Pop up

A bowl of ramen with beers in the background
by David Klemt David Klemt No Comments

The Top-performing New Restaurant Type

The Top-performing New Restaurant Type

by David Klemt

A bowl of ramen with beers in the background

According to a midyear Yelp report, one category of new restaurant is experiencing a surge in growth across the US unlike any other.

No, it’s not ramen, as the image above suggests. Instead, it’s pop-up restaurants.

We can trace the growth of this category, at least on the operator side, to cost. Sure, pop-ups were popular before 2020. However, they grew even more popular during the pandemic.

One can argue the life cycle of the pop-up is fad to trend to cost-saving adaptation to proliferation.

There are even those who transform shipping containers into mobile, pop-up restaurants and bars. With the right permits and hookups (water, electricity, etc.), an operator can test a new market or an entirely new concept before committing fully to a brick-and-mortar location.

In other words, the pop-up simply makes sense for our industry. This category of restaurant (or bar) clearly doesn’t cost anywhere as much as its permanent brick-and-mortar counterparts, for one. Secondly, a pop-up doesn’t (shouldn’t, anyway) require more than a skeleton crew. And thirdly, they do seem to enjoy pops in interest whenever they come to a new market or new address.

There are, of course, other benefits. However, the low(er) cost is the most attractive element for most operators.

Keep in mind that Double Chicken Please started life as a pop-up cocktail concept. In fact, DCP is the current Best Bar in North America according to the World’s 50 Best Bars.

Covering more than 10,000 miles and serving over 1,200 cocktails, the DCP pop-up toured the US for three years before finding a brick-and-mortar home. And what a home. The concept is now a jewel in New York’s Lower East Side F&B crown.

Top Restaurant Types by Opening

According to Yelp, the following restaurant categories are experiencing the most growth.

The numbers below represent the changes in business openings from April 2021 to March 2022 in comparison to April 2022 to March 2023.

  • Pop-ups: +105 percent
  • Ramen: +45 percent
  • Noodles: +40 percent
  • Tacos: +28 percent
  • Chicken shops: +28 percent
  • Food stands: +23 percent
  • Japanese: +20 percent
  • Breakfast and brunch: +20 percent
  • Sushi: +13 percent
  • Steakhouses: +9 percent

As the numbers above show, the growth of pop-ups far exceeds that of any of the other categories. In fact, they’re growing by nearly three times that of the second-place category, ramen restaurants.

Make a Pop-up Work for You

For a pop-up to work the concept must be realized fully. The brand and its story must be communicated clearly.

And while the menus can perhaps change more easily, signatures should be dialed in to generate buzz.

At KRG Hospitality, our view of pop-ups is a popular one. We think they’re excellent branding tools and are a viable way for new operators to test the waters.

However, we believe that a successful pop-up should be paired with a fully customized feasibility study and in-depth concept development. Both are core services offered by KRG Hospitality, and both are specialties that set us apart.

They may be mobile, they may feel niche and “temporary” or experimental, but they’re still a business.

A pop-up can only transform into a brick-and-mortar concept with a shot at longevity if the operator treats it as a roving proving ground.

Image: Diego Lozano on Unsplash

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Exterior of Ocean Casino Resort at sunset
by David Klemt David Klemt No Comments

Ocean’s Summertime Celebrations

Ocean Casino Resort Summertime Celebrations

by David Klemt

Exterior of Ocean Casino Resort at sunset

Ocean Casino Resort is celebrating an impressive milestone all summer long through creative local business partnerships.

This summer, the resort will reach its fifth anniversary. The festivities will begin May 26, a month before Ocean’s “birthday.”

However, rather than focus solely on the resort and casino, Ocean is choosing to celebrate the community it serves as well. These fifth birthday activations and initiatives are an excellent lesson for operators across all hospitality business categories.

I’m sure operators—all hospitality professionals, really—will agree that restaurants and bars are integral elements of any community’s bedrock. Increasingly, the same can be said of hotels. In fact, large hotel groups are investing in the development of smaller imprints that are tasked with the mission of serving locals and local businesses.

When a restaurant, bar, hotel, or nightclub reaches annual milestones, it’s largely due to community support. Sure, businesses in destination cities benefit greatly from tourist visits. However, for most markets, longevity is anything but assured without local backing and buy-in.

It’s clear that the importance of local support isn’t lost on Ocean. This summer’s celebrations include several local partnerships and community initiatives to pay that support back.

Local Partnerships

Last year, the Ocean leveraged the demise of the Choco Taco. So far in 2023, Ocean has supported Philly and KC during the Big Game, and gotten creative with cocktails that raised funds for the Girl Scout Troops of Southern and Central New Jersey.

Local partnerships are key to Ocean’s five-year celebration:

  • The Seed: Created Seeds of the Ocean for Ocean’s five-year anniversary.
  • Tennessee Avenue Beer Hall: Seeds of the Ocean lager will also be available at this local beer hall.
  • Rhythm & Spirits: Joining forces with Little Water Distillery to feature their gin in the Oceans 5 cocktail.
  • Little Water Distillery: Their Rusted Revolver Indigenous Gin is the star of the Oceans 5 cocktail, mentioned above. The distillery has also created the Chocolate Cake Martini, featuring Bar 32 chocolate shavings.
  • Hank Sauce: For those who prefer their celebrations spicy, Ocean and Hank Sauce have collaborated on Across the Boards. This hot sauce will accompany food items at restaurants inside Ocean.
  • Tony Boloney’s: They’ve created the High 5 pizza to celebrate Ocean’s birthday. This is another collaboration within a collaboration, as it features Seed of the Ocean lager and Across the Boards hot sauce.
  • Bar 32: What celebration is complete without something sweet? Bar 32 (a bean-to-bar chocolatier) and Ocean will be offering three commemorative chocolate bars: the Berry Pretzel Bar, Party Pretzel Bar, and Salty Peanut Butter Bar.
  • Mudgirl Studios: Ocean has commissioned several handmade, one-of-one pieces from this non-profit that will be featured not just in common areas on the property but also in some of the guest rooms.
  • Atlantic City Arts Foundation: To help celebrate its fifth birthday, Ocean has collaborated with the ACAF for a three-panel mural that will have a home at Tennessee Avenue Beer Hall.

Creative & Compelling

What I find most notable about these local partnerships is how several of them intertwine.

Not only did Ocean commission an exclusive beer, a local restaurant chain is using it for a pizza. That same restaurant chain is also using a hot sauce Ocean had created to celebrate their milestone. There are other collaborations that bring Rhythm & Spirits, Little Water Distillery, and Bar 32 together.

However, Ocean is doing more than just supporting a select group of local businesses. Mudgirl Studios employs and empowers at-risk, homeless and formerly incarcerated women. The ACAF, as one would imagine, inspires and empowers people to pursue the arts. Both support and strengthen communities throughout Atlantic City, and Ocean is giving back by supporting them.

In addition to all of that, the celebrations kick off on Memorial Day Weekend with a $300,000 sweepstakes. All in, there will be more than $5 million in promotions and giveaways in play over the course of this summer. From June 24 to July 4, Ocean is putting up one million dollars for a second sweepstakes.

Then there are Tesla giveaways, birthday fireworks, the Birthday Bar Pop-up Experience at 1927 Lounge inside Ocean Resort Casino, and Ocean’s sponsorship of the Atlantic City Beer and Music Festival.

Nola's Bar & Lounge inside Ocean Casino Resort

Look for Ocean’s birthday drinks at property bars like Nola’s Bar & Lounge

Again, it would be easy for Ocean to have simply planned a celebratory weekend, week, or month, focusing solely on themselves. Instead, they’re involving several small businesses and community organizations.

Takeaways

Do I expect restaurant and bar operators to somehow offer $5 million in giveaways to celebrate a milestone? Or even $300,000? Perhaps a Tesla?

No, of course not.

However, I do think operators should really put thought into celebrating their annual milestones. Surviving the first 12 months is a huge achievement. Making it through the first 18 months and hitting the two-year anniversary is just as challenging.

So, operators should take four to six months to plan their celebrations. Additionally, they should view these events as a way to thank the community for supporting them. And, of course, that includes being grateful for beneficial business relationships.

When considering marking these achievements, it’s wise to include local businesses. Craft brewers and distillers, local farmers and vintners, non-profit organizations… All the better if the selected partners can collaborate with one another to make the celebration and partnerships that much more impactful.

Operators should take a page out of Ocean’s celebration handbook and look for creative, thoughtful collaborations. Doing so lifts up others and pays local support forward, in turn making the entire community stronger.

It’s perfectly acceptable for an operator to be proud and celebrate milestones. But it’s even better for operators to celebrate those who help them thrive.

Images courtesy of Ocean Casino Resort

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Closeup of hands holding burger
by David Klemt David Klemt No Comments

F&B in Canada: Top Menu Items

F&B in Canada: Top Menu Items

by David Klemt

Closeup of hands holding burger

Those wondering what food and beverage menu items are performing best among consumers throughout Canada need wonder no more.

And why is that? Well, Restaurants Canada has the answers, revealing the top ten food and top ten beverage items.

Further, the organization compares each item’s performance. In this instance, Restaurants Canada analyses the percentage of orders that contained each food or beverage item from January to April 2022 in comparison to 2019.

These insights (and many more) are available in Restaurants Canada’s 2022 Foodservice Facts report. In fact, you can find our reviews of several of the restaurant advocacy group’s report topics via the links below:

For your own copy of this year’s Foodservice Facts report, click here.

Top 10 Canadian Drink Menu Trends

As you’ll see below, coffee is outperforming nearly every other beverage category. Specifically, Hot coffee is at the top, while Iced or frozen coffee is ranked third.

Unsurprisingly, Carbonated soft drinks / Pop / Soda split the two coffee categories. According to Restaurants Canada, the Carbonated soft drink category can credit its performance in large part to QSRs.

  1. Milk: 1.8% (2019) to 1.8% (2022)
  2. Iced tea: 2.9% (2019) to 1.6% (2022)
  3. Milkshakes / Smoothies: 2.1% (2019) to 2.0% (2022)
  4. Fruit juice: 3.8% (2019) to 3.0% (2022)
  5. Hot tea: 5.5% (2019) to 4.5% (2022)
  6. Alcohol beverages: 5.1% (2019) to 5.7% (2022)
  7. Water: 6.6% (2019) to 5.0% (2022)
  8. Iced or frozen coffee: 5.3% (2019) to 7.5% (2022)
  9. Carbonated soft drinks / Pop / Soda: 19.7% (2019) to 20.2% (2022)
  10. Hot coffee: 40.9% (2019) to 41.9% (2022)

Compellingly, Alcohol beverage performance in restaurants fluctuated by age group between 2021 and 2022. Alcohol order shares in restaurants, per Restaurants Canada:

  • Legal drinking Age (LDA) to 34: 46% (2021) to 43% (2022)
  • 35 to 49: 17% (2021) to 21% (2022)
  • 50-plus: 37% (2021) to 36% (2022)

Alcohol order shares in bars, according to Restaurants Canada:

  • LDA to 34: 35% (2021) to 35% (2022)
  • 35 to 49: 17% (2021) to 19% (2022)
  • 50-plus: 49% (2021) to 47% (2022)

Overall, the 35 to 49 age group appears to be consuming less alcohol in bars and restaurants in comparison to the LDA to 34 and 50-plus cohorts.

Top 10 Canadian Food Menu Trends

As Restaurants Canada notes, the Sandwich / Sub category has grown in 2022. Interestingly, the category just below it in growth, Chicken, is partially responsible for boosting Sandwich / Sub performance.

As far as entrees or “main attractions,” the Burger category remains at the top, beating out Breakfast, Sandwich / Sub, Chicken, and Pizza menu items.

  1. Cake / Squares / Muffins: 3.7% (2019) to 3.3% (2022)
  2. Salad: 4.3% (2019) to 3.8% (2022)
  3. Donuts / Beignets: 3.0% (2019) to 3.8% (2022)
  4. Breads: 4.3% (2019) to 3.4% (2022)
  5. Pizza / Panzerotti / Calzone: 4.1% (2019) to 4.3% (2022)
  6. Chicken: 7.6% (2019) to 8.5% (2022)
  7. Sandwich / Sub: 8.0% (2019) to 8.5% (2022)
  8. Breakfast: 10.8% (2019) to 11.4% (2022)
  9. Burger: 9.0% (2019) to 10.9% (2022)
  10. French fries / Potato / Sweet potato / Onion rings: 15.0% (2019) to 16.1% (2022)

Image: Nathan Dumlao on Unsplash

Pink neon "breathe" sign
by David Klemt David Klemt No Comments

The Crucial Role Systems Play

The Crucial Role Systems Play

by David Klemt

Pink neon

Having efficient systems in place does more than just streamline day-to-day restaurant, bar, and hotel operations and increase productivity.

Of course, that’s an excellent reason for operators to ensure they implement multiple systems. Front-of-house, back-of-house, and leadership team members need systems to perform at their best.

Six Sigma, kaizen, the technology stack, checklists, manuals, marketing strategies, the guest journey… Each of those systems and more are key to the long-term success of restaurant, bar, and hotel operations.

In fact, these systems should be developed and ready for implementation before the doors ever open for the first time.

Further, effective systems communicate the expectations for roles and tasks. Onboarding and training systems improve recruitment and retention. Also, they provide the transparency that today’s professionals expect from their employers. On top of that, systems help develop consistency, which keeps guests coming back.

A strong leadership team is effective at implementing and following systems. Overall, a strong team is one that understands, embraces, and adheres to a systematic approach to operations to achieve shared goals.

Simply put, the only way achieve success is to be strategic. One can’t be strategic without the implementation of systems.

But there’s another crucial role that systems play in restaurants, bars, and hotels.

Get Out

This topic is the byproduct of a recent KRG Hospitality client call. While explaining our approach to projects, our team touched on the importance of systems.

However, the topic wasn’t brought up simply to detail what systems the client would need to have in place.

A crucial role systems play in a successful operation is getting an owner away from their four walls. More importantly, allowing them to confidently and comfortably leave their business.

If an owner—be they a sole proprietor or business partner—can’t step away from their restaurant, bar, or hotel without worrying, something is wrong. Either the systems in place are ineffective, they don’t address every element of the business, they aren’t being adhered to, or they don’t exist.

Effective systems allow an owner to take time away from their business without micromanaging staff. Systems should also be in place so the owner or owners don’t feel anxious when they’re not working on the business.

Breathe

Stepping away to pursue a hobby, engage in self care, spend time with family and friends, or just because one wants to take a “lazy day” is necessary.

The strategic implementation of systems makes it possible for someone to take time away from their business. They can take that vacation, pursue that goal that doesn’t relate to their business directly, recharge, etc.

Of course, having systems in place also mean an owner and members of their team can travel. They can comfortably attend industry shows, make a guest appearance at a peer’s bar, or host a pop-up without worrying about the business. Having systems in place also makes it possible to travel to discover new F&B items, learn new techniques, and forge relationships with industry peers.

In other words, systems help owners and operators do something they likely haven’t done in months, if not years: breathe.

Image: Fabian Møller on Unsplash

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