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White clock on red background
by David Klemt David Klemt No Comments

Restaurants in Canada: Daypart Performance

Restaurants in Canada: Daypart Performance

by David Klemt

White clock on red background

For both in-person dining and off-premise consumption, more Canadian consumers are ordering from restaurants across all dayparts.

As Restaurants Canada points out in their latest report, traffic and sales remain lower than pre-pandemic levels. However, there are reasons to be positive.

For one example, Restaurants Canada predicts 2022 sales to return to pre-pandemic levels by the end of the year. The foodservice research and advocacy organization’s 2022 Foodservice Facts report provides another positive outlook.

Just looking at Q1 of this year versus Q3, all dayparts are seeing increases in traffic.

To read more about the report and grab your own copy, follow this link.

Numbers Tell the Tale

Per Restaurants Canada, the breakfast daypart slid significantly in 2020. During that time, it fell 20 percent that year.

For the first half of this year, however, Restaurants Canada reports that breakfast traffic is just four percent lower in comparison to 2019.

On a positive note, the breakfast daypart has risen steadily from March of this year to July, or Q1 versus Q3. In fact, all dayparts have grown.

According to Restaurants Canada, 43 percent of Canadians ordered breakfast from restaurants in March 2022. That number grew to 50 percent by July of this year.

In terms of snack purchases, 55 percent of Canadian consumers made purchases from restaurants. By July, that percentage rose to 62 percent.

Continuing along, 64 percent of Canadians placed lunch orders in March. Four months later, that number had increased to 73 percent.

Per the 2022 Foodservice Facts report, a significant percentage of Canadians are placing lunch and snack orders. In fact, Restaurants Canada says that Canadians are making purchases from restaurants during those dayparts two to three times per month.

Of course, there’s one more daypart we need to discuss…

Dinner is King

By the numbers, the dinner daypart is outperforming all others in Canada.

In March of 2022, 85 percent of Canadians had placed dinner orders at restaurants. That number rose to 87 percent in April but dipped to 86 percent in May.

However, dinner saw growth again in June and July, rising to 88 and then 89 percent, respectively.

As the numbers show, dinner orders are outpacing lunch orders 14 percent. Snacks are being outpaced by dinner by nearly 30 percent. Of all dayparts, breakfast is the weakest.

In fact, dinner outperforms breakfast by nearly 40 points. This makes sense when we consider the work-from-home effect.

More people working from home means, in theory, many less people commuting to work. Restaurants that once saw great breakfast daypart traffic are seeing a significant dropoff. Less people commuting means less people popping into a restaurant for breakfast.

It appears that instead, people are clocking in, working until break time, and then going to get a snack. And when lunch rolls around, why not place an order for lunch?

Naturally, after working all day, people are tired or eager to meet up with friends and family to socialize and decompress. So, dinner ruling the daypart roost makes complete sense.

In other words, operators looking to streamline should consider this Restaurants Canada data. The dayparts that require the most labor currently are lunch and dinner, so operators should plan accordingly if that’s viable for their business.

Image: CHUTTERSNAP on Unsplash

Closeup of bartender's hand pouring shot
by David Klemt David Klemt No Comments

2022 World’s 50 Best Bars: 51-100

2022 World’s 50 Best Bars: 51-100

by David Klemt

Closeup of bartender's hand pouring shot

As we approach the ceremony to announce the 2022 World’s 50 Best Bars we now know which bars across the globe are on the 51 to 100 list.

It’s crucial to keep in mind that these are 50 of the most impressive bars not just in the US, not just in Canada, and not just in North America. Rather, these are among the absolute best bars in the world.

Of particular note, Singapore continues to prove itself as a dominant cocktail destination. There are eight bars on the 2022 51 to 100 list, and I predict that at least three more from Singapore will appear on the 1 to 50 list.

Also, the UK and Cape Town each claim four spots among the best 51 to 100 bars, and Paris boasts three. Operators, bar professionals, and tourists should keep their eyes on Cape Town as it continues to transform into a cocktail hot spot.

Among the 51 to 100 list, four are from the US and, sadly, none are in Canada. Overall, 15 bars on this list are new entries, as are five of the cities represented.

1 to 50: One Week Away

Of course, this leaves us all with a few important questions.

When will we find out about bars 1 through 50? Which bars are on that list? And which bar will be number one this year?

Well, I can answer one of those questions for you. A week from now, October 4, the World’s 50 Best Bars will announce the top 50 bars in the world during a ceremony in Barcelona, Spain.

To learn more about the World’s 50 Best Bars and this year’s ceremony, listen to Bar Hacks episode 82 with Mark Sansom. Also, make sure you’re following the World’s 50 Best Bars on Twitter and Instagram.

For now, scroll down to check out bars 51 to 100. Congratulations to the bars below!

The World’s 50 Best Bars 2022: 100 to 51

  1. Sin + Tax (Johannesburg)
  2. Tesouro (Goa)
  3. Zapote Bar (Playa del Carmen)
  4. Tag (Kraków)
  5. The Dead Rabbit (New York)
  6. The Bamboo Bar (Bangkok)
  7. Sweet Liberty (Miami)
  8. Mace (New York)
  9. The House of Machines (Cape Town)
  10. Antique American Bar (Bratislava)
  11. Republic (Singapore)
  12. Donovan Bar (London)
  13. Art of Duplicity (Cape Town)
  14. Re (Sydney)
  15. Freni e Frizioni (Rome)
  16. Danico (Paris)
  17. Le Syndicat (Paris)
  18. Bar Goto (New York)
  19. Indulge Experimental Bistro (Taipei)
  20. Lost & Found (Nicosia)
  21. Dead End Paradise (Beirut)
  22. Vesper (Bangkok)
  23. Röda Huset (Stockholm)
  24. The Court (Rome)
  25. Candelaria (Paris)
  26. Side Hustle (London)
  27. Nutmeg & Clove (Singapore)
  28. Camparino in Galleria (Milan)
  29. Three Sheets (London)
  30. Tjoget (Stockholm)
  31. La Sala de Laura (Bogotá)
  32. No Sleep Club (Singapore)
  33. Hero Bar (Nairobi)
  34. Atlas (Singapore)
  35. El Barón (Cartagena)
  36. Analogue (Singapore)
  37. Brujas (Mexico City)
  38. The SG Club (Tokyo)
  39. Tan Tan (São Paulo)
  40. Presidente (Buenos Aires)
  41. Caretaker’s Cottage (Melbourne)
  42. Schofield’s (Manchester)
  43. Mimi Kakushi (Dubai)
  44.  MO Bar (Singapore)
  45. Quinary (Hong Kong)
  46. 28 HongKong Street (Singapore)
  47. La Factoría (Old San Juan)
  48. Cause Effect Cocktail Kitchen (Cape Town)
  49. Barro Negro (Athens)
  50. Sago House (Singapore)

Image: Louis Hansel on Unsplash

Chef inside commercial kitchen
by David Klemt David Klemt No Comments

Canada’s Restaurant Labor by the Numbers

Canada’s Restaurant Labor by the Numbers

by David Klemt

Chef inside commercial kitchen

While there are positive signs for Canada’s foodservice industry, recruiting and retaining labor continues to be a challenge.

Unfortunately, this isn’t a challenge unique to Canada. Operators throughout North America and indeed across the globe are facing labor shortages.

Restaurants Canada addresses this topic in their 2022 Foodservice Facts report. The non-profit research and advocacy group predicts sales will reach pre-pandemic levels by Q4 of this year.

However, restaurants, bars, and nightclubs may have to achieve traffic and revenue growth despite a significant labor deficit.

Please click here to access the 2022 Foodservice Facts report yourself.

Labor Shortage by Category

In their latest report, Restaurants Canada crunches the numbers for three distinct venue categories. These are quick-serve restaurants, full-service restaurants, and bars and nightclubs.

The organization finds that QSRs and FSRs are facing the greatest shortages. In fact, in response to a survey from May of this year, at least half of QSRs and FSRs aren’t operating with fulls staffs.

For QSRs, 52 percent of respondents say they perceive restaurants and bars they’ve visited to be understaffed. A bit over a third (36 percent) think staffing is “about right.” Unhelpfully, 12 percent “don’t know” if restaurants and bars have enough staff.

So, let’s switch gears to FSRs. Precisely half of survey respondends say restaurants and bars don’t have enough staff. Just like their QSR counterparts, 36 percent say that staffing seems to be at the ideal level. Fourteen percent respond that they “don’t know,” which doesn’t tell us much.

Per Canadians who responded to Restaurants Canada’s survey, bars and nightclubs are fairing better…at first. Frustratingly, a staggering 37 percent of respondents “don’t know” if bars or nightclubs have appropriate levels of staffing. Thirty-two percent think they’re understaffed, 31 percent think staffing levels are “about right.”

Industry professionals are probably already putting two and two together here. As long as guests receive the level of service they expect, from greeting to speed of service, to closing out their check, they think things are fine. If they’re made to wait longer than they want, they’ll likely say a restaurant, bar or nightclub doesn’t have enough people on shift.

Labor Shortage by Role

Okay, so the May 2022 Restaurants Canada wasn’t entirely helpful. It still provides interesting insight. That is, we know how guests perceive staffing in at least most instances.

So, let’s get down to hard numbers: shortages in specific roles throughout the industry.

Here, Restaurants Canada provides compelling information, even if it’s not what we want to see. In comparison to 2019, every role is down by thousands of people. In some cases, tens of thousands.

Below you’ll find the deficits by role:

  • Foodservice supervisors: -3,100
  • Chefs: -10,900
  • Bartenders: -17,600
  • Maîtres d’hôtel and hosts/hostesses: -21,100
  • Restaurant and foodservice managers: -22,400
  • Food counter attendants, kitchen helpers, and related support occupations: -43,200
  • Cooks: -44,400
  • F&B servers: -89,500
  • Other: -18,800

Add that up and that’s a shortage of 271,000 people throughout Canada’s foodservice industry. For further context, the industry boasted 1,265,700 workers. In 2021, the industry was down to 994,700.

Unfortunately, from 2020 to 2021, just 4,100 jobs were recovered, according to Restaurants Canada. This situation clearly shows that operators need to change their approach to staffing.

Now, more than ever, operators must focus on effective recruitment, onboarding, and retention. For tips on making improvements, click here. To learn how to implement employee surveys to boost retention and avoid costly turnover, click here.

Image: Brian Tromp on Unsplash

Two full shot glasses on a bar
by David Klemt David Klemt No Comments

Addressing Substance Abuse in the Industry

Restaurant Business Articles Address Substance Abuse

by David Klemt

Two full shot glasses on a bar

Two revealing Restaurant Business articles paint a startling picture of the industry’s struggles with drug and alcohol abuse.

Unfortunately, the subject of substance abuse in restaurants and bars isn’t new. This has long been a pervasive, prevalent issue in the hospitality industry.

There are, as Restaurant Business authors point out, several reasons our industry continues to grapple with substance abuse.

Since we’re nearing Sober October, this topic’s importance seems particularly poignant. Of course, the health of hospitality industry professionals should always be a paramount operator concern every day. It shouldn’t take a specific month for us to address this issue, just to forget about it after 31 days of consideration.

Hospitality workers should feel supported by the business owners and operators for whom they work. Additionally, they should feel safe among the leadership team and their fellow team members. In part, this feeling of security and safety should manifest in being comfortable speaking about substance abuse in the workplace.

A significant element of creating a supportive, safe, and healthy culture is removing the stigma of struggling with substance abuse that persists today. How can operators, leadership, and team members help one another if they make peers feel shame for struggling with drugs or alcohol?

A crucial step toward addressing the issue of substance abuse is fostering a culture of respect, support, and safety. If anyone in any role—from ownership and leadership to front of house and back of house—feels as though they can’t speak with someone safely about their struggles, we can’t address this topic effectively. And if we can’t address it in a meaningful way, we can never effect real change that can improve and save lives.

Pervasive Struggles

A Restaurant Business article from last week addresses substance abuse and culture. “How Restaurants Feed a Culture of Substance Abuse” reveals disturbing statistics.

At the start of their article, editors Peter Romeo, Heather Lalley and Joe Guszkowski share a horrific story. In February of this year, Colorado law enforcement found six adults and a toddler in an apartment. The six adults had all overdosed on fentanyl-laced cocaine; five had died. All six adults worked in chain or independent restaurants.

Four years ago, Delaware officials investigated the state’s opioid crisis. They found 10 percent of Delaware residents who died due to opioid overdoses were foodservice workers. According to Restaurant Business, state officials concluded that foodservice experienced a higher rate of opioid deaths than any other industry.

Among the most-shocking revelations in the Restaurant Business article pertains to the US workforce as a whole. Frustratingly, the US government hasn’t researched illicit drug use in the workforce since 2015. So, for all we know, the numbers I’m about to share have either increased or decreased.

In a typical month in 2015, 8.6 percent of the US workforce was using illicit drugs. However, that number pales in comparison to the rate of illicit drug use among restaurant and hotel workers: 19.1 percent.

Examining Substance Use Disease (SUD), a term encompassing drug and alcohol abuse, the numbers expose the weight of our industry’s struggle. In 2015, 9.5 percent of the US workforce suffered from SUD. For restaurants and hotels? That number was nearly double: 16.9 percent, higher than any other industry.

Fentanyl Deaths

Restaurant Business Editor-in-Chief Jonathan Maze reveals how “restaurants are ground zero” for fentanyl overdoses.

Fentanyl is cheap to produce and transport. It doesn’t take much to be deadly. And most people who have the misfortune of consuming it do so unwittingly. As it turns out, drug dealers lace all manner of other drugs with it because it’s so powerful. So, cutting drugs with fentanyl is more “cost effective” for drug dealers.

This particular excerpt from Maze’s “As Fentanyl Deaths Soar, Restaurants Are Ground Zero” is startling: “Throughout the country, restaurants and bars are such common places for overdose deaths among customers that advocates are training bartenders and servers to administer Narcan, a medication used to treat opioid overdoses. They are also becoming sources for fentanyl test strips so customers can see if the drugs they’re taking are laced with the powerful drug.”

Further, this troubling excerpt: “The fentanyl epidemic is particularly troublesome in the restaurant industry given the generally high rate of drug use among workers. Restaurant work is notoriously intense. The hours are long and late, and employees are on their feet all day. They often get hurt on the job and can turn to painkillers, legal or otherwise.”

When I say that we need to address substance abuse in our industry to save lives, I’m not employing hyperbole. I mean it quite literally.

Please take the time to read these two Restaurant Business articles in their entirety. We need to take action today.

Image: cottonbro via Pexels

Close up of stack of credit cards
by David Klemt David Klemt No Comments

Swipe Fees Cost Over $77 Billion in 2021

Swipe Fees Cost Merchants Over $77 Billion in 2021

by David Klemt

Close up of stack of credit cards

A bill that intends to lower the credit card fees merchants pay by creating more competition within the industry is before Congress.

This bill, the Credit Card Competition Act of 2022, has bipartisan support. The two sponsors behind it are Sens. Richard Durbin (D-IL) and Richard Marshall (R-KS).

Of particular note, the bill seeks to amend the Electronic Fund Transfer Act. Specifically, the amendment targets the networks that merchants use to process electronic credit card transactions.

In short, banks that issue credit cards would have to merchants at least two processing networks. According to experts in this space, the bill prohibits banks from making those networks Visa and MasterCard.

Billions in Fees

So, why are Visa and MasterCard in the crosshairs of this bill?

According to the Merchants Payments Coalition (MPC), Visa and MasterCard control 87 percent of credit (and debit) card markets. Per the MPC, Visa and MasterCard account for about 576 million credit cards.

In the U.S. alone, transactions amounted to $3.49 trillion in 2021. Eye-wateringly, those transactions were accompanied by $77.48 billion in merchant fees for the two processing behemoths in the same year.

For additional context, Visa and MasterCard swipe fees totaled $61.6 billion in 2020. That represents an increase of 137 percent over the decade prior. Adding the merchant fees for all cards, the 2020 total was $110.3 billion, which is an increase of 70 percent from the previous ten years.

As veteran operators are well aware, swipe fees are among the highest costs for restaurants and bars.

Merchants Payments Coalition Sends Letter to Congress

Compellingly, the MPC is urging Congress to investigate the Visa-MasterCard duopoly. In their view, the two processors’ dominance is stifling competition; harming business owners and consumers; and contributing to inflation.

“The two giant card networks and their partner mega-banks routinely use their market power to stifle competition and charge merchants the highest swipe fees in the industrialized world,” reads the MPC’s letter to Congress.

Further, the letter states, “It is difficult to imagine any other market in the U.S. economy in which two entities set prices for thousands of businesses that should be competitors. That lack of competition or downward pricing pressure has resulted in out-of-control swipe fees and increases inflation throughout the economy.”

The MPC is urging Congress to act quickly and effectively: “It is crucial for Congress to act swiftly and implement real reforms to bring true competition, transparency and equity to the U.S. payments market.”

National Restaurant Association Supports the Bill

Interestingly, the National Restaurant Association says they’re working with the MPC.

The NRA is also working with other organizations to drum up support for the the Credit Card Competition Act of 2022.

You can read about their support for the bill on their website. Additionally, you can tell Congress to pass the bill here. As it stands currently, no action beyond the bill’s introduction to the Senate on July 28 has taken place.

Image: Pixabay

Jack o' lantern and smoke
by David Klemt David Klemt No Comments

Pumpkin Spice Season Descends Upon Us

Pumpkin Spice Season Descends Upon Us

by David Klemt

Jack o' lantern and smoke

Once again, the unstoppable march of the spooky season is upon us, bringing with it a frightening assortment of pumpkin spice items and expectations.

In the blink of an eye, hordes will descend on your restaurant or bar. “Pumpkin spiiiiiice,” they’ll croak.

Okay, so that’s overly dramatic. For the most part, pumpkin spice season is anything but scary. And really, very few people will transform into singularly focused pumpkin spice zombies.

However, fall is nearly here. So, you do need to finalize your fall/autumn menu. Beginning in September, that really does mean considering offering at least one pumpkin spice LTO item.

Interestingly, though, pumpkin spice may not deserve its perception as the flavor of fall. According to Datassential, there are ten flavors that index high enough to give pumpkin spice a challenge for the fall throne.

What are they? Well, it just so happens that Datassential has those answers, along with a bit of useful advice.

Lord of the LTO

Recently, Datassential released “Food Industry Trend Report: 2022 Pumpkin Spice Season.” As the research firm points out, pumpkin spice seems to be encroaching on summer more each year.

How far away are we, I wonder, from pumpkin spice claiming summer for itself? Will we be subjected to pumpkin spice dry rubs at summer barbecues? Is some intrepid operator going to create a pumpkin spice lemonade?

Those terrifying questons aside, pumpkin spice season coming earlier means more opportunities to benefit from LTOs. Just as it seems that pumpkin spice is descending upon us earlier and earlier, it also seems to dominate the LTO space.

In fact, per Datassential research, major chains executed 174 pumpkin spice LTOs. Now, that’s still with a five-percent drop in menuing for pumpkin space over the past 12 months. Further, that number doesn’t include small, regional chains and independents who also launched pumpkin spice LTOs.

Of course, there are also other fall flavors that deserve a place on operators’ menus. And they’re perfectly cromulent as LTO drivers.

Fall Flavor Favorites

To inspire operators to create LTOs that entice consumers this fall, Datassential has identitied ten flavors on which to focus. Helpfully, they separate them into two main categories.

Top five sweet fall flavors:

  • Vietnamese cinnamon
  • Spicy ginger
  • Allspice
  • Eggnog
  • Pumpkin pie

Top five savory flavors:

  • Coconut milk
  • “Oktoberfest”
  • Mustard cream
  • Turkey gravy
  • Cranberry sauce

Personally, I can see operators and their teams needing to get creative to leverage mustard cream and turkey gravy. Interestingly, Datassential suggests a few flavors not on either list above.

According to their report, Datassential expects apple and blood orange to be popular for LTOs this year. According to the firm, apple was popular last year. When it comes to blood orange, Datassential says 38 percent of consumers like or love the flavor.

Whichever flavors you choose, Datassential has the following advice, which we co-sign: Ensure your LTOs are fresh; make sure they’re easy and quick to make; and don’t discount them. In fact, you should create premium LTOs that come with a premium price.

Image: Colton Sturgeon on Unsplash

Reserved seats at a bar
by David Klemt David Klemt No Comments

Date Night Desires and Dealbreakers

Date Night Desires and Dealbreakers

by David Klemt

Reserved seats at a bar

Focusing on date night, guest experience and retention tech platform SevenRooms is sharing their latest data-driven report.

Their “Date Night Diner Report” is another successful collaboration with YouGov. Previous reports from this partnership include:

One of the reasons we at KRG Hospitality appreciate and recommend SevenRooms is their dedication to data. The platform’s commitment to sharing the data they collect to the benefit of operators is impressive.

“A resurgence of the American date night is here, and these date night diners are flipping the script on what that experience should look and feel like,” says Allison Page, co-founder and chief product officer at SevenRooms.

So, operators who want to succeed with date night should review this new report. In fact, all operators would be wise to read this report. After all, it addresses reservations, waitlists, walk-ins, and much more.

Released today, this brand-new report can be downloaded here. Read the press release here.

Date Night Details

A lot has changed over the past two-plus years. What hasn’t changed are the two most popular date nights in the US: Friday and Saturday.

Both Friday and Saturday night are preferred by 26 percent of the 763 survey respondents who go on dates. In total, SevenRooms and YouGov surveyed 1,153 individuals.

Generally speaking, these dates are return visits. People who go on dates tend to make reservations at restaurants they’ve dined at previously.

However, 46 percent of such guests are open to reserving a table at a restaurant they haven’t visited before. And speaking of those tables reservations, 53 percent are for two people.

Looking at two major populations, tables for two are the most popular reservations. In New York, they account for 50 percent of reservations. That number increases to 56 percent in Los Angeles.

Interestingly, however, is this bit of date: 53 percent of Americans don’t make reservations for date night. Rather, they’re walk-in guests, meaning they’ll likely become waitlist guests.

Date Night Desires

So, now operators know that the majority of today’s date-night reservations are for two. That doesn’t mean setting aside two-tops and side-by-side seats at the bar is enough for success.

No, there are also guest expectations to consider. SevenRooms identifies the following as the top date-night desires:

  1. A complimentary cocktail or dessert. (33 percent)
  2. Ability to earn extra rewards (24 percent), highlighting the value of loyalty programs.
  3. Incentives that encourage repeat date-night visits. (23 percent)

Furthermore, personalization continues to be a key factor in the dining decision. One-third of guests consider the ability to personalize their dining experience more important than factors such as menu variety or receiving their order quickly.

Date Night Dealbreakers

Of course, if there are desires there are also dealbreakers.

According to SevenRooms, the following are the dealbreakers operators must avoid:

  1. People on a date receiving their meals at different times. In this case, more than ten to 15 minutes apart. (45 percent)
  2. The restaurant being so loud the guests on their date can’t hold a conversation. (43 percent)
  3. A restaurant not having the menu items the guests were looking forward to ordering. (31 percent)
  4. Being sat too close to another table. (31 percent)
  5. Sitting next to a table speaking “too loudly.” (26 percent)
  6. The restaurant being so crowded that a guest can’t find their date. (24 percent)

How important is it to avoid these dealbreakers? Well, the survey respondents say they won’t return to a restaurant if they experience any of them.

To read the full report, click here. And to learn more about SevenRooms, listen to Bar Hacks episode 24, featuring SevenRooms CEO Joel Montaniel.

Image: Dmitri Nesteruk on Unsplash

Guests sitting at the bar inside a restaurant
by David Klemt David Klemt No Comments

Datassential’s State of the Operator 2022

Datassential’s State of the Operator 2022

by David Klemt

Guests sitting at the bar inside a restaurant

The latest addition to the Datassential FoodBytes research series shares insights into the top three challenges most—if not all—operators are facing.

Now, some of what the report reveals paints a bleak picture. Inflation, the labor shortage, and supply chain issues persist even past the midway point of 2022.

However, operators are a tenacious and innovative group of business owners. Of course, that tenacity seems to manifest in people thinking this industry can weather any storm. That perception can come at operators’ detriment. Exhibit A: The Inflation Reduction Act of 2022 not including replenishing of the RRF. But, I digress.

“The State of the Operator & the Road Ahead,” which you can download here, is helpful and informative. As you may be aware, we’re fans of Datassential and their FoodBytes reports. In fact, you can find our synopses of FoodBytes reports here and here.

Below are some key points that operators should be aware for consideration. I strongly urge you to download this free report today.

Operator Outlook

First, let’s take a look at traffic. As Datassential points out, some hospitality business segments are performing better than others currently.

In large part, this is due to two factors: People working from home, and people returning to travel. So, operators who rely heavily on commuters and in-person workers are struggling. On the other hand, operators inside or around hotels are, per Datassential, performing the strongest at the moment.

Interestingly, though, nearly half of operators (47 percent) are seeing an increase in traffic in comparison to pre-Covid levels. Fourteen percent of operators are reporting no change in traffic. Unfortunately, traffic is lower for 39 percent of operators.

Next, sales. In comparison to pre-Covid times, more than half (51 percent) of operators report an increase. Again, 14 percent of operators are experiencing no change. But 35 percent of operators are experiencing a decrease in sales.

Finally, profit margins. Half of operators may be seeing increases in traffic in sales, but profit margins are taking a hit. On average, the industry’s profit margin is now hovering at 13 percent. That’s an eight-percent drop in comparison to pre-Covid levels.

Segment Performance

The findings regarding profit margins are likely to be the most alarming to operators. Historically, our industry has operated on razor-thin margins for decades. Dropping from an average of 21 percent to 13 is concerning.

However, context is important. The segments seeing the lowest profit margins in 2022 are: Business & Industry (B&I), Healthcare, and Colleges & Universities (C&U). Again, remote work (and learning) are largely responsible for those particular segments watching their profit margins tumble.

The strongest performers are: Quick-Service Restaurants (QSR) at 17 percent; Fast Casual at 15 percent); and Midscale, Casual Dining, and Fine Dining, each at 13 percent. Lodging is just below the current average at 12 percent.

Operator Adaptation

Inflation, rising food costs, supply chain issues, labor shortages… Operators are finding ways to cope, and in some situation, thrive.

Unsurprisingly, the vast majority of operators are increasing menu prices. In the past 12 months, 77 percent of operators have raised menu prices at least once.

These increases range from one percent a staggering 30 percent. However, the majority have kept these increases to one to ten percent. Most (31 percent) have implemented increases of no more than five percent. Just one percent of operators boosted prices between 25 to 30 percent.

Of course, raising prices isn’t the only strategy operators have at their disposal. Forty percent of operators are streamlining their menu, reducing the sizes of their menus. However, it’s wise for operators to review their menus at least every three months to eliminate poor performers.

Other strategies include focusing on value for guests (27 percent); utilizing LTOs and launching new menu items (26 percent); eliminating a specific daypart or portion of the menu (25 percent); and making portion sizes small, or “shrinkflation” (18 percent).

There’s much more revealed in Datassential’s latest FoodBytes report. Download your copy today.

Image: Luca Bravo on Unsplash

United States Capitol Building and Capitol Grounds
by David Klemt David Klemt No Comments

Members of Congress Send Letter to SBA

Members of Congress Send Letter to SBA Regarding $180 Million

by David Klemt

United States Capitol Building and Capitol Grounds

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

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

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

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

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

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

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

Key Segments of the Letter

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

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

Image: Francine Sreca from Pixabay

Neon beer mug sign
by David Klemt David Klemt No Comments

5 Self-serve Beverage Brands to Know

5 Self-serve Beverage Brands to Know

by David Klemt

Neon beer mug sign

If you’re an operator who wants to leverage the popularity of self-serve beverages, these are the brands you should consider.

There are several reasons to invest in self-serve beverage solutions:

  • Reducing costs
  • Reduction in waste
  • Guest convenience
  • Guest experience
  • System customization
  • Real-time system management and reports
  • Security

Truthfully, had I been told ten years ago that guests would want to serve themselves beer, wine, and other drinks, I would have raised an eyebrow. It’s possible, sure, but I would’ve been skeptical.

Well, it turns out that I would’ve been wrong. Indeed, today’s guest seems to enjoy pouring their own drinks from self-serve systems.

From convenience to control over their experience, these platforms are proving popular with consumers. An appealing factor appears to be the ability to sample a range of beverages to discover new favorites. And, of course, they can do so without having to purchase full drinks or asking a bartender or server for a sample.

So, below are some of the brands in the self-serve beverage world that operators need to know and consider.

Operator Benefits

In terms of P&L, your bottom line will thank you for embracing self-serve solutions.

First, the popularity of these systems increases sales. Guests can sample an array of drinks easily, choose a favorite or two, and serve themselves at their convenience. Additionally, guests tend to view self-serve systems in a positive light due to perceived value.

Second, an impressive self-serve beverage wall can be a sight to behold. There are venues with 100 self-serve taps and screens, which is an impressive sight. There are also all manner of designs not dependent on a wall. One great example is the rotating self-serve beer system at the Famous Foods Center Bar inside Resort World Las Vegas.

In other words, self-serve beverage systems help concepts stand out among competitors.

Third, self-serve systems allow operators to streamline operations and reduce costs. For example, labor costs can be reduced, as can waste.

And fourth, these solutions can lead to improvements in the guest experience. Not having to wait in line and being able to engage more with front-of-house staff aids in guest perception.

iPourIt

According to the brand itself, iPourIt installed the world’s very first beer wall. Since then, the platform has worked tirelessly to improve their solutions.

One way they’ve improved involves the security and usability of their system. As you’ll see with most self-serve brands that pour alcohol, guests are locked out of these systems without RFID access.

IPourIt offers several types of RFID solutions, from bracelets to fobs. Of course, other systems use similar tech. However, iPourIt prides themselves in offering touch-free RFID access and eschewing the need to leave cards in slots when pouring.

Another benefit is that as long as the beverage isn’t meant to be poured hot or doesn’t have pulp/sediment, iPourIt can handle it.

PourMyBeer

This company is iPourIt’s main rival. When you review how they can improve an operators’s bottom line, it’s not hard to see why.

PourMyBeer claims some impressive stats:

  • 45 percent sales increase
  • 50 percent increase in profits
  • 20 percent reduction to labor costs
  • Less than three percent waste

Like other systems, PourMyBeer can help operators leverage wall space. In addition, a single PourMyBeer screen can control four taps, so a wall doesn’t haven’t to be overloaded with screens.

Impressively, this platform also boasts the most POS integrations among the self-serve systems. Obviously, this is beneficial to the vast array of operators.

Table Tap

For operators looking for both a pioneer in the self-serve space, Table Tap may be the perfect partner. In particular, the use of “underage cards” by underage guests to access non-alcohol drinks is a nice feature. So, children up to early college-age students can get in on the fun.

Standing out from other platforms, Table Tap offers wall systems and table-mounted systems. Truly, offering a self-serve wall and a number of tables with the same tech is impressive.

In fact, if I were to install both solutions I would consider the tables a self-service take on VIP seating. And, I’d charge accordingly. Just something operators may want to consider.

Another cool feature relates to Table Tap’s software. While not the most mind-blowing functionality, guests can control an operator’s sound system via the TableTab ordering platform. Better yet, if an operator charges fees to select songs on their jukebox, TabelTab adds them to guest tabs.

To learn more about Table Tap, give episode 22 of Bar Hacks a listen.

Drink Command

“We do everything self pour, and more,” proclaims the Drink Command website.

Is an operator looking for a killer self-pour wall? Done. Table-mounted taps? Check. What about a self-serve tower, self-serve mobile kegerator, or a heavy-duty, mobile, self-serve counter? Drink Command has all three.

In other words, Drink Command makes it easy for operators to get creative and implement a range of self-pour solutions. Additionally, with mobile solutions, operators who want to expand into catering, pop-ups, and special events can do so easily.

For a list of other benefits—including foam-free beer pours, advertising interstitials, and consumption limits—click here.

Napa Technology

Makers of the TapStation, Napa Technology promises a boost to the guest experience. In part, this is because guests don’t have to wait in long lines at the bar.

Additionally, as stated prior, today’s guest enjoys using self-serve beverage systems.

Unlike other platforms, the Napa Technology TapStation doesn’t rely on wall installations. Instead, TapStation dispensers are available in two- and four-keg systems. These stations can be placed anywhere on the floor rather than a wall.

The TapStation can serve beer, wine, kombucha, and cold-brew coffee, ensuring it’s as versatile as the systems above.

Image: Brad on Unsplash

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