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May 10, 2022by David Klemt David Klemt No Comments

TOTC 2022 Agenda and Tickets Now Live

Tales of the Cocktail 2022 Conference Agenda and Tickets Now Available

by David Klemt

The time is now to grab your Tales of the Cocktail tickets and plan your trip to New Orleans for the last week of July.

Not only are tickets available for purchase via this link right now, you can also check out the schedule here.

Of particular note is the amount of complimentary programming available to 20th anniversary TOTC attendees.

Free to Attend

Attendees will have access to several activations and workshops that are free to attend.

Beginning Sunday, complimentary programming is available throughout the week. For example, the Day of Service on Sunday, July 24 is free attend and a way to give back.

Also on Sunday, the 11th annual Pig & Punch Volunteer Day of Service. This is another opportunity for those in the industry to do some good in the NOLA community.

The return of Pig & Punch was mentioned by an excited Lola Thomas on episode 72 of the Bar Hacks podcast.

On Monday, all attendees can attend the keynote address; Diversity Distilled Career Fair; the Welcome to Wellness! therapeutic stretch and self-massage session; and “#FromTheBarToTheFarm” sustainability workshop.

There are several more workshops—such as “Safe Bars: Crafting a New Culture of Safety and Respect” and the immersive “Mind Full” experience—that are free to attend on Tuesday and Wednesday.

Incredible Activations

More reasons to plan your trip around an action-packed Sunday? Speed Rack Redemption, the National Tequila Day Pool Party at the Royal Sonesta, and Ode to the Bowl.

The rest of the week is absolutely packed. From workshops to seminars, cocktail tours to tasting rooms, and all manner of activations, parties, and events in between, the 20th anniversary celebration of Tales of the Cocktail will be an experience to remember.

On the subject of cocktail tours, there are eight such experiences available during this year’s Tales. For example, attendees can register and secure tickets for Hunting Down the Sazerac, Downriver: Bars Beyond the French Quarter, the Big Gay Bar Tour, and Bourbon Street and How it Got that Way.

Learn More

To be honest, there’s simply too much going on at this year’s TOTC to list here. The sheer number of workshops, seminars, and activations must be checked out online.

And that’s to say nothing of the industry icons that will be presenting seminars and workshops, and hosting activations and special events.

Simply put, there’s programming for everyone. Health and wellness? Yes. Furthering your career? Absolutely. Perfecting technique and tasting new products? Of course. Business, culture, advocacy, diversity, inclusion, equity… Check, check, check, check, check, check!

We hope to see you at Tales of the Cocktail 2022! Be sure to check out the agenda and grab your tickets today.

Image: mana5280 on Unsplash

Blurry image of people in a nightclub or bar

May 9, 2022by David Klemt David Klemt No Comments

Designing with Anxiety in Mind

Designing with Anxiety in Mind

by David Klemt

Interior design has the power to remove a person’s anxiety, improving the guest experience by making them feel more comfortable.

Lionel Ohayon, founder and CEO of ICRAVE, addressed design and anxiety at HD Expo 2022 in Las Vegas. While anxiety wasn’t the entire focus of this intimate discussion, what Ohayon had to say was powerful.

When some operators consider their space, they probably aren’t thinking about guest anxiety. Ohayon, who designs with compassion and empathy in mind, believes designers can address anxiety through the design process.

Why the respected designer think designers can accomplish this feat? He does it himself.

Innovative Design

For the benefit of those unfamiliar with Ohayon and ICRAVE, some background.

Specializing in interiors and lighting, ICRAVE is an award-winning design firm. Founded by Ohayon, the firm’s approach to design includes a focus on the experiential and the client’s brand strategy.

One may assume that ICRAVE works solely in the hospitality space. To that point, the firm’s portfolio includes some of the world’s most impressive restaurants, bars, lounges, nightclubs, hotels, and spas.

However, the company is well known for work in the healthcare, wellness, entertainment, residential, workplace, mixed-use, and airport spaces.

After two decades, ICRAVE has honed their vision, approach, and strategy. A key pillar is “experience design.” In fact, the firm believes that “the experience is the brand.”

It would be impossible to live and deliver on that core tenet without understanding a client’s business. For ICRAVE, the final product must engage all those who use the space they’ve designed and their client is operating.

Reducing Anxiety

Consider this scenario. It’s not one that we’ve all found ourselves in. However, it is a situation that those who experience anxiety live with every day.

Let’s say someone has agreed to meet friends at a nightclub. They’re not meeting somewhere outside of the club so they can enter as a group.

This person arrives, enters, and is seeking out their friends. Unfortunately for them and their anxiety, they’re the first to get there. Anxiety (and even panic) sets in. Now, the last place this guest wants to be is in this nightclub.

Obviously, this is a terrible guest experience. And now this guest may associate the venue, fairly or not, with feelings of anxiety. They may never want to return.

Throughout Ohayon’s career, he has designed for this exact situation. During his HD Expo session—which was much more an intimate conversation inside the DesignWell Pavilion—Ohayon explained that he has incorporated “perches” in a number of his designs.

A perch, in this context, is a space a person can access that makes them feel comfortable while they wait for others in their party to arrive. The way I understand it, a perch is like a “hideaway,” a space someone feeling anxiety in public can use so they don’t feel like everyone’s eyes—and judgment—are upon them.

Designing and planning for longevity requires designers and their clients to think differently. Health and wellness must be more than buzzwords—they must be authentic to a brand.

Anything less is disingenuous. Today’s consumer is perceptive when it comes to sensing the inauthentic, and they don’t like it.

Takeaway

Now, some operators may feel as though addressing a guest’s anxiety isn’t their problem. And we’re not always sensitive to the fact that someone is feeling anxious.

Some people may even feel defensive about their venue right now. Their space, they may be thinking, isn’t causing anyone anxiety.

At risk of putting too fine a point on it or stating the obvious, a key element of hospitality is guest comfort. If a guest’s comfort and sense of safety isn’t important to someone, they really shouldn’t be in hospitality.

To clarify, Ohayon’s comments on anxiety are first and foremost for designers. He wants designers to consider how they can incorporate elements that may help reduce a person’s anxiety.

On the client side, though, an operator can and should ask about such elements during the design process of their space. There’s no reason to be defensive—this is about mindfulness, wellness, and compassion.

Removing anxiety through design pays off during day-to-day operations. If a space can reduce a guest’s anxiety, that guest can be present and engaged. That engagement leads to a positive, memorable experience. And that type of experience evolves into repeat visits from loyal guests.

Image: Maurício Mascaro

May 4, 2022by David Klemt David Klemt No Comments

SevenRooms Reveals Hotel Guest Study

SevenRooms Reveals Hotel Guest Study Results

by David Klemt

Americans eager to get back to normal and make up for lost time are traveling in droves, and hotels will have to adapt in order to earn their business.

To give hotel and resort operators an edge, SevenRooms today reveals the results of their latest study.

“Booking Behaviors: Exploring Hotel Guest Loyalty,” contains datapoints all hotel operators should know.

The report, a collaboration with YouGov, focuses on two types of travelers.

Competitive Incentives

Before I address the who, let’s take a look at data that highlights the what.

According to the SevenRooms and YouGov report, nearly half of consumers say that loyalty programs are important. Per SevenRooms, loyalty programs influence hotel choice for 44 percent of guests.

Regarding American hotel guests specifically, 34 percent of guests will consider rebooking if their loyalty status receives recognition upon check-in.

However, loyalty status recognition isn’t enough for guests to book a hotel again. To understand what will influence that decision we need to take a look at SevenRooms’ traveler types.

Leisure

SevenRooms and YouGov look at two travelers for their report. There’s the Personal Patron and the Business Traveler.

Let’s focus on the former first. Per SevenRooms, to say the Personal Patron is eager to return to travel is an understatement.

The Personal Patron is a leisure traveler who has been climbing their walls for more than two years. They’re planning to travel “with a vengeance” this summer.

Diving deeper, the Personal Patron is most probably a female over the age of 35.

While recognizing this traveler for their loyalty program membership is smart, it’s not enough to influence a rebook. Rather, the Personal Patron places greater value on:

receiving more loyalty program points in exchange for dining and drinking at property-operated restaurants and bars;
enhanced credit card rewards; and
earning dining credits upon reaching a new loyalty program tier.

However, there’s a problem inherent to the Personal Patron and loyalty programs. Just 45 percent—so nearly half—of this traveler type are loyalty program members.

The reason for that low program buy-in? Almost 60 percent don’t think they travel enough to benefit from hotel loyalty programs.

Per SevenRooms, there’s a rather simple solution: local benefits. Tempt Personal Patrons with staycations and access to amenities at hotels in their home markets. Another idea is to offer points exclusively for dining that this traveler can use where they live.

Business

Obviously, the business traveler is now different. In fact, SevenRooms considers two versions of the Business Traveler.

On the one hand, there’s the extended-stay version traveling all over the country. And on the second hand, there’s the long-distance Business Traveler who’s seeking a midweek “home base” hotel.

Either way, the Business Traveler is most likely a male aged 18 to 34.

Per SevenRooms—and as most hotel operators likely know—this traveler probably doesn’t have time (or interest) in exploring off property. Therefore, the Business Traveler can be influenced to rebook through incentives that make their stays better.

These include:

receiving more loyalty program points in exchange for dining and drinking at property-operated restaurants and bars (like the Personal Patron);
receiving recognition for being a loyalty program member; and
getting a complimentary drink on check-in; or
being given a choice of an F&B amenity on arrival.

Unsurprisingly, the Business Traveler is more likely than the Personal Patron to join a hotel loyalty program. Per SevenRooms, 55 percent of Business Travelers say that the ability to participate in such a program influences their hotel choice.

Focusing on perks that “reward” the Business Traveler for their hard work can convert a Business Traveler to become a loyal guest for a particular hotel or hotel group.

SevenRooms suggests priority reservations for the lunch daypart at restaurants on property. Also, providing their favorite drink (wine, cocktail, beer, etc.) with their room service orders can be influential.

Takeaway

Travel is gaining steam, restaurants and bars are seeing an influx of reservations, and hotel operators need to prepare for summer travelers.

As a reservation, guest experience, and guest retention platform, SevenRooms can ensure operators can easily collect guest data. Guest data, for example, like F&B and room preferences.

More importantly, the platform makes it simple to use that data responsibly, effectively, and simply.

To learn more about SevenRooms, click here.

Image: JESHOOTS.COM on Unsplash

May 3, 2022by David Klemt David Klemt No Comments

5 Books to Read this Month: May 2022

5 Books to Read this Month: May 2022

by David Klemt

These engaging and informative book selections will help you develop next-level beverage skills and motivate you throughout May, 2022.

To review April’s book recommendations, click here.

Let’s jump in!

Rum Rebels: A Celebration of Women Revolutionizing the Spirits Industry

Written by authors Martyna Halas and René van Hoven, Rum Rebels raises a glass to women in the rum world. Readers will learn the inspiring stories of Lorena Vasquez from Zacapa, Joy Spence of Appleton, and more women driving rum forward and shaping this iconic spirit’s flavors, aromas, and textures.

In addition, this book serves as a masterclass in rum production, from tasting to aging. And since that’s enough for these incredible and ambitious authors, Rum Rebels also contains rum cocktail recipes.

Drink Lightly: A Lighter Take on Serious Cocktails

Operators, bar managers, and bartenders should see value in the driving ethos behind this cocktail book. Drink Lightly, authored by Nitecap bartender Natasha David, pairs precision drink-building techniques with a relaxed drinking experience.

Drinking lightly doesn’t mean sipping drinks bereft of complexity and depth. Along with 100 recipes, readers will enjoy a foreword by Alex Day of Proprietors LLC, whose concepts include Death & Co. and Nitecap.

Call Me Chef, Dammit!: A Veteran’s Journey from the Rural South to the White House

Hospitality is rooted in sacrifice and a commitment to serving others. Chef Andre Rush and his story embody service. Call Me Chef, Dammit! is the inspiring story of Chef Rush.

The storied chef has led an incredible life which includes a career in the US Army that spanned 24 years, advocating for military personnel and veterans, and winning multiple awards as a chef. Oh, and Chef Rush and his 24-inch biceps have also worked in the White House for four US presidents.

While there are no recipes in this book, there is one hell of an inspiring story in these pages.

The New Kindred Spirits: Over 2,000 All-New Reviews of Whiskeys, Brandies, Liqueurs, Gins, Vodkas, Tequilas, Mezcal & Rums from F. Paul Pacult’s Spirit Journal

Anyone looking for a spirits bible need search no further. F. Paul Pacult’s The New Kindred Spirits includes over 2,400 in-depth reviews spanning a wide range of spirits. This tome evaluates a massive number of brandies, gins, liqueurs, rums, tequilas, vodkas, and whiskeys.

This all-encompassing compilation of spirit evaluations doesn’t just cover the usual suspects. The New Kindred Spirits also takes a deep dive into the craft side of the beverage industry.

Drinking & Knowing Things

Author and certified sommelier Michael Amon would like to know a couple things from those considering picking up Drinking & Knowing Things. “Do you want to uncork a bottle of whoop-ass on every winedouche and uppity sommelier?” And, “are you too lazy to spend any time whatsoever learning things?”

Anyone who answered “yes” to either or both questions needs this book. Amon says that readers who commit to spending five minutes reading the weekly wine recommendations found in Drinking & Knowing Things will give sommeliers a run for their wine-knowledge money. Wine intimidation? Not after reading this book.

Image: Mikołaj on Unsplash

Stay Weird neon sign with purple background

May 2, 2022by David Klemt David Klemt No Comments

Stand Out with Weird Holidays: May 2022

Stand Out with Weird Holidays: May 2022

by David Klemt

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

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

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

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

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

For last month’s list, click here.

May 3: National Two Different-colored Shoes Day

Promotions don’t need to be complicated to generate traffic, revenue, and social media engagement. Encourage guests and staff to wear mismatched shoes and program around that call to action.

May 6: International No Diet Day

The fact that this holiday comes at the start of the weekend is awesome. It’s Friday, this holiday is all about indulging food and drink cravings, and people want to get back out there after being unable to gather for more than two years. Put your most decadent F&B items front and center!

May 8: National Have a Coke Day

Are you a Coca-Cola account? If so, great—create specialty menu items using Coke and promote them.

Not a Coke account? Well…you can always take a play out of some of the cheeky QSR brands’ playbooks and counter-program on this holiday.

May 13: National Crouton Day

Ah, the mighty-but-mini crunchy treat that is the crouton. Not only are they great in soups and salads, they can be an appetizer or shareable on their own. Better yet, they’re easy to make in-house, such as the revered grilled cheese crouton.

May 16: National Sea-Monkey Day

As we pointed out last week, Datassential has identified drinks that evoke nostalgia are a trend to watch this year. The infamous Sea-Monkeys have been around since the 1960s and also resonate with ’70s, ’80s, and even ’90s kids.

May 17: National Graduation Tassel Day

Most colleges hold their graduations in May. So, if you operate a restaurant or bar in a college town, this is your time to shine. A simple food and/or drink promotion aimed at new graduates is an excellent way to drive traffic and generate much-needed dollars.

May 22: National Craft Distillery Day

You most likely have at least a few products from craft distilleries on your menu. This is the day to highlight them, particularly if they’re local to your business.

May 24: National Scavenger Hunt Day

There are a few ways to program for this holiday. One way, of course, is to focus on your own operation(s) and come up with a scavenger hunt that keeps guests on property.

However, you can also team up with surrounding businesses to create a multi-venue scavenger hunt that engages the entire community and drives business to small operators.

May 25: National Sing Out Day

Do you host karaoke? Are you operating a piano bar? What about a raucous supper club? If your restaurant or bar is set up for singalongs, this is the holiday for you.

May 30: National Creativity Day

Hey, guess what you should do on this holiday? Tap into you and your team members’ creativity and come up with a promotion that’s truly unique.

Image: Dan Parlante on Unsplash

April 29, 2022by David Klemt David Klemt No Comments

Key Themes from HD Expo 2022

Key Themes from HD Expo 2022

by David Klemt

The educational conference sessions at Hospitality Design Expo 2022 in Las Vegas were connected by a number of key, overarching themes.

Hosted by the Mandalay Bay Convention Center, HD Expo packed each day with invaluable education. Founders, designers, highly placed executives, and other influential industry professionals addressed a wide range of crucial topics.

Below are five key topics and themes from HD Expo 2022.

Sustainability

Unsurprisingly, sustainability was one of the most-discussed topics.

Of course, conversations about sustainable design, construction, and operational practices have been at the forefront of hospitality for several years now. However, the topic seemed supercharged this year at HD Expo.

Drilling down, speakers at the 2022 show are focusing on “building performance,” light-touch construction, and waste recovery, to name but a few session topics.

When some think about sustainability, they think of low- and no-waste practices, energy efficiency, and upcycling. For others, being sustainable means building in an eco-friendly or green way.

However, several HD Expo 2022 speakers, their teams and agencies, and their partners and clients are thinking more locally. The impact of building and operating on local communities is now a greater focus.

For example, Victor Body-Lawson, founder and principal of Body Lawson Associates Architects & Planners. During a panel he co-presented, Body-Lawson addressed the importance of designing, building, and operating for the local community.

In short, he explained how not using local materials and labor has a significant negative impact on the environment. Additionally, Body-Lawson feels that the objective of design is that whomever engages with end product—commercial or residential—comes out better.

Wellness

Refreshingly, it appears the stigma surrounding wellness is dissipating. More people seem to be more comfortable discussing their mental and emotional health openly.

Designers and their clients, particularly in the hotel and resort space, are taking note.

Long a staple amenity, the health center is undergoing reinvention. In fact, many resorts and hotels are focusing on wellness centers and programming.

In fact, a number of concepts are more wellness and healing getaway than hotel or resort. One such project coming to market is the Jenesis House.

The creation of Jenesis Laforcarde, this concept’s focus is explicitly mental health, physical well-being, and self-care. Additional core values are community, hiring local, and engaging with local small businesses.

Diversity, Equity, Inclusion

Like the topic of wellness, DEI has received more earnest attention during the pandemic. And why not? Diversity, inclusion, and equity are inextricably connected to wellness.

Of course, DEI is also connected to community. Moving forward, designers, their partners, and their clients must focus on DEI within their companies and local communities.

One hotel brand that seeks to embody this mission is Caption, part of the Hyatt portfolio. Crystal Vinisse Thomas, VP and global brand leader of lifestyle and luxury brands for Hyatt, is bringing Caption to market.

At this brand’s core is community. Locals are as important as the travelers staying at a Caption property. And, again, why shouldn’t that be the case?

Locals will work at the hotel. Locals will use the hotel. And locals will feel the impact—positive or negative—of the hotel.

A visit to the website provides all the proof anyone needs that Caption is committed to locals:

“The people make the place here. We hire local, buy local, and vibe local.”
“We strive to be a good neighbor.”

Interestingly, Thomas tied DEI and the community together. While it may be a difficult conversation to start, if a designer, executive, partner, or client sees that a project isn’t representing the community, they need to address it.

Staying silent isn’t how things move forward. In fact, it’s a sure-fire way to take steps backward.

Discovery

What keeps guests coming back? Is it the amenities of a hotel? The food and beverage? Do guests return because of the service they receive?

Of course. However, a shift in guest behavior and expectations shows that F&B, amenities, and service may no longer be enough to motivate repeat visits.

When it comes to hotel and resort design, the future is discovery. Another way to think about discovery is the “hotel within the hotel,” or “resort inside the resort.” A concept that embraces this approach reveals layers that guests can discover.

Perhaps their first stay is in the main or more traditional space. Then, the guest discovers that there are different areas they can book for a stay. These could be villas, luxury tents, a pre-fab luxury Moliving unit (as an example)…

The point is that the guest knows they can engage with the property differently during each stay. While there are core elements that define a particular brand, they can deliver different experiences on the same property.

Of course, such a concept also ties into the themes of community and wellness. Many brands are eschewing the traditional operational ethos of attempting to keep a guest on property for as long as possible. Instead, the local community is a key experiential element of a hotel or resort.

The future of hospitality design—indeed, of hospitality as a whole—encompasses each of these themes. Perhaps most importantly, each theme serves a greater concept: Community.

Image: tommao wang on Unsplash

High contrast image of blue cocktail with lemon zest

April 27, 2022by David Klemt David Klemt No Comments

Forward Progress: Trends by Venue Type

Forward Progress: Trends by Venue Type

by David Klemt

One notable difficulty with considering new trends is that they’re not all necessarily a universal fit for all venue types.

For example, what may work well in an upscale restaurant perhaps won’t perform as well in a sports bar. Pursuing a trend that isn’t a good fit, obviously.

As any operator with experience knows, chasing fads and trends just to chase them can be costly. Doing so costs money (inventory, training, labor hours) and time deserving of better allocation.

However, failing to embrace any trends can also be costly. Watching a lucrative trend pass by can cost an operator guest engagement, perception, and traffic.

Take, for instance, the success of White Claw. Plenty of operators and consumers scoffed at the hard seltzer category as a whole at first.

Then, some people decided it was a drink category “for women.” As it exploded in popularity, hard seltzers proved immensely popular with men.

Basically, it’s an incredibly strong beverage alcohol category that resonates with a wide range of consumers. On some menus, hard seltzers are listed alongside beers.

So, hard seltzer, led largely by White Claw, showed itself to be a worthwhile trend to adopt.

Clearly, however, hard seltzer doesn’t resonate with all guests on all occasions in all types of hospitality venue types. For instance, generally speaking, a bucket of White Claws likely to be a top seller in a high-end restaurant specializing in seven- to nine-course meals.

Drink Trends by Venue

During Bar & Restaurant Expo in March of this year, Amanda Torgerson of Datassential presented 2022 drink trends operators should know.

One trend has essentially proliferated the industry. Really, it’s likely wise for us to all view this trend—hard seltzer—as mainstream now.

In the context of Torgerson’s presentation, Datassential is saying that hard seltzers are here to stay.

Among other trends, Torgerson shared Datassential’s data-backed view of drink trends segmented by venue category.

While every venue is unique and not every trend will work for every bar or restaurant in a given category, the results are no less intriguing.

Pubs: Dry-hopped beers, pastry stouts, and hard or spiked coffee.

Sports Bars: Mini-beers, hard seltzer, and reusable growlers.

Casual Bars: Seltzers with unique flavors, hard tea, hard lemonade, and drinks featuring local ingredients.

Upscale Bars: Negroni, wine-barrel-aged spirits, and flaming cocktails.

Nightclubs: Hard seltzers served with spirits, cocktails and punch bowls served with dry ice, and flaming cocktails.

Casual Restaurants: Wine cocktails, elevated brunch cocktails, and tea-based alcohol beverages.

Upscale Restaurants: Flaming cocktails (smoked may be better), all-natural wines, and made-to-order cocktail cart presentations.

Hotels, Resorts and Casinos: Made-to-order cocktail carts, alcohol vending machines, and drinks made with cold-pressed juices.

Interestingly, a few of the above trends identified by Datassential appear in multiple venue types.

The main things for an operator to keep in mind is what will resonate with their guests and what’s authentic to their brand. When it comes to trends, one size doesn’t fit all and an individual venue’s mileage will vary.

However, the above list should at least show operators what Datassential sees resonating with guests in an array of venues.

Image: Ozge Karabal on Pexels

April 25, 2022by David Klemt David Klemt No Comments

Hiring Struggles? Engage These Age Groups

Hiring Struggles? Engage These Age Groups

by David Klemt

Staff turnover rates are still above pre-pandemic levels and there’s no silver bullet solution. However, two companies have some helpful advice.

Both Service Management Group and Technomic shared their tips during Restaurant Leadership Conference. Interestingly, each company has a different approach to the current hospitality industry labor problem.

In short, both SMG and Technomic advise operators to engage with vastly different age groups. However, they each have information that supports their recommendations.

Service Management Group

Jennifer Grimes, senior vice president of client services for Service Management Group, co-presented a session with Jim Thompson, COO of Chicken Salad Chick.

SMG is a software-with-a-service platform that seeks to the employee, customer, and brand experience. One crucial element of the company’s mission is the reduction of staff turnover.

During the RLC session, Grimes shared several years of hospitality turnover rates:

2017: 72%
2018: 75%
2019: 79%
2020: 130%
2021: 86%

First, some context. The general consensus is that the industry’s average turnover rate has been between 70 and 80 percent for close to a decade. However, in comparison to other industries—10 to 15 percent—that’s stratospherically high.

Secondly, the turnover rate has been on rise since before the pandemic. Per some sources, the rate jumped from 66 percent in 2014 to 72 percent in 2015, a trend that continues to this day.

For SMG, the age group operators should seek to engage—generally speaking, of course—is 25 to 34 years old. Per the SWaS platform, this group was the most engaged pre-pandemic.

One reason for SMG’s suggestion is that Boomers appear to opting out of the workforce.

During the presentation by Grimes and Thompson, the latter shared that Chicken Salad Chick predicts the 2022 turnover rate to be just slightly above the 2019 rate.

Technomic

Unsurprisingly, Technomic had some numbers to share during RLC 2022 in Scottsdale, Arizona.

Per data provided by Joe Pawlak and Richard Shank, 70 percent of operators are still struggling with labor. Recruiting, hiring, and retaining staff doesn’t appear to be getting any easier four months into 2022.

Technomic also pointed out that the US saw the lowest population growth in its history last year: 0.1 percent.

Additionally, almost 17 percent of the country’s population is now at least 65 years old. In 2019, 48 percent of people 55 or older retired. That number is now just over 50 percent for the same age group.

Nearly seven million American consumers turn 60 each year, while four million turn 70 or older.

Logically, one may assume that Technomic is saying a significant portion of the US population is leaving the workforce. So, it’s best to focus on the same age group as SMG recommends.

However, Technomic is recommending a different strategy. Per Pawlak and Shank, retirees (mostly ages 55 and up) tend to have valuable managerial skills and experience.

Obviously, those skills and all that experience can be of great benefit to operators and our industry.

Certainly, all groups should be engaged by operators seeking to recruit, hire, and develop their teams. So, as KRG Hospitality sees recruitment, operators should craft targeted, authentic messaging that appeals to each age group.

Image: Sebastian Coman Photography from Pexels

April 22, 2022by David Klemt David Klemt No Comments

Código 1530 Pursuing Low-waste Initiatives

Código 1530 Pursuing Low-waste Initiatives

by David Klemt

Blue Weber agave plant in Tequila, Mexico

Tequila Código 1530 is making the upcycling of the agave they use a cornerstone of the brand’s sustainability efforts.

Some agave growers and tequila producers the plant as mulch, fertilizer, and biofuel. Bagasse, the fibrous material distillers separate from agave piñas, along with the leaves, is composted and used to fertilize agave fields.

While not common, some distillers will even take other producers’ agave bagasse and leaves to compost it.

However, Código 1530 is now doing even more with their agave.

Agave Sustainability

According to some in the spirits and hospitality industries, tequila may end vodka’s dominance in the US this year. Obviously, this would be the result of an increase in consumer demand.

Well, that necessitates an increase in production. So, it follows that agave growers have motivation to grow and harvest as much mature agave as possible.

However, it takes about eight years for some agave plants to mature. Others take more than ten years. For some rarer species, maturation takes twelve years or more.

Of course, production leads to waste. In simple terms, that’s the problem producers must solve.

One definition of “sustainability” is striking an ecological balance that preserves natural resources. For tequila production in particular, this means finding ways to meet consumer demand while harvesting agave reponsibly.

While composting and mulching is a great idea, Código 1530 sees the need to take things further.

More than Mulch

We’ve probably all been given at least one drink served with a paper straw. Unfortunately, that means most of us know how quickly that experience can become less than enjoyable.

Even some of the best-made paper straws can turn soggy long before a drink is finished. On the operator side, that’s not great for the guest experience, to say nothing of the costs associated with stocking paper straws.

However, some operators and their guests are willing to stick with paper straws to be sustainable. That’s admirable but there may be a better way, and it involves agave.

“We quickly realized that after harvesting agave to distill Código 1530 Tequila, the remaining agave was only being used as mulch to top our soil for future plants or burned as a fuel source,” explains George Strait. “We are still using some of the excess agave fiber as mulch, and now have begun producing straws and cups in a sustainable and eco-friendly manner.”

Strait, as some may know, is an investor in Código 1530. A lesser-known fact is that Strait graduated Texas State University (formerly known as Southwest Texas State University) with a degree in agriculture.

“This is a lifesaving program for sea life affected by plastic pollution,” says Strait of Código 1530’s new agave sustainability efforts.

Unlike paper straws, agave straws don’t get soggy or deform. Additionally, they can be thrown out in normal trash after use as they’re biodegradable.

However, this agave initiative doesn’t end with straws. Código 1530 is also making agave fiber cups, coffee cups, cocktail shakers, and shot glasses.

Tea-quila

To celebrate Earth Day and their sustainability efforts, Código 1530 has created the drink below.

Image: Amir Shafii, Código 1530

1.5 oz. Código 1530 Blanco
3 oz. Bergamot tea
0.75 oz. Lemon juice
0.5 oz. Lavender simple syrup
Lavender sprig to garnish

Housemade simple cuts down on the waste associated with producing and shipping bottles of syrup. To make the lavender simple syrup, bring one cup of water and one cup of sugar to a boil. Add ten sprigs of lavender while water and sugar are boiling, let cool, then strain. For this low-waste cocktail build, add all ingredients and ice to a shaker. Shake, then strain into a Collins glass with ice. Garnish with a sprig of lavender.

Image: BRUNO EMMANUELLE on Unsplash

April 20, 2022by David Klemt David Klemt No Comments

Chain Restaurants: Present & Future

Chain Restaurants: Present & Future

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

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

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

Challenges & Threats

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

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

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

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

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

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

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

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

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

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

Opportunities

Medicine taken, we can move to the good news.

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

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

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

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

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

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

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

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

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

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

Image: Alex Haney on Unsplash