Business | KRG Hospitality

July 23, 2024by David Klemt David Klemt No Comments

Difference Between a Plan and Playbook

The Difference Between a Plan and a Playbook

by Doug Radkey

Sometimes AI comes up with impressive images. This is one of them.

You’ve likely heard that 80 percent of hospitality businesses fail within the first five years.

When you ask those in the industry the question of why there is such a high rate of failure, they reply with a fairly predictable list of factors. These tend to be location, concept or brand confusion, lack of service standards, toxic workplace culture, sub-par marketing efforts, and mismanaged funds.

Many operators who fail try to quickly blame external factors, such as the economy.

When you ask the next question—what are the other 20 percent of operators doing differently to surpass five years in business—you get one simple answer. The difference between those who drive a sustainable profit of 12, 15 or 20 percent (or more) and those who don’t boils down to one thing and one thing only: they have strategic clarity.

It’s not that the successful 20 percent did not battle challenges or the same tough economy or labor struggles. What they had was clarity, and a playbook detailing how to overcome a multitude of challenges.

So how do you achieve strategic clarity? Well, it’s much more than just writing—or filling out a template for—a business plan.

What is Strategic Clarity?

Strategic clarity is the comprehensive understanding and alignment within your hospitality business regarding its identity, direction, purpose, and the means to achieve its goals.

It involves clear communication and consensus on key aspects of the business, ensuring that everyone is working towards the same objectives. Below, the key components that define strategic clarity.

1. Understanding Who We Are

Core Identity: This includes the mission, vision, and core values of your business. It defines what the business stands for, and its fundamental purpose.
Strengths and Weaknesses: Recognizing the business’ strengths, weaknesses, opportunities, and threats (SWOT) aids in identifying the core competencies and areas for improvement.
Culture: The shared beliefs and practices that characterize the business’ internal environment, and how it interacts with both staff and guest perceptions.

2. Knowing Where We are Going

Vision: A clear and compelling picture of what the business aspires to become in the future. It serves as a guide for choosing current and future courses of action.
Long-term Goals: Specific, measurable, achievable, relevant, and time-bound (SMART) goals that outline the desired outcomes over an extended period.
Milestones: Intermediate targets that mark progress towards the long-term goals.

3. Understanding Why We are Doing This

Purpose: The fundamental reason for the business’ existence beyond making a profit. It encompasses the broader impact the business aims to have on its community.
Motivation: The driving force behind the business’ actions and strategies. This includes the values and principles that guide decision-making, as well as behavior.
Stakeholder Alignment: Ensuring that the goals and activities of the business align with the interests and needs of its stakeholders: guests, employees, investors, and the community.

4. How We are Going to Get There

Strategy: The overarching plan that outlines how the business will achieve its vision and long-term goals. It includes the allocation of resources and the selection of strategic initiatives.
Tactics: The specific actions and steps that will be taken to implement the strategy. This involves detailed planning, delegation, resources, and execution.
Performance Metrics: The criteria and tools used to measure progress and success. Key Performance Indicators (KPIs) and other metrics help track the effectiveness of strategies and tactics.
Continuous Improvement: The process of regularly reviewing and refining strategies and tactics based on performance data and changing circumstances.

Strategic clarity is essential for the cohesive and effective functionality of your bar, restaurant, or hotel business. This leadership approach ensures that all members understand and are aligned with the business’ identity, direction, purpose, and methods.

By achieving strategic clarity, organizations can navigate challenges, seize opportunities, and build upon sustainable long-term success. What we have found over the years that attributes to long-term clarity and success is a series of playbooks.

Understanding Plans and Playbooks

Let’s first dive into the critical distinction between a plan and a playbook, and why this matters for your bar, restaurant, or hotel. Understanding and utilizing both can significantly impact your business’ ability to start strong, stabilize effectively, and ultimately position you to scale successfully.

A traditional business plan, as you may know it, is a document that outlines your goals, and the steps you will take to achieve them. It’s often the number one consideration to secure funding and to set strategic direction.

However, it is, more often than not, missing plenty of crucial information, strategies, and guidance that end up planting a false sense of security.

A playbook, on the other hand, is a more comprehensive guide filled with detailed processes, best practices, and adaptable strategies tailored to your specific operations. Within this dynamic industry, you need more than a standard business plan if you want to be successful.

In fact, you should have eight different playbooks in place to position yourself within the top echelon of this industry.

The Power of Playbooks in Hospitality

While plans are often static or rigid (and often forgotten about shortly after they’re written), playbooks are designed to be flexible and adaptable.

Playbooks provide a step-by-step guide, ensure consistency and efficiency, and offer adaptable strategies and best practices to start, manage, and grow effectively.

Playbooks go into more granular details, and provide actionable steps. In this way, they’re notably different from a singular business plan.

The Eight Playbooks

No matter if you are operating a coffee shop, bar, restaurant or hotel (or any other concept within the hospitality industry), the following eight playbooks should be looked at as non-negotiables.

Feasibility Study/Playbook: The foundational guide for assessing the viability of your hospitality business idea. It involves a comprehensive analysis of the market, competitive landscape, financial projections, and operational requirements. This playbook helps you determine whether your concept is realistic and profitable before committing significant resources.
Concept Playbook: Focuses on refining your hospitality business idea into a clear and compelling concept. This playbook guides you through creating a unique value proposition, defining your target market, and outlining the core elements of your business, including service style, interior design, and internal programming.
Prototype Playbook: A step-by-step guide to developing a tangible representation of your hospitality concept. This playbook helps you create a prototype that can be tested and refined before a full-scale launch. This playbook covers design specifications, operational workflows, fixtures/furniture/equipment, and detailed budgets.
Brand Strategy & Identity Playbook: Defines the strategic approach to building and maintaining a strong brand. This playbook covers the creation of your brand identity, messaging, and positioning to ensure consistent and impactful brand communication. It involves color psychology, core values, mission statements, brand experiences, and more.
Marketing Playbook: Outlines the strategies and tactics to attract, build, and retain your target guests. This playbook provides a roadmap for creating and executing effective marketing campaigns across various channels. It provides a step-by-step guide on content, social media management, database building, email marketing, partnerships, and community activations, along with detailed guest journey maps.
Tech-stack Playbook: Provides guidance on selecting and implementing the correct technology solutions to enhance your hospitality operations. This playbook ensures that your technology infrastructure supports your business goals and improves efficiency. This playbook identifies technology gaps, software solutions, hardware requirements, and integration plans, plus training and support on technology.
Financial Playbook: A comprehensive guide to manage your hospitality business’ finances. This playbook covers budgeting, financial forecasting, accounting practices, and financial performance analysis. It should highlight financial contingency plans, mock labor schedules, daily/weekly/monthly/seasonal traffic reports that align with the business, and financial objectives.
Operational Playbook (a.k.a. Business Plan): Outlines the day-to-day operations in great detail, along with long-term strategies. This playbook ensures that all aspects of your operations are well-coordinated and aligned with your overall business goals, and the other seven playbooks. It should highlight standard operating procedures, labor plans, supply chain management, guest services, and measurable operational metrics.

You’ll notice there are seven other playbooks written before the business plan. Far too often, this is where people start. Without the other seven playbooks, it will be nearly impossible to craft a winning playbook for your day-to-day operations.

When Should You Use Playbooks

To Start: These eight playbooks are crucial to craft your success story right from the beginning. Build the foundations before signing a lease or purchasing a property.
To Stabilize: If you’re currently underperforming (profit margins under 12 percent for bars and restaurants, and under 15 percent for hotels), use playbooks to generate impactful results.
To Scale: These playbooks will help ensure that both your first location—and the next location—are prepared for consistent operations without diminishing your brand equity.

Strategic planning within detailed playbooks is essential for your hospitality business’ success.

Regardless of your current position, evaluate your use of business plans, and consider developing comprehensive playbooks instead. Make the time and commitment to achieving true clarity in your business, and position yourself to be on the correct side of this industry’s statistics.

AI image generator: DALL-E

March 4, 2024by David Klemt David Klemt No Comments

5 Books to Read this Month: March 2024

5 Books to Read this Month: March 2024

by David Klemt

Our inspiring and informative March book selections will help you improve operations, refresh F&B programming, and consider a design update.

This month, we look at books covering an array of topics: overcoming dysfunctions within teams; stepping outside of comfort zones; cocktail and Irish dish recipes; and repurposing existing buildings.

To review the book recommendations from February 2024, click here.

Let’s jump in!

The Five Dysfunctions of a Team: A Leadership Fable

In a departure from most business books, the author of The Five Dysfunctions of a Team presents useful lessons in the style of a fictional tale. This approach makes this book—which has more than 13,000 reviews on Amazon—a compelling read.

From Amazon: “Equal parts leadership fable and business handbook, this definitive source on teamwork by Patrick Lencioni reveals the five behavioral tendencies that go to the heart of why even the best teams struggle. He offers a powerful model and step-by-step guide for overcoming those dysfunctions and getting every one rowing in the same direction.”

Pick up your copy today.

The Complete Irish Pub Cookbook

I doubt you need a reminder but just in case, St. Patrick’s is just two weeks away. So, what better time to pick up this best-selling cookbook featuring Irish classic and modern fare? Flip through this book, check out some interesting recipes, and put your own spin on them so they fit with your concept.

From Amazon: “Pubs in Ireland are the cornerstone of their communities, relaxed places where locals and visitors can experience the best of traditional Irish hospitality. Many pubs have also become the place to go for a great meal, with a choice of both traditional and contemporary dishes. In recent years Irish cooking has been transformed, with skillful cooks making the most of wonderful fresh local produce to create delicious new dishes and giving a twist to many classics. This tasty cookbook includes the best of both worlds – with best-loved favorites s Irish Stew, Corned Beef and Split Pea and Ham Soup and newer recipes, like Scallop Chowder or Oatmeal and Raspberry Cream to set your taste buds tingling.”

Order The Complete Irish Pub Cookbook now!

Drink: Featuring Over 1,100 Cocktail, Wine, and Spirits Recipes

This is a seriously big book. After all, it really does contain more than 1,100 recipes. KRG Hospitality president Doug Radkey recently picked up this book and flipped through its many, many pages.

Along with well over a thousand recipes organized by spirit, Drink looks at bar tools, housemade ingredients, and ice. Further, it includes interviews with bartenders. If you’re looking for a recipe book that will inspire a drink menu refresh, this is the one you want.

Grab this tome today.

Cool is Everywhere: New and Adaptive Design Across America

Last month, we dove into the biophilic design methodology. This book, Cool is Everywhere, is a photo-driven look into the adaptive reuse design movement. Very briefly summarized, this is a design movement that focuses on repurposing existing architecture rather than knocking down buildings and putting up new construction. This approach tends to be eco-friendly, and as you’ll see from the photos in this book, it also creates cool buildings.

From Amazon: “Cool Is Everywhere highlights remarkable designs that have transformed ordinary buildings into works of art. From North Adams, Massachusetts, to Oakland, California, join Michel as he explores the skyscrapers and quaint neighborhoods that led him to believe that cool is, in fact, everywhere.”

Pick up this book now.

The Comfort Crisis: Embrace Discomfort To Reclaim Your Wild, Happy, Healthy Self

This book from author Michael Easter asks a fairly simple question: What if the modern world’s conveniences are making our lives more difficult? When we look deeper into our lives, we may find that our health is being impacted negatively by building and remaining in our comfort zones. Certainly, entrepreneurs can find that refusing to step outside of their comfort is hurting the business side of their lives.

From Amazon: “In many ways, we’re more comfortable than ever before. But could our sheltered, temperature-controlled, overfed, underchallenged lives actually be the leading cause of many our most urgent physical and mental health issues? In this gripping investigation, award-winning journalist Michael Easter seeks out off-the-grid visionaries, disruptive genius researchers, and mind-body conditioning trailblazers who are unlocking the life-enhancing secrets of a counterintuitive solution: discomfort.”

Order it today!

Image: Mikołaj on Unsplash

January 3, 2024by David Klemt David Klemt No Comments

5 Books to Read this Month: January 2024

5 Books to Read this Month: January 2024

by David Klemt

Our inspiring and informative January book selections will help you and your team transform your operations and F&B programming.

This month, we look at books covering an array of topics: becoming a great boss; gaining perspective when analyzing your business; and more.

To review the book recommendations from December 2023, click here.

Let’s jump in!

Single AF Cocktails: Drinks for Bad B*tches

You may roll your eyes at the title of this cocktail book but there’s no denying it has your attention. In that way, it’s much like a well-curated, themed cocktail menu split into cleverly named sections. In fact, this book is separated into sections that match its overall theme. For example, Honeymoon Phase, Betrayal, Devastation, and Resilience. If you have reality show fans among your guests, they’ll likely know author Ariana Madix from Vanderpump Rules and Dancing with the Stars. So, they’ll probably dig these drinks.

From Amazon: “The newly solo Ariana serves up her own recipes and perspective in a unique exploration of the stages of a doomed relationship. In her own words, Ariana takes back the narrative of her very public breakup while inspiring others to find inner strength in their own troubles. Each drink tells part of the story from her point of view, from when she first met her ex, through the insidious affair and its painful aftermath, and to her present state, coming out the other side, stronger than before.”

Grab it today!

How to Be a Great Boss

Entrepreneurs, when working with a team, need to be leaders. That means being a great boss. However, that doesn’t mean being a tyrant. If you want to earn buy-in from your team, if you want to get the most out of each person, you need to get them excited and engaged.

From Amazon: “Studies have repeatedly shown that the majority of employees are disengaged at work. But it doesn’t have to be this way. Often, the difference between a group of indifferent employees and a fully engaged team comes down to one simple thing: a great boss.

“In How to Be a Great Boss, Gino Wickman and René Boer present a straightforward, practical approach to help bosses at all levels of an organization get the most from their people. They share time-tested tools that have worked for more than 30,000 bosses in every industry. You can learn to be a great bossand dramatically improve both your organization’s performance and your team’s excitement about their work.”

Pick up the hardcover today.

Same as Ever: A Guide to What Never Changes

As a business owner, it’s smart to see what’s changing. However, it’s also crucial to identify what’s not changing to gain perspective and understand the whole picture.

From Amazon: “With his usual elan, Morgan Housel presents a master class on optimizing risk, seizing opportunity, and living your best life. Through a sequence of engaging stories and pithy examples, he shows how we can use our newfound grasp of the unchanging to see around corners, not by squinting harder through the uncertain landscape of the future, but by looking backwards, being more broad-sighted, and focusing instead on what is permanently true.

“By doing so, we may better anticipate the big stuff, and achieve the greatest success, not merely financial comforts, but most importantly, a life well lived.”

Click here for the hardcover, or here for the paperback.

Bar Hacks: Developing The Fundamentals for an Epic Bar

This informative and conversational book written by KRG Hospitality president Doug Radkey is the perfect read for aspiring or seasoned bar, pub, lounge, or even restaurant owners, operators, and managers looking for that competitive edge in operations! If you’re looking for both fundamental and in-depth planning methods, strategies, and industry focused insight to either start or grow a scalable, sustainable, memorable, profitable, and consistent venue in today’s cut-throat industry, Bar Hacks is written just for you.

Pick up the paperback from Amazon today!

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

Doug’s followup book to Bar Hacks! The world around us has changed. The food and beverage industry has changed. The hospitality industry has changed. But will some ways of life change for the better? Will perhaps the restaurant, bar, and hospitality industry come out even stronger? With the right changes to the previous status quo, it is possible. There’s no question, resets are major undertakings, but a major reset will provide us with a clean start and that’s what this industry needs.

Pick up KRG Hospitality president Doug Radkey’s second book today! Click here.

Image: Mikołaj on Unsplash

July 7, 2023by David Klemt David Klemt No Comments

Hospitality Mindset: Bar Edition

Hospitality Mindset: Bar Edition

by Jennifer Radkey

Messages about the importance of mindset flood our social media feeds but what exactly does the word mean, and why is it so important?

You’re told you need to have a growth mindset to be successful. You must have a positive mindset for a happy and fulfilling life. Both are true statements, but what do they mean?

Simply stated, mindset is an individual’s usual attitude or mental state. It reflects someone’s way of thinking and motivates their actions. So, why is it important to be aware of your mindset?

Well, if your mindset is your usual attitude or how you show up in your life each and every day, it will influence all parts of your life. Your thoughts about yourself, others, your business, your opportunities, and your challenges are all influenced by your mindset. Your mindset can either hinder or promote your overall well-being and success in life.

The interesting thing about mindset is that it can change—if you want it to. Your mindset can also be influenced by your environment and those around you. These facts led me to question if the different sectors of the hospitality industry face unique mindset challenges.

To find answers and gain further insight, I decided to turn to our team at KRG Hospitality for their thoughts. In turn, I’ve begun a series of hospitality mindset articles.

In this first article I’ll explore the bar industry, with thoughts from master mixologist Jared Boller. Follow the series as I explore mindset in restaurants, hotels, and start-up operations.

Let’s dive in!

The Bar Industry

In the US, the bar and nightclub market is valued at an estimated $36 billion for 2023. The industry as a whole employs close to 600,000 people.

With businesses built off drinking culture, what unique challenges do operators and those working inside these establishments face?

Successful Operators

Operating a successful bar takes a certain mindset. You need to be flexible, open-minded to growth strategies, mindful of your market and competition, and compassionate to the needs of your team.

Interested in what makes a bar operator stand above their competition, I asked Jared what makes a bar operator successful.

“First and foremost, I think that every bar owner needs to understand their product and how they are going to differentiate themselves from the competition. Ultimately, it is up to the owner to realize what their goal is in owning a bar. It requires digging deep into themselves to ask what they want out of their business.

“Are you looking for a way to make extra cash? Are you looking to provide a local hangout for you and your friends? Do you want to win awards and have a buzzworthy place everyone wants to visit? This is a tough business that requires a lot of time and energy, and thick skin.

“Be organized, clean, a good leader, efficient, and provide a home that your employees want to come to. Try to know all aspects of the business: financials, technology, culinary, bar, service, management, etc.”

Operator Challenges

Operators need a resilient, positive, growth mindset to be successful. It’s the only path forward to running a bar they are both proud to work in and enjoy working at every day.

This is a mindset that will need tending to as there are challenges that will affect your daily thoughts, beliefs, and attitudes.

When asked what specific challenges bar operators face that may affect their mindset, Jared shared his thoughts.

Labor Shortage

Dealing with labor shortages as an operator can create feelings of frustration, stress, and resentment.

“It’s getting increasingly difficult to gain a competitive edge because of numerous factors, one of the biggest being labor shortage. It’s not a labor shortage where there’s not enough jobs, it’s an unwillingness to work and/or want to work in the hospitality industry because, quite frankly, ‘It’s tough.’

“I think that with inflation happening in the world, as well as the majority of establishments working off the Tips Blueprint, it doesn’t allow people to know what they’re making day in and day out. People are turning to different jobs or jobs outside of hospitality because they don’t want to be on their feet everyday working long hours and not knowing their future.”

Competition

If a bar operator isn’t careful they can very easily become lost in the game of comparison.

Yes, it is important to know what your competition is up to, but if the constant comparison leads to negative feelings about you, your team, and your establishment without any action for improvement, this is a surefire way to hurt your mindset and chances of success.

If you truly want to be competitive without getting lost in the comparison game, focus on your team.

“The time of pumping out commercial food and drink is gone, and legitimate professionals who are educated and professionally trained are few and far between. Additionally, there’s even a creative youth movement with ambition, but they have not been classically trained in their respective outlets.

“It’s difficult to be competitive without education, training, and bringing together a group that can keep an establishment afloat with similar perspectives. It takes an army to be competitive with everyone speaking the same language, understanding the establishment inside and out, and able to execute night in and night out with the same integrity.”

Social Media/Online Reviews

As a bar operator, you rely on your reputation within your community for the success of your business. This also holds true for your online community.

How you react and your thoughts about online reviews can affect your mindset. A negative online review can very easily incite feelings of anger, disappointment, and blame.

“We live in a world driven by star ratings, thumbs up, and everyday critics writing novels about how there was ‘too much ice in my drink,'” says Jared. “If you read too many negative comments, that could affect one’s mental health and hurt confidence.”

Coming up with a strategy for dealing with negative social media posts/reviews is critical for keeping a clear perspective and maintaining a positive mindset.

Employee Challenges

Your team experiences their own unique set of challenges that can effect their well-being and mindset as well.

Being aware of these challenges is important if you are hoping to create a culture of respect, collaboration, and trust.

When asked what specific challenges bar staff face, Jared had some insights.

Long Hours/Physicality

Bars are often open late into the night, with bartenders in particular being front and center at all times. This can lead to both physical and mental exhaustion if appropriate breaks aren’t provided.

“The physicality alone will eventually take a toll on the employee who is shaking drinks for eight to ten hours a day, working doubles, having minimal break times, and standing on their feet for the same amount of hours. On top of that, you are constantly on stage and typically in a vantage point of someone either sitting across from you at the bar or observing from a table. You are constantly having to engage, take care of, and put on a happy face even if you might be dealing with something in your personal life. Not being able to take a step away or breathe can make you feel claustrophobic or trapped at times.”

Job Security/Growth

If you are working in an unsupportive environment that does not feel safe and makes you feel as though your future with the business is unsure, it can create feelings of discomfort, resentment, anger, worry, and even fear.

Bar employees need to feel respected, heard, and valued.

“Every employee—pending they do the job well—should feel safe in their workspace. I also believe that employees should be able to grow in their workspace if they have the desire to learn and/or be promoted in the future.

“I think that if an employee does the work, and has mastered the role, they should be considered for advancement. Employees in this industry need to identify what speaks to their personal interests and try to master that. I personally wanted to master the craft of bartending so that’s the path I took. Employees should never be scared if they’re interested in growing with the brand.”

Harmful Beliefs in the Bar Industry

How you feel about the people you work with and/or work for can have major impacts on your overall mindset.

If your daily thoughts regarding your team are negative, it suddenly becomes very challenging to create a successful bar with a team who shows up wanting to do their best each and every day.

The bar industry has a few specific common harmful beliefs that are prevalent in many establishments. Being aware of these and knowing what to do with these beliefs to change them is critical to creating a more positive work environment.

Paranoia

When I asked Jared what one of the most prevalent harmful beliefs operators have about their team, he discussed the belief that everyone is taking advantage of you. Many owners believe that everyone is stealing from them.

“In all of my years working in bars and restaurants there was always this sense that employees would be taking money from them or pouring ‘free products’ off to their friends/family. Truth be told, it happens, but I think that employees wouldn’t do that if they were offered a simple ‘comp tab.’

“I’m not saying that offering a free drink here and there to a friend is right, but I think for an owner to say, ‘Buy your friends a drink every now and then to show you appreciate them coming here,’ is a nice gesture.

“I’ve worked in places where owners are transparent, honest, and trustworthy with their employees, and the employees are happy so they don’t go behind the owner’s back. I think ownership needs to be realistic and give back to their employees and visitors every now and then, because that will boost morale.”

Feeling Unappreciated

When it came to harmful beliefs that staff have about ownership, Jared shared that employees feel that ownership does not care about them. While in some cases these beliefs may unfortunately be valid, in many cases owners may just be legitimately unaware that there are issues or concerns that need to be addressed.

“A lot of hospitality employees don’t feel appreciated by their bosses. Employees often feel like they can’t have a voice. Sometimes owners are so tied up in everything else to maintain the business and they won’t recognize you unless you speak up and engage in conversation over frustrations. Staff members need to not overstep their boundaries, but if there is something that could potentially move the business forward, express your concern.

“I’ve always had a good relationship with owners because I try to throw out ideas they don’t see, and come up with a potential solution to an issue. Owners don’t know everything and a lot of time are caught up in the day-to-day business. You were hired there for a reason: because they trust you to do a good job.”

Moving Forward

Understanding the importance of cultivating and maintaining positive, growth mindsets will allow you to move forward with your team towards shared goals and dreams.

Nobody wants to hate where they work, and with commitment to tackling challenges and harmful beliefs, this won’t be likely to happen.

So, what positive changes have been incurring in the industry as a whole?

“Simple things. Team-building events, like a picnic, an annual dinner to celebrate the staff, a field trip to a farm, quick getaways, etc. When the ownership/management team gives back to their team they end up enjoying coming to their second home everyday.

“Ensuring there are appropriate breaks during the long days, and potentially offering a ‘family meal’ to boost energy and give them food they might not be able to afford at home. Promoting ‘in-house’ competitions, such as the person who has the best wine sales at the end of the week gets a free bottle of wine. Leveraging different companies—spirits, wine, food purveyors—to do in-house demos and educationals. Allowing the staff to be hands on and learn something that will provide value to their personal growth.

“With less and less people choosing to take the hospitality path, it creates a lack of talent or people willing to roll up their sleeves and do the work. That’s why it’s important that the venue gives back every once and awhile.”

Room for Improvement

Although we’re starting to see more awareness of the well-being of those working in this industry, there are still many changes that need to happen.

“There needs to be sustainable and livable wages established universally amongst staff. With a world of inflation and prices on everything sky-rocketing, people are not going to be able to work in this industry and survive.

“There needs to be more meetings amongst staff to ensure that everyone has a voice and that everyone is on the same page when it comes to their jobs. There are a lot of mental health issues to this day because the hospitality industry is a crazy, tangled-up web when there is no guidance and good leadership. Our industry still has substance abuse issues, with people self-medicating with drugs and alcohol to help numb their pain, in addition to consuming too much caffeine to stay afloat.

“There needs to be more support and coaching programs available to new operators—similar to what we offer through KRG—to ensure they understand what they are signing up for. Education, leadership, guidance, inspiration, and providing a great work/life balance need to be a primary focus. Out with the 70-hour work week—back to a sustainable work timetable.”

Final Thoughts

Winning mindsets create winning concepts and winning teams. Having a positive mindset doesn’t mean that you don’t experience challenges or that you don’t experience any negative feelings. We are all human; of course we are going to have negative thoughts now and again.

It’s what you choose to do with those thoughts. If you allow them to become your predominant attitude, that will determine your overall mindset. The bar industry may have it’s challenges but it is also a place of excitement, entertainment, and creativity, a hub for social interaction with a never-ending hum of humanity.

I’ll leave you with a few last words of wisdom from KRG’s master mixologist Jared Boller.

“Understand that every day is going to be different than the previous, and you have to constantly adapt to what’s being thrown at you. If you’re not adaptable and can’t bend to spontaneous requests you might find yourself going into a dark space. Know that everyone is different, with unique upbringings and alternative perspectives on life. You are not always right, nor are they.

“Establish your rules in this bar environment. Educate yourself so you know more than everyone else in the room about your business and your craft, and open your mind to learning new things. Don’t be a know-it-all because that’s just downright annoying.

“And, finally, my rules that I live by behind a bar: ‘If someone wants to speak religion, decline. If someone wants to get your beliefs on politics, decline. And when a woman asks you their age, don’t answer, or politely decline.’ Everything else is an open conversation.”

Cheers to personal and professional well-being!

Image: Rachel Claire on Pexels

July 4, 2023by David Klemt David Klemt No Comments

5 Books to Read this Month: July 2023

5 Books to Read this Month: July 2023

by David Klemt

Our inspiring and informative June book selections will take your front and back of house to the next level, and help develop your leadership skills.

To review the book recommendations from June 2023, click here.

Let’s jump in!

Sugar Shack Au Pied de Cochon (Cabane à Sucre Au Pied de Cochon)

This is the English-language edition of the 2012 World Gourmand Book of the Year. You can pick it up at Amazon via this link, but it will cost you over $150 to do so. So, here’s the link to the book from the Au Pied de Cochon online store.

Those who have read this book describe it as one part recipe book, one part art piece. It’s difficult to categorize this book at all, really. It’s a journal, a recipe book, a culinary masterpiece, and a collection of scientific knowledge. In less than 400 pages, Martin Picard chronicles a year in the life of his restaurant, and shares 100 recipes and 2000 photographs, along a depth of culinary information, the value of which can’t be overstated. Pick it up today or find it at a library if you can.

Catching Fire: How Cooking Made Us Human

If you look at your role in foodservice as more than just a paycheck, you already view cooking as important. It has real value and inspires you, stoking your passion for this business. But what if the importance of cooking is beyond just “important”? What if it’s directly responsible for human evolution? This book by anthropologist and primatologist Richard Wrangham puts forth and defends this evolutionary theory.

From Amazon: “In a groundbreaking theory of our origins, Wrangham shows that the shift from raw to cooked foods was the key factor in human evolution. When our ancestors adapted to using fire, humanity began. Once our hominid ancestors began cooking their food, the human digestive tract shrank and the brain grew. Time once spent chewing tough raw food could be used instead to hunt and to tend camp. Cooking became the basis for pair bonding and marriage, created the household, and even led to a sexual division of labor.

“Tracing the contemporary implications of our ancestors diets, Catching Fire sheds new light on how we came to be the social, intelligent, and sexual species we are today. A pathbreaking new theory of human evolution, Catching Fire will provoke controversy and fascinate anyone interested in our ancient origins – or in our modern eating habits.”

The Subtle Art of Not Giving a F*ck: A Counterintuitive Approach to Living a Good Life

If you prefer your self-improvement and leadership books coated in gobs of sugar and wrapped in sheets of positivity, prepare for a shock. Author Mark Manson isn’t a sunshine, daisies, unicorns, and lemons-to-lemonade type of person. Instead, Manson thinks people need to toughen up and learn how to simply deal with being handed lemons. However, this isn’t a nonstop punch to the gut or blast to the chops. Rather, Manson wants people to change their mindset and focus on what should matter.

From Amazon: “Manson makes the argument, backed by both academic research and well-timed poop jokes, that improving our lives hinges not on our ability to turn lemons into lemonade but on learning to stomach lemons better. Human beings are flawed and limited – “not everybody can be extraordinary; there are winners and losers in society, and some of it is not fair or your fault”. Manson advises us to get to know our limitations and accept them. Once we embrace our fears, faults, and uncertainties, once we stop running and avoiding and start confronting painful truths, we can begin to find the courage, perseverance, honesty, responsibility, curiosity, and forgiveness we seek.

“There are only so many things we can give a f*ck about, so we need to figure out which ones really matter, Manson makes clear. While money is nice, caring about what you do with your life is better, because true wealth is about experience. A much-needed grab-you-by-the-shoulders-and-look-you-in-the-eye moment of real talk, filled with entertaining stories and profane, ruthless humor, The Subtle Art of Not Giving a F*ck is a refreshing slap for a generation to help them lead contented, grounded lives.”

Pick this book up here!

Samsung Rising: The Inside Story of the South Korean Giant That Set Out to Beat Apple and Conquer Tech

During a recent team meeting, KRG Hospitality executive chef and culinary expert Nathen Dubé recommended this book. And while it’s the story of a massive corporation, it doesn’t read like a collection of boring essays. Rather, Samsung Rising is the true story of a family-run business that has grown from 40 employees to more than 300,000. After taking big risks and committing to building a technology empire, Samsung has nearly doubled in size in comparison to rivals Apple and Google. However, the road to creating a dynasty has been anything but smooth.

From Amazon: “Forty years ago, Samsung was a rickety Korean agricultural conglomerate that produced sugar, paper, and fertilizer, located in a backward country with a third-world economy. With the rise of the PC revolution, though, Chairman Lee Byung-chul began a bold experiment: to make Samsung a major supplier of computer chips. The multimillion- dollar plan was incredibly risky. But Lee, wowed by a young Steve Jobs, who sat down with the chairman to offer his advice, became obsessed with creating a tech empire. And in Samsung Rising, we follow Samsung behind the scenes as the company fights its way to the top of tech. It is one of Apple’s chief suppliers of technology critical to the iPhone, and its own Galaxy phone outsells the iPhone.”

Grab Samsung Rising today.

Salt & Straw Ice Cream Cookbook

Recently, we had the opportunity to attend a pre-opening event for the first Las Vegas location of Salt & Straw. Those who have visited a Salt & Straw ice cream shop know how creative the brand is when it comes to flavors. We also found their team’s service to be impeccable.

The Salt & Straw Ice Cream Cookbook, as you may imagine, shares the brand’s recipes. Impressively, these all spring from a “base” recipe that takes just five minutes to make. This recipe book should help to inspire your own desserts.

From Amazon: “Based out of Portland, Oregon, Salt & Straw is the brainchild of two cousins, Tyler and Kim Malek, who had a vision but no recipes. They turned to their friends for advice—chefs, chocolatiers, brewers, and food experts of all kinds—and what came out is a super-simple base that takes five minutes to make, and an ice cream company that sees new flavors and inspiration everywhere they look.

“Using that base recipe, you can make dozens of Salt & Straw’s most beloved, unique (and a little controversial) flavors, including Sea Salt with Caramel Ribbons, Roasted Strawberry and Toasted White Chocolate, and Buttered Mashed Potatoes and Gravy.

“But more importantly, this book reveals what they’ve learned, how to tap your own creativity, and how to invent flavors of your own, based on whatever you see around you. Because ice cream isn’t just a thing you eat, it’s a way to live.”

Image: Mikołaj on Unsplash

January 16, 2023by David Klemt David Klemt No Comments

5 Toxic Mindsets that Hinder Success

5 Toxic Mindsets that Hinder the Success of Your Business

by Jennifer Radkey

Your frame of mind matters, and if you want a team and business that’s thriving and growing, it’s time to examine your own mindset.

How you show up day to day in your business and in your life will either hinder or promote your success. Like the popular phrase goes, “It starts from the top.”

You can set the tone for the day with the energy you bring. As Anese Cavanaugh, author of the book Contagious You, states, “Whatever we put out there and whatever we take on affects our ability to influence, lead, and create the impact we want.”

A positive mindset is contagious: it can inspire, motivate, and make others feel good. A toxic mindset is equally as contagious: it can halt growth, increase unhappiness, and lower productivity.

Here’s a list of five toxic thoughts that lead to a negative mindset and can hinder success.

Blame Game

Always looking for someone else to lay the blame on when things go wrong is a surefire way to a toxic team environment. If you’re quick to blame others when things go wrong, perhaps it’s time to take a step back and examine why something went wrong in the first place.

Was there inadequate training provided? Are there no clear systems to follow? Do you have an environment that’s hostile to asking for help? Fault rarely lies in one person only; there are typically several factors in play.

A positive mindset will examine facts, look at all potential causes, and then come up with solutions. Blame never enters the picture.

Second Guessing

Not being confident in the choices you make hinders growth. Uncertainty in your decision making leads others to question or doubt your role as leader.

If you don’t have the utmost confidence in making decisions, and it’s your business, how can you expect your team to have confidence in you or the work that they do?

This doesn’t mean that you have to make snap decisions without thinking them over. Planning and deliberating over the right move to make is critical to success. But once the decision is made…it’s made. If it doesn’t work out you can then problem solve to get back on the right path.

Second guessing your decisions along the entire way is only going to slow you and your business down.

Absolutism

“It’s my way or the highway.” Absolutism is the inability or refusal to consider others’ ideas. This toxic thought process destroys team culture and growth.

As an owner, you’re heavily invested in your business. Therefore, it can be challenging to let go of how you think things should be done and consider different approaches. However, failing to listen to the ideas of others on your team will build walls and possibly create resentment. That’s definitely not a positive atmosphere to work in.

Be open-minded to doing things differently and show interest in the recommendations of others to promote instead of hinder success.

Hyper-negativity

Sometimes when you want to succeed it’s easy to zone in on the negatives: “This isn’t good enough.” “We aren’t making enough money.” “We don’t have enough followers online,” etc.

The desire to do well can make you hyper-focused on what isn’t right in order to fix it, instead of noticing what’s really great and celebrating that instead. Yes, you need to be aware of areas that need improvement, but you also need to be equally aware of the positive and promote it.

Think of a conversation with two random people you meet at a party. The first person grumbles about the weather, complains about the food, music, etc., and scowls. The second person is smiling, laughing at jokes, and genuinely interested in getting to know you.

Who would you rather be around?

Settling for Average

Nothing will kill growth and success faster than settling for the way things are because “that’s the way it’s always been,” or because “it’s working.” You want more than just “it’s working.”

You want to thrive, to make more money, to gain more followers, to hire more team members, to open more locations. If you aren’t living your absolute best life, if your business isn’t performing at its absolute highest level, then there should be no settling.

Settling for average teaches your team to settle for average, and that means your customer is settling for average. Avoid this toxic mindset by continuously setting goals (even small ones) and looking for ways to do better, feel better, and be better.

While it’s completely normal to fall into these toxic thoughts from time to time, it’s refusing to allow them to become you daily mindset that’s important.

The amazing thing about the human mind is that it can be changed—you can work on improving your mindset. Trust me when I say that you will not regret it.

Cheers to professional and personal growth!

Image: Nathan Dumlao on Unsplash

December 9, 2022by David Klemt David Klemt No Comments

Starting a Business? Consider These States

Want to Open a Business in 2023? Consider These States

by David Klemt

If you’re considering opening a restaurant, bar, nightclub, eatertainment venue, or hotel in 2023, you should consider these states.

As it turns out, according to Forbes, one state is the home to a major KRG Hospitality market: Philadelphia.

Per Forbes Advisor, Pennsylvania is among the top five states for starting a new business next year. In fact, the Keystone State ranks number four.

To make their list, Forbes analyzed all 50 states through the lens of five categories:

Business costs
Business climate
Economy
Financial accessibility
Workforce

Within those categories, Forbes examined 18 metrics. The result, as already stated, is that just three states rank ahead of Pennsylvania for this Forbes list.

Top 25 States to Start a Business in 2023

Below you’ll find how the top half of the list shakes out. Indiana, Colorado, and North Dakota claim the top positions. A low cost of living and “a business-friendly climate” put Indiana in the number-one spot.

One interesting reason that Pennsylvania ranks comes down to funding for entrepreneurs. Per Forbes, “total small business loan funding in Pennsylvania is double that of the national average.”

Washington
West Virginia
Rhode Island
Idaho
Utah
Wisconsin
South Carolina
Virginia
Hawaii
Mississippi
Missouri
New Hampshire
Massachusetts
California
Connecticut
Delaware
Ohio
Illinois
Montana
North Carolina
South Dakota
Pennsylvania
North Dakota
Colorado
Indiana

However, the list above is interesting for another reason: the recent addition of consultant Kim Richardson to the KRG Hospitality team. Not only is Kim representing our Philadelphia, Pennsylvania, office, she’s our rep for the Northeastern region of the United States.

That means she’s serving Connecticut, Delaware, Maine, Massachusetts, New Hampshire, Maryland, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont. Or, put another way, Kim is representing KRG in six states on the list above. (Pennsylvania is in bold above, while the other Northeastern states on the list she’s representing are in italics).

Proceed with Caution

Now, a word of reason and caution. Just because someone tells you that a particular state or city is the best place for your business doesn’t mean success will follow automatically.

It really doesn’t matter how great the idea for your concept happens to be—long-term success in this industry takes hard work. And that work starts with the planning phase.

So, no, you can’t just throw a dart at the Northeastern states or a map of one of the states on this list and open your restaurant, bar, or hotel there. Site selection involves more than contacting a commercial real estate agent, viewing a few locations, and signing a lease.

There’s a long list of tasks that you must complete in the planning stage before you ever open your doors. An in-depth feasibility study, a KRG Hospitality specialty, identifies the best location for a specific concept. In actuality, the feasibility study includes several smaller tasks that must be completed.

Again, this is simply to determine the best place for a particular concept. There are many other tasks you must complete, each of which KRG is here to help you accomplish.

So, while this list is interesting, there’s much more for your consideration.

The Bottom 10

Since I know you’re curious, below you’ll find the ten states that represent the tail end of the Forbes list:

New York
New Mexico
Vermont
Michigan
Oregon
Florida
Nevada
Kentucky
Oklahoma
Kansas

Now, another word of caution. These states rounding out the list of 50 doesn’t mean they’re “the worst” for starting a business.

In fact, we’ve had great success in Florida, as one example. So, take this list with a grain of salt: there’s much more to consider for a hospitality concept to give it the best odds of success in any market.

Image: Dan Mall on Unsplash

May 16, 2022by David Klemt David Klemt No Comments

How Big Brands Can Help Small Brands

How Big Hotel Brands Can Help Small Hospitality Brands

by David Klemt

The intriguing topic of big hotel brands helping smaller hospitality businesses grow came up during HD Expo 2022.

Several speakers spoke about serving and improving local communities. However, established brands can also help local business communities.

Job creation can take place outside of a big brand’s four walls, for example. But going even further, smaller independent brands can also receive a lift from big brands.

As we all grapple with what business can be moving forward, some in hospitality are proposing operating with a purpose.

Conversations Help

Everyone with several years of experience in this industry has seen some things. That’s putting it lightly, most likely.

That is to say, hospitality professionals gain metric tons of useful experience working in this industry. As we know, experience and knowledge are incredibly valuable in business.

Great mentors help others by sharing their knowledge with others. They gain that knowledge—at least in part—through experience. That means that time is truly invaluable.

So, when’s the last time you shared your knowledge with someone outside your business’ four walls?

Damon Lawrence is the co-founder of Homage Hospitality, the first Black-owned hotel brand. As he said during HD Expo 2022, honoring and engaging a given community requires time and effort. This includes engaging with the community’s business owners.

According to Lawrence, just mentoring people and providing what you’ve learned in this industry for free can help small businesses.

Now, it may sound too simple to say that sharing information is enough to help a small operator. However, what seems like a small nudge in the right direction can be powerful.

It may seem inconsequential to an established, large brand operator or executive. But you may be holding the piece of the puzzle that will show a smaller operator their next step.

Giving someone a few moments of valuable time can lead to a flourishing local business community, which in turn helps the community at large thrive.

Active Development

The managing director of Horwath HTL, Todd Wynne-Parry, pointed out the old hotel and resort model during HD Expo 2022. For decades, the approach was to keep each guest on property for as much of their stay as possible.

Now, as Wynne-Parry says, the aim is to encourage guests to explore the areas surrounding hotels and resorts.

With that in mind, hotel groups and designers are seeking to create destination properties. Almost by default, that requires the community to become a destination as well.

As far as Crystal Vinisse Thomas, a VP at Hyatt Hotels, is concerned, that means global hospitality brands need learn to work with small businesses.

If a hotel brand really wants to engage the community, featuring local brands is a powerful strategy. Doing so not only resonates with locals, it provides a more authentic experience for travelers.

However, meeting the demands of a hotel can prove daunting for a small business. So, while it may seem like a great idea to design a space for a local coffee shop to operate out of, they may not be able to afford the initial outlay.

Vinisse Thomas recommends big hotel brands lower the cost of entry for small businesses to work with them.

Larger brands can also actively help accelerate the growth of small businesses. If a big hotel brand isn’t interested or capable of acting as an incubator, they can still help entrepreneurs.

Again, removing barriers to entry or lowering the costs of entry is a great start. Hotel brands can also create grant programs to develop smaller hospitality businesses.

There was a lot of talk about community during HD Expo 2022. Global brands need to take the next steps to ensure it wasn’t all talk.

Image: Samson on Unsplash

February 2, 2022by David Klemt David Klemt No Comments

5 Books to Read this Month: February ’22

5 Books to Read this Month: February ’22

by David Klemt

This month’s fun and informative book selections will help you develop next-level culinary, beverage and leadership skills throughout 2022.

To review January’s book recommendations, click here.

Let’s jump in!

Greenlights

Published originally in 2020, Matthew McConaughey’s Greenlights is already experiencing a resurgence. McConaughey has been writing in diaries for decades and sat down with them to write this memoir that shares lessons he’s learned, stories about what he has experienced over the course of more than 40 years, and more. In his own words, Greenlights addresses how to be fair, have less stress, have fun, hurt people less, get hurt less, be a good person, have meaning in life, and how to be more yourself.

“It’s also a guide to catching more greenlights—and to realizing that the yellows and reds eventually turn green too.”

Setting the Table

Danny Meyer’s modern classic Setting the Table was published nearly 15 years ago. It’s an award-winning masterpiece and considered by some to be the best restaurant business book ever written. On episode 64 of the Bar Hacks podcast, CEO and Master Blender Neil grosscup of Tanteo Tequila mentions this book. So, I decided it was time to revisit Setting the Table and encourage those who haven’t yet to read it.

The New Craft of the Cocktail: Everything You Need to Know to Think Like a Master Mixologist

Dale DeGroff, for those who don’t know, is credited with kicking off the modern cocktail craze. He’s a legend, an icon, and an ambassador for bartenders and the hospitality industry. Released toward the end of last year, The New Craft of the Cocktail is an update of DeGroff’s 2002 book The Craft of the Cocktail. Inside are new photographs, updates to the history of the cocktail, and 100 new drink recipes.

The Unofficial Disney Parks Drink Recipe Book

Look, it has been an overwhelming two years. And we’re still in that overwhelming situation. That is to say, we can all use a smile wherever we can get it. That goes for drink menus, too. Enter, The Unofficial Disney Parks Drink Recipe Book. It may be unofficial but the recipes are fantastic, offering whimsy, nostalgia, and wow factor. There are over 100 recipes in this best-selling book, including cocktails and zero-proof drinks.

The Velocity Mindset

If you want to become a better leader, you need to change your mindset. That may sound drastic but developing simple habits like visualizing a specific outcome can improve your leadership skills. The Velocity Mindset shares Ron Karr’s “innovative and practical strategies to differentiate yourself from the competition, increase your profits, and get to the next level of success, faster.”

Image: Mikołaj on Unsplash

December 17, 2021by David Klemt David Klemt No Comments

What Does Omni-channel Mean?

What Does Omni-channel Mean in Hospitality?

by David Klemt

Buzzword or professional jargon, the term “omni-channel” seems to come up more often as our industry embraces more innovations.

As more social and digital platforms (channels) pop up, your job as marketer becomes more complex.

For a pessimistic take, your marketing efforts are like a ship. Every new marketing channel that gains traction is like a hole you have to plug. Fail to do so and you risk your marketing ship sinking.

Now for an optimistic take. Every channel you can add to your marketing is an opportunity to grow your reach. Increasing the amount of people who become familiar with your brand represents the potential to grow loyalty and sales.

If you want to meet your guests where they are—and you should—you need to have a presence where they are to engage with them.

And that’s just marketing. There are also omni-channel operational tactics you can implement. Unsurprisingly, you’ll likely realize many of those solutions are also digital.

So, what does “omni-channel” mean for operators? It means offering seamless guest experiences pre-, per- and post-visit.

Staying top of mind is also an element of an omni-channel strategy.

Traditional Channels

In terms of marketing, let’s break down the different types of channels available to operators.

A simple way to look at “traditional” marketing channels is that they don’t leverage digital mediums:

Newspaper and magazine ads
Radio and television ads
Direct mail
Billboards
Vehicle wraps
Flyers

Now, some of the above may seem outdated. However, those channels still have reach.

The key is knowing your brand and audience to know if a traditional channel will deliver an ROI. You also need to take the time to figure out where your dollars and time are best spent.

Digital Channels

So, there’s a reason I put the word traditional in quotation marks in the previous section.

There may be a time when digital channels become so ubiquitous that they’re considered traditional.

Just look at the digital channels below and consider how commonplace they’ve become:

Social media
Email marketing
Company websites
Search engine marketing
Newsletters
Text messages

It’s easy to see how one day the channels above will overtake their non-digital counterparts and become the traditional way we market.

The reasons for this are obvious. Digital campaigns are easily measurable, they allow for incredibly specific targeting, and they tend to be more engaging.

Really, the biggest cons that pertain to digital marketing channels are: being viewed as annoying/intrusive; being lost in the sea of ads people encounter every day.

On the execution side, it can still be overwhelming to engage just in social media marketing. However, there are platforms that can help make this task less daunting.

Other Channels

Like I wrote earlier, omni-channel doesn’t only pertain to marketing.

Of course, the term and practice are most often associated with marketing. However, operators have more to think about to truly become omni-channel.

The way your guests interact with your restaurant are also channels. Your front-of-house staff is a channel, technically speaking.

Now, we all know that the pandemic forced operational changes. Many of those changes are here to stay.

So, let’s look at a potential guest journey:

The potential guest receives a promotional offer via email.
They follow the link to an online reservation platform.
After arriving at the restaurant with their party, they check in with the host in person.
The server greets the party, some of whom request a physical menu. Others in the party pull out their phones and access the menu via QR code.
Throughout the meal, the server touches the table to ensure the visit is going well, refill drinks, take additional drink orders, etc.
When it’s time to pay, the party quietly does so via a touchless option and leaves.
A follow-up email is sent for feedback.
After a number of days, a text message is sent out to encourage another visit.

The marketing channels are just one element that makes the hypothetical restaurant an omni-channel operation. Providing digital, touchless menu access and payment are also omni-channel elements.

Those are just a few examples. If you take the time to review your operations; where you can reach new and repeat guests; threats such as third-party delivery; and innovations you can implement, you’ll see where you can make changes to become an omni-channel restaurant.

Image: Dan Gold on Unsplash