Hospitality

Image of a resort pool in the evening, with palm trees and the hotel in the background
by David Klemt David Klemt No Comments

The 7 Principles of Hospitality

The 7 Principles of Hospitality

by Doug Radkey

Image of a resort pool in the evening, with palm trees and the hotel in the background

Let’s start with a simple but important question: When you hear the term “hospitality industry,” what first comes to mind?

For many, the first thing that comes to mind is….hotels. And while hotels are a significant part of hospitality, they’re definitely not the complete picture. In fact, the true essence of hospitality often transcends what we experience in a standard hotel environment.

Bars, restaurants, resorts, and entertainment venues are all spaces where the principles of hospitality should be experienced equally. Hospitality is about how we treat people—our guests, visitors, our vendors, and even our team members—with generosity, warmth, and genuine care.

Yet, in recent years, a shift has occurred. Many people I speak with in the industry feel that we’ve lost touch with the foundational principles of hospitality in a variety of settings. Whether it’s the focus on tech integration, rush to hire due to labor shortages, lack of proper onboarding and training, or clarity in what we do —and why we do it—something has gotten lost along the way.

As we move forward, it’s time for the industry to refocus on what hospitality truly means, and realign with the core principles that make this industry remarkable.

No matter the style of concept you operate or plan to operate, the seven principles of hospitality are the foundation of exceptional service and memorable experiences. These principles aren’t just for fine dining or five-star resorts, and they aren’t just fancy buzzwords. They’re actionable insights that can elevate any hospitality business.

1. Self-Awareness

Hospitality starts with you. The first step to great hospitality is understanding how our own behavior impacts those around us—our guests and our teams.

Practicing self-awareness isn’t always easy, particularly in high-pressure situations. So, ask yourself: How aware are you of the emotions you’re instilling in others during conversations, especially under stress?

Self-awareness is more than a personality trait; it’s a skill that helps create a warm, caring environment for guests. It’s about managing how we come across to others actively, and ensuring our actions align with the culture we want to build in our business.

To create a genuine sense of hospitality, we must start with a clear sense of self.

2. Guest Awareness

Read your guest’s energy, not just their appearance. The ability to read guests and anticipate their needs is crucial, but it goes beyond surface-level assumptions.

Hospitality isn’t about stereotyping based on appearance, accents, or perceived financial status. Instead, it’s about sensing the energy and mood they bring into your space.

When we understand the energy guests bring, we can adapt our approach, tailor our communication, and build genuine connections. This is hospitality in its most fundamental form: creating a personalized experience by being attentive and observant.

3. Connection

Hospitality is about meaningful connections. When you’re both self-aware and guest-aware, you can begin to tailor your interactions to each specific guest (and your staff, too).

Authentic, unique, and genuine hospitality is what leaves a lasting impression. Building a connection with guests isn’t just about providing a service. The key is to cultivate an experience that feels personal.

In his work, author Daniel Pink talks about intrinsic and extrinsic motivation, noting that connection is one of our core intrinsic motivators. We’re drawn to hospitality because of our natural desire to connect with others. It’s this connection that creates the most memorable guest experiences and fosters loyalty.

A business grounded in genuine connections will always stand out.

4. Authenticity

Be yourself. Guests can tell when you’re not—so stop the act.

Authenticity is essential in hospitality. Yet, so many teams I work with feel they need to become someone else on the floor, changing their voice or putting on a façade. Often, this stems from misguided career advice imparted early on that tells us we aren’t interesting enough as we are.

But here’s the truth: The most engaging and captivating version of yourself is the real one.

People connect with genuine personalities, not manufactured ones. Drop the façade, and bring your authentic self to every interaction. Guests sense authenticity, and it’s what will draw them back again and again.

So, next time you interact with a guest, do a reel for social media, or interview a potential team member, bring your authentic self. That’s the version of you with which people connect.

5. Anticipation & Attention to Detail

Tell guests what you’re going to do, do it, then tell them you’ve done it.

One of the secrets to providing an excellent guest experience is being prompt, responsive, and thorough in communication. A big part of managing guest expectations is being clear about what to expect. Tell guests what you’re going to do, keep them informed while you’re doing it, and follow up afterward.

Increasingly, guests want their visits to feel personalized. Whether you add small, thoughtful touches to a meal, or offering a personalized greeting in a hotel, attention to detail shows guests that they’re valued.

Anticipation of guest needs is what sets hospitality apart from other service-based industries.

6. Alignment

Help your team see how their role fits into the bigger picture. Alignment means connecting each team member’s work with their broader life goals and values. Many people in our industry might not see hospitality as their forever career, but that doesn’t mean their time with us can’t be meaningful.

Find out what matters to each team member, whether it’s professional growth, financial stability, or simply enjoying their work. Then, align their role with these values.

A team that feels connected to their work is more motivated, more focused, and more likely to deliver a higher level of service.

Alignment isn’t just about job roles, it’s about helping people find purpose and satisfaction in what they do. It’s crucial that we build team experiences just like we create guest experiences.

7. Presence

Be engaged in the moment fully with your guests. Presence means engaging completely with what you’re doing.

When you’re talking to a guest, be invested in that moment completely. Avoid distractions, scripted conversations, or rehearsed interactions. Genuine presence is about being open, honest, and interested in their experience.

For leaders, fostering a culture of presence is crucial. Every interaction you have with your team either reinforces or diminishes this value. Be mindful of how your behavior impacts others, and encourage your team to approach each guest with this mindset.

Celebrate moments of genuine connection, and provide feedback when things don’t go as planned. Presence isn’t just a skill; presence is a cultural value that transforms service.

Real-Life Example: The Solmar Resort

To illustrate these principles, I’d like to share a personal experience from the Solmar Resort in Cabo San Lucas, Mexico.

After a hurricane passed near the Baja Peninsula, David and I arrived for a business retreat, only to find the resort quieter than usual. Despite the calm, the staff maintained a vibrant and uplifting culture. They were fully engaged—no one was on their phones, no one was leaning or looking board, no one was gossiping, and the team members greeted each other with genuine joy and fist pumps.

Even with more staff than guests on the property, their sense of purpose and commitment to hospitality was evident. From dancing and singing while performing side duties, to the warm, friendly interactions with us as guests, the experience was unforgettable. The Solmar team embodied the “one-house” approach: everyone worked together seamlessly to deliver an exceptional experience.

During our visit, we experienced true hospitality in action, where every interaction was meaningful an, most importantly, intentional.

Reclaiming the Foundation of Hospitality

The seven principles of hospitality—self-awareness, guest awareness, connection, authenticity, anticipation, alignment, and presence—are not just theoretical ideas. These are actionable values that can transform guest experiences, and set your brand apart in a crowded market.

At its heart, hospitality is about people. It’s about creating an environment where our team and our guests feel welcomed, seen, and valued. If we want to elevate our industry, we need to return to these foundational principles, and train our teams to embody them in every interaction.

So, let’s commit to reclaiming the true essence of hospitality. Whether you’re running a bar, restaurant, or hotel, these principles provide a roadmap to building a culture of excellence that guests won’t soon forget. By focusing on experience and connection, we can redefine hospitality for a modern audience, and make it as impactful as it’s ever been.

Remember, hospitality isn’t just about serving food and beverage, or providing a bed. Hospitality is about creating memories that guests carry with them long after they’ve experienced your brand.

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AI-generated image of two purple Ube Cream Liqueur cocktails on a bar
by David Klemt David Klemt No Comments

Will this Drink Trend Lead Us into 2025?

Will this Drink Trend Lead Us Into 2025?

by David Klemt

AI-generated image of two purple Ube Cream Liqueur cocktails on a bar

AI-generated image.

One of the latest drink trends, a unique cream liqueur made from purple yam, may have the staying power to heat up through New Year’s Eve.

Now, when I describe it as unique, I’m not indulging in PR-speak, I mean it; there’s only one Ube Cream Liqueur. That includes, up to this point, additional expressions. Again, there’s only one Uber Cream Liqueur.

Making this liqueur even more exclusive is the fact that just one distillery produces it: Destileria Barako. They’ve done so since 2016. The distillery makes some other intriguing products as well. For example, there’s a lychee and lemongrass liqueur called Gayuma that also includes vacuum-distilled smoke distillate. Compelling…

So, what is Ube? Put very simply, it’s a lavender-colored cream liqueur made from ube. That’s a purple yam, and the liqueur itself calls the Philippines home. Interestingly, while the liqueur is lavender in color, ube can be violet, purple, lavender, and even white.

Before I go any further, a purple yam is not the same as a purple sweet potato. A purple yam will be, generally speaking, sweeter than its sweet potato counterpart, while being slightly more subtle in terms of flavor profile. Expect vanilla up front, with a subtle nutty undertone and finish.

And if you’re curious as to the meaning of “ube,” it translates from Tagalog to English as “tuber.” Quite a literal name for this special vegetable.

Okay, great. But what about the liqueur that appears to be popping up on craft-cocktail-focused menus in the US?

What is Ube?

On the surface, it’s an imported cream liqueur in an attractive, fashionable bottle.

Seriously, look at the Instagram post below; that’s going to grab guests’ attention.

 

View this post on Instagram

 

A post shared by Ube Cream Liqueur (@ubecreamliqueur)

Going deeper, Ube is made from the eponymous tuber, coconut husks, and sugarcane vodka. The ingredients are sourced from local farms and their communities throughout the islands that make up the Philippines (of which there are more than 7,600).

The liquid itself is rich and creamy, as one would expect. Like its namesake, Ube’s flavor profile includes vanila, and a subtle nuttiness. However, the sugarcane vodka is detectable, and coconut also shines through.

Along with being unique, it’s also versatile. Bar guests can’t really go wrong with ordering it in just about any configuration: neat, chilled, on the rocks, frozen, in a cocktail… Ube is highly adaptable.

And that, if I had to point to a characteristic beyond flavor and mouthfeel, is likely why this cream liqueur is rising in popularity.

Bar teams can get creative with it. Guests can enjoy it in myriad forms. Even the culinary team can get involved, as it’s an intriguing ingredient for dishes (particularly dessert).

Introducing guests to Ube isn’t a hard sell, either. The bottle and liquid itself are appealing to the eye. And while bar and culinary teams can really tap into their imaginations and talents to create quirky sips and dishes, it works in instantly recognizable drinks as well.

For instance, there’s the Ube Mudslide, Purple Russian (a variant of the White Russian, of course), Ube Colada, Ube Coco Old Fashioned, and even the Ubegroni.

Proceed with Caution

Here’s a a viewpoint with which you may be familiar: Once a trend emerges and people jump on it, it’s no longer a trend. Instead, it either experiences widespread adoption, reaches ubiquity, or dies.

Another viewpoint is that due to social media, trends come and go so quickly that even those that stick around for more than a few days tend to fall off quickly.

Search online for Ube and you’ll likely come across posts about finding it in the US that are a year or more old. It seems that the interest in this particular cream liqueur picked up in earnest around August of this year.

All that is to say this: For the most part, unless a person or group of people originates a trend, everyone else will be a step or two behind if they choose to jump on it. Most trends don’t even actually reach that status; they die in their nascent stage: a fad.

So, operators and their teams should be selective when a product, flavor, menu item, preparation, etc. is getting a lot of attention “suddenly.”

Chasing every trend isn’t efficient, and doing so flies in the face of consistency.

Important Considerations

There are several questions an operator should consider and answer before embracing any trend (or fad). Below, the assumption is that the trend involves a specific product.

  • Will this resonate with enough guests to make this profitable?
  • Does this trend work with our brand or are we forcing it to fit artificially?
  • Can it be obtained easily and consistently? If not, can we make our own housemade version? What will that cost, including labor?
  • How much will it cost to add this product to our inventory?
  • What will it cost to train the team to use this product?
  • Who will train the team on this product? What’s the estimated learning curve? What will training cost, in terms of product and labor?
  • In terms of pricing, what’s our projected profit margin per item made with this product? How many do we expect to sell on a daily, weekly, and monthly basis, keeping in mind that this is a consumer trend.
  • How quickly, with the above considerations (and more), can we actually leverage the popularity of this trend? Will it still be popular after we’ve completed our due diligence?

Don’t Abandon Your Standards

This caution isn’t aimed at embracing Ube specifically. Rather, this is advice for considering any trend, product, or menu item.

The standard is for operators to be obsessed with their numbers. Look at the top operators in the business—not necessarily those earning the most awards, but those leading their bars and restaurants to long-term success, and focused on building generational wealth—and you’ll see how much they focus on numbers; they know them inside and out.

All too often it can be tempting to drop standards when something goes sideways. Service goes awry, for example, and we try to take a shortcut to recover.

The same can be said for chasing trends. It can be tempting to just throw a new, trending item on the menu without crunching the numbers, taking a shortcut to leverage the trend as quickly as possible.

A savvy operator will consider the numbers before adding anything to their inventory and menu. It shouldn’t take long, and running the numbers will prove whether the trend is worth pursuing.

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Understanding TAM, SAM, and SOM

Unlocking Growth Potential: Understanding TAM, SAM, and SOM

by Doug Radkey

Image of a person in a suit superimposed over a chart and city skyline

After working through this with a client the other day, we thought it would be a good opportunity to explain the acronyms of TAM, SAM, and SOM.

These concepts can help your business start, stabilize, or scale.

Let’s be real: in the hospitality industry, understanding your market and its potential is paramount for sustainable growth and profitability. This is where the concepts of TAM (Total Addressable Market), SAM (Serviceable Addressable Market), and SOM (Serviceable Obtainable Market) come into play.

For bars, restaurants, and hotels, these metrics aren’t just marketing or financial jargon. Each provides critical insights that inform feasibility studies, shape marketing strategies, and guide business decisions.

Below, we’ll break down each of these concepts, illustrate how to calculate them, and explain their role in building effective strategies for your hospitality business.

The Definitions

TAM (Total Addressable Market)

TAM represents the overall revenue opportunity available if your business held 100 percent of the market share. It is the entire potential market size without any constraints like geography, budget, sociographics, or operational limits.

Example: For a new bar, the TAM would represent the total annual spend of all consumers in your market who drink out, regardless of their preferences, location within a region, or budget.

SAM (Serviceable Addressable Market)

SAM is the portion of TAM that your business can reach realistically, given practical limitations like geographic location, regulatory constraints, more targeted sociographics, and operational scope. Going further, SAM also considers factors that make a portion of the TAM unfeasible for your business to serve.

Example: Using the same bar concept, SAM would represent all the people within a certain radius who are willing to visit a bar with a similar concept, who can afford your menu, and who are within your reach given your physical location.

SOM (Serviceable Obtainable Market)

SOM is the segment of the SAM that your business can capture. This metric accounts for your competitors, market share estimates, and your unique ability to attract your ideal guests within your SAM.

Example: For the bar, SOM would be the percentage of patrons within your SAM that you expect, realistically, to convert into regular guests, taking into account competition, unique value proposition, and brand positioning.

Why These Metrics Matter

Each of these metrics provides a progressively more realistic picture of your business’ revenue potential.

Your business plan cannot be “targeting males and females between 25 to 45 years old.” You have to go much deeper than that to be successful.

TAM shows you the broadest possible opportunity, but SAM narrows it down based on serviceable factors. SOM gives you a realistic goal to aim for based on your most targeted factors.

Their Role in Feasibility Studies and Marketing Plans

In hospitality, feasibility studies are essential for understanding whether a business idea is viable.

When you’re assessing the potential of a new bar, restaurant, or hotel, the TAM, SAM, and SOM calculations give you quantitative data that can help you avoid common mistakes such as overestimating your market potential, or failing to identify target demographics accurately.

Feasibility Studies

  • TAM Analysis: Helps validate whether there’s a broad demand for your concept.
  • SAM Analysis: Identifies a focused portion of the market that fits within your operational range.
  • SOM Analysis: Helps set realistic revenue goals by factoring in competition and market positioning.

When preparing a feasibility study, using TAM, SAM, and SOM ensures that your projections are grounded in reality, giving potential investors or stakeholders confidence in your plan.

Marketing Plans

Once you’ve established a feasible market, TAM, SAM, and SOM inform your marketing strategies.

  • TAM helps you understand the entire universe of potential guests, useful for broader brand awareness campaigns.
  • SAM directs you to specific geographic or demographic segments for targeted campaigns.
  • SOM guides the creation of highly focused, competitive strategies to capture and retain market share in a specific segment.

By utilizing TAM, SAM, and SOM, your marketing plan becomes tailored, efficient, and likely to generate a higher return on investment.

How to Calculate TAM, SAM, and SOM for Your Hospitality Business

Step 1: Define Your Target Market

Before calculating TAM, SAM, and SOM, it’s essential to understand and define your target market. This includes analyzing demographics (age, income, education) and psychographics or sociographics (lifestyle, preferences, values).

For a local bar, restaurant, or hotel, understanding these details about your audience is crucial because your business’ reach will likely be local or regional.

If, for example, you’re opening an elevated cocktail bar, you might define your target market as:

  • Travelers aged 30 to 50 with disposable income between $70,000 and $90,000 per year.
  • Downtown business professionals who are interested in after-office food and beverages.
  • Individuals and tourists seeking upscale F&B and unique guest experiences.

Did you know? In Canada and the US specifically, there are over 65 sociographic or “tapestry” profiles that make up the fabric of our neighborhoods.

Step 2: Calculate TAM

To calculate TAM, consider the total market demand for your type of service.

  • Formula: TAM = (Total number of potential customers) × (Average annual spend per customer)
  • Example for a Bar: If the estimated number of people in your city who visit bars is 200,000, and the average spend per person is $500 annually ($41.67 per month), the TAM would be 200,000 × $500 = $100 million.

Step 3: Calculate SAM

To calculate SAM, refine TAM by narrowing down to the guests you could reach realistically based on your location, budget, and other factors. Use your sociographic/tapestry profiles to help.

  • Formula: SAM = (Total number of reachable guests within your service area) × (Average spend)
  • Example for a Bar: Out of 200,000 potential guests, suppose only 50,000 are within a 10-mile radius who are between 25 and 45 years old, who drink, and who make between $50,000 and $70,000 per year. SAM would be 50,000 × $500 = $25 million.

Step 4: Calculate SOM

Finally, to determine SOM, evaluate how much of the SAM you believe you can capture realistically. This often depends on your competitive positioning, your marketing effectiveness, and operational capacity.

  • Formula: SOM = (Total number of targeted guests you can convert realistically) × (Average spend)
  • Example for a Bar: If you believe you can capture 10 percent of your SAM, SOM would be 5,000 guests × $500 = $2.5 million.
  • Now, compare that to your daily, weekly, and monthly traffic projections and your daily, weekly, and monthly revenue projections. How close are you?

Sample Calculations for a Boutique Hotel Business

To illustrate these calculations, let’s imagine a boutique hotel in a medium-sized city:

  1. TAM Calculation:
    • Target market: All tourists visiting the city annually.
    • Estimated annual visitors: One million.
    • Average annual spend per tourist on accommodations: $1,000.
    • TAM = 1 million × $1,000 = $1 billion.
  2. SAM Calculation:
    • Focused market: Visitors who prefer boutique hotels versus chain flags who are between 22 and 42 years old.
    • Estimated visitors who prefer boutique hotels: 20 percent of TAM (200,000).
    • SAM = 200,000 × $1,000 = $200 million.
  3. SOM Calculation:
    • Realistically, the hotel expects to capture five percent of SAM based on its operations, the number of rooms, its daily rates, and expected occupancy rates.
    • SOM = 10,000 guests × $1,000 = $10 million.

Why Defining Your Target Market is Crucial

All that said, calculating TAM, SAM, and SOM is only effective if you have a clearly defined target market. Hospitality businesses must understand their audience’s demographic and sociographic details, which is why initial market research is so essential.

For instance, if a new restaurant targets health-conscious millennials, knowing their spending patterns, dining preferences, and local competition will make the calculations more accurate.

With detailed sociodemographic insights, you can more precisely estimate TAM, SAM, and SOM, creating a feasibility study that reflects realistic market conditions.

The Benefits of Using TAM, SAM, and SOM in Your Business Planning

By incorporating TAM, SAM, and SOM into your feasibility studies and marketing plans, you can make data-driven decisions that increase your business’ chances of success.

Here’s how each metric adds value for you and your business:

  • Informed Decision-Making: These metrics offer clarity for market potential, helping you avoid costly mistakes.
  • Financial Confidence: TAM, SAM, and SOM provide stakeholders with measurable data, increasing confidence among investors or lenders.
  • Efficient Marketing: Focusing on SOM in marketing efforts allows you to deploy resources effectively, targeting guests you are most likely to convert.
  • Adaptability: These metrics aren’t static; you can adjust TAM, SAM, and SOM as market dynamics change, ensuring your business stays relevant.

Why Now is the Time to Embrace TAM, SAM, and SOM

In a competitive hospitality landscape, using TAM, SAM, and SOM can provide a strategic advantage. By understanding your true market potential, you can design a feasibility study and marketing plan that align with realistic growth goals.

While TAM shows you the big picture, SAM and SOM bring clarity to your specific opportunities, helping you prioritize resources and strategies that will yield the best return.

As you move forward with planning, remember: calculating TAM, SAM, and SOM is not a one-time task. Updating these metrics regularly as your business and the market evolve can provide insights that will keep your brand relevant and profitable.

My final thoughts: Before you dive into launching a new bar, restaurant, or hotel, take the time to do a deep dive into TAM, SAM, and SOM. It’s not just about understanding your market; it’s about maximizing your opportunity to stabilize and then scale within it.

By leveraging TAM, SAM, and SOM, you’ll be equipped to create a hospitality concept that doesn’t just survive but sets a new standard for success.

Image: Canva

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Restaurant or bar owner sitting at the bar, working on a schedule or calendar
by David Klemt David Klemt No Comments

Program for Unique Holidays: November 2024

Program for Unique Holidays: November 2024

by David Klemt

Restaurant or bar owner sitting at the bar, working on a schedule or calendar

I don’t know why but AI seems to think anyone who owns a restaurant or bar has a beard. AI-generated image.

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

Several holidays are set against every date on the calendar, and this month 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?

To provide a handful of examples, November boasts celebrations of the bold and pungent, Gose beer style, stuffing, and metal. Those are all things you can get creative and program around, and celebrate with your guests.

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 October 2024 holidays list, click here.

November 8: Cook Something Bold and Pungent Day

This is the day to shine a spotlight on menu items that are heavy on aromatics, intense flavors, and presentations that demand attention.

November 9: Chaos Never Dies Day

If your bar or restaurant has a chill, relaxing vibe, this may be a great holiday for you and your guests. Chaos Never Dies Day is about mindfulness, relaxation, de-stressing, and, if healthy, socializing with friends and family.

Encourage your guests to visit your venue, silence their phones, and escape for a while.

November 10: Area Code Day

Area Code Day is an excellent time to celebrate your community. Showcase the local producers and collaborators with whom you partner, for example.

November 11: National Metal Day

Does your bar play metal? Do you feature live metal bands? Would you say your overall theme and ambiance is metal? Have I got a holiday for you…

November 15: National Philanthropy Day

Organize food, coat, or clothing drives. Highlight a charitable organization that your bar, restaurant, or hotel supports. This is one of the best days of the year for you and your guests to get involved with organizations that improve the community.

November 17: International Happy Gose Day

Several centuries old, Gose comes to us from Germany. Generally speaking, this wheat beer is tart, sour, spicy, and salty. Of course, craft brewers love to make styles their own, so there are Goses out there with other dominant characteristics.

Fans of this style of beer will tell you that it pairs well with everything. However, when developing your Gose promotion, keep grilled meats, seafood, roasted root vegetables, and tangy, powerful cheeses in mind.

November 21: National Stuffing Day

We all know that person whose main food focus on Thanksgiving (American, Canadian, or otherwise) is stuffing (or dressing, depending on preparation and pedantry). Sure, the other dishes are great, but they may just stab someone in the hand with their fork if they get between them and stuffing. In fact, we may be that person.

In the lead-up to Thanksgiving, task your kitchen with creating an irresistible stuffing (or dressing), and preparing it in multiple ways: waffled, sandwich, etc. Who knows? It may just lead to Thanksgiving Eve takeout orders.

November 22: National Farm-City Week

People celebrate this week to honor the farmers who help make American Thanksgiving possible. Of course, farmers deserve recognition for more than just one holiday.

This is a fantastic time of year to call attention to the farms and farmers with whom your restaurant partners.

November 29: Sinkie Day

Okay, so this one could be interesting. With all the prep and formality that can go into some people’s Thanksgiving celebrations, Sinkie Day offers welcome casualness. In simple terms, it’s about grabbing a bite while standing over a sink. Basically, rejecting a dining table, and eating anywhere else.

One spin you and your restaurant team can put on Sinkie Day is to highlight the items on your menu that are transported and eaten just about anywhere easily.

November 30: National Mason Jar Day

Cocktails, their alcohol-free counterparts, soft drinks like teas and sodas, kombucha, desserts, even salads… There’s a lot a creative bar or restaurant team can do with menu items, mason jars, and presentations.

Image: Microsoft Designer

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Flipping through an open book
by David Klemt David Klemt No Comments

5 Books to Read this Month: November 2024

5 Books to Read this Month: November 2024

by David Klemt

Flipping through an open book

Our November book selections focus on recognizing your own potential, developing and enhancing culinary and cocktail skills, and leadership.

To review the book recommendations from October 2024, click here.

Let’s jump in!

Soups, Salads, Sandwiches: A Cookbook

Who doesn’t appreciate dining on a soup, salad, and sandwich? It’s one of the most famous food-based trinities in the world. Each of these individual items is a blank canvas for creativity from your kitchen team; they can be as simple or complex and inventive as you and your team desire. A soup, salad, or sandwich can introduce guests to new flavors. When presented as a trio, they can also tell a cohesive, compelling culinary story. In this aptly named cookbook, Matty Matheson tells interesting stories, and shares more than 120 recipes.

From Amazon: “Packed with character, personal stories, 126 scrumptious recipes, and vivid photographs of a day-in-the-life with Matty and his family, Soups, Salads, Sandwiches will have you fearlessly whipping up your own combinations in the kitchen.”

Order your copy today on Amazon, or wherever you get books.

Unsliced: How to Stay Whole in the Pizzeria Industry

Mike Bausch, the author of Unsliced, was one of the first guests on the Bar Hacks podcast. If you’d like to give his episode a listen, it’s number number 18 (Spotify link | Apple Podcasts link). In his book, Bausch lays everything out for pizzeria operators, from leadership and marketing to adjusting your mindset.

These two sentences from the description of Unsliced say it all, and they resonate with me and my partners at KRG Hospitality: “It’s hard not to get discouraged in this business. But with the right perspective, smart systems, and hard work, your restaurant can thrive.”

From Amazon: “If you own a pizzeria, you know something most people don’t: the pizza business is more cutthroat, stressful, and multifaceted than Wall Street. Every day is a constant struggle to manage overhead, attract loyal customers, stand out from the pack, and keep your employees motivated.

“Running a pizzeria is hard. But it doesn’t have to be as hard as you think.”

Pick this book up here.

The Bartender’s Pantry: A Beverage Handbook for the Universal Bar

Published earlier this year, The Bartender’s Pantry by Jim Meehan and Bart Sasso offers a unique departure from the standard cocktail recipe book. As you glean from the word “pantry” in the title of this book, Meehan and Sasso encourage bartenders to take a culinary approach to crafting drinks. However, The Bartender’s Pantry is also aimed at cooks. Really, this is a great book that should help bring the front and back of houses together. There are more than 100 recipes, and this book is available in a flexibound version, which makes it infinitely cool.

From Amazon: “Each chapter features artfully illustrated recipes incorporating the featured ingredients that bring the reader into the kitchens of some of the world’s most revered bartenders, baristas, importers, and chefs. Their innovative takes on traditional recipes including horchata, matcha, Turkish coffee, sorrel, kvass, and ice cream are followed by full-page photos of over 50 cocktails that incorporate them including modern classics like the Gin Basil Smash, Earl Grey MarTEAni and Penicillin.”

Grab the flexibound version from Amazon.

Beyond the Hammer: A Fresh Approach to Leadership, Culture, and Building High Performance Teams

Author Brian Gottlieb identifies three challenges that just about every business faces: leading staff to take ownership of the work they do; friction between departments or separate teams; and producing inconsistent results. He also presents a strategy in Beyond the Hammer to overcome these challenges, in addition to high employee turnover, and burnout.

From Amazon: “These common issues create high turnover and force managers into crisis mode where they’re consumed putting out daily fires. Over time, the very nature of the business changes and a new culture emerges; one shaped by the lowest level of acceptable behavior.”

Hardcover available on Amazon.

Hidden Potential: The Science of Achieving Greater Things

If you’ve listened to episode 100 of the KRG Hospitality-produced Bar Hacks podcast (Spotify link | Apple Podcasts link), you’ve heard Tako Chang talk about discovering the Double Chicken Please team’s hidden talents. Moreover, you’ve heard how impressed she is with the team’s skills, and encouraging each member to develop them further. That’s an example of great leadership.

This book, written by organizational psychologist Adam Grant, addresses finding and exploring your own potential; doing the same for others; and why we should focus more on learning than working ourselves to the bone to achieve success.

From Amazon: “Hidden Potential offers a new framework for raising aspirations and exceeding expectations. Adam Grant weaves together groundbreaking evidence, surprising insights, and vivid storytelling that takes us from the classroom to the boardroom, the playground to the Olympics, and underground to outer space. He shows that progress depends less on how hard you work than how well you learn. Growth is not about the genius you possess—it’s about the character you develop. Grant explores how to build the character skills and motivational structures to realize our own potential, and how to design systems that create opportunities for those who have been underrated and overlooked.”

The hardcover costs less than the paperback right now on Amazon.

Image: Image: Mikołaj on Unsplash

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A person standing in water, creating a circle and sparks with steel wool and fire
by David Klemt David Klemt No Comments

Why Your Inner Circle Matters

Why Your Inner Circle Matters

by Jennifer Radkey

A person standing in water, creating a circle and sparks with steel wool and fire

Is your inner circle creating sparks of inspiration, or burning you down?

In the world of hospitality, where every interaction counts, there’s one factor that could be influencing your success more than you realize: the people with whom you surround yourself.

As a hospitality professional, you work in highly social environments, so it’s essential to understand the impact your inner circle has on your mindset, and the success of your business.

How can the energy and attitudes of those around you shape your success? And how can being intentional about your relationships elevate both your personal and professional life?

Let’s take a closer look.

The Power of Influence

We’ve all heard the saying, “You are the average of the five people you spend the most time with.”

It’s a concept that rings true in both personal and professional settings. In the hospitality industry, where relationships and team dynamics are crucial, the people you spend your time with can have a major impact on your mindset.

Your inner circle can either lift you up or drag you down, influencing your thoughts, behaviors, and even your beliefs about what’s possible. When you need to maintain a positive mindset, this influence can make or break you.

Energy and Attitude: The Contagious Effect

Ever notice how working with someone who’s upbeat and energetic can make a shift fly by? Or how spending time with a negative, cynical colleague can drain your motivation?

The energy people bring to the table is contagious. Over time, it seeps into your mindset.

Think of your mindset like a garden. If you plant yourself in rich, fertile soil—surrounded by positivity, encouragement, and growth—your mindset will flourish. But if your garden is full of weeds—like negativity, doubt, and pessimism—it becomes much harder to grow.

In hospitality, where guest service relies heavily on positivity, allowing negative energy to take root can stifle your personal growth, and your ability to grow a loyal guest base.

As a team leader, your mindset sets the tone for the entire team. Show up to team meetings with a negative mindset and your meetings will sound like reprimands and demands instead of inspiration, growth, and encouragement.

The Role of Supportive Relationships

One of the most powerful ways others influence us is through their support—or lack thereof. In a high-pressure environment, having people around you who believe in your potential, challenge you to improve, and celebrate your wins can be transformative.

Supportive relationships remind you of your goals when you’re feeling down, push you to persevere when things get tough, and keep you focused in the chaos.

On the opposite side, if you’re surrounded by people who doubt your ambitions or criticize your efforts, it can be difficult to stay motivated. In the long run, these negative influences can damage your confidence, and make you question your ability to achieve your goals.

In an industry where confidence is crucial to providing top-notch service and leading successful teams, the people you surround yourself with can either enhance or diminish your sense of worth. By aligning yourself with those who inspire and uplift you, you’ll be better equipped to maintain a positive mindset, even in challenging situations.

Setting Boundaries to Protect Your Mindset

So, how do you ensure that the people around you contribute positively to your mindset and success? It starts with setting boundaries.

Boundaries are essential for protecting your mental and emotional well-being. If someone’s energy is toxic or draining, it’s important to limit the influence they have over you.

In business, where teamwork is essential, setting boundaries might not mean cutting people out of your life completely. However, it does mean being mindful of how much time and energy you invest in relationships that aren’t serving your growth. It also means being aware of the energy of a person when choosing whether to have them join your team or not.

Protecting your mental space ensures that you remain focused on your goals, and can give your best to your team, your guests, and yourself.

Seeking Growth-Oriented People

To thrive in both business and life, it’s essential to seek out people who are growth-oriented; those who are always looking to improve themselves, who push you to think bigger, and who motivate you to take action.

Building a network of ambitious, driven individuals within the hospitality industry can be transformative.

When you surround yourself with people who are passionate about growth, their energy becomes contagious. They’ll challenge you to step outside your comfort zone, pursue new opportunities, and push past self-imposed limits.

Taking Action: Evaluate Your Circle

Take a moment to reflect on the people in your life, particularly within your professional circle.

Who are the five people with whom you spend the most time? How do they make you feel? Do they lift you up, or hold you back? Are they helping you move closer to your goals, or keeping you stagnant?

This exercise can be eye-opening, and it’s an essential step in building a more positive, growth-focused environment for yourself. Remember, only you can choose what mindset you want to adopt, and how you will allow others to influence you.

Final Thoughts: Be Intentional About Your Circle

As a hospitality professional, your mindset is key to your success. The people around you play a major role in shaping it.

Be intentional about surrounding yourself with those who uplift, inspire, and challenge you. Protect your mental space with boundaries, and actively seek out relationships that align with your goals and values.

If you’re looking for a supportive community of like-minded hospitality professionals, join us in The Collective, a group coaching program designed to help you achieve your goals with clarity and confidence. Together, we’ll create an environment that supports both personal and professional growth.

Remember, you have control over who you allow into your life, and how much influence they have. Choose wisely, and watch your success story unfold.

Cheers to personal and professional well-being!

Image: Harry Shelton on Pexels

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Person holding up fingers, making the "focus" film or photograph gesture
by David Klemt David Klemt No Comments

Shifting Focus on KPIs

Shifting Focus on KPIs

by Doug Radkey

Person holding up fingers, making the "focus" film or photograph gesture

Key Performance Indicators (KPIs) have long been the cornerstone of measuring success in business, particularly in the hospitality industry.

Restaurants, bars, and hotels rely on these metrics to track occupancy rates, average ticket prices, cost of goods, and guest satisfaction scores, among many others. However, as the industry evolves, so too must our understanding of what truly drives sustainable success.

The traditional KPIs measure outputs—numerical results that often focus on profitability, efficiency, and growth. But as hospitality businesses become more guest-centric and employee-driven, we need to rethink what KPIs really mean.

Instead of focusing solely on these cold, hard numbers, we should be emphasizing what I call the new KPI: Keeping People Informed, Involved, Interested, and Inspired.

This shift acknowledges that success in hospitality is not just about what’s measurable on a spreadsheet but also about engaging employees, nurturing guest and vendor relationships, and fostering a culture of collaboration and growth.

This article, which I have been planning to write for quite some time now, will explore how redefining KPIs to prioritize keeping people informed, involved, interested, and inspired can transform the hospitality industry, leading to more engaged teams, happier guests, and better business outcomes.

KPI: Keeping People Informed

In any form of hospitality business, from boutique hotels to bars and restaurants, the foundation of success lies in clarity, transparency, and communication.

Keeping people informed, whether they’re employees, guests, or stakeholders, is key to fostering trust, loyalty, and operational clarity.

Informing Employees

Despite the growth in technology, employees are still the lifeblood of the hospitality industry. Informed employees are empowered employees.

When they understand the bigger picture—what the business is trying to achieve, and how their role contributes to that goal—they feel a greater sense of purpose and motivation.

In the past, KPIs often stayed in the boardroom. If they left the boardroom, they remained among the leadership team on the floor. So, either way they were detached from true day-to-day operations.

A shift toward the new KPI requires involving employees in the business’ key metrics, and sharing relevant information transparently.

For example, when a hotel shares its Total Guest Revenue Management goal and explains the efforts needed to improve these numbers, every department can align their strategies to support this objective. Housekeeping understands the need for timely room turnovers. The marketing team knows where to focus their efforts. Guest services is equipped to handle the flow of on-property guests more efficiently.

Practical Steps:

  • Hold regular meetings to discuss current business performance and future goals.
  • Share performance dashboards that are accessible and understandable to all staff members.
  • Break down KPIs into department-specific insights, so each team knows how their performance impacts the overall business.

Informing Guests

On the guest side, keeping them equally informed is crucial in today’s digital age, where transparency and real-time information drive decision-making.

Whether that means updating guests on room availability, menu changes, or special promotions, being proactive with information helps manage expectations, and creates a seamless guest experience.

Hotels and restaurants can use digital platforms to keep guests informed, providing them with personalized experiences. For instance, a hotel app that informs guests about spa availability or the restaurant’s current waitlist times ensures that each guest feels valued, and in control of their experience.

Practical Steps:

  • Implement digital platforms, like apps or SMS services, that keep guests informed of their bookings, promotions, and real-time service updates.
  • Train staff to be communicative and transparent about wait times, service delays, or special offerings to manage guest expectations.

KPI: Keeping People Involved

Engaging with employees and involving them in the decision-making process is crucial for motivation and a sense of ownership.

KPIs should not be top-down metrics that only the leadership team values. Instead, they should provide a framework that allows employees to contribute actively, and understand how their efforts influence success.

Involving Employees

In the traditional sense, KPIs are viewed as targets employees must meet, and are provided without much context.

Keeping people involved means allowing employees to help define these targets, along with the pathways to achieve them. Involving employees and allowing them to set their own performance indicators gives them ownership of their work, and makes them feel accountable for outcomes.

For example, a restaurant can engage its service staff by involving them in discussions about upselling, suggesting specific strategies that they feel comfortable executing. They become part of the plan to improve the average ticket price or increase sales of high-margin items, rather than feeling like they’re being micromanaged.

This approach cultivates a culture of continuous improvement, collaboration, and engagement. When employees feel that their input is valued and implemented, they are more likely to be motivated to contribute actively, and innovate within their roles.

Practical Steps:

  • Host brainstorming sessions with employees to identify goals, challenges, and solutions. This fosters a sense of collaboration and inclusion.
  • Implement feedback loops where staff can share what’s working and what’s not on a consistent basis. Adjust KPIs based on this real-time insight.

Involving Guests

In the hospitality industry, guest involvement often determines the quality of their experience. Personalized service, where guests are involved in customizing their stay or dining experience, results in higher satisfaction levels.

From hotels offering customizable room amenities to restaurants allowing diners to build their own experiences, guest involvement directly correlates to guest loyalty and satisfaction.

Practical Steps:

  • Offer personalized experiences, such as allowing hotel guests to choose room preferences, or dining guests to customize their meals and dining experience.
  • Utilize surveys, post-stay feedback apps, or other mechanisms to involve guests in shaping future services and experiences.

KPI: Keeping People Interested

Maintaining interest and enthusiasm among employees and guests alike is vital for long-term success.

The new KPI focuses on creating a sense of purpose, engagement, and excitement about the work being done.

Keeping Employees Interested

Employees who are interested in their work are far more productive. They’re also committed to delivering high-quality service.

Traditional KPIs can sometimes feel disconnected from day-to-day tasks. Reframing KPIs to focus on team engagement and purpose helps keep employees interested in their roles. This is where challenging yet meaningful KPIs come into play.

For instance, a restaurant’s kitchen staff can be challenged to reduce food waste by five percent. Instead of just announcing this target, the leadership team should encourage the kitchen to come up with the strategies to achieve it. Whether that means repurposing on-hand ingredients for an LTO or improving portion control, the involvement and challenge keep staff interested and motivated.

Reviewing progress regularly, celebrating milestones, and recognizing achievements enhances employees’ engagement and satisfaction, keeping them interested in their contributions to the team’s success.

Practical Steps:

  • Implement monthly or quarterly team challenges that are tied to larger business objectives, with recognition or rewards for achieving these targets.
  • Organize regular check-ins to discuss career development, skill development, and other methods of keeping employees passionate about their work.

Keeping Guests Interested

The modern guest is no longer interested in just receiving a meal or room; they’re seeking a memorable experience. Hotels, bars, and restaurants must innovate constantly to keep guests coming back.

Whether through offering seasonal menus or LTOs, hosting unique on-premise events, or incorporating local culture into the experience, keeping guests interested requires ongoing creativity.

Practical Steps:

  • Rotate seasonal offerings or limited-time events to keep the brand fresh and exciting.
  • Personalize guest experiences based on previous stays, orders, or preferences.

KPI: Keeping People Inspired

Finally, people—employees and guests—need to be inspired. Inspiration fuels action, creativity, and, above all, loyalty.

When employees are inspired, they go above and beyond in their roles. When guests are inspired, they become loyal advocates of your brand.

Inspiring Employees

Traditional KPIs rarely inspire employees; they just feel like boxes to be checked.

But the new KPI focuses on creating ambitious yet attainable targets that challenge employees to push their boundaries. This includes setting stretch goals that inspire employees to think creatively, and innovate.

For example, a bartender could be challenged to create a new cocktail using sustainable ingredients. As another example, a hotel service staff member could be encouraged to improve guest check-in times while maintaining high guest satisfaction scores.

Leaders must also inspire their teams by sharing success stories through pre-shift meetings, fostering a positive workplace culture, and providing opportunities for growth and development. When employees are inspired by their leaders, they are more likely to take initiative, and drive the business forward.

Practical Steps:

  • Set SMART, ambitious goals that push employees out of their comfort zones but are still attainable.
  • Recognize and celebrate those who exceed expectations, and inspire others to do the same.

Inspiring Guests

Inspiration isn’t just internal; guests also need to feel inspired by the spaces and services they encounter.

In guests, a feeling of inspiration can be achieved through extraordinary design, unique offerings, or service that goes above and beyond. An inspired guest becomes a loyal one who shares their experiences, and recommends the business to others.

Practical Steps:

  • Design spaces and experiences that delight guests, and exceed their expectations.
  • Use storytelling in your marketing to inspire guests before they even walk through your doors. Then through a curated guest journey map, encourage them to share their experience with their network.

The New Vision: Why Now is the Time for Clarity

As we look ahead in this industry, there has never been a better time to build clarity in your hospitality business.

The post-pandemic landscape has shifted guest expectations, employee needs, and operational requirements. Businesses that succeed in this new environment will be those that understand the importance of keeping people informed, involved, interested, and inspired.

Clarity in your vision and execution will set your business apart in a competitive and dynamic market. By focusing on this new form of KPI, you can create a hospitality brand that not only survives but exceeds expectations in the years to come.

So, as you plan for the year ahead, ask yourself how you can keep your team and guests more informed, involved, interested, and inspired.

The answer will unlock your path to long-term success.

Image: Canva

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A bartender behind a bar top that's one giant touch screen, reviewing recipes
by David Klemt David Klemt No Comments

Heavy-Hitter Hardware: Bar Equipment

Heavy-Hitter Hardware: Bar Equipment

by David Klemt

A bartender behind a bar top that's one giant touch screen, reviewing recipes

In how many years do we all think this type of bar top will be more mainstream? Note: AI-generated image.

We have clients planning to open their new concepts in 2025, so we’re sharing bar equipment innovations to inspire you and your bar plans.

There’s a lot to consider when transforming the vision for your space into a brick-and-mortar reality. Some of it is fun and exciting—drink menus and recipes, logo and branding, theme—and some is more technical (read: less exciting).

Of course, if you’re into design, precision, and equipment, selecting hardware and planning layout is probably fairly exciting. It is to us at KRG Hospitality!

To be clear, you won’t find bar tools in this article. I think the Flavour Blaster is rad, and I’ve been to my fair share of bars that use rotovaps, centrifuges, immersion circulators, liquid nitrogen, and sous vide machines.

Instead, I’m talking about the hardware that creates each bartender’s workstation; the cocktail cockpits that help ensure consistency, elevate the guest experience, and generate revenue.

Speaking of which…

Ergonomic Bar Stations

Roughly a decade ago, Perlick’s engineers partnered with one of the world’s most famous bartenders.

The company has been designing and manufacturing commercial bar equipment for decades. In 2015, they took their manufacturing to an entirely new level with the Tobin Ellis Signature Cocktail Station.

If you don’t know Tobin Ellis, definitely Google him after you finish this article. What you need to know now is that he has always been a proponent of proper bar design. I’ve attended many of his speaking appearances over the years, and he has driven one key point home during almost every presentation: Bartenders need to be involved in the bar design process.

Simply put, many interior designers have never worked behind a bar. Often times, they design bars that are inefficient; it’s just a reality of this business.

When Perlick and Ellis unveiled their cocktail station, it changed the game. Putting an emphasis on ergonomics and efficiency was—and still is—transformative.

Benefits

Bartenders who aren’t blowing out their backs over the course of every shift are happier and healthier. Ergonomic bar stations are designed to fight strain, pain, hyperextension injuries, and fatigue.

Further, not having to leave their station to find tools, drinkware, bottles, and ingredients makes bartenders more efficient, and faster.

I shouldn’t have to point out that bar owners and operators should want their bartenders to work without risking damage to their bodies. Nor should I have to point out that a happy bartender improves the guest experience.

Of course, this goes for every role in a hospitality business. There are choices and investments owners and operators can (and should) make at the start of their projects to improve the employee experience. There should be no division between the guest and team experience; both are paramount, and both must be valued.

While ergonomic bar stations aren’t cheap, their pricing is fair in contrast to the revenue they can help bartenders generate. A reduction in injuries and fatigue, and related callouts, are just some of the benefits. Increased efficiency and speed are two more key advantages over standard stations.

Perlick, the pioneer, is no longer the only company manufacturing ergonomic bar stations. Behind Bars, EuroBar, and Krowne are a few examples of other brands with similar bar stations, so there are other options out there.

Modular Bar Stations

Ergonomics aren’t the only innovation in bar stations. While planning and laying out your bar, you can take advantage of modular offerings.

Different concepts have different needs, it’s that simple. If this were false, bar station manufacturers wouldn’t offer modular options; it wouldn’t make financial sense.

Operators are now able to select the hardware they want. The days of paying for, and putting up with, features that simply take up space and serve no purpose for a particular concept are over.

Bar sinks, speed rails, drain boards, trash stations, drawers and storage, blender stations, coffee benches… There are even manufacturers who make “voids” available. These are dies that hide lines and cords, and cut installation time significantly.

In addition to customizing your layout from the start, modular components mean your concept your grow. Your needs, and those of your bar team, may change over time. Rather than having to rip out bar stations and start over, a modular design allows hardware to be moved or replaced, saving time and money.

While this approach requires more consideration during the planning process, it’s far more efficient and beneficial than settling for pricey equipment that’s not exactly what you and your team want. Further, many items meant for modular bar design are now off the shelf, reducing lead time.

Interactive Bar Tops

The image at the top of this article alludes to this particular innovation. There are bar tops out there that are essentially giant touch screens.

For the most part, these bar tops appear to be focused on wowing guests. They register touch, so they offer an interactive element that some guests will find engaging.

However, I’ve seen more than one demo suggesting that interactive bar tops are also capable of recognizing drinkware. So, a bartender, when serving a drink to a guest, would be able to do so with an accompanying animation. Think of a Dark n Stormy followed by a wave, or a Cosmo with a cosmic, comet trail.

Another feature is the ability to display promotional videos or advertisements. Personally, I’d only want to see the occasional ad for an inhouse promotion, but I can see where the sponsor for a special event would find ads appealing.

However, I expect, some time in the future, for bartenders to have access to more features. POS integration could be powerful, as could the ability to look up a recipe. (Of course, I’d prefer the bar team have signature cocktail recipes memorized, but I see training program potential here.)

Anyone considering an interactive bar top should look for a few features. For one, strength. If glassware can scratch or damage the bar top, it’s not a good idea. Guests don’t always use coasters or bevnaps when they’re provided.

Another consideration is longevity, and therefore terms of any warranty. Finally, operators should take installation into account; if liquid can get underneath the bar top, that’s no good.

Basically, I don’t think these are past the gimmick stage. But I do think operators should keep tabs on interactive bar tops and their eventual improvement.

Self-Service Kiosks

Self-ordering kiosks have, at this point, become ubiquitous. This is particularly true in the QSR space.

Makes sense, right? A guest can stroll through the doors of their favorite fast-food restaurant, head straight to an ordering kiosk, pay, and wait for their order rather than wait in a line if there’s a rush at the counter.

However, I’m talking about a different type of self-service kiosk: the self-pour variety.

Announced earlier this year, as an example, was the iPourIt Kiosk.

You may be familiar with their flagship product, the iPourIt Tap Wall. These impressive, custom installations empower guests to try a range of products on their own schedule. They don’t have to wait for a server to come by every time they want to sample a different beverage. Further, the beverage options aren’t limited to wine or beer; operators can offer cocktails (with or without alcohol), coffee, tea, kombucha, etc.

The custom tap walls also serve as stunning centerpieces, with some venues opting for more than 100 self-serve panels. Of course, that means planning for the construction of the tap wall.

Or, you can opt for a self-pour kiosk.

These operate similarly to tap wall panels, but they’re a self-contained bit of kit that can be rolled and locked into place. I can certainly see the potential for bars or restaurants to leverage such kiosks for brunch service, or to introduce and test new beverages. And there’s definitely potential for hotels to use these kiosks to offer guests convenience and a memorable experience.

Efficient Washers

I’m sure you’re familiar with energy-efficient equipment. In America, it has become common for people seeking equipment in both commercial and residential settings to look for the Energy Star logo.

However, there’s more to consider than just energy costs related to electricity. For example, operators should search for “temperature recovery” or “heat recovery” when choosing glass washers.

These washers make use of internal heat “boosters” to sanitize glassware; they only need a cold water hookup. That’s just one way in which these washers operate in an energy-efficient way, and reduce operational costs.

The heat recovery system also dries and sanitizes glasses more quickly. Further, they’re designed to reduce how much water vapor escapes from the unit, meaning they’re far better for underbar placement.

In addition to washers that are recovery system equipped, operators should look for other energy-efficient features. There are washers that operate at low temperature, and washers that use less water than their standard counterparts.

Other features to consider are soft start (reduces noise, and prevents damage to glassware); reduced time per cycle (two minutes is a good place to start); unit height (ergonomics for the user); individual internal components that are easily accessed, removed, and serviced; and the material used for construction. To explain the latter, a washer built to retain heat and prevent it from escaping too quickly.

When operators plan ahead, including starting with a feasibility and identifying the ideal site, they can maximize their return on investment. Ergonomics and efficiency come at an initial cost, but the ROI has the potential to pay for these benefits and generate profit quickly.

Image: Microsoft Designer

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Upscale to luxury hotel room image from Canva
by David Klemt David Klemt No Comments

Hotel Total + Guest Revenue Management

Hotel Total + Guest Revenue Management: A Comprehensive Approach

by Doug Radkey

Upscale to luxury hotel room image from Canva

In the evolving landscape of hotel revenue management, the focus on traditional metrics like RevPAR (Revenue Per Available Room) and ADR (Average Daily Rate) is shifting.

While these metrics have been the gold standard for assessing a hotel’s performance, they no longer provide a complete picture.

Why, you ask? Because guest expectations and spending patterns have evolved. Hotels are not just places to stay; they are multi-faceted destinations offering a variety of services, such as dining, spa treatments, recreational activities, events, and more.

RevPAR and ADR measure performance based solely on room occupancy and rates, which overlooks the revenue generated from these additional services. They do not account for on-premise spending by guests on activities, food and beverage, wellness services, or other ancillary revenue streams that can impact a hotel’s overall profitability significantly.

Further, these traditional metrics fail to capture the qualitative aspects of the guest experience, such as personalized services, guest satisfaction, and long-term loyalty, all of which play a crucial role in a hotel’s success.

In essence, relying exclusively on RevPAR and ADR can lead to a narrow, and potentially misleading, view of a hotel’s financial health, missing out on opportunities to build a true legacy within this industry.

Where do we go from here, then? Enter Total Revenue Management (TRM) and Revenue Per Available Guest (RevPAG). These “new” metrics offer a more holistic view of a hotel’s financial health, moving beyond just room revenue to encompass the total guest experience, and the entire property’s revenue potential.

Understanding Total Revenue Management (TRM)

Total Revenue Management is a modernized approach that measures and maximizes revenue across all revenue streams within a hotel.

This includes rooms, food and beverage, spa services, recreational activities, and any other revenue-generating departments. TRM is about synchronizing and optimizing these various revenue streams to elevate the hotel’s total profit margin.

Let’s put this into perspective. Picture yourself as a hotel operator in Las Vegas. Maybe there is an instance where you have a group of high-rolling guests staying at your casino hotel/resort. Instead of charging them for their rooms, you decide to comp their stay entirely.

To some, giving away a free room in a city where occupancy rates are crucial might seem like a risky move. But you know that the cost of the room will be a drop in the bucket compared to the potential revenue they could generate on the casino floor, and on-site bar and restaurant. These guests end up spending hours at the tables and slot machines, contributing far more to the bottom line than a single night’s room rate ever could.

But it’s not just about the high rollers. What about off-peak times, where you have to get creative to keep the revenue flowing?

Perhaps you offer discounted spa treatments to your guests on weekdays when the hotel isn’t as busy. To your surprise, these guests who wouldn’t typically splurge on spa services took advantage of the discounted rates. This not only increases your spa revenue during slow periods but also enhances the overall guest experience, turning casual visitors into loyal guests.

These experiences are just two quick samples showcasing how maximizing revenue isn’t about charging for every service; it’s about understanding the broader picture, and making strategic decisions that drive total revenue for your property, every single day.

The framework of TRM is all about understanding the affiliation of each revenue stream available within your property. By taking a comprehensive view of the property’s revenue potential, you can create packages and services that encourage spending across all departments, not just the rooms.

The 5 Advantages of Total Revenue Management

It’s safe to say that implementing TRM can lead to a more robust and modern operation that benefits your hotel in several key areas:

  • Revenue Growth: TRM goes beyond just room revenue. By focusing on every revenue stream—be it dining, spa services, or recreational activities—TRM maximizes your hotel’s overall revenue potential. This comprehensive approach ensures that every aspect of the guest experience contributes to the bottom line, leading to a more diversified and stable revenue base.
  • Enhanced Asset Utilization: TRM encourages the optimal use of all hotel facilities, from restaurants to event spaces and wellness centers. By identifying underutilized assets and creating strategies to boost their usage, such as offering special packages or promotions, your hotel can increase its profitability significantly. This not only drives revenue but also elevates the guest experience by offering more value-added services.
  • Streamlined Operational Costs: A key benefit of TRM is the ability to streamline operations across various departments. Leveraging data and cross-departmental insights improves your hotel’s resource allocation, waste reduction, and implementation of more cost-effective practices. This leads to lower operational costs and increased profit margins, allowing your hotel to reinvest in areas that perhaps enhance the guest experience.
  • Unified Team Effort: TRM fosters a cohesive workforce by aligning all departments with a common goal of maximizing total revenue. When the front desk, housekeeping, food and beverage, and other teams are all working towards the same objectives, it leads to several improvements. These include enhanced productivity, improved guest satisfaction, and a seamless experience for guests. This unified approach creates a culture where everyone understands how their role impacts your hotel’s success.
  • Boosted Efficiency and Productivity: Implementing TRM encourages different departments to collaborate more effectively, streamlining processes and reducing redundancies. By focusing on total revenue rather than isolated departmental metrics, your hotel can create a more dynamic and responsive operation. This increased efficiency not only enhances the guest experience, it also drives higher employee satisfaction by creating a more organized and purpose-driven work environment.

Implementing Total Revenue Management

The first step to implementing TRM is to invest in integrated Property Management Systems (PMS) such as Mews, and Revenue Management Systems (RMS) such as Atomize. These systems are essential for tracking, reporting, and forecasting revenue across the entire property.

Further, such platforms provide real-time data that helps inform strategic decisions.

One of the biggest challenges in implementing TRM, however, is bridging the gap between technology, staff, and different departments.

Hotels must ensure that data flows across all departments seamlessly, allowing for cohesive decision making. This requires both employees and the property’s infrastructure to adapt to new behaviors and processes. Staff training and a culture that embraces data-driven decision making are crucial for the successful implementation of TRM.

The Transition from RevPAR to Revenue Per Available Guest (RevPAG)

While TRM offers a broad view of the hotel’s revenue potential, RevPAG provides a more guest-centric metric for assessing performance.

  • RevPAR (Revenue Per Available Room): You’re likely familiar with this one. This is the traditional metric that provides a quick snapshot of a hotel’s performance by considering both occupancy (OCC) and the average daily rate (ADR). While useful, it focuses solely on room revenue, ignoring other revenue streams, and the overall guest experience.
  • RevPAG (Revenue Per Available Guest): Unlike RevPAR, RevPAG looks at total revenue generated by each guest during their stay, regardless of how many rooms are sold, or how many guests occupy a room. It captures all spending, including dining, spa services, recreational activities, and more. This metric offers a more advanced understanding of guest behavior, and their total contribution to the hotel’s revenue.

The 4 Advantages of Revenue Per Available Guest

Focusing on RevPAG can drive on-premise spending, and enhance the guest experience. Some advantages for your hotel may include the benefits below.

  • Engaging Loyalty Programs: Loyalty programs are a powerful tool for encouraging repeat visits and on-property spending. Offering rewards, exclusive perks, and personalized incentives helps your operation foster long-term relationships with guests. Such programs prompt guests to return, and continue spending within the hotel. A well-designed loyalty program not only increases revenue per guest but also strengthens brand loyalty, turning one-time visitors into lifelong advocates.
  • Personalized On-Site Experiences: Understanding guest preferences will further allow your hotel to craft tailored packages and experiences that encourage guests to spend more on-property. Whether it’s guided tours, hands-on cooking or mixology classes, or themed live entertainment, these curated activities enhance the guest experience, and drive additional revenue. Personalized offerings create memorable moments that guests are willing to pay a premium for, increasing overall spend per guest.
  • Wellness and Lifestyle Services: Investing in wellness services such as spas, fitness centers, and recreational facilities opens up new revenue streams, and enhances the overall guest experience. By offering wellness packages, relaxation treatments, or fitness classes, your hotel can cater to the growing demand for health and wellness experiences. These services encourage guests to spend more on-premise, turning your hotel into a desired destination that meets various guest needs.
  • Elevated Dining and Beverage Offerings: Exceptional culinary and mixology experiences can enhance on-premise spending significantly. By offering unique dining options like chef’s table events, wine tastings, or mixology masterclasses, your hotel can attract food and beverage enthusiasts, and encourage them to spend more during their stay. These high-quality experiences boost revenue, and elevate your hotel’s reputation as a destination for food and drink.

Implementing Revenue Per Available Guest

To maximize RevPAG, your hotel needs to focus on creating personalized guest experiences, and integrating technology seamlessly across all touchpoints. This involves taking the steps below.

  • Personalized Guest Experiences: Tailoring services and offerings to your targeted, individual guest preferences to not only enhance their stay but also encourage additional spending. This can include personalized room amenities, bespoke on-premise experiences, and exclusive access to hotel facilities.
  • Seamless Technology Integration (Tech-Stack): Integrating Revenue Management Systems (RMS) with other hotel technologies, such as PMS and POS systems, allows your hotel to track guest behavior, spending patterns, and preferences in real-time. This data is invaluable for identifying up-selling opportunities, and creating targeted marketing strategies.
  • Total Revenue Management Mindset: Adopting a TRM mindset involves viewing each guest as an opportunity to generate multiple streams of revenue. Your hotel operations team should train staff to recognize and act on up-sell opportunities, while maintaining a high standard of service.

Benefits of Using Both RevPAG and Total Revenue Management

When used together, RevPAG and TRM provide a powerful framework for maximizing your hotel’s revenue and profitability.

  • Revenue Optimization: TRM ensures that every revenue stream is optimized, while RevPAG provides insight into the guest’s overall value. Together, they allow your hotel to create targeted strategies that maximize revenue from both rooms and ancillary services.
  • Enhanced Guest Experiences: By focusing on RevPAG, your hotel can deliver personalized experiences that encourage guests to spend more on-property, leading to higher satisfaction, and repeat business.
  • Informed Decision Making: With a TRM approach, your hotel can gain access to comprehensive data across all departments. This data-driven approach enables more informed decisions about pricing, packaging, and service offerings.
  • Competitive Edge: Hotels that adopt TRM and RevPAG are better positioned to differentiate themselves from competitors, offering a more value-driven guest experience while maximizing profitability.
  • Sustainable Growth: Implementing TRM and RevPAG strategies leads to sustainable growth by optimizing revenue streams, and reducing reliance on room occupancy alone.

This diversified revenue approach enhances your hotel’s resilience in fluctuating market conditions.

My Final Thoughts

There’s no question, the hotel industry is evolving, and so must its approach to revenue management.

Total Revenue Management and Revenue Per Available Guest offer more comprehensive metrics that go beyond the limitations of traditional measurements like RevPAR and ADR. By adopting a modernized approach that integrates these metrics, your hotel can optimize revenue, enhance guest experiences, and build a more robust, modern operation.

To realize the benefits of TRM and RevPAG fully, your hotel needs to invest in technology, embrace a guest-centric mindset, and foster a culture of data-driven decision-making. In doing so, you’ll unlock new opportunities for your brand that drive profitability, and secure a more competitive edge.

Image: Canva

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Red apple covered with water droplets, against a black background
by David Klemt David Klemt No Comments

‘Tis the Season to get ‘Jacked

‘Tis the Season to get ‘Jacked

by David Klemt

Red apple covered with water droplets, against a black background

Not an AI-generated image!

We celebrate bourbon, “America’s native spirit,” in September. But did you know that there’s another American spirit we celebrate in October?

Known by some as “America’s first moonshine,” applejack is just as important to US history as bourbon. In fact, it’s believed it predates bourbon by a century.

There’s no doubt that alcohol has played a significant cultural role throughout American history. Of course, having a tipple or two still plays a vital role in US culture. Why else would neighborhood, sports, and cocktail bars be so prevalent?

If alcohol weren’t a cultural cornerstone, there wouldn’t have been a cocktail revival from 2000 to 2017. That’s to say nothing of Prohibition and its impact on not just the US but Canada, Mexico, and the Caribbean.

Whiskey reigns supreme when we’re talking about American spirits. In particular, bourbon grabs the headlines.

But long before bourbon snatched the America’s Spirit title, applejack was being produced in what we now call the state of New Jersey. At one point, applejack was even called Jersey Lightning.

Speaking of lightning, that speaks to the origins of applejack. White lightning, white dog, white whiskey… Each of these is evocative of moonshine. And while that term may conjure up illegal alcohol production, the word originally meant homemade booze.

That’s precisely what applejack was when it was first crafted during the American colonial era. Like I said, alcohol is ingrained in American culture.

Moonshine, and Brandy, and Whiskey, Oh, My!

According to Lisa Laird Dunn, the president and global ambassador of Laird & Company, the oldest producer of applejack, the original native spirit was an American staple.

Dunn represents the ninth generation of the Laird family to lead the eponymous distillery. Alexander Laird, her ancestor, left Scotland in the 1690s, arriving in Jersey. Per the current president of Laird & Company, the belief is that Alexander was involved in some way in Scotch production.

Therefore, Alexander turning to distillation in his new home would make sense. And what would make even more sense is to focus production on an abundant American crop. At that time, that meant apples.

So, what’s applejack? First, let’s get some technicalities out of the way. Applejack is a fruit brandy. In particular, it’s an apple brandy.

As reported by Chilled Magazine, Dunn has explained that the terms “applejack” and “apple brandy” are interchangeable. However, there is a technical difference between applejack and blended applejack.

The former, just like apple brandy, can only be labeled as such if it has been created solely from apples. As in, 100 percent made from apples. In contrast, the latter is a blend between applejack and a neutral grain spirit.

One more technicality: applejack is not, as many believe incorrectly, a whiskey. It’s possible that misconceptions surrounding moonshine and the term “lightning” may lead some people to think “Jersey Lightning, white lightning, moonshine… Applejack is moonshine. Moonshine is whiskey. Applejack is whiskey.”

Jack It

Have you been wondering where the “-jack” in “applejack” comes into play?

Well, wonder no more; it’s a nod to the production method of this centuries-old spirit.

Simply put, jacking is freeze fermentation. In short, fermented cider (a.k.a. hard cider) is frozen, ice is removed, and the alcohol content increases.

An alternate method is to fill a cask with fermented cider, begin the freezing process, tap the cask, and pour off the liquid. Jacking results in low-ABV juice reaching an ABV of 40 percent or more. In that way, applejack is normally much more powerful than hard apple cider. So, plan accordingly if you’re going to enjoy one.

Essentially, “applejack” is a portmanteau of “apple brandy” and “jacking.”

How to Enjoy Applejack

As we head into fall, it makes sense to celebrate Applejack, and get this spirit onto guests’ radar.

A pure applejack like Laird & Company’s is fantastic neat or on the rocks. Just bear in mind that ABV; ensure you and your team are serving it responsibly. Again, this isn’t hard apple cider—it’s much stronger.

If you and your bar team want to make Toddies and cocktails, a blended applejack will do, although I prefer Laird’s for a cocktail.

Likely the most-famous applejack cocktail is the Jack Rose. To make this drink combine one-and-a-half ounces of applejack, three-quarters of an ounce of fresh-squeezed lemon or lime juice, and a half-ounce of grenadine in a shaker with ice. Shake well, then strain into a coupe or Martini glass, and garnish with a lemon twist.

Applejack can also replace other base spirits. Take, for instance, the Applejack Old Fashioned. Start with two ounces of applejack, and either a half-ounce of maple syrup or a quarter-ounce of simple syrup. Add these to a mixing glass, along with two dashes of Angostura bitters, two dashes of orange bitters, and ice. Stir, strain into a rocks glass over fresh ice (a large cube or sphere is a nice touch), then express an orange peel, and use it as garnish.

You and your team have an entire month to celebrate applejack with guests. Get creative with an LTO menu, and create a signature seasonal sip all your own.

Image: Juan C. Palacios on Pexels

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