Operations | KRG Hospitality

June 21, 2022by David Klemt David Klemt No Comments

Tales Announces Top Four Awards Finalists

Tales Announces Top Four Spirited Awards Finalists

by David Klemt

It’s official: The Tales of the Cocktail Foundation announces the top four finalists in each of the 2022 Spirited Awards categories.

I don’t envy the judges who have to narrow down the top ten nominees to the top four finalists. Equally as daunting: deciding on the winner of each award in each category.

We’ll know who’s taking home each Spirited Award in just over a month. The ceremony will take place on Thursday, July 28 at the Ritz-Carlton, New Orleans. For those attending the 20th anniversary Tales of the Cocktail, the Ritz-Carlton is this year’s headquarters hotel.

Purchase Spirited Awards tickets here, and check out the digital playbill here.

See you at Tales, y’all! Cheers.

US Categories

US Bartender of the Year presented by Del Maguey

Josh Davis (16th Street Bar, Chicago, IL)
Chris Hannah (Jewel of the South, New Orleans, LA)
Masahiro “Masa” Urushido (Katana Kitten, New York, NY)
Christine Wiseman (BarLab Hospitality Group, Miami, FL)

Best US Bar Mentor presented by BarSmarts

Meaghan Dorman
Sean Kenyon
Nectaly Mendoza
Jeffrey Morgenthaler

Best US Brand Ambassador presented by Libbey Glass

Chris Cabrera (Bacardí USA)
Tad Carducci (Gruppo Montenegro)
Vance Henderson (Hendrick’s Gin)
Lynn House (Heaven Hill)

Best US Bar Team presented by William Grant & Sons

Half Step (Austin, TX)
Jewel of the South (New Orleans, LA)
Katana Kitten (New York, NY)
The Roosevelt Room (Austin, TX)

Best US Cocktail Bar presented by Absolut Vodka

Bar Goto (New York, NY)
Katana Kitten (New York, NY)
The Roosevelt Room (Austin, TX)
Thunderbolt (Los Angeles, CA)

Best US Hotel Bar presented by Grey Goose

Dear Irving on Hudson at the Aliz Hotel (New York, NY)
Hey Love at The Jupiter (Portland, OR)
Little Rituals at the Residence Inn/Courtyard by Marriott (Phoenix, AZ)
Silver Lyan at the Riggs Washington DC (Washington, DC)

Best US Restaurant Bar presented by Maison Ferrand

Café La Trova (Miami, FL)
Cleaver: Butchered Meats, Seafood & Classic Cocktails (Las Vegas, NV)
Jewel of the South (New Orleans, LA)
Kumiko (Chicago, IL)

Best New US Cocktail Bar presented by Aviation Gin

Double Chicken Please (New York, NY)
Happy Accidents (Albuquerque, NM)
Temple Bar (New York, NY)
Yacht Club (Denver, CO)

International Categories

International Bartender of the Year presented by Patrón

Lorenzo Antinori (ARGO / Four Seasons Hotel & Resorts, Hong Kong, China)
Keith Motsi (Charles H. Seoul at the Four Seasons Hotel, Seoul, South Korea)
Rémy Savage (🔶🟥🔵 A Bar with Shapes for a Name, London, UK)
Matt Whiley (RE, Sydney, Australia)

Best International Bar Mentor presented by Lyre’s Non-Alcoholic

Monica Berg
Renato “Tato” Giovannoni
Lauren Mote
Agostino Perrone

Best International Brand Ambassador presented by Lyre’s Non-Alcoholic

Martin Hudák (Mr. Black Spirits)
Daniyel Jones (House of Angostura)
Ricardo Nava (Bacardí Latin America)
Nicola Riske (The Macallan)

Best International Bar Team presented by House of Angostura

ALQUÍMICO (Cartagena, Colombia)
MAYBE SAMMY (Sydney, Australia)
The Clumsies (Athens, Greece)
Two Schmucks (Barcelona, Spain)

Best International Cocktail Bar presented by Tequila Fortaleza

MAYBE SAMMY (Sydney, Australia)
Satan’s Whiskers (London, UK)
Tayēr + Elementary (London, UK)
Two Schmucks (Barcelona, Spain)

Best International Hotel Bar presented by Perrier

Charles H. Seoul at the Four Seasons Hotel (Seoul, South Korea)
Fifty Mils at the Four Seasons Hotel (Mexico City, Mexico)
Lyaness at Sea Containers London (London, UK)
The American Bar at The Stafford London (London, UK)

Best International Restaurant Bar presented by Tales of the Cocktail Foundation

Danico (Paris, France)
Le Mary Celeste (Paris, France)
Pujol (Mexico City, Mexico)
Sexy Fish (London, UK)

Best New International Cocktail Bar presented by Stranger & Sons

🔶🟥🔵 A Bar with Shapes for a Name (London, UK)
ARGO (Hong Kong, China)
Schofield’s Bar (Manchester, UK)
SIPS (Barcelona, Spain)

Global Categories

Best New Spirit or Cocktail Ingredient presented by Tales of the Cocktail Foundation

Abasolo Ancestral Corn Whisky
Citadelle Gin Jardin d’été
Lyre’s Non-Alcoholic – Italian Orange
Nixta Licor de Elote

World’s Best Cocktail Menu presented by Diageo Bar Academy

Little Red Door (Paris, France)
Lyaness at Sea Containers London (London, UK)
Swift Soho (London, UK)
Tayēr + Elementary (London, UK)

World’s Best Spirits Selection presented by Beam Suntory

In-Situ Mezcaleria (Oaxaca City, Mexico)
Jack Rose Dining Saloon (Washington, DC)
Sexy Fish (London, UK)
Swift Soho (London, UK)

Writing and Media Categories

Best Cocktail & Spirits Publication presented by Diageo Bar Academy

CLASS magazine
Discard the Zine
VinePair
Whisky Magazine

Best Broadcast, Podcast, or Online Video Series presented by Diageo Bar Academy

Radio Imbibe
Shōshin Art Club
The Cocktail Lovers Podcast
The Speakeasy Podcast

Best Cocktail & Spirits Writing presented by Diageo Bar Academy

“Get Real: The bar world looks beyond feel-good measures on sustainability and climate change” by Max Falkowitz, for Imbibe Magazine
“Has the Coronavirus Pandemic Destroyed American Bar Culture?” by Jeffrey Morgenthaler, for Daily Beast
“Meet the Eco-Packaging Innovations Transforming the Drinks Industry” by Betsy Andrews, for SevenFifty Daily
“The Greatest Drinking Contest in History” by David Wondrich, for Daily Beast

Best New Cocktail or Bartending Book presented by Lyre’s Non-Alcoholic

Death & Co: Welcome Home by Alex Day, Nick Fauchald, and David Kaplan
The Cocktail Seminars by Brian D. Hoefling
The Japanese Art of the Cocktail by Masahiro Urushido and Michael Anstendig
The Way of the Cocktail: Japanese Traditions, Techniques, and Recipes by Julia Momosé with Emma Janzen

Best New Book on Drinks Culture, History, or Spirits presented by Diageo Bar Academy

Bourbon: The Story of Kentucky Whiskey by Clay Risen
Drunk: How We Sipped, Danced, and Stumbled Our Way to Civilization by Edward Slingerland
Girly Drinks: A World History of Women and Alcohol by Mallory O’Meara
The Oxford Companion to Spirits and Cocktails edited by David Wondrich with Noah Rothbaum

Image: Tim Hüfner on Unsplash

June 20, 2022by David Klemt David Klemt No Comments

Eatertainment Poised to Come Roaring Back

Eatertainment Poised to Come Roaring Back

by David Klemt

People are eager to return bars and restaurants, and that focus is beneficial to the growth of one hospitality category in particular: Eatertainment.

As the name suggests, an “eatertainment” venue operates as both an entertainment space and restaurant.

Those who have been to such a concept know the key elements that define eatertainment. A robust F&B program; an array of bar games and other entertainment; room enough to play games and attract groups, but so large it draws massive crowds; and an interest in extending guest stays rather than constantly turning and burning.

Pre-pandemic, the eatertainment category was heating up, steadily growing in popularity. As recently as 2019, SevenRooms and YouGov partnered to study these concepts. When your category draws the attention of data-focused platforms and research firms, you know it’s a winner.

So, what did SevenRooms and their research partner conclude? That eatertainment venues are the new nightclub.

Eatertainment Muscles in on Nightlife

Per the SevenRooms report from 2019, nightlife preferences in the United States were shifting away from traditional nightclubs. This switch was, according to SevenRooms, partially driven by three factors:

Nightclubs draw large crowds;
they play very loud music; and
such venues embrace exclusivity.

Now, that isn’t to say that the nightclub is dead. Particularly in destination cities like Las Vegas and Miami, nightclubs are a major draw.

However, as people reach their thirties or seek out more casual spaces, eatertainment becomes increasingly attractive. For the most part, people can leave work and go straight to an eatertainment concept to meet up with friends. They’ll be able to carve out a space, grab a bite and a drink, and socialize while engaging with an array of entertainment options.

Such venues also tend to be open seven days per week, from noon or early afternoon into late night. Their F&B programs, focus on entertainment, and hours of operation position them to play an important role: the third place.

Home Away from Home

As any dive or neighborhood bar operator knows, becoming a person’s third place is crucial. The third place, for those unfamiliar with the term, is the spot you go to in between the workplace and home.

So, becoming someone’s home away from home is a big deal. It’s the ultimate in consumer loyalty. Become someone’s third place and you’ll be on your way to building an army of brand advocates.

The third place is where we unwind after work. We’re friendly with the staff: they know us, know our usual orders, and know what recommendations to make.

Now, what if a regular’s third place offered not just quality F&B but also entertainment and an atmosphere that shifted with dayparts? You’d have a supercharged third place, a.k.a. an eatertainment concept.

Eatertainment will Continue to Grow

Where should people go when they decide they’re beyond their nightclub years? Feeling uncomfortable in a nightclub doesn’t mean the interest in nightlife simply disappears.

Well, they turn to eatertainment. And why do they find these concepts appealing? For several important reasons driven by shifts in consumer behavior.

One, I think we’re all tired of endless text and DM exchanges attempting to organize an outing. An eatertainment venue is a restaurant, bar, entertainment space, and nightclub in one place. No more planning to travel to a restaurant, then a bar for drinks afterward, and then a nightclub, concert, or lounge.

Two, today’s consumer is seeking out restaurants and bars that offer more inclusive, more welcoming, more personalized experiences. Again, eatertainment hits all those marks.

According to SevenRooms, there are key datapoints that indicate eatertainment will continue to grow. And while their report was published in 2019, their findings are still relevant given the past two years:

Around a quarter of Americans want more eatertainment venues close to them.
A quarter of Americans prefer a venue that combines quality food and drinks with fun activities in one space.
Nearly 30 percent of Americans consider food quality when deciding where to spend their time and money.
Close to 20 percent want a venue to offer something to do beyond drinking.

More recently, May of this year, in fact, Datassential also found that eatertainment is on the rise again. Per their data, half of consumers “are very interested in revisiting an eatertainment experience.

Takeaway

Eatertainment concepts are positioned to perform well moving forward.

Think about it: people are eager to socialize without being packed together; guests are showing interest in innovative, high-quality F&B items; people want entertainment that spans live music and DJs to cornhole (or bags, if you want to have that argument), axe throwing, and arcade games; and having access to an incredible, personalized experience in one venue is an attractive prospect.

Punch Bowl Social, Topgolf, Pinstripes, and Flight Club are among the best representatives of the category. Do you have the idea for the next big eatertainment brand? Let us know!

Image: Elevate on Unsplash

June 13, 2022by David Klemt David Klemt No Comments

After RRF Failure, What’s Next for Us?

After RRF Failure, What’s Next for Us?

by David Klemt

After the US Senate failed to even debate the Restaurant Revitalization Fund, instead opting to let it die, what’s next?

Obviously, trusting our elected officials to do the right thing isn’t a viable option. After all, the Senate slow-walked the RRF’s death march. It took six weeks after the House voted “yes” on RRF for senators to filibuster the bill to death.

Last Thursday, the National Restaurant Association addressed moving forward. Sean Kennedy, executive vice president of public affairs, released a 90-second video in which he spoke about the RRF and where we are now.

Reconciliation?

One of the first options Kennedy proposes in his video is a reconciliation bill. That, however, is highly unlikely to come to fruition.

So, what’s a reconciliation bill? Simply put, it has to do with the Senate’s supermajority requirement.

In order for a bill to advance to a vote, 60 percent of the Senate must support ending a filibuster. On that topic, a filibuster is a procedural tool that prolongs a debate. The filibuster is used to delay or prevent a vote on a bill, resolution, etc.

Now, a budget reconciliation bill circumvents the supermajority requirement. A simple majority—51 senators for the US Senate—is all it takes to override a filibuster in this instance.

Technically, from what I’ve come to understand, the Senate can pass a maximum of three budget reconciliation bills in a year. Most often, it passes a single such bill per year.

Obviously, Kennedy feels that this would be a longshot to cross our fingers and hope the RRF is funded via these means.

Staying Ready

As they say—yes, “they”—if you stay ready, you don’t have to get ready. According to Kennedy, the NRA is prepared to act in any way they can should replenishing the RRF or similar aide once again become an option.

“We’re gonna continue to closely monitor the situation and we certainly can activate if there any signs of movement,” he says. “We’re not seeing them yet.”

The “yet” there is perhaps a bit hopeful. And as we like to say, hope isn’t a strategy. However, optimism is far healthier than pessimism and hopelessness.

Additionally, Kennedy and the NRA are grateful to the bipartisan group of representatives and senators who have shown their support for our industry and replenishing the RRF.

“We’re incredibly appreciative of the works of our champions in Congress,” says Kennedy.

In particular, he acknowledges Senate Majority Leader Chuck Schumer (D-NY), and senators Ben Carden (D-MD), Roger Wicker (R-MS), Kyrsten Sinema (D-AZ). In the House, Kennedy thanks Speaker of the House Nancy Pelosi (D-CA), and representatives Earl Blumenauer (D-OR), Dean Phillips (D-MN), Brian Fitzpatrick (R-PA).

What’s Next?

As Kennedy says, much of what he discussed with people at the 2022 NRA Show centered around this very topic. Just what are we supposed to do moving forward?

Unfortunately, there’s no clear answer, no simple solution we can point to and implement.

Instead, we have several issues we must navigate to keep restaurant and bar doors open:

What can we do to more effectively recruit and retain staff?
How can we best address increases in food costs and problems with availability?
Is there a way to address rising credit card transaction fees?

Of course, that’s but a handful of what we must address and solve. And at least when it comes to the first question, we know some of the elements for the solution:

Treat staff with respect.
Value diversity, equity, and inclusion.
Improve pay and offer benefits.
Develop a healthy company culture and workplace.

On the topic of state and local policymakers, expecting help is a dicey proposition.

Unless they engage with the owners, operators, and industry professionals in their states, counties, cites, and towns, they’ll hurt these businesses. The only effective and helpful way forward is for them to engage with us and not simply introduce and pass legislation that hurts. Possible, of course, but a big ask as we’ve seen proven time and time again.

Image: Minator Yang on Unsplash

June 9, 2022by David Klemt David Klemt No Comments

2022 50 Best Bars: North America

2022 50 Best Bars: North America

by David Klemt

Probably a speakeasy.

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

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

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

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

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

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

Canada

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

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

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

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

America

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

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

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

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

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

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

Mexico

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

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

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

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

Cuba

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

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

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

50 Best Bars: North America

Below, the full list in ascending order.

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

Image: Hello I’m Nik on Unsplash

Tales of the Cocktail Red Coat apprentices

May 25, 2022by David Klemt David Klemt No Comments

2022 Cocktail Apprentice Program Class

TOTC Announces 2022 Cocktail Apprentice Program Class

by David Klemt

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

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

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

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

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

Valuable Experience

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

But there’s another reason this news is important.

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

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

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

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

2022 Red Coats

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

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

2022 Grey Coats

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

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

2022 Black Coats

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

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

2022 White Coats

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

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

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

Image: M.S. Meeuwesen on Unsplash

April 20, 2022by David Klemt David Klemt No Comments

Chain Restaurants: Present & Future

Chain Restaurants: Present & Future

Technomic presented the state of chain restaurants, now and next, during Restaurant Leadership Conference 2022 in Scottsdale, Arizona.

Obviously, the entire hospitality industry is facing significant struggles. Rising costs, supply chain chaos, labor shortages and challenges, inflation… The past two-years-plus haven’t been easy.

However, there’s reason for operators and their leadership teams and staff to be optimistic. Additionally, independent and small-chain operators can learn from Technomic’s findings.

Challenges & Threats

Well, let’s take our medicine first, starting with the supply chain. In short, it’s bedlam.

Joe Pawlak (standing in for David Henkes) and Richard Shank of Technomic said as much during RLC 2022. Per their data, 35 percent of operators dropped at least one manufacturer between 2020 and 2021.

Whether because of rising costs, an inability to consistently deliver product, or other factors, operators had to adapt. Clearly, there’s a nasty trickle-down effect when an operator drops a supplier.

And then there’s inflation. Interestingly, Shank calls what we’re seeing currently as “existential inflation.” Relating to consumers, this means their confidence is shaken in terms of spending.

Of course, this type of consumer perception manifests in several ways. For example, some guests cut down on visits. Others will cut down on ordering, skipping appetizers and desserts. Perhaps they have one less beer, glass of wine, or cocktail.

Also, some guests “trade down.” Meaning, there are consumers who opt for casual restaurants rather than fine dining. Or, they’ll move from fast-casual to QSR.

Looking at the numbers, however, nearly 40 percent respondents to a Technomic survey say they’re visiting restaurants less. This makes sense, as 81 percent are concerned about how inflation will impact them personally.

On the operator side of inflation comes pricing. During Pawlak and Shank’s presentation, they used QSR dinner pricing as a real-world example.

According to Technomic, the tipping point for guest perception of good value is just $7. At only $10, consumers feel things are getting expensive.

As Pawlak and Shank pointed out, this is a problem. After all, the average price for dinner at a QSR is $10.08. That number may already be higher today.

Opportunities

Medicine taken, we can move to the good news.

First, Technomic predicts a strong Q3 this year. Additionally, they don’t expect double-digit year-over-year inflation.

In terms of labor, Technomic doesn’t expect costs to go down. However, they do anticipate that they’ll level off rather than rise.

Then there are the numbers. For the top 500 chains in the US in particular, 2021 was a “banner year,” according to Pawlak. On an aggregate basis, sales for the top 500 (McDonald’s is number one, for those wondering) are up 17.9 percent.

Also, every category of restaurant is performing better. The top 500 chains, for instance, are up 18 percent year-over-year. Midscale restaurants are up 38.5 percent. Casual is up 30.2 percent while fast is up 22.2 percent, QSRs are up 13.2 percent. As far as the biggest bump, fine dining is up 56.9 percent.

Looking at 2019 for obvious reasons, the industry was down 49.1 percent in sales in April 2020. However, the industry was down just about a single percentage point in February of this year compared to the same time in 2019.

So, how do we keep sales trending upward when facing inflation and other threats? Pawlak, Shank, and Technomic have some advice.

Operators, for instance, can implement the “balanced barbell” pricing strategy. In this model, high-value items drive business alongside premium offerings. In other words, don’t discount the entire menu just to entice guests to keep visiting.

Once guests get a taste for falling prices, they’ll consider the lower prices the standard. After that, any increase can be perceived as “too expensive.” Of course, discounting the whole menu also impacts guest perception of the brand negatively.

In addition, Technomic suggests offering higher net profit discount bundles, and implementing off-premise, large-party strategies.

Should Technomic’s predictions prove true, the industry may see an even stronger Q4 and start to 2023.

Image: Alex Haney on Unsplash

April 19, 2022by David Klemt David Klemt No Comments

Dining Room Tech on the Rise

Dining Room Tech on the Rise

by David Klemt

After years of restaurant technology adoption moving at a glacial pace, the industry now appears to be embracing innovations at light speed.

In fact, in just two short years some in the industry think it may be time to slow down. New tech can be exciting but jumping on every “innovation” is expensive, time consuming, and inefficient.

However, slowing down doesn’t equate to hitting the pause button.

Dining room tech was a topic of discussion at the 2022 Restaurant Leadership Conference in Scottsdale, Arizona. The two speakers agree that our industry needs to ease off the tech throttle a bit.

However, they also feel that tech innovations in the restaurant space will continue at a faster rate than they did pre-pandemic.

Session host Raymond Howard, a co-founder of Ziosk, interviewed Chris DeFrain and Hernan Mujica about dining room tech. DeFrain is a CPA at Lehigh Valley Restaurant Group, which operators 21 Red Robin franchises throughout Pennsylvania. Mujica is CIO for Texas Roadhouse.

Red Robin

Industry professionals and consumers alike should be familiar with Ziosk. After all, Red Robin has been a client with tech company since August, 2012.

Anyone who has visited a Red Robin has certainly interacted with a Ziosk terminal.

According to DeFrain, there are some interesting consumer behaviors taking place in Red Robin dining rooms. When it comes to tech, guests appear satisfied to place orders for appetizers and desserts via Ziosk terminals.

As DeFrain sees it, the guest would rather not wait for a server for ordering those types of food items. However, guests do seem to prefer ordering entrees from a server.

That’s a positive in DeFrain’s opinion, as he believes that ordering must remain the domain of servers. While he contends that the tech-based ordering process needs streamlining, DeFrain doesn’t appear interested in taking it out of servers’ hands completely.

This makes sense; the server as an integral element of the guest experience. How can a casual dining restaurant build guest loyalty and deliver a memorable guest experience without an engaging front-of-house team?

Of course, dining room tech should do more than accept orders, summon a server, and offer tableside payments. Today, data is king. Powerful platforms collect as much useful data as possible.

To that end, DeFrain appreciates that Ziosk provides data Red Robin leadership teams can share with staff. For example, a server can be shown how much they’re making in tips during their shift.

Finally, DeFrain says that guest usage of Ziosk terminals is improving feedback and comments.

Texas Roadhouse

In comparison to Red Robin, Texas Roadhouse took longer to sign on with Ziosk. In part, interestingly, this was due to the redesign of the terminal itself.

Turns out, Texas Roadhouse waited for a Ziosk terminal that took up less space and looked better on the chain’s tables.

Per Mujica (and any Texas Roadhouse guest), the in-person experience is core to the brand. Therefore, dining room tech must be an enhancement, not a detriment.

Like Red Robin, the chain has no interest in adopting tech that replaces FoH staff.

Another consideration regarding dining room tech should be important to all operators: The tech must be user friendly. According to Mujica, restaurant guests are happy to embrace tech innovations—if it’s easy to use.

So, operators must be careful and deliberate when choosing their tech stack. Generally speaking, native tech users (Gen Z) will likely be much quicker to learn how to use a particular technology than a Baby Boomer or even Gen X counterpart.

As such, operators must know their guests in order to adopt tech that enhances rather than alienates.

Another reason Texas Roadhouse chose Ziosk, per Mujica, comes down to mobile pay. In short, the chain didn’t like the mobile pay guest experience.

In terms of the future, Mujica predicts that handheld, tableside ordering is the future of dining room tech.

Takeaway

Like Mujica says, operators have now seen what tech innovations can do for them. In short, there’s no turning back.

And I agree with Mujica and DeFrain: it’s likely (and necessary) that tech development will slow a bit moving forward. Honestly, we all need room to breathe, consider the innovations available currently, and decide what works best for a particular business.

Likewise, I agree that tech can’t be allowed to alter the service model. Technology shouldn’t be seen as a replacement for staff.

Interestingly, restaurateur David Chang addressed this very subject during a 2022 RLC conversation. In his opinion, tech won’t replace restaurant roles, it will streamline them. At most, said Chang, tech will replace small, repetitive tasks, such as the physical flipping of a burger.

In closing, when deciding on the tech stack, operators should consider the following: ease of use for guests, ease of use for staff, streamlining of operations, and cost.

In this space, tech should never be embraced simply because it’s shiny and new. Not only is that costly in terms of investment, it can cost guest loyalty and visit frequency.

Image: Vishnu Mohanan on Unsplash

Close-up shot of person texting on phone in a restaurant

April 12, 2022by David Klemt David Klemt No Comments

Leadership Facepalm: Don’t Do This

Leadership Facepalm: Don’t Do This

by David Klemt

Here’s a hot take on the employer-employee dynamic: Don’t text staff at 3:00 in the morning demanding they come in on their day off.

In fact, let’s compress this piece of advice. Don’t text staff at 3:00 in the morning.

Really, I shouldn’t have to explain the myriad reasons that doing so isn’t acceptable. However, a post on Reddit shows that this topic needs addressing.

Are You Serious?

Yes, I’m using a Reddit post as an example of what not to do. And yes, I’m going to assume the post is legitimate for the purposes of education.

Owners, operators, and members of leadership teams need to lead. Micromanaging, assuming staff is at their beck and call, and domineering behavior only lead to high turnover.

A high staff churn rate is costly, and not just financially. Yes, it costs thousands of dollars to replace a single member of staff. However, immediate financial costs shouldn’t be the only concern.

Churning through staff also damages a restaurant, bar, hotel, or owner’s reputation. Should they become known as a bad employer—word gets around quickly in this industry—and eventually an operator won’t be able to hire rock star talent.

Over time, they’ll only draw in workers that chase away their guests. After that, the operator will be closing the doors.

“You Need to Be a Team Player”

Interestingly, the Reddit post that’s inspiring this article isn’t brand new. The post in question is about six months old.

But these days, with the shift in the employee-employer dynamic that’s taking place, stories of “epic” or “savage” quitting garner attention.

Again, there are myriad reasons people are drawn to these stories. Rather than read through those, let’s take a look at this quitting story.

A bartender took to Reddit (again, I’m assuming this is a fact) to share texts from his (former) manager. The timestamp on the first text? 2:59 in the morning.

“I need you to come in from 11a-10p today,” starts the text. The reason? Only one bartender is on the schedule for an event that day.

In response, the bartender says, “No thank you,” stating it’s their day off. And then the manager makes a demand using a term that gets thrown around far too much when some people in a position of authority don’t get the response they want (in my opinion).

The bartender is told they need to be a “team player,” and that “it isn’t all about you.” On a positive note, the manager does then say “please” and asks the bartender to come in.

Putting their cards on the table, the bartender says they’ve had a few drinks and don’t want to work an eleven-hour shift with a hangover. Personally, I don’t think the manager was due that explanation but okay.

This doesn’t sit well with the manager, who now attempts to police the bartender’s personal time. According to the texts, the bartender needs “to stay ready for work.” This is apparently because “getting too drunk is not a good look if you can’t stay prepared.”

“Fed Up with You”

After a few more texts back and forth, the manager fast-tracks this situation’s escalation. The bartender is told that they’re going to talk about the bartender’s “attitude” when they “come in Sunday.”

Well, it’s highly unlikely that conversation ever took place. According to screengrabs of the texts, the bartender replies, “No we’re not.” They then proceed to remind the manager that “dozens” of places are hiring bartenders. They’re happy to go work for one of those businesses.

Unsurprisingly, the manager attempts to backpedal. They say that the bartender is making a rash decision “because you’re drunk” and will regret it the next day. That approach doesn’t work.

Now, there’s one sentence that suggests to me, if this situation is real, that the owner needs to address this manager. Or, if this manager is the owner of the business, that they need to work on developing leadership skills.

That line? “I’m fed up with you.”

Sure, they could mean they’re fed up with them in this instance. However, the line follows the bartender saying that their are several other places they can find work instead.

My interpretation is that at a minimum, these two have a problem with one another. Worst case, this manager isn’t doing the owner (or themselves) any favors with their “leadership” style.

Just…Don’t Do This

Please, please, please, don’t text or call staff at 3:00 in the morning. There are perhaps a tiny handful of reasons to ignore this advice. As I see it, those reasons all involve emergencies.

And no, being short-staffed for an event the following morning is not an emergency worthy of texting or calling an employee to cover a shift so late at night/early in the morning.

There are several leadership and scheduling solutions that can prevent this type of situation. In this particular instance, since the bartender was “fed up with” this manager, they were going to quit sooner or later.

Which brings me to my first point: Operators need to know what their leaders are doing. How are they treating staff? How does the staff perceive the leadership teams?

Secondly, how do the operator and other leaders perceive one another? Is everything running smoothly or is one “leader” not really leading?

And finally, scheduling technology. These days, there’s really no excuse for many kinds of scheduling problems. Several scheduling apps integrate well with popular restaurant, bar, and hotel POS systems.

For example, HotSchedules gives staff the ability to give away, swap, and pick up shifts. Another example is OpenSimSim, which provides an open shift invite feature. Staff can also set their profiles to auto-accept shifts as they become available.

7shifts and Schedulefly can also help fill shifts. And like HotSchedules and OpenSimSim, leaders can message groups and individuals, and vice versa.

Perhaps the biggest takeaway here is this: The maxim, “People don’t leave jobs, they leave managers,” is accurate. Leaders need to respect their team members and their personal time.

Image: Alex Ware on Unsplash

March 28, 2022by David Klemt David Klemt No Comments

This is How You Win When Leasing

This is How You Win When Leasing

by David Klemt

At this year’s Bar & Restaurant Expo, the Invictus Hospitality team tackled a crucial step of any project: The lease.

Invictus (IH), friends of KRG Hospitality, know a thing or two when it comes to leasing a space. Principal Homan Taghdiri is a tenacious negotiator.

Case in point, an Invictus project in Orlando that opened during the pandemic. The space was owned by the city, which can certainly complicate matters. Taghdiri sunk his teeth in and refused to let go—for seven months. That’s crocodile or Komodo dragon patience.

The result? Favorable terms and massive cost savings.

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Taghdiri presented “Understanding the Leasing Game & How to Get Ahead” at Bar & Restaurant Expo 2022. You know this show by its former name, Nightclub & Bar.

Knowing that when Taghdiri smells blood in the leasing water he’ll clamp down and death roll until he gets his way, I attended his session.

Before we dive in, know this: If we disagreed with the IH approach to leases, we wouldn’t share their tips. The information below would cost, as Taghdiri points out, about $2,000 coming from an attorney.

Of course, neither KRG Hospitality nor Invictus Hospitality is providing legal or financial advice in this article. I’m just passing along information, as IH was doing during their session.

Leasing Dos and Don’ts

If you take nothing else from this article and Taghdiri’s session, make it this tip: Do negotiate your lease.

“You have to negotiate your lease,” says Taghdiri. “It is a must.”

Not you should. Not you can. You must negotiate your lease. Neither of us can emphasize this enough.

In fact, it’s your right to do so. Which brings us to our first leasing don’t. Do not believe anyone who says you can’t negotiate a lease.

“Anyone who tells you that you can’t negotiate your lease is lying to you,” says Taghdiri.

And if they’re not lying, they just don’t know what they’re talking about. Either way, don’t listen to them. Walk or run away.

Also, do your due diligence. Knowing what you’re getting into before signing is on you. Taghdiri recommends you ask the following before signing anything:

What generation is the space? Is it brand-new? It’s first generation. Did the first tenant leave? It’s second-generation, and so on.
Is the space totally empty?
Does it have space allocated for gas, electric, etc.?

Ideally, you’ll find a second-, third- of fourth-generation bar or restaurant space. Why? They can provide massive cost savings to you.

Do fight for the terms that are important to you. These include amount of the lease, the length of the lease, and any incentives.

However, don’t over-negotiate your lease. Do put yourself in the landlord’s position. They’ve invested significant capital developing the space and they need an ROI. Pick your most important terms and negotiate them. You risk a landlord walking away from a deal if you negotiate every single item and make things difficult.

Lease Types

So, you’ve found your perfect space. Do you know which type of lease you want? Not certain which is right for you?

No problem, because Taghdiri broke them down during his session.

Standard. This is the easiest to explain because it doesn’t exist. A particular landlord may have “standard” lease, but their isn’t one that spans the industry.
Full service gross is the easiest of the actual leases. Everything is negotiated and clear in the lease, and you simply pay the agreed-upon amount.
Triple net is the opposite of the FSG lease. You pay your base rent. Then, your landlord passes on operational costs to you, which you also pay.
Percentage Rent. Basically, this is a hybrid lease. You pay base rent plus a percentage of sales. For example, you may pay natural breakpoint on top of base rent. This type of lease can be beneficial to newer businesses. However, some landlords do not like percentage rent leases.
Modified gross is, basically, any lease that isn’t an FSG. This is the most common lease, and it’s most easily explained as a modified FSG.

First-time operators or owners entering an unproven market will likely want to first focus on modified gross or percentage rent leases. However, FSGs are certainly attractive.

Length of Lease

Landing on a lease amount that you can live with is only part of the battle. Far too many people overlook the length of their lease, focusing too hard on the amount.

So, let’s take a look at some crucial factors you need to consider before signing anything.

Base Term. Let’s say you’ve invested several million dollars into your project. It’s sort of hard to imagine paying that investment off in two years, isn’t it? So, a two-year lease probably isn’t ideal. Give yourself the time you most reasonably need to open your doors and make money. Again, don’t focus solely on the amount of the lease.
Option Periods. Taghdiri explains term options thusly: “Jump into the pool safely before knowing what’s in it.” The real-world example is easy enough to understand. Agree to a three-year lease but bake one or two (or more, if you want or can) five-year renewal options into the agreement. Doing so means that you can trigger the renewal prior to the term’s conclusion. In other words, the landlord won’t be able to (easily) kick you out if you want to keep leasing the space. Just be aware that your landlord will likely also want to bake new terms into the agreement along with the renewal options.
Early Termination Rights. When it comes to this element, Taghdiri explains that this may be limited to longer-term (ten years or more) leases. Essentially, it’s what it sounds like. You should be confident in your concept before you even get to the lease stage. However, it’s not a bad idea to have an early exit plan in mind. So, you may be able to sign up for a long-term lease but bake in an 18- or a 24-month termination clause. Just remember that if you don’t exercise this agreed-upon right within the timeframe, you’ll be responsible for the original term of the agreement.

The Million-Dollar Question

You likely have a burning question searing itself into your brain right now. It’s a common question: “How much rent should I pay?”

There are a few ways to approach a satisfactory answer. The bullshit answer is, “Whatever you can afford for the space you really want.”

That’s the first step toward blowing a budget, blowing out already razor-thin margins, and skyrocketing costs.

One way to approach the how-much question is due diligence and comparables. What are the comps in your selected area? What are people paying in the neighborhood? What’s best for your business, and is that identified in your pro forma?

That said, Taghdiri did present a general lease amount rule. Try to keep your rent at 11 percent of gross sales, or less. Ten percent is even better, obviously. Anything less than that and you’re a master negotiator.

Image: Randy Laybourne on Unsplash

Apple iPad and Apple Pencil with calendar on screen

March 14, 2022by David Klemt David Klemt No Comments

5 Reasons Why You Need a Calendar Audit

5 Reasons You Need to Conduct a Calendar Audit

by Jennifer Radkey

Keeping a hospitality business running smoothly takes an immense amount of organization, and at times you may feel pulled in a million directions at once.

As an operator of a restaurant or bar, your daily calendar may seem like an endless stream of tasks.

You are most likely already using some sort of organizational tool: an agenda, calendar, your phone, or Post-Its all over your office walls. But when was the last time you actually analyzed your calendar?

I’m going to challenge you to sit with your calendar and take a deep-dive audit of just how you are spending your time.

Here are the five reasons you need to do a calendar audit today.

You Aren’t Making Money or Reaching Goals

As the operator of your hospitality establishment, you are responsible for your business’ success. So, dissect your calendar.

What actions are you taking on a daily or weekly basis that directly lead to making money? What percentage of your time is spent on growing your business, rather than running your business? There is a difference.

You are Burnt Out

When you are not at your best, your business will not be at its best. It’s as simple as that.

How many daily operational tasks are you taking on that could be delegated to someone else? You don’t need to be involved in every aspect of the daily operations of your business.

Take a look at your calendar and highlight any tasks you have been doing that could easily be done by someone else on your team. Then, give those tasks away.

Team Morale is Low

Go back and audit your calendar.

When was the last time you scheduled a team meeting? How about individual meetings with employees to go over their successes, growth opportunities, etc.? Is there regular time delegated to improving your workplace culture?

Carve some time out for the people who choose to spend their days working for you, and watch team morale improve.

You Feel Stuck in a Rut

Maybe your business is doing well but has plateaued. Maybe you aren’t excited to go to work anymore. Take a close look at your calendar.

What have you done in the past week or month to create excitement? For example, did you attend any industry related shows or events?

As operators, it is easy to get stuck in a daily routine that doesn’t allow time for creativity. However, it is imperative to schedule time to be inspired.

Your Work/Life Balance is Off

The hours can be long, and with so much to do, you can often feel as if your entire life is your work. Take a close look at your calendar.

Are you scheduling in family time? Time for friends? Time for physical health? Hobbies? Fun?

This can be as simple as scheduling time for something you enjoy that changes up your week:

A 15-minute call with your mom every Monday morning.
Walking/biking to work twice a week.
Meeting up with a friend once a week for a coffee.

We often say that we will do these things. However, unless they are prioritized and written down they aren’t going to happen as much as we need them to.

Performing a calendar audit can be eye-opening and give us an entirely new perspective on how we are using our time. Doing so can help us improve time management, productivity, happiness, and goal achievement.

So, go ahead and mark some time for a calendar audit into your calendar. You will thank yourself later that you did.

Cheers to professional and personal well-being!

Image: Omar Al-Ghosson on Unsplash