Vote | KRG Hospitality

"I Voted" stickers on a white background

November 8, 2022by David Klemt David Klemt No Comments

Are You Rewarding Voters Today?

Are You Rewarding Voters Today?

by David Klemt

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

November 7, 2022by 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

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

October 28, 2022by David Klemt David Klemt No Comments

Credit Card Competition Act, Take Two

Credit Card Competition Act, Take Two

by David Klemt

As we approach Election Day on November 8, it’s important to keep in mind that the Credit Card Competition Act of 2022 is still in play.

In fact, reports predict that another attempt to pass the bipartisan bill will take place in November. If reports are accurate, Senators Dick Durbin (D-IL) and Roger Marshall (R-KS) will try to include the bill in the National Defense Authorization Act (NDAA).

Now, that sentence and strategy may have you scratching your head. What, you may be asking yourself, do credit card fees have to do with defense spending?

Well, not much, truthfully. But you’re probably well aware that politicians will try to amend bills in bids to pass legislation they want. The common term for such a provision is “rider.”

It’s not difficult to understand why the Credit Card Competition Act has gone nowhere when we view Sens. Durbin and Marshall’s rider tactic.

Earlier this month, the senators attempted to include their bill within the NDAA. The reason is simple: the bill specifies the US Department of Defense’s (DoD) budget and expenditures each year. In other words, this is a “must-pass” bill.

However, Sens. Durbin and Marshall aren’t the only senators sponsoring bills. And they’re certainly not the only senators attempting to attach riders to the NDAA.

“It’s a bold strategy, Cotton.”

I will say, at least Sen. Durbin’s effort to attach the Credit Card Competition Act rider to the NDAA is somewhat related to the DoD.

You see, he and Sen. Marshall tried to tack on two amendments to push their bill through. The first amendment theorizes that veterans are being hurt by credit card fees. According to the senators, when military veterans make purchases at a military commissary, they are sometimes subjected to surcharges related to merchant interchange fees.

The second amendment brings the US Treasury Department and US Defense Department into the mix. This effort directs the departments to research just how much veterans are paying (annually, one would assume) in surcharges, and which companies these fees benefit. Then, the departments are to issue this report to Congress.

So, hey, points for attempting to make including the Credit Card Competition Act of 2022 relate to the NDAA for FY 2022. Of course, other senators are attempting to include their own riders. Should reporting prove accurate, some 900 amendments have been proposed. Supposedly, a few dozen might just make it.

This strategy didn’t work this month because the NDAA vote isn’t taking place in October. Instead, the plan is for the vote to take place sometime mid-November, when the US Senate reconvenes.

To learn more about the Credit Card Act of 2022, click here. If it’s a bill you support, let your elected officials know. Should you oppose the bill, let that be known to lawmakers as well.

Image: CardMapr.nl on Unsplash

United States Capitol Building dome in greyscale

April 7, 2022by David Klemt David Klemt No Comments

House Votes to Replenish RRF

House Votes to Replenish RRF

by David Klemt

Eleven months after the closure of the Restaurant Revitalization Fund application portal, Congress has voted on RRF replenishment.

Earlier today, the House voted “yes” on $42 billion for the RRF via the Relief for Restaurants and Other Hard Hit Small Businesses Act of 2022 (HR 3807).

To clarify, the intent is that funds go to original applicants who were left out when the portal closed.

Neither the $1.7 trillion Build Back Better Act nor the $1.5 trillion omnibus spending bill passed in March included the RRF Replenishment Act.

So, this news is obviously fantastic. However, it’s also long overdue.

We’ve waited nearly 11 months for movement on relief for our ravaged industry. In comparison to the hospitality industry, the legislative process often moves at a glacial pace.

For obvious reasons, the long delay in replenishing the RRF has been devastating.

Nearly a month ago, I wrote and published “Congress is Abandoning Us.” Some considered the article harsh, others agreed with what I wrote.

To be clear, I stand by what I said after ten months of inaction. However, I’m relieved—cautiously—that the House proved their support for our industry today.

$55 Billion Lifeline

In its current form, the House bill would provide $42 billion. This is the amount believed to be enough to award grants to the original applicants from May of 2021.

Additionally, there’s another $13 billion for businesses in other hard-hit industries. So, the House bill provides a total of $55 billion in relief.

Per bill co-author Rep. Earl Blumenauer (D-OR), those who applied last year for the first (and only) round of RRF relief won’t have to re-apply.

Rep. Blumenauer reportedly told Nation’s Restaurant News that “[t]he independent restaurant is the foundation of a livable community.”

Continuing, Rep. Blumenauer told NRN, “We need to have these institutions to provide a foundation for our neighborhoods.”

As far as the source of the $55 billion, the money is supposed to come from funds recovered from 2020 and 2021 pandemic relief programs. This includes billions of dollars stolen through fraudulent relief program claims.

In an effort to combat further fraud and show the public that the funds are indeed going to the correct recipients, the SBA will be required to be transparent about its process.

As it stands, grant recipients will need to spend the funds on eligible uses by March 11, 2023.

Bittersweet

While this is huge news for our industry, it’s somewhat difficult to let go of my frustration fully. The RRF portal opened May 3, 2021. It closed just 21 days later, shutting out an estimated 177,000 grant applicants.

In June of last year, Sens. Kyrsten Sinema (D-AZ) and Roger Wicker (R-MS), and Reps. Earl Blumenauer (D-PA) and Brian Fitzpatrick (R-PA) introduced a bill to replenish the RRF.

That was followed in July by the ENTREE Act, introduced by Rep. Blaine Luetkemeyer (R-MO).

Then, in August, Sen. Rand Paul (R-KY) objected to a unanimous consent motion to fund the RRF. Essentially, after that occurred, it was crickets.

As stated above, when the Build Back Better Act was passed in November, relief for our industry was nowhere to be found.

Given all of this, and the fact that the bill must now go before senators for debate and a vote, I find myself still uneasy about the fate of the RRF.

We often say hope isn’t a strategy. However, I hope our senators do the right thing and pass the relief our industry so desperately needs and deserves.

Image: Joshua Sukoff on Unsplash

Old Fashioned cocktail garnished with orange peel and cherry on bar

December 10, 2021by David Klemt David Klemt No Comments

50 Best Announces 2021 Winning Bars

50 Best Announces 2021 Winning Bars

by David Klemt

The world’s best bars have been reviewed and ranked, and were announced by the aptly-named World’s 50 Best Bars on December 7.

In reality, the list is split into two and ranks the 100 best bars in the world.

Now, it may seem strange to some to review and rank bars during a pandemic. However, our industry and the top performers within it deserve recognition.

Interestingly (and somewhat disappointingly), only four of the top 50 are American operations. There are no Canadian bars among the top 100.

When it comes bars 51 through 100, there are seven American bars on the list. That makes a total of 11 American bars appearing on the global list of best bars.

Clearly, the organization needs to pay more attention to Canadian’s provinces and their bar scenes.

American Bars

Below are the American bars that made the cut. Their ranks and locations are included:

Katana Kitten, New York City, NY (Rank: 10)
Café La Trova, Miami, FL (Rank: 28)
Dante, New York City, NY (Rank: 30)
Attaboy, New York City, NY (Rank: 34)
Double Chicken Please, New York City, NY (Rank: 54)
Employees Only, New York City, NY (Rank: 60)
Kumiko, Chicago, IL (Rank: 61)
Thunderbolt, Los Angeles, CA (Rank: 66)
Sweet Liberty, Miami, FL (Rank: 89)
Death & Co., Los Angeles, CA (Rank: 99)
Leyenda, New York City, NY (Rank: 100)

Does anything jump out at you? Half of the American bars that made the Top 50 and 51-100 lists are in NYC. Miami and Los Angeles are tied for second-most bars on the list, with a single Chicago bar claiming a spot.

The World’s 50 Best Bars

Connaught Bar, London, UK
Tayer + Elementary, UK
Paradiso, Barcelona, Spain
The Clumsies, Athens, Greece
Floreria Atlantico, Buenos Aires, Argentina
Licoreria Limantour, Mexico City, Mexico
Coa, Hong Kong, China
El Copitas, St. Petersburg, Russia
Jigger & Pony, Singapore
Katana Kitten, New York, America
Two Schmucks, Barcelona, Spain
Hanky Panky, Mexico City, Mexico
Insider Bar, Moscow, Russia
Baba Au Rum, Athens, Greece
Manhattan, Singapore
Atlas, Singapore
Zuma, Dubai, UAE
The SG Club, Tokyo, Japan
Drink Kong, Rome, Italy
1930, Milan, Italy
Presidente, Buenos Aires, Argentina
Maybe Sammy, Sydney, Australia
Catina OK!, Sydney, Australia
Salmon Guru, Madrid, Spain
Handshake Speakeasy, Mexico City, Mexico
No Sleep Club, Singapore
Camparino In Galleria, Milan, Italy
Cafe La Trova, Florida, USA
Little Red Door, Paris, France
Dante, New York, USA
Kwant, London, UK
Bar Benfiddich, Tokyo, Japan
Tres Monos, Buenos Aires, Argentina
Attaboy, New York, USA
Lucy’s Flower Shop, Stockholm, Sweden
MO Bar, Singapore
Sips, Barcelona, Spain
Baltra Bar, Mexico City, Mexico
Sober Company, Shanghai, China
Tjoget, Stockholm, Sweden
Epic, Shanghai, China
Charles H, Seoul, South Korea
Tippling Club, Singapore
Above Board, Melbourne, Australia
Galaxy Bar, Dubai, UAE
Re, Sydney, Australia
Sidecar, New Delhi, India
Union Trading Company, Shanghai, China
Darkside, Hong Kong, China
Quinary, Hong Kong, China

This is the second consecutive year that the Connaught has clinched the number one spot.

Just 16 of the bars that made the top 50 are new to the list. Take from that what you will.

As you can see, there are more bars located in Singapore and China than anywhere else among the top 50. Of the bars in China, they’re split evenly between Hong Kong and Shanghai.

Criteria

The World’s 50 Best Bars is owned and organized by William Reed Business Media. Per the website’s “How the voting works” tab, no employees or sponsors “has any influence over the results.”

Voters are said to all be “bar experts.” According to the website, 50 percent of voters are bar owners and bartenders. A quarter are drinks writers, and another 25 percent are “well-traveled cocktail experts.” Overall, at least 25 percent must be new voters each year.

There are a total of 600 voters (so, 300 are bar owners and bartenders, and so on). Each voter casts seven votes. Their votes are based on the best bar visits they’ve had from the previous 18 months.

Voters must only vote for bars they’ve actually visited; pop-ups cannot receive votes; and voters can’t vote for bars they own or in which they have a financial interest.

Previously, participants had to cast at least two votes for bars located outside of their home countries. However, due to the pandemic, that requirement was tossed out for the 2021 lists.

According to the organization’s website, votes are confidential and voters are anonymous.

Image: Pylyp Sukhenko on Unsplash

February 12, 2021by krghospitality krghospitality No Comments

On the Menu for 2021: The RESTAURANTS Act

On the Menu for 2021: The RESTAURANTS Act

by David Klemt

Much like restaurants themselves, the RESTAURANTS Act has faced multiple starts and stops.

The bill received huge bipartisan support in 2020, landing dozens upon dozens of co-sponsors.

However, that widespread support didn’t materialize into any actual progress—the bill was never signed into law. That must change now.

A Long Road

It’s February 2021. The House and Senate must work together to provide the targeted relief of the Real Economic Support That Acknowledges Unique Restaurant Assistance Needed to Survive (RESTAURANTS) Act.

The RESTAURANTS Act was first introduced to the House of Representatives on June 15, 2020. The bill was eventually included in the revised Heroes Act, which was passed by the House on October 1, 2020 on a vote of 214 to 207.

Unfortunately, that bill was “dead on arrival” and didn’t receive a vote on the Senate floor. A $900 billion stimulus package was negotiated in December of 2020 but the RESTAURANTS Act wasn’t included in it.

It has been more than long enough—it’s beyond time for action.

Where are We Now?

Throughout all of this, from inception to current status, the Independent Restaurant Coalition (IRC) has never faltered in their campaign to ensure this industry receives the targeted relief it so desperately needs.

It’s wise given how the number of times we’ve been let down by our elected officials to be guarded and cautiously optimistic about the RESTAURANTS Act finally being signed into law this month.

On February 5, Senators Roger Wicker (R-MS) and Kyrsten Sinema (D-AZ), and Representatives Earl Blumenauer (D-OR) and Brian Fitzpatrick (R-PA) formally (re)introduced the RESTAURANTS Act to the 117th Congress.

What’s in the Bill?

In its current form, the RESTAURANTS Act:

establishes a $120 billion relief fund for foodservice and drinking establishments;
makes groups that operate up to 20 units eligible for relief from that fund;
provides operators access to grants of up to $10 million for eligible expenses; and
makes the grants retroactive to February 15, 2020 and ends them eight months after the legislation is signed into law.

New provisions in the February 2021 RESTAURANTS Act include:

updates to the award calculation based on annual loss from calendar year 2020 instead of quarterly;
grant eligibility for new restaurants that opened after January 1, 2020;
paid sick leave as an eligible expense for employees, with a bonus amount to cover the cost of voluntarily providing ten days of sick leave to employees;
providing the Department of the Treasury the discretion to help reduce waste, fraud, and abuse;
imposing reporting obligations on the Department of the Treasury to share who gets loans and demographic information about recipients; and
ensuring that restaurants can use both the Employee Retention Tax Credit and the RESTAURANTS Act grant program, provided they are not used for the same expenses.

What’s Next?

We must all act to give the RESTAURANTS Act the best chance of becoming law. We have been patient for long enough.

We must let our representatives know we expect them to pledge their support for this bill formally.

The IRC provides several methods for ensuring our representatives understand they need to co-sponsor and pass the RESTAURANTS Act:

Email your representatives and ask them for their co-sponsorship.
Call your representatives directly and tell them why restaurants and bars need the RESTAURANTS Act to be voted on, passed, and signed into law. This is the number to dial: (202) 224-3121. The IRC has provided talking points here.
Share the graphic below on your social channels and encourage your followers to also contact their representatives and ask them to co-sponsor the RESTAURANTS Act. Use the following caption when posting: It’s official: the RESTAURANTS Act of 2021 is on the menu in both chambers of Congress. Call your representatives today and tell them that independent restaurants, bars, and workers can’t wait any longer for direct relief: 202-224-3121 #SaveRestaurants

All of that will take less than 20 minutes. That’s not a lot of time to help finally get this industry the support and relief it needs.

The RESTAURANTS Act is needed to prevent more permanent restaurant and bar closures, and to revitalize the industry. The road to recovery is a long one and getting this bill signed into law is a major step forward.

Please email and call your representatives. Please share the post and caption above on your social media. Please help save the restaurants, bars, and millions of people they employ.

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