Operations

by David Klemt David Klemt No Comments

BUNNYFiSH: A Lesson in Collaboration

BUNNYFiSH: A Lesson in Collaboration

by David Klemt

A cartoon fish wearing bunny ears, hovering near the world-famous "Welcome to Las Vegas" sign

Honestly, I’ve seen stranger things than a floating fish wearing bunny ears while living in Las Vegas.

Architect Craig Sean Palacios, co-founder of BUNNYFiSH studio in Las Vegas, told a compelling story about professional relationships during HD Expo 2024.

Palacios and his business partner worked closely with former Zappos CEO Tony Hsieh for a decade. Titled “Meaningful Collaboration: A Decade with Tony Hsieh,” the presentation was an interesting look into a unique client relationship.

When BUNNYFiSH studio first started, Palacios and Wichmann were working out of The Beat Coffeehouse. Interestingly, this space, located in Downtown Las Vegas, was an example of adaptive reuse architecture. The space was transformed from a quick-care medical center into a coffeehouse, with small exam rooms converted into small offices.

As Palacios recalls, he was wrapping up for the day about 14 years ago when someone popped their head into the BUNNYFiSH office. This person asked what Palacios was doing, and he answered that he was leaving for the day. Clarifying their question, the person inquired about BUNNYFiSH.

After explaining the studio’s overview and sharing some project details, Palacios was told the person would be back. Well, that person did return, and he had a few more people in tow. One of these people, as I’m sure you’ve guessed, was Hsieh.

Eventually, the group traveled from The Beat to the streets of Downtown Las Vegas, and through the doors of Hsieh’s apartment. Along with people milling about was a wall loaded with Post-It Notes. Written on these notes were words like “speakeasy” and “restaurant.” As an architect, Palacios instinctively began arranging the notes to create logical, cohesive concepts.

From there, Hsieh led Palacios to an empty lot, and asked what the architect would put there. Palacios saw a grocery store. Hsieh, a butterfly farm.

It was in that moment, said Palacios, that he began to understand Hsieh. After what was essentially an entire day with Hsieh, BUNNYFiSH studio, the Zappos CEO, and his team would go on to discuss architecture for several months.

Speaking the Same Language

During at least one conversation, Hsieh made the statement that he didn’t “speak architect.” And to this day, Palacios isn’t quite sure if that was a completely truthful claim.

However, he was told that no architect had ever really been able to make Hsieh happy up to that point. So, it appears that the two had found an effective method of communication, and Hsieh appeared happy to work with BUNNYFiSH studio.

That method did take time to develop, of course. Take, for instance, the transformation of a building in Downtown Las Vegas that Hsieh had acquired. When Palacios asked what Hsieh wanted, the latter told the former to “go to the W in Austin.”

That was the whole of the instruction.

So, with that as the entire brief, BUNNYFiSH went to the W in Austin. And, as Palacios explained, they did basically everything one could have done at the hotel at that time. Upon their return to Las Vegas, Palacios made the call to simply let Hsieh find him at The Beat when he was ready.

Sure enough, that’s what happened a few days later. Basically, Hsieh wanted BUNNYFiSH to transform his building into the W in Austin, in a way. When Inspire first opened, I visited the speakeasywhich required biometric access, I believe via a retinal scanand I would later watch Hey, Bartender in the space’s theater/TED Talk area, hosted by Dushan Zaric, co-founder of Employees Only.

Making Things Happen

Hsieh would go on to work with BUNNYFiSH on more projects, large and small. In doing so, they would all transform the Downtown Las Vegas landscape and culture.

To provide one large-scale example, BUNNYFiSH took on the Gold Spike’s metamorphosis from old-school, outdated casino to nightlife, social, and event space. This is another concept with which I’m familiar, having hosted an event there with the Bar & Restaurant Expo team when the event was still known as Nightclub & Bar.

There was also a small downtown motel conversion. Since “nobody needs parking in Las Vegas,” the parking lot was ripped out and a six-hole putt-putt course was installed. Of course, it wasn’t that simple; each hole was a version of a world-famous counterpart.

Anyone who has spent time in Downtown Las Vegas will be familiar with another BUNNYFiSH-Hsieh collaboration: Container Park. However, it’s a dog park project that really encapsulates the real message within Palacios’ story.

Per the Las Vegas native, Hsieh was a part of most of the meetings between his team and BUNNYFiSH. From time to time, he’d pop his head into a meeting with a question or idea, but that was about it.

Well, during one meeting, Hsieh popped up and asked if it was possible to build the world’s largest functional fire hydrant. By now several years into the relationship, Palacios knew the answer: “Yes.”

As he explained, he had learned to not say no to Hsieh. That may paint the entrepreneur in a tyrannical light. That isn’t, however, what Palacios meant.

Asking Why

While some clients can accept hearing “no” after they’ve asked a question, others need more. They require a why.

Sure, that’s sometimes because a client is, to put it diplomatically, “particular.” But as Palacios learned over the course of a decade-long collaborative relationship with Hsieh, sometimes “why” is a tool.

That three-letter question can spark creativity. Creativity in getting around but not running afoul of building codes, creativity in material or site selection, creativity in bringing an idea into the physical world.

While “no” is, indeed, a complete sentence, in the context of developing a restaurant, bar, hotel, etc., it can be a project killer.

Further, once one side of a business relationship comes to understand how the other interprets a why, communication grows stronger. Instead of just a conversation-halting “no,” collaborators learn to anticipate. So, that “no” starts out as a, “No, we can’t/shouldn’t do it that way, here’s why, here’s our solution.”

That’s a far stronger and healthier way to communicate and work together.

Real-world Example

Let’s look at a BUNNYFiSH project in Reno, Nevada. Traditionally, a guest room has a desk. And, traditionally, you’d be told by a hotel executive that the desk is so guests can write letters.

Well…which guests are actually doing this? Why are hotels still putting the same desk designs in their rooms?

Those two questions led to a room design featuring a reinvented desk. The BUNNYFiSH desk design is now the standard for the hotel group.

However, that desk design update pales in comparison to another change Palacios suggested.

Why, Palacios asked, did this hotel need a conference space? And why not transform the space that would traditionally be a conference space into…a bocce bar. A very large bocce bar, at that.

As Palacios explained the moment he posed those questions to hotel executives (a.k.a. major BUNNYFiSH clients), he was first met with silence. But that silence eventually turned to belief in Palacios and BUNNYFiSH, and there is in fact a bocce bar where one would expect a conference space.

According to Palacios, the bar is generating more revenue than the client projected they’d see from the conference area.

Takeaways

Too many people forget that “relationship” is the operative word in “business relationship.”

Had BUNNYFiSH seen their burgeoning relationship with Hsieh as solely transactional, they would likely have been relegated to the same pile of architects that hadn’t managed to satisfy Hsieh.

However, all parties developed an understanding of one another. They learned how to communicate with one another, and the results were incredible.

Further, Palacios and BUNNYFiSH learned to adapt that communication style for future clients, again to wonderful results.

Hospitality is a people business. As some people like to say, most problems are people problems. Going further, people problems are often communication problems.

Learning how to communicate and collaborate can solve a multitude of problems, and help develop long-term relationships.

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

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5 Books to Read this Month: May 2024

5 Books to Read this Month: May 2024

by David Klemt

Flipping through an open book

Our inspiring and informative May book selections will help you improve your life and outlook, get a handle on operations, and build your leadership team.

To review the book recommendations from April 2024, click here.

Let’s jump in!

Now That I have Your Attention: 7 Lessons in Leading a Life Bigger Than They Expect

This book is listed as a pre-order but I was able to purchase mine a while back, and it arrived a couple of weeks ago. Nicolas Hamilton has overcome a lot in his life, to put it mildly. He has gone from being told he’d never walk to defying that expectation and driving in the British Touring Car Championship. In Now That I Have Your Attention, you’ll learn lessons, like rebelling against the rulebook, always walking the hardest path, and seeing rock bottom and never going back.

From Amazon:Now That I Have Your Attention follows Nicolas’s remarkable journey and shares the valuable, tough, and often surprising lessons learned throughout his life.

“Nicolas’s journey has at times been hostile and has forced him to navigate periods of anger and resentment, but by building his mental strength and pushing himself beyond the physical limits of what anyone had ever expected of him, Nicolas has changed his life – and believes you can too.”

Pre-order your copy today.

Creativity, Inc. (The Expanded Edition): Overcoming the Unseen Forces That Stand in the Way of True Inspiration

Among other lessons, Creativity, Inc. drives home the importance of building an incredible team. However, that also includes building a culture of support and development.

From Amazon:The co-founder and longtime president of Pixar updates and expands his 2014 New York Times bestseller on creative leadership, reflecting on the management principles that built Pixar’s singularly successful culture, and on all he learned during the past nine years that allowed Pixar to retain its creative culture while continuing to evolve.

Purchase here.

The Cocktail Parlor: How Women Brought the Cocktail Home

On the surface, this is a recipe book. There are 40 “main” cocktail recipes along with 100 variants. But when we really dive in we see that The Cocktail Parlor is about giving women credit for shaping the past and present of cocktail culture.

From Amazon: “Journeying through the decades, this book profiles a diverse array of influential hostesses. With each historic era comes iconic recipes, featuring a total of 40 main cocktails and more than 100 variations that readers can make at home. Whether its happy hour punch à la Martha Washington or a Harlem Renaissance–inspired Green Skirt, readers will find that many of the ingredients and drinks they’re familiar with today wouldn’t be here without the hostesses who served them first.”

Pick it up today!

The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It

Do you feel like you’re working at your business but not on your business? If you have a sense that you feel more like you’ve created a job for yourself than a business, this book may just help you turn things around as an entrepreneur.

From Amazon: “An instant classic, this revised and updated edition of the phenomenal bestseller dispels the myths about starting your own business. Small business consultant and author Michael E. Gerber, with sharp insight gained from years of experience, points out how common assumptions, expectations, and even technical expertise can get in the way of running a successful business.”

Order here.

Traction: Get a Grip on Your Business

As Doug Radkey, founder and president of KRG Hospitality says, a leader in this space needs strategic clarity. This book can provide insights into how to achieve that clarity, improve processes, and build a leadership team that can actually lead others.

From Amazon: “In Traction, you’ll learn the secrets of strengthening the six key components of your business. You’ll discover simple yet powerful ways to run your company that will give you and your leadership team more focus, more growth, and more enjoyment. Successful companies are applying Traction every day to run profitable, frustration-free businesses—and you can too.”

Buy it today.

Image: Mikołaj on Unsplash

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Which Chains are America’s Favorites?

NRN & Technomic Identify America’s Favorite Chains

by David Klemt

A cheeseburger with chicken patties, pizza, and steak on it

Alright, which one of you maniacs out there is going to make this AI-generated chicken-patty-pizza-steak burger a reality and put it on your menu?

Toward the beginning of 2024, Nation’s Restaurant News collaborated with Technomic to identify America’s favorite restaurant chains.

To my understanding, this is the first such partnership between the independent foodservice publication and the foodservice intelligence platform.

Providing more than just a glimpse into America’s favorite chains, the rankings span several categories. For instance, the partnership between NRN and Technomic reveals the top QSRs, along with the country’s favorite fast-casual, family-style, and miscale restaurants.

However, the top three chains across more granular categories are also identified. Examples include America’s favorite chicken, pizza, burger, and Mexican restaurants.

In fact, I’m going to kick things off with the more specific, specialized categories. Then, I’ll move into the broader segments.

That said, I encourage you to review NRN‘s article revealing America’s favorite midscale, casual, QSR, etc. restaurants for yourself. Written by Joanna Fantozzi, the piece is full of valuable insights beyond simple rankings.

Further, you may find it interesting to compare these rankings to the results of BrandVue’s Most Loved Eating Out Brands 2023 report, which we reviewed here.

Cheers to NRN and Technomic! Here’s to hoping that this becomes an annual release.

Beverage or Snack

  1. Tropical Smoothie Cafe
  2. Smoothie King
  3. Jamba

Burger

  1. Culver’s
  2. In-N-Out
  3. Freddy’s Frozen Custard & Steakburger

Chicken

  1. Chick-fil-A
  2. Jollibee
  3. Raising Cane’s

Italian (FSR)

  1. Carrabba’s Italian Grill
  2. Maggiano’s Little Italy
  3. Mellow Mushroom

Mexican

  1. Chuy’s Tex-Mex
  2. Torchy’s Tacos
  3. Moe’s Southwest Grill

Pizza

  1. Papa Murphy’s
  2. Marco’s Pizza
  3. Cici’s Pizza

Sandwich

  1. Jersey Mike’s Subs
  2. Newk’s Eatery
  3. Jason’s Deli

Steak

  1. Ruth’s Chris Steak House
  2. Fleming’s Prime Steakhouse
  3. Longhorn Steakhouse

Varied Menu

  1. Seasons 52
  2. Bahama Breeze Island Grille
  3. Cooper’s Hawk

QSR

  1. Dutch Bros Coffee
  2. Topical Smoothie Cafe
  3. Smoothie King
  4. Cold Stone Creamery
  5. Chik-fil-A

Fast Casual

  1. Jersey Mike’s Subs
  2. Newk’s Eatery
  3. Jason’s Deli
  4. McAlister’s Deli
  5. Sweetgreen

Family Style

  1. First Watch
  2. Cracker Barrel
  3. Golden Corral

Casual

  1. Seasons 52
  2. Bahama Breeze Island Grille
  3. Bonefish Grill
  4. Longhorn Steakhouse
  5. Cooper’s Hawk

Midscale

  1. First Watch
  2. Cracker Barrel
  3. Golden Corral
  4. Shoney’s
  5. Black Bear Diner

Favorite Chains: Overall

  1. Ruth’s Chris Steak House
  2. Season 52
  3. Dutch Bros Coffee
  4. Fleming’s Prime Steakhouse
  5. Bahama Breeze Island Grille
  6. Longhorn Steakhouse
  7. Cooper’s Hawk
  8. Tropical Smoothie Cafe
  9. The Capital Grille
  10. Smoothie King

When it comes to this list of the top-ten favorite chain restaurants, Technomic data scores a number of crucial insights.

Click here to see how each of these industry leaders ranked in:

  • Service and hospitality
  • Unit appearance and ambience
  • F&B
  • Convenience and takeout
  • Value

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

KRG Hospitality. Restaurant Business Plan. Feasibility Study. Concept. Branding. Consultant. Start-Up.

by David Klemt David Klemt No Comments

Slice Releases 2024 Report

Indie Pizzeria App Slice Releases 2024 Report

by David Klemt

Slice of pepperoni pizza on a plate, on top of a table

Still the most popular pizza topping.

It’s finally here, one of our favorite food-forward hospitality industry reports providing operators with valuable insider insights.

In keeping with tradition, Slice released their 2024 Slice of the Union report the day before National Pizza Day. Truly, this is one of the reports I most look forward to each year.

As one would expect, the fifth-annual Slice of the Union is stuffed with helpful information.

Before we dig in, a quick rundown of Slice. The platform serves all 50 states and works with more than 20,000 independent pizzerias. To put that in context, that’s a network of pizzerias in the US larger than Domino’s, Little Caesars, and Pizza Hut combined.

If you’re an independent pizzeria owner and you have yet to partner with Slice, I encourage you to look into doing so. Should a partnership with Slice be feasible, it should increase brand awareness, engagement, traffic, and revenue to a notable degree.

Seasoning

Kicking things off, Slice sprinkles a bit of trivia onto this year’s report.

Last year, consumers apparently gorged themselves on pizza. How much was eaten? Just over 29,000 tons.

Providing context, Slice says to imagine 11,572,064,136 pennies. That’s a Scrooge McDuck dive-worthy pile of coins.

However, one category of pizza experienced a drop in popularity last year. According to Slice, pizzerias saw a 5.21-percent dip in vegan pizza orders.

Now, on to toppings.

Toppings

There’s a reason I chose a photo of a single slice of pepperoni pizza for this article.

Operators who track their data probably already know what I’m about to say: According to Slice, pepperoni is the most popular pizza topping in the US.

This is followed by, in descending order of popularity, mushrooms, sausage, extra cheese, onions, bacon, and black olives. For those wondering, kale was one of the “least-loved” toppings last year.

If you read through the 2023 Slice of the Union report or read our article reviewing it, you know they made a couple of trend predictions. Last year, Slice guessed that pickle pizzas would be in demand. Well, they were right. Orders for pickle pizzas jumped by 32 percent in 2023.

So, when Slice makes a pizza-based prediction, it’s probably in your best interest to take it to heart. Oh, waitSlice has a prediction for 2024. According to the platform, tinned fish will be a standout pizza topping this year.

Sauce

In case you’re wondering about how much data Slice has at their fingertips, here’s an interesting bit of trivia. Last year, 4,744 people ordered pizzas with anchovies, garlic, or onions on Valentine’s Day. Alrighty, then.

They also know that orders for pizza with pineapple as a topping saw an increase of nearly six percent in 2023.

Further, the 2024 Slice of the Union reveals the most and least “pizzaful” days of 2023. The former? December 1. And the latter? Thanksgiving.

Last year, Fridays accounted for the most orders, at 23.5 percent. However, only 8.7 percent of pizza orders were placed on Mondays.

For data that’s a bit more esoteric, what if Slice could reveal which Zodiac signs order the most and least pizza? Would this be useful to operators? Honestly, it could be, I suppose. Particularly for those who have loyalty programs and engage with their guests via email and text marketing.

Apparently, a Taurus (April 20 to May 20) is the most likely to order pizza. Conversely, Capricorns (December 22 to January 19) either don’t like placing food orders in general or don’t like eating pizza specifically, because they ordered the least amount last year.

By the way, if you happen to operate a pizzeria in New Jersey, you may want to search for a guest named Dominic. According to Slice, someone named Dominic in NJ placed 348 pizza orders in 2023. Sounds like Dom has earned a special perk from his favorite pizza joint.

Extra Cheese

Pizzeria owners and their teams in Hawaii, Alabama, Oregon, South Carolina, and Montana may have the happiest wallets. That’s because people who ordered pizza for delivery in those five states tipped their drivers the most.

However, people who order pizza in Washington may have slightly lighter wallets than their fellow Americans. That’s because while the average price for a large cheese pizza in the US is $18.33, that number jumps to $25.75 in the Evergreen State.

If you’d like to see the average price for a large cheese pizza in each of the 50 states, click here. As an example, the average price in Nevada (KRG Hospitality’s American HQ is in Las Vegas) is $21.09.

Speaking of price, while Dom in NJ placed the most pizza orders, Frances in New York placed the most expensive order last year: $2,867.07. Frances, I want to attend one of your pizza parties (I think).

Finally, let’s end on data that can help operators when reviewing their labor costs. On average, pizza delivery distance was 9.14 miles in 2023. And, on average, pizzerias completed the process of producing an order and delivering it in 42.5 minutes.

For more insights from the 2024 Slice of the Union, click here.

Image: Sydney Troxell on Pexels

KRG Hospitality. Restaurant Business Plan. Feasibility Study. Concept. Branding. Consultant. Start-Up.

by David Klemt David Klemt No Comments

6 Sips for National Cocktail Day

6 Sophisticated Sips for National Cocktail Day

by David Klemt

The Rémy Sidecar cocktail in landscape orientation

Our friends at Cointreau, Mount Gay, Rémy Martin, St-Rémy Signature, Belle de Brillet, and METAXA want us to share some recipes with you.

And why do these purveyors of fine spirits want you to have these drink recipes? To inspire you and your team to craft a sophisticated National Cocktail Day menu, of course.

Now, you and your team are likely very familiar with Cointreau, Mount Gay, and Rémy Martin. After all, each are among the most well-known liqueurs, rums, and Cognacs on the planet.

However, you may be less familiar with some of the other spirits below. So, I’m going to provide a brief overview. Naturally, I’ll also encourage you to contact your reps so they can taste you and your team on each.

Let’s kick things of with METAXA. If your guests like brandy, they’re probably going to love METAXA. In particular, METAXA 7 Star is a Greek spirit that consists of Muscat wine, wine distillates, and Mediterranean aromatics and botanicals, aged in oak barrels. This is a truly unique spirit; your guests have likely never tasted anything quite like it.

Now, let’s look at Belle de Brillet. This is a French liqueur made with fine Brillet Cognac eau-de-vie and Poire Williams (Williams pears). Really, this is an elegant way to enjoy terroir via two fruits: pears and grapes. From what I can find, it takes 20 Williams pears to produce each bottle of Belle de Brillet.

That brings us to St-Rémy Signature. Also from France, St-Rémy Signature is the marriage of tradition and modern production techniques. For example, Signature undergoes a double-maturation process, unlike many fine brandies. When it comes to terroir, Signature takes people on a tour, as it’s made with dozens of grapes from all over France.

Whether you decide to create an LTO menu with the recipes below or put your spins on these drinks, your guests will thank you for helping them celebrate National Cocktail Day.

Cheers!

The Rémy Sidecar cocktail

The Rémy Sidecar

Fill a shaker with ice, then add first three ingredients. Shake well. Strain into a coupette, and garnish with a lemon peel.

The Original Margarita by Cointreau

The Original Margarita by Cointreau

  • 1 oz. Cointreau
  • 2 oz. Blanco tequila
  • 1 oz. Fresh lime juice
  • Lime wheel to garnish

Prepare a glass by rimming it with salt. Add all ingredients except for garnish to a shaker filled with ice. Shake well, then strain into the prepared glass. Garnish with lime wheel.

Mount Gay Orange Eclipse cocktail

Mount Gay Orange Eclipse

  • 2 oz. Mount Gay Eclipse
  • 1 oz. Fresh blood orange juice
  • 0.6 oz. Sweet vermouth
  • 4 dashes of Angostura Bitters
  • Orange peel to garnish

Prepare a coupe by filling it with ice and setting it aside. Alternatively, keep some coupes in a fridge to have chilled glassware on hand. Fill a shaker with ice, then add first four ingredients. Shake until well chilled, then strain into prepared coupe. Garnish with orange peel.

METAXA Greek Spritz cocktail

METAXA Greek Spritz

  • 1.4 oz METAXA 7 Stars
  • 1.4 oz Prosecco (or other sparkling wine)
  • 0.7 oz Splash of tonic
  • 3 Dashes of peach bitters or fresh peach juice
  • Peach wedge to garnish

Pour METAXA 7 Stars into a wine glass. Add ice, tonic, and bitters or juice to glass, then stir. Top with Prosecco or other sparkling wine. Garnish with peach wedge.

Belle de Brillet Belle Pamplemousse cocktail

Belle de Brillet Belle Pamplemousse

  • 1.75 oz. Belle de Brillet
  • 0.5 oz. Fresh lemon juice (optional)
  • 3.5 oz. Grapefruit soda
  • 1 oz. Prosecco
  • Slice of grapefruit to garnish

Add ice to a glass, then add all liquid ingredients. Stir, then garnish with grapefruit slice.

St-Rémy Signature Rose cocktail

St-Rémy Signature Rose

  • 1 oz. St-Rémy Signature
  • 0.7 oz. Fresh lemon juice
  • 0.3 oz. Grenadine syrup
  • 0.3 oz. Hibiscus syrup
  • 1 Egg white
  • Edible flower to garnish

Add ice and first five ingredients to a shaker. Shake well, then strain into a stemmed or footed glass. Garnish with an edible flower.

Disclaimer: Neither the author nor KRG Hospitality received compensation, monetary or otherwise, in exchange for this post.

Images provided by LaFORCE

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What are You Changing in 2024?

What are You Changing in Your Restaurant or Bar in 2024?

by David Klemt

Restaurant owner reviewing their menu

More fun with AI-generated images. That’s quite the busy bar setup.

Toward the end of last year, Nation’s Restaurant News identified what changes operators chose to make after analyzing their operational data.

The publication surveyed hundreds of operators about how data drove their decisions. This survey was an element of their year-end report, Market Leader Report: The Data-driven Restaurant.

As one would imagine, this report focuses on data collection, analysis, and usage. However, NRN‘s report doesn’t just address the importance of data collection in the F&B space. Rather, they seek to understand if operators are collecting the “right” data; whether they can optimize the data they collect; what metrics they’re tracking; and how they’re acting on all that data.

Simply put, it’s an important report addressing a topic crucial to today’s restaurant and bar operations. Those who want their own copy of The Data-driven Restaurant can download it free here.

While entire report is valuable, the focus of this article is one question and the answers provided. Below, to provide context, is a breakdown of the survey respondents.

The Who

Most of the respondents identified as independent restaurant operators.

  • Indie: 37 percent
  • Chain (franchisee): 21 percent
  • Chain (company owned): 18 percent
  • Multi-concept: 15 percent
  • Single-site operator: 6 percent
  • HQ or brand level of foodservice company: 3 percent

By a slim margin, most survey respondents categorized their restaurants as full service or casual dining.

Perhaps unsurprisingly, the fewest respondents operate in the upscale or fine dining category.

  • Full service / casual dining: 30 percent
  • Fast casual: 28 percent
  • Quick service: 20 percent
  • Midscale / family dining: 15 percent
  • Upscale / fine dining: 7 percent

The What

So, what question caught our attention at KRG Hospitality?

“In the past 12 months, which initiatives did your organization undertake after analyzing data?”

NRN conducted this survey in November 2023. Not surprisingly, respondents mostly made changes to their menus after reviewing their data. Streamlining menus and adjusting prices were two of the biggest operational trends last year, as many operators are no doubt well aware.

That theory is supported by the survey results. Below, the top four answers to the question above.

  • Changed menu prices (48 percent)
  • Removed items from or added items to our menu (47 percent)
  • Improved the way we trained our staff (26 percent)
  • Adjusted our loyalty program’s rewards and/or incentives (24 percent)

Honestly, it’s heartening to see that training is among the top-three data-driven actions operators took last year. And, of course, it’s not shocking that the menu was the focus of the most attention. Streamlining is an effective way to reduce food and labor costs. Further, pricing is always (please excuse the pun) on the menu.

Our question is: What changes, if any, do you plan to implement this year now that we’re headed into Q3?

The What: The Sequel

If the menu received the most attention after operators reviewed their data, what received the least?

Well, it appears marketing fell to the wayside, along with the kitchen. The following are the bottom four answers to the question in the section above:

  • A/B tested marketing campaigns and increased ROI (6 percent)
  • Changed specs on our kitchen equipment or technology (10 percent)
  • Identified lapsed customers and marketed to them (11 percent)
  • Increased throughput in our kitchen during peak periods (13 percent)

Now, I’ll concede that one marketing action found itself in the middle of the pack when it came to this survey question. Upon analyzing their data, 18 percent of respondents identified new potential guests and marketed to those people.

Still, in comparison to making changes to menus, the fewest respondents took marketing action or made changes to the kitchen directly.

Does this mean that menu changes have the greatest impact on guests and ROI? Well, that’s possible. However, I think something else is at play.

Personally, I think collecting data is the easy part. At this point, most platforms serving our industry are collecting data for operators.

But tracking the correct metrics, analyzing the associated data, and knowing what to do after analyzing said data? That’s difficult. It can be overwhelming, which is why it’s so important to build and implement the proper tech stack for a specific concept. This is why one of the services we offer our clients is tech-stack development.

Further, the tech stack needs to be built around an operator and their leadership team. If nobody knows how to use it or what to do with the data they’re collecting, it’s useless.

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

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Loud Luxuries: Martinis and Caviar

Loud Luxuries: Opulent Martinis & Caviar Bumps

by David Klemt

Taking a look at what’s going down in the bar and restaurant world, it appears that luxury sips and bites are the latest darlings in the F&B space.

In particular, I’m talking about the stories going around about $40 Martinis. Oh, and the interest consumers are showing in caviar. Specifically, caviar bumps, though people seem to be craving this luxury bite any way they can get it.

At the risk of coming across as snobby or hipster-ish, Las Vegas has been offering guests caviar bumps at parties and restaurants for several years now. A close friend of mine has hired a caviar bump service for private business events and personal parties on more than one occasion.

To explain, a caviar bump is a much less formal way of consuming salt-cured roe. One takes a small spoon, dabs a bit of caviar in the area of their hand between their thumb and index finger, and licks it off. Contrary to what some people think (probably only once), the caviar isn’t snorted. Although, I’m not here to police how people choose to consume their food.

Interestingly, there are plant-based “caviar” brands on the market. So, vegetarian and vegan guests can get in on the caviar bump fun.

Now, back to the $40 Martinis. If that makes some operators and bartenders raise an eyebrow, their jaws will likely drop when they read what’s next. It’s not difficult to find Martinis that cost well in excess of $100.

This trend is belongs to the “loud luxury” movement. As one can infer reasonably, the phrase describes spending a lot of money on an item or experience because it’s expensive. Engaging in ostentatious spending is the point.

Given the state of many people’s finances these days, such flashy displays are justifiably viewed as vulgar by some. However, if recent stories are to be believed, 2024 is the year of loud luxury.

Get Loud

Or, more accurately, operators should encourage their guests to get loud.

That is, of course, if loud luxury matches the concept and market. Although, having a $40 Martini on a dive bar menu is only silly if it costs an operator money. There’s nothing wrong with putting such a drink on a menu if it doesn’t offend a venue’s base of loyal guests and run them off.

So, what’s in a $40-plus Martini? Pricey booze, put simply. These luxe libations aren’t made with $20 or $30 gins or vodkas. Rather, these spendy sips feature spirits that cost $100 or more.

Further, these trendy, tony tipples pair quite well with caviar bumps. There’s no reason an operator can’t leverage both of these extravagant trends simultaneously. Depending on which caviar is on offer, bumps can command upsell costs of $10 to $20 (or more).

That can mean that an operator’s $40 Martini can become a $50 or $60 Martini-and-caviar pairing experience.

Again, offering guests such an extravagant experience requires careful consideration and execution. Operators need to make an informed decision that includes understanding how their guests will respond to these loudly luxurious menu items.

That said, if a concept and brand can deliver such an over-the-top experience without alienating their guests, it can be fun, memorable, and profitable.

Something to consider as we approach Espresso Martini Day, which takes place on March 15. Who wants to take a shot at making one that costs more than $40?

Image: Ambitious Studio* – Rick Barrett on Unsplash

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Clash of the Coffee Cocktails

Clash of the Coffee Cocktail Titans: Espresso Martini vs. Carajillo

by David Klemt

AI-generated image of a Carajillo cocktail next to an Espresso Martini

It took quite a few attempts for AI to generate a Carajillo without a lemon wedge or wheel garnish, with oddly placed ice on top of the foam.

It’s National Espresso Martini Day on Friday, March 15, the day we celebrate a cocktail that has been having “a moment” for decades.

I doubt the man behind the Bramble thought the Espresso Martini (originally the Vodka Espresso) would take on the life it has. The late, legendary Dick Bradsell created this modern classic in London in the 1980s. Oh, and he was also leading the charge for London’s cocktail scene revival at the time.

For whatever reason, the Espresso Martini (also known as the Pharmaceutical Stimulant when served on the rocks) enjoys immense popularity but also suffers widespread mockery. Hey, I’m also guilty of cracking jokes at this stalwart’s expense. Although, my issue is the annual articles saying, “Espresso Martini, so hot right now. Espresso Martini.”

The drink itself? I’ve enjoyed my fair share. And, damn it, I’ll do it again.

Now, I’m mainly writing about National Espresso Martini Day to put it on your radar. This Bradsell creation is wildly popular, and this year’s holiday falls on a Friday. So, there’s ample opportunity to engage with guests, increase traffic, boost revenue, and get creative.

However, I did use the words “clash” and “versus” in the title of this article for a reason…

Clash of the Coffee Cocktail Titans

I submit that National Espresso Day is the perfect time to make guests not in the know aware of the Carajillo.

Look, I know it’s not cool to steal someone’s thunder on their big day. We know we shouldn’t propose to our significant other at someone’s wedding reception. And it’s poor form to pull focus on someone’s birthday with big life event news.

Still, I’m going to propose that operators use National Espresso Martini Day to introduce guests to its rival.

A great rivalry tends to be beneficial for both participants, so why not stoke a friendly feud between these two coffee cocktail heavyweights? To get people’s promotional wheels turning, allow me to suggest an approach.

One way to get guests acquainted with both cocktails is to have them order them back to back. Encourage the ordering of a traditional (or signature) Espresso Martini. Then, have the guest order a Carajillo, traditional specs or otherwise. Right there, operators have gotten a guest to order the important second drink.

If an operator really wants to lean into this approach, they can even create a prix fixe cocktail menu featuring the Espresso Martini and Carajillo. A third drink could be a signature or personalized riff on whichever cocktail the guest enjoyed most.

Espresso Martini

  • 2 oz. Vodka
  • 1 oz. Fresh-brewed espresso
  • 0.5 oz. Coffee liqueur
  • 0.25 oz. Simple syrup
  • 3 Coffee beans to garnish

Add ice to a cocktail glass to chill it. Alternatively, keep some chilled cocktail glasses on hand. Add all liquid ingredients to a cocktail shaker with ice. Shake well, then strain into prepared cocktail glass. Garnish with three coffee beans.

Carajillo

  • One part Licor 43
  • One part coffee
  • 3 Coffee beans to garnish (optional)

Add equal parts Licor 43 and coffee to a cocktail shaker with ice. Shake very well to create a foamy texture, then pour into a cocktail glass.

It’s important to note that a Carajillo can be poured over ice or served up. Also, one can use any type of coffee they prefer, including cold brew. Further, some people make a Carajillo with horchata, while others serve it with a small bowl of sugar. There are also people who use cinnamon sticks and chocolate shavings for garnish.

Going even deeper, some bars serve the Carajillo as a layered, stacked, or pousse-café drink, also known as puesto style.

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

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Creative Conversion: Adaptive Reuse

Creative Conversion: Adaptive Reuse Architecture

by David Klemt

Abandoned gas and service station

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.

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 restaurantcomplete with a 40-foot mahogany barin 2006.

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

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5 Books to Read this Month: March 2024

5 Books to Read this Month: March 2024

by David Klemt

Flipping through an open book

Our inspiring and informative March book selections will help you improve operations, refresh F&B programming, and consider a design update.

This month, we look at books covering an array of topics: overcoming dysfunctions within teams; stepping outside of comfort zones; cocktail and Irish dish recipes; and repurposing existing buildings.

To review the book recommendations from February 2024, click here.

Let’s jump in!

The Five Dysfunctions of a Team: A Leadership Fable

In a departure from most business books, the author of The Five Dysfunctions of a Team presents useful lessons in the style of a fictional tale. This approach makes this bookwhich has more than 13,000 reviews on Amazona compelling read.

From Amazon: “Equal parts leadership fable and business handbook, this definitive source on teamwork by Patrick Lencioni reveals the five behavioral tendencies that go to the heart of why even the best teams struggle. He offers a powerful model and step-by-step guide for overcoming those dysfunctions and getting every one rowing in the same direction.”

Pick up your copy today.

The Complete Irish Pub Cookbook

I doubt you need a reminder but just in case, St. Patrick’s is just two weeks away. So, what better time to pick up this best-selling cookbook featuring Irish classic and modern fare? Flip through this book, check out some interesting recipes, and put your own spin on them so they fit with your concept.

From Amazon: “Pubs in Ireland are the cornerstone of their communities, relaxed places where locals and visitors can experience the best of traditional Irish hospitality. Many pubs have also become the place to go for a great meal, with a choice of both traditional and contemporary dishes. In recent years Irish cooking has been transformed, with skillful cooks making the most of wonderful fresh local produce to create delicious new dishes and giving a twist to many classics. This tasty cookbook includes the best of both worlds – with best-loved favorites s Irish Stew, Corned Beef and Split Pea and Ham Soup and newer recipes, like Scallop Chowder or Oatmeal and Raspberry Cream to set your taste buds tingling.”

Order The Complete Irish Pub Cookbook now!

Drink: Featuring Over 1,100 Cocktail, Wine, and Spirits Recipes

This is a seriously big book. After all, it really does contain more than 1,100 recipes. KRG Hospitality president Doug Radkey recently picked up this book and flipped through its many, many pages.

Along with well over a thousand recipes organized by spirit, Drink looks at bar tools, housemade ingredients, and ice. Further, it includes interviews with bartenders. If you’re looking for a recipe book that will inspire a drink menu refresh, this is the one you want.

Grab this tome today.

Cool is Everywhere: New and Adaptive Design Across America

Last month, we dove into the biophilic design methodology. This book, Cool is Everywhere, is a photo-driven look into the adaptive reuse design movement. Very briefly summarized, this is a design movement that focuses on repurposing existing architecture rather than knocking down buildings and putting up new construction. This approach tends to be eco-friendly, and as you’ll see from the photos in this book, it also creates cool buildings.

From Amazon: “Cool Is Everywhere highlights remarkable designs that have transformed ordinary buildings into works of art. From North Adams, Massachusetts, to Oakland, California, join Michel as he explores the skyscrapers and quaint neighborhoods that led him to believe that cool is, in fact, everywhere.”

Pick up this book now.

The Comfort Crisis: Embrace Discomfort To Reclaim Your Wild, Happy, Healthy Self

This book from author Michael Easter asks a fairly simple question: What if the modern world’s conveniences are making our lives more difficult? When we look deeper into our lives, we may find that our health is being impacted negatively by building and remaining in our comfort zones. Certainly, entrepreneurs can find that refusing to step outside of their comfort is hurting the business side of their lives.

From Amazon: “In many ways, we’re more comfortable than ever before. But could our sheltered, temperature-controlled, overfed, underchallenged lives actually be the leading cause of many our most urgent physical and mental health issues? In this gripping investigation, award-winning journalist Michael Easter seeks out off-the-grid visionaries, disruptive genius researchers, and mind-body conditioning trailblazers who are unlocking the life-enhancing secrets of a counterintuitive solution: discomfort.”

Order it today!

Image: Mikołaj on Unsplash

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