Hospitality

by David Klemt David Klemt No Comments

Leadership: The Other 10-second Rule

Leadership: The Other 10-second Rule

by David Klemt

Watch face showing seconds and minutes

Those who remember last week’s Friday post will recall that there’s more than one 10-second rule.

Interestingly, this “other” rule also relates to communication.

As we all know, communication is paramount to leading teams and building relationships with others.

Last Week’s Rule

Deceptively simple, last week’s 10-second rule focuses on easing tensions.

If a situation is about to boil over or is already out of control, going silent for 10 seconds can cool things off.

First, shutting up for ten seconds stops the argument cold. Second, it provides time for the person leveraging this tactic to respond rationally.

Third, it humanizes the other person. Rather than seeing an opponent, the person going quiet for ten seconds remembers that this is a team member they’re engaging.

Finally, people who use this rule say going silent tends to snap the other party out of their hostility.

Treating others with respect and dignity, along with encouraging open communication and a free flow of ideas, are hallmarks of a healthy workplace culture.

This Week’s Rule

There are, of course, similarities between this week’s rule and last week’s. Obviously, they both call for a ten-second “timeout” to talking.

Also, they both focus on humanizing the other person in the conversation.

I came across the other 10-second rule on the Accounting Today website. Accountant and author Kyle Walters writes that his rule is also simple: If Walters talks for ten consecutive seconds during a client meeting, he stops to ask an open-ended question. Crucial to the process is that Walters then gives the person answering time to talk.

Now, while Walters applies this to client meetings, it’s useful for conversation in general. As he points out, it breaks the bad habits of dominating conversations; giving off the impression that you’re selfish and don’t care about the others in conversations; and not listening to others.

Anyone who leads a team; needs to develop relationships with suppliers, distributors, contractors, investors, banks, inspectors, etc.; and wants to build relationships with guests knows that listening is crucial.

Sure, ten seconds doesn’t seem like a lot of time. However, take the time to actually see how many thoughts you can fire off in ten seconds. You’ll see how much talking for that “small” amount of time can quickly seem domineering if you don’t stop to include others in the conversation.

There’s also the “small” detail that you’re not having a conversation if you’re not listening—you’re just delivering a speech…and it’s probably not a good one.

It takes work to break bad habits. However, the benefit to your personal growth, leadership abilities, and business are worth the effort.

Image: Agê Barros on Unsplash

by David Klemt David Klemt No Comments

Wendy’s Looks to Ghosts for Growth

Wendy’s Looks to Ghosts for Growth

by David Klemt

Wendy's fast food restaurant exterior and sign

Wendy’s is the latest foodservice company to announce plans to open ghost kitchens in Canada, the US and the UK.

The fast-food giant’s scheme is large-scale and part of an expansive growth strategy.

Per the company, Wendy’s plans to open 700 ghost kitchens.

Embracing the Trend

Here’s a question for you: Do you hear and read the word “pivot” or the phrase “ghost kitchen” more often these days?

Ghost kitchens seem to be the pivot of choice for restaurant groups and enterprising tech companies looking to leverage the next big thing. (There, a sentence with both “pivot” and “ghost kitchen” in it,)

The trend also appears more often than not to be the domain of Big Business.

Former Uber executive Travis Kalanick is the founder of CloudKitchens. DoorDash is also entering the ghost kitchen space, running a trial in California to see if pursuing the idea is viable.

Now, enter Wendy’s, not exactly a mom-and-pop shop in the restaurant space.

Ghost vs. Virtual Kitchen

We don’t revel in the semantics game, necessarily. But we know people are going to refer to Wendy’s ghost locations as “virtual” kitchens as well.

However, ghost kitchens and virtual kitchens have unique definitions and characteristics.

Wendy’s isn’t creating a new brand with new items they’re preparing in their existing brick-and-mortar locations. Nor do they plan to do so with their new locations under constructions currently.

Were that the case, their strategy would be a virtual kitchen plan.

Instead, the 700 locations will be separate facilities without storefronts. Also, the units will focus solely on delivery, leveraging on-demand consumer behavior.

So, the lack of storefront is arguably the greatest defining characteristic of a ghost kitchen.

Conversely, a virtual kitchen operates in a location with a storefront. However, the brand on offer exists online and not in the brick-and-mortar world of an established brand. In essence, an existing brand is offering a brand that they don’t want to dilute what they’ve already built.

That’s a Lot of Ghosts

Per reporting, Wendy’s is joining forces with Reef Technology to open and operate their ghost kitchens.

At least 50 such locations are in the works to open this year. The other several hundred locations will open between 2022 and 2025.

That means we should see more than 150 Wendy’s ghost kitchens going live per year across Canada, the US and the UK.

Partnering with Reef Technology is an interesting and telling maneuver. Reef, per their website, focuses on “urbanization” and reshaping “our urban infrastructure.”

And as CEO Todd Penelow stated last week, Wendy’s doesn’t isn’t strong in urban areas. The vision for Wendy’s new strategy is to penetrate urban markets, adding new stores and new franchisees as the brand moves forward.

Should things go according to plan, Wendy’s expects to expand from 6,500 units worldwide to somewhere between 8,500 and 9,000 in 2025.

Image: Michael Form from Pixabay

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Vax Passports? Here Come Vax Kiosks

Vaccine Passports? Here Come Vaccine Kiosks

by David Klemt

Vaccine passport on phone sitting on map and passport

Some airports and hotels are already leveraging kiosk technology to confirm a person’s vaccine status.

It’s only a matter of time before we see this technology expand to hospitality venues like restaurants, bars and nightclubs.

The question is, what will the confirmation process look like?

CLEAR Example

One of the simplest ways to imagine how these kiosks will work is via CLEAR.

The company uses a person’s unique biometrics to “transform your eyes and face into a touchless ID.” CLEAR can also use fingerprints.

Currently, you can find the service in more than 50 airports, stadiums and other locations. A person walks up to a CLEAR kiosk, it scans their eyes, face and/or fingerprints, and their identity is confirmed.

The company’s website shows a message explaining that CLEAR users can link their vaccine status to their account. At the moment, this appears to be one of the most seamless integrations in terms of tech and an individual’s identity.

One real-world example of how CLEAR works to prove vaccination status comes from the Las Vegas Raiders. To attend home games without wearing masks, people will have to download the free CLEAR mobile app. Using the Health Pass feature, they’ll be able to prove their vaccination status to go maskless at Allegiant Stadium.

Privacy Concerns

So, how else could these kiosks work? First, it’s incredibly unlikely that every major market will install such kiosks. The exception may be airports, of course.

However, some hotel and large restaurant groups may decide to use them, likely in cities like New York that already have vaccine passport apps.

In theory, using a platform like Google API, businesses could install kiosks that scan an app via QR code or other method to confirm a person’s vaccination status.

One glaring issue comes down to privacy.

Loyal CLEAR users trust the company or they wouldn’t use it. However, who would program apps that confirm vaccination status for kiosks? And who would own the data? How secure can that very personal data be?

Millions of people already believe being asked to wear a mask is an infringement on their freedoms. Millions also believe being asked to confirm their vaccination status is a violation of their privacy.

So, how will they respond to vaccine passports at hotels, restaurants, entertainment venues, stadiums, etc.? Whatever side of the debate you’re on, it’s clear that the divide between the vaccinated and unvaccinated is widening by the day.

As has been the case since 2020, lawmakers are punting on taking responsibility for how mandates and “recommendations” are enforced by businesses. As has been the case for well over a year, it’s the guest-facing workers who will bear the brunt of hostile encounters over mask and vaccine rules.

Image: Olya Kobruseva from Pexels

by David Klemt David Klemt No Comments

Connect with Us at Pizza Expo 2021

Connect with Us at Pizza Expo 2021

by David Klemt

Freshly baked pepperoni pizza on board

We’re currently attending the International Pizza Expo in Las Vegas this week.

If you’d like to meet up, don’t hesitate to reach out to me via email or LinkedIn.

There are a lot of attendees to meet, education sessions to check out, and exhibitors to explore. However, we’ll be around so don’t be shy.

Where to Find Us

First, it’s awesome that trade shows and conferences are back in Las Vegas.

Linking online is convenient but nothing can really replace connecting in person.

That said, we’ll be at the International Pizza Expo all three days. Please, if you want to learn more about KRG Hospitality or the Bar Hacks podcast, feel free to connect.

Today, you’ll be able to find us at industry leader, pizza pro, restaurateur, and Bar Hacks guest Mike Bausch‘s “Community Marketing” seminar. Of course, we’ll also be attending his keynote on Wednesday.

But, back to today. You’ll certainly be able to find us at Scott Anthony’s “Old-school Marketing that Still Works,” and Nicole Russell and Anthony Falco’s “Today’s Top Pizza Trends” seminars.

If you’re looking for us on Tuesday, we know we’ll be attending Bausch’s “Menu Development Amidst COVID”; Nicole Bean’s “Logistics of Offering Multiple Pizza Styles”; and Sammy Mandell’s “Using Video to Grow” sessions.

Wednesday, the final day of this year’s International Pizza Expo, offers an array of can’t-miss education sessions.

We’re interested in the “Women in Pizza” panel featuring Nicole Bean, Rachel Cope, Denise Greer and Nicole Russell; Bausch’s “Third-party Delivery”; and the “Not Letting Covid Win” panel with Domenico Di Diana, Pasquale Di Diana, and Eric Rickman.

Of course, we’ll be walking the expo floor as well.

Las Vegas is Home

One of the major KRG Hospitality markets is Las Vegas. It’s where I’ve lived for nearly two decades.

So, if you want to grab a bite and a drink or even just want some tips for places to check out, reach out to me.

As home to one of Tony Gemignani’s Pizza Rock locations, it’s more than a little likely that you’ll spot us at this off-Strip pizza standout.

Image: amirali mirhashemian on Unsplash

by David Klemt David Klemt No Comments

Leadership: What is the 10 Second Rule?

Leadership: What is the 10 Second Rule?

by David Klemt

Message icon and emoji in form of white neon sign

Anyone who spends any time reading publications that focus on business will come across the “10 Second Rule.”

So, what is this rule? And why should you care?

After all, many entrepreneurs who enter hospitality do so partially to reject “corporate life.”

Adapt Rather than Reject

First, let me say that we understand the allure of eschewing the traditional business world. KRG Hospitality is itself a rebellion against corporate life.

However, we believe that some proven business strategies absolutely have a place in independent restaurant and bar operations.

Indeed, there are lessons independent and boutique operators can learn from their chain and corporate counterparts.

Conversely, independent and boutique entrepreneurs can teach chains quite a few things.

In fact, there are chain operations out there that go to great lengths to appear independent. They strive to leverage the perception that they’re local and small.

So, rather than outright reject corporate strategies and tactics, operators should adapt them to streamline operations, reduce costs, maximize profits, and thrive long-term.

Ten Seconds

Hospitality and foodservice are fast-paced—that’s not news. When front and back of house find themselves in the weeds, passions rise quickly. Often, a blow-up is on the menu.

The same can be true during shift and staff meetings. Perhaps one or two employees aren’t engaging, or maybe there’s a long-simmering issue that’s close to boiling over.

Or, perhaps a change to operations and expectations—the reason for the meeting—immediately ruffles feathers. This rule also applies to one-on-one discussions between ownership, management, and staff.

Engaging in a dust-up can be tempting. Not many people appreciate having their authority questioned or perceived slight left unaddressed.

The 10 Second Rule I’m addressing pertains to communication. Of course, we all know communication is often two things: crucial and difficult.

Simply put, the 10 Second Rule tells us to be quiet for ten seconds. If tensions are rising (often accompanied by volume), put an end to the situation by shutting up and counting to ten.

According to people who champion this rule, a few things happen: the person who implements stops feeding the tension; that same person can now respond without emotion; it provides time to remember that the other party isn’t just an opponent; and the other party tends to also cool off.

It’s a simple rule that can have a huge impact on workplace culture. A healthier, more positive culture leads to happier staff, which improves recruiting and retention. That’s a huge payoff for just ten seconds.

Image: Jason Leung on Unsplash

by David Klemt David Klemt No Comments

How and Why to Edit Your Menu

How and Why to Edit Your Menu

by Nathen Dube

Restaurant tables with place settings and menus

When thinking about opening a restaurant an important question to answer is, “What am I going to serve?”

There is one answer that tempts too many restauranteurs: “I’ll offer something for everyone!” The thinking is that doing so translates into everyone coming to their restaurant or bar.

The truth is, everyone isn’t coming. Sadly, many of these places don’t survive long, and 60 percent of restaurants don’t make it past their first year. Having an overwhelming menu is one of the key contributors to that statistic.

Massive menus are stressful for guests, making it difficult for them to decide. At a certain point, too many items create what’s called the Paradox of Choice. Overwhelm guests with possibilities and they’ll just choose something simple and familiar rather than exploring the entire menu, impacting the guest experience negatively.

Too many options also lend to the perception of low-quality food. How can a kitchen staff possibly excel at so many dishes? How can the ingredients be fresh and not frozen? What is the quality of dishes if people only order them once or twice a week?

Those reasons and more are why it’s important to have a laser-focused menu from the onset.

Inventory Challenges

If a large portion of your menu isn’t moving out of the kitchen to hungry diners, guess where that food is going. A large menu creates tracking issues, a high percentage of ingredient spoilage, and opens the door to theft from staff. The best establishments do just a handful of things well, with a select few complementary items to round out the menu.

Having a kitchen full of product for dishes on the menu that might get ordered can quickly turn into dead stock. If there are boxes sitting in dry storage shelves collecting dust, it’s a good time to consider removing any dishes that require them from the menu.

Setting a scheduled review of inventory and menu sales breakdowns can be a great way to avoid dead stock eating into your food budget for any significant length of time. Not all dishes end up being winners—ignoring the losers will limit profitability significantly. A massive, unchecked menu just compounds the issue.

Another profit-eater is food waste. Ordering usually means receiving product in bulk and breaking it down. It’s near impossible, as an example, to order just two or four of something like cabbage for a dish that doesn’t move. The cabbage sits, and half a case gets thrown out for every dish sold. Having a focused menu will help quickly highlight items that need to be removed from a menu.

Tracking Issues

Then there’s the issue of theft. Unfortunately, theft happens. Having some deterrents in place can help mitigate opportunities for those who seek to steal in this industry.

If there aren’t robust tracking systems in place along with an honest team who uses them correctly, things can (and will) disappear. A much harder time will be had spotting losses and what’s causing them when it takes a long time to track inventory. Again, this leads to compounded profit losses on dead stock and product spoilage. We haven’t even begun to prepare any food yet and already our food cost is trending in a bad direction.

A restaurant budget needs to be established before opening and needs to be adhered to strictly. That can quickly go out the window when it comes to ordering food to stock your kitchen. A massive addition to your operating costs can set you back a few months, particularly when you’re not seeing a return on purchases for the reasons stated above.

With the current climate of the restaurant industry and a post-Covid dining scene, avoiding these pitfalls is crucial to success. Rising food and labour costs, recovering from months of closures, and a shortened patio season (if you’re lucky enough to have one), have made strict cost controls more important than ever going forward.

Keep in mind, if your seating capacity matches or is less than the amount of menu items you’re serving, that equates to minimal product turnover, which translates to minimal profits. That number is multiplied by product loss of any kind.

Training & Retention

When an owner can’t match their concept to food and drink offerings, it leads to poorly trained staff and frustration during service. There will be plenty of room for error (more loss!) and, unsurprisingly, low staff retention. That all keeps this never-ending cycle in motion.

If you can’t clarify your vision, how can you expect staff to showcase it to guests with any confidence?

At every “big menu” restaurant I’ve worked in, the owners were always in the building or kitchen. This wasn’t because they were driven to be hands on. It was because they couldn’t train staff properly to run the whole menu reliably, things would go “missing,” or staff simply couldn’t accomplish daily tasks consistently.

Interestingly, the opposite was true at establishments with small, focused menus. Staff were confident and knowledgeable, problems with food and service didn’t spiral out of control, and food moved out the door to some degree of consistency. The owners were freed up to run their business rather than micromanage everyone.

With all the issues currently hampering the food industry, the last thing you want right now is another level of frustration among your staff. Retention rates are at an all-time low. The struggle to fill job openings industry-wide are at all-time high, as are reported cases of staff walking out mid-service. A properly structured menu can keep your business on track and make the lives of your employees much more simplified.

Editing Your Menu

Focusing on cohesion between menu and concept doesn’t require offering all the dishes under the sun. Avoiding the “something for everyone” approach leads to improved guest experiences and employee confidence. Streamlining your menu simplifies inventory and sales tracking; differentiates high-profitability items from the rest; and makes identifying items that don’t sell easier.

Paring down your menu into a tight, focused version allows you to quickly retool it every few months. Just try tracking and editing a large four-page menu as frequently. It’s costly to reprint and you have better things to do with your time.

Keeping things tight also creates space to take advantage of seasonal offerings, local specialties, or customer favorites. You can also offer specials throughout the week that can drive traffic and give your talented cooks a chance to show off!

I would suggest looking over your sales data to identify your highest-selling dishes and the slow movers every one to two months. If you have a seasonal menu, this can be done at the midpoint of a seasonal change.

Think about what items are being purchased and only used in one dish. They can start to pile up in your stockroom and lead to dead stock. Consider the versatility of ingredients when planning a menu change—cross-utilize everything you can.

Fluctuating Costs

Another important point that can get forgotten is that the prices of food items fluctuate constantly. Maintaining a large menu, therefore, can become a nightmare cost scenario quickly. Limes, beef, avocados—even celery—are experiencing tremendous jumps in price. A small menu allows for damage control when prices jump, giving your room to make quick, lower-cost moves.

Of course, the alternative is to have your staff rattle off everything the kitchen is out of to your guests. Not cool.

The underlying theme here is to avoid tying up your finances in product that is sitting, turning to waste instead of profit, or not moving at all. Your mission is to have product moving out of the kitchen constantly and consistently.

It might seem like a wise decision to offer a large menu that’s all over the place. Maybe you’re making that choice for fear of alienating guests or reducing your traffic. However, the points made in this article should illustrate why a cohesive link between concept and menu is crucial, and how a smaller, more focused menu can deliver more for you than a large, out-of-touch menu.

Image: Karolina Grabowska from Pixabay

by David Klemt David Klemt No Comments

What’s the RRF Replenishment Act?

What’s the RRF Replenishment Act?

by David Klemt

The United States Capitol Building with cloudy sky in background

The ENTREE Act isn’t the only bill seeking to replenish the Restaurant Revitalization Fund. In fact, a bipartisan bill predates the ENTREE Act by a month.

So, what’s the difference between that bill and the Restaurant Revitalization Fund Replenishment Act of 2021?

Let’s take a look.

Additional Funding

Clearly, the biggest similarity between the two bills is the amount of money both are after.

Both the RRF Replenishment Act and ENTREE Act seek $60 billion.

As people familiar with the RRF will recall, the fund launched with $28.6 billion. Obviously, that was nowhere near enough funding to meet the demand for grants.

The RRF Replenishment Act was introduced in June by the same bipartisan group that first introduced the RRF. Sens. Kyrsten Sinema (D-AZ) and Roger Wicker (R-MS), and Reps. Earl Blumenauer (D-PA) and Brian Fitzpatrick (R-PA) introduced the bill on June 3.

Per a press release, nearly $50 billion in grant applications were left outstanding. The RRF application portal was closed just 21 days after launching.

$60 Billion

The biggest difference between the RRF Replenishment and ENTREE acts? Sourcing the $60 billion to replenish the RRF.

Per the text of the bill, the ENTREE Act would use unspent funds from the American Rescue Plan and Economic Injury Disaster Loans.

As for the RRF Replenishment Act, the funding would essentially come from “printing” an additional $60 billion.

Clearly, Americans will have differing opinions when it comes how the RRF is funded. However, using unspent, previously allocated funds does seem like a more logical approach.

So far, there’s no word on how these two bills may impact one another. There’s no news about the bills working in conjunction, just as there’s no news yet about a preference for one over the other.

With all eyes on the Senate and the progress of the infrastructure bill, we’re still awaiting answers on the RRF Replenishment and ENTREE acts.

Image: oljamu from Pixabay

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Today’s the Day: Canada Opens Border

Today’s the Day: Canada Opens Border

by David Klemt

Canadian Border Services Agency sign on chainlink fence

The big day is here and Canada is opening their border to the USA.

Today, Americans and permanent residents can enter the country for “discretionary,” a.k.a. non-essential, travel.

Of course, the border is only open to travelers who can prove their vaccination status (full series).

Quarantine Lifted

As many Canadians are well aware, quarantining was mandatory for people traveling into Canada up until today.

Asymptomatic travelers, with very specific exemptions, were required to quarantine for 14 days upon arrival. The mandatory quarantine included a three-night stay at a hotel authorized by the Canadian government.

Oh, and the traveler had to cover the cost of the mandatory hotel stay.

However, that wasn’t all that was required. Travelers had to create and submit a quarantine plan. Foreign national who failed to submit a plan deemed suitable faced the risk of border agents turning them away.

Of course, the mandatory quarantine dissuaded Canadians from traveling across the border for essential travel. After all, Canadians weren’t exempt from hotel quarantine.

Requirements

Now, Americans or permanent residents residing in America aren’t receiving unfettered access to the border. Indeed, there are requirements that must be met for anyone hoping to cross into Canada from the US.

Per the Government of Canada website, in its entirety for clarity:

“Beginning on August 9th, 2021 at 12:01 a.m. EDTfully vaccinated United States (U.S.) citizens and permanent residents will be eligible to enter Canada for discretionary (non-essential) reasons, such as tourism, however these individuals must:

  1. be fully vaccinated: to be considered fully vaccinated, a traveller must have received the full series of a vaccine—or combination of vaccines—accepted by the Government of Canada at least 14 days prior to entering Canada. Currently, those vaccines are manufactured by Pfizer-BioNTech, Moderna, AstraZeneca/COVISHIELD, and Janssen (Johnson & Johnson).
  2. be residing in and travelling from the U.S.;
  3. have a valid pre-arrival COVID-19 molecular test result taken in the U.S. (antigen tests are not accepted);
  4. be asymptomatic;
  5. submit their mandatory information via ArriveCAN, including proof of vaccination in English or French;
  6. be admissible under the Immigration and Refugee Protection Act; and,
  7. take a test on arrival, if required.”

So, if you or someone you know is planning to travel to Canada from America, make sure you follow the requirements precisely.

Operators, Be Ready

So far, news of increasing infection and hospitalization rates aren’t impacting Canada’s decision; the border is open as of today. Neither New York City’s vaccine mandate nor an increasing amount of counties and corporations implementing mask and vaccine mandates are deterring Canada.

Additionally, it doesn’t appear as though the Canadian government plans to implement other travel requirements (so far).

Canadian restaurant, bar, hotel, and entertainment venue operators need to be ready for an influx of guests. This is particularly true for operators in large metropolitan areas and well-known tourist destinations.

Pent-up demand for travel, experiences, reunions, weddings, and just escape should skyrocket with the Canada-US border reopening.

Also, should things go well, operators need to prepare for even more travels next month. While not written in stone, Canada plans to open the country’s borders to other countries on September 7.

Interestingly, this is also excellent news for those waiting to open a restaurant or bar. Plans to reopen borders should prove to be a boon for the Canadian economy. So, now’s the time to move forward.

Canadian operators must be vigilant about monitoring the border situation. Fresh opportunities arrive on your doorstep starting today.

Image: Hermes Rivera on Unsplash

by David Klemt David Klemt No Comments

What is the ENTREE Act?

What is the ENTREE Act?

by David Klemt

United States Capitol Building on fifty dollar bill

Foodservice and hospitality operators are waiting for Congress to act and replenish the Restaurant Revitalization Fund.

Well, that replenishment may come in the form of a bill from Rep. Blaine Luetkemeyer (R-MO).

Congressman Luetkemeyer is a ranking member of the House Committee on Small Business.

Restaurant Revitalization Fund Empty

As operators know, it didn’t take long for the RRF to be depleted entirely.

The Small Business Administration opened the RRF application portal on May 3. Just 21 days later, the portal was closed to new applicants.

More than 60 percent of eligible applicants in need were not awarded grants from the $28.6 billion fund.

Clearly, that amount was nowhere near enough to meet the needs of our industry.

People have been calling for Congress to #replenishRRF ever since the RRF portal was closed on May 24.

Entrepreneurs Need Timely Replenishment for Eating Establishments Act

To be fair, Congress acted quickly to at least address the SBA’s shortcomings in handling the RRF.

Early in June, a bipartisan group introduced Restaurant Revitalization Fund Replenishment Act of 2021. Sens. Kyrsten Sinema (D-AZ) and Roger Wicker (R-MS), and Reps. Earl Blumenauer (D-PA) and Brian Fitzpatrick (R-PA) introduced the bill on June 3.

The bill seeks $60 billion to replenish the RRF and the funds would essentially come from “printing more money.”

However, Rep. Luetkemeyer introduced the Entrepreneurs Need Timely Replenishment for Eating Establishments Act on July 20.

The aptly (if unwieldy) named bill is also proposing $60 billion. However, the funds would come from a combination of sources.

ENTREE Act Funding

Both sources would pour unspent, previously allocated funds into the ENTREE Act.

Rep. Luetkemeyer’s bill proposes using state and local funds from the $1.9 trillion American Rescue Plan.

The ENTREE Act would also secure funds from Economic Injury Disaster Loans that have yet to be spent.

Currently, there’s no indication if Congress intends for these bills to somehow work together. Also, no date has been put forth regarding voting on either the Restaurant Revitalization Fund Replenishment Act or ENTREE Act.

However, we can put pressure on Congress by asking them to act quickly on these bills. So, let’s come together and contact our representatives—it can take just 30 seconds.

Image: Karolina Grabowska from Pexels

by David Klemt David Klemt No Comments

New York City Mandates Escalate

New York City Mandates Escalate

by David Klemt

Times Square empty in New York City during Covid-19 pandemic

Mandates requiring people to wear masks and maintain social distance indoors aren’t new.

However, a mandate requiring proof of vaccination status to dine and drink inside a restaurant or bar is a new development.

This week, Mayor Bill de Blasio is escalating Covid-19 mandates in New York City.

Restaurants and Gyms

To date, New York City is nearing a 70-percent full vaccination rate.

The latest pandemic mandate is likely intended to boost the city’s vaccination rate. Per reporting, the Delta variant of Covid-19 accounts for more than 70 percent of new cases in New York City.

Interestingly, the new mandate requires workers, not just customers, to prove their vaccination status. It also makes New York the first major city to implement such a requirement.

So far, the requirement pertains to indoor restaurants, bars, nightclubs, performances, and gyms.

Per Mayor de Blasio’s announcement, the vaccine mandate, referred to as “the Key to NYC Pass,” will begin with a transition period that starts August 16. Beginning September 13, full enforcement of the mandate via New York State’s Excelsior Pass app; the NYC COVID SAFE app; or paper vaccination card is expected.

Union Square

Predictably, the response to this mandate comes in three flavors: supportive, hostility, and apathetic.

So, those who support the requirement are applauding it, saying they’ll feel safer when dining out. Conversely, those who oppose the new mandate believe this is glaring government overreach and an infringement on their freedoms.

In a way, however, this mandate isn’t completely new. Some operators throughout the United States already require proof of vaccination to enter their venues.

Currently, several media outlets are focusing on Danny Meyer and his Union Square Hospitality Group.

Several days before Mayor de Blasio’s announcement, Meyer said guests who want to dine and drink in his NYC restaurants will need to prove vaccination status starting September 7.

Additionally, Meyer announced current and new employees would have to prove they’ve been vaccinated.

At the moment, it doesn’t appear Shake Shack, of which Meyer is founder and chairman, will follow suit.

Not the First

However, Meyer is not the first operator to implement and enforce strict Covid-19 protocols to protect their teams, guests and communities.

Perhaps some of the focus on Meyer is intended to draw eyes and ears, and ultimately encourage more people to get vaccinated fully. After all, celebrity chefs and operators have nationwide and global influence.

Cynically, however, it’s to not dismiss the focus on Meyer as a ploy for ratings, clicks, and engagement.

At any rate, many operators across the country require proof of vaccination to work and dine at their restaurants, bars, nightclubs, and hotels. And many were doing so before Meyer made his announcement.

One such chef-operator is Eric Rivera, who operates ADDO in Seattle. He has required proof of vaccination for employees and guests since May of this year.

In fact, Chef Rivera has been strict in his handling of Covid-19 health and safety measures since last year.

A visit to Chef Rivera’s website finds the following disclaimer, attributed to him:

“All of our experiences are for vaccinated guests only. That will remain permanent. If that’s a problem for you then there are plenty of restaurants that will reward you for doing nothing, this isn’t one of them.”

During an NPR interview, Chef Rivera explained his stance succinctly: “I don’t want to be somebody’s last meal. Whatever I’m doing food-wise and restaurant-wise isn’t worth that.”

He’s active on Twitter, where he makes his position and policies clear.

Takeaway

If you think I’m going to point out that New York City’s new mandate increases the likelihood of hostile confrontations with guests, you’re correct. I’ve said it before and I’ll say it again.

Also, if you’re guessing that I’m going to point out that guest-facing team members must receive support from leadership when policing guest behavior, you’re two for two.

However, policies like those put in place by Chef Rivera and others throughout the industry highlight something else: They’re showing the fallacy of the maxim “the customer is always right.”

Why should operators tolerate aggression toward their employees from disrespectful, angry customers—for any reason—if the employee is remaining professional and respectful?

It certainly seems that a growing number of operators are tired of capitulating to everyone who walks through their doors. The days of bowing to customers and failing to support and defend employees look to be ending.

Personally, I’m in favor of putting that outdated adage to rest. Continuing to reward guest behaviors we find objectionable—which has been the industry’s stance for decades—ultimately motivates good employees to quit. Again, this isn’t a pandemic-driven phenomenon—it has been going on for generations.

Of course, each operator must do what they think is best for their business. Just about every decision made in this industry is risky, but risk is something all operators understand inherently. Watching dollars walk out the doors never to return can be a frightening proposition. So is the prospect of losing good workers and incurring the associated costs.

The need to balance the comfort and safety of their team members and guests is paramount—an absence of either will shut a business down. Today, however, choosing guest dollars over employee dignity, safety and mental health is inexcusable and evidence of a problematic company culture.

If we’re truly in the midst of a Great Resignation, I can’t fault operators for deciding to keep their employees safe. Even if we weren’t facing a labor shortage, I’d support operators who support their workers.

Image: Paulo Silva on Unsplash

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