Restaurant news | KRG Hospitality

AI-generated image of two purple Ube Cream Liqueur cocktails on a bar

November 14, 2024by David Klemt David Klemt No Comments

Will this Drink Trend Lead Us into 2025?

Will this Drink Trend Lead Us Into 2025?

by David Klemt

AI-generated image.

One of the latest drink trends, a unique cream liqueur made from purple yam, may have the staying power to heat up through New Year’s Eve.

Now, when I describe it as unique, I’m not indulging in PR-speak, I mean it; there’s only one Ube Cream Liqueur. That includes, up to this point, additional expressions. Again, there’s only one Uber Cream Liqueur.

Making this liqueur even more exclusive is the fact that just one distillery produces it: Destileria Barako. They’ve done so since 2016. The distillery makes some other intriguing products as well. For example, there’s a lychee and lemongrass liqueur called Gayuma that also includes vacuum-distilled smoke distillate. Compelling…

So, what is Ube? Put very simply, it’s a lavender-colored cream liqueur made from ube. That’s a purple yam, and the liqueur itself calls the Philippines home. Interestingly, while the liqueur is lavender in color, ube can be violet, purple, lavender, and even white.

Before I go any further, a purple yam is not the same as a purple sweet potato. A purple yam will be, generally speaking, sweeter than its sweet potato counterpart, while being slightly more subtle in terms of flavor profile. Expect vanilla up front, with a subtle nutty undertone and finish.

And if you’re curious as to the meaning of “ube,” it translates from Tagalog to English as “tuber.” Quite a literal name for this special vegetable.

Okay, great. But what about the liqueur that appears to be popping up on craft-cocktail-focused menus in the US?

What is Ube?

On the surface, it’s an imported cream liqueur in an attractive, fashionable bottle.

Seriously, look at the Instagram post below; that’s going to grab guests’ attention.

View this post on Instagram

A post shared by Ube Cream Liqueur (@ubecreamliqueur)

Going deeper, Ube is made from the eponymous tuber, coconut husks, and sugarcane vodka. The ingredients are sourced from local farms and their communities throughout the islands that make up the Philippines (of which there are more than 7,600).

The liquid itself is rich and creamy, as one would expect. Like its namesake, Ube’s flavor profile includes vanila, and a subtle nuttiness. However, the sugarcane vodka is detectable, and coconut also shines through.

Along with being unique, it’s also versatile. Bar guests can’t really go wrong with ordering it in just about any configuration: neat, chilled, on the rocks, frozen, in a cocktail… Ube is highly adaptable.

And that, if I had to point to a characteristic beyond flavor and mouthfeel, is likely why this cream liqueur is rising in popularity.

Bar teams can get creative with it. Guests can enjoy it in myriad forms. Even the culinary team can get involved, as it’s an intriguing ingredient for dishes (particularly dessert).

Introducing guests to Ube isn’t a hard sell, either. The bottle and liquid itself are appealing to the eye. And while bar and culinary teams can really tap into their imaginations and talents to create quirky sips and dishes, it works in instantly recognizable drinks as well.

For instance, there’s the Ube Mudslide, Purple Russian (a variant of the White Russian, of course), Ube Colada, Ube Coco Old Fashioned, and even the Ubegroni.

Proceed with Caution

Here’s a a viewpoint with which you may be familiar: Once a trend emerges and people jump on it, it’s no longer a trend. Instead, it either experiences widespread adoption, reaches ubiquity, or dies.

Another viewpoint is that due to social media, trends come and go so quickly that even those that stick around for more than a few days tend to fall off quickly.

Search online for Ube and you’ll likely come across posts about finding it in the US that are a year or more old. It seems that the interest in this particular cream liqueur picked up in earnest around August of this year.

All that is to say this: For the most part, unless a person or group of people originates a trend, everyone else will be a step or two behind if they choose to jump on it. Most trends don’t even actually reach that status; they die in their nascent stage: a fad.

So, operators and their teams should be selective when a product, flavor, menu item, preparation, etc. is getting a lot of attention “suddenly.”

Chasing every trend isn’t efficient, and doing so flies in the face of consistency.

Important Considerations

There are several questions an operator should consider and answer before embracing any trend (or fad). Below, the assumption is that the trend involves a specific product.

Will this resonate with enough guests to make this profitable?
Does this trend work with our brand or are we forcing it to fit artificially?
Can it be obtained easily and consistently? If not, can we make our own housemade version? What will that cost, including labor?
How much will it cost to add this product to our inventory?
What will it cost to train the team to use this product?
Who will train the team on this product? What’s the estimated learning curve? What will training cost, in terms of product and labor?
In terms of pricing, what’s our projected profit margin per item made with this product? How many do we expect to sell on a daily, weekly, and monthly basis, keeping in mind that this is a consumer trend.
How quickly, with the above considerations (and more), can we actually leverage the popularity of this trend? Will it still be popular after we’ve completed our due diligence?

Don’t Abandon Your Standards

This caution isn’t aimed at embracing Ube specifically. Rather, this is advice for considering any trend, product, or menu item.

The standard is for operators to be obsessed with their numbers. Look at the top operators in the business—not necessarily those earning the most awards, but those leading their bars and restaurants to long-term success, and focused on building generational wealth—and you’ll see how much they focus on numbers; they know them inside and out.

All too often it can be tempting to drop standards when something goes sideways. Service goes awry, for example, and we try to take a shortcut to recover.

The same can be said for chasing trends. It can be tempting to just throw a new, trending item on the menu without crunching the numbers, taking a shortcut to leverage the trend as quickly as possible.

A savvy operator will consider the numbers before adding anything to their inventory and menu. It shouldn’t take long, and running the numbers will prove whether the trend is worth pursuing.

Image: Microsoft Designer

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AI-generated image of a closeup of a loan application and pen

October 4, 2024by David Klemt David Klemt No Comments

The Banks Have it Wrong

The Banks Have it Wrong

by Doug Radkey

It’s widely assumed that a well-written business plan will impress banks and SBA-type programs, and secure the funding required to launch a hospitality concept.

When starting a bar, restaurant, or hotel, most people are told exactly that: “You just need a business plan.”

The problem, however, lies in how these business plans are created. Too often, aspiring entrepreneurs turn to fill-in-the-blank templates provided by banks or online resources. They believe that simply completing the form will open the doors to financing, and start them on the path to building a successful business.

Unfortunately, this approach can do more harm than good. Let’s explore why the traditional reliance on business plan templates, including AI-generated business plans, can set both businesses and lenders up for failure.

In this article I dive into real-world examples, examine the success and failure rates of loans in the hospitality industry, and outline why banks and other programs need to rethink their loan approval processes to reduce risks for not only themselves but the entrepreneurs they serve.

The Problem with Business Plan Templates

Imagine this scenario: You’re excited to open a hospitality business, but you don’t know where to begin. You do some research, and learn quickly that you need a business plan to secure a loan. The bank or Small Business Administration (SBA) offers you a convenient template to complete, or you find one online that seems like it will do the job. You fill in the blanks, submit the plan, and, to your delight, the bank approves all or a portion of your loan.

However, the approval doesn’t mean your business plan is actually sound. Read that again.

It only means it meets the basic requirements of the bank’s loan approval checklist. A template provides a false sense of security, making entrepreneurs think they’ve covered all their bases when, in reality, crucial aspects of the business are left unaddressed.

For example, I recently reviewed a business plan for a client who had used a bank-provided template prior to our engagement. The plan was approved by the bank, but upon closer inspection, I found numerous errors: the start-up financial projections were unrealistic, the cash-flow analysis was incomplete, and crucial aspects of market analysis were missing.

The result? The project is on track to run out of money before it even opens its doors.

This example highlights a troubling issue: Templates don’t provide clarity, and they certainly don’t prompt critical thinking about the true costs to start, and the real challenges that the business will face once it’s operating.

The Risks of Using Templates

Business plan templates may seem like an easy solution, but they come with significant risks.

False Sense of Security: A completed template may look professional, but it doesn’t guarantee that the plan is sound or comprehensive. Key elements can be glossed over, copy and pasted, or simply misunderstood.
Lack of Critical Thinking: A template doesn’t ask tough or industry-specific questions. It doesn’t force you to analyze the competitive landscape, identify potential risks, or develop a clear financial strategy around a unique concept.
Inadequate Financial Analysis: Templates often provide a basic structure for financial projections but fail to help you understand the true costs of starting and running a business. A template won’t be specific to your concept, your revenue and cost channels, or industry benchmarks. The template won’t catch errors in your financials, leaving you and the bank exposed to significant risk.
Inability to Stand Out: In a crowded market such as the US, Canada, or Europe, differentiation is key. A cookie-cutter business plan won’t help you stand out from the competition. Despite handing them out, banks see thousands of these plans, and if you don’t demonstrate why your concept is unique and viable, you’re setting yourself up for denial.

The Dangers of AI-Generated Business Plans

As technology advances, AI-powered business plan generators are becoming more popular. I’ve seen a few ads for them over the past few months.

These tools claim to be able to create a business plan in minutes, promising efficiency and ease. However, relying on AI to write your business plan is just as dangerous as using a template. The same issues apply: lack of clarity, shallow financial analysis, and the absence of critical thinking.

AI-generated business plans may provide a surface-level solution, but they cannot replace the deep analysis required to make a business successful. Business plans need to be customized and thought out thoroughly, with insights drawn from real-world strategic planning.

Hospitality Industry Loans: Success and Failure Rates

The hospitality industry—particularly the accommodation and food service sectors—has one of the highest loan approval rates, but it also has some of the highest operator failure rates.

According to the U.S. Small Business Administration, in 2022 alone, 6,297 loans were approved for the accommodation and foodservice industry. These accounted for 13.2 percent of all small business loans, and 19.2 percent of total loan dollars. The average loan amount was US $784,768.

Despite these impressive loan numbers, the success rate of a business in this industry tells a different story. Only about 20 percent of hospitality businesses make it to their fifth year, and the average time to pay off a business loan ranges from five to ten years. The failure rates are driven by various factors, including cash-flow problems, a lack of market understanding, and poor financial planning.

So, why do banks continue to approve business loans based on inadequate business plans?

The Need for More than a Business Plan

Each reason for a business failing points to one underlying cause: lack of strategic clarity. In many cases, these businesses began with a standard business plan but skipped the other non-negotiable playbooks truly needed to be successful.

A well-rounded approach to strategic planning includes much more than a business plan.

Aspiring or seasoned bar, restaurant, and hotel operators need to develop feasibility studies to determine whether their business models can succeed in their target market. They also need concept development plans, prototype drawings, brand strategy plans, tech-stack plans, marketing plans, and financial playbooks.

Only after these steps are completed should the final business plan be written.

How Banks Can Improve Loan Success Rates

Banks have an opportunity to reduce their risks significantly—and increase the success rates of the businesses they fund—by requiring more than the completion of a business plan template during the loan approval process.

Instead, they should request detailed feasibility studies, along with the other playbooks, that go beyond the basics.

By working with entrepreneurs to ensure they have true clarity about their business model, market conditions, and financial outlook, banks can reduce default rates, and build stronger partnerships with their clients.

In addition, by encouraging the use of customized plans over templates or AI-generated plans, banks can ensure that they are investing in businesses with a clear path to success.

My Final Thoughts

Yes, a business plan is a vital tool for any entrepreneur, but it must be more than just a template, and lenders need to stop relying on these fill-in-the-blank approaches.

To build a successful business, you need more than a plan on paper; you need clarity, strategy, and a deep understanding of your market and financials. It’s time for banks, financing programs, and even angel investors to get it right and demand more than a standard business plan template. Only then will both the business and the lender see the long-term success they’re striving for.

Perhaps they, too, can then achieve success rates in the 90th percentile.

Image: Canva

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Bright, light and airy restaurant interior with communal seating across from the bar

October 3, 2024by David Klemt David Klemt No Comments

The Psychology of Dining Space Design

The Psychology of Dining Space Design

by Nathen Dubé

When someone decides they’re going to dine out, they’re basing their selection on more than just what they want to eat; it’s about the entire experience.

The design and layout of a dining space impact guest behavior, emotions, and overall satisfaction to a significant degree. From the colors on the walls to the lighting overhead, every element plays a role in shaping the dining experience.

This article explores the psychological principles behind effective dining space design, offering insights into how restaurants can use these elements to enhance guest satisfaction, and boost sales.

The Impact of Color Schemes

How Different Colors Evoke Specific Emotions and Moods

Colors are powerful tools in setting the mood and atmosphere of a dining space. Different colors can evoke specific emotions and reactions, influencing how guests feel and behave in a restaurant.

Warm colors like reds, oranges, and yellows are stimulating, and can create a lively, energetic atmosphere, often used in fast-food restaurants to encourage quick eating and high turnover.

On the other hand, cool colors such as blues, greens, and purples have a calming effect, promoting relaxation and longer stays, making them ideal for fine-dining establishments.

Neutral colors like whites, grays, and beiges provide a clean and modern look, allowing other design elements to stand out, and making a space feel larger and more open.

Examples of Color Choices and Their Psychological Effects

Red is known to stimulate appetite and increase heart rate, making it a popular choice for fast-food chains.

However, it should be used sparingly in fine dining as it can be overwhelming.

Blue, on the other hand, suppresses appetite and promotes calmness, suitable for seafood restaurants or venues where a relaxed dining experience is desired. Green, associated with freshness and health, is often used in vegetarian and farm-to-table restaurants to reinforce the concept of natural, wholesome food.

Case Studies of Restaurants Using Color to Influence Dining Choices and Atmosphere

Consider McDonald’s use of red and yellow in its branding and interiors. These colors stimulate hunger, and create a sense of urgency, encouraging quick dining and high guest turnover.

In contrast, Starbucks uses a palette of warm browns and greens to create a cozy, inviting atmosphere that encourages guests to linger, increasing the likelihood of additional purchases.

Lighting and Its Psychological Effects

The Role of Lighting in Creating Ambiance and Influencing Guest Behavior

Lighting is a crucial aspect of dining space design, affecting the ambiance and guest experience significantly. Different types of lighting can evoke various moods, and influence how guests perceive the space and their meals.

Natural lighting enhances mood, and makes spaces feel more open and inviting. Restaurants with ample natural light are often perceived as more comfortable and welcoming. Ambient lighting sets the overall tone of the space. Soft, warm lighting can create an intimate and cozy atmosphere, while bright, cool lighting can energize the space. Task lighting focuses on specific areas, such as tables or bars, enhancing functionality and highlighting key features.

Differences Between Natural, Ambient, and Task Lighting

Natural lighting is best for creating a connection with the outdoors, and making spaces feel airy and fresh, often achieved through large windows and skylights.

Ambient lighting provides overall illumination, setting the mood and ensuring guests feel comfortable. Typically, ambient lighting is provided via ceiling lights, chandeliers, and wall sconces.

Task lighting is used for specific purposes, such as illuminating dining tables or highlighting menu boards, typically achieved with pendant lights and under-cabinet lighting.

How Lighting Affects the Perception of Space, Food, and Time Spent Dining

Bright lighting can make a small space feel larger, while dim lighting can create a more intimate and enclosed atmosphere.

Proper lighting enhances the visual appeal of food, making it look more appetizing. Warm, soft lighting is often used in fine dining to highlight the colors and textures of dishes.

Lighting can also influence how long guests stay. Dim, cozy lighting encourages lingering, while bright lighting can make people eat faster and leave sooner.

Acoustics and Soundscapes

The Impact of Noise Levels and Music on the Dining Experience

Sound is a critical yet often overlooked element of dining space design. Noise levels and the type of music played can impact the dining experience significantly.

High noise levels can create a sense of energy and excitement, but may also lead to discomfort and difficulty in conversation. It’s essential to strike a balance, ensuring the space is lively without being overwhelming.

Low noise levels promote relaxation and intimacy, suitable for fine dining or romantic settings. However, overly quiet spaces can feel uninviting and lack atmosphere.

Balancing Background Noise and Creating an Appropriate Sound Environment

Effective sound management involves balancing background noise, and creating a sound environment that complements the restaurant’s concept and ambiance.

Strategies include acoustic panels to absorb sound and reduce noise levels, creating a more comfortable environment. Soundproofing materials like carpets, curtains, and upholstered furniture can help dampen noise.

Music selection is also crucial, with the type of music and its volume aligning with the restaurant’s theme, and the desired guest experience.

Examples of Restaurants Using Sound to Enhance Guest Comfort and Satisfaction

Many upscale restaurants use a combination of soft background music and sound-absorbing materials to create a tranquil dining environment.

For example, the use of live piano music in high-end restaurants can enhance the ambiance without overwhelming conversation.

Seating Arrangements and Layout

The Psychological Impact of Different Seating Configurations

Seating arrangements and layout play a significant role in influencing guest behavior and satisfaction. The choice between booths, communal tables, and individual seating can impact how guests perceive the space, and interact with others.

Booths provide privacy and comfort, making them ideal for intimate gatherings and longer stays, creating a sense of enclosure and personal space. Communal tables encourage social interaction and a sense of community, suitable for casual dining, and environments that promote socializing. Individual seating offers flexibility and can cater to a variety of group sizes, allowing for easy reconfiguration of the space.

How Layout Affects Flow, Privacy, and Social Interactions

The layout of a dining space affects the flow of movement, privacy levels, and the nature of social interactions. Key considerations include:

ensuring there is enough space for guests and staff to move comfortably without congestion;
clear pathways; and
strategic placement of furniture to enhance flow.

Balancing the need for social interaction with the desire for privacy is essential, using partitions, plants, or varying seating heights to create distinct zones.

Design the space to facilitate the type of interaction you want to encourage, with communal tables and open layouts promoting socializing, while booths and nooks offer more private dining experiences.

Strategies for Optimizing Seating to Enhance Guest Comfort and Turnover Rates

Optimizing seating involves creating a comfortable environment while ensuring efficient use of space to maximize turnover rates.

Strategies include:

using a mix of seating types to cater to different guest needs and group sizes;
investing in high-quality, comfortable seating, which encourages longer stays and repeat visits; and
designing the layout to maximize the number of seats without compromising comfort to ensure tables are spaced adequately, allowing for easy movement and service.

Case Studies and Expert Insights

Interviews with Interior Designers and Behavioral Psychologists

Interviews with interior designers and behavioral psychologists provide valuable insights into the principles of effective dining space design. Experts can share their experiences and recommendations for creating spaces that enhance guest behavior and satisfaction.

Key Insights on Effective Design Strategies

Key insights from expert interviews include adopting a holistic design approach, considering all elements—color, lighting, acoustics, and layout—together to create a cohesive and inviting space.

Focusing on the needs and preferences of your target audience is crucial, designing with the guest experience in mind to create a memorable dining environment.

Continuous improvement is essential. This involves reviewing and updating your design regularly to keep it fresh and relevant, and staying informed about new trends and technologies in dining space design.

Real-World Examples of Restaurants That Have Successfully Utilized Design Psychology

Real-world examples highlight how restaurants have implemented design psychology principles successfully to enhance guest satisfaction and increase sales.

For instance, a fine-dining restaurant may use soft lighting, elegant color schemes, and acoustic panels to create an intimate and luxurious dining experience, resulting in a space where guests feel relaxed and pampered, leading to longer stays and higher spending.

Conversely, a casual eatery might incorporate vibrant colors, upbeat music, and communal seating to foster a lively and social atmosphere, attracting a younger crowd looking for a fun and engaging dining experience, boosting guest turnover and repeat visits.

Highlighting Specific Design Choices and Their Outcomes

Specific design choices, such as using warm lighting to highlight food presentation or arranging seating to encourage social interaction, can impact guest perceptions and behavior significantly.

Highlighting these choices and their outcomes provides practical examples of how design can influence the dining experience.

Practical Tips for Optimizing Dining Space Design

Actionable Advice for Restaurant Owners and Designers

Implementing effective dining space design requires practical and actionable steps.

Here are some tips to help restaurant owners and designers optimize their spaces:

Choose Colors Wisely: Select color schemes that align with your restaurant’s concept, and desired guest experience. Use warm colors for energetic spaces, and cool colors for calm, relaxing environments.
Optimize Lighting: Ensure a balance of natural, ambient, and task lighting to create the right ambiance, and enhance the dining experience. Use dimmers to adjust lighting levels based on the time of day, and desired mood.
Consider Acoustics: Use sound-absorbing materials and strategically placed music to create a comfortable sound environment. Avoid excessive noise that can detract from the dining experience.
Plan the Layout: Design the layout to maximize space efficiency while ensuring guest comfort. Use a mix of seating types, and ensure clear pathways for easy movement.
Align Design with Brand Identity: Ensure that all design elements, from colors to furniture, reflect your brand identity, and resonate with your target audience.

Tips on Choosing Colors, Lighting, and Furniture

Choosing the right colors, lighting, and furniture can have a significant impact on the dining experience:

Colors: Choose colors that evoke the desired emotions, and match your brand’s personality. Test different shades to find the perfect balance.
Lighting: Invest in quality lighting fixtures, and consider the color temperature of bulbs. Use lighting to highlight key areas, and create focal points.
Furniture: Select comfortable and durable furniture that complements the overall design. Consider ergonomic options to enhance guest comfort.

Conclusion

The design of a dining space is a crucial component of the guest experience. Understanding and applying the psychological principles of color, lighting, acoustics, and layout helps restaurant owners and designers to create environments that influence guest behavior, enhance satisfaction, and boost sales.

Thoughtful design not only improves the dining experience but also reinforces brand identity, and drives business success.

Image: Adrien Olichon via Pexels

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An AI-generated image of street art depicting the dangers of commercial kitchens: knives, fire, boiling water, and steam

September 25, 2024by David Klemt David Klemt No Comments

Designing a Safe and Functional Kitchen

Designing a Safe and Functional Kitchen: Essential Considerations and Innovations

by Nathen Dubé

Sharp knives, fire, boiling water, and steam are just some of the dangers present inside a commercial kitchen.

The kitchen is the heart of any culinary establishment, but it is also a high-risk environment where safety and functionality are paramount.

Designing a safe and functional kitchen is crucial for protecting staff, ensuring efficient operations, and complying with legal standards.

This comprehensive guide delves into the essential elements of safe kitchen design, explores innovative safety technologies, and provides expert insights and practical checklists to guide your planning process.

Key Elements of a Safe Kitchen Design

Importance of a Well-Planned Layout and Workflow

A well-planned kitchen layout is the foundation of a safe and efficient kitchen. It minimizes hazards, enhances workflow, and reduces the risk of accidents.

Key considerations include:

Zoning: The separation of prep, cooking, and cleaning areas to prevent cross-contamination and ensure a logical workflow. Each zone should be clearly defined, and equipped appropriately to handle its specific tasks.
Ventilation: Adequate ventilation is essential to remove smoke, steam, and odors, ensuring a comfortable and safe working environment. Proper ventilation reduces the risk of respiratory issues, and maintains air quality.
Lighting: Sufficient lighting is crucial for visibility and safety. Well-lit workspaces reduce the risk of accidents, and help staff perform their tasks more effectively.

Effective zoning enhances kitchen safety and efficiency by minimizing the risk of cross-contamination, and streamlining workflow.

Key zones include:

Preparation Area: Should be equipped with ample counter space, cutting boards, and sinks for washing and prepping ingredients.
Cooking Area: Must include stovetops, ovens, and grills, with proper ventilation and fire safety equipment.
Cleaning Area: Should have dishwashers, sinks, and waste disposal units, and be separated from food prep and cooking zones to maintain hygiene.

The Role of Adequate Ventilation and Lighting

Proper ventilation and lighting are critical for maintaining a safe kitchen environment.

Effective ventilation systems remove harmful fumes and excess heat, while strategic lighting ensures that all work areas are well-illuminated to prevent accidents, and improve productivity.

Innovations in Safety Equipment and Technology

Overview of Modern Safety Equipment

Modern safety equipment has advanced significantly, providing better protection and efficiency.

Innovations include slip-resistant flooring, advanced fire suppression systems, and kitchen appliances with built-in safety features.

Slip-Resistant Flooring Options

Slip-resistant flooring is essential for preventing falls and injuries in the kitchen.

Options include:

Vinyl Flooring: Durable and easy to clean, with textured surfaces to enhance grip.
Rubber Flooring: Provides excellent slip resistance and comfort underfoot, reducing fatigue.
Epoxy Coatings: Applied over concrete floors to create a seamless, non-slip surface.

Fire Suppression Systems and Alarms

Fire safety is paramount in commercial kitchens. Modern fire suppression systems and alarms include:

Automatic Fire Suppression Systems: Installed above cooking equipment, these systems detect and extinguish fires quickly.
Heat and Smoke Detectors: Provide early warning of fire hazards, allowing staff to take immediate action.
Fire Extinguishers: Should be readily accessible, and maintained regularly.

Advanced Kitchen Appliances with Built-In Safety Features

Many modern kitchen appliances come with built-in safety features, such as:

Automatic Shut-Offs: Appliances that turn off automatically if not in use, preventing overheating and fire risks.
Lock Functions: Prevent unauthorized use, and accidental injuries.
Temperature Controls: Ensure precise cooking temperatures, reducing the risk of burns and overcooking.

Technology’s Role in Enhancing Kitchen Safety

Technology plays a significant role in enhancing kitchen safety.

Innovations include:

Smart Appliances: Connected devices that can be monitored and controlled remotely, providing alerts for potential issues.
Sensor-Based Systems: Detect hazards such as gas leaks or equipment malfunctions, and notify staff immediately.
Digital Checklists: Help staff follow safety protocols, and perform regular maintenance checks.

Ergonomics and Staff Efficiency

Importance of Ergonomic Design in Reducing Physical Strain

Ergonomic design is crucial for reducing physical strain, and preventing injuries in the kitchen.

Key elements include:

Adjustable Workstations: Allow staff to work at comfortable heights, reducing back and neck strain.
Anti-Fatigue Mats: Provide cushioning underfoot, reducing fatigue during long shifts.
Proper Equipment Placement: Ensure frequently used items are within easy reach to minimize repetitive strain injuries.

Examples of Ergonomic Equipment and Tools

Ergonomic equipment and tools enhance comfort and efficiency, including:

Ergonomic Knives: Designed with comfortable handles to reduce hand fatigue, and improve precision.
Adjustable Shelving: Allows for easy access to ingredients and equipment without excessive bending or stretching.
Height-Adjustable Tables: Enable staff to work at optimal heights, reducing the risk of musculoskeletal injuries.

Layout Considerations to Minimize Unnecessary Movement and Fatigue

A well-designed kitchen layout minimizes unnecessary movement and fatigue by:

Streamlining Workflow: Arranging equipment and workstations in a logical sequence to reduce walking and reaching.
Clear Pathways: Ensuring aisles are wide enough for safe movement, and free from obstructions.
Efficient Storage Solutions: Placing frequently used items within easy reach to minimize bending and stretching.

Legal and Regulatory Compliance

Overview of Legal Requirements for Commercial Kitchen Safety

Compliance with legal and regulatory requirements is essential for kitchen safety.

These regulations are designed to protect staff and guests, and include health and safety codes, fire safety standards, and more.

Key Regulations

Health and Safety Codes: Outline requirements for cleanliness, sanitation, and food-handling practices.
Fire Safety Standards: Specify the installation and maintenance of fire suppression systems, alarms, and extinguishers.
Building Codes: Ensure that kitchen design and construction meet safety standards for ventilation, lighting, and electrical systems.

Importance of Staying Updated with Local and National Regulations

Staying updated with local and national regulations is crucial for maintaining compliance and ensuring safety. Review and update safety practices regularly to align with the latest guidelines and standards.

Key Takeaways and Recommendations

Prioritize Safety: Make safety a core value in your kitchen design, and operations.
Regular Training: Ensure staff are trained on safety protocols, and the proper use of equipment.
Continuous Improvement: Review and update safety practices regularly to incorporate new technologies and regulations.

Examples of Innovative Solutions and Best Practices

Innovative solutions and best practices from case studies include:

Smart Technology Integration: Using connected devices to monitor kitchen safety and performance in real-time.
Sustainable Design: Incorporating eco-friendly materials and energy-efficient appliances to create a safer and more sustainable kitchen environment.

Checklist for Ensuring Safety in Kitchen Planning

Layout and Zoning: Ensure a logical workflow with separate zones for prep, cooking, and cleaning.
Ventilation and Lighting: Install adequate ventilation and lighting to maintain air quality and visibility.
Safety Equipment: Include slip-resistant flooring, fire suppression systems, and advanced appliances with safety features.
Ergonomics: Implement ergonomic design elements to reduce physical strain, and enhance efficiency.
Regulatory Compliance: Ensure compliance with health and safety codes, fire safety standards, and building regulations.

Key Considerations and Must-Have Elements

Regular Maintenance: Perform regular maintenance on equipment and safety systems to ensure they are functioning properly.
Staff Training: Provide ongoing training on safety protocols, and the proper use of equipment.
Safety Audits: Conduct regular safety audits to identify and address potential hazards.

Tips for Regular Safety Audits and Assessments

Scheduled Inspections: Conduct scheduled inspections to check the condition of equipment, ventilation, and safety systems.
Hazard Identification: Identify and address potential hazards, such as slippery floors, obstructed pathways, and faulty equipment.
Documentation: Keep detailed records of safety audits, maintenance, and staff training to ensure accountability and compliance.

Conclusion

Designing a safe and functional kitchen requires careful planning, attention to detail, and a commitment to ongoing safety practices.

By prioritizing safety in kitchen design and operations, you can protect your staff, enhance efficiency, and create a better working environment. Remember to stay updated with the latest regulations, invest in modern safety equipment, and train your staff on safety protocols continuously.

With these considerations in mind, you can design a kitchen that not only meets but exceeds safety standards, ensuring a productive and secure culinary space.

Safety should never be an afterthought in kitchen planning. It is an integral part of creating a functional and efficient workspace. Following the guidelines and tips outlined in this article will help you design a kitchen that supports the well-being of your staff, satisfaction of your guests, and the success of your culinary operations.

Image: Microsoft Designer

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A closeup photograph of four street tacos with meat, onions, and cilantro in soft corn tortillas

September 20, 2024by David Klemt David Klemt No Comments

National Taco Day Makes its Move

National Taco Day Makes its Move

by David Klemt

I call this a good start.

I don’t know how to break this to you, so I’m just going to say it: National Taco Day, one of the world’s most important holidays, has made a big move.

For the past 15 years, National Taco Day has been celebrated on October 4. That means that since its inception, the annual holiday that celebrates the taco has only fallen on a Taco Tuesday three times.

In fact, it didn’t even fall on Taco Tuesday until its third year, in 2011. National Taco Day didn’t repeat the feat again until 2016, and then 2022. Had the date remained the same in perpetuity, we wouldn’t get another National Taco Day on a Taco Tuesday until 2028 at the earliest.

Starting this year—in a week and a half, in fact—National Taco Day will fall on the first Tuesday in October.

I’m going to share my thought process after I first found out about this news.

How did I learn about this massive change? Via a post by Smirnoff. You see, National Taco Day and National Vodka Day have been linked since they each first launched in 2009.

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A post shared by Smirnoff (@smirnoff)

It seems that Smirnoff is none too pleased with this news, though they’ll reunite with National Taco Day in 2028.

My first reaction was “I can’t believe this is news,” for a few seconds. That evolved into “I can’t believe this took so long to resolve” rather quickly.

And then I told the KRG Hospitality team about this news.

Finally!

I’ve always thought “Why isn’t National Taco Day always on a Taco Tuesday?” when the holiday has come around.

Finally, someone has acted to rectify this oversight; Taco Bell appealed to National Day Calendar to change the date. It may seem to trivial for a fast-food giant (or anyone else, for that matter) to petition to have a holiday’s date changed when it isn’t a legal holiday.

However, according to a Taco Bell press release addressing this National Taco Day news, it’s rare that National Day Calendar makes such a change. The release goes on to quote Marlo Anderson, the founder of National Day Calendar, which launched in 2013.

“For years, we’ve celebrated National Taco Day on October 4th, but it’s always felt like there was a bigger opportunity to align it with something even more special—Taco Tuesday,” said Anderson.

Interestingly, another fast food chain is credited with creating National Taco Day: Del Taco. Keeping the trivia going, “National” reportedly doesn’t actually pertain to any one country; it’s just what the holiday is called.

While this news is certainly another win for Taco Bell and their, well, obsession with Taco Tuesday (understandable, of course), it’s a win for everyone who loves tacos.

Operators need to pull out all the stops for October 1, the first of the newly revised National Taco Day celebrations. Task your kitchen team with creating LTO tacos, crafting a super-premium version of your signature taco if you have one, and ensuring there are vegetarian- and vegan-friendly options to appeal to every single taco-loving guest.

Let’s go all out!

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September 16, 2024by David Klemt David Klemt No Comments

2024 Datassential 500: Guest Perception

2024 Datassential 500: Guest Perception

by David Klemt

Last week we took a look at the data-driven findings that identify, organize, and rank chain restaurants in the US, forming the Datassential 500.

This annual report sorts the 500 top-performing chains by segment. Further, Datassential identifies the top chains by both number of units, and sales.

In doing so, the F&B intelligence agency uses hard numbers to determine numbers one through 500.

But what about guest perception? Unit and sales growth may appeal to board members, investors, executives, and other hospitality professionals, but what matters to the people their restaurants serve?

It’s doubtful that even the staunchest fans of a particular restaurant chain are aware of or, frankly, care about how many locations they operate. Nor are they likely all that concerned about their annual revenue, unless they’re an investor as well.

To get to the bottom of how the public perceives chain restaurants in the US, and what brands they rank at the top, Datassential looked at six key metrics.

Those metrics? Food quality, service, experience, affordability, value for dollar, and net promoter score.

While the results aren’t exactly shocking, they’re quite telling. A handful of US chains dominate the consumer-facing metrics. And for the most part, they’re not among the top ten of the 2024 Datassential 500.

Anyone interested in reading this year’s report can do so via this link. Alright, let’s check out how the public ranks US chain restaurants.

Perception Matters

To make the comparisons easier, the top 10 US restaurant chains by unit and by sales are below.

Top 10: Total Units

Subway
Starbucks
McDonald’s
Dunkin’
Taco Bell
Domino’s Pizza
Burger King
Pizza Hut
Wendy’s
Dairy Queen

Top 10: Total Sales

McDonald’s
Starbucks
Chick-fil-A
Taco Bell
Wendy’s
Dunkin’
Burger King
Chipotle
Subway
Domino’s Pizza

Guest Perception

Okay, so those are the top performers in the US, by the numbers. Units were counted, sales were analyzed.

Now, these are the brands that guests feel are at the very top, organized into six categories.

Food Quality

Texas Roadhouse
Chick-fil-A
Longhorn Steakhouse
Cheesecake Factory
Ruth’s Chris Steak House

Service

Chick-fil-A
Texas Roadhouse
Longhorn Steakhouse
Cheesecake Factory
In-N-Out Burger

Experience

Chick-fil-A
Ruth’s Chris Steak House
Texas Roadhouse
Maggiano’s Little Italy
In-N-Out Burger

Affordability

Little Caesars
Freshii
Papa Murphy’s
Cici’s Pizza
Pollo Tropical

Value for Dollar

Papa Murphy’s
Little Caesars
Cici’s Pizza
In-N-Out Burger
Del Taco

Net Promoter Score

To determine this ranking, survey participants were asked “How likely would you be to recommend this chain to friends and family?”

Chick-fil-A
Texas Roadhouse
In-N-Out Burger
Longhorn Steakhouse
Portillo’s Hot Dogs
Cheesecake Factory
The Capital Grille
Ruth’s Chris Steak House
Maggiano’s Little Italy
Topgolf

Subway and McDonald’s may dominate the list in terms of number of units and annual sales, but Chick-fil-A dominates in one key area. Word-of-mouth marketing still matters, undeniably, and, according to Datassential, most consumers perceive Chick-fil-A as the restaurant chain to recommend.

Followed by Texas Roadhouse and In-N-Out Burger, smaller brands are delivering on important operational elements. Consumers at large appear to favor these brands when it comes to stretching their dollars, along with how they perceive the quality of food, the level of service, and the overall dining experience.

Operators interested in scaling their business need to set aside ego and desire, and look at their business objectively. They need to ensure they’re nailing the fundamentals and have the right systems in place first.

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September 13, 2024by David Klemt David Klemt No Comments

The 2024 Datassential 500

How Does the 2024 Datassential 500 Shake Out?

by David Klemt

The annual Datassential 500 ranking is a valuable report that identifies industry leaders, the fastest growers, and segment performance.

Further, this yearly report shows the scale of restaurant business in the US. In a word, it’s gargantuan.

Looking at 2023 data, the top 500 chains in the US operated 238,152 units. And those 238,000-plus restaurants generated $417.13 billion in 2023.

For the former, that’s growth of 2.1 percent in comparison to 2022. And for the latter, the top 500 grew by 7.5 percent compared to last year.

Those numbers are from just 500 chains; the report doesn’t take into account other chains or independent operators. When we add all dining and drinking establishments in the US, the industry generated $1.09 trillion in 2023.

Again, the US restaurant business is a colossus.

Perhaps unsurprisingly, limited-service and quick-service restaurants are the top-performing segments by unit within the Datassential 500. In 2023, the LSR segment consisted of 212,469, and unit growth was up by 2.3 percent. The QSR segment reached 170,241, representing unit growth of 1.9 percent.

In fact, every segment but one saw unit growth in 2023. One may assume the segment that slipped was fine dining. That’s usually a safe bet, but the segment actually saw the most growth. It was midscale restaurants that suffered a bit of a blow, shrinking by 0.1 percent.

That means that LSRs, QSRs, full-service restaurants (FSRs), fast casual, casual dining, and fine dining all grew. Further, that growth ranged from 0.3 percent (FSR) to 4.6 percent (fine dining).

There are many more insights, so I encourage anyone interested to download the report for themselves.

Segment Shakedown

Before we jump into the top US chains, let’s take a look at how the categories break down.

Type of Cuisine

American: 88
Pizza: 70
Desserts & Snacks: 69
Sandwich: 47
Coffee: 47
Burger: 37
Mexican: 36
Salad & Healthy: 31
Southern: 24
Asian: 22
BBQ: 12
Steakhouse: 11
Italian: 9
Seafood: 9
Greek & Mediterranean: 9

Growth by Segment: Unit (LSR)

Salad/Healthy: +11.2%
Coffee: +5.9%
Other: +4.6%
Dessert/Snack: +4.3%
Mexican: +3.0%
Chicken: +2.9%
Pizza: +1.6%
Bakery-Cafe: +0.8%
Sandwich: -0.4%
Burger: -0.4%

As we can see, Salad/Healthy LSRs saw almost double the growth by unit than the next-largest segment, Coffee.

Further, Sandwich and Burger shrunk slightly.

Growth by Segment: Unit (FSR)

Regional/Ethnic: +7.6%
Sports Bar: +3.8%
Midscale: +0.3%
Seafood/Steak: +0.1%
Italian/Pizza: -0.9%
American: -2.0%

Regional and ethnic full-size restaurants saw the most growth. In fact, they grew by twice the amount of sports bars, and several times more than midscale FSRs.

Growth by Segment: Sales

Limited-Service Restaurant: $338.18 billion (+8.1%)
Quick-Service Restaurant: $263.48 billion (+8.0%)
Full-Service Restaurant: $78.95 billion (+5.0%)
Fast-Casual Restaurant: $74.70 billion (+8.6%)
Casual-Dining Restaurant: $55.57 billion (+4.8%)
Midscale Restaurant: $20.05 billion (+4.5%)
Fine-Dining Restaurant: $3.33 billion (+10.7%)

The good news is that every segment saw sales growth in 2022, with Fine Dining and Fast Casual experiencing the biggest increases.

Of course, that’s relative. Fine Dining generated just $3.33 billion in comparison to LSRs, which generated more than $338 billion.

Still, positive growth is always great to see.

Growth by Segment: Sales (LSR)

Salad/Healthy: +17.0%
Chicken: +11.9%
Dessert/Snack: +10.1%
Coffee: +9.8%
Other: +9.3%
Mexican: +9.1%
Burger: +7.5%
Sandwich: +7.2%
Bakery-Cafe: +1.8%
Pizza: +1.6%

Not only did Salad/Healthy lead the way in LSR unit growth in 2023, it’s the top performer in terms of sales.

Again, the good news is that the Datassential 500 saw LSR sales growth across the board.

Growth by Segment: Sales (FSR)

Regional/Ethnic: +10.2%
Seafood/Steak: +6.7%
Midscale: +5.2%
Italian/Pizza: +4.2%
American: +3.8%
Sports Bar: +3.2%

As far as FSR performance, every segment experienced growth, with Regional/Ethnic leading the charge.

The Top 5(00)

So, which US chains are at the top? Well, an accurate answer depends on segment, number of units, and sales.

Oh, and it also depends on whether we’re talking about which chains Datassential have identified as industry leaders, and which are the fastest growers.

Industry Leaders

According to Datassential, the top five US chains by number of stores are Subway (20,133), Starbucks (16,346), McDonald’s (13,449), Dunkin’ (9,580), and Taco Bell (7,405).

However, that ranking changes a bit when we look at through the lens of sales. In that case, the top five are McDonald’s ($52.91 billion), Starbucks ($29.98 billion), Chick-fil-A ($21.58 billion), Taco Bell ($13.95 billion), and Wendy’s ($12.29 billion).

Those are the industry stalwarts. How do the fastest-growing US chains stack up?

Fastest Growers

Looking at unit growth over the span of one year, the top performers in the US are 7 Brew (+373.7 percent), The Peach Cobbler Factory (+358.3 percent), Hangry Joe’s Hot Chicken (+281.8 percent), KPOT Korean BBQ & Hot Pot (+275.0 percent), and Foxtail Coffee Co (+176.2 percent).

Switching gears to sales growth over a single year, Hangry Joe’s Hot Chicken led the way, growing by more than 500 percent. Hangry Joe’s is followed by The Peach Cobbler Factory (+332.5% percent), Nick The Greek (+304.7 percent), 7 Brew (+267.3 percent), and Pizza King Inc (+264.7 percent).

However, Datassential gets more granular in their 2024 report, breaking down the top five across multiple segments.

Top Ranked By Unit (Overall)

Top 5: Quick Service

Subway
McDonald’s
Dunkin’
Taco Bell
Domino’s Pizza

Top 5: Fast Casual

Starbucks
Chipotle
Panera Bread
Wingstop
Tropical Smoothie Cafe

Top 5: Midscale

Waffle House
IHOP
Denny’s
Cracker Barrel
First Watch

Top 5: Casual & Fine Dining

Applebee’s
Buffalo Wild Wings
Chili’s
Olive Garden
Outback

Top Ranked By Unit (Growth)

Top 5: Quick Service

7 Brew
The Peach Cobbler Factory
Foxtail Coffee Co
Cupbop
Swig

Top 5: Fast Casual

Hangry Joes Hot Chicken
Just Love Coffee Cafe
The Great Greek Mediterranean Grill
Nautical Bowls
Ellianos Coffee Co

Top 5: Midscale

Snooze Restaurant
Eggs Up Grill
Kura Sushi Bar
Another Broken Egg Cafe
Maple Street Biscuit Co.

Top 5: Casual & Fine Dining

KPOT Korean BBQ & Hot Pot
Topgolf
The Juicy Crab
Jinya Ramen Bar
Hopdoddy Burger Bar

There are many more insights to be had, so please consider downloading your own copy of the 2024 Datassential 500 report here.

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September 6, 2024by David Klemt David Klemt No Comments

Is Demand for Delivery Down?

Is Demand for Delivery Down?

by David Klemt

I have done this. Cargo straps required.

Not too long ago, it seemed as delivery was going to overtake people’s desire to enjoy a restaurant in person, but that trend may be on a downward swing.

At first, this trend made perfect sense, for obvious reasons. For a while, the best way for consumers to enjoy their favorite restaurants and show support was to order delivery.

Rideshare companies jumped on delivery, as did several platforms. When guests were able to visit restaurants in person freely, delivery had become a habit for many of them. In fact, ordering delivery had become the de facto method of engaging with restaurants for a not-insignificant percentage of people.

However, operators and their teams weren’t shy about exposing their delivery “partners.” I think it’s fair to describe the fees operators were being charged by some of these partners as outrageous.

When the public found out about these fees, they didn’t sit well. Takeout, carryout, takeaway, order for pickup… Whatever your preferred nomenclature, people began seeing it as superior to delivery. This shift in consumer behavior was driven by a desire to support their favorite restaurants.

Of course, there are other factors that affected people’s move away from delivery. I’m confident in saying that most of us who have ordered delivery at some point in the last couple of years has experienced at least one of several downsides.

However, has delivery really fallen out of favor? Have takeout or drive-up pickup actually been passing up delivery?

Datassential’s 2024 Midyear Trends Report has some insights that can answer those questions. You can (and should) check it out for yourself here.

The State of Takeout and Delivery

To obtain a snapshot of the state of the performance of delivery and takeout, Datassential conducted a survey in May of this year. The F&B intelligence platform surveyed 400 US operators and more than 1,500 US consumers.

According to Datassential, nearly half of restaurant operators reported increases in guests dining in person at their restaurants.

Perhaps more telling, however, is that Datassential’s survey reveals that half of restaurants aren’t even offering delivery. I don’t know the breakdown of operators who once offered delivery and stopped doing so versus operators who never offered delivery.

What I do know is that there are, as I alluded to up top, many reasons for people to eschew delivery. Chief among these are cost, and the condition of the order when it arrives to the guest.

On the operator side, cost is once again a consideration, as are negative reviews and complaints. More than one study has shown that operators often get the blame when a third party botches an element of the delivery. These complaints can include food being delivered lukewarm or cold, parts of the delivery missing, or the wrong items being delivered to someone.

But, again, is demand for delivery slipping?

Per Datassential’s report, takeout and catering are outpacing the growth of delivery for US operators. Almost 40 percent of operators who participated in Datassential’s survey reported an increase in frequency for takeout and catering orders. In comparison, just 20 percent of respondents ordered an increase in delivery order.

Just eight percent of operators indicated a decrease in takeout and delivery. In fact, the greatest decrease impacts catering (14 percent), according to Datassential’s report.

Takeaway

Delivery, simply put, doesn’t work for every operator or every concept. Moreover, it looks like consumer desire for takeout is on a greater upswing in contrast to delivery.

For concepts that succeed with delivery, it’s imperative that operators control the process rather than cede to third parties, in my opinion.

The best way forward will vary from business to business. Operators and their teams need to be ruthless the quality, consistency, accuracy, and value of all orders, whether placed in person, for takeout, or for delivery. Further, when it comes to takeout and delivery, the ordering process must be convenient.

What’s clear is that every operator needs to dive into their data, determine how guests prefer to order from their restaurant, and pursue those preferences to enhance the guest experience.

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September 5, 2024by David Klemt David Klemt No Comments

15 Years of Consulting: Lessons Learned

15 Years of Consulting: Lessons in Adaptability, Innovation, and Resilience

by Doug Radkey

Note: AI-generated image.

I made a life-altering decision to start consulting in August of 2009, and over the past 15 years I’ve accumulated more than 30,000 hours of experience.

Over the past 15 years and the span of those tens of thousands of hours, I’ve contributed to the creation of more than 270 new concepts. Further, these concepts boast a long-term success rate of over 98 percent.

Reaching these achievements, along with fifteen years in business, hasn’t been easy.

There have been many ups and many downs, just like any other business. There are times of standing high on a mountain, and times of wanting to throw in the towel.

One key element I have learned over the years is that success goes far beyond having a great vision and concept; it requires passion, precision, and execution.

This journey has been filled with pivotal moments, and by what I can boil down to as three fundamental and invaluable lessons in adaptability, innovation, and resilience. Each of those lessons are now rooted in KRG Hospitality’s core values of being creative, cultivated, and connected.

The lessons I’ve learned over the course of 15 years and more than 270 new concepts can help you and your business start, stabilize, and scale.

The Power of Adaptability

Adaptability in business refers to the ability to adjust and respond to changing circumstances, market conditions, and guest expectations. It is the capacity to pivot strategies, embrace new technologies, and innovate to stay both relevant and competitive.

For me, adaptability has meant developing a mindset of openness to change and a willingness to experiment with new approaches.

It is not just about reacting to changes as they happen but anticipating shifts in the market proactively, while preparing to meet new challenges. In business, this means being flexible in your operations, resilient in the face of adversity, and innovative in problem-solving.

An adaptable hospitality business is one that can adjust its offerings quickly, refine its services effectively, and even overhaul its business model if necessary. As importantly, such a business can accomplish all of that without any long-term disruption to its profit channel.

To embrace adaptability, you must foster a culture that values learning and continuous improvement. This involves encouraging your employees to share their ideas and feedback, experimenting with new systems, technologies and processes, and being open to constructive criticism.

It also requires a deep understanding of the market and guest needs, allowing your business to pivot swiftly and efficiently when necessary.

Adaptability is also about having a growth-based mindset. This type of mindset involves seeing challenges as opportunities for growth rather than obstacles. By being adaptable, your business can stay ahead of the competition, meet changing guest expectations, and capitalize on new opportunities.

In a world where change is the only constant, embracing adaptability is not just an option, it’s a necessity for long-term success. As entrepreneurs, cultivating this trait can lead to innovative solutions, greater efficiency, and a more sustainable long-term business model.

Embracing Innovation

Embracing innovation is about thinking creatively, challenging the status quo, and finding novel solutions to existing problems.

In this industry, innovation can manifest in various forms, such as adopting new technologies, offering unique guest experiences, or implementing sustainable practices. As an entrepreneur and leader in this industry, embracing innovation is crucial for staying relevant.

You will begin to see here how each of these lessons truly go hand in hand. For me, however, innovation goes beyond mere invention; it involves applying new concepts and ideas in practical and impactful ways.

In hospitality, innovation can be product-driven, such as developing a new menu item or room service feature. Or it can be process-driven, such as streamlining operations through a new technology integration. Innovation can also be guest-centric, focusing on enhancing the overall guest experience through personalized services or tailored offerings.

For example, the introduction of mobile check-in and digital concierge services in hotels revolutionized the guest experience, offering convenience and personalization.

Similarly, restaurants have innovated by incorporating immersive dining experiences that engage all of our senses. These innovations not only attract new guests but also differentiate a business in a crowded marketplace.

How to Embrace Innovation

To embrace innovation, your business must cultivate a culture that encourages creativity and experimentation. This involves creating an environment where employees feel empowered to suggest new ideas, and are not afraid to take risks.

Leadership plays a critical role in setting the tone for innovation, providing the necessary resources, and fostering an open-minded atmosphere.

One practical way to embrace innovation is to stay up to date about industry trends and technological advancements. Attending industry conferences and participating in webinars and mastermind groups can provide valuable insights and inspiration.

Additionally, businesses in this industry should invest in research and development (R&D) to explore new opportunities and test innovative concepts.

Finally, embracing innovation requires a willingness to adapt and iterate. Not every new idea will be successful, but the process of trying, learning, and refining is critical for continuous growth.

Your business should establish mechanisms for evaluating the effectiveness of new initiatives, and be prepared to pivot when necessary.

Fostering a culture of creativity, staying informed about trends, and actively seeking new opportunities helps your business innovate in ways that enhance the guest experience, and drive long-term financial success.

Driving Resilience

Resilience in business refers to the ability to withstand and recover from challenges, setbacks, and unexpected changes. It involves maintaining stability and continuity while adapting to new circumstances.

In further business context, this includes the ability to manage financial pressures, operational disruptions, shifts in consumer behavior, or even personal setbacks. Resilience also encompasses the mental and emotional strength to stay focused and positive in the face of adversity.

Resilient businesses are not immune to problems; rather, they are equipped to handle them effectively, and learn from the experience.

In my experience, you must be willing to prioritize building strong relationships with guests, community partners, and industry peers in order to embrace innovation. These connections provide a support network that can offer assistance, advice, and resources during tough times. Collaborations with local businesses and partnerships with suppliers can also provide you with a critical support line.

Real-World Resilience

Personal anecdotes often serve as powerful illustrations of resilience, providing real-world examples of overcoming adversity and demonstrating the strength required to persevere. Real-life examples show that resilience is not just an abstract concept but a practical quality that can be developed and applied in everyday life.

These stories often detail the emotional, mental, and physical hurdles faced, and the strategies used to overcome them.

For example, a story about recovering from a business failure can illustrate the importance of maintaining a positive mindset, and seeking new opportunities. Perhaps it is a career setback, a health challenge, or a natural disaster. Regardless, these personal stories often include reflections on the lessons learned from facing adversity.

These reflections can range from practical advice, such as the importance of planning and preparation, to emotional insights, such as the value of gratitude, and the strength found in vulnerability. Stories of resilience serve as a reminder that setbacks and challenges are a natural part of life, and that it is possible to overcome struggles with determination and support.

Lastly, building resilience also involves cultivating a positive and proactive mindset. It’s imperative to view challenges as opportunities to innovate and improve. This can mean reevaluating business models, exploring new revenue streams, or investing in your people for further training and development.

Resilient businesses are not just reactive, they are proactive in anticipating potential issues and preparing for them. By building strong relationships, learning from setbacks, and maintaining a positive outlook, your business can navigate challenges and emerge stronger.

Core Values in Action

Core values are the fundamental beliefs and guiding principles that shape the culture, decision making, and identity of your business. They are the compass that directs the actions and attitudes of everyone within your organization, from leadership to frontline employees.

In the hospitality industry, core values are particularly crucial as they also define the guest experience and set the tone for interactions with guests, employees, partners, and the community.

For entrepreneurs and leaders in this industry, developing and embracing core values is crucial for creating a cohesive and purpose-driven business. Core values not only guide strategic decisions but also inspire and motivate the team, ensuring alignment with the mission and vision.

Over the past 15 years, our journey in the industry has been guided by these three core values: Creative, Connected, and Cultivated. These values have aligned perfectly with the lessons I’ve learned and shared about being resilient, innovative, and adaptable.

Our Core Values

Creativity is at the heart of innovation. It involves thinking outside the box, challenging conventions, and finding unique solutions to problems.

In the hospitality industry, creativity is needed for differentiating a brand and providing memorable experiences. Our creative approach has allowed us to design distinctive concepts, develop engaging strategies, and craft personalized staff and guest experiences.

Embracing creativity means exploring new ideas constantly, and staying open to unconventional approaches.

Being connected refers to fostering strong relationships with guests, community partners, and industry peers. It’s about building a network of support and collaboration that extends beyond the business itself.

In times of adversity, these connections have been invaluable. Whether it’s partnering with local businesses during economic downturns or engaging with guests through personalized communication, staying connected has helped us navigate challenges and seize on potential opportunities.

Lastly, cultivation is the process of continuous growth and improvement. It involves nurturing talent, refining processes, and striving for excellence.

In our experience, being cultivated means committing to lifelong learning, and embracing a growth-based mindset. This value has driven our dedication to professional development, the quality in our deliverables, and operational efficiency.

To embrace core values, your business must integrate them into every aspect of operations. This includes staff onboarding practices, guest interactions, and strategic decision making. You and your leaders should model these values and encourage employees to do the same.

Demonstrating and reinforcing your core values consistently allows you to create a strong, unified culture that resonates with both employees and guests.

And the end of the day, you have to remember that core values provide direction, inspire action, and foster a sense of purpose.

Conclusion

As I sit back and reflect on the lessons learned from 15 years of consulting in the hospitality industry, it’s clear that the journey has been shaped by the powerful forces of adaptability, innovation, and resilience.

These experiences have not only defined our approach but have also laid the foundation for future endeavors. The hospitality landscape evolves continuously, with new challenges and plenty of opportunities on the horizon. From technological advancements to shifting guest preferences, the industry is truly poised for positive transformation.

Looking ahead, however, it’s crucial for businesses to remain flexible and open to change.

For us, continuing to embrace adaptability means staying agile in the face of uncertainty, and being ready to pivot when necessary. Innovation will continue to play a pivotal role, driving new concepts and experiences that set businesses apart.

Resilience, as always, will be the foundation that supports us through trials and tribulations, ensuring that we meet the characteristics needed to win.

I strongly encourage you to internalize these three qualities in your own journey. Whether you’re an entrepreneur, a coach or consultant, or an industry professional, integrating them into your own set of core values—be it creativity, connection, cultivation or any other set of values—will anchor you in your pursuit.

These values are not just guiding principles but also a source of strength and inspiration.

Embracing adaptability, innovation, and resilience, and staying true to our core values, has made us confident in navigating this ever-changing terrain with purpose over the next 15 years.

Who’s with us?

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August 30, 2024by David Klemt David Klemt No Comments

Game On: Datassential’s Midyear Report

Game On: Datassential’s Midyear Trends Report

by David Klemt

Brought to you by Xbox, Scorpion Gaming, and cool photography.

The 2024 Midyear Trends Report released by Datassential earlier this month contains an intriguing revelation that savvy operators can leverage.

There is, of course, interesting and useful information throughout. After all, Datassential conducted a survey of 1,500-plus US consumers, along with 400 US foodservice operators.

Surveying nearly 2,000 people is going to garner some helpful insights.

For example, we know that many people are concerned with their nutrition. Along with that comes reading nutrition labels. However, US consumers appear to throw that behavior to the wayside when dining out.

According to Datassential’s survey results, 62 percent of consumers in the US read the nutrition labels on new items before selecting them for purchase at grocery stores. But nearly that same percentage of consumers, 58 percent, don’t consider diets or nutrition when choosing where they’re going to eat.

What that says to me is that people still viewing dining out as a treat or an occasion. Most people, when treating themselves and others, see it as an escape. An escape from the stresses of work, of life, and from eating “boring” foods.

People are still driven to leave home to gather, socialize, and have fun. And restaurants and bars still play a major role in meeting those needs and desires.

Negative and fear-mongering stories may be getting all the clicks, but Datassential’s findings are much less on the doom-and-gloom side of the equation. Per their midyear report, nearly 90 percent of US restaurant operators have seen increases in traffic (46 percent) or had their traffic remain the same (42 percent) so far this year. Just 12 percent of operators reported decreases in traffic, according to Datassential.

Game On

Now, let’s look at the data in this report that really caught my attention.

The Datassential report reveals that 61 percent of survey respondents play video games. Citing Entertainment Software Association data, close to 200 million Americans are gamers. Going further, gaming spans all ages. Last year, gamers spent well over $50 billion on this particular hobby. MarketWatch claims even combined, the global sports and movie industries don’t outperform video games financially.

Of all respondents to the Datassential survey, a quarter aren’t gamers, and 15 percent “used to” play video games. That latter group consists mainly of Gen Xers. And, hey, fair enough—some people don’t enjoy or have time for video games.

In contrast, however, 23 percent of survey respondents label themselves “avid gamers.” Gen Z, Millennials, and men make up the majority of this group of consumers.

Almost 40 percent (38%) classify themselves as “casual.” This group consists mainly of Gen X, Gen Z, and women.

Alright, so…what does this have to do with restaurant operators? Well, gamers spent $57 billion just on video games. Per Datassential, 45 percent of survey respondents have made F&B purchases after consuming video game-related ads or content. This is true of 63 percent of US Gen Z consumers, and 56 percent of US Millennials.

These stats tell me that gaming pays not just for console manufacturers and game producers, but also for F&B operators. It would seem to me, then, that operators with concepts that can leverage video games in an authentic manner should give strong consideration to doing so.

So, game on?

Image: Jose Gil on Unsplash