Bar | KRG Hospitality

June 1, 2021by David Klemt David Klemt No Comments

5 Books to Read this Month: June

5 Books to Read this Month: June

by David Klemt

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

To review last month’s book recommendations, click here.

Let’s dive in!

The Japanese Art of the Cocktail

Available as of today, this is the first cocktail book written by Masahiro Urushido, the award-winning bartender from NYC’s Katana Kitten. After just one year with Urushido at the helm, Katana Kitten took home a 2019 Spirited Award. The Japanese Art of the Cocktail features 80 recipes and serves as a deep dive into a unique approach to cocktails and technique.

Hennessy: A Toast to the World’s Preeminent Spirit

In a nod to today’s episode of the Bar Hacks podcast, we’re happy to share this amazing book that has something between its covers for everyone. Hennessy is equal parts history, humor, lifestyle, recipes, and illustrative and photographic work of art. Shepard Fairey, Nas, Fab 5 Freddy, and others contribute stories and insights in this amazing bar book.

Cocktail Dive Bar

The subtitle of this recently published book is “Real Drinks, Fake History, and Questionable Advice,” which should tell you this is going to be a fun read. In Cocktail Dive Bar, T. Cole Newton, the operator behind NOLA’s Twelve Mile Limit, mixes classic and original cocktail recipes with essays, advice and coloring book elements. Bars are supposed to be fun, and this book is a welcome reminder of that fact.

Mezcal and Tequila Cocktails: Mixed Drinks for the Golden Age of Agave

Robert Simonson is a New York Times writer and James Beard Award-nominated author who has written an impressive amount of cocktail and spirits books. His latest, Mezcal and Tequila Cocktails, shares more than 60 recipes that feature—you guessed it—mezcal and tequila. Most of the recipes aren’t at all complicated but they’re still full of agave flavor and an array of profiles. Whether you’re a neophyte or an aficionado, this book is for you.

Bar Hacks: Developing The Fundamentals for an Epic Bar

Yep, I’m 0nce again promoting a book from KRG Hospitality president Doug Radkey. Hey, I didn’t mention one last month, so cut me some slack. Bar Hacks is Doug’s first book and the title of the eponymous, KRG-produced podcast. Looking to hone the fundamentals? Want to develop effective strategies? Eager to open or grow a profitable, scalable, sustainable, consistent and memorable venue in one of the most cut-throat industries in the world? Grab this book today!

Image: Mikołaj on Unsplash

Wad of dollar bills with red rubber band

May 28, 2021by David Klemt David Klemt No Comments

State of the RRF: By the Numbers

State of the RRF: By the Numbers

by David Klemt

The “tale of the tape” of the Restaurant Revitalization Fund tells a clear story: the RRF needs an injection of tens of billions of dollars.

Clearly, $28.6 was nowhere near enough to award every eligible restaurant and bar with a grant.

In fact, the RRF would need at least another $50 billion to serve all eligible applicants.

The Numbers

First, the Small Business Administration is to be commended for setting up the RRF portal, making the application process clear, and handling applications well.

However, there’s one glaring issue with the RRF and the review and awards process. I’ll get to that in the next section.

Per the National Restaurant Association, more than 362,000 applications were submitted via the RRF portal.

In total, the applications add up to $75 billion in grant requests. Again, the RRF was funded by the government with $28.6 billion. It doesn’t take a mathematician to see that the fund was severely underfunded.

Controversy

Last week, a number of Republican members of Congress sent a letter to the SBA. The gist of their message was that the RRF’s closure was premature. Therefore, the group concluded, non-priority applicants wouldn’t receive grants or even have the opportunity to apply for grants.

In the letter, which can be reviewed here, the authors also took shots at Democrats, the Biden Administration, and undocumented immigrants.

Setting politics aside, the announcement of the RRF’s portal closure was inarguably premature. The application process was first opened on Monday, May 3. For the first 21 days, the SBA announced that while all eligible entities could apply, only priority applicants would be processed and awarded grants.

However, the RRF portal closed to applications on Monday, May 24…21 days after it first opened. The members of Congress who penned the letter to the SBA have a point: the SBA closed the RRF portal after only operating within the priority window.

Now What?

There’s no other way to put this: The RRF needs more funding.

Essentially, it needs twice the funding it had when it was first seeded. There’s zero guarantee that Congress will address this matter, but at least a handful of lawmakers are aware of the dire situation.

Two weeks ago, the NRA launched a petition urging the government to replenish the RRF. Of course, the RRF also needs to be reopened for applications, and the application process needs to be open to all eligible applicants.

There’s no promise the petition will achieve the desired result but we must do something. Click here to sign the petition and tell Congress the RRF needs to be replenished and reopened.

Image: Karolina Grabowska from Pexels

The Next Step chalk concept with footprints

May 27, 2021by David Klemt David Klemt No Comments

What the B.C. Restart Means for Operators

What the B.C. Restart Means for Operators

by David Klemt

In news that’s not exactly surprising, the British Columbia “circuit breaker” expiration didn’t lead to a full reopening.

Instead, the province is launching the B.C. Restart plan.

Obviously, not returning to restriction-free restaurant and bar service is disappointing. However, the plan does give operators dates against which they can plan for staffing, inventory, and other aspects of running their businesses.

Of course, that’s only if officials execute the plan as-is.

Not Surprising

As B.C. operators are well aware, the expiration of the province’s “circuit breaker” doesn’t mean they can return to pre-pandemic operations. Clearly, it would’ve been helpful to the province’s hospitality operators for officials like Premier John Horgan to have made that clear last week.

Resources are razor thin and have been since the start of the pandemic and pandemic-driven shutdowns and restrictions. The more lead time officials can provide hospitality operators to prepare for changes to Covid-19 operational protocols, the better.

Let me say that again for any officials who may read this: Restaurant, bar and other hospitality businesses need more than a few days’ notice to prepare for rule changes.

As long as B.C. Restart targets are hit and numbers don’t head in the wrong direction, at least the new plan is clearer than last week’s expiration announcement.

Four-step Plan

B.C. Restart targets four dates that should remain in place as long as Covid-19 case, hospitalization and death rates remain low. Conversely, the province is seeking increases in adult vaccination rates (for dose one).

Unsurprisingly, the province is now in step one of the four-step B.C. Restart plan. The goal is to achieve a 60-percent dose-one vaccination rate among the province’s adult population. A mask mandate is in place provincewide, as are safety protocols like social distancing. Indoor and outdoor dining is restricted to a maximum of six people, with safety protocols.

The earliest date for step two to begin is June 15 and targets a 65-percent adult vaccination rate. B.C.’s mask mandate remains, as do business safety protocols and physical distancing measures. Interestingly, the province’s travel restrictions are removed.

Step three starts on June 1 at the earliest, targeting a 70-percent adult inoculation rate, low Covid-19 case rate, and decline in hospitalizations. Officials will announce new PPE and social distancing guidelines, organized indoor and outdoor gathering capacity will increase, and nightclubs and casinos will reopen (with capacity limits and safety protocols).

If all goes to plan, September 7 is the earliest start to step four, which targets a dose-one adult vaccination rate of more than 70 percent. B.C. will permit a return to “normal” social contact.

For Operators

Restaurant and bar operators—at the moment—should focus on steps one and two of B.C. Restart.

The reason is simple: During steps one and two, restaurants and bars must operate under the pre-circuit-breaker health and safety protocols.

So, operators must follow these rules for step one:

Indoor and outdoor dining capacity: 6 people
Liquor service curfew: 10:00 PM

And the following for step two:

Indoor and outdoor dining capacity: 6 people
Liquor service curfew: Midnight

Should things stay on track, step three will rescind the liquor service curfew, and there will be no group limit for indoor and outdoor dining.

Obviously, B.C. Restart isn’t what operators wanted when officials announced the expiration of the circuit breaker. However, the new plan does allow operators to plan ahead and gives us a glimpse of a light at the end of a very long, very erratic, very dark tunnel.

To review the plan in more detail, click here.

Image: Gerd Altmann from Pixabay

Face masks forming an X on a red background

May 25, 2021by David Klemt David Klemt No Comments

California Announces Major Shift

California Announces Major Shift

by David Klemt

California is planning for a major shift in Covid-19 protocols and there’s a date set against the state’s most recent announcement.

In three weeks, restaurants and bars will be able to return to pre-pandemic operations, essentially.

This stands in stark contrast to the Golden State’s initial response to the pandemic: they were the first to implement a shelter-in-place order officially.

California Covid-19 Numbers

Due to vaccination rates and other numbers, California plans to reopen completely on June 15.

As of the end of last week, California’s Covid-19 vaccination, infection and death rates are favorable. The numbers are driving the June 15 reopening.

For example, half of adult residents—those age 18 and up—in California are fully vaccinated. Nearly 70 percent have received at least a single vaccination dose.

The numbers are even higher for those who are at least 65 years of age:

Single dose: 90 percent
Full vaccination: 70 percent

California is achieving their numbers by vaccinating more than a quarter-million residents per day. Nearly 40 million doses of Covid-19 vaccines have been administered.

Most recently, the most-populous state in America is seeing a weekly Covid-19 infection case rate of approximately 1,200.

California Restaurants and Bars

What Covid-19 restrictions will California foodservice and drinking establishments operate under on June 15?

Not many.

There will be no capacity restrictions for indoor or outdoor service, nor social distancing requirements on-premise for guests. If there are no social distancing requirements, it stands to reason that guests will be able to move freely inside restaurants and bars.

However, California will follow—according to available information—the CDC’s most recent mask guidance. The agency’s recommendations pertain to those with full vaccinations.

Of course, operators still have the right to keep some or all of their own Covid-19 protocols in place. Indeed, some team members and guests may feel safer if masks and social distancing remain past June 15.

Operators who plan to maintain Covid-19 protocols need to provide staff and the public that information. Also, operators must keep in mind that guest-facing employees will be in the crosshairs if mask and distance requirements remain. It would be wise to set and announce vaccination and infection rates against the rescinding of such protocols and share those numbers.

Image: Solen Feyissa on Unsplash

Vancouver, British Columbia, Canada skyline

May 24, 2021by David Klemt David Klemt No Comments

Return of the Indoor Diners: B.C.

Return of the Indoor Diners: B.C.

by David Klemt

Good news for operators, foodservice professionals and the public as British Columbia prepares for a return to indoor dining.

The ban on indoor dining is set to expire tomorrow, along with the rest of B.C.’s so-called “circuit breaker” restrictions.

However, it remains unclear still whether restaurants can throw their doors open and welcome guests first-thing Tuesday morning.

Confusion

Some operators and restaurant advocacy groups believe the restriction on indoor dining expires at 11:59 PM tonight.

It follows, in their opinion, that the expiration means operators can offer indoor service the following morning, Tuesday, May 25.

Of course, it’s never that cut and dry, is it?

Much like the CDC’s recent update to mask and social distancing recommendations in America, B.C.’s restaurant restrictions are only causing confusion.

While the “circuit breaker” restrictions put in place back in March are set to expire, Premier John Horgan and other officials haven’t made it clear if more restrictions will be put in place.

Additionally, restaurant and other hospitality operators haven’t been given much notice. They’re simply aware that current restrictions expire before midnight tonight.

Consistently Inconsistent

It’s never great to feel like you’re on the back foot. Unfortunately, operators still don’t receive much in the way of a heads up when rules and recommendations change.

Once again, officials and the public make it clear that they think restaurants and bars can simply flip a switch and return to regular service. Once again, the industry and its challenges are ignored.

When those with the power to impose restrictions are vague about what operators should expect after their rules expire, it makes it nearly impossible for operators to prepare properly for what comes next.

Should operators plan on an increase in traffic because they can once again fill their dining rooms? Will they need to prepare for 25-, 50- or 75-percent capacity restrictions? Are their going to be limits to outdoor dining, delivery, carryout and curbside pickup?

How much F&B and other products should they order, planning for a return to indoor dining or more restrictions? In terms of staffing, should operators plan to run with a skeleton or full crew?

Every one of those questions—and several more—have an impact on resources, revenue and survivability. When officials fail to provide all the necessary information when making important announcements, they only cause confusion and create more questions than answers. Too often, they foist their responsibilities onto business owners and the public.

There’s no excuse.

Preparation

Unfortunately, there’s no silver bullet to offer operators in this situation. They’ll need to monitor the situation in B.C. and await clear guidance from government officials pertaining to any upcoming restrictions.

Yet again given no meaningful notice, it’s going to be difficult for operators to plan to get the most out of this week and the near future.

Still, operators will want to give staff notice that they should plan to work. It’s less than ideal but operators should plan to schedule against a few possibilities: a new indoor dining ban, indoor dining with capacity restrictions, and a full return indoor dining.

One of these days, perhaps politicians will listen to our massive industry’s requests and serve us better.

Image: Aditya Chinchure on Unsplash

Bottled Negroni mixed drinks and to-go cocktails

May 21, 2021by krghospitality krghospitality No Comments

Where are To-Go Cocktails Legal?

Where are To-Go Cocktails Legal?

by David Klemt

We’re still coming to grips with what the industry will look like post-pandemic. One pandemic-driven adaptation is to-go cocktails.

For this article, “cocktails” means mixed drinks specifically, as that is how most jurisdictions are defining such to-go drinks.

In some markets, operators can now offer to-go mixed drinks permanently. Some jurisdictions are offering extensions to temporary sales, while others are considering bills.

The To-Go Pivot

Clearly, our industry responds to guest demands and expectations. And what does today’s guest expect? For their every customized whim to be fulfilled—conveniently.

Therefore, it only makes sense that operators constantly adapt to encourage guest loyalty (as far as that’s possible).

People are itching to get out more, impatient to return to their pre-pandemic lives. Even so, the convenience of drinking and dining at home appeals to large swaths of the public.

Of course, it’s not just convenient.

Providing guests the choice to enjoy a restaurant or bar’s F&B offerings and semblance of their unique experience at home—including cocktails—is also about safety and comfort levels.

Obviously, we want guests to be able to comfortably and safely gather in restaurants, bars, hotels, and every other type of hospitality venue. That’s a given.

However, if some people are more comfortable at home for now, operators in a position to meet guests where they are to generate revenue should do so.

Lawmakers Respond

Carryout and delivery beer and wine sales have been legal for some time in many states. Mixed drinks, not so much.

The rules addressing “to-go” cocktails (carryout and delivery are more accurate) were relaxed in several markets in response to indoor dining bans and shutdowns.

However, “loose” laws aren’t permanent changes. Some jurisdictions will eventually rescind their relaxed approach and ban to-go cocktails unless specific legislation passes.

Iowa is the first American state to legalize to-go cocktails permanently. The vote was unanimous in the Iowa House and nearly so in the Iowa Senate.

Operators in Canada or America who intend to sell to-go cocktails must be aware of their jurisdiction’s specific rules, including but not limited to packaging requirements, volume restrictions, food sale components, and transportation laws.

Canada: Delivery and Carryout Rules

Currently, KRG Hospitality operates in Alberta, British Columbia, and Ontario for the Canadian market. Therefore, we’re focusing on those provinces for this article.

Alberta

While packaged, unopened liquor may be sold for off-site consumption, pre-made cocktails may not. Food sales must accompany liquor sales.

British Columbia

The province’s approach to liquor sales for delivery and carryout are the same as Alberta’s. Operators can’t sell to-go mixed drinks.

Ontario

Restaurants and bars can sell pre-made cocktails sealed in bottles, cans, and bags. Like the other two provinces, food sales must accompany to-go liquor sales.

America: Permanent, Extended, Up for Consideration

In total, 11 states have made the move to legalize to-go mixed drinks permanently:

Arkansas
Florida
Georgia
Iowa
Kentucky
Montana
Ohio
Oklahoma
Texas
West Virginia
Wisconsin

Others have introduced bills to make to-go cocktails legal permanently:

Arizona
California
Kansas
Minnesota
Missouri
Nebraska
New Hampshire
New Jersey
New York
Oregon
Pennsylvania

A handful have extended to-go cocktails until at least 2022:

Delaware (March 2022)
Illinois (2024)
Maine (September 2022)
Virginia (July 2022)
Washington (July 2023)

Image: Jonas Tebbe on Unsplash

May 14, 2021by David Klemt David Klemt No Comments

These States are Ending Federal Benefits

Which States are Ending Federal Benefits?

by David Klemt

So far, 22 states across America are planning to end the weekly $300-per-week federal boost to unemployment.

Some reports suggest a few states will opt out of federal unemployment benefits as early as June 12.

Obviously, that’s significantly earlier than the September 6 expiration the American Rescue Plan mandates.

Two Sides

Clearly, the impact opting out of the federal unemployment program is largely academic at this point. We won’t know if the move will lead to a boost in hiring across the country or simply plunge struggling Americans further into peril.

One side, those who support the exit, believe the move will jumpstart the economy and hiring.

In their view, the $300-per-week benefit is a disincentive for claimants to seek employment. That, in turn, is what’s fueling the current labor shortage.

“Incentives matter,” says Montana Governor Greg Gianforte. “And the vast expansion of federal unemployment benefits is now doing more harm than good.”

The opt-out by 15 states will impact 1-1.5 million people.

Now, the other side believes opting out is cruel and will make it even more difficult for drowning Americans to get their heads above water. As they see it, most jobless people are using state and federal unemployment programs correctly.

“Let’s not take our eye off the ball,” says President Joe Biden. “Families who are just trying to put food on the table, keep a roof over their head, they aren’t the problem.”

Hospitality Industry Struggles

Obviously, the $300-per-week benefit is often cited by operators as one of the main reasons they can’t fill available positions.

Unfortunately, the reality of the situation isn’t that simple. Scapegoats may be “convenient” but they’re also dangerous—they distract from real issues.

The pandemic, mass unemployment, and current labor shortage isn’t solely the product of unemployment payment enhancements. A significant portion of hospitality workers aren’t working for other reasons. Many are leaving the industry entirely due to an array of issues.

These include workplace culture, inequity, lack of diversity and inclusion, and earning a livable wage, many among others.

Sure, it’s convenient to point to and vilify one contributor to the hiring struggles operators are facing. However, it’s clear that the industry has long-term problems with which it must reckon. Things can’t continue as they were pre-pandemic if the industry is to reset, recover and thrive in a post-pandemic world.

States Ending Federal Benefits

Montana Gov. Gianforte is the first to announce a state would opt out of the federal unemployment program, causing a domino effect.

So far, the list of states exiting the program are:

Alabama (June 19)
Alaska (June 12)
Arizona (July 10)
Arkansas (June 26)
Georgia (June 26)
Idaho (June 19)
Indiana (June 19)
Iowa (June 12)
Mississippi (June 12)
Missouri (June 12)
Montana (June 27)
New Hampshire (June 19)
North Dakota (June 19)
Ohio (June 26)
Oklahoma (June 26)
South Carolina (June 30)
South Dakota (June 26)
Tennessee (July 3)
Texas (June 26)
Utah (June 26)
West Virginia (June 19)
Wyoming (June 19)

It’s likely that more states will join the exodus.

Update: There are 22 states opting out of the federal unemployment program as of May 20, 2021.

Image: Pepi Stojanovski on Unsplash

May 13, 2021by David Klemt David Klemt No Comments

Tell the Government to Refill the RRF

Tell the Government to Refill the RRF

by David Klemt

The National Restaurant Association is urging restaurant, bar and other hospitality operators to sign a Restaurant Revitalization Fund petition.

Put concisely, the NRA’s petition asks the federal government to replenish the RRF.

Grants are going out and there’s no guarantee the $28.6 billion fund is enough for every eligible business. Therefore, the NRA is calling for more funds.

The Petition

Now, there is good news regarding the RRF. Per the Small Business Administration, 21,000 applicants have received $2.7 billion in grants.

However, when one considers that well over 180,000 grant applications were submitted within the first 48 hours, the $28.6 billion will more than likely run out before every eligible business receives a grant. The first 16,000 grants alone total $2 billion.

According to one source, priority applications carry a value of approximately $29 billion. Obviously, that’s more money than is in the fund.

And that’s only the value of applications receiving priority for the first 21 days. Clearly, more funding is necessary.

As the NRA’s petition states, “We are urging policymakers in Washington—from the White House to Capitol Hill—to replenish the RRF to maximize relief for small independent and franchise restaurant operators. Americans can’t wait to get back into their favorite restaurant with their family and friends, and the federal government can play a key role in making that a reality.”

Click here to sign the NRA’s petition. Our industry is the hardest hit by the pandemic and every eligible business deserves funding.

It’s not that this industry isn’t grateful—it’s that hundreds of thousands of businesses are fighting to stay alive. They’ve been doing so for more than a year.

The RRF

The SBA’s RRF portal link is https://restaurants.sba.gov. Alternatively, operations can use a POS that’s an SBA partner to apply. Partner systems include Clover, NCR, Square, and Toast.

According to the SBA website, certain eligible entities will be given priority.

For the first 21 days the application process is open, priority will go to small businesses with a minimum of 51 percent ownership by women, veterans or socially disadvantaged people.

The application process should open to every applicant on Monday, May 24. For more in-depth information, operators can follow the appropriate links to review the Small Business Administration’s RRF program guide and sample application.

Applicants do not need to register with SAM.gov (System for Award Management) or provide DUNS or CAGE identifiers.

To calculate a grant amount, an applicant subtracts 2020 gross receipts from 2019 gross receipts. Applicants must deduct first-draw PPP and second-draw PPP loans. Any economic disaster loans—Economic Injury Disaster Loans, for example—are not RRF deductions.

Again, please click here to sign the NRA’s petition today.

Image: Konstantin Evdokimov on Unsplash

Wynn Field Club at Allegiant Stadium in Las Vegas

May 12, 2021by David Klemt David Klemt No Comments

Las Vegas Ushers in Next Nightlife Era

Las Vegas Ushers in Next Nightlife Era

by David Klemt

After more than a year of shut downs and severe restrictions, Las Vegas nightlife groups are planning an epic comeback.

Between a recent nightlife group acquisition and a very Vegas approach to sports, the city is preparing to go full send for Summer 2021.

Add to that Governor Steve Sisolak’s plan to reopen Nevada on June 1 and things are finally looking up in America’s Playground.

Only in Vegas

It took more than seven decades for “modern” Las Vegas to get the city’s first major sports team.

No, I’m not counting the AFL, CFL, UFL or XFL teams as “major” in comparison to the NFL or other professional leagues.

First came the Vegas Golden Knights in 2018. The Las Vegas Aces followed a year later, and last year the city became the home of the Las Vegas Raiders.

Because Las Vegas can’t quite bring itself to do things like other cities, two of our arenas feature nightlife elements.

Golden (K)Nights

T-Mobile Arena, home of the Golden Knights, offers the 18,000 square-foot Hyde Lounge.

Run by SBE, the international hospitality and hotel group, Hyde sits atop the general seating area. Not only do guests get an amazing view of sports action, the venue is also open during concerts.

There are private “living rooms” and four bars inside Hyde at T-Mobile Arena. Also, being a Vegas nightlife venue, Hyde offers table service and drives the experience with DJs.

And, of course, there are views of the iconic Las Vegas Strip.

The Death Star

That brings us to Allegiant Stadium, the home of the Las Vegas Raiders, also known as the Death Star among locals.

Wynn Nightlife (two points for anyone who guesses which casino group they represent) is the Official Nightlife Partner and Official Gaming Partner of the Raiders.

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A post shared by Wynn Nightlife (@wynnnightlife)

The Vegas nightlife group is bringing Wynn Field Club to Allegiant’s north end zone—the entirety of the length of the north end zone. Wynn Field Club is an 11,000 square-foot nightlife “venue” that features 42 TVs, a 45,000-watt sound system, two DJ booths and—what else?—exclusivity, bottle service, and Wynn Nightlife DJs.

Also, I hear a Raiders game may break out during DJ sets and bottle popping…

TAO vs. Hakkasan?

Not anymore. Moving forward, it will be TAO plus Hakkasan.

One of the biggest nightlife battles is over as one titan, TAO Group, acquires another, Hakkasan Group.

The result isn’t just news for Las Vegas, though the two nightclub, dayclub and restaurant giants are most closely associated with the city.

TAO Group’s acquisition expands their incredible portfolio to an astounding 61 venues located in nearly two-dozen markets in five continents. Nine of the venues call Las Vegas home: TAO (of course), LAVO, OMNIA, JEWEL, Hakkasan, Marquee, Wet Republic, Beauty & Essex, and Casa Calavera.

Hakkasan Group will continue to operate Hakkasan, OMNIA, JEWEL, Wet Republic and Casa Calavera under the supervision of TAO Group.

Interestingly, Madison Square Garden Entertainment, the group constructing the MSG Sphere, acquired controlling interest in TAO Group in 2017. MSGE paid a reported $181 million for a 62.5 percent stake.

Back to Normal?

If anything, these developments seem to indicate that Las Vegas is on track to come back better than ever. Normal? Las Vegas can do better than that.

Las Vegas is set to re-establish its status as the world leader in nightlife in a post-pandemic world. Hyde Lounge and Wynn Field Club are perfect examples of how Vegas nightlife innovations redefine and then become the standards.

The nation—and the world—has a long way to go to recover from the pandemic. All glimmers of light near the end of a dark and twisted tunnel are welcome. It looks like the Strip’s legendary lights are shining brighter already.

Image: Anthony Mair

Applebee's restaurant with censored, pixelated sign

May 11, 2021by krghospitality krghospitality No Comments

International Chain Slashes Menu

International Chain Slashes Menu

by David Klemt

If you’re curious as to whether “lean and mean” menus are here to stay as a result of the pandemic, look no further than one international chain.

Moving forward, Applebee’s Grill + Bar menus will be some 60 items lighter.

The chain’s menu will be 38 percent smaller, and the change is permanent.

Significant Overhaul

Of course, it isn’t like the Applebee’s menu is tiny now. At about 100 items, it’s still larger than most independent restaurant menus. For contrast, KRG Hospitality president Doug Radkey, in most cases, recommends 12- to 32-item food menus.

Still, the casual dining chain cutting 60 items permanently is a big move.

The decision is a direct result of the pandemic and the toll it took on Applebee’s and the industry overall. Unfortunately, like many operators big and small, chain and independent, the chain had to furlough staff. Lightening the menu made it easier for the chain to adapt and shift toward takeout and delivery.

Weak performers and complex items that affect efficiency are gone. According to John Cywinski, Applebee’s president, the decision means faster ticket times, more consistency, and better efficiency.

Among the 60 or so items that are no longer available: the triple cheeseburger, clam chowder, and BBQ brisket tacos.

Streamline Summer

The decision to eliminate dozens of complex and lagging items puts Applebee’s in a better position for Summer 2021, potentially.

Speaking with CNN Business, Cywinski said, “The team will have to be very thoughtful about every single product or beverage they introduce, and the consequence of it from a complexity standpoint.”

That thoughtful approach is crucial in large part because of Applebee’s new menu policy: When a new item comes onto the menu, an old item must go.

Accordingly, Applebee’s can remain innovative while avoiding once again inflating their menus.

With demand for social interaction, a return to normalcy, and in-person restaurant and bar visits set to explode, Applebee’s finds itself with a menu that’s nearly 40-percent smaller. That should make it simpler for the chain’s restaurant and bar teams to fill orders quickly, efficiently, and consistently.

Menu Refresh

Every operator needs to know their numbers. That doesn’t just mean costs and inventory, by the way.

Do you know the cook times for each food item on your menu? Do you know how many dishes you can make with a given ingredient? Is thoughtful cross-utilization an important element of your F&B operations?

The answers to those questions can help you identify bottlenecks in your operation and become more agile.

Another important question to consider: Do you know which menu items are your slowest sellers? If you do, answer this: Why are they still on your menu?

When you eliminate an item, yes, some guests will express their disappointment. You’ll have to weigh the costs of keeping a poor performer against freeing up resources by losing an item that rarely sells. You may even identify an item that you personally love but just doesn’t move. Again, you have to do what’s best for your bottom line.

You may not have 160 items on your menu. You may not have 100. That doesn’t mean you don’t have at least a handful of items that you can eliminate to reduce costs and increase revenue.

Image: Applebee’s Grill + Bar