Brewery

Modern neon sign hanging in window
by David Klemt David Klemt No Comments

RRF Applications Open Monday

RRF Applications Open Monday

by David Klemt

Modern neon sign hanging in window

In long overdue but very welcome news, the Small Business Administration’s RRF portal opens to accept applications on Monday.

Operators and business owners will be able to register this Friday, April 30.

We definitely recommend doing so to make the application process simpler and (hopefully) less frustrating on Monday, May 3.

What You Need to Know

Mainly, the following: The SBA’s RRF portal link is https://restaurants.sba.gov. It would probably be a good idea to go ahead and bookmark that site now.

Alternately, operators using an SBA POS partner to apply. Partner systems include Clover, NCR, Square, and Toast.

Per the SBA, operators will be able to register via the website beginning at 9:00 AM EST on Friday. Again, it would be wise to plan on doing exactly that.

Anything that can be done to speed up the application process opening Monday should be done.

According to the SBA website, certain eligible entities will be given priority. For the first 21 days the application process is open, priority will be granted to small businesses with a minimum of 51 percent ownership by women, veterans or socially disadvantaged people.

However, all eligible owners and operators should register on Friday and apply on Monday. Doing should, in theory, help applicants secure their grants in a more timely manner.

RRF Preparation

The SBA’s Restaurant Revitalization Fund portal opens at noon ET on Monday. It’s best to prepare as much as possible as it’s likely applicants may find themselves in a queue depending upon traffic.

Operators can calculate their grant amounts with the following equations for applicants:

  • in operation prior to or on January 1, 2019: 2019 gross receipts minus 2020 gross receipts minus PPP loan amounts.
  • that began operations partially through 2019: (Average 2019 monthly gross receipts x 12) minus 2020 gross receipts minus PPP loan amounts.
  • who began operations on or between January 1, 2020 and March 10, 2021: Amount spent on eligible expenses between February 15, 2020 and March 11, 2021 minus 2020 gross receipts minus 2021 gross receipts (through March 11, 2021) minus PPP loan amounts
  • not yet opened but have incurred eligible expenses: Amount spent on eligible expenses between February 15, 2020 and March 11, 2021 minus 2020 gross receipts minus 2021 gross receipts (through March 11, 2021) minus PPP loan amounts

Note: Entities who began operations partially through 2019 may elect, at their own discretion, to use either calculation two, three or four above.

For further guidance and to prepare as much as possible, please click here for the SBA’s RRF guide, and click here to review the sample application.

The Independent Restaurant Coalition also has a handy checklist posted to Instagram:

Good luck!

Image: Prateek Katyal on Unsplash

Help Wanted sign taped in window
by David Klemt David Klemt No Comments

The Reality of Hiring Right Now

The Reality of Hiring Right Now

by David Klemt

Help Wanted sign taped in window

Operators can add recruitment, hiring and retention among to the growing list of challenges they’re facing due to the pandemic.

Labor struggles aren’t exactly a shock to the hospitality industry.

However, the speed with which the many stark predictions of labor shortages and challenges across North America has caught some by surprise.

Outlook: Brutal

Fast-casual to fine dining. Independent to chain. Regional hospitality group to multi-national powerhouse.

No operator, no concept, no market appears immune to today’s recruitment, hiring or retention challenges.

It’s not the only reason but the federal boost to unemployment is exacerbating the situation. Restaurant operators across America have been reporting that their workers are making more on unemployment than they would make returning to their jobs.

It’s likely the hiring situation won’t improve until the end of August or start of September; the federal boost to unemployment is set to expire on September 6.

Of course, that points to another glaring industry issue: livable wages and benefits.

The pandemic didn’t cause the labor shortage and hiring problem on its own, but it certainly hasn’t helped anything. Some operators throughout North America say they’ve been hunting for workers for all positions for months.

Incentives & Bonuses

Operators are fighting for workers. To many reading this, that’s not a surprise. However, many operators report fighting to even get candidates to show up for interviews.

Famously, one McDonald’s franchisee in Tampa, Florida, is using a $50 incentive for interviews. If a candidate manages to follow through and show up for their interview, they walk away with $50.

During a recent conversation with Chef Brian Duffy (which we’ll be releasing as episode 33 of the Bar Hacks podcast), interview incentives came up. While it’s no $50 bonus just for showing, Chef Duffy has offered candidates free lunch for appearing for their interviews. And yes, he still struggles.

Interestingly, appearance incentives don’t appear to be working. What does appear to be working? Increasing starting wages, referral programs, apply-via-text functionality, and all manner of signing and performance-based bonuses.

The bonuses run the gamut. Show up for all your shifts for three or four months and earn a $500 bonus. Paying down student loans. Fronting the bill for culinary school. One restaurant in Alabama is offering an SUV to their top-performing worker later this year.

In addition to bonuses, wages are seeing a boost. Jobs that would normally start at $12 to $15 per hour are now offering starting wages of $16 to $18 dollars per hour.

No matter how one slices it, the situation leads to cost hikes across the board for operators. When costs increase for operators, prices increase for consumers. Margins shrink, the old cycle continues, the industry struggles.

Reality Check

Now, it’s simple to blame the pandemic for the current situation. To say it’s not a major factor would be incredibly disingenuous.

That said, the struggle to find and keep workers is also a culmination of decades-long, industry-wide problems.

Lack of diversity, inclusion, equality, living wages, opportunities, and transparency; failure to address social issues; inexcusable, threatening, and outright illegal behavior… All of this and much more contributes to the industry’s hiring and retention challenges.

That’s a criminally shallow summary of the situation—I’m well aware. Doug Radkey, president of KRG Hospitality, addresses the need to review and reset the industry in his book Hacking the New Normal. He takes a deep dive into rejecting the status quo in this industry.

My point is that operators can’t blame their woes solely on the pandemic, absolving themselves of responsibility.

Operators must take a hard look at themselves and their operations, and ask difficult questions. Doing so can be uncomfortable. But neither positive change nor growth come from resting in the comfort zone.

Image: Tim Mossholder on Unsplash 

"This is the sign you've been looking for" white neon sign on brick wall
by krghospitality krghospitality No Comments

SBA Releases RRF Guide and Forms

SBA Releases RRF Guide and Forms

by David Klemt

"This is the sign you've been looking for" white neon sign on brick wall

Operators in the United States are nearing the opening of the Restaurant Revitalization Fund application process.

The Small Business Administration’s RRF program guide and sample application are now available.

Let’s jump in!

RRF at a Glance

In simple terms, the RRF is the most targeted relief the industry in America has received since the pandemic took hold.

Eligible entities apply for a tax-free grant equal to the amount of a their pandemic-related revenue losses.

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, even if they’re paid back or forgiven. Any economic disaster loans—Economic Injury Disaster Loans, for example—are not RRF deductions.

Per the SBA, operators do not need to register for a System for Award Management (SAM.gov) account, meaning they no longer need to acquire a DUNS number.

RRF Eligibility

As the SBA’s RRF program guide states, eligible businesses A) must not be closed permanently, and B) are places where customers gather primarily to consume food or drink. Such entities include:

  • restaurants;
  • bars;
  • saloons;
  • lounges;
  • taverns;
  • food trucks, carts and stands;
  • snack and non-alcoholic beverage bars;
  • licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase product; and
  • other similar places of business in which the public or patrons assemble for the primary purpose of being served food or drink.

However, that’s in no way the entire list of eligible businesses. Bakeries, breweries, microbreweries, brewpubs, taprooms, distilleries, wineries, and tasting rooms are eligible if they can provide documentation (which must accompany their application) that:

  • on-site sales to the public comprised at least 33% of gross receipts in 2019; or
  • original business model should have contemplated at least 33% of gross receipts in on-site sales to the public if they’ve yet to open or opened in 2020.

Interestingly, it’s possible for an inn to be eligible for the RRF. Such a business is subject to the same eligibility requirements as bakeries, breweries, etc.

Eligible Expenses

Businesses that receive an RRF grant may use the funds for eligible expenses during their covered period. That timeframe is the “period beginning on February 15, 2020 and ending on March 11, 2023.” Should the business close permanently, that period will end when the business permanently closes or on March 11, 2023, whichever occurs sooner.”

A grant recipient must return any funds to the Treasury if they’re unable to use for eligible expenses by the end of the covered period.

So, which expenses are eligible per the SBA for the RRF program? Below is a short list of eligible expenses:

  • Payroll costs (sick leave, costs for group health care, life, disability, vision, or dental benefits during periods of paid sick, medical, or family leave, and group health care, life, disability, vision, or dental insurance premiums).
  • Payments on any business mortgage obligation, both principal and interest (Note: Excludes any prepayment of principal on a mortgage obligation).
  • Business rent payments, including rent under a lease agreement (Note: Excludes any prepayment of rent).
  • Construction of outdoor seating.
  • Business supplies (including protective equipment and cleaning materials).

For the full list of eligible expenses and many more RRF details, please click here to download and view the entire SBA RRF program guide. To view the sample application and prepare for the process to begin, click here.

Disclaimer

This content is for informational purposes only, and should not be used as legal, tax, investment, financial, or other advice. This article does not constitute professional and/or financial advice, nor does any information constitute a comprehensive or complete statement of the matters discussed or the law. This information is of a general nature and does not address the circumstances of a specific individual or entity. The reader of this information alone assumes the sole responsibility of evaluating the merits and risks associated with the use of any information before making any decisions based on such information.

Image: Austin Chan on Unsplash 

The Cosmopolitan on the Las Vegas Strip
by David Klemt David Klemt No Comments

Las Vegas CEO Offers Vaccination Bonus

Las Vegas CEO Offers Vaccination Bonus

by David Klemt

The Cosmopolitan on the Las Vegas Strip

One CEO in the hospitality and lodging industries is offering employees a bonus for getting the Covid-19 vaccine.

William McBeath, president and CEO of The Cosmopolitan of Las Vegas, is incentivizing the resort’s staff with cash bonuses.

Conversely, workers who decline inoculation must take weekly Covid-19 tests.

Cash Incentive

Per the Review-Journal, the largest daily newspaper in Nevada, McBeath is using a tiered approach to the bonuses.

If the resort meets the vaccination goal, the property could pay $1 million to staff.

According to reporting, The Cosmo is pushing for at least 80 percent of staff to receive first doses of a Covid-19 vaccine by the first of May.

The tiered system works as follows:

  • 60 Percent Vaccination Rate: $50
  • 70 Percent Vaccination Rate: $100
  • 80 Percent Vaccination Rate: $250
  • 90 Percent Vaccination Rate: $350
  • 100 Percent Vaccination Rate: $500

The most an employee stands to make is a one-time bonus of $500. Clearly, the 80 percent vaccination rate bonus is an amount the resort finds motivational and a reasonable cost.

Weekly Tests

There are a number of reasons someone may decide against a vaccine. Operators must understand that vaccination is a personal choice.

Requiring staff receive vaccinations is a slippery slope. Setting aside legal ramifications, doing so will likely result in staff attrition, awful PR, and long-term damage to a business.

That’s to say nothing of the failure in emotional intelligence that forcing vaccinations on employees would highlight.

Instead, McBeath’s approach respects an individual worker’s autonomy. The president and CEO isn’t forcing The Cosmo’s staff to receive vaccines. Rather, he’s incentivizing workers to reach the goal set for the resort.

There are no credible reports of Cosmopolitan employees facing termination for refusing vaccination. I was also unable to find any reports of retaliation.

According to Review-Journal reporting, unvaccinated workers will undergo Covid-19 testing. Starting May 1, Cosmo employees who work a maximum of three days per week will be given a test once per week. Those who work four or more days per week will be tested twice per week.

Nevada Seeks to Increase Occupancy Limits, Reopen State

McBeath’s May 1 deadline makes even more sense when one considers current occupancy limits and reopening plans.

Currently, casinos in the Silver State are operating at 50-percent capacity. On May 1, the Nevada Gaming Control Board will be responsible for deciding gaming floor occupancy. In preparation, the NGC wants more of Nevada’s hospitality workers to receive vaccinations.

Additionally, Governor Steve Sisolak has set a June 1 date against reaching 100-percent occupancy statewide. So, The Cosmo’s goal of 80-percent staff inoculation by May 1 makes a lot of sense.

Operators in hospitality and lodging can use McBeath’s incentive program in their own businesses. If it’s crucial to them and their businesses, operators should set a staff vaccination rate goal and implement a bonus schedule that appeals to workers while remaining realistic.

Image: Zachary DeBottis from Pexels

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

5 Books to Read this Month

5 Books to Read this Month

by David Klemt

Flipping through an open book

Spring is traditionally the time when we’re meant to reinvent or otherwise better ourselves. These books can help you do just that.

Some will help you expand or enter this business, others will boost your marketing and social media, and a couple will help you refresh your drink menu.

With restrictions easing and vaccination rates in the United States growing, now’s the time to improve yourself and your business.

Prepare now for pent-up demand for in-person dining and drinking.

Food Truck Business Guide for Beginners

Looking to enter this industry with a food truck or expand your existing business with one? This book is a great place to start.

Food Truck Business Guide for Beginners is a comprehensive guide that covers:

  • common mistakes that lead to food truck failure, and exactly how to avoid them;
  • the most successful ways to secure funding;
  • how to master marketing;
  • best practices for passing health inspections;
  • tackling and mastering marketing for your business;
  • and many more topics.

The Terroir of Whiskey: A Distiller’s Journey Into the Flavor of Place

Dr. Rob Arnold is a plant biochemist and the master distiller at TX Distillery. To say he understands the science of whiskey and terroir is obvious.

What’s less obvious is the direction Dr. Arnold’s book heads into. He takes readers to distilleries in Kentucky, Ireland, Scotland and elsewhere, but he takes things further.

In The Terroir of Whiskey, Dr. Arnold shines a light on plant breeders, local farmers, and distillers bringing back “lost” grains. These same innovators are also attempting to create new grains to further develop terroir.

This book will definitely enhance your whiskey knowledge and engagement with guests.

Rad Cocktails

Yes, this book’s description states that it focuses on the home bartender.

No, that doesn’t mean bartenders, operators, and other hospitality pros can’t learn from it.

Rad Cocktails, in addition to including awesome illustrations, also embodies a growing cocktail trend: simplification. Innovative cocktails don’t have to be complicated or take ten minutes to build.

Beautiful Booze: Stylish Cocktails to Make at Home

Natalie Migliarini, also known as Beautiful Booze, has more than 95,000 followers on Instagram. Her cocktail recipes, photographs and mastery of social media help her stand out in a roiling sea of influencers.

Her first book, Beautiful Booze: Stylish Cocktails to Make at Home, also targets home bartenders…on the surface. This book, creative cocktail recipes, can help elevate anyone’s bartending skills. The beautiful photography will also help inspire anyone to take their social media shooting to the next level.

Hacking the New Normal: Hitting the Reset Button on the Hospitality Industry

Alright, this may seem self-serving. However, I wouldn’t have written the foreword for a book I didn’t believe this book would truly help people.

Millions of hospitality industry professionals’ lives were imperiled at the start of last year. We continue to innovate and adapt to overcome unprecedented challenges.

Hacking the New Normal addresses the need for an industry-wide reset and seeks to guide operators through rebuilding for the long term, and to strengthen the industry moving forward.

Image: Mikołaj on Unsplash 

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

Stand Out with Weird Holidays: April

Stand Out with Weird Holidays: April

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. They range from mainstream to food focused to weird.

Focus on the latter to raise eyebrows, carve out a niche for your restaurant or bar, and attract more guests.

Of course, you shouldn’t try to celebrate every holiday, weird or otherwise. Focus on the days that are authentic to your brand; resonate with your guests; and help you grab attention on social media.

April 14: National Reach as High as You Can Day

This is a holiday that will likely work best on social media. Just like there’s always a holiday and people like to say “there’s always a tweet,” there’s always a hashtag.

Use this day (and its accompanying hashtag) to highlight staff who want to participate, along with your venue.

Of course, if you want to involve your guests in person, go for it. Put your head together with your staff and get creative.

April 15: National Take a Wild Guess Day

You can take promotions centered around this day in several directions. The simplest way is to use the holiday to engage with followers on your social channels.

Consider borrowing from the “wrong answers only” posts on Instagram. Post a blurred, pixelated or “censored” item, like a bottle. In the caption, ask followers to “guess” what it is—wild guesses only.

This holiday also works well with blind tasting events.

April 16: Wear Pajamas to Work Day

I’d say this holiday is fairly self-explanatory. Let your front-of-house staff participate by wearing pajamas, with full team buy-in. Or, encourage your guests to wear their pajamas to your restaurant or bar.

If this holiday fell on a Saturday or Sunday, this would be a great day for a brunch promo. Of course, there’s nothing to say you can’t execute a Friday brunch.

April 16: National Bean Counter Day

In the United States, this holiday is taking place a month before the Tax Day deadline. If you’re so inclined, you could offer a deal to all the tax preparers and accountants in your area.

Although, you can also go a completely different direction. You can fill a large jar with beans—coffee would be great—and have guests guess how many there are. You can even post the jar full of beans to social, encouraging follower engagement. Closest guess wins a prize.

April 22: National Jelly Bean Day

Oh, hey… Remember that bean-counting holiday from way up there? I wonder if that bean-guessing idea would work for this holiday…

April 23: National Talk Like Shakespeare Day

If you think you or your social media manager can handle it, encourage your followers to describe your restaurant or bar as though they’re the Bard himself.

Or, as a Shakespearean translator would explain it, “Encourageth thy followeth’rs to describeth thy restaurant ‘r bar as though those gents’re the Bard himself.”

April 25: National DNA Day

Yesterday, I shared how our DNA plays a significant role in how we perceive bitter flavors. National DNA Day would be a great time to plan and execute a PTC strip and cocktail event.

April 27: National Tell a Story Day

How well do your loyal guests know you and your brand? How well do they know your staff?

National Tell a Story Day is an excellent time to leverage the story features on your social channels. Show off the venue and tell your brand’s story. If you have team members who want to participate and tell share a story, that’s a great way to engage with followers and guests.

April 28: National Superhero Day

If there was a ever a day to encourage your staff and/or guests to dress up for a fun time… National Superhero Day also leverages Shudder’s “Halfway to Halloween” event.

To take this holiday in another direction, you can also celebrate members of your community who give back to others by giving back to them.

“Weird” holidays aren’t just a dynamic way to engage with guests. Asking your team for ideas for holiday promotions is an excellent way to keep them engaged, which is a smart way to retain staff.

Image: Dan Parlante on Unsplash 

Stack of beer kegs in black and white
by David Klemt David Klemt No Comments

2020 Craft Brewing Production Infographic

2020 Craft Brewing Production Infographic

by David Klemt

Stack of beer kegs in black and white

The Brewers Association‘s latest report and infographic reveal 2020 small and independent craft brewery production numbers.

Like their restaurant, bar and brewpub cohorts, brewers are facing enduring struggles due to the Covid-19 pandemic.

However, the Brewers Association did find some good news.

First, the challenges.

Overall Market Drop

The BA’s report reveals that small and independent craft brewer production is down nine percent from 2019. Overall, draught beer sales dropped 40 percent last year.

That equates to an overall market share of 12.3 percent in 2020. Comparing 2020 to 2019, that’s a decline of 1.3 percent.

Unfortunately, 2020 craft brewer numbers also reveal significant job loss for the industry. In comparison to 2019, direct craft beer jobs are down 14 percent.

In terms of small and independent brewery closures, 2020 saw 346 brewers close their doors permanently.

Some Silver Linings

There is some good news for craft beer. Not every closure is attributable to Covid-19.

Reviewing the 2020 numbers, the BA says there are 8,764 craft breweries operating in the United States. That’s an all-time high.

The breakdown is as follows:

  • 220 Regional craft breweries
  • 1,854 Microbreweries
  • 3,219 Brewpubs
  • 3,471 Taproom breweries

Impressively, the number of new craft brewery openings more than double the number of closures at 716.

Per Bart Watson, chief economist at the BA, the total number of craft breweries and openings in 2020 proves the “resilient and entrepreneurial nature” of small and independent brewers.

BA Infographic

You’ll find more information below. The BA’s infographic neatly tells the story of the association’s latest report.

Perhaps the biggest positive takeaway is the steady growth in operational craft breweries. Since 2016, the number of breweries in this category has increased by nearly 3,100.

That’s an average of 785 new brewery openings each year. Given the number of openings in 2020, it’s possible craft brewers will gain ground on the jobs lost over the course of last year.

It’s also likely production and sales numbers will see a boost in 2021 through a culmination of easing restrictions, reopening markets, pent-up demand, vaccination rates, and guest comfort levels.

2020 Small and Independent US Craft Brewer Annual Production Report

Infographic: Brewers Association

Image: Hennie Stander on Unsplash

A Bitcoin on top of a $100 bill
by David Klemt David Klemt No Comments

Let’s Talk About Bitcoin

Let’s Talk About Bitcoin

by David Klemt

A Bitcoin on top of a $100 bill

Bitcoin and cryptocurrency in general are no strangers to media attention, but it seems like the coverage is increasing.

Of course, it helps when people who are excellent at garnering attention talk about it. Consider the explosion in news stories and online conversations about cryptocurrencies when Elon Musk tweeted about Dogecoin.

Then there’s the mystery factor. Many people don’t understand Bitcoin, Ethereum or other forms of cryptocurrency. The word itself—”crypto”—lends to the enigmatic air of this form of currency.

As a business owner, you should at least have a cursory understanding of cryptocurrency. After all, some people may try to pay you with it and you should at least consider meeting these guests where they are.

Before we proceed: I’m not a cryptocurrency or financial expert. I’m sharing information I’ve come across in my research over the years. Don’t make any financial or business decisions solely based upon what you read here—learn more for yourself and consult with experts before making investment decisions.

Crypto is Relevant to Our Industry

I’ve written about cryptocurrency—Bitcoin in particular—in the past. In one article, I wrote about a “nightclub” within a nightclub in Las Vegas devoted to cryptocurrency.

The club, MORE, had its own “coin” (MORE Coin), accepted other cryptocurrencies, and tailored its experience to crypto fanatics. It has become more of a members’ club, offering access to and preferential treatment at an array of venues, along with other perks. The club’s coin is purchased via Bittrex, a popular exchange platform

There are also hotels in Las Vegas (and other cities, of course) that accept cryptocurrencies like Bitcoin for rooms. Bitcoin ATMs scattered throughout Vegas allow people to access their wallets and convert crypto to cash.

Paying with crypto may become more commonplace than we think, sooner than we think.

Crypto Basics

Let’s address the term “cryptocurrency.” In this case, “crypto” is a reference to the encryption technology that protects a cryptocurrency network.

Bitcoin and other digital tokens, such as Ethereum and Dogecoin, are decentralized currencies. That is, there’s no main server, no government, no bank that controls or owns the network.

A digital token is incredibly difficult—if not impossible—to counterfeit or “double-spend.” This is due to sophisticated encryption technology and the blockchain.

The blockchain is a peer-to-peer distributed ledger technology that makes it incredibly difficult (again, if not impossible) to take over a crypto network. Every transaction is public knowledge; open to inspection; duplicated and distributed throughout an entire network; and  unalterable.

It’s that last point that made Bitcoin viable. Unlike attempts in the past to create digital currencies, the blockchain makes crypto trustworthy in that someone can’t just make up a new currency, wait for people to buy in, and then take it all for themselves.

Bitcoin has become synonymous with cryptocurrency. It’s the first viable digital token as we know it, the most popular, and at the moment, the most valuable.

Interestingly, it’s widely accepted that Ethereum is the second-most popular digital token but the most-utilized blockchain.

Finally, Bitcoin is finite. There are exactly 21 million Bitcoins—that’s it. Once they’re all mined, no more will be made.

Beyond the Basics

Fewer than 2.4 million Bitcoins remain to be mined. Currently, one Bitcoin is worth about $58,000.

A person uses a digital “wallet” to send and receive Bitcoin. Some people store their unique wallet on their computer; a separate and dedicated hard drive; a thumb drive; or a “cold” wallet, a device that’s not connected to the Internet to protect it from hackers.

If a person loses their wallet or password, they lose their Bitcoin(s).  There’s no way yet to know how many of the 21 million Bitcoins have been lost.

Bitcoin is a software system. Therefore, it can be copied. That’s the reason crypto beyond Bitcoin—such as the aforementioned Ethereum and Elon Musk-promoted Dogecoin—exists.

One of the biggest questions people have about bitcoin is, “Is this a scam?” Search online and you’ll get a mix of results.

There are high-profile people like Jack Dorsey and Elon Musk who are apparently heavily invested in crypto. There are critics calling the whole thing a scam and fraud. Then there are some former critics, like Jordan “The Wolf of Wall Street” Belfort, who were highly critical and suspicious of crypto but have changed their tunes.

Support from hotels, restaurant chains, financial institutions and other legitimate businesses seems to answer the scam question. However, operators must proceed with caution, as they would for any change in their business or investment.

Accepting Bitcoin Payments

Businesses that decide to accept Bitcoin and/or other digital tokens will need a POS app or platform to do so.

Starbucks is reportedly using Bakkt to accept Bitcoin.

Other options include BitPay Checkout, Bitcoin Cash Register, Anypay, and Paytomat.

Some solutions create a QR code the guest scans with their phone to complete a transaction. Others convert digital tokens to cash to accept payment.

It’s important to note that the IRS treats cryptos differently than US dollars. Before choosing to accept cryptocurrencies as payment, consult with your tax professional and accountant to ensure you don’t run afoul of any laws.

Canadian operators should note that while crypto is legal in the country. However, only the Canadian considered official legal tender in Canada. Again, this is why it’s so important to consult relevant experts before proceeding with crypto in your business.

Disclaimer

The information provided in this post does not constitute investment advice, financial advice, trading advice, or any other sort of advice. Neither the author nor KRG Hospitality recommend that any cryptocurrency should be bought, sold, or held by you. Conduct your own due diligence and consult your financial advisor before making any investment decisions.

Image: Bermix Studio on Unsplash 

Draft beer on bar
by David Klemt David Klemt No Comments

This Would Be a Good Time for a Beer

This Would Be a Good Time for a Beer

by David Klemt

Draft beer on bar

New Beer’s Eve and National Beer Day are relatively new American holidays closely related to prohibition and Repeal Day.

I’m sure you’re thinking, “Wait a second—Repeal Day takes place in December. What’s wrong with you?”

First, you’re right. Second, we don’t have time to get into all of that.

However, beer became legal again well before the Eighteenth Amendment was repealed.

The Cullen–Harrison Act

It’s 1933 and a United States Senator and a Congressman sponsor a bill changing the definition of “intoxicating beverage.”

The bill is aptly known as the Cullen-Harrison Act. It doesn’t legalize all beer but it makes it legal to sell beer with alcohol content no greater than 3.2 percent.

Such alcohol content, it’s thought, is so low as to not be intoxicating.

Congress enacts the so-called Beer Permit Act on March 21, 1933. President Franklin D. Roosevelt signs the act into law the next day, and it goes into effect April 7, 1933.

President Roosevelt, signing the Cullen-Harrison Act, famously says, “I think this would be a good time for a beer.”

National Impact

Beer drinkers—and very likely people just looking for a legal drink—rejoice, obviously.

Across the United States, people gather in droves outside breweries. According to reports, people will consume 1.5 million barrels of beer the day the Cullen-Harrison Act becomes the law of the land.

Fast forward to 2009. Justin Smith, who lives in Richmond, Virginia, at the time celebrates the first National Beer Day. Smith sets off a chain of events involving social media and Untappd. In 2017, Virginia officially recognizes National Beer Day.

Let’s Celebrate!

National Beer Day is accompanied by New Beer’s Eve.

The latter celebrates those brave and thirsty souls that lined up outside our nation’s breweries the day before the Cullen-Harrison Act went into effect.

We get to celebrate two beer holidays this week: New Beer’s Eve on Tuesday and National Beer Day on Wednesday.

New Beer’s Eve is an excellent day for operators to showcase their newest beers.

Both days are ideal for highlighting 0.0 and 0.5 beers, along with what we now refer to as “session” beers (5.0 percent and lower).

Oh, and don’t forget to use President Roosevelt’s famous quote when promoting these two holidays: “I think this would be a good time for a beer.”

Image: cottonbro from Pexels

Busy bar in black and white
by David Klemt David Klemt No Comments

The 5 Ds of Bystander Intervention

The 5 Ds of Bystander Intervention

by David Klemt

Busy bar in black and white

One non-negotiable for operating a restaurant, bar, nightclub or other hospitality venue is ensuring the safety of guests.

Harassing, threatening and violent behavior cannot be tolerated, period. Some venues employ trained and certified security tasked with keeping patrons safe.

However, not every business in this industry, restaurants for example, employ or retain security personnel. There are online and in-person security courses that owners, managers and staff can complete, and I encourage operators to look into doing so. Some courses can not only empower participants, they can result in the lowering of insurance premiums they’re considered so effective.

Additionally, it’s wise to study conflict resolution and de-escalation. Both are valuable skills in hospitality and other areas of our lives.

In the meantime, a global movement called Hollaback! has come up with the Five Ds of Bystander Intervention. These began as the Three Ds by Green Dot in the early 2000s. In 2015, they became the Four Ds. In 2017, a fifth “D” was introduced.

You’ll find the Five Ds below. Not every step works perfectly on the operations side but they’re still helpful. Doing nothing is simply not an option.

Distract

Per Hollaback!, distraction is a subtle and creative way to intervene, and the goal is “to derail the incident by interrupting it.” The witness employing distraction engages the victim of harassment directly, ignoring the harasser. Hollaback! provides the following examples of distraction:

  • Pretend to be lost. Ask for the time. Pretend you know the person being harassed. Talk to them about something random and take attention off of the harasser.
  • Get in the way. Continue what you were doing, but get between the harasser and the target.
  • Accidentally-on-purpose spill your coffee, the change in your wallet, or make a commotion.

It’s important to note that staff will need to read the situation if they witness harassment. Also, some of the above examples don’t really work in a hospitality setting, but you understand the idea.

Delegate

Delegation is simply asking for assistance or help. In many cases, if a staff member is witnessing harassment they’ll have a manager on duty on which they can rely for assistance.

Conversely, a manager can delegate to a staff member to employ the distract technique. In this situation, the staff member engages the victim of harassment and asks if they want them to call law enforcement. The manager can also direct a staff member to call law enforcement.

However, as Hollaback! notes, “a history of being mistreated by law enforcement has led to fear and mistrust of police interventions,” so the victim may not want to involve police. However, the venue must also protect themselves, so it may be necessary to involve law enforcement for documentation and other purposes.

Document

Along with protecting the victim and putting a stop to harassment, documentation is a crucial step.

All hospitality venues should be set up to complete incident reports. This protects victims (and therefore other guests and the community) and the business.

Hollaback! instructs a bystander to assess the situation first. If another bystander is already intervening, the witness must assess their own safety. Record the incident only if safe to do so.

Anyone who records the incident should ask the victim what to do with the recording. Don’t post it online—this is a traumatic experience and doing so is a violation in and of itself.

Delay

As Hollaback! explains, many incidents of harassment take place very quickly. It’s possible the incident will be over before a bystander can distract, delegate or document the harassment.

In a restaurant, bar or other hospitality setting, the harasser may exit the venue immediately, before staff can step in. That doesn’t mean everything is back to “normal.”

Hollaback! suggests engaging the victim in the following ways:

  • Ask them if they’re okay and tell them you’re sorry that happened to them.
  • Ask them if there’s any way you can support them.
  • Offer to accompany them to their destination or sit with them for awhile.
  • Share resources with them and offer to help them make a report if they want to.
  • If you’ve documented the incident, ask them if they want you to send it to them.

Direct

More than likely—and unfortunately—this is the step most familiar to bartenders, servers and other front-of-house staff.

Direct means to confront the harasser directly. Of course, this is the riskiest step.

Hollaback! suggests assessing the situation to ensure the bystander is safe physically; the victim is safe physically; the victim wants someone to intervene; and the situation may be unlikely to escalate if they confront the harasser.

Again, operators will have to come up with a plan for addressing harassment, threats and violence. Staff must be aware of policies and what’s expected of them, and they should feel comfortable sharing their thoughts on policies.

Incidents can happen at any type of venue in any location at any time. Doing nothing, however, is unacceptable.

Disclaimer

This content is for informational purposes only, and should not be used as legal or other advice. This article does not constitute professional advice, nor does any information constitute a comprehensive or complete statement of the matters discussed, the law, or liability. This information is of a general nature and does not address the circumstances of a specific individual or entity. The reader of this information alone assumes the sole responsibility of evaluating the merits and risks associated with the use of any information before making any decisions based on such information.

Image: Pixabay

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