Hospitality | KRG Hospitality

February 24, 2021by krghospitality krghospitality No Comments

Bacardi Predicts How We’ll Drink in 2021

Bacardi Predicts How We’ll Drink in 2021

by David Klemt

What will alcohol consumption look like this year? Bacardi has answers.

In association with the Future Laboratory, Bacardi’s second-annual cocktail trends report—a well-sourced 25-page document—is available.

As is the case when we begin a new year, we’re being deluged with trend predictions and reports. I’d say the Bacardi 2021 Cocktail Trends Report goes deeper than most.

The report is organized into five macro trends identified by Bacardi Limited. Let’s get to it!

Reinventing the Bar

I’m not presenting Bacardi’s macro trends in order. Instead, I’m starting with the trend arguably most relevant to operators: bar reinvention.

Industry experts have been pointing to the ease of access to knowledge along with consumer interest in learning more about spirits and cocktails as an important trends for years now. It’s no longer a trend—it’s standard that guests are better informed.

Like other sources, Bacardi predicts guests will seek out more personalized experiences. They also predict guests will want to connect more with bartenders. However, the brand goes deeper in their report.

Bacardi thinks to-go cocktails, cocktail and meal kits, and e-commerce will become standard. Going a step further, the report posits that some venues will create cocktail menus that will change according to weekly inventory; sommeliers will add spirits knowledge to their skillset; and that guests will be eager to try drinks they’ve never had before.

Perhaps most importantly, Bacardi predicts bar culture will become more positive and inclusive, resulting in gender stereotypes—including those inherent to bottle design—will fall to the wayside.

Purpose and Transparency

According to a study conducted by IBM and the National Retail Federation and cited in Bacardi’s report, a massive 70 percent of American and Canadian consumers think it’s important that brands are eco-friend or sustainable.

Bacardi predicts sustainability, transparency, and the authentic embrace of social causes will be crucial this year and beyond.

In response to climate change, sustainability, eco-friendliness, and the zero-waste movement, Bacardi plans to wipe out 80 million plastic bottles with their new biodegradable bottle design, rolling out in 2023.

Pointing to a statistic from ZypMedia—that 36 percent of consumers plan to keep buying from local businesses post-pandemic—Bacardi predicts hyperlocality will grow stronger in 2021. Operators who source more local items, including beverage alcohol, will likely find more support from consumers.

Mindful Drinking

Per a Bacardi survey, 22 percent of consumers across the globe are drinking alcohol less. More than half (55 percent) of “mindful drinkers” are drinking low-ABV options.

Bacardi predicts low- and no-ABV drinks to perform well this year. Spritzes, for example, is on the rise as a bar culture in its own right.

Per Bacardi, zero-proof spirits are getting the most attention of any other category, worldwide.

Mindful drinking is also affecting how spirits are made. Consumers, more conscious of their health because of the pandemic, are showing a preference for beverages free of artificial ingredients. Furthermore, Bacardi expects consumers to seek out drinks that have health-boosting benefits.

The report, as an example, cites a Global Wellness Institute finding that in 2019 alone, “U.S. sales of ginger rose by 94%, while turmeric and garlic sales were up by 68% and 62%.” Today’s consumer is seeking out functional cocktail ingredients.

Drinking by the Numbers

Bacardi’s report puts all the brand’s cards on the table. Operators looking to program or reprogram their menus will find this information helpful.

Consider the info below for delivery and to-go drinks since Nielsen finds that 40 percent of US consumers are interested in make-at-home cocktail kits, 37 percent are interested in pre-made bottled cocktails, and 37 percent are interested in grab-and-go cocktails.

Flavor and Experience: Extreme heat (chilies), Super-sweet, Sour, Bitter, Smoked

Experiences: Pleasure, Nostalgia, Escapism, Quality over quantity, Light-hearted drinks, Flavor-filled indulgences

Most Popular Cocktails, Globally (Descending Order): Low-ABV, Other spritzes, Negroni, Classic cocktails with a twist, G&T (including riffs), Non-alcohol, Whiskey Highball, Espresso Martini, Old Fashioned, Vermouth cocktails

Premiumization Opportunities: Gin, Rum, Tequila

Top 5 Spirits (by Interest): Gin, Mezcal, Tequila, Vermouth, Bitter/Amaro Liqueurs

Top 5 RTDs in North America: Vodka Soda and flavors, Margarita, Moscow Mule, Low-ABV, G&T

Click here to read the report in its entirety.

Image: Helena Lopes on Unsplash

February 23, 2021by David Klemt David Klemt No Comments

Datassential Finds Operators Optimistic

Datassential Finds Operators Optimistic

by David Klemt

The latest report from Datassential finds that the vast majority of operators are optimistic or at least confident their businesses will survive the pandemic.

Per Datassential, operator outlook appears to be more positive than it was in December.

That’s largely due to the distribution of the Covid-19 vaccine.

Datassential Covid-19 Resources & Reports

Datassential has been releasing informative Covid-19 reports throughout the pandemic to provide helpful industry, consumer and operator data.

“Trending Upward” is Datassential’s 46th installment, and the research firm provides their Covid-19 resources at no charge.

For this report, Datassential surveyed 400 “decision makers for restaurants and on-site foodservice locations.”

Operator Outlook

Most of the operators surveyed, 220 or 55 percent, are still concerned about the challenges facing them and the industry. However, they’re “fairly confident” that their businesses will make it through.

That 55 percent represents no change from December of last year, when Datassential last gauged operator outlook.

The next two survey respondent segments tell the tale of optimism.

Of the 400 operators surveyed, 148 or 37 percent are “cautiously optimistic.” In fact, they expect to be even stronger post-pandemic.

Compared to December, that’s a seven-percent increase in operators who feel optimistic. That seven percent shifted from the “very nervous” segment,

Just 32 of survey respondents (eight percent) reported that they don’t think they’ll survive the pandemic. Losing any businesses to the pandemic and its terrible impact on the industry is beyond horrific, and the results of this Datassential report in no way minimize that awful truth. However, the percentage of operators who feel “very nervous” or otherwise pessimistic reducing by nearly half provides at least a semblance of hope for the future of the industry.

Staff Cuts

According to Datassential, more than 80 percent of operators who were forced to cut staff at some point during the pandemic have been able to bring back some of their workers.

Of the 400 respondents surveyed by Datassential, 21 percent of operators reported they hadn’t laid off any of their employees

Another 20 percent had to cut staff but were able to rehire all of them.

Nearly half (48 percent) have only been able to hire some of the staff they laid off back. Twelve percent have been unable to rehire any of the staff they had to let go.

Takeaway

Optimism is great for emotional and mental health. So is targeted relief. Operators and employees will likely feel far more confident and relieved if the industry receives actual targeted relief. This Datassential report’s findings are positive but we need Congress to act.

Click here to tell your representatives to pass the RESTAURANTS Act now.

Image: Artem Beliaikin from Pexels

February 22, 2021by David Klemt David Klemt No Comments

Does the Margarita Still Reign Supreme?

Does the Margarita Still Reign Supreme?

by David Klemt

Whatever’s happening here, I’m in…

The Margarita has maintained the title of Most Popular Cocktail in the United States year after year.

But is the classic cocktail still wearing the crown and clutching the scepter?

Margarita Slipping?

As you can see, the Margarita was only the top search in two states, Connecticut and Maine. Perhaps their access to the Atlantic Ocean coastline motivated residents of those states to enjoy the refreshing classic that invokes summer and escapism.

Regardless, the Margarita didn’t even make it into the top three. Third place went to the Cosmo, Manhattan and Screwdriver in a three-way tie, with each the most popular in three states.

Second place went to Kamikaze, the top cocktail search in Idaho, Iowa, Maryland, North Dakota and West Virginia.

Before I get to the first-place cocktail—according to a snapshot of time by Google—I have to address the clear winner of the Most Unique Search title. Minnesota’s top search was for the Oliveto cocktail, shaken and strained into a rocks glass:

2 oz. Dry gin
1 oz. fresh Lemon juice
1/4 oz. Simple syrup
1/4 oz. Licor 43
1/2 oz. full-bodied Extra virgin olive oil
1 fresh Egg white
Ice cubes

New Number One?

The Old Fashioned, clinching seven states, was the number-one cocktail…for about 30 days in 2020.

Much has also been made about a supposed surge in interest for the Gin & Tonic.

However, scouring the Internet for data and articles, the Margarita is still sitting comfortably on the throne. According to multiple sources, the Margarita is a to-go cocktail mainstay, it’s succeeding in the RTD space (meaning it’s performing well on- and 0ff-premise), and home bartenders are driving up sales of tequila and cordials.

Trends are fun but classics are classics for a reason. So, make sure your Margs, G&Ts, Old Fashioneds, Manhattans and other staples are dialed in this year.

Image: Menú Acapulco on Unsplash

DCBL X-1 Mask, made by hospitality professionals for the hospitality industry

February 19, 2021by krghospitality krghospitality No Comments

I Tried the Mask Made for & by Hospitality

I Tried the Mask Made for & by Hospitality

by David Klemt

Wearing a mask is part of everyday life, particularly for hospitality industry professionals.

DCBL Masks was designed by hospitality professionals for the hospitality industry, born out of their reverence for the workers putting themselves at risk so the communities they serve can retain a semblance of their normal lives.

Their first mask, the X-1, is intended to provide solutions to the problems presented by other face coverings.

Thoughtful Design

One problem with the standard masks and face coverings we’ve grown accustomed to is their tendency to muffle voices. One of the driving design elements behind the DCBL X-1 is the projection of the wearer’s voice.

The X-1 is a three-piece mask and its second layer is what sets it apart from others. The middle layer is sound-enhancing, sculpted foam that allows the wearer’s voice to carry. No more going hoarse from yelling, no more (or less, at least) repeating oneself, no more guests leaning in or stepping closer to hear what’s being said (hopefully).

That second layer is also intended to improve breathability. The inside layer’s design provides an air pocket for similar breathing functionality. It’s also made of natural bamboo so it’s soft, moisture-wicking and cooling, and it receives an antimicrobial treatment.

The X-1’s outer layer is polyester and resists dust and moisture while also protecting against UV rays. There are two flexible “suspension” systems, one for the nose and one to seal the bottom of the mask. Straps are Spandex, ear loops are adjustable, and there’s a clasp system so the wearer can choose how to secure the mask to their head.

Designed by Industry Pros

DCBL is the brainchild of industry veterans Michael Tipps and Homan Taghdiri. Tipps and Taghdiri are the co-founders of both DCBL Masks and Invictus Hospitality, a consulting agency headquartered in Los Angeles.

Tipps boasts over two decades’ experience in hospitality. He got his start in South Florida and has worked every front-of-house position. His journey through hospitality helped him gain perspective regarding the challenges inherent to the industry, and he eventually co-founded Invictus.

Taghdiri worked in hospitaity for 13 years before becoming a licensed attorney in California. He has worked every position in the industry. While he no longer studies law, when he did, he specialized in real estate, business and the hospitality industry.

DCBL’s Mission

There are three main goals DCBL seeks to achieve: Protection, projection, and connection. I’ve explained how they achieve the first two goals.

If the first goal isn’t realized, goals two and three don’t matter. If DCBL whiffs on the second goal, the third is unachievable. The X-1 seeks to make conversation easier when wearing masks so people can feel more connected. Being separated by masks, distance, barriers, and staying at home is detrimental to us all. The DCBL X-1 addresses that issue.

As the DCBL website says, “Staying safe and making a living shouldn’t be as challenging as it has been.” I feel the brand accomplishes their deceptively simple goals.

Impressions

First things first, I didn’t receive my X-1 in exchange for this post or any monetary compensation. I was genuinely curious about the mask and placed an order for two.

My masks arrived in a black bubble mailer, making them seem a little cooler from the start. They were each sealed in their own packet with an insert that explained the three layers, different methods for securing the X-1, machine washing instructions, and more.

In my experience, the mask felt soft and comfortable before even putting it on. The X-1 feels like a well-constructed, high-quality mask.

I have to say, I dig the interior layer. Not only is it soft and comfortable, the design detail is a nice departure from the white, black or pale blue to which we’ve all become accustomed:

It’s comfortable on my face and it allows me to speak comfortably, clearly and loudly no extra effort. I wore mine around my place and while writing this article. The ear loops are comfortable for me but the X-1 can be worn easily with an ear loop extension or toward the top of the head with the clasp system.

My glasses did fog slightly at first, but that became a non-issue after I adjusted the nose bridge suspension area.

Other people’s mileage may very, of course, but I feel that the mask delivers on DCBL’s mission statement: Be Heard.

To learn more and order the X-1, click here. connect with DCBL on Instagram and Facebook. Contact hello@dcblmasks.com for wholesale orders.

Disclaimer: The DCBL X-1 is not a medical-grade mask and is not intended as a replacement for medical-grade equipment or other recommended measures to stop the community spread of any viruses.

Images taken by author.

February 18, 2021by David Klemt David Klemt No Comments

Uncorked: 2021 Wine Trends to Watch

Uncorked: 2021 Wine Trends to Watch

by David Klemt

What’s up with wine in 2021? We reviewed multiple sources to find out.

One great thing about hunting for wine trends is that it’s easy—there’s no shortage of sources willing to make predictions.

Common Wine Trends

The IWSR, without a doubt a reputable source for information about all things beverage, expects wine consumption to “bounce back” this year.

Along with Forbes, Wine Intelligence, just-drinks, and bar inventory platform Backbar, the IWSR expects e-commerce to be crucial for wine sales. Continuing with tech influence, the IWSR and Wine Intelligence expect wine producers and sellers to engage more with consumers online. Forbes pointed to orange wine benefiting from Instagram posts as a specific example of digital engagement.

Forbes, the IWSR, and Wine Intelligence predict alternative packaging to really take off in 2021. Canned wines are well positioned but other options—wine-in-box and “letterbox” bottles, for example—will perform well this year.

Forbes, the IWSR, and WineMemoir expect sustainability to be even more important in 2021. The IWSR mentioned organic and low-intervention wine, and they pointed to biodynamic wine, as did WineMemoir. Zero-waste winemaking was mentioned by Forbes.

The IWSR and Forbes expect sparkling wine—Prosecco specifically—to have a moment this year. Drinking occasions, per the IWSR, have come to include Prosecco more often; sparkling is no longer just for celebrating.

Breakout Wine Trends

Speaking of moments, rosé Champagne will have on in 2021, according to Forbes. The publication also expects the wealthy to continue “drinking richly,” so operators with rare, exclusive and high-dollar bottles should consider promoting them.

With the explosive growth of hard seltzer that has taken place over the past few years, Wine Intelligence predicts 2021 to be the year the wine seltzer market is established.

People will choose “safe” wine options, meaning they’ll be less likely to experiment and move out of their comfort zones, according to just-drinks. The magazine is also more cautious about the category’s growth this year, pointing to slowed economies and rises in alcohol duty rates.

Backbar, explaining that wine dollar value slipped but sales volume rose in 2020, predicts restaurants will offer more affordable wines. Along with that trend, they predict restaurants will hold less inventory to reduce costs, meaning wine lists will shrink.

Specific varietals Backbar predicts will perform well due to a turn toward affordable wines: South American Cabernet Sauvignon, Chardonnay and Malbec; South African Chenin Blanc; Portuguese reds; red blends; and American wines in general.

2021 will be the Year of Cabernet Franc, according to WineMemoir. Bordeaux will see a resurgence in popularity, and wines from Abruzzo and Jura will see a lift.

Image: Carson Masterson on Unsplash

February 17, 2021by David Klemt David Klemt No Comments

Infographic: NRA Raise the Wage Survey

Infographic: NRA Raise the Wage Survey

by David Klemt

The results of a survey conducted by the National Restaurant Association to gauge operator reaction to the Raise the Wage Act are in.

Per the NRA’s infographic detailing the participant responses, there’s not much support for increasing the federal minimum wage and eliminating the tip credit.

What’s in the Raise the Wage Act?

If signed into law, the Raise the Wage Act will represent significant change for employers and employees.

The federal minimum wage will be raised incrementally to $15 by 2025. Two years later, in 2027, the tipped wage will be eliminated.

Survey Results

The NRA surveyed 2,000 restaurant operators between February 2 and 9. Respondents are clearly opposed to the Raise the Wage Act.

What Does This Mean?

A vast majority of survey respondents—along with the NRA—definitely view the bill as a threat to the industry. An email sent by the NRA’s executive vice president of public affairs, Sean Kennedy, includes this succinct statement:

“These results make one point crystal clear—after seeing over 110,000 restaurants close and over 2.5 million jobs lost, increasing labor costs is going to make it more likely that more operators close their doors and lay off their staff. Tipped servers will lose with the end of a system that allows them to make $19-$25 an hour in tips under the current tip credit system.”

To the best of my knowledge, the NRA has not yet conducted a targeted survey of restaurant workers for their opinions of a $15 federal minimum wage and the elimination of the tax credit.

However, fast-food workers from McDonald’s and other chains have gone on strike in at least 15 cities in the United States to demand a raise to $15 per hour. That speaks volumes for how foodservice workers who aren’t typically tipped feel about the Raise the Wage Act.

What’s Next?

According to the NRA, the bill is slated to be fast-tracked and voted on in just a few weeks.

Agree that the Raise the Wage Act is going to hurt operators, workers and the industry? Click here to let Congress know.

Want Congress to pass the bill? Click here to find your representatives and let them know.

Infographic: National Restaurant Association

Image: lucas Favre on Unsplash

Chef preparing burgers inside restaurant

February 15, 2021by David Klemt David Klemt No Comments

This Generation is Most Likely to Dine In

This Generation is Most Likely to Dine In

by David Klemt

The National Restaurant Association’s 2021 State of the Restaurant Industry report revealed the generation most likely to dine in-person at a restaurant.

That is, of course, if such restaurant service—from quick-service to fine dining—is permitted where they’re located.

So, do you have a guess? Because we have the answer.

Most Likely to Dine In

Per an NRA survey, Gen Z is most eager to return to in-person restaurant dining.

However, it’s more of a simple majority that’s after a restaurant experience beyond delivery, takeout and curbside pickup than an overwhelming one.

Just 53 percent of adult members of Gen Z surveyed by the NRA are willing to dine inside restaurants over the course of the next few months.

Overall, 67 percent of Gen Z, Millennial, Gen X and Baby Boomer adults would like to engage with restaurants like they did before the pandemic. That’s not a huge stretch, of course; we all want to return to normal and put Covid-19 behind us.

Still, the survey results make it clear there’s demand for in-person dining. The convenience of interacting with and ordering from restaurants is here to stay. However, that convenience hasn’t replaced the desire to dine (and socialize) out.

So, Who’s Most Likely to Order In?

You’d be forgiven for assuming the answer to this question is also Gen Z. After all, just about every development regarding technology and how people engage with the world has been laid at their feet.

When Gen Z isn’t being accused of “killing” a tradition, sense of normalcy or an entire industry, the finger is pointed at Millennials.

Well, it turns out the usual finger-pointing suspects are the consumers most likely to order from restaurants.

According to the NRA’s report, 81 percent of Boomers and 80 percent of Gen X will continue to order from restaurants, at least for the next few months.

Put it All Together

At least for the next several months, the industry’s recovery will hinge on the full-strength return of in-person service and the convenience of delivery and takeout.

In other words, some consumers are champing at the bit to once again make restaurant visits a regular part of their lives while others plan to proceed with caution. Successful restaurant operations will maintain a mixture of traditional and digitally-driven services.

Nearly 90 percent of adults surveyed by the NRA say they enjoy going out to restaurants and that doing so with family and friends is a better way to spend leisure time than cooking at home.

“Restaurants are the cornerstone of our communities, and our research shows a clear consumer desire to enjoy restaurants on-premises more than they have been able to during the pandemic. We’ve also found that even as the vaccine becomes more available and more social occasions return to restaurants, consumers will continue to desire expanded off-premises options going forward. Both will continue to be key for industry growth,” said Hudson Riehle, senior vice president, Research and Knowledge Group, NRA, in a press release announcing the Association’s 2021 State of the Restaurant Industry. “With more than half of adults saying that restaurants are an essential part of their lifestyle, we are confident that, with time, the industry is positioned for successful recovery.”

The NRA predicts foodservice sales to reach $731 billion in 2021, an 11 percent increase over 2020. Unfortunately, that estimate is about 15 percent lower than sales generated in 2019.

Still, that’s a reason to be optimistic. Consumers are pent-up and eager to make restaurants a significant part of their lives once again.

Nobody is more eager, evidently, than Gen Z.

Image: Jesson Mata on Unsplash

February 12, 2021by krghospitality krghospitality No Comments

On the Menu for 2021: The RESTAURANTS Act

On the Menu for 2021: The RESTAURANTS Act

by David Klemt

Much like restaurants themselves, the RESTAURANTS Act has faced multiple starts and stops.

The bill received huge bipartisan support in 2020, landing dozens upon dozens of co-sponsors.

However, that widespread support didn’t materialize into any actual progress—the bill was never signed into law. That must change now.

A Long Road

It’s February 2021. The House and Senate must work together to provide the targeted relief of the Real Economic Support That Acknowledges Unique Restaurant Assistance Needed to Survive (RESTAURANTS) Act.

The RESTAURANTS Act was first introduced to the House of Representatives on June 15, 2020. The bill was eventually included in the revised Heroes Act, which was passed by the House on October 1, 2020 on a vote of 214 to 207.

Unfortunately, that bill was “dead on arrival” and didn’t receive a vote on the Senate floor. A $900 billion stimulus package was negotiated in December of 2020 but the RESTAURANTS Act wasn’t included in it.

It has been more than long enough—it’s beyond time for action.

Where are We Now?

Throughout all of this, from inception to current status, the Independent Restaurant Coalition (IRC) has never faltered in their campaign to ensure this industry receives the targeted relief it so desperately needs.

It’s wise given how the number of times we’ve been let down by our elected officials to be guarded and cautiously optimistic about the RESTAURANTS Act finally being signed into law this month.

On February 5, Senators Roger Wicker (R-MS) and Kyrsten Sinema (D-AZ), and Representatives Earl Blumenauer (D-OR) and Brian Fitzpatrick (R-PA) formally (re)introduced the RESTAURANTS Act to the 117th Congress.

What’s in the Bill?

In its current form, the RESTAURANTS Act:

establishes a $120 billion relief fund for foodservice and drinking establishments;
makes groups that operate up to 20 units eligible for relief from that fund;
provides operators access to grants of up to $10 million for eligible expenses; and
makes the grants retroactive to February 15, 2020 and ends them eight months after the legislation is signed into law.

New provisions in the February 2021 RESTAURANTS Act include:

updates to the award calculation based on annual loss from calendar year 2020 instead of quarterly;
grant eligibility for new restaurants that opened after January 1, 2020;
paid sick leave as an eligible expense for employees, with a bonus amount to cover the cost of voluntarily providing ten days of sick leave to employees;
providing the Department of the Treasury the discretion to help reduce waste, fraud, and abuse;
imposing reporting obligations on the Department of the Treasury to share who gets loans and demographic information about recipients; and
ensuring that restaurants can use both the Employee Retention Tax Credit and the RESTAURANTS Act grant program, provided they are not used for the same expenses.

What’s Next?

We must all act to give the RESTAURANTS Act the best chance of becoming law. We have been patient for long enough.

We must let our representatives know we expect them to pledge their support for this bill formally.

The IRC provides several methods for ensuring our representatives understand they need to co-sponsor and pass the RESTAURANTS Act:

Email your representatives and ask them for their co-sponsorship.
Call your representatives directly and tell them why restaurants and bars need the RESTAURANTS Act to be voted on, passed, and signed into law. This is the number to dial: (202) 224-3121. The IRC has provided talking points here.
Share the graphic below on your social channels and encourage your followers to also contact their representatives and ask them to co-sponsor the RESTAURANTS Act. Use the following caption when posting: It’s official: the RESTAURANTS Act of 2021 is on the menu in both chambers of Congress. Call your representatives today and tell them that independent restaurants, bars, and workers can’t wait any longer for direct relief: 202-224-3121 #SaveRestaurants

All of that will take less than 20 minutes. That’s not a lot of time to help finally get this industry the support and relief it needs.

The RESTAURANTS Act is needed to prevent more permanent restaurant and bar closures, and to revitalize the industry. The road to recovery is a long one and getting this bill signed into law is a major step forward.

Please email and call your representatives. Please share the post and caption above on your social media. Please help save the restaurants, bars, and millions of people they employ.

Image:

February 11, 2021by David Klemt David Klemt No Comments

2021 Technomic Outlook: United States

2021 Technomic Outlook: United States

by David Klemt

Technomic has been providing the foodservice industry with valuable insights on a global level for 50 years.

The research and consulting firm has been one of my go-to information sources for at least a decade.

A few weeks ago, I reviewed American food delivery trends from multiple sources. This week, I’m taking a look at Technomic’s foodservice predictions for the US.

Unprecedented and Unpredictable

Before we proceed, keep this in mind: predictions are best guesses. Technomic’s approach is scientific and data-driven but it’s important to approach any prediction with caution.

As the firm itself points out in their 2021 foodservice report, the global pandemic has plunged the industry deep into unprecedented territory.

It seems the only thing predictable about Covid-19 in relation to restaurants, bars and other hospitality businesses is that this industry will continue to bear the brunt of closures and restrictions.

That said, I trust Technomic to lead the industry through unprecedented and unpredictable moments in time.

7 Key Trends

Technomic has made seven predictions for foodservice in the US.

Streamlined menus. Technomic expects the trend toward reducing SKUs to continue. However, that may lead to innovative and healthy items replaced removed items. Leafy greens, environmentally-friendly, and health-conscience items such as immune boosters are expected to be menued.
Tech is the future. This prediction can be summed up quickly: If it’s a tech-based, can improve operations and help a brand differentiate itself from others, the industry is going to implement it.
Top three cuisines. Chinese, Italian and Mexican food and drink are expected by Technomic to perform the best in 2021, particularly if operators move beyond the classics and incorporate lesser-known ingredients. However, Technomic expects more interest in West African and Caribbean cuisine.
Social justice. Operators will have to be transparent about their stances on social justice issues and make meaningful statements—hashtags won’t cut it with younger consumers.
Umami will reign supreme. Technomic uses the phrase “new-mami” to describe “intense, mouthwatering fare.” Think fruit vinegars beyond apple, candy cap mushrooms, seafood meatballs, and so much more.
Communal concepts must adapt. Food halls, eatertainment concepts, and venues with communal seating will have to reimagine their spaces and how guests use them during an era characterized by social distancing, constant sanitizing, and off-premise business models. Traditional guest experiences may return but there’s no telling when that will happen.
Revenue recovery. Technomic expects the industry to start recovering in 2021. However, sales levels are unlikely to reach those of 2019.

Bring it all Together

Chasing trends can be a fool’s errand. Not every prediction made by Technomic will work for every restaurant or bar in Canada.

Just like Technomic collects and analyzes industry data, operators must review their guest, sales and operations data to make informed decisions. This is another reason it’s crucial to own the guest journey in its entirety.

Click here to view Technomic’s “2021 U.S. Trend Outlook” webinar.

Image: Justin Cron on Unsplash

February 10, 2021by David Klemt David Klemt No Comments

2021 Technomic Outlook: Canada

2021 Technomic Outlook: Canada

by David Klemt

Technomic has been providing the foodservice industry with valuable insights on a global level for five decades.

The research and consulting firm has been one of my go-to information sources for at least ten years.

A few weeks ago, I reviewed Canadian food delivery trends from multiple sources. This week, I’m taking a look at Technomic’s foodservice predictions for Canada.

Unprecedented and Unpredictable

First things first: predictions are best guesses. Technomic’s approach is scientific and data-driven but it’s important to approach any prediction with caution.

As the firm itself points out in their 2021 foodservice report, the global pandemic has thrown the industry into unprecedented territory.

It seems the only predictable element related to Covid-19 is that restaurants, bars and other hospitality businesses will bear the brunt of closures and restrictions.

That said, I trust Technomic to lead the industry through unpredictable, unprecedented moments in time.

5 Key Trends

Technomic has made five predictions for foodservice in Canada.

2021 will represent the start of financial recovery for foodservice. Technomic predicts moderate sales growth this year, below levels of 2019. However, limited-service restaurants are expected to perform better than their counterparts and return to 2019 revenue levels. Not surprisingly, Technomic expects full-service restaurants to be the most challenged.
Operators will make their stances on social issues known. Multiple sources say today’s consumers want transparency from the brands they support. They want to know what company’s believe about climate change, food insecurity, social inequalities, diversity and hiring practices, fair pay for employees, and other issues. Technomic expects more operators to “double down” on transparency.
On-premise operations will invest in off-premise business models. Again, multiple sources have reported that significant percentages of consumers are uncertain or uncomfortable about returning to restaurants and bars for in-person dining and drinking. Technomic expects operators to invest in smaller dining rooms so they can offer more limited-contact and contactless options to guests: walk-up ordering windows, multiple drive-thru lanes, designated curbside pickup locations, and in-store pickup and grab-and-go stations. The firm also expects more operators to embrace first-party/direct delivery, along with technologies like mobile ordering and geofencing.
Comfort, quirkiness and indulgence. Technomic expects comfort foods to continue to perform well and encourages operators to get creative—even quirky—with this category. They caution that health will still be a focus of many guests and suggest that some operators will “disguise better-for-you meals as indulgent.”
Our home and native land. Hyperlocality will play a crucial role in driving traffic given the travel restrictions imposed throughout Canada. Operators will likely forge relationships with local farms to attract local visitors to their venues. Technomic expects to see grassroots movements promoting support for small regional chains and local independent operations to gain traction.

Bring it all Together

Chasing trends can be a fool’s errand. Not every prediction made by Technomic will work for every restaurant or bar in Canada.

Click here to view Technomic’s “2021 Canadian Trends Outlook” webinar.

Image: Hermes Rivera on Unsplash

February 8, 2021by David Klemt David Klemt No Comments

Introducing KRG Mindset Coaching

Introducing KRG Mindset Coaching

by David Klemt

Seeking an alternative to complete start-up planning and project management? The solution you’re looking for is KRG Mindset Coaching.

Just like every operator is unique, each project brings with it distinct challenges that require individual approaches and plans.

Some projects are already under way but need help moving forward. KRG Mindset gives these projects the help needed to cross the finish line and achieve long-term success.

What is Mindset Coaching?

Owning a hospitality business may look great on paper, but starting a hospitality business can be really quite stressful:

There are what seem to be endless hours of planning.
There are numerous third-parties involved.
There are often hundreds of thousands of dollars at stake.
There are over 500 unique tasks to complete.

It doesn’t matter if this is your first, fifth, or twentieth project—it’s crucial that you be both prepared and organized when opening a new concept or expanding operations.

However, not every project requires our full suite of targeted solutions, which includes feasibility studies, conceptual planning, business planning, brand development, guest experience strategies, food & beverage programs, and operational assessments.

If you’re beyond the idea stage but find your project is struggling to reach the finish line, we’re here to help. And just like a project in its earliest days, you’ll receive the unique, fully customized KRG treatment.

Is Mindset the Solution for You?

KRG Mindset provides a unique, coaching-style program that helps your start-up make continual forward progress:

Receive a dedicated consultant who will be an approachable advisor for you and your project. They’ll review and navigate your start-up questions and challenges, and be your compass to provide you with a clear path towards a successful opening.

Weekly 1-on-1 video/phone sessions with access to a private calendar: a weekly session in which we evaluate the past week and define required actions for the next week with a focus on budgets, timelines, and industry-specific consulting.

Your dedicated consultant is also available for second opinions and the review of: key documents, location, concept, branding, layouts, equipment, menu, service, technology, labor and financial optimization, system development, operations, marketing, and overall strategic clarity.

Your consultant will help you see the blind spots throughout your project, positioning you to maintain your budget and desired opening date.

Your consultant will help you make strong, educated decisions throughout your start-up project that will have a positive impact on the successful start of your restaurant, bar or hospitality brand.

And finally, your advisor will coach you so you become more confident, energized, and motivated about your opening while holding you accountable and helping you become a better leader through the creation of new habits, communication methods, and decision-making processes.

Click here to schedule a call.

Or, if you’re looking for a more hands-on approach where we develop the winning plans and property for and with you, we invite you to learn more by choosing your preferred option: Restaurants & Cafes, Bars & Lounges, Boutique Hotel & Resorts, or Golf, Gaming & Entertainment.

Images: KRG Hospitality

February 5, 2021by David Klemt David Klemt No Comments

What You Need to Know About SBA Form 3508S

What You Need to Know About SBA Form 3508S

by David Klemt

Midway through last month, the Small Business Administration maneuvered to make the PPP loan forgiveness process simpler for loans up to $150,000.

In December of 2020, Congress passed a Covid-19 relief bill that pumped $284 billion into the Paycheck Protection Program.

Twelve billion dollars were made available to minority-owned and “very small” businesses, and $15 billion were made available to independent movie theaters, live music venues, and cultural institutions.

What is SBA Form 3508S?

Simply put, 3508S is a simplified, one-page PPP loan forgiveness form.

When Congress passed December’s relief bill, they included a requirement for the SBA to offer streamlined loan forgiveness forms.

To that end, 3508S is for businesses that received loans of $150K or less. Again, it’s a single page. As you’ll see when you check out SBA Form 3508S, the form comes with instructions.

What information do you need to provide?

With Form 3508S, you’re not even filling out an entire page. And the first roughly third is simple. Assuming you’re the person filling out, certifying and signing the form:

Business legal name (“Borrower”)
If applicable, the DBA or Tradename
Business address
North American Industry Classification System (NAICS) code (Accommodation and Food Services is 72; Arts, Entertainment and Recreation is 71, for reference)
Business Taxpayer Identification Number (TIN), Employer Identification Number (EIN), or Social Security Number (SSN)
Primary contact
Email address

After filling out that section and ticking the box for first-draw PPP loans or second draw, you’ll need the following info:

SBA PPP loan number
Lender PPP loan number
PPP loan amount
PPP loan disbursement date
The number of employees at the time of the loan application
Number of employees at time of loan forgiveness application
Covered period of PPP loan. Per the form instructions, “The Covered Period begins on the date the loan was originally disbursed. It ends on a date selected by the
Borrower that is at least 8 weeks following the date of loan disbursement and not more than 24 weeks after the date of loan disbursement.”
Total amount of loan spent on payroll costs
Requested amount of loan forgiveness

From there, you initial two boxes–if you can do so accurately and honestly–next to certification statements. Then you sign, print and the date form and include your title.

There’s an optional demographic information section at the top of page two of Form 3508S.

SBA Form 3508A. Sample only.

What additional documentation must you provide?

None, which is what makes this form so simple. In fact, you’re not even required to show any of your calculations corresponding form sections. However, we strongly suggest you run those calculations as you’ll need to certify that you did so and you’ll need them if the SBA audits the loan.

And while you don’t have to submit additional documents, it’s likewise required and smart that you retain required documentation for a number of years. The SBA may ask for certain documents when your application comes up for review, so you’ll want to know where they are to make the process as smooth as possible.

What’s the loan forgiveness deadline?

There’s no specific date in terms of an SBA PPP loan deadline. However, the SBA’s PPP loan forgiveness FAQ states the following:

“Borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from loan origination.”
“[I]f a borrower does not apply for loan forgiveness within 10 months after the last day of the borrower’s loan forgiveness covered period, loan payments are no longer deferred and the borrower must begin making payments on the loan.

You may notice that Form 3508S has an expiration date of July 31, 2021 in the upper right-hand corner. This simply indicates the SBA’s compliance with the Paperwork
Reduction Act.

There are other SBA PPP loan forgiveness applications as well. SBA Form 3508-EZ is for borrowers who meet specific conditions, and Form 3508D is for borrowers to disclose controlling interests in the business by other companies, along with government officials involved in the business.

If none of those forms are right for you, you’ll have to fill out the standard, five-page Form 3508.

Image: Cytonn Photography from Pexels

January 29, 2021by David Klemt David Klemt No Comments

Current Restaurant and Bar Restrictions: Las Vegas, Nashville, Philadelphia, Orlando

Current Restaurant and Bar Restrictions: Las Vegas, Nashville, Philadelphia, Orlando

by David Klemt

KRG Hospitality has turned hospitality industry visions into reality throughout the United States for several years.

Currently, we operate in Las Vegas, Nashville, Philadelphia and Orlando, along with the surrounding areas. Of course, we’re available to take projects from the idea phase to opening doors and beyond in other markets.

We’ve reviewed and gathered the current Covid-19-based restrictions for each of the four main US markets in which KRG operates to help current operators and those considering taking the next steps in their journey toward opening their own businesses.

To book a 15-minute introductory call to discuss your project and how we can help you realize your vision, click here.

Las Vegas

Set to expire on January 15, Nevada’s statewide “pause,” first implemented on November 24, was extended January 11 for a further 30 days. Guidance can be found here.

Requirements

Restaurants and bars must reduce capacity from 50 percent to 25 percent for both indoor and outdoor dining.
Bar seating must be social distanced.
Walk-ins are prohibited. Guests must make reservations.
Masks must be worn when a guest isn’t eating or drinking.
No more than four people may share the same table.
Nightclubs and dayclubs aren’t permitted to open.

Recommendations

Curbside, delivery, and/or takeout are encouraged.
Restaurants and bars should continue to make hand sanitizer available and conduct health screenings and/or temperature checks.
Limit personal gatherings to ten people from a maximum of two families.
Wear masks at indoor and outdoor gatherings.

Nashville

Among Nashville’s restaurant and bar guidance is the “No Seat, No Service” mantra. Additional requirements and recommendations are below, and detailed information can be found here.

Requirements

All residents and all visitors must wear face coverings when in public.
Restaurants and bars limited to 5o-percent capacity, with social distancing.
Tables must be socially distanced. Limited to eight people per table.
Surfaces must be cleaned after they’ve been used by patrons.
Standing at the bar is prohibited–bars are seated-service only.
Remember “No Shirt, No Service”? The new rule is “No Seat, No Service.”
Customers must wear a mask when standing up and walking through the restaurant or bar.
Entertainment is permitted but barriers must be in place between performers and customers. However, dance floors are prohibited.
Bar games and activities like darts, arcade games, etc., must be sanitized in between uses.
Last call for service is 10:00 PM, which is also the cutoff for entry.
No self-service food or condiments are permitted.

Recommendations

Governor Bill Lee urges Tennesseans to wear a mask, gather only with immediate household members.
Display this sign to show commitment to mandated and recommended health and safety rules and practices.
Use contactless, virtual or disposable menus.

Philadelphia

The current restrictions went into effect November 20. Click here for the full list of requirements and recommendations. You’ll find the city’s complete hotel guidance here.

Requirements

Required protections: Masks, Barriers, Staff education, Employee symptom screening and isolation of infected employees, Ensure employees can remain six feet away from one another; Handwashing on employee arrival and in accordance to established food safety precautions, Follow Department of Public Health Food Safety regulations.
25-percent capacity of stated fire code occupancy.
Guests may not stand in the restaurant or sit at the bar.
Alcohol may only be served on-premises if it’s part of the same transaction as a meal.
Table capacity of four people of the same household or less.
Outdoor dining capacity limited to fewer than 50 people.
Operators must plan for inclement weather in regards to outdoor dining.
No entertainment permitted.
Indoor catered events prohibited.
Last call for orders must take place at 11:00. Business must be closed for service by midnight.

Recommendations

Servers should wear face shields and/or goggles along with a mask.
Temperature checks for employees and customers aren’t required but no-touch thermometer should be used by establishments that choose to conduct them. Anyone with a temperature of 100.4 degrees or higher should be turned away.
Consider using physical barriers in between tables.
Use contactless payment methods.
Promote online ordering, delivery, and curbside pickup options.

Hotel Requirements

Required protections: Provide masks to employees, Staff education, Employee symptom screening and isolation of infected employees, Ensure employees can remain six feet away from one another; Provide employees hourly handwashing breaks.
Separate staff from customers at ticket and information desks with plastic barriers.
Utilize contactless room service delivery.
Outdoor events and gatherings are prohibited from exceeding 10 percent of maximum occupancy (maximum of 2,000 persons), even with masks and social distancing. If no maximum occupancy is known, occupancy may not exceed more than 10 persons per 1,000 square feet.
Remove self-serve F&B stations from public areas.
Remove magazines, menus, and other reusable items that can’t be cleaned from guest rooms.
Indoor gatherings and events are prohibited.

Hotel Recommendations

Use contactless payment methods.
Increase building ventilation.

Orlando

Unlike Las Vegas, Nashville and Philadelphia, Orlando, because it’s located in Florida, has lifted restrictions on restaurants. Section 3: Restaurants of Executive Order 20-244 states:

“Pursuant to Chapter 252, including sections 252.36(5)(b ), (g) and (h), Florida Statutes, and in order to safeguard the economic vitality of this state, any restaurant may operate as set forth below.

“A. Restaurants, including any establishment with a food service license, may not be limited by a COVID-19 emergency order by any local government to less than fifty
percent (50%) of their indoor capacity. If a restaurant is limited to less than one hundred percent (100%) of its indoor capacity, such COVID-19 emergency order
must on its face satisfy the following:

“1. quantify the economic impact of each limitation or requirement on those restaurants; and 2. explain why each limitation or requirement is necessary for public health.

“B. Nothing in this order preempts or supersedes a non-COVID-19 municipal or county order.

“Section 4. Suspension of COVID-19-related Individual Fines and Penalties This order, consistent with Executive Order 20-92, suspends the collection of fines and
penalties associated with COVID-19 enforced upon individuals.”

The order that closed bars has also been rescinded: “Bars and other alcoholic beverage vendors may operate for consumption on premise effective Monday, Sept. 14th
under Phase 2… Adhere to social distancing rules, table seating [six feet] between tables. Alcohol allowed for take-out and delivery.”

However, Executive Order 20-192 is still in place and states:

“WHEREAS, on March 17, 2020, I issued Executive Order 20-68, as extended by Executive Order 20-112, which authorized the Department of Business and Professional
Regulation to ensure all restaurants implement employee screening and to prohibit any restaurant employee from entering the restaurant premises if he or she meets certain criteria indicative of concerns related to COVID-19.”

More details can be found here.

Last updated: January 27, 2021. Please note that Covid-19 guidance, restrictions and protocols are subject to swift change. One should monitor their state, county and city for the latest updates.

Image: Katy Anne on Unsplash

January 28, 2021by David Klemt David Klemt No Comments

Current Restaurant and Bar Restrictions: Toronto, Calgary, Vancouver

Current Restaurant and Bar Restrictions: Toronto, Calgary, Vancouver

by David Klemt

For more than a decade, KRG Hospitality has turned hospitality industry visions into reality throughout Canada.

Currently, we operate in Toronto, Calgary and Vancouver and the surrounding areas.

We’ve reviewed and gathered the current Covid-19-based restrictions in Ontario, Alberta and British Columbia to help current operators and those considering taking the next steps in their journey toward opening their own businesses.

To book a 15-minute introductory call to discuss your project and how we can help you realize your vision, click here.

Toronto

On January 25, the province of Ontario officially extended the current state of emergency (which includes a stay-at-home order) by 14 days by Premier Doug Ford. Had Premier Ford not extended the emergency order, it would’ve expired Tuesday of this week. Unless extended again, it will expire February 11.

What this means for restaurants, bars and other types of F&B establishments is that indoor and outdoor dining are banned currently. Delivery, takeout and drive-through service are permitted.

Individuals face $750 fines (up to a maximum of $100,000) and corporations could be hit with $1,000 fines (up to a maximum of $500,000 for a director or officer) for a violation of emergency orders.

When the state of emergency expires or is otherwise rescinded, Ontario is expected to revert to the regulations found within the Reopening Ontario Act (currently suspended). Should Ontario find itself immediately colour-coded Grey, the current restrictions on restaurants and bars will remain identical: only delivery, takeout and drive-through service will be allowed.

Among other restrictions, a Red control level means restaurants are restricted to indoor dining capacity of ten people, outdoor dining is permitted, customers must be seated and two metres apart from one another, liquor may only be sold within a 9:00 AM to 9:00 PM window, face coverings must be worn except when eating or drinking, and nightclubs may only operate as a restaurant or bar.

Orange level restrictions include a 50-person capacity limit, a maximum of four people per table, customers must be screened before entry, liquor may only be sold between the hours of 9:00 AM and 9:00 PM, establishments must close by 10:00 PM, and gentlemen’s clubs must remain closed.

The Yellow control level is marked by the following restrictions: no more than six people may be seated at the same table, liquor may only be sold between 9:00 AM and 11:00 PM, establishments must close by midnight, music levels may not exceed that of a “normal conversation,” and all seated patrons must provide contact information.

Green control doesn’t mean everything is back to pre-pandemic “normalcy.” Tables must still be at least two metres apart, customers must be seated, face coverings must be worn except when eating or drinking, no buffet-style service is permitted, nightclubs may only operate as restaurants or bars, and contact information for at least one person per party must be collected. Restricted dancing, singing, performing and karaoke (no private rooms) are permitted.

Calgary

On December 13, 2020, indoor and outdoor dining was banned throughout Alberta. Current Covid-19-related public health measures and restrictions have been extended until further notice. The province’s restrictions affect restaurants, bars, cafes, pubs, and lounges (and other businesses, of course).

Only delivery, takeout and curbside pickup are permitted in Alberta. However, this is expected to change on February 8, 2021.

Hotels, motels and lodges are open but may not offer access to gyms, pools or spas. Indoor dining is banned but room service permitted. Casinos must remain closed.

Movie theatres, bowling alleys, pool halls and other entertainment businesses may not open for business.

If Alberta returns to the previous relaunch strategy, the province will be subject to a three-stage reopening. However, the document hasn’t been updated since June 2020.

Update: Alberta allowed restaurants and bars to reopen for in-person services yesterday, February 8. Indoor alcohol service must end by 10:00 PM, and indoor dining service must cease by 11:00 PM. Contact information from one person of the dining party must be collected, there’s a limit of six people maximum per table and each individual must be from the same household. Alternatively, the maximum per table for an individual living alone is there two close contacts. Tables must be spaced two metres apart and no entertainment is permitted.

Vancouver

British Columbia is far less restrictive than Ontario and Alberta, at least at the moment. The restrictions in place currently affect restaurants, bars, cafes, cafeterias, coffee shops, lounges, and tasting rooms. Nightclubs, however, must remain closed.

Requirements

Unless a physical barrier is in place, customers not in the same party must be at least two metres away from one another.
No more than six people may be seated at the same table or booth, even if they’re members of the same party.
If seated at a counter, customers must be two metres apart unless they’re in the same party or physical barriers are in place.
No more than six customers of the same party may be seated at a counter less than two metres from one another.
Businesses that offer self-serve food or non-alcohol drink stations must: ensure alcohol-based hand sanitizer or handwashing facilities are “within easy reach”; signage reminding customers to wash or sanitize their hands before touching anything on the stations and to maintain two metres from other customers must be present; utensils and high-touch surfaces at the stations must be cleaned and sanitized “frequently.”
Dance floors must be closed, and karaoke, singing, jam sessions, open mic sessions, and dancing are prohibited.
Background music or sounds may not be amplified or exceed the volume of a “normal” conversation.

Further details can be found here.

Last updated: February 9, 2021. Please note that Covid-19 guidance, restrictions and protocols are subject to swift change. One should monitor the country, provinces and cities for the latest updates.

Image: James Wheeler from Pexels

January 15, 2021by David Klemt David Klemt No Comments

Tobin Ellis and Barmagic’s Relief Dashboard Contains Hundreds of Restaurant and Bar Resources

Tobin Ellis and Barmagic’s Relief Dashboard Contains Hundreds of Restaurant and Bar Resources

by David Klemt

In keeping with this week’s focus on good news, KRG Hospitality would like to shine a light on Barmagic’s Bar & Restaurant Revival Guide.

First, some background.

Tobin Ellis founded Barmagic of Las Vegas in 1997. He’s done so much for the hospitality industry that it feels almost criminal to just attach a few labels to describe him, but here we are.

Ellis is a hospitality industry innovator, advocate, designer, marketer and consultant. Anyone who has ever attended an hospitality trade show and sat in on a presentation, panel or Q&A session featuring him knows he’s passionate, quick-witted, real-world solution-oriented, and doesn’t suffer pretenders lightly.

He’s also more than put in the work to for the recognition he deserves as an industry icon. Ellis has been in the trenches for decades, beginning his hospitality journey washing dishes in upstate New York. He has worked around the world in essentially every type of venue, from sleepy dives to hyperkinetic high-volume cocktail bars, and everything in between.

A few years back, Perlick partnered with Ellis to create the Tobin Ellis Signature Cocktail Station. This innovative hardware was designed with ergonomics in mind, focusing on improving bar team member’s physical comfort and safety.

Since restaurants and bars found themselves fully in the devastating and nearly inescapable grip of the pandemic, Ellis has focused on the health and longevity of the industry as a whole.

To help operators navigate the pandemic and the myriad challenges (again, a criminal label for what operators and workers have been facing for almost 12 months) it continues to present, Ellis added a Hospitality Relief dashboard to the Barmagic website.

Visitors will find hundreds of links for US- and Canada-based resources, including a relief map for those who need aid or who want to donate to relief efforts. There’s also a link to the Barmagic Bar & Restaurant Revival Guide, a 96-page download loaded with information and ideas that Ellis hopes “might just spark a thought or two” in the minds of restaurant and bar owners, operators, leaders and workers.

We’re not going to get through this if we don’t come together, save as many businesses as possible, and help new venues open and flourish. We applaud the Barmagic relief resources—more like this, please.

Image:

December 20, 2020by David Klemt David Klemt No Comments

“More help is on the way.” But not for restaurants and bars.

“More help is on the way.” But not for restaurants and bars.

by David Klemt

Speaking about the economic relief package, Senate Majority Leader Mitch McConnell (R-KY) struck what can be generously described as tainted altruism.

“More help is on the way,” said McConnell on the Senate floor on Sunday. He also took the time to attempt to absolve Republican leadership of any blame for the glacier-paced movement forward on relief, laying the fault at Democrats’ feet.

To be blunt, both parties have failed the American people and small businesses in terms of providing federal assistance during the pandemic.

After months of inaction on relief—with the exception of a Congressional vote in September that failed to pass in the Senate—and weeks of discussions and partisan sniping, negotiators finally managed to zero in on a bill with a strong likelihood of becoming law.

Yet sifting through remarks made by some politicians regarding pandemic relief over the course of the past several months, variants of the word “prompt” were bandied about.

If the package passes—which is expected to happen later today—members of Congress and Senate will no doubt perform self-congratulatory victory laps for finally doing their jobs after months of failing to do much of anything in the way of relief. Meanwhile, millions of Americans will continue to face life-altering challenges, reaching out for lifelines that are simply not there.

Included in the package are a number of details identified as “key” to both political parties:

The ability for businesses that had received Paycheck Protection Program loans which had been forgiven to deduct the costs said loans covered on their federal tax returns.
Speaking of the PPP, it will be reopened with over $284 billion intended for small businesses.
$12 billion in available PPP funds for minority-owned and “very small” businesses.
$15 billion made available in PPP funds specifically for independent movie theaters, live music venues, and cultural institutions like museums.
$600 stimulus checks for qualifying adults (and each child in a household) who earned $75,000 or less in 2019. The amount would be reduced for people who earned more. Those who made $99,000 or more last year are not expected to receive a stimulus check.
A $300 boost to unemployment benefits for 11 months, with a possible implementation date of December 27.
Gig and contract workers enrolled in the PUA or PEUC programs can expect the same $300 boost to their benefits for 11 to 13 weeks.
The deadline to spend billions of dollars made available to cities and states via the CARES Act is expected to be extended from the end of this year to be an entire year.
$25 billion in emergency assistance for renters.
A moratorium on evictions expected to be extended through the end of January.

What’s not in the package expected to be rushed through Congress? Hundreds of billions of dollars in state and local aid Democrats wanted, liability shields for corporations Republicans wanted, the $120 billion RESTAURANTS Act, or the $240 billion Restaurant and Foodservice Industry Recovery Fund.

Despite McConnell’s declaration that federal assistance is on the way, the economic relief plan leaves an industry that employs millions of American workers and contributes hundreds of billions of dollars to the nation’s GDP (four percent before the pandemic) to fend for itself.

Guy Fieri, in all seriousness, has done more for more unemployed restaurant workers than the government, raising more than $21 million in relief funds in under two months.

The hospitality jobs lost due to Covid-19 aren’t expected to return. With more than 110,000 restaurants closed—and counting—the economic impact will be felt nationwide and, in all probability, have global ramifications.

The PPP turned out to be an absolute farce: billions of dollars went to businesses that are anything but small by definition. There’s little reason to believe the process will improve much (if at all) this time around.

And while restaurants and bars have been crucial to nurturing community, connections and culture since inception, they’re clearly not considered culturally relevant institutions by politicians.

With Congress facing an uphill battle in terms of drafting the language for the relief bill and then voting on it, expecting our elected officials to propose, negotiate, draft and vote on a bill for the hospitality industry seems foolish. That means the earliest the industry can expect help—which seems exceedingly unlikely to ever materialize—is in late February of 2021.

Apparently restaurants, bars, and the foodservice professionals they employ aren’t key to politicians on any side of the aisle. Well, not until they need venues to host their campaign fundraisers, that is.

Image: Andrew Seaman on Unsplash

December 3, 2020by David Klemt David Klemt No Comments

Competing Stimulus Plans Fail to Include RESTAURANTS Act

Competing Stimulus Plans Fail to Include RESTAURANTS Act

by David Klemt – 12/3/2020

Talk out of Washington, D.C., about yet more stimulus relief package negotiations is making one thing starkly clear: We’re on our own.

There’s no help coming, not from the federal government.

Unfortunately—but perhaps unsurprisingly—it appears the bipartisan support the RESTAURANTS Act received in Congress was an exercise in optics. The result? Fleeting hope.

Without a signature from the president, it doesn’t matter that Congress voted to pass a revised HEROES Act two months ago. Lest anyone forget, the last time a meaningful Covid-19 relief package was signed by the current president on March 27 of this year.

Another way to put that is that our elected officials haven’t managed to pass a stimulus package signed into law for 251 days. They did, however, find the time for a week-long recess for Thanksgiving.

It was announced just two days ago that a bipartisan group of congresspeople and senators had negotiated a $908 billion stimulus package. The intention was to strike a middle ground between Majority Leader Mitch McConnell’s (R-KY) desire for a $500 billion package and House Speaker Nancy Pelosi’s (D-CA) proposed $2 trillion-plus bill.

Yesterday, multiple sources reported that the $908 billion—which apparently didn’t include the RESTAURANTS Act—was dead on arrival.

Of note, at least to me, is that Senator Mark Warner (D-VA) is reported to have mentioned that this week’s touted bipartisan package had been negotiated “over pizza or pasta at people’s houses.” I have to wonder if the pizza or pasta was prepared, provided and delivered by restaurants that are among the hundreds of thousands facing permanent closure if the government doesn’t actually act in a meaningful way.

Treasury Secretary Steven Mnuchin, on his way to a House committee meeting, reportedly said, “The president will sign the McConnell proposal that he put forward yesterday, and we look forward to making progress on that.”

From what I was able to glean, the RESTAURANTS Act isn’t included in McConnell’s bill either. Neither are stimulus checks nor a federal boost to unemployment insurance payments. Supposedly it does include an extension of the problematic Paycheck Protection Program (PPP); liability protection for schools and businesses; and a $332 million grant for theaters and live venues.

If the tone of this article comes across as angry, I freely admit that’s an accurate assessment. The RESTAURANTS Act was first introduced to Congress on June 15. Elected officials have had 171 days to help the hospitality industry.

The industry that employs more than 16 million people—11 million of which are employed by independent restaurants. The industry that generates well over $760 billion in annual sales. The industry that accounts for 3.5 percent of America’s GDP. The industry that has for years provided venues, food and drinks for elected officials’ countless re-election campaign fundraisers.

The industry that, should tens or hundreds of thousands of restaurants close their doors permanently, will shed millions of jobs that will not return.

And that’s just what’s happening to the industry in the United States. The industry is similarly at extremely high risk for irreversible devastation in Canada and throughout the world.

So, yes—I’m angry. I’m angry that the millions of jobs and hundreds of billions of dollars this industry contributes just to America apparently don’t mean much to government officials.

I suppose I can only blame myself for holding out hope that the RESTAURANTS Act would be signed into law. After all, the president, speaking about restaurants back in March, said, “they’ll all come back in one form or another,” adding, “It may not be the same restaurant, it may not be the same ownership, but they’ll be back.”

They won’t be back. We’ve already suffered permanent closures. There was no prescience—or empathy—in the president’s statement. Let me make this clear: I’m not laying all of this solely at his feet. America’s politicians on all sides have failed the hospitality industry and therefore millions of Americans.

Restaurants, bars, lounges, nightclubs, hotels… This is an industry that consists of incredibly resilient people. There comes a point, however, that even the most resilient need help.

As hospitality professionals fight to return to their feet, bloodied and battered from countless blows, it doesn’t seem that the government is in their corner. Nothing would make me happier than to be proven wrong, but we’ve been at this crossroads for months now.

Image: Caleb Perez on Unsplash

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What Does This Mean?

What’s Next?

Most Likely to Dine In

So, Who’s Most Likely to Order In?

Put it All Together

A Long Road

Where are We Now?

What’s in the Bill?

What’s Next?

Unprecedented and Unpredictable

7 Key Trends

Bring it all Together

Unprecedented and Unpredictable

5 Key Trends

Bring it all Together

What is Mindset Coaching?

Is Mindset the Solution for You?

What is SBA Form 3508S?

What information do you need to provide?

What additional documentation must you provide?

What’s the loan forgiveness deadline?

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