Restaurant

Person using Uber Eats on their iPhone
by David Klemt David Klemt No Comments

SevenRooms Reveals Third Party Impact

SevenRooms Reveals Third Party Delivery Impact

by David Klemt

Person using Uber Eats on their iPhone

New findings from SevenRooms, the powerful reservation and guest relationship platform, show the impact third-party delivery has on restaurants.

In partnership with YouGov, a respected internet-based market research and data analytics firm, SevenRooms finds that direct delivery saves operators thousands of dollars per month.

The overall finding of the “Data & Dollars: Revealing the Impact of Third-Party Marketplaces” report is startling. Operators are relying on a technology that in reality is harming them and their bottom line.

Cost of Convenience

Foodservice operators and workers, along with being hospitable in their mission to serve others, are adaptable.

The industry proves this time and time again. This is particularly true of the past 12 months.

Nimble operators pivot quickly, so it makes sense that so many restaurants, bars and other foodservice businesses embrace delivery, takeout and curbside pickup. Doing so is a direct and seemingly logical response to a major shift in consumer behavior to lockdowns, restrictions, and health concerns.

Most operators are well aware that state third-party delivery platforms take a 30-percent commission on average. However, the cost goes beyond devastatingly high fees: operators also lose control of the guest journey.

Real-world Example

SevenRooms illustrates the negative financial impact third-party delivery platforms with three examples: a high-end Italian restaurant in New York; a high-end steakhouse in Los Angeles; and a high-volume casual restaurant in California.

Let’s take a look at the last example.

Over a six-month period, the restaurant fulfills 19,000 combined orders. Delivery makes up 75 percent of these orders, takeout/pickup account for 25 percent. The average order is $33, and over the six-month period the total order volume is $617,500. Had the restaurant implemented direct delivery rather than third-party, they would have saved about $154,000.

Break those savings down and the restaurant would save approximately $25,600 per month that could go to:

  • PPE: 853 boxes of face masks or 196 boxes of gloves.
  • Takeout: 101,000 food containers.
  • Guest experience: 522 tanks of propane to keep guests warm on patios.

Using an average rent amount of $6,000-15,000 per month in Los Angeles, that’s also two to four months’ rent.

Guests Support Direct Delivery

The impact of third-party delivery on restaurants isn’t lost on consumers. Many view ordering food as more than just convenient, they see it as a way to support their favorite businesses.

Luckily, consumers are supportive of ordering delivery, takeout and pickup directly from restaurants.

Per SevenRooms:

  • Firstly, 37 percent of Americans are eager to do anything they can to help restaurants.
  • Nearly half, 48 percent, think it’s more economical to order directly from a restaurant.
  • 28 percent who say they prefer ordering directly to third-party delivery feel that way after seeing their favorite restaurants suffer.
  • 23 percent are informed and think third-party delivery platforms charge restaurants too much in fees.
  • 16 percent feel that the harm done to restaurants by third-party delivery outweighs any benefits.

Leverage Direct Delivery Support

SevenRooms identifies several ways in their report that operators can succeed in getting consumers to order directly.

One way is the platforms’ own Direct Delivery solution. We speak to SevenRooms CEO Joel Montaniel about this solution on our Bar Hacks podcast.

Then, of course, there are an array of incentives consumers are willing to accept in exchange for direct delivery and ordering:

  • 41 percent of Americans would order directly over ordering via third-party if a restaurant has its own app with features such as tracking and communication.
  • 37 percent consider a complimentary item such as an appetizer, drink or dessert in addition to their order an appealing incentive.
  • 32 percent like the idea of a personalized promotion applied to a future order or in-person visit.
  • 28 percent indicate interest in a personalized promotion for their meal such as a discount code or comp item.
  • 17 percent are fans of restaurants using ordering history to customize their menu and experience.

Read the entire report here. To learn more about SevenRooms, please click here. Connect with SevenRooms on Twitter, Facebook, LinkedIn and Instagram.

Image: cottonbro from Pexels

Covid-19 vaccine ampoules
by David Klemt David Klemt No Comments

Ontario F&B Workers Petition for Phase 2

Ontario F&B Workers Petition for Phase 2

by David Klemt

Covid-19 vaccine ampoules

A petition on Change.org seeks to include F&B workers in Phase 2 of the Covid-19 vaccine rollout in Ontario, Canada.

The petition, which can be found here, is directed toward Ontario, Canada, Premier Doug Ford.

Currently, Ontario is in the midst of Phase 1 of Covid-19 vaccination.

Phase 1

Per the official Ontario Government website, Phase 1 aims to vaccinate around 1.8 million people.

The phase breakdown is as follows:

  • One: High-risk populations (December through March)
  • Two: Mass deliveries of vaccinations (April through July)
  • Three: Steady state (July onward)

Those eligible for Phase 1 inoculations are:

  • Health care workers
  • Adults in First Nations, Métis and Inuit populations
  • Adult chronic home care recipients
  • Congregate living for seniors
  • Adults over 80 years old

According to the Covid-19 Tracker Canada website, 1,116,496 vaccine doses have been administered throughout Ontario. In total, slightly more than six percent of the Canadian population has received at least one dose.

Phase 2

The second phase seeks to vaccinate approximately nine million people.

Eligible people are:

  • at-risk populations;
  • individuals with high-risk chronic conditions, and their caregivers;
  • high-risk congregate settings (such as shelters, community living, etc.);
  • adults aged 60 to 79, in 5-year increments; and
  • essential frontline workers who cannot work from home.

The requirement in bold should get the attention of all restaurant, bar and foodservice workers. Ontario identifies several “essential frontline workers” eligible for Phase 2. Among them are elementary and secondary school staff, police, firefighters, special constables, and social counselors.

However, high- and low-risk retail workers are on the list while restaurant and foodservice workers are not.

The Petition

Cassie MacKell is the person behind the petition to “Include Restaurant & Food Service Workers on Ontario’s Phase 2 Vaccination List.”

MacKell’s opening statement says, “I write this letter as a cry for help from the entire Food & Beverage industry of Ontario in regard to Ontario’s phase vaccine distribution plan.”

The petition’s creator goes on to say:

“As one of the hardest hit industries from Covid-19 why am I not seeing restaurants workers on this list? From the outset of the Covid-19 pandemic restaurants across Ontario have been heavily regulated and shut down by Premier Ford. Even after adhering to stringent restrictions and safety guidelines set forth by our government the framework continues to keep us closed, or only allows for limited seating capacity making it impossible for many businesses to survive.”

In closing, MacKell lays bare the situation for Ontario (and indeed all of Canada) foodservice professionals. Workers in this industry are exposed to people not wearing masks while they eat or drink; are unable to remain six feet from guests; and certainly can’t work from home.

Put bluntly, all those who work in foodservice are high-risk frontline professionals. If you agree and live in Ontario, Canada, please sign this petition.

Image: Alena Shekhovtcova from Pexels

Green neon "DRINKS" sign on brick wall
by David Klemt David Klemt No Comments

Are You Ready for St. Patrick’s Day?

Are You Ready for St. Patrick’s Day?

by David Klemt

Green neon "DRINKS" sign on brick wall

St. Patrick’s Day is just around the corner. Operators need to make sure they’re ready for in-person, delivery and takeout guests eager to celebrate.

An interesting element for this year’s holiday is that many people will be celebrating at home. That makes themed delivery, takeout and pickup packages important.

Over the past 12 months, consumers have grown to correlate drinking occasions with drinking at home. That shift in behavior can make it more challenging to succeed with holidays.

Of course, challenges also present opportunities. Working from and drinking at home has made weekday day-drinking more common. Operators can leverage new behaviors to offer in-person, delivery and takeout packages starting earlier for St. Patrick’s Day.

Such packages can include Irish Coffees for the morning or early lunch, Irish beers for lunch or dinner, Irish whiskey and beer packages for dinner and late-night…you get the idea. Classic and modern riffs on St. Patrick’s Day food mainstays are also a crucial element. The key is to get creative with inventory and offers, attracting a combination of in-person and off-premise consumers.

To give you a helping hand, we’ve rounded up some of our favorite Irish, Canadian and America whiskeys. We’re including the standards but also focusing on innovative and single malt expressions that boost guest spends and overall revenue.

Irish Whiskeys

One thing all operators know when it comes to St. Patrick’s Day: Irish whiskey and high-visibility brands must be represented.

After all, according to the Spirits Business, Irish whiskey generated well over $1 billion for distillers last year in the United States alone.

Jameson, Bushmills, Tullamore DEW, Kilbeggan and Redbreast shine on St. Patrick’s Day. Proper No. 12 is just a few years old but is on its way to becoming a St. Patrick’s standard.

In markets that can bear it, premiumization can help generate more revenue during this year’s holiday.

There’s nothing wrong with OG Jameson but consider premiumization with Jameson Black Barrel or 18 Years, which is finished in first-fill barrels.

When it comes to Bushmills, the original expression is great. Rare Cask 01, however, is the distillery’s Cognac cask premium dram.

For the adventurous guest, Cider Cask Finish, XO Caribbean Rum Cask Finish, and Old Bonded Warehouse Release from Tullamore DEW will get their attention.

Operators who feature Kilbeggan would do well to consider premiumization in the forms of Single Pot Still and Small Batch Rye.

Redbreast 12 Cask Strength and Redbreast Lustau are undeniable elevations of traditional Irish whiskey.

Canadian Single Malts

When people hear or think about St. Patrick’s Day, they tend to immediately leap to Irish whiskey. However, this holiday can be a time to highlight whiskeys from other countries.

Central City crafts Lohin McKinnon Single Malt with “pure British Columbia” water, per their website. The distiller recommends adding a splash cold, filtered water, a tip you can share with your guests.

Another Central City single malt takes Canadian in an interesting direction. Lohin McKinnon Tequila Barrel Finished instills single malt with unique flavors.

Eau De Claire boasts the distinction of being Alberta’s first craft distillery and first single malt whisky producers. The distillery uses only Alberta barley and rye to craft their liquid.

American Single Malts

There are a number of superlative American single malt whiskeys to consider promoting on St. Patrick’s Day.

Westland produces American single malt in Seattle, Washington. The distillery’s Outpost Range—Garryana, Colere, and Solum—celebrates American tradition, innovation and Pacific Northwest provenance.

Westward aims to craft and bottle the spirit of the American Northwest. Westward Pinot Noir Cask and Stout Cask elevate the distillery’s American single malts.

Those searching for a Rocky Mountain single malt need look no further than Stranahan’s. Each of their expressions is thoughtfully crafted, so it can be hard to choose just one. However, Blue Peak is interesting because it undergoes high-altitude distillation and is also finished using the Solera Method.

Also hailing from Colorado is Deerhammer. The distillery’s American Single Malt mash bill can experience temperature swings of well over 40 degrees in a single day.

Image: Stéphan Valentin on Unsplash

US Capitol Building Dome
by krghospitality krghospitality No Comments

House Passes $1.9B Covid Relief Bill, RRF

House Passes $1.9B Covid Relief Bill, RRF

by David Klemt

US Capitol Building Dome

The Senate version of the American Rescue Plan Act of 2021 is through the House, awaiting the signature of President Joe Biden.

Once the bill is signed by the president, it will be the law of the land.

That means our industry is finally receiving at least a portion of the relief it so desperately needs. After nearly a year of campaigning and fighting, the Restaurant Revitalization Fund (RRF) is a reality.

Restaurant Revitalization Fund

Managed by the Small Business Administration properly, the RRF is a critical lifeline for small- and mid-sized operators.

The SBA will prioritize women- and veteran-owned and operated businesses for the first 21 days. Economically and socially disadvantaged businesses will also receive priority.

Maximum grant amounts are $5 million per individual restaurant or $10 million per restaurant group.

Eligible Expenses

Importantly, eligible expenses fall between February 15, 2020 through December 31, 2021.

Eligible expenses include but are not limited to:

  • payroll and benefits;
  • mortgage (no prepayment);
  • rent (no prepayment);
  • utilities, maintenance;
  • supplies (including PPE and cleaning materials);
  • food;
  • operational expenses;
  • covered supplier costs (as defined by the SBA under the PPP program); and
  • sick leave.

American Rescue Plan Provisions

Of course, the RRF is just a small portion of the American Rescue Plan. The bill includes many provisions for national Covid-19 testing and vaccine distribution.

States and local governments receive $20 billion to assist low-income households with rent, utility bills, and back rent. There’s an increase to benefits of 15 percent through September for those on food stamps.

Also, the Emergency Injury Disaster Loan (EIDL) program receives $15 billion, which will help small business owners.

The $300-per-week federal boost to unemployment benefits remains the same rather than climbing to $400 per week.

Crucially, the bill waives the first $10,200 of unemployment benefits from 2020. That amount rises to $20,400 for married couples. To receive the waiver, a household must have an adjusted gross income of $150,000. That AGI is the same for individual and combined households.

Individuals with an AGI of up to $75,000 will receive stimulus payments of $1,400. That amount phases out completely at $80,000 for individuals, $160,000 for couples.

What’s Next

The SBA is responsible creating and implementing the RRF application process.

For now, it’s wise for operators to calculate their grant amounts:

  • Open prior to 2019: 2019 revenue minus 2020 revenue minus PPP loans.
  • 2019 opening: Average of 2019 monthly revenues times 12 minus 2020 revenues.
  • 2020 opening: Eligible to receive funding equal to eligible expenses incurred.

Since the SBA is the agency overseeing the $28.5 billion RRF, it’s a good idea to monitor their site for pertinent dates, details and requirements.

Image: Joshua Sukoff on Unsplash

Vials of Covid-19 vaccine
by David Klemt David Klemt No Comments

CDC Updates Mask, Gathering Guidance

CDC Updates Mask, Gathering Guidance

by David Klemt

Vials of Covid-19 vaccine

On the heels of some states rescinding mask mandates, the Centers for Disease Control updates safety guidelines.

The CDC’s guidance focuses on vaccinated people.

Key Changes

Per the CDC, people who are vaccinated can meet indoors with one another. These indoor meetings can take place without masks.

Of particular note, the CDC says these people can meet up indoors with one unvaccinated household as long as they’re at “low risk” of serious illness.

Equally interesting, the latest guidance claims that if a fully vaccinated person is exposed to someone with Covid-19, they don’t need to quarantine if they’re not showing symptoms.

Importantly, these guidelines address fully vaccinated people, not those awaiting their second shot.

Masks & Public Gatherings

The CDC still recommends masks, social distancing, avoiding crowds, and staying away from spaces with poor ventilation.

Those who are fully vaccinated should exercise those recommendations whenever they’re in public; gathering with people are unvaccinated from more than a single household; meeting with anyone with increased risk of severe illness or death should they be infected with Covid-19.

Vaccinated or not, the CDC recommends people avoid medium- or large-sized gatherings and domestic and international travel.

Workplaces should still follow CDC guidance for employees not working exclusively from home.

Important Details

The CDC says a person is “fully vaccinated” if they meet one of two criteria:

  • It has been two weeks since they’ve received their second dose of a two-dose Covid-19 vaccination (Moderna, Pfizer, for example).
  • It has been two weeks since they’ve received a single-dose vaccine (example: Johnson & Johnson).

Anyone who needs to receive a second shot isn’t fully vaccinated. The same holds true if it has been less than two weeks since being vaccinated.

Per the CDC webpage: Everyone, “even people who’ve had their vaccines—should continue taking basic prevention steps when recommended.”

Click here to review the CDC’s new guidance. Remember that health and safety  protect yourself, your staff, your guests and your community.

Image: torstensimon from Pixabay

Lower-case neon open sign
by David Klemt David Klemt No Comments

Senate Boosts RRF to $28.6 Billion

Senate Boosts RRF to $28.6 Billion

by David Klemt

Lower-case neon open sign

On Saturday, the Senate approved their version of the $1.9 trillion Covid-19 relief bill along party lines.

Next, the bill will go back to the House and could receive a vote as early as tomorrow.

Boost to RRF?

According to several sources, the Senate’s version of the American Restaurant Plan Act (ARPA) includes a $3.6 billion boost to the $25 billionRestaurant Revitalization Fund (RRF).

If that’s accurate and the House passes this version of the ARPA, the RRF has $28.6 billion to disburse.

Five billion dollars will be set aside specifically for businesses that grossed less than $500,000 in receipts in 2019.

Mostly a Good Start?

The RRF is modeled on the RESTAURANTS Act.

Unfortunately, it isn’t funded like the RESTAURANTS Act. The industry has been campaigning for nearly a year for a $120 billion fund.

More than 110,000 restaurants and bars have been lost throughout the United States permanently. In addition, the industry has lost around $220 billion in sales.

The RRF isn’t even a quarter of what the industry was asking for in terms of help from elected officials.

Still, if managed properly, the RRF is much-appreciated and much-needed relief for small and mid-sized operators.

The Details (So Far)

The Small Business Association (SBA) will manage the RRF. For the first 21 days, businesses owned or controlled by women or veterans—or that are economically and socially disadvantaged—will be prioritized for grants.

Maximum amounts for grants are $5 million per individual restaurant or $10 million per restaurant group.

Established restaurants can calculate their grants thusly: 2019 revenue minus 2020 revenue minus PPP loans. For restaurants that were opened in 2019, the calculation is the average of 2019 monthly revenues times 12 minus 2020 revenues. Restaurants opened in 2020 are eligible to receive funding equal to eligible expenses incurred.

Grants can be spent on eligible expenses from February 15, 2020 through December 31, 2021. However, the SBA may extend that period through two years from enactment.

Eligible expenses include but are not limited to:

  • payroll and benefits;
  • mortgage (no prepayment);
  • rent (no prepayment);
  • utilities, maintenance;
  • supplies (including PPE and cleaning materials);
  • food;
  • operational expenses;
  • covered supplier costs (as defined by the SBA under the PPP program); and
  • sick leave.

The fight for relief isn’t over. Please click here to tell your representatives to pass ARPA and the RRF immediately.

Image: Finn Hackshaw on Unsplash

Face mask Covid-19 graffiti
by David Klemt David Klemt No Comments

Some Texas Operators Keep Masks in Place

Some Texas Operators Keep Masks in Place

by David Klemt

Face mask Covid-19 graffiti

Texas is less than a week away from opening “100 percent” according to Governor Greg Abbott.

Three things in life are certain: death, taxes, and Texans aren’t fans of being told what to do.

Data shows an increase in coronavirus cases in Texas but that isn’t stopping Gov. Abbott from announcing all businesses can open at 100-percent capacity and the state’s mask mandate is no more as of March 10.

Political, Practical or Perilous?

Per Gov. Abbott, Texas have “mastered the daily habits to avoid getting Covid,” so it’s “now time to open Texas 100 percent.”

One of those habits, one would assume, is wearing a mask or other face covering to “avoid getting Covid,”

Doctors and health experts have been warning against complacency fueled by vaccines and cases dropping in some states. Another surge may be around the corner if people drop covid-19 safety measures in favor of a return to “normal” life.

Gov. Abbott’s announcement, therefore, calls into question his motivations: political, practical or perilous?

Some Operators Pushing Back

If we accept that one can’t tell a Texan what to do, we must apply that to restaurant and bar operators in the state.

Some Texas operators disagree with Gov. Abbott lifting of the mask mandate and are “100 percent” still requiring masks in their establishments post-March 10.

This message from Bobby Heugel, the operator behind Anvil Bar & Refuge, Tongue-Cut Sparrow, Better Luck Tomorrow and Squable in Houston, is straightforward. It’s also garnering plenty of support, with people thanking Heugel and pledging to spend their money at his businesses.

In response to a question by one commenter on the post, Heugel explains that the hospitality group is maintaining 50-percent capacity, socially distanced seating, and other CDC guidelines “until vaccination rates improve.”

Nickel City operations locations in Austin and Forth Worth. As the above statement makes clear, guests must wear masks inside their venues regardless of what Gov. Abbott says. Like Heugel’s, Nickel City’s statement is garnering support.

Whether the governor’s move proves wise or foolish will bear out in the coming weeks. However, the decision will likely once again put front-of-house workers at risk of hostile confrontations with guests who take wearing a mask as a personal attack on their liberty.

Still Struggling

To be fair, Gov. Abbott isn’t going it alone in terms of rolling back a mask mandate. Mississippi, Alabama, Iowa and Montana have made similar choices.

Going a further step toward fairness, a total of 16 states don’t have mask mandates in place. In fact, some never did. What has drawn attention is that Texas is the largest state to do away with its mask mandate (and the second largest state in the US in terms of population and area).

What grabbed my attention are the responses from well-known and respected operators who have chosen to still require masks and other Covid-19-related health and safety guidelines, along with the support they’re receiving from the public for doing so.

Multiple vaccines, a seemingly downward trend in infection rates, and the lifting of restrictions don’t magically solve operators’ problems—they’re struggling, as are their employees.

Follow this link to tell your representatives to pass the American Rescue Plan Act of 2021 and Restaurant Revitalization Fund now.

Image: Adam Nieścioruk on Unsplash

United States Capitol Building rotunda ceiling painting
by David Klemt David Klemt No Comments

What’s in the Senate Relief Package?

What’s in the Senate Relief Package?

by David Klemt

United States Capitol Building rotunda ceiling painting

As expected, the Senate version of the latest Covid-19 relief bill is different from the one passed by the House.

The changes will require the bill to be kicked back to the House, adding to the pressure to get relief to Americans before March 14.

Things may change but below are some of the differences between the two versions.

$15/hour Minimum Wage

This provision is dead in both houses of Congress.

That should come as no surprise as the boost to federal minimum wage was declared dead in the water by Senate Parliamentarian Elizabeth MacDonough even before the House voted on the American Rescue Plan Act.

According to reports, removing any and all language that raises federal minimum wage to $15 an hour is the biggest change between the House and Senate versions of ARPA.

Direct Payments to Americans

Chatter online indicates that Senate Democrats are in favor of a drastically lower threshold for $1,400 direct stimulus payments.

The House version of the American Rescue Plan Act of 2021 calls for $1,400 economic impact payments with the following parameters:

  • Individuals earning an adjusted gross income (AGI) up to $75,000.
  • Married couples earning an AGI up to $150,000.
  • Payments phase out, reaching $0 for individuals earning AGI over $100,000 and married couples earning AGI over $200,000.

The Senate version calls for $1,400 payments to phase out entirely for individuals earning an AGI of $80,000 and married couples with an AGI of $160,000.

Restaurant Revitalization Fund

Let’s be honest, this is why you’re here. Is the RRF safe?

There’s nothing that shows the $25 billion fund is in danger from the Senate. That said, there’s one threat to ARPA in general, “minor” as it may be: game-playing politicians.

Unsurprisingly, Republicans view ARPA as too expensive, too favorable of Democrat’s priorities, and insufficient for addressing the reopening of businesses, schools, and fighting Covid-19.

Those concerns in and of themselves aren’t akin to playing games, nor are they invalid. Vote-a-rama, however, is a time-wasting stalling tactic that allows senators to propose literally hundreds of amendments to a bill. The time limit for vote-a-rama? There isn’t one—it lasts until senators get tired or bored.

Speaking about a coordinated plan to engage in vote-a-rama, Senator Rand Paul (R-KY), said he’s “hoping for infinity. There are people talking about trying to set up a schedule and having it go on and on.”

Take Action

Americans simply do not have time for politicians on any side of the aisle to play games. Good-faith negotiations are one thing, delay tactics that last for “infinity” are another.

We’re still in the midst of a pandemic, people are unable to pay their bills, they’re going hungry, and business owners and their employees are suffering.

It seems some politicians have made up their minds and are committed to dragging out the process of passing ARPA and the RRF contained within but we still have our voices. Follow this link to tell your representatives to pass ARPA and RRF now.

Enough games, enough delays, more action.

Image: GO Educational Tours from Pixabay 

Suburban community
by David Klemt David Klemt No Comments

Meet Customers Where They Are

Meet Customers Where They Are

by David Klemt

Suburban community

If news stories are to be believed, Americans are fleeing big, expensive cities en masse.

Are those stories accurate or examples of sensationalism?

Mass Exodus?

The pandemic is, without any doubt, reshaping the United States. It is, in fact, transforming any nation on which it has gained a significant foothold.

Several sources claim that a mass exodus to the suburbs and rural towns is taking shape across America.

The authors of these stories often cite survey results, housing and rental price fluctuations, financial struggles and the cost of living in many cities, and anecdotal “evidence” to make their points.

On its face, just the argument that cities like Los Angeles and New York City are too expensive to live in with so many people struggling financially makes sense. And stories about astronomically high rent compared to square footage and median income in dense, expensive cities are commonplace.

Haute Exodus?

Still other stories tell tales of the wealthy migrating from major cities to “wait out” the pandemic.

Since wealthy people have the means, they’re able to leave densely populated areas for destinations with smaller populations. The logic being, the less people in an area, the lower risk of infection.

There are reports referring to NYC as a “ghost town” and describing San Francisco as a shell of its former densely-populated, well-heeled self.

Again, much of the reporting is supported by anecdotal and social media “evidence.”

Half-thruths

Forbes, which has published articles supporting mass exodus claims and also disputing them, has made the argument that the situation is nuanced.

Eric Martel, a Forbes Councils Member, analyzed U-Haul Migration Index (UMI) and uncovered some interesting data. Martel finds that net migration in San Francisco and Los Angeles is lower—significantly so in LA—than it was in 2018. In NYC, net migration looks higher.

More reasonable conclusions regarding Americans and the pandemic seem to be:

  • Large numbers of people have moved out of some major cities. NYC seems to be a good example.
  • Some of the wealthy have temporarily left highly-populated cities, choosing to stay in places normally considered vacation destinations for longer periods of time.
  • People appear to be moving toward the outskirts of larger cities where rent and prices tend to be lower than that of city centers.
  • Suburbs near the outskirts of major cities appear to be popular migration targets.
  • Some of this “migration” is temporary, driven by the ability to work remotely. It’s likely that some people who have moved out of cities will return when they perceive things have returned to “normal.”

Adapt

Jack Li, co-founder and CEO of Datassential, suggests operators check out so-called second-tier cities—Austin, Nashville and Charlotte, for example—and the areas where cities meet suburbs. The reasons are simple:

  • Innovation and food trends tend to start cities, reaching rural areas last. That means second-tier cities, city outskirts, and suburbs are quicker to embrace trends and innovations. (Location.)
  • Less-expensive commercial real estate prices. (Cost.)
  • Potential increase in the number of families. (Customer density.)
  • Potential increase in the number of seniors with financial means. (Customer density.)

The impact the pandemic has had makes informed decisions that much more critical to success in this industry. Demographic and feasibility studies are more important now than ever.

Both are cornerstones of the KRG Hospitality approach, whether an operator has several years’ experience or is a neophyte. Click here to learn more about how KRG Hospitality can help you and your concept, click here to learn about KRG Mindset Coaching, and click here to download the KRG 2021 Start-up Cost Guide & Checklist.

Image: The Lazy Artist Gallery from Pexels

Cocktail with large king ice cube, overhead view
by David Klemt David Klemt No Comments

Your Drink Menu Deserves an Ice Program

Your Drink Menu Deserves an Ice Program

by David Klemt

Cocktail with large king ice cube, overhead view

All ice is not created equal—there’s a reason behind their shapes and sizes.

Taking the time to consider your ice and build a dedicated program that includes it is crucial for your beverage program and the guest experience.

Remember that just like there are rules for building cocktails, there are rules for using ice:

  • Dilution is your friend. Water is a crucial component for cocktails.
  • Is your ice floating? Your build balance is off.
  • Store ice in plastic bags if it’s not being used right away.
  • Don’t use ice that’s two weeks old or older.

Types of Ice

Standard Cube (1 inch x 1 inch): These absolutely have a place in the cocktail glass. Just adhere to this standard when using standard ice cubes: Never use a water source you wouldn’t drink.

King Cubes (2 inches x 2 inches): Use these for spirit-forward drinks for consistent temperature and dilution. Examples: Manhattan, Negroni, Old Fashioned, Vieux Carré.

Collins Spear/Shard/Cylinder: For highballs. These make a Tom Collins or G&T look elegant and cool.

Ice Block: Use blocks in punches to keep large-format cocktails cold and control dilution over time.

Ice Slab: These are impressive blocks of ice bars and restaurants use to cut and shape their own cubes and spheres, often providing guests with entertainment (see below). Operators either form slabs in-house or retain the services of producers who drop them off. (In fact, there are services out there that will provide perfect and bespoke cubes, spheres and spheres.)

Sphere: Ice spheres are ideal for stirred cocktails and enjoying spirits straight. They melt very slowly in comparison to other shapes and deliver an impressive visual impact, so they often wind up in cocktails that call for king cubes.

Pebble/Crushed: Use in drinks that are heavy on syrup and/or juice, tiki drinks, and drinks served in hot climates. Examples: Frozen Daiquiri, Margarita, Mint Julep, Moscow Mule, Swizzle.

Hands-on Approach

According to many well-known bartenders, mixologists and operators, the best method for perfectly clear ice is “directional freezing.” Camper English outlined the process on the Alcademics site in 2009. But what do you do to turn a single slab into several cubes?

You’ll need an ice saw to get through the slab, a traditional single-prong ice pick to break off smaller cubes, a three-prong ice pick to break off smaller cubes and shape them into spheres if you prefer (be careful!), and an ice mallet to help the ice picks do their jobs.

Treat this process as a show for the guests. For a real-world example, the bars inside Zuma restaurants have ice stations dedicated to turning an ice slab into ice cubes. These stations are an experiential feature of the cocktail program.

Semi-hands-on Approach

An aluminum ice sphere mold is a type of “set it and forget it” device.

It may seem like these would be time-consuming to use and low-yield, but most take just a minute to form a ready-to-use sphere. Most manufacturers claim their molds can produce 30 to 40 spheres per hour.

While the mold is creating a perfect sphere of ice, the bartender grabs a glass and builds the cocktail. The guest, meanwhile, enjoys the “drama” of drink production versus ice sphere production: Will the drink and ice be ready at the same time?

Ice sphere molds range in price from under $200 to $800 (and beyond). The molds themselves are appealing to the eye, simple to use, and justify higher cocktail prices. Yes, there are bars that successfully charge more for large ice spheres, often offering different types of ice for at additional charge.

Molds make spheres in a range of diameters, normally from 1.2 inches to 2.8 inches. Higher-end models also offer shapes, such as perfect spheres, diamonds or snowflakes. Several bars that use these molds utilize custom versions that “brand” the ice with their logo.

Ice Machines

There are multiple manufacturers of commercial-grade icemakers. However, there are two that are considered top of the food chain.

Hoshizaki America’s headquarters is in Georgia and the company makes dozens of icemakers. People can choose from ice shape and the pounds of ice a machine produces in a day. We’re fans of Hoshizaki for their quality and the pandemic information they added to their FAQs last year.

Manitowoc operates out of Wisconsin and manufactures several models. There are cubers, flakers, nugget producers, and there are several solutions that work for an array of venue types, layouts and service volumes.

To learn even more about creating an epic beverage program, click here for our latest download.

Image: Moritz Mentges on Unsplash

United States Capitol Building
by David Klemt David Klemt No Comments

Restaurant Revitalization Fund Passes

Restaurant Revitalization Fund Passes

by David Klemt

United States Capitol Building

Congress has once again voted to pass targeted relief for restaurants and bars.

The American Rescue Plan Act of 2021, which includes the Restaurant Revitalization Fund Passes, made it through Congress by a vote of 219 to 212.

All Republicans and two Democrats voted against the $1.9 billion bill, which now goes to the Senate.

Now What?

After a year of being mostly left to fend for ourselves—save for the flawed Paycheck Protection Program—operators may finally receive some relief.

The $300-per-week federal boost to unemployment, which the American Rescue Plan Act increases to $400 per week, expires on March 14. There’s some pressure on the Senate to pass the bill so it can be signed into law before or by that date.

However, we’ve been down this road before: Congress has voted in favor of a bill that contains relief for restaurants, bars and other foodservice and drinking establishments, the Senate goes a different direction, and the Congressional victory turns to ashes in our hands rather than becoming law.

Democrats control the House. A Democrat sits at the Resolute Desk. And while the 50-50 Senate is “controlled” by Democrats since Vice President Kamala Harris can break tie votes, the party can’t afford any defections if they hope to pass the American Rescue Plan.

Once again, targeted relief isn’t a certainty.

What’s in the Plan?

In short, not the RESTAURANTS Act. The American Rescue Plan provides a fraction of the $120 billion for which the industry has been campaigning for a year now.

Instead, a $25 billion grant program called the Restaurant Revitalization Fund (RRF) has been carved out for restaurants, bars and other eligible providers of food and drink.

There’s another $15 billion allocated for targeted Economic Injury Disaster Loan (EIDL) advance payments, and $1.25 billion for shuttered venue operators.

Just $7.25 billion would be pumped into the PPP and the application deadline wouldn’t be extended beyond March 31. This is likely because the PPP has disbursed over $662 billion in just under a year, and there’s still roughly $140 billion available.

In addition, the current bill includes $1,400 direct stimulus payments for individuals earning up to $75,000 or $2,800 for married couples earning up to $150,000. Payments would phase out completely for individuals earning $100,000 or married couples earning $200,000.

What’s the Restaurant Revitalization Fund?

The RRF carves out $25 billion for restaurants, bars, saloons, inns, taverns, lounges, tasting rooms, brewpubs, taprooms, food trucks, food carts, food stands, caterers, and eligible providers of food and/or drink.

Grants, should the bill pass the Senate and be signed into law, will be equal to pandemic-related revenue loss as calculated by subtracting 2020 revenue from 2019 revenue. Eligible entities could receive of up to $10 million, or a physical location could receive a maximum grant of $5 million.

RRF grants are required to be used for:

  • payroll costs;
  • principal and interest payments on a mortgage, excluding prepayments on the principal;
  • rent payments, excluding prepayments;
  • utilities;
  • supplies, including personal protective equipment (PPE) and cleaning materials;
  • F&B expenses within the eligible entity’s scope of “normal business practice” before the covered period: February 15, 2020, through December 31, 2021 (or another date as determined by the Small Business Administration);
  • maintenance expenses, including construction accommodating outdoor seating and walls, floods, deck surfaces, furniture, fixtures, and equipment;
  • covered supplier costs;
  • operational expenses;
  • paid sick leave; and
  • any other expenses the SBA determines to be essential to maintaining the eligible entity.

The SBA would be responsible for awarding $20 billion of the $25 billion fund in “an equitable manner to eligible entities of different sizes based on annual gross receipts.” The remaining $5 billion would be set aside, per the bill in its current form, for eligible applicants with 2019 gross receipts of $500,000 or less.

Click here to find your senators and urge them to pass the Restaurant Revitalization Fund.

Image: Jens Junge from Pixabay 

Bartender making a cocktail
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Bacardi Predicts How We’ll Drink in 2021

Bacardi Predicts How We’ll Drink in 2021

by David Klemt

Bartender making a cocktail

What will alcohol consumption look like this year? Bacardi has answers.

In association with the Future Laboratory, Bacardi’s second-annual cocktail trends report—a well-sourced 25-page document—is available.

As is the case when we begin a new year, we’re being deluged with trend predictions and reports. I’d say the Bacardi 2021 Cocktail Trends Report goes deeper than most.

The report is organized into five macro trends identified by Bacardi Limited. Let’s get to it!

Reinventing the Bar

I’m not presenting Bacardi’s macro trends in order. Instead, I’m starting with the trend arguably most relevant to operators: bar reinvention.

Industry experts have been pointing to the ease of access to knowledge along with consumer interest in learning more about spirits and cocktails as an important trends for years now. It’s no longer a trend—it’s standard that guests are better informed.

Like other sources, Bacardi predicts guests will seek out more personalized experiences. They also predict guests will want to connect more with bartenders. However, the brand goes deeper in their report.

Bacardi thinks to-go cocktails, cocktail and meal kits, and e-commerce will become standard. Going a step further, the report posits that some venues will create cocktail menus that will change according to weekly inventory; sommeliers will add spirits knowledge to their skillset; and that guests will be eager to try drinks they’ve never had before.

Perhaps most importantly, Bacardi predicts bar culture will become more positive and inclusive, resulting in gender stereotypes—including those inherent to bottle design—will fall to the wayside.

Purpose and Transparency

According to a study conducted by IBM and the National Retail Federation and cited in Bacardi’s report, a massive 70 percent of American and Canadian consumers think it’s important that brands are eco-friend or sustainable.

Bacardi predicts sustainability, transparency, and the authentic embrace of social causes will be crucial this year and beyond.

In response to climate change, sustainability, eco-friendliness, and the zero-waste movement, Bacardi plans to wipe out 80 million plastic bottles with their new biodegradable bottle design, rolling out in 2023.

Pointing to a statistic from ZypMedia—that 36 percent of consumers plan to keep buying from local businesses post-pandemic—Bacardi predicts hyperlocality will grow stronger in 2021. Operators who source more local items, including beverage alcohol, will likely find more support from consumers.

Mindful Drinking

Per a Bacardi survey, 22 percent of consumers across the globe are drinking alcohol less. More than half (55 percent) of “mindful drinkers” are drinking low-ABV options.

Bacardi predicts low- and no-ABV drinks to perform well this year. Spritzes, for example, is on the rise as a bar culture in its own right.

Per Bacardi, zero-proof spirits are getting the most attention of any other category, worldwide.

Mindful drinking is also affecting how spirits are made. Consumers, more conscious of their health because of the pandemic, are showing a preference for beverages free of artificial ingredients. Furthermore, Bacardi expects consumers to seek out drinks that have health-boosting benefits.

The report, as an example, cites a Global Wellness Institute finding that in 2019 alone, “U.S. sales of ginger rose by 94%, while turmeric and garlic sales were up by 68% and 62%.” Today’s consumer is seeking out functional cocktail ingredients.

Drinking by the Numbers

Bacardi’s report puts all the brand’s cards on the table. Operators looking to program or reprogram their menus will find this information helpful.

Consider the info below for delivery and to-go drinks since Nielsen finds that 40 percent of US consumers are interested in make-at-home cocktail kits, 37 percent are interested in pre-made bottled cocktails, and 37 percent are interested in grab-and-go cocktails.

Flavor and Experience: Extreme heat (chilies), Super-sweet, Sour, Bitter, Smoked

Experiences: Pleasure, Nostalgia, Escapism, Quality over quantity, Light-hearted drinks, Flavor-filled indulgences

Most Popular Cocktails, Globally (Descending Order): Low-ABV, Other spritzes, Negroni, Classic cocktails with a twist, G&T (including riffs), Non-alcohol, Whiskey Highball, Espresso Martini, Old Fashioned, Vermouth cocktails

Premiumization Opportunities: Gin, Rum, Tequila

Top 5 Spirits (by Interest): Gin, Mezcal, Tequila, Vermouth, Bitter/Amaro Liqueurs

Top 5 RTDs in North America: Vodka Soda and flavors, Margarita, Moscow Mule, Low-ABV, G&T

Click here to read the report in its entirety.

Image: Helena Lopes on Unsplash

Restaurant open sign hanging in window
by David Klemt David Klemt No Comments

Datassential Finds Operators Optimistic

Datassential Finds Operators Optimistic

by David Klemt

Restaurant open sign hanging in window

The latest report from Datassential finds that the vast majority of operators are optimistic or at least confident their businesses will survive the pandemic.

Per Datassential, operator outlook appears to be more positive than it was in December.

That’s largely due to the distribution of the Covid-19 vaccine.

Datassential Covid-19 Resources & Reports

Datassential has been releasing informative Covid-19 reports throughout the pandemic to provide helpful industry, consumer and operator data.

“Trending Upward” is Datassential’s 46th installment, and the research firm provides their Covid-19 resources at no charge.

For this report, Datassential surveyed 400 “decision makers for restaurants and on-site foodservice locations.”

Operator Outlook

Most of the operators surveyed, 220 or 55 percent, are still concerned about the challenges facing them and the industry. However, they’re “fairly confident” that their businesses will make it through.

That 55 percent represents no change from December of last year, when Datassential last gauged operator outlook.

The next two survey respondent segments tell the tale of optimism.

Of the 400 operators surveyed, 148 or 37 percent are “cautiously optimistic.” In fact, they expect to be even stronger post-pandemic.

Compared to December, that’s a seven-percent increase in operators who feel optimistic. That seven percent shifted from the “very nervous” segment,

Just 32 of survey respondents (eight percent) reported that they don’t think they’ll survive the pandemic. Losing any businesses to the pandemic and its terrible impact on the industry is beyond horrific, and the results of this Datassential report in no way minimize that awful truth. However, the percentage of operators who feel “very nervous” or otherwise pessimistic reducing by nearly half provides at least a semblance of hope for the future of the industry.

Staff Cuts

According to Datassential, more than 80 percent of operators who were forced to cut staff at some point during the pandemic have been able to bring back some of their workers.

Of the 400 respondents surveyed by Datassential, 21 percent of operators reported they hadn’t laid off any of their employees

Another 20 percent had to cut staff but were able to rehire all of them.

Nearly half (48 percent) have only been able to hire some of the staff they laid off back. Twelve percent have been unable to rehire any of the staff they had to let go.

Takeaway

Optimism is great for emotional and mental health. So is targeted relief. Operators and employees will likely feel far more confident and relieved if the industry receives actual targeted relief. This Datassential report’s findings are positive but we need Congress to act.

Click here to tell your representatives to pass the RESTAURANTS Act now.

Image: Artem Beliaikin from Pexels

by David Klemt David Klemt No Comments

Does the Margarita Still Reign Supreme?

Does the Margarita Still Reign Supreme?

by David Klemt

Whatever’s happening here, I’m in…

The Margarita has maintained the title of Most Popular Cocktail in the United States year after year.

But is the classic cocktail still wearing the crown and clutching the scepter?

Most Popular 2020 Cocktails

Midway through last year, Google revealed the top cocktail searches in each state:

  • Alabama: Hurricane
  • Alaska: Whiskey Sour
  • Arizona: Paloma
  • Arkansas: Frozen Daiquiri
  • California: Paloma
  • Colorado: Hurricane
  • Connecticut: Margarita
  • Delaware: Screwdriver
  • Washington, DC: Old Fashioned
  • Florida: Cuba Libre
  • Georgia: Sazerac
  • Hawaii: Lemon Drop Martini
  • Idaho: Kamikaze
  • Illinois: Manhattan
  • Indiana: French 75
  • Iowa: Kamikaze
  • Kansas: Screwdriver
  • Kentucky: Lily
  • Louisiana: Bushwacker
  • Maine: Margarita
  • Maryland: Kamikaze
  • Massachusetts: Old Fashioned
  • Michigan: Cosmo
  • Minnesota: Oliveto
  • Mississippi: Painkiller
  • Missouri: Gin and Tonic
  • Montana: Blue Hawaiian
  • Nebraska: Old Fashioned
  • Nevada: Grasshopper
  • New Hampshire: Old Fashioned
  • New Jersey: Manhattan
  • New Mexico: Old Fashioned
  • New York: Manhattan
  • North Carolina: Bushwacker
  • North Dakota: Kamikaze
  • Ohio: Boulevardier
  • Oklahoma: Black Russian
  • Oregon: Old Fashioned
  • Pennsylvania: Whiskey Sour
  • Rhode Island: Cosmo
  • South Carolina: Tequila Sunrise
  • South Dakota: Screwdriver
  • Tennessee: Buschwacker
  • Texas: Paloma
  • Utah: Cape Cod
  • Vermont: Cosmopolitan
  • Virginia: Old Fashioned
  • Washington: Old Fashioned
  • West Virginia: Kamikaze
  • Wisconsin: Grasshopper
  • Wyoming: White Russian

Margarita Slipping?

As you can see, the Margarita was only the top search in two states, Connecticut and Maine. Perhaps their access to the Atlantic Ocean coastline motivated residents of those states to enjoy the refreshing classic that invokes summer and escapism.

Regardless, the Margarita didn’t even make it into the top three. Third place went to the Cosmo, Manhattan and Screwdriver in a three-way tie, with each the most popular in three states.

Second place went to Kamikaze, the top cocktail search in Idaho, Iowa, Maryland, North Dakota and West Virginia.

Before I get to the first-place cocktail—according to a snapshot of time by Google—I have to address the clear winner of the Most Unique Search title. Minnesota’s top search was for the Oliveto cocktail, shaken and strained into a rocks glass:

  • 2 oz. Dry gin
  • 1 oz. fresh Lemon juice
  • 1/4 oz. Simple syrup
  • 1/4 oz. Licor 43
  • 1/2 oz. full-bodied Extra virgin olive oil
  • 1 fresh Egg white
  • Ice cubes

New Number One?

The Old Fashioned, clinching seven states, was the number-one cocktail…for about 30 days in 2020.

Much has also been made about a supposed surge in interest for the Gin & Tonic.

However, scouring the Internet for data and articles, the Margarita is still sitting comfortably on the throne. According to multiple sources, the Margarita is a to-go cocktail mainstay, it’s succeeding in the RTD space (meaning it’s performing well on- and 0ff-premise), and home bartenders are driving up sales of tequila and cordials.

Trends are fun but classics are classics for a reason. So, make sure your Margs, G&Ts, Old Fashioneds, Manhattans and other staples are dialed in this year.

Image: Menú Acapulco on Unsplash

DCBL X-1 Mask, made by hospitality professionals for the hospitality industry
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I Tried the Mask Made for & by Hospitality

I Tried the Mask Made for & by Hospitality

by David Klemt

 

DCBL X-1 Mask, made by hospitality professionals for the hospitality industry

Wearing a mask is part of everyday life, particularly for hospitality industry professionals.

DCBL Masks was designed by hospitality professionals for the hospitality industry, born out of their reverence for the workers putting themselves at risk so the communities they serve can retain a semblance of their normal lives.

Their first mask, the X-1, is intended to provide solutions to the problems presented by other face coverings.

Thoughtful Design

One problem with the standard masks and face coverings we’ve grown accustomed to is their tendency to muffle voices. One of the driving design elements behind the DCBL X-1 is the projection of the wearer’s voice.

The X-1 is a three-piece mask and its second layer is what sets it apart from others. The middle layer is sound-enhancing, sculpted foam that allows the wearer’s voice to carry. No more going hoarse from yelling, no more (or less, at least) repeating oneself, no more guests leaning in or stepping closer to hear what’s being said (hopefully).

That second layer is also intended to improve breathability. The inside layer’s design provides an air pocket for similar breathing functionality. It’s also made of natural bamboo so it’s soft, moisture-wicking and cooling, and it receives an antimicrobial treatment.

The X-1’s outer layer is polyester and resists dust and moisture while also protecting against UV rays. There are two flexible “suspension” systems, one for the nose and one to seal the bottom of the mask. Straps are Spandex, ear loops are adjustable, and there’s a clasp system so the wearer can choose how to secure the mask to their head.

Designed by Industry Pros

DCBL is the brainchild of industry veterans Michael Tipps and Homan Taghdiri. Tipps and Taghdiri are the co-founders of both DCBL Masks and Invictus Hospitality, a consulting agency headquartered in Los Angeles.

Tipps boasts over two decades’ experience in hospitality. He got his start in South Florida and has worked every front-of-house position. His journey through hospitality helped him gain perspective regarding the challenges inherent to the industry, and he eventually co-founded Invictus.

Taghdiri worked in hospitaity for 13 years before becoming a licensed attorney in California. He has worked every position in the industry. While he no longer studies law, when he did, he specialized in real estate, business and the hospitality industry.

DCBL’s Mission

There are three main goals DCBL seeks to achieve: Protection, projection, and connection. I’ve explained how they achieve the first two goals.

If the first goal isn’t realized, goals two and three don’t matter. If DCBL whiffs on the second goal, the third is unachievable. The X-1 seeks to make conversation easier when wearing masks so people can feel more connected. Being separated by masks, distance, barriers, and staying at home is detrimental to us all. The DCBL X-1 addresses that issue.

As the DCBL website says, “Staying safe and making a living shouldn’t be as challenging as it has been.” I feel the brand accomplishes their deceptively simple goals.

Impressions

First things first, I didn’t receive my X-1 in exchange for this post or any monetary compensation. I was genuinely curious about the mask and placed an order for two.

My masks arrived in a black bubble mailer, making them seem a little cooler from the start. They were each sealed in their own packet with an insert that explained the three layers, different methods for securing the X-1, machine washing instructions, and more.

DCBL X-1 mask packaging

In my experience, the mask felt soft and comfortable before even putting it on. The X-1 feels like a well-constructed, high-quality mask.

DCBL X-1 Mask

I have to say, I dig the interior layer. Not only is it soft and comfortable, the design detail is a nice departure from the white, black or pale blue to which we’ve all become accustomed:

Inside layer of DCBL X-1 face mask

It’s comfortable on my face and it allows me to speak comfortably, clearly and loudly no extra effort. I wore mine around my place and while writing this article. The ear loops are comfortable for me but the X-1 can be worn easily with an ear loop extension or toward the top of the head with the clasp system.

My glasses did fog slightly at first, but that became a non-issue after I adjusted the nose bridge suspension area.

Other people’s mileage may very, of course, but I feel that the mask delivers on DCBL’s mission statement: Be Heard.

To learn more and order the X-1, click here. connect with DCBL on Instagram and Facebook. Contact hello@dcblmasks.com for wholesale orders.

Disclaimer: The DCBL X-1 is not a medical-grade mask and is not intended as a replacement for medical-grade equipment or other recommended measures to stop the community spread of any viruses.

Images taken by author.

Glass of red wine
by David Klemt David Klemt No Comments

Uncorked: 2021 Wine Trends to Watch

Uncorked: 2021 Wine Trends to Watch

by David Klemt

Glass of red wine

What’s up with wine in 2021? We reviewed multiple sources to find out.

One great thing about hunting for wine trends is that it’s easy—there’s no shortage of sources willing to make predictions.

Common Wine Trends

The IWSR, without a doubt a reputable source for information about all things beverage, expects wine consumption to “bounce back” this year.

Along with Forbes, Wine Intelligence, just-drinks, and bar inventory platform Backbar, the IWSR expects e-commerce to be crucial for wine sales. Continuing with tech influence, the IWSR and Wine Intelligence expect wine producers and sellers to engage more with consumers online. Forbes pointed to orange wine benefiting from Instagram posts as a specific example of digital engagement.

Forbes, the IWSR, and Wine Intelligence predict alternative packaging to really take off in 2021. Canned wines are well positioned but other options—wine-in-box and “letterbox” bottles, for example—will perform well this year.

Forbes, the IWSR, and WineMemoir expect sustainability to be even more important in 2021. The IWSR mentioned organic and low-intervention wine, and they pointed to biodynamic wine, as did WineMemoir. Zero-waste winemaking was mentioned by Forbes.

The IWSR and Forbes expect sparkling wine—Prosecco specifically—to have a moment this year. Drinking occasions, per the IWSR, have come to include Prosecco more often; sparkling is no longer just for celebrating.

Breakout Wine Trends

Speaking of moments, rosé Champagne will have on in 2021, according to Forbes. The publication also expects the wealthy to continue “drinking richly,” so operators with rare, exclusive and high-dollar bottles should consider promoting them.

With the explosive growth of hard seltzer that has taken place over the past few years, Wine Intelligence predicts 2021 to be the year the wine seltzer market is established.

People will choose “safe” wine options, meaning they’ll be less likely to experiment and move out of their comfort zones, according to just-drinks. The magazine is also more cautious about the category’s growth this year, pointing to slowed economies and rises in alcohol duty rates.

Backbar, explaining that wine dollar value slipped but sales volume rose in 2020, predicts restaurants will offer more affordable wines. Along with that trend, they predict restaurants will hold less inventory to reduce costs, meaning wine lists will shrink.

Specific varietals Backbar predicts will perform well due to a turn toward affordable wines: South American Cabernet Sauvignon, Chardonnay and Malbec; South African Chenin Blanc; Portuguese reds; red blends; and American wines in general.

2021 will be the Year of Cabernet Franc, according to WineMemoir. Bordeaux will see a resurgence in popularity, and wines from Abruzzo and Jura will see a lift.

Image: Carson Masterson on Unsplash

by David Klemt David Klemt No Comments

Infographic: NRA Raise the Wage Survey

Infographic: NRA Raise the Wage Survey

by David Klemt

The results of a survey conducted by the National Restaurant Association to gauge operator reaction to the Raise the Wage Act are in.

Per the NRA’s infographic detailing the participant responses, there’s not much support for increasing the federal minimum wage and eliminating the tip credit.

What’s in the Raise the Wage Act?

If signed into law, the Raise the Wage Act will represent significant change for employers and employees.

The federal minimum wage will be raised incrementally to $15 by 2025. Two years later, in 2027, the tipped wage will be eliminated.

Survey Results

The NRA surveyed 2,000 restaurant operators between February 2 and 9. Respondents are clearly opposed to the Raise the Wage Act.

National Restaurant Association Raise the Wage infographic

What Does This Mean?

A vast majority of survey respondents—along with the NRA—definitely view the bill as a threat to the industry. An email sent by the NRA’s executive vice president of public affairs, Sean Kennedy, includes this succinct statement:

“These results make one point crystal clear—after seeing over 110,000 restaurants close and over 2.5 million jobs lost, increasing labor costs is going to make it more likely that more operators close their doors and lay off their staff. Tipped servers will lose with the end of a system that allows them to make $19-$25 an hour in tips under the current tip credit system.”

To the best of my knowledge, the NRA has not yet conducted a targeted survey of restaurant workers for their opinions of a $15 federal minimum wage and the elimination of the tax credit.

However, fast-food workers from McDonald’s and other chains have gone on strike in at least 15 cities in the United States to demand a raise to $15 per hour. That speaks volumes for how foodservice workers who aren’t typically tipped feel about the Raise the Wage Act.

What’s Next?

According to the NRA, the bill is slated to be fast-tracked and voted on in just a few weeks.

Agree that the Raise the Wage Act is going to hurt operators, workers and the industry? Click here to let Congress know.

Want Congress to pass the bill? Click here to find your representatives and let them know.

Infographic: National Restaurant Association

Image: lucas Favre on Unsplash

Chef preparing burgers inside restaurant
by David Klemt David Klemt No Comments

This Generation is Most Likely to Dine In

This Generation is Most Likely to Dine In

by David Klemt

Chef preparing burgers inside restaurant

The National Restaurant Association’s 2021 State of the Restaurant Industry report revealed the generation most likely to dine in-person at a restaurant.

That is, of course, if such restaurant service—from quick-service to fine dining—is permitted where they’re located.

So, do you have a guess? Because we have the answer.

Most Likely to Dine In

Per an NRA survey, Gen Z is most eager to return to in-person restaurant dining.

However, it’s more of a simple majority that’s after a restaurant experience beyond delivery, takeout and curbside pickup than an overwhelming one.

Just 53 percent of adult members of Gen Z surveyed by the NRA are willing to dine inside restaurants over the course of the next few months.

Overall, 67 percent of Gen Z, Millennial, Gen X and Baby Boomer adults would like to engage with restaurants like they did before the pandemic. That’s not a huge stretch, of course; we all want to return to normal and put Covid-19 behind us.

Still, the survey results make it clear there’s demand for in-person dining. The convenience of interacting with and ordering from restaurants is here to stay. However, that convenience hasn’t replaced the desire to dine (and socialize) out.

So, Who’s Most Likely to Order In?

You’d be forgiven for assuming the answer to this question is also Gen Z. After all, just about every development regarding technology and how people engage with the world has been laid at their feet.

When Gen Z isn’t being accused of “killing” a tradition, sense of normalcy or an entire industry, the finger is pointed at Millennials.

Well, it turns out the usual finger-pointing suspects are the consumers most likely to order from restaurants.

According to the NRA’s report, 81 percent of Boomers and 80 percent of Gen X will continue to order from restaurants, at least for the next few months.

Put it All Together

At least for the next several months, the industry’s recovery will hinge on the full-strength return of in-person service and the convenience of delivery and takeout.

In other words, some consumers are champing at the bit to once again make restaurant visits a regular part of their lives while others plan to proceed with caution. Successful restaurant operations will maintain a mixture of traditional and digitally-driven services.

Nearly 90 percent of adults surveyed by the NRA say they enjoy going out to restaurants and that doing so with family and friends is a better way to spend leisure time than cooking at home.

“Restaurants are the cornerstone of our communities, and our research shows a clear consumer desire to enjoy restaurants on-premises more than they have been able to during the pandemic. We’ve also found that even as the vaccine becomes more available and more social occasions return to restaurants, consumers will continue to desire expanded off-premises options going forward. Both will continue to be key for industry growth,” said Hudson Riehle, senior vice president, Research and Knowledge Group, NRA, in a press release announcing the Association’s 2021 State of the Restaurant Industry. “With more than half of adults saying that restaurants are an essential part of their lifestyle, we are confident that, with time, the industry is positioned for successful recovery.”

The NRA predicts foodservice sales to reach $731 billion in 2021, an 11 percent increase over 2020. Unfortunately, that estimate is about 15 percent lower than sales generated in 2019.

Still, that’s a reason to be optimistic. Consumers are pent-up and eager to make restaurants a significant part of their lives once again.

Nobody is more eager, evidently, than Gen Z.

Image: Jesson Mata on Unsplash

by krghospitality krghospitality No Comments

On the Menu for 2021: The RESTAURANTS Act

On the Menu for 2021: The RESTAURANTS Act

by David Klemt

Much like restaurants themselves, the RESTAURANTS Act has faced multiple starts and stops.

The bill received huge bipartisan support in 2020, landing dozens upon dozens of co-sponsors.

However, that widespread support didn’t materialize into any actual progress—the bill was never signed into law. That must change now.

A Long Road

It’s February 2021. The House and Senate must work together to provide the targeted relief of the Real Economic Support That Acknowledges Unique Restaurant Assistance Needed to Survive (RESTAURANTS) Act.

The RESTAURANTS Act was first introduced to the House of Representatives on June 15, 2020. The bill was eventually included in the revised Heroes Act, which was passed by the House on October 1, 2020 on a vote of 214 to 207.

Unfortunately, that bill was “dead on arrival” and didn’t receive a vote on the Senate floor. A $900 billion stimulus package was negotiated in December of 2020 but the RESTAURANTS Act wasn’t included in it.

It has been more than long enough—it’s beyond time for action.

Where are We Now?

Throughout all of this, from inception to current status, the Independent Restaurant Coalition (IRC) has never faltered in their campaign to ensure this industry receives the targeted relief it so desperately needs.

It’s wise given how the number of times we’ve been let down by our elected officials to be guarded and cautiously optimistic about the RESTAURANTS Act finally being signed into law this month.

On February 5, Senators Roger Wicker (R-MS) and Kyrsten Sinema (D-AZ), and Representatives Earl Blumenauer (D-OR) and Brian Fitzpatrick (R-PA) formally (re)introduced the RESTAURANTS Act to the 117th Congress.

What’s in the Bill?

In its current form, the RESTAURANTS Act:

  • establishes a $120 billion relief fund for foodservice and drinking establishments;
  • makes groups that operate up to 20 units eligible for relief from that fund;
  • provides operators access to grants of up to $10 million for eligible expenses; and
  • makes the grants retroactive to February 15, 2020 and ends them eight months after the legislation is signed into law.

New provisions in the February 2021 RESTAURANTS Act include:

  • updates to the award calculation based on annual loss from calendar year 2020 instead of quarterly;
  • grant eligibility for new restaurants that opened after January 1, 2020;
  • paid sick leave as an eligible expense for employees, with a bonus amount to cover the cost of voluntarily providing ten days of sick leave to employees;
  • providing the Department of the Treasury the discretion to help reduce waste, fraud, and abuse;
  • imposing reporting obligations on the Department of the Treasury to share who gets loans and demographic information about recipients; and
  • ensuring that restaurants can use both the Employee Retention Tax Credit and the RESTAURANTS Act grant program, provided they are not used for the same expenses.

What’s Next?

We must all act to give the RESTAURANTS Act the best chance of becoming law. We have been patient for long enough.

We must let our representatives know we expect them to pledge their support for this bill formally.

The IRC provides several methods for ensuring our representatives understand they need to co-sponsor and pass the RESTAURANTS Act:

  1. Email your representatives and ask them for their co-sponsorship.
  2. Call your representatives directly and tell them why restaurants and bars need the RESTAURANTS Act to be voted on, passed, and signed into law. This is the number to dial: (202) 224-3121. The IRC has provided talking points here.
  3. Share the graphic below on your social channels and encourage your followers to also contact their representatives and ask them to co-sponsor the RESTAURANTS Act. Use the following caption when posting: It’s official: the RESTAURANTS Act of 2021 is on the menu in both chambers of Congress. Call your representatives today and tell them that independent restaurants, bars, and workers can’t wait any longer for direct relief: 202-224-3121 #SaveRestaurants

All of that will take less than 20 minutes. That’s not a lot of time to help finally get this industry the support and relief it needs.

The RESTAURANTS Act is needed to prevent more permanent restaurant and bar closures, and to revitalize the industry. The road to recovery is a long one and getting this bill signed into law is a major step forward.

Please email and call your representatives. Please share the post and caption above on your social media. Please help save the restaurants, bars, and millions of people they employ.

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by David Klemt David Klemt No Comments

2021 Technomic Outlook: United States

2021 Technomic Outlook: United States

by David Klemt

Technomic has been providing the foodservice industry with valuable insights on a global level for 50 years.

The research and consulting firm has been one of my go-to information sources for at least a decade.

A few weeks ago, I reviewed American food delivery trends from multiple sources. This week, I’m taking a look at Technomic’s foodservice predictions for the US.

Unprecedented and Unpredictable

Before we proceed, keep this in mind: predictions are best guesses. Technomic’s approach is scientific and data-driven but it’s important to approach any prediction with caution.

As the firm itself points out in their 2021 foodservice report, the global pandemic has plunged the industry deep into unprecedented territory.

It seems the only thing predictable about Covid-19 in relation to restaurants, bars and other hospitality businesses is that this industry will continue to bear the brunt of closures and restrictions.

That said, I trust Technomic to lead the industry through unprecedented and unpredictable moments in time.

7 Key Trends

Technomic has made seven predictions for foodservice in the US.

  1. Streamlined menus. Technomic expects the trend toward reducing SKUs to continue. However, that may lead to innovative and healthy items replaced removed items. Leafy greens, environmentally-friendly, and health-conscience items such as immune boosters are expected to be menued.
  2. Tech is the future. This prediction can be summed up quickly: If it’s a tech-based, can improve operations and help a brand differentiate itself from others, the industry is going to implement it.
  3. Top three cuisines. Chinese, Italian and Mexican food and drink are expected by Technomic to perform the best in 2021, particularly if operators move beyond the classics and incorporate lesser-known ingredients. However, Technomic expects more interest in West African and Caribbean cuisine.
  4. Social justice. Operators will have to be transparent about their stances on social justice issues and make meaningful statements—hashtags won’t cut it with younger consumers.
  5. Umami will reign supreme. Technomic uses the phrase “new-mami” to describe “intense, mouthwatering fare.” Think fruit vinegars beyond apple, candy cap mushrooms, seafood meatballs, and so much more.
  6. Communal concepts must adapt. Food halls, eatertainment concepts, and venues with communal seating will have to reimagine their spaces and how guests use them during an era characterized by social distancing, constant sanitizing, and off-premise business models. Traditional guest experiences may return but there’s no telling when that will happen.
  7. Revenue recovery. Technomic expects the industry to start recovering in 2021. However, sales levels are unlikely to reach those of 2019.

Bring it all Together

Chasing trends can be a fool’s errand. Not every prediction made by Technomic will work for every restaurant or bar in Canada.

Just like Technomic collects and analyzes industry data, operators must review their guest, sales and operations data to make informed decisions. This is another reason it’s crucial to own the guest journey in its entirety.

Click here to view Technomic’s “2021 U.S. Trend Outlook” webinar.

Image: Justin Cron on Unsplash

by David Klemt David Klemt No Comments

2021 Technomic Outlook: Canada

2021 Technomic Outlook: Canada

by David Klemt

Technomic has been providing the foodservice industry with valuable insights on a global level for five decades.

The research and consulting firm has been one of my go-to information sources for at least ten years.

A few weeks ago, I reviewed Canadian food delivery trends from multiple sources. This week, I’m taking a look at Technomic’s foodservice predictions for Canada.

Unprecedented and Unpredictable

First things first: predictions are best guesses. Technomic’s approach is scientific and data-driven but it’s important to approach any prediction with caution.

As the firm itself points out in their 2021 foodservice report, the global pandemic has thrown the industry into unprecedented territory.

It seems the only predictable element related to Covid-19 is that restaurants, bars and other hospitality businesses will bear the brunt of closures and restrictions.

That said, I trust Technomic to lead the industry through unpredictable, unprecedented moments in time.

5 Key Trends

Technomic has made five predictions for foodservice in Canada.

  1. 2021 will represent the start of financial recovery for foodservice. Technomic predicts moderate sales growth this year, below levels of 2019. However, limited-service restaurants are expected to perform better than their counterparts and return to 2019 revenue levels. Not surprisingly, Technomic expects full-service restaurants to be the most challenged.
  2. Operators will make their stances on social issues known. Multiple sources say today’s consumers want transparency from the brands they support. They want to know what company’s believe about climate change, food insecurity, social inequalities, diversity and hiring practices, fair pay for employees, and other issues. Technomic expects more operators to “double down” on transparency.
  3. On-premise operations will invest in off-premise business models. Again, multiple sources have reported that significant percentages of consumers are uncertain or uncomfortable about returning to restaurants and bars for in-person dining and drinking. Technomic expects operators to invest in smaller dining rooms so they can offer more limited-contact and contactless options to guests: walk-up ordering windows, multiple drive-thru lanes, designated curbside pickup locations, and in-store pickup and grab-and-go stations. The firm also expects more operators to embrace first-party/direct delivery, along with technologies like mobile ordering and geofencing.
  4. Comfort, quirkiness and indulgence. Technomic expects comfort foods to continue to perform well and encourages operators to get creative—even quirky—with this category. They caution that health will still be a focus of many guests and suggest that some operators will “disguise better-for-you meals as indulgent.”
  5. Our home and native land. Hyperlocality will play a crucial role in driving traffic given the travel restrictions imposed throughout Canada. Operators will likely forge relationships with local farms to attract local visitors to their venues. Technomic expects to see grassroots movements promoting support for small regional chains and local independent operations to gain traction.

Bring it all Together

Chasing trends can be a fool’s errand. Not every prediction made by Technomic will work for every restaurant or bar in Canada.

Just like Technomic collects and analyzes industry data, operators must review their guest, sales and operations data to make informed decisions. This is another reason it’s crucial to own the guest journey in its entirety.

Click here to view Technomic’s “2021 Canadian Trends Outlook” webinar.

Image: Hermes Rivera on Unsplash

by David Klemt David Klemt No Comments

E-Commerce Alters Drinking Occasion

E-Commerce Alters Drinking Occasion

by David Klemt

According to estimates, beverage alcohol e-commerce grew by 40 percent in 2020.

Per data from the IWSR, ten “core countries” are driving that growth: Australia, Brazil, China, France, Germany, Italy, Japan, Spain, United Kingdom, and the United States. China, the reigning campion of beverage alcohol e-commerce, is expected to be toppled by the US by the end of this year.

Of particular note: growth in the above markets more than doubled from 2019, when online alcohol retail grew by 11 percent.

What this Means for Brick-and-Mortar Operations

We all know what drove the growth in online alcohol sales.

In their quest to find comfort in the midst of the global 2020 pandemic, they became comfortable with purchasing alcohol online as a long-term behavior. Alcohol brands were forced to pivot to online sales channels due to restaurants, bars, lounges, nightclubs and other brick-and-mortar F&B operations facing constantly shifting restrictions and closures. (See also: Los Angeles County restaurant restrictions.)

To compete, operators must continue to do what they’ve had to even before a pandemic absolutely ravaged the hospitality industry and millions of people’s livelihoods: adapt.

For at least several more months, drinking at home will be its own occasion, for obvious reasons. The IWSR expects brands to invest more into online alcohol retail. If that proves to be the case, operators can expect–as a worst-case scenario–fewer dollars spent on their brick-and-mortar operations.

Getting creative with alcohol delivery, takeout and pickup is crucial to give operators the best chance to be included in the at-home drinking occasion.

The Trends to Watch

In terms of delivery trends, you can click here for food trends so you can consider complimentary beverages. Click here for 2021 drink trends, which certainly include alcohol-free beer.

Athletic Brewing Co. alcohol-free craft beers.

Athletic Brewing Co. alcohol-free craft beers. Image: Athletic Brewing Co.

Speaking of delivery, the growth in alcohol e-commerce makes owning the guest journey by offering direct delivery even more important.

The IWSR has identified their own set of trends tied to the growth of alcohol e-commerce:

  1. As touched on above, at-home drinking becoming its own occasion outright.
  2. Premiumization will change. Some consumers will experiment less and focus on their favorite brands, and others will turn to brick-and-mortar channels for premium experiences.
  3. Politics will play a noticeable role on beverage alcohol, not just in the US but across the globe. Tariffs could change and strict e-commerce regulations could loosen.
  4. RTDs will remain strong or get stronger. Per the IWSR, “innovation in alcohol bases, exploration of new and increasingly local flavors, and premium product offerings” will ensure RTDs remain a crucial beverage category in 2021.
  5. Low- and zero-alcohol drink options will continue their evolution. Once stigmatized, these drinks exploded in popularity in 2020. For 2021, the IWSR expects them to become aspirational.

Last year changed the industry. Comfort, convenience, and a heightened awareness of health and wellness are altering how people consume and engage with brands, restaurants and bars. Operators, already facing challenges from all sides, must take the time to develop strategies to compete for e-commerce dollars.

Image: mentatdgt from Pexels

KRG Hospitality Mindset Coaching
by David Klemt David Klemt No Comments

Introducing KRG Mindset Coaching

Introducing KRG Mindset Coaching

by David Klemt

KRG Hospitality Mindset Coaching

Seeking an alternative to complete start-up planning and project management? The solution you’re looking for is KRG Mindset Coaching.

Just like every operator is unique, each project brings with it distinct challenges that require individual approaches and plans.

Some projects are already under way but need help moving forward. KRG Mindset gives these projects the help needed to cross the finish line and achieve long-term success.

What is Mindset Coaching?

Owning a hospitality business may look great on paper, but starting a hospitality business can be really quite stressful:

  • There are what seem to be endless hours of planning.
  • There are numerous third-parties involved.
  • There are often hundreds of thousands of dollars at stake.
  • There are over 500 unique tasks to complete.

It doesn’t matter if this is your first, fifth, or twentieth project—it’s crucial that you be both prepared and organized when opening a new concept or expanding operations.

However, not every project requires our full suite of targeted solutions, which includes feasibility studies, conceptual planning, business planning, brand development, guest experience strategies, food & beverage programs, and operational assessments.

If you’re beyond the idea stage but find your project is struggling to reach the finish line, we’re here to help. And just like a project in its earliest days, you’ll receive the unique, fully customized KRG treatment.

Is Mindset the Solution for You?

KRG Mindset provides a unique, coaching-style program that helps your start-up make continual forward progress:

  • Receive a dedicated consultant who will be an approachable advisor for you and your project. They’ll review and navigate your start-up questions and challenges, and be your compass to provide you with a clear path towards a successful opening.
  • Weekly 1-on-1 video/phone sessions with access to a private calendar: a weekly session in which we evaluate the past week and define required actions for the next week with a focus on budgets, timelines, and industry-specific consulting.
  • Your dedicated consultant is also available for second opinions and the review of: key documents, location, concept, branding, layouts, equipment, menu, service, technology, labor and financial optimization, system development, operations, marketing, and overall strategic clarity.
  • Your consultant will help you see the blind spots throughout your project, positioning you to maintain your budget and desired opening date.
  • Your consultant will help you make strong, educated decisions throughout your start-up project that will have a positive impact on the successful start of your restaurant, bar or hospitality brand.
  • And finally, your advisor will coach you so you become more confident, energized, and motivated about your opening while holding you accountable and helping you become a better leader through the creation of new habits, communication methods, and decision-making processes.

Click here to schedule a call.

Or, if you’re looking for a more hands-on approach where we develop the winning plans and property for and with you, we invite you to learn more by choosing your preferred option: Restaurants & Cafes, Bars & Lounges, Boutique Hotel & Resorts, or Golf, Gaming & Entertainment.

Images: KRG Hospitality

by David Klemt David Klemt No Comments

What You Need to Know About SBA Form 3508S

What You Need to Know About SBA Form 3508S

by David Klemt

Midway through last month, the Small Business Administration maneuvered to make the PPP loan forgiveness process simpler for loans up to $150,000.

In December of 2020, Congress passed a Covid-19 relief bill that pumped $284 billion into the Paycheck Protection Program.

Twelve billion dollars were made available to minority-owned and “very small” businesses, and $15 billion were made available to independent movie theaters, live music venues, and cultural institutions.

What is SBA Form 3508S?

Simply put, 3508S is a simplified, one-page PPP loan forgiveness form.

When Congress passed December’s relief bill, they included a requirement for the SBA to offer streamlined loan forgiveness forms.

To that end, 3508S is for businesses that received loans of $150K or less. Again, it’s a single page. As you’ll see when you check out SBA Form 3508S, the form comes with instructions.

What information do you need to provide?

With Form 3508S, you’re not even filling out an entire page. And the first roughly third is simple. Assuming you’re the person filling out, certifying and signing the form:

  • Business legal name (“Borrower”)
  • If applicable, the DBA or Tradename
  • Business address
  • North American Industry Classification System (NAICS) code (Accommodation and Food Services is 72; Arts, Entertainment and Recreation is 71, for reference)
  • Business Taxpayer Identification Number (TIN), Employer Identification Number (EIN), or Social Security Number (SSN)
  • Primary contact
  • Email address

After filling out that section and ticking the box for first-draw PPP loans or second draw, you’ll need the following info:

  • SBA PPP loan number
  • Lender PPP loan number
  • PPP loan amount
  • PPP loan disbursement date
  • The number of employees at the time of the loan application
  • Number of employees at time of loan forgiveness application
  • Covered period of PPP loan. Per the form instructions, “The Covered Period begins on the date the loan was originally disbursed. It ends on a date selected by the
    Borrower that is at least 8 weeks following the date of loan disbursement and not more than 24 weeks after the date of loan disbursement.”
  • Total amount of loan spent on payroll costs
  • Requested amount of loan forgiveness

From there, you initial two boxes–if you can do so accurately and honestly–next to certification statements. Then you sign, print and the date form and include your title.

There’s an optional demographic information section at the top of page two of Form 3508S.

SBA Form 3508A. Sample only.

What additional documentation must you provide?

None, which is what makes this form so simple. In fact, you’re not even required to show any of your calculations corresponding form sections. However, we strongly suggest you run those calculations as you’ll need to certify that you did so and you’ll need them if the SBA audits the loan.

And while you don’t have to submit additional documents, it’s likewise required and smart that you retain required documentation for a number of years. The SBA may ask for certain documents when your application comes up for review, so you’ll want to know where they are to make the process as smooth as possible.

What’s the loan forgiveness deadline?

There’s no specific date in terms of an SBA PPP loan deadline. However, the SBA’s PPP loan forgiveness FAQ states the following:

  • “Borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from loan origination.”
  • “[I]f a borrower does not apply for loan forgiveness within 10 months after the last day of the borrower’s loan forgiveness covered period, loan payments are no longer deferred and the borrower must begin making payments on the loan.

You may notice that Form 3508S has an expiration date of July 31, 2021 in the upper right-hand corner. This simply indicates the SBA’s compliance with the Paperwork
Reduction Act.

There are other SBA PPP loan forgiveness applications as well. SBA Form 3508-EZ is for borrowers who meet specific conditions, and Form 3508D is for borrowers to disclose controlling interests in the business by other companies, along with government officials involved in the business.

If none of those forms are right for you, you’ll have to fill out the standard, five-page Form 3508.

Image: Cytonn Photography from Pexels

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