News | KRG Hospitality

January 17, 2025by David Klemt David Klemt No Comments

Critical Thinking: Unlocking Success

Critical Thinking: Unlocking Success in Hospitality

by Doug Radkey

In hospitality, where creativity meets both precision and guest expectations, the ability to think critically is not just an asset, it’s truly a non-negotiable.

Whether you’re starting a new bar, stabilizing a restaurant, or scaling a hotel operation, critical thinking forms the framework of every successful decision.

When working with clients, I always look to emphasize this mindset in everything we do together. Why? Because we’ve seen its transformative impact firsthand.

Critical Thinking: A Mindset, Not Just a Skill

Critical thinking isn’t a one-time effort; it’s a continuous state of mind.

It requires being open-minded, curious, and analytical while maintaining the discipline to question assumptions, consider diverse perspectives, get creative, and rely on evidence for decision-making.

It’s about asking some potentially tough questions:

Why is this the right choice?
What are the potential consequences?
How can we improve this process?

But more importantly, it’s about cultivating thinking skills such as interpretation, analysis, evaluation, explanation, and self-regulation to create strategic clarity.

Let’s explore how these skills directly impact the hospitality industry’s three critical phases: starting, stabilizing, and scaling.

Starting: Laying the Right Foundation

Starting a bar, restaurant, or hotel is an exciting venture. It’s also fueled by decisions that can make or break the business.

This is where critical thinking over the use of tools such as AI or templates becomes indispensable.

Interpretation Skills: Understanding the Market

Every business should begin with a feasibility study. This critical document is about analyzing market trends, target demographics, detailed sociographics, competitive landscapes, conceptual trends, and financial understanding.

For example, understanding your TAM, SAM, and SOM can clarify the concept’s alignment with market potential. Without proper interpretation of these data points, a great idea can fail to connect with its intended audience or market.

Analytical Skills: Evaluating Business Models

Many aspiring operators rely too heavily on emotion when choosing a concept or location. I talked about this recently on an episode of the Hospitality Reinvented podcast.

Critical thinking helps us step back, assess the market objectively, and analyze whether the chosen model can succeed.

It’s never about what “feels” right, or “I’ve lived here my whole life, I know what people want.” In reality, it’s about what I tell everyone who says either of those things: “It’s about what works based on data and evidence.”

Asking the Right Questions

Does this location align with my budget and target audience?
What assumptions am I making about guest behavior?
What if this concept needs to pivot?

Stabilizing: Building Consistency and Efficiency

Once a hospitality business is operational, stabilizing it requires balancing guest satisfaction with operational excellence.

Critical thinking becomes the tool to identify inefficiencies, and adapt to challenges.

Evaluation Skills: Assessing Operations

Stabilizing a restaurant or hotel often involves analyzing the flow of operations.

Are staff members supported by efficient systems? Is inventory managed effectively?

Evaluating these aspects (and others) ensures that the business runs smoothly, even during peak times.

Self-Regulation Skills: Overcoming Bias

Operators in this industry often struggle to let go of ideas that don’t work. Have you ever sat inside a bar or restaurant that used to be busy all of the time, but now you’re one of only a few guests?

They didn’t let go of the past.

Self-regulation allows leaders to examine their biases, question their own decisions, and pivot when necessary.

For example, if a signature dish that uses a family recipe isn’t selling, it’s time to evaluate why, and consider alternatives rather than holding onto it for sentimental reasons.

Key Questions

What operational processes are causing delays or errors?
Am I listening to both staff and guest feedback objectively?
How can we improve efficiency without compromising quality?

Scaling: Preparing for Sustainable Growth

Scaling a hospitality business requires both vision and precision. It’s about replicating success without diluting the brand, and critical thinking provides the roadmap.

Inference Skills: Predicting Outcomes

Scaling involves making assumptions about new markets, guest preferences, and operational challenges.

By questioning the evidence and forming well-founded hypotheses, operators can make informed decisions about where and how to grow.

Explanation Skills: Communicating Vision

Whether it’s presenting a pitch to investors or aligning staff with a new strategy, scaling requires clear communication.

Critical thinking ensures that every argument is backed by data and articulated with precision, thereby building trust and alignment among all stakeholders.

Key Questions

What do industry and market trends tell us about future opportunities?
How do we maintain brand consistency across multiple locations?
What risks should we prepare for between now and full expansion?

Critical Thinking at KRG Hospitality

At KRG Hospitality, we integrate critical thinking into every aspect of our work.

Here’s how:

Open-Minded Collaboration: We listen actively to our clients, and challenge conventional thinking to uncover innovative solutions or blue ocean opportunities.
Data Driven Decisions: By interpreting each client’s unique needs, we craft strategies that align with their vision while ensuring practicality and scalability. From feasibility studies to business plans, we rely on evidence to guide strategy, not assumptions.

We also encourage our clients to adopt a critical-thinking mindset as they navigate all of the phases of business development.

Below, a few habits we help clients develop.

Vet Information

Question the credibility of data sources.
Ask what evidence supports a specific claim, and whose perspective is missing.

Ask Questions

Channel curiosity by exploring deeper inquiries, such as why, how, and what happens if we encounter various situations.
Use follow-up questions to uncover insights and challenge assumptions.

Listen Actively

Understand before responding. Critical thinking requires deep listening to build well-rounded solutions. (Want to learn more about the act of listening? Check out this podcast episode on listening by Jennifer Radkey on her Turn This Way podcast.)

Engage with diverse perspectives to avoid groupthink that might set you back.

Seek Diversity

Surround yourself with diverse voices and viewpoints to gain fresh insights, and avoid echo chambers.

Action Items to Strengthen Your Critical Thinking

How can you practice critical thinking this week?

Consider taking on the two challenges below.

Map the Guest Journey: Outline each touchpoint on your guest’s experience, from discovering your brand, booking or ordering, their arrival to your venue, their exit, and your follow-up with them. Identify potential gaps, and brainstorm ways to elevate guest satisfaction for each touchpoint.
Challenge Your Own Assumptions: Pick one operational or strategic belief you hold about your business. If you’re just developing your concept, maybe you believe your idea is perfect for the market. If you’re operational already, perhaps you assume that your team loves working for you, or that you the systems in place to expand. Analyze the validity of your assumptions, seek alternative perspectives, and test whether they truly hold up under scrutiny.

The Hospitality Mindset: Why It Matters

Critical thinking isn’t just a business tool, it’s a way of life that empowers you to:

make informed decisions that align with your goals;
navigate challenges with confidence and clarity;
lead teams effectively by fostering open communication and collaboration; and
position your bar, restaurant, or hotel for long-term success.

In an industry where every detail matters, adopting a critical-thinking mindset ensures you can respond to challenges proactively, adapt to change, and create experiences that guests remember for a lifetime, thereby creating a true legacy.

Image: Canva

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January 10, 2025by David Klemt David Klemt No Comments

Beau Lake Program Exemplifies Partnerships

The Beau Lake Partnership Program Exemplifies Collaboration

by David Klemt

A creative and collaborative program from a Toronto-based waterside company exemplifies successful hospitality partnerships.

Beau Lake crafts, according to their own website, “the world’s most beautiful paddleboards.” A visit to their website and review of their boards lends credibility to that claim.

In the image below, the Tremblant paddleboard, which features a sophisticated walnut and holly veneer. I encourage you to check out their Malibu and touring-style Rapid boards, as well.

Truly, these are gorgeous paddleboards. their range includes rigid and inflatable boards, along with hardwood, carbon fiber, and hybrid walnut-and-carbon-fiber paddles.

There’s even a pedal boat with a wood cockpit, and a stunning 14-foot electric boat, perfect for cruising a lake serenely.

However, that’s none of that is really the point of this article (and accompanying press release). There’s something else I want operators, particularly those in the hotel and resort spaces, to take away with them.

Well-Crafted Partnerships

Looking back at just the past several years of articles I’ve written for KRG Hospitality, I’ve mentioned partnerships dozens of times.

But what, exactly, do I mean when I say operators should pursue partnerships (or collaborations, if you prefer).

I mean programs like this the Hotel Partnership Program by Beau Lake. That is, well-considered, fully realized partnerships that benefit the parties involved and the operator’s guests.

The key details of Beau Lake’s program are outlined below, in the company’s official press release. For a quick summary, the brand is positioning itself and hotel partners to leverage amenities many hotel guests expect to find, particularly those who seek out upscale and luxury properties. That is, amenities that help them connect with nature, disconnect from technology and their work lives, have a memorable adventure, and partake in wellness activities (for example, paddleboard yoga).

Further, the program offers onsite activations, content generation, and influencer marketing.

That shows potential hotel and resort partners that Beau Lake understands its position in waterside sports, as well as the need to help collaborators market them to guests.

Overall, it shows what operators should look for when seeking partnerships.

Applicable Across the Industry

While the Beau Lake Hotel Partnership Program is focused on luxury hotels and resorts, the lesson here is applicable to bar, restaurant, nightclub, and other hospitality business operators.

A great partnership with the potential to develop into a long-term relationship must form a triangle. The triangle, as you may already know, is considered the strongest geometric shape.

In hospitality, and when talking about partnerships, that triangle connects:

the operator and their business;
the partner’s business; and
the guest.

If it doesn’t benefit all three, the connections aren’t made, and the triangle collapses.

To provide further clarity on successful partnerships, while we offer consulting and coaching, we don’t look at ourselves as consultants. Rather, the KRG Hospitality team views our client relationships as partnerships. We expect the relationships we develop with clients to be the key to collaborating and building long-lasting legacies.

That’s the view that operators should take when seeking out any partnership.

Don’t Fire from the Hip

As an operator, you need to take the time to consider, at more than a surface level:

how you expect your business and guests to benefit from the partnership;
what you’re offering as a benefit to the partner;
how quickly the partnership will be launched;
what methods will be used to promote the partnership; and
what support from the potential partner looks like to you.

While each component (and others) is crucial, that last one deserves plenty of careful consideration. If the partnership centers around a physical product, it’s not good enough to simply receive said product; you need more support than that.

Moreover, reaching out to potential partners without specific details will likely drive them away rather than inspire them to collaborate with you.

I also suggest being receptive to feedback, revisions, and other ideas presented by the potential partner. And, of course, make sure any partnerships are authentic to your brand, and serve your guests.

Below, you’ll find the details of the Beau Lake Hotel Partnership Program. As you’ll see, it’s more than just shipping paddleboards to hotels to rent to guests. In this way, it’s a fantastic example of what hospitality operators should expect when seeking collaborators.

Beau Lake Announces Hotel Partnership Program

Elevating Waterside Luxury Amenities for Hotels and Resorts Around the Globe

(Toronto, Canada) Beau Lake, a luxury waterside brand renowned for its timeless design and mid-century craftsmanship, proudly announces its Hotel Partnership Program. This partnership features curated product collaborations, onsite retail, and offers an exclusive opportunity to redefine the waterside luxury experience for discerning guests around the globe.

Beau Lake’s expertise in blending innovative production with classic nautical aesthetics will transform any waterfront into an immersive extension of high-end hospitality. Through this new program, partner properties will feature exclusive access to Beau Lake’s luxury paddleboards while delivering moments of connection, wellness, and adventure that resonate with the guests’ desire for distinction.

“The hotels we’ve partnered with are synonymous with elegance, and we are honored to extend their brand’s commitment to excellence to the waterfront,” said Brad Ariss, Managing Director at Beau Lake. “Our partnerships and collaborations reflect a shared dedication to crafting unforgettable guest experiences. By integrating Beau Lake’s offerings into lakeside and coastal properties, we create unique opportunities for guests to engage with the serene beauty of their surroundings without the distraction of uneventful plastic toys.

Key Features of the Program:

Bespoke Product Collaborations: Custom paddleboards and surfboards tailored to each property’s aesthetic and guest preferences, including co-branded designs for retail and rental.
Waterside Leisure and Wellness: Beau Lake luxury paddle boards offer an on-brand and curated aesthetic for partners to elevate activities such as yoga on paddleboards, guided tours, and waterfront meditation, seamlessly combining relaxation with nature.
Comarketing Activities: On-site activations to develop programming, influencer marketing and content to generate earned media and attract new audiences.
Retail Solutions: End-to-end e-commerce strategies managed by Beau Lake to drive property-specific sales.

The Hotel Partnership Program is already making waves, with Badrutt’s Palace leading the way alongside notable collaborations with iconic properties worldwide, such as the Montauk Yacht Club and American Beech in New York, Gasparilla Inn in Florida, and Maslina Resort in Croatia.

Beau Lake’s collection redefines the watercraft category, turning functional waterside amenities into elevated experiences that blend art and performance to drive guest loyalty and enhance brand identity. This partnership underscores the brand’s commitment to enriching the art of luxury living, on and off the water.

About Beau Lake

From mid-century pedal boats to the world’s most beautiful paddleboard collection, Beau Lake is a Canadian waterside luxury brand dedicated to elevating the beach experience through timeless design and mid-century craftsmanship. Inspired by nature, their luxury paddleboard collection has featured limited-edition collaborations with Saint Laurent, Ulysse Nardin and Vilebrequin. The brand has since grown their collection of premium beach amenities to include everything from apparel and waterside accessories to classic wooden furniture, custom surfboard and, of course, the finest collection of rigid and inflatable paddleboards on the market.

Beau Lake Affiliate Partners: Avantlink / Skimlinks / Sovrn

Images provided by Beau Lake

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AI-generated image of two purple Ube Cream Liqueur cocktails on a bar

November 14, 2024by David Klemt David Klemt No Comments

Will this Drink Trend Lead Us into 2025?

Will this Drink Trend Lead Us Into 2025?

by David Klemt

AI-generated image.

One of the latest drink trends, a unique cream liqueur made from purple yam, may have the staying power to heat up through New Year’s Eve.

Now, when I describe it as unique, I’m not indulging in PR-speak, I mean it; there’s only one Ube Cream Liqueur. That includes, up to this point, additional expressions. Again, there’s only one Uber Cream Liqueur.

Making this liqueur even more exclusive is the fact that just one distillery produces it: Destileria Barako. They’ve done so since 2016. The distillery makes some other intriguing products as well. For example, there’s a lychee and lemongrass liqueur called Gayuma that also includes vacuum-distilled smoke distillate. Compelling…

So, what is Ube? Put very simply, it’s a lavender-colored cream liqueur made from ube. That’s a purple yam, and the liqueur itself calls the Philippines home. Interestingly, while the liqueur is lavender in color, ube can be violet, purple, lavender, and even white.

Before I go any further, a purple yam is not the same as a purple sweet potato. A purple yam will be, generally speaking, sweeter than its sweet potato counterpart, while being slightly more subtle in terms of flavor profile. Expect vanilla up front, with a subtle nutty undertone and finish.

And if you’re curious as to the meaning of “ube,” it translates from Tagalog to English as “tuber.” Quite a literal name for this special vegetable.

Okay, great. But what about the liqueur that appears to be popping up on craft-cocktail-focused menus in the US?

What is Ube?

On the surface, it’s an imported cream liqueur in an attractive, fashionable bottle.

Seriously, look at the Instagram post below; that’s going to grab guests’ attention.

View this post on Instagram

A post shared by Ube Cream Liqueur (@ubecreamliqueur)

Going deeper, Ube is made from the eponymous tuber, coconut husks, and sugarcane vodka. The ingredients are sourced from local farms and their communities throughout the islands that make up the Philippines (of which there are more than 7,600).

The liquid itself is rich and creamy, as one would expect. Like its namesake, Ube’s flavor profile includes vanila, and a subtle nuttiness. However, the sugarcane vodka is detectable, and coconut also shines through.

Along with being unique, it’s also versatile. Bar guests can’t really go wrong with ordering it in just about any configuration: neat, chilled, on the rocks, frozen, in a cocktail… Ube is highly adaptable.

And that, if I had to point to a characteristic beyond flavor and mouthfeel, is likely why this cream liqueur is rising in popularity.

Bar teams can get creative with it. Guests can enjoy it in myriad forms. Even the culinary team can get involved, as it’s an intriguing ingredient for dishes (particularly dessert).

Introducing guests to Ube isn’t a hard sell, either. The bottle and liquid itself are appealing to the eye. And while bar and culinary teams can really tap into their imaginations and talents to create quirky sips and dishes, it works in instantly recognizable drinks as well.

For instance, there’s the Ube Mudslide, Purple Russian (a variant of the White Russian, of course), Ube Colada, Ube Coco Old Fashioned, and even the Ubegroni.

Proceed with Caution

Here’s a a viewpoint with which you may be familiar: Once a trend emerges and people jump on it, it’s no longer a trend. Instead, it either experiences widespread adoption, reaches ubiquity, or dies.

Another viewpoint is that due to social media, trends come and go so quickly that even those that stick around for more than a few days tend to fall off quickly.

Search online for Ube and you’ll likely come across posts about finding it in the US that are a year or more old. It seems that the interest in this particular cream liqueur picked up in earnest around August of this year.

All that is to say this: For the most part, unless a person or group of people originates a trend, everyone else will be a step or two behind if they choose to jump on it. Most trends don’t even actually reach that status; they die in their nascent stage: a fad.

So, operators and their teams should be selective when a product, flavor, menu item, preparation, etc. is getting a lot of attention “suddenly.”

Chasing every trend isn’t efficient, and doing so flies in the face of consistency.

Important Considerations

There are several questions an operator should consider and answer before embracing any trend (or fad). Below, the assumption is that the trend involves a specific product.

Will this resonate with enough guests to make this profitable?
Does this trend work with our brand or are we forcing it to fit artificially?
Can it be obtained easily and consistently? If not, can we make our own housemade version? What will that cost, including labor?
How much will it cost to add this product to our inventory?
What will it cost to train the team to use this product?
Who will train the team on this product? What’s the estimated learning curve? What will training cost, in terms of product and labor?
In terms of pricing, what’s our projected profit margin per item made with this product? How many do we expect to sell on a daily, weekly, and monthly basis, keeping in mind that this is a consumer trend.
How quickly, with the above considerations (and more), can we actually leverage the popularity of this trend? Will it still be popular after we’ve completed our due diligence?

Don’t Abandon Your Standards

This caution isn’t aimed at embracing Ube specifically. Rather, this is advice for considering any trend, product, or menu item.

The standard is for operators to be obsessed with their numbers. Look at the top operators in the business—not necessarily those earning the most awards, but those leading their bars and restaurants to long-term success, and focused on building generational wealth—and you’ll see how much they focus on numbers; they know them inside and out.

All too often it can be tempting to drop standards when something goes sideways. Service goes awry, for example, and we try to take a shortcut to recover.

The same can be said for chasing trends. It can be tempting to just throw a new, trending item on the menu without crunching the numbers, taking a shortcut to leverage the trend as quickly as possible.

A savvy operator will consider the numbers before adding anything to their inventory and menu. It shouldn’t take long, and running the numbers will prove whether the trend is worth pursuing.

Image: Microsoft Designer

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Upscale to luxury hotel room image from Canva

October 11, 2024by David Klemt David Klemt No Comments

Hotel Total + Guest Revenue Management

Hotel Total + Guest Revenue Management: A Comprehensive Approach

by Doug Radkey

In the evolving landscape of hotel revenue management, the focus on traditional metrics like RevPAR (Revenue Per Available Room) and ADR (Average Daily Rate) is shifting.

While these metrics have been the gold standard for assessing a hotel’s performance, they no longer provide a complete picture.

Why, you ask? Because guest expectations and spending patterns have evolved. Hotels are not just places to stay; they are multi-faceted destinations offering a variety of services, such as dining, spa treatments, recreational activities, events, and more.

RevPAR and ADR measure performance based solely on room occupancy and rates, which overlooks the revenue generated from these additional services. They do not account for on-premise spending by guests on activities, food and beverage, wellness services, or other ancillary revenue streams that can impact a hotel’s overall profitability significantly.

Further, these traditional metrics fail to capture the qualitative aspects of the guest experience, such as personalized services, guest satisfaction, and long-term loyalty, all of which play a crucial role in a hotel’s success.

In essence, relying exclusively on RevPAR and ADR can lead to a narrow, and potentially misleading, view of a hotel’s financial health, missing out on opportunities to build a true legacy within this industry.

Where do we go from here, then? Enter Total Revenue Management (TRM) and Revenue Per Available Guest (RevPAG). These “new” metrics offer a more holistic view of a hotel’s financial health, moving beyond just room revenue to encompass the total guest experience, and the entire property’s revenue potential.

Understanding Total Revenue Management (TRM)

Total Revenue Management is a modernized approach that measures and maximizes revenue across all revenue streams within a hotel.

This includes rooms, food and beverage, spa services, recreational activities, and any other revenue-generating departments. TRM is about synchronizing and optimizing these various revenue streams to elevate the hotel’s total profit margin.

Let’s put this into perspective. Picture yourself as a hotel operator in Las Vegas. Maybe there is an instance where you have a group of high-rolling guests staying at your casino hotel/resort. Instead of charging them for their rooms, you decide to comp their stay entirely.

To some, giving away a free room in a city where occupancy rates are crucial might seem like a risky move. But you know that the cost of the room will be a drop in the bucket compared to the potential revenue they could generate on the casino floor, and on-site bar and restaurant. These guests end up spending hours at the tables and slot machines, contributing far more to the bottom line than a single night’s room rate ever could.

But it’s not just about the high rollers. What about off-peak times, where you have to get creative to keep the revenue flowing?

Perhaps you offer discounted spa treatments to your guests on weekdays when the hotel isn’t as busy. To your surprise, these guests who wouldn’t typically splurge on spa services took advantage of the discounted rates. This not only increases your spa revenue during slow periods but also enhances the overall guest experience, turning casual visitors into loyal guests.

These experiences are just two quick samples showcasing how maximizing revenue isn’t about charging for every service; it’s about understanding the broader picture, and making strategic decisions that drive total revenue for your property, every single day.

The framework of TRM is all about understanding the affiliation of each revenue stream available within your property. By taking a comprehensive view of the property’s revenue potential, you can create packages and services that encourage spending across all departments, not just the rooms.

The 5 Advantages of Total Revenue Management

It’s safe to say that implementing TRM can lead to a more robust and modern operation that benefits your hotel in several key areas:

Revenue Growth: TRM goes beyond just room revenue. By focusing on every revenue stream—be it dining, spa services, or recreational activities—TRM maximizes your hotel’s overall revenue potential. This comprehensive approach ensures that every aspect of the guest experience contributes to the bottom line, leading to a more diversified and stable revenue base.
Enhanced Asset Utilization: TRM encourages the optimal use of all hotel facilities, from restaurants to event spaces and wellness centers. By identifying underutilized assets and creating strategies to boost their usage, such as offering special packages or promotions, your hotel can increase its profitability significantly. This not only drives revenue but also elevates the guest experience by offering more value-added services.
Streamlined Operational Costs: A key benefit of TRM is the ability to streamline operations across various departments. Leveraging data and cross-departmental insights improves your hotel’s resource allocation, waste reduction, and implementation of more cost-effective practices. This leads to lower operational costs and increased profit margins, allowing your hotel to reinvest in areas that perhaps enhance the guest experience.
Unified Team Effort: TRM fosters a cohesive workforce by aligning all departments with a common goal of maximizing total revenue. When the front desk, housekeeping, food and beverage, and other teams are all working towards the same objectives, it leads to several improvements. These include enhanced productivity, improved guest satisfaction, and a seamless experience for guests. This unified approach creates a culture where everyone understands how their role impacts your hotel’s success.
Boosted Efficiency and Productivity: Implementing TRM encourages different departments to collaborate more effectively, streamlining processes and reducing redundancies. By focusing on total revenue rather than isolated departmental metrics, your hotel can create a more dynamic and responsive operation. This increased efficiency not only enhances the guest experience, it also drives higher employee satisfaction by creating a more organized and purpose-driven work environment.

Implementing Total Revenue Management

The first step to implementing TRM is to invest in integrated Property Management Systems (PMS) such as Mews, and Revenue Management Systems (RMS) such as Atomize. These systems are essential for tracking, reporting, and forecasting revenue across the entire property.

Further, such platforms provide real-time data that helps inform strategic decisions.

One of the biggest challenges in implementing TRM, however, is bridging the gap between technology, staff, and different departments.

Hotels must ensure that data flows across all departments seamlessly, allowing for cohesive decision making. This requires both employees and the property’s infrastructure to adapt to new behaviors and processes. Staff training and a culture that embraces data-driven decision making are crucial for the successful implementation of TRM.

The Transition from RevPAR to Revenue Per Available Guest (RevPAG)

While TRM offers a broad view of the hotel’s revenue potential, RevPAG provides a more guest-centric metric for assessing performance.

RevPAR (Revenue Per Available Room): You’re likely familiar with this one. This is the traditional metric that provides a quick snapshot of a hotel’s performance by considering both occupancy (OCC) and the average daily rate (ADR). While useful, it focuses solely on room revenue, ignoring other revenue streams, and the overall guest experience.
RevPAG (Revenue Per Available Guest): Unlike RevPAR, RevPAG looks at total revenue generated by each guest during their stay, regardless of how many rooms are sold, or how many guests occupy a room. It captures all spending, including dining, spa services, recreational activities, and more. This metric offers a more advanced understanding of guest behavior, and their total contribution to the hotel’s revenue.

The 4 Advantages of Revenue Per Available Guest

Focusing on RevPAG can drive on-premise spending, and enhance the guest experience. Some advantages for your hotel may include the benefits below.

Engaging Loyalty Programs: Loyalty programs are a powerful tool for encouraging repeat visits and on-property spending. Offering rewards, exclusive perks, and personalized incentives helps your operation foster long-term relationships with guests. Such programs prompt guests to return, and continue spending within the hotel. A well-designed loyalty program not only increases revenue per guest but also strengthens brand loyalty, turning one-time visitors into lifelong advocates.
Personalized On-Site Experiences: Understanding guest preferences will further allow your hotel to craft tailored packages and experiences that encourage guests to spend more on-property. Whether it’s guided tours, hands-on cooking or mixology classes, or themed live entertainment, these curated activities enhance the guest experience, and drive additional revenue. Personalized offerings create memorable moments that guests are willing to pay a premium for, increasing overall spend per guest.
Wellness and Lifestyle Services: Investing in wellness services such as spas, fitness centers, and recreational facilities opens up new revenue streams, and enhances the overall guest experience. By offering wellness packages, relaxation treatments, or fitness classes, your hotel can cater to the growing demand for health and wellness experiences. These services encourage guests to spend more on-premise, turning your hotel into a desired destination that meets various guest needs.
Elevated Dining and Beverage Offerings: Exceptional culinary and mixology experiences can enhance on-premise spending significantly. By offering unique dining options like chef’s table events, wine tastings, or mixology masterclasses, your hotel can attract food and beverage enthusiasts, and encourage them to spend more during their stay. These high-quality experiences boost revenue, and elevate your hotel’s reputation as a destination for food and drink.

Implementing Revenue Per Available Guest

To maximize RevPAG, your hotel needs to focus on creating personalized guest experiences, and integrating technology seamlessly across all touchpoints. This involves taking the steps below.

Personalized Guest Experiences: Tailoring services and offerings to your targeted, individual guest preferences to not only enhance their stay but also encourage additional spending. This can include personalized room amenities, bespoke on-premise experiences, and exclusive access to hotel facilities.
Seamless Technology Integration (Tech-Stack): Integrating Revenue Management Systems (RMS) with other hotel technologies, such as PMS and POS systems, allows your hotel to track guest behavior, spending patterns, and preferences in real-time. This data is invaluable for identifying up-selling opportunities, and creating targeted marketing strategies.
Total Revenue Management Mindset: Adopting a TRM mindset involves viewing each guest as an opportunity to generate multiple streams of revenue. Your hotel operations team should train staff to recognize and act on up-sell opportunities, while maintaining a high standard of service.

Benefits of Using Both RevPAG and Total Revenue Management

When used together, RevPAG and TRM provide a powerful framework for maximizing your hotel’s revenue and profitability.

Revenue Optimization: TRM ensures that every revenue stream is optimized, while RevPAG provides insight into the guest’s overall value. Together, they allow your hotel to create targeted strategies that maximize revenue from both rooms and ancillary services.
Enhanced Guest Experiences: By focusing on RevPAG, your hotel can deliver personalized experiences that encourage guests to spend more on-property, leading to higher satisfaction, and repeat business.
Informed Decision Making: With a TRM approach, your hotel can gain access to comprehensive data across all departments. This data-driven approach enables more informed decisions about pricing, packaging, and service offerings.
Competitive Edge: Hotels that adopt TRM and RevPAG are better positioned to differentiate themselves from competitors, offering a more value-driven guest experience while maximizing profitability.
Sustainable Growth: Implementing TRM and RevPAG strategies leads to sustainable growth by optimizing revenue streams, and reducing reliance on room occupancy alone.

This diversified revenue approach enhances your hotel’s resilience in fluctuating market conditions.

My Final Thoughts

There’s no question, the hotel industry is evolving, and so must its approach to revenue management.

Total Revenue Management and Revenue Per Available Guest offer more comprehensive metrics that go beyond the limitations of traditional measurements like RevPAR and ADR. By adopting a modernized approach that integrates these metrics, your hotel can optimize revenue, enhance guest experiences, and build a more robust, modern operation.

To realize the benefits of TRM and RevPAG fully, your hotel needs to invest in technology, embrace a guest-centric mindset, and foster a culture of data-driven decision-making. In doing so, you’ll unlock new opportunities for your brand that drive profitability, and secure a more competitive edge.

Image: Canva

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October 7, 2024by David Klemt David Klemt No Comments

‘Tis the Season to get ‘Jacked

‘Tis the Season to get ‘Jacked

by David Klemt

Not an AI-generated image!

We celebrate bourbon, “America’s native spirit,” in September. But did you know that there’s another American spirit we celebrate in October?

Known by some as “America’s first moonshine,” applejack is just as important to US history as bourbon. In fact, it’s believed it predates bourbon by a century.

There’s no doubt that alcohol has played a significant cultural role throughout American history. Of course, having a tipple or two still plays a vital role in US culture. Why else would neighborhood, sports, and cocktail bars be so prevalent?

If alcohol weren’t a cultural cornerstone, there wouldn’t have been a cocktail revival from 2000 to 2017. That’s to say nothing of Prohibition and its impact on not just the US but Canada, Mexico, and the Caribbean.

Whiskey reigns supreme when we’re talking about American spirits. In particular, bourbon grabs the headlines.

But long before bourbon snatched the America’s Spirit title, applejack was being produced in what we now call the state of New Jersey. At one point, applejack was even called Jersey Lightning.

Speaking of lightning, that speaks to the origins of applejack. White lightning, white dog, white whiskey… Each of these is evocative of moonshine. And while that term may conjure up illegal alcohol production, the word originally meant homemade booze.

That’s precisely what applejack was when it was first crafted during the American colonial era. Like I said, alcohol is ingrained in American culture.

Moonshine, and Brandy, and Whiskey, Oh, My!

According to Lisa Laird Dunn, the president and global ambassador of Laird & Company, the oldest producer of applejack, the original native spirit was an American staple.

Dunn represents the ninth generation of the Laird family to lead the eponymous distillery. Alexander Laird, her ancestor, left Scotland in the 1690s, arriving in Jersey. Per the current president of Laird & Company, the belief is that Alexander was involved in some way in Scotch production.

Therefore, Alexander turning to distillation in his new home would make sense. And what would make even more sense is to focus production on an abundant American crop. At that time, that meant apples.

So, what’s applejack? First, let’s get some technicalities out of the way. Applejack is a fruit brandy. In particular, it’s an apple brandy.

As reported by Chilled Magazine, Dunn has explained that the terms “applejack” and “apple brandy” are interchangeable. However, there is a technical difference between applejack and blended applejack.

The former, just like apple brandy, can only be labeled as such if it has been created solely from apples. As in, 100 percent made from apples. In contrast, the latter is a blend between applejack and a neutral grain spirit.

One more technicality: applejack is not, as many believe incorrectly, a whiskey. It’s possible that misconceptions surrounding moonshine and the term “lightning” may lead some people to think “Jersey Lightning, white lightning, moonshine… Applejack is moonshine. Moonshine is whiskey. Applejack is whiskey.”

Jack It

Have you been wondering where the “-jack” in “applejack” comes into play?

Well, wonder no more; it’s a nod to the production method of this centuries-old spirit.

Simply put, jacking is freeze fermentation. In short, fermented cider (a.k.a. hard cider) is frozen, ice is removed, and the alcohol content increases.

An alternate method is to fill a cask with fermented cider, begin the freezing process, tap the cask, and pour off the liquid. Jacking results in low-ABV juice reaching an ABV of 40 percent or more. In that way, applejack is normally much more powerful than hard apple cider. So, plan accordingly if you’re going to enjoy one.

Essentially, “applejack” is a portmanteau of “apple brandy” and “jacking.”

How to Enjoy Applejack

As we head into fall, it makes sense to celebrate Applejack, and get this spirit onto guests’ radar.

A pure applejack like Laird & Company’s is fantastic neat or on the rocks. Just bear in mind that ABV; ensure you and your team are serving it responsibly. Again, this isn’t hard apple cider—it’s much stronger.

If you and your bar team want to make Toddies and cocktails, a blended applejack will do, although I prefer Laird’s for a cocktail.

Likely the most-famous applejack cocktail is the Jack Rose. To make this drink combine one-and-a-half ounces of applejack, three-quarters of an ounce of fresh-squeezed lemon or lime juice, and a half-ounce of grenadine in a shaker with ice. Shake well, then strain into a coupe or Martini glass, and garnish with a lemon twist.

Applejack can also replace other base spirits. Take, for instance, the Applejack Old Fashioned. Start with two ounces of applejack, and either a half-ounce of maple syrup or a quarter-ounce of simple syrup. Add these to a mixing glass, along with two dashes of Angostura bitters, two dashes of orange bitters, and ice. Stir, strain into a rocks glass over fresh ice (a large cube or sphere is a nice touch), then express an orange peel, and use it as garnish.

You and your team have an entire month to celebrate applejack with guests. Get creative with an LTO menu, and create a signature seasonal sip all your own.

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October 4, 2024by David Klemt David Klemt No Comments

The Banks Have it Wrong

The Banks Have it Wrong

by Doug Radkey

It’s widely assumed that a well-written business plan will impress banks and SBA-type programs, and secure the funding required to launch a hospitality concept.

When starting a bar, restaurant, or hotel, most people are told exactly that: “You just need a business plan.”

The problem, however, lies in how these business plans are created. Too often, aspiring entrepreneurs turn to fill-in-the-blank templates provided by banks or online resources. They believe that simply completing the form will open the doors to financing, and start them on the path to building a successful business.

Unfortunately, this approach can do more harm than good. Let’s explore why the traditional reliance on business plan templates, including AI-generated business plans, can set both businesses and lenders up for failure.

In this article I dive into real-world examples, examine the success and failure rates of loans in the hospitality industry, and outline why banks and other programs need to rethink their loan approval processes to reduce risks for not only themselves but the entrepreneurs they serve.

The Problem with Business Plan Templates

Imagine this scenario: You’re excited to open a hospitality business, but you don’t know where to begin. You do some research, and learn quickly that you need a business plan to secure a loan. The bank or Small Business Administration (SBA) offers you a convenient template to complete, or you find one online that seems like it will do the job. You fill in the blanks, submit the plan, and, to your delight, the bank approves all or a portion of your loan.

However, the approval doesn’t mean your business plan is actually sound. Read that again.

It only means it meets the basic requirements of the bank’s loan approval checklist. A template provides a false sense of security, making entrepreneurs think they’ve covered all their bases when, in reality, crucial aspects of the business are left unaddressed.

For example, I recently reviewed a business plan for a client who had used a bank-provided template prior to our engagement. The plan was approved by the bank, but upon closer inspection, I found numerous errors: the start-up financial projections were unrealistic, the cash-flow analysis was incomplete, and crucial aspects of market analysis were missing.

The result? The project is on track to run out of money before it even opens its doors.

This example highlights a troubling issue: Templates don’t provide clarity, and they certainly don’t prompt critical thinking about the true costs to start, and the real challenges that the business will face once it’s operating.

The Risks of Using Templates

Business plan templates may seem like an easy solution, but they come with significant risks.

False Sense of Security: A completed template may look professional, but it doesn’t guarantee that the plan is sound or comprehensive. Key elements can be glossed over, copy and pasted, or simply misunderstood.
Lack of Critical Thinking: A template doesn’t ask tough or industry-specific questions. It doesn’t force you to analyze the competitive landscape, identify potential risks, or develop a clear financial strategy around a unique concept.
Inadequate Financial Analysis: Templates often provide a basic structure for financial projections but fail to help you understand the true costs of starting and running a business. A template won’t be specific to your concept, your revenue and cost channels, or industry benchmarks. The template won’t catch errors in your financials, leaving you and the bank exposed to significant risk.
Inability to Stand Out: In a crowded market such as the US, Canada, or Europe, differentiation is key. A cookie-cutter business plan won’t help you stand out from the competition. Despite handing them out, banks see thousands of these plans, and if you don’t demonstrate why your concept is unique and viable, you’re setting yourself up for denial.

The Dangers of AI-Generated Business Plans

As technology advances, AI-powered business plan generators are becoming more popular. I’ve seen a few ads for them over the past few months.

These tools claim to be able to create a business plan in minutes, promising efficiency and ease. However, relying on AI to write your business plan is just as dangerous as using a template. The same issues apply: lack of clarity, shallow financial analysis, and the absence of critical thinking.

AI-generated business plans may provide a surface-level solution, but they cannot replace the deep analysis required to make a business successful. Business plans need to be customized and thought out thoroughly, with insights drawn from real-world strategic planning.

Hospitality Industry Loans: Success and Failure Rates

The hospitality industry—particularly the accommodation and food service sectors—has one of the highest loan approval rates, but it also has some of the highest operator failure rates.

According to the U.S. Small Business Administration, in 2022 alone, 6,297 loans were approved for the accommodation and foodservice industry. These accounted for 13.2 percent of all small business loans, and 19.2 percent of total loan dollars. The average loan amount was US $784,768.

Despite these impressive loan numbers, the success rate of a business in this industry tells a different story. Only about 20 percent of hospitality businesses make it to their fifth year, and the average time to pay off a business loan ranges from five to ten years. The failure rates are driven by various factors, including cash-flow problems, a lack of market understanding, and poor financial planning.

So, why do banks continue to approve business loans based on inadequate business plans?

The Need for More than a Business Plan

Each reason for a business failing points to one underlying cause: lack of strategic clarity. In many cases, these businesses began with a standard business plan but skipped the other non-negotiable playbooks truly needed to be successful.

A well-rounded approach to strategic planning includes much more than a business plan.

Aspiring or seasoned bar, restaurant, and hotel operators need to develop feasibility studies to determine whether their business models can succeed in their target market. They also need concept development plans, prototype drawings, brand strategy plans, tech-stack plans, marketing plans, and financial playbooks.

Only after these steps are completed should the final business plan be written.

How Banks Can Improve Loan Success Rates

Banks have an opportunity to reduce their risks significantly—and increase the success rates of the businesses they fund—by requiring more than the completion of a business plan template during the loan approval process.

Instead, they should request detailed feasibility studies, along with the other playbooks, that go beyond the basics.

By working with entrepreneurs to ensure they have true clarity about their business model, market conditions, and financial outlook, banks can reduce default rates, and build stronger partnerships with their clients.

In addition, by encouraging the use of customized plans over templates or AI-generated plans, banks can ensure that they are investing in businesses with a clear path to success.

My Final Thoughts

Yes, a business plan is a vital tool for any entrepreneur, but it must be more than just a template, and lenders need to stop relying on these fill-in-the-blank approaches.

To build a successful business, you need more than a plan on paper; you need clarity, strategy, and a deep understanding of your market and financials. It’s time for banks, financing programs, and even angel investors to get it right and demand more than a standard business plan template. Only then will both the business and the lender see the long-term success they’re striving for.

Perhaps they, too, can then achieve success rates in the 90th percentile.

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October 3, 2024by David Klemt David Klemt No Comments

The Psychology of Dining Space Design

The Psychology of Dining Space Design

by Nathen Dubé

When someone decides they’re going to dine out, they’re basing their selection on more than just what they want to eat; it’s about the entire experience.

The design and layout of a dining space impact guest behavior, emotions, and overall satisfaction to a significant degree. From the colors on the walls to the lighting overhead, every element plays a role in shaping the dining experience.

This article explores the psychological principles behind effective dining space design, offering insights into how restaurants can use these elements to enhance guest satisfaction, and boost sales.

The Impact of Color Schemes

How Different Colors Evoke Specific Emotions and Moods

Colors are powerful tools in setting the mood and atmosphere of a dining space. Different colors can evoke specific emotions and reactions, influencing how guests feel and behave in a restaurant.

Warm colors like reds, oranges, and yellows are stimulating, and can create a lively, energetic atmosphere, often used in fast-food restaurants to encourage quick eating and high turnover.

On the other hand, cool colors such as blues, greens, and purples have a calming effect, promoting relaxation and longer stays, making them ideal for fine-dining establishments.

Neutral colors like whites, grays, and beiges provide a clean and modern look, allowing other design elements to stand out, and making a space feel larger and more open.

Examples of Color Choices and Their Psychological Effects

Red is known to stimulate appetite and increase heart rate, making it a popular choice for fast-food chains.

However, it should be used sparingly in fine dining as it can be overwhelming.

Blue, on the other hand, suppresses appetite and promotes calmness, suitable for seafood restaurants or venues where a relaxed dining experience is desired. Green, associated with freshness and health, is often used in vegetarian and farm-to-table restaurants to reinforce the concept of natural, wholesome food.

Case Studies of Restaurants Using Color to Influence Dining Choices and Atmosphere

Consider McDonald’s use of red and yellow in its branding and interiors. These colors stimulate hunger, and create a sense of urgency, encouraging quick dining and high guest turnover.

In contrast, Starbucks uses a palette of warm browns and greens to create a cozy, inviting atmosphere that encourages guests to linger, increasing the likelihood of additional purchases.

Lighting and Its Psychological Effects

The Role of Lighting in Creating Ambiance and Influencing Guest Behavior

Lighting is a crucial aspect of dining space design, affecting the ambiance and guest experience significantly. Different types of lighting can evoke various moods, and influence how guests perceive the space and their meals.

Natural lighting enhances mood, and makes spaces feel more open and inviting. Restaurants with ample natural light are often perceived as more comfortable and welcoming. Ambient lighting sets the overall tone of the space. Soft, warm lighting can create an intimate and cozy atmosphere, while bright, cool lighting can energize the space. Task lighting focuses on specific areas, such as tables or bars, enhancing functionality and highlighting key features.

Differences Between Natural, Ambient, and Task Lighting

Natural lighting is best for creating a connection with the outdoors, and making spaces feel airy and fresh, often achieved through large windows and skylights.

Ambient lighting provides overall illumination, setting the mood and ensuring guests feel comfortable. Typically, ambient lighting is provided via ceiling lights, chandeliers, and wall sconces.

Task lighting is used for specific purposes, such as illuminating dining tables or highlighting menu boards, typically achieved with pendant lights and under-cabinet lighting.

How Lighting Affects the Perception of Space, Food, and Time Spent Dining

Bright lighting can make a small space feel larger, while dim lighting can create a more intimate and enclosed atmosphere.

Proper lighting enhances the visual appeal of food, making it look more appetizing. Warm, soft lighting is often used in fine dining to highlight the colors and textures of dishes.

Lighting can also influence how long guests stay. Dim, cozy lighting encourages lingering, while bright lighting can make people eat faster and leave sooner.

Acoustics and Soundscapes

The Impact of Noise Levels and Music on the Dining Experience

Sound is a critical yet often overlooked element of dining space design. Noise levels and the type of music played can impact the dining experience significantly.

High noise levels can create a sense of energy and excitement, but may also lead to discomfort and difficulty in conversation. It’s essential to strike a balance, ensuring the space is lively without being overwhelming.

Low noise levels promote relaxation and intimacy, suitable for fine dining or romantic settings. However, overly quiet spaces can feel uninviting and lack atmosphere.

Balancing Background Noise and Creating an Appropriate Sound Environment

Effective sound management involves balancing background noise, and creating a sound environment that complements the restaurant’s concept and ambiance.

Strategies include acoustic panels to absorb sound and reduce noise levels, creating a more comfortable environment. Soundproofing materials like carpets, curtains, and upholstered furniture can help dampen noise.

Music selection is also crucial, with the type of music and its volume aligning with the restaurant’s theme, and the desired guest experience.

Examples of Restaurants Using Sound to Enhance Guest Comfort and Satisfaction

Many upscale restaurants use a combination of soft background music and sound-absorbing materials to create a tranquil dining environment.

For example, the use of live piano music in high-end restaurants can enhance the ambiance without overwhelming conversation.

Seating Arrangements and Layout

The Psychological Impact of Different Seating Configurations

Seating arrangements and layout play a significant role in influencing guest behavior and satisfaction. The choice between booths, communal tables, and individual seating can impact how guests perceive the space, and interact with others.

Booths provide privacy and comfort, making them ideal for intimate gatherings and longer stays, creating a sense of enclosure and personal space. Communal tables encourage social interaction and a sense of community, suitable for casual dining, and environments that promote socializing. Individual seating offers flexibility and can cater to a variety of group sizes, allowing for easy reconfiguration of the space.

How Layout Affects Flow, Privacy, and Social Interactions

The layout of a dining space affects the flow of movement, privacy levels, and the nature of social interactions. Key considerations include:

ensuring there is enough space for guests and staff to move comfortably without congestion;
clear pathways; and
strategic placement of furniture to enhance flow.

Balancing the need for social interaction with the desire for privacy is essential, using partitions, plants, or varying seating heights to create distinct zones.

Design the space to facilitate the type of interaction you want to encourage, with communal tables and open layouts promoting socializing, while booths and nooks offer more private dining experiences.

Strategies for Optimizing Seating to Enhance Guest Comfort and Turnover Rates

Optimizing seating involves creating a comfortable environment while ensuring efficient use of space to maximize turnover rates.

Strategies include:

using a mix of seating types to cater to different guest needs and group sizes;
investing in high-quality, comfortable seating, which encourages longer stays and repeat visits; and
designing the layout to maximize the number of seats without compromising comfort to ensure tables are spaced adequately, allowing for easy movement and service.

Case Studies and Expert Insights

Interviews with Interior Designers and Behavioral Psychologists

Interviews with interior designers and behavioral psychologists provide valuable insights into the principles of effective dining space design. Experts can share their experiences and recommendations for creating spaces that enhance guest behavior and satisfaction.

Key Insights on Effective Design Strategies

Key insights from expert interviews include adopting a holistic design approach, considering all elements—color, lighting, acoustics, and layout—together to create a cohesive and inviting space.

Focusing on the needs and preferences of your target audience is crucial, designing with the guest experience in mind to create a memorable dining environment.

Continuous improvement is essential. This involves reviewing and updating your design regularly to keep it fresh and relevant, and staying informed about new trends and technologies in dining space design.

Real-World Examples of Restaurants That Have Successfully Utilized Design Psychology

Real-world examples highlight how restaurants have implemented design psychology principles successfully to enhance guest satisfaction and increase sales.

For instance, a fine-dining restaurant may use soft lighting, elegant color schemes, and acoustic panels to create an intimate and luxurious dining experience, resulting in a space where guests feel relaxed and pampered, leading to longer stays and higher spending.

Conversely, a casual eatery might incorporate vibrant colors, upbeat music, and communal seating to foster a lively and social atmosphere, attracting a younger crowd looking for a fun and engaging dining experience, boosting guest turnover and repeat visits.

Highlighting Specific Design Choices and Their Outcomes

Specific design choices, such as using warm lighting to highlight food presentation or arranging seating to encourage social interaction, can impact guest perceptions and behavior significantly.

Highlighting these choices and their outcomes provides practical examples of how design can influence the dining experience.

Practical Tips for Optimizing Dining Space Design

Actionable Advice for Restaurant Owners and Designers

Implementing effective dining space design requires practical and actionable steps.

Here are some tips to help restaurant owners and designers optimize their spaces:

Choose Colors Wisely: Select color schemes that align with your restaurant’s concept, and desired guest experience. Use warm colors for energetic spaces, and cool colors for calm, relaxing environments.
Optimize Lighting: Ensure a balance of natural, ambient, and task lighting to create the right ambiance, and enhance the dining experience. Use dimmers to adjust lighting levels based on the time of day, and desired mood.
Consider Acoustics: Use sound-absorbing materials and strategically placed music to create a comfortable sound environment. Avoid excessive noise that can detract from the dining experience.
Plan the Layout: Design the layout to maximize space efficiency while ensuring guest comfort. Use a mix of seating types, and ensure clear pathways for easy movement.
Align Design with Brand Identity: Ensure that all design elements, from colors to furniture, reflect your brand identity, and resonate with your target audience.

Tips on Choosing Colors, Lighting, and Furniture

Choosing the right colors, lighting, and furniture can have a significant impact on the dining experience:

Colors: Choose colors that evoke the desired emotions, and match your brand’s personality. Test different shades to find the perfect balance.
Lighting: Invest in quality lighting fixtures, and consider the color temperature of bulbs. Use lighting to highlight key areas, and create focal points.
Furniture: Select comfortable and durable furniture that complements the overall design. Consider ergonomic options to enhance guest comfort.

Conclusion

The design of a dining space is a crucial component of the guest experience. Understanding and applying the psychological principles of color, lighting, acoustics, and layout helps restaurant owners and designers to create environments that influence guest behavior, enhance satisfaction, and boost sales.

Thoughtful design not only improves the dining experience but also reinforces brand identity, and drives business success.

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October 2, 2024by David Klemt David Klemt No Comments

5 Books to Read this Month: October 2024

5 Books to Read this Month: October 2024

by David Klemt

Our October book selections focus on restaurant and bar interior design, developing leadership skills, an infamous liqueur, and themed cocktails.

To review the book recommendations from September 2024, click here.

Let’s jump in!

Dining Out: The New Restaurant Interior Design

Impactful bar, restaurant, and hotel design is paramount. Your space is how your guests interact with your brand in person and online. It’s much more than just four walls; your venue is the physical manifestation and representation of your concept. Therefore, it’s important that you nail your design details. I think you’ll find Dining Out inspiring.

From Amazon: “The book takes the reader on a journey to some of the most cutting-edge examples in restaurant design and architecture from around the world. With a descriptive text for each project, it focuses on the craftmanship, color schemes, decorative details, lighting and furnishings that form the identity of the space, serving as a source of inspiration and reference for professional designers, foodies and other people involved in the restaurant business. Interior and exterior photographs, as well as blueprints of each design, present the reader with a rich range of styles, from modern minimalist spaces to ones defined by bold contemporary colors, a sleek industrial look or designs that look to the past for inspiration.”

Order your hardcover copy here.

Reset: How to Change What’s Not Working

Part of being an entrepreneur or member of a leadership team is implementing new initiatives. And sometimes, after monitoring these new initiatives for a set amount of time, we find out that they’re just not working. So, what do you do? This book will help you take decisive, timely action.

From Amazon: “Changing how we work can feel overwhelming. Like trying to budge an enormous boulder. We’re stifled by the gravity of the way we’ve always done things. And we spend so much time fighting fires—and fighting colleagues—that we lack the energy to shift direction.

“But with the right strategy, we can move the boulder. In Reset, Heath explores a framework for getting unstuck and making the changes that matter. The secret is to find ‘leverage points’: places where a little bit of effort can yield a disproportionate return. Then, we can thoughtfully rearrange our resources to push on those points.”

Place your pre-order for this book today.

Cocktails and Consoles: 75 Video Game-Inspired Drinks to Level Up Your Game Night

At the end of August, I shared some interesting information from a Datassential report. According to the intel agency, close to 200 million Americans are gamers, and that interest in gaming spans all ages. Further, gamers spent well over $50 billion on this particular hobby in 2023. Datassential also found that 45 percent of gamers have made F&B decisions after consuming video game-related ads or content, so this info is relevant to restaurant and bar operators.

From Amazon: “Created especially for video game fans, this cocktail book features controller-friendly recipes that all offer playful homage to favorite games and characters including The Oregon Trail Buck (The Oregon Trail), Pom of Power (Hades), The Miles Edgeworth MarTeani (Ace Attorney), The Cake Is a Lie (Portal), Stardrop Swizzle (Stardew Valley), Miriel, Pastor of Vows (Elden Ring), Ether (Final Fantasy XIV), Liquid Snake (Metal Gear Solid), Lady Dimitrescu Fizz (Resident Evil Village), Sardegna Simulator Spritz (Gran Turismo), Falcon Punch (Super Smash Bros.), and more. Cocktails and Consoles has the perfect drink for every player and every video game!

Click here to order your copy.

Malört: The Redemption of a Revered and Reviled Spirit

So, perhaps I’m a bit odd, but I like the taste of Malört. Strangely, even though I grew up outside of Chicago and began my journey in bars and nightclubs in the city, I didn’t try Malört until I moved to Las Vegas. If you haven’t tried it, and you have a distributor who can get it for your bar reliably, you, your staff, and your guests are in for an experience.

From Amazon: “Author and beer expert Josh Noel unpacks a uniquely American tale, equal parts culture, business, and personal relationships—involving secret love, federal prison, a David vs. Goliath court battle, and, ultimately, the 2018 sale of Jeppson’s Malört, which made Pat Gabelick, a 75-year-old Chicago woman who spent much of her life as a legal secretary, into an unlikely millionaire.”

Grab yours here!

Bar Hacks: Developing The Fundamentals for an Epic Bar

Yep, I’m taking the opportunity to recommend Doug Radkey’s first book. Radkey is, as you may know, the president of KRG Hospitality. In his this book he explains the importance of nailing the fundamentals in order to:

start your operator journey in the best possible position;
stabilize your business; and
scale when the time comes, if that’s what you want.

From Amazon: “This informative and conversational book is the perfect read for aspiring or seasoned bar, pub, lounge, or even restaurant owners, operators, and managers looking for that competitive edge in operations! If you’re looking for both fundamental and in-depth planning methods, strategies, and industry focused insight to either start or grow a scalable, sustainable, memorable, profitable, and consistent venue in today’s cut-throat industry–Bar Hacks is written just for you!”

Click here to get your copy today!

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October 1, 2024by David Klemt David Klemt No Comments

Program for Unique Holidays: October 2024

Program for Unique Holidays: October 2024

by David Klemt

Do you want to stand out from from other restaurants and bars in your area? Change how you think about your October holiday programming.

Several holidays are set against every date on the calendar, and this month is no exception. These holidays range from mainstream to esoteric.

Pay attention to the “weird” or unique holidays to raise eyebrows, carve out a niche for your restaurant or bar, and attract more guests. Why do what everyone else is already doing? Why program only around the same holidays as everyone else?

To provide a handful of examples, October boasts celebrations of the cheeseburger, the double cheeseburger, cheese pizza, pepperoni pizza, beer, and guacamole. Those are fantastic F&B holidays sure to appeal to your guests. However, you can still celebrate some “out there” holidays to get people’s attention and draw them to your business.

Of course, you shouldn’t try to celebrate every holiday, strange or otherwise. Focus on the days that are authentic to your brand; resonate with your guests; and help you grab attention on social media.

You’ll find suggestions for promotions below. However, the idea behind our monthly holiday promotions roundup is to inspire you and your team to get creative and come up with unique programming ideas.

For our September 2024 holidays list, click here.

October 1: The New National Taco Day

That’s right; National Taco Day has changed! You can read my article addressing this change here for more details, but what you need to know is that from today onward, National Taco Day will always fall on a Taco Tuesday.

October 2: Walk Your Dog Week

If your venue is dog friendly, and you operate in at least a decently walkable city or town, this is a great week to invite your guests to pop in for a dog treat, a bite, and a drink with their best friends.

October 4: Plaidurday

This day is dedicated to plaid. Plaid shirts, plaid pants, plaid shoes, plaid hats, plaid coats, plaid scarves, kilts featuring a tartan… If it’s plaid, encourage your guests to come by your place while they’re wearing it.

October 11: It’s My Party Day

Okay, this is an odd one. Really, it’s all about nostalgia. Technically, it’s about people revisiting their sweet sixteen parties, which is incredibly specific. Personally, I’d tap into your understanding of your guests and come up with a nostalgic theme that will appeal to them. After all, October is all about dressing up and themed parties.

October 12: National Motorcycle Ride Day

If your venue is motorcycle friendly, encourage your guests who ride to organize a ride, with a stop at your business to relax and refuel.

October 15: National Chicken Cacciatore Day

Recently, we addressed the importance of putting your spin on classic comfort foods. Chicken cacciatore, a recipe that’s about 600 years old, certainly falls into this category; it’s a classic comfort food, and your kitchen team can certainly put their own take on it.

October 21: Apple Day

We also addressed applejack, America’s first native spirit, just yesterday. Sure, you can do caramel apples or apple pie to celebrate this day, but I think you should bring your bar team into the mix, and create an LTO menu featuring applejack cocktails.

October 24: National Food Day

It sounds like this holiday is incredibly open ended, doesn’t it? A blank slate for any cuisine or food item you want to program a holiday promotion to leverage.

However, it’s specifically focused on featuring natural foods. For tips on how to build a natural, farm-to-table menu, check out KRG Hospitality chef consultant Nathen Dubé’s article here.

October 25: Chucky, the Notorious Killer Doll Day

I’ve included this because, wow, is it specific. It’s also a great day to play the Child’s Play movies and Chucky television show, within the confines of the proper licenses, of course.

October 30: National Candy Corn Day

Candy corn sucks, and if you agree (which means you’re correct), you’ll use this day to campaign against this food crime against nature.

Image: Ivan Bertolazzi on Pexels

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September 27, 2024by David Klemt David Klemt No Comments

Someone to Rely On: Accountability

Someone to Rely On: Accountability Partners

by Jennifer Radkey

To share or not to share, that is the question. More specifically, should you share your goals with others or should you keep them top secret?

I find there are three different groups of people when it comes to goal setting. There are the people who like to shout their goals from the mountaintop for everyone to hear. Then there are those who share with just a few select people. And, of course, the people who keep their goals entirely to themselves.

Is one approach better than another? The answer to that question depends on who you are telling your goals to, if anyone.

Be Strategic

You need to be strategic with whom you share your goals. Before you tell someone an intended goal you need to consider if sharing with them will affect your chances of reaching it.

There has been quite a lot of research recently on goal setting. One of these studies was done by NYU psychologist Peter Gollwitzer, and it included four tests.

In these tests subjects wrote down their goals, and then worked on them for up to 45 minutes. They were allowed to stop working on their goal at any time. Half of the test subjects kept the goals they had written down to themselves; the other half announced them out loud to the group.

Here’s the interesting thing: Those who had kept their goals to themselves spent the entire 45 minutes working on their goal, and still felt they had a ways to go before reaching it. The study participants who announced their goals to the group averaged only 33 minutes of working on their goal, and felt that they were close to completing it. So, they didn’t feel the need to continue working on it.

Essentially, they gave up on it.

Be Cautious

What does all this suggest? Well, due to how our brains work, sharing our goals gives us the same psychological satisfaction as actually achieving them. Therefore, we don’t do the same amount of hard work to reach them.

Hearing a lot of personal praise from others when we share a goal gives us that hit of satisfaction, making the process of achieving it less necessary. On the opposite end, hearing disapproval of our goals may make us doubt ourselves, and give up before even getting started.

So, should you keep your goals top secret? While research is still being done on this topic, it appears that sharing your goals with carefully selected individuals and reporting on your progress with them can actually aid you in achieving your goals.

You need an accountability partner.

Be Selective

When seeking an accountability partner you want to choose someone who embodies three main traits. They need to be impartial, honest, and positive.

An impartial accountability partner is not personally invested in whether or not you reach your goal. They come from a neutral space, and while they are rooting for you to succeed, there’s nothing in it for them either way.

They are able to provide unbiased observations, and offer a very helpful outsider perspective that often allows for greater clarity.

Friends can serve in this role if they don’t have a personal stake in whether you reach your goal. They would like you to because they want to see you succeed, but there’s nothing in it for them, no matter the outcome.

If your goal is to open a new restaurant, your spouse, as supportive and amazing as they are, may not be the best accountability partner. This is because the outcome of you achieving or not achieving this goal is going to have implications on their own life as well.

An honest accountability partner can be relied on to tell you the truth, and to ask the questions needed for you to be honest with yourself. They don’t tell you what you want to hear; they tell you what you need to hear.

In order to reach goals you need someone who will spark light on reality, someone who will point out what you are doing well, and what you may not be doing competently. They are honest in a helpful way, never in a degrading way. I don’t believe in being brutally honest; we should all be honest while remaining respectful of others.

Be Mindful

Lastly, the best accountability partners have a positive mindset. They will help you seek ways in which you can improve and grow.

A great accountability partner will cheer on your successes, and help you create action plans when reaching your goals becomes challenging. An accountability partner is there to help you thrive, not bring you down.

Effective accountability partners can be difficult to find. This is one reason why the coaching industry has taken off like it has. A good life coach becomes an accountability partner, a sounding board, and creates space for self-discovery and planning.

Unless you are organized, resilient, and dedicated to taking action, you may want to share your goals with an accountability partner who can help you stay focused and motivated along the way.

As for the social media blasts sharing your newest goals…maybe hold off on those until you have reached the goal. As good as it may feel to share with everyone, you may actually be doing more harm than good.

Cheers to personal and professional growth!

Image: Medienstürmer on Unsplash

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