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by David Klemt David Klemt No Comments

This Simple Test Reveals Process Problems

This Simple Test Reveals Process Problems

by David Klemt

Server helping guest in restaurant

There’s an easy way to identify whether there are changes that need to be made to processes and practices that only requires observation and time.

Luckily, it doesn’t take much time, either. In less than a week, an operator can determine if there are issues relating to onboarding new hires.

This simple test was shared during the 2022 Restaurant Leadership Conference in Scottsdale.

Interviews are Just the Start

It should go without saying but here we go: The hiring process doesn’t end with the interview.

An operator or their leadership team found an amazing job candidate? Awesome! That’s no small feat these days.

However, that’s just the first step in hiring and building a rock star restaurant, bar or hotel team.

Step two is onboarding, step three is training, and step four is advancement.

For KRG Hospitality, onboarding goes far beyond filling out federal and state paperwork. There’s more to it than setting up direct deposit and getting a new hire on the schedule.

Rather, operators need to implement a fully developed onboarding process. The key word there is “process.”

True onboarding includes the review of an employee handbook and an introduction to the business. During this process new hires should become familiar with the brand’s history, vision, culture, mission, and core values.

By the end of this process, a new team member should understand what’s expected of them, both in their individual role and behaviorally. Additionally, they should be introduced to the entire team.

In reality, the onboarding process is the development of a professional relationship.

The Test

Technically, the actual test for operators is for them to have in-depth hiring, onboarding and training processes in place.

So, operators should take a moment to review whether they have those processes.

However, the test I’m talking about here relates to onboarding directly. It’s simple and it was shared during RLC 2022 by Jim Thompson, COO of Chicken Salad Chick.

The only requirement is a few days’ time and an observant operator and/or leadership team.

Let’s say a candidate nails the interview. In particular, their personality is perfect for the available role. As the the hospitality industry maxim goes, hire for personality, train for skills.

The new hire works their first shift but their personality doesn’t shine through. However, that could be first-day jitters. Unfortunately, that personality the leadership team hired for is nowhere to be seen during their next few shifts.

According to Thompson, if a new hire’s personality doesn’t shine through within four shifts, there’s likely a process and practices issue. The lack of personality is an indicator that the new team member doesn’t feel confident in their role.

The onboarding process—either too shallow or nonexistent—is a likely culprit. Operators can use this test, a simple four-shift observation of a new hire, to determine if there’s a problem.

Once identified, the operator and their leaders can put their heads together, review the issue, and implement effective, positive change.

Image: Caroline Attwood on Unsplash

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The Uber Effect: Recruit and Retain

The Uber Effect: Recruit and Retain

by David Klemt

Person using Uber app on phone

To better understand how to recruit and retain top talent these days we can simply look at what’s known as the Uber Effect.

We just got back from the Restaurant Leadership Conference in Scottsdale, Arizona. The education was top-notch, featuring a wide range of restaurant industry experts.

One outstanding session illustrates the need for operators—chain and independent—to change their approach to recruiting and retaining staff.

Flexibility in the Workplace

According to Jennifer Grimes, senior vice president of client services for Service Management Group, people in the labor pool are after three things when seeking employment.

Generally speaking, they want better pay, better benefits, and better scheduling. Gone are the days of people focusing only on their paychecks.

And per Jim Thompson, chief operating officer of Chicken Salad Chick, the Uber Effect is largely responsible for this shift in focus. The Uber Effect refers to people realizing they can be much more in control of their careers.

In simplest terms, Uber drivers are in control of their workdays. They can work as often as they want, whatever hours they want, and wear what they want while working.

Of course, it’s not complete anarchy. There are rules, there are expectations, there are standards. However, there’s also flexibility.

Along with more flexibility in scheduling, people want the following:

  • workload balance;
  • ability to trade shifts;
  • better communication; and
  • paid vacations.

Today’s modern scheduling platforms make it simple for operators and their leadership teams to meet these expectations. With these apps, operators and leadership can:

  • assign specific roles to individual team members;
  • communicate clearly with staff;
  • allow staff to trade, drop, and pick up shifts; and
  • fill available shifts.

One Size Doesn’t Fit All

Thompson has an interesting anecdote about availability.

A Chicken Salad Chick manager conducting interviews didn’t proceed with a candidate. Asked by Thompson why they wouldn’t be moving forward, the manager pointed to the candidate’s availability.

During the interview, the candidate provided only a single day and the manager felt that wasn’t enough. However, Thompson disagreed with the manager’s assessment.

What if, Thompson posited Thompson, their availability filled a currently open shift? At least there would be one less shift for leadership to worry about.

But it went deeper than just that point. Good operators and leaders know that job interviews aren’t one-way streets. Candidates are also interviewing their potential employer.

What if this candidate provided limited availability because they’re unsure about a particular employer? They may not know the brand all that well, they likely don’t know the leadership team, and they don’t yet understand the workplace’s culture.

As Thompson says, “One size fits all is over.” Operators and their leadership teams need to be flexible.

It’s highly possible that just a few shifts in, if the narrow-availability team member is a good fit and finds the job engaging, they’ll broaden they’re availability.

Developing the Culture

Of course, the above scenario comes down to culture. And Thompson has an interesting thought on that operational element.

If an operator isn’t constantly developing their culture, it will grow stagnant. Maintaining the current culture isn’t good enough.

Failing to do so will ultimately lead to a decline in guest satisfaction. When that happens, a decline in traffic comes along with it.

It’s really rather simple: How an operator and the leadership team treats employees trickles down to guests. Unhappy and unsatisfied staff provide poor service. How long are guests going to tolerate negative guest experiences?

And no, simply offering competitive compensation doesn’t automatically equate to treating staff well.

“Competitive pay, to me, is the cost of entry,” says Thompson.

To this point, the COO, also the self-appointed chief smile officer, addresses how the restaurant chain respects personal time.

Chicken Salad Chick, founded in 2008, is closed on Sundays. This isn’t due to any religious influence. Rather, the founders, per Thompson, were influenced by what they perceived as a high divorce rate in the restaurant space.

So, the brand wants employees to have family time. That’s also why there stores are also closed by 8:00 PM. In some cases, they close at 5:00 or 7:00 PM. Again, personal and family time.

Could they generate more revenue if they opened earlier and closed later? Probably. However, their culture is crucial to their success.

Takeaway

If operators want to begin the process of truly developing a positive workplace culture, there are several questions Thompson suggests operators and their leaders should ask.

Is the brand purpose driven? Does focus on fun, family, and culture?

How can the business offer incremental value to staff? Are the pay and benefits competitive? Is the workplace safe and are their opportunities for staff to advance?

What’s the community like within the four walls? How’s the energy within those walls?

Are the processes and practices in place helping or hindering recruitment and retention? How can the processes be simplified so employees learn what they need to know quickly?

How flexible is the business, honestly? What’s being done to truly help leadership create better relationships with the team?

Finally, I’ll end on something interesting from Grimes. Analyzing employee engagement, SMG has found that isn’t just about compensation.

In fact, when it comes to what makes most people perceive their job as fulfilling, the top influencer is working with people they like. Second is salary and benefits. Third, rewarding work.

Operators need to adapt to employee expectations, just as they need to focus on those of guests. Sitting down with their leadership teams to discuss Thompson’s questions is a great first step toward developing a culture that works and rewards.

Image: Priscilla Du Preez on Unsplash

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Metallica Supports World Central Kitchen

Metallica Supports World Central Kitchen

by David Klemt

Metallica band member portraits

Metallica is supporting World Central Kitchen to #StandWithUkraine via donations made through their non-profit organization, All Within My Hands.

To start off AWMH’s annual Month of Giving, the band and their philanthropic organization awarded WCK a $100,000 grant. They then donated $500,000 to the humanitarian non-profit founded by Chef José Andrés and his wife Patricia.

However, Metallica and AWMH aren’t done there. The iconic metal band and their non-profit have committed to the goal of donating another $400,000 to WCK.

Additionally, Metallica and AWMH have unveiled the Month of Giving 2022 T-shirt.

 

View this post on Instagram

 

A post shared by Metallica (@metallica)

The shirt can be pre-ordered here (I placed my order last Monday). Proceeds will go to the WCK #ChefsForUkraine campaign. Artist Andrew Cremeans created the brand-new design and donated it to AWMH.

People interested in making a donation to AWMH that will benefit WCK but who don’t want the T-shirt can click here.

All Within My Hands

The All Within My Hands Foundation was founded in 2017. Metallica and the band’s management are the founding members.

James Hetfield, Lars Ulrich, Kirk Hammett, and Robert Trujillo are members of AWMH’s board of directors. In addition, the organization’s advisory board has eight members:

  • Chris Anthony (Salesforce)
  • Howard Ellin (Skadden, Arps)
  • Brenda Goodman (BGood Marketing)
  • Bill Moore (WRVI Capital)
  • Doug Palladini (Vans)
  • Gregg Perloff (Another Planet Entertainment)
  • Michael Rapino (Live Nation)
  • Paula Wagner (Chestnut Ridge Productions)

AWMH’s mission focuses on three crucial pillars:

  • Workforce education with partner American Association of Community Colleges. The Metallica Scholars Initiative is now supported by 23 schools across the US. To date, $4.1 in grants have been awarded.
  • Fighting hunger in collaboration with partner Feeding America. Food banks are a heavy focus of Metallica and AWMH, with proceeds from tour ticket sales going to the fight against hunger.
  • Critical local services with their partner Direct Relief, which is active in all 50 states of America and more than 80 other countries.

#ChefsForUkraine

World Central Kitchen mobilized incredibly quickly in response to Russia’s attack on Ukraine. Initially, WCK set up in Poland.

However, the the hunger-fighting organization has expanded operations to an additional six countries.

Further, WCK is now operating in over 30 cities located in Ukraine. As of this week, the non-profit is providing nearly 300,000 meals daily to those in need.

In staggering news, WCK has provided six million meals to the region in just over a month.

To donate to WCK directly, please click here.

Image: MasterClass

by David Klemt David Klemt No Comments

House Votes to Replenish RRF

House Votes to Replenish RRF

by David Klemt

United States Capitol Building dome in greyscale

Eleven months after the closure of the Restaurant Revitalization Fund application portal, Congress has voted on RRF replenishment.

Earlier today, the House voted “yes” on $42 billion for the RRF via the Relief for Restaurants and Other Hard Hit Small Businesses Act of 2022 (HR 3807).

To clarify, the intent is that funds go to original applicants who were left out when the portal closed.

Neither the $1.7 trillion Build Back Better Act nor the $1.5 trillion omnibus spending bill passed in March included the RRF Replenishment Act.

So, this news is obviously fantastic. However, it’s also long overdue.

We’ve waited nearly 11 months for movement on relief for our ravaged industry. In comparison to the hospitality industry, the legislative process often moves at a glacial pace.

For obvious reasons, the long delay in replenishing the RRF has been devastating.

Nearly a month ago, I wrote and published “Congress is Abandoning Us.” Some considered the article harsh, others agreed with what I wrote.

To be clear, I stand by what I said after ten months of inaction. However, I’m relieved—cautiously—that the House proved their support for our industry today.

$55 Billion Lifeline

In its current form, the House bill would provide $42 billion. This is the amount believed to be enough to award grants to the original applicants from May of 2021.

Additionally, there’s another $13 billion for businesses in other hard-hit industries. So, the House bill provides a total of $55 billion in relief.

Per bill co-author Rep. Earl Blumenauer (D-OR), those who applied last year for the first (and only) round of RRF relief won’t have to re-apply.

Rep. Blumenauer reportedly told Nation’s Restaurant News that “[t]he independent restaurant is the foundation of a livable community.”

Continuing, Rep. Blumenauer told NRN, “We need to have these institutions to provide a foundation for our neighborhoods.”

As far as the source of the $55 billion, the money is supposed to come from funds recovered from 2020 and 2021 pandemic relief programs. This includes billions of dollars stolen through fraudulent relief program claims.

In an effort to combat further fraud and show the public that the funds are indeed going to the correct recipients, the SBA will be required to be transparent about its process.

As it stands, grant recipients will need to spend the funds on eligible uses by March 11, 2023.

Bittersweet

While this is huge news for our industry, it’s somewhat difficult to let go of my frustration fully. The RRF portal opened May 3, 2021. It closed just 21 days later, shutting out an estimated 177,000 grant applicants.

In June of last year, Sens. Kyrsten Sinema (D-AZ) and Roger Wicker (R-MS), and Reps. Earl Blumenauer (D-PA) and Brian Fitzpatrick (R-PA) introduced a bill to replenish the RRF.

That was followed in July by the ENTREE Act, introduced by Rep. Blaine Luetkemeyer (R-MO).

Then, in August, Sen. Rand Paul (R-KY) objected to a unanimous consent motion to fund the RRF. Essentially, after that occurred, it was crickets.

As stated above, when the Build Back Better Act was passed in November, relief for our industry was nowhere to be found.

Given all of this, and the fact that the bill must now go before senators for debate and a vote, I find myself still uneasy about the fate of the RRF.

We often say hope isn’t a strategy. However, I hope our senators do the right thing and pass the relief our industry so desperately needs and deserves.

Image: Joshua Sukoff on Unsplash

by David Klemt David Klemt No Comments

XDar Vodka Resumes Ukraine Production

XDar Vodka Resumes Production in Ukraine

by David Klemt

XDar Vodka distillery in Ukraine

Over the past several weeks, the people of Ukraine have shown the world their resilience, tenacity, and refusal to submit to Russia.

The sovereign European nation has endured attacks and atrocities that began on February 24 of this year. Nearly six weeks since the invasion, Ukraine has resisted and repelled the vaunted Russian military.

There’s no end in sight. The world is learning daily about the atrocities and possible war crimes being perpetrated in Ukraine.

Because of this, any good news coming from Ukraine is welcome.

“Gift of Grain”

Incredibly, Ukrainian distiller XDar Vodka is resuming production. The brand, whose name translates to “gift of grain,” is reopening their distillery.

Now, this is all no small feat: XDar Vodka’s distillery is in the Cherkassy region of Ukraine. So, when I say XDar Vodka is a Ukrainian product, I mean they distill their spirits in Ukraine.

This wheat vodka is made using the region’s artesian water. Impressively, the result is a clean vodka that scored 92 points in the 2016 Ultimate Spirits Challenge.

Further, XDar Vodka flies in the face of the “definition” of vodka. Supposedly, vodka is meant to be odorless, colorless, and flavorless. Not XDar.

Instead, tasting notes include wet sand, floral notes, vanilla, cotton candy, burnt sugar, and a touch of sweetness.

And yes, XDar does have distribution in North America via Liquorum Imports, Inc. In addition, XDar can be purchased through Royal Wine Merchants.

Those who want to try XDar Vodka as well as support this tenacious Ukrainian brand can also place orders through Drizly.

Bittersweet Anniversary

2022 marks XDar’s 20th anniversary. Obviously, this is bittersweet for the brand and its 4,400 employees.

To that point, XDar stopped production when Russia attacked Ukraine. However, the distillery continued to pay its workers.

“The people at XDar are committed to their employees,” says Natalya Kolosok of Liquorum Imports, Inc. “They are some of the strongest people in the world.”

XDar Vodka production line

Now, the brand is resuming production. According to the distillery, XDar is doing so safely. According to a statement from Kolosok, this is in part due to the desires of the distillery’s team.

“The employees, while grateful for the assistance, don’t just want a check, they want purpose,” says Kolosok. “They want to work, which is why, as safely as possible, XDar opened up their facility to resume production.”

That’s resilience. That’s tenacity. And those characteristics exemplify the people of Ukraine.

Images provided by KLG Public Relations

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TOTC Launches New Philanthropic Committee

TOTC Launches New Philanthropic Committee

by David Klemt

New Orleans, Louisiana, architecture in the French Quarter

Continuing their growth and commitment to supporting the spirits and hospitality industries, Tales of the Cocktail announces a new committee.

Formerly known as the Grants Committee, this committee will act as an advisory board to TOTC Foundation. In this capacity, the new Philanthropy & Development Committee will guide decisions regarding the TOTCF’s portfolio of philanthropic endeavors.

In launching the Philanthropy & Development Committee, the TOTCF is responding directly to the needs of the spirits community.

Commitment to Philanthropy

Supporting the industry is a TOTCF cornerstone. This commitment was supercharged when the Solomon Group and Neal Bodenheimer, Jr. took over in 2018.

Upon purchasing the rights, the Solomon family and Bodenheimer, Jr. transformed TOTC into a non-profit. Since then, the organization has developed ways to benefit New Orleans and the spirits and hospitality industries.

One major avenue of support came by way of the TOTCF Grants Committee. Their mission was straightforward and lofty: “to support nascent or existing programs, non-profit organizations, and individuals developing a specific project that will impact the global hospitality community present day and beyond.”

In selecting recipients, the Grants Committee reviewed submissions. Recipients needed to support the TOTCF’s core pillars with a focus on diversity, representation, and inclusivity: Advancement, education, and support.

One such recipient that exemplifies the Grant Committee’s work is Turning Tables. From their website:

“Turning Tables advocates for equity in the hospitality industry by providing mentorship, educational tools, and platforms for exposure in a system of support for the black and brown communities of New Orleans.”

New Name, Bigger Mission

To be clear, the Philanthropy & Development Committee is still offering grants. However, the past two years saw the expansion of the Grants Committee’s mission.

In addition to grants, the committee:

  • provided direct relief to industry professionals;
  • entered into more non-profit partnerships;
  • boosted the number of Beyond the Bar activations;
  • engaged in advocacy and policy efforts;
  • and expanded mental health and wellness capabilities.

Given the evolution of the committee’s work, transforming to the Philanthropy & Development Committee better communicates the mission.

“I’m really excited about this new era of the committee,” says Philanthropy & Development Committee co-chair Kellie Thorn. “While grant-giving will still be a focus, we will now have the opportunity to diversify the way that we serve the drinks community as well as continue to provide thoughtful insight to the Foundation about our industry.”

Continental Drift and Drift Kitchen owner Eric Bennett co-chairs the committee alongside consultant and educator Thorn. The eleven current committee members are:

  • Tiffanie Barriere
  • Chris Cabrera
  • Claudia Cabrera
  • Samuel Jimenez
  • Nandini Khaund
  • Yisell Muxo
  • Lisa Nguyen
  • Chris Patino
  • Vivian Pei
  • Kelsey Ramage
  • Morgan Schick

To learn more about the Philanthropy & Development Committee, click here.

Image: Aya Salman on Unsplash

by David Klemt David Klemt No Comments

Congress is Abandoning Us

Congress is Abandoning Us

by David Klemt

United States Capitol Building at night, black and white

The Biden Administration and Congress have elected to turn their backs on tens of thousands of restaurants and bars.

No funds will be included in the proposed spending bill to replenish the Restaurant Revitalization Fund.

Congress is expected to vote on the massive spending bill this Friday. As has been reported, the RRF Replenishment Act will not be part of this bill.

“Today’s news that Congress is walking away from the RRF is a gut punch to the 177,000 restaurants who now have some incredibly difficult decisions ahead of them,” said Sean Kennedy, executive vice president of the National Restaurant Association.

This abandoning of the industry by Congress doesn’t just affect 177,000 venues.

Generally speaking, the average restaurant in America has less than 50 employees. Cut that number in half to be conservative and 177,000 restaurants employ nearly 4.5 million people.

Essentially, Congress and the current administration have said that well over four million lives simply do. not. matter.

This is to say nothing of the other jobs in other industries lost when restaurants, bars, and other hospitality industry businesses struggle or close.

Currently, Democrats are laying this failure at the feet of GOP leadership. It’s convenient, I suppose, to claim one party objected to the inclusion of the RRF in this omnibus bill.

However, I view this as a failure of every member of Congress. We were promised a vote on the RRF Replenishment Act. That “promise” has proven to be as empty as the supposed support our politicians have been expressing for the industry.

To say I’m unhappy is painfully inadequate.

Should We Be Surprised?

The $1.7 trillion Build Back Better Act was passed by the House last November. Of course, the bill didn’t include the RRF Replenishment Act, either.

It’s clear now that that failure was a harbinger of this latest one. Therefore, it’s clear we’re on our own and must respond at the polls.

Congress has had ten months to replenish the RRF. The closest they came was a unanimous consent motion shot down last August by Sen. Rand Paul (R-KY).

Politicians are already backpedaling, attempting to mitigate fallout, and once again offering meaningless words. Sen. Benjamin Cardin (D-MD) reportedly said the following in response to this news:

“I’ve talked to Senator Schumer already. If we can bring it to the floor as a separate bill, we might do that. We’re not giving up.”

Please. They gave up on us and our industry months ago. As one Twitter user put it succinctly, “Will not happen if it doesn’t go into the omnibus.”

Personally, I don’t see how I can possibly vote for any of Nevada’s current members of Congress. They’ll likely never read this, and if they do they likely won’t care, but these are the people who lost my votes yesterday:

  • Rep. Mark Amodei (R)
  • Rep. Steven Horsford (D)
  • Rep. Susie Lee (D)
  • Rep. Dina Titus (D)
  • Sen. Catherine Cortez Masto (D)
  • Sen. Jacky Rosen (D)

We Go it Alone

As usual, we’re left to look out for ourselves and each other. The problem with constant praise for being resilient, resourceful, and scrappy is that people assume this industry never needs help. Worse, many believe we don’t deserve the help other industries receive.

Well, I think I speak for a lot of the industry when I say we’re tired of being resilient. In fact, I believe Eileen Wayner, CEO of Tales of the Cocktail, said that to me last year before we recorded an episode of Bar Hacks.

Yes, we’re resilient. We’re tough, scrappy, resourceful, adaptable… All of that is true. It’s also true that this industry has endured—and continues to endure and feel the ramifications of—an unprecedented two years. We’re tired and we need help.

It’s clear that help, at best, “might” come. After ten months of waiting, I see that “might” translates from political speak to plain English as, “You’re all on your own.”

Image: MIKE STOLL on Unsplash

by David Klemt David Klemt No Comments

How Operators Can Support Ukraine

How Operators Can Support Ukraine

by David Klemt

Ukraine flag flying against blue sky, perspective shot

It’s normal to feel like there’s not much we can do as we watch in horror as Russia invades Ukraine, but there are ways to show support.

NATO alliance countries are struggling in their responses to Russia. A country with thousands of nuclear arms invaded a sovereign nation without such weapons. The response from NATO nations must be measured and de-escalate, not provoke. Consider that Russia seemingly threatened Sweden and Finland, and put its nuclear deterrence forces on “high alert.”

So, it’s understandable that the rest of us aren’t sure how much of a difference we can make.

However, restaurants, bars, hotels, and other hospitality businesses do have the power to help.

Zirkova Vodka

John and Katherine Vellinga founded Zirkova Vodka around 2016. Initially, the brand was named Slava Vodka.

The Vellingas are Canadians. However, they consider Ukraine their home country. In fact, the two worked in Ukraine for about five years.

During their time in Ukraine, the two worked with brewers and winemakers. Over the course of those five years, John and Katherine decided to create an ultra-premium Ukrainian vodka.

It’s important to note, however, that Zirkova’s mission isn’t simply to create world-class vodka. You can read their full mission statement here.

In part, the brand’s mission statement reads: “Built in the DNA of the brand is a deep-rooted belief in the goodness of humanity, an abiding commitment to freedom and human rights for all.”

Zirkova’s foundation One+Together has raised money for human rights and humanitarian throughout Canada, Ukraine, and New York City.

Now, the brand is donating 100 percent of profits generated from sales of Zirkova at the LCBO to Ukrainian humanitarian funds.

 

View this post on Instagram

 

A post shared by ZIRKOVA VODKA (@zirkovavodka)

It should also be noted that the province of British Columbia has banned the sale and import of Russian liquor products.

Donations

On the topic of donations, operators can support a number of charities that focus on helping the people of Ukraine.

For example, World Central Kitchen. WCK has already mobilized, setting up in Poland to help Ukrainians who have had to flea their homes.

The non-profit organization also has a relief team on the way to Romania as well. Donations to WCK can be made via this link.

If you have a question about the legitimacy of a charity, look it up on a site like Charity Navigator. Unfortunately, bad actors (scumbags) latch onto crises to scam people out of their money.

Rejecting Russian Vodka

Some restaurants and bars are making more assertive statements via the products they’re now willing to sell…or no longer sell.

There are restaurants and bars emptying their inventories of Russian vodkas by dumping them out.

 

View this post on Instagram

 

A post shared by Eric Gladstone (@ecgladstone)

The above post is just one example of operators, restaurant workers, and bar teams taking a stand.

In addition, there are operators seeking to add Ukrainian products to their menus. Will these businesses ever carry Russian products again? It’s far too early to tell, of course.

Individual operators will have to decide if refusing to sell Russian products is the right decision for them. If they choose that path, they’ll need to decide if doing so quietly or publicly is the best approach.

In simplistic terms, too many politicians and leaders are beholden to corporate money and influence. Realistically, as regards Putin, the opposite seems true.

Still, impacting the bottom lines of Russian companies, millionaires and billionaires may have some impact on Putin, though that’s unlikely to lead to peace any time soon.

Interestingly, reports indicate that at least two Russian billionaires have called for peace in Ukraine.

Safe Communities

It’s alarmingly easy for strong emotions to drive just about anyone to make harmful decisions. Fear, sorrow, frustration, and anger are powerful.

We must all remember something incredibly important: The Russian people are not to blame for Russia’s invasion of Ukraine.

One person—along with his inner circle of sycophants and enablers—is to blame: Russian president Vladimir Putin.

Feeling powerless to help the Ukrainian people can lead to feelings of anger. It’s crucial that we not allow violence or harassment of Russian people in our communities.

We can support Ukraine without harming Russian people. Restaurants and bars are pillars of their communities, and keeping people safe is non-negotiable.

Some of us may react to feelings of anger, fear, and frustration by lashing out. We can’t let that lead to violence in our streets.

Do not tolerate harassment or violence in or around your business, and make it clear your business is safe for all guests. The last thing we need now is more divisiveness, harm or fear.

Image: Daria Volkova on Unsplash

by David Klemt David Klemt No Comments

Independent Operators are Making Changes

Despite Challenges, Independent Operators are Making Changes for the Better

by David Klemt

White and red neon restaurant sign that reads "Kitchen Open"

Independent Restaurant Coalition survey results show our industry is still struggling but some operators are making positive changes.

The hospitality industry absolutely needs and deserves help. The Restaurant Revitalization Fund absolutely needs replenishing.

However, hospitality continues to prove its resiliency, adaptability, and innovation.

It must be said, though, that it’s exhausting for owners, operators, and workers to have to constantly be resilient. Sometimes, the industry needs help. It’s past time for help to come.

But, I digress. Back to the IRC and their recently released survey results.

Still Overwhelmed

The IRC surveyed close to 1,200 respondents who are part of the restaurant and bar community. Survey participants represented all 50 states in the US.

Some respondents received RRF grants, some did not. Of course, receiving a grant wasn’t a silver bullet for surviving the pandemic.

However, the grants certainly helped:

  • Nineteen percent of grant recipients took out personal loans since February 2020. In comparison, that number more than doubles to 41 percent for those who didn’t receive grants.
  • Since the beginning of the pandemic, five percent of grant recipients took on additional investors. Again, that number more than doubles for operators who received no RRF grants. Eleven percent took on more investors to survive.
  • Due to the omicron variant of Covid-19, grant recipients had to reduce staff by 21 percent on average. Their counterparts had to decrease staff, on average, by 30 percent.
  • When it comes to selling off a personal asset to help their business survive the pandemic, ten percent of grant recipients did so. For those who didn’t receive an RRF grant, that number increases more than two-and-a-half times to 26 percent.

The challenges—an inadequate word, truly—have led to industry-wide changes. Per the IRC’s survey:

  • Hiring challenges have impacted 91 percent of independent restaurants and bars.
  • Menu prices were hiked up by 89 percent of independent businesses.
  • Nearly half—42 percent—reported to the IRC that they had pivoted to alternate business models after ceasing indoor and outdoor service.
  • Six percent of independent restaurants and bars pivoted to offering outdoor dining only.

Progress Being Made

Operators have been facing hiring challenges for several months now. In response, some operators offer various incentives.

As examples: meals for honoring scheduled interviews; cash for showing up to interviews; large cash bonuses for remaining in position for 90 or more days.

However, none of the above really address longstanding, widespread issues hospitality workers have given as reasons for quitting jobs (and the industry entirely).

To name just two, livable wages and benefits. Despite the challenges operators are facing, they have made positive changes. We’re not talking a small percentage, either.

Per the IRC, independent businesses reported the following changes:

  • 84 percent of restaurants increased wages.
  • 37 percent of restaurants, bars and other independent hospitality businesses added paid sick leave to the benefits they provide.
  • 21 percent of employers have added paid vacation to their benefits.

These changes (and others) are a promising start, showing that operators are listening to workers. Bringing traffic and revenue back to pre-pandemic levels—and beyond—is a great goal. But how will the industry get there?

One answer is for operators to listen to the hospitality professionals they rely on for their businesses to thrive. Listening, and then acting in meaningful ways.

Image: Patrick Tomasso on Unsplash

by David Klemt David Klemt No Comments

NRA Sends Survey Results to Congress

NRA Sends Economic Survey Results to Congress

by David Klemt

United States Capitol Building beneath cloudy skies

On the heels of the IRC’s National Day of Action to Save Restaurants, the National Restaurant Association has sent a letter to Congress.

Sent by Sean Kennedy, executive vice president of the NRA, the letter urges Congress to finally replenish the RRF.

“After two years of closures, COVID-19 variants, worker shortages, and inflationary pressure,” reads the letter, in part, “a dangerous number of restaurants are at the end of the line.”

A Critical Moment

As I’ve written several times (exhaustively, some would say), the bill meant to replenish the Restaurant Revitalization Fund was first introduced in June 2021. We’re now a week away from February 2022.

In August of last year, a unanimous consent vote to provide $43 billion in emergency funding to the industry was shot down by Senator Rand Paul (R-KY). Build Back Better passed the House in November 2021. However, it didn’t include the Restaurant Revitalization Fund Replenishment Act.

As expressed by Sean Kennedy in an email sent yesterday, we’re at a critical juncture. Kennedy points to two dates when making his point: February 18 and March 1.

All government spending expires on the former date, and President Joe Biden delivers his State of the Union Address on the latter date. Kennedy suggests that the only large-scale spending bill of 2022 will be passed between those dates.

So, it’s probable that we have mere weeks to pressure Congress into replenishing the RRF.

The Numbers

Kennedy’s letter to Congress is addressed to Nancy Pelosi (D-CA), Chuck Schumer (D-NY), Kevin McCarthy (R-CA), and Mitch McConnell (R-KY).

Citing the results of the NRA’s largest-ever economic survey, Kennedy urges action on the RRF from Congress. The NRA’s executive vice president estimates that replenishing the RRF will save over 1.6 million restaurant jobs.

Below are the survey results included in Kennedy’s letter to Congress:

  • 88 percent of restaurants saw decline in customer demand for indoor on-premises dining due to the omicron variant.
  • 76 percent of operators report that business conditions are worse now than they were just three months prior.
  • 74 percent of operators say their restaurant is less profitable now than it was prior to the pandemic.
  • Almost 50 percent of restaurant operators who didn’t receive RRF grants feel it’s unlikely that they’ll stay in business beyond the pandemic without a grant.
  • 94 percent of restaurant operators who applied for an RRF grant but did not receive funding said a future grant would enable them to retain or hire back employees.
  • 96 percent of recipients said the RRF grant made it more likely that they would be able to remain in business.
  • 92 percent of recipients said the RRF grant they received helped them pay expenses or debt that had accumulated since the beginning of the pandemic.
  • The initial round of grants, per the NRA, likely saved more than 900,000 restaurant jobs.

Now is not the time to relent—we need to keep up the pressure. If Kennedy and the NRA are correct, we have only weeks to receive the help our industry needs and deserves.

Image: Harold Mendoza on Unsplash

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