Concept | KRG Hospitality

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June 19, 2024by David Klemt David Klemt No Comments

Concept Development: Idea to Execution

Restaurant Concept Development: From Idea to Execution

by Nathen Dubé

A big light bulb means a great, big idea is coming.

Creating a restaurant concept is an intricate process that requires blending creativity, an understanding of a given market, and business acumen.

From the initial idea to the grand opening, each step is crucial in ensuring that the restaurant not only stands out in a competitive market but also delivers a memorable dining experience.

In this comprehensive guide, we’ll explore the essential stages of restaurant concept development, providing insights and strategies to turn your vision into a thriving reality.

1. Ideation: Craft Your Vision

The journey of developing a restaurant concept begins with a compelling idea. This idea should reflect your passion, culinary expertise, and a clear understanding of your target market.

Below, how to start down the path from vision to reality.

Identify Your Niche

A deep understanding of the niche you want to fill in the market is critical. Are you aiming for a high-end fine dining experience, a casual eatery, a fast-casual concept, or a food truck?

Research current market trends, consumer preferences, and gaps in the market to find your unique angle.

Define Your Concept

Your concept should be a detailed description of your restaurant’s identity. This includes the cuisine, service style, ambiance, target audience, and overall theme.

For example, are you creating a rustic Italian trattoria, a chic urban sushi bar, or a family-friendly diner?

Create a Vision Statement

A vision statement is a concise description of what you want your restaurant to achieve, and how it will stand out. This statement will guide your decisions throughout the development process.

2. Market Research: Understanding the Landscape

Thorough market research is essential to validate your concept and refine your strategy. This step involves analyzing the competitive landscape, understanding customer preferences, and identifying potential challenges.

Analyze Competitors

Visit and analyze restaurants that could be considered competitors. Evaluate their strengths and weaknesses, menu offerings, pricing strategies, and guest experience.

Understanding what works and what doesn’t can help you position your restaurant effectively.

Understand Your Target Audience

Identify your target demographic in terms of age, income, lifestyle, and dining preferences. Conduct surveys, focus groups, and interviews to gather insights into what will attract and resonate with your guests.

Evaluate Location Options

Location is a critical factor in the success of a restaurant. Analyze different locations based on foot traffic, accessibility, visibility, and proximity to competitors. Consider the demographics of the area to ensure they align with your target audience.

3. Business Planning: Laying the Foundation

A well-crafted business plan is essential for securing funding and guiding the execution of your restaurant concept. It should outline your strategy, financial projections, and operational plan.

Executive Summary

Provide a concise overview of your restaurant concept, including the vision statement, target market, and unique selling proposition (USP).

Market Analysis

Summarize your market research, including competitor analysis, target audience insights, and location evaluation.

Marketing Strategy

Detail how you plan to attract and retain customers. This includes branding, advertising, promotions, and social media strategies.

Operational Plan

Describe your restaurant’s daily operations, including staff roles and responsibilities, supplier relationships, and inventory management.

Financial Projections

Provide detailed financial projections, including startup costs, operating expenses, revenue forecasts, and break-even analysis. This section should also include funding requirements, and potential sources of financing.

4. Branding and Design: Creating an Identity

Your restaurant’s brand and design play a crucial role in attracting guests, and creating a memorable dining experience.

This step involves developing your brand identity, designing the physical space, and creating marketing materials.

Develop Your Brand Identity

Your brand identity includes your restaurant’s name, logo, color scheme, typography, and overall visual style. Ensure that it reflects your concept and appeals to your target audience.

Design the Interior and Exterior

Work with architects and interior designers to create a space that reflects your concept and enhances the dining experience.

Consider factors such as layout, seating arrangements, lighting, and décor. The exterior should be inviting and reflect the brand’s identity.

Create Marketing Materials

Develop a website, social media profiles, menus, and promotional materials that align with your brand. High-quality photography and compelling content are essential for attracting customers and creating a strong online presence.

5. Menu Development: Crafting Culinary Offerings

The menu is the heart of your restaurant concept. It should reflect your vision, appeal to your target audience, and be feasible to execute consistently.

Design a Balanced Menu

Create a menu that offers a variety of dishes that reflect your concept. Ensure a balance of flavors, textures, and price points.

Consider dietary restrictions and preferences to cater to a diverse customer base.

Cost and Pricing

Accurately cost each menu item to ensure profitability. Consider ingredient costs, portion sizes, and preparation time.

Set prices that reflect the value of your offerings while remaining competitive in the market.

Test and Refine

Conduct taste tests and gather feedback from potential guests, industry professionals, and staff. Use this feedback to refine your dishes and ensure they meet your quality standards.

6. Staffing and Training: Building Your Team

Your staff is a crucial component of your restaurant’s success. Hiring the right team and providing comprehensive training ensures a consistent and high-quality dining experience.

Hire Skilled Staff

Recruit chefs, servers, bartenders, and other staff who have the skills and experience needed to execute your concept. Look for individuals who are passionate about your vision and have a strong work ethic.

Develop Training Programs

Create comprehensive training programs that cover everything from food preparation and presentation to customer service and safety protocols. Regular training sessions and evaluations help maintain high standards.

Foster a Positive Culture

Encourage a positive and collaborative work environment. Recognize and reward outstanding performance, and address issues promptly to maintain morale and productivity.

7. Marketing and Promotion: Attracting Customers

Effective marketing and promotion are essential for attracting customers and building a loyal guest base. This involves both online and offline strategies to generate buzz and drive traffic.

Leverage Social Media

Use social media platforms to showcase your restaurant’s unique offerings, engage with potential customers, and build a community. Share high-quality photos, behind-the-scenes content, and promotions to attract and retain followers.

Collaborate with Influencers

Partner with local influencers and food bloggers to reach a wider audience. Inviting them to dine at your restaurant and share their experiences can generate valuable word-of-mouth promotion.

Host Events and Promotions

Organize events such as soft openings, tastings, and special promotions to generate excitement and attract customers.

Consider loyalty programs and discounts to encourage repeat visits.

Public Relations

Reach out to local media outlets and food critics to secure coverage of your restaurant. Positive reviews and features can significantly boost your visibility and credibility.

8. Execution: Bringing Your Concept to Life

The final step is the execution of your concept.

This involves managing the logistics of opening day, ensuring a smooth operation, and continually refining your approach based on feedback and performance.

Prepare for Opening Day

Ensure that all permits and licenses are in place, staff are trained, and inventory is stocked.

Conduct a soft opening to test your operations and make any necessary adjustments.

Monitor Operations

Regularly evaluate your restaurant’s performance, including customer feedback, financial metrics, and operational efficiency. Use this data to identify areas for improvement and implement changes as needed.

Stay Adaptable

The restaurant industry is dynamic, and trends can change quickly. Stay informed about industry developments and be willing to adapt your concept to meet evolving customer preferences and market conditions.

Conclusion

Restaurant concept development is a multifaceted process that requires careful planning, creativity, and execution.

Following these steps to guide your vision and transform it into a brick-and-mortar reality. Doing so will give you the strongest chance to create a restaurant that stands out in the market, and that delivers a memorable dining experience.

Remember, the key to success lies in a clear vision, thorough research, strategic planning, and a commitment to excellence.

Embrace the journey, learn from each step, and watch your restaurant concept come to life, delighting diners and making a lasting impact in the culinary world.

Image: Shutterstock. Disclaimer: This image was generated by an Artificial Intelligence (AI) system.

May 13, 2024by David Klemt David Klemt No Comments

Your Most Underused Feature

The Most Underused Element of Your Business

by David Klemt

What, you’ve never seen a cathedral inside a suitcase with a glowing interior before?

There’s a part of your business that you see and use every day, and yet it’s very likely the least leveraged element of your bar, restaurant or hotel.

If there are couple (or more) areas of your business running through your mind right now, that’s a bit of a red flag. For now, I want you to focus on a specific feature of your venue: the name.

When you were developing your concept, did it have a different name than it does now? Are you proud of the name? Do you think it pops and demands attention?

During his 2024 Bar & Restaurant Expo session, Michael Tipps posited that most operators are averse to attaching an abstract or enigmatic handle to their concept. That is, in his opinion, a mistake.

“The name is the most under-utilized element of a bar or restaurant,” he said plainly.

For context, this is a man who has proudly affixed the monikers Shoo Shoo, Baby and Mama Foo Foo to concepts in Los Angeles and Daytona Beach, respectively. I’m not going to provide more examples since some concepts are yet to be revealed officially, but there’s more label lunacy in the works.

The word “works” is a segue for addressing the fear or being too “out there.” As they say, it isn’t crazy if it works. Part of making sure the name and thematic elements work is developing a concept’s identity. With that achieved, marketing will be far more effective.

Make an Impact

As we tell KRG Hospitality clients, concept development is the fun stage of project planning. It’s a collaborative effort that gives everyone involved the opportunity to be creative.

Moreover, an effective consultant will help their client swing for the fences rather than stay too grounded. The concept development stage shouldn’t be about dumbing down and saying no. The right consultant-client relationship will be about asking, “How can we get to where and who you want to be?”

Tipps, co-founder of Maverick Theory, will tell you that our F&B world is a social experiment. Guests really aren’t coming to buy food and beverages; they’re at your venue to socialize, connect, feel valued.

“It’s not about what you’re doing, it’s about what you’re being while you do it,” he says. So, I think it’s safe for me to say that he would ask why someone would want to be mediocre. Why would they want their concept to blend in rather than stand out?

As he said during his BRE session, “Everyone who wants to build a concept that’s original and blows people away also includes people who build mediocre, cliche restaurants and bars.

If your concept doesn’t make an impact on a guest and make them curious enough to step through the doors, that’s not a great start. Yes, outstanding service is crucial; it converts one-time guests into repeat visitors. However, they need a reason to become a guest in the first place.

Logically, that means the name, signage, and exterior design need to be impactful.

“Steven Spielberg didn’t make a scary shark movie called Scary Shark,” observed Tipps.

Why, then, do people continue to put “restaurant” or “bar” in the name of their business? Fear.

Stand Up and Stand Out

I doubt that a significant percentage of hospitality operators have said the following during concept development: “I’d really like to fade into the background.”

Combined, according to 2023 data, there are more than 810,000 restaurants and bars in the US alone. Add hotels and motels and that number jumps to well over 900,000.

The last thing that will help any of those businesses make money and keep the lights on is to become white noise. Saddle your concept with a boring name and that’s exactly what it will be, from the jump. Why do that to yourself?

As I said in the preceding section, fear. And Tipps would agree with my conclusion.

“You want to do something special but you also don’t want to do anything too esoteric,” said Tipps during his session. That’s the reason we see “restaurant” and “bar” on restaurant and bar signs.

There’s also the fact that things get very “real” for some people when they first open their doors to the public. They’re now in the spotlight, and the pressure to lead their business to success can be overwhelming.

It’s fair to theorize that some owners second-guess their name and branding when their nerves get the better of them. How will they ever live up to a bold, irresistible bar or restaurant name? What if people won’t come to the business if they aren’t 100-percent certain they know it’s a restaurant or bar?

Which would you rather visit? Mama Foo Foo Neighborhood Restaurant and Bar, or Mama Foo Foo? Which has more impact and sparks your curiosity? Which name would make you feel like you’ve arrived somewhere?

What’s in a Name?

Tipps didn’t title his BRE session “How to Name Your Restaurant or Bar.” Instead, his session was called “Cathedral in a Suitcase.”

Does that session title communicate the topic directly? Not exactly, but it certainly had an impact. And that was the point.

Rather than wonder how to name a restaurant or bar, Tipps (and the KRG team as well) wants operators, current and future, to consider different approaches to developing their concepts.

Certainly, we don’t need to label restaurants and bars as restaurants and bars. Further, as Tipps pointed out during his session, we don’t have to make them feel like restaurants and bars. I promise you, people will intuit how you intend for them to use your space.

Per Tipps, and once again, we agree, your restaurant can feel like a movie. Your bar can feel like an album. You can decide, while eschewing stereotypical elements, whether your venue is masculine, feminine, or neutral.

“Creativity is intelligence having fun,” said Tipps, so have fun with your concept in the development stage. That will translate to a fun, engaging venue (with the right systems and standards in place, of course).

From there, collaborate with a designer to transform your concept from vision to brick and mortar that creates connections. For example, add texture, because speaking to our sense of touch elicits a visceral reaction. Give careful consideration to lighting, because your guests want to look good. Make sure every element relates to the name and the theme.

So, what’s in a name? The future of your business.

Image: Shutterstock. Disclaimer: This image was generated by an Artificial Intelligence (AI) system.

February 27, 2024by David Klemt David Klemt No Comments

The Fourth Member of Your Team

The Fourth Member of Your Team

by David Klemt

When looking at your organization, it’s crucial to realize ownership, leadership, and staff aren’t the only members of the team.

There’s another key member, and their input is among the most valuable. And you rely on them for the success of your business. They’re your guests.

It may seem painfully obvious that your guests are integral to the success of your business. After all, your registers won’t ring without guests coming through your doors, placing orders online or via phone, and spending their money at your venue.

When they become regulars—particularly vocal regulars who tell others about your great business—they transform into unofficial brand ambassadors. That’s fantastic marketing that tends to cost you nothing.

However, their importance goes beyond the monetary. Further, it’s more than just free marketing.

Menu Streamlining

Do your guests provide you with feedback? Actually, scratch that; let’s start again.

Do you provide your guests with a simple, convenient way to give you feedback? And do you seek more than a thumbs up or thumbs down for their experience at your restaurant or bar?

It can be difficult to streamline your menu, particularly if you’re unable to look at every item objectively. There are operators and chefs out there who get attached to their personal favorite menu items. That’s fine, until it’s not.

Perhaps a dish took a long time and a lot of work to get just right. Maybe it was a family thing and you’re proud of it.

But if you’re too proud of it and it’s not selling, it’s just costing you money. Keeping it on the menu hoping it will become a hit is bad for business.

A while back, when Bar & Restaurant Expo was Nightclub & Bar, Chef Brian Duffy shared a simple method for streamlining a menu. You run a product mix report, then separate them into three categories: rock stars, solid performers, and dogs.

The former are your top-selling items, and the middle category perform consistently. But the latter…they don’t sell. Worse, if they require ingredients that you don’t cross-utilize to make other dishes or drinks, they aren’t just stagnant, they’re costing you money.

If an item isn’t selling, that’s your guests—the fourth member of your team—letting you know they don’t want it. Removing such items is an easy way to begin the streamlining process. Some of the best bars and restaurants in the world audit their highly anticipated menu launches a few months after their release. Items that aren’t selling are refreshed or removed.

So, when you encourage your guests to give your feedback, ask them what they think about your menu. Also, ask your staff what guests are telling them about your food and drink.

Your Vision

If you’re anything like our clients (or you are one of our clients), you’ve spent a ton of time envisioning your perfect restaurant, bar, cafe, eatertainment concept, nightclub, or hotel.

With that comes a hypothetical but informed vision of the guest journey. You’ll have an idea of how your guests will use your space.

Well, what if your guests turn that idea on its head? How will you react if guests see your vision in a different way?

On today’s episode of the Bar Hacks podcast, guest James Grant says something that I have also been saying for quite some time: like me, he sees guests as an integral member of the team. They do, to a degree, have influence over your concept.

To paraphrase, Grant says guests are half of the reason people open and operate restaurants, bars, cafes, nightclubs, hotels, etc.

As an example, we have a client who saw their space a certain way. We helped develop their bar concept with their vision in mind. However, not long after opening, our client’s guests showed that they had a different perception of the bar. Our client adapted, and the bar team and guests are happy.

The brand didn’t change. Neither did the space, physically. Nor did the cocktail program. However, one key element did change, as far as the type of bar it was intended to be.

As another example, friends of mine opened a bar years back. The space was meant to be an upscale cocktail bar with a relaxed and sophisticated vibe. That vision was achieved, but influential guests added an element: the bar became a high-energy after-hours spot.

At first, my friends weren’t sure about this change or if they should encourage it. But when they saw that revenue and profits were up, well…sometimes change is a good thing.

Adaptation

You may be very proud of items you have on your menu. Along those lines, you may have a very specific vision for your F&B programs that tell the story of your brand and space.

If an item here or there doesn’t catch on, it doesn’t make you a failure. It can be disappointing if your personal favorite turns out to be a dud with guests; don’t take it personally. It’s just business. The items on your menu should earn money, not lose it.

And if a guest reads through your highly curated cocktail, beer, or wine menu and then orders something “basic,” that shouldn’t be seen as a personal affront.

Now, guests deciding your concept is something you never intended it to be is something else. If this happens, it requires looking at the experience, service, brand storytelling, and even the design with a critical eye.

That said, if none of that is “off,” and if your team is happy and profits go up because your guests see your business in a different way, it may be smart to adapt. This is particularly true if your team is making more money and the unexpected new direction is safe.

Operators have usually been creating their concepts in their minds for years. It can be a shock for guests to transform the business into something else.

But if the business is successful because of how guests decide to use it, is that a bad thing?

Only you can answer that question. It may be best for you to identify the “why” behind the possible concept disconnect and stamp it out. However, it may be best to lean into the unexpected new direction.

Image: Edge2Edge Media on Unsplash

December 28, 2020by David Klemt David Klemt No Comments

Make Your Restaurant Concept ABSURᗡ in 2021

Make Your Restaurant Concept ABSURᗡ in 2021

by David Klemt

Those seeking new restaurant opportunities in 2021 should give serious consideration to Absurd! Kitchen Co., KRG Hospitality’s unique turnkey QSR.

Development of the concept was motivated by the realization that operators need to continue to pivot to survive the pandemic and thrive in a post-pandemic world.

“At KRG Hospitality, we immediately pivoted in March 2020 into ‘rescue mode,’ understanding the immediate needs of so many independent operators,” says Doug Radkey, president of KRG Hospitality.

Moving forward into 2021, guests will be more concerned health, safety and their comfort than ever before. Absurd! was developed as a response to heightened guest expectations and to create a path forward for operators in the post-Covid-19 era. Not only is the concept forward-looking, it’s designed for turnkey operation.

Restaurant guests were growing accustomed to the convenience of frictionless ordering, pick-up and delivery. Lock downs, restrictions, and health and safety concerns have pushed delivery and pickup closer to the forefront of guest expectation. Absurd! leverages the latest in technology and utilizes a subscription element to reward loyalty while offering a convenient and safe QSR experience.

In the new era of restaurant operation we can expect guests to be less tolerant of waiting in lines. Multiple publications have published articles hypothesizing that the Covid-19 pandemic we lead to the end of waiting. Considering the importance of social distancing and how commonplace curbside pickup has become, it’s understandable that many guests have developed a preference for speedy, safe service.

Equally understandable is a guest wishing to keep interactions with other people to a minimum. The ability to peruse a menu via QR code or pay their bill using their own device has offered a level of comfort to guests during the pandemic. It’s logical to believe these guest habits are here to stay.

At Absurd! locations there are no traditional lines. By design, there’s no contact between guests and staff. Guests interact with a location via designated pick-up or drive-through areas. In the pick-up area, guests access food-safe storage units through their mobile devices to grab their orders. The drive-throughs only serve delivery drivers or those who have placed pre-orders. Convenient, safe, time-saving restaurant features for a post-pandemic world.

Absurd! cuisine is inspired by Southern flavors and dishes such as loaded chicken strips, fried waffle sticks, breakfast bowls, and sandwiches. There are options for the full range of dietary needs and preferences, such as dairy-free, gluten-free and vegan meat alternatives. Along with a competitive, high-quality menu, KRG Hospitality has developed a retail offerings that include branded dry spices and meal kits, leveraging another trend that has seen significant growth during the pandemic. The concept’s packaging is sustainable, and adding a food truck can expand an Absurd! operation’s reach.

“Approximately 85 percent of the food menu will be prepared on-site, including the seasoning mix and ‘dredge’ for the fried chicken, which is intended to also be gluten-free and dairy-free,” says Radkey. “The brand is able to accomplish this by maintaining a small but robust and strategic menu mix over the breakfast, lunch, and dinner day-parts. Other food items such as the chile cornbread, breakfast biscuits, and sandwich buns will be sourced through regional partnerships.”

While developing Absurd!, KRG has created a loyalty program to go along with it that’s relevant to today’s guest preferences and consumer habits. Loyalty programs have made the news lately, with attention being paid to how they’ve been changing for the past couple of years. Tech has emerged as a driver for such programs, combining guest data and personalized digital interactions to increase loyalty. However, creativity is a crucial element as well. Recognizing the value of a unique but easily understood loyalty program that offers an attractive value proposition, KRG’s approach for Absurd! is a beverage-based subscription service.

“With a low monthly cost of approximately $8.99 USD per month, the Absurd! beverage subscription program, which is optional, gives the brand an easy way to attract customers and convince them to change their traditional F&B ordering habits while building a strong base of loyalty (and data),” says Radkey. “Consumers today are accustomed to low-cost monthly subscriptions. Therefore, we think it is time for restaurants to tap into that opportunity. The ‘unlimited drinks’ within this program include coffee, iced tea, lemonade, and an assortment of flavored soda waters.”

Absurd! Kitchen Co. isn’t unique for the sake of being different. First and foremost, the concept was designed for experienced and new operators alike so they can thrive in the new era of hospitality. The dedication of KRG Hospitality to helping operators flourish with concepts that are scalable, sustainable, profitable, memorable and consistent is ingrained in Absurd’s DNA.

The concept is a recession- and pandemic-proof QSR that doesn’t rely heavy upon day-to-day involvement by the owners, making it ideal for operators of any level, from the neophyte to the experienced hospitality group.

Click here to learn more about Absurd! and visit www.AbsurdKitchen.com to download this turnkey concept’s information packet.

Image: KRG Hospitality