Data | KRG Hospitality

September 27, 2023by David Klemt David Klemt No Comments

Canadians Preparing for NHL Opening Week

Canadians Preparing for NHL Opening Week

by David Klemt

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

Canadian and America flags flying together

September 20, 2023by David Klemt David Klemt No Comments

Indies in the US & Canada: The Numbers

Independents in the US & Canada: The Numbers

by David Klemt

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

September 12, 2023by David Klemt David Klemt No Comments

Fantasy Sports, Sports Betting on the Rise

Interest in Sports Betting and Fantasy Sports Grows

by David Klemt

A recent CGA by NIQ On Premise Impact Report for August, 2023 reveals an interesting insight into consumer behavior and expectations.

To be clear, all the data on this new one-pager is useful. However, a particular revelation stands out from the rest, for me.

The CGA by NIQ US On Premise Impact Report for August 24, 2023 addresses:

total on-premise sales;
dining versus drinking occasions;
cost of living impact in the past month; and
consumer interest in fantasy sports and sports betting.

It’s that final bullet point that I find compelling. However, let’s check out the numbers for the first three points before we jump into sports.

To download your own copy, please click here.

August by the Numbers

In comparison to August 20, 2022, check value is up one percent to $50.09. Ticket count, however, is down one percent to 1,569.

As one would expect, dining occasions outweigh drinking occasions. Seventy percent of consumers have dined out in a restaurant or bar in the past two weeks.

Compared to July 2o23, that’s a two-percent increase in dining traffic.

Over the course of the same amount of time, 40 percent of consumers have gone drinking in a bar or restaurant. That’s a decrease of one percent in comparison to July 2023.

Considering that many families travel in the month of August before kids head back to school (or to drop them off at university), these numbers make sense.

Of course, cost of living may also be impacting dining and drinking occasion. Most consumers report no changes to the frequency with which they go out for drinks. Some consumers even report going out more frequently for drinks. But some are also cutting back.

For example, 28 percent of consumers have decreased how often they go out for drinks. Eleven percent are consuming lower quality drinks when they do go out, and nine percent are decreasing the “quality” of the establishments they visit.

That said, 20 percent of consumers are increasing drink quality and 21 percent are increasing establishment quality per visit. Seventeen percent are increasing how often they go out for drinks.

Fantasy Sports & Betting

This, as you may have guessed, is the statistic that I find most compelling.

Fantasy sports and sports betting has been on the rise for some time in the US. Who among us isn’t the target of sports-betting-app ads when streaming or watching sports?

Sports bar operators and operators who can position themselves as sports fans’ “third spot” will find this next number interesting.

According to CGA by NIQ’s latest report, 63 percent of consumers revealed they had plans for NFL week one. Those plans included participating in daily fantasy sports or sports betting.

So, it would be wise for operators who will air NFL games this season to ensure they’re catering to fantasy football and sports betting fans. Becoming the hub for fantasy sports groups in your area can increase traffic, sales, and loyalty. And, of course, it opens up the door to many traffic- and revenue-generating sport- and team-themed LTOs.

Again, to download this new report for yourself, please click here.

Image: Adrian Curiel on Unsplash

Barbecue chicken wings, chili peppers, and chili flakes

August 15, 2023by David Klemt David Klemt No Comments

Top-performing Menu Items in the US

Top-performing Menu Items in the US (So Far)

by David Klemt

Thanks to a recent mid-year report from F&B intelligence platform Datassential, we now know the top-performing menu items in the US.

For the low, low price of filling out a handful of fields, you can download a copy of Datassential’s “Foodbytes: 2023 Midyear Trend Report” for yourself.

There’s plenty of useful data packed into this short report. You may find some of the top food items a bit surprising.

But First…

Datassential does more than just list the top mid-year menu performers in their latest report. There are also a couple of interesting datapoints for operators to consider.

The first piece of information is an alarming statistic: 54 percent of consumers are of the belief that “tipping culture has gotten out of control.”

As we’ve reported earlier, it’s likely that a major driver of “tip fatigue” comes from retail. The expectation for consumers to tip at a restaurant, bar or nightclub is ingrained deeply in American culture.

However, consumers throughout America are being prompted to tip after just about every transaction they’re attempting to complete. In fact, it’s not just retail that has been encouraging (in some cases, guilting) people to tip. Some contractors are also adding tip lines when handing over tablets to clients so they can pay their invoices.

One result is that servers and bartenders are reporting lower tips; guests are so over tipping that they’re pushing back against the practice in venues where they’d traditionally have no problem doing so.

Of course, tip fatigue isn’t the only reason consumers are pushing back against tipping. Many people feel that operators should increase what they pay staff. Indeed, some people feel that operators are asking them to subsidize their employee pay. Whether they’d be happy to pay higher prices remains to be seen.

Fads Aren’t Bad?

Whenever we cover trends or discuss them with clients, we caution against chasing too many (or the “wrong” trends). And fads? It can be even riskier to hop on the bandwagon of something that may never even reach the trend stage of its lifecycle.

However, likely due to the ubiquity of TikTok, consumers expect restaurants to embrace fads. According to Datassential, 67 percent of consumers overall “want to see more fads at restaurants and retail.”

That number jumps to 74 percent when focusing on Millennials and Gen Z.

So, while we still caution operators about jumping on fads (or “micro trends”) and trends, that doesn’t mean be too cautious. If a fad or trend works with your brand and won’t cost much to feature, at least give it consideration.

Not sure you’re great at identifying fads that will work for your business? Ask your staff which fads and trends are hot at the moment.

Speaking of Hot…

Alright, let’s take a look at the F&B items Datassential identifies as popular at the midway point of 2023.

Again, I encourage you to download the report in its entirety. You can do just that by clicking here.

But for those who want instant gratification, check out these menu items:

Super Duper: Let’s kick things off with the hottest chain LTO, the Denny’s Super Slam. Per Datassential, restaurant chains have already featured in excess of 2,000 LTOs in 2023. The F&B intel agency tests them all, and the Super Slam is wearing the LTO crown at the moment.
Chef Chatbot: Datassential tapped ChatGPT to create a burger recipe and had Midjourney create an image for the resulting Caprese Avocado Burger. More than half of consumers surveyed—57 percent—want to try it at a restaurant.
Big Winner: Datassential asked consumers a simple question: Which would you rather eat for the rest of your life, a hamburger or a hot dog? A staggering 87 percent chose hamburgers, meaning just 13 percent of consumers would choose a hot dog over it’s burger buddy.
What a Pickle: Back in March we checked out Slice’s Slice of the Union report, and it predicted pickle pizzas would be a hot trend this year. Well, Datassential has crunched the numbers and says 40 percent of consumers are aware of this pizza style already. Looks like Slice may be proven right by the end of the year.
Speed Demon: Curious about the fastest-growing menu item on the US? Well, wonder no more: Datassential says it’s the barbecue chicken wing. Over the past year, they’ve grown 373 percent on menus across the States. Datassential posits the overall growth of chicken and the embracing of flavor trends like Carolina gold barbecue sauce are contributing factors.

There’s a lot to unpack here, so I’ll leave you to it. Just remember that when it comes to fads and trends, there’s a fine line between what’s hot, what’s not, and jumping on the wrong one. Good luck!

Image: Ahmed Bhutta on Pexels

Person with tattoos pouring coffee from French press

August 14, 2023by David Klemt David Klemt No Comments

Should You Offer Your Guests Brunch?

Should You Offer Your Guests Brunch?

by David Klemt

Is brunch on its way to becoming a lucrative daypart that can grow traffic, increase revenue, boost guest engagement, and promote loyalty?

If a report from Square is anything to go off, yes.

Owing in part to changes in consumer behavior from 2019 to now, brunch appears to be a solid traffic and revenue generator. The number of people working from home is impacting daypart spending, which makes sense. Traditional office workers will often pop into a QSR or cafe for coffee and breakfast on their way in to work. And when lunch rolls around, they tend to head out to restaurants nearby for their break.

Now, the data support the belief that more people are staying home on weekdays and unleashing pent-up demand for socializing and dining out on the weekends. And apparently that demand is rather voracious, because brunch appears to be on the rise.

In 2019, just over eight percent of all dining dollars were spent on Saturdays during traditional brunch hours. That has grown to just over ten percent this year.

In terms of engagement and bringing more brand awareness, the term itself is growing on social media platforms.

Along with revisiting hours of operation, it may be wise for operators to consider offering Saturday or Sunday brunch.

Bristory

Yes, that’s a brunch-style portmanteau of “brunch” and “history.” No, I’m not proud of myself but I’m leaving it in.

The portmanteau “brunch” is believed to have first been coined by a British writer named Guy Beringer in 1895. He included the word in an article he wrote for Hunter’s Weekly. Beringer was making the case for noontime meal that combined breakfast and lunch.

In arguing for what may be the world’s first hybrid meal, Beringer wrote that, “the arguments in favor of Brunch are incontestable. In the first place it renders early rising not only unnecessary but ridiculous. You get up when the world is warm, or at least, when it is not so cold. You are, therefore, able to prolong your Saturday nights…”

The word would appear a year later in a Pennsylvanian publication called the New Oxford. More than 30 years later, brunch was on its way to becoming “a thing” in the US.

Oh, and there are arguments that an American reporter, Frank Ward O’Malley, who should credit for the word “brunch.” Those who believe this is the case say O’Malley created the portmanteau some time between 1906 and 1919. As is the case with many classic cocktails, the origin of brunch is at least somewhat hazy.

By the 1970s, the stigma that once came with brunch—that drinking publicly during the day could harm one’s reputation—began to dissipate.

Brunch by the Numbers

According to Square, brunch is appealing for several reasons.

Let’s take a look at this infamous daypart by the numbers.

9.8 percent: Growth in the number of restaurants in the US offering breakfast and brunch in 2022 alone.
10 percent: Amount of overall spending in restaurants on Saturdays between the hours of 8:00 AM and 1:00 PM in 2023.
35 million: Number of #brunch Instagram posts, and the number is growing.
4.5 billion: Number of TikTok views of posts with #brunch.
71 percent: Number of Americans who wish restaurants in the US would serve breakfast items all day.

To me, the most striking statistic is that brunch spending now accounts for ten percent of all restaurant spending.

That spend is logical when we think about who tends to enjoy brunch: people with time and money to spend on a leisurely, all-day meal.

As professor Farha Ternikar, author of Brunch: A History, has said, “Brunch continues to grow anywhere there is disposable income or time.”

So, operators who are considering offering brunch for the time or investing more into brunch have some questions to answer: Who is my target audience? What’s the population density of my market? Who has disposable income and time? Should I offer brunch on Saturday, Sunday, or both days? Does brunch work for my concept? Which venues near me are already offering brunch?

Answer those questions and speak with your staff before jumping feet first into this potentially lucrative daypart.

Image: Helena Lopes on Pexels

August 4, 2023by David Klemt David Klemt No Comments

iPourIt Releases Their 2023 Pour Report

iPourIt Releases Their 2023 Pour Report

by David Klemt

Interactive self-serve beer experience platform iPourIt‘s latest report, the 2023 Pour Report, is now available for download and review.

iPourIt is a pioneer in the self-serve beverage space. While it may seem counter-intuitive to some, many guests have shown time and again that they enjoy using self-serve walls. For these guests, a not in any way insignificant number, iPourIt installations enhance the guest experience, increase loyalty, and boost revenue.

And while many people associate iPourIt and self-serve programs with beer, these systems can also pour wine, cocktails on tap, spirits, non-alcohol beverages, and soft drinks.

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Another benefit from iPourIt? Transparency and sharing of data. The company doesn’t limit providing valuable guest behavior insight to their clients. Rather, they make the data they collect available to anyone. Simply head to their website, fill out a few fields, and gain important beverage insights.

Anyone curious can choose between a standard report and a “pro” version. Both are free to download and peruse. People can also read our article that dives into their fourth-annual report via this link.

Below you’ll find key takeaways from their 2023 report. I strongly urge operators to download and review either report.

The Who

We agree that demographics are a metric that people and businesses often misuse. Valuegraphics can be far more effective for businesses looking to build loyalty and boost revenue.

Still, demographics can provide beneficial insights.

First, let’s look at how men and women used iPourIt systems in 2022. Men poured 20,477,288 ounces last year, whereas women poured 10,848,435 ounces. The average per pour for men was 6.4 ounces in comparison to 5.3 ounces per pour from women. On average, men spent $14.72 per visit to an iPourIt-equipped location; women spent $12.24.

Next, the generational breakdown. IPA was the number-one style poured for Baby Boomers, Generation X, and Millennials. For legal-drinking-age Generation Z drinkers, IPA came in second; their top pour style was cider. Likewise, Lager claimed second place for Boomers, Gen X, and Millennials. Second was IPA for Gen Z, and Lager was third. Wheat beer was third place for Boomers, fourth for Gen X and Millennials, and fifth for Gen Z. Sour came in fifth for Gen X and Millennials fourth for Gen Z; for Boomers, the style didn’t rank among the top five. Stout clinched the fifth spot for Boomers.

Finally, in terms of traffic, men of every age group poured more ounces than their female counterparts.

The What

Below, the top 10 styles of beer poured by men:

Fruit beer
Pale Ale
Blonde
Pilsner
Stout
Sour
Wheat beer
Cider
Lager
IPA

In descending order, the top five (download the report for the top ten) products poured by men were Michelob Ultra, Bud Light, Golden Road Brewing Mango Cart, Coors Light, and Modelo Especial.

And now the top styles of beer or category of beverage poured by women:

Stout
Fruit beer
Blonde
White wine
Hard seltzer
Wheat beer
Sour
Lager
IPA
Cider

Also in descending order, the top products poured by women were Michelob Ultra, Mango Cart by Golden Road Brewing, Bud Light, Ace Pineapple Cider, and Coors Light.

The Where

The 2023 Pour Report by iPourIt breaks the US down into five regions: West, Southwest, Midwest, Southeast, and Northeast.

Because our American head office is in Las Vegas and our hotel consultant is in Pennsylvania, we’ll look at the West and Northeast.

The top-five pours for the West in 2022 were:

While the top-five pours in the Northeast were:

For the curious, Bud Light and Coors Light are categorized as American-style Light Lagers, 805 is a Blonde Ale, Mango Cart is a Wheat Ale, and Modelo Especial is a Mexican-style Pilsner. Blue Moon and Allagash White are both Belgian-style wheat beers (or Witbiers), Boom Sauce is a Double IPA, Juice Bomb is a Northeastern IPA, and Stella Artois is a Lager.

For further insights, please download this year’s iPourIt report here.

Image: cottonbro studio on Pexels

March 27, 2023by David Klemt David Klemt No Comments

Why Pickleball Should Have Your Attention

Why Pickleball Should Have Your Attention

by David Klemt

The explosive popularity of pickleball and its legions of rabid players should have the attention of restaurant, bar, and hotel operators.

In fact, the sport may just result in the next Topgolf-esque eatertainment concept.

According to an October 2022 Fortune article, pickleball is the fastest-growing sport in America for three years running. That article follows previous coverage from an array of publications that come to the same conclusion.

In Canada, the popular sport is also growing fast. It’s up against soccer, lacrosse, and cricket, but the numbers are impressive. In 2020, estimates showed 350,000 Canadian households playing pickleball. As of last year, that number was growing past 900,000.

Another sign that the sport is gaining incredible traction throughout North America? Doctors are encountering growing numbers of pickleball injuries. The Journal of Emergency Medicine says that about 19,000 people suffer pickleball injuries per year.

That may not seem like a lot when considering how many Americans play. According to the Association of Pickleball Professionals, there are 36.5 million Americans playing, from beginners to professionals.

Speaking of professional pickleball, there are professional leagues and teams. And those teams have the attention—and backing—of big-name sports celebrities. Major League Pickleball (MLP) boasts investments by Lebron James, Draymond Green, and Kevin Love. Tom Brady and Kim Clijsters are investing in an MLP expansion team.

Attention-grabbing Statistics

There’s a website—Pickleheads—that helps people locate pickleball courts. When I visit the site it shows me three casino resorts with courts immediately.

And the site just happens to have a page of useful statistics. I choose to accept that these stats are accurate.

Those who want to take a look themselves can do so by following this link. However, I’m going to share a few below:

Pickleball growth: 158.6 percent over the last three years
Top age bracket: 18 to 34 years old
Compound annual growth rate through 2028: 7.7 percent

Also per Pickleheads, the only popular sports with higher participation rates than pickleball are running and hiking.

The Next Topgolf?

The stats above should get operators’ creative juices flowing. The current growth of the sport along with the largest age group, growth projections, and support in the form of leagues, teams, and celebrities, is highly appealing.

Will a pickleball-forward eatertainment concept be the next Topgolf? It’s possible, and that’s why people considering their first or next concept need to look into pickleball.

The sport is perfect for our industry. It’s easy to learn, simple to play, and popular with most operators’ ideal age bracket—ages 21 to 34. However, pickleball is also very popular amongst the 50 to 70 set, a group with disposable income and time to indulge their interests.

Then there’s the undeniable fact that the sport is often described as fun and social. There are even articles lauding pickleball for encouraging networking.

Finally, there are organizations with which pickleball-centric eatertainment concepts can partner. An illuminating example comes from Shake Shack.

Toss and Spin, a racket sports organization, is partnering with Shake Shack this year. Their 2023 campaign is called the Shake Shack Pickleball Club. This nationwide activation centers around a nationwide tour across America featuring one-day pickleball clinics for all skill levels and tournaments.

One can only assume that this tour, backed by such a visible restaurant brand, will introduce even more people to pickleball. In turn, that creates an even larger pool of potential customers for the right concept.

Opportunity

We speak with a hospitality group pursuing an F&B-driven pickleball concept on the Bar Hacks podcast.

Brian Harper, a partner in Competitive Social Ventures and the company’s senior vice president of sales and marketing speaks about Pickle and Social on episode 94. Not only do his partners on the leadership team see potential for the sport, they love to play it themselves.

Should you think you have a solid idea for a successful pickleball concept, let us know.

Our industry standard feasibility studies will help you select the right market and site. Our fully customized concept development plans will help you and others visualize your big idea. And our in-depth business plan will provide a realistic roadmap for you to throw open your doors and march toward success.

Someone out there has the next big eatertainment concept inside their head. Is it you?

Image: Brendan Sapp on Unsplash

March 24, 2023by David Klemt David Klemt No Comments

Addressing Employee Theft

Addressing Employee Theft

by David Klemt

Recent posts about employee theft in the hospitality industry throughout Canada and the US have the KRG Hospitality team talking.

Indeed, the statistics are startling. For instance, there’s the claim that a staggering 75 percent of employees admit to stealing from their employers “at least once.”

A few years back, the Retail Council of Canada reported that while “customers” stole $175 on average, employees stole $2,500 before being caught.

Then there’s the incredible economic impact. Multiple sources claim employee theft in the US costs businesses $50 billion annually. In Canada, theft costs businesses more than $1 billion per year. Both numbers are shocking.

Looking at US restaurants specifically, the number ranges from $3 billion to $6 billion in losses due to employee theft. According to Business.com, employee theft affects four percent of a restaurant’s sales and accounts for 75 percent of shortages in inventory.

At this point, you’re probably Googling security cameras. But hold on for a moment.

Disclaimer

Before proceeding, know this: I’m going to make a few points that will seem like victim blaming. In part, this perception will be the result of my addressing recruiting, hiring, onboarding, training, the leadership team, and workplace culture.

Let me be clear: I’m not excusing employee theft. I don’t think there’s any justification for it.

Despite what a (hopefully) small number of loud voices claim on various social media platforms and forums, I don’t think it’s acceptable to steal from a corporation or business owner. No, theft isn’t a justifiable response to feeling slighted by ownership or leadership. And no, it’s not “okay” because a company generates “so much” revenue, has insurance, and can “write it off.”

With that out of the way, let’s proceed.

People are Going to Steal

Here’s one immutable fact: You’re going to hire someone who’s going to steal from your business.

Is your business up and running and serving guests? You employ someone right now who has either stolen from you already or is going to steal.

So, you can run your business under a cloud of suspicion and distrust. Or, you can improve your odds of reducing theft and ferreting out thieves before they do too much damage.

Again, you can install security cameras and place them above each POS terminal and every cash drawer. You can ensure you have clear, cutting-edge CCTV coverage of the entire bar and dining areas. Walk-ins and storage areas can have clear, high-resolution camera coverage.

Honestly, you should have that type of coverage. That type of security can improve employee and guest safety, and your insurance carrier will likely be happy about it.

But you don’t need to impose an atmosphere of suspicion, fear, and intimidation along with the cameras. If you were an employee, would you want to work somewhere that makes it clear you’re always under suspicion? Would you want to work alongside a leadership team whose default setting is that all employees are thieves unworthy of trust?

Workplace Culture

You’re never going to have a theft-free business, period. That’s another reason to not “lead” with fear, anger, and suspicion.

Truly, all that style of leadership will do is drive good, honest employees out. So, the approach should be attracting honest workers. You build a strong, trustworthy team through respect and empowerment.

Yes, there will be employees who take advantage of that respect. They were going to behave that way and steal or otherwise disrespect you, your business, and the team regardless.

Putting in the work to reflect on your leadership style and that of your leadership team pays dividends. It aids in recruitment and fosters an atmosphere of respect and honesty.

Become known for a healthy, positive workplace and you’ll attract the best workers. Nurture that culture and the team will police itself; they won’t tolerate anyone harming the business.

Am I suggesting you view your business through rose-colored lenses? Absolutely not. Install security cameras. Maintain the right insurance coverage. Conduct regular inventory checks. Review comps and voids for irregularities. Limit access to cash. Outline what constitutes theft—including time theft—and make consequences clear.

And here’s a crucial item: Prove you respect and care about your workers. Not say it, prove it.

You don’t need to know their life stories and everything going on in their lives. But you can let it be known that if they’re struggling with something, you and your leadership team are there to listen and help how they’re able.

Nothing you do will eradicate employee theft completely. You can, however, reduce it and learn to quickly stamp it out. And you can do that while maintaining a happy, healthy workplace.

Image: Tobias Tullius on Unsplash

March 15, 2023by David Klemt David Klemt No Comments

Slice Releases 2023 “Slice of the Union”

Indie Pizzeria App Slice Releases 2023 Report

by David Klemt

The annual Slice of the Union report from independent pizzeria ordering app Slice offers excellent insight into the indie pizza space.

Per the company’s website, Slice serves all 50 states and works with 19,000 pizzerias. For context, that’s a network of pizzerias more than double in size in comparison to Domino’s.

In my opinion, then, the company is well-positioned to deliver data regarding the indie pizzeria space.

Additionally, Slice says they save independent operators money. To date, Slice claims partners have saved more than $265 million in fees that would have gone to third-party delivery services.

In part, that’s due to a 2021 innovation by the company. At the International Pizza Expo in Las Vegas in August of 2021, Slice unveiled fixed-price, tiered packages for partners.

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Essentially, Slice intends to help local, indie pizzerias boost their reach, discoverability, and revenue. The company’s mission is “empowering independent pizzerias.” In part, Slice accomplishes their mission to “Keep Local Thriving” by offering indie pizzeria operators access to technology and services that rival the big pizza chains.

Below you’ll find some of the insights from the 2023 Slice of the Union that most stand out to me. To review the report in its entirety yourself, please click here. Not only is it an informative read, it’s actually fun.

Ordering Occasion

Kicking things off, ordering occasions. As all operators should know, many guests seek out particular cuisine, drinks, or venues dependent upon their dining or drinking occasion.

In the 2023 Slice of the Union, Slice takes a look at a couple occasions that motivate people to order pizza: sports and awards shows.

Now, it’s no surprise that people order pizza to enjoy while watching sports. So, since that’s common knowledge, Slice goes deeper and identifies the top sports leagues:

Football
Basketball
Baseball
Hockey

No mention of my two favorites, F1 and MotoGP, but at least hockey makes the cut. (My Vegas side says, “Go Knights!” but my born-in-Chicago side says, “Go ‘Hawks!”)

When we look at awards shows, the top spot may be somewhat of a surprise:

People’s Choice Awards
Tony Awards
Emmy Awards
Golden Globes
The Oscars

Interestingly, the Grammys only manage an honorable mention. And there’s something poetic about pizza being the “people’s choice” for the People’s Choice.

Another bit of compelling data. Slice says that most people buckle and give up on their New Year’s resolution to keep away from pizza on January 13.

What’s in a Name?

There are certainly some creative pizzeria names out there.

However, Slice identifies not just some of the most common names but how many pizzerias use them:

Joe: 206 pizzerias
Sal: 206 pizzerias
Tony: 114 pizzerias
Johnny: 56 pizzerias
Ray: 43 pizzerias
Nino: 21 pizzerias

Flavors on the Rise

Wondering what the top topping is? What Slice sees as the pizza trends to watch?

Well, Slice has the answers to those questions (and more) in their annual report.

Pepperoni, as Slice says, “is a classic.” So, it wouldn’t provide much insight to just say, “Hey, pepperoni is popular.” Operators who offer pepperoni—and why wouldn’t they?—are already aware of its ubiquity.

Instead, Slice identifies the topping that’s showing the most growth. Per Slice, mushrooms has shown up on 8.9 percent more pizzas. Also, ranch dressing showed up on 9.7 percent more pizza orders in 2022.

Now, which trends may gain more significant footholds in the pizza space this year? Slice identifies two in their report:

Roman-style pizza
Pickle pizza

A Roman-style pizza is thin crust and pushes the toppings out all the way to the edges. A pickle pizza features—shocker—pickles heavily. According to Slice, this style of pizza normally includes a garlic sauce and mozzarella cheese.

Again, you’ll want to check this report out for yourself as there’s much more useful information. Click here to read it now.

Image: Dylan Sauerwein on Unsplash

March 14, 2023by David Klemt David Klemt No Comments

SevenRooms Email Marketing Integration

SevenRooms Introduces Email Marketing Integration

by David Klemt

Today, SevenRooms announces a new marketing innovation that integrates with the platform’s Automated Email feature: Email Marketing.

This is more evidence of SevenRooms’ continued growth. The company began 2023 by adding their first-ever chief marketing officer. Just two months later, SevenRooms announced a new investor: Enlightened Hospitality Investments, spearheaded by Danny Meyer.

Additionally, offering this new tool to operators makes clear the platform’s intent to truly be an all-in-one operations solution. Email Marketing, for example, can replace third-party email services. Streamlining marketing makes it simpler for operators and their teams to ensure they keep guests engaged with their venue and brand.

And, of course, including effective tools within a single platform can lead to reduced costs and the relief of pain points. When systems are difficult to use, some operators are less inclined to want to actually use them. That’s a waste of valuable resources.

Combined with Automated Emails, SevenRooms Email Marketing gives more control over marketing to operators. Not only are emails triggered based on various tags, the emails can be customized fully. And, to ensure marketing runs smoothly for everyone, operators will have access to templates if customization isn’t necessarily in their wheelhouse.

You’ll find the SevenRooms Email Marketing press release in its entirety below.

SEVENROOMS EXPANDS MARKETING SUITE WITH INTEGRATED EMAIL MARKETING

New Email Marketing Tool Provides Key Data Insights and Revenue Potential for SevenRooms Clients

NEW YORK (March 14, 2023)—SevenRooms, a global guest experience and retention platform for the hospitality industry, has announced a new solution and expansion of its marketing suite for hospitality operators worldwide: Email Marketing. The product will work in conjunction with SevenRooms’ Automated Emails, a set of personalized, trigger-based emails sent to customers on behalf of the operator, to continue to engage guests once they’ve visited a venue.

Email Marketing enables SevenRooms customers to send one-time, customized marketing emails directly within the SevenRooms platform to give operators more control over the way they use their guest data. Having ownership of this guest data allows operators to build their brand through direct touchpoints with guests to drive loyalty and repeat visits. It also provides detailed insights into email performance with metrics that matter to their business, including showing the reservations, covers and revenue attributed to each email.

Email Marketing supports operators with a solution that is connected throughout a restaurant’s tech stack and removes the need to use third-party email service providers that create additional work for staff trying to manage email preferences across multiple systems. It is directly linked to the SevenRooms CRM and operating system giving operators full control over their messaging and who receives it by using Auto-tags or Client tags to segment marketing audiences. Additionally, operators using Email Marketing have the ability to create either fully customized emails with an easy-to-use visual editor or utilize curated templates.

The new product also enhances the experience for guests of SevenRooms customers by allowing them to stay in touch or up-to-date with their favorite venues, receive targeted messages and promotions, or simply control the venues from which they receive marketing. Leveraging Email Marketing, restaurants can use their guest data to tee up relevant, customized emails. For example, sending guests who have purchased wine at least five times an invite to a dinner with their sommelier, or excluding guests with shellfish allergies from an email about their annual clambake.

“SevenRooms Email Marketing product provides restaurants with functionality that simply does not exist in the email marketing platforms that restaurants traditionally use,” said Allison Page, Co-Founder and Chief Product Officer at SevenRooms. “We enable restaurant marketers to leverage their robust SevenRooms guest database to quickly and easily build targeted campaign segments, eliminating the need to manually export and import mailing lists between systems. While other email service providers promise revenue, SevenRooms can prove it with accurate data on the revenue generated by each campaign to truly measure email marketing performance.”

“The combination of SevenRooms’ Email Marketing and Automated Emails makes guests feel very connected with us,” said Alyssa Fenu, Sales & Marketing Manager at Mango’s Tropical Café. “Being able to choose who our emails are going to — a specific customer segment or broadcasting to our whole database — makes the process a lot simpler. And it’s super easy to understand how many people opened our emails, how many people actually made a reservation, and how much money we’re making because it’s all in one place.”

For more information about SevenRooms and its services, please visit www.sevenrooms.com.

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 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: MGM Resorts International, Mandarin Oriental Hotel Group, The Cosmopolitan of Las Vegas, Wynn Resorts, Jumeirah Group, Wolfgang Puck, Michael Mina, Bloomin’ Brands, Giordano’s, LDV Hospitality, Zuma, Australian Venue Company, Altamarea Group, AELTC, The Wolseley Hospitality Group, Dishoom, Live Nation and Topgolf. www.sevenrooms.com

Image: Brett Garwood on Unsplash