Restaurant

by David Klemt David Klemt No Comments

Rise of the ‘Not’ Delivery Platforms

Rise of the ‘Not’ Delivery Platforms

by David Klemt

The big third-party delivery services are facing pushback in the form of community-based competition.

We’ve kept our eye on this burgeoning trend and the push for operators to implement first-party delivery, also known as direct delivery.

It isn’t directly related to hospitality but the first of the “not” sites that grabbed our attention was Not Amazon. As the name suggests, Not Amazon is…well…not Amazon.

The founder highlights businesses owned and operated by women and BIPOC and LGBTQA+ people. However, Not Amazon goes even further, as illustrated in their mission statement:

“Providing the most we can, while taking as little as possible, in order to build a new kind of community.”

Community and neighborhood support is at the core of Not Amazon. The digital era has been marked by local, mom-and-pop brick-and-mortar businesses suffering in the wake of online shopping. Convenience has outweighed community. More often than not, women-, BIPOC- and LGBTQA+-owned businesses have been disproportionately affected by “convenience.”

Of course, it makes sense with a global pandemic to shop online. Not Amazon, which currently serves Calgary, Halifax, Toronto and Vancouver, provides a viable alternative to its behemoth of an online retail counterpart.

That brings us to two compelling hospitality industry-specific platforms.

It’s not a secret that KRG Hospitality supports first-party and last-mile delivery. In fact, we’ve very clearly explained that operators lose guest data and control over the guest journey when they sign with a third-party delivery company.

That’s to say nothing of the fees third-party services charge their F&B “partners.” Is it convenient that DoorDash, UberEats, Postmates and other companies provide a semblance of infrastructure, the lure of reaching a larger pool of customers, and drivers (including the associated liability)? Sure.

But are the costs associated with doing business with a third-party delivery company worth it? Most likely not.

Studies have also shown that when a delivery goes wrong on the third-party’s end–cold food, for instance–it’s the restaurant that tends to get the blame.

There are two websites that, like Not Amazon, have popped up to put supporting local restaurants front and center: Not UberEats and NotGrubhub.

The former serves Toronto and operates as a non-profit, according to their FAQ page. The latter is mainly focused on the United States, offers the option to purchase gift cards, and is powered by Lunchbox. NotGubhub also boasts more than 100,000 direct ordering links.

Both operate in similar fashion: Restaurants submit their information to be added to the respective platforms, provide an ordering link, and obtain a listing. From there, people can search by location for restaurants in their area to place a delivery order.

In the case of NotUberEats, deliveries are fulfilled by Ritual or DoorDash. As noted on their FAQ page, Ritual is offering Toronto restaurants free delivery through 2021. Restaurants can also DoorDash because, as NotUberEats explains in their FAQs, the service is charging a flat rate and not collecting any commissions.

People can also send restaurant information to NotUberEats to help grow their listings. Anyone who wishes to do so is asked to provide at least 50 businesses in their city and submit them here.

Operators ready to make the move to first-party/direct delivery and own their guest journey should consider the following platforms:

With delivery here to stay, the sooner operators transition to direct delivery, the better. There’s no longer a reason to lose control of guests, a profitable operational element, or costs.

Image: Nathan Dumlao on Unsplash

by David Klemt David Klemt No Comments

California’s Restrictive Regional Stay-at-Home Order Rescinded

California’s Restrictive Regional Stay-at-Home Order Rescinded

by David Klemt

Expectation became reality yesterday when Governor Gavin Newsom rescinded California’s highly restrictive regional stay-at-home order.

It had been reported for at least a day prior that Gov. Newsom was expected to do so on January 25.

The order, which choked the life out of restaurants, bars and other businesses, has been in place since the start of December 2020.

As we reported several weeks ago, a group of Orange County operators pushed back against the order shortly after it was imposed. The #OPENSAFE collective released a statement announcing their intention to protest Gov. Newsom’s stay-at-home order by remaining open for in-person dining.

Other states that imposed seemingly arbitrary and illogical orders that crushed restaurants and bars also experienced open defiance from operators. One of the highest-profile protests came from New York City restaurants.

Speaking for the first time in well over a week about California’s efforts to combat Covid-19, Gov. Newsom said, “Everything that should be up is up, everything that should be down is down.”

That’s an interesting claim given California experienced a record number of Covid-19-related deaths on January 21 with 761. During his press conference, the embattled governor claimed he lifted his stay-at-home order due to ICU numbers and not because of the multiple lawsuits filed against him or the current recall campaign.

Rather, Gov. Newsom said that he made his decision based on Covid-19 cases and hospitalizations decreasing while vaccination rates are reportedly trending upward. However, as one source cited, just 26 percent of California’s allotted vaccine doses had been administered as of last week.

The rescinding of the regional stay-at-home order doesn’t mean that businesses can reopen and resume operations as usual. Each of the state’s counties will be color-coded according to California’s “Blueprint for a Safer Economy.” Projections will be set aside for actual transmission rate data.

Tier 4 is color-coded yellow and its Covid-19 transmission risk is labeled “Minimal.” Tier 3 is orange and “Moderate,” where as Tier 2 is red and “Substantial.” Tier 1, which is purple, is labeled “Widespread.”

At the moment, most counties in California are purple.

Restaurants located in a Tier 1 county can offer only outdoor in-person dining. Those in Tier 2 can offer indoor dining but only at 25-percent capacity or 100-person maximum capacity (whichever is lower). Tier 3 bumps capacity to 50 percent or 200 people, and Tier 4 dictates a maximum of 50 percent capacity.

As expected, bars (along with breweries distilleries) that don’t serve food receive much harsher treatment than restaurants. Those located in a county designated purple or red must close. Bars in orange counties can open for outdoor service only, and those in yellow counties can offer indoor service at 50-percent maximum capacity. Bars “where [a] meal is provided” follow restaurant guidelines for the four applicable tiers.

Movie theaters, for context concerning how bars are being treated, are subject to the same guidance as restaurants in California’s blueprint. Such venues aren’t exactly known for providing meals.

Before operators who have chosen to work within California’s guidelines throw their doors open, they need to know two things. One, county officials are permitted to impose their own restrictions. If they choose to do so, those restrictions can be stricter than those that come down from state officials.

Two, for those operators in Los Angeles County, confusion remains regarding outdoor dining. Some interpret the rescinding of the state’s prohibition on outdoor dining as a lifting the ban. However, LA County implemented its own ban before the state did so. That county-issued ban expired on December 16 but outdoor dining was banned under the statewide stay-at-home order.

It may seem cut and dry that the expiration of the county order and the lifting of the state’s ban shifts LA County to Tier 1 restrictions. Operators should make sure they’re clear to resume outdoor service before incurring the costs associated with doing so.

How long California will revert back to the state’s Blueprint for a Safer Economy is anyone’s guess. Operators in several states have found themselves caught in a vicious open-close, open-close vortex. At any rate, 25-percent capacity restrictions will still more than likely make it more cost-effective for some operations to remain closed for indoor service.

Image: Paul Hanaoka on Unsplash

by David Klemt David Klemt No Comments

Las Vegas Vegan Culinary School Slated for April Opening

Las Vegas Vegan Culinary School Slated for April Opening

by David Klemt

This has been a big year for veganism already.

Multiple sources have named vegan food as a hot (and therefore lucrative) “trend” to watch this year.

The Michelin Guide France awarded a star to an entirely vegan restaurant in France for the first time in history.

And now, news out of Las Vegas is further making this Veganuary one for the books.

Global destination that it is, Las Vegas does its best to appeal to the greatest number of people possible. There are close to two dozen restaurants considered wholly vegan, and hundreds of other venues have vegan-friendly options. For several years now, every restaurant at Wynn Las Vegas has had vegan options on their menus.

The fact that Las Vegas is picking up steam as a vegan-friendly hotspot can be attributed to a few factors.

One, destination cities are about delivering on top-notch experiences. Vegas is no exception—amazing experiences keep people coming back. Two, if it’s trending, it’s very likely available somewhere in Vegas. The more popular it becomes, the more widely available it is throughout the city. And three, Las Vegas operators aren’t in the habit of letting a lucrative opportunity slide by them. People are willing to pay money for vegan food? Then vegan food they shall have!

Vegas Vegan Culinary School & Eatery is slated to open in April 2021. Located in the Arts District of Downtown Las Vegas, the venue will operate as a vegan deli, coffee shop, weekly meal delivery service, space for events and fundraisers, and brick-and-mortar and online culinary school.

According to Vegas Vegan’s Instagram page, demo at their location began around the middle of this month. A post from two days ago shows buildout progress.

This type of project moving from concept to buildout is a big deal for the city, culinary students, vegans, and those curious about the vegan diet. It’s also a big development for vegan food in general.

It’s certainly too early to declare 2021 food trend predictions accurate, of course. However, the opening of a dedicated vegan culinary school and restaurant certainly hints at vegan food ramping up in popularity this year. The same can be said for vegetarian and plant-based diets as well.

Moving forward, it’s going to be important and profitable for operators to have at least a few vegan-friendly F&B menu options. To fail to do so is to alienate vegans, and in this industry alienation equals lost revenue, something no operator can afford.

For those uncertain about what food items to add to their main, delivery and takeout menus, Grubhub listed the below as their top five vegan orders of 2020:

  1. Tofu spring rolls (263 percent more popular in 2020 than 2019)
  2. Plant based burger (251 percent more popular in 2020 than 2019)
  3. Black bean taco (242 percent more popular in 2020 than 2019)
  4. Vegan chocolate cake (211 percent more popular in 2020 than 2019)
  5. Vegan ramen (183 percent more popular in 2020 than 2019)

Succeeding with vegan or other diet-specific items comes down to thoughtful consideration of what will be authentic to a particular restaurant or bar. Just slapping anything vegan on the menu is simply not good enough.

Image: Free To Use Sounds on Unsplash

by David Klemt David Klemt No Comments

Recently Awarded Michelin Star Shines Spotlight on Vegan Menus and Operations

Recently Awarded Michelin Star Shines Spotlight on Vegan Menus and Operations

by David Klemt

If there was any question that vegan restaurant concepts are viable, a recently awarded Michelin star has provided a firm and affirmative answer.

Michelin Guide France awarded ONA (Origine Non Animale or “Non-Animal Origin” in English) a Michelin star earlier this week. This marks the first time in the award’s history that a restaurant in France that uses no animal products received a star.

Chef and owner Claire Vallée opened ONA in the city of Arès in the southwest of France in 2016 leveraging a combination of crowdfunding a loan from La Nef, an ethical bank. It has been reported that volunteers helped to finish the project when funds ran out before construction had been completed.

The vegan diet has endured mockery for decades in the United States and Canada. It’s only in recent years that veganism has flourished, bolstered by a belief that the diet is healthier, more sustainable, and more ethical. Growing interest in plant-based diets have also no doubt boosted veganism.

In France, however, the vegan diet hasn’t been embraced as widely as it has throughout North America. Sifting through online searches, travel blogs and posts shows that, generally speaking, vegan options aren’t widely available throughout France’s rich and storied restaurant scene.

For ONA to win a Michelin star shows that attitudes toward the vegan diet in one of the gastronomy and culinary capitals of the world is undergoing a possibly seismic shift.

A number of chefs have returned their Michelin stars or requested their restaurants not be considered for the accolade. For now, however, Michelin stars still recognize outstanding food and operations.

The awarding of a star to ONA is a significant achievement for Chef Vallée and her team.

Image: Jo Sonn on Unsplash

by David Klemt David Klemt No Comments

The 2021 Restaurant Start-Up Cost Guide & Checklist is Here! Download Today

The 2021 Restaurant Start-Up Cost Guide & Checklist is Here! Download Today

by David Klemt

This guide gives anyone starting a restaurant, bar, brewpub or other F&B venue the best chance for success in 2021.

Hospitality has endured a nearly endless thrashing for almost an entire year. The calendar has ticked over to 2021 but still, the pummeling doesn’t have an end date.

However, the industry has endured and continues to do so. We don’t know when Covid-19 will cease presenting a threat but we know this: there’s no end to the fight in those in the hospitality community.

Veteran and neophyte owners and operators are still going to open new venues in 2021, pandemic be damned. That fact means it’s more crucial than ever before that owners are positioned for success.

The KRG Hospitality 2021 Restaurant Start-Up Cost Guide & Checklist aims to structure the process of opening a restaurant or bar to maximize an owner’s opportunity. The guide contains 2021 start-up costs, renovation costs, scaled costs, an in-depth milestone checklist, and more that will help readers understand the process and keep them on track to go from concept to opening doors as smoothly as possible.

Click here to download the guide and start down the path of restaurant or bar success today.

by David Klemt David Klemt No Comments

Make Your Restaurant Concept ABSURᗡ in 2021

Make Your Restaurant Concept ABSURᗡ in 2021

by David Klemt

Those seeking new restaurant opportunities in 2021 should give serious consideration to Absurd! Kitchen Co., KRG Hospitality’s unique turnkey QSR.

Development of the concept was motivated by the realization that operators need to continue to pivot to survive the pandemic and thrive in a post-pandemic world.

“At KRG Hospitality, we immediately pivoted in March 2020 into ‘rescue mode,’ understanding the immediate needs of so many independent operators,” says Doug Radkey, president of KRG Hospitality.

Moving forward into 2021, guests will be more concerned health, safety and their comfort than ever before. Absurd! was developed as a response to heightened guest expectations and to create a path forward for operators in the post-Covid-19 era. Not only is the concept forward-looking, it’s designed for turnkey operation.

Restaurant guests were growing accustomed to the convenience of frictionless ordering, pick-up and delivery. Lock downs, restrictions, and health and safety concerns have pushed delivery and pickup closer to the forefront of guest expectation. Absurd! leverages the latest in technology and utilizes a subscription element to reward loyalty while offering a convenient and safe QSR experience.

In the new era of restaurant operation we can expect guests to be less tolerant of waiting in lines. Multiple publications have published articles hypothesizing that the Covid-19 pandemic we lead to the end of waiting. Considering the importance of social distancing and how commonplace curbside pickup has become, it’s understandable that many guests have developed a preference for speedy, safe service.

Equally understandable is a guest wishing to keep interactions with other people to a minimum. The ability to peruse a menu via QR code or pay their bill using their own device has offered a level of comfort to guests during the pandemic. It’s logical to believe these guest habits are here to stay.

At Absurd! locations there are no traditional lines. By design, there’s no contact between guests and staff. Guests interact with a location via designated pick-up or drive-through areas. In the pick-up area, guests access food-safe storage units through their mobile devices to grab their orders. The drive-throughs only serve delivery drivers or those who have placed pre-orders. Convenient, safe, time-saving restaurant features for a post-pandemic world.

Absurd! cuisine is inspired by Southern flavors and dishes such as loaded chicken strips, fried waffle sticks, breakfast bowls, and sandwiches. There are options for the full range of dietary needs and preferences, such as dairy-free, gluten-free and vegan meat alternatives. Along with a competitive, high-quality menu, KRG Hospitality has developed a retail offerings that include branded dry spices and meal kits, leveraging another trend that has seen significant growth during the pandemic. The concept’s packaging is sustainable, and adding a food truck can expand an Absurd! operation’s reach.

“Approximately 85 percent of the food menu will be prepared on-site, including the seasoning mix and ‘dredge’ for the fried chicken, which is intended to also be gluten-free and dairy-free,” says Radkey. “The brand is able to accomplish this by maintaining a small but robust and strategic menu mix over the breakfast, lunch, and dinner day-parts. Other food items such as the chile cornbread, breakfast biscuits, and sandwich buns will be sourced through regional partnerships.”

While developing Absurd!, KRG has created a loyalty program to go along with it that’s relevant to today’s guest preferences and consumer habits. Loyalty programs have made the news lately, with attention being paid to how they’ve been changing for the past couple of years. Tech has emerged as a driver for such programs, combining guest data and personalized digital interactions to increase loyalty. However, creativity is a crucial element as well. Recognizing the value of a unique but easily understood loyalty program that offers an attractive value proposition, KRG’s approach for Absurd! is a beverage-based subscription service.

“With a low monthly cost of approximately $8.99 USD per month, the Absurd! beverage subscription program, which is optional, gives the brand an easy way to attract customers and convince them to change their traditional F&B ordering habits while building a strong base of loyalty (and data),” says Radkey. “Consumers today are accustomed to low-cost monthly subscriptions. Therefore, we think it is time for restaurants to tap into that opportunity. The ‘unlimited drinks’ within this program include coffee, iced tea, lemonade, and an assortment of flavored soda waters.”

Absurd! Kitchen Co. isn’t unique for the sake of being different. First and foremost, the concept was designed for experienced and new operators alike so they can thrive in the new era of hospitality. The dedication of KRG Hospitality to helping operators flourish with concepts that are scalable, sustainable, profitable, memorable and consistent is ingrained in Absurd’s DNA.

The concept is a recession- and pandemic-proof QSR that doesn’t rely heavy upon day-to-day involvement by the owners, making it ideal for operators of any level, from the neophyte to the experienced hospitality group.

Click here to learn more about Absurd! and visit www.AbsurdKitchen.com to download this turnkey concept’s information packet.

Image: KRG Hospitality

by David Klemt David Klemt No Comments

How to Address Temporary Restaurant and Bar Closures: 5 Social Media Examples

How to Address Temporary Restaurant and Bar Closures: 5 Social Media Examples

by David Klemt – 12/1/2020

Repeated restaurant and bar closures have, tragically, become a hallmark of 2020.

Operators have had to learn how to communicate closures to potential indoor guests, as well as delivery and takeout guests.

For most operators, the possibility of closing their doors—temporarily or otherwise—has moved well past “if” territory. At this point, it’s not even a question of when a restaurant or bar will have to close, it’s a matter of when it will happen again.

There are a few reasons a F&B business will have to close due to the Covid-19 outbreak: official mandate, reduced indoor and outdoor dining capacities, and voluntary temporary closures.

Mandated closures are, on the surface, straightforward. Government officials decree that certain types of businesses must close their doors by a specific date and time, and owners are expected to comply.

Closures induced by capacity restrictions are less straightforward. It has become woefully apparent that most lawmakers don’t understand (or don’t care) that at a certain threshold, reducing indoor and outdoor dining capacities is as good as forcing a restaurant or bar to close; the value proposition of remaining open simply isn’t there.

A voluntary temporary closure can come about because of capacity limitations, but they can also be the result of other factors. A significant workforce reduction, lack of traffic, rising costs of goods, or an internal Covid infection.

The stark reality is that the likelihood today’s operators are going to have to craft social media posts and emails announcing temporary (and possibly extended) closures is anything but slim.

Below are four examples of effective closure announcements that bars across America have posted to Instagram recently.

Machine, an upscale cocktail bar and restaurant in Chicago, made the difficult decision to close their doors to in-person dining guests throughout the remainder of 2020. The post addressed the reason for the decision but made it clear that Machine would continue to operate for delivery and curbside pickup orders placed online. Community health and safety was held up as a priority, and though the news was disappointing and no doubt difficult to break, Machine’s post was positive.

Award-winning Chicago cocktail bar Lazy Bird, located in the basement of the Hoxton hotel, was forced to close due to indoor dining restrictions. The post image was short and to the point, with the caption explaining in detail why the bar was closing temporarily. Lazy Bird is part of the Boka Restaurant Group and their post included a call to action for people to support venues within the portfolio that would still be able to offer outdoor dining, delivery and takeout.

Three days ago, award-winning restaurant Compère Lapin announced a temporary closure due to a team member being exposed to Covid-19. Like the Machine post, Compère Lapin’s message explained their decision was based on safety. Similar to Lazy Bird, the restaurant urged guests to visit James Beard Award winner Chef Nina Compton’s other restaurant, Bywater American Bistro (BABs).

In Woburn, Massachusetts, just ten miles northwest of Boston, the Baldwin Bar alerted guests to their temporary closure because a staff member tested positive for Covid-19. The message, like that of Machine’s, was transparent, straightforward, reassuring, and positive overall. Not only did the Baldwin Bar share that the venue was undergoing a deep clean, they named the company tasked with providing the service.

The Baldwin Bar, thankfully, got to post the following message a little more than a day after posting their closure announcement:

Operators who find themselves in the terrible and frightening position of having to announce a temporary closure would do well to follow the examples above. While hope isn’t a viable business strategy, a hopeful tone can help garner support from the community.

Equally important are an emphasis on health, safety and cleanliness so guests feel comfortable placing orders for delivery and takeout, and returning when the doors open once again. As difficult as it may be when faced with closure, focusing on the well-being of the guests can help ensure there are guests lined up upon reopening.

Image: Photo by Kelly Sikkema on Unsplash

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