Opening a restaurant | KRG Hospitality

AI-generated image of a closeup of a loan application and pen

October 4, 2024by David Klemt David Klemt No Comments

The Banks Have it Wrong

The Banks Have it Wrong

by Doug Radkey

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

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

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

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

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

The Problem with Business Plan Templates

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

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

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

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

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

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

The Risks of Using Templates

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

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

The Dangers of AI-Generated Business Plans

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

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

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

Hospitality Industry Loans: Success and Failure Rates

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

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

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

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

The Need for More than a Business Plan

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

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

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

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

How Banks Can Improve Loan Success Rates

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

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

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

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

My Final Thoughts

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

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

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

Image: Canva

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August 20, 2024by David Klemt David Klemt No Comments

Why You Should Invest in Strategy

Why You Should Invest in Strategy and Foresight

by Doug Radkey

A surprising trend is emerging: Many aspiring entrepreneurs, restaurateurs, hoteliers, and seasoned business owners are hesitant to invest in two key elements.

Those elements? Strategy and foresight.

Despite understanding the importance of strategic direction, they often prioritize more immediate needs such as hiring talent, refining processes, and other operational aspects. However, these efforts, while crucial, can lack cohesion and effectiveness without a well-defined strategy guiding them.

Financing can be tight but that’s not often the issue. I’ve witnessed business owners eagerly spend $25,000 on new tables and chairs—when they weren’t necessary—while hesitating to invest the same amount in strategic planning that could yield a much higher return on investment.

It’s even more surprising to see new entrepreneurs pour over $1 million into launching a new bar or restaurant, only to balk at a $25,000, comprehensive strategy package.

This package, which includes a feasibility study, concept development playbook, brand strategy, marketing playbook, tech-stack playbook, financial playbook, and business strategy playbook, is often dismissed as “not in the budget.”

Yet, this investment in strategy is crucial for setting a strong foundation, and ensuring both short-term and long-term success. It’s like navigating without a map, or building a house without a blueprint; there may be some progress, but without a clear vision and destination, there’s a much greater risk of veering off course.

In terms of restaurants, bars, or hotels, a lack of strategy and foresight leads an owner to crumble their business to the ground.

This article explores the reasons why investing in strategy and foresight is not just a wise choice but an essential one for ensuring success and stability in an increasingly unpredictable industry.

What are Strategy and Foresight?

To overcome the laundry list of potential obstacles in this industry, you must prioritize strategic thinking, invest in the necessary resources and expertise, and cultivate a culture that values long-term planning.

No matter whether you’re starting, stabilizing, or scaling your brand, you need both strategy and foresight on your side.

Foresight

Foresight is the process of anticipating and envisioning potential future scenarios, trends, and developments. It involves analyzing emerging patterns, uncertainties, and possible disruptions to understand what the future might hold for you and your bar, restaurant, or hotel.

Foresight is not about predicting the future with certainty but about exploring a range of possibilities, and preparing for each of those scenarios.

Key Characteristics:

Explorative: Foresight explores multiple potential futures rather than focusing on a single expected outcome.
Long Term: Typically, a focus on the long-term implications of current trends and decisions.
Proactive: Foresight encourages proactive thinking and planning to anticipate changes, and prepare for various possibilities.
Qualitative and Quantitative Analysis: A combination of qualitative insights and quantitative data to create comprehensive future scenarios.

Strategy

Strategy, on the other hand, is the formulation and implementation of a plan to achieve specific goals and objectives. It involves making deliberate choices and decisions to allocate resources, navigate challenges, and capitalize on opportunities.

Strategy is focused on setting a clear direction, and determining the actions needed to reach desired outcomes.

Key Characteristics:

Directive: Strategy provides a clear roadmap and actionable steps to achieve goals.
Focused on Execution: The practical aspects of how to achieve desired outcomes, including resource allocation, prioritization, and performance measurement.
Short to Medium-Term: Strategy often addresses short to medium-term objectives, aligning current actions with long-term vision.
Decision Making: Strategic decisions based on the current understanding of the environment, resources, and capabilities.

Why You Should Integrate Strategy and Foresight

When you combine strategy with foresight you and your business can make more informed decisions. An informed decision is the consideration of both the present context and potential future developments.

Foresight provides valuable insights into emerging trends and uncertainties, helping your brand anticipate challenges and opportunities. This integration ensures that strategic decisions are based on a comprehensive understanding of possible future scenarios. Strategic decision reduce the risk of being caught off guard by unexpected changes.

Integrating foresight into the strategic planning process enhances your businesses adaptability and resilience. Foresight allows you to explore a range of possible futures, and develop contingency plans for different scenarios.

This proactive approach enables you and your team to respond quickly and effectively to changes in the external environment. Whether technological advancements, market shifts, or sociographic adjustments, you’ll be prepared to adapt quickly.

Innovation and Risk Management

Foresight provides a long-term vision, while strategy focuses on short-term actions. By integrating the two, your hospitality business can align its immediate goals and actions with its long-term vision. Doing so ensures consistency and coherence in decision-making, and helps you stay on track toward achieving your long-term objectives. It also helps bridge the gap between future aspirations and current realities, creating a more cohesive and actionable playbook.

When you act with foresight, you encourage the exploration of new ideas and potential innovations by identifying emerging trends and disruptions. Integrating foresight with strategy enables your business to pursue innovative solutions proactively, and capitalize on emerging opportunities. This combination fosters a culture of innovation, and encourages you and your team to think beyond the present, seeking ways to stay ahead of the competition continually.

Foresight helps identify potential risks and uncertainties that may impact your business in the future. Incorporate these insights into the strategic planning process so you can develop strategies for your business that mitigate or manage risks.

A proactive approach to risk management reduces vulnerability, and enhances organizational stability.

Foresight and Strategy Sample for Starting a Hospitality Brand

Strategy

Feasibility Study: Assess market demand, demographics, competition, and potential profitability. This foundational step provides a realistic view of the business opportunity and potential challenges.

Brand and Concept Development: Define the unique selling proposition (USP), story, target market, and brand identity. Develop a detailed playbook outlining the concept, including menu/room design, service style, and intended ambiance.

Site Selection and Design: Choose a location based on the completed feasibility study. Design the space to reflect the brand’s identity and concept with a reputable designer who follows the vision.

Foresight

Market Trends Analysis: Identify emerging food and beverage trends, changes in consumer preferences, and demographic shifts. Use this information to shape the concept and offerings.

Regulatory Landscape: Anticipate potential changes in regulations related to health, safety, and licensing. Prepare to adapt to these changes to ensure compliance and minimize disruptions.

Technological Integration: Explore advancements in restaurant and hotel technology. Plan for their implementation by developing a tech-stack that enhances the guest experience, and operational efficiency.

Foresight and Strategy Sample for Stabilizing a Hospitality Brand

Strategy

Operational Efficiency: Streamline processes, optimize inventory management, and implement cost-control measures. Review financial performance regularly to identify areas for improvement.

Marketing and Branding: Develop a cohesive marketing strategy to build brand awareness and loyalty. Leverage social media, local events, and partnerships to attract and retain guests.

Guest Experience: Standardize service protocols, and enhance staff training. Focus on delivering consistent and high-quality experiences to build a loyal guest base.

Foresight

Scenario Planning: Develop contingency plans for potential disruptions, such as economic downturns, supply chain issues, or changes in consumer behavior. This preparedness helps the business remain resilient in the face of uncertainty.

Competitive Analysis: Monitor competitors’ strategies and market positioning continuously. Adapt and differentiate the brand’s offerings to maintain a competitive edge.

Guest Feedback and Data Analysis: Collect and analyze guest feedback to identify emerging preferences, and areas for improvement. Use this data to refine offerings and enhance guest satisfaction.

Foresight and Strategy Sample for Scaling a Hospitality Brand

Strategy

Expansion Planning: Evaluate potential markets for expansion, considering factors such as demographics, market demand, and competition with a feasibility study. Develop a scalable business model and expansion strategy.

Brand Consistency: Develop and maintain brand standards, and ensure consistency across all locations. Implement standardized operating procedures and quality control measures.

Partnerships and Collaborations: Explore strategic partnerships with suppliers, local businesses and community partners, or other brands to enhance offerings and expand reach.

Foresight

Future Market Opportunities: Identify emerging markets and growth opportunities, such as new geographic regions, niche markets, or evolving guest segments. Plan to enter these markets with tailored offerings.

Innovation and Adaptation: Foster a culture of innovation by encouraging the exploration of new ideas, products, and services. Stay ahead of industry trends and incorporate innovative solutions to differentiate the brand.

Risk Management: Assess potential risks associated with scaling, such as supply chain complexities, cultural differences, or operational challenges. Develop an outlook to mitigate these risks and ensure smooth expansion.

In Summary

The integration of strategy and foresight into your hospitality business is not a luxury but a non-negotiable.

Investing in these areas will provide your business with the tools and insights needed to navigate uncertainties, anticipate market shifts, and make informed decisions that align with your goals. Far from being mere expense lines, strategy and foresight are foundational elements that drive growth, innovation, and resilience.

Prioritize strategic planning and future-oriented thinking so your business can create a cohesive and actionable roadmap that bridges the gap between current realities and future aspirations. This investment enables you to address potential challenges, capitalize on emerging opportunities, and maintain a competitive edge in a proactive manner.

Whether starting a new venture, stabilizing your operations, or scaling your business to new heights, the integration of strategy and foresight empowers you to outperform the competition in this ever-changing environment.

Ultimately, the value of investing in strategy and foresight goes beyond immediate financial returns. This integration cultivates a culture of continuous improvement, adaptability, and forward thinking, ensuring that your business is not only prepared for the future but also positioned to shape it.

As such, you should view these investments not as costs but as crucial assets that contribute to the success and sustainability of your brand.

Image: Canva

The John A. Roebling Suspension Bridge over the Ohio River, heading toward Over-the-Rhine in Cincinnati, Ohio

July 5, 2024by David Klemt David Klemt No Comments

Cheers to the Flyover Conference!

Cheers to the Flyover Conference and Cincy!

by David Klemt

Just pretend the temporary SkyStar Wheel isn’t in this picture.

The successful and exciting launch of the Flyover Conference makes it clear that co-founders Sarah Engstrand and Greg Newman are onto something big.

Big, yet intimate. There’s a real feeling of community when a small-but-driven group gathers with purpose. That’s exactly what Flyover embodies.

Now, I know some people who live between the east and west coasts in the US find the term “flyover” irritating, if not outright offensive. As someone born and raised in the Midwest, I understand the frustration. However, I can assure anyone raising a skeptical eyebrow or frowning at the name of the conference that it isn’t meant as a pejorative.

Rather, Engstrand and Newman are giving a cheeky middle finger (likely two, really) to those who dismiss “secondary” and “tertiary” markets. In fact, their intention is to shine a spotlight on—and serve—cities that don’t receive the same attention as “primary” markets.

By primary, I think you know main culprits: New York, Los Angeles, Chicago, Boston, and Miami. In contrast, Las Vegas, Phoenix, Cincinnati, and Detroit carry the “secondary” label (as do many other cities).

So, a core element of the conference is featuring speakers who have, up until now, mostly spoken at highly visible trade shows that take place in major host cities. For example, the National Restaurant Association in Chicago.

For the inaugural Flyover, the co-founders put in the work to provide Cincinnati with a powerhouse lineup of hospitality industry speakers. Additionally, this year’s F&B sponsors delivered an awesome array of sips and bites.

Killer Kickoff Keynote

Truly, Flyover’s mission is to deliver maximum impact over the course of just two days. The 2024 speaker lineup serves as a testament to their dedication.

So, too, is how the 2024 show utilized the two speaker stages, provided by Rhinegeist Brewery. Flyover attendees and speakers were close to one another, not separated by the vast expanse of a ballroom or elevation of a platform.

David Kaplan, CEO of Gin & Luck, the parent company of the world’s first cocktail bar chain (for lack of a better term, really) kicked off the event. Perhaps multi-location craft concept is a better phrase to explain Death & Co. in five words or less.

During his informative and inspiring keynote, he detailed he and his team’s approach to entrepreneurship. As Kaplan explains, when someone understands their purpose (why), they come to an understanding that helps develop their process (how). In turn, that gives an entrepreneur an understanding of the outcome they’re working toward, or their “what.”

I’ll dive much deeper into his keynote in a future article, because Kaplan’s approach goes much further than why, how, and what. In fact, in keeping with his status as one of the most transparent people in hospitality, Kaplan shares his personal core values, along with those of Death & Co.

Engaging Education

Bartender-cum-licensed psychotherapist (and soon-to-be organizational psychologist) Laura Louise Green took on a topic afflicting all of hospitality: burnout. The founder of Healthy Pour, Green explained that burnout is not only different than stress, it’s certainly not a sign of weakness to take the time to address it.

One of my favorites, Chef Brian Duffy, took a different approach to the topic of menus. Instead of reviewing a handful of submissions, Duffy took questions and addressed issues with food purveyors directly in a frank and open discussion.

Encouraging operators to take greater risks, Michael Tipps, co-founder of Maverick Theory, drove home a compelling point. Oftentimes, operators are fearless when developing their concepts. However, something curious often happens when it’s time to welcome the public into the space: second guessing, and blunting the sharpness of the original vision.

Oh, and I shared the KRG Hospitality approach to systems, starting, stabilizing, and scaling, my second time every presenting at a conference. Most people assume that because I host a podcast I’m comfortable talking to anyone, anywhere. That’s mostly true. However, I, like millions of other people, find public speaking anxiety-inducing. So, a huge thanks to the Flyover team, fellow speakers, and mostly the attendees for setting me at ease.

The above are but a handful of the education sessions that Flyover provided for attendees. Other topics ranged from the need for fully realized non-alcohol bar programs, building events in house, and operators handling their own PR campaigns, to leadership skills and leveraging the power of an effective door team.

Bang for Buck

Anyone who has attended one of the big hospitality industry conferences has probably been subjected to the experience below.

You file into a session featuring a topic of particular interest to you and your business. Even better, the speaker is someone you’re excited to see and hear. The presentation ends and…awkward silence. Almost everyone is too afraid to ask a question that they feel may make them look “stupid,” or like they’re not a good operator. Finally, someone asks a question, and that leads to a few more questions.

Unfortunately, the presentation was 45 to 50 minutes long, and with the awkward pause after its conclusion, there are barely ten minutes left for the speaker to answer questions. When they’re shooed off the stage, they’re swarmed in the hallway. You think they may be overwhelmed, you don’t want to add to that or inconvenience someone you admire, and you never get to meet them, ask them an important question, and exchange business cards.

That’s not an indictment of the large, more mainstream conferences. It’s just how it is when you pack dozens upon dozens of speakers, and thousands of attendees, into a conference hall. Further, schedules tend to be so loaded in order to attract attendees and boost ticket sales that people are forced to make difficult choices and miss out on some awesome sessions.

In contrast, Flyover intends to limit their ticket sales. And while there will always be a choice to make at a conference, they seek to mitigate that prevalent issue. Was this year’s show perfect? No, there were growing pains, as expected. Will this team learn and improve the show to maximize the impact for attendees? I have every confidence that the answer is a resounding “yes.”

Future Flyovers

I have to say, I’m deeply interested in the future of Flyover Conference. In fact, schedule permitting, I would attend even if I weren’t asked to speak at future shows.

It was an honor to be part of something of so impactful.

The entire point of this industry—hospitality—can sometimes fall to the wayside at conferences, trade shows, and expos. Another way of saying that is that while we all speak the same language, we often forget to take the time to connect with one another.

While there’s work to do, Flyover addresses this issue. The show is set up so that attendees, speakers, and sponsors are sharing the same spaces; there’s an actual sense of community. When it comes the host city, there’s a real sense of place, and that’s important.

Speaking of the host city…the next Flyover will take place in a city I mentioned at the top of this article. The most populous city in Michigan, Detroit—Motor City itself—will host the second Flyover Conference. Looking forward to it, Hockeytown.

Be sure to connect with Flyover for updates and announcements.

Cheers!

Image: Jake Blucker on Unsplash

June 25, 2024by krghospitality krghospitality No Comments

The Power of an ImpactMAP™

The Power of an ImpactMAP™

by Doug Radkey

Let’s be honest, the line between success and failure often hinges on the ability to act decisively and act with purpose.

In this article, we’re going to explore two areas of your hospitality business that are under your control: creating a plan, and taking action.

Understanding the Risk of Inaction

The concept surrounding the Risk of Inaction—arguably a new form of ROI—captures the potential losses businesses face when they fail to take strategic actions.

Inaction in the hospitality industry can manifest in various harmful ways. Inaction can also stem from multiple sources: fear of change, lack of resources, or simply underestimating the competition.

Regardless of the manifestation or cause, the consequences are usually the same: stagnation, decline, and, ultimately, a shuttered business.

Let’s put this into context by taking a look at a sample of both a restaurant and a hotel business.

Failure to Innovate

If a restaurant does not act to continuously re-engineer its menu, it risks diminishing profits, providing a low-level guest experience, and mismanaging inventory. Without regular strategic updates, the menu may fail to reflect current culinary trends and guest preferences, which can lead to a decrease in interest and satisfaction.

Additionally, sticking with a static menu can prevent the restaurant from optimizing ingredient use, productivity, and cost-efficiency.

At the end of the day, this lack of adaptation and innovation will result in diminishing sales and profitability, making it difficult for the restaurant to sustain its operations.

Failure to Update Systems

If a hotel on the other hand decides to not use a modern and fully integrated Property Management System (PMS), it risks operating inefficiently and falling behind in today’s technology-driven hospitality environment.

A non-existent, outdated, or fragmented PMS can lead to significant operational issues, such as slow check-in and check-out processes, errors in room availability and booking management, and ineffective communication between different departments. That’s just to name a few crucial issues.

This inefficiency can impact guest experiences negatively, leading to dissatisfaction and potentially harming the hotel’s reputation.

Furthermore, without a modern PMS, a hotel may struggle with data management, limiting its ability to effectively analyze performance metrics, forecast demand, and implement dynamic pricing strategies. These disadvantages will result in lost revenue and reduced competitiveness in a space where guest expectations and operational efficiency are increasingly driven by technological advancements.

In each example above, the risk of inaction leads to missed opportunities and underperformance.

The Power of an ImpactMAP™

To combat the risks associated with inaction, your hospitality business can benefit significantly from developing an ImpactMAP™.

This strategic tool can help you identify where you currently stand, define where you want to go, and outline the steps required to get there, thereby helping you create not only strategic clarity, but drive and accountability.

The Assessment

To create an ImpactMAP™ and to take action immediately, you need to first assess your operations.

An assessment of your hospitality business is a comprehensive evaluation process aimed at analyzing various aspects of your business to identify strengths, weaknesses, and areas for improvement or opportunity. The goal is to gather actionable insights that can help optimize operations, enhance guest experiences, and massively improve your profitability.

The assessment should involve on-site observations, staff interviews, and a deep dive into the following eight categories, culminating in a detailed report that provides recommendations and a strategic plan for future growth and sustainability.

For each of the eight categories, consider a 3x matrix with three responses to the following questions:

Where are we now?
Where do we want to go?
What resources do we need?
What’s holding us back?

Then, create a SMART (Specific, Measurable, Achievable, Relevant, Timely) goal for each response in your “Where We Want to Go” list.

What are the eight assessment categories?

1. Brand Strategy

Assessment: Review your core values, story, messaging, philosophy, design, and reputation.

Opportunity: Enhance brand alignment across all touchpoints to ensure consistency while refining your brand messaging to better connect with targeted guest profiles.

2. Internal Programming

Assessment: Review your pricing strategy, guest experiences, property / menu / room management systems and programs.

Opportunity: Optimize your offerings based on guest preference data and a profitability analysis, along with potential upgrades to your amenities to enhance guest satisfaction and to compete with today’s market standards. In summary, implement efficiencies to improve guest experiences and operational workflow with a focus on your internal programming.

3. Marketing Plans

Assessment: Review guest profiles, guest journey maps, guest databases, awareness and retention strategies, and your digital marketing portfolio.

Opportunity: Integrate advanced digital marketing techniques to increase reach and engagement while developing targeted promotions and partnerships, and by leveraging data analytics to tailor marketing efforts more precisely to guest behaviors and trends.

4. Tech-Stack Plans

Assessment: Review guest facing technology, POS / PMS system, integrations, and marketing.

Opportunity: Identify current technology gaps and plan for a strategic integration of systems that enhance guest experiences while streamlining operations.

5. Standard Operating Procedures

Assessment: Review of all internal and external systems, plus training programs and SOPs.

Opportunity: Ensuring that all staff are clear on their roles and responsibilities, which enhances overall service quality through the development of standardized procedures that ensure consistency and efficiency across the business. Implement feedback systems to continually refine and improve SOPs based on real-time challenges and successes.

6. People and Culture

Assessment: Review of staff experiences, onboarding, productivity, growth, and retainment.

Opportunity: Strengthen employee engagement through improved communication and support systems. Foster a culture of innovation and openness in which employees feel valued and motivated. Develop leadership from within to enhance management effectiveness and succession planning.

7. Financial Health

Assessment: Review of all financials, including Revenue, COGs, KPIs, Expenses, Debt, and Profit.

Opportunity: Identify cost-saving opportunities without compromising service quality. Explore new revenue streams that align with your brand values and market opportunities. Implement more rigorous financial tracking and forecasting tools (such as technology) to better predict financial trends and react proactively.

8. Mindset

Assessment: Daily habits, work / life balance, decisiveness, communications, and growth-based thinking.

Opportunity: Develop a mindset of continuous improvement among all staff levels (starting with yourself) to foster an environment of excellence. Cultivate resilience by planning for crisis management and business continuity. Promote a guest-centric approach, aligning all business decisions with guest satisfaction and personal development outcomes.

Creating the ImpactMAP™

By following the above 3x strategy for each category, you will have created 24 SMART objectives that will be the foundation of your ImpactMAP™ to move your business forward over the next one to six to 12 months.

Importance of SMART Objectives

What does SMART mean and how does it work?

Specific, Clarity, and Focus: SMART objectives provide clear and concise goals that everyone in your business can understand and rally behind. This clarity helps to focus efforts and resources on what’s most important.
Measurability and Tracking: By setting measurable goals, your business can track progress and make data-driven decisions. This measurability allows for adjustments to be made in strategies or tactics to ensure the objectives are met.
Achievability: Goals that are achievable motivate staff. Setting impossible goals can lead to frustration and disengagement, whereas achievable objectives encourage team effort and commitment.
Relevance: Ensuring that each objective is relevant to the broader business goals ensures that every effort made contributes to the overall success of your brand.
Timeliness: Incorporating a timeframe provides urgency, a deadline, and accountability, which can help prioritize daily tasks and long-term plans.

However, you shouldn’t try to accomplish all 24 objectives at the same time. Once you’ve set your 24 impactful objectives, prioritizing them is crucial to stabilize your hospitality business and aim for scalable growth.

Best Practices for Prioritizing Objectives

Assess Business Needs: Start by conducting that thorough assessment of your business to identify key areas that need improvement.
Impact Analysis: Evaluate the potential impact of each objective. Prioritize objectives that offer the greatest benefits in terms of guest satisfaction, revenue growth, and operational efficiency.
Resource Availability: Consider the resources available, including budget, people, and technology. Prioritize objectives that align with current resources or where adjustments can be made to accommodate necessary changes.
Quick Wins: Identify objectives that can be achieved quickly and with minimal disruption to your ongoing operations. These quick wins can boost morale and provide visible improvements that justify further investments in other areas.
Strategic Importance: Some objectives, while not providing immediate benefits, are crucial for long-term success. Prioritize these based on their strategic importance to the business’s future.
Stakeholder Input: Engage with various stakeholders, including management, staff, and guests, to gain insights into which objectives they feel are most critical. This can help in aligning the goals with the needs and expectations of those most affected by the changes.
Balanced Scorecard: Use a balanced scorecard approach to ensure that objectives across different areas such as guest services, internal processes, financial performance, and learning and growth are all being addressed.
Iterative Review: Regularly review the priorities as situations and business dynamics evolve. What may be a priority today might change based on market conditions or internal business changes over the next three to six months.

Once you have your objectives prioritized, it’s time to assign or delegate them as needed and have those assignees (including yourself) take ownership of the objectives with their signature to add another level of accountability.

Implementing the ImpactMAP™

Before starting, ask yourself one final question: What will happen if we don’t take action?

Be detailed and mindful of what the short-term and long-term consequences might be if you don’t act.

Effective implementation of an ImpactMAP™ requires knowledge of these consequences, along with a commitment from all levels of your business. It starts with comprehensive training sessions followed by regular review meetings, which are both essential to assess progress, address challenges, and refine strategies as needed.

Take a SMART-ER approach, which is where you Evaluate and Re-adjust the SMART objectives halfway through the timeline you’ve set.

Conclusion

Risk of inaction is a silent threat that can undermine any business, particularly in this dynamic industry.

Adopting an ImpactMAP™ and making a commitment to take massive action allows you to manage your operations proactively, adapt to changing market conditions, and set a course for sustainable success.

This strategic approach not only mitigates risks but also empowers your hospitality business to thrive in a competitive landscape—but it starts with you and your mindset toward taking action.

Image: KRG Hospitality

A street-art-style image of a thought bubble coming from a chef

June 19, 2024by David Klemt David Klemt No Comments

Concept Development: Idea to Execution

Restaurant Concept Development: From Idea to Execution

by Nathen Dubé

A big light bulb means a great, big idea is coming.

Creating a restaurant concept is an intricate process that requires blending creativity, an understanding of a given market, and business acumen.

From the initial idea to the grand opening, each step is crucial in ensuring that the restaurant not only stands out in a competitive market but also delivers a memorable dining experience.

In this comprehensive guide, we’ll explore the essential stages of restaurant concept development, providing insights and strategies to turn your vision into a thriving reality.

1. Ideation: Craft Your Vision

The journey of developing a restaurant concept begins with a compelling idea. This idea should reflect your passion, culinary expertise, and a clear understanding of your target market.

Below, how to start down the path from vision to reality.

Identify Your Niche

A deep understanding of the niche you want to fill in the market is critical. Are you aiming for a high-end fine dining experience, a casual eatery, a fast-casual concept, or a food truck?

Research current market trends, consumer preferences, and gaps in the market to find your unique angle.

Define Your Concept

Your concept should be a detailed description of your restaurant’s identity. This includes the cuisine, service style, ambiance, target audience, and overall theme.

For example, are you creating a rustic Italian trattoria, a chic urban sushi bar, or a family-friendly diner?

Create a Vision Statement

A vision statement is a concise description of what you want your restaurant to achieve, and how it will stand out. This statement will guide your decisions throughout the development process.

2. Market Research: Understanding the Landscape

Thorough market research is essential to validate your concept and refine your strategy. This step involves analyzing the competitive landscape, understanding customer preferences, and identifying potential challenges.

Analyze Competitors

Visit and analyze restaurants that could be considered competitors. Evaluate their strengths and weaknesses, menu offerings, pricing strategies, and guest experience.

Understanding what works and what doesn’t can help you position your restaurant effectively.

Understand Your Target Audience

Identify your target demographic in terms of age, income, lifestyle, and dining preferences. Conduct surveys, focus groups, and interviews to gather insights into what will attract and resonate with your guests.

Evaluate Location Options

Location is a critical factor in the success of a restaurant. Analyze different locations based on foot traffic, accessibility, visibility, and proximity to competitors. Consider the demographics of the area to ensure they align with your target audience.

3. Business Planning: Laying the Foundation

A well-crafted business plan is essential for securing funding and guiding the execution of your restaurant concept. It should outline your strategy, financial projections, and operational plan.

Executive Summary

Provide a concise overview of your restaurant concept, including the vision statement, target market, and unique selling proposition (USP).

Market Analysis

Summarize your market research, including competitor analysis, target audience insights, and location evaluation.

Marketing Strategy

Detail how you plan to attract and retain customers. This includes branding, advertising, promotions, and social media strategies.

Operational Plan

Describe your restaurant’s daily operations, including staff roles and responsibilities, supplier relationships, and inventory management.

Financial Projections

Provide detailed financial projections, including startup costs, operating expenses, revenue forecasts, and break-even analysis. This section should also include funding requirements, and potential sources of financing.

4. Branding and Design: Creating an Identity

Your restaurant’s brand and design play a crucial role in attracting guests, and creating a memorable dining experience.

This step involves developing your brand identity, designing the physical space, and creating marketing materials.

Develop Your Brand Identity

Your brand identity includes your restaurant’s name, logo, color scheme, typography, and overall visual style. Ensure that it reflects your concept and appeals to your target audience.

Design the Interior and Exterior

Work with architects and interior designers to create a space that reflects your concept and enhances the dining experience.

Consider factors such as layout, seating arrangements, lighting, and décor. The exterior should be inviting and reflect the brand’s identity.

Create Marketing Materials

Develop a website, social media profiles, menus, and promotional materials that align with your brand. High-quality photography and compelling content are essential for attracting customers and creating a strong online presence.

5. Menu Development: Crafting Culinary Offerings

The menu is the heart of your restaurant concept. It should reflect your vision, appeal to your target audience, and be feasible to execute consistently.

Design a Balanced Menu

Create a menu that offers a variety of dishes that reflect your concept. Ensure a balance of flavors, textures, and price points.

Consider dietary restrictions and preferences to cater to a diverse customer base.

Cost and Pricing

Accurately cost each menu item to ensure profitability. Consider ingredient costs, portion sizes, and preparation time.

Set prices that reflect the value of your offerings while remaining competitive in the market.

Test and Refine

Conduct taste tests and gather feedback from potential guests, industry professionals, and staff. Use this feedback to refine your dishes and ensure they meet your quality standards.

6. Staffing and Training: Building Your Team

Your staff is a crucial component of your restaurant’s success. Hiring the right team and providing comprehensive training ensures a consistent and high-quality dining experience.

Hire Skilled Staff

Recruit chefs, servers, bartenders, and other staff who have the skills and experience needed to execute your concept. Look for individuals who are passionate about your vision and have a strong work ethic.

Develop Training Programs

Create comprehensive training programs that cover everything from food preparation and presentation to customer service and safety protocols. Regular training sessions and evaluations help maintain high standards.

Foster a Positive Culture

Encourage a positive and collaborative work environment. Recognize and reward outstanding performance, and address issues promptly to maintain morale and productivity.

7. Marketing and Promotion: Attracting Customers

Effective marketing and promotion are essential for attracting customers and building a loyal guest base. This involves both online and offline strategies to generate buzz and drive traffic.

Leverage Social Media

Use social media platforms to showcase your restaurant’s unique offerings, engage with potential customers, and build a community. Share high-quality photos, behind-the-scenes content, and promotions to attract and retain followers.

Collaborate with Influencers

Partner with local influencers and food bloggers to reach a wider audience. Inviting them to dine at your restaurant and share their experiences can generate valuable word-of-mouth promotion.

Host Events and Promotions

Organize events such as soft openings, tastings, and special promotions to generate excitement and attract customers.

Consider loyalty programs and discounts to encourage repeat visits.

Public Relations

Reach out to local media outlets and food critics to secure coverage of your restaurant. Positive reviews and features can significantly boost your visibility and credibility.

8. Execution: Bringing Your Concept to Life

The final step is the execution of your concept.

This involves managing the logistics of opening day, ensuring a smooth operation, and continually refining your approach based on feedback and performance.

Prepare for Opening Day

Ensure that all permits and licenses are in place, staff are trained, and inventory is stocked.

Conduct a soft opening to test your operations and make any necessary adjustments.

Monitor Operations

Regularly evaluate your restaurant’s performance, including customer feedback, financial metrics, and operational efficiency. Use this data to identify areas for improvement and implement changes as needed.

Stay Adaptable

The restaurant industry is dynamic, and trends can change quickly. Stay informed about industry developments and be willing to adapt your concept to meet evolving customer preferences and market conditions.

Conclusion

Restaurant concept development is a multifaceted process that requires careful planning, creativity, and execution.

Following these steps to guide your vision and transform it into a brick-and-mortar reality. Doing so will give you the strongest chance to create a restaurant that stands out in the market, and that delivers a memorable dining experience.

Remember, the key to success lies in a clear vision, thorough research, strategic planning, and a commitment to excellence.

Embrace the journey, learn from each step, and watch your restaurant concept come to life, delighting diners and making a lasting impact in the culinary world.

Image: Shutterstock. Disclaimer: This image was generated by an Artificial Intelligence (AI) system.

AI-generated diorama-style image of woman behind bar using a tablet

May 10, 2024by David Klemt David Klemt No Comments

3 Operators Address Surviving a Downturn

3 Wise Operators Share Tips for Surviving a Downturn

by David Klemt

I have to say, AI-generated, diorama-style images look rad.

During a standout session from the 2024 Bar & Restaurant Expo, a panel of three successful and highly respected bar operators answered an important question.

This year, BRE brought together an operator supergroup: Erick Castro, Nectaly Mendoza, and Travis Tober. The trio drove home the importance of becoming a student of the industry; being curious about business; understanding the need to nail the fundamentals; and operators knowing their numbers.

Castro summed up the path to becoming a successful operator rather succinctly: “You need to follow the fundamentals to make money.”

Of course, making money is just part of the success equation. Banking that money so it can work for an operator is another. Again, Castro put it simply, urging operators to live within their means when their bar or restaurant starts making money.

Taking it further, Mendoza pointed out that trying to project an image of success is foolish. As he explained, some operators and bartenders are projecting an image of prosperity and expertise, but it’s nothing more than an illusion.

Tober, who understands this business like few others, drove home the need to understand that really, operators are in the entertainment and relationship business. He, his business partners, and his teams are committed to giving guests a reason to visit their concepts and spend their money.

Toward the end of this incredible session, an audience member, to the benefit of every attendee, asked the trio for advice everyone could take back home to improve their operations.

Tighten Up

When it comes to appealing topics of discussion, most people want to shy away from economic downturn. However, ignoring the possibility of a recession doesn’t prevent it from becoming reality.

In fact, Tober said operators need to prepare now for things “to get rough for the next two or three years.” So, he advised the roomful of operators to tighten up their P&Ls.

For future operators this means making it non-negotiable to understand every aspect of their business. Systems must be in place and standards developed before the first guest ever steps through the doors.

According to Tober, operators who are aggressive and savvy can set themselves up “for life” in the next five or six years. We all know what that means, and it’s one of the reasons an operator need to re-invest in their business.

Adding to Tober’s thoughts on the next few years, Mendoza advised the audience to be prepared to attack opportunities when they present themselves.

On the topic of becoming a sharp and successful operator, Mendoza said to “overkill” the books. “Put the same attention into your books as you do your bar team and menus.”

Put simply, operators who know their numbers and the importance of reinvesting funds have chosen the path toward success. This also relates to hopeful operators. They’ll have the opportunity, if they follow their instincts and wait for the right location to become available, for a strong start over the next few years.

Fortuitously, that fits with Castro’s advice: Make sure you’re actually starting a business, not creating a job for yourself. Also, ensure pour costs, food costs, and labor costs are dialed in because they’re the variables over which operators have the most control. Lastly, aim for low turnover.

Takeaway

If we at KRG Hospitality didn’t agree with Castro, Mendoza, or Tober, we wouldn’t share their advice or insight.

The naked truth is that bars and restaurants are going to close. It happens every day.

Mendoza addressed this reality directly. Looking around the room, he said, “Look, some of you motherfuckers ain’t gonna make it.”

While it got a laugh, it was also true. However, one can improve their odds of success by putting the right systems in place; being curious enough to want to know everything about their business and the industry; hiring people for passion, and committing to mentoring and treating them well; and hiring people who will, as Mendoza said, make stress and pain points irrelevant.

It has been said plenty of times that we can hire for passion in this industry, and train for skills. What I hadn’t really heard until Mendoza said it is that we should also hire people who won’t cause an operator’s headaches. About midway through their session, Mendoza advised the room to ask themselves if the person they’re interviewing is going to be a problem or a good fit.

Another truth is that one operator’s failure represents another operator’s future success. However, that’s not possible without a high-level understanding of one’s business specifically and the hospitality business in general.

Image: Shutterstock. Disclaimer: This image was generated by an Artificial Intelligence (AI) system.

March 5, 2024by David Klemt David Klemt No Comments

Creative Conversion: Adaptive Reuse

Creative Conversion: Adaptive Reuse Architecture

by David Klemt

Just taking a quick glance, I see covered outdoor seating, a cool front desk, and roll-up doors for an indoor-outside space.

There are several benefits to reusing an existing space and converting it into a bar or restaurant, including sustainability, and reenergizing a community.

This approach to design is called “adaptive reuse architecture.” A design layperson would likely call it “repurposing.”

As the term implies, this design methodology focuses on using an existing building in a new, modern way. It’s a beneficial approach to design and architecture in large part because new construction is so resource heavy.

Proponents of adaptive reuse architecture point to a given project’s lower carbon footprint, energy conservation, sustainability, and lower construction costs. However, there’s more to it than just reduced costs (attractive to owners and investors) and lower impact on the environment.

There are buildings that lie dormant across the US, Canada, and other countries that hold special places in communities’ hearts. Revitalizing these spaces can do wonders for lifting people’s spirits, preserving heritage while developing culture and community in a new way.

Finally, in my eyes, it’s honorable to allow a space to once again serve the community, albeit in a different way. A space that once provided a crucial service to an area—employment, resources, a communal space, shelter—can now serve as a place to nourish the body and mind through food, drink, and social interaction.

When considering a site (which should also be accompanied by a feasibility study), operators should look at locations that can help them do what neighborhood restaurants and bars have historically done best: serve as cornerstones for their communities.

Vinsetta Garage

One of the most popular approaches to reusing spaces for restaurants is repurposing service stations.

Maybe its American nostalgia, maybe it’s America’s love for the open road. Or, maybe it’s that there are so many service stations in disrepair throughout the country.

Of course, when considering a former gas station, service station, or automotive repair shop, one must consider the costs of making the space food- and people-safe. After all, oil, fuel, and other harmful substances were present in significant amounts over the years. That said, abatement is absolutely feasible as long as a realistic budget is in place.

At any rate, one great example of service station reuse is Vinsetta Garage. This concept in particular keeps a landmark alive: the restaurant lives inside the oldest garage east of the Mississippi. The garage survived for more than 90 years before closing its doors.

Of particular note is the team behind Vinsetta Garage, Union Joints. Reuse appears to be Union Joints’ raison d’être. Along with this garage, the group has reused a fire hall, a church, and a lumber mill. They’ve even repurposed a Hooters. (We can argue whether second- or third-generation restaurant spaces are adaptive reuse some other time.)

To my knowledge, Union Joints has never repeated a concept, owing greatly to their dedication to giving landmark buildings new life.

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The Jane

What a transformation this space has undergone.

Once a military hospital chapel, The Jane counts among its accolades two Michelin Stars, multiple appearances on the World’s 50 Best Restaurants list, and was described as the world’s most beautiful restaurant at the 2015 Restaurants & Bar Design Awards.

The kitchen resides where the altar once stood, and themes of good and evil, and life and death, can be found throughout the space. This is truly a high-concept reuse of a space.

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Hoogan et Beaufort

When people consider adaptive reuse, many likely think of repurposing factories.

They’re normally large, and often feature impressive floor-to-ceiling heights. And, unfortunately, they can be found abandoned or otherwise unused all over many countries.

Reusing such a space can revitalize an area, removing an eyesore from a community and making it functional once again. An upscale example of a reused and reimagined factory is Hoogan et Beaufort, a restaurant in Montréal, Québec, Canada.

For nearly 100 years, the factory produced rail cars. The industrial space, with 28-foot-high ceilings, ceased production in 1992. Its doors were reopened by Chef Marc-André Jetté as a 70-seat restaurant in 2015.

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HopSin Brewpub

This space is part of the Mag8 Craft Beer brewery in Colares, Portugal.

Formerly a tram station and post office, the building also houses HopSin, a brewpub.

As you can see in the post below, the flat roof of the building provides a fantastic outdoor area. Interestingly and conveniently, the tram that currently travels to Sintra stops right in front of HopSin.

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Trinity Place

Located in New York City, Trinity Place reuses a bank vault. However, it’s not just any bank vault.

Diners have the opportunity to grab a bite and drink in a vault tied to industrialist and philanthropist Andrew Carnegie.

In partnership with New York Realty Bank, Carnegie commissioned the bank vault at the turn of the 20th century. And 120 years ago, it was said to be “the largest and strongest bank vault in the world.” It was so big that the building, the Trinity and US Realty Building, was built around and atop the vault in 1907.

Other than restoring it to use as an actual bank vault, what could one really do with this space? Well, two creative restaurateurs, Katie Connolly and Jason O’Brian restored the vault…and turned it into a bar and restaurant—complete with a 40-foot mahogany bar—in 2006.

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The Ordinary

Speaking of bank vaults, there’s a kitchen behind bank vault doors inside The Ordinary.

The team behind FIG, a James Beard Award-winning restaurant operating in Charleston, South Carolina. Also in Charleston, The Ordinary reuses a bank space.

The bank itself has quite a history. Interestingly, considering the focus of this article, the former bank stands on ground that was once a factory. However, that building was not reused; it was torn down to make way for Peoples-First National Bank, which opened for business in 1928.

Looking at that year, some of you may know what happened next. The Great Depression descended upon the world, and Peoples-First survived as best it could until closing its doors in 1933. Occupied for a time by a bakery, the building became Citizens & Southern National Bank in the 1940s, and operated as such for nearly 50 years.

Citizens & Southern National Bank became NationsBank at the start of the Nineties. Then, just before the turn of the century, the space transformed into a Bank of America branch. The bank closed in 2006.

In 2006, FIG’s owners bought the bank, reusing the space as best they could to reimagine and reopen it as a restaurant. The vault was, unfortunately, removed, but other elements of the former bank remain.

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Image: Jason Mitrione on Unsplash

February 28, 2024by David Klemt David Klemt No Comments

Questions Future Operators Need to Ask

Questions Future Operators Need to Ask Before Opening

by Jennifer Radkey

Taking your dream bar or restaurant from vision to reality can be an exciting journey but too many people get ahead of themselves during the process.

What are some of the first actions a future operator takes when deciding to open a new restaurant or bar? Well, many will dive right into deciding on a concept, looking at locations, or figuring out costs. Some may take the time to wisely invest in feasibility, concept, and business plans.

Very few will ask themselves the crucial questions that will help them figure out if they are truly ready to take on this huge endeavor—and be successful at it.

Before designing menus, hiring a real estate agent, or looking for investments, you need to sit down and gain a clear understanding of the state of your mindset. Successfully opening a restaurant or bar can be mentally and physically exhausting. Well before you open your doors you need to have acquired a mindset that is built on resilience, growth, leadership, and positivity.

Below are several questions to consider—and answer truthfully—before diving in.

Mindset Questions

What is the purpose behind wanting to open a restaurant or bar? Why is this goal significant to you?
How do you currently stay motivated and do you have a system in place to turn to when you lose motivation?
Do you feel capable of handling the day to day pressures of starting and operating a business? Why or why not?
Have you been in a leadership position before? On a scale of one to 10 (one being not successful at all and 10 being very successful), how successful of a leader were you?
What kind of leader do you want to be and Is there someone in a leadership position you admire and can learn from?
If you feel that you can not be the leader your business needs to succeed is there a partner you can rely on for this?
Are you currently in a good position to be able to devote the time, energy, resources, and focus needed to undertake this endeavor?
What non-negotiables do you have in your life? What are you willing to sacrifice for this dream and what are you not?
How comfortable are you with meeting people and being open to others’ ideas?
What are three key strengths you possess? How will they help you succeed?
What are three weaknesses you possess? How might they hinder your success?
Are you comfortable with delegating to others when you are not the best person for a task?
Do you have a strong support system in place of people you can turn to when needed?
Why are you choosing to open a business in the hospitality industry? How do you plan to leave your mark in it?
Do you possess the knowledge to run the day to day operations of a restaurant or bar? If not, how do you plan to gain that knowledge?
How open are you to continuous education and learning for yourself and your future team?
How will you balance opening a new restaurant/bar with your personal life?
Are you willing to adapt and pivot when needed, even if it means an entirely new concept?
How do you currently deal with failure?
How will opening a restaurant/bar impact other areas of your life?

Once you have answered these questions you will have a better understanding of where your mindset stands right now, what areas you may need to improve upon, and if you are truly ready to open your own restaurant or bar. There is a saying that knowledge is power, and self-knowledge is the most powerful kind!

Cheers to professional and personal well-being!

Image: Laurin Steffens on Unsplash

KRG Hospitality 2024 Bar & Restaurant 500-point Start-up Checklist

January 10, 2024by David Klemt David Klemt No Comments

2024 500-point Start-up Checklist

2024 KRG Hospitality 500-point Bar & Restaurant Start-up Checklist

by David Klemt

Opening a bar or restaurant is a daunting undertaking, with projects requiring the completion of 500 unique tasks within four phases before welcoming guests.

It takes strategic clarity along with a strong supportive team around you to ensure your dream doesn’t turn into a nightmare. To help you get ahead and start 2024 with the strongest opportunity for success, we’re giving you access to a number of free resources.

First, our 2024 Bar & Restaurant Start-up Costs Guide. If you haven’t already, download this informative guide today. And now, our 2024 500-point Bar & Restaurant Start-up Checklist.

KRG Hospitality’s feasibility studies, concept and brand development, and programming are unique and customized to every client. However, the journey from idea to grand opening is a well-worn path dotted by hundreds of waypoints.

There’s a reason we call our project plans Roadmaps to Success: we’re here to help guide our clients to and through each point on the map.

Below you’ll find 32—only six percent—of the 500 unique tasks we at KRG believe you must complete before your grand opening. Just these tasks alone should provide an idea of the enormity that is taking your concept from idea to brick and mortar.

To download your free copy of our 2024 500-point Bar & Restaurant Start-up Checklist, click here. As you’ll see once you open this checklist, it’s interactive. You can easily check off items as you complete them, and the document will save your progress.

Opening a bar or restaurant is challenging. We’re here to help make it easier.

Planning Phase

Self-assessment

Mindset assessment
Support network assessment

Feasibility Study

Market viability study
Technical viability study

Brand Strategy

Vision statemet
Frame of reference

Tech-stack Plan

Service technology plan
Payment processing technology

Project Set-up Phase

Job Scopes for Project

Landlord presentation
Equipment vendor presentation

Project Support Team Plan

Industry consultant
Legal Advisor

Menu Testing

Final flavor profile creation
Theoretical costing, food

Interior Design

Final choice in furniture
Final choice for millwork design

Operational Set-up Phase

Operational Vendors

Bar and kitchen smallware vendor
Refrigeration tech vendor
Hood cleaning vendor
Grease trap cleaning vendor

SOP Procedures/System

Finalize hourly operations plan
Application forms
Food safety quiz
Leadership team manual

Launch Phase

Marketing Execution

Creation of media package
Search engine optimization

Tech-stack execution

Point-of-sale systems
Menu management systems

Team Onboarding

Leadership team onboard
Team-building exercises

Soft Opening

Menu timing
Menu feedback

To download your free copy of our 2024 500-point Bar & Restaurant Start-up Checklist, click here now!

Image: KRG Hospitality

2024 KRG Hospitality Start-up Costs Guide

December 21, 2023by David Klemt David Klemt No Comments

KRG Releases 2024 Start-Up Guide

KRG Hospitality Releases 2024 Restaurant Start-Up Cost Guide

by David Klemt

KRG HOSPITALITY RELEASES SIXTH ANNUAL RESTAURANT START-UP COST GUIDE

Toronto-based hospitality industry consulting firm with offices in key markets throughout Canada and the United States of America unveils their latest restaurant cost guide and interactive hospitality calculator.

December 21, 2024 (TORONTO)—Today, KRG Hospitality releases their 2024 Bar & Restaurant Start-up Costs Guide, which is free to download. The Toronto-based consulting firm specializes in startup restaurant and bar projects along with boutique hotels, experiential concepts, and entertainment venues. KRG Hospitality’s American headquarters is located in Las Vegas, Nevada.

For the past six years KRG has researched, reviewed, and published the annual start-up cost guide, one of the industry’s leading resources dedicated to restaurant project costing.

And each year this informative and transparent guide is used as a trusted budgeting tool by developers, lenders, contractors, consultants, and aspiring restaurateurs. The guide is founded upon KRG Hospitality’s proprietary database of previous project costs, which includes project data from restaurants, bars, and cafes developed over the past 24 months.

Further, this annual KRG Hospitality guide also includes the interactive KRG Hospitality Calculator, which is updated for 2024.

The costs to start a restaurant have been on a steady rise over the past six years. Major drivers are increases in inflation, interest, labor, construction, and equipment. Of course, there are also the unique materials required to deliver a scalable, sustainable, memorable, profitable, and consistent on-premise, off-premise, or hybrid-style concept.

Drawing upon this comprehensive guide, an industry-leading expert has analyzed the information and provided a succinct and user-friendly summary of the findings for each major start-up category. This isn’t simply a couple of pages identifying a few costs. Rather, the sixth annual guide is a deep dive that provides real insight into what to expect in 2024.

The guide is available now as a free download via this link.

About KRG Hospitality

KRG Hospitality is a storied and respected agency with proven success over the past decade, delivering exceptional and award-winning concepts throughout a variety of markets found within Canada, the United States, and abroad since 2009. Specializing in startups, KRG is known for originality and innovation, rejecting cookie-cutter approaches to client projects. The agency provides clients with a clear framework tailored to their specific projects, helping to realize their vision for a scalable, sustainable, profitable, memorable, and consistent business. Learn more at KRGHospitality.com. Connect with KRG Hospitality and the Bar Hacks podcast on social: KRG Twitter, Bar Hacks Twitter, KRG Media Twitter, KRG LinkedIn.

Disclaimer

While using this guide helps develop a rough preliminary financial and strategic milestone plan, it is strongly recommended that you seek professional expert advice to provide you with a more precise, project specific estimate as each concept and market will be slightly different. KRG Hospitality Inc. is not responsible for any project that is not currently under contract within the company.

Image: KRG Hospitality