tips | KRG Hospitality

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September 5, 2024by David Klemt David Klemt No Comments

15 Years of Consulting: Lessons Learned

15 Years of Consulting: Lessons in Adaptability, Innovation, and Resilience

by Doug Radkey

Note: AI-generated image.

I made a life-altering decision to start consulting in August of 2009, and over the past 15 years I’ve accumulated more than 30,000 hours of experience.

Over the past 15 years and the span of those tens of thousands of hours, I’ve contributed to the creation of more than 270 new concepts. Further, these concepts boast a long-term success rate of over 98 percent.

Reaching these achievements, along with fifteen years in business, hasn’t been easy.

There have been many ups and many downs, just like any other business. There are times of standing high on a mountain, and times of wanting to throw in the towel.

One key element I have learned over the years is that success goes far beyond having a great vision and concept; it requires passion, precision, and execution.

This journey has been filled with pivotal moments, and by what I can boil down to as three fundamental and invaluable lessons in adaptability, innovation, and resilience. Each of those lessons are now rooted in KRG Hospitality’s core values of being creative, cultivated, and connected.

The lessons I’ve learned over the course of 15 years and more than 270 new concepts can help you and your business start, stabilize, and scale.

The Power of Adaptability

Adaptability in business refers to the ability to adjust and respond to changing circumstances, market conditions, and guest expectations. It is the capacity to pivot strategies, embrace new technologies, and innovate to stay both relevant and competitive.

For me, adaptability has meant developing a mindset of openness to change and a willingness to experiment with new approaches.

It is not just about reacting to changes as they happen but anticipating shifts in the market proactively, while preparing to meet new challenges. In business, this means being flexible in your operations, resilient in the face of adversity, and innovative in problem-solving.

An adaptable hospitality business is one that can adjust its offerings quickly, refine its services effectively, and even overhaul its business model if necessary. As importantly, such a business can accomplish all of that without any long-term disruption to its profit channel.

To embrace adaptability, you must foster a culture that values learning and continuous improvement. This involves encouraging your employees to share their ideas and feedback, experimenting with new systems, technologies and processes, and being open to constructive criticism.

It also requires a deep understanding of the market and guest needs, allowing your business to pivot swiftly and efficiently when necessary.

Adaptability is also about having a growth-based mindset. This type of mindset involves seeing challenges as opportunities for growth rather than obstacles. By being adaptable, your business can stay ahead of the competition, meet changing guest expectations, and capitalize on new opportunities.

In a world where change is the only constant, embracing adaptability is not just an option, it’s a necessity for long-term success. As entrepreneurs, cultivating this trait can lead to innovative solutions, greater efficiency, and a more sustainable long-term business model.

Embracing Innovation

Embracing innovation is about thinking creatively, challenging the status quo, and finding novel solutions to existing problems.

In this industry, innovation can manifest in various forms, such as adopting new technologies, offering unique guest experiences, or implementing sustainable practices. As an entrepreneur and leader in this industry, embracing innovation is crucial for staying relevant.

You will begin to see here how each of these lessons truly go hand in hand. For me, however, innovation goes beyond mere invention; it involves applying new concepts and ideas in practical and impactful ways.

In hospitality, innovation can be product-driven, such as developing a new menu item or room service feature. Or it can be process-driven, such as streamlining operations through a new technology integration. Innovation can also be guest-centric, focusing on enhancing the overall guest experience through personalized services or tailored offerings.

For example, the introduction of mobile check-in and digital concierge services in hotels revolutionized the guest experience, offering convenience and personalization.

Similarly, restaurants have innovated by incorporating immersive dining experiences that engage all of our senses. These innovations not only attract new guests but also differentiate a business in a crowded marketplace.

How to Embrace Innovation

To embrace innovation, your business must cultivate a culture that encourages creativity and experimentation. This involves creating an environment where employees feel empowered to suggest new ideas, and are not afraid to take risks.

Leadership plays a critical role in setting the tone for innovation, providing the necessary resources, and fostering an open-minded atmosphere.

One practical way to embrace innovation is to stay up to date about industry trends and technological advancements. Attending industry conferences and participating in webinars and mastermind groups can provide valuable insights and inspiration.

Additionally, businesses in this industry should invest in research and development (R&D) to explore new opportunities and test innovative concepts.

Finally, embracing innovation requires a willingness to adapt and iterate. Not every new idea will be successful, but the process of trying, learning, and refining is critical for continuous growth.

Your business should establish mechanisms for evaluating the effectiveness of new initiatives, and be prepared to pivot when necessary.

Fostering a culture of creativity, staying informed about trends, and actively seeking new opportunities helps your business innovate in ways that enhance the guest experience, and drive long-term financial success.

Driving Resilience

Resilience in business refers to the ability to withstand and recover from challenges, setbacks, and unexpected changes. It involves maintaining stability and continuity while adapting to new circumstances.

In further business context, this includes the ability to manage financial pressures, operational disruptions, shifts in consumer behavior, or even personal setbacks. Resilience also encompasses the mental and emotional strength to stay focused and positive in the face of adversity.

Resilient businesses are not immune to problems; rather, they are equipped to handle them effectively, and learn from the experience.

In my experience, you must be willing to prioritize building strong relationships with guests, community partners, and industry peers in order to embrace innovation. These connections provide a support network that can offer assistance, advice, and resources during tough times. Collaborations with local businesses and partnerships with suppliers can also provide you with a critical support line.

Real-World Resilience

Personal anecdotes often serve as powerful illustrations of resilience, providing real-world examples of overcoming adversity and demonstrating the strength required to persevere. Real-life examples show that resilience is not just an abstract concept but a practical quality that can be developed and applied in everyday life.

These stories often detail the emotional, mental, and physical hurdles faced, and the strategies used to overcome them.

For example, a story about recovering from a business failure can illustrate the importance of maintaining a positive mindset, and seeking new opportunities. Perhaps it is a career setback, a health challenge, or a natural disaster. Regardless, these personal stories often include reflections on the lessons learned from facing adversity.

These reflections can range from practical advice, such as the importance of planning and preparation, to emotional insights, such as the value of gratitude, and the strength found in vulnerability. Stories of resilience serve as a reminder that setbacks and challenges are a natural part of life, and that it is possible to overcome struggles with determination and support.

Lastly, building resilience also involves cultivating a positive and proactive mindset. It’s imperative to view challenges as opportunities to innovate and improve. This can mean reevaluating business models, exploring new revenue streams, or investing in your people for further training and development.

Resilient businesses are not just reactive, they are proactive in anticipating potential issues and preparing for them. By building strong relationships, learning from setbacks, and maintaining a positive outlook, your business can navigate challenges and emerge stronger.

Core Values in Action

Core values are the fundamental beliefs and guiding principles that shape the culture, decision making, and identity of your business. They are the compass that directs the actions and attitudes of everyone within your organization, from leadership to frontline employees.

In the hospitality industry, core values are particularly crucial as they also define the guest experience and set the tone for interactions with guests, employees, partners, and the community.

For entrepreneurs and leaders in this industry, developing and embracing core values is crucial for creating a cohesive and purpose-driven business. Core values not only guide strategic decisions but also inspire and motivate the team, ensuring alignment with the mission and vision.

Over the past 15 years, our journey in the industry has been guided by these three core values: Creative, Connected, and Cultivated. These values have aligned perfectly with the lessons I’ve learned and shared about being resilient, innovative, and adaptable.

Our Core Values

Creativity is at the heart of innovation. It involves thinking outside the box, challenging conventions, and finding unique solutions to problems.

In the hospitality industry, creativity is needed for differentiating a brand and providing memorable experiences. Our creative approach has allowed us to design distinctive concepts, develop engaging strategies, and craft personalized staff and guest experiences.

Embracing creativity means exploring new ideas constantly, and staying open to unconventional approaches.

Being connected refers to fostering strong relationships with guests, community partners, and industry peers. It’s about building a network of support and collaboration that extends beyond the business itself.

In times of adversity, these connections have been invaluable. Whether it’s partnering with local businesses during economic downturns or engaging with guests through personalized communication, staying connected has helped us navigate challenges and seize on potential opportunities.

Lastly, cultivation is the process of continuous growth and improvement. It involves nurturing talent, refining processes, and striving for excellence.

In our experience, being cultivated means committing to lifelong learning, and embracing a growth-based mindset. This value has driven our dedication to professional development, the quality in our deliverables, and operational efficiency.

To embrace core values, your business must integrate them into every aspect of operations. This includes staff onboarding practices, guest interactions, and strategic decision making. You and your leaders should model these values and encourage employees to do the same.

Demonstrating and reinforcing your core values consistently allows you to create a strong, unified culture that resonates with both employees and guests.

And the end of the day, you have to remember that core values provide direction, inspire action, and foster a sense of purpose.

Conclusion

As I sit back and reflect on the lessons learned from 15 years of consulting in the hospitality industry, it’s clear that the journey has been shaped by the powerful forces of adaptability, innovation, and resilience.

These experiences have not only defined our approach but have also laid the foundation for future endeavors. The hospitality landscape evolves continuously, with new challenges and plenty of opportunities on the horizon. From technological advancements to shifting guest preferences, the industry is truly poised for positive transformation.

Looking ahead, however, it’s crucial for businesses to remain flexible and open to change.

For us, continuing to embrace adaptability means staying agile in the face of uncertainty, and being ready to pivot when necessary. Innovation will continue to play a pivotal role, driving new concepts and experiences that set businesses apart.

Resilience, as always, will be the foundation that supports us through trials and tribulations, ensuring that we meet the characteristics needed to win.

I strongly encourage you to internalize these three qualities in your own journey. Whether you’re an entrepreneur, a coach or consultant, or an industry professional, integrating them into your own set of core values—be it creativity, connection, cultivation or any other set of values—will anchor you in your pursuit.

These values are not just guiding principles but also a source of strength and inspiration.

Embracing adaptability, innovation, and resilience, and staying true to our core values, has made us confident in navigating this ever-changing terrain with purpose over the next 15 years.

Who’s with us?

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August 5, 2024by David Klemt David Klemt No Comments

5 Books to Read this Month: August 2024

5 Books to Read this Month: August 2024

by David Klemt

Our August book selections focus on the 2024 Spirited Award finalists and winner of the 2024 Best New Cocktail or Bartending Book.

These books cover an array of topics, from mastering ice and drink ratios to foraging for botanical cocktail ingredients.

To review the book recommendations from July 2024, click here.

Let’s jump in!

The Ice Book: Cool Cubes, Clear Spheres, and Other Chill Cocktail Crafts

The winner of the 2024 Spirited Award for Best New Cocktail or Bartending Book. This is much more than just a guide for making crystal clear ice cubes or sphere. While that’s certainly a focus, The Ice Book includes tips on embossing and branding ice, creating huge slabs, and even making ice bowls for punches and other large-format drinks. Truly, this book will help you master ice.

From Amazon: “In The Ice Book, internationally renowned cocktail icepert Camper English details how to use directional freezing to make perfectly pure ice in a home freezer, carve it up into giant diamonds and other shapes, and embed it with garnishes, including edible orchids and olives. You’ll learn how to create a frozen bowl for Negroni punch, serve a Manhattan inside an ice sphere, and infuse cubes with colors and flavors to create cranberry cobblers, a color-changing Gin and Tonic, and other awesome drinks.”

Grab this book now.

Slow Drinks

With a shift in mindset you’ll likely notice the incredible world of cocktail ingredients at your fingertips during something as simple as a walk around your neighborhood. The author of this book, Danny Childs, is an ethnobotanist who can guide you through that change. Further, this informative book is more than just a list of botanicals you can grow and forage. You’ll learn how to pickle, infuse, and even ferment, taking your cocktail creation to incredible new heights. If there was ever an excuse to start and maintain a garden dedicated to your bar team, it’s picking up this book.

From Amazon: “Organized by season, Slow Drinks teaches home cooks, industry pros, homebrewers, and foragers how to transform botanical ingredients—whether gleaned, grown in the garden, or purchased from the store—into singular beverages and cocktails. With transporting photography and gorgeous color illustrations, Slow Drinks is the definitive guide to backyard mixology that can live just as comfortably in your basket on a foraging trip, as it can on the coffee table as a conversation piece.

Click here for the hardcover.

Tropical Standard: Cocktail Techniques & Reinvented Recipes

What if a bartender married modern cocktail-crafting techniques to dozens upon dozens of classic cocktail recipes? Well, odds are they’d be Garrett Richard, bar manager of Sunken Harbor Club. And documenting this marriage would be drinks author Ben Schaffer.

When it comes to drinks, some bartenders feel the original variants are sacred; techniques, ratios, and ingredients aren’t to be altered. However, there’s no reason classics can’t be honored and built in more modern ways, for modern palates.

From Amazon: “Crucial techniques are clearly detailed, including how to balance syrups, flash blend, handle carbonation, tackle tinctures, cordialize citrus, and power up juice with acid adjusting. Over the course of 84 recipes, vintage cocktails like the Rum Barrel, Mai Tai, and Ray’s Mistake are reimagined just as future classics are revealed, including the Beachcomber Negroni, Winter in L.A., and Field of Mars. These drinks honor founding legends such as Donn Beach, Trader Vic, and Harry Yee as well as modern icons, including Dale DeGroff, Audrey Saunders, Julie Reiner, and Dave Arnold.”

Pick it up here.

The Book of Cocktail Ratios: The Surprising Simplicity of Classic Cocktails

Speaking of cocktail ratios…this is your book if you and your bar team want to achieve a deeper understanding of balance. If you think about it for a moment, you’ll understand the importance than ratios and balance have on a cocktail. It goes beyond ensuring a particular drink tastes great. And it goes further than guaranteeing consistency. Shift one ingredient enough and you’re not just altering the taste, you’re likely making a different drink entirely. As author Michael Ruhlman points out, a Gimlet, Daiquiri, Bee’s Knees are the same cocktail; it’s the ratios that separate them.

From Amazon: “As Michael Ruhlman explains, our most popular cocktails are really ratios—proportions of one ingredient relative to the others. Organized around five of our best-known, beloved, classic families of cocktails, each category follows a simple ratio from which myriad variations can be built: The Manhattan, The Gimlet, The Margarita, The Negroni, and the most debated cocktail ever, The Martini.”

Order yours now.

Hacking the New Normal: Hitting the Reset Button on the Hospitality Industry

Doug Radkey‘s followup book to Bar Hacks! The world around us has changed. The food and beverage industry has changed. The hospitality industry has changed. But will some ways of life change for the better? Will perhaps the restaurant, bar, and hospitality industry come out even stronger? With the right changes to the previous status quo, it is possible. There’s no question, resets are major undertakings, but a major reset will provide us with a clean start and that’s what this industry needs.

From Amazon: “Whether or not you’re a hotelier, restaurateur, bar owner or a front-line staff member—this book will position you for success in the new normal. With a spotlight on hybrid business models, real estate, profit margins, technology, guest experiences, culture, diversity, and mindset, Hacking the New Normal is the guidance you need.

Click here to pick your copy up today.

Image: Mikołaj on Unsplash

A well-crafted chicken sandwich with pickles, lettuce, and sauce, served next to a basket of French fries

July 29, 2024by David Klemt David Klemt No Comments

Campbell’s Shares Tips for LTOs

Campbell’s Shares Tips for LTOs that Generate ROI

by David Klemt

Yes, the Chicken Sandwich Wars are still going strong in 2024.

We appreciate Campbell’s Foodservice’s reports and posts, and their most recent insights address how operators can succeed with LTOs.

For example, our look into their tips for leveraging nostalgia is here. And our thoughts on Campbell’s Culinary TrendPulse 2024 report are here for your review.

This time out, Campbell’s Foodservice, utilizing data from Technomic, Datassential, and other sources, is tackling LTOs.

If you’re a regular reader of KRG Hospitality’s industry insights, you know we love an LTO—if an operator executes it effectively. Along those lines, you probably also know that we view Taco Bell as a leader in the industry when it comes to leveraging the power of LTOs.

Not only does the QSR giant know what their guests want, they know how to generate demand. In fact, Taco Bell understands the power not just of LTOs but of tying them to their subscriptions. Take, for example, their Taco Lover’s Pass and the Toasted Breakfast Taco menu drop.

When approached with thoughtful consideration, well-executed LTOs are a crucial element of an operator’s marketing and branding strategy. They drive traffic and sales, boost guest engagement and loyalty, and attract attention from first-time guests.

Of course, crafting a gainful LTO—gaining profits, loyalty, and positive public perception—can be easier said than done. However, there are a number of steps you can take to get the ball rolling and come up with one that reflects your brand, and resonates with guests.

Four Steps

Kicking off their tips, Campbell’s Foodservice recommends keeping LTOs simple. As they say in their report, which you can read here, operators need not “reinvent the wheel” when developing these promotions.

You can differentiate an LTO menu item from its standard counterpart in a number of simple ways. A few examples are using a unique cooking process, crafting a limited-edition sauce, and featuring a distinctive and specific topping or two.

Another tip is to do your best to offer LTOs that embrace current trends. While sharing these tips, Campbell’s cites Datassential and the revelation that just 20 percent of all LTOs are recurring. That means that the vast majority of LTOs are new creations, not stalwarts like the McRib. To draw the attention of a wider swath of guests, feature regional and local items and flavors. Per Datassential, 70 percent of guests are interested in such LTOs.

Speaking of attention, operators should learn how to take and edit attractive F&B images. Or, as Campbell’s says, “make LTOs pretty.” Per Datassential, roughly a third of consumers will try an LTO if it looks appealing in an advertisement or in-store imagery.

Finally, and this one is crucial as it embodies the previous three tips, leverage seasonality. It’s currently summer, so what can you add in the way of flavor to an existing item? Is that item regional and locally sourced? Will photographing it and crafting a sharp post communicate the season and inspire a bit of FOMO? These questions can help guide your approach to crafting profitable LTOs.

Oh, and to help you get started, I’ve shared Campbell’s season flavor suggestions below. Cheers!

Campbell’s Foodservice Seasonal Flavors

Not only did Campbell’s share tips for succeeding with LTOs, they also provided several examples of seasonal flavors to inspire you and your team.

Since it’s July, I’ll start with their summer suggestions.

Summer: basil, blackberries, corn, cucumbers, peaches, tomatoes, watermelon, zucchini

Fall: artichokes, cranberries, edamame, parsnips, pears, pumpkin, sweet peppers, tomatillos, turnips,

Winter: butternut squash, persimmons, radishes, salsify (a root vegetable), sunchokes, sweet potatoes, tangerines

Spring: asparagus, fava beans, pea greens, rhubarb, snap peas, spring onions, strawberries

Campbell’s Foodservice sources:

Foodservice and Hospitality: A strong LTO strategy helps operators retain and grow their customer base (March 2024)
Datassential: Limited Time Offers Keynote Report
Technomic: 162 Best-in-Class LTOs for 2023
Food & Drink Resources: A Limited Time Offer Strategy For Restaurants
Your Guide to Seasonal Fruits and Vegetables, The Spruce Eats
Datassential: State of the LTO 2024

Image: Hybrid Storytellers on Unsplash

Restaurant host or manager holding menus and leading guests to their table

July 8, 2024by David Klemt David Klemt No Comments

Welcome: Start the Experience Right

Welcome: How to Begin the Guest Experience Like a Pro

by David Klemt

When you think about the guest experience you and your team deliver, how much consideration do you give the welcome?

I don’t mean just the greeting your front-of-house team gives guests. That’s an important part of the equation, but it’s only one element.

Rather, I’m talking about developing SOPs for welcoming guests into your venue. As importantly, I’m also suggesting that you develop specific onboarding and training for anyone who will greet guests and lead them to their seats.

Luckily, one of the best front-of-house trainers in hospitality spoke at the 2024 Flyover Conference in Cincinnati about this topic. Bethany Lucas, director of operations for Maverick Theory, shared her best tips for starting—and ending—the guest experience in a memorable way.

The tips Lucas shared during her Flyover session “Untapped Potential: How to Transform Your Front of House” will indeed transform your business and guest experience.

Now, a word of warning before I begin. Once you read these tips, you’ll likely find yourself analyzing your next few restaurant visits. Ever since sitting in on Lucas’ session, I’ve been unable to avoid paying more attention to how my restaurant visits have begun.

This has included sharing what I’ve noticed with the people in my group. Some of these friends will also pay more attention to the greeting they receive when walking into a restaurant now.

If you’re an operator or front-of-house leader, you’ll probably benefit from checking out restaurants in your area for their welcome procedures.

Invest in Your Door

Operators need to invest in their doors, because “it really is the brain of your restaurant,” says Lucas.

Therefore, it’s crucial that owners and operators understand what’s going on at their doors. Assuming your front-of-house team knows how to greet guests rather than training them on a procedure is a mistake.

Most operators know that hiring the right leaders, kitchen team, servers, and bartenders is imperative to the success of their business. However, the same attention must be paid to finding the right hosts and hostesses.

As Lucas says, “There is no ‘just a hostess.'” Bluntly put, the person running the door is the gatekeeper of the business. They’ll interact with just about every single guest since they serve as the first touchpoint.

So, Lucas encourages operators to ask a number of questions before initiating the hiring process:

Are the ideal candidates formal and proper, or friendly and casual? (Or something else entirely.)
Will the ideal hosts and hostesses need to be thick-skinned?
When considering the appearance of the host team, what does that look like to you? Lucas seeks out people who are polished and professional when building her teams.

These questions should inspire even more considerations, helping an operator identify who they want to run their door.

Welcome

During her presentation, Lucas provided an example of a less-than-ideal welcome. I think we’ve all experienced what she described.

How often have each of us walked into a restaurant, been greeted, and then led to a table by someone who just takes off? The host or hostess grabs menus, starts walking away toward a table, doesn’t speak to you, and doesn’t even look over their shoulder to see if you’re still following them closely.

I know it’s happened to me more times than I can count. Although, I’m happy to report that this hasn’t happened to me since attending Flyover. Maybe what Lucas put out into the world has had a greater impact than she expected.

A polished and professional host or hostess, per Lucas, will not take off when leading guests to their seats. Additionally, they won’t be silent, failing to engage with the guest verbally. Further, a polished, professional host or hostess doesn’t drop menus on a table and rush back to the door.

In fact, Lucas requires each member of her host teams to ask at least one question of guests being led to their seats. This can be as simple, she explained at Flyover, as the host or hostess turning and asking “How are you today?”

It’s important to note that this attention to the door team isn’t reserved for upscale or fine-dining venues. The beginning and end of a guest’s visit are too important to fail to plan them properly. Regardless of concept and category of venue, guests must feel welcome and valued.

Farewell

According to Lucas, the farewell can absolutely impact how a guest perceives their visit, and the brand overall. While the server or bartender who served the guest should thank them at the end of their visit, so should the person who first welcomed them.

A simple “thank you for visiting us” can go a long way and serve as a cherry on top of the entire experience.

However, there’s another tip Lucas shared that has really stuck with me. A truly a savvy host team will add a question after they thank a guest for their visit: “Can I make a reservation for you for your next visit?”

Doing so requires the ability to read a guest and their satisfaction with their visit. However, if executed well this is a brilliant way to increase your guest retention rate and convert a first-time guest into a repeat guest, and eventually a regular.

If you’ve read this far, I encourage you to consider your welcome SOPs and door team today. You and leadership team should observe the door and note how guests are being welcomed.

If the procedure doesn’t impress you, it’s not impressing your guests. And if it isn’t impressing your guests, ask yourself why they’d return.

Your door isn’t “just a door,” and your hosts aren’t “just hosts.” Remember that, and plan accordingly.

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

Two people jogging through a city at sunrise, going in opposite directions

June 12, 2024by David Klemt David Klemt No Comments

Try, Try Again: Creating Positive Habits

Try, Try Again: Creating Positive Habits

by Jennifer Radkey

It turns out that some AI platforms aren’t good at telling time, so instead of an image of an alarm clock, here’s the 5 A.M. Club going for a jog.

Ever wonder why some people seem to effortlessly achieve their goals while others struggle? It’s all about the habits they have cultivated.

We all have great intentions to practice healthy habits that are good for our body, mind, and soul…but we face roadblocks in committing to them.

Do any of these thoughts sound familiar?

“How does she have the time to workout, run a business, take care of her family, and have hobbies? She must be part of that 5 A.M. Club. I could never do that; I’m not a morning person.”
“I wish I could post to social media daily. I know I could reach more potential customers if I do. I don’t know how to come up with that much content though.”
“I want to feel stronger. My friend has started strength training, and he seems so much more confident and happier, but I’m a cardio person.”
“I wish I could take a few courses, but I don’t have time for that.”

All of the statements above have one thing in common: They have already given up before even trying.

There’s a wish to become better at something, and then there’s an immediate shut down.

Here’s the thing—you don’t know that a habit will work for you or not until you try it.

You Have to Work at It

Experience eclipses all for learning about yourself. You tell yourself that you aren’t a morning person and you can never wake up at 5 a.m. But until you try it…how do you know that?

Developing new habits takes time and commitment. If you’re serious about making changes to your life and you know that certain habits will help you achieve that goal faster, you owe it to yourself to try.

On average it can take at least two months to actually form a new habit. Trying something for a week and deciding it’s not for you doesn’t do you, your goals, or the habit proper justice. Give things time.

If, after several weeks, you feel that the change really isn’t for you, no problem! At least you’ll know that it doesn’t work from experience, not from your limiting beliefs.

The same advice applies to your team. If you’re trying to encourage daily habits in the work environment, it’s going to take time before everyone’s consistently participating.

Yes, they’re going to need daily and weekly reminders. Yes, it’s going to take more than a week or two. If the habit you’re trying to implement will create a more efficient, successful business, it deserves time and commitment from you.

Mindset is contagious, just as action and inaction are contagious. If you want your team to adopt a new habit, you and your leadership team must show up and participate in the habit as well.

Make it positive. Demonstrate the value of doing it. Have patience while your team practices the new habit.

Positive habits are the powerhouses behind personal and professional success. By consistently doing small things, you can create a ripple effect of positive change.

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

Graffiti of crossed chef's knives underneath a baseball cap that reads, "D.E.G."

May 27, 2024by David Klemt David Klemt No Comments

Chef Duffy x NRA Show: Live Menu Read

Chef Duffy x NRA Show: Live Menu Read

by David Klemt

Chef Brian Duffy crushed it in Chicago at the 2024 National Restaurant Association Show.

We’re sharing tips from Chef Brian Duffy‘s live menu reads at this year’s National Restaurant Association Show in Chicago.

These informative sessions are always standouts at industry trade shows and conferences. Both the operator who submits their menu anonymously and the audience gain valuable insight into menu programming and development.

In ten minutes or less, the Chef Duffy shares wisdom that’ll boost guest engagement; streamline and energize the kitchen; and help save on labor and food costs. And he won’t even Bar Rescue anyone who submits a menu. That is to say, no, he doesn’t yell at anyone while giving them tips for fixing their menu.

As Chef Duffy pointed out during his latest live menu reads, an operator’s menu has the potential to create generational wealth. However, it must be programmed properly for it to reach that potential.

So, ask yourself a question right now about your menu: Would you be proud for your menu, in its current state, to be plastered across a billboard? If not, I have another question for you: Why aren’t you taking the time to rectify that situation?

Your menu is your concept’s billboard. Treat it as such.

Oh, and one note for the NRA Show before we dive in: These sessions deserve at least two hours. One hour just isn’t enough given how impactful Chef Duffy’s live menu reads are for operators.

Menu Programming 101

There’s a logical reason why Chef Duffy is never short on menus to review. In fact, he addressed the situation directly at the 2024 NRA Show.

“Everybody has the same shit on their menu,” he stated frankly.

One explanation for why menus seem so similar makes a lot of sense.

“We’ve been told what to put on our menu buy our purveyors,” said Chef Duffy during his live menu read.

For the most part, operators are given the same product catalogs. These are circulated nationally, not regionally. So, everyone is ordering the same items. Clearly, Chef Duffy is fed up with this situation.

“We’re not here to do the same things that everyone else is,” declared Chef Duffy. “I don’t want to see that anymore.”

Menu #1: Sports Bar

This first menu featured a vibrant design that instilled a sense of patriotism. Chef Duffy theorized that he’d feel good spending time in this space, based on the menu’s appearance.

However, he wasn’t a fan of the layout of the menu. Taking up valuable real estate was a large catering ad, placed directly in the center.

In the top left were salads. “‘Add chicken to any salad,'” read Chef Duffy. “No shit. Why are we stopping at chicken? We can add anything to a salad.”

Based on his knowledge of food costs and the menu’s pricing, Chef Duffy deduced that the operator’s food costs were too high. In fact, he estimated that food costs were more than 31 percent. The burgers, he surmised, were running a 35-percent cost.

By the way, Chef Duffy always puts two slices of cheese on his burgers to fill the top out more. This delivers a more visually appealing experience, and a better bite.

On the topic of pricing, operators must maintain balance. For example, this first menu priced the addition of two slices of bacon at $3.50, but a chicken breast was six dollars. Two Chicago hotdogs cost more than a burger.

Menu #2: Breakfast Spot

Unfortunately, the operator committed one of Chef Duffy’s deadliest menu sins. There was a photo of the restaurant’s steak and eggs.

Worse, the image showed a rather large steak paired with a commodity egg. If this dish doesn’t leave the kitchen looking exactly like the picture, guests are going to be underwhelmed and unimpressed. Further, why are operators still trying to save money by buying commodity eggs?

However, there was a second deadly menu sin committed by the operator. Given the overall perception this menu delivered, the claim that at least one dish featured “wild-caught crab” didn’t ring true to Chef Duffy.

I’m confident in saying that I think lying on a menu may provoke Chef Duffy’s wrath more than a photo.

“If you lie to me on your menu, I will tear you apart,” he stated quite strongly.

That said, he did like the menu’s design (minus the photos). Even better, he recognized that there were several inventive spins on breakfast classics. Remember, “We’re not here to do the same things that everyone else is.”

Menu #3: Sports Bar

To be honest, I was expecting this type of menu. In fact, I thought it would be the first menu design encountered during this session.

Essentially, it was a collection of what everyone else has on their menus.

As an example, there were wings on the menu, and the sauces were anything but creative. Chef Duffy didn’t address it but they were also listed without commas, so they appeared to be one long, run-on sentence of a sauce.

The most glaring issues, however, were the pasta and the dessert. Both sections contained just a single item. That’s right—there was an entire section dedicated to one pasta dish. Moreover, it’s not like there were a number of modifiers one could select to personalize their pasta.

This was the item description underneath the dessert section (designated as “Closers”): “Dessert of the week – $8 Please ask your server for details.” There’s a significant issue with that description and placement, as identified by Chef Duffy.

If a menu includes desserts, the guest is likely going to forget about them after they’ve ordered their starter and entree. It’s far more effective to have a dessert tray or cart and train your servers to suggest dessert when they touch the table toward the end of the meal.

Takeaways

Chef Duffy throws in more tips during a single menu read than most people would expect.

Below are some of the takeaways that make his live menu reads so insightful:

Only list name brands if they come from a local farm. This approach shows that an operator cares about supporting local producers and is part of the community.
Use the best ingredients for the specific concept.
If a restaurant features housemade buns for burgers and/or bread for sandwiches, they should offer a version as an appetizer. Really make this idea shine by also offering housemade specialty butters.
Operators that have chips on their menus should use the crumbles and “dust” to make breading for other items. After all, the chips have been paid for already—use all of them.
It’s better and more impactful to have 25 items on a menu that are executed perfectly than 50 items that are executed poorly.
Chef Duffy doesn’t agree with omitting prices from menus. “Why? Are we negotiating? Are we negotiating before I place my order?”

Connect with Chef Duffy on Instagram, and learn more about him on the Duffified Experience Group website.

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

May 24, 2024by David Klemt David Klemt No Comments

Want to Leverage Nostalgia? Spin It

Want to Leverage Nostalgia? Put Your Spin on It

by David Klemt

A recent report from Campbell’s Foodservice—along with supporting data from external sources—supports what many operators assume about food trends.

Our dive into Campbell’s Culinary TrendPulse 2024 report is here for those who want to take a look. Anyone who wants to download a copy of the report for themselves can click here.

However, I’m referencing a fresh, quick-hit report from Campbell’s. While it only takes a handful of minutes to read, it’s chock-full of useful insights.

In particular, this latest menu trend analysis looks into succeeding with nostalgia. Citing a study from Symrise in their post, 70 to 76 percent of guests ages 22 to 65 cherish nostalgic items.

Put simply, that translates to a truth most operators know: guests of all ages like comfort foods. This really doesn’t need much explanation. Comfort foods are—insert shocked Pikachu face here—comforting. And I think we’re all seeking comfort these days.

So, yes, operators should—in an authentic manner—speak to and fill this guest desire. Authentically in this context means putting comfort foods on the menu that make sense. Doing this successfully requires menu programming that fits with the brand and within the venue’s theme. It also necessitates really knowing your guests and what they expect.

For example, will a particular restaurant’s guests find mac and cheese comforting? Will they stop scanning the menu when they come across pozole? What about cacio e pepe or beef braciole? How receptive will they be to sukiyaki?

A sharp operator should know their guests’ tastes better than just about anyone. Therefore, they should know what foods they’ll find comforting.

However, there’s another way to succeed with nostalgia and enhance the guest experience.

“New” Nostalgia

There are a couple of ways to interpret the term “new nostalgia.”

One way is to tap into what foods, generally speaking since they’re not monoliths, different generations view as comfort foods. This can be something as simple as a certain candy or beverage from their childhood.

Another way is for an operator and their kitchen team to take a nostalgic dish and put their own spin on it. Using candy as an example again, a scratch-made interpretation of a treat to create a dessert may work.

Consider, as a real-world model for this approach, the Chocotini that Oceans Resort Casino featured toward the end of August in 2022. This was a direct response to the news that Klondike had retired the Choco Taco, a nostalgic treat for millions of people spanning multiple generations.

Of course, operators can also cross-utilize items to craft new menu items that tap into the craving for nostalgic comfort foods. These dishes can be permanent additions, seasonal menu updates, or LTOs.

Take a look at the image atop this article. Mac and cheese is a classic comfort dish. Now, feature it as a topping for a signature burger. That’s a prime example of new nostalgia.

Going farther, kitchen teams can combine nostalgia with another trend to get even more creative: global flavors. Are there tacos on the menu? Maybe bulgogi tacos featuring beef short rib, Korean slaw, and soy-lime dressing would resonate with guests.

I’m not saying anyone should menu these specific items. Rather, my aim here is to get operators and their kitchen and bar teams to put their heads together and create undeniable, irresistible takes on classics.

The key, again, is an understanding of the market, community, and guests. From there, it’s about getting creative and crafting dishes that guests can’t get anywhere else.

Image: Alex Haney on Unsplash

AI-generated diorama-style image of woman behind bar using a tablet

May 10, 2024by David Klemt David Klemt No Comments

3 Operators Address Surviving a Downturn

3 Wise Operators Share Tips for Surviving a Downturn

by David Klemt

I have to say, AI-generated, diorama-style images look rad.

During a standout session from the 2024 Bar & Restaurant Expo, a panel of three successful and highly respected bar operators answered an important question.

This year, BRE brought together an operator supergroup: Erick Castro, Nectaly Mendoza, and Travis Tober. The trio drove home the importance of becoming a student of the industry; being curious about business; understanding the need to nail the fundamentals; and operators knowing their numbers.

Castro summed up the path to becoming a successful operator rather succinctly: “You need to follow the fundamentals to make money.”

Of course, making money is just part of the success equation. Banking that money so it can work for an operator is another. Again, Castro put it simply, urging operators to live within their means when their bar or restaurant starts making money.

Taking it further, Mendoza pointed out that trying to project an image of success is foolish. As he explained, some operators and bartenders are projecting an image of prosperity and expertise, but it’s nothing more than an illusion.

Tober, who understands this business like few others, drove home the need to understand that really, operators are in the entertainment and relationship business. He, his business partners, and his teams are committed to giving guests a reason to visit their concepts and spend their money.

Toward the end of this incredible session, an audience member, to the benefit of every attendee, asked the trio for advice everyone could take back home to improve their operations.

Tighten Up

When it comes to appealing topics of discussion, most people want to shy away from economic downturn. However, ignoring the possibility of a recession doesn’t prevent it from becoming reality.

In fact, Tober said operators need to prepare now for things “to get rough for the next two or three years.” So, he advised the roomful of operators to tighten up their P&Ls.

For future operators this means making it non-negotiable to understand every aspect of their business. Systems must be in place and standards developed before the first guest ever steps through the doors.

According to Tober, operators who are aggressive and savvy can set themselves up “for life” in the next five or six years. We all know what that means, and it’s one of the reasons an operator need to re-invest in their business.

Adding to Tober’s thoughts on the next few years, Mendoza advised the audience to be prepared to attack opportunities when they present themselves.

On the topic of becoming a sharp and successful operator, Mendoza said to “overkill” the books. “Put the same attention into your books as you do your bar team and menus.”

Put simply, operators who know their numbers and the importance of reinvesting funds have chosen the path toward success. This also relates to hopeful operators. They’ll have the opportunity, if they follow their instincts and wait for the right location to become available, for a strong start over the next few years.

Fortuitously, that fits with Castro’s advice: Make sure you’re actually starting a business, not creating a job for yourself. Also, ensure pour costs, food costs, and labor costs are dialed in because they’re the variables over which operators have the most control. Lastly, aim for low turnover.

Takeaway

If we at KRG Hospitality didn’t agree with Castro, Mendoza, or Tober, we wouldn’t share their advice or insight.

The naked truth is that bars and restaurants are going to close. It happens every day.

Mendoza addressed this reality directly. Looking around the room, he said, “Look, some of you motherfuckers ain’t gonna make it.”

While it got a laugh, it was also true. However, one can improve their odds of success by putting the right systems in place; being curious enough to want to know everything about their business and the industry; hiring people for passion, and committing to mentoring and treating them well; and hiring people who will, as Mendoza said, make stress and pain points irrelevant.

It has been said plenty of times that we can hire for passion in this industry, and train for skills. What I hadn’t really heard until Mendoza said it is that we should also hire people who won’t cause an operator’s headaches. About midway through their session, Mendoza advised the room to ask themselves if the person they’re interviewing is going to be a problem or a good fit.

Another truth is that one operator’s failure represents another operator’s future success. However, that’s not possible without a high-level understanding of one’s business specifically and the hospitality business in general.

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

February 27, 2024by David Klemt David Klemt No Comments

The Fourth Member of Your Team

The Fourth Member of Your Team

by David Klemt

When looking at your organization, it’s crucial to realize ownership, leadership, and staff aren’t the only members of the team.

There’s another key member, and their input is among the most valuable. And you rely on them for the success of your business. They’re your guests.

It may seem painfully obvious that your guests are integral to the success of your business. After all, your registers won’t ring without guests coming through your doors, placing orders online or via phone, and spending their money at your venue.

When they become regulars—particularly vocal regulars who tell others about your great business—they transform into unofficial brand ambassadors. That’s fantastic marketing that tends to cost you nothing.

However, their importance goes beyond the monetary. Further, it’s more than just free marketing.

Menu Streamlining

Do your guests provide you with feedback? Actually, scratch that; let’s start again.

Do you provide your guests with a simple, convenient way to give you feedback? And do you seek more than a thumbs up or thumbs down for their experience at your restaurant or bar?

It can be difficult to streamline your menu, particularly if you’re unable to look at every item objectively. There are operators and chefs out there who get attached to their personal favorite menu items. That’s fine, until it’s not.

Perhaps a dish took a long time and a lot of work to get just right. Maybe it was a family thing and you’re proud of it.

But if you’re too proud of it and it’s not selling, it’s just costing you money. Keeping it on the menu hoping it will become a hit is bad for business.

A while back, when Bar & Restaurant Expo was Nightclub & Bar, Chef Brian Duffy shared a simple method for streamlining a menu. You run a product mix report, then separate them into three categories: rock stars, solid performers, and dogs.

The former are your top-selling items, and the middle category perform consistently. But the latter…they don’t sell. Worse, if they require ingredients that you don’t cross-utilize to make other dishes or drinks, they aren’t just stagnant, they’re costing you money.

If an item isn’t selling, that’s your guests—the fourth member of your team—letting you know they don’t want it. Removing such items is an easy way to begin the streamlining process. Some of the best bars and restaurants in the world audit their highly anticipated menu launches a few months after their release. Items that aren’t selling are refreshed or removed.

So, when you encourage your guests to give your feedback, ask them what they think about your menu. Also, ask your staff what guests are telling them about your food and drink.

Your Vision

If you’re anything like our clients (or you are one of our clients), you’ve spent a ton of time envisioning your perfect restaurant, bar, cafe, eatertainment concept, nightclub, or hotel.

With that comes a hypothetical but informed vision of the guest journey. You’ll have an idea of how your guests will use your space.

Well, what if your guests turn that idea on its head? How will you react if guests see your vision in a different way?

On today’s episode of the Bar Hacks podcast, guest James Grant says something that I have also been saying for quite some time: like me, he sees guests as an integral member of the team. They do, to a degree, have influence over your concept.

To paraphrase, Grant says guests are half of the reason people open and operate restaurants, bars, cafes, nightclubs, hotels, etc.

As an example, we have a client who saw their space a certain way. We helped develop their bar concept with their vision in mind. However, not long after opening, our client’s guests showed that they had a different perception of the bar. Our client adapted, and the bar team and guests are happy.

The brand didn’t change. Neither did the space, physically. Nor did the cocktail program. However, one key element did change, as far as the type of bar it was intended to be.

As another example, friends of mine opened a bar years back. The space was meant to be an upscale cocktail bar with a relaxed and sophisticated vibe. That vision was achieved, but influential guests added an element: the bar became a high-energy after-hours spot.

At first, my friends weren’t sure about this change or if they should encourage it. But when they saw that revenue and profits were up, well…sometimes change is a good thing.

Adaptation

You may be very proud of items you have on your menu. Along those lines, you may have a very specific vision for your F&B programs that tell the story of your brand and space.

If an item here or there doesn’t catch on, it doesn’t make you a failure. It can be disappointing if your personal favorite turns out to be a dud with guests; don’t take it personally. It’s just business. The items on your menu should earn money, not lose it.

And if a guest reads through your highly curated cocktail, beer, or wine menu and then orders something “basic,” that shouldn’t be seen as a personal affront.

Now, guests deciding your concept is something you never intended it to be is something else. If this happens, it requires looking at the experience, service, brand storytelling, and even the design with a critical eye.

That said, if none of that is “off,” and if your team is happy and profits go up because your guests see your business in a different way, it may be smart to adapt. This is particularly true if your team is making more money and the unexpected new direction is safe.

Operators have usually been creating their concepts in their minds for years. It can be a shock for guests to transform the business into something else.

But if the business is successful because of how guests decide to use it, is that a bad thing?

Only you can answer that question. It may be best for you to identify the “why” behind the possible concept disconnect and stamp it out. However, it may be best to lean into the unexpected new direction.

Image: Edge2Edge Media on Unsplash

Closeup shot of the flag of the City of Chicago with Wrigley Building in background

October 16, 2023by David Klemt David Klemt No Comments

Chicago to Phase Out the Tip Credit

Chicago to Phase Out the Tip Credit

by David Klemt

In a move that some are celebrating and others claim will kill jobs, Chicago will phase out the tip credit incrementally by the year 2028.

Currently, pay for tipped workers amounts to 60 percent of the minimum wage. Starting next year, that will change.

Beginning July 1, 2024, tipped workers will earn eight-percent increases on an annual basis. This will continue until July 1, 2028. On that date, tipped workers must receive the full minimum wage.

Put another way, the city of Chicago will eliminate the tip credit entirely midway through 2028. To add clarification, this phasing out of the tax credit applies to all 77 of the city’s neighborhoods.

Overwhelmingly, Chicago’s City Council voted for the so-called “One Fair Wage Ordinance.” Thirty-six alderpeople voted “yea,” while just ten voted “nay.”

As one would expect, not everyone is happy that the ordinance was passed on Friday, October 6. Nor are they pleased that Mayor Brandon Johnson signed off on the bill a week ago today.

Specifically, Alderman Nicholas Sposato referred to the One Fair Wage Ordinance as a “job and business killer.”

Further, as reported by Restaurant Dive last week, the Illinois Restaurant Association opposes the decision to eliminate the tip credit in Chicago.

“We wholeheartedly disagree with the decision to move forward with the elimination of the tip credit,” Restaurant Dive reports a representative of the IRA saying in a statement emailed to the publication.

The National Restaurant Association also opposes the ordinance, reportedly vowing to fight any such legislation that introduced throughout the country.

However, One Fair Wage and the Service Employees International Union are celebrating the plan to phase out the tip credit. However, the SEIU would like the elimination to apply statewide.

A Compromise

Attempting to negotiate for legislation they found more palatable, the IRA had proposed a different approach.

Their version would have seen tipped workers make a minimum of $20.54 per hour. However, that ordinance would only have applied to restaurants that generate $3 million or more in annual revenue. Additionally, the IRA proposed tripling fines related to violations of the proposed ordinance.

Had that proposal been accepted, the pay situation would have been unchanged for tipped workers in smaller operations.

In the end, the IRA agreed to eliminating the tip credit over the course of five years to make the transition smoother for operators. This is due, in part, to the possibility of a two-year phasing out of the tip credit being passed by Chicago’s City Council.

The IRA, NRA, and others who oppose eliminating tip credits point to hardships on the operator side. Increased labor costs will lead to increases in menu prices, reductions in traffic and hours, the elimination of jobs, and, ultimately, the shuttering of many businesses.

However, those who support such ordinance point to the financial stability of vulnerable people, and those who work throughout the industry to earn a living wage.

The Future

While Chicago is the largest city in America to vote to eliminate the tip credit, it’s not the first pass such legislation.

The city joins Alaska, California, Minnesota, Montana, Nevada, and Oregon in doing so. Additionally, Washington, DC, will eliminate the tip credit fully by July 1, 2027. Phase one of DC’s tip credit elimination started May 1 of this year.

Of course, the news out of Chicago also comes on the heels of the FAST Act fight ending in California.

These developments beg the question: Which city or state will introduce legislation next, and how will it play out for workers and operators?

Image: Trace Hudson via Pexels