Restaurant operations | KRG Hospitality

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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

Several spray paint cans next to one another

May 16, 2023by David Klemt David Klemt No Comments

Raise the Bar: Service vs. Hospitality

Raise the Bar: Service vs. Hospitality

by David Klemt

During the 2023 Bar & Restaurant Expo in Las Vegas, Mia Mastroianni, Art Sutley, and Phil Wills addressed what separates service from hospitality.

For the sake of those who are unfamiliar, a brief summary of each member of this informative panel. Art Sutley is a nightlife and hospitality expert recognized by Forbes, the Wall Street Journal, and Thrillist (among other publications).

Phil Wills and Mia Mastroianni should be recognizable to anyone who has watched Bar Rescue. Wills co-founded Spirits in Motion, a beverage consulting agency. He’s also a bartender’s bartender who’s passionate about hospitality. Mastroianni, equally as passionate about the art of hospitality, is a seriously talented bar professional and hospitality expert who doesn’t take herself too seriously.

It’s difficult to imagine a more qualified trio when it comes to discussing the differences between service and hospitality.

What is Service?

Before they all dove in, Sutley shared a simple but impactful take on the guest experience.

“It’s checking boxes,” said Sutley. “We want each guest to check every box, and a few extra.”

That description helps draw a line between service and hospitality. Per Sutley, Mastroianni, and Wills, service is a transaction and meeting expectations. Reinforcing this idea, Wills said, “Service is black and white; it’s simple.”

Operators and their leadership teams, after developing their steps of service, can literally or figuratively track the service transaction. Training staff—from onboarding to pre-shifts—on the steps of service and an operator’s non-negotiable standards ensures the guest experience transaction is delivered as expected.

Worryingly, Mastroianni expressed her concern that the quality of service appears to be dropping. If that’s true, however, that provides an opportunity.

Per Sutley, the industry is getting more difficult. There are more competitors out there, and guest expectations are becoming increasingly stringent. So, if Mastroianni is correct and more concepts are failing to deliver on the expected service transaction, operators who commit to building and training teams that deliver high-level service will stand out.

What is Hospitality?

If service is black and white, guess what hospitality is?

“Hospitality is color,” said Wills. “And we go above and beyond to relate to guests.”

Going further, Wills said that how an operator and their team chooses to “paint the picture” defines the level of hospitality they deliver.

For Mastroianni, if service is transactional, hospitality is emotional. Hospitality is how a restaurant, bar, nightclub or hotel team makes a guest feel. Drilling deeper, hospitality is how we in this industry connect with guests on a deeper level than simply transactional service.

To throw in my two cents, I like to think that even brand-new operators understand the transactional part of hospitality. It’s the people part, the guest experience element, that catches many operators and their teams out. Service without hospitality is mediocrity in motion.

Regardless of where one stands on the topic of service vs. hospitality, it’s crucial that operators become acutely aware of the experiencing they’re giving their guests. What do they see when they look at the picture they and their team paint each shift?

Image: Emiliano Vittoriosi on Unsplash

Exterior of Ocean Casino Resort at sunset

May 15, 2023by David Klemt David Klemt No Comments

Ocean’s Summertime Celebrations

Ocean Casino Resort Summertime Celebrations

by David Klemt

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

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

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

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

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

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

Local Partnerships

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

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

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

Creative & Compelling

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

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

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

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

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

Nola's Bar & Lounge inside Ocean Casino Resort

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

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

Takeaways

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

No, of course not.

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

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

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

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

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

Images courtesy of Ocean Casino Resort

Street art portrait of Rich Uncle Pennybags

May 12, 2023by David Klemt David Klemt No Comments

Be a Student of the Game

Be a Student of the Game

by David Klemt

The key to success as a restaurant, bar, nightclub or hotel operator is a change in mindset and a commitment to being a student of the game.

That game, of course, is hospitality. To succeed, one must truly love this industry and their own business. Love digging into the minutiae and learning about every element of operations; love their team members and guests; love mentoring and finding mentors; love embodying the spirit of hospitality; and love their own brand.

This is the exact message Michael Tipps drove home during the first Invictus Hospitality-led education session of the 2023 Bar & Restaurant Expo.

“The doing and the how is important, not the what,” says Tipps. “Be a student of the game.”

But what does Tipps mean when he says that?

The Successful Student Mindset

Before we begin, a note about reporting on other consultants and agencies. At KRG Hospitality we don’t pretend to know it all. When a peer says something and has an approach to this industry we find insightful, we want to share it. Keeping it to ourselves because they’re a “competitor” doesn’t help anyone or our industry.

We consider Invictus cofounders Michael Tipps and Homan Taghdiri friends and colleagues. Their values and mission align with ours.

So, when Tipps says successful operators are students of the game, we agree. Our team is passionate about learning so we can better serve our clients. I’m comfortable saying the Invictus team embraces a similar approach.

In addition to a hunger for knowledge, there’s another key element of this successful student mindset: positivity. For Tipps, that means two things:

“Know what works first. Notice what doesn’t work second.”
“Other venues aren’t your competition.”

Intention

I won’t speak for Invictus and their approach to understanding a client’s vision. We have our approach and tools, they have theirs.

One of the exercises that we find works to help us see how a client envisions their concept is to learn about what they like. What restaurants, bars, nightclubs or hotels do they admire? Are their operators they aspire to emulate? What venues in their target market do they think are doing a great job?

Another part of the process is to visit similar concepts. These visits reveal a lot, including what a client knows about the business.

Look, we’ve all been there. As consultants, operators, leadership team members, front- or back-of-house members… We know when something doesn’t work when we visit any restaurant, bar or hotel.

However, a simple change to the lens through which we view an operation can make a big difference. First, we should notice what’s working. Going further, Tipps suggests trying to understand what an operator was trying to accomplish with their concept: “What was the intention?”

To Tipps, people who can walk into a restaurant or bar and identify what’s working before focusing on mistakes shows they actually know the business. A true student of the game recognizes any concept’s positives and intention.

“It doesn’t take skill to know what sucked about a bar or restaurant,” says Tipps. “It takes skill to point out and understand what works.”

Dentist’s Office, Anyone?

There’s another point Tipps makes about the game and what drives people to jump into this incredibly challenging business.

Consider what owning a cool restaurant, bar or nightclub looks like from the outside. People get into this business, posits Tipps, because they’ve been to a bar or restaurant and think it would be fun to own it. They think being the owner of a hot restaurant is sexy. Likewise, being the owner of a cool bar or club.

It certainly can be cool, fun, and sexy to own a restaurant or bar. But think about visiting a business and finding it so cool that you decide to open one yourself.

“We’ve also all been to the dentist but we don’t open a dentist office,” says Tipps.

In other words, there are operators lured to this business because it looks fun and cool from the outside. And it is, but it’s also very hard work. Truly, only students of the game will find a measure of success.

Without a love for hospitality, for what can be accomplished and experienced in this industry, it’s just a difficult job.

The Real Competition

Ask different consultants about whether they view similar businesses as competitors and peers and you’ll get a variety of answers.

Some feel that concepts in the same category in the same market are in direct competition. Others will say that one operator isn’t competing with another, they’re potential peers who can elevate one another. Still others say there’s nuance; there’s competition for traffic, engagement, and dollars, but competitors are also peers who can elevate entire markets.

To Tipps, and I assume Taghdiri and the rest of the Invictus team, operators are competing against the clock.

“Time is your adversary, not the venue next door,” says Tipps. That means operators are up against ticket times. They’re subject to their dishwasher’s timing. Payroll, paying invoices on time, dealing with how long food can last to plan for days of the week and individual dayparts…

Each of those items and more impact a concept’s every element of operation. And unlike another operator, there’s no stopping this adversary. The most an operator can do is implement strategies to keep up with this opponent because there’s no way to beat it.

Again, the only way to succeed in that contest is to be a student of the game. An operator (and their leadership team) needs to not only know every tiny detail about their business, they must be passionate about gaining that knowledge. They need to love learning and applying the information they glean to overcome obstacles and keep up in their battle with time.

“Be as fascinated with your business as a five year old is with an ant farm,” says Tipps. “Look at the ant farm with wonder.”

Image: Julian Hochgesang on Unsplash

May 10, 2023by David Klemt David Klemt No Comments

Ovation Reveals 5 Secrets for Growth

Ovation Reveals 5 Secrets for Growth

by David Klemt

Restaurant guest feedback platform Ovation CEO Zack Oates reveals five secrets to what he calls the “digital table touch.”

The company touts itself as the number-one guest feedback platform. Ease of use is one reason the Ovation is viewed so favorably. Guests receive a two-question survey via SMS. Operators receive honest feedback they can use to improve guest retention and loyalty.

Those curious in learning more about the platform can check out several case studies on the Ovation website. Odds are, one of these studies matches closely with an operator’s own business.

For the purposes of this article, I’m going to focus on Oates’ 2023 Bar & Restaurant Expo education session. Getting even more granular, I’m going to drill down to Oates’ digital table touch approach to guest feedback and retention.

If Oates’ startling claim about first-time guests is true, guest retention is even more difficult than many operators would think. According to Oates, 70 percent of first-time guests don’t return to a restaurant. That number is, simply put, too damn high. Fifty percent is too high.

Feedback Reality

Let’s be honest about in-person feedback. While there are some honest guests out there, for some reason people tend to leave without being honest during their visits. In the moment, most of us will say “great” or “very good” when asked by a server or manager about our restaurant experience.

This is a compelling phenomenon. Per Oates, 15 percent of dine-in orders have issues. And yet most guests won’t say about an issue during their visit. That rate doubles to 30 percent for delivery orders, by the way.

Being totally transparent, Oates says he behaves the same in restaurants. He’s the CEO of a restaurant feedback platform and he’ll still say everything is fine during a visit even when it isn’t. So, while physical table touches are important, they’re likely not giving an operator an accurate picture of what’s going on in their dining room.

In fact, Oates says rather bluntly that “table touches are out of touch.” Further, they’re not scalable, off-premises, honest, or capable of fixing root issues, in his opinion.

Likewise, long-form surveys. According to Oates, long feedback surveys have an abysmal take rate: 0.01 percent. At that point, the rate may as well be zero. Online reviews, as may operators likely know, don’t really represent most guests.

The best solution to secure honest, actionable feedback appears to be Ovation’s SMS-based process.

Secret #1: Make Measurement Frictionless

Hot take: The easier a thing is to do, the more people will participate.

So, operators who want collect valuable guest feedback need to make it simple. If a guest orders delivery, operators should stuff carryout bags and top boxes with a call to action. For in-person dining, they should add a feedback CTA to table toppers. QR codes can make the process very easy. CTAs need to be visible and simple to complete.

The winning formula seems to be a two-question survey and collecting guest data. So, operators should consider enrolling guests who participate and leave feedback in a $100 gift card draw (or something similar).

Secret #2: Drive 5-star Reviews

Oates says that operators should push guests to rate their experiences on review sites. Doing so not only results in collecting valuable feedback, it can boost reviews and increase a restaurant’s visibility. The more discoverable a restaurant is, the more traffic it can potentially see.

Also, a note on actual five-star reviews: that’s not the best score. People tend to distrust perfect scores and one-star reviews. Per Oates, the best score is 4.7 stars, and operators should aim for at least a 4.0.

Secret #3: Respond to Feedback

This means good and bad feedback, and in a timely manner. Per Oates, one bad review reaches 30 potential guests. So, it’s best to address the situation as quickly as possible—if an operator can do so without losing their cool.

To ensure that emotions don’t prevail over rational responses, follow the Three Cs of Bad Review Recovery:

Collected.
Compassionate.
Call to action.

Remember, people want to feel important. When they leave a bad review the underlying feeling driving the review is likely a sense that they’ve been disrespected. Operators attempting to recover from a bad review need to make the reviewer feel acknowledged and important.

Secret #4: Discover and Act on Trends

A business term that has been making the rounds for years now is “kaizen.” This is the concept of everyone in an organization working toward making incremental improvements to the business.

Savvy operators will set aside their egos, find trends within the feedback they receive, and work to improve on any shortcomings.

Secret #5: Text Guests to Bring Them Back

As I’ve said before, if you really want to meet guests where they are, reach them on the phones in their pockets. However, Oates has more advice than simply, “Text them surveys.”

To boost participation, tempt guests with an offer. Oates says to make the offer a good one. So, operators should consider the following:

Come up with an offer and put it first.
Make it a good offer: “The first X amount of people to complete this survey will receive 15 percent off their next visit.”
Track participation via a link.

While operators can leverage each of the above secrets on their own, Ovation’s digital table touch process is seamless and easy to implement. Either way, collecting honest guest feedback and acting on it is one of the most effective methods for improving guest retention.

Image: Jon Tyson on Unsplash

May 8, 2023by David Klemt David Klemt No Comments

3 Ways to Build Revenue on Mother’s Day

3 Ways Restaurants Can Build Revenue This Mother’s Day

by Austen Asadorian

With Mother’s Day quickly approaching, there’s no doubt that operators across the country are preparing for the celebratory—yet extremely busy—day.

During their preparations, it’s important that operators find and incorporate new tools and innovative marketing tactics. Doing so will not only fill seats, it will ensure they capitalize on a key opportunity to drive incredible revenue.

Below are three simple but powerful ways operators can generate revenue and loyalty on—and beyond—this Mother’s Day.

Encourage Reservations & Offer Upgrades

An easy way to make this busy day seamless for guests—and, ultimately, staff—is to encourage and allow guests to make a reservation before they arrive. Reservations give operators insight into who will be dining with them, help optimize seatings and covers, and provide a idea of how much to order to eliminate food waste if a special menu is being offered.

Using a reservation system also provides operators with the opportunity to offer diners upgrades during the booking process, even including prepayment should they want to go that route. This not only allows operators to earn additional revenue before a guest even visits, but also a convenient way to offer guests peace of mind knowing they’ve handled that “something special” for Mom way before the big day.

These upgrades don’t have to be anything crazy or extreme (although that’s always an option). In fact, according to the National Restaurant Association, consumers want special touches and discounts over everything else. So, an upgrade can be something as simple as a beautiful flower arrangement waiting on the table to a special off-menu dessert brought out at the end of the meal.

Use Email & Social Media to Your Advantage

Properly promoting Mother’s Day offerings to guests is extremely important because if no one knows about it, who will come?

Operators should utilize tools like email marketing to send personalized communications to their guest database promoting the venue’s Mother’s Day reservation availability or special offerings. Better yet, these tools can be used to offer loyal guests reservations before they open to the general public, further creating a special experience for those faithful diners.

In the same vein, operators should harness the power of social media, too. Operators can target paid marketing efforts on social channels like Facebook and Instagram to drive even more awareness and revenue for their restaurant by creating an event, including the details of the activities, specials, or Mother’s Day promotions, and exporting the names of top guests and email data.

Surprise Them with a Second Visit

While Mother’s Day is the focus right now, it doesn’t stop there for operators. To drive the revenue they need, it’s important to turn these celebratory diners into repeat guests.

To do so, operators should consider offering Mother’s Day diners complimentary gift cards or discounts (even via email post-visit) to bring them back. This could be for an upcoming graduation, Father’s Day (so Dad can also get the love), or even for a future birthday.

This “surprise and delight” factor is one of the easiest strategies to capitalize on holiday traffic and get diners to return to a restaurant once again as a loyal guests.

Here’s to You, Mom

Moms should be celebrated every day, but especially on Mother’s Day, and it’s important to make sure they have the best experience when dining out.

By incorporating simple tactics like offering reservations and custom upgrades or even a special surprise at the end of the meal, operators not only succeed in making the day memorable, but create a guest who will return over and over again.

About Austen Asadorian

Austen Asadorian is the Vice President of Sales at SevenRooms, where he is tasked with supporting SevenRooms’ global expansion efforts and accelerating the company’s goal of being the best-in-class solution for hospitality operators globally. Prior to joining SevenRooms, Austen was Peloton’s Director of Sales, leading the company’s go-to-market strategy for retail growth and expansion. He started his career at Hillstone Restaurant Group where he cut his teeth learning how to run efficient and profitable restaurants at scale. Austen was ultimately promoted into an executive role where he oversaw the company’s Manager in Training Program and Back of House Operations. Austen graduated from the Culinary Institute of America (CIA).

Image: grumpymonstergroup via Vecteezy.com

May 5, 2023by David Klemt David Klemt No Comments

Consultant Versus Coach

Consultant vs. Coach: Similarities and Differences

by Jennifer Radkey

At some point in your journey as a business owner it’s inevitable that you’ll come up against a challenge that you struggle to overcome on your own; you may need to reach out for advice or guidance.

There are countless reasons why you may seek an expert’s help. Perhaps you’ve come up against a roadblock trying to reach a goal. Maybe you’re unexpectedly forced into a major transition. You may decide you’re ready to take your business to the next level but are unsure how to proceed.

The situation you find yourself in could be as big as the opening of a new restaurant or bar, or as vague as a general sense of something not being “right.”

Whatever the reason may be, you’ve exhausted your own pool of resources and are ready to seek outside help. So, who do you turn to?

Most likely you’ll be looking to hire either a consultant or a coach. Of course, this begs the question: Which do you choose?

I’m both the vice president of KRG Hospitality and a certified life coach. My husband Doug Radkey is the president of KRG Hospitality and our agency’s lead consultant. “Do I need a consultant or coach” is a question people ask of us quite often.

The answer is simple once you understand the similarities and differences between the two.

Similarities

Coaches and consultants are both third parties who provide an outsider’s clarity while maintaining an unbiased point of view.

They’re both knowledgeable and have their own unique approaches and expertise. Coaches and consultants come with the intention of helping you achieve your goals. While the majority of coaching and consulting is done one-on-one, team consulting and coaching are also options.

The differences between coaching and consulting can be found in the approaches used to help you achieve your goals.

Differences

The easiest way to learn the differences between a coach and a consultant is to take a closer look at how each one approaches how they help you. It’s an understanding of these differences that provide the clarity needed for you to choose the best solution.

Consultants

Consultants are industry-specific experts. When presented with a challenge you want to overcome or a goal you want to achieve, a consultant finds the solution using their knowledge and experience. They also diagnose any problems that are evident in your business and then make recommendations to correct them.

A consultant is someone you can turn to for technical and professional advice.

Once the consultant has determined the root of the problem or determined the best path forward to achieve your goal, the answers will be provided to you. And along with the answers come the steps necessary to solve the problem or reach the goal. You’ll be given a clear, detailed plan.

Consultants listen carefully to what’s going on. They ask specific questions, watch how your team interacts with your guests, and study your steps of service. Additionally, consultants analyze data and conduct research, and then communicate their findings clearly with you. Again, consultants give you the tools you need to execute a plan—including processes and proven methods—to achieve success.

If you’re in need of specific industry advice and expertise, a consultant is who you need to hire.

Coaches

Coaches are experts in placing the power in your hands to discover your own solutions and answers. You hire a coach to discover yourself, inspire confidence, explore possibilities, and find your own clarity. Entrepreneurs turn to coaches to help them transform into great leaders.

Through sincere and thoughtful inquiry, coaches will pull answers out of you that you didn’t know that you already had. They’ll also help you become aware of self-imposed limitations so you can overcome them. Rather than just giving you a plan, coaches help you develop your own strategies for uncovering your truth, and then help you understand how to move forward.

Coaches are sounding boards for discussing both personal and professional issues, providing a safe, judgment-free place for you to be heard. They’re interested in long-term results and the overall well-being of their client.

If you’re looking for overall growth and a better understanding of how you can reach your own goals and potential, a coach is who you need to hire.

Hiring a consultant or a coach is a positive step towards achieving both short-term and long-term goals. Knowing the difference between the two now empowers you to choose the best person to help you where you want to go.

Cheers to personal and professional growth!

Image: Robert Linder on Unsplash