything, rushing rather than making informed, deliberate decisions is the antithesis of strategic.

So, what’s the desired middle ground between haphazard and hesitancy? Nimble and informed.

Our 2022 Restaurant Start-Up Cost Guide & Checklist provides useful financial information based on real-world scenarios. This will give you a realistic idea of how much start-up capital you’ll need to realize your entrepreneurial dreams this year.

What can you expect in our latest download? Take a look below.

Subsections

This is no three- or four-page quick-hit guide. Rather, the 2022 KRG Hospitality Restaurant Start-Up Cost Guide is 33 pages of real-world tips and data:

  • Start-up costs
  • Renovation costs
  • Scaled costs (four concept scenarios)
  • Restaurant operating guide

Checklist

Due to the tremendous job scope—in addition to the planning, organization, and communication requirements to start a successful restaurant—we highly recommend working with a team of professionals to save time and financial resources.

Below you’ll find a handful of the 500 unique tasks crucial to opening a restaurant.

Planning and Admin

You must:

  • complete feasibility study;
  • develop concept and brand; and
  • complete strategic business plan.

Supporting Cast

You’ll need to secure:

  • an accountant;
  • a real estate agent/broker; and
  • a project manager.

Site Development

The first steps are all crucial to the timeline:

  • Secure property of choice;
  • Sign commercial lease; and
  • Submit drawings.

Operations Development

Examples of the hundreds of tasks you must complete include:

  • a kitchen workflow plan;
  • bar and takeout workflow; and
  • developing a recipe books for the kitchen and bar.

Again, these are just a handful of the 500 unique tasks you’ll complete to start your restaurant.

Download our 2022 Restaurant Start-Up Cost Guide & Checklist to start your journey today.

Image: KRG Hospitality

by David Klemt David Klemt No Comments

How to Achieve Your Goals in 2022

How to Achieve Your Goals in 2022

by Jennifer Radkey

"Wake up, kick ass, repeat" neon sign on wall

The start of a new year for many is symbolic: Fresh year, fresh start.

With the best of intentions, millions of people worldwide create resolutions and set goals for both personal and professional growth and achievement. These goals are created with full enthusiasm and determination and then….the majority of them never come to fruition.

Studies have shown that approximately 80 percent of New Year’s resolutions fail. So what happens? And how can we push forward to achieve our goals instead of letting them slip away?

The majority of us know how to set clearly defined goals. It is something we learned in school, or have read countless articles about. It seems as if it is human nature to want to improve, to do better and be better.

In the hospitality industry, we ask our team members to set goals weekly, if not daily. Goals typically include improving guest retention, increasing sales, improving guest experience, etc.

But once these goals are set, what systems are in place to help your team achieve them? And are you leading by example?

Goal Setting

There are many techniques to goal setting. George Doran, Arthur Miller, and James Cunningham developed the very popular SMART goal tool to assist in developing clearly defined, task-oriented goals. They state that goals should be Specific, Measurable, Assignable, Realistic, and Time-specific (SMART).

Rhonda Byrne’s book, The Secret, discusses envisioning your goals and life desires to attract them to you. But goal achievement is more than just setting a clear goal, or dreaming about what it would be like to achieve that goal. Those are the starting points.

Goal achievement is a process. It can be nitty and gritty and tough. There is typically no easy way. However, there are strategies we can use to help us achieve them, and the result will almost always be worth the extra effort.

Why We Fail

There are countless reasons why goals or resolutions fail, but the reasons mostly fall under two categories: You either lose your willpower or your waypower.

The concepts of willpower and waypower in relation to goal achievement is introduced in Rick Snyder’s Hope Theory, explained is his book The Psychology of Hope: You Can Get There From Here.

Willpower is the desire to achieve your goal; it’s the fire that pushes us to keep going after what we want. Waypower is the map for how we will get to our end goal; it’s the careful plan we have in place to ensure we overcome any obstacles that get in our way.

When we lack willpower our goal seems unachievable, and therefore we give up. When we lack waypower, as badly as we may want to achieve our goal, we are lost with no clear idea of how to get there.

How to Succeed

Finding Your Willpower

If you have lost your willpower, there are several ways to reignite your desire to achieve your goal.

The first is to have constant reminders of your goal. Have it written somewhere where you will have access to it several times a day. Set reminders on your phone, put sticky notes around your office or house, create a vision board representing your goal as your screensaver or on a wall in your home or office.

Remind yourself of why you set the goal in the first place and how it will make your life better.

Many of us lose our willpower when faced with obstacles. Instead of being deflated by obstacles, look at them as challenges to be defeated. Use obstacles as fuel for your fire rather than water to dampen it.

When faced with obstacles it is also helpful to remind yourself of goals that you have achieved in the past and the obstacles you had to overcome to get there. Remembering this time will allow you to acknowledge that you ARE capable and therefore will keep your willpower intact.

Finding your Waypower

Life is busy, and when you are being pulled in many directions at the same time it can be easy to lose your way towards achieving your goals. To ensure that you stay on the path towards goal completion, there are several actions you can take.

Try breaking long-range goals into smaller steps. Start with the first step, and move on to the next, checking off and celebrating each step as you go.

Before you even begin your journey towards goal completion, map out different routes you may need to get there. Knowing these routes beforehand will make it easier to stay focused along the way.

Lastly, know when to ask for helpand be willing to accept it. If you get lost on your way to your goal, perhaps you need some advice from someone who has already achieved that goal.

WOOP

One of my favorite goal achievement strategies is WOOP, created by Gabriele Oettingen. This acronym stands for Wish, Outcome, Obstacle, Plan.

WOOP is a straightforward and effective tool to use when setting goals, and has been practiced by everyone from elementary school students to CEOs of major corporations. Once practiced, WOOP can take less than five minutes of your time while providing great clarity.

The first step is to state your wish or goal clearly. Next, envision the outcome of achieving your goal. Take a couple minutes to really picture what it will look and feel like to achieve your goal.

You are then going to contrast that by thinking of what obstacles might block you from achieving your goal. It is important to note that these obstacles are internal not external.

We rarely have control over external obstacles but do have control over internal ones. What is it about you that will stop you from reaching your goal? Is it low self-esteem, laziness, doubt? Are you distracted easily?

Lastly, you are going to plan what to do when met with an obstacle by using “if/then” phrasing. For example, “If I am feeling lazy and want to have a Netflix marathon instead of working on my goal, then I will get off the couch, do ten jumping jacks, grab a drink of water, and start working on my goal.”

If you are interested in trying out the WOOP tool for goal setting/achievement you can visit www.woopmylife.org.

Own It

Goal setting and resolutions should not be a forced activity you do every new year, or birthday, or every Monday morning to start your week. Goal setting and achievement should be a constant, flowing activity that reaches into all parts of your life.

Through the use of strategies and consistent review, reassessment, and awareness, goals don’t need to be lost or given up on, unless that particular goal no longer serves a purpose to you.

Own your goals and take pride in your achievements. In the end, you will always be your number one advocate for your own growth.

So go get it! Cheers to professional and personal well-being!

Image: Justin Veenema on Unsplash

by David Klemt David Klemt No Comments

5 Books to Read this Month: January ’22

5 Books to Read this Month: January ’22

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 as we kick off 2022.

To review December 2021’s book recommendations, click here.

Let’s jump in!

Try Dry: The Official Guide to a Month Off Booze

For those who want to learn more about Dry January, Try Dry is an insightful resource. Of course, this book is also informative beyond the first month of the year. As living alcohol-free movement becomes more mainstream, it’s important for operators to understand the movement. Whether permanent or temporary, there are myriad reasons some guests decide against drinking alcohol.

Of Peats and Putts: A Whisky and Golf Tour of Scotland

During the pandemic, interest in golf skyrocketed. In part, this has led to increased interest in golf simulators, driving ranges, and nine-hole rounds of golf rather than full, 18-hole outings. Of Peats and Putts tells the story of golf and whisky in Scotland. A compelling read for operators looking to bring golf into their businesses.

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

Not even two months on the market and already causing quite the buzz! The Way of the Cocktail comes from Julia Momosé, one of the minds behind Chicago cocktail destination Kumiko. From classics to new riffs, the recipes in this book are based on 24 micro-seasons.

Bourbon [Boxed Book & Ephemera Set]: The Story of Kentucky Whiskey

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

Amaro: The Spirited World of Bittersweet, Herbal Liqueurs, with Cocktails, Recipes, and Formulas

There are many reasons to love amaro. Bitter and bittersweet notes, complex flavor profiles, and their utility when it comes to crafting low-ABV cocktails are among those reasons. Amaro by Brad Thomas Parsons explores the rich history of amaro and includes over 100 recipes.

Image: Mikołaj on Unsplash

by David Klemt David Klemt No Comments

Stand Out with Weird Holidays: January ’22

Stand Out with Weird Holidays: January ’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 January 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.

January 5: National Bird Day

The Jungle Bird. Grey Goose. Famous Grouse. Redbreast. Eagle Rare. Wild Turkey. Kentucky Owl. Chicken wings. Duck fat. Use this holiday to feature your bird-themed cocktails, spirits, beers, and foods.

January 7: National Tempura Day

When it comes to 2022 trend predictions, comfort food is right at the top of many experts’ lists. And when it comes to comfort foods, battering and frying is always a winner. If you can batter and fry it, put it on your menu and promote it.

January 11: National Milk Day

This is the day to perfect and promote your milk cocktails. The Coquito, Bourbon Milk Punch, the Grasshopper, the Mudslide… National Milk Day is easy and fun to celebrate.

January 14: National Dress Up Your Pet Day

Does your business permit guests to bring their dogs or other pets to tag along when they visit? Encourage them to dress up their pets, and make sure you document the results on your venue’s social media channels.

January 19: National Popcorn Day

Is popcorn weird? No, of course not. Is tricking out your popcorn with seasonings weird? That depends on how creative you and your back of house can be. Think outside the popcorn tub, craft some intriguing popcorn flavors, and get your guests talking on social media.

January 20: National Get to Know Your Customers Day

Yep, I’m gonna encourage your strongly to collect the data of every guest who visits and spends money at your business. This would be a great holiday to launch or heavily promote your loyalty program.

January 24: National Beer Can Appreciation Day

Creative beer can design goes hand in hand with craft beer brewing. A lot of thought goes into beer can design and particularly eye-catching labels deserve more than a passing glance. Feature the most creative and attention-grabbing beers on your menu on National Beer Can Appreciation Day. And yes, you should definitely feature them on your social media channels.

January 29: National Corn Chip Day

Ah, the corn chip, a perfect vessel for hearty dips. They’re also ideal for walking tacos, a.k.a. tacos-in-a-bag. If you have corn chips and taco fixin’s, you can offer your guests walking tacos on National Corn Chip Day.

January 31: National Backward Day

There are several ways you can celebrate this day with your guests and staff. One simple but fun way to do so is to encourage your guests to dine in backwards order: dessert first, entrée, and then appetizer. Of course, you could print a specialty menu backwards but that runs the risk of annoying your guests. But still…interesting idea.

Image: Dan Parlante on Unsplash

by David Klemt David Klemt No Comments

Keep Up Your Momentum in 2022

Keep Up Your Momentum in 2022

by David Klemt

Start of 2022 track or path concept

In 2022, our focus needs to be on recovery, which means starting strong, gaining steam, and keeping momentum going throughout the year.

The past two years have been a nonstop flurry of starts, stops, and false starts for American and Canadian operators.

Every challenge operators face during a “normal” day has been compounded. Recruiting, hiring, training, marketing, increasing traffic and revenue, managing inventory…it’s all more challenging.

However, “challenging” doesn’t mean “impossible.” Under the best of conditions, restaurant, bar, and hotel operations are a challenge. Overcoming adversity, in other words, is a consistent element of daily operations.

Now, whether we should view constantly overcoming challenges as a badge of honor… Well, that’s a different conversation, one about industry-wide changes that are long overdue.

For this post, my focus is on starting 2022 off right, building momentum, and keeping it.

KRG Momentum

Last year, we launched a coaching program called KRG Mindset.

KRG is known for our Roadmaps to Success, which include of our in-depth feasibility studies and detailed business plans, both of which help operators secure funding. However, some of our clients aren’t ready for our full suite of startup and expansion solutions.

For these clients, we have the KRG Mindset program. This valuable program’s keystone is a dedicated, certified life coach: Jennifer Radkey.

Both starting and operating a hospitality business can be stressful, exhausting, and time consuming, and it’s easy for your vision, clarity, self-care, and relationships to become lost along the way.

That’s where Jennifer comes in. With a dedicated, certified life coach by your side to ask powerful questions and hold you accountable, the pathway towards achieving your goals will become smoother.

A clear and focused mind and a regular routine of self-care will help you survive both the start-up and day-to-day operating phases, not to mention leading you towards personal and professional success.

Let’s Go!

All hospitality professionals—from business owners to staff—are members of a tight-knit family. Unless you’ve lived hospitality, you just don’t know the challenges, risks and rewards.

That means that startup operators and established operators don’t have to try to navigate the industry alone. Whether you aren’t sure where to even begin your ownership journey or aren’t sure how to overcome the hurdles you’re facing, the team at KRG Hospitality is here for you.

If you’re ready for us to help, click here to learn more about KRG Momentum. And click here to schedule an introductory call.

Image: Tumisu from Pixabay

by David Klemt David Klemt No Comments

Current Restrictions: Canada

Current Restaurant Restrictions: Canada

by David Klemt

Four disposable medical face masks in a pile

KRG Hospitality’s headquarters is in Toronto but we operate in three major Canadian markets: Alberta, British Columbia, and Ontario.

I was visiting the Toronto office, traveling from Las Vegas, when new restrictions were announced due to Omicron.

By the time I landed, I knew each province in which we operate would be at least discussing possible restrictions.

Alberta

The following restrictions apply to restaurants, bars, nightclubs, cafes, and pubs participating in the Restrictions Exemption Program (REP):

  • No more than ten people may be sat at one table.
  • Alcohol service must terminate by 11:00 PM.
  • These businesses must close by 12:30 AM.
  • Billiards, dancing, darts, and other “interactive” activities are prohibited.

As a refresher, the REP program requires operators to require patrons age 12 and above to:

  • provide proof of vaccination, negative results from a test taken within 72 hours of service, or medical exemption; and
  • comply with mandatory masking.

Alternatively, operators can comply with all restrictions as outlined in Alberta’s public health orders.

However, businesses not participating in REP face the restrictions below:

  • Indoor dining is prohibited.
  • Outdoor dining is permitted. No more than six people may sit at the same table.
  • Groups are restricted to one household or two close contacts (for those living alone).
  • Alcohol service must terminate by 10:oo PM. Consumption must conclude by 11:00 PM.

British Columbia

At the time of publication, restaurants, cafes, and pubs can still offer both indoor and outdoor dining.

However, there are restrictions in British Columbia:

  1. No more than six people may be sat at one table.
  2. When not seated, guests must wear face masks.
  3. Guests may not move to between tables, visit other tables, or dance.
  4. Indoor gatherings are limited to 10 people (down from 25).
  5. Outdoor gatherings are limited to 25 people (down from 100).
  6. Operators must maintain physical distancing or barriers between tables.
  7. Alcohol can be served during normal service hours.

Unfortunately, bars, nightclubs, and lounges aren’t facing restrictions, they’ve been forced to close.

These restrictions and closures will remain in place until January 18, 2022. Exceptions include bullet points 2 and 3, which are expected to remain until January 31, 2022.

Ontario

As of December 19, 2021, restrictions that impact restaurants, bars, strip clubs, and other food or beverage venues went into effect:

  • Capacity reduced to 50 percent.
  • No more than 10 people may sit at one table.
  • Guests must remain seated. Only performers or workers may dance.
  • Venues must close for indoor and outdoor dining and drinking by 11:00 PM. However, businesses may offer delivery and takeout past that time.
  • On-premise alcohol sales are prohibited after 10:00 PM. Consumption of alcohol on-premises is restricted after 11:00 PM.

It’s crucial that operators and leadership teams remain up to date on their province’s (and city’s) restrictions. At the start, 2022 will be challenging but opportunities for recovery will present themselves

Image: Markus Winkler on Unsplash

by David Klemt David Klemt No Comments

Soft Versus Stealth Closures

Soft Versus Stealth Closures

by David Klemt

Movie theater sign that reads "This is just intermission" temporary closure message

Restaurants, bars, and entertainment venues throughout North America are closing temporarily due to spikes in Covid-19 infections.

These closures are voluntary and out of an abundance of caution for staff, guest and community health and safety. While not in any way ideal, these voluntary closures are admirable.

Restaurants, bars, and other hospitality-focused businesses are cornerstones of their communities. Putting safety ahead of profits highlights dedication to service.

There are two types of temporary closures an operator can choose, soft and stealth or silent.

Soft Closure

Simply put, a soft closure is the counterpart to a mandated closure. No local, state or federal authority has forced the closure.

Instead, an operator decides it’s best for their staff and community for them to close their doors for a period of time. Currently, the timeframe I’m most often coming across spans Christmas to December 29 or 30.

So, what are the reasons operators are giving for soft closures? The following are the most common I’m encountering:

  • Rises in infections and hospitalizations in a given location.
  • Teams too small to provide service due to infections, mostly driven by Omicron currently.
  • A desire to protect teams from increased risk of infection.
  • Giving staff off from Christmas or Christmas Eve through December 29 or 30 to recharge for New Year’s Eve.

In Canada, some provinces are prohibiting normally lucrative NYE events. So, some operators are closing because it’s not worth attempting to operate as normal until restrictions expire.

Stealth Closure

The difference between a soft and stealth closure are subtle. However, it’s important to understand a stealth closure, and why many operators find them upsetting.

A stealth closure is essentially a type of soft closure. The main difference—which is causing a bit of an uproar—is that the operator doesn’t use their voice to tell the public why they’re closing.

Closing stealthily or silently doesn’t express to the public and lawmakers how dire the situation is for the industry, both locally and overall. Many operators find this unacceptable because the industry isn’t receiving the relief necessary to recover throughout 2022.

To some, a stealth closure lets state and federal legislators shrug off the fact that Covid-19 is once again decimating the industry. I can’t say that I disagree with this assessment.

Of course, operators are free to do as they wish. They must make the best decisions for their businesses, staff, and community.

However, an explanation of the factors that drove the decision sends a clear message that the industry needs relief. Coming together and pressuring lawmakers is the only way we’re going to get the help we need.

Image: Nick Bolton on Unsplash

by David Klemt David Klemt No Comments

Current Restaurant & Bar Restrictions: USA

Current Restaurant & Bar Restrictions: USA

by David Klemt

Four medical face masks on a blue background

According to reporting worldwide, the Omicron variant of Covid-19 is surging and accounting for the majority of new infections.

Scientists, medical professionals, and some lawmakers and politicians are expressing concern. This is due to Omicron apparently being much more transmissible in comparison to other variants.

So far, it appears the current administration isn’t suggesting lockdowns. The CDC isn’t recommending restaurants and bars close down.

And dozens of states are not—for now—imposing new restrictions on people and businesses. However, there are nearly 20 states that have restrictions in place for restaurants and bars currently.

Of course, this situation is fluid and subject to change on a whim. As of the date of publication for this article, this is the currents state of the USA.

No Restrictions

There are, so far, 31 states have no state-mandated restrictions in place:

  1. Alabama
  2. Alaska
  3. Arizona
  4. Arkansas
  5. Delaware
  6. Florida
  7. Georgia
  8. Idaho
  9. Indiana
  10. Iowa
  11. Kentucky
  12. Louisiana
  13. Maine
  14. Michigan
  15. Minnesota
  16. Mississippi
  17. Montana
  18. New Hampshire
  19. New Jersey
  20. North Dakota
  21. Oklahoma
  22. Pennsylvania (Note: Indoor diners must wear masks. Businesses can require proof of vaccination.)
  23. Rhode Island
  24. South Carolina
  25. South Dakota
  26. Tennessee
  27. Texas
  28. Utah
  29. Vermont
  30. West Virginia
  31. Wyoming

Your state may be on this list. If so, it’s still important to remain knowledgeable of current restrictions and guidelines in your area(s) of operation.

Restrictions

The following 19 states have restrictions in place. Most commonly, these are mask requirements for indoor diners.

  1. California: Indoor diners must show proof of vaccination in Los Angeles and San Francisco. Regardless of vaccine status, indoor diners must wear masks.
  2. Connecticut: Unvaccinated required to wear masks indoors.
  3. Colorado: All indoor diners must wear masks. In Boulder County, businesses can apply to receive an indoor mask exemption if they require proof of vaccination.
  4. Hawaii: All indoor diners must wear masks.
  5. Illinois: All indoor diners must wear masks.
  6. Kansas: Requirements vary by county for indoor dining, so check current local guidelines.
  7. Maryland: Requirements vary by county for indoor dining, so check current local guidelines.
  8. Massachusetts: In Boston, indoor diners must wear masks regardless of vaccination status.
  9. Missouri: Requirements vary by county for indoor dining, so check current local guidelines.
  10. Nebraska: Requirements vary by county for indoor dining, so check current local guidelines.
  11. Nevada: Requirements vary by county but for the most part, all indoor diners must wear masks.
  12. New Mexico: All indoor diners must wear masks.
  13. New York: Indoor diners must show proof of vaccination, and masks are required to dine indoors. Unvaccinated required to wear masks indoors.
  14. North Carolina: Requirements vary by county for indoor dining, so check current local guidelines.
  15. Ohio: Requirements vary by county for indoor dining, so check current local guidelines.
  16. Oregon: All indoor diners must wear masks. If physical distancing isn’t possible in outdoor areas, masks must be worn by outdoor guests as well.
  17. Virginia: All indoor diners must wear masks.
  18. Washington: All indoor diners must wear masks.
  19. Wisconsin: Requirements vary by county for indoor dining, so check current local guidelines.

So Far, No Lockdowns

Some restaurants and bars have closed temporarily. These decisions are fueled by myriad factors, including spikes in infections in their markets or staff testing positive for Covid. So far, many of these businesses plan to reopen a day or two before New Year’s Eve.

It may be difficult to be optimistic at the moment. However, more than 70 percent of Americans have received one dose of an approved vaccine. Over 60 percent have received two doses. And nearly 20 percent have received a booster.

While alarmed, reporting shows that scientists and medical professionals aren’t anticipating nationwide lockdowns.

Image: Tamanna Rumee on Unsplash

by David Klemt David Klemt No Comments

Global Trends 2022: Technomic

Global Trends 2022: Technomic

by David Klemt

"For the World" neon sign

What? You didn’t think we would focus only on Canada and America when it comes to 2022 trends, did you?

It’s difficult to keep up with restaurant, bar, and cuisine trends if you keep your focus too narrow.

Technomic is acutely aware of this. So, we took a look at senior research manager Aaron Jourden’s 2022 Global Restaurant Trends Forecast report.

One specific item, a coffee, is a striking standout. But we’ll get to that in a moment…

Operations

First, let’s take a look at restaurant and bar operations.

It’s not just North America that’s facing a labor shortage. And in 2022, Technomic expects this challenge to persist.

There are a few ways we can look at labor shortages and other challenges.

One: We can make no internal changes, pretending hope is a strategy and things will work themselves out magically. Two: We can get cynical and hostile, putting the blame on workers.

Three: We can look at the industry as a whole and operations in particular to make meaningful changes. Working conditions can be improved, leadership skills can be developed, operations can be streamlined, inventory can be cross-utilized and maximized. What are we offering workers and guests? What can be changed to reduce costs, and to increase traffic and revenue?

In other words, operators are in a position to adapt, innovate, and make meaningful changes that will ensure our industry’s long-term survival.

Labor, supply chain, and cost issues will continue in 2022. However, Technomic predicts that 2022 will be the year of measurable recovery.

Fading Ghosts

Technomic isn’t saying that ghost kitchens are going put to rest.

Rather, the firm expects the hype around them to fade away. To be sure, ghost (and virtual—not the same thing) kitchens enjoyed quite a bit more than 15 minutes of fame in 2020 and 2021.

However, we’ve seen recent reports of certain ghost kitchen chains facing logistic and legal troubles. The shine very much seems to be dulling on this pandemic trend.

Again, Technomic doesn’t think ghost kitchens will suddenly disappear. But the incessant coverage? That may be on the way out in 2022.

Food & Flavor Trends

Now, the fun stuff. If Jourden’s report proves accurate, menus throughout the world are going to see some intriguing additions:

  • Breakfast Comes Back. With people heading back to the office and children back in school, the breakfast daypart will return. Operators who did away with breakfast may see value in bringing breakfast food and beverages back.
  • Chicken or the Egg? Per Jourden’s report, the egg sandwich is in a position to knock chicken sandwiches off their pedestal. So, chicken wins either way. Jourden points to an interesting element of this prediction: Eggs are fun, allowing for puns on menus, marketing, and branding.
  • Regional vs. Global. A number of regional brands will stand out against global brands in 2022. Regional brands speak to what today’s consumer wants: locality and hyper-locality; sustainability and responsible business practices; and a focus on healthfulness.
  • What Coffee?! Jourden’s report identifies a number of truly innovative and intriguing F&B trends for 2022. The one that grabbed my attention immediately? Avocado coffee. Already popular in Indonesia, avocado coffee is expected to find its way onto menus across the globe. Other items Jourden thinks will gain traction in 2022: Pão de queijo (Brazilian cheese bread), Mexican flatbreads, vegetarian-friendly meat alternative halloumi, mutabal or moutabal (baba ghanoush’s cousin), regional comfort soups, and plant-based eggs.
  • Functional Foods. If you didn’t find avocado coffee intriguing, what about dessert foods imbued with healthful characteristics? Jourden identifies a few desserts that do more than satisfy a sweet tooth: Hand pies that boost immune systems, macarons made to enhance moods, and even ice cream that will enhance a person’s skin health and appearance.

Next year is going to be challenging. That simply isn’t up for debate. But it’s also going to be rife with opportunity and innovation for savvy operators.

Image: Jon Tyson on Unsplash

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

Top