Sports news | KRG Hospitality

September 27, 2023by David Klemt David Klemt No Comments

Canadians Preparing for NHL Opening Week

Canadians Preparing for NHL Opening Week

by David Klemt

Now nobody can accuse me of showing any NHL teams favoritism. Go Knights Go!

As one should expect, Canadian hockey fans are preparing for the 2023-2024 NHL season opener, and those preparations include on-premise visits.

On Tuesday, October 10, three teams will face off to start the regular season.

First, the Nashville Predators take on the Tampa Bay Lightning. Then, the Chicago Blackhawks will face the Pittsburgh Penguins.

Finally, after raising their brand-new, first-ever Stanley Cup championship banner, which they won just six seasons after their founding, the fastest an expansion team has accomplished this feat, the Vegas Golden Knights will welcome the Seattle Kraken to T-Mobile Arena in Las Vegas.

According to on-premise data from CGA by NIQ, Canadian hockey fans are planning to celebrate the start of the season at bars and restaurants. That means operators have less than two weeks to finalize plans to attract these guests to their venues.

In particular, operators in four provinces need to ensure their NHL opening week plans and promotions are good to go. Per CGA’s data, consumers in Québec are showing the greatest interest in watching this season’s opening games in bars and restaurants. Following and driving on-premise interest are British Columbia, Ontario, and Alberta.

Of course, operators throughout the provinces who serve sports fans should be ready to welcome hockey fans.

For our Canadian readers, the Montréal Candiens will take on Toronto Maple Leafs on Wednesday, October 11. On that same day, the Ottawa Senators face the Carolina Hurricanes; the Edmonton Oilers face off against the Vancouver Canucks; and the Winnipeg Jets will battle the Calgary Flames.

Click here for the full opening week schedule.

Why Does this Matter?

I may catch some flack for this but technically, any bar with televisions events can be a sports bar.

Yes, I understand that’s a very simplistic view. And yes, of course that comes with the caveat that sports should be authentic to a given concept. Also, showing sports should take into account the expectations of bar or restaurant’s guests.

In other words, most bars and restaurants can benefit from sports but they’d likely be a hindrance to some high-end cocktail bars and fine-dining concepts.

With that out of the way, operators who want to establish themselves as the go-to spot for sporting events need to nail opening week. That means having all of their ducks in a row.

Do they have the proper business TV packages in place? Will promotions and programming appeal to the target audience? Are the screens and audio system high quality for the best viewing experience? Does the menu offer sports fans what they want for great value? Is the team pulling out all the spots to make viewing fun?

Regarding the menu, CGA by NIQ has a couple of valuable insights. First, beer is the top beverage alcohol category among those planning to celebrate NHL opening week on-premise. Second, among those who plan to consume spirits, tequila is the top pick. Sounds like offering beer and tequila shot pairings could perform well.

However, operators should certainly take into account their own data. What F&B items are selling the best? Which items performed the best this same time last year?

Between 15 and 16 million Canadians follow hockey. That’s a vast pool of potential customers to convert to loyal guests. The importance of becoming their sports home base, their third spot, cannot be overstated.

This coming opening week, lay the groundwork to become the go-to place for hockey fans, fantasy sports competitors, and sports bettors.

Image: cottonbro studio via Pexels

May 17, 2023by David Klemt David Klemt No Comments

Leverage These 3 Sports for Growth

Leverage These 3 Sports for Growth

by David Klemt

Sports receive more than three million mentions daily on social media and in online communities, and three sports are driving conversations.

Media-monitoring and SaaS platform Meltwater‘s recent report shows growth in media mentions and community engagement. The report, “2023 Industry Snapshot: Sports,” also identifies three sports that are growing globally.

Most restaurant and bar concepts, at least throughout North America, can benefit from sports. They have televisions, at least decent audio, and the proper licenses to air sports and other programs.

At the risk of oversimplifying, that means that any bar or restaurant can be a sports bar. Before anyone begins furiously hammering out an email to send me, I’m not saying any bar or restaurant can automatically become a great sports bar because they have TVs. I’m simply saying that operators who want to leverage sports and specific sporting events are at a good starting point to do so.

With that caveat out of the way, let’s check out what Meltwater has uncovered regarding sports.

Sports Conversations

According to Meltwater, sports is a hot topic every day of the year. On average, there are 3.16 millions mentions of sports each day.

And that’s just on a “normal” day. Last year, that number jumped to well over 12 million mentions during the FIFA World Cup.

Meltwater identifies 2022 as a particularly strong year in terms of growth for sports conversations. That boost is expected to carry into 2023, providing savvy operators with opportunities to leverage sports.

Per Meltwater, sports social media handles, hashtags, and keywords have grown by more than 20 percent. That’s significant growth.

Now, let’s look at the sports driving much of that growth.

Football

When I say “football” in this context, I mean the sport some people call “soccer.” So, not American football, which Dave Grohl and Crown Royal pointed out is a Canadian invention during Super Bowl LVII.

For the past few decades (at least), much has been made of Americans maligning football (soccer). Well, all the tropes of that mockery may be wearing very thin.

Last year, mentions of football keywords were up 56 percent—in the US. The second-place country was Nigeria with an increase of 33 percent.

Globally, the sport’s online conversations went up by 32 percent. The day of the FIFA World Cup final? That number exploded to 630 percent. Could be smart for operators to begin planning their World Cup promotions soon.

Baseball

There are some interesting stats surrounding baseball and online conversations.

Last year, conversations of this sport grew by just three percent. And for a country that claims the sport as their national pastime, American baseball convos saw a notable dropoff: a decrease of 11 percent.

However, baseball grew by nine percent in Canada in 2022. Japan saw an increase of 36 percent, and Venezuela was up 22 percent.

Unsurprisingly, the sport’s two largest organizations dominate baseball conversations.

Leading the charge, Major League Baseball mentions grew by 16 percent in 2022 globally, and by 54 percent in Japan. Right on MLB’s heels, Nippon Professional Baseball 23 percent globally and 28 percent in the US.

For those who are curious, three teams stood out in the baseball conversation: the Los Angeles Dodgers (+59 percent), New York Yankees (+55 percent), and NY Mets (+46 percent). However, LA Angels pitcher Shohei Ohtani saw truly incredible growth with an increase of 74 percent.

An important takeaway: Baseball fans in America appear quite interested in watching (or listening to) NPB. That gives operators another organization—and all their scheduled games—to leverage.

Formula 1

Ah, my favorite sport. I’m happy (for the most part) to see this motorsport growing around the world. In fact, Formula 1 keyword mentions grew 13 percent globally, and #F1 was among the hashtags used most in 2022.

On July 3, 2022, Ferrari driver Carlos Sainz, Jr. (driver #55) won the British Grand Prix at Silverstone. Red Bull’s Sergio Perez (#11) took second and Mercedes’ Lewis Hamilton (#44) took third. And on this day the F1 conversation skyrocketed, growing by 338 percent.

The country leading the way for F1-related keyword mentions in 2022 was Japan, growing by a staggering 91 percent.

Much of the increase in interest in F1 can be traced back to Netflix and its Drive to Survive docu-series (some call it a reality-TV drama).

Looking at American interest in the sport, it helps that there are now three races on the calendar that take place in the US: the Miami Grand Prix, the US Grand Prix at Circuit of the Americas in Austin, TX, and the Las Vegas Grand Prix. That’s three opportunities (Miami has already happened) for American operators to take advantage of this sport’s growing popularity.

Last year, former Aston Martin driver Sebastian Vettel ($5), Red Bull driver Max Verstappen (current champion and #1), and Ferrari driver Charles Leclerc (#16) saw the most growth in terms of individual drivers.

I can only hope that my other favorite motorsport, MotoGP, starts to become more popular throughout North America.

Takeaways

Some operators may find that sports don’t work for their concept, such as a high-end cocktail bar or fine-dining restaurant. Those are two venue types that tend to eschew televisions as they don’t work with their vibe and aesthetic.

That said, each operator must choose how to best implement sports and related promotions. This includes understanding which sports, teams, and players their guests like. Then, of course, it’s also a matter of gauging interest.

With that determined, operators must also decide how to make sports work with their concept. Some things to consider are themed F&B menus, sports-related LTOs, FoH uniforms, and how far to go with promotions. That latter consideration will depend on how rabid a fan base each operator is targeting. A truly dedicated fan base encourages some bars to “officially” support a certain team.

Another important consideration? Will leveraging a particular sport or team alienate other guests due to rivalries or a lack of interest or comfort? Sometimes the cost of implementing promotions includes pushing away a percentage of guests on particular days.

Because I live in Las Vegas, I have an array of venues available to me around the clock. It’s conceivable that I could find a home bar or restaurant to watch F1 and MotoGP. Personally, the capability of comfortably watching my two favorite sports would boost my loyalty and visits. However, there may not be a large pool of people like me in this market. Would a bartender want to turn on an F1 race just for me?

There’s a lot to consider when choosing how to best leverage sports. The upsides include converting customers to loyal, repeat guests; a realistic idea of what to consider in terms of labor and inventory for specific days, weeks, months, and seasons; and boosts in traffic, revenue, and online engagement (which in turn can translate to more traffic and revenue).

Image: Photo by PRAT clement via Pexels

March 27, 2023by David Klemt David Klemt No Comments

Why Pickleball Should Have Your Attention

Why Pickleball Should Have Your Attention

by David Klemt

The explosive popularity of pickleball and its legions of rabid players should have the attention of restaurant, bar, and hotel operators.

In fact, the sport may just result in the next Topgolf-esque eatertainment concept.

According to an October 2022 Fortune article, pickleball is the fastest-growing sport in America for three years running. That article follows previous coverage from an array of publications that come to the same conclusion.

In Canada, the popular sport is also growing fast. It’s up against soccer, lacrosse, and cricket, but the numbers are impressive. In 2020, estimates showed 350,000 Canadian households playing pickleball. As of last year, that number was growing past 900,000.

Another sign that the sport is gaining incredible traction throughout North America? Doctors are encountering growing numbers of pickleball injuries. The Journal of Emergency Medicine says that about 19,000 people suffer pickleball injuries per year.

That may not seem like a lot when considering how many Americans play. According to the Association of Pickleball Professionals, there are 36.5 million Americans playing, from beginners to professionals.

Speaking of professional pickleball, there are professional leagues and teams. And those teams have the attention—and backing—of big-name sports celebrities. Major League Pickleball (MLP) boasts investments by Lebron James, Draymond Green, and Kevin Love. Tom Brady and Kim Clijsters are investing in an MLP expansion team.

Attention-grabbing Statistics

There’s a website—Pickleheads—that helps people locate pickleball courts. When I visit the site it shows me three casino resorts with courts immediately.

And the site just happens to have a page of useful statistics. I choose to accept that these stats are accurate.

Those who want to take a look themselves can do so by following this link. However, I’m going to share a few below:

Pickleball growth: 158.6 percent over the last three years
Top age bracket: 18 to 34 years old
Compound annual growth rate through 2028: 7.7 percent

Also per Pickleheads, the only popular sports with higher participation rates than pickleball are running and hiking.

The Next Topgolf?

The stats above should get operators’ creative juices flowing. The current growth of the sport along with the largest age group, growth projections, and support in the form of leagues, teams, and celebrities, is highly appealing.

Will a pickleball-forward eatertainment concept be the next Topgolf? It’s possible, and that’s why people considering their first or next concept need to look into pickleball.

The sport is perfect for our industry. It’s easy to learn, simple to play, and popular with most operators’ ideal age bracket—ages 21 to 34. However, pickleball is also very popular amongst the 50 to 70 set, a group with disposable income and time to indulge their interests.

Then there’s the undeniable fact that the sport is often described as fun and social. There are even articles lauding pickleball for encouraging networking.

Finally, there are organizations with which pickleball-centric eatertainment concepts can partner. An illuminating example comes from Shake Shack.

Toss and Spin, a racket sports organization, is partnering with Shake Shack this year. Their 2023 campaign is called the Shake Shack Pickleball Club. This nationwide activation centers around a nationwide tour across America featuring one-day pickleball clinics for all skill levels and tournaments.

One can only assume that this tour, backed by such a visible restaurant brand, will introduce even more people to pickleball. In turn, that creates an even larger pool of potential customers for the right concept.

Opportunity

We speak with a hospitality group pursuing an F&B-driven pickleball concept on the Bar Hacks podcast.

Brian Harper, a partner in Competitive Social Ventures and the company’s senior vice president of sales and marketing speaks about Pickle and Social on episode 94. Not only do his partners on the leadership team see potential for the sport, they love to play it themselves.

Should you think you have a solid idea for a successful pickleball concept, let us know.

Our industry standard feasibility studies will help you select the right market and site. Our fully customized concept development plans will help you and others visualize your big idea. And our in-depth business plan will provide a realistic roadmap for you to throw open your doors and march toward success.

Someone out there has the next big eatertainment concept inside their head. Is it you?

Image: Brendan Sapp on Unsplash