Ultra lounge

Red "New York" sign on building
by David Klemt David Klemt No Comments

$23.82 Minimum Wage for Delivery Workers?

$23.82 Minimum Wage for Delivery Workers in NYC?

by David Klemt

Red "New York" sign on building

With a public hearing on the docket for December 16, the New York City Council is proposing “fairer pay for delivery workers.”

The move is a year in the making. Last year, the NYC Council approved legislation with the goal of improving delivery worker pay and working conditions.

Now, the council is moving to increase minimum wage for the 60,000-plus delivery workers in the city.

At the risk of coming across as pessimistic, the legislation is likely to be unpopular with third-party delivery services. After all, when NYC and San Francisco passed laws to cap third-party delivery commissions, the big services filed lawsuits.

So, again, increasing the minimum wage for delivery workers in NYC will probably not go down well with companies like Uber, DoorDash, and Grubhub.

It’s possible we’ll find out before the end of this year. After the public hearing, the NYC Council will consider public comments. Then, the council could move forward and enact the legislation.

What’s in the Proposal?

Should the rule go into effect after the public hearing on December 16, minimum wage would rise to $17.87 per hour for third-party delivery workers. By April 1, 2025, that rate would increase to $23.82.

“This new proposed minimum pay rate would help ensure a fairer pay for delivery workers for third-party apps, providing more stability for 60,000 workers across our city,” says New York City Mayor Eric Adams.

According to reports, Brooklyn Borough President Antonio Reynoso is in favor of the legislation as well.

“It’s absolutely unacceptable that the restaurant delivery workers who provide for so many in this city are not justly compensated for their time, reimbursed for their expenses or provided essential benefits,” says Reynoso.

So, how did the council arrive at the $23.82 per hour figure? Well, we actually have that information:

  • $19.86, which matches standards set by the New York City Taxi and Limousine Commission for ride-hail drivers;
  • $2.26 for expenses delivery workers incur; and
  • $1.70 for worker’s compensation.

Why Legislate Delivery Worker Pay?

It appears the main reason is an incredibly simple one. In short, third-party delivery workers aren’t making minimum wage in NYC.

Per the Department of Consumer and Worker Protection (DCWP), delivery workers average less than the city’s $15 minimum wage. With tips, they’re averaging $14.18. And without tips? As one can imagine, the hourly rate plummets: $7.09 per hour.

According to the DCWP, the average hourly expense a delivery worker incurs is $3.06. So, that drives their hourly pay to $11.12 with tips, $4.03 without.

In an argument likely to be cited in any lawsuit filed by DoorDash (or at least shared in a public statement), the company claims its delivery workers make almost $29 per hour.

Clearly, there’s a discrepancy somewhere. Either delivery drivers are woefully underpaid for the service they provide or multiple researchers are misinterpreting hourly pay data.

Several sources have cited a statement made by a DoorDash representative about the NYC Council’s proposal:

“Dashing allows so many across New York City to earn when, where and how often they choose,” says the rep. “Unfortunately, the proposed rule does not appropriately account for this flexibility or that Dashers are able to choose which deliveries they accept or reject.”

Their statement continues, addressing a possible rise in costs and drop in orders:

“Failing to address this could significantly increase the costs of delivery, reducing orders for local businesses and harming the very delivery workers it intends to support.”

Why Should I Care if I Don’t Operate in New York City?

We’ll see—quickly, apparently—if this proposal becomes law. Should that happen, there’s reason to assume similar proposals will pop up in other cities and states.

We’ll also see whether or not third-party delivery companies file lawsuits in response. They’ve done so for commission caps, after all.

At any rate, this is one to watch. Similar legislation could be coming to your market.

Image: Nik Shuliahin 💛💙 on Unsplash

Chef checking tickets
by David Klemt David Klemt No Comments

Traffic Up but Margins Thinner

Traffic Up but Margins Thinner

by David Klemt

Chef checking tickets

The One Table 2022 report from Datassential focuses on the state of the operator and what the industry can expect moving forward.

This informative report shares survey results from 801 operators across America. While some of the findings are positive, it’s clear many operators are enduring significant challenges.

For some, traffic and sales are up. However, that’s not the situation others find themselves in.

To download and review the Datassential One Table 2022, please click here.

The Respondents

For this report, Datassential shares the survey answers from 801 respondents.

Most survey respondents are independent operators. In fact, they account for 71 percent of the participants. Making up the rest of the field are chain operators (15 percent) and franchise operators (14 percent).

As far as segment types, the majority of survey participants operate in the fast-casual space (18 percent). Unsurprisingly, fine dining is the smallest group of respondents at six percent. Thirteen percent operate midscale restaurants, and 12 percent are at the helm of casual-dining concepts. Somewhat surprisingly, just ten percent of participants operate QSRs.

Interestingly, the service format is fairly even among survey participants. Fifty-three percent of operators are full-service and 47 percent are limited-service.

Similarly, survey respondents represent the country’s regions pretty evenly:

  • South: 30 percent
  • Midwest: 29 percent
  • Northeast: 21 percent
  • West: 20 percent

In terms of market type, most respondents operate in the suburbs (49 percent). Following somewhat closely are urban-market operators, at 31 percent. Just 20 percent of survey participants operate in rural markets.

Traffic, Sales and Margins

At first glance, Datassential’s survey reveals positive news.

Now, I’m sure people find the terms “pandemic, “pre-pandemic,” and “post-pandemic” exhausting at this point. However, there’s no denying we continue to feel the aftershocks sent through the industry by the pandemic.

So, how do things look now in comparison to pre-pandemic traffic and sales levels?

First, the positives. Nearly half of survey respondents—47 percent—say their traffic is up in comparison to where it was pre-pandemic. Add to that the 14 percent who say their traffic is the same and 61 percent of operators appear to be in good shape.

In terms of sales, 51 percent of survey participants have good news. That news is that their sales are higher in comparison to pre-pandemic levels. Again, add the 14 percent who don’t see any change. So, that’s 65 percent of operators who appear to be performing well.

But with the good there’s bad. Unfortunately, 39 percent of respondents report lower traffic than pre-pandemic levels. And sales are lower than they were before the pandemic for 35 percent of survey participants.

Operator margins are lower for all respondents. Generally speaking, the profit margin for operators before the pandemic sat at 21 percent. Now, the average is 13 percent. QSRs and fast-casual restaurants are a bit higher among survey respondents: 17 percent and 15 percent, respectively.

On paper things do look up for many operators. However, the industry is still suffering, with a third struggling to rise to even pre-pandemic levels of traffic and sales.

Image: Daniel Bradley on Unsplash

Friends toasting with pink drinks
by David Klemt David Klemt No Comments

Is There Demand for Non-alcohol?

As the Holidays Approach, is There Demand for Non-alcohol?

by David Klemt

Friends toasting with pink drinks

There’s no denying that non-alcohol is a growing beverage category, but does the data support the hype and operator consideration?

A report by behavioral research firm Veylinx offers compelling insight into non-alcohol and consumers.

By now, there’s really no excuse for failing to give non-alc serious consideration. When planning menus, operators should treat non-alc as much more than an afterthought.

Admitting fully that I’m repeating myself, giving alcohol-free beverages the same attention as their full-proof counterparts is crucial. Doing so is smart business; non-alc is capable of driving traffic and revenue.

And then there’s the guest experience element of the non-alc equation. Hospitality is about service, about ensuring every guest is comfortable. Giving guests who are abstaining from alcohol consumption a different experience than others isn’t hospitality—it’s alienation. Not only is that the antithesis of hospitality, it’s bad business.

Reviewing Veylinx data shows that non-alc is worthy of operators’ time and consideration. In my opinion, it’s even more important that non-alc menus and offerings be dialed in now. After all, the end-of-year holidays on our doorsteps.

The infamous Busiest Bar Night of the Year is nearly here. From November 23 through New Year’s Eve, people will be meeting up with family and friends. Many will also be seeking an escape from the stress of those gathering and the holidays.

Non-alcohol by the Numbers

One of the most important points made by Veylinx is this: Abstinence from alcohol isn’t limited to “social media” events like Dry January and Sober October.

Rather, consumers are choosing to abstain from alcohol throughout the year for myriad reasons. Specifically, Veylinx data reveals that more than 75 percent of Americans have abstained from alcohol consumption at some point for at least one moment.

Further, 46 percent of Americans plan to reduce their consumption of alcohol “right now.” As in, the holidays may be upon us but they’re actively working on a plan to drink less, not more.

Two major factors motivating this behavioral change are mental well-being and physical health. In service of those factors, more than half of LDA drinkers in America plan to replace beverage alcohol with non-alc beverages.

Interestingly, Veylinx finds that these consumers will pay more for non-alc alternatives in comparison to the general population.

Drilling down further, this shift in consumer behavior appears to be driven by a handful of consumer types:

  • 21- to 35-year-old consumers;
  • “light” drinkers; and
  • consumers who have set aside alcohol consumption for one month or more.

Speaking of the first group, demand for RTDs is 48 percent greater in comparison to those aged 35 or older. Add CBD to RTD and the demand among the 21 to 35 cohort grows by 18 percent.

However, not all non-alc growth comes from the 21-to-35 group. Non-alc beverages with mood boosters see an increase in demand from the 35-plus group of 29 percent.

In short, if an operator is ignoring the non-alc consumer, they’re harming their own business and reputation. Alcohol-free RTDs, cocktails, beer, and wine are growing.

Savvy operators will leverage that growth.

Image: Helena Yankovska via Unsplash

Newfoundland and Labrador during daytime
by David Klemt David Klemt No Comments

These are the Happiest Provinces in Canada

These are the Happiest Provinces in Canada

by David Klemt

Newfoundland and Labrador during daytime

If you’re wondering which province in Canada is the happiest, Statistics Canada has the answer—and the happiest may surprise you.

Of course, those who live and work in the happiest province won’t find it shocking. After all, they’re largely happy to be there.

However, if you expect the happiest province to be the home of Toronto, Vancouver, Montreal or Canada… Well, you’re in for a surprise.

Earlier this week we took a look at the happiest cities and states in America. Congratulations Fremont, California, and Hawaii, respectively. To learn where 181 other cities and 49 states rank, please click here.

The Happiness Survey

Or more accurately, the “life satisfaction” survey. For this survey, that’s what Statistics Canada reveals: life satisfaction.

Interestingly, the survey is very simple. Apparently, Statistics Canada simply asked participants to rate the satisfaction of living in their province, zero through ten. For this survey, zero is least satisfied, ten is most.

Ages 15 through 75 (and older) were able to participate. The survey was also broken down to gauge the satisfaction of men and women.

Before we jump into the breakdown of province satisfaction or happiness, some good news. Reviewing the Statistics Canada data, most participants across all age groups are happy. In fact, age groups 65 to 74 and 75-plus appear to be happiest.

On the other side, ages 15 to 54 had the most people who rated their life satisfaction between zero and five. Even so, just over 20 percent of survey respondents rated their satisfaction a five or less.

So, on the whole, Canadians seem satisfied or happy with their lives, regardless of the province in which they live. Personally, I find that to be great news.

The Happiest Province

Okay, let’s dive into the reason you’re here: to learn which province is the happiest.

  1. Newfoundland and Labrador
  2. Prince Edward Island
  3. Quebec
  4. New Brunswick
  5. Manitoba
  6. Alberta
  7. Saskatchewa
  8. Nova Scotia
  9. Ontario
  10. British Columbia

The above rankings are determined by the percentage of survey respondents who rated their life satisfaction eight, nine or ten. So, if you’re in Newfoundland and Labrador, Prince Edward Island or Quebec, wow—you’re apparently one incredibly happy person.

Conversely, below you’ll find the rankings as determined by the largest percentage of respondents who rated their satisfaction a five or lower. As you’ll find, the list below isn’t simply the inverse of the one above.

  1. Ontario
  2. British Columbia
  3. New Brunswick
  4. Alberta
  5. Nova Scotia
  6. Prince Edward Island
  7. Manitoba
  8. Saskatchewa
  9. Quebec
  10. Newfoundland and Labrador

As far as Canada overall, the results of this particular survey are positive. Just 19.4 percent of survey respondents rated their satisfaction or happiness zero through five. And only 28.9 percent provided a rating of six or seven.

More than half of Canadians, 51.7 percent, rate their lives an eight, nine or ten. That’s some great and welcome news.

Image: Erik Mclean on Unsplash

Deflated smiley face balloon in street
by David Klemt David Klemt No Comments

The Most-stressed Cities in the US

These are the Most-stressed Cities in the US

by David Klemt

Deflated smiley face balloon in street

There’s a simple argument to be made that one characteristic the happiest cities share is being among the least stressful to live.

Yesterday we took a look at the happiest cities in the US, according to WalletHub analysis. Click here in case you haven’t yet read that article.

Today, let’s check out the most- and least-stressed cities in America. As with their happiest and least-happy cities list, WalletHub ranks 182 cities based on stress levels.

Of course, “least stressed” doesn’t mean “stress-free.” Nor should it—some stress is good for us. After all, stress can push us to perform our best, bring out our problem-solving creativity, and even energize us.

The rankings below may surprise you. Like me, you may even find yourself raising an eyebrow and disagreeing with some of them.

However, it’s a compelling list worth reviewing if you’re an operator, leadership team member, hospitality professional, or in the site-selection portion of opening a restaurant or bar.

The Top 25 Cities of Stress

When determining their results, WalletHub ranked 182 cities according to four main categories. Those categories are: work stress; financial stress; family stress; and health and safety stress. The categories consist of 40 key metrics in total.

I think it’s safe to assume that no city wants to be in the top 25 of this list, or even the top 50. Neither, I’m certain, does any city want to wear the crown of “Most Stressed US City.”

Unfortunately, someone must be number one. Below, the top 25 “Cities of Stress,” per WalletHub:

  1. Cleveland, Ohio
  2. Detroit, Michigan
  3. Gulfport, Mississippi
  4. Baltimore, Maryland
  5. Philadelphia, Pennsylvania
  6. Memphis, Tennessee
  7. New Orleans, Louisiana
  8. Birmingham, Alabama
  9. Louis, Missouri
  10. Toledo, Ohio
  11. Augusta, Georgia
  12. Jackson, Mississippi
  13. North Las Vegas, Nevada
  14. San Bernadino, California
  15. Fayetteville, North Carolina
  16. Akron, Ohio
  17. Wilmington, Delaware
  18. Houston, Texas
  19. Montgomery, Alabama
  20. Shreveport, Louisiana
  21. Cincinnati, Ohio
  22. Newark, New Jersey
  23. Mobile, Alabama
  24. Columbus, Georgia
  25. Indianapolis, Indiana

Alas (I don’t get to use this word much), Ohio has four cities on this list. In fact, the Buckeye State has two cities in the top ten.

Of course, Ohio isn’t the only state with multiple cities in the top 25 stressed cities. Alabama has three cities among the top 25. Also, Mississippi and Louisiana each have two cities on this part of the list, unfortunately.

Cities 26 Through 91

As you’ll see below, Ohio shows up a couple of times in this portion of the list. However, so do a handful of other states.

For example, ten Texas cities land on this part of the list. That means Texas has 11 cities among the “top” half of the most-stressed US cities.

  1. Baton Rouge, Louisiana
  2. Las Vegas, Nevada
  3. Huntington, West Virginia
  4. Springfield, Missouri
  5. Dover, Delaware
  6. Norfolk, Virginia
  7. Milwaukee, Wisconsin
  8. Chicago, IL
  9. Newport News, Virginia
  10. Washington, DC
  11. Dallas, Texas
  12. Richmond, Virginia
  13. Tulsa, Oklahoma
  14. Chattanooga, Tennessee
  15. Bridgeport, Connecticut
  16. San Antonia, Texas
  17. Atlanta, Georgia
  18. Glendale, Arizona
  19. New York, New York
  20. Tucson, Arizona
  21. Columbia, South Carolina
  22. Columbus, Ohio
  23. Knoxville, Tennessee
  24. New Haven, Connecticut
  25. Brownsville, Texas
  26. Rochester, New York
  27. Casper, Wyoming
  28. Vancouver, Washington
  29. Oklahoma City, Oklahoma
  30. Jacksonville, Florida
  31. Corpus Christi, Texas
  32. Charleston, West Virginia
  33. Henderson, Nevada
  34. Phoenix, Arizona
  35. Modesto, California
  36. Wichita, Kansas
  37. Winston-Salem, North Carolina
  38. Little Rock, Arkansas
  39. Moreno Valley, California
  40. Louisville, Kentucky
  41. Stockton, California
  42. Spokane, Washington
  43. Fresno, California
  44. Miami, Florida
  45. Kansas City, Missouri
  46. El Paso, Texas
  47. Salem, Oregon
  48. Hialeah, Hawaii
  49. Los Angeles, California
  50. Fort Smith, Arizona
  51. Fort Worth, Texas
  52. Denver, Colorado
  53. Arlington, Texas
  54. Buffalo, New York
  55. Greensboro, North Carolina
  56. Bakersfield, California
  57. Fort Wayne, Indiana
  58. Providence, Rhode Island
  59. Tacoma, Washington
  60. Port St. Lucie, Florida
  61. Lewiston, Maine
  62. Laredo, Texas
  63. Cape Coral, Florida
  64. Grand Prairie, Texas
  65. Garland, Texas
  66. Aurora, Colorado

Cities 92 Through 137

This is where things begin to turn around, at least mathematically. This is the “bottom” half of the list.

Or, to phrase it another way, this section starts identifying the least-stressed cities in America.

  1. Portland, Oregon
  2. Ontario, California
  3. Lubbock, Texas
  4. Reno, Nevada
  5. Huntsville, Alabama
  6. Sacramento, California
  7. Amarillo, Texas
  8. Albuquerque, New Mexico
  9. Tampa, Florida
  10. Long Beach, California
  11. Colorado Springs, Colorado
  12. Fontana, California
  13. Tallahassee, Florida
  14. Las Cruces, New Mexico
  15. Worchester, Massachusetts
  16. Orlando, Florida
  17. West Valley City, Utah
  18. Fort Lauderdale, Florida
  19. Peoria, Arizona
  20. Riverside, California
  21. Mesa, Arizona
  22. Nashville, Tennessee
  23. Des Moines, Iowa
  24. Nampa, Idaho
  25. Tempe, Arizona
  26. Irving, Texas
  27. Oakland, California
  28. Grand Rapids, Michigan
  29. Charlotte, North Carolina
  30. Rancho Cucamonga, California
  31. Boston, Massachusetts
  32. Pittsburgh, Pennsylvania
  33. Honolulu, Hawaii
  34. Oceanside, California
  35. Pearl City, Hawaii
  36. Anchorage, Alaska
  37. Warwick, Rhode Island
  38. Virginia Beach, Virginia
  39. Cheyenne, Wyoming
  40. Petersburg, Florida
  41. Chesapeake, Virginia
  42. Billings, Montana
  43. Lexington-Fayette, Kentucky
  44. Durham, North Carolina
  45. Santa Ana, California
  46. Jersey City, New Jersey

Cities 138 through 182

Finally, we reach what cities, according to WalletHub analysis, experience the least amount of stress.

  1. Salt Lake City, Utah
  2. Aurora, Illinois
  3. Santa Clarita, California
  4. Glendale, California
  5. Manchester, New Hampshire
  6. Paul, Minnesota
  7. Garden Grove, California
  8. Pembroke Pines, Florida
  9. Yonkers, New York
  10. Chandler, Arizona
  11. Oxnard, California
  12. Juneau, Alaska
  13. Anaheim, California
  14. Santa Rosa, California
  15. Chula Vista, California
  16. Charleston, South Carolina
  17. Raleigh, North Carolina
  18. San Francisco, California
  19. Huntington Beach, California
  20. Omaha, Nebraska
  21. San Diego, California
  22. Gilbert, Arizona
  23. Scottsdale, Arizona
  24. Rapid City, South Dakota
  25. Austin, Texas
  26. Seattle, Washington
  27. Minneapolis, Minnesota
  28. Missoula, Montana
  29. Boise, Idaho
  30. Nashua, New Hampshire
  31. Plano, Texas
  32. Cedar Rapids, Iowa
  33. Lincoln, Nebraska
  34. Portland, Maine
  35. Irvine, California
  36. Burlington, Vermont
  37. Sioux Falls, South Dakota
  38. Bismarck, North Dakota
  39. San Jose, California
  40. Columbia, Maryland
  41. Fargo, North Dakota
  42. Overland Park, Kansas
  43. Madison, Wisconsin
  44. South Burlington, Vermont
  45. Fremont, California

Twelve of the cities on this part of the list are in California. Further, the least-stressed city in California: Fremont. If you read yesterday’s article, you know that WalletHub ranked Fremont, California, the happiest city in the US.

Image: Nathan Dumlao on Unsplash

Yellow smiley face ball
by David Klemt David Klemt No Comments

Which Cities and States are the Happiest?

Which US Cities and States are the Happiest?

by David Klemt

Yellow smiley face ball

As an entrepreneur and operator evaluating a market for a first location or expansion, it can help to know where people are happiest.

Equally as helpful: Knowing the cities and states that are the least happy. Not, necessarily, so an operator can avoid these markets.

Rather, one’s concept may be a ray of stress-free sunshine for a given community. Providing a great workplace with a positive culture can work wonders for both the happiest and least-happy places. And as the cornerstones of the communities they serve, restaurants and bars can improve their guests’ quality of life.

We’ve looked at the US cities with the greatest inflow and outflow (which can reveal happiness levels), as identified by Redfin. And we’ve checked out the best US retirement cities, researched by Clever.

Now, we’re taking a look at which US cities and states are the happiest and least happy, according to WalletHub. In case you’re unaware, personal finance site WalletHub researches a vast array of topics. You can browse them here.

Happiest Cities

While determining which are happiest, WalletHub identified the happiest 182 cities. Obviously, that’s a far cry from how many cities are in the US.

According to one source, there 19,495 cities, towns, and villages across the country (per data from 2018). Of those, 4,727 cities have populations of 5,000 or more. A total of 310 cities have populations of at least 100,000, and only ten are home to one million people or more.

So, living in any of the 182 cities WalletHub suggests one is pretty happy. However, these are the ten happiest cities, in descending order:

  1. Fremont, California
  2. Columbia, Maryland
  3. San Francisco, California
  4. San Jose, California
  5. Irvine, California
  6. Madison, Wisconsin
  7. Seattle, Washington
  8. Overland Park, Kansas
  9. Huntington Beach, California
  10. San Diego, California

As you can see, six of the 10 cities are in California. In fact, 29 of the 182 cities on this list are located in the Golden State.

To create their list, WalletHub analyzed several metrics that make up three main categories: emotional and physical well-being; work environment; and community and environment.

Fremont, CA, is number one for emotional and physical well-being. The top spot for work environment goes to San Francisco, CA. And the number-one city for community and environment is Casper, Wyoming, which is number 79 on the list overall.

Least-happy Cities

Again, understanding that there are more than 19,400 cities, towns, and villages in the US alters the context of this list a bit.

Living and operating in one of these 182 cities indicates a person is living in a happy city. Basically, it isn’t the worst place to live if it’s on this list.

At any rate, let’s look at the 10 cities that make up the bottom of WalletHub’s list. Or, the “least-happy” cities, at least as far as these rankings are concerned.

  1. Detroit, Michigan
  2. Gulfport, Mississippi
  3. Memphis, Tennessee
  4. Huntington, West Virginia
  5. Montgomery, Alabama
  6. Cleveland, Ohio
  7. Augusta, Georgia
  8. Fort Smith, Arizona
  9. Mobile, Alabama
  10. Shreveport, Louisiana

Happiest States

WalletHub also ranked 50 states to determine the happiest and least happy. I checked, and, yep, that’s all of ’em! I will say it’s a bit disappointing they didn’t include Puerto Rico, but it isn’t the 51st state (yet).

WalletHub focused on 30 metrics to rank the states, which make up three main categories: emotional and physical well-being; work environment; and community and environment.

In descending order, the happiest states in America are:

  1. Hawaii
  2. Maryland
  3. Minnesota
  4. Utah
  5. New Jersey
  6. Idaho
  7. California
  8. Illinois
  9. Nebraska
  10. Connecticut

Hawaii doesn’t just take the top spot overall, it also claims number one for emotional and physical well-being. Utah takes first for work environment, and community and environment.

Rounding out the “happiest half” of the US are:

  1. Virginia
  2. South Dakota
  3. North Dakota
  4. Massachusetts
  5. New Hampshire
  6. Iowa
  7. Delaware
  8. Florida
  9. Georgia
  10. North Carolina
  11. Wisconsin
  12. Washington
  13. New York
  14. Maine
  15. Wyoming

Least-happy States

Conversely, the following are the least-happy states, starting with the unhappiest:

  1. West Virginia
  2. Louisiana
  3. Arkansas
  4. Kentucky
  5. Alabama
  6. Mississippi
  7. Oklahoma
  8. Tennessee
  9. New Mexico
  10. Missouri

Filling out the least-happy half of the country are:

  1. Alaska
  2. Michigan
  3. Ohio
  4. Indiana
  5. Texas
  6. Nevada
  7. Vermont
  8. South Carolina
  9. Kansas
  10. Arizona
  11. Colorado
  12. Montana
  13. Rhode Island
  14. Pennsylvania
  15. Oregon

In terms of the three metrics WalletHub analyzed, West Virginia is ranked last for emotional and physical well-being. Unfortunately, Mississippi is last for work environment. And Texas comes in last for community and environment.

Image: chaitanya pillala on Unsplash

Pile of $100 bills
by David Klemt David Klemt No Comments

Why is the SBA Sitting on RRF Funds?

Why is the SBA Sitting on Tens of Millions in RRF Funds?

by David Klemt

Pile of $100 bills

Three months after the revelation that the SBA is sitting on $180 million in RRF funds, we’re wondering why they still aren’t disbursing the money.

Oh, and a handful of American lawmakers have the same question. In fact, two members of the House and two senators are requesting a plan from the SBA.

The patience of Representatives Earl Blumenauer (D-OR) and Brian Fitzpatrick (R-PA) appears to be at its end. So, too, the willingness for Senators Kyrsten Sinema and Roger Wicker (R-MS) to simply wait and see.

So, the bipartisan lawmakers are playing hardball, sending a strongly-worded letter to the Small Business Administration.

$180 Million in Available Funds

As it turns out, there are are tens of millions of dollars in unallocated Restaurant Revitalization Funds. Months ago, the Government Accountability Office (GAO) investigated the RRF situation.

Back in July, the fruits of the investigation came to light: of the $28.6 billion in the RRF, $180 million have not been disbursed. Further, it was reported in August that the SBA was working the Department of Justice to “formulate a plan on how to distribute” the money.

It’s now November and…there’s no news. Well, there’s news, but it’s that four bipartisan lawmakers are demanding answers and action from the SBA.

Look, $180 million is a far cry from the $40 billion our industry needed and deserved to have approved to replenish the RRF. Indeed, if every dollar of this “found” money is distributed to RRF applicants, just 0.44 percent would receive a grant.

However, nearly $200 million in funds can still help some operators. There’s simply no excuse for the SBA failing to disburse the funds six months after the GAO made their discovery.

Clearly, several lawmakers agree with this assessment.

Lawmakers Seek Action from the SBA

Earlier this week, Reps. Blumenauer and Fitzpatrick, and Sens. Sinema and Wicker, sent a letter to the SBA. Not only are they seeking action from the SBA, they’re seeking a plan by next week.

“We request the SBA provide Congress with a detailed plan and timeline to distribute unobligated RRF funding as well as detailed information regarding the agency’s progress in retrieving misallocated funds and distributing those funds to eligible applicants no later than Monday, November 14, 2022,” reads the letter.

Further, the lawmakers make their position clear: “It is inexcusable for the Small Business Administration to not dispense every single available dollar to help as many of our nation’s still struggling main street businesses.”

According to reports, the lawmakers who penned the letter are working with the Independent Restaurant Coalition and National Restaurant Association. Reporting states that the IRC and NRA endorse the letter sent by the lawmakers this week.

As of the publication of this article, the SBA has issued no response. Unfortunately, that’s not exactly surprising. After all, they’ve been silent on this topic for months.

Image: Giorgio Trovato on Unsplash

SpotOn POS system on laptop
by krghospitality krghospitality No Comments

2023: Year of the POS Systems?

2023: Year of the POS Systems?

by David Klemt

SpotOn POS system on laptop

Image from SpotOn press release

According to SpotOn, the industry could be in for a tech revolution next year as independent operators pursue more powerful POS solutions.

The results of a survey conducted by the cloud-based POS platform are rather revealing. In an effort to better understand where the industry is heading, SpotOn surveyed 300 independent and small-chain restaurant operators.

Both full-service and limited-service (LSR) concept operators participated in this SpotOn survey. Intended to identify the challenges operators face currently, the results reveal much more.

Below, the picture these survey results paint for the industry.

Legacy vs. Innovation

This isn’t the first time I’ve stated the following: Our industry hasn’t been the fastest to implement new technology.

However, we did appear to turn that around in 2021. Now, heading into 2023, our industry may be pursuing cutting-edge tech solutions even more fervently. Today’s guest expects more tech, and your team likely wants access to more modern tech that makes their jobs easier.

Per SpotOn’s survey, 81 percent of independent operators still use so-called “legacy” POS systems. These are “traditional” systems from companies that have been around for quite some time.

It’s not difficult to understand why the vast majority of independent operators continue using legacy systems:

  • Investing in a new platform requires expenditures of money and time.
  • Introducing a new POS platform requires staff training.
  • Staff need to grow adept at using the new system.
  • It can be daunting to research the available platforms and implementing change.

So, independent and small-chain operators have a choice to make: Stick with the familiar or invest in the future. Change can not only be intimidating, it can be expensive.

However, it seems that most operators are ready to throw comfort to the wayside and embrace innovation.

State-of-the-art Benefits

Should the SpotOn survey prove to be accurate snapshot of the industry, 75 percent of operators will implement new tech next year. According to SpotOn, this is largely in response to growing labor challenges, such as scheduling and retention.

The restaurant, bar, nightclub, and food truck platform found that operators are spending as much as 20 hours per week on administrative tasks. State-of-the-art POS systems can slash those hours by:

  • streamlining operations;
  • making scheduling simpler;
  • calculating tips and payout for payroll; and
  • managing overtime, an increasingly common task.

More modern POS platforms can automate labor management tasks, saving operators time, money, and frustration. Automation and streamlining give operators something invaluable: time.

In particular, innovative and helpful tech solutions provide an operator with time to focus on growing their business. When weighing whether to keep a familiar but less feature-rich POS system or invest in a modern platform that seamlessly integrates many solutions, ask yourself a couple important questions:

  • What’s my time worth?
  • What am I focusing on every day?
  • Am I growing my business or stagnating?
  • Is my current POS system helping or hindering my team?
  • Does my POS system streamline and automate any tasks?

Image: SpotOn

"I Voted" stickers on a white background
by David Klemt David Klemt No Comments

Are You Rewarding Voters Today?

Are You Rewarding Voters Today?

by David Klemt

"I Voted" stickers on a white background

Voting is one of the hallmarks of democracy, a right and privilege so crucial that one can’t overstate or exaggerate the value and importance.

It is, therefore, supremely unfortunate that access to this right has become so acrimoniously political. Of course voting relates to politics—that’s a given. That doesn’t mean the act itself should be disingenuously politicized for twisted means.

For example, far too many people have grown convinced that their vote means nothing. Further, it’s an outrage that voting is made so difficult for so many who know voting matters.

So important is this fundamental right, there are three amendments to the US Constitution protecting it specifically: the Fifteenth, Nineteenth, and Twenty-sixth.

Before going further, I’m not this passionate in support of only those who vote “my way.” I want every American of voting age to have easy access to cast their ballot. Equally as important to me, I want every American to feel like their vote means something.

Of course, that also means accepting results we don’t like. We don’t always get our way in a democracy, after all.

This is all to say the following: Operators can play a role in elections. A simple-yet-important role.

Encourage Voters

I’m not the first to say it: Restaurants and bars are the cornerstones of their communities.

Back in June, I expressed the role our industry plays across the country and globe: “Restaurants and bars are pillars, cornerstones of the communities they serve. These are businesses that welcome people in, treat them like family. They’re there for them as they move through their lives. People who were seemingly at odds with another routinely found common ground over a bite and a sip. More often than not, that’s still the case.”

I still believe this, and that’s why I believe operators can play a role on this Election Day, and those in the future. The role is simple but powerful: Encourage your community to get out there and vote.

Now, one clear way to motivate your community to get out there today is to reward those wearing “I Voted” stickers when they visit your restaurant or bar. It’s commonplace now for operators to offer voters food and drink discounts, free menu items, or other perks on Election Day.

Restaurants and bars around the country routinely execute this type of promotion. From free sides and snacks to discounts on entrees and drinks, operators throughout the US find ways to encourage voting.

Proceed with Caution

Just keep something in mind: Legal scholars say that when federal candidates are on the ballot, such promotions are illegal.

The interpretation of a particular federal statute makes it illegal to pay people to vote. “Paying” includes providing something of value in exchange for voting, such as food or a drink.

One workaround is to ensure anyone who enters your business can participate in your promotion. No “I Voted” sticker? No problem. A guest says they haven’t voted? Not a disqualification.

Another solution is to simply encourage your social media followers to vote and come by for a visit. No reward, necessarily, just encouragement to exercise their right.

In other words, be the supporter and motivator your community needs. And be careful about any promotions you may be offering today.

Image: Element5 Digital on Unsplash

Folded dollar bills
by David Klemt David Klemt No Comments

Tipping is on the Ballot in Washington, DC

Tipping is on the Ballot in Washington, DC

by David Klemt

Folded dollar bills

Out of concern that people who work for tips aren’t making minimum wage in Washington, DC, Initiative 82 is on the ballot.

This is interesting for several reasons. One of which is the fact this isn’t the first time this issue has been voted on in DC.

Back in 2018, Initiative 77 was presented to Washington, DC, voters. The initiative took the $3.33 per hour minimum wage for tipped workers up to $15 per hour, the full minimum wage.

In June 2018, the measure was approved by voters. However, the Washington, DC, Council held a vote and repealed Initiative 77 after if had been passed.

Phil Mendelson (D-Chairman) of the Washington, DC, Council, introduced the bill that ultimately repealed Initiative 77 in October 2018.

“The Council amends laws all the time. And if a law is a bad law it should be amended or repealed,” said Mendelson at the time. “It doesn’t matter if the law was adopted by Congress, the voters, or ourselves.”

Further, Mendelson claimed that tipped workers themselves—bartenders, servers, valets, manicurists, and more—didn’t hold a favorable view of the passing of the initiative.

“77 may be well-intentioned, but the very people the Initiative is intended to help are overwhelmingly opposed. If we want to help workers – protect them from harassment and exploitation – there are better ways than Initiative 77,” Mendelson said.

One council member, Mary Cheh (D-Ward 3), opposed repealing Initiative 77 and addressed claims that it was harmful to tipped workers.

“Although I take these claims seriously, in my view they are speculative and not borne out by the experience of the other jurisdictions that have one wage,” said Cheh.

Support

Whenever increasing tipped worker wages to full minimum wage comes up, we tend to encounter the same arguments for and against.

Currently, the tipped hourly wage in DC is $5.35 per hour. In comparison, full minimum wage in DC is $16.10 per hour.

Now, as the law reads, if a tipped worker’s wages don’t equate to full minimum wage, their employer is expected to bridge the gap.

The key argument for the passing of Initiative 82 is simple: tipped workers should make at least minimum wage. These workers deserve the stability of knowing how much they’ll make each shift and earning a living wage (consistently, hopefully).

Those who support Initiative 82 also say that since the measure doesn’t outlaw tipping, tipped workers would earn more than minimum wage.

Opposition

Opponents, however, argue that the initiative will harm tipped workers. Some say that operators will cut shifts and increase prices in response to Initiative 82 passing. This will, of course, lead to servers, bartenders, and other tipped workers making much less than they did in the past.

Traffic may also decrease because it’s assumed that operators will increase costs significantly.

There’s also the argument that’s often (if not always) made when this topic comes up: Tipped workers themselves don’t support these initiatives.

“I have not met a single server who wants this,” Washington, DC, bar owner David Perruzza told the Washington Blade. Perruzza added, “The people who support this don’t know anything about the service industry.”

A Few Questions…

I’ve made no secret of my cynicism when it comes to politicians and their relationships with our industry.

My main argument was made for me: the Restaurant Revitalization Fund saga. We watched for months as Congress failed to replenish the RRF, leaving more than 177,000 operators and their staffs to fend for themselves. This, after months of dangling replenishment in front of all of us. Ultimately, they abandoned us.

Tellingly, Senator Rand Paul (R-KY) referred to RRF replenishment as a “bailout.” And apparently he doesn’t think much of the challenges operators have faced since the start of the pandemic, asking, “Where’s the emergency?” The closures of tens of thousands of restaurants and bars, often the cornerstones of communities across the country, doesn’t rank as an emergency, apparently.

So, Initiative 77, Initiative 82, and similar measures beg a few questions:

  • Do politicians actually ask their tipped-wage constituents their thoughts on this topic before introducing these ballot measures?
  • When these initiatives are being considered, do people just ask a few operator friends their opinions?
  • Do local, state, and federal politicians really have a grasp of our industry?

One thing is certain: Industry eyes across the country are on Initiative 82. If it passes, we can likely expect similar measures to be introduced in cities and states. Should it fail, it may be a while before another jurisdiction sees this type of initiative again.

Image: Annie Spratt on Unsplash

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