Inn | KRG Hospitality

April 6, 2022by David Klemt David Klemt No Comments

XDar Vodka Resumes Ukraine Production

XDar Vodka Resumes Production in Ukraine

by David Klemt

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.”

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

New Orleans, Louisiana, architecture in the French Quarter

April 5, 2022by David Klemt David Klemt No Comments

TOTC Launches New Philanthropic Committee

TOTC Launches New Philanthropic Committee

by David Klemt

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

United States Capitol Building at night, black and white

March 9, 2022by David Klemt David Klemt No Comments

Congress is Abandoning Us

Congress is Abandoning Us

by David Klemt

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

Ukraine flag flying against blue sky, perspective shot

February 27, 2022by David Klemt David Klemt No Comments

How Operators Can Support Ukraine

How Operators Can Support Ukraine

by David Klemt

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

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

February 4, 2022by David Klemt David Klemt No Comments

Independent Operators are Making Changes

Despite Challenges, Independent Operators are Making Changes for the Better

by David Klemt

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

United States Capitol Building beneath cloudy skies

January 25, 2022by David Klemt David Klemt No Comments

NRA Sends Survey Results to Congress

NRA Sends Economic Survey Results to Congress

by David Klemt

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

January 18, 2022by David Klemt David Klemt No Comments

US Operators, Take Action Today

US Operators, Take Action Today

by David Klemt

Today is the day to let Congress know the clock has run out on our patience for them act on replenishing the RRF.

In all honesty, the industry’s tolerance for governmental inaction on the RRF ran out last year. Right around the time, I’d say, the RRF application portal closed, leaving almost 200,000 applicants without crucial grants. As a reminder, the portal closed after just 21 days of launching.

Today is the National Day of Action to Save Restaurants. The Independent Restaurant Coalition is leading the charge for this campaign.

To participate, follow the IRC on Instagram, Facebook, and Twitter. Additionally, click here to sign up for their emails. Spread the word and encourage staff, guests, your family members, and friends to take part as well.

Below you’ll find more details for taking action to #SaveRestaurants and #SaveBars today and moving forward.

Industry Advocacy

The IRC has been fighting and advocating for the industry since the start of the pandemic. Today, they’re asking owners, operators, workers in all segments of the industry, communities, and guests to throw their support behind this crucial fight.

So, today is the day to inundate your representatives with phone calls. Dial this number to reach the Capitol switchboard: 202-224-3121. The IRC provides state-specific fact sheets, which can be found here.

For an example of what you’ll find on a state’s fact sheet, here are some details for Nevada:

The leisure and hospitality industry accounts for 87.6 percent of all jobs lost in the state.
In Nevada, the industry is worth $9.9 billion, with 5,980 restaurants and bars throughout the state.

Those are just two pertinent facts about the industry in Nevada.

Along with phone calls, people should contact their representatives via email. Follow this link to email Congress and tell them to replenish the RRF.

Send a Message

Of course, social media will also play an important part in today’s campaign. Flooding Instagram, Facebook, Twitter, and other channels with #SaveRestaurants, #SaveBars, and #ReplenishRRF should get Congress’ attention in a very public, very newsworthy way.

Click here to access the IRC’s social media and website toolkit.

It’s time to let Congress know we’re doing waiting for action. We’re done with the lip service, platitudes, and empty words of support. And we’re done with the broken promises, disarray, and inaction.

Personally, I plan on once again letting my state representatives know that I’m watching. Those who don’t do their jobs and help replenish the RRF won’t be receiving my vote. I can’t support those who won’t support us. Whether you want to send that message is up to you.

Today, however, make your voice heard and send at least this message: We demand Congress acts now.

Image: Rohan G on Unsplash

Unlit hotel sign against blue sky background

December 22, 2021by David Klemt David Klemt No Comments

Hotel Trends to Watch in 2022

Hotel Trends to Watch in 2022

by David Klemt

Partially driven by the pandemic, in part driven by the march of innovation, these are the hotel (and motel) trends to watch in 2022.

As is the case with restaurant and bar trends from the last two years, these trends are likely to quickly evolve into industry standards.

Once slower on the uptake in comparison to other industries, hospitality is now embracing tech innovations rapidly.

Of course, not every 2022 and beyond trend relies on tech. However, most of the big changes involve tech in some way.

Below are the trends (soon to be standards) to watch and adopt next year.

Digital Room Keys

We do everything on our phones. So, why shouldn’t we access hotel and motel room keys via the devices always in our hands or pockets?

Many tech-forward hotel properties have made it possible to unlock hotel rooms via phone apps. As consumers feel more comfortable that it’s safe, secure and reliable, we can expect physical room keys to become obsolete.

One can also make the argument that doing away with millions of plastic keycards is a more sustainable practice.

Your Face is Your Passport

Points* to anyone who gets the movie I just referenced. (*Points have no value and are not redeemable for anything. But we think you’re cool for racking them up regardless.)

Some properties will make it possible to access a hotel room via biometrics. CLEAR travelers will already be familiar with this tech process.

In short, a guest will be able to unlock their room with their face. In terms of personalization—a guest expectation that’s only growing—facial recognition tech can instantly deliver on a guest’s temp, lighting, and other preferences.

I can also see this technology permitting guests to access clubs; club levels; health centers; pool areas; and order and pay for everything from food and beverage to their entire visit.

Of course, this form of tech relies heavily on people’s comfort levels concerning privacy. So, operators will need to prove themselves responsible with guest data.

Touchless Everything

Convenience works both ways. Guests want frustration-free visits. Operators and managers want to eliminate pain points wherever possible.

Guests are becoming familiar and comfortable with checking in via their phones or kiosks. In some hotels, guests navigate the lobby without ever engaging with an employee.

With the proliferation of digital assistants in homes, guests are already comfortable with voice-based functionality. Ordering room service, turning on the TV and streaming, playing music, drawing automated shades, adjust room temperatures and lights… Digital assistants eliminate several more touchpoints.

AI tech also means hotels can operate with smaller teams effectively. So, hotel design is likely to keep evolving: lobbies will look different, as will rooms, restaurants, bars, and other amenities.

Virtual Room Selection

Speaking of AI, what about VR?

Tech-savvy guests will appreciate being able to “tour” different room options in the virtual space. Such a feature can start a guest’s visit off on the right foot before they ever step onto property.

They’ll know they’re getting the features and views they want, setting up a positive experience. It’s likely VR room tours and selection will also help hotels upsell guests on rooms and features.

Cryptocurrency

There are already hotels and resorts out there accepting crypto. There’s no reason to believe this will fall out of favor any time soon.

In fact, it’s likely guests who prefer to pay via digital currency will be able to pay for every element of their visit with crypto. For these guests, a tech-heavy experience will be appealing:

Check out room options via virtual reality before booking;
Book their room in the VR space.
Utilize digital check-in, then unlocking their room via phone or facial scan.
Paying for premium amenities and F&B via crypto ties to biometrics.
Contactless check-out.

Guest Who

Unsurprisingly, business travelers were the first to return to hotels during the pandemic. A percentage of these guests sought out hotels that could offer them a work-from-anywhere option.

For the most part, these guests simply needed a fast, reliable WiFI connection. Of course, many of them chose properties for more leisure-focused amenities. This led to the coining of a new industry term: bleisure, a portmanteau of “business” and “leisure” travelers.

It’s likely hotels, motels and resorts will see more traffic from bleisure, solo, and staycation guests in 2022 and beyond.

Many guests will also make property selections based on a brand or group’s sustainability efforts. So, operators will need to ensure they’re being provably sustainable and not just green-washing to attract these guests.

As we can see, technology will feature heavily in the changing hospitality landscape. Initial outlay may be pricy, but as innovations become more commonplace, costs will be driven down. But offering the features that will increase traffic and guest spend? A healthy bottom line is worth it.

Image: NeONBRAND on Unsplash

November 22, 2021by David Klemt David Klemt No Comments

Build Back Better…Without Restaurants?

Build Back Better…Without Restaurants or Bars?

by David Klemt

The Build Back Better Act was passed by the House last Friday without the inclusion of the Restaurant Revitalization Fund Replenishment Act.

For those keeping count—me, for instance—the RRF Replenishment Act has seen zero movement since June.

We’re now six months without RRF Replenishment progress. The RRF application portal closed on May, 24.

To put it bluntly, the House once again failed our industry.

Of the $1.7 trillion dollars in the Build Back Better Act, zero are earmarked to replenish the RRF.

Applicants in Limbo

According to the National Restaurant Association, there are at least 177,000 RRF applicants awaiting grants.

Unless the RRF is replenished, those applicants will receive nothing.

For six months now, two bills seeking $60 billion to replenish the RRF have languished. Those bills are the aforementioned RRF Replenishment Act and the ENTREE Act.

The former was introduced by a bipartisan group of representatives and senators. Rep. Blaine Luetkemeyer (R-MO) introduced the latter.

Unfortunately, the chance to replenish the RRF via a unanimous consent motion was shot down in August. Sen. Rand Paul (R-KY) objected to $43 billion in emergency funding, killing the RRF.

At this point, it’s difficult to take any statement of support for our industry from members of Congress seriously.

NRA Speaks Out

The same day that the Build Back Better Act passed, NRA vice president Sean Kennedy released a statement.

“We are disappointed that the House passed the Build Back Better Act without including the Restaurant Revitalization Fund Replenishment Act… Passing this bill without including RRF replenishment leaves thousands of small business restaurants teetering on the brink of closure,” reads Kennedy’s statement.

Kennedy also points to specific elements of the Build Back Better Act that can cause further harm to operators and our industry.

In particular, Kennedy states that the NRA “specifically asked Congress to not pass any legislation that would harm restaurants as they rebuild.” Instead, the Build Back Better Act imposes new taxes on small businesses, including restaurants and bars.

Per Kennedy, “this bill newly applies the net investment income tax (NIIT) to active business income for pass-through businesses.”

Read Kennedy’s statement in full here.

It’s possible that the Senate will make changes to the bill. And it’s possible that replenishing the RRF will be among those changes. If that happens, the bill will be sent back to the House, further delaying the crucial assistance our industry needs.

Oh, and the deadline to avoid a government shutdown is December 3.

To tell your lawmakers to replenish the RRF, click here. I know I’ve asked you to do this several times. As frustrating as it’s getting, we need to stick together and keep up the pressure.

Image: Wokandapix from Pixabay

The United States Capitol Building with cloudy sky in background

August 10, 2021by David Klemt David Klemt No Comments

What’s the RRF Replenishment Act?

What’s the RRF Replenishment Act?

by David Klemt

The ENTREE Act isn’t the only bill seeking to replenish the Restaurant Revitalization Fund. In fact, a bipartisan bill predates the ENTREE Act by a month.

So, what’s the difference between that bill and the Restaurant Revitalization Fund Replenishment Act of 2021?

Let’s take a look.

Additional Funding

Clearly, the biggest similarity between the two bills is the amount of money both are after.

Both the RRF Replenishment Act and ENTREE Act seek $60 billion.

As people familiar with the RRF will recall, the fund launched with $28.6 billion. Obviously, that was nowhere near enough funding to meet the demand for grants.

The RRF Replenishment Act was introduced in June by the same bipartisan group that first introduced the RRF. Sens. Kyrsten Sinema (D-AZ) and Roger Wicker (R-MS), and Reps. Earl Blumenauer (D-PA) and Brian Fitzpatrick (R-PA) introduced the bill on June 3.

Per a press release, nearly $50 billion in grant applications were left outstanding. The RRF application portal was closed just 21 days after launching.

$60 Billion

The biggest difference between the RRF Replenishment and ENTREE acts? Sourcing the $60 billion to replenish the RRF.

Per the text of the bill, the ENTREE Act would use unspent funds from the American Rescue Plan and Economic Injury Disaster Loans.

As for the RRF Replenishment Act, the funding would essentially come from “printing” an additional $60 billion.

Clearly, Americans will have differing opinions when it comes how the RRF is funded. However, using unspent, previously allocated funds does seem like a more logical approach.

So far, there’s no word on how these two bills may impact one another. There’s no news about the bills working in conjunction, just as there’s no news yet about a preference for one over the other.

With all eyes on the Senate and the progress of the infrastructure bill, we’re still awaiting answers on the RRF Replenishment and ENTREE acts.

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