Hotel Operations | KRG Hospitality

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July 27, 2021by David Klemt David Klemt No Comments

How SevenRooms Improves Operations

How SevenRooms Improves Operations

by David Klemt

It’s true that SevenRooms is a reservation management platform. However, it’s so much more powerful than that.

Simply put, if the platform wasn’t simple to use and integrate with other systems, they wouldn’t be celebrating their tenth year.

A recent interview via Clubhouse highlights why now, more than ever, operators need to seriously consider SevenRooms.

Background

Guy Clarke, founder of Sizzle Dining, spoke with two key SevenRooms team members in a casual but informative Clubhouse chat.

Allison Page, SevenRooms co-founder and Chief Product Officer, and Marybeth Sheppard, senior vice president of marketing, fielded Clarke’s questions.

Interestingly, Page admits SevenRooms took five to seven years to really fine-tune operations. In fact, she says that the team didn’t quite know exactly what they were offering for the first year or two.

Now, the “reservation” platform has truly hit their stride. The company doesn’t just manage reservations, it provides powerful solutions: a full suite of operational tools; table management; and guest experience and retention capabilities.

Of course, many tech platforms claim to help operators. However, SevenRooms is now enjoying a decade in business.

Their longevity is, in part, due to their approach to hospitality. As Page tells it, the founders didn’t just enter the industry believing they could “fix it” with tech.

Plenty of tech folks have identified problems in hospitality, boasted about their “common sense” solution, and exited after finding out how challenging the business is.

Instead, the SevenRooms team spent time in the trenches. According to Page, they took reservations, checked coats, and more. They spent time with hospitality workers after hours and got to know them.

What’s with that Name?

I’ve written several articles about SevenRooms. However, I’ve never addressed why the founders chose that name.

When asked by Clarke during the Clubhouse chat, Page provided the answer.

Turns out, the name is a loose nod to Graydon Carter’s “Seven Rooms Theory.” The theory speaks to navigating social status in New York City. In short, it posits that the NYC social scene consists of seven consecutive “rooms,” each with a secret door. Find the secret door, move to the next room.

Of course, SevenRooms isn’t about exclusivity. Instead, SevenRooms is helping operators reach the seventh “room,” which is a lasting relationship with a guest. The six previous rooms are a journey toward understanding that guest and making them loyal by delivering incredible guest experiences.

Why SevenRooms Works

If this seems like a shameless plug for SevenRooms, well, it sort of is. They didn’t pay me, Doug or KRG Hospitality to promote the platform; we just like what SevenRooms can do for operators.

In an industry that has until recently been slow to innovate when it comes to tech, the platform has been improving restaurant and hotel operations for years.

According to Page, SevenRooms has a simple operating philosophy that drives the company: “Make small big, make big small.” SevenRooms is driven to help small, independent operations punch well above their weight class. The platform gives independent operators the same capabilities as their large chain counterparts.

Conversely, SevenRooms gives enterprise operators an effective way to deliver the engaging experiences that independents offer their guests.

However, there are other reasons SevenRooms is so worthy of consideration: simplicity.

SevenRooms is all about collecting data. Of course, data does no good if an operator doesn’t know what to do with it. If they had to analyze and leverage it on their own, they’d need to employ data scientists and an entire marketing team.

Well, SevenRooms employs those people instead so operators don’t need to. An operator doesn’t need to be a data scientist to use the information they collect through the platform. Marketing campaigns are automated and engaging, and require little effort from the end user.

Reduce Costs, Increase Revenue

As Sheppard explains, SevenRooms manages and, more importantly, helps maximize a restaurant’s floor.

Looking to increase turns? Done. Want every seat to generate revenue? Smart seating makes that possible. According to Sheppard, SevenRooms’ auto-assign seating functionality is worthy of operators’ trust. Additionally, the platform’s CRM, table management and marketing tools help staff upsell guests.

Speaking of automated functions, Sheppard provides insight into SevenRooms auto-tagging. The platform assigns automated tags that make it simple for staff to understand the guests they’re serving. Some examples are:

Burger lover
Red wine lover
Big tipper
Loves expensive wine
No-showed twice

Just those five examples show how SevenRooms helps operators and their teams maximize the guest experience to generate revenue. So, how does the platform reduce costs?

First, investing in SevenRooms reduces an operator’s overall tech stack investment. It integrates with around 50 POS systems and offers several tools (modules), meaning an operator doesn’t need to purchase several platforms that may not integrate with one another.

Second, the reservation and table management tools streamline an operator’s business. When team members are focusing on revenue-generating tasks, the floor is being sat more efficiently, and guests are being wowed, costs are driven down and revenue is driven up.

Then, there’s the “hidden” benefit. As Sheppard says, hospitality is a passion-driven industry. Unfortunately, there are many “non-passion” tasks that must be accomplished for operators to make money and keep their doors open.

Those tasks can take a toll, leading to an operator to fall out of love with the industry and their own concept. Well, SevenRooms takes several of those tasks (sifting through data, creating marketing campaigns, figuring out how to maximize the floor, etc.) and automates them.

Therefore, operators have more time to program menus, mentor team members, forge relationships with guests by touching tables, and more.

To request a SevenRooms demo, click here.

Image: John Schnobrich on Unsplash

July 19, 2021by David Klemt David Klemt No Comments

Mask Mandates, Recommendations Return

Mask Mandates, Recommendations Return

by David Klemt

Pointing to vaccination hesitation, vaccination refusal, and rises in Covid-19 cases, some cities are mandating masks indoors.

Importantly, mandates and recommendations are coming down irrespective of vaccination status.

Of course, many people are unhappy about this news. Much of the backlash includes the claim that a return to masks proves vaccines don’t work.

However, others point to variants—in particular, Delta—spreading via the unvaccinated and unmasked.

Unfortunately, continuing divisiveness means hospitality and other frontline workers are again at risk for hostile confrontations.

Los Angeles County, California

If you’re an operator in Los Angeles County, masks indoors aren’t just a recommendation. An indoor mask mandate went into effect on Saturday, July 17.

Just a month prior, embattled Governor Gavin Newsom proudly announced California’s unrestricted reopening.

Now, the more cynical among us see Gov. Newsom’s June reopening as a bid to stave off recall efforts. However, recall ballots will go out to Californians next month.

Per reporting, California’s Covid-19 infection rate is close to tripling. Los Angeles County health officials say the indoor mask mandate comes out of an overabundance of caution.

On a different note, health officials expect the state’s vaccination rate to effectively combat a spike in infection rates. The current rate isn’t expected to match or surpass those of prior peaks in the state.

As far as mandate details, it’s quite simple: Masks are required for everyone indoors, regardless of their vaccination status.

According to reports, an additional ten California counties are recommending masks indoors. No word yet on if other counties—or the state as a whole—will announce mask mandates. Nor is there an end date for LA County’s current mandate.

Southern Nevada

While not a mandate, the Southern Nevada Health District is recommending people, regardless of vaccination status, wear masks indoors.

Unsurprisingly, Las Vegas is experiencing an influx of visitors. With vaccination rates on the decline and infection rates on the rise, health officials are concerned.

More than 2.9 million visitors flocked to Las Vegas in May. Clark County, Nevada, which includes Las Vegas, has a population of over two million.

Of course, it’s important to remember that, for now, wearing masks indoors is a recommendation. However, some resorts and casinos—Westgate and the Venetian among them—now require their employees to wear face masks.

So far, neither Las Vegas, Clark County or Nevada have implemented a mandate. Of course, that could change and a mandate may be in the wings.

Orange County, Florida

Much of the news of returning mask mandates and recommendations focuses on Los Angeles and Las Vegas.

In fact, some critics are attacking Nevada Governor Steve Sisolak, accusing him of blindly following Gov. Newsom.

Interestingly, though, is that a mayor in Florida is also recommending face masks.

Mayor Jerry Demings of Orange County recommends wearing masks indoors, vaccination status notwithstanding. The phrasing of the mayor’s announcement refers to the suggestion as an “official recommendation.” However, no mandate is in place currently.

Frontline Risks

Clearly, mask mandates and even recommendations are going to anger some of the population.

Unfortunately, hospitality workers (and those in other public-facing industries) are once again at risk of confrontations. Even without mandates, some businesses that choose to require masks experience hostility.

The last thing America needs is more divisiveness, anger, and potential for confrontations.

Millions of hospitality professionals have left the industry for good. One factor leading to those losses has been concern for safety due to people angry over mask and vaccine requirements.

Obviously, operators must do whatever’s in their power to ensure the safety of their team members and guests. Leadership must not only convey their support for their employees, they must stand behind that messaging with their actions.

In cities where masks mandates and recommendations return, operators need to focus on safety as much as employee retention. Indeed, the former aids the latter, which aids recruiting and hiring.

Image: Daniel Lee on Unsplash

July 14, 2021by David Klemt David Klemt No Comments

Hospitality Labor Shortage not Improving

Hospitality Labor Shortage not Improving

by David Klemt

Surveys and data focusing on the restaurant and hotel employment situation paint a stark picture.

The sobering reality is that operators can’t simply point to the pandemic as the reason they’re failing to fill available positions.

Instead, we need to focus on the problems hospitality workers continue to face.

It’s not going to be easy. However, it can lead to positive change. That change can help the hospitality industry recover and thrive long into the future.

Culture is Crucial

Per several sources, millions of hospitality professionals are washing their hands of the industry.

Unfortunately, foodservice and lodging workers are citing several reasons for the exodus:

Lack of livable wages.
Inconsistent wages.
Stress levels not worth level of monetary compensation.
Lack of benefits.
Lack of mentoring and/or career progress.
Industry volatility, particularly devastating as a result of the pandemic.
Unhealthy lifestyle: Long shifts, late nights, and alcohol and drug abuse.
Cultures of harassment and discrimination.

Obviously, it’s easier to blame labor shortages on the workers. Well, being easier doesn’t make it true.

Industry and workplace culture matters. Employee turnover rates were high long before the pandemic ravaged the planet.

Rather than make excuses, operators need to look at their restaurant, bar or hotel’s culture.

Barking orders and feeling infallible isn’t leadership. Admitting failures and shortcomings—and learning from them and implementing positive changes—is how successful operators lead.

Generic Job Listings

Last week, KRG Hospitality president Doug Radkey asked a simple but poignant question on LinkedIn: Are your job listings just like everybody else’s?

He suggests knocking it off with the old standards:

“Are you friendly, energetic, and highly motivated?”
“Are you an experienced and enthusiastic [insert position]?”
“The ideal candidate must work well in a fast-paced environment and be a team player.”
List of basic job tasks.

What’s appealing about such basic, generic ads? Why would rock star talent be moved to work for operators who post these types of ads?

Instead, Doug suggests the following:

Hire for values, not experience. Training can address systems and standards, not personality and drive.
Operators should be transparent about their core values, company culture, and potential for growth.
Showcase the approach to inclusivity, diversity, acceptance, and flexibility. That is, if that’s authentic. If not, that’s a flashing, neon red flag that requires addressing.
Offer a living wage, benefits, potential for personal growth, and education.
Produce a video of team members sharing why they work at the company. This must be genuine and honest.

A unique approach to ads, hiring and onboarding can lead to an increase in employee retention.

Yes, it’s more comfortable to avoid looking internally for the roots of problems. It’s more comfortable to avoid blame. And it’s more comfortable to point fingers anywhere but at ourselves.

That’s not leadership. And it certainly won’t improve any operator’s situation, nor will it improve the hospitality industry and its opportunity to thrive.

Image: One Shot from Pexels

Pepper hotel concierge robot by SoftBank Robotics

July 2, 2021by David Klemt David Klemt No Comments

Restaurant Tech Map Illustrates Innovation

Restaurant Tech Map Illustrates Innovation

by David Klemt

The hospitality industry’s embracing of new technologies is experiencing rapid and welcome acceleration in less than two years.

In comparison to the restaurant technology map by TechTable and Better Food Ventures from 2019, there are two entirely new categories: Shared / Ghost Kitchens, and Food Safety / Quality.

More than a dozen platforms on the 2021 map from TechTable and Culterra Capital (sponsored by Back-of-House) now fall into those two categories.

Changing Landscape

It’s a sign of current industry trends and what will matter to guests moving forward that ghost kitchens and food safety are emerging as separate tech segments.

Obviously, the pandemic didn’t create the ghost kitchen category. However, it did fuel a meteoric rise in delivery and takeout. In turn, ghost kitchens are more prevalent than ever.

After all, a former Uber executive Travis Kalanick owns CloudKitchens and Applebee’s is testing a ghost kitchen pilot program.

What was once the domain of murky, unpermitted virtual brands is now its own successful business model.

However, today’s guest isn’t concerned solely with convenience. In general, guests now take their health and safety more seriously since the pandemic

Tech platforms that can ensure the food guests are consuming is safe will ease some concerns.

Increase in Platforms

Again, in comparison to just two years ago, the acceleration in new tech for the industry is astounding. It’s also long overdue.

As a whole, the hospitality industry has been surprisingly slow to take on new tech. Although, it’s fair to say that there wasn’t much new to adopt until somewhat recently.

Now that there’s more to try out, operators seem keen to embrace tech that can help them streamline operations; improve inventory monitoring and ordering; hire employees and manage teams; engage with and market to customers intelligently; and much more.

Even better, the above map doesn’t include all of the available platforms. That’s excellent news as it means operators have an increasing number of choices to help improve their business in every category of operation.

For example, Barventory isn’t listed within the Purchasing / Inventory / Ordering segment. The platform makes taking inventory, gaining a real-time inventory snapshot, and efficient ordering a breeze. Barventory also features the world’s first live keg scale.

It’s challenging to find positives from the past 14 to 15 months. However, one good thing may be the leaps in technology our industry is experiencing.

If they continue, these innovations may make it easier for operators and their employees to recover.

A concept’s tech stack is crucial to operations and will only grow more important moving forward. Whether opting for a full KRG Hospitality package or the Mindset program, we can help operators make informed tech selections.

Map by TechTable and Culterra Capital, sponsored by Back-of-House

Featured image: Pepper by SoftBank Robotics (photo by Alex Knight on Unsplash)

July 22, 2020by krghospitality krghospitality No Comments

Hotel F&B in a Post-Pandemic Landscape

Hotel Food & Beverage in a Post-Pandemic Landscape
By Doug Radkey – 07/22/2020

Nearly all of our favorite and most popular travel destinations around the world have been impacted by the Covid-19 pandemic, resulting in a horrendous financial loss for hotels, resorts, and the entire hospitality industry alike.

Research by the American Hotel & Lodging Institution suggests that hotel recovery to pre-COVID-19 levels could take until the year 2023—or perhaps even later with the expected ‘long-term’ loss of business travel and international leisure travellers.

Sadly, many properties have not survived and will not be opening their doors again. Some of those who rely on international travel see little benefit in resuming service while many borders remain closed. And those who are ready to reopen face a very different business environment to the one they were once accustomed to.

There are numerous strategies and alterations to consider moving forward for the operation of a hotel property post-pandemic; but one area that can help properties to regain their guests’ trust plus revenue and profits is that of the food & beverage program.

The Opportunity

For years, one could rely on a hotels restaurant and bar for a steady supply of traditional fare. Hotel food wasn’t necessarily an after-thought, but menus lacked (and in some cases continue to lack) inspiration.

However, in today’s global hotel market; both pre-covid and post-pandemic, a cities best and most innovative and creative food & beverage menu could be found in a hotels restaurant and bar.

But it is not longer just about the food. Hotels obviously have their chef(s) – but moving forward they must also consider a ‘director of mixology’ – even for smaller boutique properties.

Consider for a moment, instead of creating cocktails to match the food menu, doing it the other way around and starting with the beverages. You may be surprised by the results.

This is a secret to a successful, high-profit full-sensory on-premise (and off-premise) program.

While there is significant social and economic changes expected (post-pandemic), there will be a growing and potential multi-billion dollar opportunity for hotels to better cater to guests through their food & beverage options – if the venue can weather the current storm.

As the population regains their confidence to book a hotel stay, guests who visit for either business or leisure may be reluctant to travel to too many spots around town due an ongoing fear that it may not be 100% safe to do so.

Furthermore, many (potential) guests will find their finances dramatically affected by the economic downturn which is now inevitable throughout most of the world, and this will also lead to demand for more affordable cuisine and experiences.

Therefore, a food & beverage program with multiple revenue streams including a balance in pricing found within a trusted hotel that provides a consideration towards a full sensory experience for multiple day-parts is critically important.

Hyper-Local Programming

Hotels today must increasingly try to attract local residents partly because today’s visitors increasingly want to eat where the locals hang out and secondly – because that noted business & leisure travel is expected to be slow for the next 12-18 months.

The food & beverage programs and experiences must shape guests’ understanding of the hyper-local region by supporting local farms, vendors, & culture.

Hotels today and moving in a post-pandemic landscape must promote strong relationships & partnerships with local farmers and producers and introduce their products & flavors to guests in delicious and sometimes, surprising ways.

It is anticipated that hotel guests will expect venues to rely less on imported goods while using more locally-produced items within a 75 mile (100 km) radius due to support local initiatives, the need to embrace the local culture, current (and future) supply chain restrictions, and simply more robust, fresh flavors.

Buffet Pivots

Remember waking up at a hotel and strolling down to the lobby for the breakfast buffet? Sadly, that will be just a memory for most moving forward. It’s likely no secret that it will be a long time before buffets come back. Even with sneeze guards, hotels must (temporarily) shift to à-la-carte menus, made-to-order options, and individually packaged grab-and-go items.

The buffet concept (for breakfast and other day-parts) could also opt to switch to cafeteria-style model instead of self-serve stations (with physical distancing measures in place). Even hotel restaurants with self-serve beverage stations, breakfast bars, salad bars, and a toppings bar will likely need to eliminate these self-serve stations in order to comply with guidelines from both a government point of view and guest sentiment point of view.

These “serving stations” could be individually prepared & plated in real-time by staff from behind the counter which likely means more labor – but providing a safe experience which will win guests over – providing opportunity for further awareness, revenue & profits.

Off-Premise Revenue

Many hoteliers and hotel brands around the world have begun to shift their food & beverage operations amid the pandemic, catering to locals by launching both takeout and curbside pickup options.

With the introduction of this new revenue channel, it is anticipated that it will stick around for quite some time.

Hotel F&B programs must also offer access to more premium grab & go options and also meal-kits. Whether for a day out exploring the city (remember they may be hesitant to stop in a restaurant they don’t know), or on the way to a business meeting, hotels are uniquely positioned to meet guest needs by leveraging their full-service kitchens to supply pre-made meals, snacks, and even F&B experience kits.

Micro-Experiences

From mid-scale to luxury, some hotel brands are taking the resurgence of “at-home” dining to the next level by creating unique F&B packages for micro-groups at the hotel itself.

As an add-on at booking, guests for example can upgrade to a private dining package that includes customized tastings, cooking tutorials, wine pairings, and cocktail making – all in a private space.

For some hotel & resort properties, the often abundance of outdoor space can also provide ample opportunity for seasonal or year-round food & beverage experiences. Picture open-fire kitchens, bar pavilions, and an atmosphere complete with comfortable seating, temperature control systems, and (hopefully) impeccable views for couples, families, and small group gatherings.

Technology Stack

There are a lot of ways technology will enhance hotel operations and experiences moving forward, both in and outside the food & beverage department.

Inside the kitchen, remodels are expected to happen over the next 1-3 years to adhere to the quick-service demand, the demand for the noted new experiences, and the potential lack of qualified staff. This means more self-cooking oven stations, simplified processes, smaller footprints, and smart kitchen technology.

A high level of convenience and contactless service will also be critical on the consumer side, when it comes to on-premise (F&B) room service.

One way to ensure a frictionless experience is through the use of technology.

Approximately one in four hotel guests surveyed by the American Hotel & Lodging Institute, think it’s important for hotels to have 24-hour room service. They want the option to have incredible food and beverage, no matter the time of day.

Post-pandemic, this will still hold true but the service sequence needs to change so that it includes the use of technology and contact-less service, both in the hotel restaurant(s) and in-room. The data shows that one in five guests also want the convenience of ordering with technology – via the hotels app on their phone or even through the TV in their room.

The order can then be packaged & delivered to the outside of the room, to their table in the restaurant, or by having a technology-driven “pick-up locker” in the lobby with mobile phone use to access the food delivered via the hotels kitchen or any third-party delivery partners.

And when it comes to customizing mini bars, 14 percent of guests would choose a hotel where the mini bar is personalized to snack and drink preferences based on the historic data from previous stays or allergies. While some argue the mini-bar is done due to the pandemic – we think hotels just need to personalize it and then make it a point of sanitation between stays.

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Quick summary; hotel food & beverage programs must continuously react, adapt, and execute as consumer demand and sentiment fluctuates; both short-term and long-term while providing both unique one-of-a-kind experiences and brand activations.