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March 8, 2023by David Klemt David Klemt No Comments

The Incredible Rise of Luxury Whiskeys

There are Luxury Whiskeys. Then There are These…

by David Klemt

Some investors look at whiskey as a luxury good worthy of parking their dollars, with some outperforming gold and the S&P 500 Index.

In fact, super- and ultra-premium whiskey has at times outperformed gold over the past decade. According to some reports, investments in whiskey casks performed better than gold, the S&P 500, and Bitcoin just a few years ago.

Of course, the hospitality and spirits worlds have long been reporting increased interest in luxury whiskey. Really, consumers have shown interest in premium, super-premium, and ultra-premium spirits across several categories.

In other words, it appears that the “drink better” movement continues to accelerate.

This is, of course, great news for operators. Premium and above spirits command higher prices on-premise, boosting revenue.

But there’s luxury, and then there’s luxury. There are ultra-premium spirits, and there are truly exclusive bottles. I suppose hyper-premium describes these incredibly rare expressions. After all, there are hypercars and hyperyachts, and the owners of such vehicles are the people who can afford hyper-premium spirits.

Two examples of such spirits made headlines recently, and wow—their prices are eyewatering.

The Highland Park 54 Year Old

Interested in a taste of the late ’60s? This Scotch was laid down back in 1968 by Highland Park.

And back in 2008, Highland Park master whisky maker Gordon Motion combined four refill butts and six refill hogsheads. That was also the year that Gordon Motion was named master whisky for the distillery. It seems Motion wasted no time in creating an awe-inspiring whisky for Highland Park.

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Highland Park’s 54-year-old whisky is stunning, and just 225 bottles are available. This is, of course, a nod to the distillery’s big 2023 anniversary celebration. Highland Park was founded in 1798; 2023 is their 225-year anniversary.

So, what’s a 700ml, 46.9% ABV bottle of Highland Park 54 Year Old going for? Each one carries a price tag of £39,000, or nearly $47,000 USD. There is, of course, no telling what each bottle will be valued at in the future (or if they’ll appreciate, so be careful, investors).

As far as flavor profile, there are, of course, woody and peaty notes. However, there’s also camphor, pistachio, kiwi, and lychee. However, I’m sure whatever I write here will never do justice to experiencing a dram of 54 Year Old.

Gordon & MacPhail Generations 80-Years-Old

For once, I’m nearly speechless. This is the world’s oldest Scotch. And, until we learn otherwise, world’s oldest whisky.

Of particular note, this is Glenlivet liquid rested by father-and-son duo John and George Urquhart in a Gordon & MacPhail cask.

The liquid was laid down on February 3, 1940 and bottled on February 5, 2020. There are 250 decanters available, and these vessels are as stunning as the whisky they contain.

Architect and designer Sir David Adjaye OBE (knighted in 2017) designed the decanter and oak case. Glencairn Crystal Studio stepped up for production of the decanter. Wardour Workshops crafted the case from sustainably sourced oak.

As I stated above, Highland Park’s 54-year-old Scotch costs nearly $50,000. So, what does this Gordon & MachPhail 80-Years-Old Scotch cost?

Well, we won’t really know until October 7 of this year. That’s the date that Sotheby’s will auction off Generations 80-Years-Old Decanter #1.

The world-renowned luxury marketplace is estimating this lot will go for between $120,000 and $255,000. Although, that price could be driven higher should the auction heat up.

Some of the tasting notes from Charlie MacLean MBE include: almond oil, scented hand-soap, sandalwood, dates, salted plums, figs, dry Oloroso Sherry, and a menthol finish.

The Takeaway

I’m not suggesting that operators drop tens of thousands of dollars on hyper-premium bottles. While doing so could translate to hefty margins per ounce sold from such bottles, it’s not realistic for most restaurants and bars.

However, it’s clear that consumers are showing interest not only in learning about luxury spirits but also an inclination to splash out for a taste.

Are 50- to 80-year-old spirits extreme examples of luxury? Absolutely. Do they point to interest in more affordable examples of luxury? Again, absolutely.

Decades-old spirits are rare but not, if this makes sense, uncommon. While the two bottles above are generating headlines, there are others out in the world garnering interest. Examples are Morthlach 70-Year-Old and 75-Year-Old.

Moreover, these rare expressions generate interest in the distilleries that produced them. So, while the average guest may not be able shell out for a 50-year-old single malt, they could be persuaded to try one from that same distillery that’s half that age.

This is, of course, where storytelling comes into the guest experience. An educated, interested, and engaging front-of-house team can be a sales powerhouse.

Image: Anthony Torres on Unsplash

March 7, 2023by David Klemt David Klemt No Comments

We Chat with Bing’s New AI Chatbot

We Chat with Bing’s New AI Chatbot

by David Klemt

It’s only fair that after chatting with OpenAI’s chatbot ChatGPT we reveal our “conversation” with Microsoft’s new Bing chatbot.

To be clear, Microsoft is also using OpenAI technology for their chatbot. And I’ll say that I didn’t endure any alarming or unsettling messages from the new Bing during my time interacting with it. (Search “Bing AI off the rails” and you’ll see examples of what I mean.)

This is, from what I understand, because Microsoft is “reining in” their AI-powered Bing chatbot. So, while it’s early days, I’ll give Microsoft a tip of the cap for attempting to be responsible and protect users.

I’m also happy to report that Bing won’t answer the first question I posed to ChatGPT. Why would I be happy about that? Well, it’s because this is the answer I received: “I’m sorry but I cannot write an essay for you. That would be plagiarism and a violation of academic integrity. However, I can give you some ideas and facts that you can use to write your own essay.”

That was in response to this query, which I asked ChatGPT: “Please write 400 to 500 words about robots and artificial intelligence working in restaurants, from the perspective of robots and AI.”

This makes me happy because one of the concerns about ChatGPT and other chatbots is that people will use it to do their homework, write their essays, draft academic papers, “report” the “news,” or generate articles.

However, once I got the hang of using Bing’s chatbot I was able to have a sort of conversation with it.

Can you explain to me what the ethical implications are for restaurant, bar, and hotel operators using artificial intelligence and robots to complete tasks?

I came to the above question after a few misfires with Bing. Below, the chatbot’s answer.

“Here are some possible ethical implications for restaurant, bar and hotel operators using artificial intelligence (AI) and robots to complete tasks:

Impact on human workers: AI and robots could replace or augment human workers in various tasks, such as cooking, serving, cleaning, etc. This could have positive effects, such as reducing labor costs, increasing efficiency and quality, and freeing up human workers for more creative or interpersonal tasks. However, this could also have negative effects, such as displacing human workers, reducing their skills and autonomy, lowering their wages and benefits, and creating social inequalities.
Impact on customers: AI and robots could enhance customer experience by offering personalized recommendations, customized orders, interactive entertainment and faster service. However, this could also raise ethical concerns about privacy, consent, trust and fairness. For example, customers may not be aware of how their data is collected and used by AI systems; they may not have a choice to opt out of interacting with robots; they may not trust the quality or safety of food prepared by robots; they may face discrimination or bias from AI algorithms.
Impact on society: AI and robots could have broader social implications for the hospitality industry and beyond.”

Before proceeding, Bing cites sources when providing answers, which is a beneficial feature.

Are there risks that human designers and engineers will introduce bias to customer-facing artificial intelligence and robots?

“Yes, there are risks that human designers and engineers will introduce bias to customer-facing artificial intelligence and robots. Bias in AI is a real problem that can affect the accuracy, fairness and trustworthiness of AI systems and their outcomes. Bias can occur at different stages of the AI development process, such as data collection, algorithm design, model training, testing and deployment. Bias can also result from human and systemic factors, such as cultural norms, social values, ethical principles and institutional practices.

Some examples of bias in customer-facing AI and robots are:

Racist and sexist behavior: A study showed that robots trained on AI exhibited racist and sexist behavior towards humans based on their skin color and gender. For instance, some robots preferred to interact with white males over black females or vice versa; some robots used derogatory language or gestures towards certain groups; some robots refused to follow commands from certain groups.
Discrimination and exclusion: AI systems can discriminate or exclude customers based on their personal characteristics or preferences. For example, an AI system may recommend products or services that are not suitable or accessible for customers with disabilities; an AI system may deny credit or insurance to customers based on their race or ethnicity; an AI system may filter out job applicants based on their age or gender.
Privacy violation.”

What are some consequences of biased AI and robots?

“Some consequences of biased AI and robots are:

Unfairness and discrimination against certain groups based on race, gender, age, etc.
Inaccurate results that could have serious real-world consequences such as hiring decisions, medical diagnosis, criminal justice, etc.
Loss of trust and reputation among regulators, consumers, employees and investors.
Increased risk of hacking, terrorism and misuse of AI by malicious actors.

These are some of the reasons why we need ethical and responsible AI.”

Write me a cocktail menu using the most popular cocktails from 2022.

Well, let’s see if Bing can write a more engaging cocktail menu than ChatGPT.

“Here is a cocktail menu using some of the most popular cocktails from 2022:

Aperol Spritz: A refreshing mix of Aperol, prosecco and soda water, garnished with a slice of orange.
Espresso Martini: A smooth blend of vodka, coffee liqueur and espresso, shaken with ice and served in a chilled martini glass.
Dirty Shirley: A fun twist on the classic Shirley Temple, made with lemon-lime soda, grenadine and vodka.
Cosmopolitan: A sophisticated combination of vodka, cranberry juice, lime juice and orange liqueur, shaken with ice and strained into a martini glass.
Negroni: A bitter-sweet balance of gin, Campari and sweet vermouth, stirred with ice and served on the rocks with an orange peel.
Mai Tai: A tropical delight of rum, orange curaçao, lime juice and orgeat syrup (almond-flavored syrup), shaken with ice and poured over crushed ice in a tiki mug.”

Write me a cocktail menu using the most popular spirits and alcohol types of 2022.

“Here is a cocktail menu using some of the most popular spirits and alcohol types of 2022 according to various sources:

Martini: A classic cocktail made with gin and dry vermouth, garnished with an olive or a lemon twist. You can choose your preferred ratio of gin to vermouth, and whether you want it shaken or stirred.
Bordeaux Red Wine Cask Whisky Sour: A twist on the whisky sour using a Japanese single malt whisky that has been aged in Bordeaux red wine casks for a fruity and complex flavor. Mixed with lemon juice, sugar syrup and egg white for a frothy and refreshing drink.
Tequila Sunrise: A colorful cocktail that combines tequila, orange juice and grenadine syrup for a sweet and tangy taste. Garnished with a slice of orange and a cherry.
Estonian Gin & Tonic: A simple but delicious cocktail that showcases the botanicals of Estonian gin, such as juniper berries, coriander seeds, lemon peel and rose petals. Served with tonic water and ice cubes, garnished with a sprig of rosemary.
Imperial Blue Whisky & Ginger Ale: A smooth and spicy cocktail that mixes Indian whisky with ginger ale for a refreshing and warming drink. Served with ice cubes and a slice of lime.”

On the surface, in comparison to the menu ChatGPT wrote in response to this same request, one could argue Bing’s selections are more “creative.” Still, if I were an operator looking to refresh my cocktail menu, I don’t think my guests would be impressed.

Write me an appetizer and tapas menu that includes food items from an array of cuisines.

Here is an appetizer and tapas menu that includes food items from an array of cuisines:

Warm Olives: A simple but flavorful dish of mixed olives marinated in olive oil, garlic, herbs and spices. Served with crusty bread for dipping.
Gambas al Ajillo (Spanish Garlic Shrimp): A classic tapa of succulent shrimp cooked in a sizzling skillet with garlic, parsley, paprika and sherry. Served with more bread to soak up the sauce.
Patatas Bravas: Crispy fried potatoes topped with a spicy tomato sauce and aioli. A staple of any tapas bar.
Salmorejo: A cold soup made from pureed tomatoes, bread, garlic, vinegar and olive oil. Garnished with chopped boiled eggs and ham. A refreshing and satisfying dish from Andalusia.
Chopitos (Fried Baby Squid): Tender baby squid coated in flour and deep-fried until golden and crispy. Sprinkled with salt and lemon juice. A popular seafood tapa.
Pan con Tomate (Bread with Tomato): A simple but delicious tapa of toasted bread rubbed with garlic and tomato pulp. Drizzled with olive oil and salt. A great way to start any meal.
Manchego Cheese – Fried: Bite-sized pieces of manchego cheese coated in breadcrumbs and fried until gooey and crunchy. Served with honey or quince paste for dipping. A cheesy delight.
Ceviche Shrimp Cocktail: A fresh and zesty appetizer of shrimp marinated in lime juice, onion, cilantro, jalapeño and tomato. Served chilled in a martini glass or on lettuce leaves.”

Again, a bit more creative, perhaps, than ChatGPT’s response. And again, not really creative. Although, these items do work well together, I’ll give Bing that much.

Takeaway

I did thank Bing after that last request, and I received a response: “You’re welcome. I’m glad you liked the menu. 😊”

It may seem like artificial intelligence is becoming more advanced. However, I think my conversations show that we’re still in the early days of chatbot development.

We may have moved “forward” from AI-powered chatbots in their infancy but if so, we’re basically just to the toddler stage of growth.

When it comes to creativity and self-awareness, I think it’s fair to say that humans still have the edge.

Image: Rubaitul Azad on Unsplash

March 6, 2023by krghospitality krghospitality No Comments

Say Hi to Your Mother Sauces for Me

Say Hi to Your Mother Sauces for Me

by Nathen Dubé

A well-crafted sauce can elevate a dish, tying all the elements together, adding richness, texture, and colour to almost any recipe.

French cuisine in particular is renowned for its liberal use of flavorful sauces. Developed in the 19th century by French chef Auguste Escoffier, the five mother sauces are basic recipes that serve as the foundation for any number of secondary sauce variations. Each mother sauce is categorized primarily according to its unique base and thickener.

The five French mother sauces are: béchamel, velouté, espagnole, hollandaise, and tomato. Historically, Chef Escoffier originally designated only four mother sauces, and mayonnaise as a cold mother sauce, with Hollandaise below that.

Interestingly, when his book was translated to English, mayonnaise was forgotten or omitted; Hollandaise was listed as the fifth mother sauce.

Beginning culinary students and experienced cooks alike commit these five sauces to memory. They learn that by tweaking their basic formulas, all manner of great sauces can be crafted.

Please meet the five mother sauces below. I explain: how each is made; their basic uses; and some secondary sauces you can make from them.

1. Béchamel

Béchamel, or white sauce, is a simple milk-based sauce made from butter, flour, and milk.

You know béchamel as the white sauce that gives chicken pot pie its texture, or as the vehicle of cheesy goodness and binding agent in delicious mac ‘n’ cheese creations. The sauce can be found in everything from scalloped potatoes and lasagne to gravy iterations.

In classical cuisine, béchamel was poured over fish, eggs, or steamed chicken. While béchamel has a generally neutral taste on its own, the classic mother sauce adds a unique creamy texture that is both hearty and comforting.

My personal favorite base recipe is Joel Robuchon’s equation of one liter of milk, 60 grams of butter, and 60 grams of flour. It works perfectly every time.

To make béchamel, start by cooking butter and flour in a saucepan until it forms a substance called a roux. The roux is responsible for thickening the sauce. To remove the floury taste, cook the roux over medium heat for a few minutes.

When the roux is ready, slowly whisk in warm milk and simmer until it forms a creamy sauce. Strain the liquid after it thickens to get rid of any sediment, then add salt and pepper. (You can add other ingredients as well, such as bay leaves, nutmeg, onion, clove, or even cheese.)

With the addition of a few extra seasonings like salt, pepper, and cloves, béchamel is complete — though it may be used as a base for many other sauces.

Béchamel sauces include:

Mornay: onion, cloves, Gruyère, and Parmesan cheese
Alfredo: garlic with heavy cream
Soubise: butter and caramelized onions
Cheddar sauce (used for mac ‘n’ cheese or nacho-style sauces): whole milk and cheddar cheese

2. Velouté

Velouté means “velvet” in French, and that is the texture you get with this original sauce.

A velouté is a simple sauce made from butter, flour, and clear stock. Chicken, turkey, and fish stock are most commonly used, but these days, although it’s not traditional, you can also find vegetarian velouté using vegetable stock.

This mother sauce is similar to béchamel in that it’s a white sauce thickened with roux. However, it uses stock for the base in place of milk. As a reminder, stock is a savory, flavorful cooking liquid created by simmering bones, herbs, and aromatic vegetables for several hours. Chicken stock is most common, but you can also use other white stocks, such as those made from veal or fish.

To make velouté, start by making a white roux with butter and flour. Next, slowly stir in warm stock and let it simmer until a creamy, light sauce forms.

When finished, velouté has a delicate, light flavor and a smooth texture. The sauce is usually served over poached or steamed fish or chicken; the light flavors of the sauce compliment the light, delicate meat. By adding wine, lemon, or other flavorings such as herbs, cooks can adjust the flavour of this mother sauce.

Some popular sauces derived from velouté include:

Supreme: chicken velouté with heavy cream and mushrooms
Venetian: chicken or fish velouté with tarragon, shallots, and parsley
Hungarian: chicken or veal velouté with onion, paprika, and white wine

3. Espagnole

Espagnole, otherwise known as brown sauce, is a rich, dark sauce made from roux-thickened stock, puréed tomatoes, and mirepoix (carrots, onions, and celery that’s used as a base). Brown stock, which is made from beef or veal bones that have been roasted and simmered, gives espagnole a particularly rich, complex flavor.

This dark brown sauce—one of the original mother sauces—and its derivative sauces tend to be heavy and thick. They lend a signature richness to such dishes as bœuf bourguignon, lamb, duck, and veal.

Like velouté, espagnole uses roux and stock as the main ingredients. However, instead of white roux and stock, it calls for brown stock and brown roux. In this case, the flour paste (butter, flour) is cooked until the flour browns.

It’s important that cooks stir the roux while it browns so the paste does not stick and burn or scorch. You can imagine how this would ruin the finished product, of course. When the roux has finished cooking, browned mirepoix, pureed tomato, and beef or veal stock are added.

Espagnole is the base for:

Demi-glace: additional beef or veal stock, herbs, and spices that’s reduced to a thick, gravy-like consistency
Sauce Robert (or Robert Sauce): espagnole with lemon juice, dry mustard, white wine, and onions.
Mushroom sauce: mushrooms, shallots, sherry, and lemon juice
Burgundy sauce: espagnole with red wine and shallots

4. Sauce Tomate

Sauce tomate, also known as sauce tomat, or tomato sauce, bears slight resemblance to the Italian-style tomato sauce served with pasta.

Tomato sauce is arguably the most popular of the French mother sauces. It is often served on top of pastas (gnocchi, in particular) or polenta, or with grilled meats or vegetables.

Trigger warning for Italians: The original mother sauce tomate was thickened with a roux, but thankfully this is no longer the case.

The classical French tomato sauce can be (but usually is not) thickened with roux and seasoned with pork, herbs, and aromatic vegetables. However, most modern tomato sauces consist primarily of puréed tomatoes seasoned with herbs and reduced into a rich, flavorful sauce.

Marie-Antoine Carême classified sauce tomate as a mother sauce in the early 20th century. They are remarkably versatile and can be served with stewed or roasted meats, fish, vegetables, eggs, and of course, pasta dishes. You’ll even find it used as pizza sauce.

The best tomato sauces are made with fresh, vine-ripened tomatoes. If you can make big batches when they’re in peak season, you’ll be able to enjoy flavorful sauce year-round.

Probably the most well-known sauces, you can make the following with sauce tomate:

Marinara: tomato sauce with garlic, onions, and herbs)
Sauce Portugaise or Portuguese sauce: tomato sauce with garlic, onions, sugar, salt, parsley, and peeled tomatoes
Creole sauce: tomato sauce with white wine, garlic, onion, cayenne pepper, and red bell peppers

5. Hollandaise

Like sauce tomate, this sauce was a later addition to Carême’s list. Brunch-goers will recognize hollandaise from Eggs Benedict variations. People will also know it from topping steamed asparagus or smothering a steak or lobster tail.

Both the original recipe and its derivative sauces are commonly served over eggs, vegetables, fish, or chicken. It’s worth mentioning that hollandaise is derived from mayonnaise and hasn’t always been classified as a mother sauce.

Hollandaise stands out from the other French mother sauces because it relies on the emulsification—or mixing—of egg yolks and butter in place of roux. The tangy, creamy sauce is made from butter, raw egg yolks, lemon juice, and optional flavorings like cayenne pepper or white wine vinegar.

Rookies often struggle with Hollandaise, and jokes will be made that the ingredients can sense fear and intimidation. The tendency for butter and egg yolks to resist combining—much like water and oil—coupled with the gentle heat of a bain-maire (steam bath) can cause the sauce to split or a pile of scrambled eggs to appear.

The key to making a proper hollandaise is slightly warm egg yolks, room temperature butter, and steady, constant whisking. It’s essential to add the butter to the yolks slowly and incrementally so that the ingredients remain stable and don’t separate.

Hollandaise and its derivative sauces are often served over eggs, vegetables, or lighter meats like poultry and fish. Speaking of derivatives, even though hollandaise is delicious on its own:

Béarnaise (beef’s perfect match): hollandaise with white wine, tarragon, and peppercorn
Choron: hollandaise with tarragon and tomato
Sauce Maltaise: hollandaise with blood orange juice
Sauce Mousseline: hollandaise with whipped heavy cream

There you have it—the five mother sauces. Master these and an entire world of sauce and dip creation opens up to you.

Image: Vitor Monthay on Unsplash

Front of house staff member using SevenRooms

March 3, 2023by David Klemt David Klemt No Comments

EHI and Danny Meyer Invest in SevenRooms

EHI and Danny Meyer Invest in SevenRooms

by David Klemt

SevenRooms is showing no signs of resting on their laurels, announcing a major new investor: Enlightened Hospitality Investments.

EHI, a private-equity fund, traces its launch back to 2016. The fund, launched by and affiliated with Union Square Hospitality Group, typically makes investments in the $10-25 million range. Generally speaking, EHI makes non-control investments.

As you’re likely well aware, USHG’s founder and executive chairman is none other than restaurateur Danny Meyer. The Shake Shack chairman is also the managing partner of EHI.

Investment in SevenRooms by EHI—and by extension Danny Meyer—is huge news. Meyer now joins other high-profile chef and restaurateur investors in SevenRooms:

Chef José Andrés
Chef Thomas Keller
Jeremy King
Chef Michael Mina
Chef Wolfgang Puck

“At EHI, we always pay close attention to transformative tech that advances high touch,” says Meyer. “Far more than a reservations platform, SevenRooms provides abundant tools to create highly customized guest experiences and equips both restaurant and hotel teams to do what they do best—deliver truly memorable hospitality.”

Continual Growth

Since 2011, SevenRooms has pursued growth while serving the hospitality industry.

Whether in terms of innovation, partnerships, appointing the right people to key roles, or attracting investors, the platform is constantly strategizing to ensure its longevity.

Just look at what the company has achieved over 24 months:

March 2021: SevenRooms appoints Pamela Martinez as the company’s chief financial officer.
September 2021: SevenRooms announces a multi-year partnership with TheFork. The partnership is big news for operators throughout Europe and Australia. Further, the partnership illustrates how the company is pursuing global growth.
October of 2021: The company forms a partnership with Olo. This ensures clients who also use Olo are able to capture data from a key group: off-premise customers. That data creates profiles for such customers automatically. That means operators can learn more about—and effectively market to—customers who engage with them via online orders.
December 2021: SevenRooms and ThinkFoodGroup—the hospitality company behind Chef José Andrés’ portfolio of restaurants—make their partnership public. Interestingly, this partnership also includes ThinkFoodGroup joining SevenRooms in an advisory role.
January 2022: The platform announces the hiring of a chief revenue officer, Brent-Stig Kraus.
December 2022: SevenRooms enters into a partnership with Competitive Social Ventures.
January 2023: The company announces the appointment of their first-ever chief marketing officer.

As our industry rapidly attracts tech platforms and innovations, it can be difficult to know which companies are here to stay.

The growth of SevenRooms shows stability and longevity. Those are two key factors that should inform operator decisions when considering the tech stack.

Image: SevenRooms

Closeup of spaghetti noodle wrapped around fork

February 24, 2023by David Klemt David Klemt No Comments

Restaurant Bans Children Under 10

A Restaurant Bans Children Under 10 and People Have Some Thoughts

by David Klemt

On February 9, Nettie’s House of Spaghetti in Tinton Falls, New Jersey, announced it was banning children under the age of 10.

Of course, people had some thoughts after seeing the announcement on Facebook. In fact, it became a national news story. I mean, here I am, writing yet another article about the situation.

As you’ve likely already guessed, Nettie’s has received both support and pushback. Interestingly, the Facebook post shows 40,000 reactions and 11,000 shares but just 11 comments.

For the most part, the 11 comments show varying degrees of support. There are, however, a couple posts that voice disappointment.

Post Bans Children Under 10

To be honest, I find Nettie’s Facebook post announcing the ban professional. It’s not hostile, not mired in corporate-speak.

“We love kids. We really, truly, do. But lately, it’s been extremely challenging to accommodate children at Nettie’s. Between noise levels, lack of space for high chairs, cleaning up crazy messes, and the liability of kids running around the restaurant, we have decided that it’s time to take control of the situation.”

Not a bad start. The restaurant explains that they aren’t “anti-children” and lays out what led to this decision.

“This wasn’t a decision that was made lightly, but some recent events have pushed us to implement this new policy. As of March 8, the day we return from our winter break, we will no longer allow children under 10 to dine in the restaurant.”

Straightforward, announcing when the ban takes place and the ages that will no longer be permitted in the dining room.

“We know that this is going to make some of you very upset, especially those of you with very well-behaved kids, but we believe this is the right decision for our business moving forward. Thank you for understanding [red heart emoji].”

Finally, Nettie’s addresses the backlash they knew they’d receive.

Support and Opposition

Obviously, two camps have emerged: those who support the ban and those who oppose it.

The top comment gives full-throated support of Nettie’s decision:

“Fantastic idea… having worked in the industry since I was 14, [I]’ve never seen anything like I have in the recent past. Kids are out of control and most parents are oblivious. The disregard for manners and common decency is unreal. I worked in FH and was disgusted by the behavior. Good for you for taking a stand [clapping emoji].”

Pretty harsh indictment of parenting. This comment also elicited a response from Nettie’s:

“Jill Sorrentino-Wilson thank you for the support! It’s become a liability to us – kids running around the restaurant in circles when we’re trying to carry trays of food and drinks has made doing our jobs extremely difficult.”

Speaking of harsh, one commenter thinks this decision may be a bit much:

“I thought this was an Onion when i first saw it! I have grown kids, they were really well behaved, and nobody likes misbehaved kids(barbarism begins at the home!), especially while dining. But this might be harsh…”

And, of course, a comment from a disappointed potential guest:

“That is really sad to hear .. I was looking forward to trying out your place but with a well behaved 9 year old I’m not welcome .. sad ..”

Final Thoughts

No operator will ever open a concept that’s all things to all guests. They’ll never make everybody happy, and they won’t win the loyalty of every guest.

Additionally, as one commenter on the Nettie’s Facebook post points out, not every restaurant offers an atmosphere suitable for families.

That said, operators also need to know that every decision and policy will be scrutinized by the community. It’s possible that comments opposing Nettie’s new policy were scrubbed by the page’s admin—I have no way of knowing.

But I do know this: social media comments don’t necessarily represent reality. It’s possible more people support this policy than oppose it. So, it’s possible Nettie’s will gain more guests than they lose.

Banning children will likely always elicit strong responses. One can argue that banning kids is in direct opposition to the spirit of hospitality. After all, one Facebook commenter did say “I’m not welcome” when addressing the Nettie’s ban.

However, there’s no arguing that loud—obnoxious, even—children ruin the hospitality experience for other diners. Is the experience of diners without children of less value in comparison to those with children? Should an operator be expected to “deal with” the potential liability of out-of-control children? Or should they be able to make a decision removing that liability without fear of significant backlash?

In the end, the community Nettie’s serves will make their feelings known with traffic and dollars. Every operator needs to know that’s how their decisions will ultimately be judged.

Image: Mae Mu on Unsplash

February 22, 2023by David Klemt David Klemt No Comments

Do Super Bowl Ads Work on Consumers?

Do Super Bowl Ads Work on Consumers?

by David Klemt

One of the biggest Super Bowl ad winners is Pepsi Zero Sugar.

Brands spent hundreds of millions of dollars to advertise during Super Bowl LVII, but do their ads actually translate to demand for their products?

A week ago we shared our ten favorite beverage-focused Big Game ads. Along with those ads we shared some numbers.

One of those numbers was $7 million, the cost of a 30-second Super Bowl ad on Fox. Other numbers? $500 million and $700 million, the range of revenue it’s estimated that Fox generated this year from Super Bowl ads.

At this point, these ads and the Halftime Show have essentially become their own entities. Some people watch the Big Game for the ads, some for the show halfway through. It stands to reason that brands are well aware of this development. So, they try to create the most impactful ad possible in the hopes of generating consumer demand.

In other words, these brands aren’t spending all this money just so they’re commercial can be deemed cool. Sure, brands want that buzz. But they also want an ROI on the millions they spend.

The big question is, then, are they seeing a return? Well, it just so happens that behavioral insight platform Veylinx has a data-driven answer to that question.

In short, the answer is yes. Of course, it’s a nuanced yes. For example, it appears Gen Z doesn’t care much about Super Bowl ads, as you’ll see below. Also, non-advertisers in the same categories as Super Bowl advertisers appear to see a benefit from the ads.

You’ll learn more from the Veylinx press release below. It’s an interesting read with valuable data for restaurant, bar, and hotel operators.

NEW YORK, Feb. 22, 2023 — A new study from behavioral research company Veylinx determined whether or not Super Bowl commercials boost consumer demand for the products advertised. The results show that 2023 Super Bowl advertising fueled a 6.4% increase in demand among viewers.

The overall increase in consumer demand was driven by women, who accounted for a 21% increase in demand growth. The commercials had minimal impact on men, yielding just 1% demand growth for the brands tested. Gen Z viewers were largely unimpressed by the Super Bowl ads, with demand among 18 to 25 year olds actually shrinking by 1%.

“It’s not really a surprise to see that Super Bowl ads improve sales, but the short term bump alone may not be enough to justify the $7 million price tag,” said Veylinx founder and CEO Anouar El Haji.

Using Veylinx’s proprietary methodology—which measures actual demand rather than intent—the study tested purchase behavior during the week before the Super Bowl and again the week after. The research focused on measuring the change in consumer demand for eight brands with Super Bowl ads: Michelob Ultra, Heineken 0.0%, Hellmann’s Mayo, Downy Unstopables, Crown Royal Whisky, Frito-Lay PopCorners, Pringles and Pepsi Zero Sugar.

Super Bowl Advertising Winners Overall

Michelob Ultra – 19% increase in demand

Pepsi Zero Sugar – 18% increase in demand

Frito-Lay PopCorners – 12% increase in demand

Heineken 0.0% – 11% increase in demand

Super Bowl Advertising Winners Among Women

Pepsi Zero Sugar – 45% increase in demand

Michelob Ultra – 40% increase in demand

Heineken 0.0% – 40% increase in demand

Crown Royal Whisky – 26% increase in demand

Halo Effect for Non-Advertisers

The biggest winners were arguably brands in the same product categories as Super Bowl advertisers. Non-advertisers in those categories appeared to benefit nearly as much as the advertisers: demand grew by 4.2% percent for the study’s control group of non-advertising competitors. Corona Extra, Kraft Mayo and Lay’s STAX were the greatest beneficiaries in a control group that also included Budweiser Zero, Arm & Hammer Clean Scentsations, Canadian Club Whisky, Popchips, and Coke Zero Sugar. Notably, every non-advertiser saw at least a slight increase in post-Super Bowl demand.

“The goal of our study was to look specifically at how consumer demand is affected by running a commercial during the Super Bowl,” El Haji said. “It’s possible that the non-advertisers deployed other marketing efforts to offset or take advantage of the Super Bowl advertising—or they simply benefited from increased exposure for their categories.”

Additional Findings

Study participants also answered a series of follow-up questions about their preferences, perceptions and how they watched the Super Bowl. More than three-quarters watched at home through various platforms, the most popular being the live cable/satellite broadcast (38%), followed by YouTube TV (15%) and Hulu (10%). When asked why they watched, it’s no surprise that participants were all about the game (64%)—but the commercials were the next most popular reason for watching (39%), followed by halftime (35%), the social aspect (26%) and fear of missing out (13%).

About the Research

Veylinx studied the behavior of 1,610 U.S. consumers pre- and post- Super Bowl LVII. Unlike typical surveys where consumers are simply asked about their purchase intent, Veylinx measures whether consumers will pay for a product through a real bidding process. Consumers reveal their true willingness to pay by placing sealed bids on products and then answering follow-up questions.

For more information about the study and the Veylinx methodology, visit info.veylinx.com/super-bowl

About Veylinx

Veylinx is the most realistic behavioral insights platform for confidently answering critical business questions during all stages of product innovation. To reliably predict demand, Veylinx captures insights through a Nobel Prize-winning approach in which consumers have real skin in the game. This is a major advance from traditional market research practices that rely on what consumers say they would hypothetically buy. Veylinx’s unique research methodology is trusted by the world’s largest and most innovative consumer goods companies.

Main article image: PepsiCo / Article body images: Veylinx

Building in Barış, Türkiye, damaged in 2023 earthquake

February 21, 2023by David Klemt David Klemt No Comments

WCK On the Ground in Türkiye and Syria

WCK On the Ground in Türkiye and Syria

by David Klemt

A week after deadly, devastating earthquakes struck Türkiye and Syria, World Central Kitchen has served more than one million meals.

KRG Hospitality supports WCK and their mission, and has done so for years. In fact, donating to WCK is a core element of our KRG Cares program.

There’s a lot of bleakness and darkness dominating headlines. Negativity continues to infect social media and public discourse. All too often, people are focusing on one another’s differences, feeding the drive to divide rather than unite.

However, it doesn’t have to be this way. We don’t have to give into cynicism and pessimism. We don’t have to take the bait and allow ourselves to wallow in outrage.

Look at what Chef José Andrés, Patricia Andrés, and the WCK team accomplish as an example. When disaster strikes, WCK is there to provide support and relief. The WCK Relief Team mobilizes, WCK organizes and finds support partners, and those in need get hot meals.

On February 6, two earthquakes Türkiye and Syria. The first earthquake registered 7.8 Mw (Moment Magnitude Scale), while the second was 7.7 Mw. According to recent reports, the death toll has surpassed 42,000. Millions of people in both countries lost their homes.

Yesterday, a 6.4 Mw quake struck the Türkiye-Syria border. Reports claim another eight people died and hundreds more were injured.

Making the monumental task of providing relief even more challenging is the conflict in Syria. Still, WCK, Gift of the Givers, and 25 restaurant partners are providing meals in Türkiye and Syria. Meals for those in Syria are prepared in Türkiye and then delivered to a hospital.

The Spirit of Hospitality

I don’t want to come off as preachy in this article. However, I think there’s been a departure from hospitality that our industry needs to address.

It behooves us to remember the role that restaurants, bars, and hotels have played traditionally in their communities. Ours are places of welcome, of warmth, of support.

In other words, our businesses are places of hospitality. That word isn’t simply an industry or trade designation.

Restaurants, bars, and hotels around the world have long been the cartilage of their communities; they brought everyone together. In many cases, hospitality was the beating heart of a community, not just the connective tissue.

Two people with opposing word views were able to set aside their differences over a drink and a bite to eat. We need to get back to that element of hospitality. Neighborhood restaurants and bars, regardless of category, are sanctuaries. Each one is an oasis, and we need to remember that. We’re about inclusion, not exclusion.

The WCK is perhaps an extreme example of what our industry can do for others. That makes the organization no less exemplary and deserving of emulation.

If you’re able to do so, please consider supporting WCK.

Image: World Central Kitchen via Twitter

February 20, 2023by David Klemt David Klemt No Comments

A New Challenger to the Margarita Emerges

A New Challenger to the Margarita Emerges

by David Klemt

The simple, three-ingredient Margarita continues its longstanding reign on the cocktail throne but there’s now a new number two.

Technically, of course, we haven’t had hard numbers regarding the Margarita’s sales for decades upon decades. Nielsen has only been officially tracking this type of cocktail data since 2016.

However, it’s not difficult to understand that America has been in love with the Margarita for decades. In fact, the cocktail may have been sitting on the throne for 50 (or more) years.

Some cocktail historians believe the Margarita is a member of the Daisy drink family. These sours consist of a spirit, citrus, simple syrup, and soda. Depending on who you believe, the Margarita came to life in the 1930s or 1940s.

An orange liqueur (triple sec) replaced the simple syrup, the soda was sent packing, and tequila became the required spirit. By the 1950s, the Margarita was on its way to winning the cocktail game of thrones.

Over the decades, many variations have appeared on the scene. Undoubtedly, this has helped the cocktail continue its reign. Tourist destinations have also strengthened its position; just think about the ubiquity of Margarita machines and blenders in Las Vegas and New Orleans.

But the simple, original recipe is the still “the One.” Ask a bartender or bar manager how they gauge someone’s skills behind the bar. The answer much (if not most) of the time? How that person makes a Margarita.

There’s nowhere to hide when a cocktail has but two or three ingredients. That’s why so many bar professionals judge bartenders by their Margs.

A “New” Challenger Appears

Unsurprisingly, the Margarita proved to be the most popular cocktail in America in 2022.

In contrast, according to the CGA Cocktail Sales Tracker by Nielsen IQ, the Manhattan fell out of the top ten.

The Moscow Mule, which has been rising in popularity for several years now, was in second place last year. In third, the Martini.

Now, before I address the “new” challenger to the Margarita, a note. The four newsworthy cocktails in terms of CGA and Nielsen tracking all have names beginning with the letter “M.” Does that mean anything? I have no idea. Maybe someone can look into cocktail names and how their perceived by guests to find out if “M” drinks outperform others.

So, we’ve got the Margarita, the Moscow Mule, the Martini, and the Manhattan (although for a different reason). Is the Moscow Mule currently eyeing the Margarita’s position up close and personally?

According to CGA by NielsenIQ data, no. The Martini is now sitting in the number two spot. Interestingly, this may be due to the rise in popularity—yet again—of the Espresso Martini.

So, while your bar team is ensuring their Margarita specs are dialed in for National Margarita Day, don’t neglect your Martinis. (Particularly your Espresso Martini.)

By the way, National Margarita Day is this Wednesday, February 22. Make sure you’re ready to thrown down.

Oh, and if you ever feel like starting an argument at a bar, ask the bartenders for their Margarita and Martini specs.

Image: Mathew Benoit on Unsplash

February 17, 2023by David Klemt David Klemt No Comments

Infographic Shows Massive Tech Growth

Infographic Shows Massive Hospitality Industry Tech Growth

by David Klemt

An infographic from Brizo FoodMetrics puts the explosive growth of the hospitality industry technology landscape on display.

It appears that operators, once largely hesitant to embrace new technology, are seeking it out. So, too, it seems, are guests. Intriguingly, many guests expect restaurants, bars, and hotels to innovate technologically.

In a sign of this change, SpotOn is predicting 2023 to be the year when independent operators upgrade their POS systems.

And that’s just one area where tech companies are innovating for our industry. As their infographic shows, Brizo FoodMetrics identifies ten areas of innovation:

POS systems
Payment platforms
Online ordering solutions
Reservation and waitlist platforms
Inventory, accounting, and purchasing solutions
Human resources and staffing
Delivery, pickup, and drive-thru tech
Marketing, loyalty, and analytics platforms
Artificial intelligence, robotics, and automation
Ghost kitchen and virtual brand tech

Looking just at Brizo’s POS section, they list 48 platforms as part of their “2023 Restaurant Tech Landscape.” That’s four dozen POS systems, and that’s not even every platform available to operators.

Some will be familiar to operators—Toast, TouchBistro, Clover—as they’re basically synonymous with POS systems. Others, like Tillpoint and OVVI, may be less known. However, that doesn’t mean they’re not worthy of research and consideration.

Explosive Growth and Innovation

Again, the Brizo infographic doesn’t list every single available platform. For instance, I don’t see OpenSimSim under the HR/Staffing section. But the fact that there are still dozens of other platforms—more than in the POS section—shows that tech companies finally want their share of the hospitality pie.

This is, of course, beneficial for operators and their teams for several reasons. One such reason is innovation.

On one hand, the established platforms must innovate to fend off competitors. And on the other hand, upstarts must prove themselves to operators. In other words, new platforms must show they’re not vaporware; they have longevity and won’t abandon their own platform any time soon; they’ll update constantly; they’re simple to learn and use; they integrate with other systems; and that they’re worth an operator’s money and time.

We’re just two months into 2023. Imagine what the 2024 tech landscape is going to look like. And bear in mind, this is a restaurant-focused map—there are categories like property management systems for hotels that aren’t included.

If you’re in the market for a new POS system, want to upgrade scheduling, or are just curious about where the industry is heading, check out the infographic below. Select a few brands that are unfamiliar and look them up.

To view this infographic on the Brizo FoodMetrics website, click here.

Image: Possessed Photography on Unsplash

February 15, 2023by David Klemt David Klemt No Comments

Girl Scout Cookies take Cocktail Form

Girl Scout Cookies take Cocktail Form at Ocean Casino Resort

by David Klemt

Beginning today, Girl Scout Cookies are undergoing an irresistible liquid transformation at Ocean Casino Resort in Atlantic City.

Guests of the casino and resort will have the opportunity to enjoy these decadent cocktails through March 15.

In addition to driving traffic and engagement, these LTO drinks are a charitable effort. One dollar from each sale of these cocktails will go to the Girl Scout Troops of Southern and Central New Jersey.

So, not only is this a promotion that leverages nostalgia, these drinks enhance the guest experience of both visitors and locals. Ocean guests from out of town get to try enticing LTO drinks. And locals can try a series of limited-run cocktails while supporting their own community.

At KRG Hospitality, we like this promotion for several reasons. First, Girl Scout Cookies. For adults, these are nostalgic treats. For children, Girl Scout Cookies are a special treat. And, of course, Girl Scout Cookie sales help Girl Scouts raise funds for their organization.

Second, this promotion runs for four full weeks. That’s 28 days of sales, which is 28 days of fundraising.

Third, the Ocean Casino Resort F&B and marketing teams continues to show off their marketing skills. Last year, Ocean celebrated the Choco Taco with a tempting cocktail after it’s demise was announced. And just days ago we took a look at their Big Game drinks.

Each of their cocktail promotions serve as an exemplary LTO. Operators across the country can look to these for inspiration in terms of boosting traffic and sales, enhancing the guest experience, and engaging with their local communities while enticing visitors.

Check out Ocean Casino Resort’s National Girl Scout Day cocktail recipes. Cheers!

Berry Chocolatey

2 oz. Three Olives Vodka
2 oz. Chambord
2 oz. Chocolate liqueur (examples: Dorda, Godiva, Mozart)
Half chocolate rim to garnish

Prepare a coupe by rimming with chocolate syrup. Add all ingredients to a shaker with ice. Shake and strain into prepared glass.

Caramel Surprise

1.5 oz. Three Olives Vodka
1 oz. Chocolate Liqueur (examples: Dorda, Godiva, Mozart)
1.5 oz. Malibu
1 oz. Half and Half
1 bar spoon of Caramel syrup
Chocolate and caramel drizzle to garnish
Toasted coconut flakes to garnish

Prepare a Martini or cocktail glass by adding chocolate and caramel syrups to inside. Add first four ingredients to a shaker with ice. Shake and strain into prepared glass. Garnish with toasted coconut flakes.

Lemon Kiss

2 oz. Three Olives Vodka
0.5 oz. Triple Sec
1 oz. Fresh lemon juice
1 oz. Simple syrup
Half sugar rim to garnish
Lemon wedge to garnish

Prepare a Martini or cocktail glass with half-rim of sugar. Add all ingredients to a shaker with ice. Shake and strain into prepared glass. Garnish with lemon wedge.

PB&B

2.5 oz. Skrewball Peanut Butter Whiskey
0.5 oz. Crème de Cacao
2 dashes Chocolate bitters
1 dash Angostura bitters
Peanut Brittle laid across rim to garnish

Place a large ice cube inside a rocks glass. Add all liquid ingredients to prepared glass and stir. Garnish by laying a bite-size piece of peanut brittle across rim.

Images courtesy of Ocean Casino Resort