Hotel news

Fanned out hundred dollar bills
by David Klemt David Klemt No Comments

So, What’s Up with that $180 Million?

So, What’s Up with that $180 Million?

by David Klemt

Fanned out hundred dollar bills

It’s not much in comparison to the $40 billion we need to replenish the Restaurant Revitalization Fund but $180 million is still significant.

According to a June 14 report, the Small Business Administration is sitting on $180 million in RRF funds. This information came to light due to a Government Accountability Office (GAO) investigation.

Unfortunately but unsurprisingly, the funds likely won’t reach operators for a while. Why is that? Well, the SBA is working with the Justice Department to “formulate a plan on how to distribute” the money.

As we know, bureaucracy tends to move at a glacial pace. Additionally, $180 million is nowhere close to the roughly $42 billion it would take to fund RRF applicants who have not received grants.

Where did this Money come From?

We know that $24 million is from funds set aside by the SBA for litigation. However, according to the National Restaurant Association, the American Rescue Plan Act of 2021 didn’t expressly include such a set aside.

Interestingly, the NRA is calling for the SBA to disperse the litigation set aside to RRF applicants. This is due to their interpretation of “the spirit of the law” and unobligated funds.

Now, on to the biggest chunk of the tens of millions of dollars in unawarded, unobligated RRF money. Where, exactly, are these funds from?

Well, it’s a little murky at the moment. Per the GAO, awards returned by either recipients or their financial instutions amount to $56 million. The rest, according to the GAO, comes from “realized or anticipated recoveries,” per their report.

However, some sources report that $156 million was clawed back by the SBA and that the $24 million set aside make up the $180 million.

So, Who gets the Money?

In short, we don’t know yet. In fact, we don’t even know if RRF applicants will have to apply again for a piece of the $180 million.

Additionally, we don’t know if applicants who received an approval for an RRF grant but didn’t receive the award will be processed first.

What we do know is that if every dollar of this “leftover” $180 million is distributed to RRF applicants, a mere 0.44 percent would receive a grant.

As Nation’s Restaurant News reports, 150,166 RRF applicants were in fact approved for a grant but never received one. It would take over $41 billion to fund all 150,000-plus applicants.

When the Justice Department and SBA finalize a plan, we’ll let you know.

Image: John Guccione on Pexels

United States Capitol Building through trees
by David Klemt David Klemt No Comments

Congress Fails Us Once More

Congress Fails Us Once More

by David Klemt

United States Capitol Building through trees

A “compromise” and “far from perfect,” the Inflation Reduction Act of 2022 is yet another bill that could include the RRF but fails to do so.

Not content to deliver just the gut punches our industry has already endured, Congress is leaving us out. Again.

A bill that targets inflation in the US should, logically, include replenishment of the Restaurant Revitalization Fund. However, RRF replenishing isn’t among Inflation Reduction Act compromises.

By the way, that isn’t my assessment. It’s President Joe Biden’s summary of the bill’s passage in the Senate: “This bill is far from perfect. It’s a compromise.”

To clarify, this compromise is a $430 billion spending bill that doesn’t include $40 billion to replenish the RRF. That’s interesting, considering Democrats claim the bill will not only generate enough revenue to pay for itself, they say it will generate another $300 billion throughout the next decade.

Restaurants in the US are projected to generate nearly $900 billion in sales this year. Apparently, however, that’s not enough for our politicians and lawmakers to consider us important to the economy.

Instead, those who enjoy near-inscrutable power and are in the position to stop another bout of restaurant and bar closures have chosen not to help. Our industry, which employs millions upon millions of hard-working Americans is once again on the outside looking in.

The Road to Nowhere

In a word, the road to RRF replenishment is exhausting. One Instagram user commented as such on the Independent Restaurant Coalition‘s post about us being left out of a massive spending bill yet again.

Three months ago, the US Senate killed RRF replenishment when they voted against even debating the Small Business COVID Relief Act of 2022.

Midway through June I reported that Sean Kennedy, executive vice president of public affairs for the National Restaurant Association, posited that the RRF could be replenished via a reconciliation bill.

Addressing the possibility, Kennedy made clear it was a longshot. He was correct.

Indeed, the Inflation Reduction Act was passed by the US Senate via reconciliation bill. A simple majority consisting of all 50 Democrat senators and Vice President Kamala Harris sends the bill to the House.

Compellingly, the nonpartisan Congressional Budget Office’s analysis of the Inflation Reduction Act indicates the bill’s name is a misnomer. According to the CBO, the bill will either have zero or nearly-zero impact on inflation this year or in 2023. A group of 230 economists warn the bill may increase inflation.

The bill is expected to pass the House in its current form and be signed by President Biden by the end of this week.

Response from the IRC

Immediately after news broke that the Inflation Reduction Act of 2022 passed the Senate but failed to include RRF replenishment, the IRC’s Erika Palomar responded.

The executive director of the IRC said:

“For nearly three years, independently owned restaurants and bars have weathered multiple COVID-19 surges, government-mandated closures, consumer hesitancy, rising prices and ongoing restrictions, while fighting to keep their doors open and staff employed. Restaurants and bars are the heartbeat of every community, and we are incredibly disappointed to not be included in the reconciliation vote this weekend. 177,300 small businesses have been patiently waiting for relief and their needs are being ignored, again.

“Thousands of restaurants and bars are at risk of closing permanently as a result of continued Congressional inaction on the replenishment of the Restaurant Revitalization Fund (RRF). The failure of Congress and the White House to act swiftly is impacting neighborhoods in every state across the country. Congress has failed these businesses, but the Independent Restaurant Coalition is not giving up the fight in any way possible to support independent restaurants.”

Further Disappointment

Over the past 15 months (longer if we really look back), our politicians and lawmakers have been consistent about one thing. They have continually failed to recognize restaurants and bars for what they are: cornerstones of their communities.

Of course, they’ll happily use our businesses for political theater and their fundraisers. But giving us more than lipservice? Not on the agenda.

Image: Paula Nardini on Pexels

Maximalist interior bar or restaurant design
by David Klemt David Klemt No Comments

Datassential Identifies Top Design Trends

Datassential Identifies Top Design Trends

by David Klemt

Maximalist interior bar or restaurant design

For their latest FoodBytes research topic, Datassential tackles some of the top restaurant design trends.

Click here to download Datassential’s “Foodbytes: Restaurant Design Trends” report. If you haven’t already, you’ll need to sign up for FoodBytes reports.

As the title states, this Datassential resource addresses the state of restaurant design. Now, we recommend reading the report for yourself but below you’ll find the points that really stand out to us.

If you’re among the 22 percent of operators that Datassential says are either considering a dining room redesign or have completed one, this report is particularly relevant to you.

Back-0f-house Design

Unsurprisingly, most people envision the interior dining area when considering restaurant design. However, as Lauren Charbonneau of Reitano Design Group says in Datassential’s latest FoodBytes, “Restaurants are living spaces that need to be agile.”

That means considering the entire space, not just the front of house. There’s also this stat from Datassential: 64 percent of operators think shrinking their footprint would be detrimental. If that’s the case, making the BoH smaller rather than the front may be the way forward.

So, let’s take a look at what Charbonneau identifies as BoH design trends to consider.

Clearly, it’s crucial operators consider their back-of-house teams. Providing a better workplace experience and improving efficiency can be done through design. Per Charbonneau, operators can use clever design and equipment choices to reduce steps, movement, labor, footprint, and costs.

Additionally, sustainability is not only crucial to responsible operation, being sustainable can reduce costs. Selecting Energy Star, Water Sense, and multi-functional equipment can make tasks easier for BoH teams, make a business more sustainable, and, again, drive down costs.

Maximalist Design

Finally, it seems, the minimalist design trend is losing its stranglehold on restaurant design. Of course, if that approach and design language works for a particular concept, it works.

However, maximalism is growing in popularity. For this type of design, think lots of color and bold patterns. Then, think about using multiple patterns and textures, including on the floors.

So, wallpaper, artwork, plush seating, loud tiles… Per Datassential, maximalism appeals to younger guests. In part, this is because these spaces can offer so many Instagrammable moments.

Monochrome Design

Okay, before we begin, “monochrome” doesn’t only mean a black-and-white palette. While that can work very well depending on the concept, monochrome also means using different tones of a single color.

Of course, there are multiple ways to approach this design trend. For example, if one does want to select a black-and-white scheme, Matte Black Coffee in Los Angeles is compelling.

Not only is the design monochrome, guests feel as though they’re inside a two-dimensional image. Per Datassential, this type of design is growing in popularity across the US specifically.

In terms of colorful monochrome, a great example is NYC’s Pietro Nolita. Not only have they chosen pink for their palette, it’s a core element of their branding: Pink AF.

Yet another way to approach this trend is for operators to use varying tones of particular colors to delineate different spaces. So, the dining room may be tones of pink while the bar is green and a private dining room is blue.

Nostalgic Design

As we’re all well aware, the pandemic derailed people’s plans. In particular, people hit the pause or cancel button on travel and vacations. Now, people appear to restarting their travel plans and getting back out there.

However, we’re also dealing with inflation. So, many people are holding off on spending money on travel. This is where restaurant design comes into play.

According to Datassential, “nostalgic escape” is a trend to watch moving forward. While very specific, this trend combines a dive into the past and capturing vacation vibes.

Per their FoodBytes report, Datassential identifies the following elements as key to this design approach:

  • Soft shades of colors. In particular, pink.
  • Tropical designs.
  • Fifties, Eighties, and Nineties design elements.

One concept that leverages this trend and did so before the pandemic is the Hampton Social. Currently, there are eight locations and two more are on the way.

Of course, it’s imperative that operators commit only to design language that’s authentic to their concepts. Pursuing a trend simply to pursue it is a clear path to disaster. That said, these design trends have massive appeal and can work for many operators and their brands.

Image: Davide Castaldo on Unsplash

The Bean a.k.a. Cloud Gate in Chicago
by David Klemt David Klemt No Comments

Is Your Business in a Top Time Out City?

Is Your Business in a Top Time Out City?

by David Klemt

The Bean aka Cloud Gate in Chicago

Hot off the presses, Time Out is now revealing the results of their Time Out Index 2022, an annual list identifying the world’s top cities.

The global publication, founded in the late 1960s, surveyed 20,000 “city dwellers.” Time Out focuses on cities’ restaurant, bar, nightlife, entertainment, and art scenes.

For 2020 and 2021, Time Out put emphasis on the pandemic and how cities maintained resiliency and kept communities together. In 2022, priority is given to flourishing nightlife, dining, and drinking, along with culture.

Additionally, Time Out gives weight to a city’s sustainability, safety, walkability, and affordability. To learn more about how Time Out analyzes data, click here.

Compelling Rankings

Below, you’ll find Time Out’s ranking of the best 53 cities in the world for 2022. I’ve broken the list into sections: 53 to 11, and ten to number one.

Interestingly, the 20,000 survey respondents note the dining, drinking, and nightlife of the top five cities. In fact, the nightlife scene of number three is “the world’s best.”

And city number two? Survey takers think it’s the most fun—”funnest,” according to Time Out—in the world.

Now, I know our audience is largely American and Canadian, so I’ll get to how both rank. Six cities—the usual suspects, basically—in the US are on the list. Only one American city is in the top ten, and it’s likely not the one you think. As for Canada, one city claims the 27 spot, another is number nine.

You’ll find the Canadian and American cities in bold below. Champing at the bit to see the results? Scroll down!

Time Out Cities 53 to 11

  1. Doha, Qatar
  2. Hong Kong
  3. Bangkok, Thailand
  4. Istanbul, Turkey
  5. Johannesburg, South Africa
  6. Rio de Janeiro, Brazil
  7. Auckland, New Zealand
  8. Sydney, Australia
  9. Abu Dhabi, United Arab Emirates
  10. Singapore
  11. Accra, Ghana
  12. Los Angeles, California, USA
  13. Rome, Italy
  14. Dubai, United Arab Emirates
  15. Barcelona, Spain
  16. Miami, Florida, USA
  17. São Paulo, Brazil
  18. Dublin, Ireland
  19. Athens, Greece
  20. Manila, Philippines
  21. Kuala Lumpur, Malaysia
  22. Paris, France
  23. Tel Aviv, Israel
  24. Mexico City, Mexico
  25. Boston, Massachusetts, USA
  26. Lisbon, Portugal
  27. Toronto, Ontario, Canada
  28. Delhi, India
  29. San Francisco, California, USA
  30. Tokyo, Japan
  31. Stockholm, Sweden
  32. Birmingham, England
  33. Buenos Aires, Argentina
  34. New York, New York, USA
  35. Lyon, France
  36. Porto, Portugal
  37. London, England
  38. Taipei, Taiwan
  39. Melbourne, Victoria, Australia
  40. Mumbai, India
  41. Manchester, England
  42. Madrid, Spain
  43. Cape Town, South Africa

The Top Ten Time Out Cities

  1. Copenhagen, Denmark
  2. Montréal, Québec, Canada
  3. Berlin, Germany
  4. Marrakech, Morocco
  5. Prague, Czech Republic
  6. Amsterdam, Netherlands
  7. Glasgow, Scotland
  8. Medellín, Colombia
  9. Chicago, Illinois, USA
  10. Edinburgh, Scotland

Congratulations to the top 53 cities in the world! We expect big things from their dining, drinking, and nightlife moving forward.

Image: Christopher Alvarenga on Unsplash

Barbecue food plate on wooden table
by David Klemt David Klemt No Comments

What’s Up with Meat, Poultry and Seafood?

What’s Up with Meat, Poultry and Seafood?

by David Klemt

Barbecue food plate on wooden table

We know how plant proteins are performing with consumers but what do we know about how meat, poultry, and seafood are doing?

Well, because of a recent report from Datassential, we know many consumers are “meat-limiters.” And research from the World Resources Institute shows that plant-based performance is nuanced.

Interestingly, the performance of animal proteins on-premise appears to be following a beverage trend: Moderation. According to Datassential, more consumers are reducing their consumption of meat and poultry than increasing it in comparison with 2021.

So, meat-limiters may be indicative of the future of meat consumption.

Consumer Shifts

As the name implies, meat-limiters are limiting or otherwise reducing their consumption of animal proteins. Importantly, it doesn’t appear that a significant percentage of consumers are eliminating animal proteins from their diets.

Rather, many people are simply increasing the amount of plant-based items they’re eating. However, that increase is more aspirational than real in some cases.

Per Datassential’s survey of 1,500 consumers in the US, just over 70 percent of people are meat eaters. In contrast, nearly 25 percent are “flexitarian.” Just two percent are vegan or pescatarian, and only three percent are vegetarian.

So, the vast majority of Americans are still consuming meat, poultry, and seafood. We just now have reason to believe that more consumers may be leaning toward a flexitarian diet.

A bit over a quarter of consumers consume meat every day. Still, many people aspire to eat more vegetables, fruits, and whole grains, per Datassential.

However, there are more pescatarians, vegans, and vegetarians among Gen Z than the overall population. According to Datassential, this could indicate a shift away from animal proteins in the future.

Meat Performance is Nuanced

Just like plant-based performance, meat performance is nuanced. There are many factors at play.

Shifts in what consumers value are driving changes to the performance of proteins. Health, sustainability, the climate, taste, and affordability have an effect on all proteins, animal and plant.

Undeniably, inflation and shaken consumer confidence are impacting protein performance. Everything, it seems, is more expensive at the moment. Generally speaking, animal proteins are pricier than plant-based items.

It makes sense, then, that some consumers are reducing their intake of animal proteins and filling that void with fruits, veggies, and legumes.

Of particular note are shifts in daily and weekly consumption of animal proteins in 2022. Meat consumption once or more per week—beef, lamb, pork, veal—is up three percent. However, there’s a ten-percent increase in consumers eating poultry once or more per week.

Interestingly, daily poultry consumption is down seven percent in comparison with 2021. Likewise, daily consumption of seafood is also down seven percent, and fewer people are consuming it less than once per week.

Plant-based is Down

Despite what some would think, meat-limiters don’t appear to be driving up plant proteins significantly.

In fact, according to Datassential, the daily consumption of plant-based proteins is down. Per the research firm, seitan, tempeh, and tofu are the experiencing the greatest drop in daily consumption.

The fact is that across generations, more consumers eat animal proteins on a daily basis than their plant-based counterparts. Gen Z, per Datassential, consumes more animal proteins on a daily basis than other generations.

So, how does it make sense that people are reducing their meat intake but plant-based isn’t seeing a sizable jump in consumption?

In part, the answer is the growing popularity of plant-forward dishes. These are items, like bowls, that offer a small amount of meat, poultry, seafood or dairy. The majority of these menu items consists of plants but are not free of animal proteins completely.

The path forward may indeed be a plant-forward menu. Of course, this is heavily reliant on a specific concept or brand. Still, it’s likely many restaurants can do well offering mixed dishes, those heavier on plant proteins than animal proteins.

Image: Peter Pham on Unsplash

Note: This article is based on information from Datassential’s “2022 Plant-Forward Opportunity” report. To access a number of free reports, sign up with Datassential today.

Fountains outside Bellagio Las Vegas
by David Klemt David Klemt No Comments

Hotels, Guest Data and Guest Expectations

Hotels, Guest Data and Guest Expectations: A Chat with SevenRooms

Fountains outside Bellagio Las Vegas

We sit down with Austen Asadorian, vice president of sales at SevenRooms, to chat about pent-up demand for travel.

People are eager to get back out there and hotels, of course, play a crucial role in their travel plans. However, we’re not engaging with the same guests we were pre-pandemic.

No, today’s guest demands more from the hotels and resorts they select. And a key to delivering on guest demands is collecting guest data.

But while operators know they’re supposed to be collecting guest data, there’s some uncertainty about what to actually do with it. Enter: SevenRooms.

More accurately, meet Austen Asadorian of SevenRooms. Not only can he address meeting guest demands through tech, he can address how to use guest data responsibly and effectively.

Hi Austen, thank you for taking the time to speak with us. Can you tell us a little about yourself and your role at SevenRooms?

Thanks, David! My name is Austen Asadorian and I’m the Vice President of Sales at SevenRooms. I first started my career in hospitality early in high school, getting a job at a local restaurant in New Jersey, learning everything from protein fabrication to catering and dealing with daily customers, even managing events. I continued working in hospitality through college, while going to the Culinary Institute of America for a degree in hospitality management, and ultimately, landed at Hillstone Restaurant Group where I ran back of house operations as well as the company’s Manager Training Program. Before joining SevenRooms, I worked as Peloton’s Director of Sales, leading their go-to-market strategy for retail growth and expansion from 2014-2017.

Today, I support SevenRooms’ global expansion efforts to accelerate our goal of being the best-in-class solution for hospitality operators around the world. Having previous experience in the hospitality industry, I joined SevenRooms because I was hyper aware of the pain points in the industry surrounding technology and the need for better guest management after having lived it day-to-day for several years. More importantly, I believe in SevenRooms’ vision and have a true passion for helping hospitality businesses, big and small, drive revenue, and create loyal guests for life.

Let’s talk hotels. What does the hotel industry look like two years after (or into) the Coronavirus pandemic?

When the pandemic struck, travel came to a complete halt and hotel occupancy in the US fell from 70% in March 2019 to less than 25% in March 2020—rooms were empty. Now, as the world is back to what we can consider a new “normal,” we’re seeing an extreme surge in travel and hotels are busier than ever.

However, what guests expect from hotels experience-wise has changed and they demand more. They’re making up for lost time and they want to make it count. Coming out of the pandemic, hotel operators are taking a harder look at their entire tech stack. It’s no longer optional to have a tech stack that is fully integrated from top to bottom across their operations—it’s a must-have—and technology providers are adapting to meet those needs. Additionally, operators have put a strong emphasis on the importance of ownership over their guest data. Both trends have positioned SevenRooms incredibly well within the hotel sector, as this has been our business philosophy from day one.

How can hotel operators and managers live up to these high expectations?

The simple answer is by taking advantage of technology solutions into their everyday practices and processes. These tech solutions can be anything from a QR code for mobile order and pay, allowing guests to order food and drink from anywhere on the property without ever needing a server to approach them, to an integrated customer relationship management (CRM) platform that speaks to and pulls data from their F&B CRM, easily sharing that information across teams at the hotel. For example, passing information along to a guest services team to ensure that in-room amenities don’t include nuts if a guest has a peanut allergy.

Operators and managers should also make sure they’re utilizing loyalty programs. According to a recent SevenRooms survey of American consumers, 44% say that loyalty programs play a part in their hotel choice and there are certain incentives that will bring them back.

For example, some want loyalty points to enjoy on property restaurants and bars, whereas others want a personal greeting when they check in, or a complimentary glass of champagne waiting for them when they get to their room.

Technology and loyalty programs both play into an exceptional experience and it’s important for operators to use both to create the total package.

You mentioned collecting guest data. Can you tell us a little bit more about why that is so important?

When we talk about data and hotels, we’re talking about using it to power a one-of-a-kind unique experience. We don’t mean taking or selling personal information, and that’s an important distinction.

The data we’re collecting for operators centers around a guest’s profile—who they are and what they like. This can be anything from their dietary preferences to their favorite table in the hotel restaurant’s dining room, to what dessert they order most often when they visit.

By having this data, operators can build a direct relationship with these guests and, in turn, build an incredible experience that keeps them coming back. For example, if a guest stays at a specific hotel on their vacation and takes full advantage of the pool cabanas, the data collected on those visits can then be used to retarget them with a special marketing promotion or offer to visit their local hotel property for a staycation, complete with a discount on a cabana day rental.

Creating these unique, personalized experiences not only increases revenue for operators, but also drives loyalty, as a loyal guest is more important than a one-time guest.

About Austen

Austen Asadorian is the Vice President of Sales at SevenRooms, where he is tasked with supporting SevenRooms’ global expansion efforts and accelerating the company’s goal of being the best-in-class solution for hospitality operators globally. Prior to joining SevenRooms, Austen was Peloton’s Director of Sales, leading the company’s go-to-market strategy for retail growth and expansion. He started his career at Hillstone Restaurant Group where he cut his teeth learning how to run efficient and profitable restaurants at scale. Austen was ultimately promoted into an executive role where he oversaw the company’s Manager in Training Program and Back of House Operations. Austen graduated from the Culinary Institute of America (CIA).

Image: Antonio Janeski

Plant-based food bowl
by David Klemt David Klemt No Comments

Meat-limiters Driving Change

Meat-limiters Driving Change

by David Klemt

Plant-based food bowl

You’re likely familiar with dietary terms like vegetarian, vegan, pescatarian, and even flexitarian, but what about meat-limiter?

As the name implies, a meat-limiter is a person actively choosing to reduce their meat intake. It’s also an umbrella term that includes vegan, vegetarian, pescatarian, or flexitarian diets.

Earlier this year, Datassential took a look at plant-based opportunities. Over the course of a week, 1,500 Americans ages 18 to 88 were surveyed online.

Datassential conducted their research with three partners:

  • The Culinary Institute of America
  • Food for Climate League
  • Menus of Change University Research Collaborative

The results are revealed within Datassential’s “2022 Plant-Forward Opportunity” report. To access a number of free reports, sign up with Datassential today.

Meat-limiter Guests

Just over a quarter of Americans—29 percent—are meat-limiters in some way. That number climbs to 36 percent for Gen Z, per this Datassential survey.

Of four major diets (vegetarian, vegan, pescatarian, flexitarian), vegetarian and vegan are the least common. The overall US population consists overwhelmingly of meat eaters (71 percent). Nearly a quarter, 22 percent, are flexitarian.

For Gen Z, those same numbers are 65 percent and 19 percent, respectively. Interestingly, Gen Z has more vegetarians and vegans than other generations.

But then there’s this: When it comes to the daily consumption of animal proteins, Gen Z is at the top. It’s Millennials who consume the most plant-based proteins on a daily basis.

Animal proteins are still at the top across generations. However, people are consciously reducing their meat intake and seeking plant-based alternatives.

What’s Driving Meat-limiters?

In comparison to 2021, Datassential hit on a compelling finding. A mere six percent of the US population was actively reducing meat intake last year.

That number has skyrocketed in 2022. This year, per Datassential, 21 percent of consumers can be considered meat-limiters.

Given the pandemic, it makes sense to assume this dietary change is due to personal health. However, climate change is a major driver.

Overall, 55 percent of consumers feel climate change is important. That number climbs to 71 percent for meat-limiters, 69 percent of students.

Half of consumers also feel that plant-based foods, in general, are better for the planet. Nearly half (47 percent) feel these foods are also more sustainable. Again, the number increases for meat-limiters and students (and Millennials, as well).

Interestingly, two-thirds of consumers feel traditional plant-based food items are healthier than new plant-based meat alternatives. However, a little over 60 percent of consumers find both plant-based food categories healthy.

Takeaway

Before proceeding, it’s important to recognize that a survey of just 1,500 people comes with a margin of error.

Still, the results are compelling and provide insight into today’s consumer. Among the top insights:

  • Consumers are trying more plant-based menu items.
  • Climate change and sustainability are driving consumer decisions.
  • More consumers are concerned with their health.

Per Datassential, one way to appeal to a wide range of guests is offering “mixed dishes.” These are menu items that combine animal and plant proteins. Another way forward is menuing plant-forward dishes that include a small amount of meat, poultry, fish, or dairy.

If we accept that only a tiny fraction of the US population is vegetarian or vegan, targeting flexitarians and daily meat eaters in this way makes sense.

Image: Yoav Aziz on Unsplash

Double cheeseburger on sesame bun
by David Klemt David Klemt No Comments

Datassential IDs LTO Keys

Datassential Identifies Limited-time-offer Keys

by David Klemt

Double cheeseburger on sesame bun

Food and beverage market research firm Datassential turns their attention to limited-time offers in one of their latest reports.

Part of the FoodBytes series of resources, “A Look at Limited-time Offers” is a free Datassential trend report. If you have yet to do so, sign up for Datassential FoodBytes reports.

There are several ways for savvy operators to drive traffic. Loyalty programs and subscriptions are two popular modern-day solutions.

However, the LTO is tried, true, and can boost traffic, engagement, loyalty, sales, and revenue.

Of course, there are different ways to execute LTOs. There’s the recurring, anticipation-driving item: McDonald’s McRib. Then there’s the seasonal offering: Starbucks Peppermint Mocha. And the return of a popular item eliminated years prior: Taco Bell Mexican Pizza and Wendy’s Spicy Chicken Nuggets.

Some LTOs have been going strong for years, others are leveraging a sense of nostalgia. In fact, some appear to be a direct response to Internet chatter.

Which LTO?

Per Datassential, 63 percent of LTOs most recently purchased by consumers were impulse decisions. And when the firm dives into LTOs in general, they find that one product stands above the others.

The top-performing LTO food item in terms of order frequency is the burger.

Now, does that mean you have to menu an LTO burger to succeed with this type of promotion? Of course not.

A successful LTO is one that’s authentic to your brand. And, clearly, it needs to be one that interests your guests. If you’ve been reading KRG Hospitality articles for a while, you know what I’m going to say next.

But for those who are new around here, I’m going to tell you to review your consumer data. What items are performing best? What flavors are resonating with your guests?

Now, look at the industry. What flavors and items are trending? How can you leverage them—in an authentic way—into an LTO?

If a burger may not work, will a different type of sandwich do the job? How about nuggets, breakfast items, a dessert, or a beverage?

Know your brand, know your guest, know what’s bringing the heat.

How Long?

Once you know what you’re offering, the next question should be obvious. How long are you going to make it available?

Every concept is different. What works for one may not work for another. However, analyzing what others do in terms of LTO duration and frequency can help inform you.

And as it turns out, Datassential’s latest FoodBytes report addresses “LTO cadence.”

The majority of operators—43 percent—run an LTO once every one to three months. Considering the popularity of seasonal LTOs, this frequency makes sense.

Interestingly, a quarter of operators offer an LTO more than once per month. Just about as many execute one every three to six months.

Far, far less common is running an LTO once every six to 12 months. In fact, this is the approach of just seven percent of operators. A mere two percent of operators run an LTO less than once every 12 months.

Again, there’s no “right” answer here. Some operations can succeed with multiple LTOs each month, some find success rarely offering one at all.

Takeaway

Operators know their brands best. They should know their guests equally as well, or at least strive to do so. As such, an operator should have an idea of what to offer in terms of LTO food or beverage items.

And, of course, operators should data-obsessive. That’s the only real way to have an idea of what LTOs will work, how often they should run, and how frequently one should be available.

But there’s more to know. Datassential also reveals challenges that deserve serious consideration before executing any LTO:

  • Do you have time to train staff on the new item?
  • Is your staff strong when it comes to upselling?
  • Will your guests complain when the new product is no longer available?
  • Do you have to source one or more ingredients for this item?
  • Is/Are the ingredient(s) necessary readily available?

The LTO is a proven marketing and promotion tool when done well. Challenging, yes, but worth the effort.

Image: amirali mirhashemian on Unsplash

Restaurant and bar with exterior windows open
by David Klemt David Klemt No Comments

What Politicians Get Wrong about Us

What Politicians Get Wrong about Our Industry

by David Klemt

Restaurant and bar with exterior windows open

It still stings that the 43 senators chose to vote against replenishing the Restaurant Revitalization Fund.

The fact that four senators didn’t vote at all on S.4008 is nearly as insulting and painful.

Now, while all the “nay” votes came from Republican senators, I’m not here to bash one party in particular. Four Republicans voted “yea,” as did two Independents.

Unfortunately, given how hostile Democrats and Republicans in Congress seem to be, it’s difficult to be objective. Right now, it appears that the RRF was left to die a slow death because many—not all, of course—Republicans in power don’t want their Democrat peers to “win” at anything.

To be used as political pawns and be left out in the cold… It’s a bitter pill to swallow.

Cornerstones

Too many politicians, it seems, view restaurants and bars as they would other types of businesses. Perhaps the perceived success of national and global brands paint the picture that independent venues and small chains don’t need any help.

More disappointingly, maybe politicians, from local lawmakers to state representatives, take our business’ role for granted.

Look at the history of restaurants and bars, of hospitality. Think about the rich history of hospitality in America alone, let alone globally.

Yes, independent restaurants and bars are small businesses. But like so many small businesses in so many towns across the country, they’re so much more.

Restaurants and bars are pillars, cornerstones of the communities they serve. These are businesses that welcome people in, treat them like family. They’re there for them as they move through their lives.

People who were seemingly at odds with another routinely found common ground over a bite and a sip. More often than not, that’s still the case.

Operators and their teams give back to their communities through food drives, quietly feeding those in need, and finding other ways to give back.

And they look out for their communities.

Lifesavers

Last week, the team at a cafe in the Bronx called the Chipper Truck helped rescue a woman from an alleged hostage situation.

Permitted by her assailant to place a food order via Grubub, the victim thought quickly and sent a life-saving note with her order:

“Please call the police… don’t make it obvious.”

A staff member read the note in the “additional instructions” section of the order and called one of the owners. Nobody at the Chipper Truck knew if the situation was real but they chose to err on the side of caution.

When the alleged assailant—who was arrested and charged with a list of serious offenses—opened the door for the Grubhub order, he was met with police officers.

A Facebook post from the cafe addressing the situation read, in part, “I’ve often heard of this happening but never thought it would happen to us. Thankfully we were open and able to help her.”

It’s terrifying that this happens enough that the cafe owners hear about it “often.” But it’s telling of the role restaurants and bars play in their communities that they’ve saved multiple lives.

This is to say nothing of the restaurants and bars that have put coded safety systems in place to help patrons who find themselves in danger.

No Such Thing as “Just” a Restaurant or Bar

There isn’t a restaurant or bar out there that’s “only” a restaurant or “only” a bar.

Every one is a source for food, for socializing, for an escape from the stresses of life. Restaurants and bars are committed to service and sacrifice.

They’re pillars of their communities, the cornerstones that play important roles in our everyday lives and the special moments as well.

Perhaps our politicians, local and otherwise, need to a reminder. Restaurants and bars play crucial roles in the lives of the people politicians are supposed to represent.

Too many politicians claim to support small businesses while their actions and votes prove otherwise. Talk, as we all know, is cheap.

Restaurants are not “just” restaurants. Bars are not “just” bars. We deserve better.

Image: Scott Webb on Unsplash

Door with number 50 address
by David Klemt David Klemt No Comments

2022 50 Best Bars: North America

2022 50 Best Bars: North America

by David Klemt

Door with number 50 address

Probably a speakeasy.

The World’s 50 Best Bars ranking for North America is official and the bars are, of course, extraordinary.

Unsurprisingly, much of the list consists of “household” names in our industry. Now, where some people may see a list of the “cool kids,” I see something different.

In a word, consistency. Sure, the more cynical among us roll their eyes at rankings and awards.

However, I see approaches to operations, service, menu and design innovation, and guest experiences to learn from and emulate.

Would I like to see bars in markets outside of the usual suspects on these lists? Absolutely. As so-called secondary and tertiary markets develop their scenes that may start to happen more often.

So, congratulations to this year’s 50 Best Bars in North America! Cheers!

Canada

This year, the second-largest country in the world claims eight of North America’s 50 best bars. One bar is in the top ten.

As Ontario’s capital and Canada’s most-populous city, it should come as no surprise that Toronto takes four spots. Bar Mordecai is number 47, Bar Raval is 41, number 38 is Mother, and Civil Liberties is tenth.

It’s a bit surprising to see just one bar from Vancouver—number 25, The Keefer Bar—but Montréal has two venues on the list. The Cloakroom Bar is number 45 and 29 is El Pequeño Bar.

Bar Kismet, in Halifax, Nova Scotia, is sitting in the 49th spot on the 2022 North American list.

America

Impressively, the US boasts 30 of North America’s 50 Best Bars, six of which are in the top ten. Intriguingly, ten of the bars on this list were ranked on the World’s 50 Best Bars last year.

As one would assume, New York City dominates the 2022 rankings. Eleven bars are on the list, with the number one spot going to Attaboy. Congratulations to Michael McIlroy and Sam Ross, their teams, and their partners. Katana Kitten is number four, and Dante earns the eighth spot on the list.

Moving to the south, two bars on the list are in Miami: Broken Shaker (32) and Sweet Liberty (14). Heading northwest, Kumiko in Chicago is in the top ten at number five.

On the other side of the country, Los Angeles claims three spots, one in the top ten. Genever holds number 50, Death & Co. is 34, and Thunderbolt is ninth. The Bay Area has two bars on the list. ABV in San Francisco is number 39 and Oakland’s Friends and Family is in the 33 spot.

Somewhat surprisingly, Las Vegas and New Orleans each have just one bar in the rankings. One of my personal favorites, Herbs & Rye, is number 28 on the list. Jewel of the South in NOLA is in the top half of the list, holding number 24.

In San Juan, Puerto Rico, the beloved La Factoría is twelfth on the list.

Mexico

Achieving 11 spots—three in the top ten—Mexico is crushing it this year. Remarkably but not surprisingly, the three bars in the top ten are all in Mexico City.

Baltra Bar earns number nine, and Handshake Speakeasy and Licorería Limantour are second and third, respectively. Overall, Mexico City boasts six bars on this list.

Two spots are in Oaxaca: Selva, which is number 22, and Sabina Sabe, number twenty.

Arca, number 37, is in Tulum. Number 21, El Gallo Altanero, is in Guadalajara. And Zapote Bar in Playa del Carmen almost breaks the top 10, coming in eleventh.

Cuba

The legendary El Floridita grabs Cuba’s only entry on the 2022 list.

Impressively, El Floridita can trace its opening to the early 1800s. Originally, the space was La Piña de Plata. About a century later, a bartender, Constantino “Constante” Ribalaigua Vert, became the owner and changed the name.

Oh, and he just so happens to be the inventor of the frozen Daiquiri. Along with its impressive history, El Floridita also has an awesome statue with its own seat at the bar. Ernest Hemingway is immortalized in bronze.

50 Best Bars: North America

Below, the full list in ascending order.

  1. Genever (Los Angeles, CA)
  2. Bar Kismet (Halifax, Nova Scotia)
  3. Teardrop Lounge (Portland, OR)
  4. Bar Mordecai (Toronto, Ontario)
  5. Julep (Houston, TX)
  6. Cloakroom Bar (Montréal, Québec)
  7. Bitter & Twisted (Phoenix, AZ)
  8. Clover Club in (New York, NY)
  9. Bar Leather Apron (Honolulu, HI)
  10. Bar Raval (Toronto, Ontario)
  11. El Floridita (Havana)
  12. ABV (San Francisco, CA)
  13. Mother (Toronto, Ontario)
  14. Arca (Tulum, Quintana Roo)
  15. Death & Co (Denver, CO)
  16. Mace (New York, NY)
  17. Death & Co (Los Angeles, CA)
  18. Friends and Family (Oakland, CA)
  19. Broken Shaker (Miami, FL)
  20. The Dead Rabbit (New York, NY)
  21. Employees Only (New York, NY)
  22. El Pequeño Bar (Montréal, Québec)
  23. Herbs & Rye (Las Vegas, NV)
  24. Overstory (New York, NY)
  25. Dear Irving (New York, NY)
  26. The Keefer Bar (Vancouver, British Columbia)
  27. Jewel of the South (New Orleans, LA)
  28. Amor y Amargo (New York, NY)
  29. Selva (Oaxaca de Juárez, Oaxaca)
  30. El Gallo Altanero (Guadalajara, Jalisco)
  31. Sabina Sabe (Oaxaca de Juárez, Oaxaca)
  32. Raised by Wolves (San Diego, CA)
  33. Service Bar (Washington, DC)
  34. Double Chicken Please (New York, NY)
  35. Hanky Panky (Ciudad de México)
  36. Café de Nadie (Ciudad de México)
  37. Sweet Liberty (Miami, FL)
  38. Kaito del Valle (Ciudad de México)
  39. La Factoría (San Juan)
  40. Zapote Bar (Playa del Carmen, Quintana Roo)
  41. Civil Liberties (Toronto, Ontario)
  42. Thunderbolt (Los Angeles, CA)
  43. Dante (New York, NY)
  44. Baltra Bar (Ciudad de México)
  45. Café La Trova (Miami, FL)
  46. Kumiko (Chicago, IL)
  47. Katana Kitten (New York, NY)
  48. Licorería Limantour (Ciudad de México)
  49. Handshake Speakeasy (Ciudad de México)
  50. Attaboy (New York, NY)

Image: Hello I’m Nik on Unsplash

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