Hotel Operations

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How do You Measure Success?

How do You Measure Success?

by David Klemt

An AI-generated image of a tattooed female bartender, standing and smiling behind the bar

That’s a lot of pens…and possibly paintbrushes.

When you take a moment to reflect on your business, what does success mean to you, and what steps are you taking to achieve it?

One obvious measure of success, of course, is monetary. Whether you operate a bar, restaurant, cafe, lounge, nightclub, hotel or other hospitality business, this is a stressful business. Why subject yourself and your team to the hardships hospitality throws at us if there are no financial rewards?

To many, a successful business is one that operates a profit. One that provides the entire team with not just enough money to get by but to thrive and experience financial freedom.

I like to think that mostthe vast majority would be niceoperators want the people who believe in their vision enough to work with them to achieve it to make more than just a living wage.

Speaking of buy-in from others, finding people eager to work for them is a measure of success to some operators.

Others find success in achieving accolades. If we were to look at these operators and those who measure success financially, there would surely be an overlap in a Venn diagram.

Operators who find awards, invitations to share their stories, and opportunities to speak and educate others find the validation of their vision to mean they’re successful.

There’s absolutely nothing wrong with measuring success by profits and awards earned. After all, a hospitality business won’t be a business for long if it operates in the red, or people are unaware it exists.

But what about considering how your business makes you feel?

For Your Condsideration

Yes, I’m going to talk about feelings. Our industry is too challenging to pretend money is the only thing that matters. And we simply can’t keep ignoring the topic of mental health and the toll the hospitality industry can take on a person.

So, let’s take a moment to consider some key questions.

Is just the thought of your business accompanied by positive or negative feelings? When it’s time to head into your restaurant, bar or hotel, are you happy and excited? Or does the thought fill you with stress, or worse yet, dread?

I’m speaking on balance, of course. Stress is inescapable. New operator? Stress. A year or two in? Stress. Veteran operator? Stress.

On the whole, however, do you feel satisfied with what you’ve built, and what you’re operating? When you consider your business and brand, are you proud?

Satisfaction, Happiness, and Pride

I was reading a profile on Hotel Management a few days ago that I’m still thinking about.

Speaking of the brand and success, Red Roof Inn president Zack Gharib says, “To me, [ultimately], the measurement is, how are we making the people feel who are invested in us most—our employees, our franchisees, our communities, our guests? If there’s a sense of satisfaction and happiness and pride to be part of [the brand], then we have achieved success.”

Again, there’s nothing wrong with measuring the success of your business in financial terms. When we’re working with a client to bring their vision to life we’re laser focused on long-term financial viability.

However, leading your business toward becoming a brand you’re proud of and happy to operate should also be a consideration.

Picture operating your business so well that your team is proud to work for you. Imagine how you’d feel if the people you serve feel pride having your business in the community.

This business is too challenging to allow it to drain you psychologically, physically, and financially. If you’ve lost control of parts of your business or lost sight of your vision, it’s time to stabilize. Should you feel that you want to build your brand into something bigger, it’s time to consider scaling it. If you’re not proud to tell people about your business, you need a shift in mindset.

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Balancing Menu Creativity with Preferences

Menu Design: Balancing Creativity and Guest Preferences

by Nathen Dubé

An AI-generated image of a chef-owner and head chef reviewing a restaurant menu

Note: AI-generated image.

A menu is not just a list of dishes; it’s a strategic tool that influences guest choices, enhances the dining experience, and maximizes sales.

Therefore, a well-designed menu is a crucial component of a restaurant’s success.

Come along with me and we’ll explore the principles of effective menu design, balancing creativity with guest preferences, and the role of menu psychology in driving decisions.

Key Principles of Effective Menu Design

Layout and Structure

The foundation of a great menu lies in its layout and structure. Organizing menu items logically—grouping appetizers, mains, desserts, and beverages into distinct sections—guides guests through their dining journey.

This structure helps in creating a seamless experience where guests can find what they are looking for easily. Subsections like “vegetarian,” “seafood,” or “grilled” can further refine the selection process.

Logical organization not only aids in navigation but also enhances the overall dining experience by reducing decision fatigue.

Item Placement

Item placement on the menu can have a significant impact on what guests decide to order.

The “Golden Triangle” concept suggests that guests’ eyes typically first gravitate to the center, then the top right, and finally, the top left of the menu. Placing high-margin items in these areas can drive sales.

Additionally, highlighting signature dishes and specials in these prime spots can make them more appealing. Strategic placement is essential for maximizing the visibility of certain items, encouraging guests to order the dishes that are most profitable or unique.

Readability

A menu should be easy to read and visually appealing. Choosing appropriate fonts and sizes ensures that the text is legible in various lighting conditions.

A key factor to bear in mind is maintaining clear spacing between items to prevent the menu from looking cluttered and overwhelming.

Ensuring the clarity and ease of reading is vital; if a guest struggles to read the menu, it detracts from their dining experience. Effective readability involves the thoughtful selection of fonts, sizes, and spacing to create a harmonious and inviting look.

Balancing Creativity and Guest Preferences

Creative Culinary Expression

A menu is an opportunity to showcase the chef’s creativity and culinary expertise. Innovative dishes that use unique ingredients or cooking techniques can set a restaurant apart from its competitors.

Creativity is crucial for developing a distinctive culinary identity, and offering guests an exciting and memorable dining experience.

However, it’s important to balance creativity with dishes that guests are familiar with and enjoy. Balancing innovation with tradition ensures that while the menu offers new and novel experiences, it also provides comfort and familiarity.

Popular Guest Preferences

To appeal to a broad audience, a menu should include a mix of creative dishes and popular favorites. Including familiar dishes alongside innovative options can cater to a wider audience, making everyone feel welcomed and valued.

Additionally, considering dietary restrictions and preferences is crucial. Offering vegetarian, vegan, gluten-free, and allergen-friendly options ensures that all guests can find something they love. Addressing dietary needs and preferences not only broadens the guest base but also demonstrates the restaurant’s commitment to inclusivity and guest satisfaction.

Market Trends

Staying updated with current culinary trends helps keep the menu fresh and exciting.

For instance, trends such as plant-based diets, sustainability, and ethnic fusion can attract trend-conscious diners. Incorporating these trends into the menu shows that the restaurant is contemporary and aware of its guests’ evolving tastes.

Aligning the menu with market trends can create a buzz and draw attention to the restaurant, enhancing its reputation as a forward-thinking and dynamic establishment.

The Role of Menu Psychology

Influencing Guest Choices

Menu psychology involves using strategic design and phrasing to influence what guests order.

Some effective techniques include strategic pricing methods like decoy pricing. This approach involves placing a high-priced item next to a mid-priced item to make the latter seem more reasonable. Another tactic is charm pricing, an approach that uses prices that end in “.99” to make them appear more attractive.

These subtle cues can guide guest decisions and encourage them to choose certain dishes. Understanding menu psychology allows restaurants to steer guests subtly towards higher-margin items without being overtly pushy.

Maximizing Sales

Highlighting profitable dishes with visual cues, such as boxes, borders, or bold text, can draw attention to these items. Descriptive language that evokes the senses can make dishes sound more appealing, and entice guests to try them.

For example, describing a dish as “succulent, slow-roasted pork with a caramelized apple glaze” creates a vivid image, and stimulates appetite.

Effective use of menu psychology can boost sales significantly, and enhance the dining experience by making the menu more engaging and enticing.

Enhancing Appeal with Descriptive Language and Visuals

Descriptive Language

Using evocative and sensory words to describe dishes can enhance their appeal. Highlighting unique ingredients, preparation methods, and the origin of the dish creates a story that resonates with guests.

Descriptive language adds depth and dimension to the menu, transforming it from a simple list of dishes into a narrative that engages the guest’s imagination. Phrases like “handcrafted,” “locally sourced,” and “artisanal” add a touch of sophistication and quality, making dishes sound more attractive and special.

Visuals

Including high-quality images or illustrations of key dishes can boost their appeal significantly. Visuals help guests imagine the dish, and can trigger an emotional response

A well-designed menu with complementary color schemes and design elements reinforces the restaurant’s theme, and creates a cohesive brand identity.

The use of appealing visuals can stimulate appetite, and make the decision-making process more enjoyable for guests, enhancing their overall dining experience.

Examples of Innovative Menus

Case Studies of Successful Menus

Analyzing menus from renowned restaurants provides valuable insights into successful design choices.

For instance, The French Laundry in California uses a minimalist menu design that emphasizes simplicity and elegance, allowing the focus to remain on the high-quality ingredients and sophisticated dishes.

Similarly, Nobu’s menu balances innovative Japanese-Peruvian fusion dishes with classic favorites, catering to a diverse clientele.

These examples illustrate how thoughtful menu design can enhance the dining experience, and create a distinctive brand identity.

Insights from Industry Experts

Menu design professionals and restaurateurs offer valuable best practices. Experts suggest evaluating and adapting the menu continuously to meet changing guest preferences and market trends.

Updating the menu regularly not only keeps it interesting for repeat guests but also allows for the introduction of seasonal ingredients and new culinary innovations.

Industry insights highlight the importance of flexibility and responsiveness in menu design, ensuring that the restaurant remains relevant and competitive.

Conclusion

A thoughtfully designed menu is a powerful tool in the restaurant industry. It balances creativity with guest preferences, uses psychology to influence choices, and enhances appeal through descriptive language and visuals.

Investing in effective menu design can enhance the dining experience, drive guest satisfaction, and boost sales. For restaurateurs, it’s an essential aspect of creating a successful and memorable dining establishment.

By understanding and implementing these principles, restaurant owners can craft menus that not only reflect their culinary vision but also resonate with their target audience, ensuring a winning formula for success.

A well-designed menu can transform the dining experience, making it more engaging, enjoyable, and, ultimately, profitable for the restaurant.

Image: Microsoft Designer

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Modern Day Revenue Management for Hotels

Modern Day Revenue Management for Hotels

by Doug Radkey

An AI-generated hotel bar area with seating next to large windows, with numbers superimposed over the image

Note: Image generated by artificial intelligence.

The landscape of hotel revenue management has evolved significantly in recent years, driven by both tech advancements and changing consumer behaviors.

With this in mind, I think now would be a good time to explore these current trends, tools, and strategies in hotel revenue management.

Below, I outline the importance of data analytics, dynamic pricing, and AI in maximizing revenue today, and as we move forward in this industry.

The Evolution of Revenue Management

In the early days of the hotel industry, revenue management was a relatively straightforward affair.

While the overall concept of revenue management originated in the airline industry in the 1980s, it was later adapted by hotels. Traditional practices relied primarily on static pricing models, where room rates were set based on the season, room type, and booking lead time. Rates were adjusted infrequently (often just a few times per year), and they were influenced mainly by historical data documented internally, and the intuition of revenue managers.

Hotels used simple tools such as spreadsheets and reservation logs to track bookings and manage their inventory. The focus was on achieving high occupancy rates rather than maximizing revenue per available room (RevPAR) and the other key metrics that we follow today.

Discounts and promotions were applied sporadically, without a deep understanding of market segments or consumer behavior, to help drive revenue during off-season periods. Group rates and corporate contracts were negotiated based on fixed rates, with little consideration for fluctuating market conditions.

From Static Pricing to Dynamic, Data-Driven Strategies

The transition from those early days to modern revenue management practices began in the late 1990s and early 2000s, driven by tech advancements and increased competition in the accommodation space.

The advent of online travel agencies (OTAs), real-time booking systems, and sophisticated data analytic tools transformed how hotels approached their pricing and inventory management.

So, what’s the modern approach?

  • Data-Driven Decision Making: The incorporation of advanced data analytics revolutionized revenue management. Hotels began leveraging large datasets from various sources, such as reservation systems, customer relationship management (CRM) software, and market intelligence platforms. This data-driven approach enabled more accurate forecasting, segmentation, and pricing strategies. Revenue managers could now analyze booking patterns, guest preferences, and demand fluctuations to make informed decisions.
  • Dynamic Pricing Models: Dynamic pricing involves adjusting room rates continuously based on real-time market demand, competitor pricing, and other external factors. This approach allows hotels to maximize revenue by selling the right room to the right guest at the right time and price. Dynamic pricing models consider various data points, including booking pace, market trends, weather, and special events, to optimize their recommended rates.
  • Automation and Real-Time Adjustments: Modern revenue management systems (RMS) introduced automation, allowing hotels to implement real-time rate adjustments. These systems use algorithms and machine learning to analyze data and update rates across all distribution channels automatically. This automation minimizes manual errors, and ensures consistent pricing across platforms, enhancing the hotel’s ability to respond to market changes quickly.
  • Focus on Total Revenue Management: While traditional revenue management focused primarily on room revenue, modern practices embrace a more holistic view known as total revenue management. This approach considers all revenue streams, including food and beverage, spa services, and other on-property offerings. By optimizing pricing and promotions across all areas, hotels can now maximize total revenue and profitability.

The Importance of Data Analytics

Data analytics involves the systematic analysis of data to uncover patterns, correlations, and trends that inform strategic decisions.

Sounds fairly important, right? In the hospitality industry, data analytics helps you understand market dynamics, predict demand, and tailor your hotel’s offering to meet guest needs. This level of analysis is paramount for developing effective revenue management strategies that maximize profitability.

One of the primary functions of data analytics in hotel revenue management is demand forecasting. By analyzing historical booking data, seasonal trends, and external factors such as local events, weather, or economic conditions, hotels can predict future demand accurately. This forecasting through data analytics enables hotels to adjust room rates more dynamically, optimize inventory allocation more efficiently, and implement targeted marketing campaigns that drive results.

Modern analytics platforms have revolutionized hotel revenue management by providing sophisticated tools for data analysis, strategic planning, and dynamic pricing. Atomize RMS stands out as a prime example of an advanced analytics tool that leverages data-driven decision-making to optimize hotel performance through dynamic pricing. This cloud-based revenue management system (RMS) uses sophisticated algorithms and machine learning to provide real-time pricing recommendations, as well as market insights.

Atomize enables hotels to make informed decisions based on real-time market conditions and predictive analytics by leveraging machine learning and big data. This data-driven approach leads to more precise pricing strategies, optimized inventory management, and improved profitability.

Moreover, the system’s ability to automate and streamline revenue management processes reduces the risk of human error, and frees up time for hotel staff to focus on other critical aspects of operations, such as providing a memorable guest experience, and elevating service quality.

The Role of Artificial Intelligence (AI)

Artificial Intelligence (AI) has further revolutionized the field of revenue management in the hotel industry, offering advanced capabilities that enhance both efficiency and profitability. Another AI-powered RMS provider is Duetto Cloud’s Game Changer, designed to analyze large datasets, identify patterns, and make real-time decisions.

One of the key capabilities of an AI-powered RMS is the automated pricing optimization. The system monitors market conditions continuously and adjusts room rates based on real-time data, with limited rules in the back-end. This dynamic pricing approach allows hotels to capitalize on fluctuations in demand, ensuring that they are charging the optimal rate at any given time.

These accurate forecasts can enable hotels to plan more effectively, manage inventory, and allocate resources more efficiently.

For example, AI can help predict when a hotel is likely to experience high demand and adjust staffing levels accordingly, ensuring optimal service quality. Additionally, accurate forecasting helps in identifying potential periods of low occupancy, allowing hotels to implement targeted marketing campaigns and promotional offers to boost bookings.

Beyond pricing and forecasting, AI-powered RMS can also enhance the guest experience through personalization. By analyzing guest data such as booking history, preferences, and feedback, AI systems can tailor offers and recommendations to individual guests.

For instance, an advanced RMS can identify a guest’s preference for specific room types, amenities, or dining options and use this information to provide personalized packages or upsell relevant services.

As AI technology continues to evolve, its role in revenue management is expected to grow, offering even more sophisticated capabilities and insights for hotels. Embracing AI-powered RMS now is going to be essential for hotel operators who are looking to compete and win in today’s fast-paced and data-driven market.

Integrating Revenue Management with Other Hotel Operations

As mentioned above, modern hotel revenue management is moving away from the siloed approach of focusing solely on room-based revenue. Increasingly, that outdated method is being replaced by a more holistic perspective that encompasses the entire guest experience.

This shift necessitates cross-department collaboration, aligning revenue management with sales, marketing, and operations to create cohesive strategies that optimize total revenue. Integrating efforts across departments means hotels can enhance their revenue streams and also provide a seamless and enriching experience for their guests.

To maximize total revenue, hotels must look beyond room revenue to optimize ancillary revenue streams, such as food and beverage (F&B), spa services, events, and so much more. This approach, known as total revenue management (TRM), involves a comprehensive strategy that considers all aspects of the guest experience.

For example, coordinating F&B with revenue management ensures that the on-property restaurant reservations and event bookings align with the hotel’s overall occupancy and pricing strategies.

The obvious and ultimate goal of cross-department collaboration is to enhance the guest journey and experience. Aligning efforts across revenue management, sales, marketing, and operations ensures hotels can create a seamless and personalized experience for their guests.

This can include personalized room amenities, customized dining options, and exclusive access to hotel facilities. Engaging with guests before, during, and after their stay through targeted communications and personalized offers can further enhance their experience and encourage repeat visits.

Looking Ahead

As you can see, modern hotel revenue management has become an intelligent discipline driven by data analytics, dynamic pricing, and artificial intelligence (AI). These elements are really becoming a non-negotiable for optimizing revenue, enhancing guest experiences, and maintaining a competitive edge.

Data analytics provides deep insights into market trends, guest behaviors, and demand patterns, enabling more accurate forecasting and strategic decision-making. Dynamic pricing, powered by real-time data and AI, allows hotel operators to adjust room rates fluidly, maximizing revenue by responding to market conditions.

AI further enhances revenue management through advanced capabilities such as predictive analytics and personalized guest services, all of which streamline operations and improve efficiency when integrated with other departments within your hotel.

Looking ahead, the future of hotel revenue management promises exciting innovations and trends. As AI and machine learning technologies continue to advance, we can expect even more precise forecasting models, and highly personalized guest experiences. The integration of big data from diverse sources, including social media, online reviews, and IoT devices, will provide richer datasets for analysis, leading to more nuanced insights and strategic opportunities.

Additionally, the increasing importance of TRM and revenue per available guest (RevPAG) will encourage hotels to optimize not just room revenue but also ancillary streams such as dining, spa services, events, and more.

Move Forward Today

For hotel operators like yourself, you must embrace and invest in advanced analytics tools, AI-powered RMS, and dynamic pricing strategies.

Adopting a data-driven approach will position you to better understand your hotel’s market, anticipate demand fluctuations, and tailor your offering to meet guest expectations.

This proactive stance will not only drive revenue growth but also enhance your brand equity.

Stay ahead of the curve and adopt cutting-edge technologies and strategies to navigate the complexities of the modern market and ensure long-term success. Now is the time to invest in the future, leverage the power of data and AI, and lead your hotel to new heights of profitability and excellence.

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Program for Unique Holidays: Sept. 2024

Program for Unique Holidays: September 2024

by David Klemt

"Think about things differently" neon sign

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

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?

To provide a handful of examples, September boasts celebrations of the cheeseburger, the double cheeseburger, cheese pizza, pepperoni pizza, beer, and guacamole. Those are fantastic F&B holidays sure to appeal to your guests. However, you can still celebrate some “out there” holidays to get people’s attention and draw them to your business.

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 August 2024 holidays list, click here.

September 4: Eat an Extra Dessert Day

You know what’s better than selling one dessert? Selling multiple desserts.

One approach that may perform well for you, depending on your concept and menu, is to create new, smaller versions of desserts so people won’t be too stuffed to enjoy more than one treat.

September 8: National Ampersand Day

Ah, the ampersand. This is perhaps my favorite logogram, since it means “and,” and it looks cool when stylized. Since this symbol represents “and,” this is the perfect day to feature a menu of food-and-drink pairings or shot-and-beer pairings. I recommend a tiered LTO menu, with a few options for each level: Beam & Bud Light, Woodford & Guinness, etc.

September 9: National Wiener Schnitzel Day

This dish comes to us from Vienna. It’s so good and comforting that it’s one of Austria’s national dishes. Germans, of course, love wiener schnitzel as well.

To leverage this holiday, consider making a traditional version made with veal cutlets, served with French fries, mashed potatoes, or Hasselback potatoes. If you want to build an LTO menu, though, look to other versions of this dish. For example, there’s a non-breaded wiener schnitzel variant served with a cream sauce called rahmschnitzel. One can also argue that Japanese tonkatsu (pork, not veal), Danish skinkeschnitzel (made with pork rather than veal), and American chicken-fried steak will work for this holiday.

September 14: National Eat a Hoagie Day

The humble hoagie is an institution. Depending on where you operate, these iconic sandwiches may be known as heroes, grinders, submarines, subs, po’boys, bombers, or torpedoes. However, if your guests know them as hoagies, you better come correct. Hell hath no fury like a Philadelphian presented with a hoagie with mustard on it, for example.

September 15: National Crème de Menthe Day

Crème de menthe enjoys a deep history, which you can read about here. The main takeaways are the two most-famous cocktails that feature this legend among liqueurs: the Grasshopper, and the Stinger. Both classics are great for an LTO menu celebrating the final days of summer.

September 17: National Table Shuffleboard Day

Does your bar, restaurant, or eatertainment concept feature table shuffleboard? If it does, you’re poised to leverage this holiday.

One of the most effective approaches is to organize a tournament. Of course, you can also feature other contests, like Closest to the Edge.

September 21: Escapology Day

Okay, this one is a bit specific. If your restaurant or bar is located in the same market as an escape room (or several, as is the case for a city like Las Vegas), consider partnering with them if it makes sense to do so. You and your team can recommend your guests check out a particular escape room. Conversely, the escape room can recommend your restaurant or bar for post-escape food and drinks. To solidify the partnership, both businesses can offer a discount or other benefit to each other’s guests.

Really, we want you to think about local businesses that can serve as strong partners.

September 23: National Great American Pot Pie Day

Two weeks ago we tackled comfort foods. In particular, transforming traditional comfort foods into soups. This holiday is the perfect time to make an LTO soup (or, if it performs well, a permanent menu item, or recurring LTO from fall through winter) out of one of the best-known comfort classics, the pot pie.

September 24: Innergize Day

Summer is coming to a close. Traditionally, this means vacation and relaxation time is over as people return to offices, and children return to school.

Innergize Day is about relaxing and disconnecting. It’s quite likely your concept can facilitate relaxation, escaping devices, and slowing down.

September 25: Better Breakfast Day

Is your concept open for the early morning daypart? Do you serve brunch? More importantly, is your concept committed to serving healthy food and drinks, or are you interested in updating your menu to feature healthier items?

If you answered yes to any of those questions, this could be the day for you. Use social media and other marketing channels to promote your healthy menu. Create items like healthy breakfast bowls and smoothies if it’s time for an update, and promote your new, healthier menu.

Image: Ivan Bertolazzi on Pexels

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Game On: Datassential’s Midyear Report

Game On: Datassential’s Midyear Trends Report

by David Klemt

An Xbox One controller sitting on a Scorpion Gaming mouse pad

Brought to you by Xbox, Scorpion Gaming, and cool photography.

The 2024 Midyear Trends Report released by Datassential earlier this month contains an intriguing revelation that savvy operators can leverage.

There is, of course, interesting and useful information throughout. After all, Datassential conducted a survey of 1,500-plus US consumers, along with 400 US foodservice operators.

Surveying nearly 2,000 people is going to garner some helpful insights.

For example, we know that many people are concerned with their nutrition. Along with that comes reading nutrition labels. However, US consumers appear to throw that behavior to the wayside when dining out.

According to Datassential’s survey results, 62 percent of consumers in the US read the nutrition labels on new items before selecting them for purchase at grocery stores. But nearly that same percentage of consumers, 58 percent, don’t consider diets or nutrition when choosing where they’re going to eat.

What that says to me is that people still viewing dining out as a treat or an occasion. Most people, when treating themselves and others, see it as an escape. An escape from the stresses of work, of life, and from eating “boring” foods.

People are still driven to leave home to gather, socialize, and have fun. And restaurants and bars still play a major role in meeting those needs and desires.

Negative and fear-mongering stories may be getting all the clicks, but Datassential’s findings are much less on the doom-and-gloom side of the equation. Per their midyear report, nearly 90 percent of US restaurant operators have seen increases in traffic (46 percent) or had their traffic remain the same (42 percent) so far this year. Just 12 percent of operators reported decreases in traffic, according to Datassential.

Game On

Now, let’s look at the data in this report that really caught my attention.

The Datassential report reveals that 61 percent of survey respondents play video games. Citing Entertainment Software Association data, close to 200 million Americans are gamers. Going further, gaming spans all ages. Last year, gamers spent well over $50 billion on this particular hobby. MarketWatch claims even combined, the global sports and movie industries don’t outperform video games financially.

Of all respondents to the Datassential survey, a quarter aren’t gamers, and 15 percent “used to” play video games. That latter group consists mainly of Gen Xers. And, hey, fair enoughsome people don’t enjoy or have time for video games.

In contrast, however, 23 percent of survey respondents label themselves “avid gamers.” Gen Z, Millennials, and men make up the majority of this group of consumers.

Almost 40 percent (38%) classify themselves as “casual.” This group consists mainly of Gen X, Gen Z, and women.

Alright, so…what does this have to do with restaurant operators? Well, gamers spent $57 billion just on video games. Per Datassential, 45 percent of survey respondents have made F&B purchases after consuming video game-related ads or content. This is true of 63 percent of US Gen Z consumers, and 56 percent of US Millennials.

These stats tell me that gaming pays not just for console manufacturers and game producers, but also for F&B operators. It would seem to me, then, that operators with concepts that can leverage video games in an authentic manner should give strong consideration to doing so.

So, game on?

Image: Jose Gil on Unsplash

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The Evolution and Impact of Tourist Traps

The Evolution and Impact of Tourist Traps

by Doug Radkey

An AI-generated image of two tourists looking at a map and smiling in a destination city

AI images are improving at an alarming rate.

For many reading this, I am sure the term “tourist trap” conjures images of overpriced souvenirs, subpar dining experiences, and crowded attractions.

I had an interesting experience with my daughter in Niagara Falls, Ontario, Canada, recently. After reflecting upon it, I thought it would be a good time to explore how tourist traps, particularly restaurants, have evolved over time.

This includes their impact on local economies, changing traveler perceptions, and strategies for developing more authentic experiences.

The Evolution of Tourist Traps

The term “tourist trap” originated as a descriptor for businesses or locations that exploit travelers by offering overpriced goods and services, often with low quality or minimal value.

The concept dates back to the early days of tourism when travelers, unfamiliar with local customs and pricing, were easy targets for less-than-scrupulous vendors. Tourist traps were characterized by their strategic placement near popular attractions, capitalizing on high foot traffic and the desire of visitors to experience something unique or memorable.

Early tourist trap restaurants were notorious for their inflated prices and subpar offerings. These establishments often lured tourists in with flashy signage, gimmicky themes, or promises of local cuisine, only to deliver mediocre food and service.

For instance, restaurants near iconic landmarks like the Eiffel Tower in Paris or Times Square in New York City became known for their exorbitant prices, poor quality meals, and lackluster service. These venues capitalized on their prime locations, knowing that many tourists were willing to pay a premium for the convenience and the experience of dining near a famous site.

Further, the evolution of tourist traps has been significantly influenced by globalization and the rise of mass tourism. As travel became more accessible and affordable, an increasing number of people from diverse backgrounds began exploring popular destinations. This surge in global tourism created a lucrative market for businesses catering to tourists, leading to the growth of tourist traps around the world.

Trap to Destination?

In response to changing consumer preferences, some tourist traps have evolved to offer more polished and refined experiences while still maintaining high price points.

Modern tourists are often more discerning today and seek authenticity, quality, and unique experiences. To cater to these demands, some tourist traps have rebranded themselves, focusing on improved aesthetics, service quality, and curated experiences.

For example, many historical tourist trap restaurants have undergone renovations to offer upscale dining experiences, complete with gourmet menus and stylish interiors. While these establishments still target tourists, they attempt to justify their premium prices by providing a more sophisticated ambiance and higher-quality offerings. In this way, they begin to evolve from tourist traps to destinations.

However, despite these improvements, the underlying business model often remains the same: capitalizing on tourists’ willingness to pay extra for convenience, and the allure of a trendy or iconic location.

As tourism continues to grow, the challenge for travelers will be to distinguish between genuinely enriching experiences and those that are merely polished traps for their money.

On the flip side, the opportunity for operators is there to curate a concept and brand that delivers on the true promise of an experience, even with higher prices, by providing perception of value and quality service.

Impact on Local Economies

Tourist traps, despite their often-negative connotation, do have a significant impact on local economies in both positive and negative ways. While they can be vital sources of revenue and employment in popular tourist destinations, they also come with drawbacks that can affect the local community and economy.

Revenue Generation

Tourist traps are frequently positioned in areas with high foot traffic, such as locations near landmarks, natural wonders, and cultural sites.

These businesses capitalize on the influx of tourists, generating substantial revenue through the sale of goods, services, and experiences. This influx of tourist dollars can be a major economic boon for regions that rely heavily on tourism, providing a steady stream of income that supports local infrastructure and public services.

Job Creation

The presence of tourist traps often leads to job creation, as these brands require staff for various roles.

This employment can be particularly valuable in regions with limited job opportunities, offering work to locals who might otherwise struggle to find employment.

Contributions to Local Tax Revenues

In many cases, the taxes generated by tourism-related businesses help maintain and develop the very attractions that draw visitors to the area, creating a symbiotic relationship between tourism and community development.

Economic Leakage

One of the major criticisms of tourist traps, however, is economic leakage, from which a significant portion of the money spent by tourists leaves the local economy.

This often occurs when tourist trap businesses are owned by large corporations or non-local entities. This leakage can be particularly detrimental in areas where the local economy is heavily dependent on tourism.

Driving Up Prices

As businesses target tourists who may be willing to pay premium prices, the cost of living in popular tourist areas can increase.

This phenomenon, often referred to as “tourist inflation,” can make it difficult for the local residents to access affordable housing, groceries, and other essential goods.

Crowding-Out Effect

As tourists flock to well-known attractions and establishments, smaller, locally-owned businesses may struggle to compete.

This can result in a loss of cultural diversity and authenticity, as traditional shops, restaurants, and artisans on the outskirts of the tourist area are pushed out in favor of more commercially successful (and convenient) tourist traps.

Changing Perceptions of Travelers

The traditional appeal of tourist traps—often characterized by easily accessible, heavily marketed attractions with high prices and standardized experiences—has waned in recent years.

Modern travelers are increasingly seeking authenticity and immersion, favoring genuine connections with local culture and experiences rather than conventional tourist offerings. This shift has led to a growing demand for unique and meaningful experiences that go beyond the superficial allure of traditional tourist traps.

Rather than flocking to the most popular attractions, they are more inclined to explore local neighborhoods, dine at lesser-known eateries, and participate in cultural activities that provide a more genuine understanding of the place they are visiting.

This trend reflects a broader desire for meaningful travel, where the journey is not just about sightseeing but also personal growth and cultural exchange.

The preference for immersive experiences has also led to an increased interest in activities such as cooking classes, guided cultural tours, and community-based tourism initiatives. These experiences often provide travelers with hands-on opportunities to learn, and participate in local traditions, offering a deeper connection to the destination.

Experiential Travel

The shift in traveler preferences over the past few years has given rise to travel companies that specialize in experiences that are off the beaten path. These experiential companies curate unique itineraries that focus on lesser-known attractions, local interactions, and culturally enriching activities.

For example, companies like Airbnb Experiences and G Adventures offer travelers the chance to explore hidden gems and participate in local customs, far removed from the typical tourist circuit. These experiences cater to travelers who want to avoid the crowds and discover the authentic essence of a place.

Travelers are becoming more conscious of their impact on the destinations they visit. An understanding of cultural sensitivity and sustainable tourism have also gained prominence. Modern tourists are increasingly aware of the negative consequences of mass tourism, such as environmental degradation, cultural commodification, and the displacement of local communities.

As a result, they seek out travel experiences that align with their values, emphasizing respect for local customs and traditions, as well as environmental stewardship.

The shift in traveler perceptions has redefined the concept of tourist traps, and reshaped the tourism industry. Growing demand for authentic and immersive experiences has led to a decline in the appeal of traditional tourist traps, and a rise in alternative forms of travel.

This evolution presents an opportunity for destinations to reimagine their tourism offerings, moving away from the superficial and towards the authentic and transformative.

Personal Experience: Niagara Falls Tourist Trap Restaurant

What inspired this article? On a recent trip to Niagara Falls, a notorious hotspot for tourist traps, my daughter insisted on visiting a well-known restaurant famous for its jungle-like atmosphere.

Despite knowing it was a classic tourist trap, I decided to indulge her curiosity and give it a try. The restaurant’s marketing promises an immersive experience with animatronic animals and lush decor, creating an exciting adventure for families.

However, the reality of the experience fell far short of these expectations.

Upon arrival, we were seated at the furthest table from the main animatronics, which are one of the primary attractions of the restaurant. This placement diminished the ambiance and excitement we were hoping to experience.

The food itself was another disappointment. We ordered a standard burger and fries, as well as fish and chips, both presented in basic diner baskets with checkered liners.

Despite the underwhelming presentation and quality, the bill came to over $68 before beverages, taxes, and gratuity—an exorbitant price for what was essentially fast food.

To top it all off, we waited 22 minutes to pay our bill, further detracting from the overall experience.

Perception vs. Reality

The marketed image of an exciting, immersive dining experience was a stark contrast to what we actually encountered. The atmosphere, which was supposed to be a highlight, was underwhelming due to our seating arrangement. The food, while edible, was overpriced and lacking in both quality and perception of value.

A $32 traditional burger with lettuce, tomato, and onion could at least be presented on a wood board, and $36 fish and chips could at least use fresh fish versus the obvious frozen alternative.

While I understand the seasonality of the tourist area and the need to pay bills in the off season, running what I can estimate as five- to eight-percent food costs is pushing the limit.

Additionally, the long wait to settle the bill only added to the frustration, leaving a disappointed look in my daughters’ eyes. If only there was technology available to book a table near the animatronics, and tech available to allow guests to pay their bills more quickly…

Key Takeaways

This experience highlighted several key issues that often plague tourist traps. The disparity between the marketed image and the actual experience can lead to significant disappointment for guests.

It’s crucial for bars, restaurants, and hotels to set realistic expectations and deliver on their promises, whether in an area with high tourist traffic or not. Marketing should align with the actual experience to avoid misleading guests and creating negative impressions.

Furthermore, providing a high level of hospitality and a perception of value is arguably more crucial these days than ever before, regardless of the location or nature of the concept. Being in a tourist-heavy area does not justify subpar deliverables.

Even if a business is catering to tourists, it should strive to offer quality service, perception of value, and a memorable experience.

Tourist destinations may draw the crowds, but delivering consistent quality and service is key to leaving a lasting, positive impression that will ensure they not only return, but showcase a business on their social channels in a glowing light.

From a traveler’s perspective, while someone may want to make their kids happy like I did, it would be wise to look for more locally-owned restaurants, shops, activities, and boutique hotels that offer a true taste of the area’s culture and community. Engage with locals, ask for recommendations, and be open to the unexpected.

I invite you to share your own experiences with tourist traps with me on Instagram and Linkedin. What tips do you have for finding authentic experiences, both in high-traffic areas and off the beaten path?

Share your stories and insights with me—I’d love to hear from you and continue the conversation about mindful travel, cultural exploration, and providing impeccable hospitality.

Image: DALL-E

KRG Hospitality Start-Up Restaurant Bar Hotel Consulting Consultant Solutions Plans Services

by David Klemt David Klemt No Comments

Soup Season: Transforming Comfort Classics

Soup Season: Transforming Comfort Classics

by David Klemt

Elote en vaso, or vaso de elote, also known as street corn in a cup, on a bar

Elote en vaso or vaso de elote, also known as “street corn in a cup.”

The latest and greatest from Campbell’s Foodservice is all about operators making the most of cooler weather by maximizing soup season.

If you read KRG Hospitality articles regularly, you’re likely aware that we like the helpful information Campbell’s makes available. For example, I’ve written articles that share their tips for leveraging nostalgia, crushing it with LTOs, and 2024 culinary trends.

Their newest tips aim to help operators succeed with soup. Further, much of Campbell’s Foodservice’s tips are in direct response to Datassential and Technomic data. In fact, Campbell’s references Technomic’s Soup & Salad Consumer Trend Report directly.

To be sure, the first bit of advice that Campbell’s shares is the most obvious: Leverage seasonal flavors. In this case, we’re talking fall and winter flavors.

You may already see stores where you live and operate unleashing Halloween decorations. I know I have; it may be 105 degrees in Las Vegas as I write this, but people are getting into an autumnal mood.

Of course, when you take advantage of seasonality for LTOs or menu updates, it’s important to let your guests know.

“Calling out seasonal items on your menu demonstrates the operator is being relevant and using ingredients that are in season,” says Campbell’s Foodservice Executive Chef Gerald Drummond. “From a consumer standpoint, that’s something that they really look towards.”

We agree wholeheartedly. Going deeper, we recommend working with local suppliers to procure seasonal ingredients, and calling that out as well.

Another tip comes from Datassential and Technomic insights. Three in ten younger consumers would like to see soups that feature plant-based proteins. And around half want at least one vegetarian-friendly soup on a menu.

The Standout Tip

When you’re through reading this article, I encourage you to scroll back to the top, click the “soup season” link, and read this Campbell’s Foodservice report for yourself.

That way, you’ll see all of their latest tips for getting the most out of seasonal soups.

However, I’m going to share the tip that stood out the most to me: transforming comfort food dishes into soups. Hence, the image at the top of this article: vaso de elote, or elote en vaso. That dish translates to “street corn in a cup” from Spanish.

Now, elote or street corn is undeniably a comforting street food. If I see it on a menu, I’m going to order it. Were I to see street corn in a cup, particularly if it came with the presentation at the top of this article, I’m going to order it.

So, if a culinary team were to transform street corn in a cup into street corn in a cup of soup, I’m all in.

Think about your concept, the approach to cuisine, and the community you serve. Then, think about the comfort dishes that work well with your concept and resonate with your guests.

In their report, Campbell’s Foodservice recommends beer cheese soup, of which I’m a fan. They also suggest lasagna soup (I’d try it), and chicken pot pie soup (again, I’m down).

Real-Word, Professional Advice

I asked our chef consultant Nathen Dubé for a couple of quick tips for transforming a comforting food dish into a soup. (By the way, you can book a call with him to discuss your menu or kitchen here.)

“I would look at the overall profile of the dish, and then decide if you’re going to combine everything into a puree or a broth,” says Nathen.

Then, the kitchen team needs to decide “which ingredients would be incorporated, and which could be left whole afterwards for texture, and stronger stand-out flavours.” As he explained to me, some ingredients definitely translate better to slow cooking versus finishing towards the end of the process.

With that advice given, take a look at your menu. Do you have some comfort foods that would be intriguing to guests in soup form? What about some of your signature dishes?

Once you’ve determined which dishes to transform into seasonal, LTO soups, engage your kitchen team. They’ll likely be excited to do something new, and show off their culinary talent.

Some people may harbor the misconception that soup isn’t exciting. I think creative operators and culinary teams can disabuse skeptical guests of this notion. Cheers!

Image: Jarritos Mexican Soda on Unsplash

KRG Hospitality. Restaurant Business Plan. Feasibility Study. Concept. Branding. Consultant. Start-Up.

by David Klemt David Klemt No Comments

The Rise of Experimental Gastronomy

The Rise of Experimental Gastronomy

by Nathen Dubé

Experimental gastronomy method of food spherification.

Yes, that’s food. This is an example of spherification, a discipline within the experimental gastronomy movement.

The culinary world has always been a playground for creativity and innovation, but a new wave of chefs has pushed the boundaries even further in recent years.

This movement, known as experimental gastronomy, is revolutionizing the way we think about food.

From molecular gastronomy to avant-garde cooking techniques, experimental gastronomy blends science and artistry to create unforgettable dining experiences.

The Essence of Experimental Gastronomy

At its core, experimental gastronomy is about challenging traditional culinary norms, and exploring new possibilities. Chefs in this field use cutting-edge techniques and unconventional ingredients to create dishes that surprise and delight the senses.

Employing unique techniques allows chefs and their teams to create experiences that go beyond taste alone. These include using liquid nitrogen to freeze herbs instantly, or employing spherification to turn liquids into spheres that burst in your mouth.

Innovative Techniques and Ingredients

One of the hallmarks of experimental gastronomy is the use of innovative techniques that transform familiar ingredients into something entirely new.

For instance, sous-vide cooking allows chefs to cook food at precise temperatures, resulting in perfect textures and flavors.

Another technique, fermentation, is used to develop complex flavors in unexpected ways. Ingredients like edible flowers, seaweed, and insects are also being explored for their unique flavors and nutritional benefits.

  • Sous-vide cooking: This method involves cooking food sealed in airtight bags in a water bath at controlled temperatures. It ensures even cooking, and enhances the food’s natural flavors and textures.
  • Fermentation: Used to develop complex flavors, this technique leverages the transformative power of microbes. Foods like kimchi, kombucha, and miso are products of fermentation.
  • Spherification: This technique, popularized by molecular gastronomy, turns liquids into small, caviar-like spheres, providing a burst of flavor.

The Role of Creativity and Science

Creativity and science are the driving forces behind experimental gastronomy. Chefs often collaborate with scientists and food technologists to develop new methods and ingredients.

This fusion of disciplines has led to groundbreaking discoveries, such as the creation of edible foams and gels. It also encourages chefs to think outside the box, combining flavors and textures in ways that defy convention.

Driving Factors Behind Experimental Gastronomy

Several factors are driving the rise of experimental gastronomy.

  • Unique dining experiences: In a competitive culinary landscape, restaurants strive to offer unique and memorable experiences that go beyond traditional dining.
  • Advancements in food technology: Modern tools and techniques enable chefs to experiment with new cooking methods and ingredients.
  • Sustainability and ethical dining: There is a growing interest in sustainable practices and ethical dining, prompting chefs to explore alternative ingredients and methods that minimize waste and environmental impact.

Food as Art

In the realm of experimental gastronomy, food is not merely sustenance but a form of art. Chefs act as artists, using their creativity to craft dishes that are visually stunning and emotionally evocative.

The presentation of food becomes a crucial element, with each plate designed meticulously to tell a story or evoke a specific emotion. This artistic approach transforms dining into a multi-sensory experience, engaging not just the taste buds but all the senses.

Case Studies of Innovative Dishes

Experimental gastronomy has produced some truly memorable dishes that challenge our perceptions of food.

Below, a handful examples of innovative dishes.

  • Forest Floor: This dish uses dehydrated mushrooms, edible soil, and moss to evoke the experience of walking through a forest.
  • Fermented Seaweed Salad: This dish showcases the complex umami flavors developed through fermentation, highlighting the potential of seaweed as a sustainable ingredient.
  • Edible Balloons: Made from flavored gelatin, these balloons are filled with helium, and can be eaten after inhalation, adding a playful element to the dining experience.

Insights into the Future of Culinary Experimentation

As experimental gastronomy continues to evolve, the future looks promising. With advancements in food technology and a growing interest in sustainable and ethical dining, chefs are exploring new ways to innovate.

The possibilities include:

  • Lab-grown meats: These are developed from animal cells in a lab, offering a sustainable alternative to traditional meat production.
  • Plant-based substitutes: Ingredients derived from plants that mimic the texture and flavor of meat, appealing to both vegetarians and meat-eaters.
  • Pop-up restaurants: Temporary dining establishments that offer unique and immersive culinary experiences, allowing chefs to experiment with new concepts without long-term commitments.

Moreover, the rise of immersive dining experiences, where the environment and presentation are as important as the food itself, suggests that the demand for experimental cuisine is only growing. Restaurants are increasingly using technology such as virtual reality and interactive elements to enhance the dining experience.

Experimental gastronomy represents the cutting edge of culinary innovation, pushing the boundaries of what is possible in the kitchen. Combining creativity, science, and a willingness to take risks helps chefs in this field redefine the dining experience.

As we look to the future, it’s clear that experimental gastronomy will continue to inspire and challenge us, offering new and exciting ways to experience food.

Image: Chef Rudakova on Unsplash

KRG Hospitality menu development. Restaurant. Bar. Cafe. Lounge. Hotel. Resort. Food. Drinks.

by David Klemt David Klemt No Comments

Cultivating Your Food Program

Cultivating Your Food Program: From Farm to Table

by Nathen Dubé

A black-and-white image of a vintage Farmall tractor in a field on a farm

When I think of farms, I think of vintage tractors.

The farm-to-table concept has become a cornerstone of modern cuisine, emphasizing the importance of sustainability, local sourcing, and community support.

Developing a sustainable food program that embodies these principles not only enhances the quality of your offerings but also fosters a deeper connection with your community and the environment.

Come along with me as I explore the steps to create a successful farm-to-table food program, the benefits it brings, and how to overcome common challenges along the way.

Understanding the Farm-to-Table Concept

The farm-to-table movement is rooted in the idea of sourcing food directly from local farms and producers, minimizing the distance food travels from harvest to plate. This approach prioritizes freshness, sustainability, and supporting local economies.

Historically, farm-to-table practices were the norm before the rise of industrial agriculture. The resurgence of this movement reflects a growing awareness of the environmental and health benefits of local sourcing.

My journey into the farm-to-table approach began with a profound appreciation for the origins of food.

Growing up in northern Canada, where hunting, fishing, and visiting family farms were common, I developed an early respect for the land and the bounty it provides. This background fueled my passion for integrating farm-to-table principles into my culinary practices.

Steps to Develop a Farm-to-Table Food Program

Research and Planning

The first step in developing a farm-to-table program is thorough research and planning.

Identifying local farms and suppliers who align with your values is crucial. Building relationships with these producers ensures a reliable and sustainable supply chain.

When I start any farm-to-table program, I spend considerable time visiting local farms, understanding their practices, and establishing partnerships.

Developing a personal connection with producers not only ensures the quality of ingredients but also builds a network of trust and collaboration.

Menu Design and Ingredient Sourcing

Creating a seasonal menu that focuses on available produce is central to the farm-to-table philosophy. This approach celebrates the natural cycles of the land, and offers diners the freshest ingredients.

Incorporating local ingredients into your dishes requires creativity and flexibility. Designing a menu around what is seasonally available can lead to innovative dishes that highlight the best of what each season has to offer.

For instance, one summer, I crafted a menu featuring heirloom tomatoes, fresh herbs, and locally caught fish, creating dishes that were vibrant and full of flavor.

Logistics and Supply Chain Management

Setting up an efficient supply chain for fresh produce involves addressing logistical challenges such as delivery schedules and storage. Maintaining the integrity of fresh ingredients requires careful planning and coordination with your suppliers.

One logistical challenge I’ve faced is the coordination of delivery schedules with multiple local farms. One viable solution has been to establish a central drop-off point, working closely with suppliers to streamline the process. This has helped ensure that kitchens receive fresh produce without compromising quality.

Staff Training and Involvement

Educating your team about the farm-to-table philosophy is essential for the success of the program. Training staff on how to handle and prepare local ingredients enhances their skills and instills a sense of pride and ownership in the program.

During a training session focused on the farm-to-table approach, we invited local farmers to speak about their produce and farming practices. This firsthand interaction helped our team understand the importance of sustainability, and the effort behind each ingredient, fostering a deeper connection to our mission.

Benefits of a Farm-to-Table Program

Quality and Freshness

The most immediate benefit of a farm-to-table program is the enhanced flavor and nutritional value of fresh, local produce. Ingredients that are harvested at peak ripeness and delivered quickly retain their natural flavors and nutrients, elevating the quality of your dishes.

Feedback from guests often highlights the noticeable difference in taste and freshness.

I recall one diner remarking that a summer saladmade with just-picked greens, fresh herbs, and vine-ripened tomatoeswas the best they had ever tasted, attributing the quality to the farm-to-table approach.

Community and Economic Impact

Supporting local farmers and the local economy is another significant benefit of the farm-to-table movement. By sourcing locally, you contribute to the sustainability of small farms, and foster a sense of community.

One program we developed impacted local producers positively by providing them with a stable and reliable market for their products. One farmer shared that our partnership allowed them to expand their operations and invest in sustainable farming practices, demonstrating the broader economic benefits of local sourcing.

Environmental Sustainability

The reduction of a carbon footprint through local sourcing, along with the promotion of sustainable farming practices, are crucial aspects of the farm-to-table movement.

Shortening the supply chain reduces transportation emissions, and supporting farms that use sustainable practices helps protect the environment.

Our commitment to sustainability has not only reduced our environmental impact but also resonates with guests. Many of our patrons appreciate knowing that their dining choices support eco-friendly practices, adding another layer of value to their experience.

Case Studies and Success Stories

Successful Farm-to-Table Programs

Several well-known restaurants excel in farm-to-table practices, setting a benchmark for others to follow.

For example, Chez Panisse in Berkeley, California, is renowned for its dedication to local sourcing and seasonal menus, serving as an inspiration for many chefs. Another example is Blue Hill at Stone Barns in New York, where the farm and restaurant work in tandem to create a closed-loop system that exemplifies sustainability.

These establishments highlight the potential for farm-to-table programs to succeed on both large and small scales.

Personal Successes

Implementing our own farm-to-table programs has been a journey of learning and growth.

One of our notable successes was the introduction of a seasonal tasting menu that not only showcased local produce but also told a story of the region’s agricultural heritage. This menu became a favorite among our guests, and earned positive reviews for its creativity and quality.

Challenges and How to Overcome Them

Seasonal Variability and Availability

Adapting to changes in seasonal produce can be challenging. However, embracing this variability allows for creativity and innovation in menu design.

Strategies for menu flexibility include preserving ingredients when they are in peak season, and incorporating preserved items into the menu during off-seasons.

For instance, during the winter months in the past, I have used preserved tomatoes and pickled vegetables from summer harvests. This has ensured that kitchen teams I’ve worked on in the past continued to offer vibrant and flavorful dishes, even when fresh produce was more difficult to find.

Cost Management

Balancing cost with quality and sustainability is a common challenge in farm-to-table programs. Finding cost-effective solutions without compromising on principles requires careful planning and negotiation with suppliers.

KRG Hospitality’s approach to cost management involves working closely with farmers to plan our purchasing around their production cycles, allowing us to secure better prices for bulk orders.

Additionally, minimizing waste through efficient use of ingredients helps control costs while maintaining high standards.

Conclusion

Developing a farm-to-table food program involves careful planning, dedication, and a commitment to sustainability.

The steps outlined above—research and planning, menu design, logistics, and staff training—are essential for creating a successful program. Enhanced quality, community support, environmental sustainability, and other benefits far outweigh the challenges.

I encourage you to embark on your own farm-to-table journey. By sharing your experiences and joining the movement, you can contribute to a more sustainable and connected culinary world.

The rewarding aspects of farm-to-table practices extend beyond the kitchen. They foster a deeper connection to the food we prepare and serve, enhance our relationships with local producers, and contribute to a more sustainable future.

As we continue to embrace these principles, we can look forward to a future where sustainable dining is not just an option but a standard. Let’s continue to cultivate our food programs with care, passion, and a commitment to excellence.

Image: Sean Stratton on Unsplash

KRG Hospitality menu development. Restaurant. Bar. Cafe. Lounge. Hotel. Resort. Food. Drinks.

by David Klemt David Klemt No Comments

Maximizing a Hotel’s Off-Season

Maximizing a Hotel’s Off-Season

by Doug Radkey

AI-generated image depicting a hotel owner or executive in the lobby of their property

Note: AI-generated image.

Nearly every hotel experiences an off-season during the calendar year, a period of time when they can see occupancy rates drop by as much as 30 percent.

But when did it become normalized to sit back and view this significant dip as acceptable?

With the right strategies, these periods can become opportunities for growth. Or in the very least, reduce the occupancy drop to five or ten percent.

What would that difference do to your annual outcome?

Forecast Your Off-Season

Hotel operators, independent and chain, should be mindful of the off-season, forecast demand effectively, and leverage local opportunities. This change in approach can help hotels develop comprehensive strategies to maximize revenue and occupancy during traditionally slow periods.

Being mindful of this period allows you to develop strategies proactively to mitigate its impact. This approach involves recognizing the specific months or times of year when demand traditionally drops, which can vary significantly depending on your location and target market.

For instance, a beach resort may experience a lull during the colder months, whereas an otherwise busy hotel located in the heart of a large city might see fewer guests during the summer when business travel decreases. Identifying these patterns helps operators better prepare and implement measures to attract guests and maintain profitability during these quieter times.

Effective forecasting involves analyzing historical data to identify trends and patterns in occupancy rates, daily rate, and revenue metrics. Tools such as Atomize, a dynamic revenue management system (RMS), and Mews, a property management system (PMS), can provide valuable insights by processing large amounts of data and highlighting seasonal fluctuations.

Predicting slow seasons accurately gives operators the ability to adjust their marketing strategies, pricing models, and operational plans. Doing so optimizes performance, and minimizes the negative impact of a reduction in demand.

Diversify Your Target Market

One of the most effective strategies for maximizing hotel revenue during the off-season is diversifying your target market. Broadening the scope of a hotel’s potential guests attracts new segments that may not have been the primary focus during peak periods.

This can include targeting niche markets such as wellness travelers, eco-tourists, digital nomads, and local residents looking for staycations. Each of these segments has unique needs and preferences an operator can cater to with specific packages or experiences.

To reach these off-season niche markets effectively, hotels need to create customized marketing campaigns that speak to their interests and needs directly. Personalized, targeted marketing can enhance the appeal of your hotel to these segments significantly.

For example, digital nomads, who seek remote working environments, can be attracted with packages that include high-speed internet, comfortable workspaces, and discounted long-term stays. Marketing campaigns for this segment could highlight the hotel’s co-working spaces, business amenities, and serene surroundings conducive to productivity.

When targeting local residents looking for staycations, campaigns could emphasize the convenience and luxury of a local getaway, offering special weekend packages, family deals, or romantic escapes.

This strategic approach may not only fill rooms but also build brand equity among niche segments, ensuring a steady flow of revenue throughout the year.

Embrace Group Bookings

Group bookings can be an effective strategy for filling rooms quickly, and generating revenue during the off-season.

Targeting groups helps hotels secure multiple reservations at once, thereby stabilizing occupancy rates, and mitigating the impact of seasonal downturns.

Further, group bookings encompass a wide range of categories, including corporate events, conferences, weddings, family reunions, and social gatherings. Each of these groups has specific needs and expectations. Operators can meet these needs through tailored packages that include group discounts, meal plans, and activity options.

Going further, operators can appeal to these groups by partnering with local tour operators and community organizations to promote personalized packages.

Dynamic Pricing Strategies

Dynamic pricing involves adjusting room rates in real-time based on demand, competition, and other market factors.

Leveraging revenue management software and data analytics helps hotels optimize pricing to attract more bookings while maintaining profitability. This flexible approach ensures that room rates are always competitive and aligned with current market conditions, filling rooms that might otherwise remain vacant. These pricing strategies can be extended into bundles and experiences to showcase additional value.

Combining accommodation with additional services and amenities offers more value to guests, making their stay more appealing. These bundles not only enhance the guest experience but also encourage longer stays, and increased spending on-site.

Further, curated experiences can range from culinary workshops and wellness retreats to cultural tours and outdoor adventures. Understanding the preferences of the targeted or niche off-season market should lead to the creation of unique and memorable experiences that go beyond standard accommodation offerings.

For example, a hotel might collaborate with a local chef to offer cooking classes, or with artists to provide guided art workshops. Curating guest experiences not only differentiates the hotel from competitors but also provides added value that can justify higher room rates during the off-season.

Lastly, a dynamic pricing strategy could be used to encourage short-term and long-term stays beyond the typical three- to seven-night range.

For short-term stays, offering discounted rates for extended weekends or mid-week stays can appeal to both leisure and business travelers looking for a quick escape. With long-term stays, hotels can provide special rates and amenities for guests staying multiple weeks or even months. Doing so can attract digital nomads, business travelers on extended assignments, or families relocating to the area.

Strategic Adjustments

Outside of trying to build business, the off-season provides an ideal opportunity for hotels to review and adjust their operations. This ensures they are running efficiently and effectively, and preparing themselves for the next peak season.

During these quieter periods, hotels should conduct comprehensive reviews of operational efficiencies to identify areas where processes can be streamlined.

This may involve analyzing housekeeping routines, front desk procedures, and food and beverage operations to find ways to reduce waste and improve service delivery. Focusing on these improvements enhances overall efficiency, which not only saves costs but also improves the guest experience.

Reviewing and updating standard operating procedures (SOPs) is another crucial task that can be undertaken during the slow season. Hotels can take this time to involve staff in the review process, gathering feedback on current procedures and identifying any gaps or inefficiencies. Updated SOPs can then be communicated and implemented through targeted training sessions, ensuring that all team members are aligned, and equipped to provide the highest standard of service.

The off-season is an excellent time to schedule one-on-one meetings with team members, and comprehensive training sessions that include refreshers on existing protocols, along with introductions to new technologies or service standards. Investing in staff development not only improves service quality but also boosts employee satisfaction and retention.

Technology plays a pivotal role in modern hospitality management, and the slow season is the perfect time to review and upgrade technological systems. Whether it’s enhancing the property management system (PMS), implementing a new guest (customer) relationship management (CRM) tool, or upgrading the hotel’s Wi-Fi infrastructure, these technological improvements can enhance operational efficiency and guest satisfaction significantly.

Additionally, hotels can explore new technologies such as AI-driven analytics and automated check-in systems to stay ahead of industry trends and improve the guest experience.

Review Playbooks

The off-season is a strategic time to review and adjust various playbooks that guide a hotel’s operations and strategy.

Reviewing the Brand Strategy Playbook ensures that the hotel’s identity, values, and positioning remain strong and relevant. Operators can update Marketing Playbooks to reflect new trends and campaigns tailored to attract guests during the next 12 months. Business Playbooks should be assessed to ensure all operational plans align with the current market environment and organizational goals. Financial Playbooks are critical for maintaining financial health, and reviewing them helps identify cost-saving opportunities and areas for investment.

Regularly updating these playbooks maintains strategic clarity and agility, ensuring a hotel remains ready to capitalize on opportunities as they arise.

Utilize the off-season to build occupancy, leverage revenue opportunities, adjust operations, update SOPs, enhance training programs, and upgrade technology. Doing so helps a hotel to optimize its performance.

This proactive approach ensures that when the busy season returns, the hotel is not only coming out of the off-season with better cash flow, but operating smoothly and efficiently, providing an exceptional guest experience.

Image: DALL-E

KRG Hospitality. Boutique Hotels. Resorts. Properties. Consultant. Feasibility Study. Business Plan

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