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Celebrate 75 Years of the Margarita

Celebrate 75 Years of the Margarita

by David Klemt

Classic Cointreau Margarita in landscape orientation

Cointreau is inviting you and your guests to celebrate the 75th anniversary of one of the most iconic cocktails on the planet: the Margarita.

That’s not hyperbole, by the way. While the cocktail is famously number one in the US, it’s also the top tipple in a number of other countries.

Focusing on the US, the Margarita certainly sees challenges to the cocktail throne. The Manhattan, Moscow Mule, and Martini have all taken shots at wearing the crown. In fact, the Martini is, as of 2022, sitting in the number two position.

So, there’s an excellent chance that right now, none of what I’ve written underneath the first sentence has registered with a certain type of reader. Declaring that 2023 is the 75th anniversary of the Margarita may have some people apoplectic right now.

Why’s that? Well, it’s because I’m implying that the origin of the Margarita is settled history. This is something that I love about cocktails: the origin stories of the classic cocktails. With few exceptions and modern cocktails, most cocktail origins are shrouded in mystery. Personally, I enjoy the fact that a single drink can give us so many stories and so much to argue about.

Cointreau believes the Margarita can be traced back to Acapulco. The story goes that Margarita Sames, a Dallas socialite, either requested a signature cocktail or created one herself for a party at her vacation home in Mexico. It’s said that her favorite spirits were tequila and Cointreau. As legend has it, Tommy Hilton was partaking in the festivities in Acapulco and enjoyed the cocktail. He added it to the menus at Hilton properties and there you have it—the Margarita started its journey toward securing the cocktail throne.

75 Years

We celebrate the Margarita on February 22 each year. However, the opportunity to showcase your Margarita(s) doesn’t end there.

One of these opportunities is coming up: Cinco de Mayo. This year, May 5 falls on a Friday. That gives you an entire weekend (or week leading up to the weekend of May 5) to feature an LTO menu of Margaritas.

Celebrating the Margarita also gives you and your teams the chance to upsell guests via premium, super-premium, and ultra-premium tequila options.

However, you and your guests can start celebrating this classic today via the Cointreau Margarita Pledge. Simply point guests who order a Margarita made with Cointreau to this website and they’ll have the chance to win a portion of $75,000. Each winner will be awarded $20 by Cointreau to help them celebrate Cinco de Mayo with a Margarita.

Of course, your front-of-house team should also encourage guests to snap a photo of their Margaritas and tag your restaurant or bar (and Cointreau) when posting to social media.

Below, you’ll find three Margarita recipes from Cointreau, along with an alcohol-free recipe. Cheers!

The Original Margarita by Cointreau

The Original Margarita

  • 1 oz. Cointreau 
  • 2 oz. Blanco tequila 
  • 1 oz. Fresh lime juice 
  • Lime wheel to garnish

Combine all ingredients in a shaker and add ice. Shake and strain into a salt-rimmed rocks glass. Garnish with a lime wheel.

The Spicy Margarita by Cointreau

The Spicy Margarita

  • 2 oz. Blanco tequila 
  • 1 oz. Cointreau
  • 0.75 oz. Fresh lime juice 
  • 2 Slices of jalapeño 
  • 2 Sprigs of fresh cilantro 
  • Jalapeño to garnish
  • Lime wheel to garnish

Combine all ingredients in a cocktail shaker. Add ice and shake until well-chilled. Strain into a chilled Old Fashioned glass. Garnish with jalapeño pepper. Garnish with a lime wheel.

The Frozen Margarita by Cointreau

The Frozen Margarita

  • 1 oz. Cointreau 
  • 2 oz. Blanco tequila 
  • 1 oz. Fresh lime juice 
  • 0.25 oz. Simple syrup 
  • Lime wheel to garnish

Add all ingredients to a high-powered blender and blend to combine. Pour into salt-rimmed Margarita glass. Garnish with lime wheel.

Lyre's non-alcoholic tequila alternatives

Alcohol-free Classic Margarita

There are a couple non-alcohol brands that make adding a zero-proof Margarita to your menu simple. One such brand is Lyre’s, the Australian brand projected to one day be worth one billion dollars.

Not only does Lyre’s produce two tequila alternatives, they also make an alcohol-free triple sec. So, it really doesn’t get any easier to offer a premium non-alcohol Margarita that can justify a premium price.

An important note: Lyre’s is not an affiliate or portfolio-mate of Cointreau. I’m mentioning them here so that guests who aren’t consuming alcohol for any reason can still partake in celebrating the Margarita.

Shake briefly with ice. Fine strain into glass. Half salt-rimmed cocktail coupette. Garnish with lime wedge.

Cointreau images courtesy of Cointreau. Alcohol-free Classic Margarita image: Lyre’s.

by David Klemt David Klemt No Comments

Sticking to Your Standards

The Importance of Sticking to Your Standards

by David Klemt

Person writing down notes

One crucial task for all restaurant, bar, nightclub, and hotel operators is to set the acceptable standards and commit to maintaining them.

Hospitality operations are subject to an interesting paradox. We’re all told to prepare for things to go sideways during any given shift. We’re also told that adhering to our standards of service will help us weather a storm of challenges. Oftentimes, however, the first thing to slip at the first sign of trouble is: our standards.

When a client signs on with KRG Hospitality, they are given the task of identifying their core values. There’s an exercise for this key development step; it’s part of our standards.

Your core values inform your standards (and so much more): leadership team standards; front- and back-of-house team member standards; and standards of service. Additionally, you should spell out these standards during the onboarding process, utilizing an employee manual—which new hires must sign and date—and practical training.

It’s absolutely crucial that you and your team commit to your standards fully. They’re inviolable, what both KRG president Doug Radkey and Chef Brian Duffy call your “non-negotiables” during speaking engagements and when working with clients.

Are people going to make mistakes, including you? Yes. On occasion, a standard is going to slip. The key is understanding that maintaining standards helps reduce these occasions; panicking and allowing them to slip just drops us deeper into quicksand.

Someone on the team is going to miss a service step. Something will occur during a shift that’s not up to standards. What’s important in those moments is the ability for the team to recognize the slip quickly and correct course immediately.

Setting Standards

There are different ways for operators to select their standards. The example I provide at the top of this article is one approach KRG implements.

Michael Tipps, co-founder of Invictus Hospitality and friend of KRG Hospitality, has an intriguing approach of his own. He shared this during the 2023 Bar & Restaurant Expo in Las Vegas.

“Standards separate operators and their teams,” says Tipps. While he doesn’t encourage operators to look at every other operator in their market as competition, he does advocate for differentiation.

Tipps shared a three-step approach to standards. (Step two, by the way, is the one I find intriguing.)

  1. Create your standards. Again, there are different approaches.
  2. Pick your committee. I’m going to explain this further.
  3. Set standards against the grandest vision of your venue.

So, what does it mean to “pick your committee”? Well, it means surrounding yourself with people you respect…real or imagined. As Tipps explained during BRE, he has people in his life that he considers his committee. The real-life members of this committee are a sounding board for any number of ideas, questions, challenges, and even mistakes.

And yes, his committee also includes “imaginary” members, such as Michael Jordan and Phil Jackson. These are people that he doesn’t know personally but are known to have incredibly high standards. They’re high achievers and, of course, many have biographies and we can know their standards. Tipps has “asked” these committee members, “How should I handle X?”

This creative approach isn’t for everyone but every operator should at least give it a shot. When we step that far out of our comfort zones the results can be incredible.

The Cheat Code

On the specific topic of service standards, Tipps has a cheat code for operators: hotels. “The hotel mindset is a hospitality cheat code,” says Tipps.

How so? It’s quite enlightening.

Think about your restaurant. Now, think about it as the first-floor cornerstone of an upscale hotel. Imagine that there are 250 incredible boutique hotel rooms above your restaurant. These rooms command rates of several hundred dollars per night. Now think about how you would treat each guest in these expensive rooms if they ask for a straw.

“Make the effort to care like nobody else can,” says Tipps.

Always bear in mind that hospitality is how you make people feel. Your mission should be for each and every guest to feel relevant.

Generally speaking, most people don’t want to be alone. They’re not just coming to your restaurant because they’re hungry, to your bar because they’re thirsty. In reality, as Tipps would tell you, they’re coming to be around other people. They’re using your F&B as a reason to be around other people and feel relevant.

Your mission is to ensure people feel relevant when they spend time at your venue with your team. The package you send to accomplish this mission is your standards of service.

“Self-inflicted mediocrity is the result of laziness and lack of accountability,” Tipps says.

Hold everyone accountable for enforcing your standards—including yourself—and you’ll level up in every facet.

Image: Owen Michael Grech on Unsplash

KRG Hospitality Start-Up Restaurant Bar Hotel Consulting Consultant Solutions Plans Services

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Chip Klose and the ABCDEs of Marketing

Chip Klose and the ABCDEs of Marketing

by David Klemt

Letters A through E on switches

Marketing strategist and restaurant coach Chip Klose knows that if a process is too complex, people will abandon it. Hence, his ABCDEs of Marketing.

At this year’s Bar & Restaurant Expo, Klose broke down his marketing process. Additionally, he explained his overall approach to his marketing strategy.

First, Klose makes clear that there definitely is a right way to market. Put simply, the correct way involves taking a results-oriented approach. Ask yourself what what result you want from your marketing. Then, measure the results.

Second, people need to differentiate marketing from marketing tools. SEO, social media, table toppers, digital presence—these are tools. Marketing is how people answer a number of key questions:

  • What’s the product?
  • Who’s the product for?
  • How can marketing reach the target (audience)?

When people come to the understanding that marketing is maximizing the use of marketing tools, they’ll implement far more effective campaigns.

A: Audience

According to Klose, most people create a product—in the context of this article, a restaurant, bar, hotel, etc.—and then look for an audience.

That approach makes it difficult to implement an effective marketing strategy. Why? Because it makes it more difficult to understand a concept’s category. Without that understanding, it’s challenging to segment the population to identify targets.

Instead, Klose recommends looking at a market and asking the following question: Who has a problem? The standard advice entrepreneurs receive is to identify a problem, create a solution, scale, and retire on an island.

Well, owners and operators in the hospitality space are entrepreneurs. So, Klose suggests looking at what a given market is missing in terms of a restaurant, bar or hotel. So, find an audience’s pain point. This will not only help narrow down a concept, it will reveal if a solution already exists.

The next step, of course, is conducting a feasibility study, one of KRG Hospitality’s core specialties.

B: Brand

Assuming a restaurant or bar concept is the solution to an audience’s problem (proven by a feasibility study, of course), the next step is communication.

The restaurant idea isn’t “just” a restaurant, the bar not “just” a bar, the hotel concept not “just” a concept. No, the concept coming to their market is a solution to the audience’s problem.

When crafting a marketing plan, the messaging should articulate what problem the concept solves, and how.

C: Competition

There are essentially a few ways to view other businesses in this industry. They’re competition to stay ahead of; not competitors at all; or operations that serve to validate an operator’s solution to an audience’s problem.

Klose falls into the validation camp. Is another concept trying to solve the same problem? That means an operator bringing their own solution to the same market is onto something.

“Competition validates your idea and gives you a category,” says Klose.

Identifying a concept’s category provides an operator with the opportunity to stay top of mind, to dominate that category.

Once again, however, this also points to the need for a feasibility study. One or two solutions to the same problem is one thing. Entering a market saturated with the same solution is quite another. A feasibility study exposes saturation.

D: Differentiation

So, an operator has their solution to an audience’s problem. They’re confident in the completion of their due diligence. They have a brand identity and it communicates how it solves a problem. The competition is identified and the operator is moving forward with their solution confidently.

What’s next?

Whether an operator subscribes to the idea that they have no competitors, want to crush the competition, or use competitors as a yardstick, they need to differentiate themselves.

Klose says answering the questions below can help:

  • How does the concept stand out in a given market?
  • Once that concept is firmly in a category, how does it separate itself from the competition?
  • What are the stories only this operator and brand can tell?

That last question should be circled, underlined, italicized, and bolded. In fact, Klose asks his clients to write down 20 stories only they can tell. The results give them plenty of marketing material and helps them differentiate their concept from others.

E: Everything

Yes, “E” is for “everything.” As in, everything that makes a brand, a brand.

The brand’s logos and colors. The steps of service, food, drinks, even the pricing… These and more are the elements—the everything—that give a brand an identity.

Understanding and applying Klose’s ABCDEs will help operators maximize the use of marketing tools for their marketing strategies. There are a lot of solutions to problems out there, and even more noise. An effective marketing strategy cuts through that noise to put an operator’s specific solution directly in front of their target audience.

Be sure to follow Klose on Instagram and check out his Restaurant Strategy podcast. And make sure to check out KRG’s Bar Hacks podcast if you aren’t a regular listener already.

Image: Diomari Madulara on Unsplash

KRG Hospitality marketing support. Restaurant. Bar. Cafe. Lounge. Hotel. Resort.

by David Klemt David Klemt No Comments

How to Make a $3,500 Mint Julep

How to Make a $3,500 Mint Julep

by David Klemt

2023 Woodford Reserve Secretariat Julep cups

If you want to craft an incredible $3,500 Mint Julep, the first step is to acquire one of 50 Woodford Reserve gold Secretariat Julep cups.

Now, should $3,500 seem a “bit” exorbitant, you can also opt for one of 100 silver Julep cups for $1,000.

Cup in hand, simply fill it with crushed ice and pour a refreshing Mint Julep over it. Et voilà—a delicious $3,500 or $1,000 Mint Julep!

Okay, so you’re probably wondering what I’m on about. Am I really suggesting you craft thousand-dollar-plus cocktails? I mean…if you have guests who’ll pay that much, yes, I am.

In reality, however, I’m making you aware of this year’s Woodford Reserve $1,000 Mint Julep™ charity program. This program is a longstanding Kentucky Derby tradition.

For 2023, the $1,000 Mint Julep™ will benefit the Secretariat Foundation. That makes sense given that this year marks the 50th anniversary of Secretariat winning the Derby.

The foundation, the brainchild of Secretariat’s owner Penny Chenery, is a non-profit that focuses on equine-related industry subjects, such as:

  • veterinary research into lameness of the horse;
  • Thoroughbred retirement and rehabilitation facilities;
  • therapeutic equestrian programs; and
  • general funding for related established charitable programs.

Silver and Gold

As you probably can put together yourself, there are 150 Secretariat Mint Julep cups available. One hundred are silver, 50 are gold. Respectively, they cost $1,000 and $3,500.

In keeping with this year’s theme of celebrating Secretariat and supporting the horse’s namesake charity, each features blue and white checkered silks in sapphires. The 2023 Mint Julep cups are handmade by Louisville, Kentucky jewelers From the Vault.

Gold 2023 Woodford Reserve Secretariat Mint Julep cup

People who choose to support the charity via purchasing the gold cup will have their name engraved on the bottom of the cup. These cups also come with the autograph of Ron Turcotte, Secretariat’s jockey.

In addition to supporting the charity, people who buy one of the 150 cups will have access to the $1,000 Mint Julep Experience at Churchill Downs on Derby Day. (Which is also where and when buyers must pick up their cups.)

Secretariat’s Mint Julep

Alright, so let’s be more realistic. Only 150 people are going to splash out for the $1,000 or $3,500 Secretariat Mint Julep. And while supporting a charity like the Secretariat Foundation is a great thing to do, people are struggling.

So, below you’ll find the recipe for the Mint Julep variation that those attending the $1,000 Mint Julep Experience will be enjoying. It’s up to you if you want to offer it on Derby Day to raise funds for the Secretariat Foundation or a charity of your choosing. It’s perfectly reasonable to simply offer the refreshing cocktail as a Derby Day LTO.

Pack a Julep cup with crushed ice, making sure to make a dome over the lip of the cup. Add the whiskey and liqueur to a mixing glass and stir. Pour over the prepared cup. Garnish with one sprig of mint and one stalk of Virginia bluebells.

Should you prefer a more traditional build, express the oils of a mint leaf inside the cup. Add the bourbon, chestnut liqueur, and crushed ice. Garnish with more crushed ice, mint, and Virginia bluebells, then serve.

For our most bourbon-centric Bar Hacks podcast episodes—including episode 32 with Woodford Reserve—click here.

Images: Woodford Reserve

KRG Hospitality Beverage Programming

by David Klemt David Klemt No Comments

Tips from Tipps on Cool Concepts

Tips from Tipps on Building a Cool Concept

by David Klemt

Mama Foo Foo Daytona bar and DJ booth

It’s true that “cool” is difficult to define, and yet as amorphous a concept as it can be, we can create a vibe that embodies this important design element.

Some people have an innate understanding of the cool factor. They can identify it, design for it, and reënvision it. However, even these people can’t always explain the concept of cool.

To repurpose a 1964 quote from Supreme Court Justice Potter Stewart, “I know it when I see it.” And to paraphrase that quote, many of us would say we know cool “when we experience it.”

Of course, I can say that the KRG Hospitality team knows cool and develops concepts around this nebulous design concept. But that wouldn’t be cool; if you call yourself cool, you’re not. It’s sort of like attempting to give yourself a nickname—it really doesn’t work. (When I was in the Air Force I witnessed what happened to a few brand-new F16 trainees who tried to give themselves their own call signs. The results? Yikes.)

So, I’m going to share some helpful thoughts on this topic from a friend of KRG. Invictus Hospitality co-founder Michael Tipps, who knows cool when he sees and feels it.

Importantly, he and his team can also design for it. During the 2023 Bar & Restaurant Expo in Las Vegas last month he shared his thoughts on this idea to a room full of operators and leadership team members.

To check out some of the cool concepts in the Invictus portfolio, click here. For the KRG portfolio gallery, follow this link.

So, You Wanna be Cool…

With very few exceptions, most people thinking about their dream restaurant, bar, nightclub, eatertainment concept, or hotel don’t want to embody the antithesis of cool. In fact, I’ll say that if someone does design an “uncool” concept purposely and does so successfully…it’s cool.

That said, here’s an important tip from Tipps on developing a cool concept: “If your bar or restaurant is epic, it will attract everyone.”

However, that doesn’t mean designing a place that attempts to make everyone happy. Instead, consider your target guests—groups of people you and your partners understand, ideally—and design for them.

Nailing your concept for your target guests will attract other groups. And before anyone says that sounds exclusionary, that’s not what Tipps or I are talking about. Listen to anyone from the KRG Hospitality and Invictus Hospitality teams speak and you’ll know making any guest feel unwelcome isn’t on the menu.

Instead, consider the longstanding maxim that you can’t please everyone. Hence, focusing on your target guests to pull the threads tighter during the concept development phase.

Another key consideration when trying to nail down the cool factor? Differentiation.

“If everyone is used to westerns, somebody wants an action movie,” says Tipps. In other words, in a market saturated by one or two types of concepts, there are people dying for something different.

So, develop your dream concept with the idea of delivering something different in mind.

Stay True

This isn’t exactly a hot take but at the end of the day, all restaurants serve food. All bars serve drinks. All hotels provide rooms.

In other words, people can go anywhere for at least decent food and drink, and a place to sleep. The differentiators that separate one concept from another are atmosphere, service, and culture. Those three elements (along with some others) define a particular brand.

When your dream concept is on paper and you’re ready to make it a brick-and-mortar reality, you must stay true to it. Using the KRG process as an example, our feasibility studies, concept development plans, and business plans combine to form our Roadmap to Success. This is a document hundreds of pages long that’s unique to every client and concept we develop.

Once that deliverable is in your hand, it’s crucial to stay true. Or, as Tipps said at BRE in March, “You have to remain steadfast and focused on your concept.”

Designing a cool concept can take you into deep, uncharted waters in your chosen market. The voice telling you that you need to rein things in can be a loud, nagging one. Learn to quiet that panicking voice.

It can be daunting to design something you think is cool. You may find yourself asking if anyone would even want this “cool” concept.

Well, an unfiltered Tipps suggests you consider your answer to the following question: “How do people know what they want if they haven’t fucking seen it?”

You can build the next Applebee’s, Chili’s or Fridays. Or you can build something unique that will set a new standard in a market. And that’s not a knock against those chain restaurants—they’re successful on a global scale. But if you don’t want to operate an Applebee’s, don’t design yourself one.

A Word on Rebranding

Owing to the pandemic, rebrands are, as Tipps says, ubiquitous. This makes sense as people’s perspectives are different now. Operators want to finally own their dream concept. Hospitality pros want to work for brands that share their values, and that they deem cool. Guests want to spend their time and money on brands with which they identify (and also deem cool).

“If somebody wants to rebrand, they probably should,” says Tipps.

According to Tipps, however, “a lot of people confuse a rebrand with a refresh.”

While new tables, chairs, and paint can feel like a huge change, that’s not a rebrand. While many guests appreciate a refresh, their relationship with the brand won’t change much.

So, if an operator doesn’t plan and execute a full rebrand carefully, Tipps says they need to temper their expectations for a measurable ROI.

Now, if you have ideas for a cool rebrand, planning is crucial. But that doesn’t just relate to knowing what you want. You need to have your new name, logo, colors, menus, and exterior and interior designs finalized, of course.

However, you need to plan for how long the rebrand will take. As an example, when Invictus last rebranded their own concept they planned for two months to prepare to shut down for a full week.

Your cool new concept and its cool new details? They cost money and, as importantly, they take time. Which, as we all know in this business, costs even more money when you’re shut down.

Now’s the time to move forward with your cool new concept. Don’t hesitate to take your first step toward owning the cool brand you’ve always really wanted. While you’re dreaming about your concept, someone else in your market is making theirs a reality.

Image courtesy of Invictus Hospitality

KRG Hospitality brand identity. Restaurant. Bar. Cafe. Lounge, Hotel. Resort.

by David Klemt David Klemt No Comments

5 Books to Read this Month: April 2023

5 Books to Read this Month: April 2023

by David Klemt

Flipping through an open book

Our engaging and informative April book selections will help you take your bar, restaurant or hotel to higher levels, and develop your leadership skills.

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

Let’s jump in!

Unreasonable Hospitality: The Remarkable Power of Giving People More Than They Expect

When Will Guidara took over the famous Eleven Madison Park, the restaurant had just two stars and he was only in his mid-twenties. Before his 40th birthday, the changes and strategies he implemented helped the restaurant earn the title of the Best Restaurant in the World.

One of cornerstone’s of Guidara’s was “bespoke hospitality.” He and his team truly went above and beyond. Examples of the Eleven Madison Park team’s approach to hospitality illustrate just how over the top they went to deliver memorable guest experiences. If you’re looking for inspiration to step up your hospitality, pick up or download Unreasonable Hospitality today.

Blue Ocean Strategy, Expanded Edition: How to Create Uncontested Market Space and Make the Competition Irrelevant

I’m going to address the viability of the blue ocean strategy before getting into the book. Creating a hospitality concept without competition isn’t really feasible. Go too far into “blue waters” and there won’t be any “fish” (traffic). And where, exactly, would one put their restaurant, bar, or hotel where there’s no competition but still enough traffic to generate a profit?

Those issues addressed, this book is still valuable to owners and operators. One need not eliminate competition completely to take lessons from the blue ocean strategy. Businesses must still differentiate themselves from competitors, and they must look for unique opportunities to help them stand out. Blue Ocean Strategy may not work perfectly but much is still very helpful.

Contagious Culture: Show Up, Set the Tone, and Intentionally Create an Organization that Thrives

Anese Cavanaugh’s Contagious Culture addresses a topic that we often discuss with clients, in our articles, and during speaking engagements: workplace culture. From large corporations and regional or national restaurant chains, to independent restaurants, bars, and hotels, culture will make or break an organization. Cavanaugh’s techniques will improve your workplace culture and energize your team, an undeniable key to success.

From Amazon: “This is Contagious Culture, a game-changing guide to transforming corporate culture from within, developed by the award-winning creator of The IEP Method to strengthen your ‘Intentional Energetic Presence.’ This is more than a leadership book―this is your future calling.”

Bar Hacks: Developing The Fundamentals for an Epic Bar

Doug Radkey is the founder, president, and lead strategist of KRG Hospitality. He’s also a hospitality industry speaker, educator, and author. This is his first book, Bar Hacks, which is also the name of the podcast we produce through KRG Hospitality.

Now, while the title states this book is a guide for developing and running an epic bar, the strategies carry over to restaurants, hotels, and other hospitality concepts. It’s difficult—if not impossible—to elevate one’s skills and service without first mastering the fundamentals. Whether you’re new to the industry or are a veteran who feels the need to reset and revisit the fundamentals, Bar Hacks is your guide.

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

There’s a first book, which means there must be at least one other one, right? Right! Hacking the New Normal is Doug’s second book.

This book is a direct response to the pandemic, what it did to the industry, and the issues many operators would prefer to ignore. However, the devastation is so great that ignoring the changes that should have been made decades ago isn’t a viable option. With a spotlight on hybrid business models, real estate, profit margins, technology, guest experiences, culture, diversity, and mindset, Hacking the New Normal will position you for success in our new hospitality landscape.

Image: Mikołaj on Unsplash

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

by David Klemt David Klemt No Comments

Empower Your Team to Make Decisions

Do You Empower Your Team to Make Decisions?

by Kim Richardson

Chess pieces on chess board in grayscale

Empowerment is about so much more than trusting someone to follow clearly defined rules; you must learn to trust your team’s judgement.

Yes, even when things don’t go according to plan. If you’re only training your team on the “rules,” you’re doing a disservice to them and yourself. So, let’s have a little chat about empowerment. What does it mean to you? What are your expectations of your team when you tell them they are empowered?

Looking back throughout your own work history, have you ever had a job where your boss told you that you were empowered to make decisions, but you didn’t actually know what to do or how to make decisions? Did anyone ever explain “the how” of decision making to you?

Now, look at yourself as a leader. Have you ever had employees that you’ve told are empowered to make decisions, yet they get a manager every time someone needs something out of the ordinary? Are you explaining to your staff “the how” of decision making, along with your expectations?

It’s frustrating to feel like the house might fall down when you’re not in it. That’s no way to operate a business. We all want our staff to be able to make educated decisions when we’re not around. We shouldn’t have to hold their hands and be part of every single decision.

Still, there are times when, left to their own devices, a team member doesn’t make the decision you’d want them to make. This makes owners and leadership team members feel as though they must be at work every second.

So, how do you move away from micromanagement and learn to trust your team’s decision making?

Leverage Teachable Moments

You’ll never be able to give an example of every possible situation that may arise. Therefore, you’ll never be able to train your team on everything that they’ll encounter on any shift.

How do you tell someone how to handle situations when you’re not around? You don’t, and I don’t suggest you even try. Instead, you need to instill a sense of empowerment in your team.

However, “empowerment” is just a word if you’re not educating your team. You need to teach staff how to make good decisions. And how do you even start to do that? Cash in on all the teachable moments that happen throughout the day!

Once upon a time we were all new to this industry. I’m sure you have a few stories of some mistakes you’ve made along the way. I know I certainly do.

Think back to those situations. Did someone explain to you why you made a mistake? More importantly, did they then help you understand what to do next time? Or did they just get mad and make you feel like a failure?

I’ve had the privilege of working with some amazing people over the years. There are several people that really put effort into teaching me. The different things they taught me helped me to understand the ins and outs of decision making, even in situations I know very little about.

Example 1: The Restaurant

For my first job ever, I was a hostess at an Italian restaurant and pizzeria. During the training process I was told to rotate sections when seating tables. That’s easy enough, right? Well…maybe not.

Sometimes I’d see exceptions to this rule. The same section would get sat twice in a row, for example. I watched exceptions to “the rule” get made with no clue as to why.

One day, I sat the same section twice in a row. I don’t remember why, but I do remember the server’s reaction.

Right after seating the second party in the server’s section she let me know how annoyed she was by my decision. Now, I knew I messed up immediately—she let me know. But I didn’t know why it wasn’t okay that I had double-sat her this time.

All I knew is there was a rule I was expected to follow…unless I wasn’t supposed to follow it. Sometimes it was okay to disregard the rule, sometimes not. The rule wasn’t clarified before I began my role as a hostess, it wasn’t explained during training, and it wasn’t explained in the moment I “broke” the rule.

At some point it was explained to me that there were several factors that influenced the “double-seating rule.” For instance, you might skip a section in the rotation if they were just sat a big party. You might double-seat someone if they were regulars, family or friends and the server was able to accommodate an additional table. Of course, there were several other factors that could come into play.

The biggest issue is that none of that was explained to me during training. Moreover, I was left to figure out the nuances of seating on my own.

Example 2: The Hotel Sales Office

I worked at a hotel in the sales office for my first job out of college handling group room blocks.

The contracts I sent out to clients had cutoff dates 30 days prior to the event. Again, sounds pretty simple, doesn’t it?

One day a bride emailed me asking if she could extend the cutoff date. The cutoff date fell on a holiday weekend and she was concerned that people might not have time to book their rooms. I wrote her back and very politely told her no. So she reached out to my boss, Jill, who told her yes.

And then I got called into Jill’s office.

I remember that conversation like it was yesterday. Jill was very nice about the situation and explained that it was okay to make exceptions for people sometimes. Sometime later, I extended a cutoff date for another group. Should be an acceptable exception, right?

Nope. I got my hand slapped on that one. There was a citywide event going on over those dates. The hotel was fully sold out and turning away business. In this circumstance, it was actually a huge problem to extend the cutoff date.

Great—here we go again with a rule that exists in a gray area, and no one explained its nuances. As it turns out, there are factors that go into extending a cutoff date, such as how many rooms the group has already picked up; how busy the hotel is over the dates of their room block; and the relationship you have with the client.

I don’t know if anyone ever flat out explained these gray areas to me. Instead, I was left to figure out the nuances through trial and error.

Example 3: The Dish Tub Incident

At that same hotel several years later I started handling banquet events. One day, a client told me their registration desk needed dish tubs lined with cloth napkins. I threw it on the banquet event order.

Well, I happened to work at a Five Diamond hotel. Dish tubs with napkins sitting out in view of the public? That’s not how we did things. Enter: Bruce the Banquet Manager.

No detail, however small, escaped Bruce. Referring to the dish tubs and napkins, Bruce asked me why they were necessary. I actually had no idea what the client wanted with the tubs and napkins. So, I reached out to the client.

Turns out all she needed was a way to store welcome packets for event attendees. These days, we just put up a QR code and call it good. Once I let Bruce know what the containers were actually for, he understood. However, we weren’t about to load unsightly dish tubs with welcome packets. Instead, we found something more aesthetically pleasing and in line with our level of service.

I spoke about the Dish Tub Incident with Jill. To her credit, she helped me understand that people who are planning meetings so frequently are sending standard specs. Sometimes there would be a request on a BEO that wouldn’t make sense for the venue. Crucially, she taught me that if I ever saw something that didn’t make sense I needed to ask questions.

Truthfully, I don’t remember if it was that conversation or another but Jill taught me one of the best lessons: Ask the client what goal they’re trying to achieve. By understanding their goals we could provide solutions that made sense for us and honored their wishes. Additionally, we’d deliver the excellent service they had come to expect.

Example 4: The Hotel Cafeteria

Let’s take a little break from talking about my mistakes and talk about somebody else’s.

Many years later, I was working at another hotel. One day, I went to the cafeteria and the fruit bowls had Asian pears in them. I love Asian pears, so I was really excited about those bowls.

Now, those particular pears were probably a day away from being spoiled. I went to the cafeteria the next week and there were the Asian pears again! This time, they were perfectly fresh, crisp pears.

Well, I certainly enjoyed that. You want to know who didn’t enjoy that? The executive chef!

As it turns out, Chef sent the pears that were about to go bad to the cafeteria because they were leftovers from something else. He didn’t want them to go to waste. But the fresh, crisp pears that were out the following week? Those were a different story.

There was a kitchen team member who saw the Asian pears go down the week before. When he was setting up the cafeteria the following week he threw some in the fruit bowl. No one had told him that Asian pears are expensive. Also, no one had told him the pears were just going down to the cafeteria because they were close to spoiling. They’re not typically the type of thing set out in the employee cafeteria.

While I would never expect Chef to stop and explain every single decision he’s making, it’s the perfect example of seeing one of your superiors doing something and thinking you’re supposed to do the same.

Leaders Teach

When I look back on some of the mistakes I made, they seem pretty obvious with many years of hindsight.

The solutions to unexpected situations are common knowledge to me now. If you also have some years in this industry, they’re likely common knowledge to you.

And that’s my point.

I was young. I was inexperienced. People didn’t always tell me the things they had learned that were common knowledge to them. So, they also didn’t share their expectations with me.

I can only assume that you have people on your team that are young and inexperienced. As seasoned hospitality professionals, we all make decisions every day that can be teaching moments. These moments are part of the learning experience. Using them to shape your team will help your business run better.

Have you implemented an onboarding process? Do you have a detailed employee manual? Do you have actual systems in place? If so, great—you’re ahead of the curve.

But do you think that you’re training new and existing employees on every situation that will ever pop up during their shifts? Really, that’s impossible. Instead, be on the lookout for teachable moments. Put people on your leadership and empower them to do the same.

In turn, they’ll help empower your staff to make the “right” decisions for your business. And importantly, they’ll feel empowered to learn from mistakes so they don’t repeat them. Over time, and it won’t take long, you and your leadership team will be able to step away and work on other parts of the business. In fact, you’ll find that you can step away from the business from time to time.

People are going to make mistakes. That includes you. Don’t let these teachable opportunities go to waste.

Image: Hassan Pasha on Unsplash

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

by David Klemt David Klemt No Comments

What’s Up with the Restaurant Tax Credit?

What’s up with the Restaurant Revitalization Tax Credit?

by David Klemt

Abraham Lincoln's face on $5 bill

If you’re wondering what’s going on with the Restaurant Revitalization Tax Credit bills in the House and Senate, you’re probably not alone.

And if you find yourself wondering about them, that’s likely because there isn’t much news about the bills. Unfortunately, it appears that no meaningful progress has been made on HR 9574 or S.5219.

A quick check shows that both bills share the same status: Introduced. As for the House bill, HR 9574, that was introduced on December 15, 2022 by Representative Earl Blumenauer (D-OR). The Senate bill, S.5219, was introduced by Senator Benjamin Cardin (D-MD) on December 8, 2022.

It’s important to note that Sens. Cardin, Patty Murray (D-A), and Sherrod Brown (D-OH) reintroduced S.5219 in January of this year. However, that apparently didn’t mean much as the Congress.gov trackers show no progress.

Last year, some opined that neither bill would receive a vote until January 2023 at the earliest. That “prediction” has proven true, of course—it’s now the end of March.

Restaurant Revitalization Tax Credit Act Summary

Let’s take a quick look at HR 9574 and S.5219.

Both bills propose a $25,000 payroll offset for restaurants. Eligibility requirements are also identical: applicants must have applied for but not awarded a Restaurant Revitalization Fund grant.

Additional, eligible applicants are:

  • restaurants with operating losses of at least 30 percent in 2020 and 2021 in comparison to 2019; or
  • restaurants with losses of at least 50 percent in either 2020 or 2021 in comparison to 2019.

So, those are elements that both the Senate and House bills share. What about the differences between the two bills?

Mainly, differences come down to the number of employees. For S.5219, restaurants with ten employees or fewer could be eligible for the maximum payroll tax credit. That credit, as a reminder, is up to $25,000 for 2023. For every employee over ten, the refund cap drops by $2,500.

Now, HR 9574. Restaurants with ten or fewer employees would receive the full $25,000 payroll tax offset. For restaurants with between 11 and 20 employees, the offset would be “partially refundable.”

Now What?

If you believe that you’re eligible for this tax credit, it’s time to let your representatives know you want them to act.

To make things simple for everyone, I’m including the links you need to find and contact senators and representatives.

For senators, click here. And for representatives, click here.

Let them know that it’s time for action on S.5219 and HR 9574. And let them know exactly what action you expect them to take.

Image: Karolina Grabowska on Pexels

KRG Hospitality Start-Up Restaurant Bar Hotel Consulting Consultant Solutions Plans Services

by David Klemt David Klemt No Comments

Why Pickleball Should Have Your Attention

Why Pickleball Should Have Your Attention

by David Klemt

A pickleball racket and pickleballs

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

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

by David Klemt David Klemt No Comments

Addressing Employee Theft

Addressing Employee Theft

by David Klemt

Security camera stencil graffiti design

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

KRG Hospitality. Business Coach. Restaurant Coach. Hotel Coach. Hospitality Coach. Mindset Coach.

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