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by David Klemt David Klemt No Comments

The Four Forces of Gravity in Hospitality

How brand, social, and structural forces align hospitality systems to generate gravity and create venues guests return to again and again.

In hospitality, some places constantly chase guests while others pull them in. The difference isn’t marketing budgets, influencer campaigns, or the latest technology platform.

It’s gravity.

Gravity is the force that draws guests back to a venue without constant persuasion. It’s what happens when a restaurant, bar, or café becomes part of a person’s routine, conversations, and memories. Venues without gravity operate differently. They constantly need another promotion, another campaign, another push to maintain momentum. Traffic becomes unpredictable. Marketing shifts from amplification to compensation. Over time, that dependency becomes expensive, operationally exhausting, and increasingly difficult to sustain.

Gravity changes that equation. It creates return behavior strong enough to reduce the constant pressure of reacquiring attention.

However, gravity doesn’t appear accidentally. It forms when several underlying forces align inside a hospitality business. Over time, those forces create pull. If they’re allowed to weaken, gravity disappears.

by David Klemt

Symmetrical fields of force stabilizing a central point, representing alignment

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Understanding these forces explains why some venues thrive for decades while others struggle to survive their first few years.

The Four Forces of Hospitality Gravity

Four forces shape whether a hospitality brand develops real pull. They operate together, reinforcing or weakening one another over time.

When they align, something powerful happens: guests return, again and again.

Brand Gravity

Brand gravity begins with identity. Not logos, not marketing language, but identity. Venues with strong brand gravity begin with strategic clarity. Operators know exactly what they’re building, and who it’s for.

Guests understand the concept almost instantly: a neighborhood cocktail bar, a high-energy sports pub, a classic steakhouse. The concept doesn’t try to be everything to everyone. Strategic clarity attracts the right guests and naturally filters out those seeking a different experience. Not every guest is meant for every concept. A high-energy nightlife venue and a quiet neighborhood wine bar should not attract the same expectations, behaviors, or occasions.

Alignment is the first step toward gravity. When identity is unclear, everything downstream becomes harder: marketing loses precision, hiring becomes inconsistent, and service standards drift because teams no longer understand what experience they’re protecting. Clear brands make better operational decisions because the business understands itself first.

Strong identity shapes expectations before a guest ever walks through the door. That kind of alignment creates stability. It reduces friction, improves consistency, strengthens culture, and allows teams to deliver experiences with greater confidence and precision. Clear identity strengthens attraction, improves retention, and gives consistency something stable to compound from. Brands that try to appeal to everyone often lose the clarity that made them compelling in the first place.

Social Gravity

When guests connect with a venue, something begins to happen: they talk about it. They recommend it. They bring other people. Gravity spreads socially long before operators recognize it. Stories start forming around the venue. People come on first dates. They celebrate milestones there. Friends gather for late-night conversations. Strangers find common ground at the bar and leave having made a new connection.

These moments transform a business into a place. More importantly, they turn that place into a guest’s place. It becomes their spot, their third space. That emotional ownership matters more than most operators realize. Guests protect places they identify with emotionally. They recommend them differently. They forgive small imperfections more easily, and continue returning even when alternatives exist. That’s the moment a venue stops competing transactionally and starts existing socially inside a guest’s life.

Places with stories travel through social networks faster than any advertising campaign.

Structural Gravity

Identity and buzz can attract attention. That’s important, but that’s just one component of the overall formula. Attention is easier than it has ever been to generate, and it easily devolves into noise. Noise is expensive.

When noise compounds faster than meaning, only what is built to hold will remain. What attracts attention is no longer a reliable indicator of what will sustain the concept. It’s structure that sustains gravity.

Behind every venue that “just works” for guests is a system supporting the experience: operational discipline, training systems, service standards, kitchen consistency… These structures create reliability. Guests trust that the experience they enjoyed last time will exist again the next time they return.

That said, structure does more than just create consistency: it protects the identity of the business under operational pressure. Without structure, standards become reactive. Experiences vary depending on staffing, stress, volume, or leadership presence. Over time, the business slowly drifts away from the experience guests connected with originally. That drift is where gravity begins weakening. Without structure, even the strongest concept eventually collapses.

Gravity Imbalance

The final force appears when one of the others weakens. Gravity rarely disappears at once; it erodes through imbalance. The imbalance often goes unnoticed because performance appears stable. Traffic looks strong, and revenue holds. Meanwhile, erosion is slowly but steadily weakening the structure. That delay creates false confidence.

Operators assume the business is healthy because visible performance hasn’t collapsed yet. But gravity often weakens long before the market response materializes fully. By the time traffic softens noticeably, trust, consistency, and emotional connection may have already been eroding for months. A cocktail bar may have a strong concept but weak operations. A nightclub may generate social buzz but fail to deliver a consistent experience. A neighborhood restaurant may run efficiently but lack a compelling identity. When one force falls out of alignment with the others, gravity weakens.

Guests feel the difference even if they can’t explain it. They visit less often. Eventually, they stop returning at all.

A Simple Diagnostic

Operators don’t need complicated analytics to sense whether gravity exists.

Four simple questions often reveal the answer:

  1. Do guests understand our concept instantly? If guests struggle to describe what your venue is, brand gravity is weak.
  2. Do guests talk about us outside of our four walls? If the venue rarely enters conversation, social gravity hasn’t formed.
  3. Does our operation deliver the same experience every night? If the answer is no, structural gravity can’t hold.
  4. Are these forces reinforcing each other or quietly working against each other? When identity, experience, and systems move in different directions, gravity weakens.

Most operators already know the answers. What they often lack is the framework to interpret what those answers mean. But if they answer these questions honestly, most will understand quickly where the real problems lie.

The Difference

Some venues constantly chase guests, others pull them in. The difference isn’t luck. It isn’t demographics, and it isn’t the latest trend. It’s gravity. It’s brand clarity, social momentum, and operational discipline. When these forces align, something remarkable happens: guests return, again and again.

When gravity forms, retention strengthens. That means marketing becomes more efficient. It means that word of mouth accelerates naturally. Teams operate with greater clarity because the experience they’re protecting is fully understood across the business. The venue stops relying entirely on constant stimulation and begins generating pull organically.

Everything else is noise. And noise is expensive.

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by David Klemt David Klemt No Comments

The 48-Hour Rule: Slow Decisions Kill Momentum

Hospitality does not reward hesitation. It moves in real time, and leaders must keep pace.

Labor shortages remain elevated across much of the world, operating costs continue to fluctuate aggressively, and competition for talent, real estate, and consumer attention is tighter than ever.

According to the National Restaurant Association, labor costs remain well above historical averages, while operators continue to cite staffing, inflation, and operational complexity as top concerns. At the same time, hospitality moves in real time: opportunities appear and disappear quickly, great candidates accept other offers, contractors move on to faster-moving projects, and landlords lose patience. Momentum either fades or disappears entirely.

That’s why one of the most underrated leadership skills in hospitality is the ability to make decisions both quickly and confidently. Now, that does not mean making reckless decisions; there’s certainly a difference. It’s about the power of making informed decisions within 48 hours.

by Doug Radkey

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Strategic clarity > Indecisiveness

From proposals to quotes, hiring, strategic direction, vendor approvals, and other day-to-day decisions, the businesses that move forward fastest are rarely the ones with perfect information. They’re the ones that maintain momentum while everyone else stalls in overthinking, avoidance, or indecision.

The Founder Who Couldn’t Decide

We once worked with an operator opening a new hospitality concept who had everything going for him. He had a strong location, strong investor group, and a really strong concept.

The issue was that every decision took too long.

There were equipment quotes that sat untouched for weeks. The hiring conversations dragged on endlessly. The branding and design revisions stayed “under review.” Construction decisions were revisited repeatedly. The project support team started feeling it: vendors became less responsive, deadlines slipped, and stress increased.

What should have been strategic thinking became decision paralysis. And the interesting part was this: none of the delayed decisions became better because they waited longer. They all ended up exactly where they were headed in the first place.

But now momentum was damaged, trust was weakened, timelines were extended, and costs increased. That’s the hidden cost of indecision.

The Real Risk Isn’t the Wrong Decision

Most leaders delay decisions because they fear making the wrong one. But in hospitality, the greater risk is often making no decision at all.

While you wait:

  • the market continues to move
  • the team loses confidence
  • opportunities disappear
  • energy drains from the business

This is particularly dangerous in hospitality because momentum matters. Restaurants, bars, and hotels are operational ecosystems. Delays in one area ripple into others because everything is connected. Indecision creates drag, and drag compounds.

The 48-Hour Rule

I’m not suggesting every decision should be made impulsively. What I am saying is this: if you have enough context, enough data, and enough alignment to move forward, make the decision within 48 hours.

Why? Because most decisions in hospitality aren’t improved by endless revisiting.

They’re improved by focusing on four key areas:

  1. Strategic clarity
  2. People and processes
  3. Accountability
  4. Execution

What we’ve seen, what we know works, is the 48-hour rule creating urgency, confidence, and forward movement. And momentum is one of the most valuable assets a hospitality business can have.

The Cost of Delayed Decisions

Here’s a clear example for you to consider. A strong candidate interviews well. The leadership team likes them. The fit is obvious. But instead of deciding quickly, leadership waits.

“Let’s think about it.”

“Let’s see a few more candidates.”

“Let’s call a few more references.”

“Let’s regroup next week and make a decision.”

Meanwhile, another company moves faster with this candidate.

Now the operator is left:

  • restarting interviews
  • onboarding and training another candidate
  • extending stress on the team
  • wondering why hiring feels so difficult

Top performers often know they are top performers. And top performers rarely wait around for indecisive leadership.

Fast, confident decisions communicate clarity, direction, and operational maturity. Slow hiring processes on the other hand, communicate uncertainty.

Vendors and Contractors Feel it Too

The same dynamic happens with vendors, contractors, designers, and consultants. Strong partners want decisive clients. Not reckless clients, just decisive ones.

If a $30,000 decision on a $2.5 million project takes three to four weeks or more, how long are you going to take to make decisions around the $250,000 quote?

If every quote requires weeks of debate, if every proposal stalls in committee-style conversations, if every revision gets reopened endlessly, strong partners begin to lose urgency around your project. And honestly, they should.

Indecision at the leadership level creates operational instability downstream. This is why experienced founders and operators understand that delayed decisions create delayed execution, while delayed execution creates cost creep, and cost creep destroys margins.

The businesses that open strongest are not always the ones with the biggest budgets. Often, they’re the ones with the clearest decision-making structure.

Why Leaders Struggle to Decide Quickly

Let’s address the real issue here: most delayed decisions are emotional problems, not information problems. Entrepreneurs, founders, and leaders delay decisions because they fear criticism, responsibility, making the wrong move, or they mistake more thinking for more strategy.

Now, a strong dose of reality: no decision ever comes with perfect certainty. Hospitality leadership requires calculated confidence, not perfection.

And many leaders need a mindset shift around this.

The Mindset Shift: Speed with Structure

Fast decision making does not mean chaotic decision making. It means that criteria are clear, the values are defined, the priorities are known, and the process is disciplined. The strongest operators build filters that allow them to move quickly.

They ask questions like:

  • Does this move my business forward?
  • Does this align with our strategy?
  • Does this support the guest experience?
  • Does this improve operational flow?
  • Does this fit the budget reality?

Once those filters are satisfied, they decide and then they execute.

The problem in many bars, restaurants, and hotels isn’t lack of intelligence. It’s lack of structure around decision making.

What Happens When Momentum Stays Alive

Let’s be honest: momentum changes culture.

When leadership moves decisively:

  • teams trust direction
  • projects move faster
  • accountability improves
  • vendors respond differently
  • confidence grows

Momentum creates belief, and belief matters because teams feed off leadership energy. If leadership hesitates constantly, the business becomes hesitant. But if leadership communicates clearly and moves with intention, the business gains rhythm.

This is particularly important during openings, renovations, staffing changes, menu transitions, growth phases, and crisis periods. The businesses that survive volatility are not the ones with the least pressure, they’re the ones that continue moving under pressure.

Fast Decisions Require Strong Foundations

Now, there’s an important caveat here: you can’t make fast decisions if the information is not sound, your strategy is unclear, your values are undefined, your numbers are weak, or your leadership team is misaligned.

This is why strategic clarity matters so much; clarity removes unnecessary friction. A business with strong playbooks, clear priorities, defined standards, and aligned leadership can make decisions significantly faster than one operating emotionally.

This is one of the hidden reasons that systems matter: they reduce decision fatigue.

The Questions Leaders Should Ask Themselves

If you want to become a stronger decision maker, ask yourself:

  • What decision am I currently delaying?
  • What am I actually afraid of with this decision?
  • Would more time truly improve this decision?
  • What is the cost of waiting?
  • What momentum is being lost right now?
  • Does my team experience me as decisive or hesitant?
  • What process would help us move faster in the future?

These questions are important because indecision often disguises itself as caution, but caution without movement eventually becomes stagnation.

The Takeaway Serious Operators Should Save

First and foremost: hospitality rewards momentum. It does not reward chaos, impulsiveness, or inaction. It rewards momentum.

That means founders, operators, and executives need to become better at making informed decisions quickly enough to keep the project or the business moving.

Within 48 hours:

  • review the proposal
  • choose the vendor
  • move the candidate forward
  • approve the design
  • commit to the direction

Because the longer you wait, the heavier the business feels, the slower the business moves, and the more expensive progress becomes.

The best operators are not the ones with perfect information. They’re the ones who build strong decision filters, trust their frameworks and playbooks, move with intention, and maintain momentum while others sit back and hesitate.

That’s leadership.

In hospitality, momentum is often the difference between a business that grows and a business that quietly stalls while everyone wonders what the hell happened.

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by David Klemt David Klemt No Comments

What Breaks Gravity in Hospitality

Why some venues lose momentum even when everything looks right on the surface

In hospitality, some venues pull guests in while others spend their entire existence and valuable resources chasing them.

By now, most operators can recognize the difference. They’ve seen the places that stay busy without constant promotion, and those that rely on a steady stream of new attention just to maintain traffic. They’ve also seen the opposite.

The venues that need another event, another campaign, another push to maintain momentum constantly. The businesses that appear successful publicly while operators quietly feel the pressure internally. Full weekends followed by unpredictable weekdays. Strong visibility paired with weak retention. Over time, those cycles becomes exhausting.

Eventually, those businesses stop growing naturally, instead depending on continuous stimulation just to maintain baseline traffic. This is usually the moment operators begin searching for tactical answers: “better” marketing, new offers, updated branding, fresh programming. And yes, sometimes those things help…temporarily. Unfortunately, temporary momentum and lasting pull aren’t the same thing.

The assumption is usually that the difference comes down to concept, marketing, or budget. It doesn’t. It comes down to something less visible and more fragile: alignment.

by David Klemt

An asymmetrical ripple through an otherwise perfectly aligned series of concentric rings, communicating misalignment.

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Gravity doesn’t form from a single strength. It forms when multiple parts of a business reinforce each other over time, and weakens the moment they don’t.

When Things “Look Right” but Don’t Hold

One of the most frustrating patterns in this industry is the venue that seems to have everything going for it yet still struggles to build repeat behavior.

The concept is strong, the space is well designed, and the grand opening generated buzz. And yet, six months later, traffic becomes inconsistent. Twelve months later, the team is working harder for weaker results. Eventually, the venue finds itself chasing attention again.

Nothing “broke,” but something stopped holding. That’s the difference most operators miss: gravity doesn’t disappear because of a single failure, it erodes when the underlying pieces stop working together.

Many hospitality businesses appear stronger than they actually are. Good design can disguise weak operations for a while. Social buzz can hide inconsistency, at least temporarily. Strong opening traffic can create the illusion of traction long before true guest loyalty exists. That’s part of what makes gravity difficult to diagnose early.

Modern hospitality is full of venues that look successful from the outside while they struggle quietly underneath the surface. The room looks full. Social media engagement looks healthy. Revenue may even appear stable for a period of time. But attention and attachment are not the same thing. One creates temporary movement, the other creates return behavior.

When a business relies too heavily on visibility without reinforcing the systems, standards, and experiences that sustain trust, gravity begins weakening long before operators recognize it.

The Parts That Must Align

If you look closely at venues that consistently pull guests back, a pattern emerges. That pattern is the revelation of a relationship between a few crucial elements.

Identity

First, the concept is clear. Guests understand what the venue is within moments. There’s no confusion, no hesitation. The identity is strong enough to attract the target audience and filter out people seeking a different experience.

Guests don’t spend time trying to decode whether a venue is for them; they feel clarity almost immediately. The stronger the identity, the easier the decision becomes. Confused brands create friction, clear brands create pull.

Experience

Second, the experience holds. What guests encounter matches their expectations. The experience may not match perfectly, but it does so reliably. The food, the service, the atmosphere… They feel consistent enough to build trust over time.

Consistency matters: trust is built through repetition. Guests don’t return because a venue was excellent once. They return because they believe the experience will reliably meet expectations again. That predictability lowers decision risk. Over time, it becomes part of the venue’s gravity.

Emotional Memory

Third, something sticks. The visit leaves an impression that isn’t necessarily dramatic but is meaningful enough to remember. The venue becomes associated with a moment, a person, or a feeling. Individually, none of these are enough. Together, they create pull.

Most guests don’t remember every detail of a night out. They remember how the experience settled emotionally. They remember how the room felt. How the staff made them feel, who they were with, and what the venue has become associated with in their lives. That emotional “residue,” if you will, is what creates return behavior.

Where It Starts to Break

Problems begin when those elements fall out of alignment. A venue may have a compelling concept but fail to deliver it consistently. Another may run a tight operation but lack a clear identity. Some generate social buzz but don’t create experiences worth repeating.

This is where many hospitality businesses begin confusing visibility with strength. A venue can generate constant content while losing guest trust quietly. It can create excitement while exhausting its team behind the scenes. The place can produce impressive revenue numbers while standards erode slowly underneath operational pressure.

From the outside, these businesses often appear healthy for far longer than they actually are. That delay is dangerous: by the time the market fully feels the instability, the internal damage has usually been compounding for months. From the outside, these issues don’t always look critical. Inside the business, they’re everything.

Guests don’t analyze these gaps, they feel them. And when something feels off, even slightly, behavior changes. Return visits come less frequently. Recommendations from once-loyal guests slow. The venue slips out of regular rotation before it disappears altogether.

This collapse doesn’t happen dramatically, it occurs quietly until the pull is gone.

When Drift Begins

Most venues don’t collapse all at once; they drift first. Standards soften slightly, execution becomes less consistent, small compromises become normalized under pressure. The identity that once felt sharp starts becoming diluted by reactive decisions, chasing trends, or operational fatigue.

None of these changes seem catastrophic individually, and that’s what makes drift dangerous. Guests rarely announce when trust is weakening. They simply return less often. The emotional connection fades gradually until the venue is no longer part of their routine.

By the time operators recognize the shift fully and realize their business is collapsing, gravity has often been weakening for far longer than expected, already reaching a critical level.

Why Operators Miss It

Most operators don’t think in terms of alignment, they think in terms of fixes. That reaction makes sense, to a point. Hospitality trains operators to solve immediate problems quickly. Traffic dropped? Increasing marketing. Reviews have softened? Tighten steps of service. Revenue has weakened? Expand promotions (often accompanied by discounting heavily).

Urgency rewards action, right? The problem is that visible action and meaningful correction are not always the same thing. Most gravity problems aren’t caused by a single broken tactic. They emerge when identity, operations, guest experience, and emotional connection stop reinforcing each other consistently over time. No single promotion fixes that.

Each action taken addresses a symptom, but gravity isn’t a single-variable problem. It’s the result of multiple forces either working together or not. That means solving for one issue in isolation rarely restores what was lost.

A Simpler Way to See It

Busy doesn’t automatically mean meaningful. Some venues generate transactions, others become part of people’s routines, identities, and social lives. That’s where gravity becomes difficult to replace. The great news is that you don’t need complex analytics to recognize whether gravity is forming or fading. A few questions usually make it clear:

  • Do guests understand what we are immediately?
  • Does the experience match that expectation every time?
  • Does the visit leave enough of an impression to bring them back?

If any one of those answers is weak, something is misaligned, and misalignment is where gravity breaks.

But let’s go deeper. A few additional questions tend to reveal even more:

  • Are guests returning naturally, or only after being prompted?
  • Does the marketing reflect the actual guest experience?
  • Are standards holding during pressure, or only during calm periods?
  • Would guests genuinely notice if the venue disappeared?

That last question matters more than most operators realize. It may seem extreme, and the answer may be brutal. However, the answer will help any operator focus their attention on a real strategy rather than wasting time on an ineffectual “fix.”

The Difference

Some venues chase guests constantly, others pull them in. The difference isn’t luck, and it isn’t demographics. It certainly isn’t the latest trend.

The difference is whether the business is working as a unified system or a collection of disconnected parts. Clear identity, consistent execution, and experiences that stay with people. When those elements align, gravity forms. When they don’t, it fades. The market eventually reveals whether a hospitality business is aligned structurally or simply temporarily visible.

Attention can be manufactured for a while, and momentum can be borrowed briefly. But over time, guests respond to coherence. They return to places that consistently reinforce trust, familiarity, emotion, and identity together. That’s what creates pull. Once that pull forms, growth becomes more stable, marketing becomes more efficient, and loyalty becomes more resilient under pressure.

Everything else is noise, and noise is expensive.

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Client Intake Form - KRG Hospitality

A closeup of a person's hands as they sit at their desk and design a logo on a tablet with a stylus.
by David Klemt David Klemt No Comments

A Brand Does Not Start with a Logo or Menu

Most founders think a brand starts when the visuals begin.

Too often, founders kick things off by designing a logo. There’s a wishful menu. A color palette. An Instagram teaser. A friend’s design file. That feels like progress, like the “we’re finally doing this!” moment. So naturally, it becomes the focus.

But in hospitality, polished visuals can create a dangerous illusion: movement without clarity.

Because a logo can’t explain who the business is for. A menu can’t define positioning. And a beautiful brand deck can’t sell a weak concept, an undefined guest, or a business model to a savvy investor. Yet this happens constantly. Founders build the aesthetics first, then try to reverse-engineer the strategy afterward.

That sequence is backwards.

The strongest hospitality brands don’t start with design. They start with a point of view strong enough to shape every decision that follows. A clear understanding of who the brand is for, what role it plays in the market, what standards it protects, and why it deserves to exist in the first place.

Without that clarity, everything becomes reactive. The menu becomes guesswork. The marketing sounds generic. The guest experience feels disconnected. The visuals may look polished, but the business underneath them lacks structure, alignment, and direction.

And in a market where guests are more selective, investors are more cautious, and operating costs are less forgiving, that lack of clarity becomes expensive fast.

by Doug Radkey

A closeup of a person's hands as they sit at their desk and design a logo on a tablet with a stylus.

Designing the logo and menu are fun, but they’re not where successful brands start.

Here’s what I see time and again, call after call.

The Discovery Call Pattern

There’s a version of this conversation that happens over and over and over again.

A founder books a call and I can tell immediately that they’re excited (which is great). They seem to have momentum early on in the journey. They have a space they are looking at, or maybe a lease they’ve already signed. They tell me they are ready to move quickly.

Then, they continue with one of three things:

  • “We already have a logo.”
  • “We’ve already built the menu.”
  • “We don’t need a feasibility study. I’ve lived here my whole life; I know the market.”

And every time, I ask the same question: What is your business model based on?

That’s usually where the room gets quiet. The logo was designed before the concept was pressure-tested. The menu was built before the market was understood. The visual identity was created before the guest was defined clearly.

We see this pattern constantly, and it exposes a sequence problem.

The Market Does Not Reward Aesthetics Without Clarity

This is the hard truth founders need to understand earlier on in the sequence.

A logo does not create demand. A menu does not create positioning. A pretty brand deck does not create investor confidence. What does is a point of view.

That point of view answers questions, such as:

  • Do we understand who we are?
  • Do we know where we’re going?
  • Do we understand why we’re doing this?
  • Do we know how we’re going to get there?

This is the essence of strategic clarity. Without answering those questions through the completion of a series of strategic playbooks, your logo is decoration. Your menu is guesswork, and your investor deck drives more questions than confidence.

This matters even more now because guests are more informed and more selective on how and where they spend their money. This is a signal that modern guests are making decisions faster, with more scrutiny, and with less patience for uncertainty.

If the brand is unclear, the market will feel that before the founder does.

What a Point of View Actually Is

A point of view is not a slogan.

It’s not “elevated comfort food,” or “modern yet approachable,” or “a neighborhood spot with a twist.” Those are filler phrases that sound polished, and they mean almost nothing.

A point of view is the strategic stance behind the brand. It’s the way the business sees the guest, the market, hospitality, and its own role inside both.

It gives shape to everything that follows:

  • The concept
  • The programming
  • The music
  • The service style
  • The price strategy
  • The visual identity
  • The marketing voice
  • The standards
  • The guest experience

A point of view is what makes a brand feel intentional. Without it, everything becomes reactive.

The founder builds a menu they personally like, not what the market wants or needs, or what will support the business model financially. The designer builds a logo they think looks cool before establishing the strategy, story, values, and personality. The space gets designed around trends instead of budgets, service, and guest experiences. The marketing ends up sounding like everyone else because there was no strategy tied to targeted guest profiles.

Does any of that sound familiar? That’s how generic hospitality brands are born.

A Logo is Not a Strategy

I want to be direct here because this misconception costs people a lot of money.

A logo is an identifier, not a strategy. A logo can only express something that already exists. It can’t invent clarity where there is none.

This is why so many early-stage hospitality brands look polished but feel hollow. The founder invested in visual assets before making strategic decisions, so the look arrives before the logic.

That’s backwards, and should no longer need to be explained. If the brand doesn’t know who it’s for, why it matters, what lane it owns and what standards it protects, then no visual system can save it.

In fact, a premature logo often creates false confidence. It makes the founder feel further along than they actually are. That’s dangerous, because confidence without clarity speeds up the wrong decisions throughout the planning and development process.

A Menu is Not a Concept

The same problem exists with menus. Founders often show up with 40-plus dishes and a list of beverage categories or 15 cocktails, and they feel prepared because the menu is already “done.”

The question is: What is the menu based on?

A menu should not start with creativity alone. It should start with the 14 fundamentals:

  • Target your ideal guest profile
  • An ideation stage of just 12-15 items
  • Competitive analysis and positioning
  • Economic factors
  • Flavor profiles
  • The talent pool to execute menu
  • Vendor management
  • Pricing strategies
  • Theoretical costs
  • Bar and kitchen layouts and equipment
  • Visual representations
  • Testing and feedback phase
  • Marketing and engineering
  • Training program for that menu

A menu isn’t just food or drink. It’s the primary signal for a successful business model.

If the concept is unclear, the menu becomes random. If the target guest is fuzzy, the menu becomes too broad. If the operations are not defined, the menu becomes expensive to execute. And if the point of view is missing, the menu becomes a list instead of a story.

That is why I say a menu should be the result of strategy, not the substitute for it.

Story First, Design Elements Second

Let me put this another way. A strong brand is built in this order:

  1. Point of view: What do we believe, who are we for, and why do we matter?
  2. Positioning: Where do we sit in the market, and what role do we want to own?
  3. Guest Journey: What should it feel like to discover us, enter, order, stay, leave, return, and talk about us?
  4. Operational reality: Can the experience be delivered consistently, profitably, and at standard?
  5. Identity system: Now the logo, visual direction, menu language, and design cues can begin, and will start to make sense.

This is the order serious brands follow. Everyone else starts at step five and wonders why nothing feels cohesive.

What Happens When You Skip the Point of View

When founders skip this work, a few predictable things happen.

  1. The brand sounds generic: The language becomes vague: “curated,” “elevated,” “authentic,” and “experiential.” Do those all sound familiar? These words get used because there’s no sharper perspective underneath them.
  2. The menu overreaches: It tries to be too many things to too many people because nobody defined what the concept actually stands for.
  3. The guest experience feels disconnected: The music says one thing. The food says another. The pricing says something else. The room looks polished, but the soul of the brand is missing.
  4. Investors lose confidence: Remember, smart investors aren’t buying your taste. They’re buying into your clarity, systems, strategy, and ability to execute at a high level.
  5. Teams struggle to execute: When the founder can’t clearly explain what the brand is trying to be, the team can’t possibly deliver it consistently.

The Discipline New Brands Need

This is the part founders don’t always want to hear, but they need to listen to it.

You don’t need to move faster, you need to think in the right order. You need to follow a tested sequence that drives success.

So, before the logo, before the menu, before the social accounts, before the branded packaging, and before the lease, you need a point of view.

That means doing the less glamorous work first:

  • Validating the opportunity
  • Studying the market
  • Identifying the concept
  • Defining the promise
  • Developing strategic clarity through playbooks

If you’ve already started, that isn’t a delay. If you’ve already started, this is protection. Because once the point of view is clear, everything else gets easier, I promise.

Your design becomes sharper, your menus become smarter, your marketing becomes more magnetic, your hiring becomes more intentional, your training becomes more consistent, your guest experience becomes more memorable.

This type of clarity 100 percent compounds.

The Takeaway Serious Founders Should Save

If you’re building a new hospitality brand, remember this: Your brand doesn’t start when someone designs a logo. It doesn’t start when someone writes a menu. It doesn’t start when you post the first teaser on Instagram. It starts the moment you can answer, with precision and confidence:

  • Why this concept and brand?
  • Why this guest and this market?
  • Why now, and why us?

That’s your point of view. And if you don’t have that yet, you don’t need more design; you need more strategic clarity.

Because in this industry, the brands that win won’t be the ones that look the best first. They’ll be the ones that know exactly what they stand for. That’s how a brand starts.

Everything else comes after.

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by David Klemt David Klemt No Comments

The Hospitality Founder’s Biggest Risk

Hospitality has always been an emotional industry. That is part of what makes it beautiful, right?

Restaurants, bars, and hotels are not built on transactions alone. They are built on memory, ritual, celebration, escape, comfort, status, connection, and experience. This industry touches real life.

But as much as it is emotional, it is also one of the most unforgiving to operate.

Now, this article is not about discouraging founders from opening a bar, restaurant, hotel, or any other hospitality-driven concept. It’s about confronting a risk most founders don’t see early enough: building a business that looks exciting on paper, but doesn’t fit who they are, how they want to live, how they lead, or what they’re truly capable of operating long-term.

by Doug Radkey

A restaurant and bar owner sitting at a table inside the business, reviewing paperwork.

The Dream Is Usually Clear. The Operating Life Isn’t.

Most founders can describe the dream. Maybe you can relate.

Most can describe the room, the vibe, the menu, the design, the music, the reactions, and the opening night. Most can picture the brand before they can explain the operating model.

That’s where the danger begins.

Because hospitality does not care how beautiful the idea is if the founder is not prepared to operate the reality behind it. As we always say, a meal is never just a meal. A hotel stay is never just a room. A bar is never just a place to drink.

What is it then?

  • Payroll
  • Inventory
  • Guest recovery
  • Recruiting
  • Cash flow
  • Maintenance
  • Vendor issues
  • Reviews
  • Training
  • Compliance
  • Leadership
  • Repetition

And that’s before the emotional weight really hits. Arguably, the biggest risk is not that the founder builds something people don’t like. The bigger risk is that they build something they personally cannot sustain.

This one hits deep. I hope you’re ready for it.

The Founder Who Loved the Concept but Hated the Business

I’ve seen this story too many times.

A founder comes in with energy. They have taste, they have vision. They may even have capital. They know what they want the business to look like, and they know how they want people to feel. They’ve collected inspiration for years. Sometimes, they even have a logo or menu.

Then we start asking deeper questions:

  • What hours are you willing to work?
  • How much personal capital are you willing to risk?
  • How long can you operate without taking proper income?
  • Do you want to manage people every day?
  • Can you handle conflict?
  • Can you lead through staff turnover?
  • Can you live with slower-than-expected revenue ramp-up?
  • Do you want to be in the business, or do you want to own the business?

That’s when the dream often gets quiet, and it’s not because the founder isn’t capable. It’s because they’ve never been asked to separate the fantasy from the function.

They were building toward the image of hospitality, not the life of hospitality.

Hospitality Will Reveal the Founder

Every business tests its founder. But in hospitality, it reveals them.

It reveals how they handle pressure, make decisions, communicate, manage money, and lead people. Hospitality reveals how they respond when expectations don’t match reality.

If a founder avoids conflict, hospitality will expose it. If a founder struggles with financial discipline, hospitality will expose it. If a founder romanticizes creativity but resists systems, hospitality will expose it. If a founder wants freedom but builds a business fully dependent on their presence, guess what? Hospitality will expose it.

From our perspective, that is not failure. What it is, is information.

The problem is when founders receive that information after signing the lease, after construction starts, after hiring the team, after taking investor money, and after opening the doors.

By then, the lesson becomes expensive.

The Industry’s Most Dangerous Misalignment

There is a dangerous gap between what founders want from hospitality and what their chosen model demands from them.

Some founders want lifestyle freedom but build a full-service restaurant that requires hands-on leadership seven days a week. Some want creative expression but choose a high-volume bar model that demands operational discipline more than artistic flexibility. Some want passive investment but build a concept with no leadership bench and no systems. Some want community and connection but underestimate how much management, structure, and accountability are required to protect that feeling.

That is misalignment, and it’s one of the fastest ways to create founder burnout.

The Concept Must Fit the Founder

This is where more pre-open strategy needs to get honest, and it’s something we focus on at KRG Hospitality with our Roadmap assessment.

Here’s the hard truth: not every founder should open every type of hospitality business.

That does not mean they shouldn’t enter the industry. It means the concept, operating model, and leadership structure need to fit the founder’s capacity, goals, resources, and desired life.

A founder who wants creative control and deep guest interaction may be better suited to a small, intimate concept than a 200-seat operation. A founder who wants scale may need a tight QSR or fast-casual model, not a complex chef-driven restaurant. A founder who wants lifestyle and asset growth may need a boutique hotel model with strong management infrastructure, not a business where they become the on-site operator. A founder who wants nightlife energy must understand that nightlife is not just music and bottle service: it’s late hours, security, risk management, staff culture, and intense operational discipline.

I can’t stress this enough: The concept must fit the founder, not just the market.

The Questions Founders Need to Answer Earlier

Before a founder asks, “Will this concept work?” they need to ask, “Will this concept work for me?”

That means answering questions most people avoid.

Lifestyle Fit

  • What life am I trying to build through this business?
  • Am I willing to work the hours this model requires?
  • What am I unwilling to sacrifice?

Financial Fit

  • How much personal risk can I carry without panic?
  • How long can I go before generating meaningful income?
  • What happens if the opening takes longer or costs more?

Leadership Fit

  • Do I want to manage people daily?
  • Can I coach, correct, and hold standards?
  • Do I have the emotional discipline to lead under pressure?

Operational Fit

  • Do I understand the complexity of this model?
  • What parts of the business will drain me fastest?
  • What must be systemized or delegated from day one?
  • What operation and people systems does this model need?

Growth Fit

  • Do I want one strong business, multiple locations, or a legacy-based asset I can eventually step away from?
  • Does this model support that path?

These questions are not soft. These questions are strategic and must be answered at the earliest possible stage. Why? Because founder fit is business model risk.

Why Business Plans Miss This

Traditional business plans often focus on the wrong things first. They highlight market opportunity, revenue projections, programming direction, competitive sets, brand positioning, and baseline startup costs.

All important. But as we always state, that’s not enough. That’s why business plans are written last here at KRG Hospitality.

A plan can show that the market wants the concept but it may not show that the founder is the wrong person to operate it.  A pro forma can show revenue potential but it may not show that the labor model will destroy the owner emotionally. A pitch deck can excite investors but it may not show that the concept requires leadership depth that doesn’t exist.

That is why founders need more than a business plan. They need strategic playbooks that connect the concept to the operating reality and the founder’s life.

The Cost of Ignoring Founder Fit

When founder fit is ignored, the consequences show up fast. The owner becomes the bottleneck. The systems never get built. The hiring becomes reactive. The cash-flow stress becomes personal stress. The team absorbs the founder’s anxiety. The guest experience becomes inconsistent.

And then the business starts controlling the founder instead of the other way around.

This is where hospitality starts consuming people. This is not because the industry is impossible, it’s because the business was never designed around the full reality of ownership.

Design the Business Around the Life and the Leadership Model

Serious founders need to design backward. As I wrote in another recent article, this is not from the menu, not from the logo, and not from the space. It should be first designed around the desired operating life.

Founders need to ask five very important questions:

  • What role do I actually want in this business?
  • What must be true for the business to run without me every hour?
  • What leadership structure is required?
  • What systems need to exist before opening?
  • What financial model protects both the business and my personal life?

This is not anti-ambition or anti-passion. This is not creating something “corporate.” This is ambition with strategic discipline.

The goal at the start should not be to build the biggest business you can imagine. The goal should be to build the strongest business you can start and then stabilize and scale, within the lifestyle you want.

The Strategy Founders Should Follow

If you’re planning a new hospitality concept, pressure test the founder fit before you pressure test the operations.

Start with five areas.

  1. Define the Founder Role

Are you owner-operator, investor-owner, creative founder, managing partner, or strategic leader? Those are different jobs.

  1. Match Concept Complexity to Capacity

A larger, more complex concept requires more management depth, more capital, and more emotional stamina.

  1. Build Systems Before Opening

If the business depends on your memory, your presence, or your personality, you are building fragility.

  1. Protect Personal Financial Runway

Do not build a business that forces you into desperation six months after opening.

  1. Design Leadership Early

The first leadership hire may matter more than the first menu item or room layout.

The Takeaway Serious Founders Should Save

The hospitality founder’s biggest risk is not opening something guests dislike, it’s opening something they were never meant to operate.

A concept can be beautiful and still be wrong for the founder. A market can be strong and still demand a model the founder cannot sustain. A brand can attract attention and still become a personal prison.

That is why strategic clarity must come before commitment, before the lease, before the logo, before the menu, and before the investor pitch.

The founder must know what they’re truly building, what it will demand, and whether that business supports the life and leadership role they actually want. Hospitality should not destroy the people bold enough to build it, it should be designed to support them.

And that starts with one honest question: Am I building a business I’m actually meant to operate?

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by krghospitality krghospitality No Comments

What Actually Creates Gravity in Hospitality

Why some venues pull guests back again and again while others constantly chase attention.

In hospitality, there’s a difference between restaurants, bars, and hotels that attract attention and places that create pull.

Most operators know how to get attention. Fewer recognize what actually makes guests come back without being asked.

Attention is easy to manufacture:

  • A flashy opening
  • A viral cocktail
  • An influencer visit

All of that works. At least, it works for a moment. But attention fades; it always does.

Gravity, however, does not.

Gravity forms when a venue stops being a decision and starts becoming a default. When guests no longer evaluate where to go, but simply go where they already trust the experience will deliver. That’s pull.

That’s the difference most operators miss: traffic can be created but return behavior has to be earned.

Unfortunately, if you’ve spent any time in this industry, you’ve seen the opposite play out.

Operators chase visibility, and when that appears to pay off, they celebrate volume. Then, they invest in what’s loud, new, and easy to boast about in their marketing. Most operators, therefore, don’t struggle because they lack effort. The struggles come from optimizing for the wrong outcomes.

by David Klemt

AI-generated image of a gravity well featuring a dark sphere impacting a dark background grid deepy

Gravity isn’t what moves things once, it’s what shapes everything, continuously. (AI-generated image)

And yet, the venues that actually last—those that stay busy without chasing attention constantly—are usually doing something much less visible: they’re building something that holds.

You see it in every city. The bar that’s always busy, even on off nights. The restaurant guests recommend without being asked, and the café people walk past three competitors to reach.

These businesses don’t just generate traffic, they create pull.

Attention is Temporary. Gravity is Durable.

Many operators chase attention. On the surface, that makes sense: attention is visible.

They can point to an array of visible signals, like packed openings, social media engagement, PR coverage, a new platform that promises reach.

What they’re pointing to feels like momentum, like growth. But that’s on the surface, meaning it’s shallow. Those visible signals aren’t providing helpful insights.

Attention is fragile because it depends on constant input. The moment an operator stops pursuing attention, it disappears.

Gravity works differently: it compounds.

When gravity forms, guests don’t need to be reminded you exist. Your guests don’t need to be convinced to return. They’ve already made their decision (often subconsciously) because the experience fits well into their lives.

That’s why some venues can absorb pressure. Slower seasons, weaker marketing, even small operational missteps don’t break them immediately. They’ve built enough gravity (pull) to sustain demand.

The operators who are constantly chasing attention, meaning they’re dumping valuable and limited resources toward it, haven’t built real pull. Instead, they’re forced to replace every lost guest with a new one, rinse and repeat ad nauseam, because nothing is holding people in place.

While it may sound like a marketing problem, it isn’t; it’s a structural one.

The Forces Behind Gravity

If you step back and look at the venues that pull guests in consistently (attracting first-time guests and converting them into repeat guests), the pattern isn’t random.

When you look closer, the same patterns show up time and time again.

Clear Identity

Venues with gravity know exactly what they are. Not internally, but externally. Not even necessarily what the owner intended but what the guest can understand immediately.

Most positioning in this industry is vague:

  • “Elevated casual dining.”
  • “Chef-driven concept.”
  • “Upscale neighborhood bar.”

These phrases don’t actually help a guest decide anything. What drives the decision to visit once and return is a clear identity.

A guest should be able to describe your venue in a single sentence without thinking. If they can’t, your positioning isn’t working.

Clarity reduces friction, making the decision easy: “This place is for me,” or it isn’t.

When identity is unclear, guests hesitate, and hesitation is the enemy of return behavior.

Consistent Experience

Operators consistently underestimate consistency because it isn’t exciting. There’s nothing viral about repeatedly, daypart in and daypart out, delivering the same great experience.

And yet, that’s exactly what builds trust with guests.

Gravity collapses when the experience becomes unpredictable. Guests notice it when food quality shifts, service varies depending on who’s working, and atmosphere changes depending on the night, even if they don’t or can’t quite articulate it.

They don’t track inconsistency. It’s not like they’re creating spreadsheets and keeping tabs on the consistency of your operation. They just stop coming back as often, or at ever again.

Consistency isn’t about perfection, it’s about reliability. Guests need to know what they’re walking into, and trust that you and your team will meet the expectation you’ve set.

Behind every venue that “just works” for guests is structure: clear standards, defined systems, and teams that know what excellence looks like.

Gravity doesn’t survive without that structure because without consistency, there’s nothing to hold onto; it can’t form.

Memorable Moments

The strongest hospitality brands don’t just serve food or drinks, they create memory.

They become tied to moments like first dates, weekly rituals, and celebrations that matter. Once that connection forms, the relationship changes.

The venue is no longer just a place, it’s part of someone’s story.

That’s when gravity strengthens.

Guests don’t just return, they default to your spot. They stop searching for alternatives. They may check out new places, but you’re always in the conversation during the decision-making stage. You and your team become what society is too often missing these days: their Third Place.

They recommend the venue without being prompted, because it already exists in their mental shortlist of “places that work.”

Most operators assume this comes from marketing. In reality, it comes from memory being reinforced, visit after visit.

Gravity spreads socially long before operators realize it’s happening.

What Destroys Gravity

Most venues don’t lose gravity because something breaks. Gravity is lost when an operator’s focus drifts.

Their attention shifts to the wrong signals:

  • Revenue headlines instead of underlying stability.
  • Generational assumptions instead of actual guest behavior.
  • Shiny technology platforms instead of operational discipline.

None of these are inherently bad, of course. But they become dangerous when they pull attention away from the forces that actually create durable businesses.

Every distraction introduces variability, and variability weakens trust. Once trust weakens, gravity starts to break.

It happens quietly at first, and then all at once.

The Difference

Some venues constantly chase guests while others pull them in.

The difference isn’t luck, and it isn’t demographics. It certainly isn’t the latest trend.

What makes the difference is whether gravity exists or doesn’t.

A clear identity, disciplined consistency, and experiences that stay with people. That’s what creates pull.

Everything else is noise, and noise is expensive.

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by David Klemt David Klemt No Comments

Three Lies Hospitality Operators Need to Stop Telling Themselves

Revenue vanity, generational myths, and the expensive distractions hurting operators.

The hospitality industry spends an extraordinary amount of time talking about the wrong things.

Operators debate generational stereotypes. They brag about revenue numbers, and chase the newest technology platform.

Meanwhile, the operators who actually build durable businesses are focused on something far less exciting: structure, discipline, and profit.

Spend enough time walking trade show floors, reading hospitality headlines, or sitting through conference panels and the pattern becomes impossible to miss.

Hospitality doesn’t suffer from a lack of passion; it suffers from distraction.

And some of the loudest conversations in the industry right now are built on myths that waste operators’ time, money, and attention.

by David Klemt

A closeup image of a hand attached to the leads of a lie detector, with the small polygraph machine sitting on the bar top.

Illustration generated using AI

Here are three of the worst lies distracting operators.

Lie #1: Sales Equals Success

Revenue is hospitality’s favorite number. Or, phrased a bit differently, sales are hospitality’s favorite vanity metric.

Operators proudly announce they’ve done $3 million or $5 million in annual sales. Trade show rooms applaud when they hear big sales numbers. Social media celebrates. Award nominations start rolling in. Hospitality publications write features.

But revenue alone tells you almost nothing about whether the business is healthy.

A venue doing $3 million in sales and netting $100,000 isn’t a success story. It’s really a stressful job disguised as a business. A significant number of hospitality entrepreneurs end up giving themselves jobs instead of building businesses and empires.

Sales tells you how busy you were. Profit tells you whether your model actually works.

Too many operators chase volume (full dining rooms, long lines, packed weekends) because volume looks impressive. However, the reality is busy doesn’t equal profitable.

Busy rooms and long lines look impressive to some. But profitability, not popularity, is what determines whether a business survives.

The operators who survive long-term aren’t chasing top-line numbers, they’re protecting margins.

Lie #2: Generations Explain Everything

Another long-standing distraction is the industry’s obsession with explaining everything through generational stereotypes.

We’ve read and heard them all: Boomers are entitled, Millennials have killed restaurants, and Gen Z doesn’t drink.

Did you notice I skipped Gen X? That happens a lot when discussing generations.

These narratives make for easy articles and viral social media posts. However, they rarely reflect what operators actually see inside their venues.

Guests aren’t demographic caricatures, they’re people.

Yes, preferences evolve. But successful operators pay attention to how guests behave in their rooms, not how someone online claims an entire generation behaves.

When operators get distracted by generational mythology, they miss the fundamentals that have always mattered: hospitality, atmosphere, consistency, and value. They also miss another key factor when serving people: speaking to guests’ personal values.

Hospitality doesn’t need better stereotypes; nobody and no industry does. Hospitality needs better observation.

Lie #3: Critical Thinking is Optional

This is where the industry’s most expensive mistakes happen.

Operators will hesitate to invest $30,000 in strategic planning that could protect hundreds of thousands or millions of dollars in capital. But they’ll sign a $50,000 equipment order without blinking.

Operators will overspend on technology platforms they barely use. They’ll chase design trends that photograph well but do nothing for the business. They’ll throw open their doors and add complexity before they’ve built stability.

It happens constantly.

People under-invest in critical thinking and over-invest in shiny equipment, overpowered tech, and unnecessary design.

The irony is that thinking—strategic clarity, concept development, operational structure, financial discipline—is the part that determines whether a venue survives.

Equipment doesn’t fix a weak concept, technology doesn’t repair broken operations, and beautiful interiors don’t create profitability.

You know what does tick all those boxes? Systems and structure.

The Reality

Bars, restaurants, nightclubs, eatertainment, hotels, and every hospitality business in between rarely fail because operators lack passion.

They fail because operators chase signals that look impressive and buy into stereotypes disguised as actionable data points. Failure comes because they’re distracted by revenue headlines, generational myths, shiny equipment, trendy technology, and, possibly the most damaging of all, refusing to change because “we’ve always done it this way.”

If these distractions dominate so much operator thinking, what’s the answer to this key question: What really creates truly durable hospitality brands?

Signals that actually matter.

The operators who build durable businesses focus on something much less glamorous: building businesses with real pull.

They develop and build out clear concepts. They adhere to disciplined operations, and implement profitable systems.

Everything else is noise, and noise is expensive.

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by David Klemt David Klemt No Comments

The Most Expensive Phrase in Hospitality

The hospitality industry has a very clear adaptation problem. A high percentage of restaurants, for example, operate on approximately give percent pre-tax margin in the U.S. That leaves almost no room for error when labor, food, rent, and utilities rise at the same time.

In Canada, as we at KRG Hospitality have pointed out (along with the likes of those at Dalhousie), there is deep operator stress. Many restaurants are operating at a loss or near break-even.

In the U.S., Black Box Intelligence reported weakening year-end 2025 traffic and sales momentum, while the National Restaurant Association continues to highlight persistent cost pressure as a defining theme.

That is the context for one of the most expensive and dangerous phrases in hospitality leadership: “We have always done it this way.”

This era is a wake-up call for both startup founders and existing operators in hospitality. Operators must avoid acting on panic and abandoning the fundamentals of hospitality, and instead abandon complacency.

What got you here will not get you there. The habits, the assumptions, and the systems that helped you open and survive or thrive in one era can quietly become liabilities in the next.

by Doug Radkey

A compass sitting on top of financial documents, lit by a ray of sunlight

Where are you, your business, and your finances headed?

This is why the hospitality industry needs to be reinvented.

The Phrase That Sounds Safe but Isn’t

“We have always done it this way” sounds practical.

It sounds seasoned. It sounds like experience speaking.

In reality, it often means something else:

  • We stopped questioning our assumptions.
  • We normalized inefficiency.
  • We confused tradition with strategy.
  • We are asking the market to adapt to us instead of us adapting to the market.

That mindset is dangerous because it hides behind familiarity, and familiarity is seductive in hospitality.

When the floor is busy, regulars still show up, and staff know the routine, it can feel irresponsible to change anything.

But here is the hard truth: The market does not reward your comfort; it rewards your relevance.

What the Market Is Telling You Right Now

Guests have changed. Teams have changed. Costs have changed. Technology has changed. Attention spans have changed. Expectations have changed.

The public still wants restaurants. But they also want proof.

They want proof of value, proof of consistency, and proof that the final bill feels fair. Your guests are not quitting hospitality, they are rationing it.

Guests are becoming more selective, and saving their spend for places that feel worth it (as I recently wrote in an article titled “The Public Has Spoken.”

At the same time, operators are under real pressure:

  • Average food and labor costs have risen sharply since 2019, according to the National Restaurant Association.
  • Only a minority of casual dining brands posted positive same-store sales growth in several 2025 Black Box Intelligence snapshots.
  • December 2025 same-store traffic was down 3.3 percent in Black Box Intelligence tracking, showing how fragile demand can become when momentum softens.

And yet many operators are still responding with legacy thinking:

  • Raise prices, and hope.
  • Add more menu items, and hope.
  • Work longer hours, and hope.
  • Wait for traffic to rebound, and hope.

Hope is not a system. Hope is not a strategy. Hope will not create positive change.

The Startup Version of the Problem

Early-stage concepts are particularly vulnerable to this mindset because founders often confuse inspiration with readiness.

A founder falls in love with a concept. They’ve seen something work somewhere else. Maybe they worked in a similar venue years ago. Perhaps friends tell them the city “needs this.”

They may think the old rules of location, food cost, staffing, or guest experience still apply in the same way.

So they say:

  • “This is how these places are done.”
  • “This is how the menu should look.”
  • “This is how bars have always made money.”
  • “This is how service should feel.”

The problem is that many startup founders are borrowing assumptions from a version of the industry that no longer exists.

A Startup Story Operators Need to Hear

Imagine a founder opening a neighborhood restaurant today.

They choose a location because it’s in the neighborhood in which they live, and they “know it.” So, they choose to sign a lease without completing a feasibility study. They insist on a 50-item menu because that is what “we had at the restaurant I used to work at.” They refuse to invest in pre-opening systems because “we can train on the fly.” They choose a large footprint because “bigger means more revenue.” They under-budget because “we’ll make it back in the first six months.”

None of that sounds reckless to them. In fact, it sounds normal. Then reality hits:

  • The menu drives waste.
  • The labor model becomes bloated.
  • Training is inconsistent.
  • Ticket times drag.
  • Cash flow tightens.
  • The opening team burns out.
  • The owner starts working 70 hours a week.

What failed was not the dream; what failed was the set of assumptions.

And most of those assumptions were anchored in some version of “This is how it has always been done.”

The Existing-Venue Version of the Problem

For operating venues, the danger is even quieter because existing businesses often survive just enough to avoid confronting what no longer works.

  • A restaurant is still busy on Fridays.
  • The bar still has regulars.
  • Brunch still fills up on weekends.
  • The hotel still books during the off-season.

So, leadership assumes the model is intact.

But under the surface:

  • traffic is softening midweek.
  • labor productivity is declining.
  • guest frequency is down.
  • costs are creeping up faster than pricing power.
  • managers are spending more time solving preventable problems.
  • guests are less forgiving.
  • staff turnover is getting normalized.

This is where “we have always done it this way” becomes a silent killer.

It is not dramatic. It is not obvious, and it is not one big mistake. It’s death by drift.

Why This Mindset Creates Damage

  1. It Protects Broken Systems

The phrase often shows up when someone questions a process.

  • Why do we still print this report this way?
  • Why do we need six people on that shift?
  • Why is the menu still this large?
  • Why is the manager still doing this task manually?

Instead of evaluating the question, leadership defends the tradition. That is how broken systems survive.

  1. It Blocks Innovation Without Protecting Quality

Some operators hear “adapt” and assume people mean “abandon your brand.”

Let me be clear: That is not the meaning of adapt.

Adaptation is not identity loss; it is strategic refinement.

Tightening your menu is not selling out. Improving your tech stack is not becoming robotic or losing human connection. Reworking labor deployment is not disrespecting the team.

Modernizing service does not erase hospitality, it protects it.

  1. It Confuses Activity with Strength

Many operators use old routines because they are familiar, not because they are effective.

That leads to longer hours, more duplicated work, reactive staffing, emotional decision-making, and bloated checklists that do not improve outcomes.

The business looks busy, it just does not get better.

  1. It Makes Scaling Dangerous

A flawed model can survive in one location because the owner is carrying it. However, that will, 100 percent of the time, ensure that it collapses in location number two.

If you scale a business still running on tribal knowledge, heroic leadership, or outdated assumptions, you do not multiply success.

What you’re multiplying in that instance is instability.

The Trend Beneath the Trend

One of the biggest mistakes serious operators make is confusing trends with noise.

Not every change deserves reaction, but some do.

The real skill now is understanding which fundamentals are timeless, and which operating assumptions are outdated.

The Fundamentals Still Matter

  • Ensure you’re operating according to the seven principles of hospitality.
  • Ensure you have cleanliness, pace of service, and brand clarity.
  • Ensure you have leadership presence, value perception, and profit discipline.

The Old Assumptions That Need to Die

  • More menu items means more sales.
  • The owner should be the hardest worker in the room.
  • Managers should solve everything themselves.
  • Being busy means being healthy.
  • Spreadsheets are enough.
  • Guest loyalty is automatic.
  • If I build it, they will come.
  • A strong opening guarantees long-term traction.

That last list is a catalog of damage.

What the Phrase “What Got You Here, Won’t Get You There” Really Means

It does not mean the past was wrong. That phrase means each phase of a business demands a different version of itself.

What got you open is not what stabilizes you.

What stabilized you is not what scales you.

What helped you survive 2019 may not help you survive 2026.

That is simply maturity. A serious operator asks:

  • What must stay true?
  • What must evolve?
  • What is now a bottleneck?
  • What are we tolerating because it feels familiar?
  • What are guests telling us through behavior, not words?

The Strategic Shift Serious Operators Need

  1. For Startups

Start with playbooks, not passion alone.

That means:

  • stress-testing the budget and first-year assumptions.
  • validating the concept against today’s market.
  • developing a strategic roadmap and series of playbooks.
  • understanding the TAM/SAM/SOM of your market.
  • building operating systems before opening day.
  • defining a clear value proposition and guest experience.
  • sequencing your decisions intentionally throughout the process.

The founders who win now are not the most optimistic; they are the most prepared with strategic clarity.

  1. For Existing Venues

Audit your assumptions ruthlessly.

Ask yourself:

  • What part of our operation feels “normal”, but is actually inefficient?
  • What are we doing because it works, and what are we doing because we’re used to it?
  • Where are margins leaking, and why?
  • What would we never design this way if we were starting today?
  • Where is leadership still acting like a firefighter instead of an architect of the experience?

Once you have those answers, you act. Not emotionally, not all at once, but more decisively.

A Better Way to Think

The goal is not to become more trendy or be “a vibe.” The goal is to become an adaptable business.

The goal is not to throw out your identity, the goal is to protect it through better systems.

The goal is not to market harder, the goal is to make the business stronger.

This is where strategic playbooks—not a singular business plan—matter.

A series of real playbooks forces you to think in sequence, test your assumptions, map your reality, and lead from clarity instead of tradition. It gives startups a smarter pre-open path, and gives operating venues a framework to stabilize and scale with discipline.

Without those resources, too many decisions are still based on memory, habit, ego, or convenience. And that fallback to outdated thinking is exactly how “we have always done it this way” survives to bring down yet another business.

The Takeaway Serious Operators Should Write Down

“We have always done it this way” is not operational wisdom. It is often unchallenged drift wearing the mask of experience.

Listen, the hospitality industry is changing whether you like it or not. Guests are changing. Margins are changing. Leadership expectations are changing.

The question is not whether change is coming. The question is whether you are still protecting habits that no longer deserve protection.

Here is the real wake-up call:

  • The next bar, restaurant, or hotel opening will require a different mindset.
  • There’s a solid chance your current pain point is tied to yesterday’s assumptions.
  • Your business will not become more sustainable, scalable, or profitable by defending outdated norms.

The operators who will win the next five years will not be the most stubborn. The winners will be the most honest, the most precise, and the most willing to say:

What got us here won’t get us there.

And then they will build accordingly.

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Spectacle ROI vs Scene Retention: The Two Financial Logics of Nightlife

One of the biggest misunderstandings in modern nightlife is assuming the business runs on a single economic system. It doesn’t.

A sold-out Saturday doesn’t mean your model works, it just means your event worked.

What looks like one category from the outside is actually operating on two fundamentally different financial logics. Some venues run on Spectacle ROI, monetizing attention in spikes through high-impact nights. Others run on Scene Retention, monetizing repeat behavior through habit, identity, and belonging.

Both models can succeed. However, they require different strategies, risk tolerance, and expectations.

Nightlife hasn’t just split culturally, it has split economically.

by David Klemt

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Spectacle ROI: The Event Model

Spectacle-driven venues operate like live events.

Revenue is concentrated into big nights, big bookings, and big production. Talent becomes a headliner rather than background. Lighting, visuals, and room energy are core parts of the product. VIP sales function as a structured access economy.

The goal isn’t consistency, it’s impact.

Spectacle venues are built to answer one question: How big can this night be?

When this model hits, it hits hard; a single night can outperform several average weeks. The upside per activation is significant.

The trade-off is structural. Spectacle relies on novelty, meaning programming must refresh constantly, and attention fades faster than loyalty. Without momentum, gravity weakens quickly.

Scene Retention: The Habit Model

Scene-driven venues operate more like cultural infrastructure.

Revenue comes from repeat behavior, not single-night spikes. Guests return because the space feels familiar, aligned, and socially meaningful. Programming cadence matters more than headliner scale, and identity and community replace spectacle as the primary draw.

The question here isn’t how big the night can be, it’s how often the same guests return.

The Scene model builds more slowly than its Spectacle counterpart. This model rarely produces explosive revenue peaks. The retention that the Scene model generates compounds: loyalty stabilizes revenue, and acquisition pressure drops. The venue becomes part of a guest’s social routine, not just an occasional destination.

Scene doesn’t monetize moments, it monetizes habits.

The Revenue Split in Plain View

Spectacle operates on ROI (or ROE, return-on-event, more explicitly); Scene operates on retention.

One monetizes attention in spikes; the other builds gravity that compounds over time.

That difference shows up everywhere operationally.

The Nightlife Revenue Split

Dimension Spectacle ROI Model Scene Retention Model
Core Goal Maximize revenue per night Maximize guest lifetime value
Economic Engine Event spikes Habit formation
Revenue Pattern Volatile, high peaks Stable, compounding
Guest Motivation Occasion, visibility Belonging, familiarity
Programming Strategy Big moments Consistent rhythm
Marketing Focus Reach, hype Relationship, trust
Risk Profile High Moderate to low
Talent Dependency High Moderate
Growth Style Fast, unstable Slow, durable
Gravity Source Novelty Habit

Neither model is “better” than the other. They’re built for different environments, capital structures, and operator skill sets.

Where Operators Get Into Trouble

Most struggling venues aren’t failing nightlife, they’re failing model and strategic clarity.

Examples show up everywhere:

  • Spectacle-scale buildout with mid-tier programming.

  • Big DJ nights layered onto a space that lacks identity.

  • Strong community concept buried under overhead designed for event economics.

These are structural mismatches.

You can’t run event economics on retention demand. You can’t expect habit behavior in a room designed for episodic spectacle. And you can’t out-market a model mismatch forever.

Diagnostic: Which Business Are You Actually Running?

Operators often think they’re running as one model while their numbers say they’re operating under another. The checklist below is a reality check.

Spectacle ROI Signals

  • ☐ Our biggest nights drive a disproportionate share of revenue

  • ☐ Talent bookings influence weekly performance heavily

  • ☐ Marketing cycles revolve around specific dates or headliners

  • ☐ Guest traffic varies dramatically week to week

  • ☐ VIP/Table sales are a primary profit engine

  • ☐ Production value is central to guest expectations

  • ☐ Without programming refresh, attendance drops fast

  • ☐ We rely heavily on new guest acquisition

  • ☐ Guests talk about specific nights more than our actual venue/brand

  • ☐ Our revenue model depends on scale and volume

If you’ve checked six or more boxes, you’re operating a Spectacle ROI model.

Scene Retention Signals

  • ☐ Regular guests attend multiple times per month

  • ☐ Staff recognize frequent guests

  • ☐ Programming cadence matters more than individual bookings

  • ☐ Week-to-week revenue is relatively stable

  • ☐ Word-of-mouth outperforms paid promotion

  • ☐ Guests describe our venue as their “spot”

  • ☐ Community identity matters (music, culture, subculture)

  • ☐ Nights feel familiar but still engaging

  • ☐ Loyalty drives traffic more than hype

  • ☐ The business could survive a week without headline talent

You’re operating a Scene Retention model if you’ve checked six or more boxes.

The Red Zone

If both sections score high, you may be trying to operate two incompatible economic systems in one space. That’s where identity confusion, overhead mismatches, programming inconsistency, and marketing inefficiency tend to show up.

This is a red flag, and your reality check, particularly if you feel like you’re working hard but not gaining traction. The issue likely isn’t effort, it’s alignment.

Where Gravity Lives

Spectacle captures attention, Scene builds gravity.

Gravity reduces acquisition pressure. It stabilizes revenue and increases guest lifetime value. Without it, venues remain stuck in perpetual re-acquisition mode, always chasing the next spike and new, first-time guests.

That doesn’t make Spectacle wrong or a “bad” model; it means Spectacle is a different business.

The Decision That Shapes Everything

Before programming calendars, deciding on talent budgets, or developing marketing plans, operators need to answer one question: Are we built to maximize nights or years?

The answer shapes staffing structure, pricing strategy, programming cadence, capital planning, and growth expectations.

Clarity here doesn’t limit a concept, it lays it a stable operating foundation on which a successful legacy brand can be built.

Nightlife hasn’t just fragmented socially; it has separated into two financial logics. Operators who understand which model they’re actually running and stop trying to be both are the leaders positioned to build nightlife brands with real staying power.

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When Nightlife Becomes an Industry: Spectacle Economics in the U.S.

The U.S. shows what happens when Spectacle Nightlife reaches full maturity: the category shifts from subculture to structured entertainment economy.

Over the past several years, nightlife hasn’t just gotten bigger in the U.S., it has become an industry all its own.

In cities like Las Vegas, a club night can carry the economics of a touring concert, the sales structure of luxury hospitality, and the marketing engine of a major event.

This isn’t nightlife as Scene, it’s nightlife as Spectacle infrastructure. DJ bookings become headline acts, VIP ecosystems become core revenue engines, and venues function less like local scenes and more like recurring live-event platforms.

Understanding this shift isn’t about monitoring trends, it’s recognizing how scale changes the economics, risks, and operating realities of going out.

by David Klemt

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There was a time when nightlife was primarily a cultural business with entertainment layered into operations and programming.

In the U.S., that equation has flipped.

Today, top-tier Spectacle Nightlife operates at the intersection of three systems:

  • Live-event economics: headliner-style bookings, one-night performance stakes

  • Luxury hospitality mechanics: tiered access, service levels, status signaling

  • Entertainment production logic: lighting, staging, sound, and visuals as core product

This reality goes beyond just running a “busy club.” These venues are now functioning as recurring event platforms.

The DJ is no longer in the background, they’re the headliner. Production is no longer atmosphere, it’s the expectation. VIP is no longer a side offering, it’s the revenue engine.

That is industrialization.

Las Vegas: The Fully Realized Spectacle Model

If you want to see the Spectacle model built out fully, you look to Las Vegas.

Vegas has proven something the rest of the industry now studies and tries to emulate at varying scales: nightlife can be engineered like a large-scale entertainment product when tourism volume, capital investment, and talent pipelines align.

Here, a single night can resemble a festival set compressed into a room (or pool deck, or rooftop, or…):

  • internationally known DJs

  • large-format LED installations

  • choreographed lighting and visual sequences

  • host-driven VIP ecosystems functioning like parallel sales forces

Guest segmentation isn’t incidental, it’s strategic. General admission, elevated GA, table service, VVIP… Each tier represents a different product, not just a different price.

Vegas didn’t simply grow its clubs, it has built a repeatable Spectacle machine.

Spectacle Beyond Vegas: Markets Scaling the Model Differently

While Las Vegas is the clearest example of industrialized Spectacle Nightlife, it isn’t alone.

Other U.S. cities have developed variations of the model. Some may operate at a slightly reduced scale but they’re still built around visibility, production, and high-value guest segmentation.

Miami: Spectacle as Lifestyle Infrastructure

In Miami, nightlife merges with tourism, luxury culture, and 24-hour energy.

Venues like E11EVEN Miami demonstrate how Spectacle logic travels outside Vegas: performance-driven environments, celebrity DJs, VIP ecosystems, and branding that positions the club as a destination in itself. The club even has its own lifestyle clothing brand, with its own dedicated website.

Miami’s version of Spectacle is less about mega-scale venues and more about allure, visibility, and proximity. That said, the economics still revolve around tiered access, production value, and guest perception of status.

Lesson: Spectacle doesn’t need Vegas volume if the city already functions as a global playground.

New York: Spectacle Under Density Pressure

New York City supports both Scene ecosystems and Spectacle venues, but its Spectacle model operates under different constraints: real estate costs, licensing limits, and neighborhood density.

Large-format nights still exist, but the economics require sharper programming, faster turnover of what’s “hot,” and stronger marketing engines. In NYC, Spectacle must fight harder for attention because the city’s overall entertainment field is so crowded.

Lesson: Spectacle in dense urban markets becomes a momentum business: constant refresh, constant visibility.

San Francisco: Spectacle Facing Structural Headwinds

San Francisco shows what happens when Spectacle-style nightlife meets demographic and economic pressure.

Large, generalized club formats have struggled as population patterns and social habits shift. The result isn’t the disappearance of nightlife, but a reduction in the viability of broad, mainstream Spectacle venues.

Markets like this expose a key truth: Spectacle requires the right ecosystem (population flow, tourism, and nightlife culture density) to remain sustainable.

Lesson: Without structural support, Spectacle struggles to maintain gravity.

What Scale Changes

When Spectacle scales to this level, the rules of nightlife shift.

1. Programming Becomes High Stakes

In smaller scenes, a soft lineup might dent a week. At industrial Spectacle scale, one weak booking can impact staffing efficiency, beverage forecasts, and margin performance in a single night.

Talent becomes a cost center that must perform like an asset.

2. Operating Costs Reshape Risk

Between talent fees, production crews, technical systems, security, and host teams, the cost structure resembles event production more than traditional bar operations.

Profitability depends on volume, pricing power, and consistent demand. This model rewards scale, and punishes inconsistency.

3. Marketing Becomes Infrastructure

Promotion is no longer a tactic, it’s a crucial system.

Hosts, promoters, influencer networks, partnerships, and digital campaigns function as a distributed sales and awareness engine. Without it, the machine stalls.

4. The Middle Gets Squeezed

At this scale, the market tends to split into true Spectacle venues, and everything else.

Mid-sized concepts that borrow the look without the engine and gravity often struggle to justify their position.

The Trade-Off of Spectacle at Scale

Industrial Spectacle Nightlife delivers destination pull, global brand visibility, massive revenue potential, and talent relationships that feed future programming.

However, this scale also compresses cultural cycles.

When production value rises everywhere, differentiation must move faster. Trend lifespans shorten, talent dependence deepens, and fatigue sets in more quickly if the experience feels interchangeable.

The more nightlife behaves like industry, the less room there is for cultural ecosystems that are slower to grow to define the mainstream.

The Counterweight: Scene Nightlife in the U.S.

Even in the U.S., Spectacle isn’t the whole story. If Spectacle represents nightlife as industry, Scene represents nightlife as cultural infrastructure.

Further, Scene nightlife isn’t limited to “small” or “secondary” markets, it’s simply the counterweight.

In places like Brooklyn, Chicago, and Detroit, Scene Nightlife operates on a different economic model. The model is defined by lower production arms races, deeper musical or cultural identity, and repeat behavior driven by belonging rather than visibility.

However, these spaces aren’t anti-Spectacle. Instead, they simply monetize a different currency: loyalty rather than volume.

This is the same structural split visible in Canada (and elsewhere), just with greater economic extremes on the Spectacle side in the U.S.

Chicago: Scene as Heritage and Habit

Chicago operates on deep musical lineage and neighborhood ecosystems. House music culture, live music venues, and genre-driven nights create repeat behavior grounded in identity, not production scale.

Chicago’s nightlife isn’t built around Spectacle-motivated spikes, it’s built around weekly rhythms that feel owned by the community.

This is where I first experienced nightlife, from the city’s biggest and most (in)famous nightclubs to goth and industrial bars, and everything in between. Chicago’s Scene Nightlife shaped a significant portion of who I am today.

Detroit: Culture Over Flash

Detroit remains one of the clearest examples of Scene logic. Techno heritage, intimate venues, and music-first environments make nightlife feel participatory rather than performative.

The value isn’t in flashy visual production. In Detroit, the value is in credibility.

Brooklyn: Scene at Urban Scale

Brooklyn demonstrates how Scene can operate at significant size without losing identity. Music-driven venues, warehouse-style events, and culturally specific nights build followings based on trust and consistency.

Brooklyn shows Scene doesn’t mean small. The reality is that Scene Nightlife in Brooklyn is anchored in culture first, scale second.

Portland: Micro-Scene Density

Portland thrives on personality-driven nightlife: themed venues, alternative events, and subculture-specific programming. These rooms rarely compete on spectacle; they compete on character.

This is nightlife designed for people who already know why they’re there, who want to be present, and who value experience over exposure.

Denver: Experience Reframed

Denver shows how Scene evolves with guest behavior. Social events, live music, and alternative nightlife formats emphasize connection, pacing, and community over traditional late-night spectacle.

Here, nightlife behaves less like a production and more like shared experience infrastructure.

What This Means for Operators

When considering starting a nightlife venue, the most important decision by operators isn’t design style, it’s business model identity.

The Spectacle Nightlife model operates on ROE: return on event. Scene Nightlife operates on retention. One monetizes attention in spikes, the other builds gravity that compounds over time.

Dimension Spectacle Nightlife Scene Nightlife
Economic Driver Event revenue spikes Repeat visit frequency
Financial Logic Return on event Retention/Lifetime value
Guest Motivation Visibility, energy, occasion Belonging, familiarity, identity
Programming Model Big nights, headline draws Consistent cadence, trusted rhythm
Risk Profile High volatility Lower volatility, slower growth
Marketing Focus Momentum and reach Community and trust
Gravity Source Hype cycles Habit formation

If You’re Playing Spectacle at Scale:

You are in several businesses at once: the event business, the talent business, and the luxury access business.

To ensure you succeed in Spectacle Nightlife, you need capital depth, programming pipelines, partnerships, and risk tolerance.

This is a high-reward, high-volatility model.

If You’re Not:

Attempting to replicate Spectacle aesthetics without Spectacle economics is incredibly dangerous.

Most markets can’t support industrial-scale nightlife infrastructure. Therefore, following the logic, many are better suited to Scene logic: identity, community, programming cadence, and repeat behavior.

Clarity on how to execute the Scene Nightlife model will help an operator create gravity (the invisible force that pulls the right guests back, again and again).

The Bigger Picture

The U.S. demonstrates what happens when Spectacle Nightlife reaches full economic maturity.

It’s impressive, there’s no doubt it. I’ve witnessed the evolution and industrialization of nightlife in Las Vegas firsthand for nearly two decades.

It’s engineered. Successful Spectacle Nightlife venues are systemized fully, with ruthless precision; nothing is left to chance.

Importantly, it’s also profitable. There are venues that boast nine-figure revenue generation annually.

However, it also makes the defining divide clearer than ever: nightlife today is built either for scale and visibility or depth and belonging.

Operators who understand which business they’re really in—and stop pretending they’re in both—are the industry leaders positioned for longevity as the economics of going out continue to evolve.

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Canada’s Nightlife Split: Spectacle vs. Scene, and What it Means for Operators

Closures don’t kill nightlife, sameness does. Across Canada’s major cities, nightlife isn’t disappearing, it’s sorting itself.

What used to be a broad middle ground of bars and clubs for everyone is fragmenting into two distinct operating models.

A recent cultural critique described nightlife as splitting between highly visible, algorithm-feeding spectacle and darker, more immersive underground spaces built for experience over exposure. (Indeed, a number of nightclubs and nightlife venues have dance floor phone bans in place to protect at least one element of the guest experience, and keep people present.) It’s a sharp observation.

For operators, this isn’t about aesthetics or vibes. Nightlife operators need to understand how attention works now, how guests behave inside venues, and what really drives repeat behavior. What we’re seeing is a structural divide: Spectacle Nightlife vs. Scene Nightlife.

This split isn’t uniquely Canadian. It’s visible in major nightlife markets across the U.S. and globally. However, Canada’s cities offer a particularly clear view of how the two models compete and coexist.

Canada’s nightlife markets are a live case study on how these two models, Spectacle and Scene, compete, coexist, and succeed differently.

by David Klemt

DJs performing in tandem or back-to-back inside dark a nightclub.

The Structural Split: Spectacle vs Scene

Spectacle Nightlife

Spectacle nightlife is built for visibility.

These are high-energy, high-production environments designed to deliver moments, visually, socially, and culturally. They thrive on:

  • scale

  • lighting and production

  • social media momentum

  • “who’s hot tonight?” dynamics

Guests don’t just attend these venues and curated events. They perform in their own right, for friends, strangers, and, undeniably and increasingly, for the feed. The room is part dance floor, part stage.

From an operator standpoint, Spectacle Nightlife typically means:

  • higher buildout and operating costs

  • constant programming refresh to avoid fatigue

  • strong marketing engines

  • volatile relevance curves (big spikes, fast drop-offs)

When it works, it prints. When it fades, it fades fast.

Scene Nightlife

Scene nightlife is built for immersion.

These spaces are less about being seen and more about being there, and being present in the moment. The focus is on:

  • music or cultural identity

  • community and familiarity

  • programming depth over production scale

  • nights that feel specific rather than interchangeable

The goal isn’t to create a moment for a camera, it’s to create a night people remember. Importantly, they remember the night (or day; I haven’t forgotten about you, daylife operators and programmers) because they were present in it, not documenting it.

Operationally, Scene Nightlife tends to mean:

  • programming-driven differentiation

  • slower growth but deeper loyalty

  • lower hype volatility

  • stronger long-term cultural positioning

The energy isn’t just explosive, it’s sticky.

Why This Split is Happening: Sameness Fatigue

Guests aren’t just more price-sensitive, they’ve become experience-sensitive.

This has been true for several years now. A significant percentage of consumers make it clear they’re more interested in paying for experience than just buying things.

When nightlife starts to feel like the same playlist in the same room with the same crowd posting the same photos and videos, people pull back. They’re not rejecting nightlife entirely but they see no value in buying into interchangeable nights.

Spectacle formats that don’t evolve quickly enough collapse into noise. Scene formats, when done well, stand out because they feel specific to a sound, a community, a neighborhood, a subculture.

This is the backdrop against which Canada’s nightlife markets are operating.

How Canada’s Markets Reflect the Split

Vancouver: The Rise of the Intentional Night

Vancouver behaves increasingly like a Scene-leaning market.

Instead of broad, mainstream club ecosystems, the traction is in curated parties, themed nights, listening-bar energy, and ticketed or semi-ticketed events.

Discovery often happens through community networks, not just mass promotion. Nights with a clear identity (sonic, cultural, or thematic) outperform generic formats.

Operator lesson: Vancouver rewards clarity over scale. Being for someone beats trying to be for everyone.

Toronto: Big Enough for Both, Brutal to the Weak

Toronto can support Spectacle Nightlife. It has the population, tourism flow, and density to sustain high-visibility formats.

However, Toronto also punishes mediocrity, and it does so quickly.

At the same time, Toronto’s neighborhood ecosystems and niche venues show strong Scene dynamics. There are music-first rooms, culturally anchored spaces, and smaller venues with loyal followings.

Operator lesson: Toronto isn’t anti-spectacle, it’s anti-average. If you’re running Spectacle logic, it has to be sharp. On the other hand, if you’re Scene-driven, it has to be real.

Calgary: Social Infrastructure Over Spectacle

Calgary leans naturally toward Scene Nightlife.

The strength of its after-dark culture often lives in live music, approachable social bars, neighborhood movement, and nights built around connection, not performance.

This is nightlife as habit, not event. The room is a place to gather, not a place to stage a moment.

Operator lesson: Not every market wants a stage; some just want a room. Concepts that feel like community infrastructure rather than Spectacle venues hold traction.

Montreal: Culture as Competitive Advantage

Montreal’s nightlife behaves most like culture, not just entertainment.

Its advantage isn’t just venue count, it’s in neighborhood identity, programming depth, and scenes with history and credibility.

Even when venues scale, they often retain a Scene backbone: a sense that guests are stepping into a space that has context and character.

Operator lesson: You can’t manufacture Montreal-style nightlife with capital alone. Culture compounds, but only if it’s protected.

What This Means for Operators

The biggest mistake right now is trying to sit in the middle. Borrowing the look of Spectacle Nightlife without the engine or trying to co-opt the vibe of Scene Nightlife without the depth are failing “strategies.”

Positioning Question: Which model are you building?

This choice shapes a number of crucial operating elements, such as:

  • marketing strategy

  • staffing profile

  • programming cadence

  • revenue rhythm

  • risk tolerance

If You’re Spectacle-Leaning:

You need a strong visual and production identity, constant programming evolution, social momentum, and a content strategy.

Further, you’ll need to maintain operational precision under pressure.

If you choose to operate in the space of Spectacle Nightlife, you’re in the attention business; stagnation is your enemy.

If You’re Scene-Leaning:

You need consistent, credible programming. You’ll also need to build a team who understands culture, not just service.

Scene Nightlife operators must commit to community integration. Community in the sense of the immediate neighborhood, the town or city, and the subcultures targeted in the programming.

Crucially, if you’re a Scene Nightlife operator, you’ll need patience. Your brand will build more slowly but will also last longer.

You’re in the belonging business, and authenticity is your currency.

The New Competitive Advantage

Neither Spectacle nor Scene Nightlife concepts can rely on buildout alone for an advantage. Similarly, they can’t rely on table and bottle sales, nor will they succeed simply because of their talent bookings.

The new, clear competitive advantage in nightlife, regardless of how the concept leans, is clarity of experience design. Clarity is what creates gravity, the invisible force that pulls the right guests back, again and again.

Nightlife operators need to ask key questions about their experience design and programming:

  • What kind of night is this?

  • Who is this night for?

  • Why should a guest return after this night, not just once but habitually?

The markets that will thrive aren’t the ones with “more nightlife.” They’re the markets with clearer nightlife: concepts that understand whether they’re building spectacle or building scene, and align every decision accordingly.

It’s important to understand that nightlife hasn’t split because guests have stopped going out. The reality is that nightlife has split because because guest attention has changed.

Operators who understand this shift aren’t just surviving this era, they’re the leaders who will define what going out looks like next.

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Six Traits Quantify Cool

Six Traits Quantify Cool

by David Klemt

An AI-generated image of a dog wearing goggles, sitting on top of a motorcycle that's parked outside of a bar

It’s difficult to visualize cool, so here’s a dog wearing doggles on a sportbike outside of a bar. Cool!

A team of researchers published the results of an experiment spanning several years, nearly 6,000 participants, and a dozen countries to quantify cool.

The international team’s paper, “Cool People,” was published by the American Psychological Association’s Journal of Experimental Psychology.

Alphabetically, the respondents are from: Australia, Chile, China (mainland and Hong Kong), Germany, India, Mexico, Nigeria, Spain, South Africa, South Korea, Turkey, and the United States.

The team’s research identifies six attributes of being “cool.” Interestingly, while they focused on 13 different regions, attributes associated with being cool are found to be surprisingly stable.

For the most part, cool people share these characteristics across several countries and cultures.

“Coolness is socially constructed such that a person, object, or behavior is cool if people agree that it is cool and uncool if they agree that it is not. Thus, it is less important to know how scholars have defined coolness than to understand what people perceive to be cool and uncool. We therefore operationally define coolness as whether or not a person is subjectively perceived to be cool by an observer.”

Per the Cool People researchers, this is fairly universal.

Relevance to Hospitality

I’ve taken a look at “cool” before. My conclusions were that it’s an amorphous concept, and that most people know something is cool in the moment. So, it’s interesting to see that researchers tackled the topic over the course of five or more years.

“Okay, great,” you may be thinking. “What does this have to do with my business?”

Hospitality is, by its nature, social. Coolness is a social construct, and society (and the cultural subsets therein) decide what’s cool.

People support brands and businesses they think are cool; it’s really that simple. Being deemed cool by a significant number of guests is a key to long-term success for most brands.

This experiment inspired me to look at restaurants, bars, and hotels through the lens of the Cool People experiment. Can we apply the six Cool People attributes to a restaurant, bar, or hotel?

Let’s dive in, or whatever a cool person would say. I guess they wouldn’t have to say anything; they’d make their move and people would follow.

Extraverted/Extroverted

In simple terms, extroverts are perceived—a key word here—as sociable and outgoing. They enjoy being around other people, and want to interact in social settings.

If your restaurant, bar, nightclub, or hotel were a “cool” person, it would display characteristics of an extrovert: sociable, assertive, friendly, makes friends easily, talkative/communicative, enjoys groups, finds socializing energizing, and many others.

(Extraversion versus introversion goes much deeper, psychologically speaking, and I’m keeping things much less complicated here. Introverts can absolutely have the characteristics above.)

Were your venue and staff seen as extroverted (and therefore cool), it would be perceived by guests as welcoming and sociable, at the least. The experience would tell a story, and make guests feel like friends rather than being strictly transactional.

Look appealing? Sound like your business? It should, because that’s hospitality at its core.

Achieving this attribute requires leadership to make the right decisions, from branding and marketing to hiring, onboarding, and training, and also curating the vibe during every daypart.

Hedonistic

Hedonism is indulgence. It’s a focus on pleasure, and an aversion to pain.

Understand this: People can eat, drink, relax, and sleep at home. They don’t really need to visit your bar, restaurant, or hotel; they want to visit your business. People want to socialize, see, and be seen, to feel accepted and special.

Of course, you and your team have to make them want to visit and spend their time and money at your place. They want to leave their homes and be made to feel cool and special, but you need to do the work to lure them to your venue.

A hedonistic restaurant, bar, nightclub or hotel delivers a memorable experience that fulfills guest desires and surpasses their expectations (delivering pleasure). Hedonism in this sense also means ensuring a guest’s exterior stressors melt away while they’re spending time with you and your team (removing pain points).

In my opinion, truly cool people make others feel cool. So, you and your team need to do the same. Look at your touch points. Review your leadership’s approach to service recovery. Be honest about whether your team feels empowered to be themselves while adhering to your SOPs and expectations.

Why? Because your guests want to feel cool. They want to feel relevant, important, seen, and heard. Does your standard of service make guests feel cool?

Show your guests that you think they’re cool. Indulge their wants and needs, unreasonably so if possible. In turn, they’ll want to indulge their desire to socialize, eat, and drink at your place.

Powerful

In the context of your hospitality brand, powerful can be defined as influential.

Does your community view your bar or restaurant favorably? Do the locals in your market support and spend time in your hotel?

If you’ve led your business to becoming a destination for surrounding markets, it’s powerful. And if people aspire to be seen at your business, that’s influence, and therefore power.

Has your restaurant or bar become a destination for people in other cities, states, provinces, and even other countries? Congratulations, you and your team have built, and are running, a powerful concept.

The same is true if your business can scale successfully; a concept that resonates strongly with the public is powerful. (Interestingly, building a brand that can scale but doesn’t is also cool.)

Create a legacy brand, lead your business to achieve long-term success, and you’ll have built a powerhouse.

Adventurous

People perceive as cool any person who’s willing to try new things, and does so often. The reasoning is simple: adventure is cool.

Travel and exploration are cool, and all over social media. Overlanding—self-reliant travel to remote destinations—has surged in popularity over the past few years. The ADV (adventure) motorcycle segment is expected to grow by a billion dollars year over year for the next eight years.

People want adventure, excitement, and new experiences. Hospitality brands are positioned uniquely to fulfill this desire.

Offering guests a unique spin on even a single F&B item can be adventurous. Introducing guests to a new-to-them cuisine is you and your team taking them on an adventure. The same is true for unique amenities, or creating a new way for a guest to experience a space.

Interesting glassware, compelling F&B pairings, eccentric ingredients and presentations, distinct menus, cuisines not otherwise presented in a given market… Even how menus or checks are dropped can deliver an adventure.

Adventurous people are seen as cool. You know what’s even cooler? Being the adventure. Strive to become an escape and escapade.

Open

Along with being adventurous, cool people are viewed as “open.”

Curiosity is cool. Being open to new experiences and ideas is cool. Welcoming people from all walks of life is cool.

This characteristic of coolness is represented in multiple ways in hospitality. A restaurant or bar team can at once be open to new ideas internally, and provide the opportunity for guests to experience new items and experiences.

Empower your team to share their thoughts on your brand, marketing, menus, promotions, and the guest experience. Speaking generally, different generations and groups have different opinions on what’s cool, so ask them for their input.

Be open to change, embrace it, and see how quickly your restaurant, bar, or hotel becomes the cool place to seek out new experiences.

Autonomous

Ask someone if conformity is cool and they’ll likely pull a face and say no. Of course, that’s somewhat ironic since most people want to be—and want to be part of—what’s deemed cool.

Trying to be cool is inherently uncool; we expect cool people to be so effortlessly. It’s a double-edged sword, with cool on one side of the blade and uncool (or cringe, if you prefer) on the other.

Going against the grain, circumventing expectations, and doing their own thing? That’s what cool people do.

It makes sense, then, that a restaurant or bar that doesn’t do and offer what every other place is doing (autonomy) is cool.

From the researchers: “[I]f coolness motivates the spread of innovation, then coolness should be associated with creating and diffusing new ideas.”

To be blunt, most restaurants, bars, and hotels are selling the same shit. In recent years, some big personalities in the industry have been saying this quite plainly. One was on the Bar Hacks podcast recently.

So, if we’re all selling the same things to our guests, how can any concept be seen as autonomous, and therefore cool? It comes down to strict adherence to our vision, a commitment to developing a fully realized brand, our team’s focus on the guest experience, and unique interpretation of menu items.

Of course, that last element can go sideways, slipping away from “cool” and spiraling into confusion or frustration.

Give your guests the cool, unique experience only you and your team can deliver, but make it approachable and understandable. Otherwise, you’ve given them homework, not an escape from their everyday lives.

Cool vs. Good

There’s an additional, interesting component to the Cool People experiment.

Within their paper the researchers reference a Canadian experiment. The study found that Canadian students, at least up to 2012, “frequently” saw cool people as those who demonstrated five characteristics of admirable people: friendliness, competence, desirability, attractiveness, and trendiness.

(Personally, I’m disappointed Canada wasn’t included in the Cool People experiment. I’m comfortable saying the rest of the KRG Hospitality team joins me in my dissatisfaction.)

Cool People researchers posit that that cool people should be admired by others for their status as a cool person. But that leads to other questions: Shouldn’t we admire good people? If so, is cool the same as good?

The researchers were compelled to address those questions during their experiment. Put simply, they found that cool people are capable of being “good.” However, they’re defined, for lack of a better word, as being extraverted, hedonistic, powerful, adventurous, open, and autonomous. You’ll notice “good” isn’t on that list.

So, no, cool is not the same as good, as far as this particular experiment’s findings show.

You’re probably wondering now what characteristics are attributed to good people. Well, you’re in luck, because the Cool People researchers included them in their experiment: conforming, traditional, secure, warm, agreeable, universalistic, conscientious, and calm.

What would the perception of being “good” look like for a restaurant, bar, or hotel? I may just tackle that question in an upcoming article.

Cheers!

AI-generated image: Microsoft Designer

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A restaurant or cafe owner flipping over the "open" sign on the door
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Bars and Restaurants: How Much to Open?

How Much Does It Cost to Open a Bar or Restaurant?

by Doug Radkey

A restaurant or cafe owner flipping over the "open" sign on the door

One of the most common questions we get asked at KRG Hospitality is, “How much does it cost to start a bar, restaurant, coffee shop, or nightclub?”

It’s a loaded but valid question, one that every aspiring hospitality operator should ask before diving into this industry.

But here’s the thing: there’s no single answer. Your start-up costs will depend on a variety of factors, such as location, size, market, and whether you’re taking over a second-generation space (a previous hospitality space) or building from scratch.

However, we can provide general cost-per-square-foot estimates based on 15 years of experience with over 280 concepts developed around the world. This takes into account 45 datapoints, which we have listed further down in this article.

Square Footage Costs in 2025

What’s the general cost per square foot for each category in 2025? Let’s have a look.

To open a coffee shop, the cost is approximately $428 per square foot. That means if you’re planning a 1,200-square-foot coffee shop that provides beverages and some baked goods, your estimated total start-up cost would be, on average, $513,600 USD.

Starting a quick-serve restaurant (QSR) comes with an approximate cost of $535 per square foot. If you’re planning an 1,800-square-foot restaurant with counter service and a small dining area, your estimated total start-up cost would be, on average, $963,000 USD.

For a bar with a kitchen, assume an approximate cost of $545 per square foot. So, if you’re planning a 2,400-square-foot bar with a kitchen for a solid food program to go along with your beverages, figure on a total start-up cost of around $1.3 million USD.

To open a full-service restaurant (FSR), the cost is similar to a bar with a kitchen, coming in at approximately $555 per square foot. This will increase based on the level of finishes. That means if you’re planning a 4,000-square-foot restaurant, your estimated total start-up cost would be approximately $2.22 million USD.

The cost is approximately $480 per square foot to open a nightclub. Interestingly, this square-footage cost is less than most bars and restaurants. This is due to the larger open floor zones. If you’re planning a 12,000-square-foot nightclub, your estimated total start-up cost would be approximately $5.76 million USD, which will be allocated msotly to the bar, plus sound, video, lighting, and furnishing.

Realistic Expectations

Do the above costs sounds like a lot capital for each type of concept? It should, because it is.

Based on our in-house data, costs have increased between 40 and 60 percent since 2020. That’s a main driver for today’s operators seeking out smaller locations (and second-generation properties to leverage pre-existing infrastructure).

The key to not over (or under) spending, however, is strategic clarity.

Why Strategic Clarity Matters

Before you even think about signing a lease, you need to have a clear and calculated approach.

That means having the eight non-negotiable playbooks completed to ensure every decision aligns with your brand, budget, and long-term strategy.

You must complete a feasibility study, conceptual playbook, prototype playbook, brand strategy playbook, tech-stack playbook, marketing playbook, financial playbook, and business plan before you ever sign a lease or purchase a property.

One of the most critical playbooks? Your financial playbook. This isn’t just about revenue projections—it must include a comprehensive start-up cost analysis to prevent budgetary blind spots and financial surprises.

Below, a breakdown of what your start-up costs should include.

Pre-Opening Costs

(Ensuring legal, operational, and strategic groundwork is in place before opening day.)

  • Pre-Open Lease and Landlord Deposit Payments: Covers the rent requirements before opening, typically three to six months in advance, pending build-out requirements.
  • Pre-Open Utility Deposits: Initial security deposits for water, electricity, and gas.
  • First Month’s Lease: Your first month’s rent due the month you open officially.
  • Architect/Engineer/Design Fees: Costs associated with drafting MEP plans, structural assessments, and an interior designer.
  • Business Insurance Premiums: Coverage for build-out, liability, alcohol, property damage, and operational risks.
  • Start-Up Legal & Accounting: Initial legal setup, contract reviews, tax structuring, and financial consulting.
  • Strategic Planning: Consulting or internal resources used for feasibility studies and other strategy playbooks (the non-negotiables).
  • Consultants & Agencies: Fees for post-planning coaching and consulting, project management, menu development, and more.
  • Licenses & Permits: Alcohol licenses, building permits, and other business registrations.

Equipment, Fixtures & Technology

(Ensuring operational efficiency, and a seamless guest experience.)

  • Kitchen, Bar, Sound, Video & Game Systems: Budget for all of your bar, kitchen, service, audio-visual setups, and entertainment elements.
  • Interior & Exterior Signage: Branding, promotional, and wayfinding signage.
  • Furniture Fixtures: Chairs, tables, table bases, booths, and lounge seating.
  • FOH Smallwares: Cutlery, plating, glassware, trays, and other serving tools.
  • Branded Takeout Packaging: Custom-printed cups, bags, and other containers.
  • POS Technology & Install: Point-of-sale systems, tablets, and registers.
  • Additional Tech-Stack: All of your technology integrations (hardware and/or subscriptions) for reservation systems, inventory management, mobile ordering, and more.

Pre-Opening Inventory & Staffing

(Preparing your team, and supplies for a smooth opening.)

  • Training F&B Inventory: Food and beverage items used for staff training before opening.
  • Opening F&B Inventory: Initial stock of ingredients, prepared foods, wine, spirits, and other beverages.
  • Initial Staffing & Training: Hiring costs, onboarding, and initial training programs, plus labor costs for the first four weeks of operations.
  • Staff Uniforms: Branded attire for both front- and back-of-house teams.

Marketing & Launch Costs

(Attracting guests, and building brand awareness before and after launch.)

  • Marketing Agency Fees: Branding, digital marketing, and advertising strategy and agency.
  • Website/App Design: Custom website, online ordering, and mobile or loyalty apps.
  • Online/Social Media Ads: Paid campaigns on Google, Facebook, Instagram, and TikTok.
  • Soft Opening Strategies: Invite-only events to test operations and train staff.
  • Launch Month Strategies: Pre- and grand opening promotions and public relation efforts.
  • Other Marketing & Promo: Traditional advertising, influencer partnerships, and email marketing, plus other go-to-market strategies.

Build-Out & Infrastructure Costs

(Transforming the space into an operational hospitality venue.)

  • Contractor & Admin Fees: Fees for project managers, general contractors, and any other administrative or permitting processes.
  • Wall, Floor & Ceiling Structure: Installing new framing, drywall, flooring, and ceiling treatments.
  • Doors & Trim: Interior and exterior doors, trims, and moldings.
  • Glass & Glazing: Windows, glass partitions, and display cases.
  • Wall/Drywall Finishing: Final painting, wallpapering, and/or paneling.
  • Floor & Ceiling Finishing: Tiles, wood, epoxy flooring, ceiling tiles, and decorative finishes.
  • Counters & Millwork: Custom bars, countertops, display units, and cabinetry.
  • General Electrical: Wiring, panels, power outlets, and compliance updates.
  • General Plumbing: Pipe installations, water supply, and drainage systems.
  • Lighting Fixtures: Decorative, ambient, and functional lighting fixtures.
  • Plumbing Fixtures: Staff and guest restroom utilities.
  • Fire Protection Systems: Sprinklers, fire alarms, extinguishers, and emergency exit compliance.
  • HVAC Systems: Heating, ventilation, and air conditioning units.
  • Kitchen Hood Systems: Commercial exhaust and ventilation systems for kitchens.
  • Other Design & Install Costs: Additional decorative, acoustic, or functional installations.

Emergency & Miscellaneous Costs

(Budgeting for unexpected expenses and securing cash flow.)

  • Miscellaneous & Contingency Budget: Extra funds for unforeseen costs and emergencies during pre-open stage.
  • Pre-Open Interest Payments: Loan interest accrued before opening.
  • Opening Day Cash Flow: Initial capital to handle early operational expenses, and buffer against slow openings (plan for approximately three to six months).

Why You Need a Detailed Cost Guide

If you’re serious about starting a bar, restaurant, coffee shop, or nightclub, having accurate financial projections is non-negotiable.

But the truth is, most operators underestimate their start-up costs. This leads to broken trust with investors, unexpected expenses, and businesses failing before they even get off the ground.

That’s why every year, KRG Hospitality provides detailed cost guides tailored to different hospitality business models, including:

✔ Coffee shops
✔ QSRs
✔ Bars
✔ Full-service restaurants
✔ Nightclubs

Our guides break down real-world cost structures so you can build your financial plan with confidence. No guessing, no underestimating, no surprises.

If you want full visibility into your start-up budget, grab our latest start-up cost guide today, and make decisions with absolute clarity.

This cost guide provides all of the details (budget percentages) for each of the 45 data points for each style of concept, plus additional planning tools.

📩 Get the Full Cost Guide Now

Access our 2025 Bar & Restaurant Start-Up Cost Guide for just $14.99 USD

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Critical Thinking: Unlocking Success

Critical Thinking: Unlocking Success in Hospitality

by Doug Radkey

Chessboard, representing the concept of critical thinking

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.

  1. 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.
  2. 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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An AI-generated image of two tourists looking at a map and smiling in a destination city
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The Evolution and Impact of Tourist Traps

The Evolution and Impact of Tourist Traps

by Doug Radkey

An AI-generated image of two tourists looking at a map and smiling in a destination city

AI images are improving at an alarming rate.

For many reading this, I am sure the term “tourist trap” conjures images of overpriced souvenirs, subpar dining experiences, and crowded attractions.

I had an interesting experience with my daughter in Niagara Falls, Ontario, Canada, recently. After reflecting upon it, I thought it would be a good time to explore how tourist traps, particularly restaurants, have evolved over time.

This includes their impact on local economies, changing traveler perceptions, and strategies for developing more authentic experiences.

The Evolution of Tourist Traps

The term “tourist trap” originated as a descriptor for businesses or locations that exploit travelers by offering overpriced goods and services, often with low quality or minimal value.

The concept dates back to the early days of tourism when travelers, unfamiliar with local customs and pricing, were easy targets for less-than-scrupulous vendors. Tourist traps were characterized by their strategic placement near popular attractions, capitalizing on high foot traffic and the desire of visitors to experience something unique or memorable.

Early tourist trap restaurants were notorious for their inflated prices and subpar offerings. These establishments often lured tourists in with flashy signage, gimmicky themes, or promises of local cuisine, only to deliver mediocre food and service.

For instance, restaurants near iconic landmarks like the Eiffel Tower in Paris or Times Square in New York City became known for their exorbitant prices, poor quality meals, and lackluster service. These venues capitalized on their prime locations, knowing that many tourists were willing to pay a premium for the convenience and the experience of dining near a famous site.

Further, the evolution of tourist traps has been significantly influenced by globalization and the rise of mass tourism. As travel became more accessible and affordable, an increasing number of people from diverse backgrounds began exploring popular destinations. This surge in global tourism created a lucrative market for businesses catering to tourists, leading to the growth of tourist traps around the world.

Trap to Destination?

In response to changing consumer preferences, some tourist traps have evolved to offer more polished and refined experiences while still maintaining high price points.

Modern tourists are often more discerning today and seek authenticity, quality, and unique experiences. To cater to these demands, some tourist traps have rebranded themselves, focusing on improved aesthetics, service quality, and curated experiences.

For example, many historical tourist trap restaurants have undergone renovations to offer upscale dining experiences, complete with gourmet menus and stylish interiors. While these establishments still target tourists, they attempt to justify their premium prices by providing a more sophisticated ambiance and higher-quality offerings. In this way, they begin to evolve from tourist traps to destinations.

However, despite these improvements, the underlying business model often remains the same: capitalizing on tourists’ willingness to pay extra for convenience, and the allure of a trendy or iconic location.

As tourism continues to grow, the challenge for travelers will be to distinguish between genuinely enriching experiences and those that are merely polished traps for their money.

On the flip side, the opportunity for operators is there to curate a concept and brand that delivers on the true promise of an experience, even with higher prices, by providing perception of value and quality service.

Impact on Local Economies

Tourist traps, despite their often-negative connotation, do have a significant impact on local economies in both positive and negative ways. While they can be vital sources of revenue and employment in popular tourist destinations, they also come with drawbacks that can affect the local community and economy.

Revenue Generation

Tourist traps are frequently positioned in areas with high foot traffic, such as locations near landmarks, natural wonders, and cultural sites.

These businesses capitalize on the influx of tourists, generating substantial revenue through the sale of goods, services, and experiences. This influx of tourist dollars can be a major economic boon for regions that rely heavily on tourism, providing a steady stream of income that supports local infrastructure and public services.

Job Creation

The presence of tourist traps often leads to job creation, as these brands require staff for various roles.

This employment can be particularly valuable in regions with limited job opportunities, offering work to locals who might otherwise struggle to find employment.

Contributions to Local Tax Revenues

In many cases, the taxes generated by tourism-related businesses help maintain and develop the very attractions that draw visitors to the area, creating a symbiotic relationship between tourism and community development.

Economic Leakage

One of the major criticisms of tourist traps, however, is economic leakage, from which a significant portion of the money spent by tourists leaves the local economy.

This often occurs when tourist trap businesses are owned by large corporations or non-local entities. This leakage can be particularly detrimental in areas where the local economy is heavily dependent on tourism.

Driving Up Prices

As businesses target tourists who may be willing to pay premium prices, the cost of living in popular tourist areas can increase.

This phenomenon, often referred to as “tourist inflation,” can make it difficult for the local residents to access affordable housing, groceries, and other essential goods.

Crowding-Out Effect

As tourists flock to well-known attractions and establishments, smaller, locally-owned businesses may struggle to compete.

This can result in a loss of cultural diversity and authenticity, as traditional shops, restaurants, and artisans on the outskirts of the tourist area are pushed out in favor of more commercially successful (and convenient) tourist traps.

Changing Perceptions of Travelers

The traditional appeal of tourist traps—often characterized by easily accessible, heavily marketed attractions with high prices and standardized experiences—has waned in recent years.

Modern travelers are increasingly seeking authenticity and immersion, favoring genuine connections with local culture and experiences rather than conventional tourist offerings. This shift has led to a growing demand for unique and meaningful experiences that go beyond the superficial allure of traditional tourist traps.

Rather than flocking to the most popular attractions, they are more inclined to explore local neighborhoods, dine at lesser-known eateries, and participate in cultural activities that provide a more genuine understanding of the place they are visiting.

This trend reflects a broader desire for meaningful travel, where the journey is not just about sightseeing but also personal growth and cultural exchange.

The preference for immersive experiences has also led to an increased interest in activities such as cooking classes, guided cultural tours, and community-based tourism initiatives. These experiences often provide travelers with hands-on opportunities to learn, and participate in local traditions, offering a deeper connection to the destination.

Experiential Travel

The shift in traveler preferences over the past few years has given rise to travel companies that specialize in experiences that are off the beaten path. These experiential companies curate unique itineraries that focus on lesser-known attractions, local interactions, and culturally enriching activities.

For example, companies like Airbnb Experiences and G Adventures offer travelers the chance to explore hidden gems and participate in local customs, far removed from the typical tourist circuit. These experiences cater to travelers who want to avoid the crowds and discover the authentic essence of a place.

Travelers are becoming more conscious of their impact on the destinations they visit. An understanding of cultural sensitivity and sustainable tourism have also gained prominence. Modern tourists are increasingly aware of the negative consequences of mass tourism, such as environmental degradation, cultural commodification, and the displacement of local communities.

As a result, they seek out travel experiences that align with their values, emphasizing respect for local customs and traditions, as well as environmental stewardship.

The shift in traveler perceptions has redefined the concept of tourist traps, and reshaped the tourism industry. Growing demand for authentic and immersive experiences has led to a decline in the appeal of traditional tourist traps, and a rise in alternative forms of travel.

This evolution presents an opportunity for destinations to reimagine their tourism offerings, moving away from the superficial and towards the authentic and transformative.

Personal Experience: Niagara Falls Tourist Trap Restaurant

What inspired this article? On a recent trip to Niagara Falls, a notorious hotspot for tourist traps, my daughter insisted on visiting a well-known restaurant famous for its jungle-like atmosphere.

Despite knowing it was a classic tourist trap, I decided to indulge her curiosity and give it a try. The restaurant’s marketing promises an immersive experience with animatronic animals and lush decor, creating an exciting adventure for families.

However, the reality of the experience fell far short of these expectations.

Upon arrival, we were seated at the furthest table from the main animatronics, which are one of the primary attractions of the restaurant. This placement diminished the ambiance and excitement we were hoping to experience.

The food itself was another disappointment. We ordered a standard burger and fries, as well as fish and chips, both presented in basic diner baskets with checkered liners.

Despite the underwhelming presentation and quality, the bill came to over $68 before beverages, taxes, and gratuity—an exorbitant price for what was essentially fast food.

To top it all off, we waited 22 minutes to pay our bill, further detracting from the overall experience.

Perception vs. Reality

The marketed image of an exciting, immersive dining experience was a stark contrast to what we actually encountered. The atmosphere, which was supposed to be a highlight, was underwhelming due to our seating arrangement. The food, while edible, was overpriced and lacking in both quality and perception of value.

A $32 traditional burger with lettuce, tomato, and onion could at least be presented on a wood board, and $36 fish and chips could at least use fresh fish versus the obvious frozen alternative.

While I understand the seasonality of the tourist area and the need to pay bills in the off season, running what I can estimate as five- to eight-percent food costs is pushing the limit.

Additionally, the long wait to settle the bill only added to the frustration, leaving a disappointed look in my daughters’ eyes. If only there was technology available to book a table near the animatronics, and tech available to allow guests to pay their bills more quickly…

Key Takeaways

This experience highlighted several key issues that often plague tourist traps. The disparity between the marketed image and the actual experience can lead to significant disappointment for guests.

It’s crucial for bars, restaurants, and hotels to set realistic expectations and deliver on their promises, whether in an area with high tourist traffic or not. Marketing should align with the actual experience to avoid misleading guests and creating negative impressions.

Furthermore, providing a high level of hospitality and a perception of value is arguably more crucial these days than ever before, regardless of the location or nature of the concept. Being in a tourist-heavy area does not justify subpar deliverables.

Even if a business is catering to tourists, it should strive to offer quality service, perception of value, and a memorable experience.

Tourist destinations may draw the crowds, but delivering consistent quality and service is key to leaving a lasting, positive impression that will ensure they not only return, but showcase a business on their social channels in a glowing light.

From a traveler’s perspective, while someone may want to make their kids happy like I did, it would be wise to look for more locally-owned restaurants, shops, activities, and boutique hotels that offer a true taste of the area’s culture and community. Engage with locals, ask for recommendations, and be open to the unexpected.

I invite you to share your own experiences with tourist traps with me on Instagram and Linkedin. What tips do you have for finding authentic experiences, both in high-traffic areas and off the beaten path?

Share your stories and insights with me—I’d love to hear from you and continue the conversation about mindful travel, cultural exploration, and providing impeccable hospitality.

Image: DALL-E

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by David Klemt David Klemt No Comments

Program for Unique Holidays: July 2024

Program for Unique Holidays: July 2024

by David Klemt

"Think about things differently" neon sign

Do you want to stand out from from other restaurants and bars in your area? Change how you think about your July 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?

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 June 2024 holidays list, click here.

July 7: National Dive Bar Day

Alright, dive and neighborhood bar operators—this is the day to really ensure you and your bar team shine. Show the community why your bar is one of the cornerstones of the neighborhood. This is an opportunity to pull out the stops to impress your regulars and reinforce their love of your bar, and to attract new neighbors to hang out at your place on a regular basis.

July 8: National SCUD Day

Let’s clarify this at the start: SCUD stands for “Savor the Comic and Unplug the Drama.” The intent is for people to relax, unplug, and enjoy some humor, or at least take a light-hearted approach to life. Now, if you happen to feature stand-up comedy or operate a comedy club, this holiday should be all the way in your wheelhouse.

July 9: Cow Appreciation Day

The humble cow provides a lot for us. In addition to all manner of food items, cows even help us make some very smooth vodkas. Given how much cows give, operators can make entire prix fixe menus dedicated to them: from appetizer to dessert, the cow can fill out an entire meal, including drinks.

However, you can take another approach to this holiday. Vegan restaurants, for example, can highlight alternatives to cow products by creating dishes, drinks, and prix fixe menus.

July 11: National Mojito Day

Here’s an easy one. After you’ve ensured that your bar team makes an excellent Mojito, create an LTO menu. Feature the traditional build, a high-end version, and a creative variant or two.

July 13: Embrace Your Geekness Day

How the times have changed, for the better in this instance. Not long ago, “geek” was a real insult. Now, we can’t wait as individuals to geek out with others over our hobbies, interests, and other passions.

Does your bar have an overall theme that can be amplified for maximum geekiness? Do you feature board games, card games, or even video games? Is it common for clubs to meet up at your place? Have you noticed something that several of your patrons seem to enjoy talking about and geeking out over? Lean as far into that as you can and create an amazing experience.

July 15: National Be a Dork Day

Maybe you don’t like the word “geek.” Perhaps, to you, being a dork is more about being a bit (or very) silly, and leaning into being “uncool” (which is actually cool).

At any rate, if you’re not into the idea of Embrace Your Geekness Day—or you want to showcase the difference between geeks and dorks—National Be a Dork Day may work well for you.

July 21: National Junk Food Day

We all have differing ideas about junk food. For some, junk food refers to candy and dessert foods, specifically. To others, it’s anything that isn’t considered a healthy food.

The approach I recommend is giving people an excuse to eat and drink whatever they want on this day, or taking a cheat day. Further, you can certainly create a cocktail menu that captures the flavors of people’s favorite candy bars, candies, etc. Or, build over-the-top burgers, come up with a signature food challenge, or create a signature pizza that features compelling and unique toppings.

July 22: National Mango Day

Mango Margaritas, Mango Mezcalritas, mango IPA, mango ale, mango salsa, mango-habanero-glazed short ribs… If you can mango it, put it on an LTO menu.

July 27: National Take Your Pants for a Walk Day

Are you in a walkable city? This is really just a more interesting way of saying, “Walk to our bar/restaurant to earn your treat and time out with friends.”

July 31: National Avocado Day

Don’t be avoca-don’t—be an avoca-do. If your dishes and drinks can feature avocado in some way, have your kitchen and bar teams lean into it. For example, this would be a fantastic day to impress with a signature guacamole, made table-side.

Image: Ivan Bertolazzi on Pexels

KRG Hospitality marketing support. Restaurant. Bar. Cafe. Lounge. Hotel. Resort.

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by David Klemt David Klemt No Comments

Program for Unique Holidays: December 2023

Program for Unique Holidays: December 2023

by David Klemt

"Think about things differently" neon sign

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

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?

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 November 2023 holidays list, click here.

December 2: Global Fat Bike Day

For the unfamiliar, “fat bikes” are offroad bicycles with larger-than-normal tires. They’re fantastic for navigating sandy, snowy, muddy, and rocky terrain. Why? Because riders can run lower tire pressures to overcome obstacles smoothly.

Of course, plenty of riders also like to bop around town on fat bikes. So, whether you operate in a snowy area or you just happen to be in a market with a bunch of fat-bike riders, this would be the holiday to encourage them to group up and roll to your bar or restaurant.

December 4: National Dice Day

There’s a lot we can do with dice. One of the simplest ways to celebrate this holiday is to craft a food and/or beverage menu with numbered items/specials. Guests roll the dice and they’re served whatever they roll.

December 9: National Pastry Day

Hey, it’s holiday season—people are snacking a bit more than they would normally. Pastry, whether sweet or savory, is surely tempting and can make a holiday meal memorable.

December 11: National Noodle Ring Day

Do you know what a noodle ring is? More importantly, if you’re not the chef, does your kitchen team know about noodle rings?

They’re exactly what they sound like, and from everything I can find, they’re hundreds of years old. The premise is simple: a noodle dish is placed in a mold, then it’s baked. Bang—noodle ring.

Clearly, the noodle ring is a canvas for creativity and comfort food. So, see what your kitchen can come up with for National Noodle Ring Day, particularly if noodle dishes are already on your menu.

December 16: National Chocolate Covered Anything Day

Do you have food items that would taste and look great covered in chocolate? Guess what you should do on this day…

December 19: National Emo Day

You may have heard of the When We Were Young festival that took place in Las Vegas this year in October. The first version of this emo music festival was held in California in 2017.

A lot of people enjoy nostalgia, and during the holidays they get even more nostalgic. You can either hire a DJ for an emo set, hire a local emo band or two, or put together an emo playlist if you think it would draw guests through your doors.

December 20: Games Day

Board games, card games, tabletop games, video games, arcade games, bar games… If your bar or restaurant is set up for people to play games, design a promotion around it. After all, people are gathering for the holidays. Tempt them to gather at your place.

December 21: National Coquito Day

Ah, the Coquito. I’ll risk the pitchforks and say eggnog is not the move: the Coquito is the best winter cocktail. And the best version comes from bartender Giuseppe González.

You’ll find his recipe below, and you should give him a follow and thank him for being gracious enough to share it every year in December.

December 29: Tick Tock Day

No, not TikTok. This holiday is about accomplishing outstanding goals before the end of the year.

However, operators and their teams can take a different approach to this holiday. Are there any bottles you want to finally get rid of to make space in your inventory? Some rare drams guests can finish off? Create a promotion around them.

December 31: National Champagne Day

Sure, some people may know this day as New Year’s Eve. But really, this is National Champagne Day.

Luckily, it’s not difficult to create promotions around Champers. Whether focusing on dosage, grape varietals, vintage, color, or cocktails, there’s a lot to do with Champagne, and it’s not challenging to shine a spotlight on it on this day.

Image: Ivan Bertolazzi on Pexels

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by David Klemt David Klemt No Comments

Two New Review Platforms You Need to Know

Two New Review Platforms You Need to Know

by David Klemt

Person looking at restaurants on a map on their phone

Operators should be aware of two new review platforms that will help people discover their restaurant, bar, nightclub, or eatertainment venue.

At this point, we’re all aware of the mainstream review sites. Google, Yelp, OpenTable, Tripadvisor… Whether viewed as a helpful discovery tool or nuisance, each is a well-known player.

Well, there are new platforms on the scene. Importantly, each one is putting their own stamp on how people review venues and discover new experiences.

For example, I wrote about a new platform that rejects negative reviews a few weeks ago. It’s Good “believe[s] a restaurant rec from 1 trusted friend is more valuable than recs from 10,000 strangers.”

The founders, including Kevin Auerbach (former Apple), Meghan Raab (former Snap), director and photographer Mike Rosenthal, and songwriter and performer John Legend, have also eschewed the standard star rating.

So, that’s one modern-day take on the review platform. Now, two others.

Atmosfy

By now, most people are aware that video content outperforms static photography on social media. In other words, people engage more with video.

That’s not to say that static photography is obsolete. Rather, when it comes to discovery, video appears to be king at the moment.

Enter: Atmosfy.

This platform is all about video reviews. In fact, their website reads, “A video is worth a thousand pictures.” Restaurant, bar, nightlife, and eatertainment operators should see the value in users showing off their experiences via video.

In addition, users get access to a personal map. They can bookmark places they’ve been and want to go, and share their experiences so others can discover them.

And with $12 million in seed funding from Redpoint Ventures and other venture capital firms, operators can be certain this is no flash in the pan. In fact, Atmosfy supports in excess of one million businesses in over 10,000 cities in more than 150 countries.

Recs

First, the T-rex mascot of this platform is pretty cool.

Second, Recs takes a similar approach to It’s Good. However, the founders, Jesse Berns and Sean Conrad, have put their own spin on review platforms.

Like It’s Good, Recs sees far more value in recommendations from friends than strangers. Also, there’s no star rating system, nor will users find negative reviews.

 

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Another interesting detail: Users aren’t able to leave anonymous reviews. This is because Recs is built for recommendations among friends. Were a user to be anonymous, they wouldn’t be discoverable to friends, and therefore they’d be leaving recommendations to…nobody.

However, the most important element of Recs (arguably) is that users either recommend a place or they don’t.

So, in theory, if a business is blowing the guest experience, they won’t even be discoverable on Recs because nobody will be recommending it. At least to a specific core of users, that business won’t exist in their world on Recs.

As far as the Recs user experience, people save venues as “recommend” or “wanna go.” Users find their friends, share their lists, and discover new places to try by checking out their friends’ lists. A simple, straightforward way for people to eat, drink, and hang out together throughout a city.

Takeaway

Simply put, an operator needs to know how people are discovering their business. Operators need to meet guests where they are, which means online.

So, operators need to know about new platforms. When sending a post-visit survey—it doesn’t need to be lengthy—operators should ask how guests learned about their venue. This is one way to stay up to date on social media and review sites.

A comprehensive and effective marketing strategy includes review and discovery platforms. Certainly, operators ignore discovery tools at their peril.

Image: abillion on Unsplash

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by David Klemt David Klemt No Comments

Ontario Updates Employment Standards Act

Ontario Updates Employment Standards Act

by David Klemt

Daytime photo of the Toronto, Ontario, Canada, skyline

Yesterday, Ontario, Canada’s government tabled updates to the province’s Employment Standards Act meant largely to protect restaurant and hospitality workers.

These explicit protections are known as Bill 79, Working for Workers Four Act, 2023.

Interestingly and timely, the updates seem to be, at least in part, a direct response to technological developments.

For example, Bill 79 addresses digital payment apps and artificial intelligence. I’ll expand on that below.

These updates certainly appear to have been drawn up to protect restaurant workers specifically, and hospitality professionals overall.

An End to Unpaid Trial Shifts

One of the most significant updates addresses hours and pay.

It likely shouldn’t have to be said but, according to Ontario law, an employee must be paid for all the hours they work. This includes trial shifts.

Specifically, the new legislation expressly prohibits unpaid trial shifts.

Pooling Tips

Employers in Ontario are well within their rights to share in pooled tips. That is, if the employer is performing the same tasks as staff.

However, there’s now an update to this practice within the Employment Standards Act.

If any employer intends to share in a tip pool, they must make this clear and inform staff.

Speaking of Tips…

For the most part, digital payment platforms bring with them transaction fees. This includes fees for restaurant workers to get their tips.

“We’re seeing apps that are taking a cut every time…a worker accesses their tips, and that’s not acceptable,” says Piccini.

So, moving forward, employees who are paid tips via direct deposit will have more control. The updates to the Employment Standards Act now state that employees paid this way can choose where their tips will be deposited.

Deducting Wages

Per multiple studies, one in 20 diners has dined and dashed. Apparently, it has been common practice for some employers to deduct wages in response.

Personally, I think it’s ridiculous for any employers to pass a business loss on to their workers. That’s neither good leadership, ethical, or a healthy work culture. I’m not saying I’m surprised it happens; I’m disgusted that it still happens.

Now, the practice of penalizing employees monetarily for guests dining and dashing is prohibited specifically. Will that stop it from happening? Probably not, although perhaps it will happen much less moving forward.

This also includes language that makes it illegal to deduct pay from employees due to customer “gassing and dashing.” For anyone wondering, gas theft affected Ontario businesses to the tune of $3 million CAD in 2022.

Artificial Intelligence

Some employers, as many job hunters are aware, use artificial intelligence during the hiring process.

Now, these employers will have to disclose their use of AI in job listings. In theory, this update addresses privacy and data collection concerns.

Further, job listings will now have to include salary ranges. Also, employers are now prohibited from requiring work Canadian work experience in their job listings or on their application forms.

To review Bill 79 in its entirety, click here.

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by David Klemt David Klemt No Comments

SEO Tips from AI: Hotels & Camps

SEO Tips from AI: Hotels, Camps & Lodges

by David Klemt

OpenAI logo on smartphone screen, resting on laptop keyboard

After asking ChatGPT to suggest SEO improvements for restaurants, bars, and nightclubs, we’ve done the same for the hotel space.

This is part two of our AI-generated SEO tips series. In part one, we focus on restaurants, bars, nightclubs, and eatertainment venues.

For this part, we ask ChatGPT about improving SEO for boutique hotels, independently owned hotels, boutique and luxury campgrounds, and boutique and luxury lodges.

The boutique and luxury outdoor experiential market is heating up. So, I was curious about what keywords and advice ChatGPT would recommend to help operators in this space stand out and improve their odds for discover.

Personally, I found some of the keyword suggestions helpful. However, these are terms we at KRG Hospitality already know to include in our brand identity and marketing plans.

Simply put, I don’t think AI rivals what humans can create when it comes to brand identity and marketing. But, you should read the following and decide for yourself.

What specific terms are the best for boutique or independently owned hotels to use for SEO ranking?

For boutique or independently owned hotels, it’s important to focus on specific terms that highlight the unique aspects of your property and appeal to your target audience. Here are some specific terms that can be beneficial for SEO ranking:

  1. Hotel Name: Ensure that your hotel’s name is prominently featured in your website’s content, meta tags, and URLs to associate your website with your hotel’s name.
  2. Location-Based Keywords: Include location-specific keywords throughout your website to target customers searching for hotels in your area. For example, use terms like “boutique hotels in [location],” “[location] luxury accommodations,” or “independent hotels near [landmark].”
  3. Unique Selling Points: Highlight the unique features and qualities of your boutique hotel. Optimize your website with keywords that reflect these selling points, such as “boutique hotel with rooftop pool,” “intimate luxury accommodations,” or “designer boutique hotel in [location].”
  4. Style and Theme: If your boutique hotel has a specific style or theme, incorporate relevant keywords. For example, use terms like “vintage-inspired boutique hotel,” “modern boutique accommodations,” or “bohemian chic hotel in [location].”
  5. Amenities and Services: Emphasize the distinctive amenities and services your boutique hotel offers. Optimize your website with keywords related to these offerings, such as “boutique hotel with spa,” “gourmet dining experiences,” or “personalized concierge services.”
  6. Local Attractions and Experiences: If your boutique hotel is close to popular local attractions or offers unique experiences, mention them on your website. Optimize with keywords related to these attractions and experiences to attract visitors searching for accommodations near specific landmarks or seeking specific activities.
  7. Sustainable or Eco-Friendly: If your boutique hotel has a focus on sustainability or eco-friendliness, incorporate related keywords. Use terms like “eco-friendly accommodations,” “green boutique hotel,” or “sustainable practices in [location].”
  8. Reviews and Testimonials: Encourage guests to leave reviews on platforms like Google My Business, Yelp, or TripAdvisor. Positive reviews can boost your hotel’s visibility in search results and attract more bookings.
  9. Local SEO: Implement local SEO strategies by optimizing your website for local search results. This includes creating and optimizing your Google My Business profile, ensuring consistent NAP (Name, Address, Phone) information across directories, and getting listed in local online directories.
  10. Social Media Integration: Integrate social media into your SEO strategy by linking your website to your hotel’s social media profiles. Engage with your audience, share updates about your hotel, and encourage user-generated content through social media channels.

Remember to conduct keyword research specific to your boutique hotel’s offerings, style, and target audience. Regularly monitor your website’s performance, track keyword rankings, and adapt your SEO strategy as needed to improve your hotel’s online visibility and attract more guests.

What specific terms are the best for boutique and luxury campgrounds and lodges to use for SEO ranking?

For boutique and luxury campgrounds and lodges, it’s important to use specific terms that highlight the unique features, amenities, and experiences your property offers. Here are some specific terms that can be beneficial for SEO ranking:

  1. Campground or Lodge Name: Ensure that your property’s name is prominently featured in your website’s content, meta tags, and URLs to associate your website with your campground or lodge’s name.
  2. Location-Based Keywords: Include location-specific keywords throughout your website to target customers searching for campgrounds or lodges in your area. For example, use terms like “luxury campground in [location],” “[location] glamping site,” or “boutique lodge near [landmark].”
  3. Nature and Outdoor Keywords: Emphasize the natural beauty and outdoor experiences available at your campground or lodge. Optimize your website with keywords related to activities like hiking, fishing, wildlife watching, or stargazing. Use terms like “nature retreat,” “wilderness campground,” or “outdoor adventure in [location].”
  4. Unique Accommodations: If your campground or lodge offers unique accommodations like glamping tents, treehouses, or luxury cabins, highlight them on your website. Optimize with keywords like “glamping experience,” “luxury safari tents,” or “secluded treehouse retreat.”
  5. Amenities and Services: Showcase the luxurious amenities and services your campground or lodge provides. Optimize your website with keywords related to these offerings, such as “heated swimming pool,” “private chef services,” “spa and wellness facilities,” or “concierge services.”
  6. Sustainable or Eco-Friendly: If your campground or lodge follows sustainable practices or has an eco-friendly focus, incorporate related keywords. Use terms like “eco-conscious accommodations,” “sustainable camping,” or “green lodge in [location].”
  7. Nearby Attractions and Activities: Highlight popular nearby attractions, landmarks, or outdoor activities that guests can enjoy during their stay. Optimize with keywords related to these attractions and activities to attract visitors searching for accommodations near specific points of interest.
  8. Reviews and Testimonials: Encourage guests to leave reviews on platforms like Google My Business, Yelp, or TripAdvisor. Positive reviews can boost your campground or lodge’s visibility in search results and attract more bookings.
  9. Local SEO: Implement local SEO strategies by optimizing your website for local search results. This includes creating and optimizing your Google My Business profile, ensuring consistent NAP (Name, Address, Phone) information across directories, and getting listed in local online directories.
  10. Social Media Integration: Integrate social media into your SEO strategy by linking your website to your campground or lodge’s social media profiles. Engage with your audience, share updates about your property, and encourage user-generated content through social media channels.

Remember to conduct keyword research specific to your campground or lodge’s offerings, location, and target audience. Regularly monitor your website’s performance, track keyword rankings, and adapt your SEO strategy as needed to improve your property’s online visibility and attract more guests.

Takeaway

Just like AI-generated tips for SEO and discovery for restaurants and bars, there needs to be a human element for hotels, campgrounds, and lodges.

Relying on AI to improve search engine ranking isn’t, at this point, the best strategy. Perhaps one day that will change, but today isn’t that day.

The answers to my questions do provide some good tips regarding specific keywords and SEO practices. However, I wouldn’t suggest that operators trust AI to write their listings or the pages on their websites.

As it stands, in my opinion, AI just can’t match what people can do when it comes to marketing, branding, and discovery.

Image: Levart_Photographer on Unsplash

KRG Hospitality marketing support. Restaurant. Bar. Cafe. Lounge. Hotel. Resort.

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by David Klemt David Klemt No Comments

SEO Tips from AI: Restaurants & Bars

SEO Tips from AI: Restaurants, Bars & Nightclubs

by David Klemt

OpenAI ChatGPT logo against matching background

We aren’t fans of artificial intelligence “creating” marketing plans but can chatbots help improve SEO by offering keywords and making other suggestions?

Since AI tools such as ChatGPT can instantly crawl the depths of the Internet, we want to know if they can provide “insider” tips. Perhaps they have a leg up when it comes to parsing what helps and what hurts SEO ranking.

Restaurant, bar, and nightclub websites still matter. Consider the latest SevenRooms data in regards to how people discover new places to dine, drink, and socialize. Two-thirds of consumers rely on word-of-mouth recommendations from family and friends. A third use Google.

So, that should show how important it is to ensure your restaurant, bar, or nightclub is showing up right away when people are using search engines.

For the first part of our AI SEO series, I ask ChatGPT for suggestions for restaurants, bars, nightclubs, and eatertainment venues. In the follow-up article, I ask for assistance for hotels, campgrounds, and lodges.

Note: ChatGPT’s answers are provided below unedited. There’s some repetition, which is to be expected.

What specific terms are the best for restaurants to use for SEO ranking?

When it comes to specific terms for SEO ranking for restaurants, it’s important to consider keywords that are relevant to your restaurant’s niche, location, and target audience. Here are some specific terms that can be beneficial:

  1. Cuisine Keywords: Incorporate specific cuisine-related keywords that reflect the type of food your restaurant serves. For example, if you have an Italian restaurant, use terms like “Italian cuisine,” “authentic Italian dishes,” or “Italian restaurant [location].”
  2. Location-Based Keywords: Include location-specific keywords throughout your website to target customers searching for restaurants in your area. For instance, use terms like “best restaurants in [location],” “[location] dining,” or “[location] food scene.”
  3. Menu Items: Optimize your website for specific menu items that are popular or unique to your restaurant. Include descriptive keywords for these dishes, such as “signature seafood pasta,” “gourmet burger with truffle aioli,” or “vegan-friendly options.”
  4. Dining Experience Keywords: Highlight specific aspects of your restaurant’s dining experience. For example, if you have a rooftop terrace, mention it with keywords like “rooftop dining [location]” or “alfresco dining with city views.”
  5. Special Occasions: If your restaurant caters to special occasions like birthdays, anniversaries, or private events, optimize with related keywords. Use terms like “private event venue,” “birthday dinner reservations,” or “romantic anniversary restaurant.”
  6. Farm-to-Table or Sustainable Keywords: If your restaurant emphasizes locally sourced or sustainable ingredients, incorporate related keywords. Use terms like “farm-to-table dining,” “organic ingredients,” or “sustainable seafood.”
  7. Brunch or Breakfast Keywords: If your restaurant serves brunch or breakfast, optimize your website for keywords related to these meals. Use terms like “weekend brunch spot,” “best breakfast in [location],” or “bottomless mimosa brunch.”
  8. Online Ordering and Delivery: If your restaurant offers online ordering or food delivery services, optimize your website with related keywords. Use terms like “online food ordering,” “food delivery [location],” or “order food online.”
  9. Reviews and Testimonials: Encourage customers to leave reviews on platforms like Google My Business, Yelp, or TripAdvisor. Positive reviews can boost your restaurant’s visibility in search results and attract more customers.
  10. Local SEO: Implement local SEO strategies by optimizing your website for local search results. This includes creating and optimizing your Google My Business profile, ensuring consistent NAP (Name, Address, Phone) information across directories, and getting listed in local online directories.

Remember, it’s crucial to conduct keyword research specific to your restaurant’s offerings and target audience. Regularly monitor your website’s performance, track keyword rankings, and adapt your SEO strategy as needed to improve your restaurant’s online visibility and attract more diners.

What specific terms are the best for bars to use for SEO ranking?

When it comes to specific terms for SEO ranking for bars, it’s important to consider keywords that are relevant to your bar’s theme, location, and target audience. Here are some specific terms that can be beneficial:

  1. Bar Name: Ensure that your bar’s name is prominently featured in your website’s content, meta tags, and URLs to associate your website with your bar’s name.
  2. Location-Based Keywords: Include location-specific keywords throughout your website to target customers searching for bars in your area. For example, use terms like “best bars in [location],” “[location] nightlife,” or “bars near [landmark].”
  3. Bar Type or Theme: Incorporate specific keywords related to your bar’s type or theme. For instance, if you have a sports bar, use terms like “sports bar,” “sports pub,” or “sports viewing in [location].” If your bar has a specific theme like a speakeasy, mention keywords like “speakeasy bar,” “1920s-inspired bar,” or “craft cocktails in a hidden bar.”
  4. Drink Specialties: Highlight popular drinks or signature cocktails on your website and optimize the descriptions with relevant keywords. For example, use terms like “craft cocktails,” “mixology bar,” or “unique drink creations.”
  5. Happy Hour and Specials: If your bar offers happy hour specials or unique promotions, optimize your website with keywords related to these offerings. Use terms like “happy hour deals,” “drink specials,” or “late-night promotions.”
  6. Entertainment and Events: If your bar hosts live music, DJs, trivia nights, or other events, optimize your website with keywords related to these offerings. For instance, use terms like “live music bar,” “DJ nights,” or “weekly trivia at [bar name].”
  7. Reviews and Testimonials: Encourage customers to leave reviews on platforms like Google My Business, Yelp, or TripAdvisor. Positive reviews can boost your bar’s visibility in search results and attract more customers.
  8. Local SEO: Implement local SEO strategies by optimizing your website for local search results. This includes creating and optimizing your Google My Business profile, ensuring consistent NAP (Name, Address, Phone) information across directories, and getting listed in local online directories.
  9. Social Media Integration: Integrate social media into your SEO strategy by linking your website to your bar’s social media profiles. Engage with your audience, share updates about your bar, and encourage user-generated content through social media channels.
  10. Events Calendar: If your bar has a calendar of upcoming events, optimize it with keywords related to the types of events you host. For example, use terms like “live music schedule,” “karaoke nights,” or “themed parties at [bar name].”

Remember, it’s important to conduct keyword research specific to your bar’s offerings and target audience. Regularly monitor your website’s performance, track keyword rankings, and adapt your SEO strategy as needed to improve your bar’s online visibility and attract more customers.

What specific terms are the best for eatertainment venues similar to Topgolf or Punch Bowl Social to use for SEO ranking?

For eatertainment venues similar to Topgolf or Punch Bowl Social, it’s important to use specific terms that highlight the unique features, activities, and experiences your venue offers. Here are some specific terms that can be beneficial for SEO ranking:

  1. Venue Name: Ensure that your venue’s name is prominently featured in your website’s content, meta tags, and URLs to associate your website with your venue’s name.
  2. Location-Based Keywords: Include location-specific keywords throughout your website to target customers searching for similar venues in your area. For example, use terms like “Topgolf-style venue in [location],” “entertainment center in [location],” or “[location] eatertainment complex.”
  3. Interactive Games and Activities: Highlight the various interactive games and activities available at your venue. Optimize your website with keywords related to these offerings, such as “interactive golf games,” “arcade entertainment,” “bowling alley,” “virtual reality experiences,” or “multiplayer experiences.”
  4. Social Atmosphere: Emphasize the social and vibrant atmosphere of your venue. Use keywords that convey a fun and engaging experience, such as “socializing with friends,” “lively entertainment environment,” or “party and event destination.”
  5. Food and Drink: Highlight the dining and beverage options available at your eatertainment venue. Optimize your website with keywords related to your menu, such as “gourmet food and craft cocktails,” “full-service restaurant with a bar,” or “delicious bites and refreshing drinks.”
  6. Entertainment Variety: Showcase the variety of entertainment options available at your venue. Use keywords related to live performances, music, comedy shows, or special events. For example, “live music venue,” “comedy club,” or “special event space.”
  7. Private Events and Group Activities: If your venue caters to private events or offers group activities, optimize your website with keywords related to these offerings. Use terms like “private event venue,” “corporate team-building activities,” or “party room reservations.”
  8. Reviews and Testimonials: Encourage guests to leave reviews on platforms like Google My Business, Yelp, or TripAdvisor. Positive reviews can improve your venue’s visibility in search results and attract more visitors.
  9. Local SEO: Implement local SEO strategies by optimizing your website for local search results. This includes creating and optimizing your Google My Business profile, ensuring consistent NAP (Name, Address, Phone) information across directories, and getting listed in local online directories.
  10. Social Media Integration: Integrate social media into your SEO strategy by linking your website to your venue’s social media profiles. Engage with your audience, share updates about upcoming events or promotions, and encourage user-generated content through social media channels.

Remember to conduct keyword research specific to your eatertainment venue’s offerings, target audience, and location. Regularly monitor your website’s performance, track keyword rankings, and adapt your SEO strategy as needed to improve your venue’s online visibility and attract more visitors.

What specific terms are the best for nightclubs to use for SEO ranking?

When it comes to specific terms for SEO ranking for nightclubs, it’s crucial to consider keywords that are relevant to your nightclub’s niche, location, and target audience. Here are some specific terms that can be beneficial:

  1. Nightclub Name: Ensure that your nightclub’s name is prominently featured in your website’s content, meta tags, and URLs to associate your website with your nightclub’s name.
  2. Location-Based Keywords: Include location-specific keywords throughout your website to target customers searching for nightclubs in your area. For example, use terms like “nightclubs in [location],” “[location] nightlife,” or “dance clubs near [location].”
  3. Music Genre: Incorporate specific music genre-related keywords that reflect the type of music your nightclub specializes in. For instance, if you focus on electronic dance music, use terms like “EDM nightclub,” “electronic dance club,” or “techno parties in [location].” If you cater to hip-hop enthusiasts, include keywords like “hip-hop club,” “urban nightlife,” or “R&B parties in [location].”
  4. DJ Names: If your nightclub regularly hosts renowned DJs or has resident DJs, mention their names on your website. People often search for specific DJs, so including their names can increase your nightclub’s visibility.
  5. Event Themes: Highlight specific event themes or special nights that your nightclub offers. Optimize your website with keywords related to these offerings. For example, use terms like “themed parties,” “ladies’ night,” “Latin night,” or “80s retro dance party.”
  6. VIP Experience: If your nightclub offers VIP experiences, bottle service, or VIP table reservations, optimize your website with keywords related to these offerings. Use terms like “VIP nightclub experience,” “bottle service in [location],” or “VIP table bookings.”
  7. Dress Code: If your nightclub has a specific dress code policy, mention it on your website and optimize with relevant keywords like “nightclub dress code,” “dress to impress,” or “formal attire.”
  8. Reviews and Testimonials: Encourage customers to leave reviews on platforms like Google My Business, Yelp, or TripAdvisor. Positive reviews can improve your nightclub’s visibility in search results and attract more customers.
  9. Local SEO: Implement local SEO strategies by optimizing your website for local search results. This includes creating and optimizing your Google My Business profile, ensuring consistent NAP (Name, Address, Phone) information across directories, and getting listed in local online directories.
  10. Social Media Integration: Integrate social media into your SEO strategy by linking your website to your nightclub’s social media profiles. Engage with your audience, share updates about upcoming events, and encourage user-generated content through social media channels.

Remember to conduct keyword research specific to your nightclub’s offerings and target audience. Regularly monitor your website’s performance, track keyword rankings, and adapt your SEO strategy as needed to improve your nightclub’s online visibility and attract more attendees.

Takeaway

Operators need to pay attention to SEO ranking and discovery. They need to own their listings and make sure the information is accurate.

While AI can help with keywords and search terms, it doesn’t appear to be at the point where it can manage your SEO or marketing strategy. There are platforms like Toast, Restaurant365 and SevenRooms that can make marketing simpler. However, people still do the best job.

At KRG Hospitality, for instance, we create brand strategy plans. We also partner with restaurant marketing experts like Matt Plapp and America’s Best Restaurants.

Can AI streamline tasks? Yes, it can simplify and, in some cases, take over some tasks. Can it create effective, engaging marketing strategies that perform better than those created and executed by humans? In our experience and opinion, no.

I think the answers to my SEO questions above are helpful in terms of making suggestions that operators can use today to improve their odds of being discovered by guests. And I still don’t think operators can offload marketing responsibilities to AI.

Image: Mariia Shalabaieva on Unsplash

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Hand holding several credit cards
by David Klemt David Klemt No Comments

Credit Card Competition Act, Take Three

Credit Card Competition Act, Take Three

by David Klemt

Hand holding several credit cards

Here we go again: Bipartisan lawmakers in the House and Senate are taking another shot at the Credit Card Competition Act.

After the incredibly underwhelming progress of the Credit Card Competition Act of 2022, lawmakers are making another move. Now, a bipartisan effort is coalescing around the Credit Card Competition Act of…2023.

The “new” bill was introduced on June 7. On the Senate side, Senators Dick Durbin (D-IL) and Roger Marshall (R-KS) are trying to push the bill forward. In the House, Representatives Lance Gooden (R-TX) and Zoe Lofgren (D-CA) are driving the effort.

Roughly eight months ago it was revealed that 1,802 merchants drafted, signed, and sent a letter to the House and Senate. To summarize quickly, the merchants were pushing for the bill to become law. Another supporter of the CCCA? The National Restaurant Association, claiming that the bill could save merchants $11 billion a year in fees.

Of course, a lot is going on since the introduction of the CCCA of 2022. For one, it’s being widely reported that House Republicans are “revolting,” blocking bills and effectively paralyzing the chamber. There’s also the matter of the second indictment of a former president.

However, reporters who know far more than I about the inner workings of Congress seem optimistic. While there’s drama in the lower chamber, there are articles circulating that seem to think the CCCA of 2023 has enough bipartisan support to pass.

What’s the CCCA Again?

The Credit Card Competition Act of 2023 addresses what the bipartisan lawmakers pushing the bill forward refer to as “the Visa-Mastercard duopoly.”

As I and other journalists have reported previously, Visa and MasterCard in the crosshairs of this bill because of their control over credit card markets. The Merchants Payments Coalition (MPC) said last year that Visa and MasterCard control about 576 million credit cards. That equates to nearly 90 percent of credit and debit cards.

Looking at just the US a couple of years back, people lit up their credit and debit cards for $3.49 trillion in transactions in 2021. In the US, in 2021, the $3.49 trillion in transactions meant Visa and MasterCard collected $77.48 billion in swipe fees.

To combat what some lawmakers are calling a duopoly, the CCCA of 2023:

  • requires credit cards issued by banks with more than $100 billion in assets to be routed through at least two unaffiliated networks;
  • requires that the above banks create competition and allow smaller companies to compete in credit-card processing by offering a non-dominant network choice, also known as “dual routing”;
  • and block networks that are “owned, operated, or sponsored by a foreign state entity” to strengthen national security.

A press release with a link to a one-pager can be found on Rep. Lofgren’s website here.

If you support the CCCA, you can let your lawmakers know by clicking this link.

Image: Avery Evans on Unsplash

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Martinis at Bemelmans Bar inside the Carlyle hotel in New York City
by David Klemt David Klemt No Comments

Own Your Team’s Excellence

Own Your Team’s Excellence

by David Klemt

 

Martinis at Bemelmans Bar inside the Carlyle hotel in New York City

If you and your team are producing an incredible food or drink item, don’t just be proud—make it your signature and own it.

As Chef Brian Duffy says during his demos and speaking engagements, people can eat and drink anywhere. Further, with just a handful of major food suppliers operating throughout North America, operators are using much of the same ingredients.

With that in mind, then, it’s crucial that operators and their teams innovate. Doing so ensures that hospitality professionals are staying current on consumer demands and trends; constantly seeking be educated and share information; and making sure their business stands out from others.

A commitment to standing out can also motivate a team to elevate their techniques. In turn, they can truly “own” an item. Creating something incredible—and replicating it order after order consistently—can become a brand and team’s calling card.

Does your kitchen team turn out a fantastic signature burger? Has your business become known as the place for chicken wings because of your kitchen team?

Has your bar team perfected the Margarita? Are they so good at crafting Frozen Irish Coffees that your bar is on Glendalough Distillery‘s radar?

When you identify what your team is producing at an extraordinary level, you need to make certain you loudly own it.

A Real-world Example

For a high-level example of what I’m talking about, we can look at the Carlyle in New York City.

This landmark Rosewood Hotel is known for delivering peerless service. However, a venue inside this sophisticated resort is known for a specific item.

Bemelmans Bar, an escape from the hectic streets of New York, is known for the Martinis the bar team produces. (They’re also known for their red jackets, but those aren’t for sale.)

It may be a bold statement considering the level of bars and cocktails in the city, but Bemelmans Bar (and therefore the Carlyle) owns the Martini in NYC. In fact, the bar serves a staggering 1,000 Martinis a night. More often than not, the Martinis that cross the bar or leave the service well are dirty or extra dirty. This has been the case since at least 2021.

So famous are the Bemelmans’ Martinis that the Carlyle sells an at-home kit, yours for just $395. It’s their latest promotion, though, that makes it evident Bemelmans and the Carlyle are taking ownership of the Martini.

Guests of the Carlyle can now book their Martini Retreat, a two-day experience that centers around their signature cocktail. If, perhaps, you think that $400 is a bit steep for their Martini Box, prepare for true sticker shock. The Martini Retreat experience starts at $4,895 for two guests.

However, the package is rather impressive and encapsulates the Carlyle’s ownership of the Martini. The Carlyle Martini Retreat includes:

  • a two-night stay in a Madison Room or Premier Suite;
  • a Bemelmans Bar Martini Box;
  • enrollment in the Bemelmans Master Martini Class (valued at $495), a 45-minute experience during which guests learn how the bar team crafts multiple variations of vodka and gin Martinis, and their new Madeline’s Vesper cocktail;
  • a two-course Martini lunch at Dowling’s at The Carlyle; and
  • a curated list of where to go to try other great Martinis throughout NYC, put together by Dimitrios Michalopoulos, bar manager at Bemelmans.

Takeaway

So, am I suggesting that operators create an experience that costs thousands of dollars? Well…I mean, if your concept can succeed with such a promotion, absolutely. If doing so would resonate with enough guests to make it feasible and become a steady (and impressive) revenue stream, go for it.

However, what I’m really attempting to drive home here is the power of becoming known for even a single signature item. And, hey—your item, in your market, may be the Martini.

Owning an item means screaming from the rooftops and hills that it’s yours. That your team’s version is the one to have; the one people in the know have to have. Taking ownership of your team’s excellence translates to becoming a destination for it, to driving repeat visits once people have experienced it.

Of course, with that ownership comes the responsibility to elevate all other elements of your business. Every other item on the menu must be produced and served at the highest level. This ensures the entire guest experience wows the guests, and the signature item is essentially a driver and the cherry on top.

It’s time to review what your team produces so well that your brand owns it. Should this introspection yield no results, it’s then time to see what other operators are known for and discover what item or items you and your team can improve upon. What’s something that works with your brand that you feel confident you and your team can own?

There’s power, money, and long-term success in something on your menu. It’s time to uncover it and take ownership.

Image: The Carlyle

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Overhead view of chef slicing and chopping ingredients
by David Klemt David Klemt No Comments

The Art of the Preparation

The Art of the Preparation

by David Klemt

Overhead view of chef slicing and chopping ingredients

Chef Brian Duffy‘s take on preparation and its overall impact on the guest experience extends to every aspect of operations.

In one sentence during his 2023 National Restaurant Association Show in Chicago cooking demo, Chef Duffy sums up the power of the proper mindset.

“The art of the preparation creates the experience,” says Chef Duffy.

Now, he was preparing plant-based shrimp from New Wave Foods at the time. After preparing a pan, the revered chef was readying a pound of FABI Award-winning New Wave Shrimp for Duffified Shrimp Fried Rice.

 

View this post on Instagram

 

A post shared by Chef Brian Duffy (@chefbriduff)

When making this dish, Chef Duffy chops roughly half the New Wave Shrimp in half. He does so to enhance the dish’s texture, and therefore the guest experience. Additionally, Chef Duffy likes to toast basmati rice before adding it to the pan with the shrimp and vegetables.

Again, Chef Duffy shared his view on the guest experience when cutting animal-alternative shrimp (the product is made with sustainable seaweed and mung bean).

Preparation

Okay, so what does slicing or chopping shrimp have to do with the guest experience? It’s the attention to what others may consider a tiny detail. In fact, some may deem important details “optional.”

Whether front-of-house, back-of-house, or back office, everyone’s mindset matters. How one views their role and how they approach their responsibilities impacts every element of a restaurant, bar, nightclub, or hotel’s success.

Choosing to halve half the shrimp because it will deliver a better experience speaks volumes. It’s a commitment to perfect the “small” details so every guest walks away wanting to return.

If an operator wants to know if they have a chef or an executive chef, this is one way to tell. Is the chef teaching their brigade? Guiding them? Implementing policies around preparation? Or are they just punching the clock, making sure the rest of the team shows up, and sending out food that’s “good enough”?

Operators can apply versions of those questions to every role in the house, including their own. Is their pride in preparing every element of service and operation? Or is the team just muddling through each shift?

There are no Small Details

Interestingly, most guests likely won’t ever be aware of every detail operators and their teams get right. However, they will feel every choice each team member makes. They may not know precisely what goes right, but they take home with them that their visit was exceptional.

Pulling the threads tighter separates operators and their brands from one another. Guests can get a bite and a drink anywhere. They reward outstanding service and experiences with their time and money.

It’s a simple equation to understand: Operators want to create an army of loyal guests, guests expect exceptional experiences. The operators who deliver on guest expectations are rewarded with loyalty.

Chef Duffy isn’t “just” slicing shrimp. He’s not “just” toasting rice. Chef’s not “just” making “the world’s most perfect dippy egg.” In reality, he’s ensuring every decision he, his teams, and his clients make enhance the guest experience exponentially.

There are no small details. There are no small decisions. The art of the preparation, as Chef Duffy says, creates the experience. Indeed, preparation also separates the mediocre from the exceptional.

Image: Jonathan Borba on Unsplash

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