Labor costs | KRG Hospitality

February 19, 2024by David Klemt David Klemt No Comments

The Batching Superpower of Sūpāsawā

The Batching Superpower of Sūpāsawā

by David Klemt

One of our favorite products from WSWA’s Access LIVE 2024 event in Las Vegas can save operators and bar teams time and money.

Access LIVE, the annual Wine & Spirit Wholesalers of America (WSWA) event is always chock full of notable items. However, this one in particular stood out to me and my colleagues.

Coming out of Deluxe Distillery in Belgium, Sūpāsawā Seriously Sour Cocktail Mixer is here to make lives easier.

Of course, it’s not surprising that this mixer is so impressive. Sūpāsawā is produced alongside high-quality stablemates, after all: Blind Tiger Handcrafted Gin, Mary White Premium Vodka, and Yusibi Honey Based Aperitif.

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In short, this innovative mixer can replace citrus. Importantly, it’s also widely available around the world. Speaking to the core of our audience and clients, it’s available in Canada and the US. When I asked about availability in the US, I was told it’s in 30 states currently.

Operators in the UK, Europe, Australia, and many more regions should also be able to get their hands on Sūpāsawā.

So, what is this magical mixer, exactly? It’s a simple and clean stand-in for expensive and time-consuming citrus.

Deluxe’s super sour mixer is distilled water, citric acid, malic acid, tartaric acid, phosphoric acid, and succinic acid. The liquid is crystal clear, aroma-free, and an incredibly convenient substitute for lemons and limes.

Real-life Scenario

Consider the following real-life hypothetical that shines a light on Sūpāsawā’s real-life benefits.

Let’s say someone hires an operator for a catered event. Included in this event is bar service, and involves more than pouring wine and beer.

Along with a handful of calls, the client and their guests expect a signature cocktail. Well, batching a cocktail or two ahead of the event would be a smart move.

However, we all know what that means: purchasing and juicing citrus. And we also all know what else that means: labor costs for all that prep.

What if one bartender or bar back could batch a cocktail in less than five minutes? Yes, I’m talking under five minutes for the entire batching process.

That scenario is nearly identical to Deluxe Distillery’s Access LIVE 2024 situation.

Deluxe showed the convenience and superpower of Sūpāsawā at their booth via batching. According to the bartender and ambassador who prepared the standout cocktail, he added all the ingredients—including the super sour mixer—to a jug, shook it, and it was ready to go in less than five minutes.

Real-life Benefits

Does this mean you’ll never have to buy lemons and/or limes again? For the vast majority of bars, no. However, the more drinks you can make with Sūpāsawā, the more you can plan for and control the cost of citrus.

Per Deluxe, operators can expect to save 15 minutes per liter of citrus juiced. The distillery also says each bottle of Sūpāsawā represents 35 pieces of fruit an operator won’t have to purchase. On average, a single cocktail requires just 20 ml of Sūpāsawā, or 2/3 of an ounce. With each bottle coming in at 700 ml, that’s 35 individual cocktails per.

When I asked about unit cost at their Access Live 2024 booth, Deluxe said operators can expect a price of $9 per unit. People who do the math can see the benefit of getting their hands on Sūpāsawā for individual, kegged, and batched cocktails.

In terms of storage, the slim bottle can last for about two years unopened. After it’s opened, Sūpāsawā should last for up to a year. Compare that to the two- to three-day shelf life of lemon or lime juice.

Notably, using Sūpāsawā leads to consistency. Because it always tastes the same, drink consistency is improved. And, of course, using this super sour mixer leads to producing less food waste.

Click here to learn more about Sūpāsawā and what it can do for an operator’s bar program, catering, and bottom line. Oh, and click here for recipes. Cheers!

Disclaimer: Neither the author nor KRG Hospitality received compensation, monetary or otherwise, from Deluxe Distillery, WSWA, or any other entity in exchange for this post.

Image: Irina on Unsplash

October 27, 2023by David Klemt David Klemt No Comments

Do You Need a Restaurant Chatbot?

Do You Need a Restaurant Chatbot?

by David Klemt

The labor shortage, increasing demand for convenience, and artificial intelligence are converging to make a strong case for restaurant chatbots.

Specifically, bots that can take orders accurately. As consumers increasingly live their lives on demand, any perception of even minor inconvenience can turn someone against a brand or venue.

In addition to convenience, today’s consumer, generally speaking, also expects to find more technology when engaging with a business. Likewise, workers expect employers to implement more tech, whether it’s welcome or not.

When it comes to our industry, that means everything from streamlined POS systems and powerful CRM platforms to predictive ordering software and cobots.

Looking at generative AI and guest-facing tech, it won’t be long before guests expect to place their orders via chatbot.

In fact, some consumers are placing orders with restaurant bots now. There are already text- and voice-based restaurant bots out in the world. So far, it appears that many QSRs are implementing generative AI bots to handle orders.

As some of the companies developing restaurant bots point out, they never tire. The bots never feel overwhelmed. They can field a limitless amount of calls, working around the clock without breaks, every day of the year. Obviously, restaurant bots don’t get sick, ask for time off, or no-call, no-show.

So, for high-volume restaurants, particularly those with drive-thrus, restaurant bots are probably incredibly attractive. Clearly, labor is still an issue. And these restaurant bots promise to take the ordering process out of workers’ hands, allowing them to focus on “more important” tasks.

Now, couple that with guests seeming less patient, less forgiving, and more obsessive about convenience. On-demand solutions certainly appear great on paper.

Text Bots

We know that guests are already interacting with restaurant bots. When they visit a restaurant’s website or download its app if they have one, they’re encountering bots.

Some provide information, some can make reservations, and an increasing number can take orders. There are bots that imitate a text exchange, and those that streamline the ordering process by using canned replies.

One of the better known of these is Dom, Domino’s chatbot. Whether via app or website, Dom walks people through the ordering process easily and, in my experience playing with this tool, quite simply.

Further, Dom can “remember” previous orders (when a customer is logged into their account) and reorder them. The bot can make recommendations, and it will search for and apply coupons or promotions.

These functions are, of course, the pros of restaurant bots. As their ability to handle more complex tasks increases, the promise is that they’ll do more than offer convenience or solve some labor issues.

Rather, they’ll also generate more revenue by making personalized recommendations, upselling customers, and reaching out to customers to prompt them to place an order.

Voice Bots

As operators whose phone lines light up from open to close can attest, there are people who prefer to talk to someone to place an order.

Well, there are now restaurant bots that can field those calls.

One provider of this tech is ConverseNow. The company uses voice AI, which they explain is also known as conversational AI on their website. Their tech handles phone and drive-thru orders, and the experience is close to, if not exactly like, speaking with their human counterparts.

According to ConverseNow, operators no longer have to worry about unanswered calls. Customers won’t call in only to hear a busy signal. Drive-thru times are reduced. Workers can focus solely on service, prep, and fulfilling orders.

Additionally, the company is focusing on accuracy. There’s an agent-assisted solution, for example. If a complex order comes in, an agent can take over before things go sideways. Agents can also help ConverseNow’s AI to learn from new situations, ensuring the customer experience is painless and even more accuracy.

The tech is so good that Domino’s uses it along with Dom. Per the ConverseNow website, the tech integrates with leading POS systems like Toast; is live in more than 1,200 restaurants in over 40 states; and has taken 8.5 million orders and freed up one million labor hours for their clients.

Along with ConverseNow, operators can look into HungerRush, Yellow.ai, and other solutions.

Takeaway

Restaurant bots certainly make sense for high-volume, limited-service, and QSR operators. They can reduce labor costs and capture more (if not every) order with ease.

However, we need to consider the impact of reducing or eliminating human interactions in hospitality. Whether in the front or back of house, we appear to be heading toward an industry putting less emphasis on the human element.

Yes, team members still interact with guests to take in-person orders and for in-person dining. That is, for now.

In the QSR space in particular, ordering kiosks are becoming more common. At some point, AI-powered kiosks, along with other AI tools, will replace the need to interact with humans in fast-casual and casual-dining restaurants.

It seems at odds with the spirit of hospitality for guests to not have to interact with a team member until their food needs to be dropped. And with cobots, that’s also a task an operator can automate.

I’m all for progress and innovation. And I’m all for delivering on the guest expectation of convenience. However, it’s a balancing act. An operator opting to automate tasks so team members can better engage with guests needs to ensure that’s actually happening.

I don’t think we need less human interaction. And I, for one, have a growing concern that some operators are journeying further down the path of barely seeing the people they employ as people. Rather, too many are increasingly seeing team members as liabilities and nothing more.

I point that out to say this: When considering implementing any new tech, consider the impact on more than just P&Ls. This is a people business, and dedicating yourself to slashing costs and boosting revenue ruthlessly runs the risk of making a restaurant less hospitable for guests and staff.

Image: Cash Macanaya on Unsplash

Tray with In N Out burgers and French fries

September 18, 2023by David Klemt David Klemt No Comments

FAST Act Fight Appears to be Over

FAST Act Fight Appears to be Over

by David Klemt

Well, that was fast: If recent reports are accurate—and it appears they are—the battle over the FAST Act has come to a close.

Rather than fight on the ballot, fast-food chain operators and labor groups have struck a deal. Per some reports, this puts a halt to a referendum battle that could have cost more than $100 million in campaign funds.

On its face, the deal is quite simple. AB 257, known as the Fast Food Accountability and Standards Recovery—or FAST Act—is dead. That is, dead save for one provision: the creation of the Fast Food Council will move forward.

The council will have a total of eleven members. Nine will have the power to vote, two will be non-voting members. The breakdown will be as follows:

two representatives of the fast-food restaurant industry (2);
two franchisees or restaurant owners (2);
two restaurant employees (2);
two advocates for fast-food restaurant employees (2);
member of the public who is not affiliated with either side (1, will serve as chair); and
members from the Department of Industrial Relations and the Governor’s Office of Business and Economic Development (2, non-voting)

Their first meeting is on the schedule for March 15.

In exchange, fast-food workers will see the minimum wage bump up to $20 per hour should they be in the employ of a fast-food chain with more than 60 locations throughout the US. That pay rise will come in April 2024.

When it comes to further pay rises, the council has two options:

An annual wage increase of 3.5 percent; or
An increase based on average changes to the consumer price index each year.

As one might expect, the rise will be whichever number is lower.

What was AB 257?

To summarize, FAST would’ve done the following:

Establishes the Fast Food Council, ten members appointed by the Governor, the Speaker of the Assembly, and the Senate Rules Committee. The council will operate until January 1, 2029.
Defines “the characteristics of a fast food restaurant.”
Gives the Fast Food Council the authority to set “minimum fast food restaurant employment standards, including standards on wages, working conditions, and training.”
Provides the council the power to “issue, amend, and repeal any other rules and regulations, as necessary.”
Allows the formation of a Local Fast Food Council by a county, or a city that has a population of more than 200,000.

Click here to review the bill’s text in its entirety.

Why is this Important?

It’s entirely possible that similar bills will pop up in other states in the coming years.

If this result is anything go by, such bills may be used by QSR operators and labor groups as negotiating tactics. The most recent news regarding the FAST Act should have the attention of both operators and hospitality workers. In California alone, the pay rise is expected to affect at least 500,000 workers.

However, there is one provision of the FAST Act that workers may find less than encouraging. The deal that has been struck kills a notable provision: fast-food operators, at least in California, won’t be held legally responsible for labor violations that occur in franchise locations.

Operators in other states should keep an eye out for similar bills, as should all hospitality professionals.

Image: Kenny Eliason on Unsplash

May 26, 2021by David Klemt David Klemt No Comments

Remote Restaurant Workers are Here

Remote Restaurant Workers are Here

by David Klemt

When people think of working from home, rarely do they picture restaurant professionals working remotely.

Normally, people associate working from home with desk and cubicle jobs across an array of industries.

A newer technology company is trying to change that perception.

New Restaurant Tech

Bite Ninja seeks to match restaurants with remote workers to online ordering and drive-thru operations more efficient.

Let’s say your business has a drive-thru window. Obviously, someone has to work that window, meaning there are labor costs that accompany it.

As operators know, it’s difficult to recruit, hire and train right now. Some states point to the $300 federal boost to unemployment as a main culprit for the labor shortage restaurants are facing currently, announcing exits to the program.

According to Bite Ninja, remote workers are a feasible solution to labor and cost challenges (at least for some operations).

The tech company trains “Virtual Cashiers” and provides on-demand access to these remote workers.

Benefits

Per Bite Ninja, the company provides operators with several benefits. First and foremost, it would seem, is an answer to staffing challenges.

Obviously, if utilizing virtual cashiers costs less than recruiting, hiring, training and employing their counterpart, that’s a benefit. Another benefit? More staff is available to engage with and serve dining room and patio guests.

On the subject of no-call no-shows, the platform claims that simply doesn’t happen with their remote workers.

While not a solution for every operation, Bite Ninja also claims upsell averages of between $40 and $60 per shift. More importantly, the company says order accuracy through their virtual cashiers is nearly 100 percent. According to Bite Ninja, the average upsell per shift pays for a venue’s hired ninja. If that’s the case and virtual cashiers pay for themselves while making an operator more money, perhaps employees can see a pay bump.

Additionally, the company tracks some key metrics for their clients, including customer volume, order accuracy, and upsells.

KRG Hospitality Takeaway

We appreciate restaurant and bar tech that helps operators lower costs, increase profits, solve problems, improve the guest experience, and increase guest visit frequency.

However, we’re not fans of tech that eliminates a position from the industry and takes someone out of the workforce.

Bite Ninja isn’t a labor solution for every hospitality operation. For those who see the value in remote restaurant workers, at least the company isn’t building robots that eliminate one or more human jobs outright.

Image: Jonathan Kemper on Unsplash