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by David Klemt David Klemt No Comments

Stand Out with Weird Holidays: July

Stand Out with Weird Holidays: July

by David Klemt

Stay Weird neon sign with purple background

Want to stand out from from other restaurants and bars in your area? Then commit to keeping it weird.

Several “holidays” are set against every date on the calendar, and July is no exception. These holidays range from mainstream to food-centric to weird.

Focus on the latter to raise eyebrows, carve out a niche for your restaurant or bar, and attract more guests. Why do what everyone else is already doing?

Of course, you shouldn’t try to celebrate every holiday, weird or otherwise. And this month’s list in no way includes every odd holiday.

Focus on the days that are authentic to your brand; resonate with your guests; and help you grab attention on social media.

For last month’s list, click here.

July 1: International Joke Day

Kicking things off this month is a fun one: International Joke Day.

July 7: National Dive Bar Day

This category of bar is one of our favorites. Whether you operate a dive bar, neighborhood bar or corner bar, this is your day.

July 8: Video Games Day

This is not to be confused with National Video Game Day, which takes place September 12. This bar holiday is perfect for all the barcades and eatertainment venues out there. Or, for cool restaurants and bars that have a video game system or arcade game or two inside.

July 11: National Cheer Up the Lonely Day

Nearly the entirety of 2020 and the first half of 2021 have been challenging, to say the absolute least. It’s safe to say that we’re all quite a bit lonely. On this holiday, provide a fun and safe environment for people to get back out there, socialize, and meet new friends.

July 12: National Simplicity Day

There’s nothing wrong with complex cocktail builds. However, today is the perfect holiday to highlight the simpler two- and three-ingredient cocktails on your menu. Simple, speedy, and delicious.

July 13: National Delaware Day

Of course, this isn’t a weird holiday to people who live in Delaware. For those outside the Diamond State, this is the time to showcase Delaware brands like Dog Fish Head.

July 15: National Give Something Away Day

We’re not huge fans of outright giveaways unless said giveaway items come from a partner or sponsor. However, operators can certainly come up with a creative food or beverage giveaway that requires a purchase.

July 17: National Tattoo Day

Operators can prepare for this holiday by partnering with a local tattoo shop and creating a traffic-driving promo with them.

July 20: National Pennsylvania Day

Again, this isn’t weird to Pennsylvanians. Operators outside the Keystone State should feature brands like Philadelphia Distilling and Victory Brewing Co.

July 22: National Refreshment Day

If it’s cold and refreshing, shout it from your rooftop. It’s July, it’s hot out, and people need to know you’ve got ice cold beer, cocktails, and soft drinks.

Image: Dan Parlante on Unsplash

by David Klemt David Klemt No Comments

Third-party Vaccine Passports on the Way

Third-party Vaccine Passports on the Way

by David Klemt

Hand holding United States of America passport

Operators will likely have to further wade into politics if so-called “vaccine passports” become standard.

If recent reporting is accurate, several platforms will bring vaccine passports to market.

The hospitality, lodging and travel industries have been thrust into politics since for several years now. Unfortunately, the pandemic has only made the situation more precarious.

Dangerous Waters

For many operators, navigating today’s politically-charged atmosphere is an unwelcome development.

It’s bad enough that hospitality, lodging and travel have been thrown into utter chaos for well over a year. America and Canada have lost tens of thousands of restaurants and bars. Operators able to survive have lost millions of workers.

Too many people have lost jobs, savings, homes, and any sense of stability in their lives. Mental health, as a result, is on the decline for many people.

Unfortunately, all of those awful things are being exacerbated by politics. In America in particular (if reports are accurate), politics have severely divided the country.

Covid-19 safety protocols were politicized immediately. Restaurant, bar, hotel and travel workers found themselves playing pandemic police, putting them in dangerous situations.

If vaccine passports become standard, operators will find themselves deeper in the political quagmire. Workers will likely face a greater risk for confrontations with hostile guests.

What’s a Vaccine Passport?

In short, a vaccine passport is a way for someone to prove they’ve received a Covid-19 vaccine.

Per recent reports, the Biden administration has said they have no plan to implement federal vaccine passports.

However, several states have already banned this form of proof of vaccination. These include: Alabama, Arizona, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Montana, North Dakota, South Carolina, South Dakota, Texas, Utah (but private companies can require workers to get vaccinated), and Wyoming.

So far, two states—Hawaii and New York—have implemented vaccine passports. As far as the other states, vaccine passports are not a requirement or haven’t been banned yet.

New York’s vaccine passport, Excelsior Pass, was developed by IBM. A vaccinated New York resident downloads the app, a business owner downloads the scanner app, and vaccination status can be confirmed. Similar apps are believed to be in the works.

Again, however, many states have banned these apps.

What Does this Mean for Businesses?

If vaccine passports are banned fully where an operator does business, the decision has been made for them.

However, some bans relate only to government entities—businesses can require proof of vaccination.

And if a state doesn’t prohibit vaccine passports at all? The situation can be even more challenging for operators.

Operators eager to protect their workers and guests from infection may welcome vaccine passports. Some operators may feel these passports are an invasion of privacy and reject them. Still others may view them as a potential source for harassment and discrimination.

Should an operator require vaccine passports, they should expect backlash that could directly impact business. Operators who prohibit the use the vaccine passports may be viewed as “irresponsible” and also face backlash

Once again, the pandemic has put operators in several industries in no-win situations. Operators should consider their vaccine passport plan and the messaging around it now.

Image: Levi Ventura on Unsplash

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Update Your Business Info Now!

Update Your Business Info Now!

by David Klemt

"Yes, we're open" sign in restaurant or bar window

Restrictions are relaxing and people are returning to at least a form of their pre-pandemic lives. Operators need to review and update their information.

People face a flood of confusing or vague information every day—restaurants and bars don’t need to add to it.

In other words, operators need to make sure guests are getting accurate information when they search for their businesses.

This is particularly relevant right now with summer upon us and Father’s Day in two days.

Are You Open?

Cities, states and provinces are opening things up throughout North America.

In Canada, British Columbia, Ontario, and other provinces are in the midst of reopening plans and. Some provinces are also reopening their borders to their Canadian neighboris. Some restrictions remain and provinces aren’t fully open, but they’re on their way.

And in America, more than half of states are considered open fully: Alabama, Alaska, Arizona, Arkansas, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Wisconsin.

Restrictions that remain in place in some provinces and states relate to dining. For example, outdoor dining returned to Ontario, Canada, a few days ahead of schedule. Unsurprisingly, people flocked to restaurants and bars with outdoor dining areas.

Of course, that’s a long-overdue and welcome development. However, such relaxing of restrictions exposes an issue: People aren’t sure if businesses are open, what hours they’re open, and what menu items are available.

Update Your Information

It should go without saying but I’ll say it anyway: The past 15 months have been a horror show for operators.

So, it’s understandable that some operational discipline has slipped. Now’s the time to fix that and focus on the details.

Guests want to know what restaurants and bars are open. They want to know when they’re open. And they don’t want any surprises about menu item availability.

Of course, operators can manually review and update or edit their online listings. An operator can also task a manager or worker with that responsibility.

There are also platforms out there that make updating pertinent business information a much less overwhelming job.

Marqii, a paid service with three pricing tiers, manages several important details quickly and easily. Operators can use Marqii to update their menus across more than 75 sites; manage their location data, including hours of operation; and review and respond to reviews across several platforms, depending on the tier chosen.

Packages are priced per location and a business is charged monthly. There are similar solutions out there but Marqii is a great place to start.

We live and operate in the Convenience Era. Make it easy for your guests to visit and spend their money with you.

Image: Tim Mossholder on Unsplash

by David Klemt David Klemt No Comments

Father’s Day Food & Beer Pairings

Father’s Day Food & Beer Pairings

by David Klemt

Burger with onion rings and beer

Father’s Day is right around the corner and while it isn’t usually quite as busy as Mother’s Day, this year could be different.

After all, states and provinces are reopening, and the weather is getting warmer. In fact, Governor Andrew Cuomo announced yesterday that restaurants and bars are no longer subject to social distancing restrictions.

And hey, who isn’t looking for an excuse to get out and return to restaurants and bars?

Now, I’m going to assume that most operators who plan to celebrate Father’s Day this weekend have their promotions in place. However, to help give those promos a boost, I want to share beer pairings for classic Father’s Day menu items.

Of course, these pairings work well on any day of the week, and they’re in no way limited to dads. Anyone who enjoys beer will appreciate operators putting an emphasis on food and beer pairings.

Burgers

One of the most popular foods, particularly for those seeking out comfort, burgers and an array of beers go together. For a classic hamburger, suggest an IPA, APA or Lager. Known for your mushroom and Swiss cheese burger? Brown ales, amber ales and porters work well. Pale ales go well with bacon burgers, and wheat ales and Witbier pair with veggie burgers.

Chicken

Fried chicken is certainly right up there with burgers in terms of comfort foods. And it’s certainly great for Father’s Day. Suggest pairing fried chicken with a Kölsch, Märzen, Helles, and Hefeweizen. For barbecue chicken, recommend a light lager, Pilsner, Saison, Hefeweizen and Witbier. Honey glazed chicken (baked or as wings) work very well with a Kölsch.

Pork

If you have ribs on the menu, there are a few ways to go with beer pairings. Porters, stouts and German lagers are medium- to full-bodied and can stand up to bold, rich flavors and compliment smoke. On the other hand, pale ales and IPAs (lighter versions tend to work better) are lighter but can compliment barbecue flavors as well. Porters and American pale ales sip well with pulled pork sandwiches. A Märzen, Hefeweizen or Porter pairs nicely with pork chops.

Steak

Just like there are several cuts of beef for steaks, there are several beer types that pair well with steak. Brown ales, stouts, porters, IPAs, lagers and IPAs work well for different reasons. Cuts that are more flavorful (ribeye, top sirloin, porterhouse, T-bone) pair well with darker beers (generally speaking). But cuts like filet mignon, known to be lighter in flavor, work well with lighter beers (some lagers and IPAs).

Seafood

Much like steak, seafood presents plenty of variety for beer drinkers. You’ll find that Pilsners compliment many different types of seafood. Generally speaking, lobster dishes pair well with a Pilsner or an IPA (that isn’t too assertive). Pilsners work great with an array of fish, so suggest one with your fish and chips or tilapia. When it comes to many crab dishes, lagers and—yep—Pilsners are excellent recommendations. Wheat beers pair well with mussels, and sours and Goses drink well with oysters.

Grilled Vegetables

When it comes to grilled and charred vegetables, dark beers with roast coffee, malty and chocolate flavors pair very well. Imperial stouts can certainly hold their own with grilled, roasted and charred veggies. However, black lagers and porters are lighter than imperial stouts with similar flavor characteristics, meaning they won’t overpower the vegetables.

Of course, the best way to make winning pairing suggestions is to try them yourself. Even better, include kitchen staff, servers and bartenders and get their feedback. There’s no substitute for being able to make pairing recommendations based on personal experience.

Image: Edward Franklin on Unsplash

by David Klemt David Klemt No Comments

Guest Journey: Acquire, Engage, Retain

Guest Journey: Acquire, Engage, Retain

by David Klemt

Black "Hustle" coffee cup on desk

What if you could change your operational mindset for the better in the time it takes to enjoy a cup of coffee?

SevenRooms is confident they can help you do exactly that.

The SevenRooms Coffee Break series tackles one important operational element per 20-minute webinar.

Time for a Coffee Break?

It’s no secret that we’re fans of SevenRooms here at KRG Hospitality. In addition to supporting the actual platform, we’re always eager to share their data-driven reports and insights.

CEO Joel Montaniel is the guest on episode 24 of our Bar Hacks podcast. (You can—and should—listen to the episode on Spotify, Apple Podcasts, or wherever you listen to podcasts.)

Given how much SevenRooms values collecting and sharing data that can improve operations industry-wide, it’s not a surprise that they also offer informative webinars.

So far, there are three webinars in the Coffee Break series. And, of course, each shares a way that operators can improve their business.

That’s certainly welcome as we emerge from stay-at-home orders, ease restrictions, and welcome more guests.

The current entries focus on what SevenRooms is dubbing the Restaurant Renaissance. As Doug Radkey, president of KRG Hospitality says, we can take two paths leading to the post-pandemic world.

One, we can recognize that the industry needs an overhaul, making improvements for operators, workers and guests.

Two, we can learn nothing, do nothing, and watch the industry collapse.

Restaurant Renaissance

Call it what you prefer: the Restaurant Renaissance. The New Roaring Twenties. Re-emergence. The New Normal. The Post-pandemic World.

Sure, it’s cool to have a catchy label to slap onto unique eras. It’s better to have a clear plan and path for moving forward.

To that end, SevenRooms identifies four key factors driving what they’re calling the Restaurant Renaissance:

  • Vaccines
  • Warmer weather
  • Pent-up consumer demand
  • Restrictions lifting

Alexa Detzi, director of Enterprise Success at SevenRooms, addresses these elements in the first Coffee Break webinar, “Acquire.”

We’ve said many times that operators need to prepare for an explosion in consumer demand and guest traffic. In addition, we’ve made it clear that we’ll most likely experience a severe drop-off in traffic after the initial demand wanes.

Of course, there are several ways things might play out in the New Normal. However, huge traffic in many markets followed by a drop makes the most sense.

Get Ready

The first three SevenRooms Coffee Break webinars focus on the guest journey:

I highly recommend signing up and watching each webinar, sooner rather than later. Guests are already being subjected to a cacophony of marketing overtures—you need to cut through the noise.

We Want to Help You

Like SevenRooms, KRG Hospitality is dedicated to helping operators.

If you’re seeking to open a new business, whether your first venue or an expansion, should also download our 2021 Restaurant Start-up Cost Guide & Checklist.

And for operators looking more direct and guided assistance for improving your business, we also offer KRG Mindset.

Next time you have 15 or 20 minutes to yourself, check out our Solutions and Resources pages, reach out, and let’s set up your Roadmap to Success.

Image: Garrhet Sampson on Unsplash

by David Klemt David Klemt No Comments

Stand Out with Weird Holidays: June

Stand Out with Weird Holidays: June

by David Klemt

Stay Weird neon sign with purple background

Want to stand out from from other restaurants and bars in your area? Then commit to keeping it weird.

Several “holidays” are set against every date on the calendar, and June is no exception. These holidays range from mainstream to food-centric to weird.

Focus on the latter to raise eyebrows, carve out a niche for your restaurant or bar, and attract more guests. Why do what everyone else is already doing?

Of course, you shouldn’t try to celebrate every holiday, weird or otherwise. And this month’s list in no way includes every odd holiday.

Focus on the days that are authentic to your brand; resonate with your guests; and help you grab attention on social media.

For last month’s list, click here.

June 3: National Egg Day

How are your sour cocktails? Celebrate the egg on this day by featuring your egg white-powered drinks.

June 7: National VCR Day

Leverage nostalgia by showcasing an outdated way to enjoy movies and TV shows. If you really want to immerse yourself and your guests in this holiday, find a VCR and some movies on VHS, come up with some themed cocktails, and lure in nostalgia-thirsty guests. (Make sure you have the proper licenses in place to play music, movies, TV shows, etc.)

June 8: National Name Your Poison Day

Talk about a perfect holiday for a bar! This is an excellent day to design a call promotion around or to highlight your bar team’s ability to create delicious cocktails on the fly based on guests’ spirits preferences.

June 13: International Axe Throwing Day

Are you one of the operators who has introduced axe throwing to your restaurant, bar or eatertainment venue? Then do we have the holiday for you and your guests…

June 16: Bloomsday

This holiday honors revered Irish writer James Joyce. The story goes that Joyce’s favorite dram was Jameson, so get those bottles and specials ready.

June 18: National Splurge Day

Have some high-dollar spirits, beers, wines and dishes? Promote them loudly on this day and encourage your guests to truly treat themselves.

June 24: National Bomb Pop Day

There’s more than one way to celebrate this fun, refreshing and nostalgic holiday. For instance, there are various versions of the Bomb Pop cocktail. Another example is offering housemade boozy Bomb Pops. And then you can always simply garnish drinks with Bomb Pops.

June 25: National Take Your Dog to Work Day

If you have a dog-friendly restaurant, bar or lounge, encourage people who have brought their dogs to work to pop in for a well-deserved bite and drink.

June 30: Social Media Day

Feel like your social media savvy could use some work? Want your guests to plaster your business all over social? Use this holiday to improve your social media skills, add followers, and increase engagement with the help of the people who support your business.

Image: Dan Parlante on Unsplash

by David Klemt David Klemt No Comments

5 Books to Read this Month: June

5 Books to Read this Month: June

by David Klemt

Flipping through an open book

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

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

by David Klemt David Klemt No Comments

Tell the Government to Refill the RRF

Tell the Government to Refill the RRF

by David Klemt

Piggy bank wearing a face mask

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

by David Klemt David Klemt No Comments

Can You Fire Staff for Refusing Vaccine?

Can You Fire Staff for Refusing Vaccine?

by David Klemt

Covid-19 vaccine vials

Can an employer terminate a staff member’s employment for refusing the Covid-19 vaccine? Current court cases seek an answer to that question.

Conversely, there are bills up for consideration in some states that aim to ban vaccine mandates.

Therefore, the current answer to the question of whether employer vaccine mandates are legal isn’t clear, yet.

It’s also important to note that this question is up for legal examination in Canada and America.

Are Employers Really Mandating Vaccines?

Of course. Well, some are. And it’s bound to continue until the question has been tested in court.

Looking at Canada, Ontario’s Ministry of Labour says employers can, in fact, make vaccines mandatory. They can also (for now, at least) demand proof of vaccination from their employees. Failing to answer the question or lying about can result in an employee losing their job.

However, the ministry acknowledges that legal and ethical issues come hand in hand with blanket vaccination mandates.

In America, the issue is no less thorny, to put it mildly.

Per a survey by Arizona State University and the Rockefeller Foundation, almost 90 percent of employers in the USA (and UK) have plans to “encourage or require vaccination for employees.”

Encouraging, of course, stands in stark contrast to requiring in a legal, ethical and moral sense.

That same survey suggests that most US employers—two-thirds—plan to use vaccination incentives rather than mandates. However, 44 percent say they’ll implement mandates if incentives don’t work. Just one-third of survey respondents say they don’t intend to require vaccinations as a term of employment.

Legal Challenges

Vaccine requirements and credentials (“vaccine passports”) have been banned in Arizona, Florida, Idaho, Montana, Texas and South Dakota.

Bills have been introduced in at least half of American states that seek to “limit mandatory COVID-19 vaccines,” per the National Conference of State Legislatures.

Lawsuits have been filed by workers in various industries in several states, including New Mexico and California.

It’s likely just a matter of time until the Supreme Court of the United States is at least asked to settle the matter of vaccine mandates.

Currently, attorneys and agencies say that employers need to inform employees of the consequences for refusing Covid-19 vaccination, including loss of employment; put a vaccination policy in place and communicate it with all employees; and include religious and medical exemptions.

That said, this matter is a long way from settled.

Could vs. Should

One thing is clear: It’s not clear yet whether employers can terminate employees for refusing vaccination. We can expect a flurry of lawsuits either way.

However, it’s important that operators realize this isn’t solely a legal question. This is in no small part a leadership question, and it’s a tough one.

As the saying goes, just because you can, doesn’t mean you should.

Operators must consider the ramifications of vaccine mandates. Moving forward, some guests may only support businesses that require vaccination for staff. Conversely, some guests may find such a requirement discriminatory and offensive, and they may boycott businesses with vaccine mandates.

It’s a difficult position for operators and staff. Our industry puts employees and the public in direct, close contact with each other. Team members are likewise in very close quarters. Close interactions for prolonged periods can spread any number of viruses, not just Covid-19.

The instinct to protect staff, their family and friends, and the public is common among operators. The past twelve-plus months have strengthened that resolve.

Incentivizing Instead

Requiring vaccination may exacerbate the current labor shortage.

Yes, there are some employees and potential new hires who will feel more comfortable knowing their coworkers have been vaccinated. However, there are also people who will refuse to work for an employer who requires vaccination. A mandate could damage recruiting severely as word gets around.

It’s reasonable to suggest that operators are best off implementing a vaccination incentive program rather than a mandate. Most people would likely agree that encouragement rather than requirement, at least regarding this topic, shows greater emotional intelligence, a cornerstone of leadership.

The CEO of the Cosmopolitan of Las Vegas reportedly hit their minimum goal of an 80-percent vaccination rate among staff last week. The resort’s incentive program offered bonus payments (among other incentives) for vaccinated employees set up in tiers:

  • 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

That program helped the company hit their goal in just a few weeks. Operators can certainly use the Cosmo as a model for encouraging vaccinations instead of requiring them. Ultimately, the choice is up to the individual operator. It isn’t an easy one.

Disclaimer

This content is for informational purposes only, and should not be used as legal or other advice. This article does not constitute legal 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.

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Which States are Reopening this Summer?

Which States are Reopening this Summer?

by David Klemt

Grand re-opening sign

Around one-third of America’s population is vaccinated fully and some states are easing restrictions.

Per the CDC, not exactly America’s favorite agency, more than 40 percent of Americans have received one Covid-19 vaccine shot. Just over 30 percent have completed the vaccine process.

So, which states are planning to reopen fully for Summer 2021? We have a list of some of the states that have made their plans to reopen 100 percent known so far.

California

The Golden State plans to reopen fully on June 15. According to doctors at the University of California San Francisco, the state is nearing herd immunity. However, Governor Gavin Newsom’s target date relies on two criteria:

  • Vaccine supply must be sufficient enough “for Californians 16 years and older who wish to” receive inoculation.
  • Hospitalization rates must remain low and stable.

Illinois

Per Mayor Lori Lightfoot, the plan is for the city of Chicago to be open 100 percent by July 4. Of course, that means reopening fully right in time for one of the biggest celebratory holidays of the year. However, Governor J.B. Pritzker says Illinois could reopen in as early as the start or middle of June.

Nevada

Governor Steve Sisolak plans for Nevada to reopen fully on June 1. That said, casinos in the Silver State have a slightly different timeline. With the exception of nightclubs, dayclubs and live performances, casinos will open 100 percent June 4 if all requirements are met.

New York

According to Mayor Bill de Blasio, the plan is to reopen New York City on July 1. Governor Andrew Cuomo hopes to reopen New York State fully before that date.

Texas

Governor Greg Abbott opened the state 100 percent back in March. However, judges in the state’s 22 counties still have the authority to impose Covid-19 mitigation strategies. Hospitalization rates in a particular county rising above 15-percent hospital bed capacity for seven days would be a triggering event.

As the vaccine rollout continues, it’s likely we’ll see more states announce Summer 2021 reopening plans. Still, operators should proceed with caution and remain in compliance with state, county and local Covid-19 rules. This is, after all, a fluid situation.

There’s light at the end of the tunnel but now’s not the time to be complacent.

Image: Tim Mossholder on Unsplash

by David Klemt David Klemt No Comments

5 Books to Read this Month: May

5 Books to Read this Month: May

by David Klemt

Flipping through an open book

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

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

Let’s dive in!

Trejo’s Tacos: Recipes and Stories from L.A.

Who doesn’t love Danny Trejo? His story is inspiring, his IMDB page is full of memorable characters, and he’s got fast-casual restaurants and a coffee shop. Trejo’s cookbook features 75 recipes and tons of insight into the man himself.

Which Fork Do I Use with My Bourbon?

Learn how to organize and execute an awesome tasting from Peggy Noe Stevens, the first female master bourbon taster in the world and founder of the Bourbon Women Association, and Susan Reigler, a prolific bourbon correspondent and author. Which Fork Do I Use with My Bourbon? includes tips, recipes and more for pulling off a great bourbon-centric event.

Zero: A New Approach to Non-Alcoholic Drinks

From the unique minds behind the ultra-creative Aviary cocktail bar comes Zero. If you’re looking to elevate your non-alcohol menu and approach to creating zero-proof drinks, this is the book for you. In addition to about 100 recipes, this book shares insights into Chef Grant Achatz’s culinary approach to cocktails, whether low-, zero- or full-proof.

Finding Fire: Cooking at its Most Elemental

Like Bar Hacks podcast guest Chef Brian Duffy said on episode 33, we’re fully in a comfort food zone. We’re also back to the fundamentals and simple techniques. When it comes to cooking, nothing is more fundamental than using fire. Chef Lennox Hastie dives deep into cooking with fire and provides 80 recipes in Finding Fire.

How to Listen with Intention

There’s a misconception among many business owners and managers that leadership is just delegating and issuing orders. Too many people forget that listening is a key element of leadership. Patrick King’s book How to Listen with Intention aims to change our mindset so we view listening as a superpower.

Image: Mikołaj on Unsplash 

by David Klemt David Klemt No Comments

Stand Out with Weird Holidays: May

Stand Out with Weird Holidays: May

by David Klemt

Stay Weird neon sign with purple background

Want to stand out from from other restaurants and bars in your area? Then commit to keeping it weird.

Several “holidays” are set against every date on the calendar, and May is no exception. These holidays range from mainstream to food-centric to weird.

Focus on the latter to raise eyebrows, carve out a niche for your restaurant or bar, and attract more guests. Why do what everyone else is already doing?

Of course, you shouldn’t try to celebrate every holiday, weird or otherwise. And this month’s list in no way includes every odd holiday.

Focus on the days that are authentic to your brand; resonate with your guests; and help you grab attention on social media.

For last month’s list, click here.

May 5: National Totally Chipotle Day

It’s not just Cinco de Mayo today, it’s National Totally Chipotle Day! Two guesses as to what pepper this holiday celebrates…

May 6: World Password Day

This holiday exists to encourage people to consider their privacy and make sure their passwords are secure. Of course, operators can make this holiday more fun than mundane. One simple way is to come up with and share a password guests can use for food or drink specials. Speakeasy operators, today’s your day!

May 9: National Sleepover Day

What pairs well with sleepovers? Food, drinks, pajamas and movies. And what pairs well with warming weather and the comfort levels of today’s guests? Patios and other outdoor areas. Show a movie outside, encourage pajamas, create fun and comforting F&B offerings… This is a fun one.

May 20: National Pick Strawberries Day

The perfect day to feature cocktails that call for strawberry garnishes. And if there was ever a holiday practically built for featuring Snoop Dogg‘s new strawberry-flavored Indoggo Gin, this is it.

May 21: National Bike to Work Day

As the story goes, the radler was invented in the 1920s by a Bavarian tavern owner. A group of cyclists stopped by looking to quench their thirsts with beer. The tavern owner didn’t have enough, so he added sparkling lemonade to his kegs. Eurkea, the radler was born.

This is the perfect day to pay homage to the radler and reward people for biking to work.

May 22: National Craft Distillery Day

One of the best days to program promotions around local and hyper-local spirits.

May 25: National Brown-Bag It Day

Looking for a simple and fun way to celebrate this weird holiday? Offer a special featuring tall boys served in brown paper bags along with hangover-curing comfort foods.

May 30: National Creativity Day

I mean…what a blank canvas! This is the day to execute your most creative promotions. Ask your team members for their most creative ideas to boost staff engagement.

Image: Dan Parlante on Unsplash

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

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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 

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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 

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

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 

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 

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

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

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

by David Klemt David Klemt No Comments

Meet Customers Where They Are, Part 2

Meet Customers Where They Are, Part 2

by David Klemt

Preparing a cocktail at home for living room tasting event

We seem to approaching a semblance of normalcy but some consumer behaviors—drinking at home among them—are likely here to stay.

Per Distill Ventures, the living room is the new tasting room.

Consumers are drinking at home, drinking during the day, and prioritizing convenience.

So, will you get creative and meet your customers where they are—their living rooms?

The New Tasting Room

Fresh off their third whisky summit, Distill Ventures believes consumers will seek out more at-home experiences.

This is partly due to some regions around the world locking down. Additionally, consumers know they can partake in experiential guests at home.

Consider what some brands are putting together to engage with people at their homes:

  • Cynar: CynArts & Crafts, Paint by Numbers Virtual Party, complete with brushes and paints sent to participants.
  • Campari: Decoding the Science of Bitter, including a PTC strip sent to participants to gauge their bitter response.
  • Espolòn Tequila: Virtual Espolotería, an online bingo-style game.

Distill Ventures and the panelists of their third summit see people’s living rooms as a viable place to engage consumers.

While the latest summit focuses specifically on whisky distillers, brand marketers and retailers, the findings are transferrable.

Don’t Be Left Out

If consumers are going to engage more with brands at home, operators must meet them in their living rooms. That means going beyond offering standard delivery.

Obviously, operators need to attract guests to their brick-and-mortar locations. And pent-up demand for in-person experiences is set to explode.

However, that initial explosion in traffic will eventually taper off, and more quickly than we think. That gradual slow-down will make digital engagement crucial.

This industry requires adaptability and agility to survive and thrive. Operators and their teams will need to focus on social, YouTube and webinar-style engagement to engage with current and new customers.

Bar team members who want to participate can share recipes and techniques via live videos. Of course, kitchen team members can do the same.

Scheduling digital events—guided tastings and cooking classes—can also draw customers. Operators should just make sure they don’t give too much away to their audience so they’ll feel compelled to visit in person as often as they can.

Succeeding with these events opens the door to potentially lucrative collaborations. Operators should reach out to brand partners for branded, themed events.

With enough lead time, packages can be put together and delivered with partner help. Of course, in “help” in this context means “dollars and/or product.”

You’ll never know what support your partners are willing to provide if you don’t ask.

Image: Boozy Events on Unsplash 

by David Klemt David Klemt No Comments

PPP 2nd Draw vs ERTC vs RRF: What to Know

PPP 2nd Draw vs ERTC vs RRF: What to Know

by David Klemt

The face on a bank note

Some regions, states and people are behaving like the pandemic is over but our industry is still in crisis.

There is good news in the form of a few resources business owners can utilize.

Let’s take a look at the the Employee Retention Tax Credit, second Paycheck Protection Program draw, and Restaurant Revitalization Fund.

Paycheck Protection Program

Today is your last day to apply for the second PPP draw. That’s why we’re starting here and why, if you haven’t yet, you need to apply now.

According to the Small Business Administration, a borrower is (generally speaking) eligible if they:

  • previously received a first-draw PPP loan and will use (or has used) the full amount only for authorized uses;
  • have no more than 300 employees; and
  • are able to demonstrate at least a 25-percent reduction in gross receipts between comparable quarters in 2019 and 2020.

Applicants seeking a second draw need to know the following:

  • No extension date has been announced for the second PPP draw.
  • Each single borrower is limited to a $2 million loan.
  • Using the first draw as a model, the average loan size may be around $128,000.
  • The terms of second-draw PPP loans are the same regardless of who is borrowing and who is lending.

Use SBA Lender Match to find a lender today.

Employee Retention Tax Credit

When it comes to relief for this industry, much of the focus is on the PPP and RRF.

However, the ERTC can be a valuable resource for eligible restaurants.

First, what’s the ERTC? It’s a payroll tax credit—fully refundable—meant to persuade employers to keep and compensate their workers when they’re not fully operational.

Second, who’s eligible? To claim ERTC for a given calendar quarter, restaurant operators must show:

  • full or partial suspension as a result of orders from a governmental authority limiting commerce, travel or group meetings due to Covid-19; or
  • they experienced a significant decline in gross receipts during the calendar quarter when compared to 2019.

The above criteria apply to the quarter an operator is applying for the ERTC.

To better understand the ERTC, we’re including an example from the National Restaurant Association:

Henry’s Hotcakes (HH) received a $120,000 PPP loan in April 2020. These funds were fully spent on its 10 employees by September 20, 2020. Previously, HH would not have qualified for ERTC. However, HH can now reach back to its wages for the fourth quarter of 2020 (OCTDEC) and obtain up to $5,000 per eligible employee (50% credit of up to $10,000 in eligible wages) in ERTC.

Click here to read more about the ERTC on the IRS website.

Restaurant Revitalization Fund

The Restaurant Revitalization Fund is the most recent relief resource to come to fruition, so it stands to reason that it’s top of mind for most operators.

According to recent reporting, the SBA—the agency responsible for overseeing the RRF—is aiming for early April to launch the fund.

Here’s what restaurant and bar operators need to know now:

  • A grant is equal to the amount of a restaurant’s pandemic-related revenue losses.
  • Grants are tax-free.
  • To calculate a grant amount, subtract 2020 gross receipts from 2019 gross receipts. Operations 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.

The following are eligible RRF expenses:

  • broad operational expenses;
  • payroll, rent, and mortgage interest;
  • “normal” food and beverage inventory;
  • various supply purchases (PPE, for example);
  • property damage costs related to public disturbances in 2020;
  • debt obligations to suppliers before covered period;
  • interest payments on any other debt obligations incurred prior to Feb 15, 2020; and
  • refinancing EIDL.

Bear in mind that when it comes to the PPP, ERTC and RRF, changes in requirements and other processes are subject to change. Operators must stay up to date on these and other programs.

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: Freddie Collins on Unsplash

by David Klemt David Klemt No Comments

Restaurant or Bar Dream? Make Your Move

Restaurant or Bar Dream? Make Your Move

by David Klemt

Chess pieces on a chessboard

If your dream is to open a restaurant, bar or nightclub, you’re not doing yourself any favors by waiting to make it a reality.

The same goes for starting up any other type of hospitality business.

We’re in uncharted territory and things seem unstable. But waiting to move forward with your concept is setting you back.

Industry Challenges

We can all agree that the destruction wrought upon the hospitality industry in 2020 continues to be felt today.

Tens of thousands of business closures. Millions of jobs and hundreds of billions of dollars in revenue lost.

Some experts say the veteran operators and workers won’t be back. The financial damage and psychological trauma will drive them out of the industry. Others disagree, myself included, saying those operators won’t stay down for long. This industry works its way into people’s blood.

The pandemic is responsible for the permanent or long-term closure of nearly 20 percent of restaurants in America. Most of the restaurants lost were well-established operations. The industry is down 2.5 million jobs that it will take years to recover.

Since March of last year, Canada has seen the closure of 10,000 restaurants. The country is facing the loss of 800,000 industry jobs.

Waiting to open a restaurant or bar, therefore, seems to make sense. Only no, it doesn’t.

Don’t Wait

Time is rarely on anyone’s side. And I’m not the first to say that perfection is an illusion. Our industry would be a fraction of what it is if people chose to wait for the “perfect time” to open.

That doesn’t mean it’s great to throw caution—and hundreds of thousands of dollars—to the wind.

Rather, those with a vision for a business in this industry owe it to themselves to move forward.

Let me put it this way: If you have an idea but you’re waiting for “the right time,” you’re already behind.

Forward Progress

The key is being strategic, making calculated decisions.

There are operators who successfully opened new concepts in the midst of the pandemic. We’re going to see new entrants in this industry this year as well. Will you be among them?

Maybe you’re not ready to break ground or sign a lease. Perhaps you’re not ready to send in a crew to renovate a space.

However, there are crucial moves you can make so that when you’re ready ready, you can move quickly. Think agility.

Will you be applying for a grant to fund part of your business? Complete the paperwork and submit it now.

Do you need a consultant? Do your research now and schedule those conversations.

You need demographic, feasibility and other studies done. Will you do them? Will you retain the services of an industry researcher?

If you’re not yet ready, take meaningful steps today because your future competitors are making their moves. It takes longer than you think for each crucial step to be completed, and there are dozens.

Your concept won’t become a reality if it only lives in your head. Don’t watch your opportunity to thrive in this industry pass you by.

Image: Kei Scampa from Pexels

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