Technology | KRG Hospitality

An AI-generated image of a split screen, technology versus people

July 30, 2024by David Klemt David Klemt No Comments

Bridge the Gap: Tech and Hospitality

Bridging the Gap Between Technology and Personal Development in Hospitality

by Doug Radkey

We shouldn’t have to say this, but the above is an AI-generated image.

It’s said that between 70 percent and 80 percent of hospitality businesses plan to increase their investment in technology and AI over the next five years.

As the industry evolves, the key to success lies in bridging the gap between technology and personal development.

Exploring how integrating technology, artificial intelligence, and personal development can transform your hospitality business is more important now than ever before. It’s crucial that today’s operators understand and leverage these elements to improve operations, enhance guest experiences, and foster staff growth.

The Role of Technology in Modern Hospitality

In today’s fast-paced world, the hospitality industry is undergoing a significant transformation, driven by the rapid advancement of technology.

Hotels, restaurants, and bars are increasingly leveraging innovative tools such as AI, IoT (Internet of things), and data analytics to improve efficiency, personalize services, and to stay competitive. As these technological advancements continue to evolve, they are reshaping the landscape of this hospitality, making it more dynamic and responsive to the ever-changing needs of guests.

While technology offers numerous benefits to the hospitality industry, it also presents several challenges and potential downsides. One significant concern is the risk of de-personalization, as the increased use of automated systems and AI can create a barrier between guests and staff. This barrier has the potential to diminish the personalized touch that is a hallmark of exceptional hospitality.

Additionally, the learning curve for staff can be steep. Team members may require extensive training and ongoing support to utilize new technologies effectively. This can lead to initial inefficiencies and frustration as employees adapt to unfamiliar tools and processes.

Balancing technological advancements with human interaction is crucial to maintaining the warmth and personalized service that guests expect, while also ensuring that staff are adequately equipped, and comfortable with the technological tools at their disposal.

The Emergence of AI in Hospitality

There is no better example of the transformative impact of technology on modern hospitality than the recent developments in artificial intelligence. Hospitality-centric AI applications range from chatbots and predictive analytics such as dynamic pricing tools to personalized marketing platforms, offering a plethora of benefits.

Leading hotel chains like Marriott and Hilton have successfully implemented AI-driven guest services and operational efficiencies, setting new standards in the industry.

For example, these hotels are increasingly using AI to personalize the guest experience, from check-in to check-out. Hilton’s Connie, powered by IBM Watson‘s AI, acts as a concierge, assisting guests with information about hotel amenities, dining recommendations, and local attractions.

AI enhances guest personalization by tailoring services to individual preferences while streamlining operations through automation, and providing valuable insights into guest behavior and preferences.

However, these advancements are not without challenges. Data privacy concerns are paramount, requiring stringent measures to protect guest information. Additionally, ongoing management and updates necessitate in-depth training and processes for staff to effectively integrate AI into their daily routines.

Balancing these challenges with the benefits is crucial to harnessing this technology to its full potential in hospitality.

The Importance of Personal Development in Hospitality

The rapid advancement of technology in the hospitality industry underscores the critical importance of continuous staff training and development. As new tools and systems are introduced, keeping staff updated with the latest technological advancements is essential.

Continuous training programs ensure that employees are proficient in using these new technologies, which not only enhances their productivity but also improves the overall guest experience.

For instance, regular workshops and online courses can help staff stay abreast of the latest AI applications and digital tools, enabling them to seamlessly integrate these advancements into their daily operations.

In addition to keeping up with technology, skill enhancement plays a crucial role in personal development. Key skills for hospitality staff must now include digital literacy, adaptability, and emotional intelligence on top of the core values team members should come to understand during onboarding.

Three Keys

Digital literacy ensures that employees can navigate and utilize various digital platforms and tools effectively. Adaptability is essential in a fast-paced industry where change is constant, enabling your staff to adjust quickly to new processes and technologies. Emotional intelligence, which involves understanding and managing one’s emotions and those of others, is particularly important in hospitality, where guest services and interaction are paramount.

Developing these skills through targeted training programs—along with onboarding those that fit your values—can enhance staff performance and guest satisfaction significantly. Moreover, personal development initiatives can greatly influence staff motivation and retention by investing in the continuous growth and development of your employees.

When staff feel valued and see opportunities for personal and professional growth, they are more likely to stay with your business, reducing turnover rates. This is particularly important in this industry, where high turnover can disrupt operations and negatively impact service quality.

By fostering a culture of continuous learning and development despite the advancements in technology, your business can create a motivated and loyal workforce that is committed to delivering exceptional guest experiences.

Bridging the Gap: Integrating Technology and Personal Development

To truly revolutionize this industry, it is essential to adopt a holistic approach that integrates technology while maintaining a strong focus on human elements. A balanced approach ensures that while technology streamlines operations and enhances guest experiences, the human touch remains a key component of hospitality.

This integration involves not only the implementation of advanced technologies but also the development of staff skills to use these tools effectively.

Such an approach ensures your business can harness the full potential of both technology and its workforce, creating a seamless and enriching experience for both staff and guests.

Creating effective training programs is a critical step in this integration. These programs should include comprehensive education on technology and AI, ensuring that staff are not only familiar with new tools but also confident in using them.

Keys to Effective Training

Training should be continuous and not a one-off or a one-hour briefing, and should cover practical aspects of technology use.

For example, this may include operating digital check-in systems or utilizing AI-driven guest service platforms, as well as theoretical understanding of how these technologies enhance operations and guest satisfaction.

Regular workshops, online courses, and hands-on training sessions can help staff stay updated with technological advancements, and develop the necessary skills to leverage these tools in their daily tasks.

Fostering a collaborative culture is equally important in helping staff embrace these new technologies. Encouraging a culture of collaboration and continuous improvement can significantly ease the transition to a technology-enhanced workplace. Involving staff in the decision-making process and encouraging feedback ensures that team member feel valued. Therefore, they are more likely to engage with new technologies.

Bridging the gap between technology and personal development requires a balanced approach that integrates technological advancements with comprehensive training programs and a collaborative culture. This holistic strategy ensures that the hospitality industry can leverage the benefits of technology while maintaining the essential human touch that defines the exceptional service we all love and strive for.

Integrating the Technology

Integrating technology and personal development doesn’t set aside the requirement for careful assessment and planning. Begin by evaluating your current technology and training needs to identify gaps, and opportunities for improvement.

Conduct an audit of your existing systems and processes (tech-based and non-tech-based systems), gather feedback from your staff, and set clear objectives for integration. A thorough assessment helps create a strategic playbook that aligns technological advancements with the developmental needs of your staff, ensuring a cohesive approach.

When it comes to technology adoption, it’s crucial to select and implement new tools that complement your personal development goal, operational needs, and guest experiences. Choose technologies and AI tools that enhance operational efficiency and guest experiences without compromising the human element.

Consider factors such as ease of use, scalability, and integration capabilities. Pilot testing new technologies before full implementation can help identify potential issues, and ensure a smoother transition.

Regular updates and feedback are essential for maintaining the effectiveness of your technology and training programs. Take the time to establish a continuous feedback loop where staff can share their experiences and suggestions for improvement, and then update your systems and training materials regularly to reflect the latest advancements and best practices.

This proactive approach ensures that your team remains equipped with the knowledge and skills needed to leverage new technologies more effectively.

Overcoming Resistance to Change

If you’ve been operating for a number of years and the embracing of technology is new to your style of operations, you may receive resistance from staff who have been with you for a while. Addressing potential resistance to change is a common challenge in integrating technology (or any other type of change).

Strategies for overcoming this resistance may include involving staff in the decision-making process, providing comprehensive training, and highlighting the benefits of new technologies. Developing a growth-based mindset within your workplace culture—through positive reinforcement and recognition of early adopters—can also help encourage acceptance and enthusiasm for change.

Lastly, continuous improvement is vital for sustaining the benefits of technology and personal development initiatives while positioning your brand for the new era that’s upon us.

Evaluate the impact of new technologies and training programs on your operations regularly, and be aware of guest satisfaction scores. Use performance metrics and feedback to identify areas for improvement, and make necessary adjustments.

This commitment to ongoing development ensures that your hospitality business remains competitive and adaptive to future industry changes.

Bridging the gap between technology and personal development is essential for creating a seamless and enriching experience for both staff and guests. Embrace these approaches so your business can innovate and thrive, while still maintaining the warmth and personalized service that define exceptional hospitality.

Image: DALL-E

A young male chef preparing a dish in a clean, modern commercial kitchen

July 24, 2024by David Klemt David Klemt No Comments

Top Kitchen Design Trends of 2024

Top Commercial Kitchen Design Trends of 2024

by Nathen Dubé

Commercial kitchen design continues to evolve, driven by advancements in technology, an emphasis on sustainability, and the need for efficiency and flexibility.

The latest trends reflect these priorities, offering solutions that enhance both functionality and aesthetics in professional kitchens.

This article explores the top commercial kitchen design trends of 2024, highlighting their benefits and offering practical implementation tips. Going further, I also include real-world examples of successful trend adoption.

1. Sustainability and Eco-friendly Practices

Sustainability is at the forefront of commercial kitchen design in 2024.

Restaurants and foodservice operators are increasingly adopting eco-friendly practices. Key reasons include reducing their environmental footprint, and meeting consumer demand for responsible business practices.

Key Trends

Energy-efficient appliances: The use of ENERGY STAR-rated appliances that consume less energy, and reduce operational costs.
Sustainable materials: Incorporating materials like recycled steel, reclaimed wood, and eco-friendly countertops.
Waste reduction systems: Implementation of composting and recycling systems to manage waste more effectively.

Benefits

Reduce operational costs through lower energy consumption.
Enhance brand reputation by demonstrating a commitment to sustainability.
Meet regulatory requirements and green certification standards.

Implementation Tips

Choose ENERGY STAR appliances: Invest in appliances that are certified for energy efficiency to cut down on utility costs, and reduce environmental impact.
Incorporate sustainable materials: Opt for materials that are durable and have a lower environmental impact, such as recycled or reclaimed materials.
Implement waste management systems: Set up composting and recycling systems to manage kitchen waste efficiently.

Client Story

A farm-to-table restaurant I worked with revamped their kitchen to include energy-efficient appliances, reclaimed wood decor, and a comprehensive waste management system.

These changes not only reduce their operational costs but also enhance their brand’s commitment to sustainability, attracting environmentally-conscious customers.

2. Smart Kitchens and Technology Integration

Technology is transforming commercial kitchens, making them more efficient, safer, and easier to manage.

Smart kitchens equipped with advanced technology are becoming the norm in 2024.

Key Trends

Smart appliances: Ovens, refrigerators, and dishwashers that can be monitored and controlled remotely.
Automated inventory systems: Systems that track inventory levels in real-time, reducing waste and ensuring timely reordering.
Kitchen management software: Software that integrates scheduling, task management, and equipment maintenance.

Benefits

Enhance operational efficiency, and reduces labor costs.
Improve food safety, and quality control.
Streamline inventory management, and reduces waste.

Implementation Tips

Invest in smart appliances: Choose appliances that offer remote monitoring and control capabilities for better efficiency and oversight.
Use automated inventory systems: Implement inventory management software to keep track of stock levels, and reduce food waste.
Adopt kitchen management software: Integrate software solutions that help manage kitchen tasks, staff schedules, and maintenance routines.

Client Story

A high-volume catering QSR company integrated smart kitchen technology, including smart ovens and automated inventory systems.

The approach allows them to monitor cooking processes remotely, optimize their inventory management, and streamline operations. The result is significant cost savings, and improvements to service quality.

3. Flexible and Modular Kitchen Designs

Flexibility and adaptability are key considerations in modern commercial kitchen design.

Modular kitchens that can be easily reconfigured to meet changing needs are becoming increasingly popular.

Key Trends

Modular equipment: Equipment that can be moved and reconfigured as needed.
Multi-functional spaces: Areas that can serve multiple purposes, such as prep stations that double as serving counters.
Open kitchen concepts: Designs that promote transparency and interaction with customers.

Benefits

Adapt to changing menu requirements and operational needs.
Maximize space utilization and efficiency.
Enhance the dining experience by promoting transparency.

Implementation Tips

Choose modular equipment: Invest in equipment that can be moved and reconfigured easily to suit different needs.
Design multi-functional spaces: Create areas that can serve multiple purposes to maximize space efficiency.
Consider open kitchen designs: Implement open kitchen concepts to enhance customer interaction and experience.

Client Story

A fast-casual restaurant redesigned their kitchen to incorporate modular equipment and multi-functional spaces. This flexibility allows the operator and their team to adapt to menu changes easily.

In addition, the change increases functional space, and streamlines their operations, leading increases in efficiency and customer satisfaction.

4. Enhanced Food Safety and Sanitation

Food safety and sanitation are paramount in commercial kitchens.

In 2024, new design trends are focusing on creating hygienic environments that minimize contamination risks.

Key Trends

Touchless technology: Faucets, dispensers, and doors that operate without physical contact.
Sanitization stations: Dedicated areas for handwashing, and sanitizing equipment.
Antimicrobial surfaces: Use of materials that resist bacteria, and are easy to clean.

Benefits

Reduce the risk of foodborne illnesses.
Meet health and safety regulations.
Enhance the overall cleanliness of the kitchen.

Implementation Tips

Install touchless technology: Implement touchless faucets, dispensers, and entry systems to reduce contamination risks.
Create sanitization stations: Designate areas specifically for handwashing, and sanitizing tools and equipment.
Use antimicrobial surfaces: Choose materials that are resistant to bacteria, and easy to clean for work surfaces and high-touch areas.

5. Ergonomic and Worker-friendly Designs

Ergonomic designs that prioritize the well-being and efficiency of kitchen staff are gaining traction.

These designs focus on reducing physical strain, and improving workflow.

Key Trends

Ergonomic workstations: Adjustable workstations that reduce strain and fatigue.
Improved ventilation systems: Systems that provide better air quality, and reduce heat stress.
Ample lighting: Sufficient and well-placed lighting to reduce eye strain and enhance visibility.

Benefits

Increase staff productivity, and job satisfaction.
Reduce the risk of workplace injuries.
Enhance the overall efficiency of kitchen operations.

Implementation Tips

Design ergonomic workstations: Invest in adjustable workstations that can be tailored to individual needs.
Improve ventilation: Ensure your kitchen has effective ventilation to maintain air quality, and reduce heat.
Enhance lighting: Use ample and strategically placed lighting to improve visibility, and reduce strain.

Client Story

A large-scale restaurant redesigned their kitchen to include ergonomic workstations and improved ventilation.

These changes have resulted in a more comfortable and efficient working environment, leading to higher staff morale and productivity.

Address Your Kitchen’s Design

The commercial kitchen design trends of 2024 reflect a focus on sustainability, technology integration, flexibility, food safety, and ergonomics.

These trends not only enhance the functionality and efficiency of commercial kitchens but also address the growing demands for environmentally responsible and worker-friendly environments.

Are you ready to transform your commercial kitchen with these cutting-edge trends? Contact us today to learn how we can help you implement these designs and create a kitchen that meets the demands of modern culinary operations.

Image: Rene Terp via Pexels

June 25, 2024by krghospitality krghospitality No Comments

The Power of an ImpactMAP™

The Power of an ImpactMAP™

by Doug Radkey

Let’s be honest, the line between success and failure often hinges on the ability to act decisively and act with purpose.

In this article, we’re going to explore two areas of your hospitality business that are under your control: creating a plan, and taking action.

Understanding the Risk of Inaction

The concept surrounding the Risk of Inaction—arguably a new form of ROI—captures the potential losses businesses face when they fail to take strategic actions.

Inaction in the hospitality industry can manifest in various harmful ways. Inaction can also stem from multiple sources: fear of change, lack of resources, or simply underestimating the competition.

Regardless of the manifestation or cause, the consequences are usually the same: stagnation, decline, and, ultimately, a shuttered business.

Let’s put this into context by taking a look at a sample of both a restaurant and a hotel business.

Failure to Innovate

If a restaurant does not act to continuously re-engineer its menu, it risks diminishing profits, providing a low-level guest experience, and mismanaging inventory. Without regular strategic updates, the menu may fail to reflect current culinary trends and guest preferences, which can lead to a decrease in interest and satisfaction.

Additionally, sticking with a static menu can prevent the restaurant from optimizing ingredient use, productivity, and cost-efficiency.

At the end of the day, this lack of adaptation and innovation will result in diminishing sales and profitability, making it difficult for the restaurant to sustain its operations.

Failure to Update Systems

If a hotel on the other hand decides to not use a modern and fully integrated Property Management System (PMS), it risks operating inefficiently and falling behind in today’s technology-driven hospitality environment.

A non-existent, outdated, or fragmented PMS can lead to significant operational issues, such as slow check-in and check-out processes, errors in room availability and booking management, and ineffective communication between different departments. That’s just to name a few crucial issues.

This inefficiency can impact guest experiences negatively, leading to dissatisfaction and potentially harming the hotel’s reputation.

Furthermore, without a modern PMS, a hotel may struggle with data management, limiting its ability to effectively analyze performance metrics, forecast demand, and implement dynamic pricing strategies. These disadvantages will result in lost revenue and reduced competitiveness in a space where guest expectations and operational efficiency are increasingly driven by technological advancements.

In each example above, the risk of inaction leads to missed opportunities and underperformance.

The Power of an ImpactMAP™

To combat the risks associated with inaction, your hospitality business can benefit significantly from developing an ImpactMAP™.

This strategic tool can help you identify where you currently stand, define where you want to go, and outline the steps required to get there, thereby helping you create not only strategic clarity, but drive and accountability.

The Assessment

To create an ImpactMAP™ and to take action immediately, you need to first assess your operations.

An assessment of your hospitality business is a comprehensive evaluation process aimed at analyzing various aspects of your business to identify strengths, weaknesses, and areas for improvement or opportunity. The goal is to gather actionable insights that can help optimize operations, enhance guest experiences, and massively improve your profitability.

The assessment should involve on-site observations, staff interviews, and a deep dive into the following eight categories, culminating in a detailed report that provides recommendations and a strategic plan for future growth and sustainability.

For each of the eight categories, consider a 3x matrix with three responses to the following questions:

Where are we now?
Where do we want to go?
What resources do we need?
What’s holding us back?

Then, create a SMART (Specific, Measurable, Achievable, Relevant, Timely) goal for each response in your “Where We Want to Go” list.

What are the eight assessment categories?

1. Brand Strategy

Assessment: Review your core values, story, messaging, philosophy, design, and reputation.

Opportunity: Enhance brand alignment across all touchpoints to ensure consistency while refining your brand messaging to better connect with targeted guest profiles.

2. Internal Programming

Assessment: Review your pricing strategy, guest experiences, property / menu / room management systems and programs.

Opportunity: Optimize your offerings based on guest preference data and a profitability analysis, along with potential upgrades to your amenities to enhance guest satisfaction and to compete with today’s market standards. In summary, implement efficiencies to improve guest experiences and operational workflow with a focus on your internal programming.

3. Marketing Plans

Assessment: Review guest profiles, guest journey maps, guest databases, awareness and retention strategies, and your digital marketing portfolio.

Opportunity: Integrate advanced digital marketing techniques to increase reach and engagement while developing targeted promotions and partnerships, and by leveraging data analytics to tailor marketing efforts more precisely to guest behaviors and trends.

4. Tech-Stack Plans

Assessment: Review guest facing technology, POS / PMS system, integrations, and marketing.

Opportunity: Identify current technology gaps and plan for a strategic integration of systems that enhance guest experiences while streamlining operations.

5. Standard Operating Procedures

Assessment: Review of all internal and external systems, plus training programs and SOPs.

Opportunity: Ensuring that all staff are clear on their roles and responsibilities, which enhances overall service quality through the development of standardized procedures that ensure consistency and efficiency across the business. Implement feedback systems to continually refine and improve SOPs based on real-time challenges and successes.

6. People and Culture

Assessment: Review of staff experiences, onboarding, productivity, growth, and retainment.

Opportunity: Strengthen employee engagement through improved communication and support systems. Foster a culture of innovation and openness in which employees feel valued and motivated. Develop leadership from within to enhance management effectiveness and succession planning.

7. Financial Health

Assessment: Review of all financials, including Revenue, COGs, KPIs, Expenses, Debt, and Profit.

Opportunity: Identify cost-saving opportunities without compromising service quality. Explore new revenue streams that align with your brand values and market opportunities. Implement more rigorous financial tracking and forecasting tools (such as technology) to better predict financial trends and react proactively.

8. Mindset

Assessment: Daily habits, work / life balance, decisiveness, communications, and growth-based thinking.

Opportunity: Develop a mindset of continuous improvement among all staff levels (starting with yourself) to foster an environment of excellence. Cultivate resilience by planning for crisis management and business continuity. Promote a guest-centric approach, aligning all business decisions with guest satisfaction and personal development outcomes.

Creating the ImpactMAP™

By following the above 3x strategy for each category, you will have created 24 SMART objectives that will be the foundation of your ImpactMAP™ to move your business forward over the next one to six to 12 months.

Importance of SMART Objectives

What does SMART mean and how does it work?

Specific, Clarity, and Focus: SMART objectives provide clear and concise goals that everyone in your business can understand and rally behind. This clarity helps to focus efforts and resources on what’s most important.
Measurability and Tracking: By setting measurable goals, your business can track progress and make data-driven decisions. This measurability allows for adjustments to be made in strategies or tactics to ensure the objectives are met.
Achievability: Goals that are achievable motivate staff. Setting impossible goals can lead to frustration and disengagement, whereas achievable objectives encourage team effort and commitment.
Relevance: Ensuring that each objective is relevant to the broader business goals ensures that every effort made contributes to the overall success of your brand.
Timeliness: Incorporating a timeframe provides urgency, a deadline, and accountability, which can help prioritize daily tasks and long-term plans.

However, you shouldn’t try to accomplish all 24 objectives at the same time. Once you’ve set your 24 impactful objectives, prioritizing them is crucial to stabilize your hospitality business and aim for scalable growth.

Best Practices for Prioritizing Objectives

Assess Business Needs: Start by conducting that thorough assessment of your business to identify key areas that need improvement.
Impact Analysis: Evaluate the potential impact of each objective. Prioritize objectives that offer the greatest benefits in terms of guest satisfaction, revenue growth, and operational efficiency.
Resource Availability: Consider the resources available, including budget, people, and technology. Prioritize objectives that align with current resources or where adjustments can be made to accommodate necessary changes.
Quick Wins: Identify objectives that can be achieved quickly and with minimal disruption to your ongoing operations. These quick wins can boost morale and provide visible improvements that justify further investments in other areas.
Strategic Importance: Some objectives, while not providing immediate benefits, are crucial for long-term success. Prioritize these based on their strategic importance to the business’s future.
Stakeholder Input: Engage with various stakeholders, including management, staff, and guests, to gain insights into which objectives they feel are most critical. This can help in aligning the goals with the needs and expectations of those most affected by the changes.
Balanced Scorecard: Use a balanced scorecard approach to ensure that objectives across different areas such as guest services, internal processes, financial performance, and learning and growth are all being addressed.
Iterative Review: Regularly review the priorities as situations and business dynamics evolve. What may be a priority today might change based on market conditions or internal business changes over the next three to six months.

Once you have your objectives prioritized, it’s time to assign or delegate them as needed and have those assignees (including yourself) take ownership of the objectives with their signature to add another level of accountability.

Implementing the ImpactMAP™

Before starting, ask yourself one final question: What will happen if we don’t take action?

Be detailed and mindful of what the short-term and long-term consequences might be if you don’t act.

Effective implementation of an ImpactMAP™ requires knowledge of these consequences, along with a commitment from all levels of your business. It starts with comprehensive training sessions followed by regular review meetings, which are both essential to assess progress, address challenges, and refine strategies as needed.

Take a SMART-ER approach, which is where you Evaluate and Re-adjust the SMART objectives halfway through the timeline you’ve set.

Conclusion

Risk of inaction is a silent threat that can undermine any business, particularly in this dynamic industry.

Adopting an ImpactMAP™ and making a commitment to take massive action allows you to manage your operations proactively, adapt to changing market conditions, and set a course for sustainable success.

This strategic approach not only mitigates risks but also empowers your hospitality business to thrive in a competitive landscape—but it starts with you and your mindset toward taking action.

Image: KRG Hospitality

AI-generated image of a caramel sundae surrounded by pats of butter and chicken nuggets

June 21, 2024by David Klemt David Klemt No Comments

Fast-food Giant Halts AI Ordering

Fast-food Giant Halts AI Order Taking

by David Klemt

Ironically, this image is AI generated. So, how many pats of butter and nuggies do like with your sundae?

Roughly two years after first experimenting with artificial intelligence-driven ordering technology, McDonald’s is pulling the plug…for now.

The fast-food behemoth made its interest in artificial intelligence abundantly clear in 2019. In Q2 of that year, the company purchased Dynamic Yield for a reported $300 million. Immediately after making the acquisition, McDonald’s implemented Dynamic Yield’s machine-learning tech to an estimated 8,000 drive-thrus.

KRG Hospitality readers may recall that the fast-food company faced a class-action privacy lawsuit in Illinois. The plaintiff alleged that McDonald’s “violated BIPA because it failed to obtain proper consent prior to collecting and disseminating Plaintiff’s and the other class members’ voiceprint biometrics who interacted with its AI voice assistant at its Illinois locations.”

Around six months after making that acquisition, McDonald’s picked up Apprente. Interestingly, the voice-powered ordering tech platform had only been founded in 2017.

Following the purchase, the Apprente team became founding members of McD Tech Labs, a group that fell under the McDonald’s Global Technology Team umbrella. Two years later, McDonald’s would sell McD Tech Labs to IBM.

Put simply, McDonald’s was interested in testing voice-activated “automated order taking” (AOT). In theory, an effective platform could take orders, speeding up drive-thrus and streamlining operations.

Well, it appears that the answer is no. At least, not to the standards of McDonald’s, and satisfaction of the company’s guests.

Speed, Convenience, and Accuracy

A drive-thru needs to be fast. There’s no question about it, that’s the entire point.

The speed, after all, makes a drive-thru convenient. Otherwise, people would just park and place their orders at a counter or kiosk.

However, speed means nothing without accuracy. An LSR, QSR or fast-casual restaurant with a drive-thru could promise a guest will wait in line for no more than ten seconds after ordering. If they don’t get what they ordered, it doesn’t matter.

Poke around social media—TikTok in particular—and you’ll come across some viral AOT moments. There’s the addition of several “butter portions” to an ice cream order. Also, the addition of bacon to an order for ice cream, which I’m not entirely confident I’d correct. At least one guest popping into an AI-powered McDonald’s drive-thru had hundreds of dollars of McNuggets added to their order.

So, by July 26 of this year, as reported by Restaurant Business, the experiment will end. This partnership between McDonald’s and IBM to test AOT will be no more.

However, McDonald’s also said that IBM will remain a partner for other efforts. Further, McDonald’s shutting down AOT (for now) doesn’t seem to have turned other brands off from the idea. Per reporting, IBM says other fast-food chains are inquiring about AOT.

This story makes a few things clear to me. First, McDonald’s is confident that investing in tech is the way forward. They’ve spent hundreds of millions of dollars to test and implement new tech solutions. Second, someone has to go first and test in earnest, and it appears that LSRs and QSRs are leading the charge in hospitality.

And third, AI isn’t ready for prime time just yet. It’s wise to keep up to date with AI-powered innovations, but it’s also smart to be cautious.

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

June 4, 2024by David Klemt David Klemt No Comments

SevenRooms Announces Powerhouse Ad Board

SevenRooms Announces Powerhouse Advisory Board

by David Klemt

"Good news is coming" sign taped to a pole on the street

One of our favorite hospitality technology platforms, SevenRooms, is back at it, showing off their commitment to growth through an announcement made today.

Regular readers of KRG Hospitality’s industry news section may recall an impressive announcement from SevenRooms toward the end of last year. In late November of 2023, the innovative hospitality CRM, operations, reservation, and marketing platform released not one, not two, but three powerful new tools:

Priority Alerts
Private Line
Word-of-Mouth Referrrals

Those who may have missed this announcement can read about these tools here.

Today’s news, however, isn’t based on the release of an innovative new tech feature. Rather, it has everything to do with SevenRooms looking toward the future. The hospitality tech leader is proud to announce CAB, their Customer Advisory Board.

Images of the SevenRooms inaugural Customer Advisory Board members

At the launch, CAB features five hospitality industry heavy hitters. Each represents a hospitality titan, such as MGM Resorts International, Union Square Hospitality Group, and Black Sheep Restaurants. Each member is tasked with analyzing AI, revenue management, and the future of hospitality, and the opportunities presented by each.

Personally, I’m particularly interested in what CAB members will have to say about AI in the industry by year’s end.

For more details, please review the official press release below.

SEVENROOMS ANNOUNCES LAUNCH OF CUSTOMER ADVISORY BOARD WITH GLOBAL HOSPITALITY LEADERS

MGM Resorts International, Union Square Hospitality Group, Black Sheep Restaurants, Australian Venue Co., and MJMK Restaurants join to provide strategic insights on the future of hospitality, emerging trends, and key technological opportunities

NEW YORK (June 4, 2024) – SevenRooms, the leading marketing and operations platform for the hospitality industry, today announced the creation of its inaugural Customer Advisory Board (CAB). Composed of hospitality experts and thought leaders from the United States, Hong Kong, Australia, and United Kingdom, SevenRooms’ CAB will serve as a strategic forum to explore, discuss and action opportunities within the hospitality industry.

CAB members joined SevenRooms executive leadership at the ARIA Resort & Casino in Las Vegas to discuss the 2024 board theme of “Future Proofing to Serve up Success.” CAB attendees gained deeper insight into industry trends and best practices from global markets, discussed the value of loyalty in building hospitality-focused businesses with their peers, and debated how technology can help bridge the gap between guests and restaurants to deliver revenue-driving experiences. Throughout 2024, CAB members will continue to explore the following areas of opportunity:

Future of Hospitality – consumer sophistication, technology consolidation and the preparing workforces for what’s to come
Artificial Intelligence – authenticity and the importance of maintaining human, hospitality-focused connections
Revenue Management – data storytelling and how to make more money from the
same seats

As the consumer of tomorrow evolves, with new demands and expectations, SevenRooms’ CAB will continue to explore what authentic, hospitality-driven experiences look like for both hospitality operators and consumers. Plus, develop strategies for how technology like SevenRooms can provide a blueprint for growth to help operators own and elevate the guest experience to build loyalty. This includes leveraging CRM and marketing tools that not only help their businesses grow, but ensure they’re set up for long-term success by generating more predictable revenue, more often.

“We are excited to launch our Customer Advisory Board, welcoming this esteemed group of industry leaders deeper into our community,” said Joel Montaniel, CEO and Co-Founder of SevenRooms. “At SevenRooms, we are committed to the long-term success of our customers both now and in the future. As leaders in innovation, we empower operators to build sustainable, profitable businesses with guest experience at their core. With our board members’ diverse perspectives and deep industry knowledge, they will be instrumental in helping us better understand and address the needs of our customers and the wider global hospitality industry, ultimately, helping them better serve their guests.”

The inaugural members of the Customer Advisory Board include:

Ari Kastrati, Chief Hospitality Officer, MGM Resorts International
Kelly MacPherson, Chief Supply Chain & Technology Officer, Union Square Hospitality Group
Syed Asim Hussain, Founder, Black Sheep Restaurants
Kylie Moncur, Chief Marketing Officer, Australian Venue Co.
Hannah Berry, Marketing Director, MJMK Restaurants

“Working with Joel and the SevenRooms team over many years, I’ve seen firsthand their commitment to the hospitality industry and its continued growth and evolution; passions I too hold very dear,” said Ari Kastrati, Chief Hospitality Officer at MGM Resorts International and Chairman of SevenRooms’ Customer Advisory Board. “I am honored to chair this new advisory group, with a collective goal of supporting and empowering hospitality businesses as they navigate an increasingly complex market and strive to elevate experiences for diners of today and tomorrow.”

For more information about SevenRooms and its Customer Advisory Board, please visit sevenrooms.com/customer-advisory-board.

About SevenRooms

SevenRooms is a leading marketing and operations platform for growing restaurants in the hospitality industry. From Michelin star gems to local favorites, the all-in-one platform helps restaurants increase sales, delight guests, and keep them coming back, automatically. The full suite of products includes reservations, waitlist and table management, review aggregation, referrals, email marketing, and marketing automation. Founded in 2011 and venture-backed by Amazon, Comcast Ventures and PSG, SevenRooms has more than 10,000 dining, hotel F&B, nightlife and entertainment clients globally, including: Marriott International, MGM Resorts International, Mandarin Oriental Hotel Group, Wynn Resorts, Jumeirah Group, Hard Rock Hotels & Resorts, Wolfgang Puck, Michael Mina, Bloomin’ Brands, Union Square Hospitality Group, Australian Venue Co., The Wolseley Hospitality Group, Dishoom, Live Nation and Topgolf. www.sevenrooms.com

Image: Jon Tyson on Unsplash

Black-and-white photograph of shelves loaded with broken desktop computers and monitors

May 20, 2024by David Klemt David Klemt No Comments

Why We Offer Tech-stack Planning

Why KRG Hospitality Offers Tech-stack Planning

by David Klemt

If your hardware looks like this, it may be time to update your tech stack.

Navigating the seemingly endless restaurant, bar, and hotel technology options available to operators can feel like an overwhelmingly complex task.

This can be particularly true for brand-new operators and those with a decade or more of experience under their belts. For the former, where does one with little to no experience even begin putting together their technology stack?

And for the latter, what tech upgrades are worth implementing, and which platforms are crucial; which are nice to have; and which are unnecessary for a particular concept?

Sitting down and sifting through the platforms within just a few categories can be a significant investment of time. Learning to use each solution and training relevant team members on them also requires considerable time and effort. That’s to say nothing of the initial and monthly outlay of precious monetary resources after making selections.

Of course, there’s also the nagging feeling that maybe the platforms chosen aren’t the “right” fit, or the best in class.

Most operators, regardless of the length of time they’ve been in hospitality, are aware of a handful of tech selections they need to make. They know they need a point-of-sale system, a customer relationship management option, an online ordering platform, a reservation system.

But what about inventory, gratuity management, marketing campaign management, guest feedback, scheduling, catering, website chatbots, AI-enhanced loyalty programs, and even kitchen displays?

According to Brizo Foodmetrics, operators need to consider a dozen tech categories. At KRG Hospitality, we say there are at least that many.

Difficult Choices

Per a new report from Nation’s Restaurant News, people are excited but cautious about the tech available to the hospitality industry. Anyone interested in reviewing the 2024 Restaurant Technology Outlook report can click here to gain access.

Among the report’s insights are the identification of a number of challenges operators face when it comes to tech decisions. The most-significant barrier is still pricing, with 37 percent of NRN survey respondents saying hardware comes with high costs. Further, 30 percent think there’s not enough transparency surrounding additional fees.

There’s also an interesting perception as regards features. While 33 percent of respondents feel the systems they’ve selected are light on functionality, 18 percent say their systems have functions that they don’t even use.

Thirty-two percent of survey respondents identify a lack of knowledge of systems as a barrier to adopting new tech solutions. In some good news, just ten percent of respondents say systems are too difficult to use. Still, ten percent of our industry is a significant number.

Combined, 87 percent of those surveyed will either possibly (24%), probably (33%), or definitely (30%) invest in tech in 2024. That’s an impressive number.

However, 39 percent of respondents were “definitely” going to invest in tech in 2023. That’s a drop of nine percent.

Here to Help

When we at KRG develop a tech stack for a client, it’s with their specific project and needs in mind.

And while we do have preferred partners, we present multiple options. Moreover, each option comes with a synopsis of features and a justification for its inclusion.

If a preferred partner isn’t the best option or the client wants to choose something else, we support that decision. Tech is challenging enough already without being steered toward specific platforms for no other reason than, “We like this one.” These decisions aren’t about us, they’re about what’s best for our clients.

At the end of each tech-stack plan are estimated costs for each option. We include the onboarding fees, monthly fees, and the annual cost. Again, these are close estimates as modules, additional features and hardware like handhelds, and subscriptions can increase or reduce the overall cost.

The hospitality industry tech landscape is transforming from a barren desert to a thriving wetland. KRG Hospitality is here to help you navigate this complex terrain.

Image: z yu on Unsplash

April 16, 2024by David Klemt David Klemt No Comments

AI: Coming to a Loyalty Program Near You

AI: Coming to a Loyalty Program Near You

by David Klemt

In a logical step forward, artificial intelligence is now coming to restaurant loyalty programs to enhance personalization and encourage engagement.

Proponents say that AI is in a position to learn about program members and make recommendations. Most importantly, they claim that such technology learns to present offers that will motivate guests to make a purchase.

At the end of the day, that is the reason loyalty programs exist.

One international chain embracing AI tech to enhance their program is Wendy’s. As one would expect, they’re using AI to study an individual’s preferences, visit frequency, purchase history, and more.

Should this investment in AI prove successful, the Wendy’s loyalty program will further establish itself as one of the best in the industry. In addition to enhancing the gamification aspect of the app, offer uptake should increase.

It’s no secret that consumers want personalized offers. However, that doesn’t mean a marketing email with their first name in the greeting. A truly personalized offer is one that shows the company extending it understands the recipient.

For a surface-level example, let’s say a loyalty program user’s purchase history makes it clear they’re exclusively vegetarian or vegan. It’s incredibly likely that offering this person a deal on a double cheeseburger will fail. Over time, after receiving enough offers that don’t resonate, that user may decrease visits and even exit the loyalty program.

Toward the end of last year, Wendy’s said they expected sales driven by digital opportunities to reach nearly $2 billion. A key driver is, of course, their loyalty program.

It makes sense, therefore, for the QSR giant to invest in AI to enhance loyalty.

Punchh It

Wendy’s is partnering with PAR Tech to enhance their loyalty program via artificial intelligence.

In 2021, PAR Tech acquired a loyalty and guest engagement solutions provider called Punchh for $500 million. Now called PAR Punchh, the aim is to make it simpler for restaurants to leverage loyalty.

“With the Punchh acquisition, we are building a platform that enables restaurants to scale quickly, own their path to innovation, and take back their guest relationship. This eliminates the need for juggling disjointed vendors, developing cumbersome point-to-point integrations, and relying on 3^rd party dependencies. At the same time, Punchh advances our ability to provide customers with an end-to-end solution, from guest-to-kitchen, through one unified data source,” said PAR Tech CEO and president Savneet Singh back in 2021.

Per PAR Tech, there are more than 200 enterprise-level restaurant chains using Punchh currently. It stands to reason that number will grow if partnering with the platform proves lucrative for brands like Wendy’s.

Further, as AI tech reaches ubiquity and delivers more desirable results, it should become more affordable for regional chains and independents to leverage it as well.

Operators of all sizes who offer loyalty programs should keep an eye on AI-enhanced programs and the opportunities they present.

Image: Alexander Sinn on Unsplash

March 15, 2024by David Klemt David Klemt No Comments

What are You Changing in 2024?

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

by David Klemt

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

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

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

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

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

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

The Who

Most of the respondents identified as independent restaurant operators.

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

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

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

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

The What

So, what question caught our attention at KRG Hospitality?

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

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

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

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

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

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

The What: The Sequel

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

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

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

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

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

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

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

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

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

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

January 17, 2024by David Klemt David Klemt No Comments

Welcome Back to the Culinary Arena

Welcome Back to the Culinary Arena: A Comprehensive Guide for 2024

by Nathen Dubé

The start of a new year is an exciting time in the restaurant world, offering a unique opportunity to reassess and rejuvenate your foodservice business.

From utilizing downtime effectively to setting strategic priorities, this guide is designed to help you navigate the year ahead with confidence and creativity.

Whether you’re a seasoned chef or a budding restaurateur, these insights will equip you with the tools to make 2024 a year of remarkable culinary experiences and business growth.

Part 1: Strategic Use of Downtime

Menu Innovation and Optimization

The start of the year is ideal for re-evaluating your menu.

Begin by analyzing customer feedback and sales data from the previous year. Identify which dishes were most popular and which underperformed. Consider removing items that aren’t selling well and focus on the dishes that your customers love.

This is also an excellent time to experiment with new flavors and culinary trends. For instance, with the growing demand for plant-based options, think about introducing a few vegan or vegetarian dishes.

Keep an eye on food trends. Are there new ingredients or cooking techniques that you can incorporate into your menu? This not only keeps your offerings fresh and exciting but also shows your commitment to culinary innovation.

Remember, a well-crafted menu is a balance between popular staples and innovative dishes. It should reflect your restaurant’s identity while also appealing to your target customer base.

Consider a seasonal menu that takes advantage of fresh, local produce, which can provide inspiration for new dishes and help reduce costs.

Staff Training and Empowerment

The quieter months are a perfect opportunity for staff training and development.

Conduct a skills audit to identify areas where your team could improve or learn new competencies. This could range from culinary skills, like mastering a new cooking technique, to soft skills, such as guest service or conflict resolution.

Training doesn’t have to be formal or expensive. You can leverage online courses, in-house mentoring, or even cross-training within your team.

For instance, front-of-house staff could benefit from basic kitchen training to better understand the dishes they are serving, while kitchen staff could learn about customer service to appreciate the end-to-end dining experience.

Team building is another key aspect. Organize activities that foster communication and collaboration. This could be something as simple as a team meal or a group outing.

A cohesive team that communicates well will provide better service, leading to happier guests and a more pleasant working environment.

Finally, empower your staff by involving them in decision-making processes. This could be in menu development, process improvements, or even marketing ideas.

When staff feel valued and part of the business, they are more likely to be motivated and committed.

Facility Revitalization

Use this quieter period to assess and upgrade your facilities.

Start with a thorough cleaning and maintenance check. This includes checking kitchen equipment, dining area furniture, and the overall infrastructure of your establishment.

Evaluate your kitchen equipment and consider if anything needs to be repaired or replaced. Upgrading to more efficient equipment can improve productivity and reduce long-term costs. For instance, investing in energy-efficient appliances not only cuts down on utility bills but is also better for the environment.

Look at your dining area from a customer’s perspective. Is the seating comfortable? Is the lighting appropriate? Small changes in décor can significantly enhance the dining experience. Consider refreshing the paint, adding new artwork, or even rearranging the layout to improve flow and ambiance.

Also, think about your back-of-house operations. Is your storage area organized? Can you improve the workflow in the kitchen? An efficient back-of-house leads to smoother service and a better customer experience.

Part 2: Setting Priorities for the Year

Elevating Customer Experience

The guest experience is paramount in the food service industry. This year, make it a priority to enhance every aspect of your guest’s journey.

From the moment they walk in, to the service they receive, to the food they enjoy, each element should contribute to a memorable experience.

Focus on training your staff to provide exceptional service. This includes being knowledgeable about the menu, attentive to guest needs, and quick to resolve any issues.

Personalized service can make a big difference. Remembering regulars’ preferences or celebrating special occasions with them can turn a one-time visit into repeat patronage.

Ambiance plays a crucial role in the dining experience. The right music, lighting, and décor can create an inviting atmosphere that complements your culinary offerings. If your budget allows, consider investing in upgrades that enhance the ambiance, such as new lighting fixtures or comfortable seating.

Implementing a feedback system is also important. Encourage customers to share their experiences, whether through comment cards, online reviews, or direct conversations. This feedback is invaluable for continuous improvement and can help you address any issues promptly.

Sustainability as a Cornerstone

Sustainability is becoming increasingly important to consumers, and incorporating sustainable practices into your business can have a significant impact. Start by assessing your current practices and identifying areas for improvement.

One key area is waste reduction. Conduct a waste audit to understand where most of your waste is coming from and develop strategies to reduce it. This could involve better inventory management to prevent overordering and spoilage, composting food waste, or finding creative ways to use leftovers.

Local sourcing is another aspect of sustainability. Building relationships with local suppliers not only supports the local economy but also reduces your carbon footprint. Local ingredients are often fresher and can inspire seasonal menus.

Also, consider the sustainability of your operations. This could involve using eco-friendly packaging, reducing energy consumption, or even installing water-saving devices.

Communicating your sustainability efforts to your customers can also enhance your brand’s image and attract environmentally conscious patrons.

Innovative and Integrated Marketing Strategies

In today’s digital age, effective marketing is crucial for any business.

Utilize social media platforms to engage with your audience. Share behind-the-scenes glimpses of your kitchen, showcase your signature dishes, and highlight your team. This not only promotes your offerings but also builds a connection with your guests.

Email marketing is another powerful tool. Regular newsletters can keep your guests informed about new menu items, special events, or promotions. Personalized emails on birthdays or anniversaries can make your guests feel special and encourage repeat visits.

Don’t overlook the power of community involvement. Participate in local events, collaborate with other businesses, or sponsor local sports teams. This can increase your visibility in the community and build goodwill.

Financial Health and Diversification

Keeping a close eye on your financials is crucial.

Regularly review your costs and revenues and look for ways to optimize them. This might involve renegotiating supplier contracts, adjusting menu prices, or reducing unnecessary expenses.

Consider diversifying your revenue streams. This could include offering catering services, hosting private events, or selling branded merchandise.

These additional streams can provide a buffer during slower periods and increase your overall profitability.

Conclusion

As we look forward to 2024, let’s embrace the opportunities and challenges that come our way.

By using downtime strategically, setting clear priorities, and striving for excellence continuously, we can ensure that this year is not just successful but also fulfilling.

Remember, in the dynamic world of foodservice, adaptation and innovation are key. Let’s make this year a celebration of our culinary passion, business acumen, and commitment to our guests.

Here’s to a year of delicious discoveries and unparalleled success in the culinary world!

Image: 愚木混株 cdd20 on Unsplash

Eight ball floating against black background

December 26, 2023by David Klemt David Klemt No Comments

2023 KRG Recap: Top 8 News Articles

2023 KRG Recap: Top 8 News Articles

by David Klemt

We’re kicking off our annual year-in-review article roundup by gathering the top eight news articles of 2023, which address an array of noteworthy developments.

For example, you’ll find a “Big Game” cocktail promotion, SevenRooms innovations, award winners, and legislation affecting our industry.

We look forward to sharing hospitality news with you as it breaks in 2024.

Cheers!

Ocean Casino Resort Offers Big Game Cocktails

Ocean Casino Resort, Atlantic City’s award-winning oceanfront casino and resort, is ready for the Big Game with four cocktails that team with the theme.

Now, by “Big Game,” we all know what I’m talking about. We know the sport, we the know the league, and we know precisely which game is under discussion.

However, due to very “enthusiastic” attorneys, we also have to talk like we’re spies or actors in a mob movie. We wouldn’t want to tempt anyone to file a lawsuit now, would we?

And I’m going to encourage you to continue following this childish way of speaking about the Big Game. When you’re promoting your Sunday, February 12 event, don’t use any trademarked terms, logos, images, etc.

Alright, the Big Game legalese is out of the way. Let’s talk themed cocktails!

Big Game Cocktail Inspiration

Midway through last year, Ocean Casino Resort showed us all their marketing prowess. When news of the Choco Taco’s demise made headlines, Ocean created a cocktail homage: the Chocotini.

To ensure the LTO could be enjoyed by most guests, the cocktail was available at four venues on the property.

Now, Ocean Casino Resort is tackling the Big Game. (Note: I’m legally required to include sports puns when writing about any major game.)

Guests have four specialty LTO cocktails from which to choose. Two representing the team from Philadelphia, two for the team in Kansas City. Each drink is available at venues throughout the casino resort, including their Topgolf Swing Suite (largest in America), Nola’s Bar & Lounge, and the Gallery Bar Book & Games.

In news that should appeal to you and your bar team, these drinks are quick to make. That’s a relief when you plan to be slammed on a particular day.

Of course, you don’t have to attempt to replicate these cocktails. They serve as excellent inspiration to motivate you and your team to come up with your own liquid homages and LTOs.

In case you’re wondering what to charge, Ocean is charging $14 each for the Brotherly Love, Hurts So Good, and Big Red cocktails. The Arrowhead carries a price tag of $15.

Click here to continue reading.

What’s up with the Restaurant Revitalization Tax Credit?

If you’re wondering what’s going on with the Restaurant Revitalization Tax Credit bills in the House and Senate, you’re probably not alone.

And if you find yourself wondering about them, that’s likely because there isn’t much news about the bills. Unfortunately, it appears that no meaningful progress has been made on HR 9574 or S.5219.

A quick check shows that both bills share the same status: Introduced. As for the House bill, HR 9574, that was introduced on December 15, 2022 by Representative Earl Blumenauer (D-OR). The Senate bill, S.5219, was introduced by Senator Benjamin Cardin (D-MD) on December 8, 2022.

It’s important to note that Sens. Cardin, Patty Murray (D-A), and Sherrod Brown (D-OH) reintroduced S.5219 in January of this year. However, that apparently didn’t mean much as the Congress.gov trackers show no progress.

Last year, some opined that neither bill would receive a vote until January 2023 at the earliest. That “prediction” has proven true, of course—it’s now the end of March.

Restaurant Revitalization Tax Credit Act Summary

Let’s take a quick look at HR 9574 and S.5219.

Both bills propose a $25,000 payroll offset for restaurants. Eligibility requirements are also identical: applicants must have applied for but not awarded a Restaurant Revitalization Fund grant.

Additional, eligible applicants are:

restaurants with operating losses of at least 30 percent in 2020 and 2021 in comparison to 2019; or
restaurants with losses of at least 50 percent in either 2020 or 2021 in comparison to 2019.

So, those are elements that both the Senate and House bills share. What about the differences between the two bills?

Mainly, differences come down to the number of employees. For S.5219, restaurants with ten employees or fewer could be eligible for the maximum payroll tax credit. That credit, as a reminder, is up to $25,000 for 2023. For every employee over ten, the refund cap drops by $2,500.

Now, HR 9574. Restaurants with ten or fewer employees would receive the full $25,000 payroll tax offset. For restaurants with between 11 and 20 employees, the offset would be “partially refundable.”

Keep reading here.

EHI and Danny Meyer Invest in SevenRooms

SevenRooms is showing no signs of resting on their laurels, announcing a major new investor: Enlightened Hospitality Investments.

EHI, a private-equity fund, traces its launch back to 2016. The fund, launched by and affiliated with Union Square Hospitality Group, typically makes investments in the $10-25 million range. Generally speaking, EHI makes non-control investments.

As you’re likely well aware, USHG’s founder and executive chairman is none other than restaurateur Danny Meyer. The Shake Shack chairman is also the managing partner of EHI.

Investment in SevenRooms by EHI—and by extension Danny Meyer—is huge news. Meyer now joins other high-profile chef and restaurateur investors in SevenRooms:

Chef José Andrés
Chef Thomas Keller
Jeremy King
Chef Michael Mina
Chef Wolfgang Puck

“At EHI, we always pay close attention to transformative tech that advances high touch,” says Meyer. “Far more than a reservations platform, SevenRooms provides abundant tools to create highly customized guest experiences and equips both restaurant and hotel teams to do what they do best—deliver truly memorable hospitality.”

A Group of Senators has Questions About ServSafe

The National Restaurant Association and the ServSafe program are now in the crosshairs of a group of Democratic senators.

I doubt any organization or individual wants to learn that lawmakers have questions for them. For those who may not know, ServSafe isn’t just in a partnership with the National Restaurant Association—the NRA owns the program.

That’s part of why six senators, led by Sen. Elizabeth Warren (D-MA), have sent a letter to the NRA. To describe the tone of this letter in one word, I think “aggressive” is accurate.

For more, including the text of the letter, click here.

The 50 Best Bars in North America in 2023

The buildup toward this year’s World’s 50 Best Bars is growing with the recent announcement of North America’s 50 Best Bars.

Mexico City, the 2023 North America’s 50 Best Bars host city, is home to several of this year’s rankings. A true cocktail destination loaded with extraordinary bars, Mexico City boasts eight entries. Overall, 14 of the 50 bars on the 2023 list are in Mexico.

Of course, New York City also claims an impressive number of bars earning spots on the list. In fact, NYC boasts 12 of the 50 best bars in North America. More than half of the bars—28—are in the US.

Not that anyone asked, two of the bars on the 2023 list are in the city where I was born, Chicago: Kumiko and Milk Room. And I’m going to give a special nod to Herbs & Rye, number 27 and located in my hometown of Las Vegas (and the US headquarters of KRG Hospitality).

Of the 50 best bars in North America, Canada is home to seven. Four of these are in Toronto (where KRG Hospitality’s global headquarters are located), two are in Montreal, and one is in Vancouver.

Just one bar in the Caribbean makes the 2023 North America’s 50 Best Bars list. But what a bar: La Factoría is number 24.

Below you’ll find this year’s rankings; destination awards; and individual awards. Speaking of, congratulations to Julio Cabrera and Christine Wiseman! You’ll see why as you scroll. To review last year’s list, please click here.

Congratulations to all the bars and their bar teams representing the best of North America in 2023!

You can review the list here.

The 2023 HD Award Finalists and Winners

As one would expect, the finalists and winners of the 2023 Hospitality Design Awards are a stunning collection of brands from which operators should pull inspiration.

Anyone looking for cutting-edge hospitality design would do well to look into each of the winners and finalists below.

The full list of award finalists and winners, and the architecture, interior design, and purchasing firms (along with owners and operators) can be found on the Hospitality Design website. Just click this link for the full details.

For our past coverage of the HD Expo, please click here.

Lifestyle Hotel

Winner

Ace Hotel Sydney (Sydney, New South Wales, Australia)

Architecture Firm: Bates Smart, Melbourne
Interior Design Firm: Flack Studio (hotel), Melbourne
Owner: Golden Age Group
Operator: Ace Hotel Group
Purchasing Firm: Marques Interior Services

Finalists

Canoe Place Inn & Cottages (Hampton Bays, New York)

Our Habitas San Miguel (San Miguel de Allende, Guanajuato, Mexico)

Sisan·Shuanglang Hotel (DaLi, YunNan, China)

Fan Woods Hotel (Zhangjiakou City, Hebei Province, China)

Lifestyle Hotel Public Space

Winner

The Tampa EDITION

Architecture and Interior Design Firms: Morris Adjmi Architects, and ISC Design Studio, New York
Owner: Strategic Property Partners
Operator: Marriott International
Purchasing Firm: The Parker Company

Finalists

Ace Hotel Sydney (Sydney, New South Wales, Australia)

The Standard (Hua Hin, Thailand)

Luxury Hotel

Winner

The Londoner (London, England) United Kingdom)

Architecture Firm: Woods Bagot, London
Interior Design Firm: Yabu Pushelberg, New York and Toronto
Owner and Operator: Edwardian Hotels London

Finalists

Wildflower Farms, Auberge Resorts Collection (Gardiner, New York)

Kimpton Bamboo Grove Suzhou (Suzhou, Jiangsu, China)

Luxury Hotel Public Space

Winner

The Madrona (Healdsburg, California)

Architecture Firm: Strening Architects, Santa Rosa, California
Interior Design Firm: Jay Jeffers, San Francisco
Owners: Jay Jeffers, Kyle Jeffers, and investors
Operator: Mosaic Hotel Group
Purchasing Firm: Summa International

Finalists

The Madrid EDITION (Madrid, Spain)

Pillows Maurits at the Park (Amsterdam, Netherlands)

Wildflower Farms, Auberge Resorts Collection (Gardiner, New York)

Click here for the full list of finalists and winners.

Credit Card Competition Act, Take Three

Here we go again: Bipartisan lawmakers in the House and Senate are taking another shot at the Credit Card Competition Act.

After the incredibly underwhelming progress of the Credit Card Competition Act of 2022, lawmakers are making another move. Now, a bipartisan effort is coalescing around the Credit Card Competition Act of…2023.

The “new” bill was introduced on June 7. On the Senate side, Senators Dick Durbin (D-IL) and Roger Marshall (R-KS) are trying to push the bill forward. In the House, Representatives Lance Gooden (R-TX) and Zoe Lofgren (D-CA) are driving the effort.

Roughly eight months ago it was revealed that 1,802 merchants drafted, signed, and sent a letter to the House and Senate. To summarize quickly, the merchants were pushing for the bill to become law. Another supporter of the CCCA? The National Restaurant Association, claiming that the bill could save merchants $11 billion a year in fees.

Of course, a lot is going on since the introduction of the CCCA of 2022. For one, it’s being widely reported that House Republicans are “revolting,” blocking bills and effectively paralyzing the chamber. There’s also the matter of the second indictment of a former president.

However, reporters who know far more than I about the inner workings of Congress seem optimistic. While there’s drama in the lower chamber, there are articles circulating that seem to think the CCCA of 2023 has enough bipartisan support to pass.

Continue reading here.

Asia’s 50 Best Bars 2023 Revealed: 51 to 100

One week from the ceremony revealing bars one through 50 of Asia’s 50 Best Bars, the World’s 50 Best Bars announces venues 51 to 100.

Sponsored by Perrier, the World’s 50 Best Bars will announce the top 50 bars in Asia on Tuesday, July 18. This year’s ceremony will take place in Hong Kong at 20:25 local time.

However, we now know which bars have earned placement on the back half of this year’s list. As Mark Sansom, director of content for the World’s 50 Best points out on episode 82 of Bar Hacks, an expansion for their lists is necessary. There are simply too many outstanding operators and teams to not honor an additional 50 venues.

To that end, the list below represents the third edition of Asia’s 50 Best Bars, 51 to 100. In my opinion, and I think the World’s 50 Best and bar professionals across the world agree, this list is every bit as prestigious as one through 50. Let’s not downplay the fact that these are 50 of the best bars in all of Asia. It’s no small feat to earn a spot on this list.

If you’re interested in finding more amazing venues throughout Asia (and around the world), click here to learn about the World’s 50 Best Discovery tool.

By the Numbers

As you’ll see below, Singapore dominates this year’s 51 to 100 list with eight bars. I expect Singapore pick up even more spots next week.

Japan boasts seven bars on the list, with Osaka, Okinawa, and Kumamoto making debuts. Hong Kong, Taiwan, and India each have claim five slots. Bangkok and Kuala Lumpur are also well represented with four bars each.

Vietnam and China each have three bars among this year’s 51 to 100. Two bars in Seoul, South Korea, earned placement as well.

However, it’s Kathmandu, Nepal, with two bars that stands out the most to me. Numbers 100 and 70 belong to Kathmandu, and are both new to the list.

To review the list on the World’s 50 Best website, please click here.

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Image: Mediocre Studio on Unsplash