Employee retention

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by David Klemt David Klemt No Comments

Spectacle ROI vs Scene Retention: The Two Financial Logics of Nightlife

One of the biggest misunderstandings in modern nightlife is assuming the business runs on a single economic system. It doesn’t.

A sold-out Saturday doesn’t mean your model works, it just means your event worked.

What looks like one category from the outside is actually operating on two fundamentally different financial logics. Some venues run on Spectacle ROI, monetizing attention in spikes through high-impact nights. Others run on Scene Retention, monetizing repeat behavior through habit, identity, and belonging.

Both models can succeed. However, they require different strategies, risk tolerance, and expectations.

Nightlife hasn’t just split culturally, it has split economically.

by David Klemt

A DJ performing from an elevated both, with lights and fog going off over the crowd

Spectacle ROI: The Event Model

Spectacle-driven venues operate like live events.

Revenue is concentrated into big nights, big bookings, and big production. Talent becomes a headliner rather than background. Lighting, visuals, and room energy are core parts of the product. VIP sales function as a structured access economy.

The goal isn’t consistency, it’s impact.

Spectacle venues are built to answer one question: How big can this night be?

When this model hits, it hits hard; a single night can outperform several average weeks. The upside per activation is significant.

The trade-off is structural. Spectacle relies on novelty, meaning programming must refresh constantly, and attention fades faster than loyalty. Without momentum, gravity weakens quickly.

Scene Retention: The Habit Model

Scene-driven venues operate more like cultural infrastructure.

Revenue comes from repeat behavior, not single-night spikes. Guests return because the space feels familiar, aligned, and socially meaningful. Programming cadence matters more than headliner scale, and identity and community replace spectacle as the primary draw.

The question here isn’t how big the night can be, it’s how often the same guests return.

The Scene model builds more slowly than its Spectacle counterpart. This model rarely produces explosive revenue peaks. The retention that the Scene model generates compounds: loyalty stabilizes revenue, and acquisition pressure drops. The venue becomes part of a guest’s social routine, not just an occasional destination.

Scene doesn’t monetize moments, it monetizes habits.

The Revenue Split in Plain View

Spectacle operates on ROE, return-on-event; Scene operates on retention.

One monetizes attention in spikes; the other builds gravity that compounds over time.

That difference shows up everywhere operationally.

The Nightlife Revenue Split

Dimension Spectacle ROI Model Scene Retention Model
Core Goal Maximize revenue per night Maximize guest lifetime value
Economic Engine Event spikes Habit formation
Revenue Pattern Volatile, high peaks Stable, compounding
Guest Motivation Occasion, visibility Belonging, familiarity
Programming Strategy Big moments Consistent rhythm
Marketing Focus Reach, hype Relationship, trust
Risk Profile High Moderate to low
Talent Dependency High Moderate
Growth Style Fast, unstable Slow, durable
Gravity Source Novelty Habit

Neither model is “better” than the other. They’re built for different environments, capital structures, and operator skill sets.

Where Operators Get Into Trouble

Most struggling venues aren’t failing nightlife, they’re failing model and strategic clarity.

Examples show up everywhere:

  • Spectacle-scale buildout with mid-tier programming.

  • Big DJ nights layered onto a space that lacks identity.

  • Strong community concept buried under overhead designed for event economics.

These are structural mismatches.

You can’t run event economics on retention demand. You can’t expect habit behavior in a room designed for episodic spectacle. And you can’t out-market a model mismatch forever.

Diagnostic: Which Business Are You Actually Running?

Operators often think they’re running as one model while their numbers say they’re operating under another. The checklist below is a reality check.

Spectacle ROI Signals

  • ☐ Our biggest nights drive a disproportionate share of revenue

  • ☐ Talent bookings influence weekly performance heavily

  • ☐ Marketing cycles revolve around specific dates or headliners

  • ☐ Guest traffic varies dramatically week to week

  • ☐ VIP/Table sales are a primary profit engine

  • ☐ Production value is central to guest expectations

  • ☐ Without programming refresh, attendance drops fast

  • ☐ We rely heavily on new guest acquisition

  • ☐ Guests talk about specific nights more than our actual venue/brand

  • ☐ Our revenue model depends on scale and volume

If you’ve checked six or more boxes, you’re operating a Spectacle ROI model.

Scene Retention Signals

  • ☐ Regular guests attend multiple times per month

  • ☐ Staff recognize frequent guests

  • ☐ Programming cadence matters more than individual bookings

  • ☐ Week-to-week revenue is relatively stable

  • ☐ Word-of-mouth outperforms paid promotion

  • ☐ Guests describe our venue as their “spot”

  • ☐ Community identity matters (music, culture, subculture)

  • ☐ Nights feel familiar but still engaging

  • ☐ Loyalty drives traffic more than hype

  • ☐ The business could survive a week without headline talent

You’re operating a Scene Retention model if you’ve checked six or more boxes.

The Red Zone

If both sections score high, you may be trying to operate two incompatible economic systems in one space. That’s where identity confusion, overhead mismatches, programming inconsistency, and marketing inefficiency tend to show up.

This is a red flag, and your reality check, particularly if you feel like you’re working hard but not gaining traction. The issue likely isn’t effort, it’s alignment.

Where Gravity Lives

Spectacle captures attention, Scene builds gravity.

Gravity reduces acquisition pressure. It stabilizes revenue and increases guest lifetime value. Without it, venues remain stuck in perpetual re-acquisition mode, always chasing the next spike and new, first-time guests.

That doesn’t make Spectacle wrong or a “bad” model; it means Spectacle is a different business.

The Decision That Shapes Everything

Before programming calendars, deciding on talent budgets, or developing marketing plans, operators need to answer one question: Are we built to maximize nights or years?

The answer shapes staffing structure, pricing strategy, programming cadence, capital planning, and growth expectations.

Clarity here doesn’t limit a concept, it lays it a stable operating foundation on which a successful legacy brand can be built.

Nightlife hasn’t just fragmented socially; it has separated into two financial logics. Operators who understand which model they’re actually running and stop trying to be both are the leaders positioned to build nightlife brands with real staying power.

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by David Klemt David Klemt No Comments

Bar Hacks: ReFire: Episode 1, Part 2

Bar Hacks: ReFire: Episode 1, Part 2

by David Klemt

Bar Hacks: ReFire podcast "black paper" background cover

The second of three real-life hospitality scenarios discussed on the new Bar Hacks: ReFire podcast deals with onboarding.

More explicitly, I, along with cohost Bradley Knebel, client services director at Empowered Hospitality, look at a situation involving onboarding, training, leadership, culture, and potential imposter syndrome.

Our goal with every episode of ReFire is for listeners to gain valuable insights into bar, restaurant, and hotel operations.

Whether you’re a bar owner, manager, or aspiring hospitality professional, these episodes of Bar Hacks offer a wealth of knowledge and strategies to navigate the challenges of running a successful bar or restaurant.

Below, a transcript of the second part of the first episode of Bar Hacks: ReFire. For the lightly edited transcript of the first situation we addressed, click here. Bradley and I jump into each scenario cold (for the most part), so the tone is conversational rather than formal. In other words, they sound better than they read.

Cheers!

The ReFire Format

David: So, for the audience, what happened is, I sifted through… I’m basically going through online—there’s subreddits that, basically, everybody knows there’s a subreddit for everything. Good or bad, there’s a subreddit for it. Servers have a subreddit. Bartenders, chefs, bar owners, restaurant owners, hotel owners… I mean, they all have subreddits. And then there’s just, you know, forums all over the internet. You can find pretty much any topic. And so, I’m kind of sifting through these for real-world situations. And the caveat there is we’re gonna take these at face value, for the most part. Unless someone is like, “I’m just kidding,” like, “I got you all like in the comments…”

But we’re going to accept that these are really happening, because anyone in the industry knows if you’ve been in there, you know, for a few years, everything happens in this industry. So, a lot of this stuff is believable, even as outlandish as it might sound. The only thing I’m going to do, really, and Bradley’s going to do when we bring these topics up, is we’re not going to read them verbatim. We’re going to summarize. And the reason for this is I don’t want people to get doxxed. I don’t want them to, you know, get review bombed because someone decided, “I’m going to side with the server on this and let’s review bomb this operator.” You know, things like that.

So, we’re trying to be general but still get to the crux of the situation, and I’m sure they’ll get more specific as we go. I chose three to start with; hopefully, we get to all three. If we have a great conversation on, like, the first one or two, we’ll save the third one, or you know, however it works, for the next one. But that’s how this is gonna work. I’m sure it’ll evolve, ‘cause I’m not, like, a strict, like, “Oh, this is how it’s going to be” ‘cause it’s quote-unquote “my podcast,” because I’m not like that. We’re going to have fun with this.

Situation 2: Imposter Syndrome and Onboarding

David: So, situation two. This bartender, the way they phrased it, I don’t think they ever did a year straight with one employer. And I’m not saying that’s a bad thing. Like, it’s like you just said, it’s a transient business.

Bradley: Transient.

David: The experience they had was, I’m gonna go with, like, “high-volume,” but you know, it’s a college bar, a dive bar, which I… Apologies to Travis Tober, he does not like that term. He likes “neighborhood bar,” and I agree.

Bradley: I also could have felt like something like an Olive Garden or an Applebee’s, especially because they talk about how many steps there are.

David: Good point. It could be a neighborhood chain restaurant, and they’re behind the bar. That’s absolutely possible. It’s not the Baccarat Bar, we’ll just put it that way, where their experience came from.

They got hired by a more upscale, higher-end venue. They were given one training shift. And from what I could determine, the cocktails routinely had a minimum of six ingredients. So, lots of steps, and yet it was still high-volume because it was a popular bar.

So, it’s high-volume with a lot of steps, which.. That was cool, you know, call it a dozen years ago, 15, when, like, “Wow, I’m gonna wait ten minutes for this cocktail ’cause it’s supposed to be awesome.” Where now people are like, “I don’t care if it’s 30 ingredients, I want this thing in three seconds ’cause I’m not standing here, and your team is supposed to be high volume.”

So, they got the one training shift—that was it. And the ownership and leadership team appears to like to sit at the bar. And I don’t know if this is when they’re working; that wasn’t made clear. But the person feels they’re being scrutinized. They have questions. It sounds like they asked a question, at least one question, and got a very, in their opinion, terse and impatient reply. They now perceive this culture as they do not have patience for questions. “I have to just know my job. I’ve got to get these cocktails down. I have to be perfect.”

And I’ll kick this off by saying it is possible this person is just so in their head because it’s imposter syndrome, and they got one training shift, and now they, because it’s one training shift, are in their head, saying, “I have to be perfect now; I had my training shift. I can’t ask questions because I’m going to get fired or they’re going to give me less shifts because I don’t know, quote-unquote what I’m doing.”

So, it’s possible that just they’re not confident because they’re in their own head. However, that still had to come from somewhere. So, I do believe someone maybe—and I don’t even know—they gave him a short answer or a bit of a terse reaction because they’re just, maybe they’re having a bad day or they weren’t even thinking. They just threw an answer out and to them it’s not a big deal. It wasn’t a, a short or curt answer because that’s not how they meant it. They’re just like, “Yeah, you just do this,” and they walked away.

So, I think we both agree though that this does sound like we’re rubbing up on a culture issue, within the business. But they weren’t even trying to throw the ownership under the bus. They were just like, “Do I quit this job and go for something I’m more used to, or do I stick it out because this is more money?” It’s a higher-end venue, the tips are better. And I mean, the general consensus appeared to be like, “No, you stick it out. You can figure this out.” It’s bartending: If you did high-volume in an easy call bar, that’s still brutal. If you run a high-volume college bar, you’re getting destroyed. So, you should be used to it.

Just One Training Shift?!

Bradley: If it’s just Vodka Sodas all night, with splash of cranberry, or making, yeah, or you’re making, like, Death & Co. drinks to bring Dave back into the conversation, you know, bartending is hard. And, you know, there’s a reason that most volume bartenders, usually the higher volume the bar, the less touches there are. The less, kind of, ingredients per cocktail, right? It’s built for speed and efficiency.

So, I agree with you that this sounds a little bit like this person may be in their head a little bit, and maybe second-guessing themselves, or needing to build their confidence. But there’s a lot of things about this case that I think a lot of people can learn from. And the biggest flag to me is if this is an upscale cocktail bar, and if their signature ingredients have six- to eight-plus steps, which, first off, like, combine some of those into a cheater bottle or something. Like, come on, that’s crazy. But even if all of that is true, one training shift is absolutely not… Like, that, to me, is a huge flag. If I came into a bar, no matter if I’d been bartending for six months or six years, if I walked into a new space and they said, “Great, you get one shift, and now you’re on service bar,” like, that just is not a recipe for success, you know? And so, the reason that you and I kept talking about this being a cultural piece almost more than a training piece is, why is there only one training shift?

Are they just churning through people so fast that they literally just have to be live instantly because the owners are sitting at the bar constantly critiquing everybody? And are their cocktails built for their concept? And I think that is a big issue. If you have that many steps in your cocktails, but you have 150 covers in your space, like, there’s no way that those two things are going to meet. Even if you have 30 covers in your space, there’s no way that those two things are going to meet.

If it’s a purely cocktail bar where people are supposed to be coming in, and getting a bunch of different cocktails, and ordering something different every time. And so for me, from the employee standpoint, there are a few things that I would question, and I take issue with. Well, is this place set up to support me? You know, it’s funny because the last question, we talked all about the employer standpoint, right? Like, the employer standpoint against the employee. But it is a relationship. And it is, when we talk about interviewing a lot, right, that interviewing needs to be a dialogue. It isn’t just me asking you questions, you answering questions, and then “boom,” question two. It needs to be a dialogue.

And I think employment is a dialogue, right? You’re giving just as much to your employer as they should be giving to you. And that is in training, that is in culture. And so, how are they supporting you and your growth? And it sounds like here that they’re not, from a technical standpoint. And, like, I think it’s what probably most of the people on the thread were saying is, you can learn anything. You can learn all these cocktails.

Three Months

Bradley: Like, this is going to sound really dumb, but when I first started bartending, ’cause I am a virgo and a perfectionist and a Millennial, so, like, all those things just combined into a terrible mixture. But the first time I started bartending, I literally sat home. I didn’t have any pour spouts. So, I may or may not have borrowed them from work—I’m sorry, boss, I’m telling you this 20 years later—and put them into empty wine bottles. And I just practiced, because we also had to do counts instead of jiggering. And so I was just practicing until I figured out how it all kind of worked together.

And then the next thing is, you know, I tell people this all the time, that it takes three months just to figure out what your job is, and how to be good at it. Not to be good at it, just how to be. There’s different cultures, there’s different steps, there’s different people you’re dealing with.

How do I show up on time? What is my uniform? How do I get it cleaned? Where is everything set? What is my opening side work? When is lineup? Who are the regular guests? What do people usually order? What am I recommending? There are so many pieces of a job, especially in the dining sector, that come together that it takes you three months just to figure out. “Okay, what am I actually doing? How do I actually do it? What does success look like? What is my team here? And are they supportive or not supportive? And who can I lean on? And then also how do I get better?”

And then it takes another three months to get better. Whenever I’ve promoted a server assistant to a server, a server to a sommelier or a captain, you know, prep cook to a line cook, like, garde manger to, like, flat top, or if they’re looking, working on a grill. No matter what your promotion is, and actually the biggest one is from line level into management, right? So, like, going from a server or bartender into a manager for the first time is, give yourself some grace. It takes three months just to figure out what the heck is going on. Like, who’s here, who are the players, what am I doing, what’s important, how often do things rotate, how much do I really need to know these things? And that takes you another three months just to build that skill set. And so, if you’re working for an employer that gives you one training shift and then is critiquing you for not being perfect right off the bat, to me, that’s less of a flag of you not being a skilled bartender and more of a flag of this is maybe not a place that’s going to be supportive for knowing that the restaurant industry is so transient.

And the restaurant industry is a lot of times almost like the gig economy. Before that became my thing, it was the pre-gig economy. Are they going to be there to really help your growth, and as things change, and as you either get another bartending job—because very few bartenders have one job, they tend to have two or three. So, if you get another job, if you are in school, if you’re an actor or in some sort of artistic discipline and are going to need to go on show, how supportive are they going to be in view of that lifestyle? Or if you’re a dedicated bartender full-time, then this doesn’t sound like a bar that’s going to dedicate timing to you to grow.

So, my biggest pushback to this employee is, hey, get out of your head. You’re not going to be perfect. Like, you have to learn it. But is this a place that’s going to support you, or is it time to look somewhere else? Because I’ll tell you one thing—going to the last one (the first story of this episode). So, we’re in a talent shortage, still there. There is a plethora of jobs out there. And talk about the one job that’s almost most in demand on the front of house side, it’s bartenders. Bartenders who have done it for six months. When I was bartending and when I was hiring bartenders, especially pre-pandemic, if you didn’t have bartending on your resume for two years you wouldn’t get an interview. Now, if you’ve had bartending on there for three months, great, let’s go in. I’m going to ask you what a Cosmo is, and if you can answer, that’s question one, check. Different game.

Leadership Sitting at the Bar

David: And my one of my flags was: Why is management or leadership, if they’re sitting at the bar, I’m blown away by that. Like, what are you doing?

Bradley: That’s, that’s a revenue-generating spot. Yeah.

David: You just decided to voluntarily give up money. I don’t understand that. Like, what are you doing? And then do you micromanage everybody, or is it the bar team? And again, it’s perception. Like, did this person, every time they happen to look up because they’re not confident in themselves, perhaps do they think they’re being stared at by this team that’s not even looking at them? They just re looking around, like, “Hey, you need to touch that guest. That’s a VIP; we should go say hi. Those people look new, look like they’re having a blast. Let’s go introduce ourselves.”

We don’t know exactly what that was, but if you are micromanaging, I have a big issue with that because no one performs well under that kind of pressure, really. I mean, maybe a 20-year veteran bartender who’s like, “Yeah, you can micromanage me all you want, I don’t care. I’m gonna get this done, get my tips, and get out of here. Like, watch me all you want. I’m not doing anything, so go for it.”

But I do wonder… I mean, I don’t want, I don’t ever wanna see leadership or management lean against the bar, even a little. And sitting at the bar when they’re working, like, that’s not okay with me at all. I mean, yeah, you check in with the bar team, but you can do that from the side of the bar, you can go behind the bar, but to sit there… And now guests are like, “Why? Is this person, is this bartender not doing the right thing?” It just, it leads to a lot of questions either from the guest side, which you definitely don’t want, and from the team side, like, “Wow, this team, the leadership team, doesn’t trust me. And I (ostensibly) did nothing wrong, and they just are watching me like a hawk. Like, did I do something wrong?”

Like, it’s just, to me, it’s just too many questions. And I know there are people who, they’re micromanagers, but then maybe they need to be moved or spoken to or something. You just can’t do it that way anymore. It just doesn’t, it doesn’t work. And if you, if you are behaving that way, then why’d you hire this person? If you’re just going to watch them like that, then they shouldn’t have been hired or you’re in the wrong position, to be honest. Like, maybe you shouldn’t be a manager. Like, sorry, but that could be.

Coaching, Holding People Accountable, and Setting Standards

Bradley: I think there’s a big difference between coaching, holding people accountable, and setting standards versus micromanagement, right?

David: Absoutely.

Bradley: I think a lot of that—I mean, there’s a lot of very, I mean, specific differences—but I think it really comes from, are you doing it for the employee’s benefit, or are you doing it to control the output? Right?

So, you are never going to be able to replicate yourself. And this idea of people saying, “I need to find somebody who’s just like me, who’s going to do this just like I’m going to do so I don’t have to manage them,” is a fallacy. That’s not true.

It’s all about building standards, building practices, and holding people accountable, and coaching them in the moment, but not doing it through fear or doing it through anxiety. Because what does that do with somebody being watched, but they’re being watched with a knownn critical eye? Like, if somebody’s just being watched and, like observed, that’s one thing. If somebody’s being watched and observed where they know that they’re being nitpicked and critiqued, they’re going to fumble.

Think about it: No matter how confident you are, somebody comes in and says, “I’m going to rate you today.” The nerves happen. I mean, to use the Tokyo Olympics, like Simone Biles, even people at the highest caliber can get nervous when they know they’re being watched, and they know they’re being critiqued. And so, that has a whole separate issue. I just watched that documentary. But it really shows that we as human beings, we want to know our boundaries, we want to know what success looks like. We want to be helped and given the tools to achieve success. But if you’re just constantly nitpicking and aren’t, like, really helping me get there, then you’re just creating moments for me to have anxiety and get stressed. It’s just going to make me perform worse instead of better.

David: I did an assessment not long ago. Flew in, get there, and rumors already started like, I’m there to fire people. And that’s not what I… You’d have to, like, punch me in the face for me to be like, “You need to fire this person.” Like, that’s not what I’m there for. And turned out they had a platform they were using, and the bar team was really, they weren’t all outgoing [toward me]. When I was just trying to just talk and see what their guest service is like. How chatty they were. Just kind of watch them a little bit.

And the one bartender was like, “Oh, you’re from this company, right? You’re here to test us, right?” And I was like, “Do you want me to test you?” Like, what would I be testing on, cocktail builds? I’m like, “No, that’s not why. I don’t work for that company, and that’s not why I’m here. But if you want me to test you, I will.” And, then I got him to calm down, and he then totally relaxed. The rest of the bar team relaxed. So, yeah, if they even have an inkling that someone is in there to evaluate them, that’s a lot of pressure. I feel the same. I feel the same way when the client is watching me assess their team… They’re like, “Well, why is he watching that? Like, what does he see? Like, I feel pressure a little bit. I don’t want to screw up an assessment. Like, I don’t want to interpret this wrong. Yeah, it’s just pressure that you don’t need to put on someone.

Is There Even an Onboarding Process?

David: And also, before we on to the next one, it does make me think that there isn’t a onboarding process. And if there is, you have a training shift, and then now you’re a bartender. It’s like, okay, but if you’re micromanaging, I really don’t think that you have an onboarding process. Because if you did, you would trust the process, and let these people assimilate and get in their own grooves.

They’re not gonna work exactly how you expect them to. They’re bartenders, servers, whatever; they have their experience. They do what they’re gonna do behind the bar. They hold jiggers differently. They sometimes build cocktails a little bit differently. It just happens. So, I just don’t think that you actually have onboarding, and I definitely think, “Do you have manuals? Really?”If you are going to sit there and stare somebody down while they do their job that kind of brought that red flag where I don’t think there’s onboarding.

Bradley: I absolutely agree that there’s none. And I also have to wonder about people in that sort of environment. Because we’re kind of leaning towards we think that this is a pretty, maybe, aggressive micromanaging environment, which I think it is. At least, the person who wrote this thinks it is. But in those environments, too, the staff tends to band together a little bit, for better or for worse. And so I also wonder if he’s reached out to other bartenders. It’s like, “Hey, can you help me get this cocktail? I can’t figure it out.” Or, “How did you get faster at this?” Because, especially if it’s a tip pool, and whether tip pools exist in the restaurants at large or not, a lot of them in New York City do, but most bars are pooled in general just because it’s easier. And so, it incentivizes every other bartender to want you to be just as fast as they are. And so, is either this person too nervous to ask another bartender for help, or does the bar in general have a culture of just, kind of, like, sink or swim? Which, my very first server shift in my entire life was a sink-or-swin shift, and I had never served ever before. And I’ll tell you that that was a terrifying and terrible experience. Apparently I did okay, but it felt shitty the whole time.

So, culture starts the very first day. Culture starts, actually, during the interview process. And so, this employee doesn’t feel like they were set up for success. If they were set up for success, then they’re not the right fit for the company culture, where they just aren’t the right fit for what this bar is trying to do. But it also sounds like the owners, and/or management, and/or leadership could use a little bit of a, “Hey, you have to trust the team. You have to trust the process.”

“If you can’t trust the team, it’s the process that’s wrong.”

If you can’t trust the team, it’s the process that’s wrong. The training process is wrong. Your coaching and standards process is wrong. Your communication of systems is wrong, or you don’t have any. Also, again, there should never be a cocktail—and you, some people, will disagree with me, but then you can charge $50 for them—there shouldn’t be a cocktail that has that many steps to create. Especially if high-volume has anything to do with the bar concept.

David: Yep. There’s a bartender, bar owner out here in Vegas. They don’t like all the steps for a Sour, and they have developed a technique to remove one to two steps, make it that much faster. Their whole team knows it; anyone who’s working behind the bar there knows this technique. So, yeah, adding steps is… I have zero problem with keg cocktails. I think people for some reason think they’re hilarious. I mean, look at all the pour walls. People are like, “I’m gonna come to this bar and restaurant, and put money on a card to serve myself drinks.” Like, people like this kind of stuff. So, you can take steps out. Like you said, if you can can make housemade ingredients that much faster, then those are the right steps to take. And I’m sure the bar team would be like, “Yeah, we can do this if you’ll let us do it.”

Bradley: We had a rule that a drink on our menu should never have more than three touches. Right? You have the base spirit, you have one juice, and, you know, it was always, like, the combining of other ingredients, and then either one more or a bitters or something. Maybe you had four touches at the most. But you’re not sitting there trying to like reinvent the wheel every single time. If you always have a one-to-two ratio of a ginger syrup to some other juice, then just put it in a cheater, just put it in a bar bottle, and just have that two-to-one ratio because also you know it’s already measured, right? And so, prep, absolutely, just in the kitchen and in the bar, is the best recipe for success.

Going way off tangent for this topic, but it sounds like very little process exists here, right? There’s no onboarding process, there’s no training process. It seems like there might not be a good feedback process or coaching process. There’s definitely no bar process that I think is really setting the team up for success. Or this person is just so under-qualified and over-exaggerated that they came in and just, essentially, they’re like, “Oh, you’ve got this. You can do this in your sleep,” right? And then left. So, there’s something weird happening here. But I definitely think that it’s a mismatch between employer and employee.

“It’s all solvable.”

David: Yeah. And we’re not trying to roast the owner because we don’t know how much of this is true. Again, like I said in the beginning, we are taking these at face value, just as learning opportunities, really. So, it’s not like we’re like, “Oh yeah, this operator is terrible.” There does seem to be…there’s an issue. And again, the issue could literally just be this person is convinced they faked their way into this job ,and now it’s coming home to roost. And they have zero confidence because they’re trying to mask that: “Man, I probably don’t belong here.”

Which, again, I think is silly if you can learn this. And again, like, to your point, is the bar team cool enough to be like, “Hey, this impacts all of us. It impacts the servers. If this bar is slow and our drinks are slow, like, we all need to be…we can help you improve this.” Like, “Let’s do this.” And they obviously saw something in this person to hire them. I’m hoping it wasn’t just “here’s a body” if it’s a more upscale, higher-end spot.

So, that should tell them, hey, you got the job—nice. Gotta keep it. And you’ve done high-volume, most likely. If you worked in a college bar or a neighborhood bar, you’ve probably done volume. So, now it’s steps. It does suck: There are at least six ingredients in some of these signatures. Hopefully, there’s also, you know, people drinking G&Ts and Jack & Coke, and not a big deal. But this isn’t something that can’t be solved. And it’s either on the process side and leadership side, or it’s—

Bradley: Or it’s imposter syndrome.

David: Yeah, exactly. So, it’s just, what is the actual issue? It’s all solvable, is the great part of that one.

Note: Transcript provided by Eddy by Headliner, edited by author for clarity.

Image: Canva

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Restaurant door handle that says "push"
by David Klemt David Klemt No Comments

US Restaurant Employment Still Short

US Restaurant Employment Creeping Toward February 2020 Levels

by David Klemt

Restaurant door handle that says "push"

Keep pushing. We have work to do to reach February 2020 employment levels.

After what appeared to be a strong September 2023, restaurants and bars saw a decline of 7,500 jobs in the month of October.

In fact, the strong numbers from September were notably weaker once revised. After revisions, eating and drinking businesses added 48,300 jobs, not the nearly 61,000 from preliminary reports.

Importantly, a correction in employment numbers for August 2023 has revealed further declines. Initially, reports stated that restaurants had added 14,400 jobs. Unfortunately, the corrected number showed that restaurants shed 9,300 positions.

However, context is important. Notably, the unemployment rate in the US has remained under four percent for nearly 24 months. As of the latest reporting by the US Bureau of Labor Statistics, unemployment is at 3.9 percent.

Numbers by Restaurant Category

The data in this subsection comes from the National Restaurant Association. As the NRA notes, this information is based on data from September 2023.

These numbers should provide further context for restaurant and bar’s current situation. Some restaurant categories are struggling more than others to reach or surpass pre-pandemic levels of employment.

Below, employments numbers for September 2023 in comparison to February 2020.

  • Full-service: -214,000 jobs
  • Quick-service and Fast Casual: +128,000 jobs
  • Bars and Taverns: +50,000 jobs
  • Cafeterias and Buffets: -36,600 jobs
  • Catering and Mobile Food Service: +14,900
  • Snack and Non-alcohol Beverage Bars: +107,000 jobs
  • Foodservice Contractors: +15,100 jobs

As you can see, full-service restaurants are struggling the most to reach pre-pandemic employment numbers. However, QSRs and bars have surpassed that milestone.

By the Numbers

Below, the change in employment in each state and Washington, DC. The time period the data span runs from September 2019 to September 2023*.

  • Alabama: -5,700 (-3.4%)
  • Alaska: +100 (+0.4%)
  • Arizona: +18,200 (+7.6%)
  • Arkansas: +7,900 (+8.1%)
  • California: +32,700 (+2.2%)
  • Colorado: +9,100 (+3.8%)
  • Connecticut: -1,200 (-1.0%)
  • Delaware: +2,500 (+6.4%)
  • District of Columbia: -2,500 (-4.5%)
  • Florida: +35,200 (+4.4%)
  • Georgia: +21,800 (+5.5%)
  • Hawaii: -4,900 (-6.9%)
  • Idaho: +7,000 (+11.5%)
  • Illinois: -11,000 (-2.3%)
  • Indiana: +7,900 (+3.2%)
  • Iowa: -200 (-0.2%)
  • Kansas: +4,800 (+4.7%)
  • Kentucky: -400 (-0.2%)
  • Louisiana: -9,000 (-5.2%)
  • Maine: -4,000 (-7.9%)
  • Maryland: -16,700 (-8.0%)
  • Massachusetts: -15,600 (-5.6%)
  • Michigan: -21,400 (-6.3%)
  • Minnesota: -9,000 (-5.2%)
  • Mississippi: -1,700 (-1.7%)
  • Missouri: -3,500 (-1.5%)
  • Montana: +4,500 (+10.7%)
  • Nebraska: +600 (+0.8%)
  • Nevada: +22,300 (+16.7%)
  • New Hampshire: -1,500 (-2.9%)
  • New Jersey: +7,400 (+2.7%)
  • New Mexico: +3,100 (+4.2%)
  • New York: -10,000 (-1.4%)
  • North Carolina: +12,900 (+3.3%)
  • North Dakota: -100 (-0.3%)
  • Ohio: -6,300 (-1.4%)
  • Oklahoma: +3,600 (+2.5%)
  • Oregon: -2,000 (-1.2%)
  • Pennsylvania: -5,600 (-1.3%)
  • Rhode Island: -2,000 (-4.3%)
  • South Carolina: +1,000 (+0.5%)
  • South Dakota: +3,100 (+9.4%)
  • Tennessee: +8,000 (+3.0%)
  • Texas: +74,200 (+6.6%)
  • Utah: +12,900 (+12.0%)
  • Vermont: -1,000 (-4.7%)
  • Virginia: -100 (-0.0%)
  • Washington: +3,900 (+1.5%)
  • West Virginia: -2,600 (-4.6%)
  • Wisconsin: -8,100 (-3.8%)
  • Wyoming: -100 (-0.5%)

Ups and Downs

First, the less-positive news: restaurant employment is below pre-pandemic levels in more than half of the country. Including Washington, DC, 27 states are still lagging behind September 2019.

However, in some cases the change is negligible.

For example, Wyoming is down just 0.5 percent, and Virginia is down just 100 jobs or 0.00033 percent. Of the 27 states seeing declines, 20 are down less than five percent in comparison to September 2019.

Of course, it’s important to note that Hawaii, Michigan, and Massachusetts are down more than five percent.

So, to the good news. Two dozen states are enjoying restaurant and bar employment above September 2019 levels.

Four states are up more than ten percent. Nevada is leading the way, up 16.7 percent. Next is Utah, up 12 percent. Following in third is Idaho, up 11.5 percent.

Takeaways

Restaurant employment’s pre-pandemic peak was in February 2020. As of the most-current data, we’re down 14,000 jobs.

According to the most recent data, restaurants and bars employ 12.32 million people in the US. While we have yet to reach the 12.34 million that were employed in February 2020, we’re not far off. We still have reason to be positive about recovery.

The larger threat looming over operators is rising costs. Additionally, depending on the source, a recession is either a possible or current threat.

Of course, there’s still increasing demand from consumers to gather at restaurants and bars. So, again, there’s reason to remain positive.

This is all to say that numbers without deeper understanding and nuance only provide surface context. They can make us panic or breathe a sigh of relief, seemingly at the drop of a hat. We can either worry that we haven’t reached the pre-pandemic milestone, be positive that we’ll reach that number in the near future, or decide that perhaps that metric shouldn’t be the primary one by which we measure recovery.

In short, operators positioning themselves for long-term success understand their market, their teams, and their guests; focus on staff and guest retention; develop community engagement and support; and have strategic clarity.

*Sources: US Bureau of Labor Statistics, National Restaurant Association

Image: Tim Mossholder on Unsplash

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Three hands holding up three pineapples
by David Klemt David Klemt No Comments

Raise the Bar: The 3 Ps of Hospitality

Raise the Bar: The 3 Ps of Hospitality

by David Klemt

Three hands holding up three pineapples

No, one isn’t “pineapples.”

Nightlife, bar, and cocktail experts Mia Mastroianni, Phil Wills, and Art Sutley want operators to focus on what they call “the Three Ps.”

The engaging trio shared their trio of Ps recently in Las Vegas at the 2023 Bar & Restaurant Expo.

So, what are the Three Ps of hospitality? People, Place, and Product. Operators who pull the threads tighter on each of these crucial elements will be well on their way to improving operations and the guest experience.

People

Remember all the way back to a week ago when I shared Mastroianni, Wills, and Sutley’s thoughts on service versus hospitality? Consider the first P a deeper dive into that topic.

Operators need to focus on two categories of people who help their businesses succeed: their teams and their guests.

Addressing the former, the trio feels that operators are centering a disproportionate amount of their attention on guests in comparison to staff.

“We’re not lacking for people who want to work in the business and are outperforming other industries, but we’re not focusing on staff like we focus on guests,” says Wills. “Treat everyone with respect, including through the hiring process. If you don’t engage your staff, you won’t retain them. You need to show them they can grow in your business.”

According to Sutley, 89 percent of operators say that labor costs present a “significant challenge.” It follows, then, that committing to treating staff with respect and nurturing their careers isn’t just the right thing to do, it’s smart business.

Look for people with passion, those you can motivate to go above and beyond so you’re not stuck with a team full of space-fillers who are just after a paycheck, suggests Mastroianni.

Of course, operators and their teams must also focus on providing exceptional service and experiences to guests.

“Treat ever guest like a pearl in an oyster,” advises Wills. “They’re the pearl, we’re the oyster. We need to ‘protect’ them.” Anything less, cautions Sutley, and guests won’t return.

Place

Interestingly, the trio touched on design, aesthetic, and vibe. However, that isn’t the crux of the second P.

Rather, Place is really goes back to the guest experience. The design, aesthetic, and vibe need to meet guest expectations.

“Make sure your space is what it’s supposed to be,” says Wills.

For example, if a concept presents itself as a high-end cocktail bar, the four walls need to deliver on that expectation. With the exception of a handful of high-level examples, an upscale bar won’t survive if they deliver a dive bar—not neighborhood bar, dive bar—vibe and service. (For the record, I love a dive bar. But I don’t expect to encounter TV trope-style dive bar service if I walk through the doors of a high-end cocktail bar.)

One way operators can ensure their space is what it should be is standardization. Once a concept goes from idea to brick and mortar, when the owner’s vision is realized, the team needs to deliver a matching experience. Steps of service, systems, procedures…standardization is the name of the service game.

“Standardize your opening, shift, and closing procedures and systems to maintain your place,” says Mastroianni.

Every team member—front of house, back of house, leadership—needs to know and buy into an operator’s standards.

Product

Standardization breeds consistency. And consistency is a key element of the third P, Product.

Per Sutley, 76 percent of operators have noticed that guests are opting for more premium drinks. That’s great news, but it’s not the whole story.

It’s great that guests are opting for more expensive drink options. After all, that can certainly help the bottom line.

“However,” cautions Mastroianni, “they won’t come back without consistency in production.”

To drive this point home, consider this story from Mastroianni. A bartender made her a drink, and it was pretty good. She ordered another one from the same bartender and watched him make it differently the second time around. Not only was this second version different, it was better. While one could view this story through a positive lens—the drink was even better the next time!—that’s not the correct takeaway.

If the bartender was committed to building cocktails consistently, the second version of that cocktail would’ve been the first one served to Mastroianni. It would be the best version, and it would always be that impressive version.

When we’re fighting the possibility that up to 70 percent of first-time guests never return, the importance of product consistency can’t be overstated.

“Really focus on the small details to affect big change and get guests through the doors and keep coming back,” says Wills.

Image: Aleksandar Pasaric on Pexels

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Frustrated man sitting on couch
by David Klemt David Klemt No Comments

Leadership Facepalm, Part Three

Leadership Facepalm, Part Three

by David Klemt

Frustrated man sitting on couch

We almost got to next year without another viral leadership facepalm moment but then an Olive Garden manager sent a memo.

In case you’re unaware of the now-infamous Olive Garden memo, here’s a recap:

  • Zero tolerance for calling off.
  • Sick team members must come in and prove they’re ill.
  • If someone’s dog dies, they must bring the dead animal in to prove its death.
  • Family emergencies are not private and must come with an explanation.

The manager who authored the memo also takes time to boast about their perfect attendance record.

For the curious, the first entry in our leadership facepalms is here. Part two is here.

The Letter

Below you’ll find the letter, addressed to “ALL Team Members.” To read it in its entirety, click here.

“Our call offs are occurring at a staggering rate. From now on, if you call off, you might as well go out and look for another job. We are no longer tolerating ANY excuse for calling off. If you’re sick, you need to come prove it to us. If your dog died, you need to bring him in and prove it to us.”

I highly doubt that’s Olive Garden or Darden policy.

“If its a ‘family emergency’ and you can’t say, too bad. Go work somewhere else. If you only want morning shifts, too bad go work at a bank. If anyone from here on out calls out more than ONCE in the next 30 days you will not have a job.”

It doesn’t get any better when the manager brings up their own track record:

“Do you know in my 11.5 years at Darden how many days I called off? Zero. I came in sick. I got in a wreck literally on my to work one time, airbags went off and my car was totaled, but you know what, I made it to work, ON TIME! There are no more excuses.”

Interestingly, the manager implies they’re speaking for all the leaders:

“Us, collectively as a management team have had enough.”

A Breaking Point

First, I’m not pretending a staggering amount of operators, leadership teams, and team members aren’t at their breaking points. The labor shortage and staffing struggles are a real crisis in our industry (and others, of course).

Second, I’m not suggesting that operators and their teams aren’t justified in their frustration and anger.

If we’re to accept just this year’s reporting alone, it appears many people are comfortable being rude to service workers. It’s a disturbing trend, and it’s motivating people to leave public-facing roles. As they’re leaving, many are swearing off the hospitality industry entirely.

Third, I think the memo above highlights our need to address mental health in this industry. Sure, it’s easy to write this manager off as a jerk and terrible leader. But what if we look at this through the lens of stress?

The memo could easily be the manifestation of a breaking point. It’s also possible the entire management team was behind this email.

Damage Done

Let’s look at this situation solely as an example of poor judgment and leadership. Imagine the damage it could do to any restaurant or bar, chain or independent.

What do you think a memo like this does to the ability to recruit? To retain? How does such an email do anything but exacerbate labor problems?

Darden, Olive Garden’s parent, went into crisis management mode when this memo went viral. It appeared on Reddit, was picked up by news outlets and other websites, and exploded.

Ultimately, Darden terminated the manager to whom the memo is attributed: “We strive to provide a caring and respectful work environment for our team members. This message is not aligned with our company’s values. We can confirm we have parted ways with this manager.”

The Olive Garden location in Kansas where this situation took place may recover. They’re a large chain, people tend to have short memories for news, and regulars will likely stay loyal.

But what if this occurred at an independent restaurant? The damage could be irreparable.

Work Culture

Now, it should be obvious that from a simply operational standpoint, this situation highlights an unhealthy work environment and culture. That should go without saying.

So, instead I want to say something else.

Operators need to check in with their team members. Leaders, front of house, back of house—everyone. Stress levels are reaching breaking points and every one of your team members needs to know they matter, they’re safe, and they’re supported.

Check in. Survey your team. Be empathetic. And if you’re an operator, you need a support system of your own.

Being a leader doesn’t mean being infallible. It’s not poor leadership or weakness to admit you need help.

Image: Nik Shuliahin 💛💙 on Unsplash

Newfoundland and Labrador during daytime
by David Klemt David Klemt No Comments

These are the Happiest Provinces in Canada

These are the Happiest Provinces in Canada

by David Klemt

Newfoundland and Labrador during daytime

If you’re wondering which province in Canada is the happiest, Statistics Canada has the answer—and the happiest may surprise you.

Of course, those who live and work in the happiest province won’t find it shocking. After all, they’re largely happy to be there.

However, if you expect the happiest province to be the home of Toronto, Vancouver, Montreal or Canada… Well, you’re in for a surprise.

Earlier this week we took a look at the happiest cities and states in America. Congratulations Fremont, California, and Hawaii, respectively. To learn where 181 other cities and 49 states rank, please click here.

The Happiness Survey

Or more accurately, the “life satisfaction” survey. For this survey, that’s what Statistics Canada reveals: life satisfaction.

Interestingly, the survey is very simple. Apparently, Statistics Canada simply asked participants to rate the satisfaction of living in their province, zero through ten. For this survey, zero is least satisfied, ten is most.

Ages 15 through 75 (and older) were able to participate. The survey was also broken down to gauge the satisfaction of men and women.

Before we jump into the breakdown of province satisfaction or happiness, some good news. Reviewing the Statistics Canada data, most participants across all age groups are happy. In fact, age groups 65 to 74 and 75-plus appear to be happiest.

On the other side, ages 15 to 54 had the most people who rated their life satisfaction between zero and five. Even so, just over 20 percent of survey respondents rated their satisfaction a five or less.

So, on the whole, Canadians seem satisfied or happy with their lives, regardless of the province in which they live. Personally, I find that to be great news.

The Happiest Province

Okay, let’s dive into the reason you’re here: to learn which province is the happiest.

  1. Newfoundland and Labrador
  2. Prince Edward Island
  3. Quebec
  4. New Brunswick
  5. Manitoba
  6. Alberta
  7. Saskatchewa
  8. Nova Scotia
  9. Ontario
  10. British Columbia

The above rankings are determined by the percentage of survey respondents who rated their life satisfaction eight, nine or ten. So, if you’re in Newfoundland and Labrador, Prince Edward Island or Quebec, wow—you’re apparently one incredibly happy person.

Conversely, below you’ll find the rankings as determined by the largest percentage of respondents who rated their satisfaction a five or lower. As you’ll find, the list below isn’t simply the inverse of the one above.

  1. Ontario
  2. British Columbia
  3. New Brunswick
  4. Alberta
  5. Nova Scotia
  6. Prince Edward Island
  7. Manitoba
  8. Saskatchewa
  9. Quebec
  10. Newfoundland and Labrador

As far as Canada overall, the results of this particular survey are positive. Just 19.4 percent of survey respondents rated their satisfaction or happiness zero through five. And only 28.9 percent provided a rating of six or seven.

More than half of Canadians, 51.7 percent, rate their lives an eight, nine or ten. That’s some great and welcome news.

Image: Erik Mclean on Unsplash

Pink neon "breathe" sign
by David Klemt David Klemt No Comments

The Crucial Role Systems Play

The Crucial Role Systems Play

by David Klemt

Pink neon

Having efficient systems in place does more than just streamline day-to-day restaurant, bar, and hotel operations and increase productivity.

Of course, that’s an excellent reason for operators to ensure they implement multiple systems. Front-of-house, back-of-house, and leadership team members need systems to perform at their best.

Six Sigma, kaizen, the technology stack, checklists, manuals, marketing strategies, the guest journey… Each of those systems and more are key to the long-term success of restaurant, bar, and hotel operations.

In fact, these systems should be developed and ready for implementation before the doors ever open for the first time.

Further, effective systems communicate the expectations for roles and tasks. Onboarding and training systems improve recruitment and retention. Also, they provide the transparency that today’s professionals expect from their employers. On top of that, systems help develop consistency, which keeps guests coming back.

A strong leadership team is effective at implementing and following systems. Overall, a strong team is one that understands, embraces, and adheres to a systematic approach to operations to achieve shared goals.

Simply put, the only way achieve success is to be strategic. One can’t be strategic without the implementation of systems.

But there’s another crucial role that systems play in restaurants, bars, and hotels.

Get Out

This topic is the byproduct of a recent KRG Hospitality client call. While explaining our approach to projects, our team touched on the importance of systems.

However, the topic wasn’t brought up simply to detail what systems the client would need to have in place.

A crucial role systems play in a successful operation is getting an owner away from their four walls. More importantly, allowing them to confidently and comfortably leave their business.

If an owner—be they a sole proprietor or business partner—can’t step away from their restaurant, bar, or hotel without worrying, something is wrong. Either the systems in place are ineffective, they don’t address every element of the business, they aren’t being adhered to, or they don’t exist.

Effective systems allow an owner to take time away from their business without micromanaging staff. Systems should also be in place so the owner or owners don’t feel anxious when they’re not working on the business.

Breathe

Stepping away to pursue a hobby, engage in self care, spend time with family and friends, or just because one wants to take a “lazy day” is necessary.

The strategic implementation of systems makes it possible for someone to take time away from their business. They can take that vacation, pursue that goal that doesn’t relate to their business directly, recharge, etc.

Of course, having systems in place also mean an owner and members of their team can travel. They can comfortably attend industry shows, make a guest appearance at a peer’s bar, or host a pop-up without worrying about the business. Having systems in place also makes it possible to travel to discover new F&B items, learn new techniques, and forge relationships with industry peers.

In other words, systems help owners and operators do something they likely haven’t done in months, if not years: breathe.

Image: Fabian Møller on Unsplash

Interesting "Information" typography
by David Klemt David Klemt No Comments

Are You Surveying Your Team?

Are You Surveying Your Team?

by David Klemt

Interesting "Information" typography

Successful recruitment is only one element of overcoming the current labor shortage—retention is another crucial element.

In fact, employee turnover can be incredibly costly. According to the Center for Hospitality Research at Cornell, employee turnover costs nearly $6,000 per hourly team member.

Now, consider what it costs to hire a single employee. On average, it costs $3,500 to hire that worker in the first place. So, the math is simple: Losing an employee costs an operator more than hiring one.

Unsurprisingly, turnover cost more than doubles—nearly $14,000—for a restaurant manager. In short, employee retention is arguably more important than recruitment and hiring.

Labor Shortage

Per Datassential, 33 percent of 801 survey respondents say the labor shortage is their greatest challenge in 2022. More than 70 percent of those respondents are independent operators.

However, independent, chain, and franchise operators appear to agree on one particular element of the challenge. Across segments, hiring hourly back-of-house employees is the most difficult.

In fact, Datassential’s latest FoodBytes report states that restaurants are coming up short in the kitchen. Two-thirds of restaurants are struggling to fill open hourly cook positions.

So, what’s the solution? Higher starting wages? Bonuses for remaining in role for 90 days? Benefits like health insurance and a 401K?

Each of those does work—for recruitment and hiring. What keeps a new hire from leaving after 90 days with their bonus cash, heading down the road to the next restaurant or bar?

It’s commonly agreed that the first 90 days of a new hire’s employment are the most crucial. Wages and benefits keep them in role for roughly three months. During that time, they’re deciding if their role and the employer’s culture are for them.

Employee Engagement

If you’re an owner, operator, or member of the leadership team, you know the importance of data. In fact, you should be obsessed with data collection and analysis.

Truly, the best way to make decisions that will impact the business is with information. Guesswork just doesn’t cut it. Yes, you should pay close attention to your “gut.” However, you should avoid acting on gut instincts before analysing the relevant data.

Wisely, many operators encourage their guests to complete satisfaction surveys. After all, their feedback is crucial to the success of any business. But what about employee surveys? Your team is equally as important as your guests.

Unhappy team members, unhappy guests. Unhappy guests, reduction in traffic. Team members fleeing your business? Your guests pick up on turnover. Eventually, you won’t have a business.

Now, you can assume your team is happy. You can feel like your leadership team is ensuring employee satisfaction and engagement. Or, you can know.

How do you know? You ask.

Satisfaction Surveys

Call it a satisfaction survey, call it a happiness survey… Either way, you’re asking your team members how happy they are with you and their role.

Operators will likely want to keep these surveys anonymous. Several sources that address employee surveys claim most employees prefer anonymity. Unfortunately, this is due to a fear of retribution from ownership or the leadership team.

Even with a healthy workplace culture, anonymity is probably the best for these surveys. Of course, if you’re implementing a 90-day happiness survey for new hires, anonymity doesn’t make much sense.

As far as company-wide survey frequency, there are several options. Once per year is obviously the bare minimum. Therefore, it’s not very effective. Every six months is better but is checking in on your team’s happiness twice per year enough?

The sweet spot appears to be quarterly surveys. More than that—monthly or bi-monthly—will likely get annoying.

Survey Questions

Below are a few questions to consider for your surveys. You’ll have to decide if you want to use multiple-choice, yes or no, matrix, or open-ended questions, or a mix of each type.

Another consideration is how your team will access the survey. The process needs to be as painless as possible. So, consider pushing a link via your scheduling platform, text, or QR code.

  • How happy are you working here?
  • How happy are you in your current role?
  • Would you recommend us to friends and family as a good place to work?
  • Does the leadership team make you feel valuable?
  • Do you see yourself working here a year from now?
  • Are we helping you succeed in your role?
  • Are we giving you what you need to progress in your career?

Image: Roman Kraft on Unsplash

Reddit app icon on smartphone
by David Klemt David Klemt No Comments

Viral Post Highlights Real Leadership

What a Viral Reddit Post Reveals About Leadership in Hospitality

by David Klemt

Reddit app icon on smartphone

A text exchange between a restaurant manager and delivery driver posted to Reddit went viral last month.

Refreshingly, it didn’t make the rounds on news sites for the wrong reasons. Rather, the text conversation is a succinct example of emotional intelligence, empathy, and leadership.

Those interested in reading the text exchange in its entirety can follow this link. However, I’ll sum it up here.

Posted to the subreddit Kitchen Confidential, the conversation begins with the manager checking in on the driver, asking, “You doing OK?”

The driver says they’re “doing better but” is still dealing with a lot. After the manager asks if they should cover their shift that night, the driver reveals they may need to quit the job.

Instead of blowing up at the driver, trying to talk them out of their decision, or cutting the exchange short, they say, “It’s alright [sic].”

Going further, the manager says, “You’re [sic] happiness is more important.” They add that the business hopes the driver will return to the job when they’re ready.

Shall I Cover You Tonight?

Now, I tend to believe that most members of restaurant, bar, and hotel leadership teams are empathetic. I also lean toward believing that most are competent problem solvers.

However, we’ve all come across people who don’t belong in a leadership role. In some cases, a person’s lack of leadership qualifications doesn’t manifest until they’ve been in the role for some time.

My business partner Doug Radkey and I have had conversations about leaders who don’t seem to lead. At best, they’re examples of what not to do. At worst, they’re chasing away a business owner’s staff and guests.

Most recently, these conversations have centered around managers insisting that staff solve scheduling problems themselves.

Before I proceed, I acknowledge fully that we’re facing an unprecedented labor shortage. That’s no excuse for poor leadership.

What, exactly, is the leadership team doing that they can’t manage the schedule? Further, with today’s modern scheduling platforms, why is filling available roles difficult for leaders? Several scheduling apps make it a painless, automated process.

The manager in this Reddit text exchange doesn’t demand the driver find someone to cover their shift. Instead, they behave like a manager and handle it themselves.

Don’t Ever Discount Yourself

If you’re active on LinkedIn and have a sizeable hospitality-centric network, you’ve likely seen posts about how the industry needs to be more people-focused. Not in terms of guests—that’s obvious.

Rather, the consensus is that we’re not going to solve the labor problem if we don’t treat staff as well as we treat guests. Some of these posts may be a bit saccharine, but they’re not incorrect.

Let’s review the texts from this manager:

  • “You doing OK?”
  • Your “happiness is more important.”
  • “We love having you here.”
  • “You’re an awesome person.”
  • “Don’t ever discount yourself.”

When’s the last time you and other members of the leadership team asked a staff member if they’re okay? And if you’ve asked recently, did you get an honest answer? Did you want an honest answer?

A restaurant or bar team that doesn’t trust leadership isn’t going to bother providing an honest answer to that question—they feel like the leaders don’t care about them.

Looking at the rest of the texts above, do you and your leaders take the time to recognize and thank staff? Even the shyest team member wants recognition for a job well done.

Those in leadership roles need to develop their skills constantly. Contrary to some in those positions, leaders aren’t there simply to lord their authority over others and dish out punishments.

So, before your next team meeting, gather the leaders. Find out if every member of the team is checking on staff, valuing their health and wellness, and tackling the mundane tasks that are inherent to their roles.

The maxim is true: People don’t quit jobs, they quit people. If your leadership team isn’t leading with empathy, you can expect your labor issues to compound. No amount of excuses will turn that around.

This article by KRG Hospitality director of business development David Klemt was first published by Bar Business and can be read in its entirety by following this link.

Image: Brett Jordan on Unsplash

Employees wearing black staff T-shirts
by David Klemt David Klemt No Comments

Back of House Report: The Labor Challenge

Back of House Report: The Labor Challenge

by David Klemt

Employees wearing black staff T-shirts

A recent report from Back of House reveals opportunities for operators amidst the current staffing challenge.

In their report, the restaurant technology platform suggests effective hiring and retention solutions. For example, helping staff find meaning in their work.

To download and access the report in its entirety, please visit BackOfHouse.io.

For some of the platform’s insights into staffing, keep reading.

Why People Leave the Industry

Obviously, people take jobs for a variety of reasons. Often, a person’s first job has one or two motivations: money and/or experience.

Some estimates put a gig in the restaurant industry as the first job for a third of Americans. In Canada, restaurants are the top employers for those under 25 years of age.

However, Back of House sees value in looking at a different metric: Why people leave the industry.

As Back of House states, knowing why someone would leave their job helps an operator determine what benefits to offer to retain talent.

Now, it may be tempting to assume pay is the top reason people leave jobs. Per Back of House, however that’s not the case. Broken down by age group, below you’ll find the reasons people are leaving hospitality:

  • Pay: 26 to 35
  • Schedule: 46 to 55
  • Lack of opportunities: 26 to 35
  • Lack of benefits: 26 to 35
  • Work environment: 18 to 25

Look at these issues through the lens of someone moving through life. When first entering the workforce, more people want to find the right employer and workplace. From their twenties to thirties, more concern is placed on moving up, making more money, and receiving benefits. And, per Back of House’s findings, time becomes more of a consideration as people age.

Meaning and Value

Per Back of House, there are two important elements of employment that keep people engaged.

One, meaning in the work they do. In other words, feeling that their work has value. Two, staff want to feel that they’re employers value them.

Of course, both make sense, no? If a person doesn’t see their role in the industry as valuable, they’ll always be looking for the escape hatch. And if they feel that they’re employer doesn’t value them, why would they continue working for them? People, as they say, quit bosses, not jobs.

So, Back of House recommends that operators demonstrate they value their team members by:

  • investing in their staff;
  • supporting their staff; and
  • respecting their staff.

Now, good leaders should already do all of the above. It should go without saying but if someone feels a lack of respect, support, and interest from their employer, they’re not going to remain in their role for long.

And who could blame them? That seems like a terrible workplace and a waste of a hospitality professional’s valuable time. Time, of course, that can be better spent finding a good leader to work for who will help them progress in their career.

There are further insights one can glean from Back of House’s report. To download “Understanding the Staffing Challenge,” please click here.

Disclaimer: Neither KRG Hospitality nor its representatives received compensation to promote this report. The team at KRG simply feels all operators will find value in downloading and reading it, and considering the information contained therein.

Image: Joao Viegas on Unsplash

Woman dining with friends in restaurant
by David Klemt David Klemt No Comments

Chain Restaurants: Present & Future

Chain Restaurants: Present & Future

Woman dining with friends in restaurant

Technomic presented the state of chain restaurants, now and next, during Restaurant Leadership Conference 2022 in Scottsdale, Arizona.

Obviously, the entire hospitality industry is facing significant struggles. Rising costs, supply chain chaos, labor shortages and challenges, inflation… The past two-years-plus haven’t been easy.

However, there’s reason for operators and their leadership teams and staff to be optimistic. Additionally, independent and small-chain operators can learn from Technomic’s findings.

Challenges & Threats

Well, let’s take our medicine first, starting with the supply chain. In short, it’s bedlam.

Joe Pawlak (standing in for David Henkes) and Richard Shank of Technomic said as much during RLC 2022. Per their data, 35 percent of operators dropped at least one manufacturer between 2020 and 2021.

Whether because of rising costs, an inability to consistently deliver product, or other factors, operators had to adapt. Clearly, there’s a nasty trickle-down effect when an operator drops a supplier.

And then there’s inflation. Interestingly, Shank calls what we’re seeing currently as “existential inflation.” Relating to consumers, this means their confidence is shaken in terms of spending.

Of course, this type of consumer perception manifests in several ways. For example, some guests cut down on visits. Others will cut down on ordering, skipping appetizers and desserts. Perhaps they have one less beer, glass of wine, or cocktail.

Also, some guests “trade down.” Meaning, there are consumers who opt for casual restaurants rather than fine dining. Or, they’ll move from fast-casual to QSR.

Looking at the numbers, however, nearly 40 percent respondents to a Technomic survey say they’re visiting restaurants less. This makes sense, as 81 percent are concerned about how inflation will impact them personally.

On the operator side of inflation comes pricing. During Pawlak and Shank’s presentation, they used QSR dinner pricing as a real-world example.

According to Technomic, the tipping point for guest perception of good value is just $7. At only $10, consumers feel things are getting expensive.

As Pawlak and Shank pointed out, this is a problem. After all, the average price for dinner at a QSR is $10.08. That number may already be higher today.

Opportunities

Medicine taken, we can move to the good news.

First, Technomic predicts a strong Q3 this year. Additionally, they don’t expect double-digit year-over-year inflation.

In terms of labor, Technomic doesn’t expect costs to go down. However, they do anticipate that they’ll level off rather than rise.

Then there are the numbers. For the top 500 chains in the US in particular, 2021 was a “banner year,” according to Pawlak. On an aggregate basis, sales for the top 500 (McDonald’s is number one, for those wondering) are up 17.9 percent.

Also, every category of restaurant is performing better. The top 500 chains, for instance, are up 18 percent year-over-year. Midscale restaurants are up 38.5 percent. Casual is up 30.2 percent while fast is up 22.2 percent, QSRs are up 13.2 percent. As far as the biggest bump, fine dining is up 56.9 percent.

Looking at 2019 for obvious reasons, the industry was down 49.1 percent in sales in April 2020. However, the industry was down just about a single percentage point in February of this year compared to the same time in 2019.

So, how do we keep sales trending upward when facing inflation and other threats? Pawlak, Shank, and Technomic have some advice.

Operators, for instance, can implement the “balanced barbell” pricing strategy. In this model, high-value items drive business alongside premium offerings. In other words, don’t discount the entire menu just to entice guests to keep visiting.

Once guests get a taste for falling prices, they’ll consider the lower prices the standard. After that, any increase can be perceived as “too expensive.” Of course, discounting the whole menu also impacts guest perception of the brand negatively.

In addition, Technomic suggests offering higher net profit discount bundles, and implementing off-premise, large-party strategies.

Should Technomic’s predictions prove true, the industry may see an even stronger Q4 and start to 2023.

Image: Alex Haney on Unsplash

Server helping guest in restaurant
by David Klemt David Klemt No Comments

This Simple Test Reveals Process Problems

This Simple Test Reveals Process Problems

by David Klemt

Server helping guest in restaurant

There’s an easy way to identify whether there are changes that need to be made to processes and practices that only requires observation and time.

Luckily, it doesn’t take much time, either. In less than a week, an operator can determine if there are issues relating to onboarding new hires.

This simple test was shared during the 2022 Restaurant Leadership Conference in Scottsdale.

Interviews are Just the Start

It should go without saying but here we go: The hiring process doesn’t end with the interview.

An operator or their leadership team found an amazing job candidate? Awesome! That’s no small feat these days.

However, that’s just the first step in hiring and building a rock star restaurant, bar or hotel team.

Step two is onboarding, step three is training, and step four is advancement.

For KRG Hospitality, onboarding goes far beyond filling out federal and state paperwork. There’s more to it than setting up direct deposit and getting a new hire on the schedule.

Rather, operators need to implement a fully developed onboarding process. The key word there is “process.”

True onboarding includes the review of an employee handbook and an introduction to the business. During this process new hires should become familiar with the brand’s history, vision, culture, mission, and core values.

By the end of this process, a new team member should understand what’s expected of them, both in their individual role and behaviorally. Additionally, they should be introduced to the entire team.

In reality, the onboarding process is the development of a professional relationship.

The Test

Technically, the actual test for operators is for them to have in-depth hiring, onboarding and training processes in place.

So, operators should take a moment to review whether they have those processes.

However, the test I’m talking about here relates to onboarding directly. It’s simple and it was shared during RLC 2022 by Jim Thompson, COO of Chicken Salad Chick.

The only requirement is a few days’ time and an observant operator and/or leadership team.

Let’s say a candidate nails the interview. In particular, their personality is perfect for the available role. As the the hospitality industry maxim goes, hire for personality, train for skills.

The new hire works their first shift but their personality doesn’t shine through. However, that could be first-day jitters. Unfortunately, that personality the leadership team hired for is nowhere to be seen during their next few shifts.

According to Thompson, if a new hire’s personality doesn’t shine through within four shifts, there’s likely a process and practices issue. The lack of personality is an indicator that the new team member doesn’t feel confident in their role.

The onboarding process—either too shallow or nonexistent—is a likely culprit. Operators can use this test, a simple four-shift observation of a new hire, to determine if there’s a problem.

Once identified, the operator and their leaders can put their heads together, review the issue, and implement effective, positive change.

Image: Caroline Attwood on Unsplash

Person using Uber app on phone
by David Klemt David Klemt No Comments

The Uber Effect: Recruit and Retain

The Uber Effect: Recruit and Retain

by David Klemt

Person using Uber app on phone

To better understand how to recruit and retain top talent these days we can simply look at what’s known as the Uber Effect.

We just got back from the Restaurant Leadership Conference in Scottsdale, Arizona. The education was top-notch, featuring a wide range of restaurant industry experts.

One outstanding session illustrates the need for operators—chain and independent—to change their approach to recruiting and retaining staff.

Flexibility in the Workplace

According to Jennifer Grimes, senior vice president of client services for Service Management Group, people in the labor pool are after three things when seeking employment.

Generally speaking, they want better pay, better benefits, and better scheduling. Gone are the days of people focusing only on their paychecks.

And per Jim Thompson, chief operating officer of Chicken Salad Chick, the Uber Effect is largely responsible for this shift in focus. The Uber Effect refers to people realizing they can be much more in control of their careers.

In simplest terms, Uber drivers are in control of their workdays. They can work as often as they want, whatever hours they want, and wear what they want while working.

Of course, it’s not complete anarchy. There are rules, there are expectations, there are standards. However, there’s also flexibility.

Along with more flexibility in scheduling, people want the following:

  • workload balance;
  • ability to trade shifts;
  • better communication; and
  • paid vacations.

Today’s modern scheduling platforms make it simple for operators and their leadership teams to meet these expectations. With these apps, operators and leadership can:

  • assign specific roles to individual team members;
  • communicate clearly with staff;
  • allow staff to trade, drop, and pick up shifts; and
  • fill available shifts.

One Size Doesn’t Fit All

Thompson has an interesting anecdote about availability.

A Chicken Salad Chick manager conducting interviews didn’t proceed with a candidate. Asked by Thompson why they wouldn’t be moving forward, the manager pointed to the candidate’s availability.

During the interview, the candidate provided only a single day and the manager felt that wasn’t enough. However, Thompson disagreed with the manager’s assessment.

What if, Thompson posited Thompson, their availability filled a currently open shift? At least there would be one less shift for leadership to worry about.

But it went deeper than just that point. Good operators and leaders know that job interviews aren’t one-way streets. Candidates are also interviewing their potential employer.

What if this candidate provided limited availability because they’re unsure about a particular employer? They may not know the brand all that well, they likely don’t know the leadership team, and they don’t yet understand the workplace’s culture.

As Thompson says, “One size fits all is over.” Operators and their leadership teams need to be flexible.

It’s highly possible that just a few shifts in, if the narrow-availability team member is a good fit and finds the job engaging, they’ll broaden they’re availability.

Developing the Culture

Of course, the above scenario comes down to culture. And Thompson has an interesting thought on that operational element.

If an operator isn’t constantly developing their culture, it will grow stagnant. Maintaining the current culture isn’t good enough.

Failing to do so will ultimately lead to a decline in guest satisfaction. When that happens, a decline in traffic comes along with it.

It’s really rather simple: How an operator and the leadership team treats employees trickles down to guests. Unhappy and unsatisfied staff provide poor service. How long are guests going to tolerate negative guest experiences?

And no, simply offering competitive compensation doesn’t automatically equate to treating staff well.

“Competitive pay, to me, is the cost of entry,” says Thompson.

To this point, the COO, also the self-appointed chief smile officer, addresses how the restaurant chain respects personal time.

Chicken Salad Chick, founded in 2008, is closed on Sundays. This isn’t due to any religious influence. Rather, the founders, per Thompson, were influenced by what they perceived as a high divorce rate in the restaurant space.

So, the brand wants employees to have family time. That’s also why there stores are also closed by 8:00 PM. In some cases, they close at 5:00 or 7:00 PM. Again, personal and family time.

Could they generate more revenue if they opened earlier and closed later? Probably. However, their culture is crucial to their success.

Takeaway

If operators want to begin the process of truly developing a positive workplace culture, there are several questions Thompson suggests operators and their leaders should ask.

Is the brand purpose driven? Does focus on fun, family, and culture?

How can the business offer incremental value to staff? Are the pay and benefits competitive? Is the workplace safe and are their opportunities for staff to advance?

What’s the community like within the four walls? How’s the energy within those walls?

Are the processes and practices in place helping or hindering recruitment and retention? How can the processes be simplified so employees learn what they need to know quickly?

How flexible is the business, honestly? What’s being done to truly help leadership create better relationships with the team?

Finally, I’ll end on something interesting from Grimes. Analyzing employee engagement, SMG has found that isn’t just about compensation.

In fact, when it comes to what makes most people perceive their job as fulfilling, the top influencer is working with people they like. Second is salary and benefits. Third, rewarding work.

Operators need to adapt to employee expectations, just as they need to focus on those of guests. Sitting down with their leadership teams to discuss Thompson’s questions is a great first step toward developing a culture that works and rewards.

Image: Priscilla Du Preez on Unsplash

Airplane email icon set against white brick wall
by David Klemt David Klemt No Comments

Leadership Facepalm, Part Two

Leadership Facepalm, Part Two

by David Klemt

Airplane email icon set against white brick wall

In a stunning example of tone-deafness and callousness, a franchisee executive sent an email that led to severe consequences.

And no, I’m not talking about the termination of the offending exec. That, in my opinion, was well deserved.

In this instance, the email has led to mass resignations and damage to a global restaurant chain’s reputation. What’s more, the negative impact to the brand’s reputation comes from consumers and employees.

Of course, I’m talking about the now-infamous Applebee’s “gas prices” email.

The Email: Labor

Let’s just jump right into the email, because…wow.

“Most of our employee base and potential employee base lives paycheck to paycheck,” writes the executive. “Any increase gas prices cuts into their disposable income.”

This could have been an excellent example of awareness and perhaps even empathy. In the context of this email, it’s appalling.

Why? Mainly because this executive appears to be celebrating the fact that Applebee’s employees, at least those who work for this franchisee, are barely earning a living wage.

“As inflation continues to climb and gas prices continue to go up, that means more hours employees will need to work to maintain their current level of living,” continues the author.

In this exec’s view, this franchisee is “no longer competing with the government when it comes to hiring.” He cites stimulus payments and boosted unemployment support have run out. Therefore, he reasons that people will be forced to return to the workforce.

The author further points to competitors increasing wages to recruit and retain employees. This, he figures, is untenable and some will have to close their doors. So, the labor pool will fill up and this franchisee will benefit.

The Email: Wages

Some of what I’ve laid out above is accurate. According to some estimates, about two-thirds of Americans live paycheck to paycheck.

Additionally, it’s accurate to state that some employees will seek more hours to combat the effects of rising costs. Further, yes, the labor market is turbulent and challenging.

And, unfortunately, some independent operators are facing incredibly difficult decisions. To recruit and retain, they’ll need to be competitive and raise their wages. To pay for that, they’ll need to raise prices, passing on rising costs to customers. In some instances, for some operators, that will prove unsustainable.

However, an executive in this industry shouldn’t be delighted about any of this. And they certainly shouldn’t see it as an opportunity to potentially pay employees even less.

You see, the author of this email suggests that the franchisee can bring in new workers “at a lower wage to decrease our labor (when able).”

He then recommends monitoring employee morale to ensure that the Applebee’s operated by this franchisee is their “employer of choice.”

For me, however, the most eyeroll-inducing line is this: “Most importantly, have the culture and environment that will attract people.”

Images of printouts of the email reveal that at least a handful of recipients agreed. “Great message Sir! [sic]” reads one response. Another paints the email as “Words of wisdom.”

Clearly, the culture and environment are unhealthy.

The Consequences

Before I proceed, know this: I’m not going to name the author. It’s not remotely difficult to find the author’s name if you feel the need.

However, I will name the franchisee that finally fired him. American Franchise Capital reportedly owns more than 120 Applebee’s and Taco Bell locations in nine states.

So, to be clear, this executive didn’t work for Applebee’s directly. In fact, Applebee’s has disavowed the former executive and the email.

In the interest of clarity, it’s possible the author worked for Apple Central LLC, owned by American Franchise Capital.

As far as fallout, it was swift. According to reports, consequences were realized immediately. A Kansas franchise manager was shown the emails, printed them out for staff to discover, and comped the meals of everyone at the location. Then, he quit and the staff walked out.

Per reporting, four other Applebee’s managers quit, as did several employees. The location remained closed for at least the following day.

If reports are accurate, Applebee’s lost five managers, nearly a dozen employees, and sales from a location for at least two days. That’s just the localized fallout.

Applebee’s, of course, is distancing the company from the former executive. However, that’s not going to stanch the reputational bleeding and turnover.

As we know, a significant percentage of consumers want to know their dollars and support are going to companies that align with their values. The same is true of employees; they want to work for companies with values they can get behind.

A Final Thought

This now-infamous email was sent March 9. Just two weeks later, it was circulated and went viral. The author, gleeful about being able to hire employees “at a lower wage,” was fired before the end of March.

I’ve seen several takes on this situation, and I’ve read some accompanying leadership advice. One in particular caught my attention.

Unfortunately, it’s not because I thought it was great advice: Be cautious about what you send via blast emails.

I’m not saying one shouldn’t be careful about what they send out in emails—that’s good advice. However, that’s not the lesson I’ve learned from this situation.

Personally, I see this as a lesson in emotional intelligence, relationship intelligence, brand culture, and work environment.

At least two companies, one with annual sales in the billions of dollars, another in the hundreds of millions, have had their reputations tarnished. The fault may not lie with Applebee’s but they’ll be dealing with the consequences regardless.

If an operator is going to learn anything about being cautious, it’s this: Be cautious when hiring those in leadership positions. Be cautious about those with whom you enter into partnerships. And be careful about how you view those who work for you.

If you aren’t seeing those who choose to work for you as people worthy of your respect, as human beings, your brand’s culture is poisoned.

Image: Daria Nepriakhina on Unsplash

Help sign outside business
by David Klemt David Klemt No Comments

You’re Competing Against Chains for Labor

You’re Competing Against Chains for Labor

by David Klemt

Help sign outside business

Independent operators and local chains aren’t just competing with one another for staff, they’re up against global brands.

Unfortunately, that means competing against massive corporations that can offer higher wages and all manner of benefits.

However, smaller operations can still take steps to lure workers and fill open positions.

The Threat

In response to the labor shortage, many national and global chains are increasing hourly wages.

For example, Chipotle boosted wages for hourly workers to $15 per hour a few months back. Along with this boost in wages came a hike in menu prices: four percent across the board.

Earlier this year, McDonald’s also announced they would boost hourly pay. Hourly workers saw a boost of about ten percent. Of course, this chain also found itself dealing with increased supply costs. To offset a rise in costs of at least four percent, McDonald’s also boosted menu prices.

The latest to enter the labor fray is Starbucks. And like other chains, the corporation addressed the issue of hourly wages publicly.

Indeed, Starbucks’ announcement shares several details. First, staff who have worked for the company for a minimum of five years could see a pay raise of ten percent. Those who have been with the company for at least two years (but less than ten) could get a raise of five percent.

However, it doesn’t end there. Starbucks workers in the United States can take advantage of $200 referral bonuses. On average, Starbucks says hourly wages will range from $15 to $23 per hour, with an average of $17 per hour. The company expects these wage changes to be in place by Summer 2022.

Solutions

Of course, one doesn’t have to need revenue in the tens of millions or billions of dollars to compete for staff.

We’ve addressed this topic several times on the KRG Hospitality site. In particular, we’ve brought up increasing menu prices to support wage hikes. Specifically, we recommend borrowing from Chipotle and McDonald’s: Be transparent and explain why menu prices are going up.

Additionally, Bar Hacks guests like Chef Brian Duffy and Lynnette Marrero have spoken about this topic.

As Chef Duffy says during his second appearance, treating staff better is a big step toward reducing turnover. Word spreads among hospitality workers, and improved employer-employee relations is an excellent recruitment tool.

Another effective benefit? Flexible and improved scheduling which, of course, can be implemented easily via scheduling apps.

Mentorship is a powerful recruiting and retention tool. Both Chef Duffy and Marrero believe in the power of this benefit. They have decades of experience to pass on to staff that can help their careers.

Marrero also suggests implementing labor structures that corporations don’t offer. For instance, she suggests new operators are well positioned to offer earned equity, profit sharing, and co-op ownership structures.

Existing operators can also leverage Marrero’s ideas. However, they’ll need agreement from their investors if they have any.

Now that you know where labor threats are coming from, you can strategize and fight back. You may not have billions of dollars in the bank, but you’re nimble and can implement changes much more quickly. Listen to your staff and be open to making meaningful but reasonable concessions.

Image: Fernando Venzano on Unsplash

Chef's knife and honing rod crossed on cutting board
by David Klemt David Klemt No Comments

Incentive Economy: What are You Offering?

The Incentive Economy: What are You Offering?

by David Klemt

Chef's knife and honing rod crossed on cutting board

You know about the gig economy but are you familiar with the incentive economy?

It’s quite simple, and there are myriad ways for operators to engage with it. In fact, you likely already participate in the incentive economy in some way.

To put it succinctly, the incentive economy is all about the perks of a job beyond a paycheck.

The Old Ways are Out

On episode 53 of our Bar Hacks podcast, Chef Brian Duffy addresses the need for changes in our industry directly.

First, he tackles the lack of transparency in leadership by some operators. As Chef Duffy says, “That’s an old school way of doing it. That was an old school way, that was the Eighties.”

According to the chef, and we wholeheartedly agree, we now find ourselves in a “different phase” in the industry.

Then, Chef Duffy takes on how leadership in the industry treats staff.

One effective recruiting and hiring incentive Chef Duffy offers on the podcast deals with scheduling. None of his cooks close both nights of a weekend. He also posts schedules two weeks in advance so there are, A) no surprises, and B) if staff need to swap or drop, they have time to do so without impacting the business.

This simple scheduling incentive is attractive to new hires and existing staff. Why? Because working unpredictable, erratic hours is stressful.

“That ruins your life,” explains Chef Duffy.

If operators want to attract new hires, keep their team together, and reduce turnover, listening to staff about scheduling is crucial.

Things Need to Change

Chef Duffy shares a story on the podcast about his daughter and her experience working at a restaurant operated by a hospitality group.

No, he doesn’t name the group or the concept. The who isn’t the point here, it’s the what.

That what is how leadership bungled not only a scheduling issue but also how they botched Chef Duffy’s daughter’s two-week notice, her final shifts, and her final pay.

For more context, his daughter wasn’t a new hire who bailed after perceiving she had been treated poorly. She had worked at that restaurant for a year, there were ongoing issues, and she finally left.

As we all know, we’re down about a million jobs in this industry. That loss isn’t simply because of the pandemic. Our industry is undergoing a seismic cultural shift and we’re losing people who won’t return to hospitality.

Things need to change if we’re going to reverse this trend and strengthen the industry. KRG Hospitality president Doug Radkey addresses the change we need in his latest book, Hacking the New Normal. Chef Duffy addresses some of the necessary changes on our podcast as well.

“We can complain as much as we want, but we created it,” Chef Duffy says. “We as owners and operators and managers, we created what’s happening right now.”

Get Creative

The only limits to incentivizing your staff are your imagination, staying consistent with policies and procedures, being respectful of your staff and guests, and the law. Remain in those confines and get creative.

An incentive doesn’t need to be a grand gesture or prize. In many instances, something that makes a shift more fun and breaks up the monotony is enough to energize the staff.

“I want my staff, I want my front-of-house staff, to know what my sales goal is for the day,” says Chef Duffy. “And then I want to run a contest with that.”

One of the chef’s favorite contests is simple and highly motivating: Follow the Twenty.

Chef Duffy puts a twenty-dollar bill into play against a particular item or menu category. For example, either a specific dessert or any dessert.

Whenever a team member sells a dessert, they get the $20 that’s in play. If a different person sells another dessert, they get the twenty. Follow the Twenty incentivizes the first person to sell more of an item to hang onto the money, and the game motivates the rest of the staff to outperform their coworker to get the prize.

The last member of staff to sell a dessert that shift or day keeps the money.

Offering another creative incentive he’s seen, Chef Duffy shares that there’s a restaurant out there offering a free tattoo to kitchen staff that stays for at least 30 days. Will some staff leave after they get their tattoo? Possibly. Hiring wisely, implementing training policies and procedures, treating staff with respect, making scheduling easier and more flexible, ensuring clear communication is embedded in the fabric of your brand’s culture, and offering further incentives can prevent that turnover.

Offer Ongoing Education

“We live in an incentive world now,” says Chef Duffy. Explaining that he doesn’t operate large kitchens, large bars, or employ large teams, he admits he can only do so much in terms of incentives.

However, his approach to incentivizing staff to stay starts with this example of true leadership: “The one thing I can do is treat my employees well.”

With decades of experience in the industry, Chef Duffy’s knowledge is something he can offer his staff. A big believer in education, passing down information that can enrich team members’ careers and lives is an incredibly valuable incentive.

During a recent training session with a very young kitchen staff, the chef started with the very basics of education.

“Hey, guys, here’s a knife. This is a knife,” he said to the kitchen staff. “There’s seven different parts to a knife. Here’s the most powerful part, here’s the most precise part. This is how you hold it, this is what we do…”

Just reading that, it may seem like Chef Duffy was being condescending. That’s not the case. He wants to share as much of what he’s learned over the years to pass on his collected knowledge.

“I want people to feel as if they’re gaining something from me and the knowledge that I have rather than, ‘Go cut those onions and I’m gonna yell at you if you do it the wrong way,'” says Chef Duff.

Make Meaningful Change Today

Making impactful change can feel overwhelming. Let’s face it, it’s easier to just stay the course. But these days, staying the course can cost you your staff, then your guests, and then your business.

One way to start making change is to look inward at yourself, and at your leadership team.

Are your staff gaining anything from you beyond a job and paycheck? Is your leadership team mentoring and incentivizing staff? Are you, your leaders, and your team happy at work?

If the answer to those questions is “no,” do what’s reasonable to improve your brand’s work culture.

As Chef Duffy says, “The whole dynamic of it has to change and we have to take better care of our employees.”

Image: Steve Raubenstine from Pixabay

Restaurant tables with place settings and menus
by David Klemt David Klemt No Comments

How and Why to Edit Your Menu

How and Why to Edit Your Menu

by Nathen Dube

Restaurant tables with place settings and menus

When thinking about opening a restaurant an important question to answer is, “What am I going to serve?”

There is one answer that tempts too many restauranteurs: “I’ll offer something for everyone!” The thinking is that doing so translates into everyone coming to their restaurant or bar.

The truth is, everyone isn’t coming. Sadly, many of these places don’t survive long, and 60 percent of restaurants don’t make it past their first year. Having an overwhelming menu is one of the key contributors to that statistic.

Massive menus are stressful for guests, making it difficult for them to decide. At a certain point, too many items create what’s called the Paradox of Choice. Overwhelm guests with possibilities and they’ll just choose something simple and familiar rather than exploring the entire menu, impacting the guest experience negatively.

Too many options also lend to the perception of low-quality food. How can a kitchen staff possibly excel at so many dishes? How can the ingredients be fresh and not frozen? What is the quality of dishes if people only order them once or twice a week?

Those reasons and more are why it’s important to have a laser-focused menu from the onset.

Inventory Challenges

If a large portion of your menu isn’t moving out of the kitchen to hungry diners, guess where that food is going. A large menu creates tracking issues, a high percentage of ingredient spoilage, and opens the door to theft from staff. The best establishments do just a handful of things well, with a select few complementary items to round out the menu.

Having a kitchen full of product for dishes on the menu that might get ordered can quickly turn into dead stock. If there are boxes sitting in dry storage shelves collecting dust, it’s a good time to consider removing any dishes that require them from the menu.

Setting a scheduled review of inventory and menu sales breakdowns can be a great way to avoid dead stock eating into your food budget for any significant length of time. Not all dishes end up being winners—ignoring the losers will limit profitability significantly. A massive, unchecked menu just compounds the issue.

Another profit-eater is food waste. Ordering usually means receiving product in bulk and breaking it down. It’s near impossible, as an example, to order just two or four of something like cabbage for a dish that doesn’t move. The cabbage sits, and half a case gets thrown out for every dish sold. Having a focused menu will help quickly highlight items that need to be removed from a menu.

Tracking Issues

Then there’s the issue of theft. Unfortunately, theft happens. Having some deterrents in place can help mitigate opportunities for those who seek to steal in this industry.

If there aren’t robust tracking systems in place along with an honest team who uses them correctly, things can (and will) disappear. A much harder time will be had spotting losses and what’s causing them when it takes a long time to track inventory. Again, this leads to compounded profit losses on dead stock and product spoilage. We haven’t even begun to prepare any food yet and already our food cost is trending in a bad direction.

A restaurant budget needs to be established before opening and needs to be adhered to strictly. That can quickly go out the window when it comes to ordering food to stock your kitchen. A massive addition to your operating costs can set you back a few months, particularly when you’re not seeing a return on purchases for the reasons stated above.

With the current climate of the restaurant industry and a post-Covid dining scene, avoiding these pitfalls is crucial to success. Rising food and labour costs, recovering from months of closures, and a shortened patio season (if you’re lucky enough to have one), have made strict cost controls more important than ever going forward.

Keep in mind, if your seating capacity matches or is less than the amount of menu items you’re serving, that equates to minimal product turnover, which translates to minimal profits. That number is multiplied by product loss of any kind.

Training & Retention

When an owner can’t match their concept to food and drink offerings, it leads to poorly trained staff and frustration during service. There will be plenty of room for error (more loss!) and, unsurprisingly, low staff retention. That all keeps this never-ending cycle in motion.

If you can’t clarify your vision, how can you expect staff to showcase it to guests with any confidence?

At every “big menu” restaurant I’ve worked in, the owners were always in the building or kitchen. This wasn’t because they were driven to be hands on. It was because they couldn’t train staff properly to run the whole menu reliably, things would go “missing,” or staff simply couldn’t accomplish daily tasks consistently.

Interestingly, the opposite was true at establishments with small, focused menus. Staff were confident and knowledgeable, problems with food and service didn’t spiral out of control, and food moved out the door to some degree of consistency. The owners were freed up to run their business rather than micromanage everyone.

With all the issues currently hampering the food industry, the last thing you want right now is another level of frustration among your staff. Retention rates are at an all-time low. The struggle to fill job openings industry-wide are at all-time high, as are reported cases of staff walking out mid-service. A properly structured menu can keep your business on track and make the lives of your employees much more simplified.

Editing Your Menu

Focusing on cohesion between menu and concept doesn’t require offering all the dishes under the sun. Avoiding the “something for everyone” approach leads to improved guest experiences and employee confidence. Streamlining your menu simplifies inventory and sales tracking; differentiates high-profitability items from the rest; and makes identifying items that don’t sell easier.

Paring down your menu into a tight, focused version allows you to quickly retool it every few months. Just try tracking and editing a large four-page menu as frequently. It’s costly to reprint and you have better things to do with your time.

Keeping things tight also creates space to take advantage of seasonal offerings, local specialties, or customer favorites. You can also offer specials throughout the week that can drive traffic and give your talented cooks a chance to show off!

I would suggest looking over your sales data to identify your highest-selling dishes and the slow movers every one to two months. If you have a seasonal menu, this can be done at the midpoint of a seasonal change.

Think about what items are being purchased and only used in one dish. They can start to pile up in your stockroom and lead to dead stock. Consider the versatility of ingredients when planning a menu change—cross-utilize everything you can.

Fluctuating Costs

Another important point that can get forgotten is that the prices of food items fluctuate constantly. Maintaining a large menu, therefore, can become a nightmare cost scenario quickly. Limes, beef, avocados—even celery—are experiencing tremendous jumps in price. A small menu allows for damage control when prices jump, giving your room to make quick, lower-cost moves.

Of course, the alternative is to have your staff rattle off everything the kitchen is out of to your guests. Not cool.

The underlying theme here is to avoid tying up your finances in product that is sitting, turning to waste instead of profit, or not moving at all. Your mission is to have product moving out of the kitchen constantly and consistently.

It might seem like a wise decision to offer a large menu that’s all over the place. Maybe you’re making that choice for fear of alienating guests or reducing your traffic. However, the points made in this article should illustrate why a cohesive link between concept and menu is crucial, and how a smaller, more focused menu can deliver more for you than a large, out-of-touch menu.

Image: Karolina Grabowska from Pixabay

Server walking through restaurant carrying tray
by David Klemt David Klemt No Comments

4 Tips for Recruiting and Retention

4 Tips for Recruiting and Retention

by David Klemt

Server walking through restaurant carrying tray

Operators seeking to survive and thrive despite the Great Resignation can give themselves an edge with these four concepts.

Attract New Talent

KRG Hospitality president Doug Radkey doesn’t find the struggle to fill restaurant, bar and hotel positions all that shocking.

Why? Because too many operators post generic, cookie-cutter job listings. Doing what everyone else is doing has never been advisable for those looking to stand out.

Instead, Doug suggests a more unique approach to job ads, an approach that helps operators stand above the competition.

Step one is avoiding banal listing language:

  • “Are you friendly, energetic, and highly motivated?”
  • “Are you an experienced and enthusiastic [insert position]?”
  • “The ideal candidate must work well in a fast-paced environment and be a team player.”
  • List of basic job tasks.

Instead, Doug suggests the following:

  • Hire for values rather than experience. Training addresses systems and standards, not personality and drive.
  • Operators should be transparent about their core values, company culture, and potential for growth.
  • Showcase the approach to inclusivity, diversity, acceptance, and flexibility. That is, if that’s authentic. If not, that’s a flashing, neon red flag that requires addressing.
  • Offer a living wage, benefits, potential for personal growth, and education.
  • Produce a video of team members sharing why they work at the company. This must be genuine and honest.

Demand creates competition. Innovation beats the competition.

Actually Onboard New Hires

So, an operator adjusts their approach to filling open positions. They recruit and hire promising employees.

Sadly, it’s common for new hires in hospitality and foodservice to leave in just a few months. Rather than accept this as the norm, operators have a tool at their disposal for improving employee retention: Onboarding.

Too many operators think the next step after hiring someone is providing a start date, showing them the front- and back-of-house, and hoping things will work out.

Well, hope isn’t a strategy.

The next step after hiring someone is onboarding and should include the following:

  • Complete all pertinent paperwork and setting up access to systems. If applicable, set up direct deposit.
  • Provide new hire with detailed employee handbook. If there isn’t one yet, that must be addressed.
  • Share the story of the business (history, area, etc.) and workplace culture.
  • Outline expectations: Policies, rules and responsibilities.
  • Explain benefits, such as health insurance and mentorship opportunities.
  • Provide training and assign shadowing.
  • Deliver feedback on trained tasks.

The above list obviously has room for more onboarding tasks. Operators should create a physical onboarding checklist. Also, they should require the person or people tasked with onboarding to complete and sign off the checklist (even if that person is the operator).

Nail recruiting, hiring and onboarding and word will get out. The result? Hiring gets easier and turnover decreases.

Focus on Workplace Culture

Doug addressed workplace culture and the labor shortage on Bar Hacks bonus episode number 16.

Simply put, operators need to take an honest look at their culture.

Is it inclusive and accepting? Transparent and nurturing? Do employees feel comfortable bringing up workplace issues? (More on that last one below.)

Hospitality is fast-paced and demanding—owners and managers shouldn’t add to the stress.

Why would anyone want to work in for someone who isn’t going to treat them and their coworkers with respect, mentor them and nurture their career, and value their input?

It’s every operator’s responsibility to be good stewards of hospitality professionals’ passion for this industry. We do them a disservice when we turn a blind eye to an unhealthy workplace culture that has taken hold, crushing their love of his business and driving them away.

Value Employee Feedback

Yes, guest feedback is valuable. However, so is feedback from employees.

It’s important for operators to remember not to focus solely on guests.

True, a business isn’t a business without customers. Equally true: It’s not a business without employees.

So, operators should foster a work environment in which employees feel comfortable sharing honest feedback. This is, of course, where culture comes into play.

If employees don’t feel safe sharing their opinions and suggestions, operators won’t truly know what it’s like to work for them. Without that feedback, employee turnover will skyrocket, recruiting and hiring will be an endless struggle, and the guest experience will suffer.

We all know what happens if guests pick up on an uncomfortable restaurant, bar or hotel environment: They don’t return.

Operators can’t expect their businesses to thrive (or just survive) if they focus solely on guests.

Putting these concepts to work can help operators succeed despite the Great Resignation of 2021.

Image: Shangyou Shi on Unsplash

Downtown Los Angeles, California
by David Klemt David Klemt No Comments

Mask Mandates, Recommendations Return

Mask Mandates, Recommendations Return

by David Klemt

Downtown Los Angeles, California

Pointing to vaccination hesitation, vaccination refusal, and rises in Covid-19 cases, some cities are mandating masks indoors.

Importantly, mandates and recommendations are coming down irrespective of vaccination status.

Of course, many people are unhappy about this news. Much of the backlash includes the claim that a return to masks proves vaccines don’t work.

However, others point to variants—in particular, Delta—spreading via the unvaccinated and unmasked.

Unfortunately, continuing divisiveness means hospitality and other frontline workers are again at risk for hostile confrontations.

Los Angeles County, California

If you’re an operator in Los Angeles County, masks indoors aren’t just a recommendation. An indoor mask mandate went into effect on Saturday, July 17.

Just a month prior, embattled Governor Gavin Newsom proudly announced California’s unrestricted reopening.

Now, the more cynical among us see Gov. Newsom’s June reopening as a bid to stave off recall efforts. However, recall ballots will go out to Californians next month.

Per reporting, California’s Covid-19 infection rate is close to tripling. Los Angeles County health officials say the indoor mask mandate comes out of an overabundance of caution.

On a different note, health officials expect the state’s vaccination rate to effectively combat a spike in infection rates. The current rate isn’t expected to match or surpass those of prior peaks in the state.

As far as mandate details, it’s quite simple: Masks are required for everyone indoors, regardless of their vaccination status.

According to reports, an additional ten California counties are recommending masks indoors. No word yet on if other counties—or the state as a whole—will announce mask mandates. Nor is there an end date for LA County’s current mandate.

Southern Nevada

While not a mandate, the Southern Nevada Health District is recommending people, regardless of vaccination status, wear masks indoors.

Unsurprisingly, Las Vegas is experiencing an influx of visitors. With vaccination rates on the decline and infection rates on the rise, health officials are concerned.

More than 2.9 million visitors flocked to Las Vegas in May. Clark County, Nevada, which includes Las Vegas, has a population of over two million.

Of course, it’s important to remember that, for now, wearing masks indoors is a recommendation. However, some resorts and casinos—Westgate and the Venetian among them—now require their employees to wear face masks.

So far, neither Las Vegas, Clark County or Nevada have implemented a mandate. Of course, that could change and a mandate may be in the wings.

Orange County, Florida

Much of the news of returning mask mandates and recommendations focuses on Los Angeles and Las Vegas.

In fact, some critics are attacking Nevada Governor Steve Sisolak, accusing him of blindly following Gov. Newsom.

Interestingly, though, is that a mayor in Florida is also recommending face masks.

Mayor Jerry Demings of Orange County recommends wearing masks indoors, vaccination status notwithstanding. The phrasing of the mayor’s announcement refers to the suggestion as an “official recommendation.” However, no mandate is in place currently.

Frontline Risks

Clearly, mask mandates and even recommendations are going to anger some of the population.

Unfortunately, hospitality workers (and those in other public-facing industries) are once again at risk of confrontations. Even without mandates, some businesses that choose to require masks experience hostility.

The last thing America needs is more divisiveness, anger, and potential for confrontations.

Millions of hospitality professionals have left the industry for good. One factor leading to those losses has been concern for safety due to people angry over mask and vaccine requirements.

Obviously, operators must do whatever’s in their power to ensure the safety of their team members and guests. Leadership must not only convey their support for their employees, they must stand behind that messaging with their actions.

In cities where masks mandates and recommendations return, operators need to focus on safety as much as employee retention. Indeed, the former aids the latter, which aids recruiting and hiring.

Image: Daniel Lee on Unsplash

Wait station to side of busy bar
by David Klemt David Klemt No Comments

Hospitality Labor Shortage not Improving

Hospitality Labor Shortage not Improving

by David Klemt

Wait station to side of busy bar

Surveys and data focusing on the restaurant and hotel employment situation paint a stark picture.

The sobering reality is that operators can’t simply point to the pandemic as the reason they’re failing to fill available positions.

Instead, we need to focus on the problems hospitality workers continue to face.

It’s not going to be easy. However, it can lead to positive change. That change can help the hospitality industry recover and thrive long into the future.

Culture is Crucial

Per several sources, millions of hospitality professionals are washing their hands of the industry.

Unfortunately, foodservice and lodging workers are citing several reasons for the exodus:

  • Lack of livable wages.
  • Inconsistent wages.
  • Stress levels not worth level of monetary compensation.
  • Lack of benefits.
  • Lack of mentoring and/or career progress.
  • Industry volatility, particularly devastating as a result of the pandemic.
  • Unhealthy lifestyle: Long shifts, late nights, and alcohol and drug abuse.
  • Cultures of harassment and discrimination.

Obviously, it’s easier to blame labor shortages on the workers. Well, being easier doesn’t make it true.

Industry and workplace culture matters. Employee turnover rates were high long before the pandemic ravaged the planet.

Rather than make excuses, operators need to look at their restaurant, bar or hotel’s culture.

Barking orders and feeling infallible isn’t leadership. Admitting failures and shortcomings—and learning from them and implementing positive changes—is how successful operators lead.

Generic Job Listings

Last week, KRG Hospitality president Doug Radkey asked a simple but poignant question on LinkedIn: Are your job listings just like everybody else’s?

He suggests knocking it off with the old standards:

  • “Are you friendly, energetic, and highly motivated?”
  • “Are you an experienced and enthusiastic [insert position]?”
  • “The ideal candidate must work well in a fast-paced environment and be a team player.”
  • List of basic job tasks.

What’s appealing about such basic, generic ads? Why would rock star talent be moved to work for operators who post these types of ads?

Instead, Doug suggests the following:

  • Hire for values, not experience. Training can address systems and standards, not personality and drive.
  • Operators should be transparent about their core values, company culture, and potential for growth.
  • Showcase the approach to inclusivity, diversity, acceptance, and flexibility. That is, if that’s authentic. If not, that’s a flashing, neon red flag that requires addressing.
  • Offer a living wage, benefits, potential for personal growth, and education.
  • Produce a video of team members sharing why they work at the company. This must be genuine and honest.

A unique approach to ads, hiring and onboarding can lead to an increase in employee retention.

Yes, it’s more comfortable to avoid looking internally for the roots of problems. It’s more comfortable to avoid blame. And it’s more comfortable to point fingers anywhere but at ourselves.

That’s not leadership. And it certainly won’t improve any operator’s situation, nor will it improve the hospitality industry and its opportunity to thrive.

Image: One Shot from Pexels

Help Wanted sign taped in window
by David Klemt David Klemt No Comments

The Reality of Hiring Right Now

The Reality of Hiring Right Now

by David Klemt

Help Wanted sign taped in window

Operators can add recruitment, hiring and retention among to the growing list of challenges they’re facing due to the pandemic.

Labor struggles aren’t exactly a shock to the hospitality industry.

However, the speed with which the many stark predictions of labor shortages and challenges across North America has caught some by surprise.

Outlook: Brutal

Fast-casual to fine dining. Independent to chain. Regional hospitality group to multi-national powerhouse.

No operator, no concept, no market appears immune to today’s recruitment, hiring or retention challenges.

It’s not the only reason but the federal boost to unemployment is exacerbating the situation. Restaurant operators across America have been reporting that their workers are making more on unemployment than they would make returning to their jobs.

It’s likely the hiring situation won’t improve until the end of August or start of September; the federal boost to unemployment is set to expire on September 6.

Of course, that points to another glaring industry issue: livable wages and benefits.

The pandemic didn’t cause the labor shortage and hiring problem on its own, but it certainly hasn’t helped anything. Some operators throughout North America say they’ve been hunting for workers for all positions for months.

Incentives & Bonuses

Operators are fighting for workers. To many reading this, that’s not a surprise. However, many operators report fighting to even get candidates to show up for interviews.

Famously, one McDonald’s franchisee in Tampa, Florida, is using a $50 incentive for interviews. If a candidate manages to follow through and show up for their interview, they walk away with $50.

During a recent conversation with Chef Brian Duffy (which we’ll be releasing as episode 33 of the Bar Hacks podcast), interview incentives came up. While it’s no $50 bonus just for showing, Chef Duffy has offered candidates free lunch for appearing for their interviews. And yes, he still struggles.

Interestingly, appearance incentives don’t appear to be working. What does appear to be working? Increasing starting wages, referral programs, apply-via-text functionality, and all manner of signing and performance-based bonuses.

The bonuses run the gamut. Show up for all your shifts for three or four months and earn a $500 bonus. Paying down student loans. Fronting the bill for culinary school. One restaurant in Alabama is offering an SUV to their top-performing worker later this year.

In addition to bonuses, wages are seeing a boost. Jobs that would normally start at $12 to $15 per hour are now offering starting wages of $16 to $18 dollars per hour.

No matter how one slices it, the situation leads to cost hikes across the board for operators. When costs increase for operators, prices increase for consumers. Margins shrink, the old cycle continues, the industry struggles.

Reality Check

Now, it’s simple to blame the pandemic for the current situation. To say it’s not a major factor would be incredibly disingenuous.

That said, the struggle to find and keep workers is also a culmination of decades-long, industry-wide problems.

Lack of diversity, inclusion, equality, living wages, opportunities, and transparency; failure to address social issues; inexcusable, threatening, and outright illegal behavior… All of this and much more contributes to the industry’s hiring and retention challenges.

That’s a criminally shallow summary of the situation—I’m well aware. Doug Radkey, president of KRG Hospitality, addresses the need to review and reset the industry in his book Hacking the New Normal. He takes a deep dive into rejecting the status quo in this industry.

My point is that operators can’t blame their woes solely on the pandemic, absolving themselves of responsibility.

Operators must take a hard look at themselves and their operations, and ask difficult questions. Doing so can be uncomfortable. But neither positive change nor growth come from resting in the comfort zone.

Image: Tim Mossholder on Unsplash 

Momofuku Las Vegas interior
by David Klemt David Klemt No Comments

Is Gen Z the Workforce Solution?

Is Gen Z the Workforce Solution?

by David Klemt

Momofuku Las Vegas interior

Is Gen Z the solution to the industry’s workforce problem?

That’s one big question posed during the 2021 Restaurants Canada Show.

A panel consisting of Philip Mondor, president and CEO of Tourism HR Canada; Adam Morrison, president and CEO of Ontario Tourism Education Corporation; Jody Palubiski, CEO of the Charcoal Group; and Lori Wilson, manager of people and change at BDO Consulting have answers.

The Problem

Canada’s hospitality industry is facing a labour shortage. In fact, that has been the case since before the pandemic.

According to several sources, the hospitality industry is Canada’s fourth-largest private-sector employer. And yet, there’s a labour crisis.

This is partially due to Baby Boomers retiring. As they leave the workforce, there’s a disparity in the number of people in Canada working or seeking work.

According to a January 2020 report from The Globe and Mail, there were at least 60,000 empty positions in foodservice before Covid-19 lockdowns.

Mondor concurs with that article’s sentiment. He expects “a very large shortfall” over the next year that could force the industry into a four-year recovery.

The Solution?

Neither Wilson, Mondor, Morrison or Palubiski see Gen Z as the solution to Canada’s labour shortage problem.

Now, that isn’t to suggest that operators and managers should dismiss Gen Z. Rather, Mondor suggests including this generation as they enter the workforce without viewing them as the only solution.

“Relying on youth alone is not going to meet the demand,” says Mondor.

Instead, Mondor posits that new Canadians—immigrants—will play a significant role in the hospitality industry moving forward. In fact, Mondor expects immigrants to make up 50 percent of Canada’s workforce.

Recruitment and Training

Palubiski says that what separates Gen Z from other generations is how connected and informed they are. Screen time provides Gen Zers plenty of information about social, regional and global issues.

To recruit Gen Z, Palubiski suggests brands and businesses be transparent about their stances on issues such as sustainability and the climate.

However, that approach to recruiting isn’t just effective when it comes to Gen Z—employees and guests alike want to know where a brand stands.

Morrison says that it’s important to be cognizant of the employment market. Knowing what people are being paid, even if an operator can’t match or beat that rate, is helpful. It’s also part of an effective strategy, says Morrison, to understand the ambitions of candidates to see if available roles will match their motivations.

Retention

Once an operator has built a team, the next step—training—is key to staff retention. And not just training for the specifics of one particular role in a restaurant or bar.

Rather, the panel agrees that this industry does a poor job of documenting transferrable skills. For example, operators can help develop employees’ leadership and conflict resolution skills (among many others) that they can take into other careers. Operators must explain that benefit to employees and help nurture it.

Additionally, the panel suggests looking at training and retention in the following ways to adapt and make businesses in this industry stronger:

  • Invest in people, don’t just hire them. That means training and developing their skills and careers.
  • View hiring and training as investments, not costs.
  • Everyone makes mistakes. True leaders admit their mistakes, fix them, and move forward.
  • Ask this question: Do your employees feel a greater affinity for this industry and your business after they’ve started working with you?

In parting, operators and managers should consider this: Palubiski had to furlough 950 employees due to the pandemic. A staggering 95 percent returned when they were called back. That is effective hiring, training, development and retention to emulate.

Image: Jason Leung on Unsplash

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