Hotel Operations | KRG Hospitality

Daytime photo of the Toronto, Ontario, Canada, skyline

November 15, 2023by David Klemt David Klemt No Comments

Ontario Updates Employment Standards Act

Ontario Updates Employment Standards Act

by David Klemt

Yesterday, Ontario, Canada’s government tabled updates to the province’s Employment Standards Act meant largely to protect restaurant and hospitality workers.

These explicit protections are known as Bill 79, Working for Workers Four Act, 2023.

Interestingly and timely, the updates seem to be, at least in part, a direct response to technological developments.

For example, Bill 79 addresses digital payment apps and artificial intelligence. I’ll expand on that below.

These updates certainly appear to have been drawn up to protect restaurant workers specifically, and hospitality professionals overall.

An End to Unpaid Trial Shifts

One of the most significant updates addresses hours and pay.

It likely shouldn’t have to be said but, according to Ontario law, an employee must be paid for all the hours they work. This includes trial shifts.

Specifically, the new legislation expressly prohibits unpaid trial shifts.

Pooling Tips

Employers in Ontario are well within their rights to share in pooled tips. That is, if the employer is performing the same tasks as staff.

However, there’s now an update to this practice within the Employment Standards Act.

If any employer intends to share in a tip pool, they must make this clear and inform staff.

Speaking of Tips…

For the most part, digital payment platforms bring with them transaction fees. This includes fees for restaurant workers to get their tips.

“We’re seeing apps that are taking a cut every time…a worker accesses their tips, and that’s not acceptable,” says Piccini.

So, moving forward, employees who are paid tips via direct deposit will have more control. The updates to the Employment Standards Act now state that employees paid this way can choose where their tips will be deposited.

Deducting Wages

Per multiple studies, one in 20 diners has dined and dashed. Apparently, it has been common practice for some employers to deduct wages in response.

Personally, I think it’s ridiculous for any employers to pass a business loss on to their workers. That’s neither good leadership, ethical, or a healthy work culture. I’m not saying I’m surprised it happens; I’m disgusted that it still happens.

Now, the practice of penalizing employees monetarily for guests dining and dashing is prohibited specifically. Will that stop it from happening? Probably not, although perhaps it will happen much less moving forward.

This also includes language that makes it illegal to deduct pay from employees due to customer “gassing and dashing.” For anyone wondering, gas theft affected Ontario businesses to the tune of $3 million CAD in 2022.

Artificial Intelligence

Some employers, as many job hunters are aware, use artificial intelligence during the hiring process.

Now, these employers will have to disclose their use of AI in job listings. In theory, this update addresses privacy and data collection concerns.

Further, job listings will now have to include salary ranges. Also, employers are now prohibited from requiring work Canadian work experience in their job listings or on their application forms.

To review Bill 79 in its entirety, click here.

Image: mkdrone_ on Unsplash

A candy cane surrounded by red smoke in a studio

November 14, 2023by David Klemt David Klemt No Comments

Peppermint is the Latest Flavor Superstar

Peppermint is the Latest Flavor Superstar

by David Klemt

Just when you think you have a handle on seasonal flavors, along comes the latest and greatest demand from consumers: peppermint.

Perhaps it’s because pumpkin spice shows up earlier each year. Maybe it’s because that hit of frosty peppermint hits the nostalgia button.

It could be as simple as consumers thinking:

pumpkin is for fall; and
peppermint is for winter.

Regardless, it appears that people are turning their attention to peppermint.

Of course, that doesn’t mean that pumpkin and pumpkin spice are out of favor completely. A recent trip to a grocer with shelves devoid of pumpkin butter and other pumpkin spice flavors show me people are still snapping it up.

And no, it wasn’t a product shift; staff says those products are flying out the door after each restock.

Instead, I think people are just ready for the next thing. In this case, the next flavor thing. And that flavor, it seems, is peppermint.

Considering that pumpkin spice LTOs appeared in early August this year, it makes sense for many consumers to want something new. After all, they’ve had four months to indulge their pumpkin and pumpkin spice cravings. That’s a third of the year.

Peppermint on the Rise

When delving into F&B and hospitality trends I tend to look at Datassential and Technomic. Both are credible, reliable sources of information.

However, I’m turning to another source, Tastewise, to dive into pumpkin spice and peppermint. For the unfamiliar, Tastewise is an F&B insight platform that uses artificial intelligence to collect real-time consumer behavior data.

First up, pumpkin spice. According to Tastewise, the flavor is up nearly 75 percent in terms of social conversations in 2023. Additionally, four percent of restaurants in the US have pumpkin spice items on their menus. That may not sound like a lot, but that’s more than 33,000 restaurants.

Now, let’s look at peppermint. Per Tastewise, social conversations about this frosty flavor are up almost 22 percent this year. However, peppermint liqueur conversations are up just over 77 percent.

Interestingly, according to Tastewise, peppermint items are on almost eight percent of menus in the US. That’s more than 67,000 restaurants, over double the amount of pumpkin spice.

One note: peppermint is not the same as mint. While peppermint is trending (most likely due to seasonal shift), mint is down nearly 109 percent. So, not all mint flavors and items are equal. This seems particularly true at the moment.

Takeaway

Is everyone on social media, talking about food? No, of course not.

It’s important to note, though, Tastewise’s current market overview. At the time of publication, Tastewise is scanning:

8,151,698 people on social media;
57,220,294 social media posts;
937,070 restaurants;
136,278,759 dishes; and
5,878,416 recipes.

Operators can and should take industry insights with a grain of salt. Not every fad, trend or item works for every operator and concept.

However, it’s important to know what consumers are talking about and posting to social media. Being a part of some conversations can be a boon for an operator and their bottom line.

So, if introducing a peppermint LTO (or LTOs) will appeal to an operator’s guests—because they take the time to understand them and track their menu item sales—and works with their concept authentically, they should consider becoming a part of this conversation.

Image: Shutterstock. Disclaimer: This content was generated by an Artificial Intelligence (AI) system.

Golden cocktail in Champagne flute on bar top

November 10, 2023by David Klemt David Klemt No Comments

The Pinnacle Guide Launches

New Global Bar Recognition System, the Pinnacle Guide, Launches

by David Klemt

Today’s the day that the passionate minds behind London Cocktail Week launch “the Michelin Guide” for bars, open to venues across the globe.

Open to submissions as of today, the Pinnacle Guide is open to any bar in the world. Compellingly and refreshingly, the Guide’s system intends to maximize transparency and minimize subjectivity.

Further, the process begins with the self-nomination of a venue. Truly, this is open to any bar, anywhere.

Two of the team’s founders are recent Bar Hacks podcast guests. On episode 105, Hannah Sharman-Cox and Siobhan Payne explain the Pinnacle Guide ahead of its launch today. You can listen to their episode below.

Dan Dove, owner and operator of Global Bartending, completes the Pinnacle Guide’s founder trio. Speaking of trios, Global Bartending’s areas of expertise are strategy, talent, and events.

I’m likely not the only person who has wondered why the Michelin Guide has yet to recognize bars. Now, I’m grateful they haven’t done so.

That’s not a dig at the Michelin Guide. However, the organization’s expertise is restaurants, not bars. It’s far more appropriate—and more credible—that passionate people dedicated to and enamored with bars are launching this recognition system and platform.

The Process

So, what are you in for when you nominate your bar? The process is quite straightforward.

Simply speaking, the

Front of house
Drinks program(me)
Look and feel
Staff
Operations
Community

Once someone who self-nominates their bar completes and submits their application, the anonymous review part of the process begins.

As this step’s phrasing suggests, anonymous reviewers will visit the venue. These reviewers could be industry professionals. They may be passionate, educated consumers whose opinions are valued and trusted.

Either way, they’ll have been vetted, tested, and completed the Pinnacle Guide Reviewer Training Programme.

For even more information, click this link. You’ll find a series of the Pinnacle Guide Round Table Discussions recordings that dive deep into the system as well.

Interestingly, the founders of the Pinnacle Guide believe undergoing the self-nomination process may also help operators enhance or refine their operation:

“Beyond being a measure of excellence, this transparent and detailed approach is also designed to give venues pause for thought on where they may have room for improvement, with the ambition of elevating the industry by encouraging higher standards across the globe.”

Moreover, the Pinnacle Guide doesn’t pit operator against operator, team against team. Should a bar be recognized by the Guide, they’ll be awarded at least one PIN. A single PIN identifies a bar as Excellent. Two carries the Outstanding designation, and three means a venue is Exceptional.

Receiving a PIN doesn’t mean a bar has beaten out another venue to be recognized; that operation stands on its own as one of the best in the world.

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A post shared by The Pinnacle Guide (@thepinnacleguide)

Are You Ready?

Thousands of owners and operators—and the teams that bring their visions to life every day—deserve acknowledgement for meeting the demands this industry makes of them.

From empowering their teams and serving as the backbone of their communities to delivering world-class service and pairing unforgettable experiences with incredible, welcoming atmospheres, hospitality is chock-full of people whose daily contributions should be recognized.

So, to any operator anywhere in the world, if you believe your team has earned at least one Pinnacle Guide PIN, this is your day. However, carve out some time to truly sit with the application and consider your team and venue.

The Pinnacle Guide is a long time coming. Let’s give it the respect it deserves.

Image: Jakub Dziubak on Unsplash

Canada and the United States of America on a globe

November 6, 2023by David Klemt David Klemt No Comments

2023 DoorDash Ordering Trends

2023 DoorDash Ordering Trends: Canada & US

by David Klemt

After checking out this year’s annual Cravings Report we’re turning our attention to the 2023 DoorDash restaurant ordering trends reports.

Luckily, there are two reports available from DoorDash: one that focuses on Canada, and one for the US.

These two countries are, of course, KRG Hospitality’s primary markets. So, the data in these DoorDash reports is relevant and compelling for our current and future clients.

Perhaps unsurprisingly, Canadian and American DoorDash users are somewhat similar by a few metrics. However, where there are differences they’re fairly glaring.

For example, 78 percent of Canadian DoorDash survey respondents picked up a takeout order from a restaurant in the month prior to being surveyed. That number is 76 percent for American survey respondents.

Regarding in-person restaurant dining, 62 percent of respondents had done so the month prior. Among American survey respondents that number is 61 percent.

But when it comes to placing an order for delivery we see a notable difference. For Canada, 58 percent of survey respondents had ordered delivery. That number jumps to 77 percent among Americans.

This tells me a few (fairly obvious) things. Generally speaking, it appears consumers in Canada and America—according to DoorDash—prefer delivery and takeout to in-person dining. Going further, it seems that overall, Canadians prefer pickup or takeout to delivery. However, Americans seem to place delivery and pickup orders at nearly identical rates.

If it’s true that consumers favor delivery or takeout to in-person dining currently, there could be a couple of simple reasons. First, convenience.

Second, fees. It’s possible that today’s consumer perceives delivery fees are lower than in-person dining fees, unfortunately. If that’s the case, third-party delivery services can exploit this perception.

More Similar than Different

In comparing both DoorDash reports, I find that Canadian and American consumers who use DoorDash are rather similar.

Survey respondents in both countries indicate that Friday is the most popular day of the week to order food. Further, 6:00 PM is the most common local time to place orders in both countries.

And when it comes to the fastest-growing dayparts for order placement? In both Canada and the US it’s late-night and breakfast. Although, I most note that both dayparts are growing faster in Canada.

Nearly half of American respondents and a little over half of Canadian respondents indicate they want to try new restaurants and dishes.

Definitely not surprisingly, consumers in both countries primarily focus on menu selection and pricing when seeking a new restaurant to try. In fact, these numbers are identical for Canadians and Americans, at 55 percent and 51 percent, respectively.

Top Canadian Food Orders

When we look at the top items ordered via DoorDash, we don’t find anything out of the ordinary.

Burgers
Fries
Pizza
Salad
Sandwiches

Looks like standard fare and comfort foods to me. This tells me that operators who have these items on their menus need to ensure they’re of the highest quality to stand out from other restaurants and bars.

Top American Food Orders

Interestingly but not too surprisingly, the list below is quite similar to the list above.

French fries
Burgers
Tacos
Salad
Pizza

With the exception of tacos and sandwiches, the list is nearly identical.

Hey, who wants to debate whether tacos and sandwiches are in the same food family?

I encourage you to review both reports in their entirety for yourself. For the Canadian Edition of DoorDash’s report, click here. And click here for the US edition.

Image: Lara Jameson on Pexels

November 3, 2023by David Klemt David Klemt No Comments

5 Books to Read this Month: November 2023

5 Books to Read this Month: November 2023

by David Klemt

Our inspiring and informative November book selections will help you and your team transform your operations and F&B programming.

This month, we look at a new branding and marketing book. We also dive into agave spirits and cuisine from the Canadian Prairies.

There’s an eye-opening exploration into the topic of technology, culture, and the “alignment problem,” as well.

To review the book recommendations from October 2023, click here.

Let’s jump in!

The Restaurant Marketing Mindset: A Comprehensive Guide to Establishing Your Restaurant’s Brand, from Concept to Launch and Beyond

If you haven’t had the opportunity to hear Chip Klose speak, look into his books. His latest The Restaurant Marketing Mindset, came out in early October. As the title suggests, this book is for anyone who’s struggling with branding and marketing, or who simply wants a fresh perspective on this crucial element of operations.

From Amazon: “Restaurants boast some of the highest failure rates of any industry, yet even worse is the sheer number of concepts that struggle just to break even. In The Restaurant Marketing Mindset, Chip Klose introduces a series of mindset shifts and actionable frameworks to help owners and operators finally take control of their marketing.

With more than twenty years of operational experience—plus an MBA in food marketing—Klose has the authority, experience, and track record needed to speak confidently on the subject. Each lesson stacks one on top of the other, giving the reader a step-by-step plan to attract more diners, retain those diners, and spark word of mouth with the ones who matter most.

This book is for any chef, owner, or operator who’s ever felt overwhelmed when it comes to marketing their restaurant. Each chapter is filled with powerful insights to help you build a more profitable (and sustainable) business.”

Pick it up today!

Prairie: Seasonal, Farm-Fresh Recipes Celebrating the Canadian Prairies

This engaging cookbook features 1oo traditional and creative recipes highlighting Canadian Prairie cuisine. These seasonal, farm-to-table recipes are sure to impress your guests.

From Amazon: “No matter the season, the Prairies are all about preserving every ounce of food, so of course there’s also tons of helpful tips and tricks on reducing food waste. There’s even a Staples chapter with recipes for stocking your pantry to keep you cooking all year long. Both a love letter to Canada’s grandest provinces and an indispensable collection of recipes, Prairie is as inviting and bountiful as the region it celebrates.”

Agave Spirits: The Past, Present, and Future of Mezcals

The authors of this informative book visited eight Mexican states to learn all they could about mezcal. By extension, they learned not only about traditional production but also where this hugely popular spirits category is headed for the future.

From Amazon: “The result of the authors’ fieldwork and on-the-ground interviews with mezcaleros in eight Mexican states, Agave Spirits shows how traditional methods of mezcal production are inspiring a new generation of individuals, including women, both in and beyond the industry. And as they reach back into a rich, centuries-long history, Nabhan and Suro Pinera make clear that understanding the story behind a bottle of mezcal, more than any other drink, will not only reveal what lies ahead for the tradition―including its ability to adapt in the face of the climate crisis―but will also enrich the drinking experience for readers.”

The Alignment Problem: Machine Learning and Human Values

When we build automated systems, we’re placing a lot of trust in our expertise. And because humans are fallible, the systems we build are far from perfect.

From Amazon: “Today’s ‘machine-learning’ systems, trained by data, are so effective that we’ve invited them to see and hear for us—and to make decisions on our behalf. But alarm bells are ringing. Recent years have seen an eruption of concern as the field of machine learning advances. When the systems we attempt to teach will not, in the end, do what we want or what we expect, ethical and potentially existential risks emerge. Researchers call this the alignment problem.”

Hacking the New Normal: Hitting the Reset Button on the Hospitality Industry

The world around us has changed. The food and beverage industry has changed. The hospitality industry has changed. But will some ways of life change for the better? Will perhaps the restaurant, bar, and hospitality industry come out even stronger? With the right changes to the previous status quo, it is possible. There’s no question, resets are major undertakings, but a major reset will provide us with a clean start and that’s what this industry needs.

Pick up KRG Hospitality president Doug Radkey’s second book today! Click here.

Image: Mikołaj on Unsplash

"Think about things differently" neon sign

November 1, 2023by David Klemt David Klemt No Comments

Program for Unique Holidays: November 2023

Program for Unique Holidays: November 2023

by David Klemt

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

Several holidays are set against every date on the calendar, and this month is no exception. These holidays range from mainstream to esoteric.

Pay attention to the “weird” or unique holidays to raise eyebrows, carve out a niche for your restaurant or bar, and attract more guests. Why do what everyone else is already doing? Why program only around the same holidays as everyone else?

Of course, you shouldn’t try to celebrate every holiday, strange or otherwise. Focus on the days that are authentic to your brand; resonate with your guests; and help you grab attention on social media.

You’ll find suggestions for promotions below. However, the idea behind our monthly holiday promotions roundup is to inspire you and your team to get creative and come up with unique programming ideas.

For our October 2023 holidays list, click here.

November 3: National Jersey Day

This is an easy one. MLB, the NBA, NHL, NFL, NCAA Football… All of these and more are in regular season play at the moment.

Establish your bar as the place to watch and play fantasy sports to develop a loyal guest base. One way to really get your guests engaged is to get them to wear their jerseys, and this holiday is the “official” day for them to do so.

November 5: Zero Tasking Day

Sure, multi-tasking and the people who claim to have mastery over it are impressive. But you know what’s even more impressive? Taking the time to nothing but relax.

You know what’s an excellent place to check out, relax, and indulge? Your restaurant, bar, or nightclub.

November 6: National Nacho Day

No, nachos aren’t the world’s most unique food. However, your approach and presentation can certainly help you stand out from other operators.

Go highest. Go largest. Go most unusual ingredients. Go most premium toppings. Just go wild.

November 11: National Metal Day

Anyone who knows me knows that metal holds a special place in my life. In fact, I recently hit the Pearl Theater inside the Palms for the Dethklok + BABY METAL “BABYKLOK” tour stop in Las Vegas.

This is the day for you to encourage the metalheads among your guests to show up to your bar or restaurant. Create an LTO featuring metal spirit brands, like Slipknot Iowa Whiskey and Metallica’s Blackened Whiskey.

November 14: National Pickle Day

If your kitchen can pickle it, this is the holiday to have them create an LTO menu showing off their skills.

November 16: National Use Less Stuff Day

Sustainability and ethical business practices aren’t just trendy anymore. Many of today’s guests want to know they’re supporting businesses that have a plan to address waste.

If you’ve been developing a sustainability plan, this is the day to launch it. Look at your operations, look at your menu, and see where you can make small but impactful changes.

November 20: National Absurdity Day

Do you have an “absurd” idea for a promotion, menu item, design feature, or branding exercise? Tighten up that idea and execute it on National Absurdity Day.

You can also check out one of our KRG Concepts, Absurd! Kitchen Co., for a turn-key restaurant concept.

November 22: DrinksGiving

As operators know, the Wednesday before Thanksgiving has traditionally been the busiest bar night of the year. Whether you call it Thanksgiving Eve or DrinksGiving, this is your opportunity to pull out all the stops.

November 25: National Small Business Day

This is the perfect holiday to highlight all the small, craft, and independent F&B brands you work with at your restaurant or bar. Feature local artisans, spirits and beer producers, farmers, and more on your menu to help them and you generate more business.

November 30: National Mason Jar Day

I don’t know what it is but drinking from a mason jar, whether there’s a delicious cocktail, moonshine, or a soft drink inside it, is just a cool experience.

Of course, you can also get creative with starter, side, and dessert presentations inside mason jars.

Image: Ivan Bertolazzi on Pexels

October 27, 2023by David Klemt David Klemt No Comments

Do You Need a Restaurant Chatbot?

Do You Need a Restaurant Chatbot?

by David Klemt

The labor shortage, increasing demand for convenience, and artificial intelligence are converging to make a strong case for restaurant chatbots.

Specifically, bots that can take orders accurately. As consumers increasingly live their lives on demand, any perception of even minor inconvenience can turn someone against a brand or venue.

In addition to convenience, today’s consumer, generally speaking, also expects to find more technology when engaging with a business. Likewise, workers expect employers to implement more tech, whether it’s welcome or not.

When it comes to our industry, that means everything from streamlined POS systems and powerful CRM platforms to predictive ordering software and cobots.

Looking at generative AI and guest-facing tech, it won’t be long before guests expect to place their orders via chatbot.

In fact, some consumers are placing orders with restaurant bots now. There are already text- and voice-based restaurant bots out in the world. So far, it appears that many QSRs are implementing generative AI bots to handle orders.

As some of the companies developing restaurant bots point out, they never tire. The bots never feel overwhelmed. They can field a limitless amount of calls, working around the clock without breaks, every day of the year. Obviously, restaurant bots don’t get sick, ask for time off, or no-call, no-show.

So, for high-volume restaurants, particularly those with drive-thrus, restaurant bots are probably incredibly attractive. Clearly, labor is still an issue. And these restaurant bots promise to take the ordering process out of workers’ hands, allowing them to focus on “more important” tasks.

Now, couple that with guests seeming less patient, less forgiving, and more obsessive about convenience. On-demand solutions certainly appear great on paper.

Text Bots

We know that guests are already interacting with restaurant bots. When they visit a restaurant’s website or download its app if they have one, they’re encountering bots.

Some provide information, some can make reservations, and an increasing number can take orders. There are bots that imitate a text exchange, and those that streamline the ordering process by using canned replies.

One of the better known of these is Dom, Domino’s chatbot. Whether via app or website, Dom walks people through the ordering process easily and, in my experience playing with this tool, quite simply.

Further, Dom can “remember” previous orders (when a customer is logged into their account) and reorder them. The bot can make recommendations, and it will search for and apply coupons or promotions.

These functions are, of course, the pros of restaurant bots. As their ability to handle more complex tasks increases, the promise is that they’ll do more than offer convenience or solve some labor issues.

Rather, they’ll also generate more revenue by making personalized recommendations, upselling customers, and reaching out to customers to prompt them to place an order.

Voice Bots

As operators whose phone lines light up from open to close can attest, there are people who prefer to talk to someone to place an order.

Well, there are now restaurant bots that can field those calls.

One provider of this tech is ConverseNow. The company uses voice AI, which they explain is also known as conversational AI on their website. Their tech handles phone and drive-thru orders, and the experience is close to, if not exactly like, speaking with their human counterparts.

According to ConverseNow, operators no longer have to worry about unanswered calls. Customers won’t call in only to hear a busy signal. Drive-thru times are reduced. Workers can focus solely on service, prep, and fulfilling orders.

Additionally, the company is focusing on accuracy. There’s an agent-assisted solution, for example. If a complex order comes in, an agent can take over before things go sideways. Agents can also help ConverseNow’s AI to learn from new situations, ensuring the customer experience is painless and even more accuracy.

The tech is so good that Domino’s uses it along with Dom. Per the ConverseNow website, the tech integrates with leading POS systems like Toast; is live in more than 1,200 restaurants in over 40 states; and has taken 8.5 million orders and freed up one million labor hours for their clients.

Along with ConverseNow, operators can look into HungerRush, Yellow.ai, and other solutions.

Takeaway

Restaurant bots certainly make sense for high-volume, limited-service, and QSR operators. They can reduce labor costs and capture more (if not every) order with ease.

However, we need to consider the impact of reducing or eliminating human interactions in hospitality. Whether in the front or back of house, we appear to be heading toward an industry putting less emphasis on the human element.

Yes, team members still interact with guests to take in-person orders and for in-person dining. That is, for now.

In the QSR space in particular, ordering kiosks are becoming more common. At some point, AI-powered kiosks, along with other AI tools, will replace the need to interact with humans in fast-casual and casual-dining restaurants.

It seems at odds with the spirit of hospitality for guests to not have to interact with a team member until their food needs to be dropped. And with cobots, that’s also a task an operator can automate.

I’m all for progress and innovation. And I’m all for delivering on the guest expectation of convenience. However, it’s a balancing act. An operator opting to automate tasks so team members can better engage with guests needs to ensure that’s actually happening.

I don’t think we need less human interaction. And I, for one, have a growing concern that some operators are journeying further down the path of barely seeing the people they employ as people. Rather, too many are increasingly seeing team members as liabilities and nothing more.

I point that out to say this: When considering implementing any new tech, consider the impact on more than just P&Ls. This is a people business, and dedicating yourself to slashing costs and boosting revenue ruthlessly runs the risk of making a restaurant less hospitable for guests and staff.

Image: Cash Macanaya on Unsplash

"Just be nice" sign on wall with graffiti

October 25, 2023by David Klemt David Klemt No Comments

New Review Platform Rejects Negativity

It’s Good: New Review Platform Rejects Negativity

by David Klemt

Combine equal parts incredible team of founders, love for food and travel, and respect for an expression that we should all adhere to more closely, and you get a new review platform.

The expression from which this team derives their platform’s ethos?

“If you don’t have something good to say, don’t say it at all.” But how can a review platform embody that age-old expression?

Well, it turns out that answer is rather simple: by refusing to allow negative reviews. That’s the foundation of how It’s Good plans to operate.

That is, of course, quite the departure from Yelp, Google Reviews, Tripadvisor, and other review platforms. In my experience, Yelp draws the ire of most operators. Obviously, it doesn’t help Yelp’s reputation among operators that people can review bomb a venue rather easily, among other issues.

On It’s Good, there’s no “star” ratings system. Negative comments? The platform is “not even built for” those, according to co-founder John Legend.

“Either you recommend [a place or experience] or you don’t,” says Legend, elaborating further on It’s Good.

The team of founders also includes Kevin Auerbach (who comes from Apple), Meghan Raab (from Snap), and director and photographer Mike Rosenthal.

With Auerbach and Raab guiding what is likely a top-notch engineering team, It’s Good should be simple and fun to use.

The User Experience

At the moment, It’s Good is an invite-only platform. According to articles online, Legend and Rosenthal have been working on the app for four years.

So, the initial idea is to lay the user foundation ahead of its public launch. Logical, since it would be challenging to sift through recommendations without a core user group populating the app first.

“Our mission is to be your go-to place for saving & sharing your most favorite places to eat and drink. Trustworthy recommendations for you, by you – from the people you know or admire, all in one beautiful space,” reads the waitlist confirmation email I received from Shirene Niksadat, It’s Good head of community.

Interestingly, one of the motivating factors behind this platform is Legend himself. Apparently, he’s a go-to source for recommendations amongst his friends.

“My friends always reach out to me for ‘my list’ of restaurants in the cities I’ve visited,” Legend is quoted as saying on the It’s Good website.

From what I can gather, the platform will allow people to find new restaurants, bars, and experiences via location-based and themed lists. I’m sure there’s more functionality, but the main takeaways are:

organized recommendations;
personalized recommendations from trusted sources and friends; and
recommendations that answer a simple question: Is this place or experience good?

“We believe a restaurant rec from 1 trusted friend is more valuable than recs from 10,000 strangers,” says the It’s Good site, right at the top.

That should give us all an idea of how this platform will operate, and what to expect when it goes live for the general public.

Obviously, I can’t provide a review of this review platform. But I can say that I’m looking forward to my opportunity to take it for a spin.

To get your name on the waitlist, click here.

Image: A A on Unsplash

October 23, 2023by David Klemt David Klemt No Comments

Intersection of Streaming & Sports Betting

The Intersection of Streaming and Sports Betting

by David Klemt

The popularity and ubiquity of sports betting is exploding throughout the US, and its seemingly inescapable presence is due in large part to streaming.

This is one topic we learned about during our first visit to the Global Gaming Expo, also known as G2E.

It’s true that gaming and hospitality are two distinct, different industries. However, they’re inextricably connected. And with gaming platforms and mobile devices making it even easier to place bets on sports, that connection is only getting stronger.

Now, I’m going to take a moment to make my relationship with gaming clear. First, I’m not an expert on the industry. Second, I rarely partake in gaming even though I live in Las Vegas. I’ll throw the odd twenty into a small handful of specific slot machines, but that’s the extent of my gaming experience. I think it has been a decade since I last played craps.

So, I’m going to do my best to share what I learned during G2E. The show is an educational experience for me, and I feel that hospitality business operators can benefit from its sessions.

As far as the hospitality-gaming relationship, however, I certainly believe they’re complementary industries. This is absolutely true in Las Vegas, and it’s true in other markets as well. If casinos weren’t aware that hospitality is crucial to keeping guests returning and risking their cash on games, they wouldn’t bother focusing on dining, drinking, nightlife, and other hospitality amenities.

I’m also confident saying Las Vegas in particular wouldn’t have generated nearly $15 billion in 2022. And casinos throughout America wouldn’t have generated over $60 billion last year.

In summary, the connection between hospitality and gaming is what drew me to G2E this year.

Watershed Moments

One of the sessions I attended was “Streaming X Sports Betting: The Future of Engaging Gen Z.” Adam I. Kaplan, the chief operating officer of SportsGrid, was the speaker.

SportsGrid, I’ve since learned, is a multimedia sports betting network. According to Kaplan, the ad-supported network is available on more than 40 platforms and accessed by millions upon millions of mobile devices

Users can access SportsGrid 24/7 via smart TV or their dedicated app. Additionally, people can stream SportsGrid via other platforms, such as:

Roku;
Prime Video;
YouTube TV;
Sling;
Freevee; and
Plex.

Per Kaplan, we can trace the creation of SportsGrid to two genesis points: the creation of Napster, and the introduction of the iPhone.

The launch of Napster in June of 1999 was, of course, a watershed moment. And its influence on society is undeniable. According to Kaplan, the platform’s influence included the belief that content should be free.

When the iPhone hit the scene in January of 2007, it, too, was a massive milestone. Part of its success, as Kaplan pointed out, was how easy it made for users to engage with content.

Taken together, Napster and the iPhone have “taught” people that content should be free and easy to access. And their launches have led to the rise of iGaming and sports betting.

Sports Betting Repeal Day

Like hospitality, sports betting has their own Repeal Day. Whereas bars and restaurants celebrate on December 5, gaming would celebrate May 14.

That’s the day in 2018 that the United States Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA) of 1992. Essentially, PASPA banned sports betting in the US, with narrow exceptions for four or five states.

When PASPA was overturned on the basis that the act violated the Tenth Amendment (states’ rights), several states made moves to legalize sports betting. Currently, sports betting is legal in some form in more than 30 states and Washington, DC.

During the five-year period following the end of PASPA, sports betting has gained massive traction throughout the US. Several publications report that the NFL in particular sees the most betting action.

According to the American Gaming Association, 73 million Americans plan to bet on the 2023-2024 NFL season specifically. That’s up from 46 million in 2022, a huge leap.

Of all adults who said they’d bet on sports this year, 14 percent (more than 35 million people) plan to place their bets online.

Per SportsGrid’s Kaplan, people aged 40 and under—so, Millennials and legal-age Gen Z—make up the majority of sports bettors. Looking at sports betting as an engagement driver, businesses should see the opportunity to attract sports bettors as customers and keep them loyal.

Skin in the Game

As Kaplan points out, one reason that sports betting drives engagement is the sense a bettor has of having “skin in the game.”

Well, they aren’t the only people who want skin in the sports betting game.

Since PASPA ended, hospitality venues across the country have attempted to get in on the sports betting phenomenon. This makes perfect sense, particularly for sports bars.

What operator in that space wouldn’t love the ability to stream content from a platform like SportsGrid, FanDuel TV, or DraftKings Network, with their guests permitted to place bets while inside the venue, legally?

That opportunity could prove incredibly lucrative, generating significant traffic and sales. And that’s to say nothing of the marketing, promotions, and guest loyalty opportunities. Think of what legalized on-premise sports betting could do to attract fantasy sports league participants…

Additionally, venues that can stream sports betting content and encourage betting on-premise (again, legally) could prove incredibly popular with one of the age groups operators focus on the most: the 21- to 34-year-old segment.

So, it appears one of the next frontiers for hospitality is pushing for the legalization of sports betting on-premise. Operators in favor of guests being allowed to place bets while onsite can either wait and see or actively engage their lawmakers.

What a time, eh?

Image: Adrian Curiel on Unsplash

The Federal Trade Commission Building in Washington, DC

October 18, 2023by David Klemt David Klemt No Comments

Restaurant Fees Facing FTC Scrutiny

Restaurant Fees Facing FTC Scrutiny

by David Klemt

The focus on rising costs and hidden or “junk” fees over the past few years is bringing the Federal Trade Commission’s attention to the restaurant space.

Really, it was only a matter of time. Consumers are quite clearly fed up with being hit with unexpected fees. Whether purchasing concert tickets or popping into a QSR for a quick bite, they’re over the perceived nickel and diming.

That’s to say nothing of the other businesses that consumers feel are going too far with fees.

However, much of the public conversation about junk fees revolves around restaurants, and in some instances bars, as well. A common refrain on social media and online communities is, to paraphrase, “Just tell tell us what it costs on the menu!”

Of course, there are consumers who don’t want businesses to raise their prices at all. There’s no reasoning with these people, and they see all increases and fees—even those that aren’t hidden or bogus—as ripoffs.

But there are those who understand the challenges operators are facing. Understandably, these people just want transparency. And they want to have a clear idea of what it will cost to dine and drink somewhere before they plan their visit or are handed their check.

These consumers now have allies in state and federal governments.

FTC Focuses In

Some people may be surprised to learn that the FTC’s focus on junk fees isn’t entirely new. In fact, the agency has been digging into this topic for nearly a year.

Last November, the FTC asked for the public for their opinions on deceptive and unfair practices. Specifically, practices that relate to junk fees. Per the FTC, American consumers are paying tens of billions of dollars in junk fees annually.

According to the agency, they received 12,000 comments.

Now, with the support of the White House, one would assume, the FTC is asking for public input again. This time, the agency is seeking comments about a rule their proposing to address junk fees.

Last week, both the White House and FTC proposed rules that will make it mandatory for businesses to disclose all fees up front. Additionally, the White House wants to curtail “excessive” bank fees for basic services.

Put simply, the FTC’s proposal will ban hidden fees, require transparency regarding all fees, and allow the agency to impose penalties.

And now, after zeroing in on airlines, landlords, utilities, entertainment, and banking, the FTC is looking at hospitality.

Restaurants Under Scrutiny

As they did in November of last year, the FTC is once again asking for the public to comment on fees. This time, however, restaurants have been included by the agency.

To be sure, this focus isn’t exactly new. Washington, DC, for example has addressed junk fees in the restaurant space. As with other jurisdictions that have tackled this topic, restaurants must be conspicuous and make guests aware of all fees before their checks arrive. Additionally, operators must be clear about their intended use for fees.

In Washington, DC, a violation of these rules can lead to a $5,000 fine for a first-time offense. That penalty can rise to $10,000 for additional violations.

California has also passed Senate Bill 478, signed into law by Governor Gavin Newsom. This law, which also targets hidden fees, takes effect on July 1, 2024.

Most likely, the FTC is seeking comment to make adjustments to their proposed junk fee rule in order to include restaurants. From what I’ve seen, restaurant delivery fees in particular are drawing the ire of consumers and attention of state and federal agencies.

“All too often, Americans are plagued with unexpected and unnecessary fees they can’t escape. These junk fees now cost Americans tens of billions of dollars per year—money that corporations are extracting from working families just because they can,” says Lina M. Khan, FTC Chair.

Consumers will have 60 days to submit their comments to the FTC.

Takeaway

Proactive operators who haven’t already done so should make their in-person dining and delivery fees obvious.

Best practices for fee transparency include highlighting them on menus; announcing them via table tents or talkers; including fees on websites; and including a notice or disclaimer on reservation pages.

However, operators should avoid viewing being transparent about fees through a lens of compliance. Rather, being clear and upfront with guests is just good business. In fact, it’s in keeping with the spirit of hospitality and service.

If the final experience a guest has with a restaurant is being unpleasantly surprised by their check due to junk fees, how should be expected to respond? Their perception of the venue or brand will plummet, and they won’t return. How long can a restaurant sustain that guest reaction before the damage is irreparable and an operator has to close their doors?

Operators are being asked to thread a needle every day. Costs are rising and there are only so many solutions available to most operators that can keep their doors open, keep guests and staff happy, and pull the business toward long-term success.

To be clear, fees are generally fine—if consumers feel they know what to expect ahead of their visit. Nobody wants to be surprised, and that shouldn’t be difficult to understand.

So, operators need to be transparent about fees. They need to consider dynamic pricing for menus. That requires an absolute understanding of costs, guest tolerances for pricing, and the market.

The payoff, however, is happier guests who are far more likely to return for in-person dining and to place delivery or takeout orders. Savvy operators will put the work in now to get ahead of the junk fee fallout.

Image: Ian Hutchinson on Unsplash