News | KRG Hospitality

June 9, 2022by David Klemt David Klemt No Comments

2022 50 Best Bars: North America

2022 50 Best Bars: North America

by David Klemt

Probably a speakeasy.

The World’s 50 Best Bars ranking for North America is official and the bars are, of course, extraordinary.

Unsurprisingly, much of the list consists of “household” names in our industry. Now, where some people may see a list of the “cool kids,” I see something different.

In a word, consistency. Sure, the more cynical among us roll their eyes at rankings and awards.

However, I see approaches to operations, service, menu and design innovation, and guest experiences to learn from and emulate.

Would I like to see bars in markets outside of the usual suspects on these lists? Absolutely. As so-called secondary and tertiary markets develop their scenes that may start to happen more often.

So, congratulations to this year’s 50 Best Bars in North America! Cheers!

Canada

This year, the second-largest country in the world claims eight of North America’s 50 best bars. One bar is in the top ten.

As Ontario’s capital and Canada’s most-populous city, it should come as no surprise that Toronto takes four spots. Bar Mordecai is number 47, Bar Raval is 41, number 38 is Mother, and Civil Liberties is tenth.

It’s a bit surprising to see just one bar from Vancouver—number 25, The Keefer Bar—but Montréal has two venues on the list. The Cloakroom Bar is number 45 and 29 is El Pequeño Bar.

Bar Kismet, in Halifax, Nova Scotia, is sitting in the 49th spot on the 2022 North American list.

America

Impressively, the US boasts 30 of North America’s 50 Best Bars, six of which are in the top ten. Intriguingly, ten of the bars on this list were ranked on the World’s 50 Best Bars last year.

As one would assume, New York City dominates the 2022 rankings. Eleven bars are on the list, with the number one spot going to Attaboy. Congratulations to Michael McIlroy and Sam Ross, their teams, and their partners. Katana Kitten is number four, and Dante earns the eighth spot on the list.

Moving to the south, two bars on the list are in Miami: Broken Shaker (32) and Sweet Liberty (14). Heading northwest, Kumiko in Chicago is in the top ten at number five.

On the other side of the country, Los Angeles claims three spots, one in the top ten. Genever holds number 50, Death & Co. is 34, and Thunderbolt is ninth. The Bay Area has two bars on the list. ABV in San Francisco is number 39 and Oakland’s Friends and Family is in the 33 spot.

Somewhat surprisingly, Las Vegas and New Orleans each have just one bar in the rankings. One of my personal favorites, Herbs & Rye, is number 28 on the list. Jewel of the South in NOLA is in the top half of the list, holding number 24.

In San Juan, Puerto Rico, the beloved La Factoría is twelfth on the list.

Mexico

Achieving 11 spots—three in the top ten—Mexico is crushing it this year. Remarkably but not surprisingly, the three bars in the top ten are all in Mexico City.

Baltra Bar earns number nine, and Handshake Speakeasy and Licorería Limantour are second and third, respectively. Overall, Mexico City boasts six bars on this list.

Two spots are in Oaxaca: Selva, which is number 22, and Sabina Sabe, number twenty.

Arca, number 37, is in Tulum. Number 21, El Gallo Altanero, is in Guadalajara. And Zapote Bar in Playa del Carmen almost breaks the top 10, coming in eleventh.

Cuba

The legendary El Floridita grabs Cuba’s only entry on the 2022 list.

Impressively, El Floridita can trace its opening to the early 1800s. Originally, the space was La Piña de Plata. About a century later, a bartender, Constantino “Constante” Ribalaigua Vert, became the owner and changed the name.

Oh, and he just so happens to be the inventor of the frozen Daiquiri. Along with its impressive history, El Floridita also has an awesome statue with its own seat at the bar. Ernest Hemingway is immortalized in bronze.

50 Best Bars: North America

Below, the full list in ascending order.

Genever (Los Angeles, CA)
Bar Kismet (Halifax, Nova Scotia)
Teardrop Lounge (Portland, OR)
Bar Mordecai (Toronto, Ontario)
Julep (Houston, TX)
Cloakroom Bar (Montréal, Québec)
Bitter & Twisted (Phoenix, AZ)
Clover Club in (New York, NY)
Bar Leather Apron (Honolulu, HI)
Bar Raval (Toronto, Ontario)
El Floridita (Havana)
ABV (San Francisco, CA)
Mother (Toronto, Ontario)
Arca (Tulum, Quintana Roo)
Death & Co (Denver, CO)
Mace (New York, NY)
Death & Co (Los Angeles, CA)
Friends and Family (Oakland, CA)
Broken Shaker (Miami, FL)
The Dead Rabbit (New York, NY)
Employees Only (New York, NY)
El Pequeño Bar (Montréal, Québec)
Herbs & Rye (Las Vegas, NV)
Overstory (New York, NY)
Dear Irving (New York, NY)
The Keefer Bar (Vancouver, British Columbia)
Jewel of the South (New Orleans, LA)
Amor y Amargo (New York, NY)
Selva (Oaxaca de Juárez, Oaxaca)
El Gallo Altanero (Guadalajara, Jalisco)
Sabina Sabe (Oaxaca de Juárez, Oaxaca)
Raised by Wolves (San Diego, CA)
Service Bar (Washington, DC)
Double Chicken Please (New York, NY)
Hanky Panky (Ciudad de México)
Café de Nadie (Ciudad de México)
Sweet Liberty (Miami, FL)
Kaito del Valle (Ciudad de México)
La Factoría (San Juan)
Zapote Bar (Playa del Carmen, Quintana Roo)
Civil Liberties (Toronto, Ontario)
Thunderbolt (Los Angeles, CA)
Dante (New York, NY)
Baltra Bar (Ciudad de México)
Café La Trova (Miami, FL)
Kumiko (Chicago, IL)
Katana Kitten (New York, NY)
Licorería Limantour (Ciudad de México)
Handshake Speakeasy (Ciudad de México)
Attaboy (New York, NY)

Image: Hello I’m Nik on Unsplash

June 8, 2022by David Klemt David Klemt No Comments

Here Come the NFT Restaurants…

Here Come the NFT Restaurants…

by David Klemt

It was inevitable, really, that after seeing cryptocurrency nightclubs we’d eventually see non-fungible-token-focused venues.

Not too long, in fact, a crypto nightclub set up shot in an ultra-lounge inside a Las Vegas casino. Members had access to a VIP section inside the venue provided they had minimum amounts of certain coins.

Bottles were popped, Instagram models made appearances, and the crypto contingent were given the VIP treatment.

Other such venues are in operation. However, the “new thing” leveraging the proliferation of the blockchain is the NFT restaurant.

Interestingly, two such restaurants are set to open in the US in two major markets. One is New York City, the other Los Angeles.

What’s an NFT?

Okay, bear with me here. I’m not an NFT expert, nor do I own an NFT. So, I’ll do my best to make this as simple as possible.

First off, the acronym NFT stands for “non-fungible token.”

Second, an NFT is a digital asset—quite often artwork—bought and sold online. Quite commonly, these assets are purchased with cryptocurrency. In fact, many sellers won’t accept any other form of payment for an NFT.

Their ownership is recorded, just like cryptocurrency, on the blockchain. It’s important to know that the purchase of an NFT doesn’t necessarily come with licensing rights, but that’s another issue entirely. So, yes, there are people who “own” an NFT but don’t actually own the rights to do much with it.

For now, what’s important to know is that NFTs are exclusive, unique digital assets. Oh, and the market (industry?), as of 2021, was worth a reported $41 billion. Not entirely surprising when one considers that a single NFT once sold for almost $92 million.

What’s an NFT Restaurant?

It is, perhaps, more accurate to refer to these hospitality venues as NFT clubs. Yes, there’s a restaurant component, but the main draw is a membership.

In New York City, for one example, the NFT is the membership. The planned venue is Flyfish Club by VCR Group, and it’s billed as “the world’s first member’s only private dining club.”

What does a Flyfish NFT membership get you? Well, the space isn’t open yet. However, the following benefits are expected:

Unlimited access to a 10,000-square-foot dining room.
Exclusive culinary, social, and cultural experiences.
An “iconic, New York City location” for the dining room, cocktail lounge, omakase room, and outdoor area.

It’s rumored that—dependent on crypto exchange rates, of course—the Flyfish membership will cost around $13,000.

On the other side of the country is another NFT membership. This concept comes from SHŌ Group and is slated to debut in 2023 on top of the Salesforce Transit Center.

Unfortunately, there isn’t any pricing information available (publicly) just yet for SHŌ Club. However, three tiers of membership have been revealed:

Earth: The lowest tier.
Water: The “core” membership.
Fire: Offers “ownership-like benefits.”

Per SHŌ, these memberships are not only verifiable via the blockchain, members will be able to sell or transfer their ownership of a membership.

If you’re curious about costs and a full breakdown of SHŌ Club benefits, you can sign up for notifications here.

Niche Concepts

Honestly, what else can we categorize these venues as besides “niche”? While both venues’ operations would likely be familiar to any hospitality professional, the NFT element certainly designates them as highly specialized.

Now, that’s not necessarily a bad thing. “Niche” isn’t inherently negative. In fact, identifying and servicing an underserved niche can be incredibly lucrative for any entrepreneur.

Indeed, the locations of Flyfish and SHŌ Club are telling. NYC is often labeled the finance capital of the world. And, of course, San Francisco is home to Silicon Valley, the tech capital of the world.

Obviously, many who work in finance and tech live in NYC and San Francisco. So, it makes sense that they’d be interested in these memberships and, as importantly, can afford them.

Clearly, VCR and SHŌ are targeting a group with a shared niche interest, and they’re doing so with upscale venues and experiences. Should these concepts come to life and their experiences live up to member expectations, they’ll have hit a homerun.

As an operator, you may not be interested in targeting the cryptocurrency or NFT crowd. However, the ubiquity of subscriptions in our lives may motivate you to consider a membership program.

If so, remember to offer value, avoid alienating non-members, and offer benefits authentic to the business.

Image: Riki32 from Pixabay

Buffalo Trace Distillery bourbon barrels

June 7, 2022by David Klemt David Klemt No Comments

8 Bottles for National Bourbon Day

8 Bottles for Bourbon Day

by David Klemt

Next week, June 14, is National Bourbon Day, the day America celebrates the country’s “native” spirit.

Clearly, that means one thing: Make sure your promotion catches the eye of the whiskey aficionados, bourbon lovers, and bourbon curious among your guests.

One of the most effective ways to boost traffic on National Bourbon Day is deceptively simple. Simply put, add new bourbon releases to your inventory.

Of course, you should also ensure you have enough of what your regulars normally drink on hand. And let’s not neglect your bourbon cocktails.

First Things First

When deciding what to feature on your promotional or LTO menus, there’s a smart and simple first step to take.

You probably already know what I’m going to suggest: Run reports.

What are your top-selling bourbons? Which are more burden than bourbon, collecting dust in your inventory?

Introduce new bourbons recently? How are they selling?

Then there’s the cocktail menu. Do you know which cocktails are your guest favorites and which they’re not ordering? Are any of these bourbon cocktails?

So, don’t just jump into National Bourbon Day by guessing or assuming what bottles and cocktails to promote. Instead, leverage the power of your POS and run reports. Put hard data behind your promotions, always.

Of course, that’s not your only resource. Curious about what your guests would like to see on the menu and back bar? Ask your bar team.

New Releases

Now, this may come as a shocker: People want to try what’s new. Yeah, I know—hot take.

So, if people want the new thing, give ’em what they want. Below you’ll find some bottles worth asking your reps about for National Bourbon Day.

Obviously, you should ensure you have plenty of the standards on hand. And be cautious about just how much new bourbon you bring in. After all, you don’t have data on how they’ll perform yet.

That said, here are some bottles worth considering.

Basil Hayden Subtle Smoke

Far too often, “smoky” on a label means “tastes like you’re drinking a campfire.” Of course, some of us are into that, depending on our mood or personal tastes.

However, some guests aren’t into smoke bombs. Basil Hayden Subtle Smoke delivers what’s on the label: their high-rye Kentucky bourbon with smoke notes that aren’t overwhelming.

Ben Holladay

Don’t freak out after you read the following sentence. Not all bourbon comes from Kentucky.

Of course, you and your team probably know that. And I’m sure we all think that by now, people know a whiskey doesn’t need to come from Kentucky to be bourbon. However, there are still people who think otherwise.

Educate them with bottled-in-bond Ben Holladay, crafted in Missouri. It’s an interesting bottle labeled Real Missouri Bourbon. According to laws enacted in 2019 and 2020, for a whiskey to earn that designation the producer must:

mash, ferment, distill, age, and bottle in Missouri;
age in oak barrels made in Missouri; and
be made with corn grown in Missouri.

Bottled-in-bond and Real Missouri Bourbon. This bottle should get your guests’ attention.

Blood Oath Pact No. 8

When it comes to bourbon releases, Blood Oath Pacts are always big news. Blood Oath Pact No. 8 should be a welcome addition by the bourbon lovers among your guests.

For this release, Lux Row Distillers combined a a 14-year ryed bourbon, an 11-year ryed bourbon, and an 8-year ryed bourbon finished in Calvados casks.

OKI Reserve

The OKI story goes that two entrepreneurs in Ohio, Chad Brizendine and Jake Warm, bought the brand from New Riff Distilling two years ago.

For those wondering, OKI stands for “Ohio, Kentucky, Indiana,” the tri-state area responsible for most of the world’s bourbon. According to OKI, 99 percent of OKI Reserve is more than eight years old.

Thomas S. Moore

Alright, I’ll admit it—I count this section as four bourbons. But I have a good reason for doing so.

Thomas S. Moore is crafted by Barton 1792 and consists of four expressions: Cognac, Madeira, sherry and Merlot. Any one of these alone is worth the time and effort for a bourbon or whiskey lover to track down. However, think of the potential having two or more expressions available to taste against one another offers you and your guests.

Each Thomas S. Moore expression starts with five- or six-year-old Barton 1792 high-rye bourbon. Depending on the cask used for finishing, the bourbon is aged for another one to four years.

Image: Josh Collesano on Unsplash

June 6, 2022by David Klemt David Klemt No Comments

Back of House Report: The Labor Challenge

Back of House Report: The Labor Challenge

by David Klemt

A recent report from Back of House reveals opportunities for operators amidst the current staffing challenge.

In their report, the restaurant technology platform suggests effective hiring and retention solutions. For example, helping staff find meaning in their work.

To download and access the report in its entirety, please visit BackOfHouse.io.

For some of the platform’s insights into staffing, keep reading.

Why People Leave the Industry

Obviously, people take jobs for a variety of reasons. Often, a person’s first job has one or two motivations: money and/or experience.

Some estimates put a gig in the restaurant industry as the first job for a third of Americans. In Canada, restaurants are the top employers for those under 25 years of age.

However, Back of House sees value in looking at a different metric: Why people leave the industry.

As Back of House states, knowing why someone would leave their job helps an operator determine what benefits to offer to retain talent.

Now, it may be tempting to assume pay is the top reason people leave jobs. Per Back of House, however that’s not the case. Broken down by age group, below you’ll find the reasons people are leaving hospitality:

Pay: 26 to 35
Schedule: 46 to 55
Lack of opportunities: 26 to 35
Lack of benefits: 26 to 35
Work environment: 18 to 25

Look at these issues through the lens of someone moving through life. When first entering the workforce, more people want to find the right employer and workplace. From their twenties to thirties, more concern is placed on moving up, making more money, and receiving benefits. And, per Back of House’s findings, time becomes more of a consideration as people age.

Meaning and Value

Per Back of House, there are two important elements of employment that keep people engaged.

One, meaning in the work they do. In other words, feeling that their work has value. Two, staff want to feel that they’re employers value them.

Of course, both make sense, no? If a person doesn’t see their role in the industry as valuable, they’ll always be looking for the escape hatch. And if they feel that they’re employer doesn’t value them, why would they continue working for them? People, as they say, quit bosses, not jobs.

So, Back of House recommends that operators demonstrate they value their team members by:

investing in their staff;
supporting their staff; and
respecting their staff.

Now, good leaders should already do all of the above. It should go without saying but if someone feels a lack of respect, support, and interest from their employer, they’re not going to remain in their role for long.

And who could blame them? That seems like a terrible workplace and a waste of a hospitality professional’s valuable time. Time, of course, that can be better spent finding a good leader to work for who will help them progress in their career.

There are further insights one can glean from Back of House’s report. To download “Understanding the Staffing Challenge,” please click here.

Disclaimer: Neither KRG Hospitality nor its representatives received compensation to promote this report. The team at KRG simply feels all operators will find value in downloading and reading it, and considering the information contained therein.

Image: Joao Viegas on Unsplash

May 27, 2022by David Klemt David Klemt No Comments

Plants Dominate 2022 NRA Show

Plants Dominate 2022 National Restaurant Association Show

by David Klemt

The National Restaurant Association Show is back in a big way, and meat alternative brands are establishing themselves as much more than a trend.

In particular, plant-based brands made their presence known in the Lakeside Center.

However, some big companies also showcased their animal alternatives in the South Building. Among them, Beyond and Daiya.

Notably, Daiya brought with them their freshly reformulated cream cheese alternative. They also had a creamy, flavorful queso at their booth.

Chik’n

Unsurprisingly, meatless chicken—often stylized as “chik’n”—dominated the NRA Show floor.

However, exhibitors showed off more than just nuggets and fingers. This year was more about innovation.

For example, more than one company is rolling out chik’n wings. Of course, there are no bones, so they’re more akin to nuggets.

Essentially, these chicken alternatives are boneless “wings.” And as we all know, boneless chicken wings are just chicken chunks with better marketing.

Really, it’s the seasoning, heat, and shape that define the chik’n wing. At least, that’s what they are for now. I expect further innovation and refinement for these wings.

Interestingly, some brands appear to be taking on the chicken breast. Now, there weren’t many meatless companies featuring these on the NRA Show floor. Still, there were a couple and their products looked the part.

The textures are also quite close to their meaty counterparts. But I think there’s still work to do.

Plant-based Seafood

Of all the plant-based alternatives, seafood was the star. The CEOs of big brands have been working on these products for several years.

Well, we certainly saw the fruits of their investments at this year’s NRA Show.

Fish fillets, crab cakes, fish patties (including salmon), fish sticks, tuna flakes, shrimp… All were available to sample at exhibitor booths.

Crucially, the flavors and textures were close to the real thing. However, the shrimp mostly relied on being coated in seasoning to mimic their animal-based counterpart.

That said, seeing so many brands committed to bringing plant-based seafood to market was impressive.

Further, the seafood-focused companies are touting the eco-friendliness of their products. Plant-based seafood, they say, can help stop overfishing and stop the reduction of biodiversity in our oceans.

If they appeal to consumers and reduce harm to the planet, these products could perform well in foodservice. Good for the planet and good for the bottom line seems like a win-win to me.

Takeaway

As the 2022 NRA Show showed, plant-based is no longer a trend. These products ceased being a fad long ago.

Now, it’s clear the category is here to stay. The products categories like chik’n are seeing more innovation. Seafood will improve. Other meat alternatives are also improving.

Of course, whether they’re healthy, well, that’s another story. However, consumers seem to want these items regardless.

One thing is obvious, though: The plant-based category is proliferating and will soon reach ubiquity.

Images taken by author

Tales of the Cocktail Red Coat apprentices

May 25, 2022by David Klemt David Klemt No Comments

2022 Cocktail Apprentice Program Class

TOTC Announces 2022 Cocktail Apprentice Program Class

by David Klemt

The Tales of the Cocktail Foundation has announced the 32 members of this year’s Cocktail Apprentice Program, also known as CAP.

For 2022, the CAP apprentices come from seven countries, Washington, D.C., fourteen American states, and Puerto Rico. First launched in 2008, CAP has played host to over 400 apprentices.

These bar professionals are thrown into the organized chaos that is Tales of the Cocktail each year. Well, to be fair, the event likely only feels like chaos to Tales attendees. This gathering of hospitality pros is a precision machine behind the scenes.

Of course, CAP apprentices and veterans are one of the keys to Tales’ success. These bar pros work together to prepare cocktails for for Tales seminars. They also make the many tastings possible. CAP Red and Grey Coats also batch the Dame Hall of Fame and Spirited Awards drinks.

As you’ll see while reviewing the lists below, CAP Red Coats work at some of the world’s premier bars, restaurants, hotels, distilleries, portfolios and brands, and hospitality groups. Moreover, they gain an incredible amount of experience and mentorship from industry veteran Grey, Black, and White Coats.

Valuable Experience

This is, of course, great news for attendees. Many will recognize the names and venues below. And, hey, these apprentices keep the good times flowing at Tales.

But there’s another reason this news is important.

Operators should encourage their bar team stars to apply to be TOTC CAP apprentices each year. The program is open to bartenders, barbacks, and bar managers.

Considering who they’ll meet, work with, and learn from, operators can think of CAP as an investment in their bar team.

In addition to returning to work with a wealth of knowledge and new industry contacts, they’ll be eligible to apply for the Cocktail Apprentice Scholarship Program. Since 2022 CAP Red Coats can apply when applications open next year, it’s reasonable to assume that 2023 Red Coats will be eligible to apply in 2024 for the TOTCF Cocktail Apprentice Scholarship Program.

So, operators who are serious about furthering their bar team’s careers and helping to mentor them should help them apply for the 2023 Cocktail Apprentice Program.

2022 Red Coats

Below are this year’s 32 CAP Red Coat apprentices. You’ll also find their place of work.

Patience Adjei, Twist Night Club and Level Up Lounge (Accra, Ghana, West Africa)
Gerald Akins, Hamlet and Ghost (Saratoga Springs, NY)
Israel Baròn, Casa Prunes (Mexico City, Mexico)
Tammy Bouma, Bluebird Cocktail Room (Baltimore, MD)
Dylan Brentwood, Bar Kismet (Halifax, Nova Scotia, Canada)
Napier Bulanan, Viridian (Oakland, CA)
Yosue Cordero Badillo, Fairmont El San Juan Hotel (Carolina, Puerto Rico)
Chelsea DeMark, Thompson Hotel Savannah (Savannah, GA)
Milton Deya, Melinda’s Alley (Phoenix, AZ)
Linda Douglas, Curly Bartender (Los Angeles, CA)
Kai Duarte, Pacifico on the Beach and Down The Hatch (Wailuku, HI)
Cody Dunavan, Breakthru Beverage Virginia (Richmond, VA)
Glenn Eldridge, ROKA (Dubai, United Arab Emirates)
Tim Frandsen, Jane Jane (Washington, D.C.)
John Fry, Rumba / Inside Passage (Seattle, WA)
Delena Humble-Fischer, Golden Pineapple Craft Lounge (Tempe, AZ)
Princess Johnson, Allegory (Washington, D.C.)
Maria Kim, Southside Parlor (Seoul, South Korea)
Sungjoo Koo, Midnight Rambler (Dallas, TX)
Rylen Komeiji, Here Kitty Kitty / Zouk Group (Las Vegas, NV)
Lars Lunstrum, The Black Cypress (Pullman, WA)
Jacob Mentel, Polite Provisions (San Diego, CA)
Brian “Vito” Morales, Saso Bistro (Pasadena, CA)
Julian Bella Robins, Pursuing MS in Hospitality Management at FIU (Tel Aviv, Israel)
Jomar Santos, The Peacock Lounge Savannah (Savannah, GA)
Jeremiah Simmons, Seven Three Distillery (New Orleans, LA)
Colin Simpson, The Aviary (Chicago, IL)
Taylor Sweeney, Bar Shiru (Oakland, CA)
Vivi Szalavari, Uptown Cafe (Bloomington, IN)
Irlanda Vargas, Bacal (Mexico City, Mexico)
Noor Wafai, The Eddy & Durk’s Bar-B-Q (Providence, RI)
Tim Weigel, Vegas Vickie’s (Las Vegas, NV)

2022 Grey Coats

Identifiable by their grey chef coats, Grey Coats are CAP leaders.

Hagay I. Abramovitz, Imperial Craft Cocktail Bar (Tel Aviv, Israel)
Justine Bock, Gin & Juice (Bristol, UK)
Patrick Braga, Happy Accidents (Albuquerque, NM)
Fifi Bruce, Barrel Brothers (Berlin, Germany)
Richie Delahoyde, Lyre’s Non Alcoholic Spirits (Dublin, Ireland)
Amy Dunki, Barr Hill and Caledonia Spirits (Los Angeles, CA)
Arianna Hone, High West Saloon, Post Office Place (Park City, UT)
Renson Malesi, House of Sage Cocktails (Nairobi, Kenya)
Nicholas McCaslin, The Ritz-Carlton Nomad (New York City, NY)
Allie Phifer, Cayo Coco Rum Bar and Restaurante (Birmingham, AL)
Jessi Pollak, Spoon and Stable (Minneapolis, MN)
Eric Scott, Thyme X Table (Bay Village, OH)
Britt Simons, The Eddy (Providence, RI)
Joey Smith, Chez Zou (New York City, NY)
Sarah Syman, The Dandy Crown (Chicago, IL)
Nigal Vann, The Berkshire Room (Chicago, IL)

2022 Black Coats

CAP assistant managers can be identified by their black chef coats.

Cam Brown, Self-employed (Vancouver, British Columbia, Canada)
Kaleena Goldsworthy-Warnock, The Bitter Bottle and Proof Bar and Incubator (Chattanooga, TN)
Alex Lerman, Pearl Street Hospitality (Denver, CO)
Samm McCulloch, Red Wall Distillery (Sedona, AZ)

2022 White Coats

The industry veterans are CAP managers and wear white chef coats.

Alexis Belton-Tinoco, Johnnie Walker/Proof Media Mix (Chicago, IL)
Cris Dehlavi, Diageo Hospitality Partnership (Columbus, OH)
John Deragon, Resy (Brooklyn, NY)
Trevor Kallies, Freehouse Collective (Vancouver, British Columbia, Canada)
Juyoung Kang, Zouk Group at Resorts World Las Vegas (Las Vegas, NV)

Whenever you come across a Red, Grey, Black or White Coat at Tales, be sure to thank them for all their work. Well, if they don’t have their hands incredibly full. In that case, please get out of their way—they’ve got our drinks!

Image: M.S. Meeuwesen on Unsplash

May 24, 2022by David Klemt David Klemt No Comments

Alright, Seriously—WTF, Grubhub?

Alright, Seriously—WTF, Grubhub?

by David Klemt

Or, more to the point, stop working with “partners” who exploit our industry rather than support it.

In spectacular and entirely predictable fashion, Grubhub’s “free lunch” further reveals that third-party delivery platforms don’t care about restaurants.

Of course, they all say they support restaurant owners and operators. And, of course, they’re quick to pat themselves on their backs for being a pandemic lifeline.

But…no. Time and time again, mainly through their exorbitant and exploitative fees, they prove the opposite is true.

Restaurants and bars aren’t third-party delivery partners. Rather, these relationships are adversarial and detrimental. So much so, in fact, that some states passed laws to limit third-party delivery fees.

In Nevada, for example, Clark County Commissioners passed an emergency ordinance in August 2020 capping those fees at 15 percent. Clearly, we need to stop enriching companies that prove they don’t support the hospitality industry but cause it significant harm.

Free Lunch?

They say there’s no such thing as a free lunch. Apparently, Grubhub really wants to prove that maxim true.

That’s one of the takeaways from their disastrous promotion. Last Tuesday, in what’s being reported as an attempt to claim the delivery throne in New York City, Grubhub offered “free” lunch to anyone who placed an order for delivery.

The requirements for this promotion? Place an order for delivery through Grubhub on May 17 between 11:00 AM and 2:00 PM and use the code “freelunch.”

Of course, customer orders weren’t entirely free. Rather, the code was good for a $15 discount. Still, a wildly attractive offer as the ensuing debacle reveals.

Unsurprisingly, the promotion made for some eye-grabbing and eye-rolling headlines. Buzzfeed News published the most attention-grabbing one: “GrubHub Was Getting 6000 Orders A Minute During Its Promo Today That Left Restaurant Workers Stressed And Customers Hangry.”

Six thousand orders per minute during a promotion with a three-hour window in a single market.

In addition, the outlet reported that one unsatisfied customer was number 3,630 in the Grubhub customer service queue. Apparently—and who can blame him—he hung up before he could speak with a Grubhub rep about his missing order.

Duh

Who could’ve seen this coming? Any of the restaurant owners, operators, or team members Grubhub “serves,” that’s who.

In fact, anyone who works in this industry with on-premise experience knew this was going to happen. So, too, any journalist who specializes in hospitality.

The fact that whoever came up with this promotion didn’t see this coming is revealing. Unless the creators of these apps and services have real-world restaurant experience, they don’t understand the business.

How can one effectively and properly serve an industry without an understanding of how it operates? Hospitality is about service. Shouldn’t the companies attempting to work within our industry work hard to serve alongside us?

Let’s be clear—this promotion was in no way designed to help struggling restaurants. It wasn’t intended to boost their traffic and revenue. Rather, it was solely created to serve Grubhub’s desire to be number one.

As we all know, we’re experiencing major staff shortages. There are also supply shortages making it difficult for operators to obtain product reliably. Grubhub made those problems exponentially worse.

Some restaurants stopped taking delivery orders. Others canceled orders. There were operators who closed in an effort to catch up with orders and prevent the situation from worsening.

According to news stories, some social media users posted that they planned to stop ordering through third-party platforms.

Negative Impact

If you’re new to KRG Hospitality, welcome. You’re likely realizing that we’re not fans of third-party delivery.

Those of you who are familiar with us have known for quite some time that we support direct delivery. That is, delivery controlled and executed by the restaurant itself.

It’s not that we’re against innovation. Rather, our dislike of these platforms, generally speaking, comes from our perception of their behavior.

In our opinion, they take control away from operators and cost them money. Again, speaking generally, they collect customer data that operators should control. Their fees are ridiculous in most cases. And when it comes to the customer experience, their inconsistencies and shortcomings reflect poorly on the operators far too often.

Studies show that customers who have issues with third-party deliveries often place the blame on the restaurant. Food the wrong temperature? Order arrive late? Packages in less-than-ideal condition? While those issues and others can be the fault of the driver, the restaurant often takes the brunt of a customer’s dissatisfaction.

Of course, there’s also the financial impact of third-party delivery on restaurants. A SevenRooms report from last year reveals how these platforms harm operators and their bottom lines.

The Solution

Look, we know operators have a ton on their plates. But protecting and boosting the bottom line is a non-negotiable element of this business.

Yes, it’ll take some time, effort, and money to set up direct delivery. However, it’s the best solution.

Direct delivery means the operator collects and control valuable data. Likewise, the operator can ensure consistency. Through direct delivery, the operator shapes and controls the experience.

Control. Inherently, third-party delivery takes some control away from operators. That’s not a good thing, and neither is their financial impact.

Look into setting up direct delivery, take control, and protect your revenue ASAP. Friend of KRG “Rev” Ciancio and SevenRooms CEO Joel Montaniel each address delivery on the Bar Hacks podcast. Listen to episode 13 with Rev and episode 24 with Joel to learn more about delivery.

We need to stop rewarding companies that exploit our industry and take advantage of our owners, operators, and hard-working staff members.

Direct delivery is the answer. Take steps to implement it today.

Image: Rosie Kerr on Unsplash

U.S. Capitol Building exterior, cloudy blue skies

May 23, 2022by David Klemt David Klemt No Comments

Breakdown: How Senators Voted on RRF

Breakdown: How Senators Voted on RRF

by David Klemt

After a year of waiting, we now know the fate of the Restaurant Revitalization Fund: a 52 to 43 vote that saw RRF replenishment fail on the Senate floor.

Last Thursday, the US Senate voted to debate the Small Business COVID Relief Act of 2022 (S.4008). A filibuster put an end to this effort to replenish the RRF.

To be blunt, this is a disgrace. Eligible RRF applicants have been awaiting needed and deserved grants for a year. We were left out of Build Back Better, we were left out of the $1.5 trillion omnibus spending bill passed in March.

A contributing factor to why this is so disappointing is the passing of S.3811. Of particular note, 32 of the senators who voted against $40 billion for American restaurants and bars voted in favor of $40 billion for supplemental aid for Ukraine.

Now, I’m not saying that Ukraine doesn’t deserve our support. Likewise, I’m not saying that we shouldn’t have voted to provide the war-torn country $40 billion in aid.

However, I am saying that I find it indefensible that dozens of our senators would send that kind of money overseas, then turn around and deny relief for American businesses.

In one moment we have senators saying America needs to come first. They then proceed to turn their backs on hard-working Americans.

Nay Votes

Unfortunately, 43 senators—all Republican—voted against the Small Business COVID Relief Act of 2022. Therefore, they voted against replenishing the RRF.

However, that doesn’t mean all Republican senators voted against the bill. Indeed, four Republicans voted with their Democrat and Independent peers.

Barrasso (R-WY)
Blackburn (R-TN)
Boozman (R-AR)
Braun (R-IN)
Burr (R-NC)
Capito (R-WV)
Cornyn (R-TX)
Cotton (R-AR)
Cramer (R-ND)
Crapo (R-ID)
Cruz (R-TX)
Daines (R-MT)
Fischer (R-NE)
Graham (R-SC)
Grassley (R-IA)
Hagerty (R-TN)
Hawley (R-MO)
Hoeven (R-ND)
Hyde-Smith (R-MS)
Inhofe (R-OK)
Johnson (R-WI)
Kennedy (R-LA)
Lankford (R-OK)
Lee (R-UT)
Lummis (R-WY)
McConnell (R-KY)
Moran (R-KS)
Paul (R-KY)
Portman (R-OH)
Risch (R-ID)
Romney (R-UT)
Rounds (R-SD)
Rubio (R-FL)
Sasse (R-NE)
Scott (R-FL)
Scott (R-SC)
Shelby (R-AL)
Sullivan (R-AK)
Thune (R-SD)
Tillis (R-NC)
Toomey (R-PA)
Tuberville (R-AL)
Young (R-IN)

Yea Votes

It’s important to remember that the Small Business COVID Relief Act of 2022 was a bipartisan effort. Sens. Ben Cardin (D-MD) and Roger Wicker (R-MS) introduced the bill, which included $40 billion for the RRF and $8 billion for other businesses.

Four Republican senators and two Independents voted in the affirmative with all Democrats.

Baldwin (D-WI)
Bennet (D-CO)
Blumenthal (D-CT)
Blunt (R-MO)
Booker (D-NJ)
Cantwell (D-WA)
Cardin (D-MD)
Carper (D-DE)
Casey (D-PA)
Cassidy (R-LA)
Collins (R-ME)
Coons (D-DE)
Cortez Masto (D-NV)
Duckworth (D-IL)
Durbin (D-IL)
Feinstein (D-CA)
Gillibrand (D-NY)
Hassan (D-NH)
Heinrich (D-NM)
Hickenlooper (D-CO)
Hirono (D-HI)
Kaine (D-VA)
Kelly (D-AZ)
King (I-ME)
Klobuchar (D-MN)
Leahy (D-VT)
Lujan (D-NM)
Manchin (D-WV)
Markey (D-MA)
Menendez (D-NJ)
Merkley (D-OR)
Murkowski (R-AK)
Murphy (D-CT)
Murray (D-WA)
Ossoff (D-GA)
Padilla (D-CA)
Peters (D-MI)
Reed (D-RI)
Sanders (I-VT)
Schatz (D-HI)
Schumer (D-NY)
Shaheen (D-NH)
Sinema (D-AZ)
Smith (D-MN)
Stabenow (D-MI)
Tester (D-MT)
Warner (D-VA)
Warnock (D-GA)
Warren (D-MA)
Whitehouse (D-RI)
Wicker (R-MS)
Wyden (D-OR)

Not Voting

Three Democrat and two Republican senators didn’t vote on S.4008.

Brown (D-OH)
Ernst (R-IA)
Marshall (R-KS)
Rosen (D-NV)
Van Hollen (D-MD)

Yay Votes for Ukraine, Nay Votes for RRF

The following senators, all Republican, voted to send $40 billion in aid to Ukraine.

The same day, they voted against $40 billion to replenish the RRF, voting against American restaurants and bars.

Barrasso (R-WY)
Burr (R-NC)
Capito (R-WV)
Cornyn (R-TX)
Cotton (R-AR)
Cramer (R-ND)
Cruz (R-TX)
Daines (R-MT)
Fischer (R-NE)
Graham (R-SC)
Grassley (R-IA)
Hoeven (R-ND)
Hyde-Smith (R-MS)
Inhofe (R-OK)
Johnson (R-WI)
Kennedy (R-LA)
Lankford (R-OK)
McConnell (R-KY)
Moran (R-KS)
Portman (R-OH)
Risch (R-ID)
Romney (R-UT)
Rounds (R-SD)
Rubio (R-FL)
Sasse (R-NE)
Scott (R-FL)
Scott (R-SC)
Shelby (R-AL)
Sullivan (R-AK)
Thune (R-SD)
Tillis (R-NC)
Toomey (R-PA)
Young (R-IN)

Image: PartTime Portraits on Unsplash

United States Capitol Building exterior and blue sky

May 19, 2022by David Klemt David Klemt No Comments

US Senate Fails to Replenish the RRF

US Senate Fails to Replenish the RRF

by David Klemt

After conflicting reports and speculation, the US Senate has finally voted this week on replenishing the Restaurant Revitalization Fund.

Last week, multiple sources reported that the Senate would hold their RRF vote this week. Just days ago, several outlets sounded the alarm, reporting that the vote would be pushed to next week. The reason, these sources provided, was the Senate’s scramble to repackage and hold another vote on aid for Ukraine.

Senator Rand Paul (R-KY) blocked the bill that would provide $40 billion in defense and humanitarian aid. Unsurprisingly, it was also Sen. Paul who objected to $43 billion in emergency funding last August, killing that RRF replenishment effort.

Today, on the Senate floor, Sen. Paul repeatedly derided the replenishment of the RRF as a “bailout.” Additionally, he asked, “Where’s the emergency?”

So, one can infer that the impending closure of an estimated 50 percent of RRF applicants—88,500—isn’t an emergency to the Kentucky senator. Simple math shows that if each of those applicants has just ten employees, that’s a loss of 885,000 jobs.

Rightfully so, people throughout the industry have been more than a little concerned that the bill would receive at least 60 “yea” votes today.

At issue is where the funds would come from. While Democrats view replenishing the RRF as emergency funding, Republicans prefer to reallocate existing funds.

Senate Fails to Replenish RRF

Today’s vote was a long time coming. In fact, it’s just days shy of one year since the RRF application portal closed.

Now, after a 223 to 203 vote in the House to replenish RRF, our senators have failed us. The resulting vote was 52 to 43, falling short of the 60 “yeas” necessary

I’m not despondent over this news. Honestly, I think I’ve made it rather clear that our politicians failing us wouldn’t at all surprise me. Yet I still find myself incredibly disappointed.

Disappointed in how the RRF was handled, disappointed in the grant approval process, disappointed in how emergency funding was blocked, and disappointed in how we were left out of the Biden administration’s Build Back Better and March omnibus bills.

And gravely disillusioned now that I’ve finally learned how little many of our senators care about us. Hospitality is an industry that employed nearly 17 million people in 2019. In terms of revenue, we’re projected by the National Restaurant Association to generate almost $900 billion in sales.

Not enough, it’s clear, for a majority of senators to vote to replenish the RRF.

However, I’m mostly dismayed for the owners and operators who have waited a year just to have this lifeline yanked from their fingertips. Today’s failure in the Senate puts millions of jobs at risk.

Underfunded from the Start

For those who found themselves in RRF limbo, the wait for this vote has been agonizing.

The RRF application portal opened May 3, 2021. Initially, the process looked promising. For the first 21 days, the Small Business Administration announced, priority would be granted to small businesses with a minimum of 51 percent ownership by women, veterans or socially disadvantaged people.

However, the SBA closed the portal immediately after processing only about 101,000 priority applications, or one-third of applicants. So, ever since May 24 of last year, “non-priority” applicants have been left wondering if they’d ever receive an RRF grant.

In addition to the premature closure of the application process, the RRF was woefully underfunded. Clearly, that point was driven home when $75 billion in applications were submitted to a fund with just $28.6 billion.

So, the quick closure and unrealistic funding meant that out of the over 362,000 initial applicants, around 177,000 have been watching and waiting.

A Year-long Wait

Shortly after the RRF portal was closed, a number of Republican members of Congress sent a letter to the SBA. Per the contents of the letter, non-priority applicants wouldn’t receive grants or have the opportunity to apply for grants.

Indeed, those applicants stuck in RRF limbo have been waiting for relief for just days shy of a year. And that’s only counting the days since the portal closed. Operators across the industry, not just those who applied for RRF grants, have been scratching and clawing to stave off insolvency and closures.

Advocates such as the Independent Restaurant Coalition have been sounding the alarm. RRF applicants could be just days away from bankruptcy and needed the government to act. To be brutally honest, relief may still come too late for many applicants.

Congress has certainly had the time to vote on and replenish the RRF. In June 2021, Sens. Kyrsten Sinema (D-AZ) and Roger Wicker (R-MS), and Reps. Earl Blumenauer (D-PA) and Brian Fitzpatrick (R-PA) introduced the RRF Replenishment Act bill. In July, Rep. Blaine Luetkemeyer (R-MO) introduced an alternative bill, the ENTREE Act.

Of course, as we well know, an attempt in August to replenish the RRF with $43 billion in emergency funding was blocked by Sen. Paul. In November, Build Back Better was passed. Obviously, the RRF and our industry were left out the $1.7 trillion dollar bill. Likewise, we weren’t included in March’s $1.5 trillion omnibus spending bill.

Left Out In the Cold

So, of $3.2 trillion dollars in massive bills passed, zero were earmarked for us.

Today, our senators voted 86 to 11 for $40 billion in aid for Ukraine. However, they voted 52 to 43 to provide $40 billion in aid to American restaurants and bars.

Last month, eleven months after the portal closed, the House voted to replenish the RRF. That left the final push to the Senate.

And today, at least 43 senators made their low opinion of us known.

Image: Alejandro Barba on Unsplash

Sign on wall that reads, "We like you too"

May 13, 2022by David Klemt David Klemt No Comments

Is Your Brand Engaging the Community?

Is Your Brand Engaging the Community?

by David Klemt

Many speakers at HD Expo 2022 are focusing on an important element of design and the hospitality industry: the people we serve.

In other words, designers, their collaborative partners, and their clients want to engage communities.

Now, it’s true that HD Expo 2022 speakers were mainly talking about the hotel side of hospitality design. However, much of what they have to say on the subject of community relates to restaurant and bar projects as well.

Below are helpful insights into engaging the community your business operates in and serves.

Valuing the Community

Crystal Vinisse Thomas, vide president and global brand leader of lifestyle and luxury brands for Hyatt Hotels is bringing Caption by Hyatt to life.

A core element of Caption is community engagement. Yes, travelers are crucial to the success of a hotel brand. However, so are the locals.

After all, hotels, restaurants, and bars employ people from the community. Engaging the community leads to the creation of a loyal guests. During slower times, those loyal locals keep those registers ringing.

As Vinisse Thomas says, operators need to focus on locals as much as travelers. Further, she defines her approach to community as creating a space that’s open to everyone.

One way that Caption is staying true to Vinisse Thomas and Hyatt’s vision for the brand is the Talk Shop. As the name suggests, this is a hangout space. Talk Shop is a communal workspace, a a restaurant, a coffee shop… It’s a hangout for everyone, hotel guest or community guest.

However, Vinisse Thomas does admit that there are challenges when designing and operating for community engagement. One of those challenges is scalability.

Then there’s another big challenge. Designing and operating with the community in mind looks great on paper. But there’s no guarantee that this approach will give an operator an edge of the competition.

To that point, Vinisse Thomas suggests it may be best to speak with one’s competitors to partner on community engagement efforts.

Honoring the Community

An additional challenge when attempting to engage a community is authenticity. It’s a great buzzword, as Vinisse Thomas says, but it needs to be more than that.

Dyonne Fashina, principal of Denizens of Design, has some thoughts on community engagement and authenticity.

Putting it bluntly, Fashina says that honoring a community requires more than a Google search. Rather, designers and operators need to spend time in a given community. They need to get to know the people, the culture, and the vibe.

At KRG Hospitality, we agree. One of our services is site selection. We conduct intensive research to identify the best site for a concept.

However, operator clients need to ensure they know the location. Not just the ZIP code, not just the address, not just the cross streets—the community.

After KRG identifies ideal sites, the client should spend time in those communities, speaking with the people who live and work in them.

Fashina also has another excellent piece of advice for operators. The project, as we often say at KRG, isn’t over after the grand opening. Fashina’s advice speaks to that point.

If an element of an operator’s business isn’t working for the community, she says, they need to be flexible enough to fix it. For owners who perhaps don’t spend every day inside their business or businesses, Fashina recommends visiting to analyze community engagement.

Hospitality is about service, and service requires commitment to being a responsible host and steward. To that end, operators should ensure their concepts improve communities rather than exploit them.

Image: Adam Jang on Unsplash