Lounge

Piggy bank wearing a face mask
by David Klemt David Klemt No Comments

Tell the Government to Refill the RRF

Tell the Government to Refill the RRF

by David Klemt

Piggy bank wearing a face mask

The National Restaurant Association is urging restaurant, bar and other hospitality operators to sign a Restaurant Revitalization Fund petition.

Put concisely, the NRA’s petition asks the federal government to replenish the RRF.

Grants are going out and there’s no guarantee the $28.6 billion fund is enough for every eligible business. Therefore, the NRA is calling for more funds.

The Petition

Now, there is good news regarding the RRF. Per the Small Business Administration, 21,000 applicants have received $2.7 billion in grants.

However, when one considers that well over 180,000 grant applications were submitted within the first 48 hours, the $28.6 billion will more than likely run out before every eligible business receives a grant. The first 16,000 grants alone total $2 billion.

According to one source, priority applications carry a value of approximately $29 billion. Obviously, that’s more money than is in the fund.

And that’s only the value of applications receiving priority for the first 21 days. Clearly, more funding is necessary.

As the NRA’s petition states, “We are urging policymakers in Washington—from the White House to Capitol Hill—to replenish the RRF to maximize relief for small independent and franchise restaurant operators. Americans can’t wait to get back into their favorite restaurant with their family and friends, and the federal government can play a key role in making that a reality.”

Click here to sign the NRA’s petition. Our industry is the hardest hit by the pandemic and every eligible business deserves funding.

It’s not that this industry isn’t grateful—it’s that hundreds of thousands of businesses are fighting to stay alive. They’ve been doing so for more than a year.

The RRF

The SBA’s RRF portal link is https://restaurants.sba.gov. Alternatively, operations can use a POS that’s an SBA partner to apply. Partner systems include Clover, NCR, Square, and Toast.

According to the SBA website, certain eligible entities will be given priority.

For the first 21 days the application process is open, priority will go to small businesses with a minimum of 51 percent ownership by women, veterans or socially disadvantaged people.

The application process should open to every applicant on Monday, May 24. For more in-depth information, operators can follow the appropriate links to review the Small Business Administration’s RRF program guide and sample application.

Applicants do not need to register with SAM.gov (System for Award Management) or provide DUNS or CAGE identifiers.

To calculate a grant amount, an applicant subtracts 2020 gross receipts from 2019 gross receipts. Applicants must deduct first-draw PPP and second-draw PPP loans. Any economic disaster loans—Economic Injury Disaster Loans, for example—are not RRF deductions.

Again, please click here to sign the NRA’s petition today.

Image: Konstantin Evdokimov on Unsplash

Wynn Field Club at Allegiant Stadium in Las Vegas
by David Klemt David Klemt No Comments

Las Vegas Ushers in Next Nightlife Era

Las Vegas Ushers in Next Nightlife Era

by David Klemt

Wynn Field Club at Allegiant Stadium in Las Vegas

After more than a year of shut downs and severe restrictions, Las Vegas nightlife groups are planning an epic comeback.

Between a recent nightlife group acquisition and a very Vegas approach to sports, the city is preparing to go full send for Summer 2021.

Add to that Governor Steve Sisolak’s plan to reopen Nevada on June 1 and things are finally looking up in America’s Playground.

Only in Vegas

It took more than seven decades for “modern” Las Vegas to get the city’s first major sports team.

No, I’m not counting the AFL, CFL, UFL or XFL teams as “major” in comparison to the NFL or other professional leagues.

First came the Vegas Golden Knights in 2018. The Las Vegas Aces followed a year later, and last year the city became the home of the Las Vegas Raiders.

Because Las Vegas can’t quite bring itself to do things like other cities, two of our arenas feature nightlife elements.

Golden (K)Nights

T-Mobile Arena, home of the Golden Knights, offers the 18,000 square-foot Hyde Lounge.

Run by SBE, the international hospitality and hotel group, Hyde sits atop the general seating area. Not only do guests get an amazing view of sports action, the venue is also open during concerts.

There are private “living rooms” and four bars inside Hyde at T-Mobile Arena. Also, being a Vegas nightlife venue, Hyde offers table service and drives the experience with DJs.

And, of course, there are views of the iconic Las Vegas Strip.

The Death Star

That brings us to Allegiant Stadium, the home of the Las Vegas Raiders, also known as the Death Star among locals.

Wynn Nightlife (two points for anyone who guesses which casino group they represent) is the Official Nightlife Partner and Official Gaming Partner of the Raiders.

 

View this post on Instagram

 

A post shared by Wynn Nightlife (@wynnnightlife)

The Vegas nightlife group is bringing Wynn Field Club to Allegiant’s north end zone—the entirety of the length of the north end zone. Wynn Field Club is an 11,000 square-foot nightlife “venue” that features 42 TVs, a 45,000-watt sound system, two DJ booths and—what else?—exclusivity, bottle service, and Wynn Nightlife DJs.

Also, I hear a Raiders game may break out during DJ sets and bottle popping…

TAO vs. Hakkasan?

Not anymore. Moving forward, it will be TAO plus Hakkasan.

One of the biggest nightlife battles is over as one titan, TAO Group, acquires another, Hakkasan Group.

The result isn’t just news for Las Vegas, though the two nightclub, dayclub and restaurant giants are most closely associated with the city.

TAO Group’s acquisition expands their incredible portfolio to an astounding 61 venues located in nearly two-dozen markets in five continents. Nine of the venues call Las Vegas home: TAO (of course), LAVO, OMNIA, JEWEL, Hakkasan, Marquee, Wet Republic, Beauty & Essex, and Casa Calavera.

Hakkasan Group will continue to operate Hakkasan, OMNIA, JEWEL, Wet Republic and Casa Calavera under the supervision of TAO Group.

Interestingly, Madison Square Garden Entertainment, the group constructing the MSG Sphere, acquired controlling interest in TAO Group in 2017. MSGE paid a reported $181 million for a 62.5 percent stake.

Back to Normal?

If anything, these developments seem to indicate that Las Vegas is on track to come back better than ever. Normal? Las Vegas can do better than that.

Las Vegas is set to re-establish its status as the world leader in nightlife in a post-pandemic world. Hyde Lounge and Wynn Field Club are perfect examples of how Vegas nightlife innovations redefine and then become the standards.

The nation—and the world—has a long way to go to recover from the pandemic. All glimmers of light near the end of a dark and twisted tunnel are welcome. It looks like the Strip’s legendary lights are shining brighter already.

Image: Anthony Mair

Grand re-opening sign
by David Klemt David Klemt No Comments

Which States are Reopening this Summer?

Which States are Reopening this Summer?

by David Klemt

Grand re-opening sign

Around one-third of America’s population is vaccinated fully and some states are easing restrictions.

Per the CDC, not exactly America’s favorite agency, more than 40 percent of Americans have received one Covid-19 vaccine shot. Just over 30 percent have completed the vaccine process.

So, which states are planning to reopen fully for Summer 2021? We have a list of some of the states that have made their plans to reopen 100 percent known so far.

California

The Golden State plans to reopen fully on June 15. According to doctors at the University of California San Francisco, the state is nearing herd immunity. However, Governor Gavin Newsom’s target date relies on two criteria:

  • Vaccine supply must be sufficient enough “for Californians 16 years and older who wish to” receive inoculation.
  • Hospitalization rates must remain low and stable.

Illinois

Per Mayor Lori Lightfoot, the plan is for the city of Chicago to be open 100 percent by July 4. Of course, that means reopening fully right in time for one of the biggest celebratory holidays of the year. However, Governor J.B. Pritzker says Illinois could reopen in as early as the start or middle of June.

Nevada

Governor Steve Sisolak plans for Nevada to reopen fully on June 1. That said, casinos in the Silver State have a slightly different timeline. With the exception of nightclubs, dayclubs and live performances, casinos will open 100 percent June 4 if all requirements are met.

New York

According to Mayor Bill de Blasio, the plan is to reopen New York City on July 1. Governor Andrew Cuomo hopes to reopen New York State fully before that date.

Texas

Governor Greg Abbott opened the state 100 percent back in March. However, judges in the state’s 22 counties still have the authority to impose Covid-19 mitigation strategies. Hospitalization rates in a particular county rising above 15-percent hospital bed capacity for seven days would be a triggering event.

As the vaccine rollout continues, it’s likely we’ll see more states announce Summer 2021 reopening plans. Still, operators should proceed with caution and remain in compliance with state, county and local Covid-19 rules. This is, after all, a fluid situation.

There’s light at the end of the tunnel but now’s not the time to be complacent.

Image: Tim Mossholder on Unsplash

Stay Weird neon sign with purple background
by David Klemt David Klemt No Comments

Stand Out with Weird Holidays: May

Stand Out with Weird Holidays: May

by David Klemt

Stay Weird neon sign with purple background

Want to stand out from from other restaurants and bars in your area? Then commit to keeping it weird.

Several “holidays” are set against every date on the calendar, and May is no exception. These holidays range from mainstream to food-centric to weird.

Focus on the latter to raise eyebrows, carve out a niche for your restaurant or bar, and attract more guests. Why do what everyone else is already doing?

Of course, you shouldn’t try to celebrate every holiday, weird or otherwise. And this month’s list in no way includes every odd holiday.

Focus on the days that are authentic to your brand; resonate with your guests; and help you grab attention on social media.

For last month’s list, click here.

May 5: National Totally Chipotle Day

It’s not just Cinco de Mayo today, it’s National Totally Chipotle Day! Two guesses as to what pepper this holiday celebrates…

May 6: World Password Day

This holiday exists to encourage people to consider their privacy and make sure their passwords are secure. Of course, operators can make this holiday more fun than mundane. One simple way is to come up with and share a password guests can use for food or drink specials. Speakeasy operators, today’s your day!

May 9: National Sleepover Day

What pairs well with sleepovers? Food, drinks, pajamas and movies. And what pairs well with warming weather and the comfort levels of today’s guests? Patios and other outdoor areas. Show a movie outside, encourage pajamas, create fun and comforting F&B offerings… This is a fun one.

May 20: National Pick Strawberries Day

The perfect day to feature cocktails that call for strawberry garnishes. And if there was ever a holiday practically built for featuring Snoop Dogg‘s new strawberry-flavored Indoggo Gin, this is it.

May 21: National Bike to Work Day

As the story goes, the radler was invented in the 1920s by a Bavarian tavern owner. A group of cyclists stopped by looking to quench their thirsts with beer. The tavern owner didn’t have enough, so he added sparkling lemonade to his kegs. Eurkea, the radler was born.

This is the perfect day to pay homage to the radler and reward people for biking to work.

May 22: National Craft Distillery Day

One of the best days to program promotions around local and hyper-local spirits.

May 25: National Brown-Bag It Day

Looking for a simple and fun way to celebrate this weird holiday? Offer a special featuring tall boys served in brown paper bags along with hangover-curing comfort foods.

May 30: National Creativity Day

I mean…what a blank canvas! This is the day to execute your most creative promotions. Ask your team members for their most creative ideas to boost staff engagement.

Image: Dan Parlante on Unsplash

Sunglasses and beer on table at a bar
by David Klemt David Klemt No Comments

Summer Stimmy, Hot Vax Summer

Summer Stimmy, Hot Vax Summer

by David Klemt

Sunglasses and beer on table at a bar

When considering event programming, operators should consider the zeitgeist of the current era in which we find ourselves.

Big brands monitor and leverage the cultural climate of a given time.

Operators can do the same, as long as they embrace authenticity, show a sense of humor, and avoid disrespect and appropriation.

Here are a couple examples operators can use for Summer 2021.

Summer Stimmy

Bud Light is tapping into America’s federal response to the pandemic—stimulus checks, to be exact—with creativity and a sense of humor.

Is it too soon? It doesn’t seem so—the levity is a welcome respite.

For all intents and purposes, it appears Bud Light is leaning heavier into the creative and promotional aspect than just humor.

Bud Light’s Summer Stimmy is a proposal to “make Summer 2021 even awesomer for people across America.”

The brand explains each “proposal” item as though they’re components of a bill up for consideration. For example, Part I, Section 1 of the Bud Light Summer Stimmy proposal carries the subtitle “Tons of Tix.” Bud Light proposes to give away 100,000 tickets for MLB, NBA, NFL, NHL, NWSL and WNBA events.

Part I, Section 2, More Awesomeness, proposes the nomination of Rob “Gronk” Gronkowski as Secretary of Summer. Additionally, the section proposes May 14 as National Gronk Day, his birthday.

Of course, Bud Light owns the term Summer Stimmy now. However, clever operators can get in on the fun (and profits) through their Bud Light rep. Or, they can get creative and come up with their own Summer 2021 promotions that leverage pent-up demand.

Hot Vax Summer

Even though it seems like forever ago, who can forget 2019 and Hot Girl Summer?

Megan Thee Stallion, one half of the infamous “WAP” duo, gets the credit for coining the phrase and creating the movement.

The “rules” for Hot Summer were simple: Women and men just needed to be “unapologetically them,” make having a good time a priority, and be free.

We all know what happened in 2020. There certainly wasn’t a Hot Girl Summer, Part Two.

Meeting new people, dating, hooking up… For the most part, none of that happened without Covid-19 tests and quarantining. That is, if those activities occurred at all.

But now we have multiple vaccines: Pfizer, Moderna, and Johnson & Johnson. AstraZeneca and Novavax have yet to be authorized by the FDA.

So, what are the Hot Vax Summer rules? Pretty simple: Get vaccinated (fully), get back out there to meet, interact and hook up.

And where do people tend to go to meet others? Restaurants, bars, nightclubs and dayclubs.

Whether to confidently and comfortably meet friends they haven’t seen for several months, make new friends, or kickstart dating, our businesses are where people want to be.

Operators need to ensure their venues are ready for the initial crush of guests clamoring to finally reclaim their social and romantic lives. So, prepare your outdoor areas; make sure indoor areas meet guest expectations for comfort so they can interact freely; and ensure your staff is ready for the welcome onslaught of eager guests.

Image: Photo by Drew Beamer on Unsplash

Straining a cocktail into a rocks glass over ice cubes
by David Klemt David Klemt No Comments

Reverse Cocktails for Lower ABV Sips

Reverse Cocktails for Lower ABV Sips

by David Klemt

Straining a cocktail into a rocks glass over ice cubes

A simple and creative way to add low-proof drinks to a menu is to offer reverse cocktails.

As a concept, reverse cocktails are simple to understand. However, they’re also a great way to engage the bar team.

Better still, they offer guests looking to enjoy less-spirited drinks a real cocktail experience.

What’s a Reverse Cocktail?

Essentially, a reverse cocktail is exactly what it sounds like. Let’s use the classic Martini as an example.

Say your classic recipe calls for two ounces of gin, a half-ounce of sweet vermouth, and a dash of orange bitters. To build the Reverse Martini, half the gin, quadruple the sweet vermouth, and keep the bitters the same.

That’s a quick and dirty example. You and your bar team will want to play with your recipes—different vermouths and gins will deliver differing results.

Vermouths, amaros, and low-proof aperitifs are ideal for building reverse cocktails and expanding your cocktail program.

What’s the Point?

Reverse cocktails lower the ABV in comparison to their standard, boozier counterparts.

Michael Toscano, Woodford Reserve brand ambassador and Bar Hacks podcast guest, thinks many people are looking to slow down their alcohol intake. Home bartenders, if reports are accurate, have been pouring spirits generously during the pandemic. When they get out, they may be after lower-proof sips.

A reverse cocktail is a creative solution to enjoying cocktails in a new way with less alcohol.

Of course, they also offer operators a new guest experience. A menu section with the title “Reverse Cocktails” is likely to spark some guest interest and questions. Also, such drinks are a great way to refresh drink menus and move some inventory.

There’s also the fact that reverse cocktails give guests seeking low-ABV sips the full cocktail experience—there’s no risk of alienating them.

Image: Adam Jaime on Unsplash

Man in empty restaurant and bar in Ottawa, Ontario, Canada
by David Klemt David Klemt No Comments

Canadian Hospitality Needs Real Help

Canadian Hospitality Needs Real Help

by David Klemt

Man in empty restaurant and bar in Ottawa, Ontario, Canada

Restaurants, bars and other foodservice establishments throughout Canada need specific relief to survive, replace lost jobs, and return to profitability.

The seemingly endless and severe provincial restrictions is putting far too much strain on a struggling industry.

Yes, there are some federal provisions in place. No, they’re not enough.

Relief Efforts

Currently, the federal budget promises extensions for wage and rent subsidies. Those subsidies would extend to September 25, 2021.

However, most Canadians, per a Restaurants Canada survey, agree that the industry needs more help.

If additional industry-specific relief faces significant delays or doesn’t come at all, operators, employees, and their families will suffer.

No wonder, then, that 90 percent of Canadians (according to the Restaurants Canada survey) feel restaurants and bars need federal support to remain in business and continue paying staff.

Support Proposals

Of the approximately 98,000 foodservice establishments throughout Canada, about 10,000 are out of business. As of last month, 319,000 lost foodservice jobs had yet to be filled.

No other industry in Canada is facing such startling numbers. Add to that the fact that the industry contributes to four percent of Canada’s GDP, restaurants are the first employers for most Canadians, women comprise nearly 60 percent of the restaurant workforce, and visible minorities comprise over 30 percent of ownership and labor, and the situation grows even starker.

Clearly, industry-specific relief is necessary.

Restaurants Canada is campaigning for the following measures:

  • Extend the wage and rent subsidies through April 2022.
  • Develop subsidy requirements that more closely match the dire reality the industry continues to face.
  • Implement an employee retention and retraining credit to defray Covid-19 protocol costs.
  • Partial forgiveness for all government-backed loans.
  • Removal of merchant fees from the tax portion of restaurant bills.
  • Restore the meals and expenses to 100 percent on a temporary basis.
  • Develop and implement a culinary tourism incentive for the 2020 and 2021 tax years, using New Brunswick as a model.
  • Implement a rebate program that provides government reimbursement of $15 per person, per meal.
  • Freeze the Excise Act, including Excise Act 2021.

Act Now

It took more than a year but the industry and its supporters in America helped bring about meaningful change for restaurants, bars, and other hospitality venues.

The same can be done in Canada, and time is of the essence.

For example, the Restaurant Revival Working Group is a good start for effecting change. The group consists of government and industry representatives.

Click here to review the list of Restaurant Revival Working Group members, particularly those in government, so you can contact them.

Image: Tyler Farmer on Unsplash

Modern neon sign hanging in window
by David Klemt David Klemt No Comments

RRF Applications Open Monday

RRF Applications Open Monday

by David Klemt

Modern neon sign hanging in window

In long overdue but very welcome news, the Small Business Administration’s RRF portal opens to accept applications on Monday.

Operators and business owners will be able to register this Friday, April 30.

We definitely recommend doing so to make the application process simpler and (hopefully) less frustrating on Monday, May 3.

What You Need to Know

Mainly, the following: The SBA’s RRF portal link is https://restaurants.sba.gov. It would probably be a good idea to go ahead and bookmark that site now.

Alternately, operators using an SBA POS partner to apply. Partner systems include Clover, NCR, Square, and Toast.

Per the SBA, operators will be able to register via the website beginning at 9:00 AM EST on Friday. Again, it would be wise to plan on doing exactly that.

Anything that can be done to speed up the application process opening Monday should be done.

According to the SBA website, certain eligible entities will be given priority. For the first 21 days the application process is open, priority will be granted to small businesses with a minimum of 51 percent ownership by women, veterans or socially disadvantaged people.

However, all eligible owners and operators should register on Friday and apply on Monday. Doing should, in theory, help applicants secure their grants in a more timely manner.

RRF Preparation

The SBA’s Restaurant Revitalization Fund portal opens at noon ET on Monday. It’s best to prepare as much as possible as it’s likely applicants may find themselves in a queue depending upon traffic.

Operators can calculate their grant amounts with the following equations for applicants:

  • in operation prior to or on January 1, 2019: 2019 gross receipts minus 2020 gross receipts minus PPP loan amounts.
  • that began operations partially through 2019: (Average 2019 monthly gross receipts x 12) minus 2020 gross receipts minus PPP loan amounts.
  • who began operations on or between January 1, 2020 and March 10, 2021: Amount spent on eligible expenses between February 15, 2020 and March 11, 2021 minus 2020 gross receipts minus 2021 gross receipts (through March 11, 2021) minus PPP loan amounts
  • not yet opened but have incurred eligible expenses: Amount spent on eligible expenses between February 15, 2020 and March 11, 2021 minus 2020 gross receipts minus 2021 gross receipts (through March 11, 2021) minus PPP loan amounts

Note: Entities who began operations partially through 2019 may elect, at their own discretion, to use either calculation two, three or four above.

For further guidance and to prepare as much as possible, please click here for the SBA’s RRF guide, and click here to review the sample application.

The Independent Restaurant Coalition also has a handy checklist posted to Instagram:

Good luck!

Image: Prateek Katyal on Unsplash

Woodford Spire Kentucky Derby cocktail
by David Klemt David Klemt No Comments

2021 Kentucky Derby Drink Recipes

2021 Kentucky Derby Drink Recipes

by David Klemt

Woodford Spire Kentucky Derby cocktail

The 2021 Kentucky Derby takes place this Saturday, May 1. These cool drinks are perfect for the hottest two minutes in sports.

This year, the unbeaten Essential Quality is the favorite to win the 147th Run for the Roses. Hot Rod Charlie, Rock Your World, and Medina Spirit are also in consideration.

Personally, given the subject of this article—bourbon cocktails—we’d like to see Bourbonic take the first race in the Triple Crown.

Since Woodford Reserve is the official Presenting Sponsor of the Kentucky Derby, you can’t go wrong with the Woodford cocktails below.

Of course, the 2021 Woodford Reserve Derby Bottle makes these Derby drinks taste that much better.

Cheers!

Woodford Mint Julep

Recipe courtesy of Woodford Reserve

This is the traditional Derby Day cocktail. Churchill Downs will be pouring gallons of this classic.

Express the essential oils in the mint and rub them inside the glass (or a Julep cup, ideally). Add simple syrup, bourbon, and crushed ice. Stir, then garnish with more ice, fresh mint, and powdered sugar.

Mint Julep made with Woodford Reserve by Michael Toscano

NYC Mint Julep

Recipe by Michael Toscano, Woodford Reserve Brand Ambassador

As loyal Bar Hacks podcast listeners may already know, Michael Toscano knows his way around an irresistible Mint Julep. When you’re done with this article, click here to listen to Episode 32 of Bar Hacks with Toscano.

Muddle six blackberries with simple syrup and a healthy bunch of mint leaves (eight to ten). Add two ounces of Woodford Reserve Bourbon and fill the Julep cup with crushed ice. Stir and lift ice until the Julep cup is frosted. Garnish with two blackberries and a fresh sprig of mint.

Note: To build this cocktail precisely as Michael recommends on our podcast, add 1.5 ounces of Woodford to the Julep cup over crushed ice. Add more ice to create a mound on top of the cup, then float the remaining half-ounce of bourbon. Finish with a healthy dusting of powdered sugar and either nutmeg of powdered chocolate.

Woodford Spire Kentucky Derby cocktail

Woodford Spire

Recipe courtesy of Woodford Reserve

Some people may not know that this is the Official Cocktail of the Kentucky Derby. Most assume that title goes to the Mint Julep.

In a mixing glass, mix Woodford Reserve, lemonade and cranberry juice with a bar spoon. Pour into a copper cup, add crushed ice to the top of the glass, and serve with a lemon twist.

Zero-proof Woodford Spire

Recipe courtesy of Woodford Reserve

Those choosing to enjoy Kentucky Derby festivities without alcohol will appreciate this refreshing drink.

  • 2 parts Lemonade
  • 2 parts Unsweetened iced tea
  • 1 part Cranberry juice
  • Lemon twist to garnish
  • Crushed ice

Prepare and serve the same as the full-proof Spire.

Images: Woodford Reserve / Brown-Forman

Help Wanted sign taped in window
by David Klemt David Klemt No Comments

The Reality of Hiring Right Now

The Reality of Hiring Right Now

by David Klemt

Help Wanted sign taped in window

Operators can add recruitment, hiring and retention among to the growing list of challenges they’re facing due to the pandemic.

Labor struggles aren’t exactly a shock to the hospitality industry.

However, the speed with which the many stark predictions of labor shortages and challenges across North America has caught some by surprise.

Outlook: Brutal

Fast-casual to fine dining. Independent to chain. Regional hospitality group to multi-national powerhouse.

No operator, no concept, no market appears immune to today’s recruitment, hiring or retention challenges.

It’s not the only reason but the federal boost to unemployment is exacerbating the situation. Restaurant operators across America have been reporting that their workers are making more on unemployment than they would make returning to their jobs.

It’s likely the hiring situation won’t improve until the end of August or start of September; the federal boost to unemployment is set to expire on September 6.

Of course, that points to another glaring industry issue: livable wages and benefits.

The pandemic didn’t cause the labor shortage and hiring problem on its own, but it certainly hasn’t helped anything. Some operators throughout North America say they’ve been hunting for workers for all positions for months.

Incentives & Bonuses

Operators are fighting for workers. To many reading this, that’s not a surprise. However, many operators report fighting to even get candidates to show up for interviews.

Famously, one McDonald’s franchisee in Tampa, Florida, is using a $50 incentive for interviews. If a candidate manages to follow through and show up for their interview, they walk away with $50.

During a recent conversation with Chef Brian Duffy (which we’ll be releasing as episode 33 of the Bar Hacks podcast), interview incentives came up. While it’s no $50 bonus just for showing, Chef Duffy has offered candidates free lunch for appearing for their interviews. And yes, he still struggles.

Interestingly, appearance incentives don’t appear to be working. What does appear to be working? Increasing starting wages, referral programs, apply-via-text functionality, and all manner of signing and performance-based bonuses.

The bonuses run the gamut. Show up for all your shifts for three or four months and earn a $500 bonus. Paying down student loans. Fronting the bill for culinary school. One restaurant in Alabama is offering an SUV to their top-performing worker later this year.

In addition to bonuses, wages are seeing a boost. Jobs that would normally start at $12 to $15 per hour are now offering starting wages of $16 to $18 dollars per hour.

No matter how one slices it, the situation leads to cost hikes across the board for operators. When costs increase for operators, prices increase for consumers. Margins shrink, the old cycle continues, the industry struggles.

Reality Check

Now, it’s simple to blame the pandemic for the current situation. To say it’s not a major factor would be incredibly disingenuous.

That said, the struggle to find and keep workers is also a culmination of decades-long, industry-wide problems.

Lack of diversity, inclusion, equality, living wages, opportunities, and transparency; failure to address social issues; inexcusable, threatening, and outright illegal behavior… All of this and much more contributes to the industry’s hiring and retention challenges.

That’s a criminally shallow summary of the situation—I’m well aware. Doug Radkey, president of KRG Hospitality, addresses the need to review and reset the industry in his book Hacking the New Normal. He takes a deep dive into rejecting the status quo in this industry.

My point is that operators can’t blame their woes solely on the pandemic, absolving themselves of responsibility.

Operators must take a hard look at themselves and their operations, and ask difficult questions. Doing so can be uncomfortable. But neither positive change nor growth come from resting in the comfort zone.

Image: Tim Mossholder on Unsplash 

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