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Tequila may Drive These 2026 Trends

Tequila may Drive These 2026 Trends

by David Klemt

Clear glasses filled with tea, served from a silver teapot at a restaurant

Is there alcohol in that teapot? Maybe.

While some of us continue to cross our fingers that tequila will have their year as the top spirit, other similar sips may rise up in 2026.

One can argue that tequila finally clinched the Top Spirit crown in the US and made 2025 its year. After all, it showed the fastest growth of any spirit last year.

Further, some sources report that tequila generated more revenue than any other major category in the US. Per reporting, premiumization is believed to be a major driver of tequila’s 2025 success.

However, other sources report that vodka still holds the throne due to volume sales. It probably won’t shock a single person that Tito’s holds the number one spot as 2025’s top-selling brand.

In Canada, beer earned the top spot by overall market share. However, Canadian whisky led in 2025 as the top spirit, though tequila garnered notable interest.

Meanwhile, two spirits similar to tequila may finally have meaningful moments in 2026 as vodka and the world’s most-famous agave spirit battle for the title. If Datassential and Nation’s Restaurant News are accurate in their predictions, raicilla and sotol may finally become even more well known to consumers this year.

What is Raicilla?

This agave spirit has been produced in Jalisco, Mexico (for the most part), for at least three centuries. And yet, it wasn’t granted its own Denominación de Origen (Designation of Origin, or DO) until 2019.

Authentic raicilla can only be produced in 16 municipalities throughout Jalisco, and, for some reason, one municipality in Nyarit, called Bahía de Banderas.

There are essentially two regional types of raicilla, de la costa and de la sierra. As the names imply, the former are coastal raicillas, and the latter are from mountainous areas.

Some varieties of raicilla will be familiar to tequila drinkers: joven, reposado, and añejo. There are also varieties that have been aged or matured in glass, abocado (infused raicilla), and artisanal double-distilled raicilla.

Unlike tequila, which can only be made from Blue Weber agave, raicilla is made from several different types of agave. Intriguingly, most raicilla is made with wild agave. The reason is simple: raicilla production is nowhere near the scale of tequila, so for the most part, producers don’t need to cultivate huge fields of agave.

Generally speaking, there are two primary approaches to cooking agave for raicilla, resulting in different flavor profiles. De la sierra producers tend to cook the agave above ground. Conversely, de la costa producers mainly utilize underground or pit ovens.

So, de la sierra raicilla usually doesn’t have smoky notes like mezcal, whereas de la costa raicilla is more likely to share that profile. Generalizing again, raicilla is characterized most often as being more floral and vegetal than tequila and mezcal. Really, a raicilla’s flavors and aromas are highly dependent on terroir.

What is Sotol?

Contrary to a common misunderstanding, sotol isn’t derived from agave. One common thread connecting tequila and sotol is the fact that they’re both traditional Mexican distilled spirits.

Another similarity is the production method: piñas are harvested and cooked, then fermented and distilled.

However, it’s a plant known as Dasylirion that’s used to produce sotol. Commonly known as “desert spoon,” this plant is a member of the asparagus family, as is agave. This may be what leads some to believe that sotol and tequila are both agave-based spirits.

Like tequila and raicilla, sotol is protected by a DO. This means true sotol can be produced exclusively in the Mexican states of Chihuahua, Coahuila, and Durango. It must be noted, though, that there are producers in Texas “don’t recognize” the DO and bottle what they call sotol.

A detail that may appeal to more sustainability-minded guests: sotol production is considered more eco-friendly in comparison to tequila and raicilla. When harvesting desert spoon for sotol, the roots aren’t dug up, meaning a single plant is capable of producing several bottles of sotol over its lifetime.

Desert spoon piñas are cooked in an earthen pit, and terroir is a factor. Depending on the regiondesert, forest, or prairiea sotol will have different flavor and aroma profiles.

For example, a forest sotol may have notes of pine, eucalyptus, and mushroom. In contrast, a desert sotol may be characterized by leather and pepper. Sotol is complex and will keep the adventurous engaged for quite some time.

How can Operators Capitalize?

One of the most effective ways to introduce guests to raicilla and sotol is to leverage the undeniable and seemingly unstoppable popularity of tequila.

And while it’s fun to nerd out over production, it’s likely a better idea, initially, to taste guests on tequila, raicilla, and sotol. While you’re there, you can also include mezcal.

Particularly notable is NRN itself predicting sotol as a trend of its own this year. Further, Datassential has identified raicilla as a trend in their own report.

Of course, there are also some compelling 2026 trend predictions you can leverage with these two traditional Mexican spirits.

Both raicilla and sotol are more than capable of standing in for tequila and mezcal in cocktails. However, raicilla can also tag in for gin, and sotol can act as substitute for gin and vodka.

Off the top of my head, raicilla or sotol Margaritas and Negronis should appeal to a wide range of guests.

This brings me to a simple trend that NRN predicts may take off in 2026: smaller cocktails.

Think (and Price) Small

That’s it; it’s that simple. People seem to be drinking less, not just in frequency but in ABV.

So, it may behoove operators to offer smaller cocktails, accompanied by appropriately reduced prices. This means the drinks are priced appropriately rather than offering discounts in the hopes of driving traffic.

Not only does this move, when intentional, speak to a current shift in guest imbibing behavior, and appeals to those who want to go out to bars and restaurants but don’t want to spend much.

The New Happy Hour

This is where a few trends converge. According to Datassential, “teatime is the new happy hour.”

And per The IWSR, playfulness may also take hold in 2026. I’m sure you can see where this is going.

In Datassential’s view, teatime rather than traditional happy hour gives operators more leeway in terms of dayparts. Noon, early afternoon, early evening, brunch… It’s all on the table, and there isn’t confusion around start and stop because it’s not referred to as a happy hour.

It also allows operators to offer tea-based cocktails made with raicilla and sotol (or any other spirit), and low- and no-ABV tea drinks. Again, this speaks to a range of consumer behaviors and expectations.

The Three Ps

Whatever trends operators choose to pursue this year, their decisions must be intentional.

That means viewing them through the lenses of People, Processes, and Profits.

People: Do we have the right people in place in the right roles? Are we serving our guests to the best of our abilities? Team member or guest, are we truly treating everyone with respect and gratitude?

Processes: How often are we reviewing each operational element? Are we reviewing our menus at regular intervals over the course of 12 months, or are we doing this annually (or not at all)? How are we approaching our pricing? When was the last time we reviewed and tested each and every one of our systems?

Profits: Total sales are great, but are we making money? As Doug Radkey, president and principal consultant of KRG Hospitality says, “Sales are a vanity metric. Profits tell the real story.” Do we know our numbers? Are we controlling costs? Do we make pricing and labor decisions proactively and strategically, or are we panicking and reacting without careful consideration?

Those are by no means all of the questions we need to ask on a regular basis, but they’ll give operators a solid baseline.

Image: Davey Gravy via Unsplash

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Reduce Discounts, Increase Profits

Reduce Discounts, Increase Profits

by David Klemt

Scientific calculator on top of cash

There’s reason to be optimistic about generating revenue this year but operators must also be savvy if they want to boost their bottom lines.

Put another way, the growth some industry organizations and experts are predicting isn’t just going to occur. We’re optimistic about 2023 as well, but it’s going to take hard work and shrewdness.

As we know now, the National Restaurant Association is forecasting massive sales this year. In fact, the NRA projects the foodservice industry will generate $997 billion in sales. That’s nearly a trillion dollars just from the foodservice space.

Clearly, that’s a big number. It’s also $60 billion more in sales than the industry generated in 2022. That’s impressive in and of itself, surpassing the 2022 sales forecast by almost $40 billion.

Okay, so those are a lot of big numbers. Should foodservice outperform the forecast again, the industry will pass the trillion-dollar mark. And I know every owner and operator, be they independent, chain or franchisee, wants a healthy share.

However, impressive as those numbers are, they’re just that: numbers. Operators will still have to do the work to increase traffic; convert first-timers to repeat guests; and increase revenue. Fail in those tasks and there’s no reason to expect profits to rise.

It’s math, after all, not magic.

One way operators can increase revenue and profits is to offer fewer discounts. Really, this isn’t an incredible concept: If more guests pay full price, operators see more profits.

Real-world Example

Costs are up nearly across the board, and it can be tempting to offer discounts in an attempt to increase traffic. However, one group has shown over the past couple of years that discounts don’t need to be an operator’s go-to traffic- and sales-boosting tactic.

Carrols Restaurant Group is a Burger King franchisee. According to Restaurant Business, the group operates more than 1,000 Burger King restaurants. So, they operate approximately one out of every seven Burger Kings in the US.

Last quarter, Carrols managed to generate more than $14 million in free-flow cash. That’s higher performance than the group has seen in the past couple of years.

A significant factor for Carrols and Burger King is backing off of discounting. Again, this isn’t groundbreaking but it’s still noteworthy. A brand that once was reliant on discounting is now backing off that model and seeing dividends.

Of course, guest perception, the guest experience, and marketing play a role. Guests must still feel they’re getting value for the dollars they spend. They must also feel that their experience, from QSR to full-service, shows that they’re valued by the restaurant. And the marketing messaging must truly speak to a brand’s guest base and bring them through the doors to spend their money.

Premiumization over Discounts

The bottom line for an operator’s bottom line is this: If prices are continually discounted, that lower price is now the actual price. At least, a discounted price is now the normal price in the eyes of guests.

In other words, an operator who discounts all the time is training their guests to only visit and buy items when prices are lower than usual.

The superior option? Offering premium LTOs that speak to a brand’s base and tempt them to spend more. LTOs don’t need to come with discounted prices. In fact, they should be treated as premium promotions and command premium prices.

Create seasonal LTOs (in one concept’s case, inventing a fifth season), as an example, to generate buzz and increase traffic. Offer premium items at premium—but fair—prices to leverage the traffic, increase sales, and boost profits.

Another strategy that’s more effective than discounts? Building a brand with which guests resonate. Guests who relate to a brand tend to visit more often and support it with their dollars.

It’s tempting to discount. Don’t give in to temptation.

Image: Karolina Grabowska on Pexels

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Sales Jump Shows Guests Will Pay More

Chipotle Sales Jump Shows Guests Will Pay More

by David Klemt

Close up of calculator buttons

Chipotle’s latest earnings report may show that guests are willing to pay more at their favorite restaurants.

In Q3, the fast-casual giant’s net sales grew by nearly 22 percent. Per reports, same-store sales rose by just over 15 percent.

Is it possible that Chipotle’s earnings—which exceeded Wall Street estimates—indicate that guests will tolerate price hikes?

Rising Costs

No, it’s not a “hot take” to state the obvious: Everything is more expensive.

All operators and managers are aware that costs are rising across the board. Beef, chicken wings, cooking oils… Prices are increasing and the trend is expected to continue.

Not that any of us need a real-world example, but Chef Brian Duffy shared on episode 53 of the Bar Hacks episode that he now has to price a pound of chicken wings at $13.

One reason that Chipotle made the choice to raise prices comes down to rising beef prices. Another is increased freight costs.

As every armchair economist knows, when a business’ costs rise that increase falls on its customers.

The reason is fairly simple: If prices remain the same while costs rise, the situation becomes untenable, the business doesn’t generate enough revenue, and doors close.

So, Chipotle’s decision was simple. The fast-casual chain announced in June that menu prices would increase by about four percent to defray rising costs.

Rising Wages

Chipotle’s June announcement followed one the company made in May.

Six months ago, Chipotle announced the hourly wage for their restaurant workers would increase to $15 by June.

How did the company afford to raise hourly wages, offset ingredient costs, and deal with rising freight rates? The aforementioned menu price hike.

Now, Wall Street didn’t seem to anticipate backlash toward Chipotle for increasing their prices. However, plenty of other people have said—and still say—that customers won’t support restaurants or bars that raise prices.

It appears that a significant percentage of brand-loyal customers will remain loyal and continue to support the businesses they like even through price hikes.

Is This the Way?

I’ll address a crucial detail: Chipotle is a fast-casual brand valued at close to $52 billion.

They’ve got incredible brand recognition and tremendous purchasing power. Reportedly, there are 2,857 Chipotle locations in the United States. In fact, the company announced in February of this year that it planned to open 200 more locations this year.

So, no, there’s not a direct comparison to be made between Chipotle and an independent restaurant or bar.

However, that doesn’t mean there’s no lesson to be learned here.

Chipotle was transparent about the reasons for their price hikes. The Great Resignation has shined a spotlight on wages, and Chipotle addressed that concern.

The pandemic has also unleashed havoc on supply chains. Again, Chipotle was forthcoming about the challenges the company was facing.

Moving forward, it may be wise for restaurant and bar owners to address menu price increases. There does seem to be some level of understanding among the more rational guests out there that if they support increased wages for hospitality workers; understand supply chain challenges; and know costs are up for everything, they’re going to see price hikes.

You very likely need to raise at least some of your prices. When you do so, consider telling your guests why. You may be surprised by the support you receive.

Image: fancycrave1 from Pixabay

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How and Why to Edit Your Menu

How and Why to Edit Your Menu

by Nathen Dube

Restaurant tables with place settings and menus

When thinking about opening a restaurant an important question to answer is, “What am I going to serve?”

There is one answer that tempts too many restauranteurs: “I’ll offer something for everyone!” The thinking is that doing so translates into everyone coming to their restaurant or bar.

The truth is, everyone isn’t coming. Sadly, many of these places don’t survive long, and 60 percent of restaurants don’t make it past their first year. Having an overwhelming menu is one of the key contributors to that statistic.

Massive menus are stressful for guests, making it difficult for them to decide. At a certain point, too many items create what’s called the Paradox of Choice. Overwhelm guests with possibilities and they’ll just choose something simple and familiar rather than exploring the entire menu, impacting the guest experience negatively.

Too many options also lend to the perception of low-quality food. How can a kitchen staff possibly excel at so many dishes? How can the ingredients be fresh and not frozen? What is the quality of dishes if people only order them once or twice a week?

Those reasons and more are why it’s important to have a laser-focused menu from the onset.

Inventory Challenges

If a large portion of your menu isn’t moving out of the kitchen to hungry diners, guess where that food is going. A large menu creates tracking issues, a high percentage of ingredient spoilage, and opens the door to theft from staff. The best establishments do just a handful of things well, with a select few complementary items to round out the menu.

Having a kitchen full of product for dishes on the menu that might get ordered can quickly turn into dead stock. If there are boxes sitting in dry storage shelves collecting dust, it’s a good time to consider removing any dishes that require them from the menu.

Setting a scheduled review of inventory and menu sales breakdowns can be a great way to avoid dead stock eating into your food budget for any significant length of time. Not all dishes end up being winners—ignoring the losers will limit profitability significantly. A massive, unchecked menu just compounds the issue.

Another profit-eater is food waste. Ordering usually means receiving product in bulk and breaking it down. It’s near impossible, as an example, to order just two or four of something like cabbage for a dish that doesn’t move. The cabbage sits, and half a case gets thrown out for every dish sold. Having a focused menu will help quickly highlight items that need to be removed from a menu.

Tracking Issues

Then there’s the issue of theft. Unfortunately, theft happens. Having some deterrents in place can help mitigate opportunities for those who seek to steal in this industry.

If there aren’t robust tracking systems in place along with an honest team who uses them correctly, things can (and will) disappear. A much harder time will be had spotting losses and what’s causing them when it takes a long time to track inventory. Again, this leads to compounded profit losses on dead stock and product spoilage. We haven’t even begun to prepare any food yet and already our food cost is trending in a bad direction.

A restaurant budget needs to be established before opening and needs to be adhered to strictly. That can quickly go out the window when it comes to ordering food to stock your kitchen. A massive addition to your operating costs can set you back a few months, particularly when you’re not seeing a return on purchases for the reasons stated above.

With the current climate of the restaurant industry and a post-Covid dining scene, avoiding these pitfalls is crucial to success. Rising food and labour costs, recovering from months of closures, and a shortened patio season (if you’re lucky enough to have one), have made strict cost controls more important than ever going forward.

Keep in mind, if your seating capacity matches or is less than the amount of menu items you’re serving, that equates to minimal product turnover, which translates to minimal profits. That number is multiplied by product loss of any kind.

Training & Retention

When an owner can’t match their concept to food and drink offerings, it leads to poorly trained staff and frustration during service. There will be plenty of room for error (more loss!) and, unsurprisingly, low staff retention. That all keeps this never-ending cycle in motion.

If you can’t clarify your vision, how can you expect staff to showcase it to guests with any confidence?

At every “big menu” restaurant I’ve worked in, the owners were always in the building or kitchen. This wasn’t because they were driven to be hands on. It was because they couldn’t train staff properly to run the whole menu reliably, things would go “missing,” or staff simply couldn’t accomplish daily tasks consistently.

Interestingly, the opposite was true at establishments with small, focused menus. Staff were confident and knowledgeable, problems with food and service didn’t spiral out of control, and food moved out the door to some degree of consistency. The owners were freed up to run their business rather than micromanage everyone.

With all the issues currently hampering the food industry, the last thing you want right now is another level of frustration among your staff. Retention rates are at an all-time low. The struggle to fill job openings industry-wide are at all-time high, as are reported cases of staff walking out mid-service. A properly structured menu can keep your business on track and make the lives of your employees much more simplified.

Editing Your Menu

Focusing on cohesion between menu and concept doesn’t require offering all the dishes under the sun. Avoiding the “something for everyone” approach leads to improved guest experiences and employee confidence. Streamlining your menu simplifies inventory and sales tracking; differentiates high-profitability items from the rest; and makes identifying items that don’t sell easier.

Paring down your menu into a tight, focused version allows you to quickly retool it every few months. Just try tracking and editing a large four-page menu as frequently. It’s costly to reprint and you have better things to do with your time.

Keeping things tight also creates space to take advantage of seasonal offerings, local specialties, or customer favorites. You can also offer specials throughout the week that can drive traffic and give your talented cooks a chance to show off!

I would suggest looking over your sales data to identify your highest-selling dishes and the slow movers every one to two months. If you have a seasonal menu, this can be done at the midpoint of a seasonal change.

Think about what items are being purchased and only used in one dish. They can start to pile up in your stockroom and lead to dead stock. Consider the versatility of ingredients when planning a menu change—cross-utilize everything you can.

Fluctuating Costs

Another important point that can get forgotten is that the prices of food items fluctuate constantly. Maintaining a large menu, therefore, can become a nightmare cost scenario quickly. Limes, beef, avocados—even celery—are experiencing tremendous jumps in price. A small menu allows for damage control when prices jump, giving your room to make quick, lower-cost moves.

Of course, the alternative is to have your staff rattle off everything the kitchen is out of to your guests. Not cool.

The underlying theme here is to avoid tying up your finances in product that is sitting, turning to waste instead of profit, or not moving at all. Your mission is to have product moving out of the kitchen constantly and consistently.

It might seem like a wise decision to offer a large menu that’s all over the place. Maybe you’re making that choice for fear of alienating guests or reducing your traffic. However, the points made in this article should illustrate why a cohesive link between concept and menu is crucial, and how a smaller, more focused menu can deliver more for you than a large, out-of-touch menu.

Image: Karolina Grabowska from Pixabay

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