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December 22, 2023by David Klemt David Klemt No Comments

2023 KRG Recap: Top Bar Hacks Episodes

2023 KRG Recap: Top Bar Hacks Episodes

by David Klemt

For your listening pleasure and convenience we’ve rounded up the top ten Bar Hacks episodes of 2023, also known as season four of the podcast.

Every year we reflect on the caliber of the guests who take time out of their busy lives to come onto the podcast. And every year we’re grateful for the honor of helping to share their stories and insights.

Below are the top ten Bar Hacks episodes of 2023. We’re presenting them in numeric order—no playing favorites here! To make it easy to enjoy these conversations, we’ve embedded the Spotify version of each episode.

And if you’re curious, these ten only just edge out the rest of this year’s episodes. We thank our loyal listeners for giving all of our guests and episodes a listen.

Cheers!

Episode 89 with Doug Radkey

Doug Radkey, co-founder and president of KRG Hospitality, stops by the Bar Hacks podcast. Not only is Doug the co-founder and president of KRG, he’s also the author of the book Bar Hacks and its followup Hacking the New Normal, and the creator of the Bar Hacks podcast.

During his visit, Doug and David talk about their expectations for 2023, what KRG is working on in the new year so far, the importance of technology in hospitality, and dynamic pricing versus dynamic menus. Doug also shares his thoughts on what operators can work on starting today to position themselves for success in 2023 and beyond.

Episode 90 with Mark Sansom

Mark Sansom, content director for the World’s 50 Best Bars, drops by the Bar Hacks podcast to share some big news. After years of dialing in the process and waiting out the pandemic, the World’s 50 Best Hotels will be revealed at a ceremony in September 2023! If you haven’t watched or attended a World’s 50 Best Bars ceremony, they truly take great pains to ensure they’re the Oscars of bar awards. So, we expect the World’s 50 Best Hotel awards ceremony to blow us out of the water.

This list and its accompanying specialty awards completes the hospitality and travel puzzle. Restaurants and bars, after all, are inextricably intertwined with hotels and resorts. Mark shares the details of the World’s 50 Best Hotels Academy Chairs, voting panel, and voting process in this episode. As a bonus, you’ll also get to hear host David Klemt try and fail to say “inaugural awards” without any issue!

Episode 93 with Adrián Michalčík

In September 2022, Adrián Michalčík earned the title of Diageo World Class Global Bartender of the Year. Colloquially, this achievement is known as the Best Bartender in the World. That’s a bold and weighty mantle but as you’ll learn during this conversation, Adrián is humble and focused on his team and guests.

Adrián is the director of mixology at the award-winning Pier 42 inside the Amerikalinjen hotel in Oslo, Norway. The bar has been recognized by the World’s 50 Best and has won Best Bar of Norway twice. In addition to taking home the title of 2022 Diageo World Class Global Bartender of the Year, Adrián has won several bartending competitions throughout the years.

He popped by the Bar Hacks podcast to chat with host David Klemt about his bartender journey. Adrián has worked in several types of bars and each helped him develop the skills that allowed him to elevate his skills behind the bar. Mentors, his endless quest for knowledge, his passion for hosting others, and his focus on empathy have informed his approach to team building, delivering top-level hospitality, and tapping into his creativity to develop Pier 42’s cocktail menus.

Adrián shares the three pillars he believes great bars are built upon, what he looks for in bar team members, transforming people from guests to friends, the importance of storytelling, and much more.

Episode 95 with Bob Peters

We know it’s been a few weeks. Between client projects and trade shows we had to take a little break. But we’re back!

And to make our absence up to you, our loyal listeners, we’re bringing you a great chat with an awesome guest. Bob Peters returns to the Bar Hacks podcast for episode 95!

Bob has big news to share, and you can hear in his voice how excited he is to share it with everyone. He’s taking on the perfect role. In fact, he calls it his dream job during this episode. Cocktails and cuisine are about to get even better in North Carolina and South Carolina…

But it doesn’t stop there! Bob also shares his approach to bar training to make sure everyone is engaged; his assessment of the Charlotte dining and drinking scene; a simple step all restaurants and bars can take today to improve operations, team engagement, and the guest experience; a very cool project he’s taking on; and more.

Episode 97 with Dragos Axinte

Dragos Axinte, the founder of Novo Fogo Organic Cachaça, returns to the Bar Hacks podcast. Axinte and Novo Fogo have been very busy since, his first appearance on the pod.

On this episode, Axinte shares the details and stories behind three important Novo Fogo initiatives and partnerships: Tree-keeper, with Seattle Sounders goalkeeper Stefan Frei, the Un-endangered Forest, and the brand’s new Chief Alegrias Officers (ChAOs), Sophie Hawley-Weld and Tucker Halpern, also known as SOFI TUKKER.

The two also discuss Axinte’s approach to partnerships—a philosophy that will serve operators and entrepreneurs very well—as well as distillers “discovering” amburana wood finishing. And, of course, Axinte shares product news and insights. If you’re headed to Tales of the Cocktail this year, you’re in for some incredible news. This conversation spans several topics and Axinte always imparts wisdom when he speaks in approachable and helpful ways.

Episode 99 with Michele Mariotti

Bartender Michele Mariotti leads an illustrious career. He has worked behind the bars at some of the best hotels around the world, including the Savoy in London and Mandarin Oriental in Singapore.

As of 2020, Michele has held the title head of bars at the Gleneagles Hotel in Perthshire, Scotland. In this role, he heads the programs at 11 F&B venues on the property, overseeing dozens of bar professionals.

On this episode, Michele and Bar Hacks podcast host David Klemt talk about mentorship, interviewing potential bartenders, menu development, using a flavor map when assigning new cocktail builds to bar team members, finding inspiration, interesting hotel guests, bespoke glassware, investing in platforms and programs that boost staff retention, and more.

Episode 101 with Ryan Chetiyawardana a.k.a. Mr. Lyan

Ryan Chetiyawardana, also known as Mr. Lyan, is one of the bar world’s true visionaries. He opened his first bar, White Lyan, in 2013 and the venue immediately achieved its intended purpose. Beyond being an award-winning bar and one of London’s best places to grab a drink, White Lyan started a much-needed conversation about sustainability in the industry.

Dandelyan, Lyaness, Super Lyan, Cub, and Silver Lyan would follow shortly after, making an even bigger splash not only in London but also Amsterdam and Washington, DC. All Mr. Lyan venues, while showcasing incredible innovation, accomplish something just as important: each bar is a place people to want to spend their time and money, and where professionals want to work.

During this fantastic conversation, Ryan shares insights into the menu programming processes at each venue; discusses seasonality; provides a look into hiring and engaging each team; the reissue of his book and his foray into the RTD cocktail space; and much more. Cheers!

Episode 102 with Jordan Bushell

Thank you for being patient during our summer hiatus. We’re back with a great conversation with an awesome guest.

Global Hennessy brand ambassador Jordan Bushell returns to the Bar Hacks podcast. While Jordan may know people with more Cognac knowledge, we don’t know anyone who knows more about this spirit category. More importantly, he’s as generous with his time as he is knowledgeable about Cognac. If you have a question about the spirit of Hennessy you can reach out to him and he’ll answer you.

On this episode of Bar Hacks, Jordan talks about special Hennessy releases, initiatives, collaborations, and what sets the maison apart from others in the Cognac region of France. He also talks about how operators can introduce guests to Cognac and Hennessy, including paying attention how they price their menus. Cheers!

Episode 104 with Simone Caporale

Simone Caporale, an internationally renowned bartender and operator, swings by the Bar Hacks podcast to talk spirits, branding, the guest experience, and operations.

Noticing a gap in the industry and seeing a way to lend his expertise to help grow spirits brands, Simone and Luca Missagli founded Cocktail Concierge, a brand-building agency focusing on craft spirits brands. One of the most recent brands Cocktail Concierge has helped introduce to the world is Amaro Santoni.

Of course, Simone is also one of forces behind SIPS Drinkery House, number three on the World’s 50 Best Bars list, and the World’s Best Bar according to Tales of the Cocktail. Simone shares his thoughts on what he thinks makes SIPS so successful, why he views service as a privilege, three tips operators can implement today to plant the seeds for long-term success, and more!

Episode 107 with Anne Becerra

When it comes to curating a beer program, creating a complementary cocktail program, and delivering an incredible beer program, we can’t think of anyone better than Anne Becerra. And lucky for us, she stopped by the Bar Hacks podcast!

Anne is the first female Certified Cicerone in New York City and has been working in beer for more than a decade. More importantly, however, she’s as passionate as she is educated about beer. Anne’s also passionate about hospitality, which comes across in this conversation. Truly, she loves hospitality, the beverage world, and how the two pair to make people feel amazing.

On this episode Anne talks introducing guests to beer; serving beer aficionados, beer neophytes, and the beer wary; how to make guests feel comfortable in a beer-centric concept; what she’s excited about in the beer world; tips for operators who want to succeed with a beer-forward venue; and much, much more. Cheers!

Image: Miguel Á. Padriñán on Pexels

2024 KRG Hospitality Start-up Costs Guide

December 21, 2023by David Klemt David Klemt No Comments

KRG Releases 2024 Start-Up Guide

KRG Hospitality Releases 2024 Restaurant Start-Up Cost Guide

by David Klemt

KRG HOSPITALITY RELEASES SIXTH ANNUAL RESTAURANT START-UP COST GUIDE

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

December 21, 2024 (TORONTO)—Today, KRG Hospitality releases their 2024 Bar & Restaurant Start-up Costs Guide, which is free to download. The Toronto-based consulting firm specializes in startup restaurant and bar projects along with boutique hotels, experiential concepts, and entertainment venues. KRG Hospitality’s American headquarters is located in Las Vegas, Nevada.

For the past six 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 guide also includes the interactive KRG Hospitality Calculator, which is updated for 2024.

The costs to start a restaurant have been on a steady rise over the past six years. Major drivers are increases in inflation, interest, labor, construction, and 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 sixth annual guide is a deep dive that provides real insight into what to expect in 2024.

The guide is available now as a free download via this link.

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

December 20, 2023by David Klemt David Klemt No Comments

The Liquor Awards Return!

The Liquor Awards Return!

by David Klemt

The second-annual Liquor Awards from Liquor.com highlights the best of hospitality of 2023, shining a light on bars, individuals, and organizations.

Liquor.com launched the Liquor Awards back in 2022. For the 2022 winners and runners-up, click here. Follow this link to review the 2022 Liquor Awards honorable mentions.

Differentiating themselves from other industry awards, the Liquor Awards recognize bars, individuals, and organizations via some unique categories.

For example, Platypus in St. Louis, Missouri, receives recognition among the 2023 winners and finalists via the Under the Radar category.

Other categories include Best Classic Bar, Best Neighborhood Bar, Global Spotlight, and Community Builders of the Year.

For those who are curious, I’ve run the numbers in terms of markets and the number of finalists and winners.

Creating an Inclusive Space

Winner

Tiffanie Barriere

Finalists

Ashtin Berry
Kate Gerwin
Kapri Robinson
Chockie Tom

Bartender of the Year

Winner

Kapri Robinson

Barr Hill Gin
Empirical
Maker’s Mark
WhistlePig Whiskey

Cheers to the finalists and award winners!

Please click here to review the list on Liquor.com and learn more about the winners.

Image: Ellie Burgin on Pexels

December 19, 2023by David Klemt David Klemt No Comments

Grubhub Reveals 2023 Order Trends

Grubhub Reveals 2023 Order Trends

by David Klemt

Just under the wire Grubhub releases their annual end-of-year report, revealing their customers’ top ordering trends of 2023.

Uber Eats and DoorDash unveiled their reports at the end of October and start of November, respectively.

To revisit 2022 for a moment, the top food item ordered via Grubhub was the burrito. So, the unofficial theme of last year’s annual report was warmth and comfort wrapped in layers.

I’m providing that context because this year’s report also comes with a theme. This year, it’s “doing it for the vibes.” For Grubhub, this means that users of the service broke out of their comfort zones to try new F&B items.

Providing an example, one of the standout trends for 2023 is heat. As in, Grubhub users added spice to quite a lot of orders, as you’ll see below.

Click here to review Grubhub’s top 2022 food orders, and here for their 2022 beverage orders. To review this year’s Grubhub report in its entirety, click here.

Now, let’s take a look at a number of this year’s ordering trends.

Soft Drinks & Coffee

Usually, I start with food items when reviewing these reports. Well, once you become predictable, you become beatable. So, I’m going to shake things up and begin with beverages.

According to Grubhub, a TikTok trend—#dietcokebreak—is responsible for the growth of Diet Coke on the platform. In fact, the third-party delivery service says that in-office orders of Diet Coke grew by 17 percent. No surprise, then, that the soda grabbed the top spot in 2023.

Top 5 Sodas

Diet Coke
Coke
Sprite
Dr. Pepper
Ginger Ale

Next, coffee orders. Per this year’s Grubhub report, people weren’t shy about ordering coffee outside of the breakfast and lunch dayparts.

According to their data, more than 10 million coffee orders were placed after 5:00 PM.

Top 5 Coffee Orders

Iced Coffee
Caramel Frappe
Mocha Frappe
Cappuccino
Hot Coffee

Food & Flavors

Here’s an interesting revelation: more than 600,000 Grubhub users chose to order salads with a side of French fries.

In fact, the French fry is the top ordered side in 2023 on the platform. So, Grubhub ranked fries by style.

Top 5 French Fry Styles

Classic cut
Waffle fries
Cheese fries
Sweet potato fries
Curly fries

Hey, let’s reignite the pineapple on pizza debate. According to Grubhub’s year-end report, pineapple as a pizza topping grew by 33 percent in comparison to 2022.

However, Hawaiian pizza has some more growth to do if it wants to take the number one spot.

Top 5 Pizza Styles

Cheese Pizza
Margherita Pizza
Pepperoni Pizza
Buffalo Chicken Pizza
Hawaiian Pizza

Finally, top flavors. In short, heat is a hit.

Grubhub users added spice to a staggering 53 million orders this year. For further context, sriracha was added to more than 91,000 orders.

And when it comes to chicken wings, Buffalo was the dominant style. I find it interesting, though, that no style of wing made the top five for this category.

Top 5 Spicy Items

Spicy potato soft tacos
Spicy chicken sandwich
Spicy tuna roll
Hot and sour soup
Drunken noodles

Bringing this report to a close, the item with the most growth. Pickles grew by 89 percent in 2023, accounting for 6.9 million orders.

So, I guess make sure your pickles, French fries, cheese pizzas, and salads are on point as we head into the New Year.

Image: Nathan Dumlao on Unsplash

Colin Asare-Appiah and Mark Talbot Holmes

December 18, 2023by David Klemt David Klemt No Comments

New Cocktail Festival Coming to Africa

New Cocktail & Spirits Festival Coming to Africa

by David Klemt

One of the most influential people in the hospitality industry, Colin Asare-Appiah, is bringing a new cocktail and spirits festival to South Africa in 2024.

Asare-Appiah is, of course, a bartender and spirits aficionado. However, he’s also an industry educator, author, a mentor, and historian. And he’s driven to shine a spotlight on the cocktail scenes throughout Africa.

AJABU, which means “wondrous” in Swahili, is the creation of Asare-Appiah and Mark Talbot Holmes, the founder of U’Luvka Vodka. From March 12 to 13, Johannesburg will be the first city to host AJABU. Cape Town will follow closely, with the festival taking place from March 15 to 16.

To put it plainly, the cocktail community doesn’t seem to pay much attention to African countries. At KRG Hospitality, we focus primarily on North America. So, I have to admit that when it comes to industry coverage, I’m guilty of overlooking African countries as well.

Looking back at industry awards from the past couple of years drives this point home. Bars, restaurants, hotels… If they’re not in Johannesburg or Cape Town, they’re not earning nominations, honorable mentions, or rankings, with very few exceptions.

Asare-Appiah and Talbot Holmes are aiming to change this situation. They duo and their collaborators intend to build international connections between trade, brands, and media through this bi-annual cocktail festival.

To learn more about this new industry gathering, please review the press release below. Cheers!

AJABU Cocktail and Spirits Festival Set to Debut in South Africa

New International Festival will Celebrate the Incredible Growth in the African Hospitality Community in 2024 and Beyond

JOHANNESBURG, SOUTH AFRICA – AJABU, Africa’s first bi-annual international Cocktail and Spirits festival, is set to debut in Johannesburg and Cape Town next year, with the first of two week-long events taking place from March 10-18, 2024.

Curated by Colin Asare-Appiah (Bar World 100 Most Influential Figures 2023, Co-Author Black Mixcellence, Tales of the Cocktail Foundation’s 2023 Spirited Awards® Finalist: Best Bar Mentor) and Mark Talbot Holmes (founder of U’Luvka Vodka). AJABU aims to become Africa’s leading spirits and cocktail festival. It will not only connect the hospitality industry and their community across Africa and beyond, it will also inspire innovation, collaboration, and creativity, while celebrating the continent’s incredible diversity of people, ingredients, and beverages.

The word AJABU means ‘wondrous’ or ‘amazing.’ As the name suggests, the festival will embrace the wondrous diversity of the hospitality industry across Africa, connecting brands, bar trade, media and cocktail enthusiasts, while supporting a new generation of African bartenders and hospitality professionals.

Taking place in both Johannesburg (March 10-13) and Cape Town (March 13-18), AJABU will host each city’s most renowned venues for a line-up of exciting mashups. Participating award-winning international bars include Library by the Sea, Milady’s, Rayo and Trailer Happiness. These teams will partner with bars across Africa such as Front Back and Hero for a week of education sessions, spirited forums, wine tours, and hosted dinners at local Johannesburg and Cape Town venues. In Johannesburg, festival-goers can look forward to experiencing the unique offerings of bars such as Sin + Tax, Saint, Smoking Kills, Cin Cin Zioux, Mesh Club, and Marabi Club. Meanwhile, Cape Town will host festivities at Cause/Effect, Art of Duplicity, Chef’s Warehouse, Hacienda, The Drinkery, House of Machines, Asoka, and Talking to Strangers.

“AJABU is a platform to celebrate Africa’s vibrant spirit and bartending culture,” exclaims Asare-Appiah. “We’re committed to fostering the growth of the hospitality industry across the continent by inspiring and empowering the bartending community to push the boundaries of their craft while providing a unique platform to showcase the diverse and rich culture of African drinks and ingredients.”

AJABU is thrilled to announce its partnership with local industry legends Kurt and Etienne Schlechter as well as award-winning writer & educator Leah Van Deventer as the team on the ground.

The festival will soon announce a lineup of the world’s best bars who will bring their creativity and knowledge to Johannesburg and Cape Town venues. Attendees can anticipate an unforgettable gathering of industry-leading professionals who will surprise and delight attendees with their creativity and innovation.

The March edition of AJABU will be followed by another week-long event across both cities in November, in partnership with Cape Town Beverage Show.

For more information, please visit ajabufestival.com

About AJABU

AJABU is Africa’s first annual international spirits and cocktail festival, created by Colin Asare-Appiah (Bar World’s 100 Most Influential Figures 2023, Co-Author Black Mixcellence of the Cocktail Foundation’s 2023 Spirited Awards® Finalist: Best Bar Mentor) and Mark Talbot Holmes (founder of U’Luvka Vodka). With a mission to become the continent’s leading hospitality community gathering, AJABU connects the industry across Africa and beyond to inspire innovation, collaboration, and creativity.

Image: AJABU

Gloved chef's hand pressing down on cheeseburger bun

December 15, 2023by David Klemt David Klemt No Comments

Transactional vs. Experiential Service

Is Your Business Transactional or Experiential?

by David Klemt

When you consider your restaurant or bar honestly, is the service you and your team are providing to guests transactional or experiential?

It’s an important distinction, and it applies to every restaurant and bar category. Whether operating a QSR or FSR, today’s guests want more for more their money.

Further, they expect more just for choosing to leave their homes. A recent report from CWB Franchise Finance, in partnership with Circana and fsStrategy, indicates strongly that experiential concepts are on the path to weathering economic challenges and achieving long-term success.

Now, to be clear, of course all businesses are transactional. In that regard, restaurants and bars are clearly no different from other businesses.

Guests come in, they place orders, and they pay for the goods they receive. Transactional, right?

However, restaurants and bars are in a position to deliver memorable experiences.

Sure, for some people those memories are fleeting. There are those who are always seeking the next thing. But operators who become known for providing more than just menu items will remain on the radar of even the most fickle guest.

When a restaurant or bar delivers goods plus phenomenal services, when the guest experience involves more than just ordering and paying, it becomes experiential.

Think back to the times this year you’ve popped into a QSR or fast-casual restaurant. Can you remember much about the experience? If yes, fantastic—that operator understands the power of an experiential business model. Should the answer be no, that operator sees value only in being transactional.

Which are you happy to return to in the future?

Experience is King

I’m going to assume you’re much happier to return to an experiential concept than a strictly transactional one. And if that’s a correct assumption, you should apply that to your own restaurant or bar.

According to studies Circana has conducted over the past couple of years, Canadian consumers are reacting to economic uncertainty and financial instability as one would expect: cutting back on discretionary spending.

Generally speaking, that means reducing their spending at restaurants and bars. However, there’s a bit of good news tucked into those Circana studies.

Per Circana, half of Canadians plan to increase spending on something in particular: experiences. Further, 91 percent of Canadians say they’ve spent money at experiential restaurants recently.

“A restaurant visit isn’t necessarily just about nourishment, but instead is a platform for socializing, entertainment and exploration,” reads the joint CWB, Circana, and fsStrategy report.

Importantly, an operator need not go to extremes to deliver an experience. Something as simple as creating an LTO around craveable drinks can pay huge dividends. For proof of that, simply look at McDonald’s in the US and the hype that surrounded the berry-flavored Grimace Shake.

Operators throughout Canada and around the globe need to understand how impactful being experiential can be.

Takeaway

It’s true that operators are competing against one another. However, it goes deeper than that now.

Operators are also battling convenience and comfort. Between working from home, pandemic-induced isolation, and technology, people are used to staying in and ordering whatever they want.

So, not only are operators faced with the challenge of standing out from one another, they’re up against the phones in people’s pockets.

For many people, choosing to leave home to dine and drink in person is a big deal. To some, restaurants and bars are about celebrating special occasions or socializing. For others, the motivation is as simple as the need to finally get out of their home.

It’s imperative, therefore, for operators to be more than transactional. Being experiential, whether the experience is small but impactful or over the top and unforgettable, is the way forward.

Restaurants and bars that deliver a memorable experience are better positioned to remain top of mind for a guest’s future in-person visits, delivery and takeout orders, and large-party special events. Don’t think of being experiential just in terms of nailing each visit, think of elevating the guest experience to capture future business.

A focus on the experiential builds loyalty from existing guests, and it encourages those guests to become ambassadors of your brand. Ask what you can do with your menu, team, and space today to become more experiential than transactional.

Image: Thiago Miranda on Pexels

Kentucky Peerless Distilling Co. whiskey barrels

December 13, 2023by David Klemt David Klemt No Comments

Will Whiskey Bring Us Together?

Will Whiskey Bring Us Together?

by David Klemt

A letter penned by Senator Catherine Cortez Masto and signed by a bipartisan group of senators shows that we’re capable of coming together.

There’s seemingly no escape from messages that America is divided like never before. And, when inundated with that message, it’s easy to believe. Sadder, when we believe that message it’s too easy to plunge into despair.

However, 17 senators, Democrats and Republicans, are coming together in support of American whiskey.

These senators are seeking the permanent removal of tariffs on American spirits and wine by the European Union. That 25 percent tariff, first imposed in June of 2018, is in retaliation over a dispute over aluminum and steel. This was a response to the US imposing a 25 percent tariff on steel imports, and ten percent on aluminum.

Unfortunately, after a suspension in 2021, the tariffs on American whiskey will jump to 50 percent on January 1, 2024. So, Sen. Cortez Masto and a bipartisan group of senators are urging the Biden administration to work with the EU to permanently suspend or otherwise eliminate tariffs on American whiskey.

If Ambassador Katherine Tai and the White House are unable to broker a deal with the EU, the tariffs would be catastrophic for many American whiskey distillers. In turn, their whiskeys would become more costly for restaurant, bar, nightlife, and hotel operators. And, of course, for consumers.

Here’s to hope. Hope that a deal can be reached, and hope that somehow, some way, our elected officials will engage in more bipartisan efforts moving forward.

Bipartisan Support in the Senate

Below, the text of the letter that Sen. Cortez Masto (D-NV) sent to Ambassador Tai and the White House.

The following senators signed this letter in a show of bipartisan support:

Marsha Blackburn (R-TN)
Katie Boyd Britt (R-AL)
Mike Braun (R-IN)
Maria Cantwell (D-WA)
John Cornyn (R-TX)
Mike Crapo (R-ID)
Bill Hagerty (R-TN)
Tim Kaine (D-VA)
Mitch McConnell (R-KY)
Joe Manchin (D-WV)
Roger Marshall (R-KS)
Rand Paul (R-KY)
Gary Peters (D-MI)
Jacky Rosen (D-NV)
Mark Warner (D-VA)
Todd Young (R-IN)

If only restaurants and bars, venues where American whiskey is bought and sold, had received this type of support when seeking RRF replenishment.

The Letter

“Dear Ambassador Tai,

“We write today to request an expedited agreement with the European Union (EU) to secure the permanent removal of retaliatory tariffs on spirits and wines. While we applaud the Administration’s efforts to suspend retaliatory tariffs for five-years on spirits and wines in the WTO Large Civil Aircraft Dispute and the two-year pause on American Whiskeys in the steel and aluminum dispute, we are deeply concerned that a lack of a permanent fix risks the re-imposition of tariffs. As of now, a 50 percent tariff is set to hit American Whiskeys on January 1, 2024.

“Spirits have had a significant cultural impact in our country, and currently have a profound impact on the U.S. economy. In 2022 alone, U.S. distilled spirit exports reached $2.06 billion. But the impact of the retaliatory tariffs was devastating. For the American Whiskey industry, exports decreased from $702 million to $440 million, a loss of 20 percent between 2018 and 2021. In 2022, American spirits exports rebounded over 2017 pre-tariff levels – the last full year before retaliatory tariffs – due in large part to the suspension of retaliatory tariffs. For many in the hospitality industry and others such as retailers, grocers, importers and distributors, many of which are small, locally-owned businesses, the impact was severe, compounded by the onset of the Covid-19 pandemic.

“While we understand that you continue to negotiate towards a deal to settle the dispute related to steel, we believe that the targeting of spirits is extraneous. Likewise, a permanent fix is needed as the two-year pause on American Whiskey tariffs is set to snapback soon.

“Understanding that tariffs are a ‘tool in the toolbox’ in negotiating a deal, the imposition of additional tariffs on this industry would be detrimental. There are mutual benefits in finding a path forward, and our belief is that spirits and wines are a point where there can be consensus to limit the damage for all parties.

“We look forward to your support in finding a permanent fix for retaliatory tariffs on spirits and wines.”

Image: Daniel Norris on Unsplash

December 12, 2023by krghospitality krghospitality No Comments

Drink Donnybrook: Let’s Talk Screwdriver

Drink Donnybrook: Let’s Talk Screwdriver

by David Klemt

Is there vodka in there? Maybe.

As it turns out, the origins of one of the simplest cocktails on the planet—there are just two ingredients in a traditional Screwdriver—are a mystery.

Another interesting note about the Screwdriver: It’s likely a relatively new drink.

If the Screwdriver is an American invention, the earliest most believe it could have been created is the 1920s. That’s when Smirnoff sold the rights to North American distribution to a distiller in the US.

However, it’s possible the cocktail wasn’t invented until some time in the 1940s. Vodka didn’t really become popular among Americans until the ’40s. So, it’s conceivable that the Screwdriver is less than 100 years old.

Still, it’s difficult to believe that someone, somewhere didn’t think to add a splash of vodka to their orange juice in the 1800s. Or that someone didn’t think to “adjust” the taste of the vodka in their glass with a bit of OJ.

Either way, it’s pretty entertaining to know that we don’t have a definitive answer for who created the Screwdriver, where it was first made, and when. When we consider the fact that the recipe calls for just two simple ingredients, maybe it does make sense that we don’t know the who, where, and why. It’s so easy to make that it’s believable multiple people had the same idea around the same time, across the globe.

Of course, it wouldn’t be a Drink Donnybrook without checking into some origin theories. So, let’s dive in!

World War II

One theory involves WWII and the US Marine Corps.

It’s quite simple, really. During WWII, stationed overseas, perhaps a few Marines jazzed up their orange juice with a touch of vodka.

Oh, but wait. The Screwdriver may not be attributable to the USMC. It’s possible, according to another theory, that the former US Army Air Forces came up with drink and name when stationed in Ankara, Turkey.

As the predecessor to the Air Force, the USAF may hold claim to the Screwdriver.

If it’s one thing we need, it’s more fuel for the inter-service rivalry between the USMC and USAF.

Journalists

Two publications mentioned the Screwdriver in the 1930s and 1940s.

According to some historians, Journalism Quarterly at least made reference to a drink called the “Smirnoff Screwdriver” in 1938.

If that’s true, the classic cocktail predates WWII by a year. And if that’s true, it’s possible that American marines, airmen, or soldiers spread it around the world.

In 1949, Time magazine mentioned the Screwdriver. According to the writer, the cocktail was the newest drink grabbing attention at the Park Hotel in New York. Apparently, American engineers, Balkan refugees, and Turkish spies loved the drink.

Interestingly, if Time‘s reporting is accurate, it’s possible the supposed Turkish spies frequenting the Park Hotel bar got the name of the drink from American airmen.

Since apparently no bartenders who worked at the Park Hotel appear to have taken credit for it back in the ’40s, it’s unlikely it was created there.

Roughnecks

Okay, so you’re an oil worker. It’s the 1950s and you’re working in the Persian Gulf.

You’re performing back-breaking, dangerous tasks in oil fields. Maybe you need a pick-me-up, and maybe that pick-me-up involves mixing orange juice and vodka together.

But…you don’t have a barspoon. You certainly don’t have a swizzle stick. And you don’t have a coffee stirrer handy.

What you do have is a screwdriver. That screwdriver will definitely stir a drink. It doesn’t take time for this vodka-orange juice concoction to get the name “Screwdriver” because of the stirring utensil.

Well, that’s one theory, anyway.

Two days from now, December 14, you can share all those stories with your guests. Why? Because that’s National Screwdriver Day, a time to celebrate one of the simplest cocktails ever made.

Of course, you and your team can make the Screwdriver your own. Top-shelf vodka, the finest and freshest hand-squeezed orange juice (maybe even blood orange juice), any number of garnishes or rims, a touch of sparkling wine or water… The simpler the drink, the easier it can be to riff on it.

Cheers!

Image: Ryutaro Tsukata on Pexels

December 11, 2023by David Klemt David Klemt No Comments

FTC Targets Restaurant Fees and Surcharges

FTC Targets Restaurant Fees and Surcharges

by David Klemt

The Apex Building, also known as the Federal Trade Commission Building in Washington, DC.

Well, that didn’t take long. Less than two months after asking for the public’s input, the Federal Trade Commission is proposing legislation targeting additional fees and surcharges.

The proposed rule is known as the “Unfair or Deceptive Fees” rule. As one may imagine, the FTC is going after hidden and so-called “junk” fees.

As it stands, according to multiple outlets, this rule would prohibit restaurant and bar operators from surcharges that are commonplace. For example, larger-party fees, delivery surcharges, and even credit card processing charges would be banned by the rule.

Instead, operators would be compelled to list total prices on menus, whether for goods or services. Further, the FTC is directing operators to provide larger groups with “larger group” menus. These separate menus would show total prices calculated to include any surcharges.

Even further, it’s being reported that the FTC is also addressing tips. The Commission’s rule directs operators who charge service fees in place of tips to remove the fee and return to tipping.

Interestingly, the National Restaurant Association is reporting that the FTC never identified restaurants as a targeted industry when asking for public comments about junk fees. However, other sources claim that restaurants were indeed included when the FTC put forth the request for public feedback.

Regardless, it’s a fair statement to say that the Commission doesn’t understand restaurant operation and costs. It appears that the FTC either didn’t work with any operators when drafting these proposed rules. Or, if they did seek out restaurant operator input, they put very little stock into it.

Costing Independents

One thing that’s clear is these proposed rules will cost operators. In particular, compliance will cost independent operations, which account for nearly 70 percent of American restaurants.

According to the NRA, the cost of changing menus will cost nearly $5,000 per operator, for starters.

“The FTC doesn’t take the realities of the restaurant industry into consideration,” reads the Association’s fact sheet. “Its estimated compliance cost—$3.5 billion—would equal a cost of $4,818.27 per operator for menus alone. Small independent operators run on a 3-5% margin and make an average of $45,000/year. The cost of making this change would be approximately 10% of their total income.”

As independent operators can attest, credit card swipe fees are a dynamic cost that affects them disproportionately in comparison to their chain restaurant counterparts. Since these fees are calculated on a per-transaction basis and not fixed, adjusting menu prices to comply with the FTC’s rule puts them at a costly disadvantage.

Then there’s the simple fact that when restaurants raise prices, traffic tends to drop. When traffic drops, revenue goes with it. And when traffic and revenue drops, hours are cut back, and people lose their jobs.

Harmful Legislation

As far as I can tell, this is another example of a government agency attempting to impose rules on an industry it doesn’t understand.

When drafting legislation that affects restaurants, a group of operators and industry advocates that truly represents those who will be impacted should be impaneled. Input should be taken into thoughtful consideration before drafting rules, and drafts should be provided to the panel to receive feedback.

Unfortunately, the past few years have made it clear that our industry has very few friends the federal government. Our lobby, such as it is, simply isn’t respected as valuable enough to warrant consideration before imposing harmful rules on the industry.

This, despite the fact restaurants and bars in America employ more than 12 million people. That’s a lot of voters too many elected lawmakers are willing to dismiss as unimportant.

Image: ipse dixit on Unsplash

December 8, 2023by David Klemt David Klemt No Comments

af&co. x Carbonate: 2024 Trends to Watch

af&co. x Carbonate: 2024 Trends to Watch

by David Klemt

Marketing and creative agencies af&co. and Carbonate Group‘s 16th annual Hospitality Trends Report provides in-depth insight across several categories.

This is an in-depth, insightful report operators should review in its entirety. The “Sweet Sixteen” edition of this yearly report is available for download here.

There are two interesting details toward the end of af&co. and Carbonate’s report. First, a list of 2023 clients. Second, an explanation for the design of the report itself.

This makes sense: Carbonate is a creative agency that works in the hospitality space, after all. Further, af&co. is a hospitality industry marketing agency.

Now, I won’t be sharing every trend or insight found in these two agencies’ report. Rather, I’m highlighting a number of items across four of the report’s six categories. Again, I think operators and leadership team members should download the report for themselves.

Food

While af&co. and Carbonate identify specific cuisines and items that are trending, it’s their 10,000-foot view of food that I find most compelling. In terms of the big picture, “rigid” adherence to authentic cuisine is falling out of favor.

Chefs, in the agencies’ opinions, are taking a more modern approach to menus. Instead of following the “rules” of certain cuisines, they’re creating dishes and programs that defy labels. Of course, for those who feel the need to label, one could call this approach “contemporary fusion.”

Examples given are Good Luck Gato’s Okonomiyaki Baked Potato, and the Birria Dumplings at Little Bull.

Cuisine Trends

Of course, af& co. and Carbonate also zoom in on food. Their Cuisine of the Year goes to Korean.

Dessert of the Year goes to the Pavlova or Eton Mess. So, one can argue that operators should connect with their back-of-house teams about meringue-based desserts.

Other food trends include making pastries with buckwheat; getting inventive with mortadella; serving borek in snack and entree size; and Brazilian-style pizza.

However, it’s a presentation trend that stood out the most to me. Accompanied by a timeline complete with images, the agencies state confidently that we’re in the “Crescent Moon” era of plating.

Visualize a plate, then place all of the food along the edge, with roughly two-thirds of the space open. That’s the crescent moon presentation.

Beverage

A number of the trends in this section aren’t exactly new. That tells me that some are likely on the brink of moving from trend to ubiquity.

That, or they’re at risk of bumping against their expiration date.

Two trends that have been popping their fins out of the sea of cocktails for a bit make it into the af&co. and Carbonate report. One is clarified cocktails.

Spend a bit of time looking up cocktails on social media and you’ll see these are a bit divisive. Some bartenders are all for them, some appear to absolutely despise this trend. Guests, however, seem to like the novelty of well-known, opaque or translucent classic turning transparent.

Another drink trend? Culinary cocktails. For food-driven concepts, it makes perfect sense to encourage the bar team to work closely with the kitchen team. Offering culinary cocktails is one method of pulling a concept’s threads tighter, telling a more complete story.

Along those lines, the agencies identify another divisive cocktail trend: cheese.

Personally, cocktails that feature cheese aren’t my thing. However, these drinks are, at the minimum, going to grab a guest’s attention. And those who order these drinks aren’t likely to forget the experience any time soon, good or bad.

That last point is important for operators and their teams to remember. A negative experience can be more powerful and stick with a guest longer than a positive one. So, pursue trends with caution.

Hotel

One of the biggest hotel developments the Hospitality Trends Report identifies is the dual-brand hotel. This is also a trend with which KRG Hospitality is well acquainted, both through industry research and client projects.

So far, the most common approach tends to include two towers, a shared lobby and fitness center, and shared F&B concepts. However, there are properties that incorporate not only brand-specific design for each tower but separate the bars and restaurants as well.

Notably, Marriott opened the first-ever tri-brand hotel in Nashville in 2019. The hotel and resort colossus combined an AC Hotel, a Residence Inn, and a SpringHill Suites.

Another interesting hotel trend? Eco-friendly, pre-fab construction. An excellent example of this approach is Moliving. To learn more about this brand, check out Bar Hacks podcast episode 68 with Jordan and Hanna Bem.

Interest by consumers in supporting eco-friendly brands informs two other trends identified by af&co. and Carbonate. One of these is hotels and resorts including e-bikes among their amenities.

Another is rewarding guests for engaging in a number of green initiatives. For example, cleaning up the beach in front of a hotel, or helping to plant trees on or near the property.

Speaking further of amenities, hotel and resort operators are likely aware that if they have courts for racquet sports, they need to include pickleball.

Design

Operators considering a refresh or starting from a clean slate for a new space may want to work with a designer on the following approach: maximalism.

According to the 16th annual Hospitality Trends Report, this bold, playful design language is on the rise. Following this trend, af&co. and Carbonate think that maximalism is working particularly well for “concept-driven, design-forward” bars.

As far as colors and materials operators may want to ask designers about, the agencies suggest pink, bronze, gold, and velvet. These colors are warm and welcoming, exactly what a hospitality venue should be.

To download the Hospitality Trends Report, click here. Two categories not covered in this article are Marketing Ideas and Social Media Trends, so follow that link!

Image: Mason Tuttle on Pexels