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November 14, 2022by David Klemt David Klemt No Comments

Which Cities and States are the Happiest?

Which US Cities and States are the Happiest?

by David Klemt

As an entrepreneur and operator evaluating a market for a first location or expansion, it can help to know where people are happiest.

Equally as helpful: Knowing the cities and states that are the least happy. Not, necessarily, so an operator can avoid these markets.

Rather, one’s concept may be a ray of stress-free sunshine for a given community. Providing a great workplace with a positive culture can work wonders for both the happiest and least-happy places. And as the cornerstones of the communities they serve, restaurants and bars can improve their guests’ quality of life.

We’ve looked at the US cities with the greatest inflow and outflow (which can reveal happiness levels), as identified by Redfin. And we’ve checked out the best US retirement cities, researched by Clever.

Now, we’re taking a look at which US cities and states are the happiest and least happy, according to WalletHub. In case you’re unaware, personal finance site WalletHub researches a vast array of topics. You can browse them here.

Happiest Cities

While determining which are happiest, WalletHub identified the happiest 182 cities. Obviously, that’s a far cry from how many cities are in the US.

According to one source, there 19,495 cities, towns, and villages across the country (per data from 2018). Of those, 4,727 cities have populations of 5,000 or more. A total of 310 cities have populations of at least 100,000, and only ten are home to one million people or more.

So, living in any of the 182 cities WalletHub suggests one is pretty happy. However, these are the ten happiest cities, in descending order:

Fremont, California
Columbia, Maryland
San Francisco, California
San Jose, California
Irvine, California
Madison, Wisconsin
Seattle, Washington
Overland Park, Kansas
Huntington Beach, California
San Diego, California

As you can see, six of the 10 cities are in California. In fact, 29 of the 182 cities on this list are located in the Golden State.

To create their list, WalletHub analyzed several metrics that make up three main categories: emotional and physical well-being; work environment; and community and environment.

Fremont, CA, is number one for emotional and physical well-being. The top spot for work environment goes to San Francisco, CA. And the number-one city for community and environment is Casper, Wyoming, which is number 79 on the list overall.

Least-happy Cities

Again, understanding that there are more than 19,400 cities, towns, and villages in the US alters the context of this list a bit.

Living and operating in one of these 182 cities indicates a person is living in a happy city. Basically, it isn’t the worst place to live if it’s on this list.

At any rate, let’s look at the 10 cities that make up the bottom of WalletHub’s list. Or, the “least-happy” cities, at least as far as these rankings are concerned.

Detroit, Michigan
Gulfport, Mississippi
Memphis, Tennessee
Huntington, West Virginia
Montgomery, Alabama
Cleveland, Ohio
Augusta, Georgia
Fort Smith, Arizona
Mobile, Alabama
Shreveport, Louisiana

Happiest States

WalletHub also ranked 50 states to determine the happiest and least happy. I checked, and, yep, that’s all of ’em! I will say it’s a bit disappointing they didn’t include Puerto Rico, but it isn’t the 51st state (yet).

WalletHub focused on 30 metrics to rank the states, which make up three main categories: emotional and physical well-being; work environment; and community and environment.

In descending order, the happiest states in America are:

Hawaii
Maryland
Minnesota
Utah
New Jersey
Idaho
California
Illinois
Nebraska
Connecticut

Hawaii doesn’t just take the top spot overall, it also claims number one for emotional and physical well-being. Utah takes first for work environment, and community and environment.

Rounding out the “happiest half” of the US are:

Virginia
South Dakota
North Dakota
Massachusetts
New Hampshire
Iowa
Delaware
Florida
Georgia
North Carolina
Wisconsin
Washington
New York
Maine
Wyoming

Least-happy States

Conversely, the following are the least-happy states, starting with the unhappiest:

West Virginia
Louisiana
Arkansas
Kentucky
Alabama
Mississippi
Oklahoma
Tennessee
New Mexico
Missouri

Filling out the least-happy half of the country are:

Alaska
Michigan
Ohio
Indiana
Texas
Nevada
Vermont
South Carolina
Kansas
Arizona
Colorado
Montana
Rhode Island
Pennsylvania
Oregon

In terms of the three metrics WalletHub analyzed, West Virginia is ranked last for emotional and physical well-being. Unfortunately, Mississippi is last for work environment. And Texas comes in last for community and environment.

Image: chaitanya pillala on Unsplash

August 24, 2022by David Klemt David Klemt No Comments

Are You Surveying Your Team?

Are You Surveying Your Team?

by David Klemt

Successful recruitment is only one element of overcoming the current labor shortage—retention is another crucial element.

In fact, employee turnover can be incredibly costly. According to the Center for Hospitality Research at Cornell, employee turnover costs nearly $6,000 per hourly team member.

Now, consider what it costs to hire a single employee. On average, it costs $3,500 to hire that worker in the first place. So, the math is simple: Losing an employee costs an operator more than hiring one.

Unsurprisingly, turnover cost more than doubles—nearly $14,000—for a restaurant manager. In short, employee retention is arguably more important than recruitment and hiring.

Labor Shortage

Per Datassential, 33 percent of 801 survey respondents say the labor shortage is their greatest challenge in 2022. More than 70 percent of those respondents are independent operators.

However, independent, chain, and franchise operators appear to agree on one particular element of the challenge. Across segments, hiring hourly back-of-house employees is the most difficult.

In fact, Datassential’s latest FoodBytes report states that restaurants are coming up short in the kitchen. Two-thirds of restaurants are struggling to fill open hourly cook positions.

So, what’s the solution? Higher starting wages? Bonuses for remaining in role for 90 days? Benefits like health insurance and a 401K?

Each of those does work—for recruitment and hiring. What keeps a new hire from leaving after 90 days with their bonus cash, heading down the road to the next restaurant or bar?

It’s commonly agreed that the first 90 days of a new hire’s employment are the most crucial. Wages and benefits keep them in role for roughly three months. During that time, they’re deciding if their role and the employer’s culture are for them.

Employee Engagement

If you’re an owner, operator, or member of the leadership team, you know the importance of data. In fact, you should be obsessed with data collection and analysis.

Truly, the best way to make decisions that will impact the business is with information. Guesswork just doesn’t cut it. Yes, you should pay close attention to your “gut.” However, you should avoid acting on gut instincts before analysing the relevant data.

Wisely, many operators encourage their guests to complete satisfaction surveys. After all, their feedback is crucial to the success of any business. But what about employee surveys? Your team is equally as important as your guests.

Unhappy team members, unhappy guests. Unhappy guests, reduction in traffic. Team members fleeing your business? Your guests pick up on turnover. Eventually, you won’t have a business.

Now, you can assume your team is happy. You can feel like your leadership team is ensuring employee satisfaction and engagement. Or, you can know.

How do you know? You ask.

Satisfaction Surveys

Call it a satisfaction survey, call it a happiness survey… Either way, you’re asking your team members how happy they are with you and their role.

Operators will likely want to keep these surveys anonymous. Several sources that address employee surveys claim most employees prefer anonymity. Unfortunately, this is due to a fear of retribution from ownership or the leadership team.

Even with a healthy workplace culture, anonymity is probably the best for these surveys. Of course, if you’re implementing a 90-day happiness survey for new hires, anonymity doesn’t make much sense.

As far as company-wide survey frequency, there are several options. Once per year is obviously the bare minimum. Therefore, it’s not very effective. Every six months is better but is checking in on your team’s happiness twice per year enough?

The sweet spot appears to be quarterly surveys. More than that—monthly or bi-monthly—will likely get annoying.

Survey Questions

Below are a few questions to consider for your surveys. You’ll have to decide if you want to use multiple-choice, yes or no, matrix, or open-ended questions, or a mix of each type.

Another consideration is how your team will access the survey. The process needs to be as painless as possible. So, consider pushing a link via your scheduling platform, text, or QR code.

How happy are you working here?
How happy are you in your current role?
Would you recommend us to friends and family as a good place to work?
Does the leadership team make you feel valuable?
Do you see yourself working here a year from now?
Are we helping you succeed in your role?
Are we giving you what you need to progress in your career?

Image: Roman Kraft on Unsplash

June 6, 2022by David Klemt David Klemt No Comments

Back of House Report: The Labor Challenge

Back of House Report: The Labor Challenge

by David Klemt

A recent report from Back of House reveals opportunities for operators amidst the current staffing challenge.

In their report, the restaurant technology platform suggests effective hiring and retention solutions. For example, helping staff find meaning in their work.

To download and access the report in its entirety, please visit BackOfHouse.io.

For some of the platform’s insights into staffing, keep reading.

Why People Leave the Industry

Obviously, people take jobs for a variety of reasons. Often, a person’s first job has one or two motivations: money and/or experience.

Some estimates put a gig in the restaurant industry as the first job for a third of Americans. In Canada, restaurants are the top employers for those under 25 years of age.

However, Back of House sees value in looking at a different metric: Why people leave the industry.

As Back of House states, knowing why someone would leave their job helps an operator determine what benefits to offer to retain talent.

Now, it may be tempting to assume pay is the top reason people leave jobs. Per Back of House, however that’s not the case. Broken down by age group, below you’ll find the reasons people are leaving hospitality:

Pay: 26 to 35
Schedule: 46 to 55
Lack of opportunities: 26 to 35
Lack of benefits: 26 to 35
Work environment: 18 to 25

Look at these issues through the lens of someone moving through life. When first entering the workforce, more people want to find the right employer and workplace. From their twenties to thirties, more concern is placed on moving up, making more money, and receiving benefits. And, per Back of House’s findings, time becomes more of a consideration as people age.

Meaning and Value

Per Back of House, there are two important elements of employment that keep people engaged.

One, meaning in the work they do. In other words, feeling that their work has value. Two, staff want to feel that they’re employers value them.

Of course, both make sense, no? If a person doesn’t see their role in the industry as valuable, they’ll always be looking for the escape hatch. And if they feel that they’re employer doesn’t value them, why would they continue working for them? People, as they say, quit bosses, not jobs.

So, Back of House recommends that operators demonstrate they value their team members by:

investing in their staff;
supporting their staff; and
respecting their staff.

Now, good leaders should already do all of the above. It should go without saying but if someone feels a lack of respect, support, and interest from their employer, they’re not going to remain in their role for long.

And who could blame them? That seems like a terrible workplace and a waste of a hospitality professional’s valuable time. Time, of course, that can be better spent finding a good leader to work for who will help them progress in their career.

There are further insights one can glean from Back of House’s report. To download “Understanding the Staffing Challenge,” please click here.

Disclaimer: Neither KRG Hospitality nor its representatives received compensation to promote this report. The team at KRG simply feels all operators will find value in downloading and reading it, and considering the information contained therein.

Image: Joao Viegas on Unsplash

November 26, 2021by David Klemt David Klemt No Comments

How is Plant-based Performing?

How is Plant-based Performing On-premise?

by David Klemt

With plant-based food options making their way to global fast food chains, it’s clear the category is continuing to heat up.

In fact, it’s likely time to stop referring to plant-based menu items as a trend. Obviously, they’re here to stay.

But how are these items actually performing on-premise? Is the category experiencing real growth or barely noticeable?

“Proliferation”

We’re full throttle into the holiday season. People are focusing on spending time with family and friends.

And what does that mean? Gathering for meals.

So, if restaurant traffic is going to tick up, it makes sense to see if plant-based should be more prevalent on menus.

To that end, Datassential revealed data on this category two weeks ago during their “Holidays Ahead!” webinar. Of four trend-tracking designations—Inception, Adoption, Proliferation, Ubiquity—Datassential notes plant-based menu items are in the Proliferation stage on-premise.

Analyzing data from 2011 to 2021, Datassential showed that the category started growing in terms of menu placement in 2018. As of this year, plant-based items are on nearly five percent of restaurant menus.

That may not seem like impressive growth. However, there was zero-point-zero-percent growth between 2011 and 2014. In 2015 and 2016, Datassential shows that only 0.1 percent of restaurants offered plant-based menu items. That growth doubled in 2017 (0.2 percent), then doubled again in 2018 (0.4 percent).

In 2019, the category quadrupled to inclusion on 1.6 percent of restaurant menus. Last year, that growth more than doubled to 3.5 percent.

According to Datassential, 28 percent of consumers like or love plant-based menu items. Interestingly, the research agency finds that all types of consumers like plant-based items, not just vegetarians or vegans.

The Datassential breakdown of plant-based menu proliferation by restaurant category is as follows:

Fast Casual: 11.5%
Casual Dining: 5.4%
Midscale: 3.9%
Quick Service: 3.4%
Fine Dining: 1.8%

Chains are more likely, at this time, to feature plant-based menu items.

Upscale Options

Wanting to include plant-based options and knowing where to start are two different things.

As it happens, Datassential featured a timely real-world menu to that should inspire operators this season.

Watercourse Foods in Denver, Colorado, offers mains and sides that will resonate with holiday diners:

Seitan Roast (wheat, soy, blend of herbs) which stands in for roast turkey.
Pot Pie consisting of carrots, celery, onions and mushroom.
Root Vegetable Stuffing made with root veggies (obviously), savory herbs, and housemade bread.
Mac and Cheese featuring shells tossed in cheese fondue and topped with shiitake “bacon” bits and breadcrumbs.

As you’ll notice, you don’t need to limit your menu to products from Beyond or Impossible. Obviously, you can leverage their brand recognition but you can also utilize your current plant-based inventory to create housemade menu items.

If you’re ready to embrace plants at your restaurant or bar, activate your kitchen team. With a bit of creativity you can take advantage on the rise in popularity of everything plant-based.

Image: Hermes Rivera on Unsplash