F&B | KRG Hospitality

Two shot glasses garnished with salt rim and lemon wedges

November 24, 2021by David Klemt David Klemt No Comments

Thanksgiving Eve by the Numbers

Thanksgiving Eve by the Numbers

by David Klemt

Tonight, guests will be looking to celebrate a bar holiday that’s traditionally lucrative for operators: Thanksgiving Eve, a.k.a. Drinksgiving.

It’s difficult to imagine that any operator or hospitality worker is unaware of Thanksgiving Eve’s status.

Sure, some mark the start of end-of-year celebrations with Halloween or Thanksgiving. However, I feel Thanksgiving Eve truly ushers in the holiday season.

I’d also argue that while retailers have Black Friday and Cyber Monday, operators have the night before Thanksgiving. Yes, New Year’s Eve is also huge, but Thanksgiving Eve is considered the busiest night of the year for bars.

Interestingly, this is a holiday that benefits bars across the nation. In fact, it’s not exclusive to destination cities.

After all, the reason it’s so big, traditionally, is that people are traveling back to their hometowns. And while Thanksgiving is for their families, Thanksgiving Eve is for catching up with childhood and high school friends.

Obviously, there are fantastic bars located in cities outside of their destination counterparts. Hot take, I know.

So, does Thanksgiving Eve deserve its hype ?

The Evidence

Unfortunately, data from 2020 isn’t readily available, for obvious reasons.

However, we do have some data, largely thanks to restaurant management and POS platform Upserve.

One of the simplest ways to analyze Thanksgiving Eve’s impact is to compare it to the previous Wednesday.

Per Upserve, guest counts rose 23 percent in 2018 when compared to the Wednesday prior to Thanksgiving Eve.

Looking at data from more than 10,000 restaurants and bars, Upserve found that guest count totaled 496,883 on November 14, 2018. One week later, that number rose to 643,637.

As Upserve content marketing coordinator Stephanie Resendes says in her Thanksgiving Eve article, “More people = more money.”

Of the 10,000-plus Upserve clients whose data was analyzed, net sales were $17.250 million on the Wednesday preceding Thanksgiving Eve 2018. That number jumped to $22.296 million.

So, looking just at a relatively small sample size from 2018, Thanksgiving Eve’s impact doesn’t seem overblown.

The Drinks

According to Upserve, beer was the year-over-year winner through 2018. It saw the most growth by far on Thanksgiving Eve 2018 when compared to the Wednesday prior and the same period in 2017.

Spirits and wine, at least for Thanksgiving Eve 2018, were nearly tied for second place.

Now, looking at the data for Thanksgiving Eve 2019, spirits saw the most growth overall. Resendes shared that shot sales increased 173 percent on Thanksgiving Eve 2019 when compared to the Wednesday prior.

Tequila led the charge for spirits, rising 156 percent. Vodka saw a 144-percent boost, rum increased 120 percent, whiskey went up 65 percent, and gin saw a lift of 47 percent. For its part, beer sales rose 65 percent.

Not content to simply look at traffic and sales numbers, Upserve also split their clients into four regions. In this way, they identified who parties hardest on Thanksgiving Eve and who needs to ramp things up.

The four regions and their net sales growth from Thanksgiving Eve 2019 compared to the Wednesday prior are below:

Midwest: 34 percent
Northeast: 34 percent
South: 33 percent
West: 22 percent

Clearly, there was still growth in the Western region. However, the Midwest and Northeast led the way, with the South just behind them.

We’ll have to wait to see how Thanksgiving Eve 2021 plays out. We’re still waiting on the numbers from 2020. However, Upserve’s data shows that Thanksgiving Eve remains crucial to restaurants and bars throughout America.

Image: Alena Plotnikova on Unsplash

November 23, 2021by David Klemt David Klemt No Comments

Giving Tuesday: World Central Kitchen

Giving Tuesday: World Central Kitchen

by David Klemt

November 30 is Giving Tuesday, “a global generosity movement” that focuses on all acts of kindness and giving, large and small.

KRG Hospitality vice president Jennifer Radkey explains Giving Tuesday in-depth in her article from last week.

In her article, Jennifer puts forth ways to involve your business and staff in acts of kindness.

She also explains that November 30 is an opportunity for operators to give back. After all, communities supported restaurants and bars during the pandemic. Now’s the time to provide support for those communities.

All acts of kindness and generosity are encouraged on Giving Tuesday. Monetary donations, volunteering time, hosting charitable organizations free of charge… There are endless ways to participate in Giving Tuesday.

“In other words, it doesn’t matter how you give,” says Jennifer. It just matters that you take part.

World Central Kitchen

At KRG Hospitality, we support World Central Kitchen. Founded in 2010 by Chef José Andrés and his wife Patricia, WCK has been fighting food insecurity for nearly 12 years.

One reason we give to WCK is exemplified in an announcement from earlier this month.

World Central Kitchen is committing to providing $1 billion over the next ten years via their Climate Disaster Fund.

Another reason we give to World Central Kitchen? The 501(c)(3) non-profit gave more than $250 million in 2020 to feed communities around the world.

However, it’s WCK’s overall approach to fighting food insecurity is what we find compelling. The charitable organization doesn’t just show up to a community, hand out food, and leave.

Rather, WCK commits to long-term, local solutions. They create food programs to improve a community’s overall health; offer culinary training and provide jobs; and work to build food security.

If you have the means, please consider following this link to make a donation to World Central Kitchen. Per Charity Navigator, WCK enjoys the highest rating for a charity: four out of four stars.

Donations can be one-time or monthly, for any amount, and in someone’s honor or memory.

Image: Joel Muniz on Unsplash

Upscale tequila bar with luxury bottles on back bar

November 19, 2021by David Klemt David Klemt No Comments

Código 1530 Tequila Closes the Loop

Código 1530 Tequila Closes the Loop

by David Klemt

The evidence that consumers are showing increasing interest in luxury spirits continues to mount, with tequila benefiting greatly.

According to DISCUS, the luxury category of tequila continues to grow. Sales volume is up 30.7 percent annually since 2015 for luxury tequila brands.

While it’s easy to point to brand recognition, cache and perception, there may be another reason for this growth.

In a word, “responsibility.”

Sustainability is Sexy

Episode 57 of Bar Hacks features Collin De Laval. He’s the company mixologist for Código 1530 Tequila, and he’s intimately familiar with the brand.

So, De Laval knows more than every nuance of each Código 1530 expression. He also understands the ethos that drives the brand and its processes.

One of Código’s values is responsibility, which it manifests through sustainability efforts. As De Laval explains, “we try and close a lot of the waste loop, as much as we can.”

Not only does Código utilize naturally filtered water, they cut the water back out of their heads and tails. That water is then reused. The brand uses broken pieces of barrel and spent agave to char new barrels.

Further, Código is a small craft distiller. They don’t level thousands upon thousands of agave each day. Instead, they’re selective and take only what’s necessary.

“We’re treating the land a lot better in that way,” says De Laval.

These efforts are increasingly appealing to consumers. It’s not just the liquid in the bottle that matters. How that liquid got into the bottle is important to them.

“Now it’s like, ‘I know this brand. I know they do good stuff,'” De Laval says.

That “good stuff” doesn’t reference only the quality of the spirits but a brand’s responsibility and sustainability.

Drinking Better

“People are drinking ‘up’ now,” says De Laval. “Gone are the eras of, ‘Let me get whatever’s well.'”

He’s not talking about how a guest orders their drink. By “up” De Laval means they’re choosing top-shelf spirits.

Six years of steady growth for luxury or ultra-premium spirits supports this claim.

De Laval isn’t the only Bar Hacks guest who notices this trend. During episode 56, Pernod-Ricard Prestige sales manager Maxime Lecocq mentions the trend as well.

If luxury spirits and wines had suffered during the pandemic, that would’ve made sense. It could’ve been explained as people being cautious with their money.

Indeed, consumers were cautious. However, not in the way that many would assume. The numbers support the belief that consumers were spending more to drink higher-quality bottles.

Interestingly, drinking better doesn’t appear to refer only to quality or price. Many small, luxury craft distillers enjoy the perception as more responsible than large, industrial producers.

Drinking better now seems to mean drinking what’s better for the environment. And if what’s more responsible and sustainable happens to be ultra-premium, consumers are willing to pay for it.

Image: Spencer Pugh on Unsplash

Black glass Coca-Cola bottle with black background

November 16, 2021by David Klemt David Klemt No Comments

Stir Up This Authentic Mexican Cocktail

Stir Up This Authentic Mexican Cocktail

by David Klemt

A simple, three-ingredient cocktail can make a big impact on guests when it’s authentic and the build is part of the presentation.

A perfect example of authenticity and a wow-factor cocktail build is the Batanga.

During episode 57 of Bar Hacks, Collin De Laval recommends this deceptively simple drink.

La Batanga

When De Laval is creating, it’s important to him that he remains faithful to a particular country, region or town.

As the company mixologist for Código 1530, that means honoring tequila in an authentic way.

Not only is De Laval a “blanco drinker, through and through,” he’s also unafraid of things getting “rowdy.”

So, while he isn’t the creator of the Batanga, he is a big fan.

One reason, as he mentions on Bar Hacks, is that the drink seems like it shouldn’t work. After all, the recipe combines tequila blanco, lime juice, and Coca-Cola.

Now, one could say that this is “just” a Cuba Libre with tequila stepping in for rum. However, that’s far too dismissive; the flavor profiles are vastly different.

In fact, I’m fairly certain that nobody has raised an eyebrow at a Cuba Libre and said the ingredients shouldn’t work together.

Impactful Build

You may find yourself wondering how this simple cocktail can possibly wow guests. Really, what’s impressive about combining tequila, juice and cola, and stirring?

Well, it’s the stirring that’s the secret.

Per several sources, the Batanga’s creator had a trick up his sleeve when he came up with the recipe. And that trick was a big knife with a wood handle.

Don Javier Delgado Corona created the Batanga in 1961 at La Capilla, his bar in Tequila, Mexico. When it came time to finish his build, he stirred the drink with the aforementioned wood-handled knife.

Even better, Don Javier is reported to have explained, if that knife has been used to cut limes, salsa ingredients, or ingredients for guacamole.

I’m going to go out on a limb here and assume that unless they’ve had a Batanga made in Mexico, not many guests have watched a bartender stir their drink with a big knife.

Of course, not just any knife will have real impact, so I recommend using the biggest knife your highball or specialty glassware will accommodate.

The Recipe and Technique

Obviously, you can decide which of your tequilas to use when adding the Batanga to your menu.

Of course, you can also build it with whatever tequila your guest requests.

However, we’re going to use Código 1530 tequila for this recipe. After all, the brand certainly speaks to authenticity.

Additionally, Código 1530 also speaks to consumer desire to drink better and seek out ultra-premium spirits. Tequila is one of the luxury spirits categories benefitting most from this consumer trend, with sales volume increasing 30.7 percent annually since 2015.

La Batanga

Recipe created by Don Javier Delgado Corona at La Capilla

2 oz. Código 1530 Blanco
0.5 oz. Fresh-squeezed lime juice
Coca-Cola to top (per De Laval, only Mexican Coke in the glass bottle will do)
Salt for rim

Salt rim of highball glass or other tall glassware with decent width. Add ice to glass. Combine Código 1530 Blanco and lime juice. Top with cola. Most importantly, stir with a big knife and serve to wowed guest.

Image: Jeanson Wong on Unsplash

Black photo concept of red wine glass and bottle

November 15, 2021by David Klemt David Klemt No Comments

Go Big and Bold on National Zinfandel Day

Go Big and Bold on National Zinfandel Day

by David Klemt

Cabernet Sauvignon may be King of Grapes but Zinfandel certainly isn’t the court jester when it comes to wine.

No, it’s not one of the five Noble Grapes from Bordeaux. And yes, in Italy Zinfandel’s name is Primitivo, which translates to “primitive.”

But just because this red wine is often described as rustic doesn’t mean it’s basic.

National Zinfandel Day, which takes place Wednesday, November 17, is the perfect time to introduce Zin to your guests.

Zinfandel 101

While there are a few reasons Bordeaux doesn’t consider Zinfandel to be a Noble Grape, there’s one in particular that stands out: Zinfandel is an Italian grape. Well, sort of.

Basically, Zinfandel is grown in Italy and America. Intriguingly, however, the grape originates from Croatia. It’s original name is Tribidrag.

Another interesting note: Red Zinfandel only accounts for about 15 percent of overall Zin production. You’re probably already guessing which style accounts for the lion’s share: White Zinfandel.

Now, you can promote both styles of Zinfandel—that’s a decision you have to make. But for this article, I’m talking exclusively about Red Zinfandel.

This is for three reasons. First, White Zinfandel is best as a beginner wine. It’s light, it’s usually low in alcohol, and it’s not very complex.

Second, you can sell Red Zinfandel as a worthwhile alternative to Cabernet Sauvignon, the most popular wine in the world. Third, it’s delicious, full-bodied, and the ABV is often quite high.

A great Red Zin is jammy (like a big Cab), bold (like a big Cab), and velvety (like a big Cab). So, many of the Cab Sauv drinkers among your guests will be willing to try a medium- to full-bodied Red Zin.

This “rustic” wine also pairs well with pizza and barbecue. How can that ever be a bad thing?

Bottles of Note

Orin Swift 8 Years in the Desert (15.8% ABV), $50 SRP

It’s arguable that Red Zinfandel’s rise in popularity is due to it showing up in many red wine blends. Another factor? Winemaker Dave Phinney in particular utilizing this grape in his red blends. 8 Years in the Desert round in the mouth, providing drinkers with a decadent, lush wine drinking experience.

Bedrock Old Vine Zinfandel (14.4% ABV), $22 SRP

The 2019 vintage of Bedrock’s Old Vine Zin receives top marks from experts across the board. When it comes to American Zins, wine aficionados consider this Zin to be the gold standard.

Opolo Mountain Zinfandel (15.7% ABV), $30 SRP

For those guests who want to taste a straight-up, 100-percent Zinfandel. Opolo is one of the finest producers of American Zin. The 2019 vintage is velvety smooth even with it’s big alcohol content and bold, jammy flavors.

The Prisoner Wine Company Saldo (15.5% ABV), $32 SRP

You don’t have to be a wine aficionado to be familiar with The Prisoner Wine Company. In fact, The Prisoner, undoubtedly one of those most famous red wine blends in the world, helped shine a spotlight on Red Zinfandel. Saldo is a three-wine blend of Zinfandel, Petite Sirah, and Syrah.

Seghesio Old Vines Zinfandel (15.6% ABV), $36 SRP

Like Opolo, Seghesio produces big Zins that offer the drinker a balanced experience. Yes, the alcohol content is high but the mouthfeel is smooth and plush while delivering bold flavors. The mouthfeel may be soft but it’s certainly not shy on the palate.

Turley Old Vines Zinfandel (15.5% ABV), $40 SRP

So, there’s a debate over whether “Old Vine” or “Old Vines” has any official definition. In general, a grapevine matures some time between 12 and 25 years old. Some say that “Old Vine” is a designation that means more than 25 years old, at least 40 years old, or at least 50 or 60 years old. Well, it’s fair to say that Turley offers true “Old Vine” Zinfandel given that the producer’s grapevines range in age from 40-plus to nearly 130 years old.

Image: Mae Mu on Unsplash

Luxury concept featuring Champagne coupes on silver tray

November 12, 2021by David Klemt David Klemt No Comments

As Guests Learn More, Luxury Grows

As Guests Learn More, Luxury Grows

by David Klemt

Consumers are drinking better and the luxury categories of several spirits, wine and Champagne are benefitting.

Interestingly, this growth no longer appears to be driven solely by a desire to stand out and be seen.

Instead, according to one Bar Hacks podcast guest, consumers seem to be more carefully allocating their dollars.

Luxury Continues to Rise

The word “luxury” tends to conjure thoughts of expensive, high-end items.

Indeed, that’s certainly still a part of luxury. However, the concept of luxury as unattainable to most people is seemingly falling to the wayside.

Maxime Lecocq, Prestige sales manager in Las Vegas for Pernod-Ricard, shares a similar thought on episode 56 of Bar Hacks.

“The consumption style started to change during the pandemic,” says Lecocq. “So, people are more careful on what they’re drinking, where they’re spending their money.”

Intriguingly, Lecocq doesn’t mean that people were looking to spend as little as possible. Rather, they wanted higher quality for their dollars.

“Instead of having just any Scotch, they’re gonna research more,” Lecocq says. “Instead of spending, like, $25, they’re gonna be like, ‘Oh, I’m gonna spend $40 but I’m gonna be more careful about what I’m gonna drink.'”

As far as Lecocq is concerned, consumers doing more research is benefiting the luxury segment.

Why does he think that? Because it appears that research is leading consumers to spend more on luxury spirits and wine.

Numbers Support Luxury Growth

Early last month, Distilled Spirits Council of the United States (DISCUS) shared their research into luxury spirits.

DISCUS data shows that during the period from 2015 to 2020, luxury spirits brands saw sales growth of 125 percent. Further, looking at the first half of 2021, luxury spirits volume is up 25 percent.

For the curious, DISCUS considers any brand that sells 750mL bottles at retail for $50 or more to fall within the luxury segment. So, $10 more than the example Lecocq provides during his Bar Hacks appearance.

There are six luxury categories tracked by DISCUS: American whiskey, Cognac, Irish whiskey, Japanese whisky, Single Malt Scotch, and Tequila.

On his podcast episode, Lecocq discussed three of those categories: Cognac, Single Malt Scotch, and Tequila.

Growth Categories

Per DISCUS, American whiskey has seen annual growth since 2015 of 41 percent. For Japanese whisky, that rate of growth is 42 percent.

Irish whiskey and Single Malt Scotch are also healthy annual growth. However, Irish whiskey’s annual growth is only a third of that of its Japanese counterpart at 14-plus percent.

Single Malt Scotch, in the first half of 2021, is up 5.6 percent.

According to DISCUS, Cognac’s annual growth is nearly 16 percent. Lecocq posits that this rise in interest in Cognac is down to shifting consumer perception.

Once thought of as “your grandparents’ drink,” younger consumers are now more eager to explore this type of brandy.

It’s perhaps tequila that sees the most interesting growth. Given its explosive and seemingly unwavering popularity, I thought the luxury tequila category would see growth in excess of 42 percent.

However, per DISCUS, luxury tequila brands are up 30.7 percent annually since 2015. Obviously, that’s impressive growth, and the category represents 28 million bottles sold.

That’s more than American, Irish, Japanese and Single Malt Scotch whiskeys combined.

Of course, this doesn’t mean that operators should abandon their less expensive spirits and wines. It does, however, show that consumers are willing to pay more for what they perceive to be higher quality brands.

Image: Billy Huynh on Unsplash

November 2, 2021by David Klemt David Klemt No Comments

5 Books to Read this Month: November

5 Books to Read this Month: November

by David Klemt

This month’s fun and informative book selections will help you develop next-level culinary, beverage and leadership skills this November.

To review October’s book recommendations, click here.

Let’s dive in!

Cook as You Are

The Great British Baking Show contestant Ruby Tandoh is a food writer with a half-dozen books to her name. Her latest will likely change how you look at food and its preparation. In particular, the “mini” version of Cook as You Are aims to be as inclusive as possible. The free download makes it easier for people who learn differently or require assistance in the kitchen to enjoy cooking. Cook as You Are features 100 original recipes created by Tandoh that don’t require hours of preparation or professional-grade kitchen equipment to execute.

The Bullhearted Brand

Expert Joseph Szala explains why operators should view branding as a strategic endeavor. Branding is more than a clever name, eye-catching logo, and slick tagline. Szala, as he explains, “lay(s) out the foundational elements and details about creating and scaling restaurant brands” in The Bullhearted Brand, drawing from years of real-world experiences.

Bourbon’s Backroads

Bourbon is one of the few spirits that America can truly claim as its own. Myths and legend abound, such as the claim that whiskey can only be called bourbon if it’s produced in Bourbon County. Karl Raitz conducted extensive research to uncover the full history of bourbon in the United States for Bourbon’s Backroads.

Gilded Age Cocktails

Author Cecilia Tichi takes readers on a cocktail journey spanning three decades. The Gilded Age, which took place between 1870 and the early 1900s, is known as the Golden Age for cocktails. Readers will be able to learn the stories of not only classic Golden Age cocktails to pass on to others, but also the stories of their creators. Gilded Age Cocktails transports us back to the pre-Prohibition Era, a time when bartenders first became famous and helped us all drink better.

Hacking the New Normal

Doug Radkey, president of KRG Hospitality, author of Bar Hacks and Hacking the New Normal, makes the case for making meaningful, impactful change in order for the hospitality industry to survive and thrive moving forward. As he explains during bonus episodes of the Bar Hacks podcast, as have multiple podcast guests like Chef Brian Duffy, the industry won’t truly recover unless we change our mindsets and the way restaurants, bars, hotels, resorts, entertainment venues, and arenas operate and treat staff.

Image: Mikołaj on Unsplash

Stay Weird neon sign with purple background

November 1, 2021by David Klemt David Klemt No Comments

Stand Out with Weird Holidays: November

Stand Out with Weird Holidays: November

by David Klemt

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

Several “holidays” are set against every date on the calendar, and November is no exception. These holidays range from mainstream—Thanksgiving Eve and Thanksgiving, anyone?—to food-centric to weird.

Pay attention to the latter to raise eyebrows, carve out a niche for your restaurant or bar, and attract more guests. Why do what everyone else is already doing?

Of course, you shouldn’t try to celebrate every holiday, weird or otherwise. And this month’s list in no way includes every odd holiday.

Focus on the days that are authentic to your brand; resonate with your guests; and help you grab attention on social media.

For October’s list, click here.

November 1: World Vegan Day

Obviously, this holiday isn’t weird for vegans or vegetarians. There are, however, those who still find this particular diet odd. Well, this is the perfect holiday to learn more about vegan cooking and eating. Pass on that knowledge by adding delicious vegan dishes to your menu.

November 4: National Candy Day

Do you have a surplus of candy now that Halloween is over? Trying to fight the temptation to eat it all yourself? Various candies perform well as garnishes for cocktails. There’s also another way to approach this holiday, like featuring starters such as candied bacon.

November 6: National Nacho Day

So, this holiday is more fun than weird, really. However, you can probably see the potential to deviate from the standard nacho builds. Instead, ask your kitchen staff to get creative and come up with intriguing takes on nachos that will grab the attention of your guests.

November 9: National Scrapple Day

One of the best ways to cut back on food waste in restaurants, bars, and hotels is to utilize as much of a given ingredient as possible. Scrapple, of which our Philadelphia audience will no doubt be very well aware, consists of pork scraps. Guests outside of Pennsylvania may have never tried scrapple before, so this holiday is the perfect time to tempt them with a new taste sensation.

November 12: National Pizza with the Works Except Anchovies Day

It’s not this pizza that’s weird, of course. It’s the very specific pizza this holiday is celebrating. I’m guessing that you know exactly what to do to celebrate this holiday with your guests.

November 14: Pickle Day

The (in)famous Pickleback. Bloody Mary made with pickle juice. A Dill Pickle Martini. Pickle appetizers and starters. If you’ve got pickles and some degree of creativity, it’s pretty clear what needs to be done on November 14.

National 15: National Spicy Hermit Cookie Day

This is another very specific holiday. This cookie, the Spicy Hermit, features flavors that couldn’t be any more perfect for fall: cinnamon, clove, allspice, and nutmeg. You can Google a recipe, of course, but we found this one and it seems delicious.

November 17: National Take a Hike Day

We’re big fans of encouraging guests and staff to get outside. There are thousands of trails throughout the United States and Canada, ranging from the easy-peasy to the truly treacherous, so the sky’s the limit. Encourage guests to take a hike and grab a bite and drink at your establishment to rest and recover. Have them tag your spot and their meal, of course.

November 28: Red Planet Day

It seems like billionaires and millionaires can’t get enough of Mars. Over the past few years, space travel has focused almost exclusively on the idea of reaching the Red Planet and figuring out how to live on it. So, if you’ve got dishes and drinks that are predominantly red in color, put them at the forefront on November 28.

Image: Dan Parlante on Unsplash

October 27, 2021by David Klemt David Klemt No Comments

Sales Jump Shows Guests Will Pay More

Chipotle Sales Jump Shows Guests Will Pay More

by David Klemt

Chipotle’s latest earnings report may show that guests are willing to pay more at their favorite restaurants.

In Q3, the fast-casual giant’s net sales grew by nearly 22 percent. Per reports, same-store sales rose by just over 15 percent.

Is it possible that Chipotle’s earnings—which exceeded Wall Street estimates—indicate that guests will tolerate price hikes?

Rising Costs

No, it’s not a “hot take” to state the obvious: Everything is more expensive.

All operators and managers are aware that costs are rising across the board. Beef, chicken wings, cooking oils… Prices are increasing and the trend is expected to continue.

Not that any of us need a real-world example, but Chef Brian Duffy shared on episode 53 of the Bar Hacks episode that he now has to price a pound of chicken wings at $13.

One reason that Chipotle made the choice to raise prices comes down to rising beef prices. Another is increased freight costs.

As every armchair economist knows, when a business’ costs rise that increase falls on its customers.

The reason is fairly simple: If prices remain the same while costs rise, the situation becomes untenable, the business doesn’t generate enough revenue, and doors close.

So, Chipotle’s decision was simple. The fast-casual chain announced in June that menu prices would increase by about four percent to defray rising costs.

Rising Wages

Chipotle’s June announcement followed one the company made in May.

Six months ago, Chipotle announced the hourly wage for their restaurant workers would increase to $15 by June.

How did the company afford to raise hourly wages, offset ingredient costs, and deal with rising freight rates? The aforementioned menu price hike.

Now, Wall Street didn’t seem to anticipate backlash toward Chipotle for increasing their prices. However, plenty of other people have said—and still say—that customers won’t support restaurants or bars that raise prices.

It appears that a significant percentage of brand-loyal customers will remain loyal and continue to support the businesses they like even through price hikes.

Is This the Way?

I’ll address a crucial detail: Chipotle is a fast-casual brand valued at close to $52 billion.

They’ve got incredible brand recognition and tremendous purchasing power. Reportedly, there are 2,857 Chipotle locations in the United States. In fact, the company announced in February of this year that it planned to open 200 more locations this year.

So, no, there’s not a direct comparison to be made between Chipotle and an independent restaurant or bar.

However, that doesn’t mean there’s no lesson to be learned here.

Chipotle was transparent about the reasons for their price hikes. The Great Resignation has shined a spotlight on wages, and Chipotle addressed that concern.

The pandemic has also unleashed havoc on supply chains. Again, Chipotle was forthcoming about the challenges the company was facing.

Moving forward, it may be wise for restaurant and bar owners to address menu price increases. There does seem to be some level of understanding among the more rational guests out there that if they support increased wages for hospitality workers; understand supply chain challenges; and know costs are up for everything, they’re going to see price hikes.

You very likely need to raise at least some of your prices. When you do so, consider telling your guests why. You may be surprised by the support you receive.

Image: fancycrave1 from Pixabay

Array of craft beers arranged on a wooden board for sampling

October 22, 2021by David Klemt David Klemt No Comments

Here Comes National American Beer Day!

Raise a Glass to National American Beer Day!

by David Klemt

American beer drinkers, rejoice! National American Beer Day arrives on Thursday, October 27.

Celebrating America beer on this holiday, as you’re likely guessing, is fairly simple.

After all, the most important element of National America Beer Day is enjoying—*gasp!*—American beer. This is the holiday your beer program has been waiting for!

However, that begs an important question: Does America brew its own styles of beer?

German Beer Styles

People tend to most closely associate beer styles with Germany. And why shouldn’t they?

Just look at the beers Germany pioneered or otherwise made famous, not to mention Oktoberfest and German beer purity law:

Altbiers
Berliner Weisses
Bocks
Dunkels
Dunkelweizens
German Pilsners (It’s widely accepted that the Czech Republic invented Pilsner, also known as Bohemian Pilsner. German Pilsner is normally more bitter than Czech/Bohemian Pilsner, and a bit lighter-bodied. Also, remember that all Pilsners are Lagers.)
Goses
Hefeweizens
Kölsches
Lager (This is the most popular style of beer in the world. Depending on who you talk to, Britain, Bavaria, Germany or Austria invented the first lager.)
Märzens
Schwarzbiers
Weizenbocks

That’s a whole lotta beer styles, and that’s not even every style of beer credited to Germany. Therefore, it wouldn’t have been right to simply jump into American beer styles.

American Beer Styles

So, did German brewers leave anything for Americans to invent or make their own?

Of course they did! Americans have taken to beer brewing like macaroni takes to cheese (what? just go with it):

American Adjunct Lagers
American Amber Ales
American Blonde Ales, aka Golden Ales
American Brown Ales
American Hefeweizens, aka American Pale Wheat Ales
American Pale Ales, aka APAs
American Red Ales
American Stout
Cream Ales
Imperial Pilsners
Imperial Porter
India Pale Ales (Before you aim your pitchfork at me, I know the first IPAs were brewed in Britain. However, there’s no denying that the American craft beer scene has put their fingerprints all over this style with a vast array of substyles.)
Session IPAs
Steam Beers, aka California Commons (Of all styles, this is considered a wholly American creation.)

Now, before the beer snobs say that brewers in the US can’t just put “American” in front of an established beer style and claim it as their own, that’s really not what’s happening.

American brewers find inspiration in the “original” beer styles. That’s undeniable. That doesn’t mean they don’t innovate; American brewers have made some styles even more famous.

As stated above, a perfect example is the IPA. American IPA is a distinct style, differentiating itself from the original style. Additionally, it has been joined by Black IPA, Double IPA, White IPA, and other creative variations.

Celebrate National American Beer Day

Unlike debating who first brewed what beers, which countries should get to claim which beer styles, and what constitutes a unique beer style (should triple and quadruple IPAs be seen as actual styles?), celebrating National American Beer Day is simple.

At this restaurant and bar holiday’s core, all you have to do is showcase the American beers you have on offer.

If you want to go deeper, highlight the village, town, city or state each beer calls home.

And if you’d like to really go hard, pair them with uniquely American fare. Truly go HAM by pairing select beers with their hometown delicacies.

Make sure your draft lines and glasses are beer-clean and beer-ready, tap your guest database to send out marketing emails and texts, promote your celebration on social media, and let the beer flow.

Image: Meritt Thomas on Unsplash