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5 Books to Read this Month: October 2023

5 Books to Read this Month: October 2023

by David Klemt

Flipping through an open book

Our inspiring and informative October book selections will help you and your team transform your vision for your business into a successful story.

This month, we’re taking a good look at independent hotel operations, including checking out the wonderful guest experience a rustic lodge can deliver. We also dive into operations and brand strategy.

Oh, and we get inspiration from a company founder who turned $50 into a $30 billion-per-year, globally recognized brand.

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

Let’s jump in!

INDIE HOTEL: Why Hoteliers Are Breaking Free from Chains and Choosing Independence

I picked up INDIE HOTEL just a day or two after it was released. Written by Jeremy Wells, one of the brilliant minds behind the recently opened Ozarker Lodge, this book examines the shifting hospitality landscape.

From Amazon: “The hospitality industry is exciting and always evolving. One of the most exciting shifts in recent years is the growing popularity of independent, boutique hotels. While chains are here to stay, I believe the days of franchise domination are numbered. Traveler preferences are changing, and technology, once available only to chains, is becoming more accessible. As a result, more and more hoteliers will continue to make the leap into independence—breaking free from chains and enjoying a newfound freedom.”

Order your copy today!

Lodge: An Indoorsy Tour of America’s National Parks

We’re firm believers of looking everywhere for inspiration. Lodge may not be a how-to book for hoteliers but it speaks to the importance of the guest experience. Moreover, it shows that while midscale and luxury hotels and resorts seem to popping up all over, a rustic lodge that encourages disconnecting and recharging definitely still has its place in hospitality.

From Amazon: “Max Humphrey shines a light on 10 rustic National Park lodges in all their airy, timeworn splendor. No historic photos here; the images of the architecture and interiors are as they look today, highlighting these storied places in a fresh, alluring way. Sure, the lobbies are the main stage, but Humphrey touches on grand dining rooms, guest rooms, and rustic canteens alike. He writes about the buildings themselves in terms of the historical goings-on at the time, why they were built, and the players involved, highlighting notable architectural moments and period-specific furnishings. A smattering of pop culture history adds extra bursts of levity throughout.”

Grab it today.

Future Hospitality: Impactful Brand Experiences that Drive Sustainable Growth, Happier Guests, and Inspired Staff

Since the latest Jeremy Wells book kicks off this list, let’s take a look at his first book.

Future Hospitality drives home a simple but powerful principle that KRG shares. Put simply, hospitality is a mindset. This book also explains how an operator’s brand strategy plays a significant role in embodying that important principle.

From Amazon: “The purpose of this book is to help you understand the significance of making people feel good, and how the principles of strategic brand development can dramatically influence how you go about doing it.

“Without the core foundational component of a brand strategy in place at your business, I believe that you’ll be fighting an uphill battle that you don’t need to fight. If your business means anything to you, then you need to make it mean something to others.”

Order your copy here.

Shoe Dog: A Memoir by the Creator of NIKE

Again, we don’t always have to look at the hospitality industry for inspiration or lessons. We can learn from businesses that appear to have nothing to do with our own.

There are several lessons we can learn from Phil Knight and his leadership of Nike. For example, the following quotes are attributed to Knight:

  • “Don’t tell people how to do things, tell them what to do and let them surprise you with their results.”
  • “Let everyone else call your idea crazy; just keep going. Don’t stop. Don’t even think about stopping until you get there, and don’t give much thought to where ‘there’ is. Whatever comes, just don’t stop.”

From Amazon: “In 1962, fresh out of business school, Phil Knight borrowed $50 from his father and created a company with a simple mission: import high-quality, low-cost athletic shoes from Japan. Selling the shoes from the boot of his Plymouth, Knight grossed $8000 in his first year. Today, Nike’s annual sales top $30 billion. In an age of start-ups, Nike is the ne plus ultra of all start-ups, and the swoosh has become a revolutionary, globe-spanning icon, one of the most ubiquitous and recognisable symbols in the world today.”

Pick up your copy.

Bar Hacks: Developing The Fundamentals for an Epic Bar

If you have yet to read Bar Hacks, written by KRG Hospitality president and Bar Hacks podcast creator Doug Radkey, you need to pick your copy up today.

Without an understanding and appreciation of the fundamentals, long-term success is essentially an impossibility.

Image: Mikołaj on Unsplash

KRG Hospitality. Boutique Hotels. Resorts. Properties. Consultant. Feasibility Study. Business Plan

by David Klemt David Klemt No Comments

Program for Unique Holidays: October 2023

Program for Unique Holidays: October 2023

by David Klemt

"Think about things differently" neon sign

Do you want to stand out from from other restaurants and bars in your area? Change how you think about your October holiday promotions.

Several holidays are set against every date on the calendar, and this month is no exception. These holidays range from mainstream to esoteric.

Pay attention to the “weird” or unique holidays to raise eyebrows, carve out a niche for your restaurant or bar, and attract more guests. Why do what everyone else is already doing? Why program only around the same holidays as everyone else?

Of course, you shouldn’t try to celebrate every holiday, strange or otherwise. Focus on the days that are authentic to your brand; resonate with your guests; and help you grab attention on social media.

You’ll find suggestions for promotions below. However, the idea behind our monthly holiday promotions roundup is to inspire you and your team to get creative and come up with unique programming ideas.

For our September 2023 holidays list, click here.

October 4: National Golf Lover’s Day

There’s a lot of focus on the growth of pickleball in the US and Canada. However, there’s another sport that has been experiencing sizable growth: golf.

Owing in part to the explosive popularity of concepts like TopGolf and Drive Shack, more people have been getting into golf. The past few years has seen “0ff-course” golfers convert to off-and-on-course golfers. If you have golf simulators, Golden Tee, or operate a sports bar or golf-focused concept, this is your holiday!

October 5: National Get Funky Day

Funky rums, funky agate spirits… If there was ever a day to introduce your guests to the funky spirits in your inventory, it’s National Get Funky Day.

October 6: Inbox Zero Day

We can all use a reason to unplug and take a personal day. Hey, the start of October is a great reason to encourage your guests to make their emails as read and spend that personal day at your restaurant or bar.

October 11: Southern Food Heritage Day

Chicken-fried steak. Biscuits and gravy. Southern barbecue. BBQ pulled pork. Fried catfish. There are a nearly endless number of incredible Southern food menu items you can showcase and put your stamp on during this holiday.

October 14: National Motorcycle Ride Day

Yes, I’m including this holiday because I’ve gotten into motorcycles over the past couple of years. However, my motives aren’t entirely selfish. Becoming a go-to spot for groups of guests on bikes can be lucrative.

Just make your menu has plenty of low- and no-alcohol options.

October 16: National Liqueur Day

Not only are there a multitude of liqueurs that pair well with fall flavors, they’re perfect for creating low-ABV sips. Reverse cocktails are a great way to appeal to guests looking for easy-drinking, sessionable sips. And they just happen to be excellent for creating LTO cocktail menus.

October 20: International Chefs Day

If there was ever a day to let your chef and his brigade show off, here it is. Let them create a seasonal prix fixe or LTO menu that shows your guests why your team is the best in the area.

October 21: Apple Day

When temperatures drop and we finally find ourselves in the fall, the pumpkin spice descends upon us. The past couple of years, those menu items haven’t even had the courtesy of waiting for summer to end before making their first appearances.

Well, pumpkin spice isn’t the only fall flavor people want when the weather gets cooler. Sure, PSLs are popular, but you should also be highlighting apple on your food and drink menus.

October 22: National Make a Dog’s Day

There are a couple of ways to make a dog’s day. You and your team can help organize an adoption event and help dogs find their forever homes. (Don’t worry, I’m not going to be “funny” and say furever homes instead.)

If your bar or restaurant has a clean outdoor area, you can also encourage guests to bring them dogs. Have plenty of water and dog-friendly treats available to make their day.

October 30: Mischief Night

Also known as Devil’s Night, particularly in Detroit, Mischief Night is all about cutting loose. Well, most bars are the perfect place for people to cut loose and unwind.

Of course, we don’t want people to vandalize the bar or set fire to anything, so make sure you’re encouraging guests to party and not be malicious toward one another or the community.

Image: Ivan Bertolazzi on Pexels

KRG Hospitality. Consultant. Consulting. Culinary. Bar. Hotel. Mixology. Technology.

by David Klemt David Klemt No Comments

Celebrating the Espresso Martini

Celebrate the Espresso Martini with Mr. Black

by David Klemt

Two Espresso Martinis on a bar

For the second time in its brief but exciting history, Mr. Black Espresso Martini Fest is coming to bars throughout America.

Last year, 70 bars in eight cities across the US took part to celebrate the Espresso Martini. This year, participation more than doubles.

Fourteen cities in ten states will play host to more than 200 bars during the fest. For 2023, Austin, Boston, Dallas, Denver, Nashville, Phoenix, and Seattle are joining in on the fun.

 

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I, for one, expect Espresso Martini Fest to have the same staying power as other cocktail celebrations. The inaugural event took place in 2016 in Australia. In 2018, the Fest spread to the UK. After launching in the US, the week-long event growth has doubled over the course of just one year.

Logically, Mr. Black Espresso Martini Fest should join the ranks of Negroni Week, Old Fashioned Week, and Bee’s Knees Week.

Now, I know I’ve called the Espresso Martini “the cocktail that won’t die.” And yes, I’ve pointed out that it’s not technically a Martini, and that many bartenders hate it for the time it can take to make. That doesn’t mean participating in Espresso Martini Fest is a bad idea.

This is a cocktail that guests enjoy. It’s a drink that generates headlines each year. And clearly it’s a beverage that can drive traffic and generate revenue. At the end of the day, participation is a smart move.

2023 Espresso Martini Fest Cities

Given that the Fest runs from October 9 to 15, it’s unlikely the organizers are still vetting venues for participation. However, at the time of this article’s publication, the portal appeared to be open. It’s a worth a shot if you want your bar to join Espresso Martini Fest!

At least you’re aware of the event now so you can prepare to sign up next year.

Bars in the following cities are taking part in this year’s Fest:

  • Austin, Texas
  • Boston, Massachusetts
  • Chicago, Illinois
  • Dallas, Texas
  • Denver, Colorado
  • Houston, Texas
  • Los Angeles, California
  • Miami, Florida
  • Nashville, Tennessee
  • New York, New York
  • Phoenix, Arizona
  • San Diego, California
  • San Francisco, California
  • Seattle, Washington

I certainly anticipate this list growing by at least 50 percent for 2024. Cheers!

Image: Krists Luhaers on Unsplash

KRG Hospitality. Bar Consultant. Nightclub. Lounge. Mixology. Cocktails.

by David Klemt David Klemt No Comments

SevenRooms Reveals Revenue Management Tool

SevenRooms Reveals Revenue Management Tool

by David Klemt

Closeup view of buttons on vintage, antique cash register

Just when you think SevenRooms is done launching new solutions for the year they announce a new tool that will excite operators.

That new tool is Revenue Management. Much more than “just another” plugin, SevenRooms Revenue Management is an engine.

This new engine is feature-rich and automates a number important tasks. In fact, one feature in particular has our attention: the “do-it-for-me” function.

What does that feature give operators the power to accomplish while saving time and labor costs? Below are just a handful of benefits:

  • party size recommendations
  • dining duration configurations
  • decrease last-minute cancellations via cancellation policy implementation
  • floor plan configuration recommendations

Should this automation feature prove easy to understand and use, we can see that this latest tool may become the most popular among SevenRooms users.

To learn more about Revenue Management, scroll down to the latest SevenRooms press release.

Growth Recap

Let’s take a look at just some of the growth SevenRooms has achieved over the course of just the past few years.

  • March 2021: SevenRooms appoints Pamela Martinez as the company’s chief financial officer.
  • September 2021: SevenRooms announces a multi-year partnership with TheFork. The partnership is big news for operators throughout Europe and Australia. Further, the partnership illustrates how the company is pursuing global growth.
  • October of 2021: The company forms a partnership with Olo. This ensures clients who also use Olo are able to capture data from a key group: off-premise customers. That data creates profiles for such customers automatically. That means operators can learn more about—and effectively market to—customers who engage with them via online orders.
  • December 2021: SevenRooms and ThinkFoodGroup—the hospitality company behind Chef José Andrés’ portfolio of restaurants—make their partnership public. Interestingly, this partnership also includes ThinkFoodGroup joining SevenRooms in an advisory role.
  • January 2022: The platform announces the hiring of a chief revenue officer, Brent-Stig Kraus.
  • December 2022: SevenRooms enters into a partnership with Competitive Social Ventures.
  • January 2023: The company announces the appointment of their first-ever chief marketing officer.
  • March 2023: SevenRooms announces that Danny Meyer and EHI are investors in the platform. Following that announcement, SevenRooms launches Email Marketing Integration less than two weeks later.
  • May 2023: The company drops their Pre-Shift tool. Two weeks after that launch, SevenRooms announces a new global partnership with Marriott.

Most platforms launch a new solution or announce new partnerships once or twice per year. Not SevenRooms. And it’s this constant growth that encourages us to recommend the platform to our clients.

SEVENROOMS LAUNCHES REVENUE MANAGEMENT TO HELP OPERATORS INCREASE SALES & PROFITABILITY

Automated revenue management solution will provide restaurants with the tools they need to optimize their operations and fill more seats, more often

NEW YORK (September 28, 2023) – SevenRooms, a guest experience and retention platform for the hospitality industry, today announced the launch of a new solution for restaurants: Revenue Management. The product serves as an engine for operators to generate more sales and profitability from the same seats, using data science to recommend how to optimize availability and increase table utilization.

To survive current economic conditions, restaurants need solutions that can save them time, reduce their labor costs and increase their sales and profits. Inspired by effective revenue management strategies long-used by the travel industry, Revenue Management extends this practice to the restaurant industry. The product automates these processes without the need for analysts, additional staff or high-priced consultants to manage changes, helping to:

  • Fill more seats, more often to increase sales by reducing the time seats sit empty
  • Save time and reduce burdensome labor costs by automating in-depth analysis, quickly making changes with a ‘do-it-for-me’ option
  • Provide operators with easy-to-digest insights along with ready-to-use actions that demystify proven steps taken by revenue leaders

Other systems on the market today may offer reporting on a handful of insights, but none help operators immediately action revenue-focused suggestions with a ‘do-it-for-me’ option that has an instant impact on their operations. Sample actions include recommendations on party size or dining duration configurations, when to institute cancellation policies to decrease last-minute cancellations, floor plan configuration recommendations and more. Diners also benefit, with more available reservations, a better dining experience (e.g. being sat on time and not being rushed out the door) and more unique experiences and offerings to choose from when dining out as operators have more time to focus on the guest experience.

Notably, Revenue Management also gives operators insights into how much demand was missed across booking channels by summarizing data on recent reservation attempts. This helps operators better manage these channels and optimize their books to offer more reservations across their most profitable channels.

“With Revenue Management, we are delivering on our promise to help operators make more money, providing a product that automatically executes on strategies used by the most successful hospitality brands throughout the world – without having to add team members or search out implementation experts,” said Angela DeFranco, VP of Product at SevenRooms. “This tool is both proactive and reactive, helping operators uncover untapped opportunities while simultaneously working to identify potentially harmful configuration issues that may restrict venues from maximizing sales and profitability. Today’s operators are busier than ever, and we are excited to bring Revenue Management to hospitality operators, helping them automatically fill more seats, more often while continuing to elevate their guest experiences.”

For more details on SevenRooms’ newest innovations, please visit sevenrooms.com/new.

About SevenRooms

SevenRooms is a guest experience and retention platform that helps hospitality operators create exceptional experiences that drive revenue and repeat business. Trusted by thousands of hospitality operators around the world, SevenRooms powers tens of millions of guest experiences each month across both on- and off-premises. From neighborhood restaurants and bars to international, multi-concept hospitality groups, SevenRooms is transforming the industry by empowering operators to take back control of their businesses to build direct guest relationships, deliver exceptional experiences and drive more visits and orders, more often. The full suite of products includes reservation, waitlist and table management, online ordering, mobile order & pay, review aggregation, email marketing and marketing automation. Founded in 2011 and venture-backed by Amazon, Comcast Ventures, PSG and Highgate Ventures, SevenRooms has dining, hotel F&B, nightlife and entertainment clients globally, including: Marriott International, MGM Resorts International, Mandarin Oriental Hotel Group, Wynn Resorts, Jumeirah Group, Hard Rock Hotels & Resorts, Wolfgang Puck, Michael Mina, Bloomin’ Brands, José Andrés Group, Union Square Hospitality Group, Australian Venue Company, Altamarea Group, AELTC, The Wolseley Hospitality Group, Dishoom, Live Nation and Topgolf. www.sevenrooms.com

Image: Erik Mclean via Pexels

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Canadians Preparing for NHL Opening Week

Canadians Preparing for NHL Opening Week

by David Klemt

Vintage tabletop hockey game toy

Now nobody can accuse me of showing any NHL teams favoritism. Go Knights Go!

As one should expect, Canadian hockey fans are preparing for the 2023-2024 NHL season opener, and those preparations include on-premise visits.

On Tuesday, October 10, three teams will face off to start the regular season.

First, the Nashville Predators take on the Tampa Bay Lightning. Then, the Chicago Blackhawks will face the Pittsburgh Penguins.

Finally, after raising their brand-new, first-ever Stanley Cup championship banner, which they won just six seasons after their founding, the fastest an expansion team has accomplished this feat, the Vegas Golden Knights will welcome the Seattle Kraken to T-Mobile Arena in Las Vegas.

According to on-premise data from CGA by NIQ, Canadian hockey fans are planning to celebrate the start of the season at bars and restaurants. That means operators have less than two weeks to finalize plans to attract these guests to their venues.

In particular, operators in four provinces need to ensure their NHL opening week plans and promotions are good to go. Per CGA’s data, consumers in Québec are showing the greatest interest in watching this season’s opening games in bars and restaurants. Following and driving on-premise interest are British Columbia, Ontario, and Alberta.

Of course, operators throughout the provinces who serve sports fans should be ready to welcome hockey fans.

For our Canadian readers, the Montréal Candiens will take on Toronto Maple Leafs on Wednesday, October 11. On that same day, the Ottawa Senators face the Carolina Hurricanes; the Edmonton Oilers face off against the Vancouver Canucks; and the Winnipeg Jets will battle the Calgary Flames.

Click here for the full opening week schedule.

Why Does this Matter?

I may catch some flack for this but technically, any bar with televisions events can be a sports bar.

Yes, I understand that’s a very simplistic view. And yes, of course that comes with the caveat that sports should be authentic to a given concept. Also, showing sports should take into account the expectations of bar or restaurant’s guests.

In other words, most bars and restaurants can benefit from sports but they’d likely be a hindrance to some high-end cocktail bars and fine-dining concepts.

With that out of the way, operators who want to establish themselves as the go-to spot for sporting events need to nail opening week. That means having all of their ducks in a row.

Do they have the proper business TV packages in place? Will promotions and programming appeal to the target audience? Are the screens and audio system high quality for the best viewing experience? Does the menu offer sports fans what they want for great value? Is the team pulling out all the spots to make viewing fun?

Regarding the menu, CGA by NIQ has a couple of valuable insights. First, beer is the top beverage alcohol category among those planning to celebrate NHL opening week on-premise. Second, among those who plan to consume spirits, tequila is the top pick. Sounds like offering beer and tequila shot pairings could perform well.

However, operators should certainly take into account their own data. What F&B items are selling the best? Which items performed the best this same time last year?

Between 15 and 16 million Canadians follow hockey. That’s a vast pool of potential customers to convert to loyal guests. The importance of becoming their sports home base, their third spot, cannot be overstated.

This coming opening week, lay the groundwork to become the go-to place for hockey fans, fantasy sports competitors, and sports bettors.

Image: cottonbro studio via Pexels

KRG Hospitality. Gaming. Entertainment. Consultant. Food Service. Bowling Alley. Golf. Simulator. Arcades. Eatertainment.

by David Klemt David Klemt No Comments

Time to Rethink Your Loyalty Program?

Is it Time to Rethink Your Loyalty Program?

by David Klemt

Two pepperoni pizzas in open boxes

So, you have a loyalty program in place. That’s great, but is it time to review its performance and implement meaningful changes to improve engagement?

I know, I know—that feeling of “if it ain’t one thing, it’s another” never seems to go away. That’s part of operator life.

The good news is that, if you have a loyalty or rewards program and it has been working, you’re a step ahead of many other operators. In that way, it’s similar to implementing an actual onboarding process and including an employee manual.

But what should you do if you notice engagement dropping? Well, it may indicate that while there’s interest in your program, it’s getting stale. Or, perhaps people don’t like the rewards or think they’re earning rewards quickly enough.

If engagement isn’t at the levels you want or is noticeably declining, it’s time to review your program with a critical eye.

In fact, it’s a great idea to ask your team for their feedback regarding loyalty. After all, your team hears guest feedback in real time. Also, they likely have some ideas of their own that can help refresh the program. After all, some people on your team may be members of loyalty programs themselves and have some thoughts.

Engagement via Gamification

The word “gamification,” much like “pivot,” may be a word that annoys you. That doesn’t make it any less relevant.

Millions of people are on their phones nearly every waking moment of the day. And millions among those millions engage with brands and apps via games or game-like features. It keeps these people coming back for more.

One restaurant chain that understands the power of gamification is Jimmy John’s.

First, the brand’s loyalty and rewards program has an interesting name: Freaky Fast Rewards. Second, they issue challenges that drive member engagement.

For example, for Q1 2023, Jimmy John’s threw down the Gauntlet via the Freaky Fast Rewards program. Members had until the middle of March to purchase every sandwich on the menu. The reward? A branded beanbag chair that looks like a bag of Jimmy Chips.

Of course, the program engages its members in other gamified ways. There are achievement badges to earn, for instance. And there have been challenges that were narrowed down to daypart to drive traffic and engagement.

Free food and merchandise are common rewards, but there are also surprises that members can earn to keep things fresh.

Program Updates

Another brand giving their loyalty program a refresh is Domino’s.

Rather than do what some other companies have done, the pizza giant is lowering the threshold to earn rewards.

Around a year ago, Chipotle experienced significant backlash from loyalty program members when they went the other direction. In response, one would think, to rising costs, the brand increased the amount its members had to spend to earn rewards.

That went about as well with many of their customers as you’d expect, of course. Loyalty and rewards programs are meant to increase traffic and spend per guest, not alienate them and drive them away.

Enter: The Domino’s Rewards refresh.

“We are thrilled to give the brand’s loyal customers additional ways to earn free Domino’s items more often,” said Mark Messing, Domino’s vice president of digital experience and loyalty, via press release. “At a time when most brands are scaling back their loyalty programs and making it more difficult to earn and redeem points, Domino’s is doing the opposite. We want to make it easier to reward our customers and give them more options so they can get rewarded faster.”

Members can not only earn points more quickly (every $5 spent equals 10 rewards points), they can redeem more quickly as well. For example, a 16-piece Parmesan bread bites is just 20 points. Free stuffed cheesy bread is only 40 points now. And that’s to say nothing of offers that are exclusive to members.

Takeaway

Only you, of course, can know how to adjust your loyalty program. You need to look at your data to understand the best solution for waning engagement.

The last thing you should do is lower points thresholds without knowing your numbers. And if you’re considering gamifying your program, you need to know if that’s an approach your guests will actually like.

In other words, don’t rush to upgrade or update your loyalty program. Take time, collect relevant data, engage your team, and move forward with any changes with strategic clarity.

Image: Polina Tankilevitch via Pexels

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Indies in the US & Canada: The Numbers

Independents in the US & Canada: The Numbers

by David Klemt

Canadian and America flags flying together

Operators who wonder how many independent restaurants there are throughout America and Canada finally have their answer thanks to Datassential.

The well-known food and beverage research and intelligence platform’s recent infographic reveals the state of indies in both countries.

For the purposes of their infographic, Datassential splits restaurants into two overarching categories. One major category is full-service restaurants, the other is limited-service.

From there, the platform organizes restaurants into five segments: casual, QSR, midscale, fast casual, and fine dining.

To my understanding, QSR and fast casual fall under Datassential’s limited-service designation. Casual, midscale, and fine dining are full-service restaurants.

To review the infographic yourself, please click here.

Number of Indie Restaurants: America

According to Datassential, there are 483,885 independent restaurants in the US.

Of those restaurants, 57 percent are full-service. It follows, then, that 43 percent are limited-service.

Close to half—44 percent—of full-service restaurants in the US boast more than five years of being open. Just a quarter of limited-service restaurants (26 percent) can claim the same.

This does, anecdotally, make some sense. QSRs and fast-casual brands have been on the rise over the past couple of years. In fact, some casual chains are developing and launching QSR brands off the strength of the category.

Finally, 21 percent of full-service restaurants in the US see annual sales under $500,000. That number climbs to 27 percent for limited-service restaurants.

Now, let’s take a look at independent restaurants in Canada.

Number of Indie Restaurants: Canada

Per Datassential, there are a total of 59,914 independent restaurants throughout Canada.

The split between full-service restaurants and limited-service restaurants is just about even. Fifty-one percent of indie restaurants in Canada are full-service. Forty-nine percent are limited-service operations.

A little under 40 percent of full-service independent restaurants in Canada (36 percent) can say they’ve been operating for more than five years. That number is 28 percent for limited-service restaurants.

Interestingly, just five percent of independent full-service restaurants in Canada bring in less than $500,000 in sales annually. That number jumps to 34 percent when we look at the limited-service category.

Indie Restaurants by Segment

The breakdown of the five Datassential independent restaurant categories is the same for America and Canada.

Most independent restaurants in either country are casual. Following, in descending order of number of restaurants, are QSR, midscale, fast casual, and fine dining.

For America, the numbers are as follows:

  • Casual: 37 percent
  • QSR: 34 percent
  • Midscale: 19 percent
  • Fast casual: 9 percent
  • Fine dining: 1 percent

And for Canada the breakdown is nearly identical:

  • Casual: 37 percent
  • QSR: 30 percent
  • Midscale: 18 percent
  • Fast casual: 14 percent
  • Fine dining: 1 percent

There are eight times as many independent restaurants in America as there are in Canada. But as you can see, the industry segmentation by country is nearly the same.

Future independent operators can look at this information a few different ways. They can choose to join the most popular segments and differentiate themselves from the competition. They can look for and fill a need for an indie fast-casual or fine-dining concept. Or they can shoot for the middle and go midscale, a segment that’s gaining traction across several hospitality industry sectors.

For you own copy of Datassential’s infographic, follow this link.

Image: chris robert on Unsplash

KRG Hospitality. Restaurant Business Plan. Feasibility Study. Concept. Branding. Consultant. Start-Up.

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The Top-performing New Restaurant Type

The Top-performing New Restaurant Type

by David Klemt

A bowl of ramen with beers in the background

According to a midyear Yelp report, one category of new restaurant is experiencing a surge in growth across the US unlike any other.

No, it’s not ramen, as the image above suggests. Instead, it’s pop-up restaurants.

We can trace the growth of this category, at least on the operator side, to cost. Sure, pop-ups were popular before 2020. However, they grew even more popular during the pandemic.

One can argue the life cycle of the pop-up is fad to trend to cost-saving adaptation to proliferation.

There are even those who transform shipping containers into mobile, pop-up restaurants and bars. With the right permits and hookups (water, electricity, etc.), an operator can test a new market or an entirely new concept before committing fully to a brick-and-mortar location.

In other words, the pop-up simply makes sense for our industry. This category of restaurant (or bar) clearly doesn’t cost anywhere as much as its permanent brick-and-mortar counterparts, for one. Secondly, a pop-up doesn’t (shouldn’t, anyway) require more than a skeleton crew. And thirdly, they do seem to enjoy pops in interest whenever they come to a new market or new address.

There are, of course, other benefits. However, the low(er) cost is the most attractive element for most operators.

Keep in mind that Double Chicken Please started life as a pop-up cocktail concept. In fact, DCP is the current Best Bar in North America according to the World’s 50 Best Bars.

Covering more than 10,000 miles and serving over 1,200 cocktails, the DCP pop-up toured the US for three years before finding a brick-and-mortar home. And what a home. The concept is now a jewel in New York’s Lower East Side F&B crown.

Top Restaurant Types by Opening

According to Yelp, the following restaurant categories are experiencing the most growth.

The numbers below represent the changes in business openings from April 2021 to March 2022 in comparison to April 2022 to March 2023.

  • Pop-ups: +105 percent
  • Ramen: +45 percent
  • Noodles: +40 percent
  • Tacos: +28 percent
  • Chicken shops: +28 percent
  • Food stands: +23 percent
  • Japanese: +20 percent
  • Breakfast and brunch: +20 percent
  • Sushi: +13 percent
  • Steakhouses: +9 percent

As the numbers above show, the growth of pop-ups far exceeds that of any of the other categories. In fact, they’re growing by nearly three times that of the second-place category, ramen restaurants.

Make a Pop-up Work for You

For a pop-up to work the concept must be realized fully. The brand and its story must be communicated clearly.

And while the menus can perhaps change more easily, signatures should be dialed in to generate buzz.

At KRG Hospitality, our view of pop-ups is a popular one. We think they’re excellent branding tools and are a viable way for new operators to test the waters.

However, we believe that a successful pop-up should be paired with a fully customized feasibility study and in-depth concept development. Both are core services offered by KRG Hospitality, and both are specialties that set us apart.

They may be mobile, they may feel niche and “temporary” or experimental, but they’re still a business.

A pop-up can only transform into a brick-and-mortar concept with a shot at longevity if the operator treats it as a roving proving ground.

Image: Diego Lozano on Unsplash

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by David Klemt David Klemt No Comments

FAST Act Fight Appears to be Over

FAST Act Fight Appears to be Over

by David Klemt

Tray with In N Out burgers and French fries

Well, that was fast: If recent reports are accurate—and it appears they are—the battle over the FAST Act has come to a close.

Rather than fight on the ballot, fast-food chain operators and labor groups have struck a deal. Per some reports, this puts a halt to a referendum battle that could have cost more than $100 million in campaign funds.

On its face, the deal is quite simple. AB 257, known as the Fast Food Accountability and Standards Recovery—or FAST Act—is dead. That is, dead save for one provision: the creation of the Fast Food Council will move forward.

The council will have a total of eleven members. Nine will have the power to vote, two will be non-voting members. The breakdown will be as follows:

  • two representatives of the fast-food restaurant industry (2);
  • two franchisees or restaurant owners (2);
  • two restaurant employees (2);
  • two advocates for fast-food restaurant employees (2);
  • member of the public who is not affiliated with either side (1, will serve as chair); and
  • members from the Department of Industrial Relations and the Governor’s Office of Business and Economic Development (2, non-voting)

Their first meeting is on the schedule for March 15.

In exchange, fast-food workers will see the minimum wage bump up to $20 per hour should they be in the employ of a fast-food chain with more than 60 locations throughout the US. That pay rise will come in April 2024.

When it comes to further pay rises, the council has two options:

  • An annual wage increase of 3.5 percent; or
  • An increase based on average changes to the consumer price index each year.

As one might expect, the rise will be whichever number is lower.

What was AB 257?

To summarize, FAST would’ve done 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.”
  • Allows the formation of a Local Fast Food Council by a county, or a city that has a population of more than 200,000.

Click here to review the bill’s text in its entirety.

Why is this Important?

It’s entirely possible that similar bills will pop up in other states in the coming years.

If this result is anything go by, such bills may be used by QSR operators and labor groups as negotiating tactics. The most recent news regarding the FAST Act should have the attention of both operators and hospitality workers. In California alone, the pay rise is expected to affect at least 500,000 workers.

However, there is one provision of the FAST Act that workers may find less than encouraging. The deal that has been struck kills a notable provision: fast-food operators, at least in California, won’t be held legally responsible for labor violations that occur in franchise locations.

Operators in other states should keep an eye out for similar bills, as should all hospitality professionals.

Image: Kenny Eliason on Unsplash

by David Klemt David Klemt No Comments

Rémy Martin Pays Homage to Sobremesa

Rémy Martin Pays Homage to Sobremesa

by David Klemt

Josué Gonzaléz for the Rémy Martin "Que Viva Rémy Sobremesa" campaign

Mixologist Josué Gonzaléz for the Rémy Martin “Que Viva Rémy Sobremesa” campaign

Rémy Martin is teaming up with the Hispanic Restaurant Association to celebrate Hispanic Heritage Month by honoring a post-dinner tradition.

That tradition, an important element of a number of Hispanic cultures, is called “sobremesa.” Translating to “at the table” or “upon the table,” sobremesa is the period of time after a meal during which people relax, chat, and digest.

This is, of course, one of the most important elements of a great meal and gathering of friends and family. While sobremesa may fly in the face of the “turn-and-burn” approach to operation, a hallmark of a wonderful time out at a restaurant is the post-meal vibe.

Are guests lingering with smiles on their faces, ordering post-dinner drinks and chatting, giving off a good energy? That would indicate an operator and their team have delivered excellent service and a memorable guest experience.

To celebrate Hispanic Heritage Month and sobremesa, Rémy Martin is launching a new campaign: “Que Viva Rémy Sobremesa.”

 

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Que Viva Rémy Sobremesa

A core element of this collaboration between Rémy Martin and the Hispanic Restaurant Association is bringing food and beverage together.

To achieve this, Que Viva Rémy Sobremesa is bringing together three influential F&B professionals.

Chef Paola Velez for the Rémy Martin "Que Viva Rémy Sobremesa" campaign

Hailing from the Bronx with a career that has brought her to Washington, DC, Chef Paola Velez is an entrepreneur, activist, and the founder of Bakers Against Racism.

Chef Carlos Gaytán for the Rémy Martin "Que Viva Rémy Sobremesa" campaign

A restaurateur with restaurants in Mexico and Chicago—and his sights on California’s dining scene—Chef Carlos Gaytán is the first Mexican-born chef to earn a Michelin star.

Miami native and revered bartender Josué Gonzaléz brings an understanding of the culinary to his craft, beginning his journey in hospitality as a Johnson & Wales culinary student. His résumé includes some of the best bars and restaurants in America.

This powerhouse trio has been tasked with creating cocktails and culinary pairings that feature Rémy Martin and shine a spotlight on sobremesa. Their hard work will be showcased through immersive experiences throughout the US. Click here for Chef Velez’s recipes, here for Chef Gaytán’s creations, and here for Gonzaléz’s recipes.

However, Que Viva Rémy Sobremesa doesn’t stop with the conclusion of a meal. Rémy Martin, the Hispanic Restaurant Association, and their featured chefs and bartender also seek to add a new element to sobremesa.

Rather than sobremesa representing the end of a night out, Que Viva Rémy Sobremesa aims to transform the tradition into the start. In other words, “last call” now signals “the first call of the rest of the night.” Instead of asking, “When can we do this again,” the campaign encourages friends and family to ask, “What’s next tonight?”

The Mambo Mango Royale

To provide an idea of the creations coming from the Que Viva Rémy Sobremesa collaborations, here’s a cocktail recipe from Josué Gonzaléz.

  • 1.5 oz Rémy Martin Tercet
  • 0.75 oz Mango Syrup
  • 0.5 oz Lemon Juice
  • Bar spoon Galliano
  • Champagne to top
  • Decorative mango and edible flower to garnish

Add the first four ingredients and ice to a shaker. Shake vigorously for about ten seconds, then add a splash of Champagne. Pour into a flute or cocktail coupe, then garnish.

For more information, please read the press release below in its entirety. Cheers!

RÉMY MARTIN LAUNCHES ‘QUE VIVA RÉMY SOBREMESA’ CAMPAIGN TO CELEBRATE HISPANIC HERITAGE MONTH AND HONOR THE CHERISHED SOBREMESA TRADITION

Notable culinary and cocktail personalities come together to share custom recipes featuring Rémy Martin 1738 Accord Royal and Tercet and create lively experiences while embracing cultures of excellence and the tradition of Sobremesa

NEW YORK—To celebrate Hispanic Heritage Month, Rémy Martin is launching Que Viva Rémy Sobremesa, an homage to Sobremesa, the post-dining tradition found throughout many Hispanic cultures. The campaign brings influential culinary and mixology tastemakers together, including award-winning chefs Carlos Gaytán and Paola Velez, and renowned Mixologist Josué Gonzaléz, to create a variety of curated cocktails featuring Rémy Martin 1738 Accord Royal and Tercet along with culinary pairings showcasing how Sobremesa comes to life across different Hispanic cultures. The tastemakers and their pairings will be presented at a series of immersive events across the country.

With nearly 300 years of excellence producing Cognac Fine Champagne and symbolizing the diversity of craft and tradition, Rémy Martin continues to be at the forefront of moments that bring people together. As the kickoff to Hispanic Heritage Month, Rémy Martin is immersing cocktail connoisseurs in Sobremesa, a tradition where one finds themself lost in deep conversation – talking, sipping cocktails and spending time with those who matter most – often for hours after dining.

Getting lost in conversation and savoring the post-dinner experience is the essence of Sobremesa and with Que Viva Rémy Sobremesa, Rémy Martin will challenge the notion of “last call” by signaling Sobremesa as the start of the night ahead. After all, the most dispiriting words heard when you’re out are “last call” and “kitchen’s closed” – but with Rémy Martin the last call can now be the first call of the rest of the night.

“Rémy Martin’s passion for excellence, family values and traditions offer a moment for us all to partake in Sobremesa and we are thrilled to be teaming up with a variety of notable personalities to kick off the celebration this Hispanic Heritage Month,” said Tina Reejsinghani, Vice President of Luxury Brands at Rémy Cointreau Americas. “Enjoying classic recipes and sparking conversations around the table is at the heart of Hispanic heritage and Rémy Martin is excited to lead in the festivities of the time-honored tradition.”

As part of the campaign and the brand’s ongoing commitment to advancing the world of gastronomy, Rémy Martin is teaming up with the Hispanic Restaurant Association (HRA) and their Global Ambassador, Chef Fernando Stovell to support and further the careers of aspiring chefs, culinary entrepreneurs, restaurant managers, and industry professionals within the Hispanic community, uplifting the next generation of gastronomic excellence.

“At the Hispanic Restaurant Association, our vision is focused on fostering education and uplifting the Hispanic community across generations,” said John Jaramillo, Co-Founder and CEO of the Hispanic Restaurant Association. “As we work to elevate the culinary artistry within the Hispanic community, our partnership with Rémy Martin will play an integral part in extending our mission and vision across the country, allowing us to continue fostering a richer culinary perspective and build lasting bridges within the community.”

Throughout Hispanic Heritage Month, Rémy Martin will invite cocktail and culinary aficionados in New York and Miami to join the brand at the Rémy Martin Sobremesa Social Club. The events will feature lively entertainment alongside the unique dishes and cocktails curated by Carlos Gaytán, Paola Velez and Josué Gonzaléz, each inspired by their backgrounds. Chef Carlos, Chef Paola and Josué Gonzaléz will make appearances at the events, to showcase their creations and celebrate Sobremesa with guests. For more information and to purchase tickets for a VIP table experience, please visit Rémy Martin Sobremesa Social Club. Proceeds will benefit the Hispanic Restaurant Association.

Rémy Martin will also be capturing the essence of the Sobremesa tradition with a series of curated craft cocktails that highlight the opulent and complex flavor profiles of Rémy Martin 1738 Accord Royal and Rémy Martin Tercet. To keep the flavors going strong and accentuate each Rémy Martin expression, world-renowned chefs Carlos Gaytán and Paola Velez and Mixologist Josué Gonzaléz have created a variety of culinary and cocktail recipes representing their own cultures. From the Flamingo 1738 cocktail inspired by Josué’s childhood in Cuba and Chef Carlos’s nod to the sweet and savory elements of Mexican cooking with the Foie and Chocolate dish, to Chef Paola’s Nutmeg Pavlova recipe which combines her Dominican roots with the flavors of autumn, this campaign will take patrons on a culinary journey around the world.

The Que Viva Rémy Sobremesa campaign was developed in collaboration with creative agency FRED & FARID New York and will be featured across billboards and kiosks in Houston, TX; Los Angeles, CA; Miami, FL and New York, NY in addition to digital media and social content throughout Hispanic Heritage Month. For more information on the campaign, recipes and events, visit RemyMartin.com and follow along on social media on Instagram @RemyMartinUS | Twitter @RemyMartinUS | Facebook RemyMartinUSA

#QueVivaRemySobremesa #TeamUpForExcellence

ABOUT RÉMY MARTIN

Since 1724, the House of Rémy Martin has produced premium spirits that consistently appeal to the world’s most discerning connoisseurs. A profound love of the land, a continuity of family ownership and a passionate commitment to excellence has sustained Rémy Martin for nearly three centuries. As a result of its masterful production and generations of tradition in Cognac, the House of Rémy Martin produces award winning Cognacs Fine Champagne including Rémy Martin® XO, which was named Cognac of the Year 2022 by USA Spirits Ratings, and The Cognac Masters gold medal winning Rémy Martin® Tercet®, Rémy Martin® 1738 Accord Royal and Rémy Martin® V.S.O.P.

ABOUT HISPANIC RESTAURANT ASSOCIATION

Looking ahead, our vision is focused on fostering education and uplifting the Hispanic community across generations. We aspire to create a comprehensive impact by fostering economic growth and entrepreneurial endeavours through a range of interconnected networks, educational platforms, events, and supportive infrastructure.

ABOUT CHEF CARLOS GAYTÁN

A native of Mexico, chef and restaurateur Carlos Gaytán has made his mark in the culinary industry. From a young age, he was enamored with cooking, exploring a full spectrum of flavor while perfecting heirloom recipes alongside his mother. With a seamless unification of his Mexican heritage and his love of French culinary style, Carlos became the first Mexican-born chef to earn a coveted Michelin star in 2013. Gaytán appeared on Bravo’s Top Chef in 2013 and has since been widely featured as a host and judge on numerous culinary programs. He has opened two award-winning restaurants — one in Mexico in 2017, and another in Chicago in 2019. In 2024, he will open three new restaurants in California.

ABOUT CHEF PAOLA VELEZ

Award-winning chef, entrepreneur and community activist Paola Velez is the multihyphenate for a new generation of lifestyle personalities. Growing up between the Bronx and the Dominican Republic, Velez is fluent in cultures of city and island life, bringing infectious positivity and a keen eye on the micro-trends of the moment to the table. Her unique perspective has catapulted her to the pages of Food & Wine, and garnered her a nomination for Rising Star Chef by the James Beard Foundation, “Pastry Chef of the Year” from Esquire and “Best New Chef” from Food & Wine. Most recently, Paola founded the organization Bakers Against Racism as a social community, connecting bakers and creatives all across the globe to fight against racism in all of its forms. Looking ahead, under her lifestyle brand Dōekï Dōekï, a reflection of her Afro-Latina heritage, Velez is launching a series of collaborations and pop-up dinners across the country in addition to her first cookbook in 2024.

ABOUT MIXOLOGIST JOSUÉ GONZALÉZ

Josué Gonzaléz is a Miami native with a true passion for hospitality. As a culinary student at Johnson & Wales University, he accepted a barback position at Zuma Miami to gain industry experience, setting a decorated front-of-house career into motion. Josué found a friend and mentor in renowned Miami bartender Rob Ferrara, helping both achieve great success with openings at Swine Southern Table & Bar, Lure Fishbar and The Rum Line. As an individual, Josué was named one of Zagat Miami’s 30 under 30 in 2014, and went on to win and place in the top of various cocktail competitions. As part of the opening team at Sweet Liberty Bar & Supply, Josué was integral in the venue as it was awarded Best New Cocktail Bar in America at the Tales of the Cocktail Spirited Awards.  In 2018 Josué moved to Washington DC to open and manage the bar at Seven Reasons, a Latin concept, with Enrique Limardo. The restaurant was named Best New Restaurant in America 2019 by Esquire Magazine. Josué brings his talents and experience back to Miami in his work with Unfiltered Hospitality where he makes experiences better for people in every facet of the service industry.

Image: Rémy Martin

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