Distillery | KRG Hospitality

April 14, 2021by David Klemt David Klemt No Comments

5 Books to Read this Month

5 Books to Read this Month

by David Klemt

Spring is traditionally the time when we’re meant to reinvent or otherwise better ourselves. These books can help you do just that.

Some will help you expand or enter this business, others will boost your marketing and social media, and a couple will help you refresh your drink menu.

With restrictions easing and vaccination rates in the United States growing, now’s the time to improve yourself and your business.

Prepare now for pent-up demand for in-person dining and drinking.

Food Truck Business Guide for Beginners

Looking to enter this industry with a food truck or expand your existing business with one? This book is a great place to start.

Food Truck Business Guide for Beginners is a comprehensive guide that covers:

common mistakes that lead to food truck failure, and exactly how to avoid them;
the most successful ways to secure funding;
how to master marketing;
best practices for passing health inspections;
tackling and mastering marketing for your business;
and many more topics.

The Terroir of Whiskey: A Distiller’s Journey Into the Flavor of Place

Dr. Rob Arnold is a plant biochemist and the master distiller at TX Distillery. To say he understands the science of whiskey and terroir is obvious.

What’s less obvious is the direction Dr. Arnold’s book heads into. He takes readers to distilleries in Kentucky, Ireland, Scotland and elsewhere, but he takes things further.

In The Terroir of Whiskey, Dr. Arnold shines a light on plant breeders, local farmers, and distillers bringing back “lost” grains. These same innovators are also attempting to create new grains to further develop terroir.

This book will definitely enhance your whiskey knowledge and engagement with guests.

Rad Cocktails

Yes, this book’s description states that it focuses on the home bartender.

No, that doesn’t mean bartenders, operators, and other hospitality pros can’t learn from it.

Rad Cocktails, in addition to including awesome illustrations, also embodies a growing cocktail trend: simplification. Innovative cocktails don’t have to be complicated or take ten minutes to build.

Beautiful Booze: Stylish Cocktails to Make at Home

Natalie Migliarini, also known as Beautiful Booze, has more than 95,000 followers on Instagram. Her cocktail recipes, photographs and mastery of social media help her stand out in a roiling sea of influencers.

Her first book, Beautiful Booze: Stylish Cocktails to Make at Home, also targets home bartenders…on the surface. This book, creative cocktail recipes, can help elevate anyone’s bartending skills. The beautiful photography will also help inspire anyone to take their social media shooting to the next level.

Hacking the New Normal: Hitting the Reset Button on the Hospitality Industry

Alright, this may seem self-serving. However, I wouldn’t have written the foreword for a book I didn’t believe this book would truly help people.

Millions of hospitality industry professionals’ lives were imperiled at the start of last year. We continue to innovate and adapt to overcome unprecedented challenges.

Hacking the New Normal addresses the need for an industry-wide reset and seeks to guide operators through rebuilding for the long term, and to strengthen the industry moving forward.

Image: Mikołaj on Unsplash

Stay Weird neon sign with purple background

April 13, 2021by David Klemt David Klemt No Comments

Stand Out with Weird Holidays: April

Stand Out with Weird Holidays: April

by David Klemt

Want to stand out from from other restaurants and bars in your area? Then commit to keeping it weird.

Several “holidays” are set against every date on the calendar. They range from mainstream to food focused to weird.

Focus on the latter to raise eyebrows, carve out a niche for your restaurant or bar, and attract more guests.

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

April 14: National Reach as High as You Can Day

This is a holiday that will likely work best on social media. Just like there’s always a holiday and people like to say “there’s always a tweet,” there’s always a hashtag.

Use this day (and its accompanying hashtag) to highlight staff who want to participate, along with your venue.

Of course, if you want to involve your guests in person, go for it. Put your head together with your staff and get creative.

April 15: National Take a Wild Guess Day

You can take promotions centered around this day in several directions. The simplest way is to use the holiday to engage with followers on your social channels.

Consider borrowing from the “wrong answers only” posts on Instagram. Post a blurred, pixelated or “censored” item, like a bottle. In the caption, ask followers to “guess” what it is—wild guesses only.

This holiday also works well with blind tasting events.

April 16: Wear Pajamas to Work Day

I’d say this holiday is fairly self-explanatory. Let your front-of-house staff participate by wearing pajamas, with full team buy-in. Or, encourage your guests to wear their pajamas to your restaurant or bar.

If this holiday fell on a Saturday or Sunday, this would be a great day for a brunch promo. Of course, there’s nothing to say you can’t execute a Friday brunch.

April 16: National Bean Counter Day

In the United States, this holiday is taking place a month before the Tax Day deadline. If you’re so inclined, you could offer a deal to all the tax preparers and accountants in your area.

Although, you can also go a completely different direction. You can fill a large jar with beans—coffee would be great—and have guests guess how many there are. You can even post the jar full of beans to social, encouraging follower engagement. Closest guess wins a prize.

April 22: National Jelly Bean Day

Oh, hey… Remember that bean-counting holiday from way up there? I wonder if that bean-guessing idea would work for this holiday…

April 23: National Talk Like Shakespeare Day

If you think you or your social media manager can handle it, encourage your followers to describe your restaurant or bar as though they’re the Bard himself.

Or, as a Shakespearean translator would explain it, “Encourageth thy followeth’rs to describeth thy restaurant ‘r bar as though those gents’re the Bard himself.”

April 25: National DNA Day

Yesterday, I shared how our DNA plays a significant role in how we perceive bitter flavors. National DNA Day would be a great time to plan and execute a PTC strip and cocktail event.

April 27: National Tell a Story Day

How well do your loyal guests know you and your brand? How well do they know your staff?

National Tell a Story Day is an excellent time to leverage the story features on your social channels. Show off the venue and tell your brand’s story. If you have team members who want to participate and tell share a story, that’s a great way to engage with followers and guests.

April 28: National Superhero Day

If there was a ever a day to encourage your staff and/or guests to dress up for a fun time… National Superhero Day also leverages Shudder’s “Halfway to Halloween” event.

To take this holiday in another direction, you can also celebrate members of your community who give back to others by giving back to them.

“Weird” holidays aren’t just a dynamic way to engage with guests. Asking your team for ideas for holiday promotions is an excellent way to keep them engaged, which is a smart way to retain staff.

Image: Dan Parlante on Unsplash

April 7, 2021by David Klemt David Klemt No Comments

Let’s Talk About Bitcoin

Let’s Talk About Bitcoin

by David Klemt

Bitcoin and cryptocurrency in general are no strangers to media attention, but it seems like the coverage is increasing.

Of course, it helps when people who are excellent at garnering attention talk about it. Consider the explosion in news stories and online conversations about cryptocurrencies when Elon Musk tweeted about Dogecoin.

Then there’s the mystery factor. Many people don’t understand Bitcoin, Ethereum or other forms of cryptocurrency. The word itself—”crypto”—lends to the enigmatic air of this form of currency.

As a business owner, you should at least have a cursory understanding of cryptocurrency. After all, some people may try to pay you with it and you should at least consider meeting these guests where they are.

Before we proceed: I’m not a cryptocurrency or financial expert. I’m sharing information I’ve come across in my research over the years. Don’t make any financial or business decisions solely based upon what you read here—learn more for yourself and consult with experts before making investment decisions.

Crypto is Relevant to Our Industry

I’ve written about cryptocurrency—Bitcoin in particular—in the past. In one article, I wrote about a “nightclub” within a nightclub in Las Vegas devoted to cryptocurrency.

The club, MORE, had its own “coin” (MORE Coin), accepted other cryptocurrencies, and tailored its experience to crypto fanatics. It has become more of a members’ club, offering access to and preferential treatment at an array of venues, along with other perks. The club’s coin is purchased via Bittrex, a popular exchange platform

There are also hotels in Las Vegas (and other cities, of course) that accept cryptocurrencies like Bitcoin for rooms. Bitcoin ATMs scattered throughout Vegas allow people to access their wallets and convert crypto to cash.

Paying with crypto may become more commonplace than we think, sooner than we think.

Crypto Basics

Let’s address the term “cryptocurrency.” In this case, “crypto” is a reference to the encryption technology that protects a cryptocurrency network.

Bitcoin and other digital tokens, such as Ethereum and Dogecoin, are decentralized currencies. That is, there’s no main server, no government, no bank that controls or owns the network.

A digital token is incredibly difficult—if not impossible—to counterfeit or “double-spend.” This is due to sophisticated encryption technology and the blockchain.

The blockchain is a peer-to-peer distributed ledger technology that makes it incredibly difficult (again, if not impossible) to take over a crypto network. Every transaction is public knowledge; open to inspection; duplicated and distributed throughout an entire network; and unalterable.

It’s that last point that made Bitcoin viable. Unlike attempts in the past to create digital currencies, the blockchain makes crypto trustworthy in that someone can’t just make up a new currency, wait for people to buy in, and then take it all for themselves.

Bitcoin has become synonymous with cryptocurrency. It’s the first viable digital token as we know it, the most popular, and at the moment, the most valuable.

Interestingly, it’s widely accepted that Ethereum is the second-most popular digital token but the most-utilized blockchain.

Finally, Bitcoin is finite. There are exactly 21 million Bitcoins—that’s it. Once they’re all mined, no more will be made.

Beyond the Basics

Fewer than 2.4 million Bitcoins remain to be mined. Currently, one Bitcoin is worth about $58,000.

A person uses a digital “wallet” to send and receive Bitcoin. Some people store their unique wallet on their computer; a separate and dedicated hard drive; a thumb drive; or a “cold” wallet, a device that’s not connected to the Internet to protect it from hackers.

If a person loses their wallet or password, they lose their Bitcoin(s). There’s no way yet to know how many of the 21 million Bitcoins have been lost.

Bitcoin is a software system. Therefore, it can be copied. That’s the reason crypto beyond Bitcoin—such as the aforementioned Ethereum and Elon Musk-promoted Dogecoin—exists.

One of the biggest questions people have about bitcoin is, “Is this a scam?” Search online and you’ll get a mix of results.

There are high-profile people like Jack Dorsey and Elon Musk who are apparently heavily invested in crypto. There are critics calling the whole thing a scam and fraud. Then there are some former critics, like Jordan “The Wolf of Wall Street” Belfort, who were highly critical and suspicious of crypto but have changed their tunes.

Support from hotels, restaurant chains, financial institutions and other legitimate businesses seems to answer the scam question. However, operators must proceed with caution, as they would for any change in their business or investment.

Accepting Bitcoin Payments

Businesses that decide to accept Bitcoin and/or other digital tokens will need a POS app or platform to do so.

Starbucks is reportedly using Bakkt to accept Bitcoin.

Other options include BitPay Checkout, Bitcoin Cash Register, Anypay, and Paytomat.

Some solutions create a QR code the guest scans with their phone to complete a transaction. Others convert digital tokens to cash to accept payment.

It’s important to note that the IRS treats cryptos differently than US dollars. Before choosing to accept cryptocurrencies as payment, consult with your tax professional and accountant to ensure you don’t run afoul of any laws.

Canadian operators should note that while crypto is legal in the country. However, only the Canadian considered official legal tender in Canada. Again, this is why it’s so important to consult relevant experts before proceeding with crypto in your business.

Disclaimer

The information provided in this post does not constitute investment advice, financial advice, trading advice, or any other sort of advice. Neither the author nor KRG Hospitality recommend that any cryptocurrency should be bought, sold, or held by you. Conduct your own due diligence and consult your financial advisor before making any investment decisions.

Image: Bermix Studio on Unsplash

April 2, 2021by David Klemt David Klemt No Comments

The 5 Ds of Bystander Intervention

The 5 Ds of Bystander Intervention

by David Klemt

One non-negotiable for operating a restaurant, bar, nightclub or other hospitality venue is ensuring the safety of guests.

Harassing, threatening and violent behavior cannot be tolerated, period. Some venues employ trained and certified security tasked with keeping patrons safe.

However, not every business in this industry, restaurants for example, employ or retain security personnel. There are online and in-person security courses that owners, managers and staff can complete, and I encourage operators to look into doing so. Some courses can not only empower participants, they can result in the lowering of insurance premiums they’re considered so effective.

Additionally, it’s wise to study conflict resolution and de-escalation. Both are valuable skills in hospitality and other areas of our lives.

In the meantime, a global movement called Hollaback! has come up with the Five Ds of Bystander Intervention. These began as the Three Ds by Green Dot in the early 2000s. In 2015, they became the Four Ds. In 2017, a fifth “D” was introduced.

You’ll find the Five Ds below. Not every step works perfectly on the operations side but they’re still helpful. Doing nothing is simply not an option.

Distract

Per Hollaback!, distraction is a subtle and creative way to intervene, and the goal is “to derail the incident by interrupting it.” The witness employing distraction engages the victim of harassment directly, ignoring the harasser. Hollaback! provides the following examples of distraction:

Pretend to be lost. Ask for the time. Pretend you know the person being harassed. Talk to them about something random and take attention off of the harasser.
Get in the way. Continue what you were doing, but get between the harasser and the target.
Accidentally-on-purpose spill your coffee, the change in your wallet, or make a commotion.

It’s important to note that staff will need to read the situation if they witness harassment. Also, some of the above examples don’t really work in a hospitality setting, but you understand the idea.

Delegate

Delegation is simply asking for assistance or help. In many cases, if a staff member is witnessing harassment they’ll have a manager on duty on which they can rely for assistance.

Conversely, a manager can delegate to a staff member to employ the distract technique. In this situation, the staff member engages the victim of harassment and asks if they want them to call law enforcement. The manager can also direct a staff member to call law enforcement.

However, as Hollaback! notes, “a history of being mistreated by law enforcement has led to fear and mistrust of police interventions,” so the victim may not want to involve police. However, the venue must also protect themselves, so it may be necessary to involve law enforcement for documentation and other purposes.

Document

Along with protecting the victim and putting a stop to harassment, documentation is a crucial step.

All hospitality venues should be set up to complete incident reports. This protects victims (and therefore other guests and the community) and the business.

Hollaback! instructs a bystander to assess the situation first. If another bystander is already intervening, the witness must assess their own safety. Record the incident only if safe to do so.

Anyone who records the incident should ask the victim what to do with the recording. Don’t post it online—this is a traumatic experience and doing so is a violation in and of itself.

Delay

As Hollaback! explains, many incidents of harassment take place very quickly. It’s possible the incident will be over before a bystander can distract, delegate or document the harassment.

In a restaurant, bar or other hospitality setting, the harasser may exit the venue immediately, before staff can step in. That doesn’t mean everything is back to “normal.”

Hollaback! suggests engaging the victim in the following ways:

Ask them if they’re okay and tell them you’re sorry that happened to them.
Ask them if there’s any way you can support them.
Offer to accompany them to their destination or sit with them for awhile.
Share resources with them and offer to help them make a report if they want to.
If you’ve documented the incident, ask them if they want you to send it to them.

Direct

More than likely—and unfortunately—this is the step most familiar to bartenders, servers and other front-of-house staff.

Direct means to confront the harasser directly. Of course, this is the riskiest step.

Hollaback! suggests assessing the situation to ensure the bystander is safe physically; the victim is safe physically; the victim wants someone to intervene; and the situation may be unlikely to escalate if they confront the harasser.

Again, operators will have to come up with a plan for addressing harassment, threats and violence. Staff must be aware of policies and what’s expected of them, and they should feel comfortable sharing their thoughts on policies.

Incidents can happen at any type of venue in any location at any time. Doing nothing, however, is unacceptable.

Disclaimer

This content is for informational purposes only, and should not be used as legal or other advice. This article does not constitute professional advice, nor does any information constitute a comprehensive or complete statement of the matters discussed, the law, or liability. This information is of a general nature and does not address the circumstances of a specific individual or entity. The reader of this information alone assumes the sole responsibility of evaluating the merits and risks associated with the use of any information before making any decisions based on such information.

Image: Pixabay

Preparing a cocktail at home for living room tasting event

April 1, 2021by David Klemt David Klemt No Comments

Meet Customers Where They Are, Part 2

Meet Customers Where They Are, Part 2

by David Klemt

We seem to approaching a semblance of normalcy but some consumer behaviors—drinking at home among them—are likely here to stay.

Per Distill Ventures, the living room is the new tasting room.

Consumers are drinking at home, drinking during the day, and prioritizing convenience.

So, will you get creative and meet your customers where they are—their living rooms?

The New Tasting Room

Fresh off their third whisky summit, Distill Ventures believes consumers will seek out more at-home experiences.

This is partly due to some regions around the world locking down. Additionally, consumers know they can partake in experiential guests at home.

Consider what some brands are putting together to engage with people at their homes:

Cynar: CynArts & Crafts, Paint by Numbers Virtual Party, complete with brushes and paints sent to participants.
Campari: Decoding the Science of Bitter, including a PTC strip sent to participants to gauge their bitter response.
Espolòn Tequila: Virtual Espolotería, an online bingo-style game.

Distill Ventures and the panelists of their third summit see people’s living rooms as a viable place to engage consumers.

While the latest summit focuses specifically on whisky distillers, brand marketers and retailers, the findings are transferrable.

Don’t Be Left Out

If consumers are going to engage more with brands at home, operators must meet them in their living rooms. That means going beyond offering standard delivery.

Obviously, operators need to attract guests to their brick-and-mortar locations. And pent-up demand for in-person experiences is set to explode.

However, that initial explosion in traffic will eventually taper off, and more quickly than we think. That gradual slow-down will make digital engagement crucial.

This industry requires adaptability and agility to survive and thrive. Operators and their teams will need to focus on social, YouTube and webinar-style engagement to engage with current and new customers.

Bar team members who want to participate can share recipes and techniques via live videos. Of course, kitchen team members can do the same.

Scheduling digital events—guided tastings and cooking classes—can also draw customers. Operators should just make sure they don’t give too much away to their audience so they’ll feel compelled to visit in person as often as they can.

Succeeding with these events opens the door to potentially lucrative collaborations. Operators should reach out to brand partners for branded, themed events.

With enough lead time, packages can be put together and delivered with partner help. Of course, in “help” in this context means “dollars and/or product.”

You’ll never know what support your partners are willing to provide if you don’t ask.

Image: Boozy Events on Unsplash

March 31, 2021by David Klemt David Klemt No Comments

PPP 2nd Draw vs ERTC vs RRF: What to Know

PPP 2nd Draw vs ERTC vs RRF: What to Know

by David Klemt

Some regions, states and people are behaving like the pandemic is over but our industry is still in crisis.

There is good news in the form of a few resources business owners can utilize.

Let’s take a look at the the Employee Retention Tax Credit, second Paycheck Protection Program draw, and Restaurant Revitalization Fund.

Paycheck Protection Program

Today is your last day to apply for the second PPP draw. That’s why we’re starting here and why, if you haven’t yet, you need to apply now.

According to the Small Business Administration, a borrower is (generally speaking) eligible if they:

previously received a first-draw PPP loan and will use (or has used) the full amount only for authorized uses;
have no more than 300 employees; and
are able to demonstrate at least a 25-percent reduction in gross receipts between comparable quarters in 2019 and 2020.

Applicants seeking a second draw need to know the following:

No extension date has been announced for the second PPP draw.
Each single borrower is limited to a $2 million loan.
Using the first draw as a model, the average loan size may be around $128,000.
The terms of second-draw PPP loans are the same regardless of who is borrowing and who is lending.

Use SBA Lender Match to find a lender today.

Employee Retention Tax Credit

When it comes to relief for this industry, much of the focus is on the PPP and RRF.

However, the ERTC can be a valuable resource for eligible restaurants.

First, what’s the ERTC? It’s a payroll tax credit—fully refundable—meant to persuade employers to keep and compensate their workers when they’re not fully operational.

Second, who’s eligible? To claim ERTC for a given calendar quarter, restaurant operators must show:

full or partial suspension as a result of orders from a governmental authority limiting commerce, travel or group meetings due to Covid-19; or
they experienced a significant decline in gross receipts during the calendar quarter when compared to 2019.

The above criteria apply to the quarter an operator is applying for the ERTC.

To better understand the ERTC, we’re including an example from the National Restaurant Association:

Henry’s Hotcakes (HH) received a $120,000 PPP loan in April 2020. These funds were fully spent on its 10 employees by September 20, 2020. Previously, HH would not have qualified for ERTC. However, HH can now reach back to its wages for the fourth quarter of 2020 (OCTDEC) and obtain up to $5,000 per eligible employee (50% credit of up to $10,000 in eligible wages) in ERTC.

Click here to read more about the ERTC on the IRS website.

Restaurant Revitalization Fund

The Restaurant Revitalization Fund is the most recent relief resource to come to fruition, so it stands to reason that it’s top of mind for most operators.

According to recent reporting, the SBA—the agency responsible for overseeing the RRF—is aiming for early April to launch the fund.

Here’s what restaurant and bar operators need to know now:

A grant is equal to the amount of a restaurant’s pandemic-related revenue losses.
Grants are tax-free.
To calculate a grant amount, subtract 2020 gross receipts from 2019 gross receipts. Operations must deduct first-draw PPP and second-draw PPP loans, even if they’re paid back or forgiven.
Any economic disaster loans—Economic Injury Disaster Loans, for example—are not RRF deductions.
Per the SBA, operators do not need to register for a System for Award Management (SAM.gov) account, meaning they no longer need to acquire a DUNS number.

The following are eligible RRF expenses:

broad operational expenses;
payroll, rent, and mortgage interest;
“normal” food and beverage inventory;
various supply purchases (PPE, for example);
property damage costs related to public disturbances in 2020;
debt obligations to suppliers before covered period;
interest payments on any other debt obligations incurred prior to Feb 15, 2020; and
refinancing EIDL.

Bear in mind that when it comes to the PPP, ERTC and RRF, changes in requirements and other processes are subject to change. Operators must stay up to date on these and other programs.

Disclaimer

This content is for informational purposes only, and should not be used as legal, tax, investment, financial, or other advice. This article does not constitute professional and/or financial advice, nor does any information constitute a comprehensive or complete statement of the matters discussed or the law. This information is of a general nature and does not address the circumstances of a specific individual or entity. The reader of this information alone assumes the sole responsibility of evaluating the merits and risks associated with the use of any information before making any decisions based on such information.

Image: Freddie Collins on Unsplash

March 16, 2021by David Klemt David Klemt No Comments

Rediscovering Your Guests in 2021

Rediscovering Your Guests in 2021

by David Klemt

Labatt Breweries of Canada wants operators to get to know their guests all over again in 2021.

Luckily, this isn’t a massive undertaking. However, it requires commitment and an understanding of altered consumer behavior.

During the 2021 Restaurants Canada Show, Labatt presented “Rediscover Your Guest: The 2021 Consumer.”

Christina Veira, bar and beverage curator for the RC Show, hosted the digital session. Labatt panelists included Michelle Tham, head of education and certified Cicerone, and Megan Harris, director of insights and strategy. Casey Ferrell, vice president of US and Canada Monitors for Kantar Consulting rounded out the panel.

Who’s Your 2021 Guest?

The good news is that Canadians are still consuming beverage alcohol. The less-good news is that they’ve gotten used to drinking mainly at home.

In fact, per Megan Harris, 95 percent of beverage alcohol occasions now happen at home. Harris also says there’s excitement about a return to in-person restaurant and bar service. However, several pandemic-driven behaviors will persist, including:

Takeout
Delivery
Daytime drinking
Working from home

Guests are set to unleash a torrent of pent-up demand when they can safely return to restaurants and bars. They want to indulge themselves, have fun and new experiences, but also feel safe.

Generally speaking, younger guests are more tolerant of risk. Conversely, guests over 50 years old are more cautious.

Vaccine Influence

Per Ferrell, there are four distinct vaccine groups in Canada and the United States:

People have gotten a Covid-19 vaccine.
People who can’t wait to get a Covid-19 vaccine.
People who are unsure about Covid-19 vaccines.
People who refuse to get a Covid-19 vaccine.

Ferrell says to remove the final group on that list. Doing so shows that about two-thirds of Canadians (and Americans) are in the process of getting the vaccine. Therefore, operators need consider how to address vaccination safety along with vaccination requirements for guests and employees. For Ferrell, the best lever to pull is the one that addresses Covid-19 and vaccine risks.

Additionally, just because the calendar ticked over to 2021 doesn’t mean everything is different. Accordingly, Ferrell feels that Q1 is the “More of 2021” stage of this year. He expects people to open up their bubbles during possibly Q2 or Q3, the “Less Covid-19” stage. Parties that include multiple households will return in force in Q4.

How to Meet 2021 Guest Expectations

First, we must be cautious when people return to restaurants, bars and other venues en masse. That initial boost in traffic driven by pent-up demand will ebb quicker than one would expect.

To get people through the doors, operators will need to focus on:

health and safety;
staff expectations and training;
social interactions and the joy deficit; and
guest experience and journey.

Harris sums up the first point succinctly: Anything that can be touchless, should be touchless. Operators should expect contactless features to remain moving forward. The expectation for hygiene will also remain. Guests will want to see employees cleaning and sanitizing, for instance.

Speaking of employees, operators must address the role they’ll plan in crowd management. Unfortunately, management and employees will have to be ready to enforce health and safety protocols strongly.

As Ferrell notes, long-term lockdown means large swaths of the population need to re-learn how to interact with others. One way to drive guests through restaurant or bar doors is promoting the role they play in socializing. Hospitality businesses facilitate social interaction—it’s one of the industry’s greatest strengths. Equally, restaurants and bars fill people’s joy deficits.

Operators, says Harris, need to consider:

every way they can offer an experience guests can’t have at home;
how they can capitalize on the daytime drinking experience;
how to extend the guest experience—pre-visit and post-visit;
how to attract older guests to their venues;
leveraging patio spaces; and
focusing on messaging that promotes escapism and excitement.

Another interesting consideration concerns table distances. Every operator needs to weigh square feet per guest and distancing tables. Social distance will likely remain important to guests for at least a little while post-pandemic.

Bonus

Ferrell answered a question I asked about Las Vegas specifically. Dayclubs, which largely focus on elevating pool parties, are an integral part of Vegas hospitality.

So, how can they signal their commitment to health and safety as relates to infections?

Ferrell’s answer is that evidence appears to indicate that pools are Covid-19 infection spreaders. Therefore, dayclub operators should focus more on the crowd control aspect of health and safety. Additionally, messaging should focus on indulgence.

After all, says Ferrell, not much is more indulgent than saying, “I’m going to take the day for myself and go to a daylife venue.”

Image: Nick Hillier on Unsplash

February 8, 2021by David Klemt David Klemt No Comments

Introducing KRG Mindset Coaching

Introducing KRG Mindset Coaching

by David Klemt

Seeking an alternative to complete start-up planning and project management? The solution you’re looking for is KRG Mindset Coaching.

Just like every operator is unique, each project brings with it distinct challenges that require individual approaches and plans.

Some projects are already under way but need help moving forward. KRG Mindset gives these projects the help needed to cross the finish line and achieve long-term success.

What is Mindset Coaching?

Owning a hospitality business may look great on paper, but starting a hospitality business can be really quite stressful:

There are what seem to be endless hours of planning.
There are numerous third-parties involved.
There are often hundreds of thousands of dollars at stake.
There are over 500 unique tasks to complete.

It doesn’t matter if this is your first, fifth, or twentieth project—it’s crucial that you be both prepared and organized when opening a new concept or expanding operations.

However, not every project requires our full suite of targeted solutions, which includes feasibility studies, conceptual planning, business planning, brand development, guest experience strategies, food & beverage programs, and operational assessments.

If you’re beyond the idea stage but find your project is struggling to reach the finish line, we’re here to help. And just like a project in its earliest days, you’ll receive the unique, fully customized KRG treatment.

Is Mindset the Solution for You?

KRG Mindset provides a unique, coaching-style program that helps your start-up make continual forward progress:

Receive a dedicated consultant who will be an approachable advisor for you and your project. They’ll review and navigate your start-up questions and challenges, and be your compass to provide you with a clear path towards a successful opening.

Weekly 1-on-1 video/phone sessions with access to a private calendar: a weekly session in which we evaluate the past week and define required actions for the next week with a focus on budgets, timelines, and industry-specific consulting.

Your dedicated consultant is also available for second opinions and the review of: key documents, location, concept, branding, layouts, equipment, menu, service, technology, labor and financial optimization, system development, operations, marketing, and overall strategic clarity.

Your consultant will help you see the blind spots throughout your project, positioning you to maintain your budget and desired opening date.

Your consultant will help you make strong, educated decisions throughout your start-up project that will have a positive impact on the successful start of your restaurant, bar or hospitality brand.

And finally, your advisor will coach you so you become more confident, energized, and motivated about your opening while holding you accountable and helping you become a better leader through the creation of new habits, communication methods, and decision-making processes.

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January 26, 2021by David Klemt David Klemt No Comments

California’s Restrictive Regional Stay-at-Home Order Rescinded

California’s Restrictive Regional Stay-at-Home Order Rescinded

by David Klemt

Expectation became reality yesterday when Governor Gavin Newsom rescinded California’s highly restrictive regional stay-at-home order.

It had been reported for at least a day prior that Gov. Newsom was expected to do so on January 25.

The order, which choked the life out of restaurants, bars and other businesses, has been in place since the start of December 2020.

As we reported several weeks ago, a group of Orange County operators pushed back against the order shortly after it was imposed. The #OPENSAFE collective released a statement announcing their intention to protest Gov. Newsom’s stay-at-home order by remaining open for in-person dining.

Other states that imposed seemingly arbitrary and illogical orders that crushed restaurants and bars also experienced open defiance from operators. One of the highest-profile protests came from New York City restaurants.

Speaking for the first time in well over a week about California’s efforts to combat Covid-19, Gov. Newsom said, “Everything that should be up is up, everything that should be down is down.”

That’s an interesting claim given California experienced a record number of Covid-19-related deaths on January 21 with 761. During his press conference, the embattled governor claimed he lifted his stay-at-home order due to ICU numbers and not because of the multiple lawsuits filed against him or the current recall campaign.

Rather, Gov. Newsom said that he made his decision based on Covid-19 cases and hospitalizations decreasing while vaccination rates are reportedly trending upward. However, as one source cited, just 26 percent of California’s allotted vaccine doses had been administered as of last week.

The rescinding of the regional stay-at-home order doesn’t mean that businesses can reopen and resume operations as usual. Each of the state’s counties will be color-coded according to California’s “Blueprint for a Safer Economy.” Projections will be set aside for actual transmission rate data.

Tier 4 is color-coded yellow and its Covid-19 transmission risk is labeled “Minimal.” Tier 3 is orange and “Moderate,” where as Tier 2 is red and “Substantial.” Tier 1, which is purple, is labeled “Widespread.”

At the moment, most counties in California are purple.

Restaurants located in a Tier 1 county can offer only outdoor in-person dining. Those in Tier 2 can offer indoor dining but only at 25-percent capacity or 100-person maximum capacity (whichever is lower). Tier 3 bumps capacity to 50 percent or 200 people, and Tier 4 dictates a maximum of 50 percent capacity.

As expected, bars (along with breweries distilleries) that don’t serve food receive much harsher treatment than restaurants. Those located in a county designated purple or red must close. Bars in orange counties can open for outdoor service only, and those in yellow counties can offer indoor service at 50-percent maximum capacity. Bars “where [a] meal is provided” follow restaurant guidelines for the four applicable tiers.

Movie theaters, for context concerning how bars are being treated, are subject to the same guidance as restaurants in California’s blueprint. Such venues aren’t exactly known for providing meals.

Before operators who have chosen to work within California’s guidelines throw their doors open, they need to know two things. One, county officials are permitted to impose their own restrictions. If they choose to do so, those restrictions can be stricter than those that come down from state officials.

Two, for those operators in Los Angeles County, confusion remains regarding outdoor dining. Some interpret the rescinding of the state’s prohibition on outdoor dining as a lifting the ban. However, LA County implemented its own ban before the state did so. That county-issued ban expired on December 16 but outdoor dining was banned under the statewide stay-at-home order.

It may seem cut and dry that the expiration of the county order and the lifting of the state’s ban shifts LA County to Tier 1 restrictions. Operators should make sure they’re clear to resume outdoor service before incurring the costs associated with doing so.

How long California will revert back to the state’s Blueprint for a Safer Economy is anyone’s guess. Operators in several states have found themselves caught in a vicious open-close, open-close vortex. At any rate, 25-percent capacity restrictions will still more than likely make it more cost-effective for some operations to remain closed for indoor service.

Image: Paul Hanaoka on Unsplash