F&B

by David Klemt David Klemt No Comments

Reduce Discounts, Increase Profits

Reduce Discounts, Increase Profits

by David Klemt

Scientific calculator on top of cash

There’s reason to be optimistic about generating revenue this year but operators must also be savvy if they want to boost their bottom lines.

Put another way, the growth some industry organizations and experts are predicting isn’t just going to occur. We’re optimistic about 2023 as well, but it’s going to take hard work and shrewdness.

As we know now, the National Restaurant Association is forecasting massive sales this year. In fact, the NRA projects the foodservice industry will generate $997 billion in sales. That’s nearly a trillion dollars just from the foodservice space.

Clearly, that’s a big number. It’s also $60 billion more in sales than the industry generated in 2022. That’s impressive in and of itself, surpassing the 2022 sales forecast by almost $40 billion.

Okay, so those are a lot of big numbers. Should foodservice outperform the forecast again, the industry will pass the trillion-dollar mark. And I know every owner and operator, be they independent, chain or franchisee, wants a healthy share.

However, impressive as those numbers are, they’re just that: numbers. Operators will still have to do the work to increase traffic; convert first-timers to repeat guests; and increase revenue. Fail in those tasks and there’s no reason to expect profits to rise.

It’s math, after all, not magic.

One way operators can increase revenue and profits is to offer fewer discounts. Really, this isn’t an incredible concept: If more guests pay full price, operators see more profits.

Real-world Example

Costs are up nearly across the board, and it can be tempting to offer discounts in an attempt to increase traffic. However, one group has shown over the past couple of years that discounts don’t need to be an operator’s go-to traffic- and sales-boosting tactic.

Carrols Restaurant Group is a Burger King franchisee. According to Restaurant Business, the group operates more than 1,000 Burger King restaurants. So, they operate approximately one out of every seven Burger Kings in the US.

Last quarter, Carrols managed to generate more than $14 million in free-flow cash. That’s higher performance than the group has seen in the past couple of years.

A significant factor for Carrols and Burger King is backing off of discounting. Again, this isn’t groundbreaking but it’s still noteworthy. A brand that once was reliant on discounting is now backing off that model and seeing dividends.

Of course, guest perception, the guest experience, and marketing play a role. Guests must still feel they’re getting value for the dollars they spend. They must also feel that their experience, from QSR to full-service, shows that they’re valued by the restaurant. And the marketing messaging must truly speak to a brand’s guest base and bring them through the doors to spend their money.

Premiumization over Discounts

The bottom line for an operator’s bottom line is this: If prices are continually discounted, that lower price is now the actual price. At least, a discounted price is now the normal price in the eyes of guests.

In other words, an operator who discounts all the time is training their guests to only visit and buy items when prices are lower than usual.

The superior option? Offering premium LTOs that speak to a brand’s base and tempt them to spend more. LTOs don’t need to come with discounted prices. In fact, they should be treated as premium promotions and command premium prices.

Create seasonal LTOs (in one concept’s case, inventing a fifth season), as an example, to generate buzz and increase traffic. Offer premium items at premium—but fair—prices to leverage the traffic, increase sales, and boost profits.

Another strategy that’s more effective than discounts? Building a brand with which guests resonate. Guests who relate to a brand tend to visit more often and support it with their dollars.

It’s tempting to discount. Don’t give in to temptation.

Image: Karolina Grabowska on Pexels

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by David Klemt David Klemt No Comments

The Incredible Rise of Luxury Whiskeys

There are Luxury Whiskeys. Then There are These…

by David Klemt

Closeup image of whiskey in a glass

Some investors look at whiskey as a luxury good worthy of parking their dollars, with some outperforming gold and the S&P 500 Index.

In fact, super- and ultra-premium whiskey has at times outperformed gold over the past decade. According to some reports, investments in whiskey casks performed better than gold, the S&P 500, and Bitcoin just a few years ago.

Of course, the hospitality and spirits worlds have long been reporting increased interest in luxury whiskey. Really, consumers have shown interest in premium, super-premium, and ultra-premium spirits across several categories.

In other words, it appears that the “drink better” movement continues to accelerate.

This is, of course, great news for operators. Premium and above spirits command higher prices on-premise, boosting revenue.

But there’s luxury, and then there’s luxury. There are ultra-premium spirits, and there are truly exclusive bottles. I suppose hyper-premium describes these incredibly rare expressions. After all, there are hypercars and hyperyachts, and the owners of such vehicles are the people who can afford hyper-premium spirits.

Two examples of such spirits made headlines recently, and wow—their prices are eyewatering.

The Highland Park 54 Year Old

Interested in a taste of the late ’60s? This Scotch was laid down back in 1968 by Highland Park.

And back in 2008, Highland Park master whisky maker Gordon Motion combined four refill butts and six refill hogsheads. That was also the year that Gordon Motion was named master whisky for the distillery. It seems Motion wasted no time in creating an awe-inspiring whisky for Highland Park.

Highland Park’s 54-year-old whisky is stunning, and just 225 bottles are available. This is, of course, a nod to the distillery’s big 2023 anniversary celebration. Highland Park was founded in 1798; 2023 is their 225-year anniversary.

So, what’s a 700ml, 46.9% ABV bottle of Highland Park 54 Year Old going for? Each one carries a price tag of £39,000, or nearly $47,000 USD. There is, of course, no telling what each bottle will be valued at in the future (or if they’ll appreciate, so be careful, investors).

As far as flavor profile, there are, of course, woody and peaty notes. However, there’s also camphor, pistachio, kiwi, and lychee. However, I’m sure whatever I write here will never do justice to experiencing a dram of 54 Year Old.

Gordon & MacPhail Generations 80-Years-Old

For once, I’m nearly speechless. This is the world’s oldest Scotch. And, until we learn otherwise, world’s oldest whisky.

Of particular note, this is Glenlivet liquid rested by father-and-son duo John and George Urquhart in a Gordon & MacPhail cask.

The liquid was laid down on February 3, 1940 and bottled on February 5, 2020. There are 250 decanters available, and these vessels are as stunning as the whisky they contain.

Architect and designer Sir David Adjaye OBE (knighted in 2017) designed the decanter and oak case. Glencairn Crystal Studio stepped up for production of the decanter. Wardour Workshops crafted the case from sustainably sourced oak.

As I stated above, Highland Park’s 54-year-old Scotch costs nearly $50,000. So, what does this Gordon & MachPhail 80-Years-Old Scotch cost?

Well, we won’t really know until October 7 of this year. That’s the date that Sotheby’s will auction off Generations 80-Years-Old Decanter #1.

The world-renowned luxury marketplace is estimating this lot will go for between $120,000 and $255,000. Although, that price could be driven higher should the auction heat up.

Some of the tasting notes from Charlie MacLean MBE include: almond oil, scented hand-soap, sandalwood, dates, salted plums, figs, dry Oloroso Sherry, and a menthol finish.

The Takeaway

I’m not suggesting that operators drop tens of thousands of dollars on hyper-premium bottles. While doing so could translate to hefty margins per ounce sold from such bottles, it’s not realistic for most restaurants and bars.

However, it’s clear that consumers are showing interest not only in learning about luxury spirits but also an inclination to splash out for a taste.

Are 50- to 80-year-old spirits extreme examples of luxury? Absolutely. Do they point to interest in more affordable examples of luxury? Again, absolutely.

Decades-old spirits are rare but not, if this makes sense, uncommon. While the two bottles above are generating headlines, there are others out in the world garnering interest. Examples are Morthlach 70-Year-Old and 75-Year-Old.

Moreover, these rare expressions generate interest in the distilleries that produced them. So, while the average guest may not be able shell out for a 50-year-old single malt, they could be persuaded to try one from that same distillery that’s half that age.

This is, of course, where storytelling comes into the guest experience. An educated, interested, and engaging front-of-house team can be a sales powerhouse.

Image: Anthony Torres on Unsplash

KRG Hospitality Beverage Programming

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Say Hi to Your Mother Sauces for Me

Say Hi to Your Mother Sauces for Me

by Nathen Dubé

Chef pouring espagnole or brown sauce

A well-crafted sauce can elevate a dish, tying all the elements together, adding richness, texture, and colour to almost any recipe.

French cuisine in particular is renowned for its liberal use of flavorful sauces. Developed in the 19th century by French chef Auguste Escoffier, the five mother sauces are basic recipes that serve as the foundation for any number of secondary sauce variations. Each mother sauce is categorized primarily according to its unique base and thickener.

The five French mother sauces are: béchamel, velouté, espagnole, hollandaise, and tomato. Historically, Chef Escoffier originally designated only four mother sauces, and mayonnaise as a cold mother sauce, with Hollandaise below that.

Interestingly, when his book was translated to English, mayonnaise was forgotten or omitted; Hollandaise was listed as the fifth mother sauce.

Beginning culinary students and experienced cooks alike commit these five sauces to memory. They learn that by tweaking their basic formulas, all manner of great sauces can be crafted.

Please meet the five mother sauces below. I explain: how each is made; their basic uses; and some secondary sauces you can make from them.

1. Béchamel

Béchamel, or white sauce, is a simple milk-based sauce made from butter, flour, and milk.

You know béchamel as the white sauce that gives chicken pot pie its texture, or as the vehicle of cheesy goodness and binding agent in delicious mac ‘n’ cheese creations. The sauce can be found in everything from scalloped potatoes and lasagne to gravy iterations.

In classical cuisine, béchamel was poured over fish, eggs, or steamed chicken. While béchamel has a generally neutral taste on its own, the classic mother sauce adds a unique creamy texture that is both hearty and comforting.

My personal favorite base recipe is Joel Robuchon’s equation of one liter of milk, 60 grams of butter, and 60 grams of flour. It works perfectly every time.

To make béchamel, start by cooking butter and flour in a saucepan until it forms a substance called a roux. The roux is responsible for thickening the sauce. To remove the floury taste, cook the roux over medium heat for a few minutes.

When the roux is ready, slowly whisk in warm milk and simmer until it forms a creamy sauce. Strain the liquid after it thickens to get rid of any sediment, then add salt and pepper. (You can add other ingredients as well, such as bay leaves, nutmeg, onion, clove, or even cheese.)

With the addition of a few extra seasonings like salt, pepper, and cloves, béchamel is complete — though it may be used as a base for many other sauces.

Béchamel sauces include:

  • Mornay: onion, cloves, Gruyère, and Parmesan cheese
  • Alfredo: garlic with heavy cream
  • Soubise: butter and caramelized onions
  • Cheddar sauce (used for mac ‘n’ cheese or nacho-style sauces): whole milk and cheddar cheese

2. Velouté

Velouté means “velvet” in French, and that is the texture you get with this original sauce.

A velouté is a simple sauce made from butter, flour, and clear stock. Chicken, turkey, and fish stock are most commonly used, but these days, although it’s not traditional, you can also find vegetarian velouté using vegetable stock.

This mother sauce is similar to béchamel in that it’s a white sauce thickened with roux. However, it uses stock for the base in place of milk. As a reminder, stock is a savory, flavorful cooking liquid created by simmering bones, herbs, and aromatic vegetables for several hours. Chicken stock is most common, but you can also use other white stocks, such as those made from veal or fish.

To make velouté, start by making a white roux with butter and flour. Next, slowly stir in warm stock and let it simmer until a creamy, light sauce forms.

When finished, velouté has a delicate, light flavor and a smooth texture. The sauce is usually served over poached or steamed fish or chicken; the light flavors of the sauce compliment the light, delicate meat. By adding wine, lemon, or other flavorings such as herbs, cooks can adjust the flavour of this mother sauce.

Some popular sauces derived from velouté include:

  • Supreme: chicken velouté with heavy cream and mushrooms
  • Venetian: chicken or fish velouté with tarragon, shallots, and parsley
  • Hungarian: chicken or veal velouté with onion, paprika, and white wine

3. Espagnole

Espagnole, otherwise known as brown sauce, is a rich, dark sauce made from roux-thickened stock, puréed tomatoes, and mirepoix (carrots, onions, and celery that’s used as a base). Brown stock, which is made from beef or veal bones that have been roasted and simmered, gives espagnole a particularly rich, complex flavor.

This dark brown sauce—one of the original mother sauces—and its derivative sauces tend to be heavy and thick. They lend a signature richness to such dishes as bœuf bourguignon, lamb, duck, and veal.

Like velouté, espagnole uses roux and stock as the main ingredients. However, instead of white roux and stock, it calls for brown stock and brown roux. In this case, the flour paste (butter, flour) is cooked until the flour browns.

It’s important that cooks stir the roux while it browns so the paste does not stick and burn or scorch. You can imagine how this would ruin the finished product, of course. When the roux has finished cooking, browned mirepoix, pureed tomato, and beef or veal stock are added.

Espagnole is the base for:

  • Demi-glace: additional beef or veal stock, herbs, and spices that’s reduced to a thick, gravy-like consistency
  • Sauce Robert (or Robert Sauce): espagnole with lemon juice, dry mustard, white wine, and onions.
  • Mushroom sauce: mushrooms, shallots, sherry, and lemon juice
  • Burgundy sauce: espagnole with red wine and shallots

4. Sauce Tomate

Sauce tomate, also known as sauce tomat, or tomato sauce, bears slight resemblance to the Italian-style tomato sauce served with pasta.

Tomato sauce is arguably the most popular of the French mother sauces. It is often served on top of pastas (gnocchi, in particular) or polenta, or with grilled meats or vegetables.

Trigger warning for Italians: The original mother sauce tomate was thickened with a roux, but thankfully this is no longer the case.

The classical French tomato sauce can be (but usually is not) thickened with roux and seasoned with pork, herbs, and aromatic vegetables. However, most modern tomato sauces consist primarily of puréed tomatoes seasoned with herbs and reduced into a rich, flavorful sauce.

Marie-Antoine Carême classified sauce tomate as a mother sauce in the early 20th century. They are remarkably versatile and can be served with stewed or roasted meats, fish, vegetables, eggs, and of course, pasta dishes. You’ll even find it used as pizza sauce.

The best tomato sauces are made with fresh, vine-ripened tomatoes. If you can make big batches when they’re in peak season, you’ll be able to enjoy flavorful sauce year-round.

Probably the most well-known sauces, you can make the following with sauce tomate:

  • Marinara: tomato sauce with garlic, onions, and herbs)
  • Sauce Portugaise or Portuguese sauce: tomato sauce with garlic, onions, sugar, salt, parsley, and peeled tomatoes
  • Creole sauce: tomato sauce with white wine, garlic, onion, cayenne pepper, and red bell peppers

5. Hollandaise

Like sauce tomate, this sauce was a later addition to Carême’s list. Brunch-goers will recognize hollandaise from Eggs Benedict variations. People will also know it from topping steamed asparagus or smothering a steak or lobster tail.

Both the original recipe and its derivative sauces are commonly served over eggs, vegetables, fish, or chicken. It’s worth mentioning that hollandaise is derived from mayonnaise and hasn’t always been classified as a mother sauce.

Hollandaise stands out from the other French mother sauces because it relies on the emulsification—or mixing—of egg yolks and butter in place of roux. The tangy, creamy sauce is made from butter, raw egg yolks, lemon juice, and optional flavorings like cayenne pepper or white wine vinegar.

Rookies often struggle with Hollandaise, and jokes will be made that the ingredients can sense fear and intimidation. The tendency for butter and egg yolks to resist combining—much like water and oil—coupled with the gentle heat of a bain-maire (steam bath) can cause the sauce to split or a pile of scrambled eggs to appear.

The key to making a proper hollandaise is slightly warm egg yolks, room temperature butter, and steady, constant whisking. It’s essential to add the butter to the yolks slowly and incrementally so that the ingredients remain stable and don’t separate.

Hollandaise and its derivative sauces are often served over eggs, vegetables, or lighter meats like poultry and fish. Speaking of derivatives, even though hollandaise is delicious on its own:

  • Béarnaise (beef’s perfect match): hollandaise with white wine, tarragon, and peppercorn
  • Choron: hollandaise with tarragon and tomato
  • Sauce Maltaise: hollandaise with blood orange juice
  • Sauce Mousseline: hollandaise with whipped heavy cream

There you have it—the five mother sauces. Master these and an entire world of sauce and dip creation opens up to you.

Image: Vitor Monthay on Unsplash

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Program for Unique Holidays: March 2023

Program for Unique Holidays: March 2023

by David Klemt

"Think about things differently" neon sign

Do you want to stand out from from other restaurants and bars in your area? Change how you think about holiday promotions.

Several holidays are set against every date on the calendar, and March is no exception. These holidays range from mainstream to esoteric.

Pay attention to the “weird” or unique holidays to raise eyebrows, carve out a niche for your restaurant or bar, and attract more guests. Why do what everyone else is already doing? Why program only around the same holidays as everyone else?

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

You’ll find suggestions for promotions below. However, the idea behind our monthly holiday promotions roundup is to inspire you and your team to get creative and come up with unique programming ideas.

For our February 2023 holidays list, click here.

March 3: National I Want You to be Happy Day

This is certainly a holiday tailor-made for the hospitality industry. Above all, we should all want guests to feel happy before, during, and after their visit. Happy and excited in anticipation to visiting, happy throughout their visit, and leaving with a happy memory.

March 5: Cinco de Marcho

This is a week-long celebration. Traditionally, this holiday has been intended to prepare people for all the alcohol they intend to consume on St. Patrick’s Day.

However, operators can go a different direction with this. For the week leading up to St. Patrick’s Day you can trickle out the dishes and drinks you intend to feature for the big celebration. Alternatively, you can feature alcohol-free and even health-boosting drinks before St. Patrick’s Day.

March 8: National Proofreading Day

You and your team should be proofreading your menus before they every find their in front of guests. But, hey, mistakes are sometimes made.

For National Proofreading Day, challenge your guests to find errors on your menus, placing a “bounty” on them. Reward guests who find mistakes and then fix them.

March 10: Mario Day

Nostalgia is a powerful tool for generating engagement, boosting traffic, and creating guest loyalty. This holiday celebrates Nintendo’s most famous character, obviously.

If you have gaming consoles or Super Mario Bros. arcade games, you know what to do. And you also know you should create a Mario-themed LTO menu.

March 13: National Open An Umbrella Indoors Day

You could, if you’re superstitious, tempt fate on this day. For example, you could set some umbrellas by your front door and dare guests to open them indoors upon their arrival.

Or you could create an LTO menu with drinks served with cocktail umbrellas, a much “safer” way to celebrate.

March 16: National Everything You Do Is Right Day

Does your guest want another drink? That’s the right decision. Do they want to order a second starter? They’re right to do so. Is your guest mulling over dessert? They should do it because it’s the right thing to do.

March 22: National Goof Off Day

Sometimes your guests need to play hooky. Work, errands, chores… Who needs ’em? This is the day they should find refuge in your restaurant or bar and take a break from their responsibilities.

March 26: Make Up Your Own Holiday Day

I mean… Clean slate here. Create your own holiday and make it stick for an annual March 26 celebration at your venue.

March 29: Smoke And Mirrors Day

One of the simplest ways to leverage this holiday is with smoked cocktails and foods. Smoke sells: When one guest orders a smoked cocktail, others follow.

March 30: National Virtual Vacation Day

You can treat this like National Goof Off Day. Of course, you can also decorate your place to look like a vacation destination, create themed LTOs, and send your guests into April feeling refreshed.

Women’s History Month Holidays

In addition to March being Women’s History Month, there are separate days that celebrate women and women’s accomplishments, and bring attention to women’s issues. You can find these days below:

  • International Women’s Week: March 5-12
  • Women of Aviation Worldwide Week: March 6-13
  • Women in Construction Week: March 6-13
  • International Women’s Day: March 8
  • National Women And Girls HIV/AIDS Awareness Day: March 10

Image: Ivan Bertolazzi on Pexels

KRG Hospitality Beverage Programming

by David Klemt David Klemt No Comments

Alternatives to ServSafe

Just.Safe.Food. and More Alternatives to ServSafe

by David Klemt

Server carrying two plates with one hand

ServSafe, the National Restaurant Association‘s food safety training program, isn’t the only food handler training game in town.

Certainly, the program is the most well known in our industry. However, it’s fair to say that ServSafe is closer to infamous than just ubiquitous due to a New York Times article from January.

While it’s the most recognizable of the food safety programs, it’s not the only one. Although, ServSafe’s omnipresence likely gives many the impression that it’s ServSafe or nothing.

There are, however, alternatives to ServSafe. In fact, one challenger was announced a day after the explosive New York Times article that thrust ServSafe into a spotlight the NRA probably isn’t enjoying. (After all, one result of that article was a letter from six US senators demanding answers from the NRA about ServSafe by March 3.)

At any rate, the newest alternative to ServSafe comes from One Fair Wage. The program is Just.Safe.Food. and costs just $10. (As a reminder, ServSafe costs $15.)

For that $10, Just.Safe.Food. gives an individual three attempts to pass their exam and unlimited access to training materials. Additionally, One Fair Wage (OFW) says profits they raise from the program will go toward advocating for restaurant workers.

OFW, as many in the industry know, is owned and operated by restaurant workers. Two cornerstones of the organization’s mission are increasing the minimum wage, and ending the tip credit. OFW is also attempting to convince lawmakers to stop accepting donations from the NRA.

Basically, OFW and the NRA are—and it appears always have been—at odds with with one another.

Other ServSafe Alternatives

Before I list a few other alternatives, let me be clear: KRG Hospitality isn’t advocating for any food safety training program in particular. Operators and their team members will need to decide which program is best for them.

Whether that decision is based on employer requirements, state or local requirements, cost, ideology, or another reason makes no difference to us.

However, I will say that the more competent and comprehensive options there are, the better. Nobody should have a monopoly on food safety.

The key factor to consider is whether the particular state or county regulations are met by the program. If anyone is uncertain, they should reach out to their local health department before proceeding with any program. It’s likely the department only accepts food safety programs that are ANSI-certified.

That said, some alternatives to ServSafe are:

Operators and food-handler restaurant workers can also search for local programs that are accepted by their state/county.

Food Handler Requirements

Food safety isn’t, it turns out, universal throughout the US. Workers can be subject to state or county requirements. In some states, food handler certification is voluntary.

And then there are food safety manager regulations to consider, and those can also be state- or county-specific.

I can’t reiterate enough how important it is to know your state/county/local food handler requirements. As with many regulations, there are nuances and hospitality professionals need to know them.

Below, how different *states regulate food handler training.

State Requirements

  • Alabama
  • Alaska
  • California
  • Florida
  • Georgia
  • Hawaii
  • Illinois
  • North Carolina
  • Ohio
  • Oregon
  • South Carolina
  • Texas
  • Utah
  • Washington

County Requirements

  • Alabama
  • Arizona
  • Kansas
  • Kentucky
  • Missouri
  • Montana
  • Nebraska
  • Nevada
  • New Jersey
  • New Mexico
  • New York
  • North Dakota
  • Oklahoma
  • Virginia
  • West Virginia

Voluntary

  • Arkansas
  • Colorado
  • Connecticut
  • Delaware
  • Idaho
  • Indiana
  • Iowa
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • Mississippi
  • New Hampshire
  • North Carolina
  • Pennsylvania
  • Rhode Island
  • South Dakota
  • Tennessee
  • Wyoming

*This information is believed accurate at the time of publication. No warranty of accuracy is given.

Image: Pixabay on Pexels

by David Klemt David Klemt No Comments

Do Super Bowl Ads Work on Consumers?

Do Super Bowl Ads Work on Consumers?

by David Klemt

Pepsi Zero Sugar bottle

One of the biggest Super Bowl ad winners is Pepsi Zero Sugar.

Brands spent hundreds of millions of dollars to advertise during Super Bowl LVII, but do their ads actually translate to demand for their products?

A week ago we shared our ten favorite beverage-focused Big Game ads. Along with those ads we shared some numbers.

One of those numbers was $7 million, the cost of a 30-second Super Bowl ad on Fox. Other numbers? $500 million and $700 million, the range of revenue it’s estimated that Fox generated this year from Super Bowl ads.

At this point, these ads and the Halftime Show have essentially become their own entities. Some people watch the Big Game for the ads, some for the show halfway through. It stands to reason that brands are well aware of this development. So, they try to create the most impactful ad possible in the hopes of generating consumer demand.

In other words, these brands aren’t spending all this money just so they’re commercial can be deemed cool. Sure, brands want that buzz. But they also want an ROI on the millions they spend.

The big question is, then, are they seeing a return? Well, it just so happens that behavioral insight platform Veylinx has a data-driven answer to that question.

In short, the answer is yes. Of course, it’s a nuanced yes. For example, it appears Gen Z doesn’t care much about Super Bowl ads, as you’ll see below. Also, non-advertisers in the same categories as Super Bowl advertisers appear to see a benefit from the ads.

You’ll learn more from the Veylinx press release below. It’s an interesting read with valuable data for restaurant, bar, and hotel operators.

NEW YORK, Feb. 22, 2023 — A new study from behavioral research company Veylinx determined whether or not Super Bowl commercials boost consumer demand for the products advertised. The results show that 2023 Super Bowl advertising fueled a 6.4% increase in demand among viewers.

The overall increase in consumer demand was driven by women, who accounted for a 21% increase in demand growth. The commercials had minimal impact on men, yielding just 1% demand growth for the brands tested. Gen Z viewers were largely unimpressed by the Super Bowl ads, with demand among 18 to 25 year olds actually shrinking by 1%.

2023 Veylinx impact of Super Bowl ads on consumers chart

“It’s not really a surprise to see that Super Bowl ads improve sales, but the short term bump alone may not be enough to justify the $7 million price tag,” said Veylinx founder and CEO Anouar El Haji. 

Using Veylinx’s proprietary methodology—which measures actual demand rather than intent—the study tested purchase behavior during the week before the Super Bowl and again the week after. The research focused on measuring the change in consumer demand for eight brands with Super Bowl ads: Michelob Ultra, Heineken 0.0%, Hellmann’s Mayo, Downy Unstopables, Crown Royal Whisky, Frito-Lay PopCorners, Pringles and Pepsi Zero Sugar. 

Super Bowl Advertising Winners Overall

Michelob Ultra – 19% increase in demand

Pepsi Zero Sugar – 18% increase in demand

Frito-Lay PopCorners – 12% increase in demand

Heineken 0.0% – 11% increase in demand

Super Bowl Advertising Winners Among Women

Pepsi Zero Sugar – 45% increase in demand

Michelob Ultra – 40% increase in demand

Heineken 0.0% – 40% increase in demand

Crown Royal Whisky – 26% increase in demand

Veylinx, top performing brands during 2023 Super Bowl

Halo Effect for Non-Advertisers

The biggest winners were arguably brands in the same product categories as Super Bowl advertisers. Non-advertisers in those categories appeared to benefit nearly as much as the advertisers: demand grew by 4.2% percent for the study’s control group of non-advertising competitors. Corona Extra, Kraft Mayo and Lay’s STAX were the greatest beneficiaries in a control group that also included Budweiser Zero, Arm & Hammer Clean Scentsations, Canadian Club Whisky, Popchips, and Coke Zero Sugar. Notably, every non-advertiser saw at least a slight increase in post-Super Bowl demand.

“The goal of our study was to look specifically at how consumer demand is affected by running a commercial during the Super Bowl,” El Haji said. “It’s possible that the non-advertisers deployed other marketing efforts to offset or take advantage of the Super Bowl advertising—or they simply benefited from increased exposure for their categories.” 

Additional Findings

Study participants also answered a series of follow-up questions about their preferences, perceptions and how they watched the Super Bowl. More than three-quarters watched at home through various platforms, the most popular being the live cable/satellite broadcast (38%), followed by YouTube TV (15%) and Hulu (10%). When asked why they watched, it’s no surprise that participants were all about the game (64%)—but the commercials were the next most popular reason for watching (39%), followed by halftime (35%), the social aspect (26%) and fear of missing out (13%). 

About the Research

Veylinx studied the behavior of 1,610 U.S. consumers pre- and post- Super Bowl LVII. Unlike typical surveys where consumers are simply asked about their purchase intent, Veylinx measures whether consumers will pay for a product through a real bidding process. Consumers reveal their true willingness to pay by placing sealed bids on products and then answering follow-up questions.

For more information about the study and the Veylinx methodology, visit info.veylinx.com/super-bowl

About Veylinx

Veylinx is the most realistic behavioral insights platform for confidently answering critical business questions during all stages of product innovation. To reliably predict demand, Veylinx captures insights through a Nobel Prize-winning approach in which consumers have real skin in the game. This is a major advance from traditional market research practices that rely on what consumers say they would hypothetically buy. Veylinx’s unique research methodology is trusted by the world’s largest and most innovative consumer goods companies.

Main article image: PepsiCo / Article body images: Veylinx

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by David Klemt David Klemt No Comments

A New Challenger to the Margarita Emerges

A New Challenger to the Margarita Emerges

by David Klemt

Margarita Código 1530 Blanco

The simple, three-ingredient Margarita continues its longstanding reign on the cocktail throne but there’s now a new number two.

Technically, of course, we haven’t had hard numbers regarding the Margarita’s sales for decades upon decades. Nielsen has only been officially tracking this type of cocktail data since 2016.

However, it’s not difficult to understand that America has been in love with the Margarita for decades. In fact, the cocktail may have been sitting on the throne for 50 (or more) years.

Some cocktail historians believe the Margarita is a member of the Daisy drink family. These sours consist of a spirit, citrus, simple syrup, and soda. Depending on who you believe, the Margarita came to life in the 1930s or 1940s.

An orange liqueur (triple sec) replaced the simple syrup, the soda was sent packing, and tequila became the required spirit. By the 1950s, the Margarita was on its way to winning the cocktail game of thrones.

Over the decades, many variations have appeared on the scene. Undoubtedly, this has helped the cocktail continue its reign. Tourist destinations have also strengthened its position; just think about the ubiquity of Margarita machines and blenders in Las Vegas and New Orleans.

But the simple, original recipe is the still “the One.” Ask a bartender or bar manager how they gauge someone’s skills behind the bar. The answer much (if not most) of the time? How that person makes a Margarita.

There’s nowhere to hide when a cocktail has but two or three ingredients. That’s why so many bar professionals judge bartenders by their Margs.

A “New” Challenger Appears

Unsurprisingly, the Margarita proved to be the most popular cocktail in America in 2022.

In contrast, according to the CGA Cocktail Sales Tracker by Nielsen IQ, the Manhattan fell out of the top ten.

The Moscow Mule, which has been rising in popularity for several years now, was in second place last year. In third, the Martini.

Now, before I address the “new” challenger to the Margarita, a note. The four newsworthy cocktails in terms of CGA and Nielsen tracking all have names beginning with the letter “M.” Does that mean anything? I have no idea. Maybe someone can look into cocktail names and how their perceived by guests to find out if “M” drinks outperform others.

So, we’ve got the Margarita, the Moscow Mule, the Martini, and the Manhattan (although for a different reason). Is the Moscow Mule currently eyeing the Margarita’s position up close and personally?

According to CGA by NielsenIQ data, no. The Martini is now sitting in the number two spot. Interestingly, this may be due to the rise in popularity—yet again—of the Espresso Martini.

So, while your bar team is ensuring their Margarita specs are dialed in for National Margarita Day, don’t neglect your Martinis. (Particularly your Espresso Martini.)

By the way, National Margarita Day is this Wednesday, February 22. Make sure you’re ready to thrown down.

Oh, and if you ever feel like starting an argument at a bar, ask the bartenders for their Margarita and Martini specs.

Image: Mathew Benoit on Unsplash

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by David Klemt David Klemt No Comments

Infographic Shows Massive Tech Growth

Infographic Shows Massive Hospitality Industry Tech Growth

by David Klemt

White robot hand

An infographic from Brizo FoodMetrics puts the explosive growth of the hospitality industry technology landscape on display.

It appears that operators, once largely hesitant to embrace new technology, are seeking it out. So, too, it seems, are guests. Intriguingly, many guests expect restaurants, bars, and hotels to innovate technologically.

In a sign of this change, SpotOn is predicting 2023 to be the year when independent operators upgrade their POS systems.

And that’s just one area where tech companies are innovating for our industry. As their infographic shows, Brizo FoodMetrics identifies ten areas of innovation:

  • POS systems
  • Payment platforms
  • Online ordering solutions
  • Reservation and waitlist platforms
  • Inventory, accounting, and purchasing solutions
  • Human resources and staffing
  • Delivery, pickup, and drive-thru tech
  • Marketing, loyalty, and analytics platforms
  • Artificial intelligence, robotics, and automation
  • Ghost kitchen and virtual brand tech

Looking just at Brizo’s POS section, they list 48 platforms as part of their “2023 Restaurant Tech Landscape.” That’s four dozen POS systems, and that’s not even every platform available to operators.

Some will be familiar to operators—Toast, TouchBistro, Clover—as they’re basically synonymous with POS systems. Others, like Tillpoint and OVVI, may be less known. However, that doesn’t mean they’re not worthy of research and consideration.

Explosive Growth and Innovation

Again, the Brizo infographic doesn’t list every single available platform. For instance, I don’t see OpenSimSim under the HR/Staffing section. But the fact that there are still dozens of other platforms—more than in the POS section—shows that tech companies finally want their share of the hospitality pie.

This is, of course, beneficial for operators and their teams for several reasons. One such reason is innovation.

On one hand, the established platforms must innovate to fend off competitors. And on the other hand, upstarts must prove themselves to operators. In other words, new platforms must show they’re not vaporware; they have longevity and won’t abandon their own platform any time soon; they’ll update constantly; they’re simple to learn and use; they integrate with other systems; and that they’re worth an operator’s money and time.

We’re just two months into 2023. Imagine what the 2024 tech landscape is going to look like. And bear in mind, this is a restaurant-focused map—there are categories like property management systems for hotels that aren’t included.

If you’re in the market for a new POS system, want to upgrade scheduling, or are just curious about where the industry is heading, check out the infographic below. Select a few brands that are unfamiliar and look them up.

Brizo FoodMetrics 2023 Restaurant Tech Landscape

To view this infographic on the Brizo FoodMetrics website, click here.

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Image: Possessed Photography on Unsplash

by David Klemt David Klemt No Comments

Girl Scout Cookies take Cocktail Form

Girl Scout Cookies take Cocktail Form at Ocean Casino Resort

by David Klemt

Ocean Casino Resort Girl Scout Cookie cocktails

Beginning today, Girl Scout Cookies are undergoing an irresistible liquid transformation at Ocean Casino Resort in Atlantic City.

Guests of the casino and resort will have the opportunity to enjoy these decadent cocktails through March 15.

In addition to driving traffic and engagement, these LTO drinks are a charitable effort. One dollar from each sale of these cocktails will go to the Girl Scout Troops of Southern and Central New Jersey.

So, not only is this a promotion that leverages nostalgia, these drinks enhance the guest experience of both visitors and locals. Ocean guests from out of town get to try enticing LTO drinks. And locals can try a series of limited-run cocktails while supporting their own community.

At KRG Hospitality, we like this promotion for several reasons. First, Girl Scout Cookies. For adults, these are nostalgic treats. For children, Girl Scout Cookies are a special treat. And, of course, Girl Scout Cookie sales help Girl Scouts raise funds for their organization.

Second, this promotion runs for four full weeks. That’s 28 days of sales, which is 28 days of fundraising.

Third, the Ocean Casino Resort F&B and marketing teams continues to show off their marketing skills. Last year, Ocean celebrated the Choco Taco with a tempting cocktail after it’s demise was announced. And just days ago we took a look at their Big Game drinks.

Each of their cocktail promotions serve as an exemplary LTO. Operators across the country can look to these for inspiration in terms of boosting traffic and sales, enhancing the guest experience, and engaging with their local communities while enticing visitors.

Check out Ocean Casino Resort’s National Girl Scout Day cocktail recipes. Cheers!

Ocean Casino Resort Berry Chocolatey Girl Scout Cookie cocktail

Berry Chocolatey

  • 2 oz. Three Olives Vodka
  • 2 oz. Chambord
  • 2 oz. Chocolate liqueur (examples: Dorda, Godiva, Mozart)
  • Half chocolate rim to garnish

Prepare a coupe by rimming with chocolate syrup. Add all ingredients to a shaker with ice. Shake and strain into prepared glass.

Ocean Casino Resort Caramel Surprise Girl Scout Cookie cocktail

Caramel Surprise

  • 1.5 oz. Three Olives Vodka
  • 1 oz. Chocolate Liqueur (examples: Dorda, Godiva, Mozart)
  • 1.5 oz. Malibu
  • 1 oz. Half and Half
  • 1 bar spoon of Caramel syrup
  • Chocolate and caramel drizzle to garnish
  • Toasted coconut flakes to garnish

Prepare a Martini or cocktail glass by adding chocolate and caramel syrups to inside. Add first four ingredients to a shaker with ice. Shake and strain into prepared glass. Garnish with toasted coconut flakes.

Ocean Casino Resort Lemon Kiss Girl Scout Cookie cocktail

Lemon Kiss

  • 2 oz. Three Olives Vodka
  • 0.5 oz. Triple Sec
  • 1 oz. Fresh lemon juice
  • 1 oz. Simple syrup
  • Half sugar rim to garnish
  • Lemon wedge to garnish

Prepare a Martini or cocktail glass with half-rim of sugar. Add all ingredients to a shaker with ice. Shake and strain into prepared glass. Garnish with lemon wedge.

Ocean Casino Resort PB&B Girl Scout Cookie cocktail

PB&B

  • 2.5 oz. Skrewball Peanut Butter Whiskey
  • 0.5 oz. Crème de Cacao
  • 2 dashes Chocolate bitters
  • 1 dash Angostura bitters
  • Peanut Brittle laid across rim to garnish

Place a large ice cube inside a rocks glass. Add all liquid ingredients to prepared glass and stir. Garnish by laying a bite-size piece of peanut brittle across rim.

Images courtesy of Ocean Casino Resort

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Group of Senators Questions ServSafe

A Group of Senators has Questions About ServSafe

by David Klemt

Gloved hand pressing down on cheeseburger

You probably shouldn’t serve a cheeseburger directly onto a table.

The National Restaurant Association and the ServSafe program are now in the crosshairs of a group of Democratic senators.

I doubt any organization or individual wants to learn that lawmakers have questions for them. For those who may not know, ServSafe isn’t just in a partnership with the National Restaurant Association—the NRA owns the program.

That’s part of why six senators, led by Sen. Elizabeth Warren (D-MA), have sent a letter to the NRA. To describe the tone of this letter in one word, I think “aggressive” is accurate.

The Opening Paragraphs of the Letter

The letter, addressed to NRA president and CEO Michelle Korsmo, can be found here on Sen. Warren’s official website.

However, I’ve included the letter in its entirety below, without the citations of the original:

We are writing in response to a recent New York Times investigation which revealed that the National Restaurant Association (“Restaurant Association” or “Association”) is using millions of dollars in fees paid by food service workers for food safety training courses to instead, “largely unbeknown to [the workers]” – help “fund a nationwide lobbying campaign” against minimum wage increases that would raise these workers’ pay. The Times report revealed that the Restaurant Association, through its ownership of ubiquitous food safety certifier ServSafe, is charging food service employees for employer- or state-mandated courses and then funneling that money into its federal and state lobbying apparatus to fight against basic worker protections like paid sick leave and a livable minimum wage.

According to the report, payments from workers to the National Restaurant Association “provid[ed] about $25 million in revenue to the restaurant industry’s lobbying arm since 2010.” The Association’s use of workers’ food safety course payments – which are mandatory in some states and required by employers in others – is particularly outrageous because workers who take the course are not adequately informed of how their payments are used, and because the National Restaurant Association has, for decades, led the fight against increases in federal, state, and local minimum wages and improved health benefits.

As you can see, Sen. Warren wastes no time making the group’s displeasure known.

The NRA “Owes Workers” an Explanation

If you haven’t read the New York Times article about ServSafe published in January of this year, click here.

The exposé is eyeopening, to say the least. Sen. Warren and her Democrat colleagues appear to be infuriated by what the New York Times revealed about their ServSafe investigation.

You owe workers an answer as to why you are secretly using their funds to lobby against their interests. We are writing to seek clarity into the Association’s rationale for forcing workers to shoulder the cost of the ServSafe courses and for using the funds it collects to fight against pro- worker policies in Congress and state legislatures across the country. ServSafe, owned and administered by the National Restaurant Association, is a food and beverage safety training and certificate program that has become a staple of the food service industry. Upon entering the food service industry, many workers must pay a roughly $15 fee to take a ServSafe course and pass a final exam to receive their certification. To maintain their certification as recognized by the Association, non-managerial employees generally must retake the course every three years, though some states and employers may require more frequent recertification. The National Restaurant Association acquired ServSafe in 2007, and then “helped lobby states to mandate the kind of training they already provided — producing a flood of paying customers.” As a result, at least four large states (Texas, Florida, California, and Illinois) require most food service employees to participate in—and pay for—“food handler” certification, as do many employers in other states.10 While there are alternatives to ServSafe, it remains the “dominant force in the market,” with one competitor noting that ServSafe may have as much as 70 percent of the market share.

What most workers do not appear to know is that the fees they pay for their ServSafe courses are used to fund a sprawling anti-worker lobbying campaign aimed at defeating measures that would improve their own economic security and well-being. ServSafe “doubles as a fund-raising arm of the National Restaurant Association — the largest lobbying group for the food-service industry.” According to tax filings reviewed by the Times, the fees ServSafe collects—ostensibly for the purpose of educating workers about proper food safety practices—have instead provid[ed] about $25 million in revenue to the restaurant industry’s lobbying arm since 2010.” And as these fees “flowed in from the National Restaurant Association’s training programs, its overall spending on politics and lobbying more than doubled from 2007 to 2021, tax filings show.” The Association “donated to Democrats, Republicans and conservative-leaning think tanks, and sent hundreds of thousands of dollars to state restaurant associations to beef up their lobbying.

I’m curious, of course, about which politicians have received donations from the NRA. This letter is signed by Sens. Warren, Patty Murray, Jeffrey Merkley, Bernie Sanders, Edward Markey, and Peter Welch.

Have any of these senators accepted donations from the Association?

A “Secretive Fee-to-fundraising Scheme”

In this section of the letter, the group of Democrats drop some startling numbers. Additionally, the senators also attacks the Association’s ethics and tactics.

The National Restaurant Association has a lengthy track record of lobbying against federal, state, and local policy proposals to improve the lives of food service and other workers. From 2007 to 2022, the Association spent nearly $46 million on federal legislative lobbying alone. These funds, collected from food service workers across the country, were used to raise the Association’s profile as a “major force in limiting employer-provided health care benefits” and to fight against minimum wage increases. Most recently, the Association successfully fought against the Raise the Wage Act, which would increase the federal minimum wage to $15 per hour over five years and eliminate the subminimum wage of $2.13 per hour for tipped workers; and the Protecting the Right to Organize (PRO) Act, landmark pro-worker legislation that would shore up workers’ right to organize, form a union, and bargain collectively. The Association has also fought aggressively against state- and local-level minimum wage increase.

The National Restaurant Association’s secretive fee-to-fundraising scheme is particularly troublesome given the low pay and poor conditions faced by many of the workers from whom the Association is extracting the money to fund its lobbying machine. In 2018, more than 10 years into this scheme, roughly 40 percent of food service workers qualified as “low-income.” And tipped workers, who make up 98 percent of restaurant workers, are more likely to experience poverty due in part to the stagnant subminimum wage. Furthermore, people of color are disproportionately overrepresented in the food service industry: a March 2022 data brief from the National Restaurant Association itself noted that nearly half of restaurant and food service workers are people of color, compared to 38 percent in the broader labor force. Women make up more than half of the food service workforce, while immigrants make up nearly a quarter. Requiring these workers to fund advocacy for policies that keep their wages down and leave many of them in poverty is unconscionable.

The Questions

Below you’ll find the questions these senators have for the NRA concerning ServSafe.

The group of senators claims the NRA has weaponized ServSafe, referring to their actions as “underhanded and unscrupulous.”

They want answers to their questions by March 3 of this year.

  1. What is the cost to the National Restaurant Association, per program participant, of running the ServSafe program? What is the source of these funds to run the program?

  2. How much, in total annual revenue, did ServSafe take in in each of the last five calendar years?

  3. What s the ultimate disposition of the funds collected by the National Restaurant Association as fees for ServSafe courses? Specifically, how much was spent, in each of the last five calendar years, on:a. Lobbying at the federal level;b. Lobbying at the state level; andc. State and federal campaign contributions to candidates.

  4. Does the National Restaurant Association or ServSafe notify employees of how their ServSafe fees will be used?a. If so, when and how is that notification provided?b. Please provide copies of all documentation provided to ServSafe participants indicating how their fees will be used.

  5. Some food service workers have alleged that the ServSafe courses are a “rudimentary and cursory overview of basic hygiene and cleanliness that would be learned in the first few minutes of any actual employment,”26 raising questions about why the National Restaurant Association charges workers for the course at all. Please provide a copy of all instructional materials and examinations used as part of the ServSafe Food Handler course.

  6. In what states has the National Restaurant Association lobbied to make ServSafe certification mandatory for food service workers? In which states has the Association been successful in passing such a requirement? In which states has the Association lobbied to require ServSafe but been unsuccessful in passing such a requirement?a. How much has the Association spent in each calendar year starting in 2007 on lobbying at the state level to make ServSafe certification mandatory for food service workers?”

I think it’s fair to say that just about everyone in the industry is eager for the NRA’s answers. And also whether the ServSafe program will remain the standard moving forward.

Image: Manu Ros on Unsplash

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