Restaurant | KRG Hospitality

March 1, 2021by David Klemt David Klemt No Comments

Restaurant Revitalization Fund Passes

Restaurant Revitalization Fund Passes

by David Klemt

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

February 24, 2021by krghospitality krghospitality No Comments

Bacardi Predicts How We’ll Drink in 2021

Bacardi Predicts How We’ll Drink in 2021

by David Klemt

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

February 23, 2021by David Klemt David Klemt No Comments

Datassential Finds Operators Optimistic

Datassential Finds Operators Optimistic

by David Klemt

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

February 22, 2021by 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?

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

February 19, 2021by krghospitality krghospitality No Comments

I Tried the Mask Made for & by Hospitality

I Tried the Mask Made for & by Hospitality

by David Klemt

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.

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.

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:

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 [email protected] 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.

February 18, 2021by David Klemt David Klemt No Comments

Uncorked: 2021 Wine Trends to Watch

Uncorked: 2021 Wine Trends to Watch

by David Klemt

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

February 17, 2021by 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.

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

February 15, 2021by 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

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

February 12, 2021by 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:

Email your representatives and ask them for their co-sponsorship.
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.
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.

Image:

February 11, 2021by 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.

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.
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.
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.
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.
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.
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.
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

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