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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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Top X Super Bowl LVII Beverage Ads

Top X Super Bowl LVII Beverage Ads

by David Klemt

Vintage red television set

As everyone knows by now, the commercials that air during the Super Bowl are nearly as big a draw as the game itself and its famous Halftime Show.

But before we get into the ads, congratulations to the 2023 Super Bowl champions, the Kansas City Chiefs!

Of course, we can’t help but feel a bit of a sting. With an office in the great city of Philadelphia, we were cheering on the Eagles.

However, I think Super Bowl LVII featured one of the best matchups in the championships recent history. Also, I feel confident in saying that I expect Jalen Hurts and the Philadelphia Eagles to fight there way to another Super Bowl in the near future.

Super Bowl Ads

Big Game ads are famous—perhaps infamous—in part because of the cost for a 30-second commercial.

Per reporting, the price of a Super Bowl LVII ad was set at $7 million. That’s double the cost in comparison to 2012. A 30-second commercial cost $3.5 million during Super Bowl 46.

In other words, brands spend huge dollars on Big Game commercials, with the price increasing each year. After doing some digging, I found that anywhere from 70 to 100 ads will run during the Super Bowl. Assuming $7 million per ad, that’s just shy of $500 million to $700 million in ad revenue.

Companies wouldn’t spend that kind of money if they didn’t expect a healthy ROI. In fact, if you sell any of the items below you may see a sales bump.

And if you don’t sell some of the products below, you may want to consider doing so. That’s why knowing your guests, collecting data, and listening to what guests would like to see on your menu are so important.

Sure, some guests are brand loyal and don’t want to try new products. But there are plenty who are easily influenced by ads and seek out the products they see on their screens.

Bud Light: “Hold: Easy to Drink, Easy to Enjoy”

This would be my favorite Super Bowl ad if Crown Royal’s “Thank You, Canada” commercial didn’t exist.

The ad below is a worthy runner up.

Busch Light: “Cold + Smooth Survival Skills”

Crown Royal: “Thank You, Canada”

Personally, this is my favorite of the Super Bowl LVII beverage ads. Given that KRG Hospitality’s global headquarters is located in Toronto, Ontario, this shouldn’t come as a surprise.

I have to wonder how many people’s heads exploded when Dave Grohl thanked Canada for basketball and football as North Americans know it.

Heineken 0.0: “Ant-Man and the Wasp: Quantumania”

Michelob Ultra: “New Members Day”

Michelob Ultra: “Full Swing Gossip”

Miller Lite vs. Coors Lite vs. Blue Moon: “The High Stakes Beer Ad (Extended Version)”

If John Wick weren’t a loyal bourbon drinker, he’d probably appreciate this commercial the most. Of course, that would require John Wick to be a real person…

Still, excellent fight choreography, and you have to love Blue Moon’s strategy.

Pepsi Zero Sugar: “Great Acting or Great Taste feat. Ben Stiller”

Pepsi Zero Sugar: “Great Acting or Great Taste feat. Steve Martin”

There you have ’em! Which ad is your favorite?

Image: Dave Weatherall on Unsplash

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Can ChatGPT Write Food and Drink Menus?

Can ChatGPT Write Food and Drink Menus?

by David Klemt

Closeup of keyboard

After my “conversation” last month with ChatGPT about AI, I had another conversation during which I asked it to write me four menus.

Of course, I did this to prove a point. And upon reviewing the ChatGPT menus, you’ll likely reach the same conclusion.

Curious about how creative the AI-powered chatbot could be, I asked for four specific menus. As you’ll see, two are cocktail specific, one focuses on food, and one is a 20-item F&B menu for a specific event.

So, yes, ChatGPT can write food and drink menus. But there’s a caveat. I could leave you in suspense but that’s not very nice. Let’s jump in.

Write me a cocktail menu using the most popular cocktails from 2022.

Cocktail Menu

  1. Aperol Spritz – Aperol, Prosecco, and soda water, garnished with an orange slice
  2. Old Fashioned – Bourbon, sugar, bitters, and a citrus peel
  3. Margarita – Tequila, triple sec, lime juice, and salt rim
  4. Daiquiri – Rum, lime juice, and simple syrup
  5. Moscow Mule – Vodka, ginger beer, and lime juice
  6. Paloma – Tequila, grapefruit juice, lime juice, and soda water
  7. Pina Colada – Rum, pineapple juice, coconut cream, and a cherry garnish
  8. Whiskey Sour – Bourbon, lemon juice, and simple syrup
  9. French 75 – Gin, Champagne, lemon juice, and simple syrup
  10. Mai Tai – Rum, orange liqueur, lime juice, and orgeat syrup

*All cocktails are served over ice, unless otherwise requested.

Write me a cocktail menu using the most popular spirits and alcohol types of 2022.

Cocktail Menu

  1. Gin and Tonic – Gin, tonic water, and a lime wedge
  2. Vodka Martini – Vodka, dry vermouth, and an olive garnish
  3. Bourbon Manhattan – Bourbon, sweet vermouth, and bitters
  4. Tequila Sunrise – Tequila, orange juice, and grenadine syrup
  5. Rum Runner – Rum, blackberry liqueur, orange juice, pineapple juice, and grenadine
  6. Whiskey Sour – Bourbon, lemon juice, and simple syrup
  7. Margarita – Tequila, triple sec, lime juice, and salt rim
  8. Daiquiri – Rum, lime juice, and simple syrup
  9. Long Island Iced Tea – Vodka, gin, rum, tequila, triple sec, lemon juice, and cola
  10. Pina Colada – Rum, pineapple juice, coconut cream, and a cherry garnish

*All cocktails are served over ice, unless otherwise requested.

Write me an appetizer and tapas menu that includes food items from an array of cuisines.

Appetizer and Tapas Menu

  1. Bruschetta – Grilled bread topped with fresh tomatoes, basil, and balsamic glaze
  2. Hummus Platter – Chickpea dip served with pita bread and fresh veggies
  3. Spring Rolls – Fried wonton wrappers filled with veggies and served with sweet chili sauce
  4. Spinach and Artichoke Dip – Creamy dip made with spinach, artichokes, and melted cheese, served with tortilla chips
  5. Stuffed Jalapeños – Jalapeño peppers stuffed with cream cheese and bacon
  6. Fried Calamari – Lightly battered and fried squid rings served with marinara sauce
  7. Baked Brie – Warm, gooey brie cheese topped with fruit preserves and served with crackers
  8. Fried Rice Balls – Rice mixed with veggies and spices, rolled into balls and fried, served with sweet and sour sauce
  9. Chorizo Sliders – Mini sliders made with spicy chorizo sausage and topped with avocado crema
  10. Samosas – Triangular-shaped pastries filled with spiced potatoes and peas, served with mint chutney.

*Please let us know of any dietary restrictions, and we will do our best to accommodate your needs.

Write me a food and beverage menu for the 2023 [Big Game] with ten food items and ten drinks.

[Big Game] 2023 Food and Beverage Menu

Food:

  1. Buffalo Wings – Crispy wings tossed in spicy Buffalo sauce
  2. Sliders – Mini burgers with various toppings, such as bacon and cheddar, mushroom and Swiss, and BBQ pulled pork
  3. Nachos – Tortilla chips topped with melted cheese, jalapeños, salsa, and sour cream
  4. Chili – Hearty beef chili served with shredded cheddar cheese, onions, and crackers
  5. Ribs – Slow-cooked BBQ ribs with a tangy sauce
  6. Mac & Cheese Bites – Fried balls of creamy mac & cheese
  7. Deviled Eggs – Hard-boiled eggs filled with a mixture of mayo, mustard, and spices
  8. Pizzas – Slices of delicious pizza in various toppings such as pepperoni, mushroom, and sausage
  9. Chips & Dip – Assorted chips served with guacamole, salsa, and queso dip
  10. Soft Pretzels – Warm, soft pretzels served with cheese dipping sauce

Drinks:

  1. Beer – A selection of domestic and imported beers
  2. Margaritas – Classic margaritas made with tequila, triple sec, and lime juice
  3. Bloody Mary – A spicy tomato and vodka-based drink with celery, olives, and other garnishes
  4. Hard Cider – A crisp, apple-based beverage
  5. Sodas – A variety of soft drinks, such as cola, lemon-lime, and root beer
  6. Whiskey Sours – A mixture of whiskey, lemon juice, and simple syrup
  7. Spiked Hot Cider – Warm apple cider with a splash of rum
  8. Red and White Wines – A selection of red and white wines to accompany any meal
  9. Iced Tea – Sweetened or unsweetened iced tea
  10. Coffee – Freshly brewed coffee, hot and ready to enjoy.

*Please drink responsibly and always have a designated driver.

Where Do You Stand on AI?

In my opinion, there are essentially four primary camps forming around the subject of artificial intelligence.

There are the Alarmists, the Enthusiasts, the Cautious, and the Shoulder Shruggers.

As my label implies, the Alarmists are fearful of AI. This group doesn’t like the genie being let out of its bottle. On the polar opposite, there are the Enthusiasts. This group can’t wait to see how far AI can go and what it’s fully capable of.

The Shoulder Shruggers basically have no opinion. They may even throw in an eye roll when the topic of AI comes around.

Then there’s the camp I most closely identify with: the Cautious. I don’t know enough about AI to be an Alarmist or an Enthusiast. Instead, I agree with points made by both of those camps.

Conclusion

Before I had my latest conversation with ChatGPT, I happened across a few interesting articles about the chatbot specifically and AI in general. A point each article shared was this: (for now), ChatGPT isn’t creative.

And that’s the caveat I mentioned at the top of this article.

Sure, it can scour the Internet for information in the blink of an eye, contextualize it (to a degree), and present it in a manner that seems intelligent. But really, neither ChatGPT nor other AI tools are capable of creative endeavors.

Now, consider the “menus” you just read. Unless your goal is to become a boring, regional chain bereft of personality and identity, not a single one is creative. In fact, they both consist of F&B items that any bartender, bar manager, chef, cook, or kitchen manager should know how to make, off-menu or on.

Simply put, these ChatGPT menus don’t provide much, if anything, in the way of brand identity.

That’s not to say that menus with the items above are “bad.” It’s just that they’re not enticing, not inspiring, not creative. They’re the definition of derivative. Why would today’s guest be drawn to a venue with those menus?

For now, I don’t think we need to be afraid of AI. Humans still rule the creativity roost. Oh, and please don’t use those AI-generated menus.

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Image: Christian Wiediger on Unsplash

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Rosa is Pink, Lowlands Agave is Blue

Rosa is Pink, Lowlands Agave is Blue…

by David Klemt

Código 1530 Rosa Tequila and cocktail

Código 1530 is proud to present Valentine’s Day cocktails from Travis Pentecost of Tu Madre and Abby Blanchard of Broken Shaker.

Even more relevant for Valentine’s Day, each of the tequila-forward four recipes below is made with Código 1530 Rosa Blanco. As you can tell from the bottle image above, Rosa Blanco is a rosé tequila.

This particular tequila’s characteristic comes from the aging process. As the name implies, Rosa begins life as a blanco. But after one month in uncharred Napa Valley Cabernet French White Oak wine barrels, the liquid takes on a pink hue.

Produced using lowlands Blue Weber Agave, Código 1530 is precise about Rosa Blanco’s aging time. Too short and the barrels wouldn’t influence the tequila. Longer than one month and the wine barrel flavors would overpower the agave.

Código 1530’s exacting production and aging techniques result in their signature blanco delivering soft red wine notes on the palate, and a subtly floral finish. Rosa’s aging process enhances Blanco’s rich and bright earthy, mineral, and citrus notes.

If you have guests who are tequila fans—particularly those who love blanco—Rosa Blanco is a great conversation starter and upsale.

Codigo 1530 Kisses and Roses cocktail

Kisses and Roses

recipe by Travis Pentecost (Tu Madre)

  • 1.5 oz. Código 1530 Rosa Blanco Tequila
  • 0.5 oz. Chinola
  • 1 oz. Fresh lime juice
  • 0.75 oz. Orgeat
  • 2 dashes Plum bitters
  • Lemon slice to garnish
  • Edible flower to garnish

Add all ingredients to a shaker and strain into a Collins glass. Garnish with lemon slice and edible flower.

Codigo 1530 Will You Cherry Me cocktail

Will You Cherry Me

recipe by Travis Pentecost (Tu Madre)

  • 1.5 oz. Código 1530 Rosa Blanco Tequila
  • 0.5 oz. St-Germain
  • 1 oz. Prickly Pear liqueur
  • 1 oz. Fresh lemon juice
  • 2 dashes Cherry bitters
  • Fresh mint leaves to garnish
  • Lemon slice to garnish
  • Edible flower to garnish

Add all ingredients to a shaker and strain into a cocktail glass. Garnish with fresh mint leaf “bouquet,” lemon slice, and edible flower.

Codigo 1530 Sandia Margarita cocktail

Sandia Margarita

recipe by Travis Pentecost (Tu Madre)

  • 2 oz. Código 1530 Rosa Blanco Tequila
  • 1 oz. Fresh watermelon juice
  • 1 oz. Fresh lime juice
  • 1 oz. Pina Agave
  • 2 dashes Peach bitters
  • Fresh mint leaves to garnish
  • Orange slice to garnish
  • Gummy watermelon candies to garnish
  • Edible flower to garnish
  • Salt for rim

Add all ingredients to a shaker and strain into a prepared cocktail glass. Garnish with “bouquet” of fresh mint leaves, orange slice, gummy watermelon candies, and edible flower.

Codigo 1530 You Up? cocktail

You Up?

recipe by Abby Blanchard (Broken Shaker)

  • 2 oz. Código 1530 Rosa Blanco Tequila
  • 1 oz. Fresh lime juice
  • 0.75 oz. Simple Syrup
  • 3 Raspberries, muddled
  • Raspberries to garnish
  • Raspberry gummy candy to garnish (optional)
  • Edible flower to garnish (optional)

Add all ingredients to a shaker and strain into a cocktail glass. Garnish with raspberries. Optional garnishes: addition of raspberry gummy candy and/or edible flower

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Images: Código 1530

Disclaimer: Neither the author nor KRG Hospitality received compensation, monetary or otherwise, from Volley or any other entity in exchange for this post.

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Ocean Casino Resort’s Big Game Cocktails

Ocean Casino Resort Offers Big Game Cocktails

by David Klemt

Group of Big Game cocktails at Ocean Casino Resort

Ocean Casino Resort, Atlantic City’s award-winning oceanfront casino and resort, is ready for the Big Game with four cocktails that team with the theme.

Now, by “Big Game,” we all know what I’m talking about. We know the sport, we the know the league, and we know precisely which game is under discussion.

However, due to very “enthusiastic” attorneys, we also have to talk like we’re spies or actors in a mob movie. We wouldn’t want to tempt anyone to file a lawsuit now, would we?

And I’m going to encourage you to continue following this childish way of speaking about the Big Game. When you’re promoting your Sunday, February 12 event, don’t use any trademarked terms, logos, images, etc.

Alright, the Big Game legalese is out of the way. Let’s talk themed cocktails!

Big Game Cocktail Inspiration

Midway through last year, Ocean Casino Resort showed us all their marketing prowess. When news of the Choco Taco’s demise made headlines, Ocean created a cocktail homage: the Chocotini.

To ensure the LTO could be enjoyed by most guests, the cocktail was available at four venues on the property.

Now, Ocean Casino Resort is tackling the Big Game. (Note: I’m legally required to include sports puns when writing about any major game.)

Guests have four specialty LTO cocktails from which to choose. Two representing the team from Philadelphia, two for the team in Kansas City. Each drink is available at venues throughout the casino resort, including their Topgolf Swing Suite (largest in America), Nola’s Bar & Lounge, and the Gallery Bar Book & Games.

In news that should appeal to you and your bar team, these drinks are quick to make. That’s a relief when you plan to be slammed on a particular day.

Of course, you don’t have to attempt to replicate these cocktails. They serve as excellent inspiration to motivate you and your team to come up with your own liquid homages and LTOs.

In case you’re wondering what to charge, Ocean is charging $14 each for the Brotherly Love, Hurts So Good, and Big Red cocktails. The Arrowhead carries a price tag of $15.

Ocean Casino Resort Philadelphia cocktails

Philadelphia

Ocean Casino Resort Brotherly Love cocktail

Brotherly Love

  • 1 oz. Vodka
  • 1 oz. Midori
  • 0.5 oz. Lemon juice
  • 0.5 oz. Lime juice
  • Club soda to top
  • Lime wedge or wheel to garnish

You and your bar team can build this cocktail in a rocks glass. Add ice, then add the first four ingredients. Top with club soda and garnish with a lime wedge or lime wheel.

Ocean Casino Resort Hurts So Good cocktail

Hurts So Good

  • 2 oz. Dark rum
  • 4 oz. Ginger beer
  • Lime to garnish

Another simple cocktail that you can make in the glass. Grab a Collins glass and add ice. Add the dark rum, then add and top with ginger beer. Garnish with a lime wedge and lime wheel, then serve. If this sounds like a Dark ‘n’ Stormy, that’s because it is one. And like the Big Game’s actual trademark name, be careful using that drink name for legal reasons.

Ocean Casino Resort Kansas City cocktails

Kansas City

Ocean Casino Resort Big Red cocktail

Big Red

  • 1 oz. Fresh lime juice
  • 2 oz. Silver tequila
  • 2 oz. Pomegranate juice
  • 0.75 oz. Triple sec
  • 0.75 oz. Simple syrup
  • Lime to garnish
  • Cherry to garnish
  • Salt, cinnamon blend, or spicy salt blend to rim (get creative!)

Prepare a Martini or cocktail glass by adding a rim. This can be a simple salt rim, a cinnamon blend rim, a spicy salt mixture, or even a barbecue seasoning-style rim. Opt for chilling these glasses ahead of time if you prefer. Add ice and then the first five ingredients to a shaker. Shake until well chilled, then strain into the prepared glass. Garnish with a lime wedge or lime wheel, plus a cherry.

Ocean Casino Resort The Arrowhead cocktail

The Arrowhead

  • 1.5 oz. Rye whiskey
  • 4 oz. Ginger beer
  • 4 dashes Angostura bitters
  • 1 squeeze of Lemon juice
  • Lemon wedge or wheel to garnish

Prepare a Collins glass by adding ice. Add each ingredient, garnish with lemon wedge or wheel, and serve.

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Images courtesy of Oceans Casino Resort

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5 Books to Read this Month: February 2023

5 Books to Read this Month: February 2023

by David Klemt

Flipping through an open book

This month’s engaging and informative book selections will help you hone your culinary, beverage, and operational skills to dial in your business.

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

Let’s jump in!

Cheers!: Cocktails & Toasts to Celebrate Every Day of the Year

As long-time KRG Hospitality readers know, we enjoy helping operators and their teams program around unique holidays. This book takes a similar approach to restaurant and bar promotions.

Philip Greene’s Cheers! suggests a specific drink and toast for each day on the calendar. There are, of course, the mainstream holidays each month. But like us, Greene also focuses on lesser-known holidays. With consumer behavior shifting toward occasion-based drinking, this book can certainly come in handy.

In the Weeds: Around the World and Behind the Scenes with Anthony Bourdain

Last year, In the Weeds was nominated for the 2022 BookTube Prize in Nonfiction. It’s understandable why this book was given such a nod: it takes the reader behind the scenes with Chef Anthony Bourdain.

“From the outside, the job looked like an all-expenses-paid adventure to places like Borneo, Vietnam, Iran, the Democratic Republic of Congo, and Libya. What happened off-camera was far more interesting than what made it to air. The more things went wrong, the better it was for the show. Fortunately, everything fell apart constantly.” Grab this book now on Amazon.

Meehan’s Bartender Manual

There are certain books that people in this industry simply need to read. Meehan’s Bartender Manual—written by bartender, educator and author Jim Meehan—is one such tome.

This award-winning book is a must-read for all bar professionals, whether you own a bar, work behind a bar, or are a server. Not only will you find 100 recipes in Meehan’s Bartender Manual, you’ll learn about bartender techniques, service, hospitality, and bar design. Pick it up today!

Setting the Table: The Transforming Power of Hospitality in Business

Much like Meehan’s Bartender Manual is a must-read for bar owners and bar teams, Setting the Table is required reading for restaurant owners and teams.

Restaurateur and chef Danny Meyer shares the lessons he has learned that helped him survive and thrive in a challenging industry. Certainly, our industry is changing. But there are still lessons to be learned when we look into our recent past.

Dare to Lead: Brave Work. Tough Conversations. Whole Hearts.

To say Brené Brown is an expert in leadership is an understatement. The professor, researcher, educator, and author has been teaching about leadership for years.

Brown’s 2018 book Dare to Lead focuses, in part, on two crucial keys of true leadership. One is taking personal responsibility. The second is how to recognize potential in others. Without these two elements, becoming an effective leader is essentially impossible. Pick up Dare to Lead on Amazon today.

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Program for Unique Holidays: February 2023

Program for Unique Holidays: February 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 February 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 January 2023 holidays list, click here.

February 6: Pride In Foodservice Week

I’m not gonna lie: This is the first I’ve heard of this week-long celebration of foodservice. That’s fairly embarrassing given that this holiday dates back to 1991.

As you’re probably assuming, Pride in Foodservice Week celebrates foodservice professionals. So, highlight your team on social media (with their approval, of course); do something special to show your team you appreciate them; and find a way to celebrate the foodservice pros that visit your restaurant, bar, or hotel this week.

February 7: National Fettuccine Alfredo Day

Is this holiday unusual? No. Is Fettuccine Alfredo in any way bizarre? Of course not.

But you can certainly tap your kitchen team to do something unexpected with this classic dish. Stuff bao buns or dumplings with Fettuccine Alfredo. Create deep-fried Fettuccine Alfredo bites. Find a way to serve it on a stick. Just get creative and own this food holiday.

February 8: Kite Flying Day

Now, I’m not expecting you to somehow create a promotion around actually flying kites. Although, if you have the space and resources, go for it.

Instead, consider focusing on a particular cocktail, like the Plastic Kite or Paper Plane. Is a paper plane a kite? It can be if it’s designed as one, so the cocktail should be fair game on this holiday.

February 10: National Umbrella Day

North America has been slammed by freezing weather and brutal storms. Your guests can probably use an escape from the cold temperatures.

One excellent way for them to transport themselves elsewhere (at least in their minds) is tropical drinks. And tropical drinks tend to be served with the iconic cocktail umbrella. You know what to do: Perfect your tiki or nautical cocktail recipes, create an LTO menu, and draw in your guests.

February 15: National Flag of Canada Day

There’s nothing weird about the Canadian Flag. In fact, it’s one of the most iconic and instantly recognizable flags on the planet.

So, this is your day to celebrate Canadian spirits, beer, and food whether you operate in Canada or anywhere else. Tap your reps, get your hands on Canadian spirits and beer, focus on a few Canadian delicacies, and put together a mouth-watering LTO F&B menu.

February 18: National Crab Stuffed Flounder Day

To be clear, I’m including this holiday because it’s so specific. Obviously, this calls for an LTO or special based on one dish. I’ll give you one guess which dish it is.

February 20: Hoodie Hoo Day

If you’re somewhere it won’t bother too many people, I want you to do me a favor. I want you to yell, “Hoodie hoo!” Did you do it? Did it put a smile on your face?

It’s basically impossible to yell those two little words and not be happy afterward. Well, that’s the whole point of this holiday: happiness. We could all use a dose of happy these days, and this holiday can certainly provide it.

February 25: World Sword Swallowers Day

There are a couple ways to celebrate World Sword Swallowers Day. But for the love of your bottom line, don’t let any of your guests attempt to swallow any swords, cocktail or otherwise!

Instead, dig into the recipe books and find some classics just look right with garnishes skewered by cocktail swords. Or, serve up the Swinging Sword cocktail by Buchanan’s:

  • 1.5 oz. Buchanan’s 18-Year-Old Special Reserve Blended Scotch
  • 0.75 oz. Fresh squeezed orange juice
  • 0.5 oz. Fresh squeezed lemon juice
  • 0.5 oz. Grenadine
  • Fresh mint sprig for garnish

Add ice and all liquid ingredients to a shaker. Shake well, strain into a coupe, garnish, and serve.

February 27: Telecommuter Appreciation Week

This is another week-long holiday I didn’t know existed. And again, it’s not new—this holiday was first celebrated in 1993.

However, I think it’s more relevant than ever. Rather than encouraging people to work from home on this holiday, celebrate your WFH guests. If your WiFi can handle it, encourage your guests to work from your restaurant, bar, or hotel. And make sure to create LTO food and drink menus to incentivize to do so.

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Image: Ivan Bertolazzi on Pexels

by David Klemt David Klemt No Comments

4 Takeaways from Resy’s State of Dining

4 Takeaways from Resy’s State of Dining Report

by David Klemt

Guests enjoying an array of dishes at a restaurant

The State of Dining and What’s To Come in 2023 from Resy is an informative report that highlights several key developments to watch this year.

In fact, Resy’s report shines a light on ten trends and predictions for operators to consider. However, I’m going to address the four that stand out the most (to me).

For those who may be unfamiliar with Resy, the company is an online reservation platform. While Resy mostly serves major American cities, it does have a presence in Toronto, Canada, and London, UK.

Most importantly, the platform has a unique view of the industry. Resy looks at the industry through the lens of reservations, meaning they collect data concerning consumer behavior in real time.

So, let’s start with some compelling revelations based on reservation data. To view this report in its entirety, visit Resy via this link.

1. 5:00 PM

According to Resy, one reservation time is standing out from the rest. In comparison to 2019 and 2021, 5:00 PM reservations grew by two percent in 2022.

Now, two percent may seem like insignificant growth. However, given Resy’s reach and the platform’s number of active users, the opposite is true.

A two percent increase equates to hundreds of thousands of reservations.

Now, think about your restaurant or bar and consider your reservation distribution. Do you know which hour sees the most reservations? Not an assumption—do you have the data and therefore know the time?

If not, that’s information you need. Not only is this important for scheduling and controlling costs, it’s the benchmark you need to know if you have any chance of tracking change.

2. The Return of In-person Dining

This is one prediction that multiple industry (and even non-industry) publications are making for 2023. It’s the same for hospitality industry platforms: Companies see 2023 as the year restaurants and bars really come roaring back.

But when Resy makes this prediction, they’re using their reservation data to back it up.

First, last summer represents the single busiest season in the platform’s nine-year history. Second, a specific event, a dinner with chef-operator Massimo Bottura, sold out via Resy in a minute.

Third, October 2022. Why is this month worth pointing out in particular? By October, more Resy users had visited restaurants in 2022 than they had during the entirety of 2021.

Clearly, Resy expects this trend to continue and strengthen in 2023. Given their access to reservation data, this seems like a well-informed prediction.

3. Miami

In December of last year we checked out the best states in America for starting a business. Pennsylvania stood out to us for obvious reasons: our Northeastern office is in Philadelphia, with Kim Richardson at the helm.

Overall, Pennsylvania holds the number four spot on the Forbes list. For comparison, Florida slots in at number 45.

However, Miami appears to be an outlier for restaurant and bar entrepreneurs when it comes to Florida.

Per Resy, the restaurant footprint in Miami grew fourfold from 2017 to 2022. Moreover, Resy is seeing continuous growth in Miami. Going even further, this growth is coming from local and outside operators.

In fact, Resy describes South Florida as “white hot for high-profile sequels.” An operator has a top-tier concept? They’re likely to expand into Miami.

4. TikTok

Last week I addressed Datassential weighing in on photos versus videos. According to the F&B research firm, video is now dominating social media engagement.

And also last week, I explained the importance of discovery functionality. Operators who are considering adding a platform to their tech stack should consider whether it will help people discover their restaurant, bar, or hotel.

Resy is a platform that doesn’t just offer discoverability, it’s a core feature. So, when they say that TikTok appears to be a powerful discovery tool for restaurants and bars, that’s likely true.

Now, a poll Resy cites in their report reveals that traditional word of mouth is the top method of discovery. However, the same poll cites that TikTok is the top discovery platform for 43 percent of Gen Zers. Or, in other words, video, or digital word of mouth.

Should operators jump on TikTok? That’s something only individuals can determine is good for their business.

But if they’re courting Gen Z, well…they may need to add TikTok to their social media toolbox.

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Image: Meredith Jenks for Resy

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Chief Marketing Officer Joins SevenRooms

Chief Marketing Officer Joins SevenRooms

by David Klemt

"The only way is up" sign

Just weeks after revealing a new partnership to start 2023, SevenRooms is now announcing their first-ever chief marketing officer.

Today, the guest retention platform takes another massive step in their march toward continuous growth. Josh Todd, former CMO of Mindbody, will serve as CMO of SevenRooms moving forward.

“Over the past year, I was able to get to know Joel and the SevenRooms team and see the differences they are making across the hospitality industry through data and insights,” says Todd. “Throughout my career, I have been passionate about deepening the human connections and experiences within the industries I’ve worked in, and I immediately recognized that SevenRooms truly embodies the operator-first mentality, making this a natural move for me. I’m honored to join the team and look forward to bringing my expertise and storytelling to the table.”

Todd’s appointment to CMO is yet another example of SevenRooms’ seemingly unstoppable growth. Each year, the platform strategizes, analyzes how their moves can benefit operators, and expands while streamlining.

It’s this growth that shows operators they’re here to serve the industry for the foreseeable future. And it’s this growth that should make operators confident about implementing SevenRooms in their tech stacks.

“As we head towards the next growth stage for SevenRooms, we are thrilled to welcome an experienced, proven leader in Josh to the team,” says Joel Montaniel, CEO and co-founder of SevenRooms. “Josh is a true full-stack marketer, highly analytical, and brings a strong point of view on what drives successful marketing organizations… With a background rooted in doing what’s best for operators and a true passion for bringing incredible experiences to life, we know his customer-centric approach will help propel us into the future.”

Continual Growth

In March 2021, SevenRooms appointed Pamela Martinez as the company’s chief financial officer.

By September of the same year, the platform had entered into a multi-year partnership with TheFork. This was significant news for operators throughout Europe and Australia. Additionally, this partnership illustrated how SevenRooms is pursuing global growth.

A month later, in October of 2021, the company formed a partnership with Olo. With this move, SevenRooms ensured clients who also use Olo were able to capture a key group’s data: off-premise customers. Using that information, profiles for those customers are created automatically. That means operators can learn more about—and effectively market to—customers who engage with them via online orders.

Then in December 2021, SevenRooms and ThinkFoodGroup—the hospitality company behind Chef José Andrés’ portfolio of restaurants—publicized their partnership. Interestingly, this partnership also saw ThinkFoodGroup joining SevenRooms in an advisory role.

To kick things off in 2022, the platform announced the hiring of a chief revenue officer, Brent-Stig Kraus.

Oh, and just weeks ago, to ring in 2023, SevenRooms entered into a partnership with Competitive Social Ventures.

Of course, not all of SevenRooms’ growth over the past few years involves crucial C-suite roles and entering into partnerships. While those moves benefit operators and our industry, there are other developments worth noting.

Along with hiring Martinez as CFO, the platform launched Direct Delivery in March 2021. This online ordering solution makes it easier for operators eliminate third-party fees; maintain control of the guest data they collect; and fulfill the guest desire to order from restaurants directly and effortlessly.

Image: Nick Fewings on Unsplash

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Focus: See Your Business for the Trees

Focus: See Your Business for the Trees

by Jennifer Radkey

Trees along forest path

It happens to us all: Sometimes we get so caught up in the small details of our day-to-day lives that we fail to see the bigger picture.

So common is this element of the human experience there’s a popular saying about it: “Sometimes it’s hard to see the forest through the trees.”

Today, however, I’m going to suggest that the opposite can also be true: “Sometimes it’s hard to see the trees when immersed in the forest.” In other words, when walking along the same path in a forest every day, we often stop seeing the individual trees.

Okay, forests and trees, nature and walks along paths—what does any of this have to do with operating a successful restaurant, bar, or hotel? Stick with me.

The forest is your venue. Your path is your daily routine from the minute you step into your venue until the minute you walk out the door at the end of your day.

The trees? They’re all the little details that make up your establishment: your team, the signage, tables and chairs, music playing, lighting, decor, food, drinks, website, online reviews, social media posts… These, plus many more, are the little things that add up to create your “forest.”

You walk through your venue daily and have become, for the most part, so used to your surroundings that you’re almost blind to them. This can sometimes lead to a false sense of everything being “fine.” You miss small details you need to improve, and also things that you and your team need to celebrate.

What I would like to challenge you to do is to take a step back, clear your mind, pretend you’re experiencing your venue for the very first time, and really notice the details. Walk a new path through your forest and see the trees.

How do you do that? Pretend you’re a guest visiting your establishment and follow the guest journey.

Here’s a list of five places you should stop along your path to gain a fresh perspective.

Your Online Presence

Start with your website.

When did you last update it? Are pictures fresh and eye-catching? Is the website easy to navigate on mobile devices? Is the menu easy to access? Can you make a reservation easily? What story is your website telling?

Next, scroll through your social media (if it exists).

When did you post last? What content are you sharing? Does it tell a story? Does it make you want to visit your venue? Are people engaging with your content? Are you engaging with others?

How about online reviews? See what people are saying about you.

Have you responded to reviews, good and bad? How are you responding? If you were a potential new guest would these reviews and your responses keep you away or entice you to visit?

More often than not, the first impression a guest has of your business happens long before they actually step foot inside your venue for the first time. What impression are you giving them?

Curb Appeal

The next place you want to stop on your path is right in front of your venue.

As you drive up, what do you notice? What’s the condition of your signage? Is it welcoming and attention-grabbing?

When walking up to the entrance, look for things that you may overlook but a first-time guest may not. Cleanliness of the front entrance area, proper lighting, current signage, these should all be checkpoints on your list.

Also, how does it feel to enter your venue? Is it welcoming? Exciting? Does it feel safe?

If you have stellar curb appeal with awesome signage are you celebrating and promoting it through great photos for your website and social media?

These are all things to consider when viewing your venue from the curb.

Interior

Next up on your path is the interior of your venue.

Is it clean? Are there any minor repairs that need to be done? Is the lighting just right?

Have a seat in a few different places in your venue. What’s your customer’s visual experience when they come to visit you?

You want the interior of your venue to represent your brand and its values, and you want it to appeal to your target market. Is it doing those things?

Again, if you have an amazing interior design element, are you showcasing it to its fullest in person and online? Make any notes of things you would like to change or improve upon.

One more note on the interior: Do not forget the washrooms. Nothing turns a visit into an unpleasant experience faster than an unclean washroom.

Service

As you’re viewing your venue with clarity, take a few minutes to step back and watch how your staff engages with your guests.

Whatever your brand’s values are for the guest experience, are they being conveyed through your staff’s engagement?

If you’re promoting a fun, energetic vibe, is your staff upbeat, positive, and energized when communicating with guests? Are the pillars of excellent customer service in place? When your guest leaves are they going to say, “Wow, our server was so friendly/nice/funny/knowledgeable,” etc.

Or are they going to leave saying nothing at all?

If staff appear unmotivated, what can you do to help inspire your team? If they’re stellar employees are you recognizing their incredible work?

Food and Drink

When was the last time you sat and really enjoyed a meal at your own establishment? Before you answer: As if you were a guest and not the owner.

Is food coming out in a timely manner? How does it look, smell, and, of course, taste?

Would you grab for your phone before taking the first sip or bite to snap a photo for Instagram? If you would, have you done exactly that for your own social media feeds?

As an owner you can become very attached to your menu, but pay attention to see if your guests and staff are raving about your food and drink.

Final Steps

The final steps of your path will be the same as your guest’s final steps.

Is your bill brought to the table when you’re ready to leave? Is payment easy to make? What are the final last impressions you’re left with? How is your team bidding farewell to guests? What will entice them to return?

You want your guests to feel satisfied and to tell their friends and family about what an amazing experience they had.

It can feel strange to step back from the forest and to notice the trees, but it will lead to improved clarity and perhaps even a roadmap for change and improvements to take your hospitality venue to the next level. Stepping back will also improve your overall mindset as you experience your business through the eyes of another.

So step back, clear your mind, and see what you may have been missing all this time.

Cheers to professional and personal growth!

Image: Lucas Parker on Unsplash

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This is How Guests are Using Resy

This is How Guests are Using Resy

by David Klemt

Resy "Right this way" printed on wine key

Demand for in-person visits seems to be the big prediction of 2023, which means reservation platforms like Resy are crucial.

Of course, the value isn’t just the automation of reservations. Nor are these platforms just about simplifying waitlists.

Indeed, those are essentially the two functions such platforms must execute, and execute flawlessly. However, there’s more to modern reservation and waitlist platforms.

Today, guest-facing platforms should offer another feature to operators: discoverability.

This should go without saying but I’m going to address it anyway. With few exceptions, being discoverable is crucial for restaurants, bars, and hotels.

That means social media presence is crucial. Websites are still crucial. Operators ensuring they own their online review and travel site profiles is crucial.

In other words, if it’s online, has a search function, and makes recommendations to users, it’s crucial. It should also go without saying that operators need to meet potential guests where they are. And, again with few exceptions, they’re online.

As you may assume by now, Resy is a reservation platform that helps users discovers restaurants and bars. And if it’s helping guests discover these venues, it’s helping operators increase their reach and get discovered.

Reservation List Curation

The first feature I’m going to share is Climbing, which is what it sounds like.

When a tourist visits or someone moves to a new city, they tend to want to find their places. Which restaurants and bars will be their third spots, or the place they spend time between work and home?

Word of mouth is great, of course. But these days, reviews and comments are digital word of mouth. So, a curated list of “what’s hot” amongst restaurants in a given city is powerful for discoverability.

“Climbing on Resy is the only data-driven list powered by your reservations,” reads the Resy site. “Consider it a curated guide by locals, for locals.”

For ease of use, which is crucial for any platform, users can edit dates and party size within the Climbing tab.

The Hit List

Climbing isn’t the only list Resy curates on the platform. There’s also the Hit List.

This is a list Resy publishes each month for each major market in which they operate. It consists of ten venues that “should be on your radar.”

Using Philadelphia as an example, the city’s January Hit List per Resy is comprised of:

  • CO-OP Restaurant & Bar
  • Sor Ynez
  • City Winery
  • Condesa
  • Ocean Harbor
  • Fiore
  • Rittenhouse Grill
  • Forsythia
  • Second District Brewing
  • Vernick

The Hit List also includes the neighborhood or town where each recommendation is located. Again, not just discoverability but also ease of use.

Notify and More

Resy does more than just help people make reservations. There’s also the platform’s approach to waitlist management, Notify.

As the company describes it themselves, Notify is “a future waitlist.” Users can specify their date and time reference, and add themselves to a restaurant’s list.

On the operator side, they add the guest and an email or push notification is sent out. When a table that matches the waitlist user’s preferences opens up, they get an alert.

Users can also take advantage of Top Rated, New on Resy, and Book Tonight lists. Getting more granular, there are also other curated lists, such as:

  • Great Tasting Menus Under $125
  • Essential Cozy Locales
  • Splurge-worthy Dining
  • Where to Dine with a Crew
  • Date Night, Covered
  • Best Outdoor Dining

Additionally, Resy is in a partnership with American Express. So, eligible cardholders can use Global Dining Access by Resy for incredible experiences.

When considering their tech stack, platforms, and partnerships, operators need to consider an array of functions. More and more each day, discoverability is a function that needs to be top of mind.

Image: Resy

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Picture vs. Video: Datassential Weighs In

Picture vs. Video: Datassential Weighs In

by David Klemt

Vintage Rolleiflex camera

If you want to meet guests—both regular and new—where they are, it helps to know how they prefer to consume social media content.

However, I’m not talking about which platforms are the most popular. We’ll get to that, but I’m talking about the content itself.

It appears that two camps are emerging: Team Picture and Team Video. And yes, they appear to follow demographic delineations.

Veteran operators and front-of-house teams know the drill. It’s standard for a server to drop food off and phones to hover over dishes immediately.

Bartenders, of course, also know the routine. In fact, bartenders working behind the stick across the globe know chronically online guests will come seeking specific drinks because they’re “Instagrammable.”

Hey, I’m not above it—I’ve snapped pics at bars and restaurants known for their innovative drink presentations. The same can be said about certain dishes at particular restaurants.

But is that camera just rapid-fire snapping photos? Or is it becoming more common for the guest holding the phone to record video?

Luckily, F&B market research agency Datassential has data-driven answers to those questions.

Still Photography vs. Moving Pictures

Okay, I’ll admit that this subheading title is a bit lame. Whatever—I’m keeping it in.

At any rate, you know what I’m talking about here, pictures versus videos. Interestingly, Datassential suggests that our industry is already at least a bit behind in this debate.

As they say in their latest Foodbytes report, 2023 Food Trends, “It seems like the food industry only just figured out how to cater to the importance of photography and Instagram and now it’s all being replaced by video.”

Specifically, Datassential speaks about short-form video in this report. Essentially, the agency is saying that guests (younger generations, in particular) are “over” still or static images of F&B items.

Today, just like video killed the radio star, video is on a still photography killing spree. And as I mention above, Datassential’s data reveals what people expect regarding this topic when it comes to age groups.

Unsurprisingly to some, Gen Z is most likely to consume video content. It follows, then, that 67 percent of this group has taken video of food at a restaurant or at home.

Next up, at 54 percent, is Millennials. Forty percent of Gen X says they’ve taken video of food at a restaurant at home. Just 18 percent of Baby Boomers have done so.

Where are People Consuming Video Content?

So, that’s the “who.” Now for the “where.”

According to Datassential, these are the top platforms for video consumption:

  1. BeReal: 11 percent
  2. TikTok Live: 25 percent
  3. Twitter video: 27 percent
  4. Snapchat video: 35 percent
  5. Instagram Reels: 38 percent
  6. TikTok: 41 percent
  7. Facebook Live: 41 percent
  8. Instagram videos: 44 percent
  9. Instagram Stories: 45 percent
  10. Facebook Stories: 48 percent
  11. YouTube: 77 percent

Does this mean you need to create content for each platform? Well, unless you somehow have the time or a digital marketing team, probably not.

Instead, you’ll want to pick the platforms that make the most sense for your brand and audience. There are also cross-posting tools that can save you time and simplify the process.

Takeaway

It’s up to individual operators to choose their social channels. The same is true for what they plan to post, photos or videos.

There’s a different consideration I want operators to keep top of mind. If video continues to dominate social, think about what could happen to dining rooms. It won’t be unusual for “influencers” to break out handheld lighting equipment to create videos. And I think we all know what that will do to the atmosphere in restaurants, bars, and lounges.

As strange as it may seem, operators may need to post signs banning flash photography and lighting for videos. Otherwise, the guest experience will diminish. Who pays the price for that negatively impacted experience? Not the influencer; the operator takes the hit in their reviews and traffic.

If video is here to stay, operators need to observe their dining rooms and adjust accordingly. That doesn’t just mean crafting video-worthy interiors and menu items. Now, it also means protecting the guest experience.

Image: Alexander Andrews on Unsplash

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Datassential: The Flavors of 2023

Datassential: The Flavors and Menu Items of 2023

by David Klemt

Basket of hot chicken wings

Food and beverage market research agency Datassential has some data-driven thoughts on the flavors and menu items that will define 2023.

Featured in their latest Foodbytes report are 20 items for operators to consider this year. There are ten food items, drinks, and ingredients Datassential predicts will be on basically every menu.

And there are another ten food items, drinks, and ingredients the agency feels could suddenly hit in 2023.

For you own copy of Datassential’s 2023 Food Trends, click here.

Prolific Performers

As Datassential refers to them in their report, these are the items “that will be everywhere” this year.

Food

  • Birria. This one makes sense as birria only appears to be capable of continually growing in popularity.
  • Mushroom. In Datassential’s opinion, we should expect more menus to feature mushroom snacks. Also, expect to see (or add yourself) lesser-known, rare, and exotic mushrooms on menus.
  • Salsa macha. Over the past four years, according to Datassential, salsa macha as grown a staggering 339 percent on menus.

Drink

  • London Fog. A compelling earl grey tea latte.
  • Mangonada. Salty, tart, fruity, and bold, the Mangonada is a flavorful frozen drink.
  • Ranch Water. Simple, timeless, and refreshing. In 2022, per Datassential, Ranch Water was the fastest-growing cocktail.
  • Soju. According to Datassential, soju is the third fastest-growing spirit on restaurant and bar menus.

Ingredient

  • Spicy maple. As the image atop this article suggests, expect spicy maple to replace or at least give hot honey a run for its money.
  • Ube. A striking purple yam from the Philippines.
  • Yuzu. Datassential predicts this citrus fruit will start showing up on many chain restaurant menus.

Promising Performers

In Datassential’s data-driven opinion, the following items need to be on every operator’s radar.

These are the items that have the potential to “hit it big” in 2023.

Food

  • Pickled strawberries. Interestingly, this matches up with Technomic’s trend prediction for the US, Canadaworldwide, really.
  • Savory granola. Not only on its own but as an element of savory, healthy bowl.
  • Sisig. A Filipino delicacy with pork belly, pig’s face, and chicken liver as key elements.

Drink

  • White coffee. As Datassential states, “there’s always room for coffee innovation on menus.”

Ingredient

  • Black tahini. The appearance of black tahini is quite striking, making for dramatic presentations. And as we know, striking presentations are perfect for social media marketing and engagement.
  • Cannabis. The legalization of recreational cannabis use in almost half of US states is leading to innovation in this space. And as more markets legalize public consumption in the form of F&B items on-premise, restaurants and bars will add cannabis-infused items to their menus.
  • Cherry blossom, or sakura. It seems that cherry blossoms are poised to take off in the US market.
  • Chestnut flower. Per Datassential, this ingredient is gaining popularity for use in winter baked goods.
  • MSG. For decades, restaurants proudly proclaimed “no MSG” or “MSG-free” on menus due to misconceptions. Now that consumers are better educated about ingredients, restaurants are proudly proclaiming their use of MSG.
  • Verjus. An ancient juice made by crushing unripened wine grapes. It can be an ingredient in a sauce, as a condiment, or to deglaze a pan.

There you have it—20 items to consider adding in your next menu update, featuring in your next LTO, or at least keeping an eye on in 2023.

Image: Scott Eckersley on Unsplash

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This Year’s Big Trend: Personalization

This Year’s Big Trend: Personalization

by David Klemt

Foam art cap on top of coffee

Ripples, the beverage-top media brand, is predicting that 2023 will be the Year of Personalization with a focus on in-person interactions.

Last year, the bev-top brand behind the Ripple Maker II Pro, named moderation as one of the top trends. When we look at the ubiquity of low-ABV drinks, we see that Ripples was right. And when we consider the proliferation of non-alcohol brands, Ripples appears downright prescient.

In other words, Ripples continues to be proven right about moderation.

Three revelatory datapoints and one generation are partly responsible for the brand’s accurate 2022 prediction. First, in comparison to 2019, zero-alcohol products were up 166 percent. Second, the non-alcohol category grew four times faster than its low-ABV counterpart. Third, non-alcohol spirits have grown by over 113 percent since 2020.

The generation Ripples believes is responsible for non-alc’s growth? Gen Z. In part, this is due to social media and the generation’s aversion, speaking generally, to being embarrassed by drunken behavior in front of the world.

So, proven right about last year’s prediction, it’s wise to take Ripples’ 2023 prediction seriously.

Year of Personalization

As Ripples explains, personalization has long been the strength of digital platforms. Be it an online retail platform or music streaming service, personalization is king.

And it’s easy to see why. Using online shopping as an example, think of the typical customer journey.

A shopper signs up, they click around or search for specific items, and they make their purchases. Soon, the platform is emailing the user about sales. Then, emailing the user items they think they’ll like, based on the individual’s data.

The more the user shops, the more targeted the platform’s suggestions and interactions become. Before the user knows it, they’re signing up for a loyalty program, earning rewards, and giving the platform more of their money.

Well, personalization is no longer only shining in the digital space. Now, businesses are engaging with their customers in the “phygital” space. That is, the physical space as well as the digital one.

As Ripples states, “Nothing beats real human interaction for building connection and loyalty between brands and consumers.” One way to leverage this new relationship between consumers and brands? Experiential activations.

Ripples knows a thing or two about this type of engagement. The bev-top media company partnered with Guinness Korea for a campaign involving 100 bars. Consumers scanned a QR code, selected a design via the Ripples app, and the design was printed atop a pint of Guinness.

You Need Data

Personalization is a long-standing element of the hospitality industry. It’s one of our keys to success: we cater to guest preferences.

However, we can’t do that effectively without collecting guest data. And interestingly, Ripples’ prediction falls in line quite neatly with another 2023 prediction.

As you may be aware, 2023 is also likely to be the Year of the POS System. That is, a tech stack “revolution” is expected to take place this year. One crucial element of a powerful, worthwhile POS system is customer relationship management, or CRM.

Of course, if a POS doesn’t offer a CRM module, the best systems make it easy to integrate with the best CRM platforms.

Either way, CRM is the key to personalization in the digital, physical, and phygital spaces. It’s difficult to effectively personalize the guest experience pre-, during, and post-visit without guest data.

Regardless of whether Ripples’ prediction is accurate—and it’s likely they are—savvy operators need to make sure they’re responsibly collecting and utilizing guest data. If this is the Year of Personalization and the Year of the POS System, the reality is that 2023 is really the Year of CRM.

Image: Hannah Wei on Unsplash

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Global Trends 2023: Technomic

Global Trends 2023: Technomic

by David Klemt

Shawarma stacked with fire in the background

Not content to focus solely on North America, foodservice research firm Technomic is predicting foodservice trends that will span the globe in 2023.

As the firm points out themselves, making predictions is a best-guess proposition. Many of Technomic’s 2022 predictions for Canada, the USA, and the globe have proven true. However, a handful of their trend predictions have yet to manifest.

Further, not all trends will work for all operators and their concepts. Chasing every passing fad or trend is great if you like to watch your costs spiral. Doing so is also an excellent way to confuse guests and stress staff.

So, when considering any trend, make sure it works with your concept, has some staying power, and will resonate with your guests. Speaking to that last point, this is one reason it’s crucial to collect guest data. Making important menu and guest-impacting operational decisions without data just doesn’t make sense.

When you’re done with this article, take a look at our examination of Technomic’s other predictions. The firm’s Canadian predictions are here. And you can read the American trends by clicking this link.

For your own copy of Technomic’s international trends report, click here.

Operations

For 2023, Technomic is making predictions that certainly appear plausible. A number of them pertain to operations.

Kicking things off, sustainability. Driven in part by the global impact of the pandemic, the health of our planet is top of mind for many people.

For example, Canada’s single-use plastics ban is now in effect. England plans to move forward with a similar ban by October of this year.

Alongside such bans, Technomic believes operators—small independents and global chains alike—will implement entire sustainability strategies. These will range “from packaging and restaurant operations to marketing and menu development.”

Does your concept have a dedicated pickup window? Perhaps a takeaway counter? Maybe even a drive-thru? If not, 2023 may be the year you make that change. Not only that, you’ll likely want to position them front and center.

Per Technomic, many consumers are done with delivery. From rising costs outweighing convenience to delivery failures, pickup may become more appealing. Pickup is still convenient, it’s less expensive, and the consumer is in control.

Additionally, many people are well aware of how costly third-party platforms are to operators. In fact, Technomic identifies these platforms and their fees as “the biggest industry villain” of 2023.

Menu

One of Technomic’s predictions is particularly enticing: Lebanese street foods. To clarify, the firm believes all manner of street foods from around the globe will perform well in 2023.

However, they feel Lebanon’s street foods will stand out from the rest. So, think shawarma, labneh, kibbe, and pickled vegetables. That last item, by the way, follows Technomic’s prediction that pickling and fermenting will be hot trends in the US and Canada.

Of course, there are other items that Technomic thinks will shine in 2023. If the firm is correct, there’s a new “holy trinity” to keep an eye on and consider for your menu: sushi, poke, and ceviche. According to Technomic, each performs very well when it comes to takeout.

Interestingly, the research firm suggests that this particular holy trinity will spawn new virtual brands. If Technomic’s predictions prove accurate, some of these brands will focus on fried chicken or plant-based versions.

Speaking to that last point, Technomic is predicting that plant-based will “evolve” in 2023. This evolution will focus on more traditional meat counterparts. Providing examples, Technomic suggests that avocado, modern takes on black bean patties, cauliflower, tofu, tempeh, and seitan will be this year’s plant-based rock stars.

Are this year’s 2023 Technomic predictions going to prove accurate? It’s far too early to tell. However, one thing I can say with confidence is this: their predictions are rooted deeply in data. When Technomic makes a “guess,” it’s always an informed one.

Click here to read Technomic’s report in its entirety.

Image: Slashio Photography on Unsplash

KRG Hospitality Restaurants & Cafes, 2023 icon

by David Klemt David Klemt No Comments

American Trends 2023: Technomic

American Trends 2023: Technomic

by David Klemt

Pink pineapple against pink background

Foodservice research firm Technomic has some interesting predictions for the hospitality industry in the United States of America this year.

On the topic of operations, Technomic foresees more negotiating power among workers. Additionally, the firm looks at both the economy and pent-up guest demand.

When it comes to food, the US and Canada have a trend prediction in common. And as the image atop this article signifies, a particular color may be a hit on menus in 2023.

Before we jump in, Technomic’s 2023 Canadian trend predictions are here. Last year’s Technomic predictions for America are here. Curious readers can review the firm’s 2023 predictions in their entirety here.

Okay, let’s go!

Think Pink

I want to address this prediction first. According to Technomic, pink is going to be the F&B color of 2023.

As they explain, the color is fun, nostalgic, and photogenic. Yes, operators must still consider the Instagram-worthiness of their menu items. That may change one day, but it’s not today.

Per Technomic, pink also signals that a food or drink may have antioxidants.

Some of the items the research firm names specifically: pink pineapple, pink salt, pink celery, cara cara oranges, and schisandra berries.

Pickle It

This is the culinary trend that, per Technomic, Canada and America will share in 2023.

Along with fermenting, pickling gives the kitchen and bar teams a unique experimentation method to explore. So, encourage these teams to get creative and add pickling and fermentation to your next menu update.

Of course, that’s not the only reason to consider putting pickling front and center. For many, these preparations indicate a healthy F&B choice. Think kombucha, as an example.

As we know, healthy choices continue to be top of mind for many guests.

One more note: Technomic suggests being transparent and identifying the pickling and fermenting processes your team leverages to produce each menu item.

Economics

For those looking for a bit of optimism in these trying times, Technomic may have what you’re looking for. This year’s report, What We Foresee for 2023, says the following about the possibility of a recession:

“There is reason for optimism in the coming year, however, as any recession is expected to be relatively mild.”

Yes, that’s just one source’s opinion. However, Technomic is known for their voraciousness when it comes to data. So, if this firm is optimistic it could be a solid sign that things are looking up in 2023.

“Pent-up consumer demand” and variations thereof have been making the rounds since 2o21. However, it’s still a relevant phrase.

As it pertains to 2023, Technomic believes on-premise dining may “bounce back” this year. In fact, the firm suggests that people want to socialize and dine in person now more than ever.

Also, delivery and pickup times appear to be growing. So, plenty of people will see in-person dining as the more appealing option in 2023.

Operations

In part due to legislation addressing minimum wage and workplace conditions, employees may have the upper hand this year.

Add the fact that many people seeking work know many operators are dealing with a labor shortage and their negotiating position looks even stronger.

So, we could finally be in for a significant change when it comes to how the industry looks at compensation. More and more workers—and the guests they serve—are taking issue with tipping. Instead, many people outside and inside of the industry want to see operators pay staff a competitive, living wage.

Of course, there are also the hospitality professionals who prefer tips to minimum wage. In 2023, the industry could experience the start of a sea change. Time will tell.

For more predictions and this Technomic report in its entirety, please click here.

Image: Alex Gruber on Unsplash

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We Ask ChatGPT About Robots and AI

We Ask ChatGPT About Robots and AI in Restaurants

by David Klemt

Vintage toy robot face and torso

Earlier this week we had “a conversation” with ChatGPT, the now (in)famous chatbot from artificial intelligence research and development company OpenAI.

For my first time interacting with this type of tool, I keep things simple. I attempt to phrase my questions correctly, focusing on the topic of AI and robots in hospitality.

Initially, I receive a response that probably isn’t much of a surprise. But as you’ll see, the chatbot highlights an item or two that aren’t always top of mind with this topic.

Below you’ll find ChatGPT’s responses to one request and two questions.

Please write 400 to 500 words about robots and artificial intelligence working in restaurants, from the perspective of robots and AI.

“Robots and artificial intelligence (AI) are becoming increasingly prevalent in the restaurant industry. This is in part due to the many benefits that these technologies can offer, such as increased efficiency, improved safety, and reduced labor costs. However, it is also important to consider the perspective of the robots and AI systems themselves, and how they are integrated into the restaurant workforce.

One of the main ways that robots and AI are used in restaurants is through automation of tasks that would otherwise be performed by human workers. For example, robots can be programmed to cook food, mix drinks, and serve customers. This can help to improve the efficiency of the restaurant, as robots are able to work faster and more accurately than humans. Additionally, robots can be designed to perform tasks that are dangerous or difficult for humans, such as handling hot oil or sharp knives. This can help to improve safety in the kitchen and other areas of the restaurant.

However, the use of robots and AI in restaurants also raises some important ethical and social issues. Some people may worry that robots will take jobs away from human workers, especially in an industry that already has high turnover rates. Additionally, there may be concerns about the social and emotional impact of having robots as a major presence in the workplace. For example, some people may find it uncomfortable or strange to interact with robots in a social setting, such as a restaurant.

The robots and AI perspective, they are programed to perform their task efficiently without any error. They don’t have any emotions or preferences hence they are not impacted by the same issues that human employees may face like fatigue, stress or burnout. They can work in any environment without needing breaks or vacation days, this can help reduce labor costs, as restaurants can operate with fewer employees. However, it also means that human workers may need to be trained in new skills that allow them to work alongside robots and AI systems.

In conclusion, the integration of robots and AI in the restaurant industry can provide many benefits, including increased efficiency and improved safety. However, it is important to consider the ethical and social implications of these technologies, and to ensure that they are implemented in a way that benefits both the restaurant and its employees. With proper planning and training, robots and AI can be an [sic] valuable asset to restaurant workforce.”

Can you explain to me, in 300 to 400 words, what the ethical implications are for restaurant, bar, and hotel operators using artificial intelligence and robots to complete tasks?

For the most part, ChatGPT repeats talking points from our first interaction. This is likely due to the phrasing of my question. Also, this chatbot is still in its “infancy.”

However, ChatGPT brings up a few new points, and expands on others.

“The use of artificial intelligence (AI) and robots in restaurants, bars, and hotels raises a number of ethical implications that should be considered by operators. One of the main concerns is the potential for these technologies to displace human workers. In an industry that already has high turnover rates and relatively low wages, the use of robots and AI could make it even more difficult for human workers to find and keep jobs. This could lead to increased unemployment, reduced income and work-life imbalance among the impacted employees.

Another ethical concern is the impact that these technologies may have on the customer experience. For example, some customers may find it unsettling or uncomfortable to interact with robots in a social setting, such as a restaurant or hotel. Additionally, customers may feel that the use of robots and AI detracts from the human element of the service experience, and could harm the overall reputation of the business. There may also be concerns about how the data collected by these systems is used and protected, raising question about data privacy and security.

Additionally, some concerns about the way these AI and robots are designed and how they make their decisions, there could be potential for bias, especially when the systems are provided with data that is not representative of the whole population. This could lead to unfair treatment of customers, employees and other stakeholders.

There are also concerns about how the maintenance and repair of these technologies are managed and who is responsible for any accidents or malfunctions that may occur. This is particularly important for safety critical tasks, such as cooking or cleaning. Operators need to ensure that the AI and robots are designed and maintained to the highest standards to prevent any harm to employees or customers.”

Are there risks that human designers and engineers will introduce bias to customer-facing artificial intelligence and robots?

Since ChatGPT mentions bias in response to my first question, I run with that train of thought.

Below is what the chatbot has to say about that topic as it relates to AI and robots.

“Yes, there is a risk that human designers and engineers may introduce bias into customer-facing artificial intelligence (AI) and robots. This can happen in a number of ways, including:

  1. Data bias: If the AI system is trained on a dataset that is not representative of the population it will be serving, it may make decisions or predictions that are biased towards certain groups of people. For example, if an AI system used in a hotel is trained on data from primarily white and wealthy guests, it may have difficulty understanding and serving guests from other backgrounds.
  2. Algorithm bias: The way an AI system is designed and the algorithms it uses can also introduce bias. For example, if an algorithm is designed to prioritize certain inputs over others, it may make decisions that are biased towards certain groups of people.
  3. Human bias: Human bias can be introduced into AI systems through the decisions made by designers and engineers about what the system should do, how it should work and how it should interact with people. For example, if a designer and engineers decide that the robot should be more polite to older customers, it may be less polite to younger customers, or if the system is designed to recognize only certain languages, it may not be able to understand and serve customers who speak other languages.

It is important for human designers and engineers to be aware of the potential for bias in AI systems, and to take steps to minimize it. This can be done by using diverse and representative data when training the AI system, being mindful of the potential for bias in the algorithms used, and involving stakeholders from diverse backgrounds in the design and testing process. Additionally, monitoring and audit the system performance regularly, and providing ways for users to provide feedback on the performance and make adjustments accordingly.

It is important to remember that this is an ongoing process and it requires continuous monitoring and adjustment as the data and environment changes. There is also a need for more research in the field of explainable AI, which would allow human designers and engineers to understand why the AI system is making certain decisions, which can help to identify and mitigate any biases that may have been introduced.”

Takeaways

Obviously, I don’t think ChatGPT “speaks” for the machines. And I don’t think the chatbot was attempting to convince me of anything. There’s nothing overtly nefarious afoot here—this was mainly an entertaining exercise with a newsworthy tool.

That said, I’m not entirely certain how I feel about my interaction with ChatGPT. On one hand, the answers in favor of AI and robots are what one expects: efficiency, speed, consistency, cost reductions, improvements to safety.

But what about what ChatGPT says about biases, programming, representation, and human interactions with tech? To alter a phrase, “Who watches the programmers?”

Hospitality is about the human element. It’s about service and the guest experience. Personally, I don’t think the world will be in a better place if we reduce human interaction.

Dropping baskets into hot oil? Slicing and dicing? Sure, send in the robots…maybe. Reducing the human element in the name of efficiency and profits? I don’t see a benefit worth the risks.

Image: Rock’n Roll Monkey on Unsplash

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KRG Makes First Addition to Team for 2023

KRG Hospitality Makes First Addition to Team for 2023

KRG Hospitality Licensing Program logo

Jared Boller joins the KRG Hospitality team, serving as the agency’s in-house beverage educator, trainer, and menu developer.

TORONTO, ONTARIO—Today, KRG Hospitality is delighted to announce a new addition to their team. Jared Boller, a professional mixologist with two decades of experience, will be available to the agency’s clients for beverage menu development and training. He’ll serve as KRG’s master mixologist for North America.

Boller’s creativity, passion, and humility as a professional mixologist have led him on a journey around the globe. He has established himself as an industry leader, developing award-winning beverage programs in restaurants, bars, hotels, and casinos in several markets, including Denver, New York, Florida, Toronto. Throughout his career, Boller has won several cocktail competitions, educated teams for brands and industry organizations, and appeared in numerous publications.

“Restaurants, bars, hotels, and hospitality are in dire need of not only great employees but educated employees who can execute an owner’s vision,” says Boller. “I look forward to the next stage of my hospitality career with KRG, helping to inspire the future generations in everything related to beverage. My life’s journey has led me to the perfect opportunity with the team at KRG to collectively build future and existing brands.”

Additionally, he was the featured guest on episode 12 of the Bar Hacks podcast. People curious to learn more about Boller can listen to his Bar Hacks episode on Spotify, Apple Podcasts, and Google Podcasts.

With a growing list of accolades and numerous publications to his name, Boller most recently spent three years as the national whiskey ambassador for Proximo spirits. He prides himself on educating consumers and future bartenders on artistry behind the bar and providing history lessons to everyone that will listen. Boller is eager to share his extensive knowledge of spirits, cocktails, menu development, beverage innovation, and service.

“It’s an exciting time for KRG Hospitality, adding to the team just days into 2023,” says David Klemt, director of business development at KRG. “With Jared on the team our beverage programming, menu development and curation, training, and consulting will be even stronger. I know we’re all looking forward to our clients having the opportunity to work with Jared.”

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.

Image: KRG Hospitality

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Canada’s Single-use Plastics Ban

How Canada’s Single-use Plastics Ban Affects Operators

by David Klemt

Single-use plastic straws and utensils

With a few exceptions, Canada’s ban on the manufacture, importation, and sale of single-use plastics is now officially in effect.

However, that doesn’t mean restaurant and bar operators need to worry about current inventories just yet. While the Single-use Plastics Prohibition Regulations are in effect, operators have a year to deplete their stocks.

SUPPR is a crucial element of Canada’s overall plan to combat pollution and reach a goal of zero plastic waste by 2030. The single-use plastics ban was announced in June of this year.

“We promised Canadians we would deliver a ban on single-use plastics. Today, that’s exactly what we’ve done,” said Minister of Environment and Climate Change Steven Guilbeault the day SUPPR was announced. “By the end of the year, you won’t be able to manufacture or import these harmful plastics. After that, businesses will begin offering the sustainable solutions Canadians want, whether that’s paper straws or reusable bags. With these new regulations, we’re taking a historic step forward in reducing plastic pollution, and keeping our communities and the places we love clean.

Now, six months later, it’s the law of the land.

What’s Banned?

Essentially, Canadian operators must evaluate everything they use for delivery and takeout or pickup. If any items are single-use plastic, they must be gone by December 2023.

Per SUPPR, the manufacture, importation, and sale of the following is prohibited:

  • Checkout bags designed to carry purchased goods from a business and typically given to a customer at the retail point of sale.
  • Cutlery includes:
    • knives
    • forks
    • spoons
    • sporks
    • chopsticks
  • Foodservice ware designed for serving or transporting food or beverage that is ready to be consumed, and that:
    • contains
      • expanded polystyrene foam
      • extruded polystyrene foam
      • polyvinyl chloride
      • carbon black
      • an oxo-degradable plastic
    • are limited to the following items
      • clamshell containers
      • lidded containers
      • boxes
      • cups
      • plates
      • bowls
  • Ring carriers are flexible and designed to surround beverage containers in order to carry them together.
  • Stir sticks designed to stir or mix beverages, or to prevent a beverage from spilling from the lid of its container.
  • Straws include:
    • straight drinking straws, and
    • flexible straws, which have a corrugated section that allows the straw to bend, packaged with beverage containers (juice boxes and pouches)

For accuracy, the above comes from the Government of Canada website directly, unedited.

What does this mean for Operators?

Again, operators in Canada don’t need to toss their current stock of the above items.

However, Restaurants Canada does recommend that operators contact suppliers and customers if they import, export, or sell prohibited items currently.

The single most important thing for operators to do now is research single-use plastic alternatives. Items need testing as changes will affect F&B items and the guest experience.

Of course, it’s possible an operator’s current supplier already offers alternatives to single-use plastics. That could prove convenient but costs, supply chain reliability, and impact on menu items need careful consideration.

Sustainability and responsible practices are no longer just conversation topics within the industry. As of this week, in Canada, they’re the only way forward.

Image: Volodymyr Hryshchenko on Unsplash

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KRG Hospitality Adds to Team

KRG Hospitality Enters New Era of Growth with Addition to Team

by David Klemt

KRG Hospitality Licensing Program logo

Kim Richardson joins the KRG Hospitality team, representing Philadelphia and the Northeastern US region via the agency’s new license program.

PHILADELPHIA, PA—KRG Hospitality today announces an exciting new addition to the consulting agency’s team. Following several years of success, KRG is now entering a new phase of growth.

Kim Richardson, who has more than 23 years of experience in the hotel and restaurant industry, will represent KRG at the agency’s Philadelphia office. Further, Richardson will be KRG’s representative for the Northeastern region of the United States, serving Connecticut, Delaware, Maine, Massachusetts, New Hampshire, Maryland, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont.

As the newest member of the KRG team, Richardson is excited to bring all her hospitality industry knowledge and experience to the Philadelphia area. From Five Diamond Hotels to brick-and-mortar restaurants, she has had her hands in the Philadelphia hospitality scene since moving to the city in 2003. With an admiration for the industry since a very young age, she has a passion for all things hospitality. Most importantly, Richardson brings with her a passion and eagerness to help grow the industry and lead others to success.

“There’s nothing more rewarding than understanding a client’s dream, perfecting it, and bringing that vision to life,” says Richardson.

This exciting new addition to the KRG team represents the launch of the agency’s new licensed consultant program. KRG operates in several key markets—Toronto, Las Vegas, Calgary, Vancouver, Philadelphia, Nashville, Orlando, and the Caribbean—and is planning to add more partners as regional representatives throughout 2023.

“As we move forward from the pandemic era, we look forward to positioning the brand for continued and further success,” says KRG Hospitality president Doug Radkey. “Creating a licensed consultant program provides us the opportunity to reach a wider audience, provide additional value and support for our clients, and help push this exciting industry forward.”

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.

Image: KRG Hospitality

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Members of Congress Send Letter to SBA

Members of Congress Send Letter to SBA Regarding $180 Million

by David Klemt

United States Capitol Building and Capitol Grounds

More than 70 members of Congress are urging the Small Business Administration to act quickly to fund eligible RRF applicants.

This news comes on the heels of the findings of the Government Accountability Office’s investigation into the RRF. As you may recall, the GAO discovered $180 million in unobligated funds.

In response, 73 representatives and senators sent the SBA a letter. Sen. Catherine Cortez Masto (D-NV) and Rep. Earl Blumenauer (D-OR) are leading the effort to quickly and fairly distribute the $180 million.

At the start, members of Congress ask that the SBA take immediately action. Also, that the SBA give priority consideration to RRF applicants who didn’t receive funds even though they were awarded grants.

By the way, that’s about 7,000 applicants.

Unfortunately, the recently passed Inflation Reduction Act of 2022 doesn’t include funds to replenish the RRF. And while $180 million is nowhere near the $42-43 billion our industry needs and deserves, it’s something. In fact, it’s a reason to keep pushing Congress to do the right and responsible thing.

Interestingly, the letter sent to the SBA also urges the clawing back of funds for various reasons. One social media user, in response to the letter, suggested auditing the recipients. Presumably, this would also lead to a clawback and, in turn, the further awarding of grants.

Key Segments of the Letter

“Last month, the Government Accountability Office (GAO) released a report titled Restaurant Revitalization Fund: Opportunities Exist to Improve Oversight that stated that as of as of June 2022, $180 million of RRF funding was unobligated. As you know, about 177,000 restaurants that applied to the program did not receive awards. While we understand the remainder of the funding will not reach every business that applied, it is imperative that the SBA distribute every dollar to help as many struggling restaurants as is feasible.

“In addition to these actions, we are also urging that SBA take action to recover funds that have been awarded to ineligible applicants, were found to be accepted fraudulently, or could otherwise be returned. For example, the aforementioned GAO report states that SBA does not require recipients to report their operating status, despite the statute requiring that businesses that permanently close to return the unused funds to SBA. SBA has itself identified potentially ineligible recipients, such as clubs and hotels that failed to meet statutory eligibility criteria. Money recovered from fraudulent and ineligible businesses can subsequently be used to help
fund the many businesses who were unable to receive grants. We urge you to take action on this matter and provide us with detailed information on the amount of funding that may be recovered as well as SBA’s progress in doing so.”

Image: Francine Sreca from Pixabay

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After RRF Failure, What’s Next for Us?

After RRF Failure, What’s Next for Us?

by David Klemt

Super Mario Bros. game booth

After the US Senate failed to even debate the Restaurant Revitalization Fund, instead opting to let it die, what’s next?

Obviously, trusting our elected officials to do the right thing isn’t a viable option. After all, the Senate slow-walked the RRF’s death march. It took six weeks after the House voted “yes” on RRF for senators to filibuster the bill to death.

Last Thursday, the National Restaurant Association addressed moving forward. Sean Kennedy, executive vice president of public affairs, released a 90-second video in which he spoke about the RRF and where we are now.

Reconciliation?

One of the first options Kennedy proposes in his video is a reconciliation bill. That, however, is highly unlikely to come to fruition.

So, what’s a reconciliation bill? Simply put, it has to do with the Senate’s supermajority requirement.

In order for a bill to advance to a vote, 60 percent of the Senate must support ending a filibuster. On that topic, a filibuster is a procedural tool that prolongs a debate. The filibuster is used to delay or prevent a vote on a bill, resolution, etc.

Now, a budget reconciliation bill circumvents the supermajority requirement. A simple majority—51 senators for the US Senate—is all it takes to override a filibuster in this instance.

Technically, from what I’ve come to understand, the Senate can pass a maximum of three budget reconciliation bills in a year. Most often, it passes a single such bill per year.

Obviously, Kennedy feels that this would be a longshot to cross our fingers and hope the RRF is funded via these means.

Staying Ready

As they say—yes, “they”—if you stay ready, you don’t have to get ready. According to Kennedy, the NRA is prepared to act in any way they can should replenishing the RRF or similar aide once again become an option.

“We’re gonna continue to closely monitor the situation and we certainly can activate if there any signs of movement,” he says. “We’re not seeing them yet.”

The “yet” there is perhaps a bit hopeful. And as we like to say, hope isn’t a strategy. However, optimism is far healthier than pessimism and hopelessness.

Additionally, Kennedy and the NRA are grateful to the bipartisan group of representatives and senators who have shown their support for our industry and replenishing the RRF.

“We’re incredibly appreciative of the works of our champions in Congress,” says Kennedy.

In particular, he acknowledges Senate Majority Leader Chuck Schumer (D-NY), and senators Ben Carden (D-MD), Roger Wicker (R-MS), Kyrsten Sinema (D-AZ). In the House, Kennedy thanks Speaker of the House Nancy Pelosi (D-CA), and representatives Earl Blumenauer (D-OR), Dean Phillips (D-MN), Brian Fitzpatrick (R-PA).

What’s Next?

As Kennedy says, much of what he discussed with people at the 2022 NRA Show centered around this very topic. Just what are we supposed to do moving forward?

Unfortunately, there’s no clear answer, no simple solution we can point to and implement.

Instead, we have several issues we must navigate to keep restaurant and bar doors open:

  • What can we do to more effectively recruit and retain staff?
  • How can we best address increases in food costs and problems with availability?
  • Is there a way to address rising credit card transaction fees?

Of course, that’s but a handful of what we must address and solve. And at least when it comes to the first question, we know some of the elements for the solution:

  • Treat staff with respect.
  • Value diversity, equity, and inclusion.
  • Improve pay and offer benefits.
  • Develop a healthy company culture and workplace.

On the topic of state and local policymakers, expecting help is a dicey proposition.

Unless they engage with the owners, operators, and industry professionals in their states, counties, cites, and towns, they’ll hurt these businesses. The only effective and helpful way forward is for them to engage with us and not simply introduce and pass legislation that hurts. Possible, of course, but a big ask as we’ve seen proven time and time again.

Image: Minator Yang on Unsplash

by David Klemt David Klemt No Comments

US Senate Fails to Replenish the RRF

US Senate Fails to Replenish the RRF

by David Klemt

United States Capitol Building exterior and blue sky

After conflicting reports and speculation, the US Senate has finally voted this week on replenishing the Restaurant Revitalization Fund.

Last week, multiple sources reported that the Senate would hold their RRF vote this week. Just days ago, several outlets sounded the alarm, reporting that the vote would be pushed to next week. The reason, these sources provided, was the Senate’s scramble to repackage and hold another vote on aid for Ukraine.

Senator Rand Paul (R-KY) blocked the bill that would provide $40 billion in defense and humanitarian aid. Unsurprisingly, it was also Sen. Paul who objected to $43 billion in emergency funding last August, killing that RRF replenishment effort.

Today, on the Senate floor, Sen. Paul repeatedly derided the replenishment of the RRF as a “bailout.” Additionally, he asked, “Where’s the emergency?”

So, one can infer that the impending closure of an estimated 50 percent of RRF applicants—88,500—isn’t an emergency to the Kentucky senator. Simple math shows that if each of those applicants has just ten employees, that’s a loss of 885,000 jobs.

Rightfully so, people throughout the industry have been more than a little concerned that the bill would receive at least 60 “yea” votes today.

At issue is where the funds would come from. While Democrats view replenishing the RRF as emergency funding, Republicans prefer to reallocate existing funds.

Senate Fails to Replenish RRF

Today’s vote was a long time coming. In fact, it’s just days shy of one year since the RRF application portal closed.

Now, after a 223 to 203 vote in the House to replenish RRF, our senators have failed us. The resulting vote was 52 to 43, falling short of the 60 “yeas” necessary

I’m not despondent over this news. Honestly, I think I’ve made it rather clear that our politicians failing us wouldn’t at all surprise me. Yet I still find myself incredibly disappointed.

Disappointed in how the RRF was handled, disappointed in the grant approval process, disappointed in how emergency funding was blocked, and disappointed in how we were left out of the Biden administration’s Build Back Better and March omnibus bills.

And gravely disillusioned now that I’ve finally learned how little many of our senators care about us. Hospitality is an industry that employed nearly 17 million people in 2019. In terms of revenue, we’re projected by the National Restaurant Association to generate almost $900 billion in sales.

Not enough, it’s clear, for a majority of senators to vote to replenish the RRF.

However, I’m mostly dismayed for the owners and operators who have waited a year just to have this lifeline yanked from their fingertips. Today’s failure in the Senate puts millions of jobs at risk.

Underfunded from the Start

For those who found themselves in RRF limbo, the wait for this vote has been agonizing.

The RRF application portal opened May 3, 2021. Initially, the process looked promising. For the first 21 days, the Small Business Administration announced, priority would be granted to small businesses with a minimum of 51 percent ownership by women, veterans or socially disadvantaged people.

However, the SBA closed the portal immediately after processing only about 101,000 priority applications, or one-third of applicants. So, ever since May 24 of last year, “non-priority” applicants have been left wondering if they’d ever receive an RRF grant.

In addition to the premature closure of the application process, the RRF was woefully underfunded. Clearly, that point was driven home when $75 billion in applications were submitted to a fund with just $28.6 billion.

So, the quick closure and unrealistic funding meant that out of the over 362,000 initial applicants, around 177,000 have been watching and waiting.

A Year-long Wait

Shortly after the RRF portal was closed, a number of Republican members of Congress sent a letter to the SBA. Per the contents of the letter, non-priority applicants wouldn’t receive grants or have the opportunity to apply for grants.

Indeed, those applicants stuck in RRF limbo have been waiting for relief for just days shy of a year. And that’s only counting the days since the portal closed. Operators across the industry, not just those who applied for RRF grants, have been scratching and clawing to stave off insolvency and closures.

Advocates such as the Independent Restaurant Coalition have been sounding the alarm. RRF applicants could be just days away from bankruptcy and needed the government to act. To be brutally honest, relief may still come too late for many applicants.

Congress has certainly had the time to vote on and replenish the RRF. In June 2021, Sens. Kyrsten Sinema (D-AZ) and Roger Wicker (R-MS), and Reps. Earl Blumenauer (D-PA) and Brian Fitzpatrick (R-PA) introduced the RRF Replenishment Act bill. In July, Rep. Blaine Luetkemeyer (R-MO) introduced an alternative bill, the ENTREE Act.

Of course, as we well know, an attempt in August to replenish the RRF with $43 billion in emergency funding was blocked by Sen. Paul. In November, Build Back Better was passed. Obviously, the RRF and our industry were left out the $1.7 trillion dollar bill. Likewise, we weren’t included in March’s $1.5 trillion omnibus spending bill.

Left Out In the Cold

So, of $3.2 trillion dollars in massive bills passed, zero were earmarked for us.

Today, our senators voted 86 to 11 for $40 billion in aid for Ukraine. However, they voted 52 to 43 to provide $40 billion in aid to American restaurants and bars.

Last month, eleven months after the portal closed, the House voted to replenish the RRF. That left the final push to the Senate.

And today, at least 43 senators made their low opinion of us known.

Image: Alejandro Barba on Unsplash

by David Klemt David Klemt No Comments

House Votes to Replenish RRF

House Votes to Replenish RRF

by David Klemt

United States Capitol Building dome in greyscale

Eleven months after the closure of the Restaurant Revitalization Fund application portal, Congress has voted on RRF replenishment.

Earlier today, the House voted “yes” on $42 billion for the RRF via the Relief for Restaurants and Other Hard Hit Small Businesses Act of 2022 (HR 3807).

To clarify, the intent is that funds go to original applicants who were left out when the portal closed.

Neither the $1.7 trillion Build Back Better Act nor the $1.5 trillion omnibus spending bill passed in March included the RRF Replenishment Act.

So, this news is obviously fantastic. However, it’s also long overdue.

We’ve waited nearly 11 months for movement on relief for our ravaged industry. In comparison to the hospitality industry, the legislative process often moves at a glacial pace.

For obvious reasons, the long delay in replenishing the RRF has been devastating.

Nearly a month ago, I wrote and published “Congress is Abandoning Us.” Some considered the article harsh, others agreed with what I wrote.

To be clear, I stand by what I said after ten months of inaction. However, I’m relieved—cautiously—that the House proved their support for our industry today.

$55 Billion Lifeline

In its current form, the House bill would provide $42 billion. This is the amount believed to be enough to award grants to the original applicants from May of 2021.

Additionally, there’s another $13 billion for businesses in other hard-hit industries. So, the House bill provides a total of $55 billion in relief.

Per bill co-author Rep. Earl Blumenauer (D-OR), those who applied last year for the first (and only) round of RRF relief won’t have to re-apply.

Rep. Blumenauer reportedly told Nation’s Restaurant News that “[t]he independent restaurant is the foundation of a livable community.”

Continuing, Rep. Blumenauer told NRN, “We need to have these institutions to provide a foundation for our neighborhoods.”

As far as the source of the $55 billion, the money is supposed to come from funds recovered from 2020 and 2021 pandemic relief programs. This includes billions of dollars stolen through fraudulent relief program claims.

In an effort to combat further fraud and show the public that the funds are indeed going to the correct recipients, the SBA will be required to be transparent about its process.

As it stands, grant recipients will need to spend the funds on eligible uses by March 11, 2023.

Bittersweet

While this is huge news for our industry, it’s somewhat difficult to let go of my frustration fully. The RRF portal opened May 3, 2021. It closed just 21 days later, shutting out an estimated 177,000 grant applicants.

In June of last year, Sens. Kyrsten Sinema (D-AZ) and Roger Wicker (R-MS), and Reps. Earl Blumenauer (D-PA) and Brian Fitzpatrick (R-PA) introduced a bill to replenish the RRF.

That was followed in July by the ENTREE Act, introduced by Rep. Blaine Luetkemeyer (R-MO).

Then, in August, Sen. Rand Paul (R-KY) objected to a unanimous consent motion to fund the RRF. Essentially, after that occurred, it was crickets.

As stated above, when the Build Back Better Act was passed in November, relief for our industry was nowhere to be found.

Given all of this, and the fact that the bill must now go before senators for debate and a vote, I find myself still uneasy about the fate of the RRF.

We often say hope isn’t a strategy. However, I hope our senators do the right thing and pass the relief our industry so desperately needs and deserves.

Image: Joshua Sukoff on Unsplash

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