Operations | KRG Hospitality

United States of America atlas roadmap with push pins

July 28, 2021by David Klemt David Klemt No Comments

More States Issue Mask Mandates

More States Issue Mask Mandates

by David Klemt

Unsurprisingly, more states, counties and cities across the US and the country’s territories are issuing mask mandates.

In some cases, the mandates and guidance are coming down regardless of vaccination status.

Unfortunately, these actions are a response to reports of Covid-19 infection and hospitalization increases. The rise in cases and hospitalizations is due in large part to the highly transmissible Delta variant.

In fact, the Centers for Disease Control and Prevention (CDC) is once again changing course. Now, the CDC recommends that people in areas where Covid-19 infection rates are “substantial” or “high” wear masks inside indoor public places.

A map of these areas can be found on the CDC’s COVID Data Tracker page.

Local Defiance

Illustrating the divisive times in which Americans find themselves, some mandates are pitting local officials against their state counterparts.

For example, Florida. Per several outlets, Palm Beach County officials are ordering masks to be worn indoors by everyone irrespective of vaccination status. Of course, the mandate stands in direct defiance of Governor Ron DeSantis’ statewide ban of such an order.

No word yet on Gov. DeSantis suing the county over the order.

However, Missouri Attorney General Eric Schmitt is suing St. Louis County and city officials to stop their mask mandate. Currently, St. Louis requires masks be worn indoors and on public transportation.

Also, no word on whether these mandates will impact Canada’s plan to reopen the border for non-essential travel to vaccinated Americans.

Mandates: Vaccinated, Unvaccinated

Below, a list of the states and territories with mask mandates in some form (public transit, public places, state buildings, for example) in place.

The following orders pertain to everyone, vaccination or no vaccination.

California
New Hampshire
Hawaii
Illinois
Indiana
New Jersey
Kansas
Maryland
Massachusetts
New Mexico
Mississippi
Montana
Nevada
New York
North Carolina
North Dakota
Ohio
Oregon
Puerto Rico
Virginia
New York

As always, check with your local, county and state authorities for full details.

Mandates: Unvaccinated

Here, a list of the states and territories with requirements in place only for those who are unvaccinated.

Colorado
Connecticut
Delaware
Kentucky
Michigan
Pennsylvania
Rhode Island
Vermont
Washington
Washington, DC

Again, residents should check with state, county and local authorities for requirements and guidance.

Operator Concerns

Once more, owners and operators find themselves having to police guest behavior and compliance regarding Covid-19 mandates and recommendations.

And once again, it’s the guest-facing team members who will be thrust into any confrontations with hostile customers.

While not a silver bullet by any means, operators should communicate their intent to comply with mandates. Social media posts, emails and phone conversations should make requirements and expectations clear.

Additionally, operators and managers need to stay on top of employee concerns and comfort levels. Leadership must also make it clear, with actions and not just words, that their teams will be supported when engaging with guests.

The industry is in a very tenuous place and has been for many months. Workers are leaving and not coming back. Perhaps it’s time—respectfully and professionally—to set aside the maxim that “the customer is always right” and err on the side of employees.

Image: Morgan Lane on Unsplash

July 19, 2021by David Klemt David Klemt No Comments

Mask Mandates, Recommendations Return

Mask Mandates, Recommendations Return

by David Klemt

Pointing to vaccination hesitation, vaccination refusal, and rises in Covid-19 cases, some cities are mandating masks indoors.

Importantly, mandates and recommendations are coming down irrespective of vaccination status.

Of course, many people are unhappy about this news. Much of the backlash includes the claim that a return to masks proves vaccines don’t work.

However, others point to variants—in particular, Delta—spreading via the unvaccinated and unmasked.

Unfortunately, continuing divisiveness means hospitality and other frontline workers are again at risk for hostile confrontations.

Los Angeles County, California

If you’re an operator in Los Angeles County, masks indoors aren’t just a recommendation. An indoor mask mandate went into effect on Saturday, July 17.

Just a month prior, embattled Governor Gavin Newsom proudly announced California’s unrestricted reopening.

Now, the more cynical among us see Gov. Newsom’s June reopening as a bid to stave off recall efforts. However, recall ballots will go out to Californians next month.

Per reporting, California’s Covid-19 infection rate is close to tripling. Los Angeles County health officials say the indoor mask mandate comes out of an overabundance of caution.

On a different note, health officials expect the state’s vaccination rate to effectively combat a spike in infection rates. The current rate isn’t expected to match or surpass those of prior peaks in the state.

As far as mandate details, it’s quite simple: Masks are required for everyone indoors, regardless of their vaccination status.

According to reports, an additional ten California counties are recommending masks indoors. No word yet on if other counties—or the state as a whole—will announce mask mandates. Nor is there an end date for LA County’s current mandate.

Southern Nevada

While not a mandate, the Southern Nevada Health District is recommending people, regardless of vaccination status, wear masks indoors.

Unsurprisingly, Las Vegas is experiencing an influx of visitors. With vaccination rates on the decline and infection rates on the rise, health officials are concerned.

More than 2.9 million visitors flocked to Las Vegas in May. Clark County, Nevada, which includes Las Vegas, has a population of over two million.

Of course, it’s important to remember that, for now, wearing masks indoors is a recommendation. However, some resorts and casinos—Westgate and the Venetian among them—now require their employees to wear face masks.

So far, neither Las Vegas, Clark County or Nevada have implemented a mandate. Of course, that could change and a mandate may be in the wings.

Orange County, Florida

Much of the news of returning mask mandates and recommendations focuses on Los Angeles and Las Vegas.

In fact, some critics are attacking Nevada Governor Steve Sisolak, accusing him of blindly following Gov. Newsom.

Interestingly, though, is that a mayor in Florida is also recommending face masks.

Mayor Jerry Demings of Orange County recommends wearing masks indoors, vaccination status notwithstanding. The phrasing of the mayor’s announcement refers to the suggestion as an “official recommendation.” However, no mandate is in place currently.

Frontline Risks

Clearly, mask mandates and even recommendations are going to anger some of the population.

Unfortunately, hospitality workers (and those in other public-facing industries) are once again at risk of confrontations. Even without mandates, some businesses that choose to require masks experience hostility.

The last thing America needs is more divisiveness, anger, and potential for confrontations.

Millions of hospitality professionals have left the industry for good. One factor leading to those losses has been concern for safety due to people angry over mask and vaccine requirements.

Obviously, operators must do whatever’s in their power to ensure the safety of their team members and guests. Leadership must not only convey their support for their employees, they must stand behind that messaging with their actions.

In cities where masks mandates and recommendations return, operators need to focus on safety as much as employee retention. Indeed, the former aids the latter, which aids recruiting and hiring.

Image: Daniel Lee on Unsplash

Pepper hotel concierge robot by SoftBank Robotics

July 2, 2021by David Klemt David Klemt No Comments

Restaurant Tech Map Illustrates Innovation

Restaurant Tech Map Illustrates Innovation

by David Klemt

The hospitality industry’s embracing of new technologies is experiencing rapid and welcome acceleration in less than two years.

In comparison to the restaurant technology map by TechTable and Better Food Ventures from 2019, there are two entirely new categories: Shared / Ghost Kitchens, and Food Safety / Quality.

More than a dozen platforms on the 2021 map from TechTable and Culterra Capital (sponsored by Back-of-House) now fall into those two categories.

Changing Landscape

It’s a sign of current industry trends and what will matter to guests moving forward that ghost kitchens and food safety are emerging as separate tech segments.

Obviously, the pandemic didn’t create the ghost kitchen category. However, it did fuel a meteoric rise in delivery and takeout. In turn, ghost kitchens are more prevalent than ever.

After all, a former Uber executive Travis Kalanick owns CloudKitchens and Applebee’s is testing a ghost kitchen pilot program.

What was once the domain of murky, unpermitted virtual brands is now its own successful business model.

However, today’s guest isn’t concerned solely with convenience. In general, guests now take their health and safety more seriously since the pandemic

Tech platforms that can ensure the food guests are consuming is safe will ease some concerns.

Increase in Platforms

Again, in comparison to just two years ago, the acceleration in new tech for the industry is astounding. It’s also long overdue.

As a whole, the hospitality industry has been surprisingly slow to take on new tech. Although, it’s fair to say that there wasn’t much new to adopt until somewhat recently.

Now that there’s more to try out, operators seem keen to embrace tech that can help them streamline operations; improve inventory monitoring and ordering; hire employees and manage teams; engage with and market to customers intelligently; and much more.

Even better, the above map doesn’t include all of the available platforms. That’s excellent news as it means operators have an increasing number of choices to help improve their business in every category of operation.

For example, Barventory isn’t listed within the Purchasing / Inventory / Ordering segment. The platform makes taking inventory, gaining a real-time inventory snapshot, and efficient ordering a breeze. Barventory also features the world’s first live keg scale.

It’s challenging to find positives from the past 14 to 15 months. However, one good thing may be the leaps in technology our industry is experiencing.

If they continue, these innovations may make it easier for operators and their employees to recover.

A concept’s tech stack is crucial to operations and will only grow more important moving forward. Whether opting for a full KRG Hospitality package or the Mindset program, we can help operators make informed tech selections.

Map by TechTable and Culterra Capital, sponsored by Back-of-House

Featured image: Pepper by SoftBank Robotics (photo by Alex Knight on Unsplash)

Vera Wang launches Vera Wang PARTY Prosecco

June 25, 2021by David Klemt David Klemt No Comments

New Sparklers for Summer Celebrations

New Sparklers for Summer Celebrations

by David Klemt

Operators can expect a massive amount of weddings to take place this summer and should angle to land rehearsal dinners and receptions.

After all, one driving element of pent-up consumer demand in Summer 2021 comes from 2020 weddings.

For many, weddings and other big celebrations call for bubbles. Well, just in time for summer celebrations come the releases of three challengers to Champagne’s throne.

Time for a PARTY

There is, perhaps, no designer or brand name more closely associated with weddings than Vera Wang.

The designer behind the eponymous label is largely credited with revolutionizing the bridal industry in the ’90s. Her bespoke wedding dresses remain the top choice for brides around the world. Of course, she also makes couture bridesmaid dresses.

Expanding ever since first dominating the bridal space, a bride can rock a Vera Wang ring and fragrance while wearing her Vera Wang wedding dress, standing across from a groom in a Vera Wang tuxedo and next to her bridal party in Vera Wang bridesmaid dresses.

And now, they can sip a Vera Wang sparkler at their rehearsal dinner and wedding reception.

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A post shared by VERA WANG (@verawanggang)

Earlier this year, the designer announced a limited release collaboration with Chopin Vodka. Now, she’s launching Vera Wang PARTY, a premium Prosecco.

So, you may be done with this phrase at this point, but we tend to drink with our eyes first. PARTY’s matte silver bottle and bright neon yellow lettering are a chic and modern take on sparkling wine presentation. I can already imagine plenty of fashionable brides wanting PARTY bottles on their rehearsal dinner and reception tables.

And while the designer could likely justify pricing her Prosecco in the same range as the best-known Champagne houses, she has instead chosen restraint: the SRP for a 750ml of PARTY is just $25.

The label’s press release sums PARTY up thusly: “It’s what we could all use right now—a little bit of fun, a little bit of joy, and a new way to commemorate life’s meaningful moments.”

Half-size Heavy Hitter

To some, the only thing better than drinking bubbles is drinking rosé bubbles. For them, the pink hue screams, “We’re celebrating!”

Whether that means celebrating nuptials or a return to gathering and socializing this summer, Avaline is ready.

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A post shared by AVALINE (@avaline)

The clean, vegan-friendly wine brand is offering Avaline Sparkling Rosé, sold in 375ml bottles. This brand-new, small-run sparkler is just $25 per bottle.

Sparkling Rosé joins original Avaline labelmates Red and White, along with more recent releases Rosé and Sparkling.

Interestingly, it isn’t just Avaline’s focus on transparency building their deeply loyal fanbase. The Cameron Diaz and Katherine Power brand listens to their consumers to learn what to release next. After the release of Avaline Sparkling, the label’s community requested a sparkling rosé expression.

Avaline says people can expect rose petals, stone fruit and a hint of pomegranate on the nose and berry lemonade, tart peaches, and floral flavors.

Along with the rest of the Avaline lineup, Sparkling Rosé is sure to be popular during Summer 2021 weddings and other celebrations.

Vintage Vino

For vintage-loving sparkler fans, the latest Sonoma-Cutrer special release is the sip of this summer.

Sonoma Cutrer Grand Cuvée Late Disgorge 2014 Sparkling Chardonnay is a 60-40 blend of Chardonnay and Pinot Noir.

Per Sonoma-Cutrer, drinkers Grand Cuvée Late Disgorge features red apple and pear most prominently on the nose. However, that aroma is complimented by notes of hazelnut, brioche bread, mineral, and Meyer lemon.

On the palate, expect apple fruit, nut, and light strawberry flavors balanced by Sonoma-Cutrer’s hallmark high acidity. Rich and complex without overwhelming the palate, Grand Cuvée Late Disgorge pairs well with light summer fare such as oysters, salmon caviar, and fruit tarts.

This stunning bottle of California sparkling carries an SRP of $43 per bottle ($34.40 for Club Cutrer members).

Big Event Business

In America, the wedding industry generates around $60 billion annually. That number doesn’t even include honeymoons, an industry in and of itself that can be worth up to $8 billion per year.

Obviously, restaurant, bar, hotel and event space operators should find those values compelling.

Operators capable of delivering on special events should be angling to land rehearsal dinners, wedding receptions, and even engagement celebrations, bachelor, and bachelorette parties.

However, doing so means running a tight ship that pays attention to the details and delivers top-level service; developing relationships with wedding and event planners, and concierges; and keeping on top of current wedding and wedding-related trends.

Generating revenue after the horror show of 2020 and the first half of 2021 requires adapting operations. Moving into the event space—weddings, for example—can prove very lucrative.

Image: Vera Wang

Hand holding United States of America passport

June 22, 2021by David Klemt David Klemt No Comments

Third-party Vaccine Passports on the Way

Third-party Vaccine Passports on the Way

by David Klemt

Operators will likely have to further wade into politics if so-called “vaccine passports” become standard.

If recent reporting is accurate, several platforms will bring vaccine passports to market.

The hospitality, lodging and travel industries have been thrust into politics since for several years now. Unfortunately, the pandemic has only made the situation more precarious.

Dangerous Waters

For many operators, navigating today’s politically-charged atmosphere is an unwelcome development.

It’s bad enough that hospitality, lodging and travel have been thrown into utter chaos for well over a year. America and Canada have lost tens of thousands of restaurants and bars. Operators able to survive have lost millions of workers.

Too many people have lost jobs, savings, homes, and any sense of stability in their lives. Mental health, as a result, is on the decline for many people.

Unfortunately, all of those awful things are being exacerbated by politics. In America in particular (if reports are accurate), politics have severely divided the country.

Covid-19 safety protocols were politicized immediately. Restaurant, bar, hotel and travel workers found themselves playing pandemic police, putting them in dangerous situations.

If vaccine passports become standard, operators will find themselves deeper in the political quagmire. Workers will likely face a greater risk for confrontations with hostile guests.

What’s a Vaccine Passport?

In short, a vaccine passport is a way for someone to prove they’ve received a Covid-19 vaccine.

Per recent reports, the Biden administration has said they have no plan to implement federal vaccine passports.

However, several states have already banned this form of proof of vaccination. These include: Alabama, Arizona, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Montana, North Dakota, South Carolina, South Dakota, Texas, Utah (but private companies can require workers to get vaccinated), and Wyoming.

So far, two states—Hawaii and New York—have implemented vaccine passports. As far as the other states, vaccine passports are not a requirement or haven’t been banned yet.

New York’s vaccine passport, Excelsior Pass, was developed by IBM. A vaccinated New York resident downloads the app, a business owner downloads the scanner app, and vaccination status can be confirmed. Similar apps are believed to be in the works.

Again, however, many states have banned these apps.

What Does this Mean for Businesses?

If vaccine passports are banned fully where an operator does business, the decision has been made for them.

However, some bans relate only to government entities—businesses can require proof of vaccination.

And if a state doesn’t prohibit vaccine passports at all? The situation can be even more challenging for operators.

Operators eager to protect their workers and guests from infection may welcome vaccine passports. Some operators may feel these passports are an invasion of privacy and reject them. Still others may view them as a potential source for harassment and discrimination.

Should an operator require vaccine passports, they should expect backlash that could directly impact business. Operators who prohibit the use the vaccine passports may be viewed as “irresponsible” and also face backlash

Once again, the pandemic has put operators in several industries in no-win situations. Operators should consider their vaccine passport plan and the messaging around it now.

Image: Levi Ventura on Unsplash

"Yes, we're open" sign in restaurant or bar window

June 18, 2021by David Klemt David Klemt No Comments

Update Your Business Info Now!

Update Your Business Info Now!

by David Klemt

Restrictions are relaxing and people are returning to at least a form of their pre-pandemic lives. Operators need to review and update their information.

People face a flood of confusing or vague information every day—restaurants and bars don’t need to add to it.

In other words, operators need to make sure guests are getting accurate information when they search for their businesses.

This is particularly relevant right now with summer upon us and Father’s Day in two days.

Are You Open?

Cities, states and provinces are opening things up throughout North America.

In Canada, British Columbia, Ontario, and other provinces are in the midst of reopening plans and. Some provinces are also reopening their borders to their Canadian neighboris. Some restrictions remain and provinces aren’t fully open, but they’re on their way.

And in America, more than half of states are considered open fully: Alabama, Alaska, Arizona, Arkansas, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Wisconsin.

Restrictions that remain in place in some provinces and states relate to dining. For example, outdoor dining returned to Ontario, Canada, a few days ahead of schedule. Unsurprisingly, people flocked to restaurants and bars with outdoor dining areas.

Of course, that’s a long-overdue and welcome development. However, such relaxing of restrictions exposes an issue: People aren’t sure if businesses are open, what hours they’re open, and what menu items are available.

Update Your Information

It should go without saying but I’ll say it anyway: The past 15 months have been a horror show for operators.

So, it’s understandable that some operational discipline has slipped. Now’s the time to fix that and focus on the details.

Guests want to know what restaurants and bars are open. They want to know when they’re open. And they don’t want any surprises about menu item availability.

Of course, operators can manually review and update or edit their online listings. An operator can also task a manager or worker with that responsibility.

There are also platforms out there that make updating pertinent business information a much less overwhelming job.

Marqii, a paid service with three pricing tiers, manages several important details quickly and easily. Operators can use Marqii to update their menus across more than 75 sites; manage their location data, including hours of operation; and review and respond to reviews across several platforms, depending on the tier chosen.

Packages are priced per location and a business is charged monthly. There are similar solutions out there but Marqii is a great place to start.

We live and operate in the Convenience Era. Make it easy for your guests to visit and spend their money with you.

Image: Tim Mossholder on Unsplash

June 14, 2021by David Klemt David Klemt No Comments

Guest Journey: Acquire, Engage, Retain

Guest Journey: Acquire, Engage, Retain

by David Klemt

What if you could change your operational mindset for the better in the time it takes to enjoy a cup of coffee?

SevenRooms is confident they can help you do exactly that.

The SevenRooms Coffee Break series tackles one important operational element per 20-minute webinar.

Time for a Coffee Break?

It’s no secret that we’re fans of SevenRooms here at KRG Hospitality. In addition to supporting the actual platform, we’re always eager to share their data-driven reports and insights.

CEO Joel Montaniel is the guest on episode 24 of our Bar Hacks podcast. (You can—and should—listen to the episode on Spotify, Apple Podcasts, or wherever you listen to podcasts.)

Given how much SevenRooms values collecting and sharing data that can improve operations industry-wide, it’s not a surprise that they also offer informative webinars.

So far, there are three webinars in the Coffee Break series. And, of course, each shares a way that operators can improve their business.

That’s certainly welcome as we emerge from stay-at-home orders, ease restrictions, and welcome more guests.

The current entries focus on what SevenRooms is dubbing the Restaurant Renaissance. As Doug Radkey, president of KRG Hospitality says, we can take two paths leading to the post-pandemic world.

One, we can recognize that the industry needs an overhaul, making improvements for operators, workers and guests.

Two, we can learn nothing, do nothing, and watch the industry collapse.

Restaurant Renaissance

Call it what you prefer: the Restaurant Renaissance. The New Roaring Twenties. Re-emergence. The New Normal. The Post-pandemic World.

Sure, it’s cool to have a catchy label to slap onto unique eras. It’s better to have a clear plan and path for moving forward.

To that end, SevenRooms identifies four key factors driving what they’re calling the Restaurant Renaissance:

Vaccines
Warmer weather
Pent-up consumer demand
Restrictions lifting

Alexa Detzi, director of Enterprise Success at SevenRooms, addresses these elements in the first Coffee Break webinar, “Acquire.”

We’ve said many times that operators need to prepare for an explosion in consumer demand and guest traffic. In addition, we’ve made it clear that we’ll most likely experience a severe drop-off in traffic after the initial demand wanes.

Of course, there are several ways things might play out in the New Normal. However, huge traffic in many markets followed by a drop makes the most sense.

Get Ready

The first three SevenRooms Coffee Break webinars focus on the guest journey:

I highly recommend signing up and watching each webinar, sooner rather than later. Guests are already being subjected to a cacophony of marketing overtures—you need to cut through the noise.

We Want to Help You

Like SevenRooms, KRG Hospitality is dedicated to helping operators.

If you’re seeking to open a new business, whether your first venue or an expansion, should also download our 2021 Restaurant Start-up Cost Guide & Checklist.

And for operators looking more direct and guided assistance for improving your business, we also offer KRG Mindset.

Next time you have 15 or 20 minutes to yourself, check out our Solutions and Resources pages, reach out, and let’s set up your Roadmap to Success.

Image: Garrhet Sampson on Unsplash

Stay Weird neon sign with purple background

June 2, 2021by David Klemt David Klemt No Comments

Stand Out with Weird Holidays: June

Stand Out with Weird Holidays: June

by David Klemt

Want to stand out from from other restaurants and bars in your area? Then commit to keeping it weird.

Several “holidays” are set against every date on the calendar, and June is no exception. These holidays range from mainstream to food-centric to weird.

Focus on the latter to raise eyebrows, carve out a niche for your restaurant or bar, and attract more guests. Why do what everyone else is already doing?

Of course, you shouldn’t try to celebrate every holiday, weird or otherwise. And this month’s list in no way includes every odd holiday.

Focus on the days that are authentic to your brand; resonate with your guests; and help you grab attention on social media.

For last month’s list, click here.

June 3: National Egg Day

How are your sour cocktails? Celebrate the egg on this day by featuring your egg white-powered drinks.

June 7: National VCR Day

Leverage nostalgia by showcasing an outdated way to enjoy movies and TV shows. If you really want to immerse yourself and your guests in this holiday, find a VCR and some movies on VHS, come up with some themed cocktails, and lure in nostalgia-thirsty guests. (Make sure you have the proper licenses in place to play music, movies, TV shows, etc.)

June 8: National Name Your Poison Day

Talk about a perfect holiday for a bar! This is an excellent day to design a call promotion around or to highlight your bar team’s ability to create delicious cocktails on the fly based on guests’ spirits preferences.

June 13: International Axe Throwing Day

Are you one of the operators who has introduced axe throwing to your restaurant, bar or eatertainment venue? Then do we have the holiday for you and your guests…

June 16: Bloomsday

This holiday honors revered Irish writer James Joyce. The story goes that Joyce’s favorite dram was Jameson, so get those bottles and specials ready.

June 18: National Splurge Day

Have some high-dollar spirits, beers, wines and dishes? Promote them loudly on this day and encourage your guests to truly treat themselves.

June 24: National Bomb Pop Day

There’s more than one way to celebrate this fun, refreshing and nostalgic holiday. For instance, there are various versions of the Bomb Pop cocktail. Another example is offering housemade boozy Bomb Pops. And then you can always simply garnish drinks with Bomb Pops.

June 25: National Take Your Dog to Work Day

If you have a dog-friendly restaurant, bar or lounge, encourage people who have brought their dogs to work to pop in for a well-deserved bite and drink.

June 30: Social Media Day

Feel like your social media savvy could use some work? Want your guests to plaster your business all over social? Use this holiday to improve your social media skills, add followers, and increase engagement with the help of the people who support your business.

Image: Dan Parlante on Unsplash

Covid-19 vaccine vial on blue background

May 31, 2021by David Klemt David Klemt No Comments

EEOC Clarifies Vaccine Stance

EEOC Clarifies Vaccine Stance

by David Klemt

American employers have the right to require Covid-19 vaccination as a condition of employment.

This is according to recent clarifications from the Equal Employment Opportunity Commission (EEOC).

Perhaps learning from yet more missteps from the Centers for Disease Control and Prevention, the EEOC is making their position clearer.

Requirements

Per the EEOC, requiring workers to get a Covid-19 vaccine doesn’t violate federal law.

However, an employer failing to provide “reasonable accommodation” in accordance with the Americans with Disabilities Act would be illegal.

According to the EEOC’s guidance update:

“Federal EEO laws do not prevent an employer from requiring all employees physically entering the workplace to be vaccinated for COVID-19, so long as employers comply with the reasonable accommodation provisions of the ADA and Title VII of the Civil Rights Act of 1964 and other EEO considerations. Other laws, not in EEOC’s jurisdiction, may place additional restrictions on employers.”

Additionally, employers who offer on-site vaccinations take on an additional responsibility. They must keep confidential any personal medical information gleaned during employee pre-vaccination screenings.

Of course, the agency’s guidance isn’t only for employers. Employees can access a fact sheet explaining pandemic-specific protections that are in place.

Incentives

The EEOC’s update also addresses the right for employers to offer employees vaccine incentives.

In short, the agency says incentives are legal as long as they’re not coercive. Of course, legal experts will argue that one person’s perception of coercion will differ from another’s.

Really, the only example the EEOC provides for what may constitute a coercive incentive is “a very large incentive” that may make an employee “feel pressured to disclose protected medical information.”

Per a survey by Arizona State University and the Rockefeller Foundation, two-thirds of employers plan to offer vaccination incentives rather than mandates. However, nearly half say they’ll implement mandates if incentives don’t work. Only one-third of survey respondents don’t plan to impose vaccination requirements on employees.

Challenges

Look, we all know America is a litigious society. Given that, it shouldn’t come as a surprise that some states have already banned vaccine requirements and passports.

Nor should it be a shock that lawsuits have been filed by employees challenging the legality of vaccine requirements. At least half of US states have introduced bills seeking to seek to limit COVID-19 vaccine mandates.

Operators have a lot to consider when it comes to vaccine requirements and incentives. For example, offering the incentive that fully vaccinated employees can go maskless at work while non-vaccinated workers must wear masks can be a form of discrimination.

Beyond legal challenges, operators must also contend with public perception and backlash. With the divisions plaguing America currently, operators have a lot to think about before requiring Covid-19 vaccines for employees. While some guests will view such requirements as a responsible move that protects employees, guests and the public, others will see it as a massive violation of personal freedoms and a form of tyranny.

Truly, this is a time when operators must seriously draw on their leadership abilities, empathy, and emotional intelligence.

Clearly, the topics of vaccine requirements and vaccine incentives necessitate careful consideration. This is an important leadership moment that hinges on an operator’s understanding of their team, their guests, and the market in which they operate.

Do not make vaccine decisions lightly.

Disclaimer

This content is for informational purposes only, and should not be used as legal or other advice. This article does not constitute legal advice, nor does any information constitute a comprehensive or complete statement of the matters discussed or the law. This information is of a general nature and does not address the circumstances of a specific individual or entity. The reader of this information alone assumes the sole responsibility of evaluating the merits and risks associated with the use of any information before making any decisions based on such information.

Image: Daniel Schludi on Unsplash

Wad of dollar bills with red rubber band

May 28, 2021by David Klemt David Klemt No Comments

State of the RRF: By the Numbers

State of the RRF: By the Numbers

by David Klemt

The “tale of the tape” of the Restaurant Revitalization Fund tells a clear story: the RRF needs an injection of tens of billions of dollars.

Clearly, $28.6 was nowhere near enough to award every eligible restaurant and bar with a grant.

In fact, the RRF would need at least another $50 billion to serve all eligible applicants.

The Numbers

First, the Small Business Administration is to be commended for setting up the RRF portal, making the application process clear, and handling applications well.

However, there’s one glaring issue with the RRF and the review and awards process. I’ll get to that in the next section.

Per the National Restaurant Association, more than 362,000 applications were submitted via the RRF portal.

In total, the applications add up to $75 billion in grant requests. Again, the RRF was funded by the government with $28.6 billion. It doesn’t take a mathematician to see that the fund was severely underfunded.

Controversy

Last week, a number of Republican members of Congress sent a letter to the SBA. The gist of their message was that the RRF’s closure was premature. Therefore, the group concluded, non-priority applicants wouldn’t receive grants or even have the opportunity to apply for grants.

In the letter, which can be reviewed here, the authors also took shots at Democrats, the Biden Administration, and undocumented immigrants.

Setting politics aside, the announcement of the RRF’s portal closure was inarguably premature. The application process was first opened on Monday, May 3. For the first 21 days, the SBA announced that while all eligible entities could apply, only priority applicants would be processed and awarded grants.

However, the RRF portal closed to applications on Monday, May 24…21 days after it first opened. The members of Congress who penned the letter to the SBA have a point: the SBA closed the RRF portal after only operating within the priority window.

Now What?

There’s no other way to put this: The RRF needs more funding.

Essentially, it needs twice the funding it had when it was first seeded. There’s zero guarantee that Congress will address this matter, but at least a handful of lawmakers are aware of the dire situation.

Two weeks ago, the NRA launched a petition urging the government to replenish the RRF. Of course, the RRF also needs to be reopened for applications, and the application process needs to be open to all eligible applicants.

There’s no promise the petition will achieve the desired result but we must do something. Click here to sign the petition and tell Congress the RRF needs to be replenished and reopened.

Image: Karolina Grabowska from Pexels