Brewpub | KRG Hospitality

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

December 29, 2021by David Klemt David Klemt No Comments

Soft Versus Stealth Closures

Soft Versus Stealth Closures

by David Klemt

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

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

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

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

Soft Closure

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

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

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

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

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

Stealth Closure

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

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

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

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

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

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

Image: Nick Bolton on Unsplash

Classic vintage Dodge pickup truck with winter wreath on grille

December 6, 2021by David Klemt David Klemt No Comments

Hard Numbers for the Holidays

Hard Numbers for the Holidays

by David Klemt

From comfort foods and specific seasonal flavors to LTOs and traditional tastes, data reveal what consumers want this holiday season.

As we reported last week, there’s reason to be optimistic about this year’s holiday season.

According to Datassential, consumers are eager to visit sit-down restaurants this month. One of their key findings was that the average group size will likely be smaller than normal.

Specifically, most groups will probably consist of seven to 12 guests. Crucially, Datassential sees potential from people eager to gather with family and friends for the holidays. Even better, of all options, sit-down restaurants are the top choice for gatherings outside of homes.

But drilling down deeper, what do guests want from restaurants during the holidays?

The Numbers

So, when it comes to the holidays, Datassential wants operators to remember that December includes more than Christmas and New Year’s Eve.

To that end, the first numbers I’m presenting are dates:

Hanukkah: November 28 to December 6 (ends this evening!)
Soyal: December 21
Christmas: December 25
Boxing Day: December 26
Kwanzaa: December 26 to January 1
New Year’s Eve: December 31
New Year’s Day: January 1

Those dates reveal something compelling: Plenty of opportunity to get creative and ramp up limited-time offers. Per Datassential, nearly half (44 percent) of consumers look forward to seasonal, holiday-themed LTOs.

In fact, roughly two out of five consumers find seasonality to be an important factor in their decisions to order LTOS and new menu items.

However, it’s important to know your audience and brand when coming up with special menu items. That’s because according to Datassential, 62 percent of consumers, at least for 2021, want classics and comfort food this season.

So, Datassential cautions operators against veering “too far” from traditional seasonal menu items and comfort foods. That said, you should know how far outside the box you can push your guests.

The Flavors

We’re not technically out of the fall just yet. The start of winter is December 21.

It can be smart to begin transitioning from fall to winter flavors over the next week or so. However, it may not be wise to toss fall flavors out entirely.

Datassential identifies the following as key fall flavors:

Apple cranberry
Butternut squash
Chestnut
Duck
Pumpkin pie
Stuffing

And these are important winter flavors, per Datassential:

Chocolate almond
Candy cane
Lobster cream
Lox
Red velvet
Toasted coconut

Those are by no means the only fall and winter flavors that will appeal to your guests. However, Datassential identifies them as top fall and winter flavors.

Something to think about when finalizing your winter LTO food and beverage menus.

Another thing to think about? Updating your listings to include holiday hours, LTOs, and other menu changes.

Image: Ryan Wallace on Unsplash

December 3, 2021by David Klemt David Klemt No Comments

5 Books to Read this Month: December

5 Books to Read this Month: December

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 this December.

To review November’s book recommendations, click here.

Let’s dive in!

Can I Mix You a Drink?

Superstar T-Pain partners with mixologist Maxwell Britten, formerly the bar director for James Beard Award winner Maison Premier. The fifty recipes in Can I Mix You a Drink? match up with a lyric or sentiment from T-Pain songs. There are amusing and insightful anecdotes from T-Pain, and the high-end, glossy photography in the book match the high-end recipes. Overall, this book is a vibe, much like a great cocktail bar.

The Oxford Companion to Spirits & Cocktails

David Wondrich and Noah Rothbaum team up for likely the deepest dive into the role alcohol plays in human history. The Oxford Companion to Spirits and Cocktails is everything you ever wanted to know about fermentation, distillation, aging, cocktails, cocktail bars, and more. In addition to global techniques and processes, readers will be treated to illustrations, a guide to making drinks, and even a timeline of distillation and spirits.

The Alchemist Cocktail Book: Master the Dark Arts of Mixology

When one thinks of chains, they tend to think of global fast-food and fast-casual brands. However, The Alchemist stands in stark contrast to that thinking. The Alchemist is a chain of stunning, experimental cocktail “theaters.” These cocktail bar and restaurant venues elevate the cocktail to new heights, paying just as much attention to experiential and atmosphere details as drink build details. The Alchemist Cocktail Book shares 100 original Alchemist recipes, including low- and no-alcohol drinks.

Market Fresh Mixology Presents Life, Love, Happiness & Cocktails

If you’ve ever wondered what inspired someone when they were creating a now-famous cocktail, this is the book you want. Not only does mixologist Bridget Albert, senior national director of education for Beam Suntory and founder of the Academy of Spirits and Fine Service, tell the stories behind 40 cocktail recipes, she invites others to join her. Life, Love, Happiness & Cocktails features Tony Abou-Ganim, Julie Reiner, and more telling the personal stories behind their recipes.

Hacking the New Normal

Are you ready to take your restaurant, bar, lounge, hotel or resort from concept to reality in 2022? Treat yourself this holiday season to a gift that will help you achieve your goal and dream of operating a successful hospitality venue. Do you know someone who has been talking about opening a restaurant, bar or hotel but hasn’t made their move yet? Hacking the New Normal is the perfect gift for them this holiday season.

Image: Mikołaj on Unsplash

December 1, 2021by David Klemt David Klemt No Comments

Stand Out with Weird Holidays: December

Stand Out with Weird Holidays: December

by David Klemt

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 December is no exception. These holidays range from mainstream—Thanksgiving Eve and Thanksgiving, anyone?—to food-centric to weird.

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

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

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

For November’s list, click here.

December 4: National Dice Day

I’m not including this holiday simply because I live in Las Vegas. Dice are for far more than just craps. Board games, role-playing games, making life decisions in a very strange manner… We need dice and they deserve a day of celebration.

One of the simplest ways to celebrate National Dice Day with your guests is to create a small beer, wine, spirits and/or cocktail menu. Then, put numbers against each offering and have guests roll the dice. Whatever number comes up, they’re getting the correlating drink. Easy.

December 5: Bathtub Party Day

Okay, let me be clear. I’m not encouraging events that involve people coming to your restaurant or bar to party in bathtubs. Rather, I’m suggesting celebrating Repeal Day (these holidays share the same date) with a cheeky nod to homemade booze made infamous during Prohibition.

Of course, you should absolutely not celebrate Bathtub Party Day by offering illicit alcohol. Instead, feature an array of gins and gin-based cocktails. You can also feature a brand like Ole Smoky Moonshine.

December 8: Pretend to Be a Time Traveler Day

This is a list of weird holidays, so how could I possibly pass up this gem? If you think one day of dress-up and pretending isn’t enough (looking at you, Halloween), here’s a very specific holiday just for you. Just make sure you prepare your front-of-house staff because wow—this could get weird (read: annoying).

You can also get a little more creative and put together a tasting for a spirit or brand with a history that spans several decades or centuries.

December 9: Weary Willie Day

Hey—get your mind out of the gutter. This is another holiday that there was no way I could ignore. Weary Willie Day is a celebration of clowns. In particular, it celebrates a character created by Emmett Kelly, Weary Willie. Why do we celebrate this unique holiday on this specific date? Emmett Kelly was born on December 9, 1898.

If you’ve got a plug, this is a fantastic holiday to feature Clown Shoes beers, distributed via Mass Bay Brewing Co.

December 11: National Noodle Ring Day

What? You don’t know what a noodle ring is? Well, neither did I until very recently. If you have a kitchen and, more importantly, a kitchen staff that loves to experiment and make new items, this is an awesome holiday.

A noodle ring is essentially what it sounds like. Noodle rings tend to be savory bites inspired by pasta dishes. Set noodles and other ingredients in a mold, bake, finish, and serve. Perfect for guests who want to try something new. And comforting on a winter’s day.

December 12: National Ding-a-Ling Day

This holiday isn’t about hurling a pretty innocuous insult at people. Yeah, sorry to burst your bubble. Instead, this day is all about reconnecting with people. The idea is to give someone a ring and rekindle that relationship. Now, I’m not telling anyone what to do…but please don’t use this holiday to annoy your ex. Please. Don’t do.

Anyway, you know where’s a great place to meet up after reconnecting? A restaurant or bar, of course! So, encourage people who have reconnected with someone during the holiday season to meet up at your venue.

December 13: Green Monday

Black Friday. Cyber Monday. Yes, those are the two busiest shopping days of the year. Do you know the third? It’s Green Monday, which takes place on the second Monday of December.

Green Monday 2021 is the 15th annual celebration of this holiday. How can a restaurant or bar participate in what’s generally a retail holiday? By offering gift cards, gift card deals (spend $100, get an additional $25, for example), and then promote the hell out of your gift card promotions. Start a week or a few days before Green Monday, and then really promote them via social, your email lists, and your text lists on the day itself.

December 17: National Ugly Christmas Sweater Day

Fine, this isn’t exactly a weird holiday anymore. At this point, ugly sweaters are basically a requirement for any holiday gathering taking place during December. However, it’s important to note that there’s an official holiday in December that calls for people to wear their ugly Christmas sweaters. Leveraging this holiday is easy, obviously. You know what to do.

December 23: National Pfeffernüsse Day

Would you like a pepper nut? Well, what about a pfeffernüsse? The name of this German gingerbread cookie translates to “pepper nut” in English. What sets this gingerbread cookie apart from the type we’re all most familiar with is that they’re rolled into balls before being baked, and then finished with confectioner’s sugar.

This tasty German cookie (also popular in Denmark and the Netherlands) certainly fits with the holiday season. And I bet you can think of a few beers, wines, spirits, and cocktails that pair well these cookies, which are made with all-spice, anise, black pepper, cardamom, cinnamon, cloves, ginger, mace, and nutmeg.

Image: Dan Parlante on Unsplash

Friends toasting with Champagne outside during the winter

November 29, 2021by David Klemt David Klemt No Comments

Things Looking Up For December

Things Looking Up For December

by David Klemt

Food and beverage research and analytics firm Datassential’s end-of-year insights point to a positive outlook for restaurants in December.

While many consumers still have reservations about spending time in public, others are eager to return to “normal.”

Restaurants and bars are expected to play an important role in reaching normalcy this holiday season.

Let’s take a look at Datassential’s 2021 Holiday Issue statistics.

Hesitancy Waning?

Let’s get the less-promising data out of the way first. Some consumers still find the idea of in-person restaurant visits uncomfortable.

Nearly half of Boomers surveyed by Datassential (46 percent) said they’re “significantly less likely” to visit a fast-casual or fast-food restaurant in December.

And, interestingly, 42 percent of men gave the same answer for visiting traditional sit-down restaurants.

However, of all the in-person options presented to participants by Datassential, restaurants performed the best.

More than half of all respondents—men, women, Gen Z, Millennials, Gen X, Boomers—plan to visit fast-casual, fast-food, and sit-down restaurants more in December than they have in recent months.

It’s most likely that anticipation for restaurant visits is driven by the desire to gather and celebrate the holidays.

Overall, 57 percent of respondents plan to visit fast-casual and fast-food restaurants more. And 47 percent expect to visit sit-down restaurants more.

That makes those two options the top answers.

Only 16 percent of respondents indicated they don’t plan on visiting any on-site foodservice venues.

Regarding bars, sports bars, lounges, and nightclubs, men are “significantly more likely” (23 percent) to visit those types of venues in December.

Holiday Opportunity

According to Datassential’s report, the opportunity for holiday bookings is out there.

More than likely, gatherings will simply be smaller than they were prior to the pandemic.

Asked about plans to gather at restaurants in December, get-togethers are expected to be “moderately sized.”

Almost half of survey respondents (44 percent) plan on gathering at restaurants in parties of seven to twelve.

Just over a quarter (29 percent) plan on get-togethers of six or fewer of people. Only 18 percent of respondents are planning large (13 to 18 people) gatherings at restaurants in December.

As far as parties of 19 or more, just nine percent of respondents plan “very large” gatherings.

Of course, individual operations’ results will vary. However, this information gives us an idea of what traffic may look like for many operators.

2021 Spending

This is where the news looks even better for restaurants, bars and nightclubs in December.

When asked about spending money on going out to eat and for drinks, just 18 percent of respondents said they planned to spend less this year than in 2020.

Very nearly half (49 percent) plan to spend the same as they did last year. However, 32 percent said they think they’ll increase their spending.

When it comes to New Year’s Eve, the numbers shift a bit. However, 50 percent of respondents plan to spend the same on NYE in 2021 as they did in 2020.

Twenty-six percent plan to spend more on NYE in 2021. Just 24 percent plan to spend less this year on NYE.

Per Datassential, Millennials are most likely to splash out for NYE this year.

So, things won’t be returning to pre-pandemic normalcy by 2021’s end. However, if Datassentials findings prove accurate, things are looking healthier for December.

Image: Christine Jou on Unsplash

November 23, 2021by David Klemt David Klemt No Comments

Giving Tuesday: World Central Kitchen

Giving Tuesday: World Central Kitchen

by David Klemt

November 30 is Giving Tuesday, “a global generosity movement” that focuses on all acts of kindness and giving, large and small.

KRG Hospitality vice president Jennifer Radkey explains Giving Tuesday in-depth in her article from last week.

In her article, Jennifer puts forth ways to involve your business and staff in acts of kindness.

She also explains that November 30 is an opportunity for operators to give back. After all, communities supported restaurants and bars during the pandemic. Now’s the time to provide support for those communities.

All acts of kindness and generosity are encouraged on Giving Tuesday. Monetary donations, volunteering time, hosting charitable organizations free of charge… There are endless ways to participate in Giving Tuesday.

“In other words, it doesn’t matter how you give,” says Jennifer. It just matters that you take part.

World Central Kitchen

At KRG Hospitality, we support World Central Kitchen. Founded in 2010 by Chef José Andrés and his wife Patricia, WCK has been fighting food insecurity for nearly 12 years.

One reason we give to WCK is exemplified in an announcement from earlier this month.

World Central Kitchen is committing to providing $1 billion over the next ten years via their Climate Disaster Fund.

Another reason we give to World Central Kitchen? The 501(c)(3) non-profit gave more than $250 million in 2020 to feed communities around the world.

However, it’s WCK’s overall approach to fighting food insecurity is what we find compelling. The charitable organization doesn’t just show up to a community, hand out food, and leave.

Rather, WCK commits to long-term, local solutions. They create food programs to improve a community’s overall health; offer culinary training and provide jobs; and work to build food security.

If you have the means, please consider following this link to make a donation to World Central Kitchen. Per Charity Navigator, WCK enjoys the highest rating for a charity: four out of four stars.

Donations can be one-time or monthly, for any amount, and in someone’s honor or memory.

Image: Joel Muniz on Unsplash

Kindness is a Superpower stencil graffiti on brick wall in black and white

November 17, 2021by krghospitality krghospitality No Comments

Why You Should Take Part on Giving Tuesday

Why You Should Take Part on Giving Tuesday

by Jennifer Radkey

You are most likely familiar with Black Friday and Cyber Monday, days that encourage consumerism and support the economy.

However, after these two days comes a global movement that you may not yet be familiar with but need to be: Giving Tuesday.

Created in 2012, Giving Tuesday will be celebrating its ninth year Tuesday, November 30th. It is a global movement in which organizations, businesses, charities, and individuals all come together to support their favourite causes.

From large monetary donations to simple acts of kindness, it is a day that encourages people to do good and to bring about positive change in their communities.

Why Generosity?

Generosity not only benefits the charity or person who is on the receiving end, it has huge benefits to those on the giving end.

From increased happiness to a sense of shared community, being generous with your time, resources, or money is often a simple act with big rewards.

A 2008 study by Harvard Business School professor Michael Norton and colleagues found that giving money to someone else lifts participants’ happiness more than spending money on themselves.

This is true even when the participants anticipate prior to the act of giving that spending the money on themselves would make them happier. Research also suggests that similar well-being benefits come from giving monetary gifts/donations or volunteering your time.

In other words, it doesn’t matter how you give, it is the act of giving in itself that gives us that “warm glow” feeling that we typically associate with the holiday season.

Hospitality and Generosity

The words hospitality and generosity go hand in hand.

To be a welcoming hospitality brand you need to be generous with your time and your kindness. You need to be willing to create an atmosphere in which people come to not just eat a meal, have a drink, or spend a night, but to create memories, to socialize, and to have an experience.

Over the past (nearly) two years, we have asked our communities to support hospitality businesses as we faced lockdowns and restrictions. In many ways, our communities did just that.

Guests ate on patios when the weather was not pleasant. They supported through ordering takeout. #SupportLocal movements popped up not just in the U.S. and Canada but globally. Through their extra efforts, many businesses were able to keep their doors open and their staff employed.

Now it is time to take that generosity shown to us and give it back to our community.

Giving Back

So, as a hospitality business, how can you contribute to Giving Tuesday?

Firstly, discuss it with your team! If you are able to contribute a monetary donation to your community in some way, which charity or organization speaks most to the values you all share?

If you aren’t able to contribute a monetary donation, how can you volunteer your time as a team? Maybe you can make your space available free of charge for a local organization or charity to host an event. Perhaps you can cook meals or bake goods as a team to provide to those in need, or who work tirelessly to make your community a better place.

The opportunities for giving back are endless and you can be as creative as you like. Host a breakfast with Santa for a local children’s group or do a hot chocolate and cookie drop off at a senior’s centre.

Brainstorm as many ideas as possible with your team. The process of thinking of charitable acts alone will brighten your team’s mood and get everyone in the giving spirit.

Share, Share, and Share Some More

Once you decide how you will participate in Giving Tuesday, tell the world about it!

Take photos, share the link to the charity or organization you are giving to, and encourage others to give alongside you. Tell a story.

However, do not engage with Giving Tuesday cynically with the goal of social media exposure. Be truly kind and generous.

Generosity is contagious. Your act of kindness will encourage others to do the same. It will also shine a bright spotlight on your hospitality brand, so make certain you’re engaging in kindness authentically and not just to score points with your community.

For more information on Giving Tuesday, please visit www.givingtuesday.org. Cheers to professional and personal well-being!

Image: Andrew Thornebrooke on Unsplash

Military combat helmet in digital camouflage

November 9, 2021by David Klemt David Klemt No Comments

Adding Veterans to Your Team

Adding Veterans to Your Restaurant, Bar or Hotel Team

by David Klemt

Do more this Veterans Day by encouraging those who have served to apply and interview for available positions on your team.

There are several benefits to providing job opportunities to veterans, regardless of the country (or countries) in which you operate.

Of course, there are dos and don’ts that come along with recruiting, hiring and working with veterans.

Benefits to Hiring Veterans

Before we begin, a caveat: Remember that veterans are individuals. “Veteran” is a label, a designation, a descriptor. In no way is one person who is a veteran interchangeable with another.

That said, there are some elements of military service that are similar to those of successful hospitality operations.

Teamwork, a strong work ethic, leadership skills, precision in tasks, achieving goals, consistency in results… When a restaurant, bar or hotel team is operating at its best, it can be said they work with military precision.

Generally speaking, veteran job candidates bring experience to the table that can benefit an operator greatly.

Additionally, it’s commonly said that hospitality leadership should hire for personality because they can train requisite skills. Speaking generally again, many veterans are so used to receiving specialized training that they’ll likely appreciate and respond quickly to yours.

If you want your business to operate with military precision, why wouldn’t you hire military personnel who fit well within your team?

Questions to Ask During Interviews

Obviously, there are definite dos and don’ts when it comes to discussing a veteran’s military experience.

As curious as you may be about some aspects of a veteran’s experience, questions shouldn’t be invasive or offensive.

Some examples of questions you should ask are:

“What did you do (in the Air Force, Army, Coast Guard, Marines, Navy, National Guard or Reserves)?”
“Why did you choose that branch of the military?”
“How long did you serve?”
“Do you come from a military family?”
“Where were you stationed during your career in the military? Did you visit any other countries?”
“Where was your favorite place you visited or lived?”
“How do you think your experience in the military will benefit you here?”

As you can see, nothing in those questions should make a veteran applicant uncomfortable.

Questions and Behaviors to Avoid

Speaking of discomfort, there are many questions that you should never ask a veteran. Not just during the interview process, but ever.

Also, if a veteran informs you they’re uncomfortable answering a question about their service, that should be respected.

Examples of questions and topics you should avoid are:

“Do you have PTSD (Posttraumatic Stress Disorder)?”
“Do you find it hard to get back to ‘real/regular’ life after being in the military?”
“Did you ever get shot/stabbed/bombed?”
“Did you ever kill anyone?”
“What’s the worst thing that ever happened to you while you served?”
Current military conflicts, particularly if you haven’t served in the military.
Referring to elements of work through military analogies.
Insulting branches of the military if you never served.

In short, treat veterans with the respect their deserve, as you should any other member of your staff. Veterans aren’t novelties or curiosities—they’re people.

For too long, veterans have faced undue scrutiny and undeserved stigmatization. It shouldn’t be difficult to turn that around when the solution is simple: Give veterans respect; treat them like people since that’s precisely what they are; and provide equal opportunity.

Image: israel palacio on Unsplash

November 8, 2021by David Klemt David Klemt No Comments

You’re Competing Against Chains for Labor

You’re Competing Against Chains for Labor

by David Klemt

Independent operators and local chains aren’t just competing with one another for staff, they’re up against global brands.

Unfortunately, that means competing against massive corporations that can offer higher wages and all manner of benefits.

However, smaller operations can still take steps to lure workers and fill open positions.

The Threat

In response to the labor shortage, many national and global chains are increasing hourly wages.

For example, Chipotle boosted wages for hourly workers to $15 per hour a few months back. Along with this boost in wages came a hike in menu prices: four percent across the board.

Earlier this year, McDonald’s also announced they would boost hourly pay. Hourly workers saw a boost of about ten percent. Of course, this chain also found itself dealing with increased supply costs. To offset a rise in costs of at least four percent, McDonald’s also boosted menu prices.

The latest to enter the labor fray is Starbucks. And like other chains, the corporation addressed the issue of hourly wages publicly.

Indeed, Starbucks’ announcement shares several details. First, staff who have worked for the company for a minimum of five years could see a pay raise of ten percent. Those who have been with the company for at least two years (but less than ten) could get a raise of five percent.

However, it doesn’t end there. Starbucks workers in the United States can take advantage of $200 referral bonuses. On average, Starbucks says hourly wages will range from $15 to $23 per hour, with an average of $17 per hour. The company expects these wage changes to be in place by Summer 2022.

Solutions

Of course, one doesn’t have to need revenue in the tens of millions or billions of dollars to compete for staff.

We’ve addressed this topic several times on the KRG Hospitality site. In particular, we’ve brought up increasing menu prices to support wage hikes. Specifically, we recommend borrowing from Chipotle and McDonald’s: Be transparent and explain why menu prices are going up.

Additionally, Bar Hacks guests like Chef Brian Duffy and Lynnette Marrero have spoken about this topic.

As Chef Duffy says during his second appearance, treating staff better is a big step toward reducing turnover. Word spreads among hospitality workers, and improved employer-employee relations is an excellent recruitment tool.

Another effective benefit? Flexible and improved scheduling which, of course, can be implemented easily via scheduling apps.

Mentorship is a powerful recruiting and retention tool. Both Chef Duffy and Marrero believe in the power of this benefit. They have decades of experience to pass on to staff that can help their careers.

Marrero also suggests implementing labor structures that corporations don’t offer. For instance, she suggests new operators are well positioned to offer earned equity, profit sharing, and co-op ownership structures.

Existing operators can also leverage Marrero’s ideas. However, they’ll need agreement from their investors if they have any.

Now that you know where labor threats are coming from, you can strategize and fight back. You may not have billions of dollars in the bank, but you’re nimble and can implement changes much more quickly. Listen to your staff and be open to making meaningful but reasonable concessions.

Image: Fernando Venzano on Unsplash

Thinking differently planning concept with light bulb on chalkboard

November 3, 2021by David Klemt David Klemt No Comments

New Operators Can Reject the Old Models

New Operators Can Reject the Old Models

by David Klemt

There’s no reason new hospitality business owners and operators have to do what’s always been done.

In fact, new owners and operators are in a prime position to create entirely new business models.

If we’re going to change things and set the industry up for success in the future, we need to pursue different ways of doing business.

Industry Pioneer and Icon

Lynnette Marrero, widely known as a pioneer in this industry, is enjoying a career that should inspire all hospitality professionals.

After getting her start as a cocktail waitress at New York City’s storied Flatiron Lounge, she transitioned to bartender. In that role, Marrero was able to learn under Flatiron Lounge co-owner and bartending sage Julie Reiner.

She has created and consulted on world-class, award-winning cocktail programs. If you find yourself in New York City, plan to stop into Llama Inn and Llama San to experience Marrero’s menu programming.

Marrero is a James Beard Award and Spirited Award winner, a Dame Hall of Fame inductee, and the co-founder of high-speed all-female bartending competition Speed Rack.

Perhaps most importantly, she’s a mentor and an innovator helping to shape the career’s of new bartenders and hospitality pros.

And on episode 54 of the Bar Hacks podcast, Marrero encourages new operators to think differently about how they run their businesses.

New Models

Specifically, Marrero explains that new owners and operators are in a position to run things differently from the start.

“I think it’s a lot about changing your structures from the beginning. Don’t feel pressure to have to go into models that already exist,” says Marrero. “You can build new models and you can think about new ways.”

Making impactful change from the very beginning requires a change in how we think about running restaurants, bars, hotels, and other hospitality businesses.

“What does ownership look like?” asks Marrero, providing examples of new approaches to ownership. “Can you start a place that’s more profit sharing for staff? Can you build that in from the beginning?”

Offering further considerations, Marrero suggests that new owners and operators consider operational elements such as earned equity and co-op-style ownership.

In theory, such structures, which are certainly far from the norm, may lead to significant reductions in turnover, boosts to staff morale and engagement, and a more dynamic team. Putting different structures in place rather relying on the old models can lead to building teams invested in helping owners grow their businesses for the long term.

Change is Necessary

While established operators can certainly make changes to their existing operations, Marrero says that it’s easier for new businesses to do so.

In part, this is because investors know going in what the labor structure is, for example. They therefore also understand how the payback structure will work.

And that’s just on the investment side of the equation. On the labor side, new structures make it easier to recruit, hire, and retain staff.

Solving labor shortages leads to operating at full strength for full days rather than relying on shortened hours. Staff are less overwhelmed and costly turnover is reduced.

It’s easier to do things the way they’ve always been done. But rejecting the old ways can be far more fulfilling and profitable for everyone involved.

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