Luxury

by David Klemt David Klemt No Comments

Loud Luxuries: Martinis and Caviar

Loud Luxuries: Opulent Martinis & Caviar Bumps

by David Klemt

Taking a look at what’s going down in the bar and restaurant world, it appears that luxury sips and bites are the latest darlings in the F&B space.

In particular, I’m talking about the stories going around about $40 Martinis. Oh, and the interest consumers are showing in caviar. Specifically, caviar bumps, though people seem to be craving this luxury bite any way they can get it.

At the risk of coming across as snobby or hipster-ish, Las Vegas has been offering guests caviar bumps at parties and restaurants for several years now. A close friend of mine has hired a caviar bump service for private business events and personal parties on more than one occasion.

To explain, a caviar bump is a much less formal way of consuming salt-cured roe. One takes a small spoon, dabs a bit of caviar in the area of their hand between their thumb and index finger, and licks it off. Contrary to what some people think (probably only once), the caviar isn’t snorted. Although, I’m not here to police how people choose to consume their food.

Interestingly, there are plant-based “caviar” brands on the market. So, vegetarian and vegan guests can get in on the caviar bump fun.

Now, back to the $40 Martinis. If that makes some operators and bartenders raise an eyebrow, their jaws will likely drop when they read what’s next. It’s not difficult to find Martinis that cost well in excess of $100.

This trend is belongs to the “loud luxury” movement. As one can infer reasonably, the phrase describes spending a lot of money on an item or experience because it’s expensive. Engaging in ostentatious spending is the point.

Given the state of many people’s finances these days, such flashy displays are justifiably viewed as vulgar by some. However, if recent stories are to be believed, 2024 is the year of loud luxury.

Get Loud

Or, more accurately, operators should encourage their guests to get loud.

That is, of course, if loud luxury matches the concept and market. Although, having a $40 Martini on a dive bar menu is only silly if it costs an operator money. There’s nothing wrong with putting such a drink on a menu if it doesn’t offend a venue’s base of loyal guests and run them off.

So, what’s in a $40-plus Martini? Pricey booze, put simply. These luxe libations aren’t made with $20 or $30 gins or vodkas. Rather, these spendy sips feature spirits that cost $100 or more.

Further, these trendy, tony tipples pair quite well with caviar bumps. There’s no reason an operator can’t leverage both of these extravagant trends simultaneously. Depending on which caviar is on offer, bumps can command upsell costs of $10 to $20 (or more).

That can mean that an operator’s $40 Martini can become a $50 or $60 Martini-and-caviar pairing experience.

Again, offering guests such an extravagant experience requires careful consideration and execution. Operators need to make an informed decision that includes understanding how their guests will respond to these loudly luxurious menu items.

That said, if a concept and brand can deliver such an over-the-top experience without alienating their guests, it can be fun, memorable, and profitable.

Something to consider as we approach Espresso Martini Day, which takes place on March 15. Who wants to take a shot at making one that costs more than $40?

Image: Ambitious Studio* – Rick Barrett on Unsplash

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The 2023 HD Award Finalists and Winners

The 2023 HD Award Finalists and Winners

by David Klemt

The lobby of ACE Hotel Sydney

As one would expect, the finalists and winners of the 2023 Hospitality Design Awards are a stunning collection of brands from which operators should pull inspiration.

Anyone looking for cutting-edge hospitality design would do well to look into each of the winners and finalists below.

The full list of award finalists and winners, and the architecture, interior design, and purchasing firms (along with owners and operators) can be found on the Hospitality Design website. Just click this link for the full details.

For our past coverage of the HD Expo, please click here.

View into The Lobby inside ACE Hotel Sydney

View into The Lobby inside ACE Hotel Sydney, which offers craft cocktails and small plates.

Lifestyle Hotel

Winner

Ace Hotel Sydney (Sydney, New South Wales, Australia)

  • Architecture Firm: Bates Smart, Melbourne
  • Interior Design Firm: Flack Studio (hotel), Melbourne
  • Owner: Golden Age Group
  • Operator: Ace Hotel Group
  • Purchasing Firm: Marques Interior Services

Finalists

Canoe Place Inn & Cottages (Hampton Bays, New York)

Our Habitas San Miguel (San Miguel de Allende, Guanajuato, Mexico)

Sisan·Shuanglang Hotel (DaLi, YunNan, China)

Fan Woods Hotel (Zhangjiakou City, Hebei Province, China)

Lifestyle Hotel Public Space

Winner

The Tampa EDITION

  • Architecture and Interior Design Firms: Morris Adjmi Architects, and ISC Design Studio, New York
  • Owner: Strategic Property Partners
  • Operator: Marriott International
  • Purchasing Firm: The Parker Company

Finalists

Ace Hotel Sydney (Sydney, New South Wales, Australia)

The Standard (Hua Hin, Thailand)

Luxury Hotel

Winner

The Londoner (London, England) United Kingdom)

  • Architecture Firm: Woods Bagot, London
  • Interior Design Firm: Yabu Pushelberg, New York and Toronto
  • Owner and Operator: Edwardian Hotels London

Finalists

Wildflower Farms, Auberge Resorts Collection (Gardiner, New York)

Kimpton Bamboo Grove Suzhou (Suzhou, Jiangsu, China)

Luxury Hotel Public Space

Winner

The Madrona (Healdsburg, California)

  • Architecture Firm: Strening Architects, Santa Rosa, California
  • Interior Design Firm: Jay Jeffers, San Francisco
  • Owners: Jay Jeffers, Kyle Jeffers, and investors
  • Operator: Mosaic Hotel Group
  • Purchasing Firm: Summa International

Finalists

The Madrid EDITION (Madrid, Spain)

Pillows Maurits at the Park (Amsterdam, Netherlands)

Wildflower Farms, Auberge Resorts Collection (Gardiner, New York)

Upscale Hotel

Winner

Six Senses Rome (Rome, Italy)

  • Architecture and Interior Design Firm: Patricia Urquiola Design, Milan
  • Owner: Six Senses

Finalists

HAY boutique hotel & SPA by Edem Family (Bukovel, Ukraine)

The Standard, Bangkok Mahanakhon (Bangkok, Thailand)

Belmonte Hotel Krynica Zdrój (Krynica-Zdrój, Poland)

Upscale Hotel Public Space

Winner

The Standard, Bangkok Mahanakhon (Bangkok, Thailand)

  • Architecture Firm: Buro Ole Scheeren, Bangkok
  • Interior Design Firms: The Standard in-house design team, New York; Hayon Studio, Valencia, Spain; and Studio Freehand, Bangkok
  • Owner and Purchasing Firm: King Power
  • Operator: Standard International

Finalists

Thompson Buckhead (Atlanta, Georgia, USA)

The Royal (Picton, Ontario, Canada)

Midscale Hotel

Winner

Ace Hotel Toronto (Toronto, Ontario, Canada)

  • Architecture Firm: Shim-Sutcliffe Architects, Toronto
  • Interior Design Firm: Atelier Ace, New York
  • Owners: Alterra, B-right, Finer Space Corporation, Prowinko, and Zinc Developments
  • Operator: Ace Hotel Group
  • Purchasing Firm: Benjamin West

Finalists

High Country Motor Lodge (Flagstaff, Arizona, USA)

Albor San Miguel de Allende, Tapestry Collection by Hilton (San Miguel de Allende, Guanajuato, Mexico)

Hotel Indigo Jiuzhai (Sichuan, China)

Midscale Hotel Public Space

Winner

Ace Hotel Toronto (Toronto, Ontario, Canada)

  • Architecture Firm: Shim-Sutcliffe Architects, Toronto
  • Interior Design Firm: Atelier Ace, New York
  • Owners: Alterra, B-right, Finer Space Corporation, Prowinko, and Zinc Developments
  • Operator: Ace Hotel Group
  • Purchasing Firm: Benjamin West

Finalists

Albor San Miguel de Allende, Tapestry Collection by Hilton (San Miguel de Allende, Guanajuato, Mexico)

Crystal Orange Hotel Shanghai Pudong Lujiazui (Shanghai, China)

High Country Motor Lodge (Flagstaff, Arizona, USA)

Select Service Hotel

Winner

The Beach Motel (Southampton, Ontario, Canada)

  • Architecture, Interior Design, and Purchasing Firm: Common Good Studio, Toronto
  • Owner: DASA Properties

Finalists

Hotel Tupelo (Tupelo, Mississippi, USA)

The Shàng | Artyzen Qiantan Shanghai (Shanghai, China)

Select Service Hotel Public Space

Winner

Hotel Tupelo (Tupelo, Mississippi, USA)

  • Architecture Firm: Sarah Newton Architect, Hattiesburg, Mississippi
  • Owner and Interior Design Firm: The Thrash Group, Dallas
  • Operator: Tandem Hospitality Management
  • Purchasing Firm: J Desterbecq & Associates

Finalist

The Beach Motel (Southampton, Ontario, Canada)

Resort

Winner

Naviva, A Four Seasons Resort (Punta Mita, Nayarit, Mexico)

  • Architecture and Interior Design Firm: Luxury Frontiers
  • Owner: Four Seasons Hotels and Resorts

Finalists

Etéreo, Auberge Resorts Collection (Riviera Maya, Quintana Roo, Mexico)

Centara Reserve Samui (Koh Samui, Thailand)

Lodges + Camps

Winner

AutoCamp Joshua Tree (Joshua Tree, California, USA)

  • Architecture Firm: HKS, San Francisco
  • Interior Design Firm: Narrative Design Studio, San Francisco
  • Owner and Operator: AutoCamp
  • Purchasing Firm: Benjamin West

Finalists

AutoCamp Catskills (Saugerties, New York)

Getaway Outdoor Suites (Ottawa, Illinois)

Restorations, Transformations + Conversions

Winner

Tin Building by Jean-Georges (New York, New York)

  • Architecture Firm: Cass Calder Smith, New York
  • Interior Design Firm: Roman and Williams Buildings and Interiors, New York
  • Owner: Howard Hughes Corporation
  • Purchasing Firm: Summa International

Finalists

Aman New York (New York, New York)

Virgin Hotels Edinburgh (Edinburgh, Scotland, United Kingdom)

Casa Cody (Palm Springs, California, USA)

Ace Hotel Sydney (Sydney, New South Wales, Australia)

New Brand Launch

Winner

Blue Iris by Life House (Nantucket, Massachusetts, USA)

  • Architecture Firm: Emeritus, Austin
  • Owner: Blue Flag Partners
  • Operator, Interior Design, and Purchasing Firm: Life House

Finalists

Revo Munich (München, Germany)

The Julius (Prague, Czech Republic)

Sweetbee Café + Bar (Brooklyn, New York, USA)

Event Space

Winner

Seattle Convention Center Summit Building (Seattle, Washington, USA)

  • Architecture and Interior Design Firm: LMN Architects, Seattle
  • Owner: Seattle Convention Center

Finalists

The Madrona (Healdsburg, California)

The Standard, Bangkok Mahanakhon (Bangkok, Thailand)

Hybrid Hospitality

Winner

Little Banchan Shop / Meju (Queens, New York, USA)

  • Architecture Firm: David K. UH, New York
  • Interior Design Firm: CRÈME, Brooklyn, New York
  • Owner: Chef Hooni Kim

Finalists

Capital One Hybrid Bank and Café (New York, New York, USA)

Changsha Fundolandπ (Changsha, Hunan, China)

Beyond Hospitality

Winner

The Water Drop Library (Shuangyue Bay, Huizhou City, Guangdong, China)

  • Architecture and Interior Design Firm: 3andwich Design / He Wei Studio, Beijing
  • Owner: Huizhou Shuangyue Bay Real Estate Investment and Development Co., Ltd.

Finalists

The Africa Centre (London, England, United Kingdom)

Aqua Foro Pool Club at Piazza Alta (Philadelphia, Pennsylvania, USA)

Wellness + Wellbeing

Winner

Paste Dental (Toronto, Ontario, Canada)

  • Interior Design Firm: Studio Author, Toronto
  • Owner: Dr Derek Chung

Finalists

Naviva, A Four Seasons Resort (Punta Mita, Nayarit, Mexico)

Dundas Square Barbers (Toronto, Ontario, Canada)

Sustainable

Winners

Chleo (Kingston, New York, USA)

  • Interior Design Firm: Islyn Studio, Brooklyn, New York
  • Owners: Hope and Charles Mathews
  • Purchasing Firm: Wagner Hamill

Six Senses Rome (Rome, Italy)

  • Architecture and Interior Design Firm: Patricia Urquiola Design, Milan
  • Owner: Six Senses

Finalists

Villa Le Blanc Gran Meliá (Sant Tomàs, Illes Balears, Spain)

1 Hotel Nashville (Nashville, Tennessee, USA)

Guestrooms

Winner

Centara Reserve Samui (Koh Samui, Thailand)

  • Architecture Firm: Begray, Bangkok
  • Interior Design Firm: AvroKO, Bangkok
  • Owner, Operator, and Purchasing Firm: Centara Hotels & Resorts

Finalists

Central Hotel Macau (Macau, China)

Albor San Miguel de Allende, Tapestry Collection by Hilton (San Miguel de Allende, Guanajuato, Mexico)

Wildflower Farms, Auberge Resorts Collection (Gardiner, New York)

Suites

Winner

Venice Simplon Orient Express (Vienna, Austria; Budapest, Hungary; and Prague, Czech Republic)

  • Interior Design Firm: Wimberly Interiors, London
  • Owner: Belmond

Finalists

The Standard, Bangkok Mahanakhon (Bangkok, Thailand)

Sands Premier Suite, Marina Bay Sands (Singapore)

Casual Restaurant

Winner

Great White – Melrose (West Hollywood, California, USA)

  • Architecture Firm: Natalie Kazanjian Architect, Los Angeles
  • Interior Design Firm: Great White Partners in partnership with Buca Studios, Los Angeles
  • Owner, Operator, and Purchasing Firm: Great White Partners

Finalists

Marcus at Baha Mar (Nassau, Bahamas)

MOVA (Dnipro, Ukraine)

Good Ground Tavern at Canoe Place Inn & Cottages (Hampton Bays, New York, USA)

Shikigiku Japanese Restaurant (IFC Mall) – Café & Bar Area (Hong Kong)

Upscale Restaurant

Winner

Oiji Mi (New York, New York, USA)

  • Architecture Firm: David Bucovy Architect, New York
  • Interior Design Firm: AvroKO, New York
  • Owner: Oiji Hospitality

Finalists

Amal (Miami, Florida, USA)

53 (New York, New York, USA)

Terra (Lviv, Ukraine)

Bar, Club + Lounge

Winner

Andra Hem (Philadelphia, Pennsylvania, USA)

  • Architecture Firm: Stokes Architecture + Design, Philadelphia
  • Interior Design Firm: Ghislaine Viñas, New York
  • Owner: Paige West

Finalists

Punch Room (Tampa, Florida, USA)

Ritz Bar (Paris, France)

Bar Cima (New York, New York, USA)

Gair (Brooklyn, New York, USA)

Equipment Room (Austin, Texas, USA)

Visual Identity

Winner

Saint June at the Ritz-Carlton, Grand Cayman (Grand Cayman, Cayman Islands, Greater Antilles)

  • Branding and Interior Design Firm: Goodrich, New York
  • Owner: Dart
  • Operator: The Ritz-Carlton Hotel Company
  • Purchasing Firm: The Parker Company

Finalists

Zou Zou’s and Chez Zou (New York, New York, USA)

Uniforms at the Standard, Bangkok Mahanakhon (Bangkok, Thailand)

Orto (Belfast, Ireland, United Kingdom)

Student

Winner

Sarah Choudhary, New York School of Interior Design: Hotel Cirque (Montréal, Québec, Canada)

Finalists

Bryann Brophy, Brittany Noble, Olivia Fletcher, and Hannah Randall, Iowa State University: Hotel Rina (Rome, Italy)

Hsiang-Ting Huang, School of Visual Arts, New York: A Transitional Place of Love (New York, New York, USA)

Images courtesy of ACE Hotel Sydney

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The Incredible Rise of Luxury Whiskeys

There are Luxury Whiskeys. Then There are These…

by David Klemt

Closeup image of whiskey in a glass

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.

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

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Top 10 States Attracting High Earners

Top 10 States Attracting High Earners

by David Klemt

The Florida Theater in Jacksonville, Florida

Using the inflow and outflow data of tax filers earning $200,000 or more, SmartAsset identifies the top ten states attracting high earners.

When it comes to the number-one state, “it’s not even close,” says SmartAsset Advisors. Not surprisingly, several top inflow cities (according to Redfin data) line up with SmartAsset’s top inflow state list.

So, why should this information matter to operators? Plainly, it’s important market information. Population, household income, and age information are crucial considerations when opening any business.

In fact, KRG Hospitality includes such data (and much, much more) when conducting research for our proprietary feasibility, business, and concept plans. Among many elements of opening a restaurant, bar, hotel, or entertainment venue, the income of one’s target audience is crucial.

Knowing where high-income households are leaving and moving to can inform many operator decisions. Where should one open their first concept? Which markets should one consider for expansion? What type of concept will work in a market? What are the threshold price points for menu items? How will this information help inform design choices?

Operators need to recoup their outlay. The income of a concept’s ideal guest should be as important to an operator as knowing their costs.

Top Ten Inflow States

Interestingly, the top state on this list did experience significant outflow in 2020. In fact, the state lost 11,756 high-earning households in 2020.

However, the state also added 32,019 such households, netting 20,263 high earners.

  1. Utah
  2. Idaho
  3. Nevada
  4. Colorado
  5. Tennessee
  6. South Carolina
  7. North Carolina
  8. Arizona
  9. Texas
  10. Florida

Another compelling detail of the states on this list pertains to income tax. In short, three of the states don’t levy personal income tax.

Above, they’re the states in bold: Florida, Nevada, and Texas.

Top 10 Outflow States

So, above are the ten states are seeing the greatest an inflow of high-earning households. Which means, of course, there’s an inverse.

Below, the ten states experiencing the greatest outflow of high earners. Unsurprisingly, SmartAsset deems several entries on the list high-tax states. Also, Washington, DC, is a high-tax area.

Moreover, the list below includes five of the top ten high personal income tax jurisdictions (in bold).

  1. Ohio
  2. Minnesota
  3. Washington, DC
  4. Maryland
  5. New Jersey
  6. Virigina
  7. Massachusetts
  8. Illinois
  9. California
  10. New York

However, it’s not as though these states are seeing a massive exodus of high-earning households. In fact, per SmartAsset, these states have more high-income households than the national average.

Nationally, high-earning households account for less than seven percent of all tax filers. According to SmartAsset, nearly nine percent of tax filers are high-income households in the top ten outflow states.

Image: Trevor Neely on Unsplash

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Código 1530 Tequila Closes the Loop

Código 1530 Tequila Closes the Loop

by David Klemt

Upscale tequila bar with luxury bottles on back bar

The evidence that consumers are showing increasing interest in luxury spirits continues to mount, with tequila benefiting greatly.

According to DISCUS, the luxury category of tequila continues to grow. Sales volume is up 30.7 percent annually since 2015 for luxury tequila brands.

While it’s easy to point to brand recognition, cache and perception, there may be another reason for this growth.

In a word, “responsibility.”

Sustainability is Sexy

Episode 57 of Bar Hacks features Collin De Laval. He’s the company mixologist for Código 1530 Tequila, and he’s intimately familiar with the brand.

So, De Laval knows more than every nuance of each Código 1530 expression. He also understands the ethos that drives the brand and its processes.

One of Código’s values is responsibility, which it manifests through sustainability efforts. As De Laval explains, “we try and close a lot of the waste loop, as much as we can.”

Not only does Código utilize naturally filtered water, they cut the water back out of their heads and tails. That water is then reused. The brand uses broken pieces of barrel and spent agave to char new barrels.

Further, Código is a small craft distiller. They don’t level thousands upon thousands of agave each day. Instead, they’re selective and take only what’s necessary.

“We’re treating the land a lot better in that way,” says De Laval.

These efforts are increasingly appealing to consumers. It’s not just the liquid in the bottle that matters. How that liquid got into the bottle is important to them.

“Now it’s like, ‘I know this brand. I know they do good stuff,'” De Laval says.

That “good stuff” doesn’t reference only the quality of the spirits but a brand’s responsibility and sustainability.

Drinking Better

“People are drinking ‘up’ now,” says De Laval. “Gone are the eras of, ‘Let me get whatever’s well.'”

He’s not talking about how a guest orders their drink. By “up” De Laval means they’re choosing top-shelf spirits.

Six years of steady growth for luxury or ultra-premium spirits supports this claim.

De Laval isn’t the only Bar Hacks guest who notices this trend. During episode 56, Pernod-Ricard Prestige sales manager Maxime Lecocq mentions the trend as well.

If luxury spirits and wines had suffered during the pandemic, that would’ve made sense. It could’ve been explained as people being cautious with their money.

Indeed, consumers were cautious. However, not in the way that many would assume. The numbers support the belief that consumers were spending more to drink higher-quality bottles.

Interestingly, drinking better doesn’t appear to refer only to quality or price. Many small, luxury craft distillers enjoy the perception as more responsible than large, industrial producers.

Drinking better now seems to mean drinking what’s better for the environment. And if what’s more responsible and sustainable happens to be ultra-premium, consumers are willing to pay for it.

Image: Spencer Pugh on Unsplash

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As Guests Learn More, Luxury Grows

As Guests Learn More, Luxury Grows

by David Klemt

Luxury concept featuring Champagne coupes on silver tray

Consumers are drinking better and the luxury categories of several spirits, wine and Champagne are benefitting.

Interestingly, this growth no longer appears to be driven solely by a desire to stand out and be seen.

Instead, according to one Bar Hacks podcast guest, consumers seem to be more carefully allocating their dollars.

Luxury Continues to Rise

The word “luxury” tends to conjure thoughts of expensive, high-end items.

Indeed, that’s certainly still a part of luxury. However, the concept of luxury as unattainable to most people is seemingly falling to the wayside.

Maxime Lecocq, Prestige sales manager in Las Vegas for Pernod-Ricard, shares a similar thought on episode 56 of Bar Hacks.

“The consumption style started to change during the pandemic,” says Lecocq. “So, people are more careful on what they’re drinking, where they’re spending their money.”

Intriguingly, Lecocq doesn’t mean that people were looking to spend as little as possible. Rather, they wanted higher quality for their dollars.

“Instead of having just any Scotch, they’re gonna research more,” Lecocq says. “Instead of spending, like, $25, they’re gonna be like, ‘Oh, I’m gonna spend $40 but I’m gonna be more careful about what I’m gonna drink.'”

As far as Lecocq is concerned, consumers doing more research is benefiting the luxury segment.

Why does he think that? Because it appears that research is leading consumers to spend more on luxury spirits and wine.

Numbers Support Luxury Growth

Early last month, Distilled Spirits Council of the United States (DISCUS) shared their research into luxury spirits.

DISCUS data shows that during the period from 2015 to 2020, luxury spirits brands saw sales growth of 125 percent. Further, looking at the first half of 2021, luxury spirits volume is up 25 percent.

For the curious, DISCUS considers any brand that sells 750mL bottles at retail for $50 or more to fall within the luxury segment. So, $10 more than the example Lecocq provides during his Bar Hacks appearance.

There are six luxury categories tracked by DISCUS: American whiskey, Cognac, Irish whiskey, Japanese whisky, Single Malt Scotch, and Tequila.

On his podcast episode, Lecocq discussed three of those categories: Cognac, Single Malt Scotch, and Tequila.

Growth Categories

Per DISCUS, American whiskey has seen annual growth since 2015 of 41 percent. For Japanese whisky, that rate of growth is 42 percent.

Irish whiskey and Single Malt Scotch are also healthy annual growth. However, Irish whiskey’s annual growth is only a third of that of its Japanese counterpart at 14-plus percent.

Single Malt Scotch, in the first half of 2021, is up 5.6 percent.

According to DISCUS, Cognac’s annual growth is nearly 16 percent. Lecocq posits that this rise in interest in Cognac is down to shifting consumer perception.

Once thought of as “your grandparents’ drink,” younger consumers are now more eager to explore this type of brandy.

It’s perhaps tequila that sees the most interesting growth. Given its explosive and seemingly unwavering popularity, I thought the luxury tequila category would see growth in excess of 42 percent.

However, per DISCUS, luxury tequila brands are up 30.7 percent annually since 2015. Obviously, that’s impressive growth, and the category represents 28 million bottles sold.

That’s more than American, Irish, Japanese and Single Malt Scotch whiskeys combined.

Of course, this doesn’t mean that operators should abandon their less expensive spirits and wines. It does, however, show that consumers are willing to pay more for what they perceive to be higher quality brands.

Image: Billy Huynh on Unsplash

by David Klemt David Klemt No Comments

Can Luxury be Accessible?

Can Luxury be Accessible?

by David Klemt

Poolside seating at luxury resort hotel in Cabo San Lucas

Can everyone experience luxury or is this category of hospitality inherently exclusive, serving only a small percentage of consumers?

During a panel discussion titled “Brand Identity: The Evolution of Luxury in Lifestyle Hotels” at Hospitality Design Expo 2021, one speaker answered this question.

Moreover, this speaker’s answer was simple and definitive.

What is Luxury?

Blame luxury brand marketing but it seems many people define luxury through the Three Es: exclusive, extravagant, and expensive.

However, as people reflect and rethink their priorities, a new view of luxury appears to be emerging.

Lee Shuman, director of project management at Peachtree Hotel Group, defines luxury through the Three Cs: comfort, convenience and contemplation.

Interestingly, comfort is included in the dictionary definition of luxury as well. (And yes, I know it’s cliché to point to dictionary definitions in articles.)

We’ve been hearing for a few years now that more people, particularly younger Millennials and Gen Zers, favor experiences over material items. Time is more valuable to these consumers than possessions.

Shuman’s Three Cs, then, speak to these consumers:

  • Obviously, people seek out comfort, particularly when it comes to hotels, resorts, restaurants, and travel.
  • Convenience reduces friction and removes pain points, allowing guests to spend their valuable time seeking out memorable experiences seamlessly.
  • When it comes to contemplation, Shuman says this is a design component that provides guests with several opportunities to notice and experience design “moments.” Contemplation also relates directly to experiences.

Operators who embrace and embody the Three Cs will meet guest expectations of luxury.

Can Luxury be Accessible?

Shuman answered this question succinctly: “Luxury has to be accessible.” Not can be accessible, not should be accessible, but luxury must be accessible.

Going further, Shuman said that “everyone in every strata should experience luxury.” There are a couple of ways to interpret this view of luxury.

Looking at this subject through the lens of convenience, one can take Shuman’s opinion on luxury literally. Everyone, regardless of the category or price point of hotel or resort (or restaurant, for that matter), should have access to luxury.

An alternate view that still relates to convenience is that if luxury is too exclusive, too few consumers will have access and the venue won’t be profitable.

Another viewpoint is that luxury needs to be accessible physically. In other words, if it can’t be touched, it’s not luxurious.

Per Shuman, guests don’t want luxury they can see but not touch.

Make it Happen

Shuman likes to see how guests are using a given property. Observing guests in situ provides him with insights that can be used enhance their experiences and improve design.

Hotel and resort guests are, from what Shuman observes, trending younger. Although, he said that could be because operators are aging.

As we’ve been learning, many younger guests are after experiences, comfort and convenience regardless of where they’re staying. Ticking those three boxes will help operators attract these younger guests.

Of course, older guests, due in part to a reshuffling of priorities during the pandemic, also have an interest in the Three Cs.

Shuman is also seeing that hotels and resorts must be enjoyable to use. Interestingly, he’s observing pools falling out of favor while the demand for well-designed health centers. His commitment to observing and learning about guests constantly provides these insights.

To make luxury accessible moving forward, operators should embrace the Three Cs, observe their guests continuously, and realize that luxury doesn’t necessitate excluding guests.

As consumer desires and expectations change, operators must adapt more and more rapidly. Increasingly, change is impacting the perception of luxury.

Yes, the Three Es still exist and likely always will. However, the Three Cs are informing a more modern view of luxury.

Image: GaPeppy1 from Pexels

by David Klemt David Klemt No Comments

Prepare for a Luxe Life Summer

Prepare for a Luxe Life Summer

by David Klemt

BMW M cars parked next to private airplane

When we think of restaurant and bar tech and platforms, we tend to think of POS and inventory solutions. But what about guest-facing services?

We’re all familiar with online ordering, reservation, and review platforms. What I’m talking about is guest-facing tech that focuses on the luxury lifestyle.

For those living the high-roller life, every convenience is at the tap of an icon, including private jets, helicopters, yachts, and luxury and exotic vehicles.

What does any of this have to do with hospitality? Anyone who serves or courts high-net-worth guests needs to understand how they live and what they expect. This is even more important as summer approaches, vaccine rates improve, and pandemic guidelines relax.

Additionally, there are partnerships and marketing opportunities for operators and luxury lifestyle platforms.

Flight

Flying private isn’t solely the domain of those who can afford to shell out several million dollars for the plane of their dreams.

The proliferation of the sharing economy means people can hop on a charter flight for a fraction of the cost.

Blade

Do you hate waiting in traffic, even if you’re not the one doing the driving? Wish you could just jump into the air and leapfrog a sea of cars keeping you from, say, an airport? With Blade, you can summon a helicopter and make your flight in minutes.

JSX

Formerly known as JetSuite X, JSX serves the western region of America and Texas. If the thought of flying commercial is unbearable at the moment, JSX makes it easy to jump onto a 30-seat set via private terminals for non-stop flights.

NetJets

We’ve all been there: We want our own private jet but it’s just slightly out of reach at the moment (by many millions of dollars). NetJet gives people fractional ownership of private jets and provides top-notch, personal service. The company’s fleet includes everything from six-passenger Embraer Phenom 300 jets to the high-speed, long-range 14-passenger Bombardier Global 7500.

Wheels Up

This company offers three levels of membership: Connect, Core and Business. Wheels Up is more than a transportation app—they’re a lifestyle brand. The company offers membership perks such as exclusive events and concierge services, which should be of particular interest to hospitality operators.

Float

There are a couple of tropes that come along with boat ownership. One is that the two happiest days for a boat owner are the day they take possession and the day they get rid of it.

And then there’s the classic “definition” of a boat: “A hole in the water into which one throws money.”

However, much like one can dial up a helicopter or grab a seat on a Gulfstream, people can now charter a yacht for a fraction of boat ownership. Choose the yacht that meets your yachtin’ needs, board it, and crank the yacht rock.

Float

Any boat that someone uses for cruising, leisure, pleasure or racing is a yacht. So, the yacht life isn’t exclusively for ocean-going vessels. Float lets customers “rent the lake life,” connecting boat owners with people who want to rent boats on lakes. One of the best parts of Float is that it doesn’t, as far as we can tell, cost thousands of dollars per day to rent a boat via the platform.

GetMyBoat

This is a huge platform. We found more than 12,100 boats available in America, more than 4,400 in Australia, and well over 28,000 in Europe on GetMyBoat. Given the size of the platform, there’s a large swing when it comes to rental costs, which makes sense. For instance, there was a 21-inch Sea Hunt Ultra 210 for $44/hour (four-hour minimum) in Virginia and a 40-foot VanDutch Ultra Luxury Yacht for $4,000 for eight hours.

YachtLife

Serving an array of locations with a rather impressive portfolio of boats, YachtLife offers three membership levels catering to various needs. Beyond living the yacht life, the company provides perks and specials from their partners. This platform should be of particular interest to our Florida and Eastern Caribbean clients.

Four Wheels

So, someone grabs a helicopter to a private hangar, looking forward to lounging on the their rental yacht.

Sure, they could take a limo to the marina, or they could use the car service their plane or boat membership offers.

But they could also decide to drive themselves. Obviously, not just any car rental will do.

Turo

There are various Porsches and Mercedes listings on Turo that cost well under $200 a day. But for those looking for something exotic, a Lamborghini Huracan is around $1,000 per day, and an Aventador is around $1,400. You can’t show up to the marina behind the wheel of just anything, right?

Image: Jakob Rosen on Unsplash

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