Fast food | KRG Hospitality

2024 KRG Hospitality Start-up Costs Guide

December 21, 2023by David Klemt David Klemt No Comments

KRG Releases 2024 Start-Up Guide

KRG Hospitality Releases 2024 Restaurant Start-Up Cost Guide

by David Klemt

KRG HOSPITALITY RELEASES SIXTH ANNUAL RESTAURANT START-UP COST GUIDE

Toronto-based hospitality industry consulting firm with offices in key markets throughout Canada and the United States of America unveils their latest restaurant cost guide and interactive hospitality calculator.

December 21, 2024 (TORONTO)—Today, KRG Hospitality releases their 2024 Bar & Restaurant Start-up Costs Guide, which is free to download. The Toronto-based consulting firm specializes in startup restaurant and bar projects along with boutique hotels, experiential concepts, and entertainment venues. KRG Hospitality’s American headquarters is located in Las Vegas, Nevada.

For the past six years KRG has researched, reviewed, and published the annual start-up cost guide, one of the industry’s leading resources dedicated to restaurant project costing.

And each year this informative and transparent guide is used as a trusted budgeting tool by developers, lenders, contractors, consultants, and aspiring restaurateurs. The guide is founded upon KRG Hospitality’s proprietary database of previous project costs, which includes project data from restaurants, bars, and cafes developed over the past 24 months.

Further, this annual KRG Hospitality guide also includes the interactive KRG Hospitality Calculator, which is updated for 2024.

The costs to start a restaurant have been on a steady rise over the past six years. Major drivers are increases in inflation, interest, labor, construction, and equipment. Of course, there are also the unique materials required to deliver a scalable, sustainable, memorable, profitable, and consistent on-premise, off-premise, or hybrid-style concept.

Drawing upon this comprehensive guide, an industry-leading expert has analyzed the information and provided a succinct and user-friendly summary of the findings for each major start-up category. This isn’t simply a couple of pages identifying a few costs. Rather, the sixth annual guide is a deep dive that provides real insight into what to expect in 2024.

The guide is available now as a free download via this link.

About KRG Hospitality

KRG Hospitality is a storied and respected agency with proven success over the past decade, delivering exceptional and award-winning concepts throughout a variety of markets found within Canada, the United States, and abroad since 2009. Specializing in startups, KRG is known for originality and innovation, rejecting cookie-cutter approaches to client projects. The agency provides clients with a clear framework tailored to their specific projects, helping to realize their vision for a scalable, sustainable, profitable, memorable, and consistent business. Learn more at KRGHospitality.com. Connect with KRG Hospitality and the Bar Hacks podcast on social: KRG Twitter, Bar Hacks Twitter, KRG Media Twitter, KRG LinkedIn.

Disclaimer

While using this guide helps develop a rough preliminary financial and strategic milestone plan, it is strongly recommended that you seek professional expert advice to provide you with a more precise, project specific estimate as each concept and market will be slightly different. KRG Hospitality Inc. is not responsible for any project that is not currently under contract within the company.

Image: KRG Hospitality

December 19, 2023by David Klemt David Klemt No Comments

Grubhub Reveals 2023 Order Trends

Grubhub Reveals 2023 Order Trends

by David Klemt

Just under the wire Grubhub releases their annual end-of-year report, revealing their customers’ top ordering trends of 2023.

Uber Eats and DoorDash unveiled their reports at the end of October and start of November, respectively.

To revisit 2022 for a moment, the top food item ordered via Grubhub was the burrito. So, the unofficial theme of last year’s annual report was warmth and comfort wrapped in layers.

I’m providing that context because this year’s report also comes with a theme. This year, it’s “doing it for the vibes.” For Grubhub, this means that users of the service broke out of their comfort zones to try new F&B items.

Providing an example, one of the standout trends for 2023 is heat. As in, Grubhub users added spice to quite a lot of orders, as you’ll see below.

Click here to review Grubhub’s top 2022 food orders, and here for their 2022 beverage orders. To review this year’s Grubhub report in its entirety, click here.

Now, let’s take a look at a number of this year’s ordering trends.

Soft Drinks & Coffee

Usually, I start with food items when reviewing these reports. Well, once you become predictable, you become beatable. So, I’m going to shake things up and begin with beverages.

According to Grubhub, a TikTok trend—#dietcokebreak—is responsible for the growth of Diet Coke on the platform. In fact, the third-party delivery service says that in-office orders of Diet Coke grew by 17 percent. No surprise, then, that the soda grabbed the top spot in 2023.

Top 5 Sodas

Diet Coke
Coke
Sprite
Dr. Pepper
Ginger Ale

Next, coffee orders. Per this year’s Grubhub report, people weren’t shy about ordering coffee outside of the breakfast and lunch dayparts.

According to their data, more than 10 million coffee orders were placed after 5:00 PM.

Top 5 Coffee Orders

Iced Coffee
Caramel Frappe
Mocha Frappe
Cappuccino
Hot Coffee

Food & Flavors

Here’s an interesting revelation: more than 600,000 Grubhub users chose to order salads with a side of French fries.

In fact, the French fry is the top ordered side in 2023 on the platform. So, Grubhub ranked fries by style.

Top 5 French Fry Styles

Classic cut
Waffle fries
Cheese fries
Sweet potato fries
Curly fries

Hey, let’s reignite the pineapple on pizza debate. According to Grubhub’s year-end report, pineapple as a pizza topping grew by 33 percent in comparison to 2022.

However, Hawaiian pizza has some more growth to do if it wants to take the number one spot.

Top 5 Pizza Styles

Cheese Pizza
Margherita Pizza
Pepperoni Pizza
Buffalo Chicken Pizza
Hawaiian Pizza

Finally, top flavors. In short, heat is a hit.

Grubhub users added spice to a staggering 53 million orders this year. For further context, sriracha was added to more than 91,000 orders.

And when it comes to chicken wings, Buffalo was the dominant style. I find it interesting, though, that no style of wing made the top five for this category.

Top 5 Spicy Items

Spicy potato soft tacos
Spicy chicken sandwich
Spicy tuna roll
Hot and sour soup
Drunken noodles

Bringing this report to a close, the item with the most growth. Pickles grew by 89 percent in 2023, accounting for 6.9 million orders.

So, I guess make sure your pickles, French fries, cheese pizzas, and salads are on point as we head into the New Year.

Image: Nathan Dumlao on Unsplash

Gloved chef's hand pressing down on cheeseburger bun

December 15, 2023by David Klemt David Klemt No Comments

Transactional vs. Experiential Service

Is Your Business Transactional or Experiential?

by David Klemt

When you consider your restaurant or bar honestly, is the service you and your team are providing to guests transactional or experiential?

It’s an important distinction, and it applies to every restaurant and bar category. Whether operating a QSR or FSR, today’s guests want more for more their money.

Further, they expect more just for choosing to leave their homes. A recent report from CWB Franchise Finance, in partnership with Circana and fsStrategy, indicates strongly that experiential concepts are on the path to weathering economic challenges and achieving long-term success.

Now, to be clear, of course all businesses are transactional. In that regard, restaurants and bars are clearly no different from other businesses.

Guests come in, they place orders, and they pay for the goods they receive. Transactional, right?

However, restaurants and bars are in a position to deliver memorable experiences.

Sure, for some people those memories are fleeting. There are those who are always seeking the next thing. But operators who become known for providing more than just menu items will remain on the radar of even the most fickle guest.

When a restaurant or bar delivers goods plus phenomenal services, when the guest experience involves more than just ordering and paying, it becomes experiential.

Think back to the times this year you’ve popped into a QSR or fast-casual restaurant. Can you remember much about the experience? If yes, fantastic—that operator understands the power of an experiential business model. Should the answer be no, that operator sees value only in being transactional.

Which are you happy to return to in the future?

Experience is King

I’m going to assume you’re much happier to return to an experiential concept than a strictly transactional one. And if that’s a correct assumption, you should apply that to your own restaurant or bar.

According to studies Circana has conducted over the past couple of years, Canadian consumers are reacting to economic uncertainty and financial instability as one would expect: cutting back on discretionary spending.

Generally speaking, that means reducing their spending at restaurants and bars. However, there’s a bit of good news tucked into those Circana studies.

Per Circana, half of Canadians plan to increase spending on something in particular: experiences. Further, 91 percent of Canadians say they’ve spent money at experiential restaurants recently.

“A restaurant visit isn’t necessarily just about nourishment, but instead is a platform for socializing, entertainment and exploration,” reads the joint CWB, Circana, and fsStrategy report.

Importantly, an operator need not go to extremes to deliver an experience. Something as simple as creating an LTO around craveable drinks can pay huge dividends. For proof of that, simply look at McDonald’s in the US and the hype that surrounded the berry-flavored Grimace Shake.

Operators throughout Canada and around the globe need to understand how impactful being experiential can be.

Takeaway

It’s true that operators are competing against one another. However, it goes deeper than that now.

Operators are also battling convenience and comfort. Between working from home, pandemic-induced isolation, and technology, people are used to staying in and ordering whatever they want.

So, not only are operators faced with the challenge of standing out from one another, they’re up against the phones in people’s pockets.

For many people, choosing to leave home to dine and drink in person is a big deal. To some, restaurants and bars are about celebrating special occasions or socializing. For others, the motivation is as simple as the need to finally get out of their home.

It’s imperative, therefore, for operators to be more than transactional. Being experiential, whether the experience is small but impactful or over the top and unforgettable, is the way forward.

Restaurants and bars that deliver a memorable experience are better positioned to remain top of mind for a guest’s future in-person visits, delivery and takeout orders, and large-party special events. Don’t think of being experiential just in terms of nailing each visit, think of elevating the guest experience to capture future business.

A focus on the experiential builds loyalty from existing guests, and it encourages those guests to become ambassadors of your brand. Ask what you can do with your menu, team, and space today to become more experiential than transactional.

Image: Thiago Miranda on Pexels

Kentucky Peerless Distilling Co. whiskey barrels

December 13, 2023by David Klemt David Klemt No Comments

Will Whiskey Bring Us Together?

Will Whiskey Bring Us Together?

by David Klemt

A letter penned by Senator Catherine Cortez Masto and signed by a bipartisan group of senators shows that we’re capable of coming together.

There’s seemingly no escape from messages that America is divided like never before. And, when inundated with that message, it’s easy to believe. Sadder, when we believe that message it’s too easy to plunge into despair.

However, 17 senators, Democrats and Republicans, are coming together in support of American whiskey.

These senators are seeking the permanent removal of tariffs on American spirits and wine by the European Union. That 25 percent tariff, first imposed in June of 2018, is in retaliation over a dispute over aluminum and steel. This was a response to the US imposing a 25 percent tariff on steel imports, and ten percent on aluminum.

Unfortunately, after a suspension in 2021, the tariffs on American whiskey will jump to 50 percent on January 1, 2024. So, Sen. Cortez Masto and a bipartisan group of senators are urging the Biden administration to work with the EU to permanently suspend or otherwise eliminate tariffs on American whiskey.

If Ambassador Katherine Tai and the White House are unable to broker a deal with the EU, the tariffs would be catastrophic for many American whiskey distillers. In turn, their whiskeys would become more costly for restaurant, bar, nightlife, and hotel operators. And, of course, for consumers.

Here’s to hope. Hope that a deal can be reached, and hope that somehow, some way, our elected officials will engage in more bipartisan efforts moving forward.

Bipartisan Support in the Senate

Below, the text of the letter that Sen. Cortez Masto (D-NV) sent to Ambassador Tai and the White House.

The following senators signed this letter in a show of bipartisan support:

Marsha Blackburn (R-TN)
Katie Boyd Britt (R-AL)
Mike Braun (R-IN)
Maria Cantwell (D-WA)
John Cornyn (R-TX)
Mike Crapo (R-ID)
Bill Hagerty (R-TN)
Tim Kaine (D-VA)
Mitch McConnell (R-KY)
Joe Manchin (D-WV)
Roger Marshall (R-KS)
Rand Paul (R-KY)
Gary Peters (D-MI)
Jacky Rosen (D-NV)
Mark Warner (D-VA)
Todd Young (R-IN)

If only restaurants and bars, venues where American whiskey is bought and sold, had received this type of support when seeking RRF replenishment.

The Letter

“Dear Ambassador Tai,

“We write today to request an expedited agreement with the European Union (EU) to secure the permanent removal of retaliatory tariffs on spirits and wines. While we applaud the Administration’s efforts to suspend retaliatory tariffs for five-years on spirits and wines in the WTO Large Civil Aircraft Dispute and the two-year pause on American Whiskeys in the steel and aluminum dispute, we are deeply concerned that a lack of a permanent fix risks the re-imposition of tariffs. As of now, a 50 percent tariff is set to hit American Whiskeys on January 1, 2024.

“Spirits have had a significant cultural impact in our country, and currently have a profound impact on the U.S. economy. In 2022 alone, U.S. distilled spirit exports reached $2.06 billion. But the impact of the retaliatory tariffs was devastating. For the American Whiskey industry, exports decreased from $702 million to $440 million, a loss of 20 percent between 2018 and 2021. In 2022, American spirits exports rebounded over 2017 pre-tariff levels – the last full year before retaliatory tariffs – due in large part to the suspension of retaliatory tariffs. For many in the hospitality industry and others such as retailers, grocers, importers and distributors, many of which are small, locally-owned businesses, the impact was severe, compounded by the onset of the Covid-19 pandemic.

“While we understand that you continue to negotiate towards a deal to settle the dispute related to steel, we believe that the targeting of spirits is extraneous. Likewise, a permanent fix is needed as the two-year pause on American Whiskey tariffs is set to snapback soon.

“Understanding that tariffs are a ‘tool in the toolbox’ in negotiating a deal, the imposition of additional tariffs on this industry would be detrimental. There are mutual benefits in finding a path forward, and our belief is that spirits and wines are a point where there can be consensus to limit the damage for all parties.

“We look forward to your support in finding a permanent fix for retaliatory tariffs on spirits and wines.”

Image: Daniel Norris on Unsplash

December 11, 2023by David Klemt David Klemt No Comments

FTC Targets Restaurant Fees and Surcharges

FTC Targets Restaurant Fees and Surcharges

by David Klemt

The Apex Building, also known as the Federal Trade Commission Building in Washington, DC.

Well, that didn’t take long. Less than two months after asking for the public’s input, the Federal Trade Commission is proposing legislation targeting additional fees and surcharges.

The proposed rule is known as the “Unfair or Deceptive Fees” rule. As one may imagine, the FTC is going after hidden and so-called “junk” fees.

As it stands, according to multiple outlets, this rule would prohibit restaurant and bar operators from surcharges that are commonplace. For example, larger-party fees, delivery surcharges, and even credit card processing charges would be banned by the rule.

Instead, operators would be compelled to list total prices on menus, whether for goods or services. Further, the FTC is directing operators to provide larger groups with “larger group” menus. These separate menus would show total prices calculated to include any surcharges.

Even further, it’s being reported that the FTC is also addressing tips. The Commission’s rule directs operators who charge service fees in place of tips to remove the fee and return to tipping.

Interestingly, the National Restaurant Association is reporting that the FTC never identified restaurants as a targeted industry when asking for public comments about junk fees. However, other sources claim that restaurants were indeed included when the FTC put forth the request for public feedback.

Regardless, it’s a fair statement to say that the Commission doesn’t understand restaurant operation and costs. It appears that the FTC either didn’t work with any operators when drafting these proposed rules. Or, if they did seek out restaurant operator input, they put very little stock into it.

Costing Independents

One thing that’s clear is these proposed rules will cost operators. In particular, compliance will cost independent operations, which account for nearly 70 percent of American restaurants.

According to the NRA, the cost of changing menus will cost nearly $5,000 per operator, for starters.

“The FTC doesn’t take the realities of the restaurant industry into consideration,” reads the Association’s fact sheet. “Its estimated compliance cost—$3.5 billion—would equal a cost of $4,818.27 per operator for menus alone. Small independent operators run on a 3-5% margin and make an average of $45,000/year. The cost of making this change would be approximately 10% of their total income.”

As independent operators can attest, credit card swipe fees are a dynamic cost that affects them disproportionately in comparison to their chain restaurant counterparts. Since these fees are calculated on a per-transaction basis and not fixed, adjusting menu prices to comply with the FTC’s rule puts them at a costly disadvantage.

Then there’s the simple fact that when restaurants raise prices, traffic tends to drop. When traffic drops, revenue goes with it. And when traffic and revenue drops, hours are cut back, and people lose their jobs.

Harmful Legislation

As far as I can tell, this is another example of a government agency attempting to impose rules on an industry it doesn’t understand.

When drafting legislation that affects restaurants, a group of operators and industry advocates that truly represents those who will be impacted should be impaneled. Input should be taken into thoughtful consideration before drafting rules, and drafts should be provided to the panel to receive feedback.

Unfortunately, the past few years have made it clear that our industry has very few friends the federal government. Our lobby, such as it is, simply isn’t respected as valuable enough to warrant consideration before imposing harmful rules on the industry.

This, despite the fact restaurants and bars in America employ more than 12 million people. That’s a lot of voters too many elected lawmakers are willing to dismiss as unimportant.

Image: ipse dixit on Unsplash

December 8, 2023by David Klemt David Klemt No Comments

af&co. x Carbonate: 2024 Trends to Watch

af&co. x Carbonate: 2024 Trends to Watch

by David Klemt

Marketing and creative agencies af&co. and Carbonate Group‘s 16th annual Hospitality Trends Report provides in-depth insight across several categories.

This is an in-depth, insightful report operators should review in its entirety. The “Sweet Sixteen” edition of this yearly report is available for download here.

There are two interesting details toward the end of af&co. and Carbonate’s report. First, a list of 2023 clients. Second, an explanation for the design of the report itself.

This makes sense: Carbonate is a creative agency that works in the hospitality space, after all. Further, af&co. is a hospitality industry marketing agency.

Now, I won’t be sharing every trend or insight found in these two agencies’ report. Rather, I’m highlighting a number of items across four of the report’s six categories. Again, I think operators and leadership team members should download the report for themselves.

Food

While af&co. and Carbonate identify specific cuisines and items that are trending, it’s their 10,000-foot view of food that I find most compelling. In terms of the big picture, “rigid” adherence to authentic cuisine is falling out of favor.

Chefs, in the agencies’ opinions, are taking a more modern approach to menus. Instead of following the “rules” of certain cuisines, they’re creating dishes and programs that defy labels. Of course, for those who feel the need to label, one could call this approach “contemporary fusion.”

Examples given are Good Luck Gato’s Okonomiyaki Baked Potato, and the Birria Dumplings at Little Bull.

Cuisine Trends

Of course, af& co. and Carbonate also zoom in on food. Their Cuisine of the Year goes to Korean.

Dessert of the Year goes to the Pavlova or Eton Mess. So, one can argue that operators should connect with their back-of-house teams about meringue-based desserts.

Other food trends include making pastries with buckwheat; getting inventive with mortadella; serving borek in snack and entree size; and Brazilian-style pizza.

However, it’s a presentation trend that stood out the most to me. Accompanied by a timeline complete with images, the agencies state confidently that we’re in the “Crescent Moon” era of plating.

Visualize a plate, then place all of the food along the edge, with roughly two-thirds of the space open. That’s the crescent moon presentation.

Beverage

A number of the trends in this section aren’t exactly new. That tells me that some are likely on the brink of moving from trend to ubiquity.

That, or they’re at risk of bumping against their expiration date.

Two trends that have been popping their fins out of the sea of cocktails for a bit make it into the af&co. and Carbonate report. One is clarified cocktails.

Spend a bit of time looking up cocktails on social media and you’ll see these are a bit divisive. Some bartenders are all for them, some appear to absolutely despise this trend. Guests, however, seem to like the novelty of well-known, opaque or translucent classic turning transparent.

Another drink trend? Culinary cocktails. For food-driven concepts, it makes perfect sense to encourage the bar team to work closely with the kitchen team. Offering culinary cocktails is one method of pulling a concept’s threads tighter, telling a more complete story.

Along those lines, the agencies identify another divisive cocktail trend: cheese.

Personally, cocktails that feature cheese aren’t my thing. However, these drinks are, at the minimum, going to grab a guest’s attention. And those who order these drinks aren’t likely to forget the experience any time soon, good or bad.

That last point is important for operators and their teams to remember. A negative experience can be more powerful and stick with a guest longer than a positive one. So, pursue trends with caution.

Hotel

One of the biggest hotel developments the Hospitality Trends Report identifies is the dual-brand hotel. This is also a trend with which KRG Hospitality is well acquainted, both through industry research and client projects.

So far, the most common approach tends to include two towers, a shared lobby and fitness center, and shared F&B concepts. However, there are properties that incorporate not only brand-specific design for each tower but separate the bars and restaurants as well.

Notably, Marriott opened the first-ever tri-brand hotel in Nashville in 2019. The hotel and resort colossus combined an AC Hotel, a Residence Inn, and a SpringHill Suites.

Another interesting hotel trend? Eco-friendly, pre-fab construction. An excellent example of this approach is Moliving. To learn more about this brand, check out Bar Hacks podcast episode 68 with Jordan and Hanna Bem.

Interest by consumers in supporting eco-friendly brands informs two other trends identified by af&co. and Carbonate. One of these is hotels and resorts including e-bikes among their amenities.

Another is rewarding guests for engaging in a number of green initiatives. For example, cleaning up the beach in front of a hotel, or helping to plant trees on or near the property.

Speaking further of amenities, hotel and resort operators are likely aware that if they have courts for racquet sports, they need to include pickleball.

Design

Operators considering a refresh or starting from a clean slate for a new space may want to work with a designer on the following approach: maximalism.

According to the 16th annual Hospitality Trends Report, this bold, playful design language is on the rise. Following this trend, af&co. and Carbonate think that maximalism is working particularly well for “concept-driven, design-forward” bars.

As far as colors and materials operators may want to ask designers about, the agencies suggest pink, bronze, gold, and velvet. These colors are warm and welcoming, exactly what a hospitality venue should be.

To download the Hospitality Trends Report, click here. Two categories not covered in this article are Marketing Ideas and Social Media Trends, so follow that link!

Image: Mason Tuttle on Pexels

December 5, 2023by David Klemt David Klemt No Comments

Banfi and One Warm Coat Launch Partnership

Banfi and One Warm Coat Launch Partnership

by David Klemt

Wine producer and importer Banfi Vintners is partnering with non-profit One Warm Coat to help people in need and encourage others to host coat drives.

For anyone unfamiliar, One Warm Coat is a national 501 (c)(3) nonprofit operating throughout the US. Established in 1992, the nonprofit has helped organize nearly 50,000 coat drives. More than 5,500 of these drives took place during the 2022 to 2023 season, providing in excess of 550,000 coats.

So far, with their partners, they’ve collected and distributed close to eight million coats. These partners include Land’s End, J.Crew, Todd Snyder, Duluth Trading Co., and now Banfi.

To launch their partnership, Banfi seeded the program with a donation that will provide 50,000 coats. In announcing this partnership, Banfi and One Warm Coat hope to encourage others to give back, host coat drives, and help those in need within their communities.

Canadian operators and their teams can find One Warm Coat partners by clicking here and searching their city. I found partners in and around Toronto, Vancouver, Calgary, and Edmonton.

In addition to helping provide people in need with coats, sustainability is key to One Warm Coat’s mission. To date, the organization has helped keep 19.4 million pounds of clothing out of landfills.

Charity Navigator, which rates the trustworthiness of charities, gives One Warm Coat a score of 98 percent.

To learn more, please review the press release below.

BANFI VINTNERS PARTNERS WITH ONE WARM COAT TO SUPPORT LOCAL COMMUNITY

Italian wine producer and importer offers support to individuals in need through seasonal coat drive

NEW YORK, NY—Banfi, producer and importer of fine wines, proudly announces its partnership with national non-profit organization, One Warm Coat. Banfi kicked off the program with a donation that will warm 50,000 people in need.

“One Warm Coat is thrilled to team up with Banfi this holiday season to share warmth with those in need across the country while promoting volunteerism and environmental sustainability,” shares Beth Amodio, President and CEO, One Warm Coat.

In addition, the partnership with One Warm Coat allows Banfi to spread the word and encourage coat drives at various retail and restaurant accounts across the country, extending the program’s reach and multiplying the number of donations collected. One example can be found not too far from Banfi’s NY headquarters; based in upstate New York, Banfi’s distributor partner, Empire Merchants North has made it a key focus to promote the brand’s initiative on their website and social channels to bolster the partnership and encourage dozens of retailers to support the cause.

“Empire Merchants North proudly joined Banfi’s One Warm Coat program to extend our commitment beyond beverages. Embracing social responsibility, we believe in making a positive impact by contributing to the well-being of our community, aligning seamlessly with Banfi’s philanthropic mission. Our enthusiastic employees joyfully embraced this initiative, embodying our shared commitment to making a meaningful difference in the lives of those in need,” shares President and CEO of Empire Merchants North Eric Pfeil.

“One of our favorite aspects of working with One Warm Coat is its ability to support the local community. The donations stay in the community where they’re collected, so it’s truly heartening to see the widespread response in the market,” shares Banfi President and CEO Cristina Mariani-May.

About Banfi Wines

Banfi, producer and importer of fine wines, was founded in 1919 and is today woman-owned and operated by third-generation family proprietor Cristina Mariani-May. Banfi is the sole U.S. importer of the Mariani family’s internationally renowned wine estates in Italy: Castello Banfi of Montalcino, Tuscany, and Banfi Piemonte of Strevi, Piedmont. Castello Banfi is credited with pioneering a new era in Brunello and bringing the wine world’s attention to Montalcino, while Banfi Piemonte produces the family’s sparkling wines. Banfi’s wide range of wines offers affordable luxury and includes the flagship Brunello di Montalcino, Super Tuscans, Tuscan Pinot Grigio, Chianti, Sparkling and more varieties.

About One Warm Coat

One Warm Coat is a national cloud-based 501 (c)(3) nonprofit organization that provides free coats to individuals in need. Since 1992, One Warm Coat has facilitated 49,000 coat drives across the country, collecting 8 million coats that have been distributed through more than 1,500 nonprofit partners. Individuals and organizations can get involved by donating coats, holding coat drives, and making financial donations. One Warm Coat believes in each person’s right to shelter from the elements and is committed to sharing warmth, without discrimination, one coat at a time.

Image: Markus Spiske on Unsplash

December 4, 2023by David Klemt David Klemt No Comments

5 Books to Read this Month: December 2023

5 Books to Read this Month: December 2023

by David Klemt

Our inspiring and informative December book selections will help you and your team transform your operations and F&B programming.

This month, we look at books covering an array of topics. There’s an alcohol-free cocktail recipe book, an exploration of some of America’s most unique hotels, and more.

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

Let’s jump in!

The Mocktail Club: Classic Recipes (and New Favorites) Without the Booze

Some people find the word “mocktail” is one of the best to label their alcohol-free drinks. Others find the word condescending. Regardless of which camp you find yourself in, The Mocktail Club should help you expand your zero-proof menu.

From Amazon: “The Art of Mixology meets mocktails in this beautiful collection of 75 alcohol-free recipes for classic drinks, new flavor concoctions, and twists on old favorites, so you can experience the joy of cocktail creation without the booze!”

Pre-order it today. This book is available on January 2, 2024.

Hotel Kitsch: A Pretty Cool Tour of America’s Fantasy Getaways

We love a creative independent hotel brand, unique resort, or one-of-a-kind motel. Any place with endless details to discover and appreciate that places value on offering unforgettable experiences during a guest’s stay. This book captures such hotels and motels in a series of photographs that should inspire operators to follow through with their incredible visions.

From Amazon: “From the photographers and inveterate travelers behind the social media sensation A Pretty Cool Hotel Tour, Hotel Kitsch celebrates dozens of creative, nostalgic, one-of-a-kind hotels that span the heart of the Poconos and across the United States to Mexico, Spain, and the UK. Discover, in the middle of Iowa, a jungle room with fake trees and foliage surrounding the bed as if it had taken its cue from Where the Wild Things Are. Or Jules’ Undersea Lodge in Key Largo where the rooms are reached by scuba diving. An Arctic Cave room at a hotel in Kentucky with its carved blue walls and not a window to be found. And on the California coast, the iconic Madonna Inn featuring 110 rooms, each themed and no two alike.”

Grab it today.

The Hospitality Mentality: Create Raving Fans Through Your Guest Experience

This book is so new it isn’t available until tomorrow, December 5. New book, fresh ideas to lead you into the new year.

The Hospitality Mentality is all about empowering your team to deliver impeccable service and unforgettable memories, keeping guests coming back to your venue for more.

From Amazon: “Business leaders will gain inspiration to take their service standard to the next level, knowing that this is an area that cannot plateau. Readers will be motivated to go above and beyond guests’ expectations through creating hyper-personalized experiences, amplifying enthusiasm, anticipating needs, and crafting superior ‘wow’ moments that solidify memories that take satisfaction to the next level. By maximizing the benefit of guest feedback and directly addressing complaints, service providers can strengthen their relationship with their guests, ultimately leading to business/brand loyalty.”

Get the paperback today!

Reinvent: Navigating Business Transformation in a Hyperdigital Era

This business book has earned a number of accolades since its publication earlier this year:

Wall Street Journal bestseller
Silver for Best Business Book in the 2023 Globee® Awards for Business, The 21st Annual American Business Awards®
2023 Best Business Book of The Year, Silver Stevie Winner

The hospitality industry, as operators are all too aware, has been making massive strides when it comes to technology the past few years. However, as Reinvent also says, you can’t just plug in a tech solution, expect it to work, and say your brand and business are transformed.

From Amazon: “From top to bottom, organizations will be compelled to change entire mindsets, attitudes, and assumptions about how they operate, how they can grow, and even the very reason for their existence. This book introduces readers to ideas, concepts, and a comprehensive framework (LIFTS) that they can use to better position themselves and their organizations to reap the greatest number of benefits that business and digital transformation can afford. It’s a journey rich with promise that explains complex concepts in an understandable common language.”

Order the hardcover today.

Bar Hacks: Developing The Fundamentals for an Epic Bar

This informative and conversational book is the perfect read for aspiring or seasoned bar, pub, lounge, or even restaurant owners, operators, and managers looking for that competitive edge in operations! If you’re looking for both fundamental and in-depth planning methods, strategies, and industry focused insight to either start or grow a scalable, sustainable, memorable, profitable, and consistent venue in today’s cut-throat industry, Bar Hacks is written just for you.

Pick up the paperback from Amazon today!

Image: Mikołaj on Unsplash

November 28, 2023by David Klemt David Klemt No Comments

The Indispensable Egg: Simple but Powerful

The Indispensable Egg: Simple but Powerful

by Nathen Dubé

In the realm of gastronomy, eggs are indispensable, offering a unique blend of flavor and texture that is celebrated across various cuisines.

These staples of culinary tradition embody the essence of simplicity and versatility. Farm-fresh eggs, known for their rich, vibrant yolks and robust shells, elevate this simple ingredient to new heights.

This comprehensive exploration delves into the culinary excellence of farm-fresh eggs and their broader implications in the hospitality industry, from enhancing the quality of dishes to contributing to business success.

The Culinary Excellence of Farm-Fresh Eggs

The superiority of farm-fresh eggs in cooking is undeniable. Their vibrant yolks, a result of the diverse diet of free-range hens, enrich dishes with deeper flavors and a more appealing visual presentation.

In baking, these eggs contribute to finer, more consistent textures. And in sauces and dressings, their freshness is paramount, forming the foundation of many classic culinary creations.

Crafting Artisanal Dishes with Farm-Fresh Eggs

Embracing the artisanal approach, chefs use farm-fresh eggs to create dishes that showcase their natural elegance and flavor.

From perfectly poached eggs on a bed of fresh greens to innovative egg tarts, these eggs become the centerpiece of culinary craftsmanship, attracting patrons who appreciate the art of cooking.

Seasonal Menus and Farm-Fresh Eggs

Utilizing farm-fresh eggs allows chefs to design seasonal menus that reflect the changing offerings of local farms.

The subtle variations in flavor and color of the eggs throughout the year inspire creative, seasonal dishes, demonstrating a commitment to freshness and local sourcing.

Nutritional Superiority of Farm-Fresh Eggs

Beyond their culinary appeal, farm-fresh eggs offer enhanced nutritional benefits.

Rich in omega-3 fatty acids, vitamins, and minerals, they cater to health-conscious consumers, adding a valuable dimension to menus and marketing strategies in the hospitality sector.

The Business Benefits of Premium Ingredients

Incorporating farm-fresh eggs into a restaurant’s offerings is a strategic business decision. It signifies a commitment to quality and can differentiate an establishment in a competitive market.

This choice also allows for storytelling opportunities, sharing the origins of the ingredients and the relationships with local producers, building trust and a sense of community with patrons.

As Chef Brian Duffy says, operators can charge premium prices, but only if they’re being innovative. Purchasing and using fresh eggs from a local farmer is a step toward innovation and justifies charging a premium.

Ethical Considerations and Consumer Awareness

The ethical sourcing of farm-fresh eggs aligns with the growing consumer awareness and demand for transparency, and humane treatment in food production.

By choosing ethically sourced eggs, hospitality businesses can build a brand image that resonates with these values, fostering customer loyalty.

Implementing Change in the Hospitality Industry

Adopting farm-fresh eggs comes with its challenges, such as higher costs and variable supply. However, these can be mitigated through creative menu planning and pricing strategies.

Educating staff about the benefits and ethos behind using these eggs enhances the dining experience for customers.

Sustainability and the Future of Food

Choosing farm-fresh eggs is a step towards a more sustainable food system. Small-scale egg farming often employs environmentally friendly practices, contributing to a sustainable future.

This commitment to sustainability is increasingly important to consumers and can be a significant aspect of a restaurant’s brand identity.

Conclusion

Farm-fresh eggs represent more than just a culinary choice; they are a statement about quality, sustainability, and the future of food.

For chefs and restaurateurs, they offer a means to distinguish their offerings, tell a compelling story, and build a business that is both profitable and principled.

As the hospitality industry evolves, those who embrace the full potential of ingredients like farm-fresh eggs will find themselves leading a movement that values the entire journey from farm to table. This comprehensive exploration underscores the multifaceted role of farm-fresh eggs in both culinary excellence and the broader context of the hospitality industry.

Image: Kelly Neil on Unsplash

Aerial view of Chicago skyline and Lake Michigan coastline

November 27, 2023by David Klemt David Klemt No Comments

Indies: Which Cities Lead the Way?

Independents: Which Cities Lead the Way?

by David Klemt

The majority of the top ten indie restaurants on the Restaurant Business Top 100 Independents ranking are in two American cities.

Those two cities are Miami Beach, Florida, and Chicago, Illinois. While Miami Beach claims two spots among the top three, Chicago has the most restaurants in the top ten. However, the top three indies are all in Florida, with number two being the Boathouse in Orlando.

So, Florida and Illinois are home to nearly the entire top ten of Restaurant Business’ Top 100 Independents. That’s impressive.

What’s even more impressive is the combined annual sales figure of the top ten: $333.4 million. Now, let’s separate Miami Beach. The three indies in the Florida city generated nearly $114 million themselves. Chicago’s four indies among the top ten generated $118 million.

Taken together, the top 100 indies generated $1.95 billion.

All told, 14 of the top 100 indies as ranked by Restaurant Business are in Chicago. Five are in Miami Beach, and five are in Miami. Before I move on, no, Miami Beach and Miami aren’t the same city; they’re entirely separate municipalities. In total, 16 restaurants on this list are in Florida.

New York boasts 15 restaurants on the list. Four are in San Francisco, and just two are in Los Angeles. However, California claims 15 restaurants in total.

However, as you’ll see below, this Restaurant Business list consists of more than just the usual big cities.

Restaurant Business Top 100 Independents: The Top Ten

Below, the top ten independent restaurants, per Restaurant Business.

Joe’s Stone Crab Restaurant (Miami Beach, Florida)
The Boathouse (Orlando, Florida)
Komodo Miami (Miami Beach, Florida)
Maple & Ash Chicago (Chicago, Illinois)
Mila (Miami Beach, Florida)
Sierra Mar (Big Sur, California)
Gibsons Bar & Steakhouse (Chicago, Illinois)
Gibsons Italia (Chicago, Illinois)
Alexxa’s (Las Vegas, Nevada)
Alinea (Chicago, Illinois)

Alinea commands the highest average check among the top ten, at $650. The most reasonable is the Boathouse, averaging $45.

Interestingly—and perhaps logically—these two restaurants find themselves in the inverse when it comes to annual meals served. The Boathouse serves the most: just over one million. And Alinea, among the top ten indies, serves the least: nearly 45,700.

Notably, when we move on to numbers 11 to 20, Las Vegas, Miami, and New York account for six restaurants.

However, it’s also notable that it’s not just the usual big cities with restaurants on this list. Smaller cities, such as Frankenmuth in Michigan, are home to some of America’s top-performing independent restaurants.

For some context, Frankenmuth has a population of less than 5,200 people. However, Michigan’s “Little Bavaria” draws three million tourists per year. So, it’s no surprise that Zehnder’s Restaurant generates more than $19 million in annual sales.

Restaurant Business Top 100 Independents: The Bottom Ten

Just for fun, let’s take a look at the bottom ten on the Restaurant Business list.

Siena Tavern (Chicago, Illinois)
Fleet Landing Restaurant & Bar (Charleston, South Carolina)
Electric Lemon NY (New York, New York)
Bar Siena (Chicago, Illinois)
El Vez (Philadelphia, Pennsylvania)
Mi Vida (Washington, DC)
Scoma’s Restaurant (San Francisco, California)
Mexican Sugar (Las Colinas, Texas)
The Shed Barbecue & Blues Joint (Ocean Springs, Mississippi)
Chef Adrianne’s Vineyard Restaurant and Bar (Miami, Florida)

Adding context, these ten restaurants have generated $114.6 million in annual sales. That’s roughly the same amount of annual sales as the three restaurants in Miami Beach in the top ten.

Each of the “bottom” ten has annual sales ranging from $11.2 million to $11.9 million.

Takeaway

We all know the following axiom: “Location, location, location.”

It’s tempting to assume this means a business must be in a major city. That’s a woeful oversimplification. Myriad considerations must be made when looking at a market, whether the population is in the hundreds or millions. Assuming a concept will drive traffic and generate millions of dollars solely because it’s in a major city is foolish.

Let’s take another look at Zehnder’s in Frankenmuth. The restaurant, number 47 on the list, generated $19.2 million in annual sales. Moreover, it’s in a town with a population under 5,200.

Number 46 generated $19.3 million and is in (on?) Waimea in Hawaii. Number 48 boasted annual sales of $19 million and is in a city with a population of almost 2.7 million: Chicago.

Clearly, tourism a key contributing factor to the success of Zehnder’s. Not population, not the demographics of the permanent residents, not big-city status.

So, what about check average? Alinea, number ten, has the highest at $650 and generated $28.3 million in sales. However, the Spot, number 85, has an average check of $18 and generated $12.3 million.

The success of any restaurant, bar, nightlife or eatertainment concept doesn’t come down to a single element. What sets a concept apart is a deep understanding of a specific market, the surrounding markets, “sister” sites and competitors, guest desires and expectations, and so much more.

How does an operator come to understand their operation and their market? A feasibility study to start. Then comes a thorough, coherent concept plan and a complete business plan, and an obsession with data.

Operators who put in the work to attain strategic clarity have the potential to earn their way onto the Top 100 Independents list.

Image: Cameron Casey on Pexels