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August 24, 2022by David Klemt David Klemt No Comments

Are You Surveying Your Team?

Are You Surveying Your Team?

by David Klemt

Successful recruitment is only one element of overcoming the current labor shortage—retention is another crucial element.

In fact, employee turnover can be incredibly costly. According to the Center for Hospitality Research at Cornell, employee turnover costs nearly $6,000 per hourly team member.

Now, consider what it costs to hire a single employee. On average, it costs $3,500 to hire that worker in the first place. So, the math is simple: Losing an employee costs an operator more than hiring one.

Unsurprisingly, turnover cost more than doubles—nearly $14,000—for a restaurant manager. In short, employee retention is arguably more important than recruitment and hiring.

Labor Shortage

Per Datassential, 33 percent of 801 survey respondents say the labor shortage is their greatest challenge in 2022. More than 70 percent of those respondents are independent operators.

However, independent, chain, and franchise operators appear to agree on one particular element of the challenge. Across segments, hiring hourly back-of-house employees is the most difficult.

In fact, Datassential’s latest FoodBytes report states that restaurants are coming up short in the kitchen. Two-thirds of restaurants are struggling to fill open hourly cook positions.

So, what’s the solution? Higher starting wages? Bonuses for remaining in role for 90 days? Benefits like health insurance and a 401K?

Each of those does work—for recruitment and hiring. What keeps a new hire from leaving after 90 days with their bonus cash, heading down the road to the next restaurant or bar?

It’s commonly agreed that the first 90 days of a new hire’s employment are the most crucial. Wages and benefits keep them in role for roughly three months. During that time, they’re deciding if their role and the employer’s culture are for them.

Employee Engagement

If you’re an owner, operator, or member of the leadership team, you know the importance of data. In fact, you should be obsessed with data collection and analysis.

Truly, the best way to make decisions that will impact the business is with information. Guesswork just doesn’t cut it. Yes, you should pay close attention to your “gut.” However, you should avoid acting on gut instincts before analysing the relevant data.

Wisely, many operators encourage their guests to complete satisfaction surveys. After all, their feedback is crucial to the success of any business. But what about employee surveys? Your team is equally as important as your guests.

Unhappy team members, unhappy guests. Unhappy guests, reduction in traffic. Team members fleeing your business? Your guests pick up on turnover. Eventually, you won’t have a business.

Now, you can assume your team is happy. You can feel like your leadership team is ensuring employee satisfaction and engagement. Or, you can know.

How do you know? You ask.

Satisfaction Surveys

Call it a satisfaction survey, call it a happiness survey… Either way, you’re asking your team members how happy they are with you and their role.

Operators will likely want to keep these surveys anonymous. Several sources that address employee surveys claim most employees prefer anonymity. Unfortunately, this is due to a fear of retribution from ownership or the leadership team.

Even with a healthy workplace culture, anonymity is probably the best for these surveys. Of course, if you’re implementing a 90-day happiness survey for new hires, anonymity doesn’t make much sense.

As far as company-wide survey frequency, there are several options. Once per year is obviously the bare minimum. Therefore, it’s not very effective. Every six months is better but is checking in on your team’s happiness twice per year enough?

The sweet spot appears to be quarterly surveys. More than that—monthly or bi-monthly—will likely get annoying.

Survey Questions

Below are a few questions to consider for your surveys. You’ll have to decide if you want to use multiple-choice, yes or no, matrix, or open-ended questions, or a mix of each type.

Another consideration is how your team will access the survey. The process needs to be as painless as possible. So, consider pushing a link via your scheduling platform, text, or QR code.

How happy are you working here?
How happy are you in your current role?
Would you recommend us to friends and family as a good place to work?
Does the leadership team make you feel valuable?
Do you see yourself working here a year from now?
Are we helping you succeed in your role?
Are we giving you what you need to progress in your career?

Image: Roman Kraft on Unsplash

Guests sitting at the bar inside a restaurant

August 23, 2022by David Klemt David Klemt No Comments

Datassential’s State of the Operator 2022

Datassential’s State of the Operator 2022

by David Klemt

The latest addition to the Datassential FoodBytes research series shares insights into the top three challenges most—if not all—operators are facing.

Now, some of what the report reveals paints a bleak picture. Inflation, the labor shortage, and supply chain issues persist even past the midway point of 2022.

However, operators are a tenacious and innovative group of business owners. Of course, that tenacity seems to manifest in people thinking this industry can weather any storm. That perception can come at operators’ detriment. Exhibit A: The Inflation Reduction Act of 2022 not including replenishing of the RRF. But, I digress.

“The State of the Operator & the Road Ahead,” which you can download here, is helpful and informative. As you may be aware, we’re fans of Datassential and their FoodBytes reports. In fact, you can find our synopses of FoodBytes reports here and here.

Below are some key points that operators should be aware for consideration. I strongly urge you to download this free report today.

Operator Outlook

First, let’s take a look at traffic. As Datassential points out, some hospitality business segments are performing better than others currently.

In large part, this is due to two factors: People working from home, and people returning to travel. So, operators who rely heavily on commuters and in-person workers are struggling. On the other hand, operators inside or around hotels are, per Datassential, performing the strongest at the moment.

Interestingly, though, nearly half of operators (47 percent) are seeing an increase in traffic in comparison to pre-Covid levels. Fourteen percent of operators are reporting no change in traffic. Unfortunately, traffic is lower for 39 percent of operators.

Next, sales. In comparison to pre-Covid times, more than half (51 percent) of operators report an increase. Again, 14 percent of operators are experiencing no change. But 35 percent of operators are experiencing a decrease in sales.

Finally, profit margins. Half of operators may be seeing increases in traffic in sales, but profit margins are taking a hit. On average, the industry’s profit margin is now hovering at 13 percent. That’s an eight-percent drop in comparison to pre-Covid levels.

Segment Performance

The findings regarding profit margins are likely to be the most alarming to operators. Historically, our industry has operated on razor-thin margins for decades. Dropping from an average of 21 percent to 13 is concerning.

However, context is important. The segments seeing the lowest profit margins in 2022 are: Business & Industry (B&I), Healthcare, and Colleges & Universities (C&U). Again, remote work (and learning) are largely responsible for those particular segments watching their profit margins tumble.

The strongest performers are: Quick-Service Restaurants (QSR) at 17 percent; Fast Casual at 15 percent); and Midscale, Casual Dining, and Fine Dining, each at 13 percent. Lodging is just below the current average at 12 percent.

Operator Adaptation

Inflation, rising food costs, supply chain issues, labor shortages… Operators are finding ways to cope, and in some situation, thrive.

Unsurprisingly, the vast majority of operators are increasing menu prices. In the past 12 months, 77 percent of operators have raised menu prices at least once.

These increases range from one percent a staggering 30 percent. However, the majority have kept these increases to one to ten percent. Most (31 percent) have implemented increases of no more than five percent. Just one percent of operators boosted prices between 25 to 30 percent.

Of course, raising prices isn’t the only strategy operators have at their disposal. Forty percent of operators are streamlining their menu, reducing the sizes of their menus. However, it’s wise for operators to review their menus at least every three months to eliminate poor performers.

Other strategies include focusing on value for guests (27 percent); utilizing LTOs and launching new menu items (26 percent); eliminating a specific daypart or portion of the menu (25 percent); and making portion sizes small, or “shrinkflation” (18 percent).

There’s much more revealed in Datassential’s latest FoodBytes report. Download your copy today.

Image: Luca Bravo on Unsplash

August 22, 2022by David Klemt David Klemt No Comments

iPourIt Releases Fourth Annual Pour Report

iPourIt Releases Fourth Annual Pour Report

by David Klemt

Self-serve beverage platform iPourIt’s informative fourth annual Pour Report identifies their top beer and wine pours from 2021.

iPourIt is a pioneer in the self-serve space, enhancing the guest experience and boosting revenue. However, their annual reports are another key reason operators should consider this platform.

Unlike other industry platforms, iPourIt doesn’t limit their resources to clients. Nor do they place resources like their annual Pour Report behind a pay wall. So, this is a transparent company that clearly views their relationships with clients as partnerships.

You can check out their resources for yourself by following this link. To download a copy of the 2021 Annual Pour Report, click here.

Below you’ll find key datapoints from the latest iPourIt report. I encourage you to download and review the report in its entirety.

Key Demographic Information

When it comes to men and women using iPourIt self-serve systems, men are respsonsible for 64 percent of total ounces poured.

On average, men served themselves 6.4 ounces per pour and spent $14.21 on iPourIt per visit. For men, the top pours were IPA, Lager, Cider, Hefeweizen, and Sour.

Conversely, women served themselves nearly 11 million ounces via iPourIt systems. That’s 36 percent of total ounces poured.

On average, women served themselves 5.3 ounces per pour and spent $11.95 per visit. For women, the top pours were Cider, IPA, Sour, Lager, and Hefeweizen.

Interestingly, the top pour for both men and women was Michelob Ultra.

Key Beer Takeaways

The 2021 Pour Report analyzes data from more than 300 iPourIt systems, over 8,800 taps, and 49 million total ounces of beer and wine poured.

In total, patrons consumed nearly 14,600 total products. Further, the data above represents 1.9 million guests served 3.1 million pints. Compellingly, that’s $26.2 million in revenue generated by iPourIt systems.

In terms of iPourIt systems and patrons, cider claimed the number two slot for the top 15 poured beer styles. Perhaps unsurprisingly, IPA claims the top spot. In fact, iPourIt systems served more than 10 million ounces of IPA.

As far as beer styles that are growing in popularity, three styles are on the rise. These climbers are Belgian, Cream Ale, and fruit beer. Conversely, Lager, Red Ale, and Witbier slipped down the list. Interestingly, Witbier slid four slots on iPourIt’s top 15 beer styles list. For the first time since iPourIt has been releasing reports, Seltzer made it onto the list, claiming the 11 spot.

Another interesting bit of data concerns consumer preferences. IPA may be the beer style seeing the most pours but domestic Lagers and light Ales are the top-selling products across iPourIt systems. The platforms interprets this as consumers trying small samples of IPA but going with Lagers and Ales for full serves.

Top Beer Pours by Category

Helpfully, iPourIt breaks down their Pour Report into several categories. So, let’s take a look at the top five from several of their lists.

As for the top products poured overall, Michelob Ultra claims the top spot. In descending order, it’s followed by Bud Light, Golden Road Mango Cart, Ace Pineapple Cider, and Modelo Especial.

For domestic pours, numbers one and two are the same as above. However, Coors Light, Miller Lite, and Pabst Blue Ribbon. The top five import products are Modelo Especial, Delirium Tremens, Rekorderlig Strawberry-Lime, Stella Artois, and Dos Equis Lager Especial.

Switching gears to craft and microbrew, Mango Cart claims the number one spot. Numbers two through five are Space Dust, 805, Kona Big Wave, and Big Storm Oak & Stone Snowbird Pilsner.

Of course, the report goes much deeper than just those four categories. There’s also the top 25 IPAs, and the top 15 Lagers, Ciders, Hefeweizens, Sours, Stouts, Blonde Ales, Pilsners, and Pale Ales.

New for the annual Pour Report are the top 15 fruit beers and Seltzers.

Key Wine Takeaways

Before we proceed, iPourIt systems aren’t limited to beer and wine. If it’s a beverage without pulp or sediment intended to be poured cold, iPourIt can handle it.

So, cold brew coffee, kombucha, sodas…these are all revenue-generating serves to pour alongside beer and wine.

Now, onto the 2021 report. The key wine takeaway focuses on sparkling wine. In short, sparking wines have proven popular with iPourIt patrons. So, the platform suggests using their systems to offer guests build-your-own Mimosas, as well as promoting self-serve as an enhancement to brunch.

Addressing the top-performing wines for iPourIt systems, the top five overall in descending order are:

Boca Barrel Boca Frizzante
Starborough Sauvignon Blanc
Carletto Prosecco (up two spots)
Stemmari Pinot Grigio
Archer Roose Bubbly

Boca Frizzante is a “Prosecco-style” white wine sparkler. Archer Roose Bubbly is also a Prosecco-style white. An actual Prosecco climbed the top 10 to reach spot number three. Essentially, three Proseccos are among the top five most-poured wine products for iPourIt patrons.

Interestingly, the top five are all white wines. In fact, there are only two reds among the top ten, both of them Cabernet Sauvignons.

Image: Josh Olalde on Unsplash

United States Capitol Building and Capitol Grounds

August 19, 2022by David Klemt David Klemt No Comments

Members of Congress Send Letter to SBA

Members of Congress Send Letter to SBA Regarding $180 Million

by David Klemt

More than 70 members of Congress are urging the Small Business Administration to act quickly to fund eligible RRF applicants.

This news comes on the heels of the findings of the Government Accountability Office’s investigation into the RRF. As you may recall, the GAO discovered $180 million in unobligated funds.

In response, 73 representatives and senators sent the SBA a letter. Sen. Catherine Cortez Masto (D-NV) and Rep. Earl Blumenauer (D-OR) are leading the effort to quickly and fairly distribute the $180 million.

At the start, members of Congress ask that the SBA take immediately action. Also, that the SBA give priority consideration to RRF applicants who didn’t receive funds even though they were awarded grants.

By the way, that’s about 7,000 applicants.

Unfortunately, the recently passed Inflation Reduction Act of 2022 doesn’t include funds to replenish the RRF. And while $180 million is nowhere near the $42-43 billion our industry needs and deserves, it’s something. In fact, it’s a reason to keep pushing Congress to do the right and responsible thing.

Interestingly, the letter sent to the SBA also urges the clawing back of funds for various reasons. One social media user, in response to the letter, suggested auditing the recipients. Presumably, this would also lead to a clawback and, in turn, the further awarding of grants.

Key Segments of the Letter

“Last month, the Government Accountability Office (GAO) released a report titled Restaurant Revitalization Fund: Opportunities Exist to Improve Oversight that stated that as of as of June 2022, $180 million of RRF funding was unobligated. As you know, about 177,000 restaurants that applied to the program did not receive awards. While we understand the remainder of the funding will not reach every business that applied, it is imperative that the SBA distribute every dollar to help as many struggling restaurants as is feasible.

“In addition to these actions, we are also urging that SBA take action to recover funds that have been awarded to ineligible applicants, were found to be accepted fraudulently, or could otherwise be returned. For example, the aforementioned GAO report states that SBA does not require recipients to report their operating status, despite the statute requiring that businesses that permanently close to return the unused funds to SBA. SBA has itself identified potentially ineligible recipients, such as clubs and hotels that failed to meet statutory eligibility criteria. Money recovered from fraudulent and ineligible businesses can subsequently be used to help
fund the many businesses who were unable to receive grants. We urge you to take action on this matter and provide us with detailed information on the amount of funding that may be recovered as well as SBA’s progress in doing so.”

Image: Francine Sreca from Pixabay

August 17, 2022by David Klemt David Klemt No Comments

End the Month with this Sour Cocktail

End the Month with this Sour Cocktail

by David Klemt

End the month of August with a promotion focusing on one of the most popular members of the iconic sour cocktail family.

As I’ve been saying in several of this month’s articles, August is full of bar holidays. This month we celebrate Albariño, Cabernet Sauvignon, Pinot Noir, and Prosecco. And that’s just the wine holidays, which also include National White Wine Day and National Red Wine Day.

Additionally, National Rum Day and Mai Tai Day in August. Apparently, however, eight bar holidays just isn’t enough. And that’s awesome.

You see, we have another bar holiday to celebrate this month. National Whiskey Sour Day takes place on Thursday, August 25.

The Sour Family

Family, category, type… There are several ways to distinguish groups of cocktails.

And depending on your source preference, there are either a handful of families or at least twenty. Hey, why make things easy when we can obsess over minutiae and argue with our peers?

One of the most popular lists of families comes from Gary “Gaz” Regan, an icon in his own right. Sadly, he died on November 15, 2019. Regan’s 2003 book Joy of Mixology identifies “sours” amongst 19 other families.

In 1862, Jerry Thomas included several sours in his book The Bar-Tenders Guide. (a.k.a. How to Mix Drinks). You’ll find the Brandy Sour, Gin Sour, Santa Cruz Sour, and Whiskey SOur. However, a cocktail need not include “Sour” in its name to be part of this cocktail family.

Consider the characteristics of a sour: a base spirit, lemon or lime juice, and a sweetener. In some cases, also egg whites.

So, those defining elements place the Collins, Daiquiri, Margarita, French 75, Gimlet, Mojito, Paloma, Rickey, Sidecar, and Southside in the sour family. However, some would place the members of this group that call for a carbonated element into either the Champagne or so-called “sparkling sour” family.

Now, if you really want to get pedantic, the Whiskey Sour could be a member of the Punch family as well.

The Whiskey Sour

So, does it surprise you to learn that we don’t know the exact origin of the Whiskey Sour? As in, we don’t know precisely who to credit for creating this classic?

Well, it shouldn’t, as cocktail history is quite often murky and mysterious at best.

However, we know that the first appearance of the Whiskey Sour recipe is from Jerry Thomas’ The Bar-Tenders Guide. So, that means the cocktail was known in 1862.

Yet, it’s believed that this recipe was known for at least a hundred years prior. Interestingly, one can argue that the Whiskey Sour is sibling to Grog. In the 1700s, British Vice-Admiral Edward Vernon commanded captains to allow sailors to purchase sugar and limes to make their watered down rum rations taste better.

Hey, sounds like a base spirit, lemon or lime juice, and sweetener to me.

Alright, that’s enough history for you to share with your guests. To celebrate National Whiskey Sour Day, create a handful of LTOs. This can be as easy as offering a Whiskey Sour menu featuring an array of bourbons or other whiskeys. Additionally, you can menu a signature Whiskey Sour and have variants such as the New York Sour or Penicillin accompany it.

Also, if your local legislature permits the discounting of alcohols, you can offer a discount on Whiskey Sours. For food pairings, consider barbecue pork dishes, Cheddar cheese, or brie.

“Gaz” Regan’s Cocktail Families

For the curious, below is the list of cocktail families according to “Gaz” Regan, in alphabetical order:

Beer- and Cider-based
Bottled
Champagne
Cobblers
Duos and Trios
French-Italian
Frozen
Highballs
Hot
Infusions
Jelly Shots
Juleps
Milanese
Muddled
Orphans
Pousse-cafes
Punches
Snappers
Sours
Tropical

Image: Ambitious Creative Co. – Rick Barrett on Unsplash

August 16, 2022by David Klemt David Klemt No Comments

5 Self-serve Beverage Brands to Know

5 Self-serve Beverage Brands to Know

by David Klemt

If you’re an operator who wants to leverage the popularity of self-serve beverages, these are the brands you should consider.

There are several reasons to invest in self-serve beverage solutions:

Reducing costs
Reduction in waste
Guest convenience
Guest experience
System customization
Real-time system management and reports
Security

Truthfully, had I been told ten years ago that guests would want to serve themselves beer, wine, and other drinks, I would have raised an eyebrow. It’s possible, sure, but I would’ve been skeptical.

Well, it turns out that I would’ve been wrong. Indeed, today’s guest seems to enjoy pouring their own drinks from self-serve systems.

From convenience to control over their experience, these platforms are proving popular with consumers. An appealing factor appears to be the ability to sample a range of beverages to discover new favorites. And, of course, they can do so without having to purchase full drinks or asking a bartender or server for a sample.

So, below are some of the brands in the self-serve beverage world that operators need to know and consider.

Operator Benefits

In terms of P&L, your bottom line will thank you for embracing self-serve solutions.

First, the popularity of these systems increases sales. Guests can sample an array of drinks easily, choose a favorite or two, and serve themselves at their convenience. Additionally, guests tend to view self-serve systems in a positive light due to perceived value.

Second, an impressive self-serve beverage wall can be a sight to behold. There are venues with 100 self-serve taps and screens, which is an impressive sight. There are also all manner of designs not dependent on a wall. One great example is the rotating self-serve beer system at the Famous Foods Center Bar inside Resort World Las Vegas.

In other words, self-serve beverage systems help concepts stand out among competitors.

Third, self-serve systems allow operators to streamline operations and reduce costs. For example, labor costs can be reduced, as can waste.

And fourth, these solutions can lead to improvements in the guest experience. Not having to wait in line and being able to engage more with front-of-house staff aids in guest perception.

iPourIt

According to the brand itself, iPourIt installed the world’s very first beer wall. Since then, the platform has worked tirelessly to improve their solutions.

One way they’ve improved involves the security and usability of their system. As you’ll see with most self-serve brands that pour alcohol, guests are locked out of these systems without RFID access.

IPourIt offers several types of RFID solutions, from bracelets to fobs. Of course, other systems use similar tech. However, iPourIt prides themselves in offering touch-free RFID access and eschewing the need to leave cards in slots when pouring.

Another benefit is that as long as the beverage isn’t meant to be poured hot or doesn’t have pulp/sediment, iPourIt can handle it.

PourMyBeer

This company is iPourIt’s main rival. When you review how they can improve an operators’s bottom line, it’s not hard to see why.

PourMyBeer claims some impressive stats:

45 percent sales increase
50 percent increase in profits
20 percent reduction to labor costs
Less than three percent waste

Like other systems, PourMyBeer can help operators leverage wall space. In addition, a single PourMyBeer screen can control four taps, so a wall doesn’t haven’t to be overloaded with screens.

Impressively, this platform also boasts the most POS integrations among the self-serve systems. Obviously, this is beneficial to the vast array of operators.

Table Tap

For operators looking for both a pioneer in the self-serve space, Table Tap may be the perfect partner. In particular, the use of “underage cards” by underage guests to access non-alcohol drinks is a nice feature. So, children up to early college-age students can get in on the fun.

Standing out from other platforms, Table Tap offers wall systems and table-mounted systems. Truly, offering a self-serve wall and a number of tables with the same tech is impressive.

In fact, if I were to install both solutions I would consider the tables a self-service take on VIP seating. And, I’d charge accordingly. Just something operators may want to consider.

Another cool feature relates to Table Tap’s software. While not the most mind-blowing functionality, guests can control an operator’s sound system via the TableTab ordering platform. Better yet, if an operator charges fees to select songs on their jukebox, TabelTab adds them to guest tabs.

To learn more about Table Tap, give episode 22 of Bar Hacks a listen.

Drink Command

“We do everything self pour, and more,” proclaims the Drink Command website.

Is an operator looking for a killer self-pour wall? Done. Table-mounted taps? Check. What about a self-serve tower, self-serve mobile kegerator, or a heavy-duty, mobile, self-serve counter? Drink Command has all three.

In other words, Drink Command makes it easy for operators to get creative and implement a range of self-pour solutions. Additionally, with mobile solutions, operators who want to expand into catering, pop-ups, and special events can do so easily.

For a list of other benefits—including foam-free beer pours, advertising interstitials, and consumption limits—click here.

Napa Technology

Makers of the TapStation, Napa Technology promises a boost to the guest experience. In part, this is because guests don’t have to wait in long lines at the bar.

Additionally, as stated prior, today’s guest enjoys using self-serve beverage systems.

Unlike other platforms, the Napa Technology TapStation doesn’t rely on wall installations. Instead, TapStation dispensers are available in two- and four-keg systems. These stations can be placed anywhere on the floor rather than a wall.

The TapStation can serve beer, wine, kombucha, and cold-brew coffee, ensuring it’s as versatile as the systems above.

Image: Brad on Unsplash

The Florida Theater in Jacksonville, Florida

August 15, 2022by David Klemt David Klemt No Comments

Top 10 States Attracting High Earners

Top 10 States Attracting High Earners

by David Klemt

Using the inflow and outflow data of tax filers earning $200,000 or more, SmartAsset identifies the top ten states attracting high earners.

When it comes to the number-one state, “it’s not even close,” says SmartAsset Advisors. Not surprisingly, several top inflow cities (according to Redfin data) line up with SmartAsset’s top inflow state list.

So, why should this information matter to operators? Plainly, it’s important market information. Population, household income, and age information are crucial considerations when opening any business.

In fact, KRG Hospitality includes such data (and much, much more) when conducting research for our proprietary feasibility, business, and concept plans. Among many elements of opening a restaurant, bar, hotel, or entertainment venue, the income of one’s target audience is crucial.

Knowing where high-income households are leaving and moving to can inform many operator decisions. Where should one open their first concept? Which markets should one consider for expansion? What type of concept will work in a market? What are the threshold price points for menu items? How will this information help inform design choices?

Operators need to recoup their outlay. The income of a concept’s ideal guest should be as important to an operator as knowing their costs.

Top Ten Inflow States

Interestingly, the top state on this list did experience significant outflow in 2020. In fact, the state lost 11,756 high-earning households in 2020.

However, the state also added 32,019 such households, netting 20,263 high earners.

Utah
Idaho
Nevada
Colorado
Tennessee
South Carolina
North Carolina
Arizona
Texas
Florida

Another compelling detail of the states on this list pertains to income tax. In short, three of the states don’t levy personal income tax.

Above, they’re the states in bold: Florida, Nevada, and Texas.

Top 10 Outflow States

So, above are the ten states are seeing the greatest an inflow of high-earning households. Which means, of course, there’s an inverse.

Below, the ten states experiencing the greatest outflow of high earners. Unsurprisingly, SmartAsset deems several entries on the list high-tax states. Also, Washington, DC, is a high-tax area.

Moreover, the list below includes five of the top ten high personal income tax jurisdictions (in bold).

Ohio
Minnesota
Washington, DC
Maryland
New Jersey
Virigina
Massachusetts
Illinois
California
New York

However, it’s not as though these states are seeing a massive exodus of high-earning households. In fact, per SmartAsset, these states have more high-income households than the national average.

Nationally, high-earning households account for less than seven percent of all tax filers. According to SmartAsset, nearly nine percent of tax filers are high-income households in the top ten outflow states.

Image: Trevor Neely on Unsplash

August 12, 2022by David Klemt David Klemt No Comments

Celebrate Two August Bar Holidays with Rum

Celebrate Two August Bar Holidays with Rum

by David Klemt

If you and your team have a commitment to programming and promotions, you have to love all the bar holidays available to you in August.

Not only are there six wine holidays in August, there are two holidays that call for rum. In fact, August is National Rum Month.

On August 16 you have the opportunity to program for National Rum Day. Obviously, rum is a legendary spirit with loads of history. So, you’ll want to honor it correctly—get creative and pull out all the stops.

Of course, one excellent way to celebrate rum is with famous perfect builds of classic rum cocktails. One of these classics is the iconic Mai Tai. Oh, yeah—that’s the other rum holiday in August!

After you program for Tuesday, August 16, prepare for Mai Tai Day on Tuesday, August 30.

June 30 is NOT Mai Tai Day

Now, if you Google “National Mai Tai Day” or “Mai Tai Day,” you’ll get an interesting result. You’ll see that some say National Mai Tai Day is June 30.

Well, Trader Vic’s says that’s absolutely not the case. In fact, a proclamation from the City of Oakland declares August 30 is Mai Tai Day.

On August 30, 2009, at-large councilmember Rebecca Kaplan made it official.

But why, I hear you asking (maybe, possibly), should we take Kaplan’s word for it? For me, it’s because Trader Vic’s themselves confirm that August 30 is “the real” Mai Tai Day.

Okay, but why should we take Trader Vic’s word for it? Because Trader Vic himself is the inventor of the Mai Tai.

Fact not Fiction

As I often point out when diving into cocktail history, much of what we “know” about certain drinks is lore. Either we simply can’t be 100-percent certain about a cocktail’s origins or multiple people are given the credit.

I mean, in some cases multiple people take the credit (and the glory) for themselves.

However, that’s not the case with the legendary Mai Tai. We know that Victor J. “Trader Vic” Bergeron is the classic cocktail’s creator.

Getting inspiration from traveling and operator peer Donn “Don the Beachcomber” Beach, Bergeron transformed his bar Hinky Dink into Trader Vic’s.

So, what do many (most, if we’re honest) operators like to do when they open or rebrand their business? Come up with a signature drink or dish.

In the case of Trader Vic’s, the Mai Tai was born.

The Real Mai Tai

Interestingly—perhaps sadly—the Mai Tai is often the subject of “mistreatment.” In part, we can blame Trader Vic for this.

Now, before you break out your pitchfork, I’m not vilifying Trader Vic. However, he did refuse to share his Mai Tai recipe with others. Author Wayne Curtis explains that this secrecy is “why we have so many bad Mai Tais with pineapple juice and other hideous additions.”

Those hideous additions? Juices, an array of rum styles, floats, garnishes beyond a lime shell and mint sprig… It’s likely you’ve never seen consistency in Mai Tai builds.

As Trader Vic himself tells it: “I took down a bottle of 17-year old rum. It was J. Wray & Nephew rum from Jamaica—surprisingly golden in color, medium bodied but with the rich pungent flavor particular to the Jamaican blends.”

So, that dispels the notion that you use a light rum and a dark rum to build a Mai Tai. He also only added orgeat, orange curaçao, rock candy syrup (the recipe calls for demerara simple), and fresh lime juice.

To be fair, it’s said that the popularity of the Mai Tai forced the J. Wray & Nephew rum (almost) to “extinction.” Rumor has it that original bottles can command auction prices of $50,000 or more.

Trader Vic’s Original Mai Tai Recipe

A lot of us like to put our spin on things. However, there’s an official recipe from the official creator of the Mai Tai.

So, let’s honor Trader Vic and his iconic creation. Below is the recipe that most closely follows the Trader Vic’s spec. Obviously, nobody expects you to track down a $50,000 bottle of rum to follow the original with ruthless precision.

1 oz. Light rum
1 oz. Dark rum
Fresh lime juice (keep half of the squeezed lime’s shell)
0.5 oz. Orange curaçao
0.25 oz. Orgeat
0.25 oz. Simple syrup
Fresh Mint Sprig
1 cup Crushed ice

Add crushed ice to a shaker. Some bartenders also add some ice cubes. Next, add the liquid ingredients, and shake. Pour—without straining—into a double Old Fashioned glass. Garnish with the lime shell and mint spring. That’s right—the original recipe doesn’t call for a pineapple wedge or cherry.

Image: Blake Wisz on Unsplash

August 10, 2022by David Klemt David Klemt No Comments

So, What’s Up with that $180 Million?

So, What’s Up with that $180 Million?

by David Klemt

It’s not much in comparison to the $40 billion we need to replenish the Restaurant Revitalization Fund but $180 million is still significant.

According to a June 14 report, the Small Business Administration is sitting on $180 million in RRF funds. This information came to light due to a Government Accountability Office (GAO) investigation.

Unfortunately but unsurprisingly, the funds likely won’t reach operators for a while. Why is that? Well, the SBA is working with the Justice Department to “formulate a plan on how to distribute” the money.

As we know, bureaucracy tends to move at a glacial pace. Additionally, $180 million is nowhere close to the roughly $42 billion it would take to fund RRF applicants who have not received grants.

Where did this Money come From?

We know that $24 million is from funds set aside by the SBA for litigation. However, according to the National Restaurant Association, the American Rescue Plan Act of 2021 didn’t expressly include such a set aside.

Interestingly, the NRA is calling for the SBA to disperse the litigation set aside to RRF applicants. This is due to their interpretation of “the spirit of the law” and unobligated funds.

Now, on to the biggest chunk of the tens of millions of dollars in unawarded, unobligated RRF money. Where, exactly, are these funds from?

Well, it’s a little murky at the moment. Per the GAO, awards returned by either recipients or their financial instutions amount to $56 million. The rest, according to the GAO, comes from “realized or anticipated recoveries,” per their report.

However, some sources report that $156 million was clawed back by the SBA and that the $24 million set aside make up the $180 million.

So, Who gets the Money?

In short, we don’t know yet. In fact, we don’t even know if RRF applicants will have to apply again for a piece of the $180 million.

Additionally, we don’t know if applicants who received an approval for an RRF grant but didn’t receive the award will be processed first.

What we do know is that if every dollar of this “leftover” $180 million is distributed to RRF applicants, a mere 0.44 percent would receive a grant.

As Nation’s Restaurant News reports, 150,166 RRF applicants were in fact approved for a grant but never received one. It would take over $41 billion to fund all 150,000-plus applicants.

When the Justice Department and SBA finalize a plan, we’ll let you know.

Image: John Guccione on Pexels

"Life's too short to drink bad wine" cork

August 9, 2022by David Klemt David Klemt No Comments

August: Attack of the Wine Holidays

August: Attack of the Wine Holidays

by David Klemt

August doesn’t claim just one or two or even three wine holidays, there are actually six such holidays during this month.

Kicking off August are International Albariño Day and National White Wine Day. Obviously, those days have come and gone.

However, there are still four more wine holidays you can leverage:

National Prosecco Day on Saturday, August 13;
Thursday, August 18 is National Pinot Noir Day;
National Red Wine Day takes place on Sunday, August 28; and
Monday, August 29 is International Cabernet Sauvignon Day.

So, that’s just over two weeks to draw in guests, move some inventory, and generate revenue. Below you’ll find crash courses in three varietals so you and your team can speak with guests in a way that reduces or outright eliminates wine intimidation.

As a cool bit of trivia, two of the varietals we celebrate this month are among the six “original” Noble Grapes: Pinot Noir and Cabernet Sauvignon. The other four, for the curious, are Merlot, Chardonnay, Riesling, and Sauvignon Blanc.

Prosecco 101

First, yes, like Champagne, Prosecco is a sparkling wine. However, despite all the comparisons made between Prosecco and Champagne, the bubbles and production methods are just about the only similiarities between the two.

Champagne, of course, is French. Prosecco hails from Italy and is the country’s top sparkling wine. Like Champagne, Prosecco is protected and must be produced in a specific region.

To be Prosecco, the wine must consist of 85 percent Glera. There are two other grapes producers may use: Chardonnay and Pinot Noir.

Until recently, Prosecco (a.k.a. as you now know, Glera) has been treated as “lesser than” Champagne, commanding much lower prices. However, producers are now making bottles that range from inexpensive to higher end. In fact, you’ll find Prosecco holding its own against its French counterpart on many fine-dining menus.

To impress with Prosecco food pairings, go with cheese, cured meats, and pizza. Pizza and Prosecco? You can’t go wrong there!

Pinot Noir 101

Given that Pinot Noir finds itself in blends, Champagne, Prosecco, and other sparkling wine, you can get creative when celebrating National Pinot Noir Day.

For American operators, two of the top Pinot Noir-producing states are California and Oregon.

In Oregon, Willamette (rhymes with “damn it”) Valley produces incredible Pinot Noir. When it comes to California, look for bottles from Russian Rivery Valley, Sonoma, and the Saint Lucia Highlands.

For Canada, the top production regions are Ontario, British Columbia, Québec, and Nova Scotia. In particular, look for bottles from Prince Edward County, the Niagara Peninsula, and Okanagan County.

Generally speaking, Pinot Noir tends to be light or medium in body. So, if conducting a tasting, you may want to taste people on Pinot Noir before bolder red wines.

When it comes to food pairings, remember that this is a more “delicate” varietal. So, you’ll want to avoid dishes and food items with big, bold, rich flavors. This is a wine that pairs wonderfully with a variety of cheeses.

Cabernet Sauvignon 101

Ah, Cab Sauv. For both America and Canada, Cabernet Sauvignon is among the most popular varietals. It’s so popular in the US that it’s called the King of Grapes.

As you likely can guess, California is the top Cab Sauv-producing state in America. In particular, Napa Valley is known for world-class Cabs.

While most people think of California, Bordeaux, and Tuscany, Canada also produces fantastic Cabernet Sauvignon. Interestingly, the grape grows well (as do many varietals we associate with Bordeaux) throughout Canada.

However, Prince Edward County and the Niagara Peninsula are two of the best regions for Canadian Cab Sauv.

A bigger and bolder wine than Pinot Noir, Cabernet Sauvignon pairs well with rich, bold foods. If it’s grilled, smoky, peppery or otherwise assertive, Cab Sauv will likely play well with it.

So, there you have it. Two weeks of wine holidays for you to showcase your wine inventory and pairing skills. Cheers!

Image: D A V I D S O N L U N A on Unsplash