Guest experience

Friends and family around a dinner table at home
by David Klemt David Klemt No Comments

Consumers May Keep Eating at Home

Consumers May Keep Eating at Home

by David Klemt

Friends and family around a dinner table at home

A recent report suggests that consumer interest in eating at home more will continue even after we return to “normal.”

This is the finding from a survey conducted by the Food Industry Association (FMI)l, formerly known as the Food Marketing Institute.

The FMI surveyed grocery shoppers to determine habits influenced by the pandemic.

Emphasis on Nutrition

I look to a wide variety of sources to analyze consumer behavior. Even their grocery habits can be valuable for operators to know.

In this case, knowing about the dining habits of today’s consumer provides important insights. For instance, knowing what types of food items shoppers are purchasing can be very telling.

Per the FMI, nearly half of survey respondents (49 percent) indicate they’re choosing healthier foods when grocery shopping. Clearly, living through a public health crisis is influencing this decision.

Today’s consumer, with more information at their fingertips and the purchasing power to demand more transparency from company’s, has become increasingly focused on their health. That interest grew stronger during the pandemic as a healthier lifestyle can lead to a reduced risk for illness.

This particular finding should tell operators a few things. First, they may want to consider updating their menus with healthier items. Second, that’s not limited to food—many guests are interested in no- and low-ABV drinks. Third, operators who use healthier ingredients should make that clear via their menu item descriptions.

At-home Dining

The FMI also found that 41 percent of survey respondents plan to prepare and enjoy more meals at home moving forward than they did before the pandemic.

That ties directly to 44 percent saying they “like” or ‘love” cooking at home more now.

While this survey was intended to provide consumer behavior insights for grocers, there’s clearly value for operators.

As many learned during the pandemic, guests are interested in supporting restaurants and bars buy ordering meal and cocktail kits.

Since it’s important to meet guests where they are, operators may want to keep such kits on offer. People have shown they’re eager to engage with restaurants and bars via virtual tastings and cooking classes. Clearly, many are also happy to order meal kits from restaurants to make in the comfort of their own homes.

Yes, there’s pent-up demand set to be unleashed. And yes, people are eager to get back out there and socialize. But there are also financial, health, and safety concerns that will keep some people from dining out as often as they did pre-pandemic.

That doesn’t mean they’re out of reach of restaurants and bars entirely. However, it does mean operators will need to adapt and get creative to earn their business.

Image: fauxels from Pexels

Hand holding United States of America passport
by David Klemt David Klemt No Comments

Third-party Vaccine Passports on the Way

Third-party Vaccine Passports on the Way

by David Klemt

Hand holding United States of America passport

Operators will likely have to further wade into politics if so-called “vaccine passports” become standard.

If recent reporting is accurate, several platforms will bring vaccine passports to market.

The hospitality, lodging and travel industries have been thrust into politics since for several years now. Unfortunately, the pandemic has only made the situation more precarious.

Dangerous Waters

For many operators, navigating today’s politically-charged atmosphere is an unwelcome development.

It’s bad enough that hospitality, lodging and travel have been thrown into utter chaos for well over a year. America and Canada have lost tens of thousands of restaurants and bars. Operators able to survive have lost millions of workers.

Too many people have lost jobs, savings, homes, and any sense of stability in their lives. Mental health, as a result, is on the decline for many people.

Unfortunately, all of those awful things are being exacerbated by politics. In America in particular (if reports are accurate), politics have severely divided the country.

Covid-19 safety protocols were politicized immediately. Restaurant, bar, hotel and travel workers found themselves playing pandemic police, putting them in dangerous situations.

If vaccine passports become standard, operators will find themselves deeper in the political quagmire. Workers will likely face a greater risk for confrontations with hostile guests.

What’s a Vaccine Passport?

In short, a vaccine passport is a way for someone to prove they’ve received a Covid-19 vaccine.

Per recent reports, the Biden administration has said they have no plan to implement federal vaccine passports.

However, several states have already banned this form of proof of vaccination. These include: Alabama, Arizona, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Montana, North Dakota, South Carolina, South Dakota, Texas, Utah (but private companies can require workers to get vaccinated), and Wyoming.

So far, two states—Hawaii and New York—have implemented vaccine passports. As far as the other states, vaccine passports are not a requirement or haven’t been banned yet.

New York’s vaccine passport, Excelsior Pass, was developed by IBM. A vaccinated New York resident downloads the app, a business owner downloads the scanner app, and vaccination status can be confirmed. Similar apps are believed to be in the works.

Again, however, many states have banned these apps.

What Does this Mean for Businesses?

If vaccine passports are banned fully where an operator does business, the decision has been made for them.

However, some bans relate only to government entities—businesses can require proof of vaccination.

And if a state doesn’t prohibit vaccine passports at all? The situation can be even more challenging for operators.

Operators eager to protect their workers and guests from infection may welcome vaccine passports. Some operators may feel these passports are an invasion of privacy and reject them. Still others may view them as a potential source for harassment and discrimination.

Should an operator require vaccine passports, they should expect backlash that could directly impact business. Operators who prohibit the use the vaccine passports may be viewed as “irresponsible” and also face backlash

Once again, the pandemic has put operators in several industries in no-win situations. Operators should consider their vaccine passport plan and the messaging around it now.

Image: Levi Ventura on Unsplash

Bottled Negroni mixed drinks and to-go cocktails
by krghospitality krghospitality No Comments

Where are To-Go Cocktails Legal?

Where are To-Go Cocktails Legal?

by David Klemt

Bottled Negroni mixed drinks and to-go cocktails

We’re still coming to grips with what the industry will look like post-pandemic. One pandemic-driven adaptation is to-go cocktails.

For this article, “cocktails” means mixed drinks specifically, as that is how most jurisdictions are defining such to-go drinks.

In some markets, operators can now offer to-go mixed drinks permanently. Some jurisdictions are offering extensions to temporary sales, while others are considering bills.

The To-Go Pivot

Clearly, our industry responds to guest demands and expectations. And what does today’s guest expect? For their every customized whim to be fulfilled—conveniently.

Therefore, it only makes sense that operators constantly adapt to encourage guest loyalty (as far as that’s possible).

People are itching to get out more, impatient to return to their pre-pandemic lives. Even so, the convenience of drinking and dining at home appeals to large swaths of the public.

Of course, it’s not just convenient.

Providing guests the choice to enjoy a restaurant or bar’s F&B offerings and semblance of their unique experience at home—including cocktails—is also about safety and comfort levels.

Obviously, we want guests to be able to comfortably and safely gather in restaurants, bars, hotels, and every other type of hospitality venue. That’s a given.

However, if some people are more comfortable at home for now, operators in a position to meet guests where they are to generate revenue should do so.

Lawmakers Respond

Carryout and delivery beer and wine sales have been legal for some time in many states. Mixed drinks, not so much.

The rules addressing “to-go” cocktails (carryout and delivery are more accurate) were relaxed in several markets in response to indoor dining bans and shutdowns.

However, “loose” laws aren’t permanent changes. Some jurisdictions will eventually rescind their relaxed approach and ban to-go cocktails unless specific legislation passes.

Iowa is the first American state to legalize to-go cocktails permanently. The vote was unanimous in the Iowa House and nearly so in the Iowa Senate.

Operators in Canada or America who intend to sell to-go cocktails must be aware of their jurisdiction’s specific rules, including but not limited to packaging requirements, volume restrictions, food sale components, and transportation laws.

Canada: Delivery and Carryout Rules

Currently, KRG Hospitality operates in Alberta, British Columbia, and Ontario for the Canadian market. Therefore, we’re focusing on those provinces for this article.

Alberta

While packaged, unopened liquor may be sold for off-site consumption, pre-made cocktails may not. Food sales must accompany liquor sales.

British Columbia

The province’s approach to liquor sales for delivery and carryout are the same as Alberta’s. Operators can’t sell to-go mixed drinks.

Ontario

Restaurants and bars can sell pre-made cocktails sealed in bottles, cans, and bags. Like the other two provinces, food sales must accompany to-go liquor sales.

America: Permanent, Extended, Up for Consideration

In total, 11 states have made the move to legalize to-go mixed drinks permanently:

  • Arkansas
  • Florida
  • Georgia
  • Iowa
  • Kentucky
  • Montana
  • Ohio
  • Oklahoma
  • Texas
  • West Virginia
  • Wisconsin

Others have introduced bills to make to-go cocktails legal permanently:

  • Arizona
  • California
  • Kansas
  • Minnesota
  • Missouri
  • Nebraska
  • New Hampshire
  • New Jersey
  • New York
  • Oregon
  • Pennsylvania

A handful have extended to-go cocktails until at least 2022:

  • Delaware (March 2022)
  • Illinois (2024)
  • Maine (September 2022)
  • Virginia (July 2022)
  • Washington (July 2023)

Image: Jonas Tebbe on Unsplash

Close-up of one hundred dollar bill
by David Klemt David Klemt No Comments

The Next Spirits Billionaire?

The Next Spirits Billionaire?

by David Klemt

Close-up of one hundred dollar bill

A recent deal involving a whiskey brand is set to help welcome another member to the exclusive Celebrity Spirits Billionaire’s Club.

Three-division UFC fighter. Two-division champion. Entrepreneur. Billionaire? Conor McGregor may add another comma to his bank account.

Proximo Spirits and Proper No. Twelve Irish Whiskey will continue their relationship long-term after agreeing to a nine-figure deal.

The terms of the Proper-Proximo agreement are confidential. However, the consensus is that Proper No. Twelve is going to make MMA star Conor McGregor a billionaire.

Money McGregor

One detail that isn’t exactly confidential is the overall value of the Proper-Proximo agreement.

McGregor and his business partners sold their majority stake in the popular Irish whiskey brand. It’s believed the deal is worth up to $600 million, or nearly €500 million.

However, how much of that $600 million is going to McGregor is unknown at this time.

To be clear, McGregor has a ways to go before he becomes a billionaire. Of course, he’s closer than most of us

Per reporting from The Irish Post, Proper No. Twelve is going to make McGregor the first billionaire Irish athlete.

“The terms of the agreement are confidential, however, the most important thing is Conor McGregor will remain a stakeholder of Proper No. Twelve, the brand that will make him a billionaire,” says Karen Kessler, a spokesperson for the former MMA champion.

Rapid Growth

It’s important to remember that Proper No. Twelve is just a few years old. That detail highlights the impressiveness of this deal.

Remember, Proper No. Twelve only launched in 2018. Since then, the brand has shipped over six million bottles. Proper No. Twelve is set to enter additional international markets moving forward.

Mike Keyes, president and CEO of Proximo Spirits, certainly seems to believe Proper No. Twelve isn’t “just another” celebrity spirits brand.

“It is rare to see a celebrity impact a brand the way Conor McGregor has Proper No. Twelve Irish Whiskey, and I have not seen many brands in the spirits industry catapult to this level of success in such a short period of time,” says Keyes. “This agreement is a vote of confidence in the incredible potential of this brand and a testament to the incredible work of Conor, Audie, Ken and the Proper No. Twelve team, as well as the efforts of Proximo and its distributors, who have all made this success possible.”

Celebrity Spirits Billionaire’s Club

Before proceeding, it must be mentioned that McGregor doesn’t consider himself a celebrity. According to him, “I’m not a celebrity. I break people’s faces for money and bounce.”

Regardless, the face-breaker money-maker is among an elite group of celebs with stakes in lucrative spirits brands.

We’re all well aware of George Clooney’s success with Casamigos, the brand he and his business partners sold for $700 million. There’s another $300 million in it for them if the brand hits performance goals over the next several years.

Diddy’s collaboration with Diageo, which includes CÎROC Vodka and DeLeón Tequila, is pumping up the artist and entrepreneur’s net worth. It seems quite likely that when he reaches billionaire status, it will be in no small part to the success of the Diageo brands.

Like McGregor, Ryan Reynolds got involved in spirits brand ownership in 2018. Retaining his ownership stake in Aviation Gin may catapult the actor, entrepreneur and social media slayer to billionaire status.

Jay Z is a wildly successful entrepreneur. In 2019, the empire he built made him a billionaire. Ace of Spades (Armand de Brignac) reportedly made Jay over $300 million midway through June 2019. D’USSE scored him an estimated $100 million. Jay Z launched luxury cannabis brand Monogram, sure to add much more to his net worth.

Why Should You Care?

Operators, their employees, and their friends and families continue to struggle in 2021. Our industry has fought endless battles. America’s operators just began the process of receiving specific relief yesterday.

So, it can be difficult to discuss the net worth of celebrities given what people are going through. The topic can come across as insensitive. That is by no means lost on me.

Were any of the brands in this post reliant solely on celebrity endorsement, I wouldn’t bother including them. The fact is, the success of these brands relies on consumer demand.

Celebrity endorsement only goes so far—if the product sucks, the shine will wear off and consumers will move on. And today’s consumer moves on quickly. There’s always something shinier, always a celebrity name with more gravitas.

Proper No. Twelve, Aviation, Casamigos, DeLeón, CÎROC, D’USSE, and Ace of Spades are past the honeymoon phase of brand adoption. Consumers have spoken, and these are among the brands they want and expect to see on menus. Your menus.

You certainly don’t need to stock these or any other celebrity brands. Just don’t be surprised if guests become frustrated if they can’t get them at your restaurant or bar.

That goes for any brand. Listen to your guests and what they’re asking for from you. Charge your front-of-house team with doing the same and encourage them to report back to you what they’re hearing from guests. One of the easiest ways to inspire repeat visits and refresh your menu is to simply listen.

Image: Photo by Giorgio Trovato on Unsplash

Pink alarm clock that reads 4:20
by David Klemt David Klemt No Comments

Nevada Mulling Cannabis Lounges

Nevada Mulling Cannabis Lounges

by David Klemt

Pink alarm clock that reads 4:20

Nevada, Las Vegas in particular, has long been at the forefront of hospitality and guest experiences.

This includes cannabis tourism.

Two new bills seek to make public cannabis consumption legal in the Silver State.

Current Cannabis Consumption Laws

Contrary to popular belief, it’s illegal to consume cannabis in public in Nevada. Many tourists, however, seem to believe the opposite is true.

This isn’t new to Las Vegas locals; there are still people who think anything goes in Sin City. There are still people who think brothels and prostitution are legal in Las Vegas, after all. Why would weed not be subject to rumor and innuendo?

The reality of recerational cannabis consumption in Nevada—so this includes Las Vegas—is as follows:

  • A person must consume cannabis on private property. The property owner must grant permission.
  • It’s illegal for the driver or passenger(s) in a moving vehicle to consume cannabis.
  • It’s illegal to operate a moving vehicle under the influence of cannabis.
  • Adults 21 years and older may legally possess up to one ounce (28 grams) of cannabis edibles, flower, or topicals, as well as 3.5 grams of cannabis concentrates.
  • Adults 21 years and older may purchase cannabis from licensed retailers or a Nevada dispensary. Nobody may purchase more than one ounce of cannabis at a time.

Currently, there is one lounge in Nevada in which a person may legally consume cannabis. The NuWu Cannabis Tasting Room sits on Paiute tribal land.

Current Cannabis Bills

Nevada Assemblyman Steve Yeager’s new bill, Assembly Bill 341, seeks to legalize cannabis consumption lounges.

The introduction of this bill makes sense given that Assemblyman Yeager is a member of the Growth and Infrastructure Committee.

Nevada’s recreational cannabis revenue is certainly growing each year:

  • 2017 Tax Revenue: $70 million
  • 2018 Tax Revenue: $74.7 million
  • 2019 Tax Revenue: $99.18 million
  • 2020 Tax Revenue: $105.18 million

If AB341 passes, dispensaries and other license holders would be able to apply for a license to operate as a “social use” venue.

Another bill, AB322, would allow for the sale and consumption of cannabis at “certain events.” In other words, festival operators could apply for such a license, as an example.

Takeaway

Nevada has been seen as the possible “Amsterdam of America” since states began legalizing recreational cannabis in earnest.

Clark County Commissioner Tick Segerblom sees the situation in a grander scale, particularly for Las Vegas.

“I think we’re ready to really blow the doors off this thing,” says Segerblom. “If we do soon, we can be the marijuana capital of the world.”

“The Marijuana Capital of the World.” When Nevada goes in, they go all in.

Image: JOSHUA COLEMAN on Unsplash 

Dollar signs finance concept
by David Klemt David Klemt No Comments

SevenRooms Continues Momentum with CFO

SevenRooms Continues Momentum with CFO

by David Klemt

Dollar signs finance concept

In hiring Pamela Martinez as the company’s chief financial officer, SevenRooms continues their drive toward global expansion.

This crucial hire continues years of constant movement forward for SevenRooms.

It’s no secret that we’re fans of this powerful, tech-driven platform, in part due to their support of direct delivery.

A History of Growth

What do you do when your erratic schedule keeps you from scoring restaurant reservations? You create a tech-based, flexible reservation platform.

Okay, maybe that’s not what we’d all do. But that is the solution the co-founders of SevenRooms chose in 2011.

It would take just six years for investors to take notice of the company’s potential for growth.

SevenRooms counts Comcast Ventures, Alexa Fund (Amazon), and Providence Strategic Growth as investors. So confident in the platform’s growth is Providence Strategic Growth that their investment of millions of dollars took place in 2020.

High-profile clients include TAO Group, Bloomin’ Brands, Topgolf, Virgin Hotels, The Cosmopolitan of Las Vegas, Zuma, and LDV Hospitality. SevenRooms has been the system of record for all F&B venues across the Mandarin Oriental Hotel Group’s portfolio.

Of course, SevenRooms serves independents of all sizes as well.

SevenRooms Hires CFO

Pamela Martinez is the first chief financial officer at SevenRooms. Her role is to accelerate the platform’s already impressive momentum and growth.

Martinez certainly has the experience to help further solidify SevenRooms’ status as one of the best guest experience platforms.

When she was at HubSpot, a marketing an CRM platform, the company grew from $75 million in annual recurring revenue to $1 billion in ARR.

“As SevenRooms continues to grow, I am thrilled to welcome Pamela to our team to help take us to the next level. Her proven track record helping to scale businesses and build out new financial structures made her the right choice for our company as we enter our next growth stage,” says Joel Montaniel, CEO and co-founder of SevenRooms.

Further growth will lead to more solutions and resources for SevenRooms clients. We’re eager to see how Martinez will help expand the platform and its capabilities.

“Despite the incredible challenges hospitality operators have faced over the past year, the industry has remained strong and I’ve been inspired by all SevenRooms has done to help its partners stay resilient,” says Martinez.

Read the announcement in its entirety on the SevenRooms website.

Image: Chronis Yan on Unsplash

Guests in a restaurant and bar
by David Klemt David Klemt No Comments

Rediscovering Your Guests in 2021

Rediscovering Your Guests in 2021

by David Klemt

Guests in a restaurant and bar

Labatt Breweries of Canada wants operators to get to know their guests all over again in 2021.

Luckily, this isn’t a massive undertaking. However, it requires commitment and an understanding of altered consumer behavior.

During the 2021 Restaurants Canada Show, Labatt presented “Rediscover Your Guest: The 2021 Consumer.”

Christina Veira, bar and beverage curator for the RC Show, hosted the digital session. Labatt panelists included Michelle Tham, head of education and certified Cicerone, and Megan Harris, director of insights and strategy. Casey Ferrell, vice president of US and Canada Monitors for Kantar Consulting rounded out the panel.

Who’s Your 2021 Guest?

The good news is that Canadians are still consuming beverage alcohol. The less-good news is that they’ve gotten used to drinking mainly at home.

In fact, per Megan Harris, 95 percent of beverage alcohol occasions now happen at home. Harris also says there’s excitement about a return to in-person restaurant and bar service. However, several pandemic-driven behaviors will persist, including:

  • Takeout
  • Delivery
  • Daytime drinking
  • Working from home

Guests are set to unleash a torrent of pent-up demand when they can safely return to restaurants and bars. They want to indulge themselves, have fun and new experiences, but also feel safe.

Generally speaking, younger guests are more tolerant of risk. Conversely, guests over 50 years old are more cautious.

Vaccine Influence

Per Ferrell, there are four distinct vaccine groups in Canada and the United States:

  • People have gotten a Covid-19 vaccine.
  • People who can’t wait to get a Covid-19 vaccine.
  • People who are unsure about Covid-19 vaccines.
  • People who refuse to get a Covid-19 vaccine.

Ferrell says to remove the final group on that list. Doing so shows that about two-thirds of Canadians (and Americans) are in the process of getting the vaccine. Therefore, operators need consider how to address vaccination safety along with vaccination requirements for guests and employees. For Ferrell, the best lever to pull is the one that addresses Covid-19 and vaccine risks.

Additionally, just because the calendar ticked over to 2021 doesn’t mean everything is different. Accordingly, Ferrell feels that Q1 is the “More of 2021” stage of this year. He expects people to open up their bubbles during possibly Q2 or Q3, the “Less Covid-19” stage. Parties that include multiple households will return in force in Q4.

How to Meet 2021 Guest Expectations

First, we must be cautious when people return to restaurants, bars and other venues en masse. That initial boost in traffic driven by pent-up demand will ebb quicker than one would expect.

To get people through the doors, operators will need to focus on:

  1. health and safety;
  2. staff expectations and training;
  3. social interactions and the joy deficit; and
  4. guest experience and journey.

Harris sums up the first point succinctly: Anything that can be touchless, should be touchless. Operators should expect contactless features to remain moving forward. The expectation for hygiene will also remain. Guests will want to see employees cleaning and sanitizing, for instance.

Speaking of employees, operators must address the role they’ll plan in crowd management. Unfortunately, management and employees will have to be ready to enforce health and safety protocols strongly.

As Ferrell notes, long-term lockdown means large swaths of the population need to re-learn how to interact with others. One way to drive guests through restaurant or bar doors is promoting the role they play in socializing. Hospitality businesses facilitate social interaction—it’s one of the industry’s greatest strengths. Equally, restaurants and bars fill people’s joy deficits.

Operators, says Harris, need to consider:

  • every way they can offer an experience guests can’t have at home;
  • how they can capitalize on the daytime drinking experience;
  • how to extend the guest experience—pre-visit and post-visit;
  • how to attract older guests to their venues;
  • leveraging patio spaces; and
  • focusing on messaging that promotes escapism and excitement.

Another interesting consideration concerns table distances. Every operator needs to weigh square feet per guest and distancing tables. Social distance will likely remain important to guests for at least a little while post-pandemic.

Bonus

Ferrell answered a question I asked about Las Vegas specifically. Dayclubs, which largely focus on elevating pool parties, are an integral part of Vegas hospitality.

So, how can they signal their commitment to health and safety as relates to infections?

Ferrell’s answer is that evidence appears to indicate that pools are Covid-19 infection spreaders. Therefore, dayclub operators should focus more on the crowd control aspect of health and safety. Additionally, messaging should focus on indulgence.

After all, says Ferrell, not much is more indulgent than saying, “I’m going to take the day for myself and go to a daylife venue.”

Image: Nick Hillier on Unsplash

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