Restaurant operations | KRG Hospitality

June 19, 2023by David Klemt David Klemt No Comments

Credit Card Competition Act, Take Three

Credit Card Competition Act, Take Three

by David Klemt

Here we go again: Bipartisan lawmakers in the House and Senate are taking another shot at the Credit Card Competition Act.

After the incredibly underwhelming progress of the Credit Card Competition Act of 2022, lawmakers are making another move. Now, a bipartisan effort is coalescing around the Credit Card Competition Act of…2023.

The “new” bill was introduced on June 7. On the Senate side, Senators Dick Durbin (D-IL) and Roger Marshall (R-KS) are trying to push the bill forward. In the House, Representatives Lance Gooden (R-TX) and Zoe Lofgren (D-CA) are driving the effort.

Roughly eight months ago it was revealed that 1,802 merchants drafted, signed, and sent a letter to the House and Senate. To summarize quickly, the merchants were pushing for the bill to become law. Another supporter of the CCCA? The National Restaurant Association, claiming that the bill could save merchants $11 billion a year in fees.

Of course, a lot is going on since the introduction of the CCCA of 2022. For one, it’s being widely reported that House Republicans are “revolting,” blocking bills and effectively paralyzing the chamber. There’s also the matter of the second indictment of a former president.

However, reporters who know far more than I about the inner workings of Congress seem optimistic. While there’s drama in the lower chamber, there are articles circulating that seem to think the CCCA of 2023 has enough bipartisan support to pass.

What’s the CCCA Again?

The Credit Card Competition Act of 2023 addresses what the bipartisan lawmakers pushing the bill forward refer to as “the Visa-Mastercard duopoly.”

As I and other journalists have reported previously, Visa and MasterCard in the crosshairs of this bill because of their control over credit card markets. The Merchants Payments Coalition (MPC) said last year that Visa and MasterCard control about 576 million credit cards. That equates to nearly 90 percent of credit and debit cards.

Looking at just the US a couple of years back, people lit up their credit and debit cards for $3.49 trillion in transactions in 2021. In the US, in 2021, the $3.49 trillion in transactions meant Visa and MasterCard collected $77.48 billion in swipe fees.

To combat what some lawmakers are calling a duopoly, the CCCA of 2023:

requires credit cards issued by banks with more than $100 billion in assets to be routed through at least two unaffiliated networks;
requires that the above banks create competition and allow smaller companies to compete in credit-card processing by offering a non-dominant network choice, also known as “dual routing”;
and block networks that are “owned, operated, or sponsored by a foreign state entity” to strengthen national security.

A press release with a link to a one-pager can be found on Rep. Lofgren’s website here.

If you support the CCCA, you can let your lawmakers know by clicking this link.

Image: Avery Evans on Unsplash

White "Reserved" sign in wooden block on table

June 14, 2023by David Klemt David Klemt No Comments

Why You Need to Use Direct Bookings

Why You Need to Use Direct Bookings

by David Klemt

A new report from guest retention platform SevenRooms shows that like delivery, guests prefer to support restaurants directly when it comes to reservations.

Similar to their awareness of third-party delivery platform fees, today’s guest appears to be aware that third-party marketplaces cost restaurants and bars too much.

Let’s consider the guest discovery journey. According to their 2023 Dining Discovery & Booking Report, SevenRooms says most guests discover new restaurants via word of mouth. In fact, 61 percent of people rely on family, friends, and co-workers to find new restaurants. A third of diners use Google (33 percent), and nearly as many use social media (29 percent).

So, what role do third-party marketplaces play in restaurant and bar discovery? Per SevenRooms, not even ten percent of people who discover new places to grab a bite or a drink use such platforms.

Their research shows that just nine percent of diners use OpenTable to find new restaurants. However, that’s three times the number of diners that Resy (three percent) is seeing use their platform for discovery.

Okay, so what does this mean to you, the operator? It means that you should be leveraging a direct-booking feature. Guests are telling us how they want to experience restaurants and bars. They’ve let us know they prefer direct delivery. Now, they’re letting us know they prefer direct booking.

In other words, give them what they want: user-friendly ways to support your business. Make it easy to find you on social. Ensure your website is functional and easy to navigate. And give delivery and booking buttons prime real estate on your website so guests can find them quickly.

I also recommend communicating that you offer direct bookings, and thanking those who use that functionality for supporting your business directly. This can, of course, be done via automated marketing emails.

For more information—including how many diners call restaurants directly to make reservations—please read the SevenRooms press release below. You can also download their latest report here.

SEVENROOMS CONSUMER DATA UNVEILS HOW GUESTS ARE DISCOVERING AND BOOKING RESTAURANTS

Leading guest experience and retention platform highlights consumer expectations for discovering new restaurants and making reservations

NEW YORK (June 7, 2023) – SevenRooms, a guest experience and retention platform for the hospitality industry, released its latest consumer report, “2023 Dining Discovery & Booking Report,” highlighting how guests discover new restaurants and book reservations. One thing is clear – diners are utilizing many channels for discovery – from word of mouth to a variety of online channels. Nearly two-thirds (61%) of diners hear about or discover new restaurants from friends, family and co-workers, followed by 33% using Google, 29% searching social media for restaurant profiles and 22% discovering through social media influencers or trusted sources. Only a small percentage use third-party platforms such as OpenTable (9%) and Resy (3%) to discover new restaurants.

“Coming out of the pandemic, operators are navigating an entirely new landscape which includes how diners are discovering and booking reservations,” said Joel Montaniel, CEO & Co-Founder of SevenRooms. “In this new world three things are clear: being everywhere diners are online is table stakes, diners prefer to book directly as opposed to using a third-party app, and while third-party apps are still important, Google is quickly becoming one of the preferred destinations for diners when they don’t go direct to the restaurant.”

Defining today’s restaurant guest

In the United States, today’s guests expect more than just a meal, and creating opportunities to build loyalty will set restaurants apart. Each experience can turn a one-time diner into a loyal guest – but it must include personalized touches from start to finish. It is critical for operators to own their data to create a relationship with each guest based on preferences, past visits and upcoming special occasions noted when booking direct. By building this relationship, operators are able to be more proactive with their guests, personalize dining experiences and use the data they collect to curate experiences that will ultimately drive more revenue.

The beauty of a direct booking platform is the ability to capture that data; for example, asking the guest when they are booking if they are celebrating anything special, or noting dietary preferences. Guests are also willing to make that extra step to make sure they have an excellent experience – nearly half (45%) of diners will call the restaurant directly to book a reservation, and 35% will book through the restaurant’s website. Twenty-nine percent of diners also say that they receive better experiences at the restaurant when they book direct, and more than 1 in 4 (27%) feel restaurants prioritize their reservation when doing so.

Similar to how today’s diners are catching on to the experiential benefits of booking direct, they are also realizing that third-party platforms are not actually in the best interest of the restaurant. Sixty-one percent believe that making reservations directly with the restaurant, rather than with a third-party reservation platform, is better for the restaurant. Additionally:

29% of respondents want to do all they can to directly support restaurants
17% of respondents noted that third-party reservation platforms charge too much in fees to the restaurant, and guests would rather not have the restaurant incur that cost

“As the expectation for incredible experiences grows, third-party reservation platforms are losing market share as diners prefer to book directly with restaurants to ensure they get the best experience,” said Montaniel. “SevenRooms has always been dedicated and focused on empowering operators to deliver the most personalized guest experiences. Our omnichannel approach, enabling restaurants to meet guests wherever they are, whether through global discovery and booking channels or a restaurant’s own website, helps operators serve diners in this new world while helping them operate more sustainable and profitable businesses.

To learn more about SevenRooms, please visit www.sevenrooms.com.

About SevenRooms

SevenRooms is a guest experience and retention platform that helps hospitality operators create exceptional experiences that drive revenue and repeat business. Trusted by thousands of hospitality operators around the world, SevenRooms powers tens of millions of guest experiences each month across both on- and off-premises. From neighborhood restaurants and bars to international, multi-concept hospitality groups, SevenRooms is transforming the industry by empowering operators to take back control of their businesses to build direct guest relationships, deliver exceptional experiences and drive more visits and orders, more often. The full suite of products includes reservation, waitlist and table management, online ordering, mobile order & pay, review aggregation, email marketing and marketing automation. Founded in 2011 and venture-backed by Amazon, Comcast Ventures, PSG and Highgate Ventures, SevenRooms has dining, hotel F&B, nightlife and entertainment clients globally, including: MGM Resorts International, Mandarin Oriental Hotel Group, The Cosmopolitan of Las Vegas, Wynn Resorts, Jumeirah Group, Hard Rock Hotels & Resorts, Wolfgang Puck, Michael Mina, Bloomin’ Brands, Giordano’s, Australian Venue Company, Altamarea Group, AELTC, The Wolseley Hospitality Group, Dishoom, Live Nation and Topgolf. www.sevenrooms.com

Image: Алексей Вечерин on Pexels

Martinis at Bemelmans Bar inside the Carlyle hotel in New York City

June 9, 2023by David Klemt David Klemt No Comments

Own Your Team’s Excellence

Own Your Team’s Excellence

by David Klemt

If you and your team are producing an incredible food or drink item, don’t just be proud—make it your signature and own it.

As Chef Brian Duffy says during his demos and speaking engagements, people can eat and drink anywhere. Further, with just a handful of major food suppliers operating throughout North America, operators are using much of the same ingredients.

With that in mind, then, it’s crucial that operators and their teams innovate. Doing so ensures that hospitality professionals are staying current on consumer demands and trends; constantly seeking be educated and share information; and making sure their business stands out from others.

A commitment to standing out can also motivate a team to elevate their techniques. In turn, they can truly “own” an item. Creating something incredible—and replicating it order after order consistently—can become a brand and team’s calling card.

Does your kitchen team turn out a fantastic signature burger? Has your business become known as the place for chicken wings because of your kitchen team?

Has your bar team perfected the Margarita? Are they so good at crafting Frozen Irish Coffees that your bar is on Glendalough Distillery‘s radar?

When you identify what your team is producing at an extraordinary level, you need to make certain you loudly own it.

A Real-world Example

For a high-level example of what I’m talking about, we can look at the Carlyle in New York City.

This landmark Rosewood Hotel is known for delivering peerless service. However, a venue inside this sophisticated resort is known for a specific item.

Bemelmans Bar, an escape from the hectic streets of New York, is known for the Martinis the bar team produces. (They’re also known for their red jackets, but those aren’t for sale.)

It may be a bold statement considering the level of bars and cocktails in the city, but Bemelmans Bar (and therefore the Carlyle) owns the Martini in NYC. In fact, the bar serves a staggering 1,000 Martinis a night. More often than not, the Martinis that cross the bar or leave the service well are dirty or extra dirty. This has been the case since at least 2021.

So famous are the Bemelmans’ Martinis that the Carlyle sells an at-home kit, yours for just $395. It’s their latest promotion, though, that makes it evident Bemelmans and the Carlyle are taking ownership of the Martini.

Guests of the Carlyle can now book their Martini Retreat, a two-day experience that centers around their signature cocktail. If, perhaps, you think that $400 is a bit steep for their Martini Box, prepare for true sticker shock. The Martini Retreat experience starts at $4,895 for two guests.

However, the package is rather impressive and encapsulates the Carlyle’s ownership of the Martini. The Carlyle Martini Retreat includes:

a two-night stay in a Madison Room or Premier Suite;
a Bemelmans Bar Martini Box;
enrollment in the Bemelmans Master Martini Class (valued at $495), a 45-minute experience during which guests learn how the bar team crafts multiple variations of vodka and gin Martinis, and their new Madeline’s Vesper cocktail;
a two-course Martini lunch at Dowling’s at The Carlyle; and
a curated list of where to go to try other great Martinis throughout NYC, put together by Dimitrios Michalopoulos, bar manager at Bemelmans.

Takeaway

So, am I suggesting that operators create an experience that costs thousands of dollars? Well…I mean, if your concept can succeed with such a promotion, absolutely. If doing so would resonate with enough guests to make it feasible and become a steady (and impressive) revenue stream, go for it.

However, what I’m really attempting to drive home here is the power of becoming known for even a single signature item. And, hey—your item, in your market, may be the Martini.

Owning an item means screaming from the rooftops and hills that it’s yours. That your team’s version is the one to have; the one people in the know have to have. Taking ownership of your team’s excellence translates to becoming a destination for it, to driving repeat visits once people have experienced it.

Of course, with that ownership comes the responsibility to elevate all other elements of your business. Every other item on the menu must be produced and served at the highest level. This ensures the entire guest experience wows the guests, and the signature item is essentially a driver and the cherry on top.

It’s time to review what your team produces so well that your brand owns it. Should this introspection yield no results, it’s then time to see what other operators are known for and discover what item or items you and your team can improve upon. What’s something that works with your brand that you feel confident you and your team can own?

There’s power, money, and long-term success in something on your menu. It’s time to uncover it and take ownership.

Image: The Carlyle

June 7, 2023by David Klemt David Klemt No Comments

Time to Revisit Your Hours of Operation?

Time to Revisit Your Hours of Operation?

by David Klemt

Many operators, in response to the past few years, find themselves slashing dayparts—even entire days—from their hours of operation.

Obviously, this makes sense. Reducing the hours a restaurant or bar is open can control and reduce many costs.

However, the industry is now seeing an increase in demand from restaurants and bars. Today’s consumer craves a return to normalcy. While delivery, carryout and pickup are here to stay, people want to return to in-person dining.

Generally speaking, people like to socialize (at least with their friends). And, of course, restaurants and bars are spaces that fill the human desire to get social.

At KRG Hospitality we certainly understand how reducing hours and days of operation can be effective. In fact, depending on experience level, concept, and market, we sometimes recommend that clients limit their hours and days when first starting out.

However, as guest demand for in-person dining and drinking increases, it may be time to revisit this operational strategy.

Increase Visit Time, Increase Check Average

There’s a battle that takes place in restaurants and bars during each daypart. Operators are engaging an opponent they can’t defeat: time. The best one can hope for is to keep up with or otherwise mitigate the damage done every time the second hand on a clock ticks.

Therefore, most operators fall into two camps: Turn and Burn, and Keep ’em Spending. Hospitality and foodservice professionals are (or should be) familiar with both strategies.

Turn and Burn is about getting butts in seats, getting orders out, and getting those butts out of those seats as quickly as possible to get new butts back into them.

Keep ’em Spending focuses on increasing check sizes through keeping guests in the venue. The thought is that the longer a guest or party is on site, the more money they’ll spend.

Rich Shank, vice president of Research & Insights at Technomic, addresses the latter strategy in a recent Restaurant Business article.

“What is interesting about that is that our dining party often impacts the time we spend in a unit and the amount of money we spend while dining in,” writes Shank. “Even dining in at limited-service restaurants is heavily correlated with how much time we spend inside the restaurant—making time and money a perfect pairing in most restaurants.”

It’s not Just About Hours

In Shank’s Restaurant Business article, the Technomic VP points out that families with children tend to spend the most at restaurants. This has long been the case, and it’s logical. After all, families with children are purchasing more F&B items per visit, and they tend to spend more time per each visit as well.

However, it’s not just about the hours and days of operation, as Shank also says. It’s important that a given concept be attractive to occasion-driven guests. In other words, people gather in pairs and groups for life events.

These events can be as simple yet important as date night, to huge gatherings such as large family reunions or corporate gatherings. So, when operators are reviewing their hours of operation and the days and dayparts they’re open for business, the guest experience and their life events are important elements to consider.

“If you take the time and money relationship seriously, then the idea of throttling down on our dine-in strategies to preserve on costs or to narrow our focus to off-premises occasions only is causing us to miss the occasions that drive check-average,” writes Shank.

It’s also crucial to have a close relationship with data. Operators need to be obsessive with location and guest data. Unless they know their market, location, and guests incredibly well, operators are just guessing before making important operational changes. Guest feedback can be an effective method of knowing if it’s time to increase hours and add days of operation.

Only the operator can know if it’s time to, well, increase time. Yes, costs will go up if a venue is open longer. However, revenue can also soar. Maybe it’s time to finally be available for in-person dining for longer.

Image: Lucian Alexe on Unsplash

Overhead view of chef slicing and chopping ingredients

May 29, 2023by David Klemt David Klemt No Comments

The Art of the Preparation

The Art of the Preparation

by David Klemt

Chef Brian Duffy‘s take on preparation and its overall impact on the guest experience extends to every aspect of operations.

In one sentence during his 2023 National Restaurant Association Show in Chicago cooking demo, Chef Duffy sums up the power of the proper mindset.

“The art of the preparation creates the experience,” says Chef Duffy.

Now, he was preparing plant-based shrimp from New Wave Foods at the time. After preparing a pan, the revered chef was readying a pound of FABI Award-winning New Wave Shrimp for Duffified Shrimp Fried Rice.

View this post on Instagram

A post shared by Chef Brian Duffy (@chefbriduff)

When making this dish, Chef Duffy chops roughly half the New Wave Shrimp in half. He does so to enhance the dish’s texture, and therefore the guest experience. Additionally, Chef Duffy likes to toast basmati rice before adding it to the pan with the shrimp and vegetables.

Again, Chef Duffy shared his view on the guest experience when cutting animal-alternative shrimp (the product is made with sustainable seaweed and mung bean).

Preparation

Okay, so what does slicing or chopping shrimp have to do with the guest experience? It’s the attention to what others may consider a tiny detail. In fact, some may deem important details “optional.”

Whether front-of-house, back-of-house, or back office, everyone’s mindset matters. How one views their role and how they approach their responsibilities impacts every element of a restaurant, bar, nightclub, or hotel’s success.

Choosing to halve half the shrimp because it will deliver a better experience speaks volumes. It’s a commitment to perfect the “small” details so every guest walks away wanting to return.

If an operator wants to know if they have a chef or an executive chef, this is one way to tell. Is the chef teaching their brigade? Guiding them? Implementing policies around preparation? Or are they just punching the clock, making sure the rest of the team shows up, and sending out food that’s “good enough”?

Operators can apply versions of those questions to every role in the house, including their own. Is their pride in preparing every element of service and operation? Or is the team just muddling through each shift?

There are no Small Details

Interestingly, most guests likely won’t ever be aware of every detail operators and their teams get right. However, they will feel every choice each team member makes. They may not know precisely what goes right, but they take home with them that their visit was exceptional.

Pulling the threads tighter separates operators and their brands from one another. Guests can get a bite and a drink anywhere. They reward outstanding service and experiences with their time and money.

It’s a simple equation to understand: Operators want to create an army of loyal guests, guests expect exceptional experiences. The operators who deliver on guest expectations are rewarded with loyalty.

Chef Duffy isn’t “just” slicing shrimp. He’s not “just” toasting rice. Chef’s not “just” making “the world’s most perfect dippy egg.” In reality, he’s ensuring every decision he, his teams, and his clients make enhance the guest experience exponentially.

There are no small details. There are no small decisions. The art of the preparation, as Chef Duffy says, creates the experience. Indeed, preparation also separates the mediocre from the exceptional.

Image: Jonathan Borba on Unsplash

May 26, 2023by David Klemt David Klemt No Comments

Raise the Bar: The 3 Ps of Hospitality

Raise the Bar: The 3 Ps of Hospitality

by David Klemt

No, one isn’t “pineapples.”

Nightlife, bar, and cocktail experts Mia Mastroianni, Phil Wills, and Art Sutley want operators to focus on what they call “the Three Ps.”

The engaging trio shared their trio of Ps recently in Las Vegas at the 2023 Bar & Restaurant Expo.

So, what are the Three Ps of hospitality? People, Place, and Product. Operators who pull the threads tighter on each of these crucial elements will be well on their way to improving operations and the guest experience.

People

Remember all the way back to a week ago when I shared Mastroianni, Wills, and Sutley’s thoughts on service versus hospitality? Consider the first P a deeper dive into that topic.

Operators need to focus on two categories of people who help their businesses succeed: their teams and their guests.

Addressing the former, the trio feels that operators are centering a disproportionate amount of their attention on guests in comparison to staff.

“We’re not lacking for people who want to work in the business and are outperforming other industries, but we’re not focusing on staff like we focus on guests,” says Wills. “Treat everyone with respect, including through the hiring process. If you don’t engage your staff, you won’t retain them. You need to show them they can grow in your business.”

According to Sutley, 89 percent of operators say that labor costs present a “significant challenge.” It follows, then, that committing to treating staff with respect and nurturing their careers isn’t just the right thing to do, it’s smart business.

Look for people with passion, those you can motivate to go above and beyond so you’re not stuck with a team full of space-fillers who are just after a paycheck, suggests Mastroianni.

Of course, operators and their teams must also focus on providing exceptional service and experiences to guests.

“Treat ever guest like a pearl in an oyster,” advises Wills. “They’re the pearl, we’re the oyster. We need to ‘protect’ them.” Anything less, cautions Sutley, and guests won’t return.

Place

Interestingly, the trio touched on design, aesthetic, and vibe. However, that isn’t the crux of the second P.

Rather, Place is really goes back to the guest experience. The design, aesthetic, and vibe need to meet guest expectations.

“Make sure your space is what it’s supposed to be,” says Wills.

For example, if a concept presents itself as a high-end cocktail bar, the four walls need to deliver on that expectation. With the exception of a handful of high-level examples, an upscale bar won’t survive if they deliver a dive bar—not neighborhood bar, dive bar—vibe and service. (For the record, I love a dive bar. But I don’t expect to encounter TV trope-style dive bar service if I walk through the doors of a high-end cocktail bar.)

One way operators can ensure their space is what it should be is standardization. Once a concept goes from idea to brick and mortar, when the owner’s vision is realized, the team needs to deliver a matching experience. Steps of service, systems, procedures…standardization is the name of the service game.

“Standardize your opening, shift, and closing procedures and systems to maintain your place,” says Mastroianni.

Every team member—front of house, back of house, leadership—needs to know and buy into an operator’s standards.

Product

Standardization breeds consistency. And consistency is a key element of the third P, Product.

Per Sutley, 76 percent of operators have noticed that guests are opting for more premium drinks. That’s great news, but it’s not the whole story.

It’s great that guests are opting for more expensive drink options. After all, that can certainly help the bottom line.

“However,” cautions Mastroianni, “they won’t come back without consistency in production.”

To drive this point home, consider this story from Mastroianni. A bartender made her a drink, and it was pretty good. She ordered another one from the same bartender and watched him make it differently the second time around. Not only was this second version different, it was better. While one could view this story through a positive lens—the drink was even better the next time!—that’s not the correct takeaway.

If the bartender was committed to building cocktails consistently, the second version of that cocktail would’ve been the first one served to Mastroianni. It would be the best version, and it would always be that impressive version.

When we’re fighting the possibility that up to 70 percent of first-time guests never return, the importance of product consistency can’t be overstated.

“Really focus on the small details to affect big change and get guests through the doors and keep coming back,” says Wills.

Image: Aleksandar Pasaric on Pexels

Black and white photo of person using laptop

May 24, 2023by David Klemt David Klemt No Comments

Your Discovery Strategy Needs to Change

Your Discovery Strategy Needs to Change

by David Klemt

A report by guest retention, reservation, and waitlist platform SevenRooms reveals that restaurant discovery is changing.

Per SevenRooms, many operators have looked toward third-party marketplaces to help people discover their restaurants, bars, or hotels. For context, online marketplaces include OpenTable, Resy, and GrubHub.

However, SevenRooms research is indicating a significant slowdown in this method of discovery. Per the platform, just a quarter of consumers still use marketplaces to find restaurants and bars.

So, how are people discovering the places where they want to spend their time and money on food and drinks? And how can you ensure your marketing and discovery strategy evolves alongside today’s consumer behavior? You’ll find out below.

For your own copy of Restaurant Discovery Has Changed: Adapt or Risk Becoming Obsolete by SevenRooms, click here.

Where are Your Guests?

It should come as no surprise that today’s consumer favors social media, influencers, Google, and even artificial intelligence for discovery.

Younger consumers in particular are more likely to discover a new restaurant, bar or hotel via social media.

Per SevenRooms, Gen Z:

is twice as likely as other generations to find a new restaurant via Instagram;
five times as likely to discover new restaurants on TikTok; and
is likely to visit a new restaurant due to an influencer recommending it.

In fact, 39 percent of consumers designated Gen Z have gone to a restaurant because an influencer has gone there.

When conducting this type of research, SevenRooms often works with YouGov. They did so again for their restaurant discovery report, commissioning YouGov to poll 1,185 consumers. Participants indicated they use the following methods or platforms to discover new places to dine and drink:

Google (27%)
Restaurant’s website (25%)
Referral (friends or family) (18%)
Facebook (12%)
Yelp (11%)
OpenTable (9%)
Instagram (8%)
TikTok (5%)
TripAdvisor (4%)
Resy (1%)

Three things jump out here: Organic search is crucial, websites still matter, and delivering top-notch service is paramount for word-of-mouth marketing.

Leverage Multiple Channels

If the data is accurate, operators who are relying exclusively or heavily on third-party marketplaces for discovery will be left behind. Instead, operators should seek to implement a multi- or omni-channel strategy.

What does omni-channel mean? In very simple terms, it’s not putting all of one’s eggs in one basket. Check out this article where I dive into omni-channel marketing and tactics for more information.

For their report, SevenRooms breaks omni-channel marketing and discovery thusly:

Owned reservation, waitlist, and ordering channels
Search and social engagment channels
Paid channels

It’s clear what SevenRooms is suggesting here: operators must adapt and meet guests where they are. Guests are relying on Google, a restaurant’s website, and social media for discovery.

The example that the platform gives in their report goes like this:

A consumer uses Google and finds a restaurant’s listing.
Next, they see a Facebook ad for that restaurant.
Finally, they decide to go to the restaurant’s website to learn more.

To that, I’ll add that some guests, those who prefer to order delivery, now seek an ordering widget. It’s wise, therefore, for operators to at least look into how they can implement direct delivery.

The Omni-channel Path

SevenRooms recommends a five-prong omni-channel strategy. Broken down into large chunks, the platform suggests:

Google integration;
social media engagement;
leveraging third-party marketplaces (with caveats);
owning direct channels; and
direct booking.

Again, this SevenRooms report can be downloaded here. However, I’ll share some details of this SevenRooms approach to discovery below.

Google Integration

SevenRooms isn’t the only one to say this: operators need to own and optimize their Google listing. In fact, they need to own all their listings, which I’ve said for years.

Owning listings boosts discoverability in several ways: SEO optimization, leveraging “near me” search functions, and ensuring guests are receiving accurate information before visiting.

Going further, operators who have marketing budgets can leverage Google ads. According to SevenRooms, Google search ads are also beneficial for becoming discoverable via third-party marketplaces.

Social Media

We’re fast approaching the day when at least half of consumers try a new restaurant or bar because they discovered it on social media. Right now, we’re at 45 percent of consumers finding new restaurants via these channels.

SevenRooms recommends having a presence on at least these channels: TikTok, Facebook, and Instagram. What’s more, they suggest using a direct reservation page and linking it to a “Reserve Now” button on a venue’s social profiles.

If an operator has the budget, they can pay for influencers to visit and talk about their restaurant, bar or hotel. However, this type of marketing can be very expensive.

Third-party Marketplace

This “prong” in SevenRooms’ recommended omni-channel strategy isn’t for every operator. As stated above, it’s use is nuanced.

Who should use marketplaces? New venues or venues that find themselves struggling to drive traffic.

Who shouldn’t use marketplaces? Venues seeing consistently strong traffic, and those that perform well via organic search because they’ve done the work to establish their brand.

Direct Channels

To explain this element, I’ll share the following “journey map” from the SevenRooms report:

Own and optimize the Google My Business listing > Ensure the website is user-friendly > Make sure there’s a reservation widget > Send a confirmation email when a guest has booked a reservation > Send a reminder SMS message > Nail the guest experience during their visit > Send a thank you email after the visit > Follow up with a personalized (keyword here) offer to encourage a repeat visit.

Remember, per Ovation CEO Zack Oates, 70 percent of first-time guests don’t come back. It’s more important than ever to invest in earning repeat visits.

Direct Booking

It’s arguable that this step is part of the overall discovery strategy, that it’s a four-prong plan, not five.

However, this step involves implementing its own strategy so that guests become aware of it. Put another way, some guests need to be taught that a restaurant or bar offers direct reservation booking.

For example, SevenRooms suggests printing menu inserts that let guests know they can book directly with the restaurant. Follow-up emails should also include a direct reservation link. Additionally, loyalty programs should encourage guests to book reservations directly.

Finally, here’s an excellent tip regarding direct booking: Operators can turn off listings or at least reduce reservation inventory on third-party marketplaces. This should be done during the busiest days and dayparts.

Operators need to make sure they keep up with shifting consumer behavior. The implementation of a modern discovery strategy is a crucial step toward long-term success.

Image: Sergey Zolkin on Unsplash

Graffiti that reads, "It doesn't have to be so complicated"

May 22, 2023by David Klemt David Klemt No Comments

Use this Powerful Communication Style

The Powerful Communication Style You Should Be Using

by Jennifer Radkey

There’s a powerful method of communication operators can learn to use that promotes workplace collaboration and solves problems.

How to communicate with team members is a topic that comes up regularly in my coaching sessions with restaurant, bar, and hotel owners. Most of the concerns center around how to speak to employees when they are not following company policy; their level of service is not meeting company standards; or the quality of their work has decreased.

These are legitimate concerns when you are attempting to not only run a successful business but foster a positive work culture in your establishment.

After coaching my clients through understanding what their current style of communication looks like and how it is or is not working for them, I introduce them to a style of communication that I feel leads to the most effective overall results: the use of declarative language.

The declarative language approach was first introduced to me through a positive parenting online conference I attended. Author Linda Murphy wrote the Declarative Language Handbook, which teaches parents, caregivers, educators, and others how to communicate with children (particularly those with social learning challenges) to feel competent, connected, and understood.

As I dove into learning about this style of communication, I realized just how powerful it would be in the workplace. It is a method that can promote respect, collaboration, and empowerment. It can also, in turn, remove judgment, assumptions, hostility, and blame.

What is Declarative Language?

To answer this question, I’ll need to take you back for a quick grammar lesson.

Sentences can be categorized under four main types: declarative, interrogative, imperative, and exclamatory.

Declarative sentences are statements. These can be a statement of a fact, an observation, or a feeling. For example: “It is raining out.” “I’m going to open a new bar next month.” “Pineapple should never be on pizza.”

Interrogative sentences ask a question: “Why are you late for your shift?” “How can I make a million dollars this quarter?” “Who ever thought it was a good idea to put pineapple on pizza?”

Imperative sentences give a command. “Go clean those tables.” “Follow me.” “Pick off the pineapple from that pizza.”

Exclamatory sentences show something that we would shout or emphasize with an exclamation mark: “I made a million dollars this quarter!” “Yikes!” “Pineapple on pizza is the best ever!”

Powerful Communication

So, now that you’ve had a grammar refresher, let’s take a look at how declarative language can be a powerful method for communicating, and why the other styles may not be creating the results you want to see.

As an owner or manager, you may often find yourself falling into the use of interrogative and imperative statements. The problem with this is that both styles can stir up negative emotions in the person on the receiving end.

Interrogative statements (questions) tend to incite the fight, flight, or freeze mode. People feel put on the spot and may become defensive or anxious.

Imperative statements (commands) tend to be authoritarian in nature and have the potential to create fear and/or resentment. Employees are looking for team leaders who they can respect and turn to for guidance, not someone who is constantly telling them what to do.

Declarative language, when used to state observations, can be a way to open up discussions without defensiveness or fear. It also leaves room for facts instead of assumptions. The declarative language approach that I suggest my clients use looks something like this:

Make an observation statement.
Be silent.
Actively listen.
Collaborate.
Actively listen.
Proactively decide on solutions.
Gratitude/Positivity.

The easiest way to demonstrate this practice is through an example or two. First, we’ll look at an example with “Sam.”

Example #1

Sam just showed up for his shift at the quick-service restaurant he works at out of uniform. His manager notices and approaches him. The declarative language approach would look something like the example below.

Manager: Hey Sam, I notice that you aren’t wearing your uniform. (Declarative observation that quietly gives time for Sam to respond.)

Sam: Yeah, sorry, I spilled coffee all down the front of my shirt on the way here and didn’t have time to go home to change.

Manager: Okay, I understand, life happens. Any ideas on how we can resolve this? (Puts power to solve the problem in Sam’s hands.)

Sam: Do you have an extra shirt I can borrow for today’s shift?

Manager: Yeah, I actually do. Great plan. Let me go grab it for you and you can use the staff washroom to get changed.

Sam: Thanks.

Manager: No problem. Have a great shift! See you out there.

As you can see from this exchange, the manager did not make any assumptions as to why Sam wasn’t in uniform. Instead, they demonstrated empathy and respect. By asking if Sam had any ideas for resolving the issue, the manager provided room for collaboration as a team. Further, this approach empowered Sam to take responsibility and come up with the solution.

Example #2

Now, let’s look at “Lisa.”

Lisa is typically very punctual for her shift working concierge at a hotel. However, the past two weeks she has been regularly showing up 10 to 15 minutes late. Below, how the owner of the hotel would use the declarative language approach to discuss this issue with Lisa.

Owner: Hi Lisa, I’ve noticed that you have been starting your shift 10 to 15 mins late the past couple of weeks. You aren’t typically late for work. I’m curious about what’s changed. (Declarative observation; the owner then waits quietly for Lisa to respond.)

Lisa: I’m so sorry, I had to switch my child’s daycare and it’s on the other side of town. I’m struggling making it here on time with traffic.

Owner: That sounds stressful. What do you think we can do to work with this change to ensure that you can still arrive on time for your shifts?

Lisa: Would it be possible to switch my shift to a later time?

Owner: Let me look into that option for you. You are an asset to our team and I’m sure we will find a solution to this. I’ll get back to you later with some options, and you can let me know what would work best.

Lisa: Thank you so much for understanding.

In this exchange, the owner does not make assumptions as to why Lisa has been late. Rather, they show genuine curiosity as to what’s going on. Again, the owner empathizes with Lisa’s situation and then places power back into Lisa’s hands to think of a solution. The conversation ends on a positive note with gained clarity, respect, and appreciation.

Lead by Example

If you are looking to build a team of empowered individuals who can solve problems and collaborate, you need to lead by example. The use of declarative language can help you accomplish exactly that.

However, it is crucial to note that if you decide to try this method of communication, your intention needs to be positive. Declarative statements will not be as successful if your tone is sarcastic or accusing. Your approach must be casual, caring, respectful, and matter of fact.

Additionally, not every conversation will go smoothly using this method. You may receive “I don’t know” or “I’m not sure” as an answer. But for the most part, this method of communication allows for respectful discussion that acknowledges facts, promotes responsibility for one’s own actions, and decreases assumptions.

If you would like more information on how to use the declarative language approach, or would like to set up a coaching session to be coached on how to use this communication style with your team, please reach out to me!

Cheers to professional and personal well-being!

Image: Jon Tyson on Unsplash

May 18, 2023by David Klemt David Klemt No Comments

SevenRooms and Marriott Partnership

SevenRooms and Marriott Reveal Global Partnership

by David Klemt

Fresh from launching the innovative Pre-Shift pre-service tool, SevenRooms today announces the platform’s latest partnership.

The announcement, which you can read in its entirety below, shows the confidence that some of the most recognizable hospitality brands in the world have in SevenRooms capabilities.

Specifically, the platform is now a preferred restaurant technology provider throughout Marriott International‘s portfolio. In fact, Marriott is leveraging the SevenRooms suite of tech solutions at several of their brands in more than a dozen countries. This translates to over 8,500 properties using the platform’s powerful booking, relationship management, and marketing tools.

Among the brands utilizing SevenRooms tools are The Ritz-Carlton, JW Marriott, EDITION Hotels, The Luxury Collection, and W Hotels.

The latest news to come from SevenRooms again underscores the platform’s commitment to growth and longevity. After more than a decade in operation and service to hospitality operators, it’s safe to say the company has reached ubiquity.

You may not operate a hotel or operate within a hotel. You may not oversee a multi-unit or multi-concept business. This news should be no less important to you.

When developing your tech stack (a service KRG Hospitality provides) it’s important to choose platforms that are here to stay. Otherwise, your investments of time and money go up in smoke. Likewise, the disruption to operations and service as you seek a new platform are harmful to you, your team, and guests.

So, it can be wise to not just dig into the platforms you’re considering, it can be smart to see what companies trust them as partners.

SevenRooms is a platform that we’re comfortable recommending to many of our clients. And no, we’re not paid or otherwise compensated to do so.

To learn more about SevenRooms partnering with Marriott International, see below.

SEVENROOMS SELECTED AS A MARRIOTT INTERNATIONAL PREFERRED RESTAURANT TECHNOLOGY PROVIDER

The global technology platform will power personalized guest experiences to increase revenue while providing deeper guest insights for the global hospitality company

NEW YORK (May 18, 2023) – SevenRooms, a guest experience and retention platform for the hospitality industry, today announced its agreement with Marriott International to become a preferred restaurant technology provider. SevenRooms is currently live across 25 countries at Marriott brands including W Hotels, The Ritz-Carlton, St. Regis, Sheraton, JW Marriott, Le Méridien, Westin, Marriott Hotels, Renaissance Hotels, EDITION Hotels, The Luxury Collection and Gaylord Hotels. This will unlock additional opportunities at the more than 8,500 Marriott International properties worldwide.

SevenRooms is a data-driven guest experience and retention platform focused 100% on building operator-focused tools. The platform offers solutions to global brands that not only increase revenue generation, but help them build long-term relationships with guests.

For restaurants, bars, and other F&B outlets in Marriott-branded hotels, the SevenRooms platform offers a suite of tools to help drive incremental revenue, increase operational efficiencies, and offer exceptional guest experiences. Through SevenRooms’ Customer Relationship Management (CRM) and Marketing Automation capabilities, Marriott’s hotels are not only able to cultivate meaningful, direct relationships with guests, but access a 360-degree view into the guest journey to foster deeper guest loyalty.

“We’re thrilled to collaborate with Marriott International as a preferred restaurant technology provider, helping them deliver more personalized experiences for their guests around the world,” said Joel Montaniel, CEO & Co-Founder of SevenRooms. “Today, consumers expect more out of their F&B experiences whether they’re staying local or traveling abroad. They want to engage with hotels, restaurants and bars on their own terms, and are increasingly discovering and booking where to eat and drink across an array of channels. With SevenRooms, operators have access to tools that help them reach these guests while driving operational efficiencies by connecting F&B into their overall hotel strategy to generate revenue and increase profitability. Our suite of products not only helps operators of Marriott-branded hotels provide guests with exceptional experiences that enhance positive sentiment and drive increased loyalty, but enables them to do so at scale, automatically. We look forward to working with Marriott as we enable them with technology to build longer-lasting, more profitable relationships with their guests.”

Marriott International properties can now incorporate much of SevenRooms’ suite of tools and solutions, including Customer Relationship Management (CRM), on-premise table management, waitlist management, marketing automation, email marketing, order management and review aggregation.

“Marriott’s hospitality roots began in restaurants, and we want to provide exceptional, unforgettable restaurant experiences for our guests,” said Matthew Von Ertfelda, Senior Vice President, Food & Beverage at Marriott International. “With SevenRooms, we’re not only able to provide guests with the experiences they crave, but we can leverage a robust suite of tools to help turn one-time guests into lifelong guests.”

To learn more about SevenRooms, please visit www.sevenrooms.com.

About SevenRooms

SevenRooms is a guest experience and retention platform that helps hospitality operators create exceptional experiences that drive revenue and repeat business. Trusted by thousands of hospitality operators around the world, SevenRooms powers tens of millions of guest experiences each month across both on- and off-premises. From neighborhood restaurants and bars to international, multi-concept hospitality groups, SevenRooms is transforming the industry by empowering operators to take back control of their businesses to build direct guest relationships, deliver exceptional experiences and drive more visits and orders, more often. The full suite of products includes reservation, waitlist and table management, online ordering, mobile order & pay, review aggregation, email marketing and marketing automation. Founded in 2011 and venture-backed by Amazon, Comcast Ventures, PSG and Highgate Ventures, SevenRooms has dining, hotel F&B, nightlife and entertainment clients globally, including: Marriott International, MGM Resorts International, Mandarin Oriental Hotel Group, The Cosmopolitan of Las Vegas, Wynn Resorts, Jumeirah Group, Hard Rock Hotels & Resorts, Wolfgang Puck, Michael Mina, Bloomin’ Brands, Giordano’s, Australian Venue Company, Altamarea Group, AELTC, The Wolseley Hospitality Group, Dishoom, Live Nation and Topgolf. www.sevenrooms.com

Image: SevenRooms

May 17, 2023by David Klemt David Klemt No Comments

Leverage These 3 Sports for Growth

Leverage These 3 Sports for Growth

by David Klemt

Sports receive more than three million mentions daily on social media and in online communities, and three sports are driving conversations.

Media-monitoring and SaaS platform Meltwater‘s recent report shows growth in media mentions and community engagement. The report, “2023 Industry Snapshot: Sports,” also identifies three sports that are growing globally.

Most restaurant and bar concepts, at least throughout North America, can benefit from sports. They have televisions, at least decent audio, and the proper licenses to air sports and other programs.

At the risk of oversimplifying, that means that any bar or restaurant can be a sports bar. Before anyone begins furiously hammering out an email to send me, I’m not saying any bar or restaurant can automatically become a great sports bar because they have TVs. I’m simply saying that operators who want to leverage sports and specific sporting events are at a good starting point to do so.

With that caveat out of the way, let’s check out what Meltwater has uncovered regarding sports.

Sports Conversations

According to Meltwater, sports is a hot topic every day of the year. On average, there are 3.16 millions mentions of sports each day.

And that’s just on a “normal” day. Last year, that number jumped to well over 12 million mentions during the FIFA World Cup.

Meltwater identifies 2022 as a particularly strong year in terms of growth for sports conversations. That boost is expected to carry into 2023, providing savvy operators with opportunities to leverage sports.

Per Meltwater, sports social media handles, hashtags, and keywords have grown by more than 20 percent. That’s significant growth.

Now, let’s look at the sports driving much of that growth.

Football

When I say “football” in this context, I mean the sport some people call “soccer.” So, not American football, which Dave Grohl and Crown Royal pointed out is a Canadian invention during Super Bowl LVII.

For the past few decades (at least), much has been made of Americans maligning football (soccer). Well, all the tropes of that mockery may be wearing very thin.

Last year, mentions of football keywords were up 56 percent—in the US. The second-place country was Nigeria with an increase of 33 percent.

Globally, the sport’s online conversations went up by 32 percent. The day of the FIFA World Cup final? That number exploded to 630 percent. Could be smart for operators to begin planning their World Cup promotions soon.

Baseball

There are some interesting stats surrounding baseball and online conversations.

Last year, conversations of this sport grew by just three percent. And for a country that claims the sport as their national pastime, American baseball convos saw a notable dropoff: a decrease of 11 percent.

However, baseball grew by nine percent in Canada in 2022. Japan saw an increase of 36 percent, and Venezuela was up 22 percent.

Unsurprisingly, the sport’s two largest organizations dominate baseball conversations.

Leading the charge, Major League Baseball mentions grew by 16 percent in 2022 globally, and by 54 percent in Japan. Right on MLB’s heels, Nippon Professional Baseball 23 percent globally and 28 percent in the US.

For those who are curious, three teams stood out in the baseball conversation: the Los Angeles Dodgers (+59 percent), New York Yankees (+55 percent), and NY Mets (+46 percent). However, LA Angels pitcher Shohei Ohtani saw truly incredible growth with an increase of 74 percent.

An important takeaway: Baseball fans in America appear quite interested in watching (or listening to) NPB. That gives operators another organization—and all their scheduled games—to leverage.

Formula 1

Ah, my favorite sport. I’m happy (for the most part) to see this motorsport growing around the world. In fact, Formula 1 keyword mentions grew 13 percent globally, and #F1 was among the hashtags used most in 2022.

On July 3, 2022, Ferrari driver Carlos Sainz, Jr. (driver #55) won the British Grand Prix at Silverstone. Red Bull’s Sergio Perez (#11) took second and Mercedes’ Lewis Hamilton (#44) took third. And on this day the F1 conversation skyrocketed, growing by 338 percent.

The country leading the way for F1-related keyword mentions in 2022 was Japan, growing by a staggering 91 percent.

Much of the increase in interest in F1 can be traced back to Netflix and its Drive to Survive docu-series (some call it a reality-TV drama).

Looking at American interest in the sport, it helps that there are now three races on the calendar that take place in the US: the Miami Grand Prix, the US Grand Prix at Circuit of the Americas in Austin, TX, and the Las Vegas Grand Prix. That’s three opportunities (Miami has already happened) for American operators to take advantage of this sport’s growing popularity.

Last year, former Aston Martin driver Sebastian Vettel (#5), Red Bull driver Max Verstappen (current champion and #1), and Ferrari driver Charles Leclerc (#16) saw the most growth in terms of individual drivers.

I can only hope that my other favorite motorsport, MotoGP, starts to become more popular throughout North America.

Takeaways

Some operators may find that sports don’t work for their concept, such as a high-end cocktail bar or fine-dining restaurant. Those are two venue types that tend to eschew televisions as they don’t work with their vibe and aesthetic.

That said, each operator must choose how to best implement sports and related promotions. This includes understanding which sports, teams, and players their guests like. Then, of course, it’s also a matter of gauging interest.

With that determined, operators must also decide how to make sports work with their concept. Some things to consider are themed F&B menus, sports-related LTOs, FoH uniforms, and how far to go with promotions. That latter consideration will depend on how rabid a fan base each operator is targeting. A truly dedicated fan base encourages some bars to “officially” support a certain team.

Another important consideration? Will leveraging a particular sport or team alienate other guests due to rivalries or a lack of interest or comfort? Sometimes the cost of implementing promotions includes pushing away a percentage of guests on particular days.

Because I live in Las Vegas, I have an array of venues available to me around the clock. It’s conceivable that I could find a home bar or restaurant to watch F1 and MotoGP. Personally, the capability of comfortably watching my two favorite sports would boost my loyalty and visits. However, there may not be a large pool of people like me in this market. Would a bartender want to turn on an F1 race just for me?

There’s a lot to consider when choosing how to best leverage sports. The upsides include converting customers to loyal, repeat guests; a realistic idea of what to consider in terms of labor and inventory for specific days, weeks, months, and seasons; and boosts in traffic, revenue, and online engagement (which in turn can translate to more traffic and revenue).

Image: Photo by PRAT clement via Pexels