Restaurant operations | KRG Hospitality

March 15, 2024by David Klemt David Klemt No Comments

What are You Changing in 2024?

What are You Changing in Your Restaurant or Bar in 2024?

by David Klemt

More fun with AI-generated images. That’s quite the busy bar setup.

Toward the end of last year, Nation’s Restaurant News identified what changes operators chose to make after analyzing their operational data.

The publication surveyed hundreds of operators about how data drove their decisions. This survey was an element of their year-end report, Market Leader Report: The Data-driven Restaurant.

As one would imagine, this report focuses on data collection, analysis, and usage. However, NRN‘s report doesn’t just address the importance of data collection in the F&B space. Rather, they seek to understand if operators are collecting the “right” data; whether they can optimize the data they collect; what metrics they’re tracking; and how they’re acting on all that data.

Simply put, it’s an important report addressing a topic crucial to today’s restaurant and bar operations. Those who want their own copy of The Data-driven Restaurant can download it free here.

While entire report is valuable, the focus of this article is one question and the answers provided. Below, to provide context, is a breakdown of the survey respondents.

The Who

Most of the respondents identified as independent restaurant operators.

Indie: 37 percent
Chain (franchisee): 21 percent
Chain (company owned): 18 percent
Multi-concept: 15 percent
Single-site operator: 6 percent
HQ or brand level of foodservice company: 3 percent

By a slim margin, most survey respondents categorized their restaurants as full service or casual dining.

Perhaps unsurprisingly, the fewest respondents operate in the upscale or fine dining category.

Full service / casual dining: 30 percent
Fast casual: 28 percent
Quick service: 20 percent
Midscale / family dining: 15 percent
Upscale / fine dining: 7 percent

The What

So, what question caught our attention at KRG Hospitality?

“In the past 12 months, which initiatives did your organization undertake after analyzing data?”

NRN conducted this survey in November 2023. Not surprisingly, respondents mostly made changes to their menus after reviewing their data. Streamlining menus and adjusting prices were two of the biggest operational trends last year, as many operators are no doubt well aware.

That theory is supported by the survey results. Below, the top four answers to the question above.

Changed menu prices (48 percent)
Removed items from or added items to our menu (47 percent)
Improved the way we trained our staff (26 percent)
Adjusted our loyalty program’s rewards and/or incentives (24 percent)

Honestly, it’s heartening to see that training is among the top-three data-driven actions operators took last year. And, of course, it’s not shocking that the menu was the focus of the most attention. Streamlining is an effective way to reduce food and labor costs. Further, pricing is always (please excuse the pun) on the menu.

Our question is: What changes, if any, do you plan to implement this year now that we’re headed into Q3?

The What: The Sequel

If the menu received the most attention after operators reviewed their data, what received the least?

Well, it appears marketing fell to the wayside, along with the kitchen. The following are the bottom four answers to the question in the section above:

A/B tested marketing campaigns and increased ROI (6 percent)
Changed specs on our kitchen equipment or technology (10 percent)
Identified lapsed customers and marketed to them (11 percent)
Increased throughput in our kitchen during peak periods (13 percent)

Now, I’ll concede that one marketing action found itself in the middle of the pack when it came to this survey question. Upon analyzing their data, 18 percent of respondents identified new potential guests and marketed to those people.

Still, in comparison to making changes to menus, the fewest respondents took marketing action or made changes to the kitchen directly.

Does this mean that menu changes have the greatest impact on guests and ROI? Well, that’s possible. However, I think something else is at play.

Personally, I think collecting data is the easy part. At this point, most platforms serving our industry are collecting data for operators.

But tracking the correct metrics, analyzing the associated data, and knowing what to do after analyzing said data? That’s difficult. It can be overwhelming, which is why it’s so important to build and implement the proper tech stack for a specific concept. This is why one of the services we offer our clients is tech-stack development.

Further, the tech stack needs to be built around an operator and their leadership team. If nobody knows how to use it or what to do with the data they’re collecting, it’s useless.

Image: Shutterstock. Disclaimer: This image was generated by an Artificial Intelligence (AI) system.

March 11, 2024by David Klemt David Klemt No Comments

Loud Luxuries: Martinis and Caviar

Loud Luxuries: Opulent Martinis & Caviar Bumps

by David Klemt

Taking a look at what’s going down in the bar and restaurant world, it appears that luxury sips and bites are the latest darlings in the F&B space.

In particular, I’m talking about the stories going around about $40 Martinis. Oh, and the interest consumers are showing in caviar. Specifically, caviar bumps, though people seem to be craving this luxury bite any way they can get it.

At the risk of coming across as snobby or hipster-ish, Las Vegas has been offering guests caviar bumps at parties and restaurants for several years now. A close friend of mine has hired a caviar bump service for private business events and personal parties on more than one occasion.

To explain, a caviar bump is a much less formal way of consuming salt-cured roe. One takes a small spoon, dabs a bit of caviar in the area of their hand between their thumb and index finger, and licks it off. Contrary to what some people think (probably only once), the caviar isn’t snorted. Although, I’m not here to police how people choose to consume their food.

Interestingly, there are plant-based “caviar” brands on the market. So, vegetarian and vegan guests can get in on the caviar bump fun.

Now, back to the $40 Martinis. If that makes some operators and bartenders raise an eyebrow, their jaws will likely drop when they read what’s next. It’s not difficult to find Martinis that cost well in excess of $100.

This trend is belongs to the “loud luxury” movement. As one can infer reasonably, the phrase describes spending a lot of money on an item or experience because it’s expensive. Engaging in ostentatious spending is the point.

Given the state of many people’s finances these days, such flashy displays are justifiably viewed as vulgar by some. However, if recent stories are to be believed, 2024 is the year of loud luxury.

Get Loud

Or, more accurately, operators should encourage their guests to get loud.

That is, of course, if loud luxury matches the concept and market. Although, having a $40 Martini on a dive bar menu is only silly if it costs an operator money. There’s nothing wrong with putting such a drink on a menu if it doesn’t offend a venue’s base of loyal guests and run them off.

So, what’s in a $40-plus Martini? Pricey booze, put simply. These luxe libations aren’t made with $20 or $30 gins or vodkas. Rather, these spendy sips feature spirits that cost $100 or more.

Further, these trendy, tony tipples pair quite well with caviar bumps. There’s no reason an operator can’t leverage both of these extravagant trends simultaneously. Depending on which caviar is on offer, bumps can command upsell costs of $10 to $20 (or more).

That can mean that an operator’s $40 Martini can become a $50 or $60 Martini-and-caviar pairing experience.

Again, offering guests such an extravagant experience requires careful consideration and execution. Operators need to make an informed decision that includes understanding how their guests will respond to these loudly luxurious menu items.

That said, if a concept and brand can deliver such an over-the-top experience without alienating their guests, it can be fun, memorable, and profitable.

Something to consider as we approach Espresso Martini Day, which takes place on March 15. Who wants to take a shot at making one that costs more than $40?

Image: Ambitious Studio* – Rick Barrett on Unsplash

AI-generated image of a Carajillo cocktail next to an Espresso Martini

March 8, 2024by David Klemt David Klemt No Comments

Clash of the Coffee Cocktails

Clash of the Coffee Cocktail Titans: Espresso Martini vs. Carajillo

by David Klemt

It took quite a few attempts for AI to generate a Carajillo without a lemon wedge or wheel garnish, with oddly placed ice on top of the foam.

It’s National Espresso Martini Day on Friday, March 15, the day we celebrate a cocktail that has been having “a moment” for decades.

I doubt the man behind the Bramble thought the Espresso Martini (originally the Vodka Espresso) would take on the life it has. The late, legendary Dick Bradsell created this modern classic in London in the 1980s. Oh, and he was also leading the charge for London’s cocktail scene revival at the time.

For whatever reason, the Espresso Martini (also known as the Pharmaceutical Stimulant when served on the rocks) enjoys immense popularity but also suffers widespread mockery. Hey, I’m also guilty of cracking jokes at this stalwart’s expense. Although, my issue is the annual articles saying, “Espresso Martini, so hot right now. Espresso Martini.”

The drink itself? I’ve enjoyed my fair share. And, damn it, I’ll do it again.

Now, I’m mainly writing about National Espresso Martini Day to put it on your radar. This Bradsell creation is wildly popular, and this year’s holiday falls on a Friday. So, there’s ample opportunity to engage with guests, increase traffic, boost revenue, and get creative.

However, I did use the words “clash” and “versus” in the title of this article for a reason…

Clash of the Coffee Cocktail Titans

I submit that National Espresso Day is the perfect time to make guests not in the know aware of the Carajillo.

Look, I know it’s not cool to steal someone’s thunder on their big day. We know we shouldn’t propose to our significant other at someone’s wedding reception. And it’s poor form to pull focus on someone’s birthday with big life event news.

Still, I’m going to propose that operators use National Espresso Martini Day to introduce guests to its rival.

A great rivalry tends to be beneficial for both participants, so why not stoke a friendly feud between these two coffee cocktail heavyweights? To get people’s promotional wheels turning, allow me to suggest an approach.

One way to get guests acquainted with both cocktails is to have them order them back to back. Encourage the ordering of a traditional (or signature) Espresso Martini. Then, have the guest order a Carajillo, traditional specs or otherwise. Right there, operators have gotten a guest to order the important second drink.

If an operator really wants to lean into this approach, they can even create a prix fixe cocktail menu featuring the Espresso Martini and Carajillo. A third drink could be a signature or personalized riff on whichever cocktail the guest enjoyed most.

Espresso Martini

2 oz. Vodka
1 oz. Fresh-brewed espresso
0.5 oz. Coffee liqueur
0.25 oz. Simple syrup
3 Coffee beans to garnish

Add ice to a cocktail glass to chill it. Alternatively, keep some chilled cocktail glasses on hand. Add all liquid ingredients to a cocktail shaker with ice. Shake well, then strain into prepared cocktail glass. Garnish with three coffee beans.

Carajillo

One part Licor 43
One part coffee
3 Coffee beans to garnish (optional)

Add equal parts Licor 43 and coffee to a cocktail shaker with ice. Shake very well to create a foamy texture, then pour into a cocktail glass.

It’s important to note that a Carajillo can be poured over ice or served up. Also, one can use any type of coffee they prefer, including cold brew. Further, some people make a Carajillo with horchata, while others serve it with a small bowl of sugar. There are also people who use cinnamon sticks and chocolate shavings for garnish.

Going even deeper, some bars serve the Carajillo as a layered, stacked, or pousse-café drink, also known as puesto style.

Image: Shutterstock. Disclaimer: This image was generated by an Artificial Intelligence (AI) system.

March 5, 2024by David Klemt David Klemt No Comments

Creative Conversion: Adaptive Reuse

Creative Conversion: Adaptive Reuse Architecture

by David Klemt

Just taking a quick glance, I see covered outdoor seating, a cool front desk, and roll-up doors for an indoor-outside space.

There are several benefits to reusing an existing space and converting it into a bar or restaurant, including sustainability, and reenergizing a community.

This approach to design is called “adaptive reuse architecture.” A design layperson would likely call it “repurposing.”

As the term implies, this design methodology focuses on using an existing building in a new, modern way. It’s a beneficial approach to design and architecture in large part because new construction is so resource heavy.

Proponents of adaptive reuse architecture point to a given project’s lower carbon footprint, energy conservation, sustainability, and lower construction costs. However, there’s more to it than just reduced costs (attractive to owners and investors) and lower impact on the environment.

There are buildings that lie dormant across the US, Canada, and other countries that hold special places in communities’ hearts. Revitalizing these spaces can do wonders for lifting people’s spirits, preserving heritage while developing culture and community in a new way.

Finally, in my eyes, it’s honorable to allow a space to once again serve the community, albeit in a different way. A space that once provided a crucial service to an area—employment, resources, a communal space, shelter—can now serve as a place to nourish the body and mind through food, drink, and social interaction.

When considering a site (which should also be accompanied by a feasibility study), operators should look at locations that can help them do what neighborhood restaurants and bars have historically done best: serve as cornerstones for their communities.

Vinsetta Garage

One of the most popular approaches to reusing spaces for restaurants is repurposing service stations.

Maybe its American nostalgia, maybe it’s America’s love for the open road. Or, maybe it’s that there are so many service stations in disrepair throughout the country.

Of course, when considering a former gas station, service station, or automotive repair shop, one must consider the costs of making the space food- and people-safe. After all, oil, fuel, and other harmful substances were present in significant amounts over the years. That said, abatement is absolutely feasible as long as a realistic budget is in place.

At any rate, one great example of service station reuse is Vinsetta Garage. This concept in particular keeps a landmark alive: the restaurant lives inside the oldest garage east of the Mississippi. The garage survived for more than 90 years before closing its doors.

Of particular note is the team behind Vinsetta Garage, Union Joints. Reuse appears to be Union Joints’ raison d’être. Along with this garage, the group has reused a fire hall, a church, and a lumber mill. They’ve even repurposed a Hooters. (We can argue whether second- or third-generation restaurant spaces are adaptive reuse some other time.)

To my knowledge, Union Joints has never repeated a concept, owing greatly to their dedication to giving landmark buildings new life.

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The Jane

What a transformation this space has undergone.

Once a military hospital chapel, The Jane counts among its accolades two Michelin Stars, multiple appearances on the World’s 50 Best Restaurants list, and was described as the world’s most beautiful restaurant at the 2015 Restaurants & Bar Design Awards.

The kitchen resides where the altar once stood, and themes of good and evil, and life and death, can be found throughout the space. This is truly a high-concept reuse of a space.

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Hoogan et Beaufort

When people consider adaptive reuse, many likely think of repurposing factories.

They’re normally large, and often feature impressive floor-to-ceiling heights. And, unfortunately, they can be found abandoned or otherwise unused all over many countries.

Reusing such a space can revitalize an area, removing an eyesore from a community and making it functional once again. An upscale example of a reused and reimagined factory is Hoogan et Beaufort, a restaurant in Montréal, Québec, Canada.

For nearly 100 years, the factory produced rail cars. The industrial space, with 28-foot-high ceilings, ceased production in 1992. Its doors were reopened by Chef Marc-André Jetté as a 70-seat restaurant in 2015.

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HopSin Brewpub

This space is part of the Mag8 Craft Beer brewery in Colares, Portugal.

Formerly a tram station and post office, the building also houses HopSin, a brewpub.

As you can see in the post below, the flat roof of the building provides a fantastic outdoor area. Interestingly and conveniently, the tram that currently travels to Sintra stops right in front of HopSin.

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Trinity Place

Located in New York City, Trinity Place reuses a bank vault. However, it’s not just any bank vault.

Diners have the opportunity to grab a bite and drink in a vault tied to industrialist and philanthropist Andrew Carnegie.

In partnership with New York Realty Bank, Carnegie commissioned the bank vault at the turn of the 20th century. And 120 years ago, it was said to be “the largest and strongest bank vault in the world.” It was so big that the building, the Trinity and US Realty Building, was built around and atop the vault in 1907.

Other than restoring it to use as an actual bank vault, what could one really do with this space? Well, two creative restaurateurs, Katie Connolly and Jason O’Brian restored the vault…and turned it into a bar and restaurant—complete with a 40-foot mahogany bar—in 2006.

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The Ordinary

Speaking of bank vaults, there’s a kitchen behind bank vault doors inside The Ordinary.

The team behind FIG, a James Beard Award-winning restaurant operating in Charleston, South Carolina. Also in Charleston, The Ordinary reuses a bank space.

The bank itself has quite a history. Interestingly, considering the focus of this article, the former bank stands on ground that was once a factory. However, that building was not reused; it was torn down to make way for Peoples-First National Bank, which opened for business in 1928.

Looking at that year, some of you may know what happened next. The Great Depression descended upon the world, and Peoples-First survived as best it could until closing its doors in 1933. Occupied for a time by a bakery, the building became Citizens & Southern National Bank in the 1940s, and operated as such for nearly 50 years.

Citizens & Southern National Bank became NationsBank at the start of the Nineties. Then, just before the turn of the century, the space transformed into a Bank of America branch. The bank closed in 2006.

In 2006, FIG’s owners bought the bank, reusing the space as best they could to reimagine and reopen it as a restaurant. The vault was, unfortunately, removed, but other elements of the former bank remain.

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Image: Jason Mitrione on Unsplash

March 4, 2024by David Klemt David Klemt No Comments

5 Books to Read this Month: March 2024

5 Books to Read this Month: March 2024

by David Klemt

Our inspiring and informative March book selections will help you improve operations, refresh F&B programming, and consider a design update.

This month, we look at books covering an array of topics: overcoming dysfunctions within teams; stepping outside of comfort zones; cocktail and Irish dish recipes; and repurposing existing buildings.

To review the book recommendations from February 2024, click here.

Let’s jump in!

The Five Dysfunctions of a Team: A Leadership Fable

In a departure from most business books, the author of The Five Dysfunctions of a Team presents useful lessons in the style of a fictional tale. This approach makes this book—which has more than 13,000 reviews on Amazon—a compelling read.

From Amazon: “Equal parts leadership fable and business handbook, this definitive source on teamwork by Patrick Lencioni reveals the five behavioral tendencies that go to the heart of why even the best teams struggle. He offers a powerful model and step-by-step guide for overcoming those dysfunctions and getting every one rowing in the same direction.”

Pick up your copy today.

The Complete Irish Pub Cookbook

I doubt you need a reminder but just in case, St. Patrick’s is just two weeks away. So, what better time to pick up this best-selling cookbook featuring Irish classic and modern fare? Flip through this book, check out some interesting recipes, and put your own spin on them so they fit with your concept.

From Amazon: “Pubs in Ireland are the cornerstone of their communities, relaxed places where locals and visitors can experience the best of traditional Irish hospitality. Many pubs have also become the place to go for a great meal, with a choice of both traditional and contemporary dishes. In recent years Irish cooking has been transformed, with skillful cooks making the most of wonderful fresh local produce to create delicious new dishes and giving a twist to many classics. This tasty cookbook includes the best of both worlds – with best-loved favorites s Irish Stew, Corned Beef and Split Pea and Ham Soup and newer recipes, like Scallop Chowder or Oatmeal and Raspberry Cream to set your taste buds tingling.”

Order The Complete Irish Pub Cookbook now!

Drink: Featuring Over 1,100 Cocktail, Wine, and Spirits Recipes

This is a seriously big book. After all, it really does contain more than 1,100 recipes. KRG Hospitality president Doug Radkey recently picked up this book and flipped through its many, many pages.

Along with well over a thousand recipes organized by spirit, Drink looks at bar tools, housemade ingredients, and ice. Further, it includes interviews with bartenders. If you’re looking for a recipe book that will inspire a drink menu refresh, this is the one you want.

Grab this tome today.

Cool is Everywhere: New and Adaptive Design Across America

Last month, we dove into the biophilic design methodology. This book, Cool is Everywhere, is a photo-driven look into the adaptive reuse design movement. Very briefly summarized, this is a design movement that focuses on repurposing existing architecture rather than knocking down buildings and putting up new construction. This approach tends to be eco-friendly, and as you’ll see from the photos in this book, it also creates cool buildings.

From Amazon: “Cool Is Everywhere highlights remarkable designs that have transformed ordinary buildings into works of art. From North Adams, Massachusetts, to Oakland, California, join Michel as he explores the skyscrapers and quaint neighborhoods that led him to believe that cool is, in fact, everywhere.”

Pick up this book now.

The Comfort Crisis: Embrace Discomfort To Reclaim Your Wild, Happy, Healthy Self

This book from author Michael Easter asks a fairly simple question: What if the modern world’s conveniences are making our lives more difficult? When we look deeper into our lives, we may find that our health is being impacted negatively by building and remaining in our comfort zones. Certainly, entrepreneurs can find that refusing to step outside of their comfort is hurting the business side of their lives.

From Amazon: “In many ways, we’re more comfortable than ever before. But could our sheltered, temperature-controlled, overfed, underchallenged lives actually be the leading cause of many our most urgent physical and mental health issues? In this gripping investigation, award-winning journalist Michael Easter seeks out off-the-grid visionaries, disruptive genius researchers, and mind-body conditioning trailblazers who are unlocking the life-enhancing secrets of a counterintuitive solution: discomfort.”

Order it today!

Image: Mikołaj on Unsplash

"Think about things differently" neon sign

March 1, 2024by David Klemt David Klemt No Comments

Program for Unique Holidays: March 2024

Program for Unique Holidays: March 2024

by David Klemt

Do you want to stand out from from other restaurants and bars in your area? Change how you think about your March holiday promotions.

Several holidays are set against every date on the calendar, and this month is no exception. These holidays range from mainstream to esoteric.

Pay attention to the “weird” or unique holidays to raise eyebrows, carve out a niche for your restaurant or bar, and attract more guests. Why do what everyone else is already doing? Why program only around the same holidays as everyone else?

Of course, you shouldn’t try to celebrate every holiday, strange or otherwise. Focus on the days that are authentic to your brand; resonate with your guests; and help you grab attention on social media.

You’ll find suggestions for promotions below. However, the idea behind our monthly holiday promotions roundup is to inspire you and your team to get creative and come up with unique programming ideas.

For our February 2024 holidays list, click here.

March 5: Cinco de Marcho

Supposedly, this holiday is meant to “train the livers” of people planning on getting slightly wild on March 17. They have 12 days to get ready to party.

Well, we at KRG Hospitality think this sounds a bit irresponsible. We don’t want any operators or their teams to run into any legal trouble. So, I recommend offering a spin on the Coronarita as a nearly two-week-long LTO.

Build a Margarita with Irish whiskey, Cointreau, fresh lime juice, and agave syrup. Serve it in a salt-rimmed pint glass, schooner, or mason jar. Invert a Harp Lager, Smithwick’s Pale Ale, or Guinness Blonde Lager in the glass.

March 7: National Crown Roast of Pork Day

Here’s a fun one based on a culinary classic. Put simply, a crown roast is anywhere from a dozen to nearly two dozen pork rib chops. When arranged in a circle, they look like a crown.

It’s old school, and it’s certainly a shareable dish. Dress this LTO up with a wine pairing, or dress it down with a bucket of beers.

March 8: National Proofreading Day

Your menu is a billboard. It’s a crucial marketing and branding tool. So, it can be embarrassing when there are typos and other issues on your menu.

If you don’t want to proofread it yourself, or you just want to engage your guests, put a “bounty” on misspellings and grammatical errors on your menu. Watch how quickly any mistakes are found, if any exist.

March 14: National Potato Chip Day

Housemade potato chips are among the best appetizers and sides. If your kitchen team is up for it, consider housemade chips as an LTO side. Think about making them a permanent (or semi-permanent) addition to your menu if all goes well.

March 18: National Sloppy Joe Day

So, it’s March 18. Some people may have gotten after it pretty hard for St. Patrick’s Day. They need comfort food.

If your kitchen team can make delicious Sloppy Joe’s from scratch (maybe served with housemade potato chips), they may be just what the doctor ordered.

March 19: National Poultry Day

Does your restaurant or bar serve dishes featuring poultry? Guess what you should do on this day…

March 21: World Vermouth Day

The days of low-quality vermouth are gone. For a few years not at least, people have discovered that premium vermouth makes a great cocktail base. This holds particularly true for low-ABV drinks, like reverse cocktails.

March 22: National Goof Off Day

This year, National Goof Off Day falls on a Friday. Really, that timing couldn’t be much better.

Encourage your guests to set aside their responsibilities—as long as it won’t get them fired—and goof off at your bar.

March 29: Smoke and Mirrors Day

When a cocktail is served with smoke, people take notice. Often times, when one is served, people watching the show want one of their own.

This is the perfect holiday to show off your smoking cocktails. To really embrace the holiday, smoke and serve them in a glass and chrome smoker box. By the way, these boxes work well when it comes to smoking food items, too.

March 31: National Tater Day

Much like poultry day, I bet you can figure out what to do on National Tater Day. Celebrate the potato! Tater tot nachos? Done. Sriracha French fries? Awesome. Fully loaded potato skins and baked potatoes? Classics.

Get creative. The humble potato is a fantastic canvas for enticing dishes.

Image: Ivan Bertolazzi on Pexels

February 28, 2024by David Klemt David Klemt No Comments

Questions Future Operators Need to Ask

Questions Future Operators Need to Ask Before Opening

by Jennifer Radkey

Taking your dream bar or restaurant from vision to reality can be an exciting journey but too many people get ahead of themselves during the process.

What are some of the first actions a future operator takes when deciding to open a new restaurant or bar? Well, many will dive right into deciding on a concept, looking at locations, or figuring out costs. Some may take the time to wisely invest in feasibility, concept, and business plans.

Very few will ask themselves the crucial questions that will help them figure out if they are truly ready to take on this huge endeavor—and be successful at it.

Before designing menus, hiring a real estate agent, or looking for investments, you need to sit down and gain a clear understanding of the state of your mindset. Successfully opening a restaurant or bar can be mentally and physically exhausting. Well before you open your doors you need to have acquired a mindset that is built on resilience, growth, leadership, and positivity.

Below are several questions to consider—and answer truthfully—before diving in.

Mindset Questions

What is the purpose behind wanting to open a restaurant or bar? Why is this goal significant to you?
How do you currently stay motivated and do you have a system in place to turn to when you lose motivation?
Do you feel capable of handling the day to day pressures of starting and operating a business? Why or why not?
Have you been in a leadership position before? On a scale of one to 10 (one being not successful at all and 10 being very successful), how successful of a leader were you?
What kind of leader do you want to be and Is there someone in a leadership position you admire and can learn from?
If you feel that you can not be the leader your business needs to succeed is there a partner you can rely on for this?
Are you currently in a good position to be able to devote the time, energy, resources, and focus needed to undertake this endeavor?
What non-negotiables do you have in your life? What are you willing to sacrifice for this dream and what are you not?
How comfortable are you with meeting people and being open to others’ ideas?
What are three key strengths you possess? How will they help you succeed?
What are three weaknesses you possess? How might they hinder your success?
Are you comfortable with delegating to others when you are not the best person for a task?
Do you have a strong support system in place of people you can turn to when needed?
Why are you choosing to open a business in the hospitality industry? How do you plan to leave your mark in it?
Do you possess the knowledge to run the day to day operations of a restaurant or bar? If not, how do you plan to gain that knowledge?
How open are you to continuous education and learning for yourself and your future team?
How will you balance opening a new restaurant/bar with your personal life?
Are you willing to adapt and pivot when needed, even if it means an entirely new concept?
How do you currently deal with failure?
How will opening a restaurant/bar impact other areas of your life?

Once you have answered these questions you will have a better understanding of where your mindset stands right now, what areas you may need to improve upon, and if you are truly ready to open your own restaurant or bar. There is a saying that knowledge is power, and self-knowledge is the most powerful kind!

Cheers to professional and personal well-being!

Image: Laurin Steffens on Unsplash

February 27, 2024by David Klemt David Klemt No Comments

The Fourth Member of Your Team

The Fourth Member of Your Team

by David Klemt

When looking at your organization, it’s crucial to realize ownership, leadership, and staff aren’t the only members of the team.

There’s another key member, and their input is among the most valuable. And you rely on them for the success of your business. They’re your guests.

It may seem painfully obvious that your guests are integral to the success of your business. After all, your registers won’t ring without guests coming through your doors, placing orders online or via phone, and spending their money at your venue.

When they become regulars—particularly vocal regulars who tell others about your great business—they transform into unofficial brand ambassadors. That’s fantastic marketing that tends to cost you nothing.

However, their importance goes beyond the monetary. Further, it’s more than just free marketing.

Menu Streamlining

Do your guests provide you with feedback? Actually, scratch that; let’s start again.

Do you provide your guests with a simple, convenient way to give you feedback? And do you seek more than a thumbs up or thumbs down for their experience at your restaurant or bar?

It can be difficult to streamline your menu, particularly if you’re unable to look at every item objectively. There are operators and chefs out there who get attached to their personal favorite menu items. That’s fine, until it’s not.

Perhaps a dish took a long time and a lot of work to get just right. Maybe it was a family thing and you’re proud of it.

But if you’re too proud of it and it’s not selling, it’s just costing you money. Keeping it on the menu hoping it will become a hit is bad for business.

A while back, when Bar & Restaurant Expo was Nightclub & Bar, Chef Brian Duffy shared a simple method for streamlining a menu. You run a product mix report, then separate them into three categories: rock stars, solid performers, and dogs.

The former are your top-selling items, and the middle category perform consistently. But the latter…they don’t sell. Worse, if they require ingredients that you don’t cross-utilize to make other dishes or drinks, they aren’t just stagnant, they’re costing you money.

If an item isn’t selling, that’s your guests—the fourth member of your team—letting you know they don’t want it. Removing such items is an easy way to begin the streamlining process. Some of the best bars and restaurants in the world audit their highly anticipated menu launches a few months after their release. Items that aren’t selling are refreshed or removed.

So, when you encourage your guests to give your feedback, ask them what they think about your menu. Also, ask your staff what guests are telling them about your food and drink.

Your Vision

If you’re anything like our clients (or you are one of our clients), you’ve spent a ton of time envisioning your perfect restaurant, bar, cafe, eatertainment concept, nightclub, or hotel.

With that comes a hypothetical but informed vision of the guest journey. You’ll have an idea of how your guests will use your space.

Well, what if your guests turn that idea on its head? How will you react if guests see your vision in a different way?

On today’s episode of the Bar Hacks podcast, guest James Grant says something that I have also been saying for quite some time: like me, he sees guests as an integral member of the team. They do, to a degree, have influence over your concept.

To paraphrase, Grant says guests are half of the reason people open and operate restaurants, bars, cafes, nightclubs, hotels, etc.

As an example, we have a client who saw their space a certain way. We helped develop their bar concept with their vision in mind. However, not long after opening, our client’s guests showed that they had a different perception of the bar. Our client adapted, and the bar team and guests are happy.

The brand didn’t change. Neither did the space, physically. Nor did the cocktail program. However, one key element did change, as far as the type of bar it was intended to be.

As another example, friends of mine opened a bar years back. The space was meant to be an upscale cocktail bar with a relaxed and sophisticated vibe. That vision was achieved, but influential guests added an element: the bar became a high-energy after-hours spot.

At first, my friends weren’t sure about this change or if they should encourage it. But when they saw that revenue and profits were up, well…sometimes change is a good thing.

Adaptation

You may be very proud of items you have on your menu. Along those lines, you may have a very specific vision for your F&B programs that tell the story of your brand and space.

If an item here or there doesn’t catch on, it doesn’t make you a failure. It can be disappointing if your personal favorite turns out to be a dud with guests; don’t take it personally. It’s just business. The items on your menu should earn money, not lose it.

And if a guest reads through your highly curated cocktail, beer, or wine menu and then orders something “basic,” that shouldn’t be seen as a personal affront.

Now, guests deciding your concept is something you never intended it to be is something else. If this happens, it requires looking at the experience, service, brand storytelling, and even the design with a critical eye.

That said, if none of that is “off,” and if your team is happy and profits go up because your guests see your business in a different way, it may be smart to adapt. This is particularly true if your team is making more money and the unexpected new direction is safe.

Operators have usually been creating their concepts in their minds for years. It can be a shock for guests to transform the business into something else.

But if the business is successful because of how guests decide to use it, is that a bad thing?

Only you can answer that question. It may be best for you to identify the “why” behind the possible concept disconnect and stamp it out. However, it may be best to lean into the unexpected new direction.

Image: Edge2Edge Media on Unsplash

Contraluz Cristalino Mezcal bottle on a drinks tray

February 22, 2024by David Klemt David Klemt No Comments

Update Your Margs with Mezcal and Sotol

Update Your Margaritas with Mezcal, Sotol, and More!

by David Klemt

We all know how to make a classic Margarita, so for this National Margarita Day we want to put some new recipes and ingredients on your radar.

The cocktail recipes below swap out the tequila for mezcal and sotol.

For a quick refresher, all tequila is mezcal in a technical sense. Mezcal is made with agave plants. Tequila producers use a specific agave plant, Blue Weber. Further, tequila must be produced in one of five Mexican states: Guanajuato, Jalisco, Michoacan, Nayarit, or Tamaulipas.

Then we have sotol. You may have seen sotol thrown in with agave spirits on cocktail or spirits roundups. To clarify, however, sotol is a typo of shrub known as the desert spoon, and it’s not an agave plant.

So, all tequila is mezcal, mezcal is agave, and sotol is…sotol.

Swap Out the Tequila

Being National Margarita Day, you certainly need to have a classic Margarita on your menu. It’s all the better if your bar team makes them so well and so consistently that really, your top-selling Marg is one of your signature cocktails.

That said, it’s also a good idea to play with classics to give your guests new drinks to discover. The two recipes below are two great examples of riffs on the classic Margarita that should get your and your bar team’s creative wheels turning.

Allow me to introduce you to Contraluz Cristalino Mezcal and Nocheluna Sotol, if you’re not already acquainted.

Contraluz lays claim to the title of “world’s first cristalino mezcal.” Made from 100 percent espadín agave, this is a crystal-clear, small-batch reposado mezcal. On the nose, expect aromas of agave, along with citrus and floral notes. You may also detect smoke, cedar, and honey. In terms of flavor, Contraluz delivers notes of vanilla, clove, cacao, and cooked agave, with a sweet, long finish.

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A post shared by Contraluz Cristalino Mezcal (@mezcalcontral

The second cocktail below is made with Nocheluna Sotol, which is crafted using 100-percent wild sotol from Chihuahuan desert. This particular sotol is the result of a collaboration between a fourth-generation master vintner, and a master distiller.

A unique spirit, Nocheluna delivers a delicate balance of sweet, herbal, dried fruit, and mineral notes. These notes come through via both the aroma and taste, although you may detect oak and smoke as well. Interestingly, Nocheluna says the finish may include a taste of pecan wood, along with wet earth.

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A post shared by Nocheluna Sotol (@nochelunasotol)

But Wait, There’s More!

Along with Contraluz and Nocheluna, you’ll see three bottles that may be new to you below. The Light and Soul cocktail calls for Alma Finca Orange Liqueur, Nixta Licor de Elote, and HAGAVE Spiced Nectar.

The first is an orange liqueur produced by the same company that makes Montelobos Mezcal. The second liqueur, Nixta Elote, is essentially liquid elote seasoning, and it comes in a fantastic corn-shaped bottle. Finally, HAGAVE is exactly what it says on the label: a premium, spiced agave mixer.

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A post shared by Nixta Licor de Elote 🌽 (@nixtalicor)

I don’t know about you, but I definitely plan to get my hands on each of these bottles. Just imagine what you can do to engage with your guests by introducing them to a crystal-clear, artisanal mezcal, an expertly crafted sotol, and liquid elote in a corn bottle.

Cheers!

Light and Soul

2.0 oz. Contraluz Cristalino Mezcal
0.5 oz. Alma Finca Orange Liqueur (or a triple sec or different orange liqueur if unavailable)
0.5 oz. Nixta Licor de Elote
1 oz. Lime cordial
0.5 oz. HAGAVE Spiced Nectar

Place a large ice cube or sphere in a rocks glass. Add all liquid ingredients to a shaker filled with ice. Shake well, and strain into the prepared rocks glass. Garnish with a dehydrated lime wheel.

Sotolita

1.5 oz. Nocheluna Sotol
1.0 oz. Triple sec
1.0 oz. Fresh lime juice
1.5 oz. Apple juice
Apple slices to garnish
Chiltepin salt for rim (sea salt blend with chiltepin peppers)

Prepare a rocks glass by adding quality ice and rimming it with chiltepin salt. Add ice to a shaker, then add all liquid ingredients. Shake well, then strain into the prepared glass. Garnish with an apple-slice fan.

Images provided by LaFORCE

February 21, 2024by David Klemt David Klemt No Comments

Did This Beer Win Super Bowl LVIII?

Did This Beer Win Super Bowl LVIII?

by David Klemt

Now that the Super Bowl is over, behavioral insight platform Veylinx is revealing the impact on brands that advertised during this year’s big game.

If Veylinx sounds familiar to you, you may be a regular KRG Hospitality news reader. Last month we looked at their dive into alcohol-free canned cocktails. Last year, we shared a Veylinx report with a focus on whether Super Bowl ads really work on consumers. And in 2022, Veylinx wondered if the interest in zero-proof drinks was all hype or worth leveraging.

This month, Veylinx is at it again. This time, however, they’re revealing which brands—those that advertised during Super Bowl LVIII—saw the biggest ROI. For context, a 30-second spot during the big game cost approximately $7 million this year.

That’s a ton of cash to shell out in the hopes of seeing a sales increase on- and off-premise.

Speaking of on-premise, Veylinx’s findings should be of interest to operators. The beer that Veylinx says “won” the Super Bowl will likely be top of mind among your guests who watched the game and the accompanying ads.

So, it stands to reason that they’ll either expect to find that beer on a menu. Likewise, they may be swayed to order the beer if they see it when scanning a bar’s taps, menu, or fridges.

With that in mind, operators may want to watch their sales of Michelob Ultra.

Study Methodology

For their latest report, Veylinx used similar methodology to their Elixir non-alcoholic canned cocktail study.

A mix of 50 percent men and fifty percent women participated in the study. All 1,604 participants were US residents aged 21 or older. Looking deeper into the participants, the age breakdown is as follows:

21 to 27: 30 percent
28 to 43: 25 percent
44 to 59: 25 percent
60 and older: 20 percent

Like the Elixir (a fake brand invented by Veylinx) study, participants bid on products with their own money. The auction mix consisted of products that advertised during Super Bowl LVIII and those that did not advertise during the game.

Study Results

Among all viewers of Super Bowl LVIII, brands that advertised during the game saw an average lift of 16 percent.

However, those brands saw the biggest boost in demand—24 percent—among men. Gen Z followed, with demand in advertised brands growing by 11 percent. Among women, brands that advertised saw just a nine-percent boost in demand.

While Doritos Dinamita was the number-one brand among all viewers in general, and men and Gen Z in particular, Michelob Ultra is a close second. Interestingly, the beer brand was the top-performer among women in terms of demand growth.

For those wondering, no alcohol brands were among the top three performers for Gen Z.

So, operators who have noticed in uptick in Michelob Ultra sales may have Super Bowl LVIII to thank. If that’s the case, if sales of Michelob Ultra have increased in bars and restaurants since this year’s big game, it appears that yes, Super Bowl ads still work on consumers.

Image: cottonbro studio on Pexels