Cafe

Margarita with dehydrated citrus garnish
by David Klemt David Klemt No Comments

Top 2022 Grubhub & Uber Eats Drinks

Top 2022 Grubhub and Uber Eats Drink Orders

by David Klemt

Margarita with dehydrated citrus garnish

The year-end Grubhub 2022 Delivered and 2022 Uber Eats Cravings reports identify this year’s delivery order drink trends.

Last week, we dove into Grubhub and Uber Eats’ top food orders. If you haven’t already, read that article here.

This week we’re going to check out what drinks were most popular in 2022 for both platforms.

Top Grubhub Coffee Orders

People are still working from home, full- or part-time. So, it makes sense that consumers are placing coffee orders for breakfast, snack, and lunch dayparts.

  1. Iced Coffee
  2. Hot Coffee
  3. Iced Caramel Coffee
  4. Iced French Vanilla Coffee
  5. Frozen Coffee

Top Grubhub Milk Alternatives

Of course, with coffee orders come milk orders. And as you’re probably well aware, milk alternatives are only growing more popular with consumers.

So, below are the top milk alternatives among 2022 Grubhub users.

  1. Oat Milk
  2. Almond Milk
  3. Coconut Milk
  4. Soy Milk
  5. Cashew Milk

As a possible explanation for the dominance of oat milk, sustainability could be a driver. According to available data, producing a pound of oats is much more sustainable than producing one pound of almonds.

It’s believed that oats are more favorable when it comes to basically every measure of sustainability.

Top Grubhub Alcohol Orders

I can’t say that I’m shocked to find the Margarita is the top cocktail order. It is, after all, the long-reigning Queen of Cocktails.

  1. Beer
  2. Margarita
  3. Hot Sake
  4. Piña Colada
  5. White Wine (Sauvignon Blanc)

I’ll admit that I’m slightly surprised that a red wine isn’t among the top five.

Top Uber Eats Alcohol Orders

Interestingly—perhaps a bit frustratingly—Uber Eats took a different approach to identifying their top drinks.

Rather than dedicating space solely to alcohol orders, their top drinks are part of combinations. As in, the “most frequently paired food + alcohol” combos.

So, here’s their list in its entirety:

  1. Steak + Margaritas
  2. Pizza + White Claw
  3. Burritos + Margaritas
  4. Chicken + Sangria
  5. Wings + Beer

However, there’s another drink in the Uber Eats “most unexpected food combos” section:

  • Ham + Cream Cheese
  • Fruit Roll Up + Hot Cheetos
  • Pickles + Whipped Cream
  • Popcorn + Pickle Juice
  • Dark Chocolate + Tomato Salad
  • Pizza + Applesauce
  • Sushi + Ranch
  • Peanut Butter + Pizza
  • Cheese + Martinis
  • Watermelon + Mustard

Therefore, we can reasonably extrapolate that the top 2022 Uber Eats alcohol orders are the Margarita, White Claw, Sangria, beer, and Martini.

Takeaway

If we compare reports and look for similarities, we see that two drinks are at the top: beer and Margaritas.

Both make sense. Beer, in can, bottle, and growler forms, travels very well. That makes beer ideal for delivery where it’s legal.

And as far as Margaritas go, there’s a wide array of canned options available. Again, canned cocktails travel well for delivery. Of course, restaurants and bars can also obtain the equipment to prebatch and package their signature Margaritas.

Ideally, your POS system can run reports to identify which drink orders are most popular for your delivery customers. Also ideal: operators should take as much control over their business as they can, implementing direct delivery as long as it’s feasible.

So, look into direct delivery, run your reports, and take more control while reducing costs.

Image: Edward Howell on Unsplash

Boxer being knocked back by punch
by David Klemt David Klemt No Comments

FAST Act Dealt Knockdown Blow

FAST Act Dealt Knockdown Blow

by David Klemt

Boxer being knocked back by punch

A bill we think is one to watch, California’s Fast Food Accountability and Standards Recovery Act, may be on the ropes already.

Assembly Bill 257, known as the FAST Act, is “on hold” until 2024. So, while the Save Local Restaurants coalition and voters have yet to kill the bill, it may be out on its feet.

We reported two months ago that fast food chains were moving quickly to kill the FAST Act. It appears that the initial attack on AB-257 was successful.

That is, the chains and coalition got what they want: the ballot initiative vote has knocked down AB-257.

For those unfamiliar with the Save Local Restaurants Coalition, the following organizations are members: The National Restaurant Association (NRA), US Chamber of Commerce (USCC), and International Franchise Association (IFA). Further, fast-casual and QSR chain coalition members—including Starbucks, In N Out, McDonald’s, and Chipotle—threw nearly $13 million at the ballot measure that halted FAST.

What’s FAST?

To read AB-257, the FAST Act, in its entirety, click here.

In summary, FAST:

FAST does the following:

  • establishes the Fast Food Council, ten members appointed by the Governor, the Speaker of the Assembly, and the Senate Rules Committee. The council will operate until January 1, 2029;
  • defines “the characteristics of a fast food restaurant“;
  • gives the Fast Food Council the authority to set “minimum fast food restaurant employment standards, including standards on wages, working conditions, and training“;
  • provides the council the power to “issue, amend, and repeal any other rules and regulations, as necessary”; and
  • allows the formation of a Local Fast Food Council by a county, or a city that has a population of more than 200,000.

Voters effectively stopped California from implementing FAST until November 2024 at the earliest. (That is, if the California Secretary of State verifies that the referendum effort did indeed secure the required amount of signatures.)

Opposition

A statement from Save Local Restaurants reads, in part:

The quick-service restaurants targeted by the law – which include coffee shops, juice bars, pizzerias, delis, and salad shops – already operate on small, single-digit profit margins. These include more than 10,000 small businesses, including thousands of women- and minority-owned businesses.

If these restaurants are forced to absorb the costs, the result will be bad for workers and local communities. To survive, many restaurant owners will have no choice but to reduce worker hours or introduce automation. Some may choose to leave their communities entirely or go out of business.

As is often the case with overreaching California policies, this is likely only the beginning.

Additionally, the National Restaurant Association, a member of the coalition, has said the following:

The impacts of the FAST Act won’t be limited to quick service restaurants in California. The law allows the new regulating council to set a higher minimum wage for quick service restaurants. Independent restaurants will, however, be forced to increase their pay to match, so they can remain competitive when recruiting and retaining workforce.

Takeaway

We believe this bill is one to watch because similar efforts could spring up in other states. Also, just because the bill is on hold until 2024 in California doesn’t mean other states aren’t working on similar legislation right now.

Now, there are obviously two sides to consider. Opponents, as we see above, say FAST will raise prices, eliminate jobs, and hurt families.

Proponents believe FAST will protect the health, safety, and welfare of fast-food workers. Additionally, the Fast Food Council could increase the minimum wage for fast food workers above California’s $15.50 minimum (effective January 1, 2023).

We’ll keep an eye on FAST over the next couple of years. Perhaps the coalition can work with California on a bill that protects fast food workers and doesn’t hurt operators and the communities they serve.

At any rate, FAST is down but certainly not yet out.

Image: Johann Walter Bantz on Unsplash

Single-use plastic straws and utensils
by David Klemt David Klemt No Comments

Canada’s Single-use Plastics Ban

How Canada’s Single-use Plastics Ban Affects Operators

by David Klemt

Single-use plastic straws and utensils

With a few exceptions, Canada’s ban on the manufacture, importation, and sale of single-use plastics is now officially in effect.

However, that doesn’t mean restaurant and bar operators need to worry about current inventories just yet. While the Single-use Plastics Prohibition Regulations are in effect, operators have a year to deplete their stocks.

SUPPR is a crucial element of Canada’s overall plan to combat pollution and reach a goal of zero plastic waste by 2030. The single-use plastics ban was announced in June of this year.

“We promised Canadians we would deliver a ban on single-use plastics. Today, that’s exactly what we’ve done,” said Minister of Environment and Climate Change Steven Guilbeault the day SUPPR was announced. “By the end of the year, you won’t be able to manufacture or import these harmful plastics. After that, businesses will begin offering the sustainable solutions Canadians want, whether that’s paper straws or reusable bags. With these new regulations, we’re taking a historic step forward in reducing plastic pollution, and keeping our communities and the places we love clean.

Now, six months later, it’s the law of the land.

What’s Banned?

Essentially, Canadian operators must evaluate everything they use for delivery and takeout or pickup. If any items are single-use plastic, they must be gone by December 2023.

Per SUPPR, the manufacture, importation, and sale of the following is prohibited:

  • Checkout bags designed to carry purchased goods from a business and typically given to a customer at the retail point of sale.
  • Cutlery includes:
    • knives
    • forks
    • spoons
    • sporks
    • chopsticks
  • Foodservice ware designed for serving or transporting food or beverage that is ready to be consumed, and that:
    • contains
      • expanded polystyrene foam
      • extruded polystyrene foam
      • polyvinyl chloride
      • carbon black
      • an oxo-degradable plastic
    • are limited to the following items
      • clamshell containers
      • lidded containers
      • boxes
      • cups
      • plates
      • bowls
  • Ring carriers are flexible and designed to surround beverage containers in order to carry them together.
  • Stir sticks designed to stir or mix beverages, or to prevent a beverage from spilling from the lid of its container.
  • Straws include:
    • straight drinking straws, and
    • flexible straws, which have a corrugated section that allows the straw to bend, packaged with beverage containers (juice boxes and pouches)

For accuracy, the above comes from the Government of Canada website directly, unedited.

What does this mean for Operators?

Again, operators in Canada don’t need to toss their current stock of the above items.

However, Restaurants Canada does recommend that operators contact suppliers and customers if they import, export, or sell prohibited items currently.

The single most important thing for operators to do now is research single-use plastic alternatives. Items need testing as changes will affect F&B items and the guest experience.

Of course, it’s possible an operator’s current supplier already offers alternatives to single-use plastics. That could prove convenient but costs, supply chain reliability, and impact on menu items need careful consideration.

Sustainability and responsible practices are no longer just conversation topics within the industry. As of this week, in Canada, they’re the only way forward.

Image: Volodymyr Hryshchenko on Unsplash

Burgers, French fries and milkshakes
by David Klemt David Klemt No Comments

Canada’s Top 2022 DoorDash Orders

Canada’s Top 2022 DoorDash Orders

by David Klemt

Burgers, French fries and milkshakes

Operators curious about the most popular delivery items in 2022 will be happy to learn that DoorDash’s year-end report is ready for viewing.

Those who want to compare it to predictions from several sources earlier this year can click here. The DoorDash Canada report can also be compared to consumer trends in Canada revealed back in October.

Before we jump in, I’m not detailing the DoorDash report in its entirety here. To review the entire report, please click here.

Instead, I’ll be sharing the top takeaways in terms of top menu items; top cuisines; and top items by province.

Speaking of provinces, a word to New Brunswick, Newfoundland and Labrador, Northwest Territories, Nova Scotia, Nunavut, Prince Edward Island, and the Yukon. Please don’t break out the pitchforks and come for me for not including you in this article. DoorDash’s report only covers data from six provinces—I didn’t leave you out intentionally.

Top DoorDash Cuisines in Canada

  1. American
  2. Mexican
  3. Japanese
  4. Thai
  5. Mediterranean
  6. Indian
  7. Chinese
  8. Italian
  9. Korean
  10. Filipino

Top DoorDash Items in Canada

  1. Burgers & Fries
  2. Fried Chicken
  3. Poutine
  4. Sushi Rolls
  5. Chicken Wings
  6. Burritos
  7. Chicken Rice Bowl
  8. Shawarma Wraps
  9. Curry
  10. Pad Thai

I think there’s one key takeaway that stands out in regards to this list. Notably, it appears that while chicken isn’t number one, it’s undeniably popular amongst Canadian DoorDash users.

In fact, according to DoorDash data, chicken reigns supreme in British Columbia. When you reach the province-specific sections below, you’ll see how powerful the cravings in BC are for chicken.

Top DoorDash Late-night Items

Again, chicken rules the DoorDash roost in this category.

  1. Chicken Nuggets
  2. Fries
  3. Poutine
  4. Chicken Wings
  5. Chicken Burgers
  6. Apple Pie
  7. Cheeseburger
  8. Spinach & Cheese Dip
  9. Chocolate Fudge Sundae
  10. Crispy Chicken

Top DoorDash Items: British Columbia

  1. Burrito Bowl
  2. Szechuan Chicken Lettuce Wraps
  3. Butter Chicken
  4. California Roll
  5. Crispy Chicken Sandwich
  6. Tofu Bowl
  7. Chocolate Chip Cookies

Top DoorDash Items: Ontario

  1. Cheeseburger
  2. Coffee
  3. Burrito Bowls
  4. Chicken Shawarma
  5. Crispy Chicken
  6. Bagels
  7. Pad Thai
  8. Beef Patty
  9. Pizza
  10. Onion Rings

Top DoorDash Items:Alberta

  1. Spinach and Cheese Dip
  2. Chicken Cheddar Sandwich
  3. Chilli Chicken
  4. Kale Salad
  5. Margarita Pizza
  6. Hot Apple Turnover

Top DoorDash Items: Québec

  1. Poutine
  2. Cappuccino
  3. Pad Thai
  4. Steak and Cheese
  5. Croissant
  6. Dumplings
  7. Chips
  8. Tacos

Top DoorDash Items: Saskatchewan

Interestingly, a beverage item holds the top spot in Saskatchewan.

  1. Bubble Tea
  2. Pepperoni Pizza
  3. Pork Bun
  4. Crispy Pork
  5. Garlic Bread
  6. Pasta

Top DoorDash Items: Manitoba

  1. Fries
  2. Butter Chicken
  3. Red Velvet Cake
  4. Poke Bowl
  5. Shawarma Wrap

As I stated in Wednesday’s article detailing Grubhub and Uber Eats’ reports for the US, we believe operators should take as much control over their restaurants and bars as possible. At KRG Hospitality, that means implementing direct delivery if it makes sense: ease of use, delivery capabilities, favorable costs, etc.

It’s also helpful to know what consumers in your area are craving and ordering. Such information can provide a useful baseline for many concepts’ menu development.

Image: John Fornander on Unsplash

Chef pointing burrito halves toward camera
by David Klemt David Klemt No Comments

Grubhub and Uber Reveal Top 2022 Items

Grubhub and Uber Reveal Top 2022 Items

by David Klemt

Chef pointing burrito halves toward camera

Grubhub’s 2022 Delivered and Uber Eats’ 2022 Uber Eats Cravings reports are live and there’s one surprise that’s immediately evident.

The top food item lists for both platforms make one thing clear right away: the chicken sandwich is no longer sitting on its throne.

Instead, as far as the data for these two delivery powerhouses show, there’s a new food item king. More compellingly, this menu item holds the throne on both platforms.

Now, I’m not suggesting the fried chicken sandwich is in the dungeon. In fact, the popular sandwich causing “wars” in the QSR space is still holdings it own. Indeed, the sandwich is still in the top five overall at Uber Eats.

Shockingly, it’s not in the top five overall at Grubhub. However, the fried chicken sandwich is among the top five Grubhub lunch and late-night orders.

So, which menu item wears the crown for 2022 in the kingdoms of Grubhub and Uber Eats? The burrito.

That’s awesome news for most operators. Much like the humble but mighty chicken sandwich, concepts can put their signature spin on a burrito. In fact, most concepts can put multiple signature spins on the new king of delivery items. One way to approach this would be to create a permanent signature and then seasonal LTOs.

Top 10 Grubhub Items

In 2022, the fried chicken sandwich only clinches the number seven spot at Grubhub.

Just like Uber Eats, cheeseburgers and pizza outperform the chicken sandwich.

  1. Burrito (bowl or regular)
  2. Cheeseburger
  3. Cheese Pizza
  4. Pad Thai
  5. Chicken Quesadilla
  6. California Roll
  7. Fried Chicken Sandwich
  8. Caesar Salad
  9. Chicken Tikka Masala
  10. Boneless Wings

Top 5 Grubhub Breakfast Items

  1. Sausage, Egg + Cheese Sandwich
  2. Donuts
  3. Sausage Burrito
  4. Bagel with Cream Cheese
  5. Muffins

Top 5 Grubhub Lunch Items

  1. Burrito
  2. Cheeseburger
  3. Fried Chicken Sandwich
  4. Cheese Pizza
  5. Chicken Quesadilla

Top 5 Grubhub Late-night Items

  1. Chicken Quesadilla
  2. Fried Chicken Sandwich
  3. Cheeseburger
  4. Mozzarella Sticks
  5. Cheese Pizza

As we see, the chicken quesadilla does some heavy lifting at Grubhub. The item holds the number five spot overall, at lunch, and during the late-night daypart.

Top 10 Uber Eats Combos

For their 2022 report, Uber Eats takes a different approach than Grubhub. Instead of just listing individual items, the platform identifies their top combos.

  1. Burrito + Cheese
  2. French Fries + Salt
  3. Cheeseburger + Diced Onions
  4. Chicken Sandwich + Fries
  5. Breakfast Sandwich + American Cheese
  6. Soup + Bread
  7. Pancakes + Sausage
  8. Pizza + Mozzarella
  9. Salad + Balsamic Vinaigrette
  10. Quesadilla + Sour Cream

Most “Unexpected” Uber Eats Combos

  • Ham + Cream Cheese
  • Fruit Roll Up + Hot Cheetos
  • Pickles + Whipped Cream
  • Popcorn + Pickle Juice
  • Dark Chocolate + Tomato Salad
  • Pizza + Applesauce
  • Sushi + Ranch
  • Peanut Butter + Pizza
  • Cheese + Martinis
  • Watermelon + Mustard

To read both reports in their entirety, click here for Grubhub and here for Uber Eats. There are more insights, including beverages and beverage combos.

Of course, longtime readers and our clients know where we stand on third-party delivery platforms. Ideally, operators should take as much control over their business as they can. For us, that means implementing direct delivery as long as it’s feasible and incurs lower costs than third-party.

We view delivery platform reports as menu development resources. It’s always wise to keep up to date on consumer and food trends, after all.

Image: Kamila Bairam on Pexels

2023 KRG Hospitality Milestone Checklist
by David Klemt David Klemt No Comments

The Major Milestones You Must Reach

The Major Milestones You Must Reach to Open a Restaurant

by David Klemt

2023 KRG Hospitality Milestone Checklist

Opening a restaurant is no small task, with projects requiring the completion of 500 unique tasks before welcoming guests.

KRG Hospitality president Doug Radkey identified these tasks several years ago. The commitment to systematically accomplish these tasks is a cornerstone of our approach to all projects.

Our feasibility studies, branding, concept and brand development, and programming are unique and customized to every client. However, the journey from idea to grand opening is a path dotted by hundreds of waypoints.

There’s a reason we call our project plans Roadmaps to Success: we’re here to help guide our clients to and through each waypoint on the map.

Below you’ll find just 50—just a tenth—of the unique tasks we at KRG believe you must complete before your grand opening. You’ll find more than 80 tasks in the brand-new 2023 KRG Hospitality Restaurant Start-up Cost Report + Checklist.

Both the list below and the checklist included in our free Restaurant Start-up Cost Report download will give you an idea of what we work on with each of our clients. These tasks should also highlight the enormity that is taking your concept from idea to brick and mortar.

To download your free copy of our 2023 Restaurant Start-up Cost Report + Checklist, click here.

Planning & Admin Tasks

  • Complete your project feasibility study.
  • Develop your concept and brand plan.
  • Develop and test a layout/drawing.
  • Complete a strategic business plan.
  • Complete a marketing and tech stack plan.
  • Finalize your start-up budget.
  • Analyze and secure necessary funding.

The Support Team Tasks

You’ll need to secure:

  • Business insurance broker
  • Business and liquor license attorney
  • Restaurant and bar consultant
  • Project manager
  • General contractor and trades
  • Mentor or coach

Site Development Tasks

When it comes to these tasks, you may have an idea of roughly what to expect.

For example, one necessary task is…securing your property of choice. Another task to cross off or set a check next to? Signing the lease.

But there are other tasks you may not anticipate or think of when planning to open a restaurant:

  • Submit drawings to municipality.
  • Start and manage project renovations.
  • Set a SMART opening date proposal.
  • Set up and submit deposits for utilities.
  • Develop your service sequence (flow).

You’ll also need to source the following:

  • Exhaust hood supplier
  • Millworker and specialty supplier
  • Interior and exterior signage company
  • Grease trap cleaning
  • Used oil pickup/recycling
  • Exhaust hood cleaning

Operations Development Tasks

  • Complete a kitchen workflow plan.
  • Complete service sequence analysis.
  • Source take-out container suppliers.
  • Secure security, sound, and video, plus applicable licenses.
  • Secure point-of-sale and tech Systems.
  • Develop recipe books for kitchen and bar.
  • Develop package of standard operating procedures.

Brand Development Tasks

Developing your brand involves much more than choosing a logo and colors.

Consider every design and service element a branding opportunity. Your brand development tasks will include developing:

  • your core statements;
  • graphic design/branding kit;
  • website and social media accounts;
  • a promo video strategy;
  • a “coming/opening soon” plan; and
  • your media strategy for the launch.

You’ll also need to:

  • complete the F&B concept stage;
  • complete the F&B testing stage;
  • source menu cover supplier (for dine-in version)
  • complete a photo shoot; and
  • plan for and execute a soft opening.

Team Development Tasks

  • Develop your staff hiring strategy.
  • Plan for and complete HR and compliance forms.
  • Develop onboarding manuals.
  • Source staff uniform suppliers.
  • Promote job fair or interview dates.
  • Hold a staff orientation night.
  • Execute a staff-building exercise shift.
  • Create a brand ambassador program.

Image: KRG Hospitality

United States Capitol Building exterior and Peace Memorial
by David Klemt David Klemt No Comments

Restaurant Tax Credit Support Grows

Bipartisan Effort for Restaurant Revitalization Tax Credit Grows

by David Klemt

United States Capitol Building exterior and Peace Memorial

One week after the Restaurant Revitalization Tax Credit Act introduction in the Senate, a companion bill is in play.

This time, the bill is a bipartisan effort. Representative Earl Blumenauer (D-OR) is the sponsor of HR 9574. Joining him are Reps. Brian Fitzpatrick (R-PA) and Dean Phillips (D-MN).

HR 9574 is nearly identical to the Senate version, S.5219. In fact, the only real difference relates to number of employees.

Restaurant Revitalization Tax Credit Act Summary

Just like the bill in Senate currently, the House of Representative bill proposes a $25,000 payroll offset for restaurants.

In terms of eligibility, HR 9574 is identical to S.5219: Restaurant Revitalization Fund applicants. More precisely, eligible applicants that applied for but didn’t receive an RRF grant.

Further eligibility requirements are as follows:

  • Restaurants with operating losses of at least 30 percent in 2020 and 2021 in comparison to 2019; or
  • restaurants with losses of at least 50 percent in either 2020 or 2021 in comparison to 2019.

If you’re familiar with the Senate’s version, which predates the House version by a week, you may be wondering about the difference between the two bills.

Well, it comes down to number of employees. For the Senate bill, restaurants with ten employees or fewer could be eligible for the maximum payroll tax credit. That credit, again, is up to $25,000 for 2023. For every employee over ten, the refund cap drops by $2,500.

However, the House bill approaches number of employees a bit differently. Restaurants with ten or fewer employees would receive the full $25,000 payroll tax offset. For restaurants with between 11 and 20 employees, the offset would be “partially refundable.”

A Lifeline

It’s likely that neither HR 9574 nor S.5219 will receive a vote until January 2023, at the earliest.

Of course, time is of the essence for our industry. This isn’t lost on Rep. Blumenauer—an author of the RESTAURANTS ACT of 2021—or his co-sponsors.

“Restaurants and their employees were hit harder than any other industry during the COVID-19 pandemic,” says Rep. Blumenauer. “The federal government has provided some help to these institutions through the Restaurant Revitalization Fund, legislation based on my RESTAURANTS Act. But the program has fallen short, with only one-third of all applicants receiving funding.”

To add to Rep. Blumenauer’s mention successful applicants, it’s estimated that more than 175,000 applicants haven’t received a grant.

Hope, as the saying goes, isn’t a strategy. But hopefully at least one of these bills is floored, voted on, and passed in January. Too many deserving restaurants have had to endure an agonizing series of RRF roller coasters.

To continue introducing bills—hope—just to watch them fail to go anywhere is becoming cruel at this point.

Image: Emily Studer on Unsplash

2023 KRG Hospitality Start-up Costs Guide
by krghospitality krghospitality No Comments

KRG Unveils 2023 Start-Up Guide

KRG Hospitality Unveils 2023 Restaurant Start-Up Cost Report + Checklist

2023 KRG Hospitality Start-up Costs Guide

KRG HOSPITALITY RELEASES FIFTH ANNUAL RESTAURANT START-UP COST REPORT + CHECKLIST

Toronto-based hospitality industry consulting firm with offices in key markets throughout Canada and the United States of America unveils their latest restaurant cost report, milestone checklist, and interactive hospitality calculator.

December 15, 2023 (TORONTO)—Today, KRG Hospitality unveils their 2023 Restaurant Start-up Cost Report + Checklist. The Toronto-based consulting firm specializes in startup restaurant and bar projects along with boutique hotels, experiential concepts, and entertainment venues. KRG also has offices in key markets throughout the United States of America.

For the past five years KRG has researched, reviewed, and published the annual start-up cost guide, one of the industry’s leading resources dedicated to restaurant project costing.

And each year this informative and transparent guide is used as a trusted budgeting tool by developers, lenders, contractors, consultants, and aspiring restaurateurs. The guide is founded upon KRG Hospitality’s proprietary database of previous project costs, which includes project data from restaurants, bars, and cafes developed over the past 24 months.

Further, this annual KRG Hospitality also includes a start-up checklist that identifies an array of crucial milestones: KRG president Doug Radkey has identified 500 unique tasks that must be completed for a successful restaurant opening.

This year’s checklist reveals a number of these crucial tasks. Updated for 2023, the guide also includes the interactive KRG Hospitality Calculator.

The costs to start a restaurant have been on a steady rise over the past 5 years. Major drivers are increases in inflation, interest, labor, construction, equipment. Of course, there are also the unique materials required to deliver a scalable, sustainable, memorable, profitable, and consistent on-premise, off-premise, or hybrid-style concept.

Drawing upon this comprehensive guide, an industry-leading expert has analyzed the information and provided a succinct and user-friendly summary of the findings for each major start-up category. This isn’t simply a couple of pages identifying a few costs. Rather, the fifth annual guide is a deep dive that provides real insight into what to expect in 2023.

The Checklist

As stated, there are 500 unique tasks an operator needs to complete over the course of developing and opening the doors to their concept.

To make it simple to navigate, the 2023 checklist is organized into sections: Planning & Admin, the Support Team, Site Development, Operations Development, Brand Development, and Team Development.

From starting off with the targeted, customized, and in-depth feasibility to planning and executing the soft opening, KRG identifies dozens of key milestones in this year’s guide.

Download your copy of the 2023 KRG Hospitality Restaurant Start-up Cost Report + Checklist today! Click here.

About KRG Hospitality

KRG Hospitality is a storied and respected agency with proven success over the past decade, delivering exceptional and award-winning concepts throughout a variety of markets found within Canada, the United States, and abroad since 2009. Specializing in startups, KRG is known for originality and innovation, rejecting cookie-cutter approaches to client projects. The agency provides clients with a clear framework tailored to their specific projects, helping to realize their vision for a scalable, sustainable, profitable, memorable, and consistent business. Learn more at KRGHospitality.com. Connect with KRG Hospitality and the Bar Hacks podcast on social: KRG Twitter, Bar Hacks Twitter, KRG Media Twitter, KRG LinkedIn.

Disclaimer

While using this guide helps develop a rough preliminary financial and strategic milestone plan, it is strongly recommended that you seek professional expert advice to provide you with a more precise, project specific estimate as each concept and market will be slightly different. KRG Hospitality Inc. is not responsible for any project that is not currently under contract within the company.

Image: KRG Hospitality
Tower Bridge in Sacramento, California
by David Klemt David Klemt No Comments

Top 10 US Metro Areas by Inflow, Q3 2022

US Metro Areas with Greatest Outflow and Inflow, Q3 2022

by David Klemt

Tower Bridge in Sacramento, California

Real estate brokerage Redfin identifies the top ten American cities in terms of inflow and outflow, according to Q3 data.

Interestingly, a quarter of people appear to be searching for homes in cities different from where they currently live. Also compelling: one state, per the brokerage’s data ending in the month of October, is a clear favorite.

Obviously, this is important data for operators to have. When it comes to labor and guest pool changes, inflow and outflow information can be quite useful.

Top Inflow Cities: August to October 2022

Review the list below to see the metro areas experiencing the greatest inflow.

  1. Orlando, Florida
  2. Dallas, Texas
  3. North Port, Florida
  4. Cape Coral, Florida
  5. Phoenix, Arizona
  6. Tampa, Florida
  7. San Diego, California
  8. Miami, Florida
  9. Las Vegas, Nevada
  10. Sacramento, California

Did you spot the big trend? The state of Florida represents 50 percent of the list. Per Redfin‘s interpretation of the data, home buyers want leave expensive coastal cities behind.

Interesting to us in particular, two cities—Las Vegas and Orlando—are key KRG Hospitality markets. Also interesting is that Nevada and Florida are on the back half of Forbes’ best cities for starting a business in 2023.

However, we’ve seen strong hospitality industry recovery in Las Vegas this year. In fact, even the entertainment industry in Las Vegas is exploding. Additionally, we continue to gain clients in Orlando.

Top Outlow Cities: August to October 2022

Below are the metro areas seeing the greatest outflow.

  1. Philadelphia, Pennsylvania
  2. Seattle, Washington
  3. Denver, Colorado
  4. Detroit, Michigan
  5. Chicago, Illinois
  6. Boston, Massachusetts
  7. Washington, DC
  8. New York, New York
  9. Los Angeles, California
  10. San Francisco, California

If we compare Redfin’s Q2 data to the list above, it’s mostly the same. In fact, the top four outflow cities are identical. Spots five through nine are simply a reshuffling of Q2 and Q3 data.

However, Minneapolis, number ten in Q2, is replaced by Philadelphia in Q3. According to Redfin data, those Philly residents searching for homes elsewhere are showing interest in Salisbury, Maryland.

Consider how expensive it can be to move to and live in LA and San Francisco. It makes sense that California is the only state with two cities on the list above, doesn’t it?

Per Redfin, San Francisco residents are searching Sacramento and Seattle. Those in LA are looking at San Diego and Las Vegas.

Takeaway

It’s important to know where people are moving to and what cities they’re leaving behind. And it’s interesting to get a data-driven view of which states may be best for starting a business.

However, it’s far more useful to know how feasible a given ZIP code may be for a specific concept. So, while these types of lists are helpful, they’re not as practical as a targeted feasibility study.

Moreover, the dust doesn’t appear to have settled when it comes to migratory patterns of home buyers. It’s quite possible that Redfin’s 2023 inflow and outflow data will change once again in Q1 and Q2.

Image: Stephen Leonardi on Unsplash

US Capitol Building and cloudy sky
by David Klemt David Klemt No Comments

Is Restaurant Revitalization Back?

Restaurant Revitalization Back on the Table?

by David Klemt

US Capitol Building and cloudy sky

After watching the Restaurant Revitalization Fund die a slow, painful death earlier this year, three senators are trying to help the industry again.

Three Democratic senators seem to think that the RRF battle isn’t over. Senators Ben Cardin (D-MD), Sherrod Brown (D-OH), and Patty Murray (D-WA) are trying once again to help RRF applicants. As a refresher, Sen. Cardin is among the original RRF legislation authors.

Last Thursday, the senators introduced the Restaurant Revitalization Tax Credit Act. Now, before we get into the details, it appears this bill is a stop-gap of sorts. A statement from Sen. Murray suggests as much.

Per a statement from Sen. Muray, the “Restaurant Revitalization Fund left too many behind. I believe we need to replenish the Fund and will keep pressing to do so. Until that happens, bills like the Restaurant Revitalization Tax Credit Act will help keep restaurants afloat.”

It’s safe to say a significant number of operators prefer replenishment of the RRF to a tax credit. However, this could represent a step in the right direction.

The Restaurant Revitalization Tax Credit Act

For those with an interest in dissecting the bill, the text in its entirety is here.

In summary, here’s what Sens. Cardin, Brown, and Murray want to see become law: a payroll offset of $25,000. Of course, it’s not that simple—there are requirements and nuances.

First, the only eligible restaurants are RRF applicants who didn’t receive a grant. Second, the restaurant must prove:

  • operating losses of at least 30 percent in 2020 and 2021 in comparison to 2019; or
  • losses of at least 50 percent in either 2020 or 2021 in comparison to 2019.

Additionally, applicants must have been operating at least as far back as March 14, 2020. There’s also a payroll tax requirement: the applicant restaurant must have paid the taxes in at least two quarters in 2021. But wait—it doesn’t end there.

Restaurants with ten or fewer employees could offset a maximum of $25,000 in payroll taxes for the entirety of 2023. However, for every employee over ten, the refund cap drops by $2,500.

So, this bill appears to target very small operations for assistance. Assistance, we can only hope, that’s meant to help until the Senate and House replenish the RRF.

After all, Sen. Murray did say this bill—”bills like,” to be precise—is meant to “help keep restaurants afloat.”

It’s difficult to view this effort through anything but a skeptical lens given what happened earlier this year. And hope, as the saying goes, isn’t a strategy. But I suppose this bill represents a glimmer of hope that the estimated 175,000-plus RRF applicants who never received a grant may still get the help they deserve.

Image: J. Amill Santiago on Unsplash

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