The Potential Positive Impact of Rising Wages in the Hospitality Industry

The Potential Positive Impact of Rising Wages in the Hospitality Industry

by | Dec 26, 2016 | Career

With Colorado and other states requiring an increase in wages for hospitality workers and tipped employees, many hospitality workers and managers are worried about the potential ramifications. Will it lead to fewer hires, less staff on hand to take care of customer demands, and fewer hours for existing workers, or will it lead to growth and prosperity within the hospitality industry? Here’s the good news: rising wages in the hospitality industry could turn out to be a good thing.

The Potential Impact of Rising Wages

Rising wages in the hospitality industry isn’t just an issue that impacts hotels and restaurants. It’s an issue that could potentially have a huge economic impact. The growth in wages leads to a number of things:

  • More people who are able to afford luxuries on their current salary
  • Overall economic growth for the United States
  • Fewer people who are unemployed across the United States

Staff wages may make up approximately 44% of the operating budget of many hotels and other hospitality businesses, but that doesn’t mean that an increase in the base wages of their workers will automatically lead to budget problems. Instead, far-sighted hotels and hospitality businesses will embrace the coming change and use it to advance their businesses.

Historically, when wages have increased, the hospitality industry has experienced a greater increase in income than it has lost income due to rising wages.

How to Make the Most of Rising Wages: Short-Term

For many hospitality businesses, a low increase in the price of their services or goods may be sufficient to offset the temporary shortfall that comes from raising employee wages. This can take several forms:

  • Raising the price of rooms across a hotel by a relatively minimal amount.
  • Decreasing the number of services that are covered by a room rental: for example, the on-site gym might require a daily fee.
  • Raising the price of entrees by a small enough amount that it doesn’t impact customer interest, but it does impact the bottom line.

How to Make the Most of Rising Wages: Long-Term

Rising wages in the hospitality industry mean that hospitality workers across the United States now have disposable income. As other industries raise their rates to match, those workers will be spending their money on luxuries that they couldn’t previously afford. This means that they’ll be spending more money in places like hotels and restaurants. Families who previously couldn’t afford to eat out may be able to fit a weekly or monthly trip to a restaurant into their budget, increasing the income of a restaurant. Families who have put off travel or who have been unable to afford regular trips will be able to get out on the road more regularly, which means that hotels will benefit.

Instead, far-sighted hotels and hospitality businesses will embrace the coming change and use it to advance their businesses.

Historically, when wages have increased, the hospitality industry has experienced a greater increase in income than it has lost income due to rising wages. In order to take advantage of this, the hospitality industry can take several key steps:

  • Create packages geared toward individuals who don’t often get to take advantage of vacations and hotel rooms. Offer small luxuries that will make them appreciate your business.
  • Base pricing on what your target market will be able to afford without straining their budget to help them turn to you instead of your competitors.
  • Look for ways to market to your preferred buyer personas to help bring them into your business.

As other states step up to the plate and increase the wages received by hospitality workers, it’s important to note states like California, where they passed similar laws but have experienced growth and prosperity as a result. The increase in wages for hospitality workers doesn’t have to be a headache. Instead, find ways to embrace this key shift in the industry in order to help your business grow and thrive.

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Sirvo Says: Elevated Dining in Denver & Boulder

Sirvo Says: Elevated Dining in Denver & Boulder

by | Dec 23, 2016 | IndiNews

If you’re looking to go big for your next meal, then Denver and Boulder definitely have options that fit the bill. With the elevated dining scene booming in Colorado, this list could very easily be larger. For now, here are 10 fine dining restaurants that will without a doubt satisfy your appetite.

1. Frasca

Named after social gathering places in northeast Italy, Frasca is one of Colorado’s finest dining establishments. Restaurateur Bobby Stuckey and Chef Lachlan Mackinnon-Patterson have created their own sort of gathering spot on the famed Pearl Street in Boulder. Sit back, relax and enjoy a quite memorable experience. Not too much else can compare with an elevated Italian cuisine, a broad and notable wine list and a level of service you have seldom seen anywhere else.

2. ChoLon

No stranger to praise, Chef Lon Symensma has been creating some of the most innovative dishes this city has ever seen. His plates are full of color, texture and most importantly, flavor. ChoLon’s Southeast Asia inspired menu helps elevate a dining scene that is often dominated by roasted meats and macaroni and cheese. Our suggestion – order the Grilled Octopus with Chinese sausage, young potatoes and pickled grapes. If you’re hoping to make an impression on someone and are unsure of where to go in town, make a reservation at ChoLon and let them take care of the rest. 

3. Elway’s

When you put an iconic name on the front of your restaurant there is a lot of pressure to not just be good, but to be great. Elway’s is just that. Despite the emerging competition, this fine establishment continues to offer next level service with memorable cuisine. Elway’s is your classic Denver steakhouse and is the right place to go when you want a hearty meal that justifies the price and satisfies your appetite.

4. OAK at Fourteenth

Another exceptional restaurant from owners Steven Redzikowski and Bryan Danton and yet another Boulder establishment listed in the top five of this list. A New American seasonal menu featuring locally sourced ingredients and a high (high) level of hospitality. OAK is constantly making measured adjustments to stay relevant and ahead of the game. The name represents the oak oven and grill used to prepare some of the best dishes in the state. It doesn’t have to be a special occasion to dine here, but it sure will feel like it’s one.

5. Shanahan’s Steak House

Okay, let us be clear here for all of our out of state transplants. Yes, Denver has two steakhouses named after a couple of local football heroes. Welcome to Bronco Country. Shannahan’s is very symbolic of local culture serving large servings of red meat within an elegant setting. What differentiates this steakhouse from the other ones in town? Probably it’s 6,000 bottle wine cellar. Take your family, take an important client or simply go and enjoy a great dinner with friends.

6. Flagstaff House

This former cabin retreat nestled into the side of a mountain is the perfect Colorado upscale restaurant. The views are breathtaking and the dining experience is one of kind. With over 15,000 bottles of wine to choose from and a phenomenal menu selection including our choice the Hudson Valley Foie Gras, pan seared and served with crispy braised Sweetbreads. Flagstaff House is truly a place to celebrate a special occasion with loved ones and you will enjoy every minute of it. 

7. Panzano

Located in the Hotel Monaco, this Northern Italian influenced restaurant has been one of the best places to eat in Denver for the last 17 years. Despite the departure of Chef Elise Wiggins, her influence and legacy carry on at Panzano. We advise ordering the Doppio Ravioli di Vetri, braised lamb, polenta rustica, calabrian chile and pecorino cheese. Panzano doesn’t just have great food, there is an elevated level of hospitality one feels right when they walk in the door. The perfect night is taking a loved one out on the town, reserving a room at the Hotel Monaco and eating at one of the best places in the city. Very memorable.

8. Del Frisco’s

For years Denver diners have been making it a point to eat at Del Frisco’s. Known as one of the best steakhouses in the country it was impossible to not place them on this list. This beautiful establishment is the definition of upscale dining in this great city. Despite the appearance of only catering to a more affluent customer base, Del Frisco’s treats all of its guests to a wonderful meal and experience. Don’t wait for that next special occasion, call today to reserve a table and enjoy.

9. The Nickle

The Hotel Teatro is one of the most charming places to stay in the city and located on the main floor is their equally charming dining establishment, The Nickel. Located in Denver’s historic Tramway Building, The name of the restaurant pays homage to the price of riding the train. Once again this is a great place to get a room and enjoy a great meal. The Nickel has an excellent food and beverage program as well as talented staff that delivers top notch service.

10. Edge

You may be thinking, “Another steakhouse?”. While Edge may offer a fine selection of steak options, it is much much more than your average steakhouse. First off, it is an extremely beautiful space located within one of the best hotels in the city, The Four Seasons. Edge has a wide selection of from the grill options, seafood plates and an array of delicious side dishes. The minute you enter the restaurant, you instantly feel like you are somewhere nice. That’s the whole point of dining at places like edge, right?

There is nothing better than treating getting dressed up and treating ourselves to a nice night on the town, hence this list. Sirvo loves and supports the local Denver dining scene! We have such an amazing food culture that just keeps getting better year after year. 2016 has seen the arrival of many great restaurants and we imagine 2017 will bring some more. If you or someone you know are looking to work within this thriving industry, head to our job board to search for that next great opportunity!

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Pop-Up Restaurants: The Pros And Cons

Pop-Up Restaurants: The Pros And Cons

by | Dec 21, 2016 | Business Toolkit, Management

A pop-up restaurant is kind of like the culinary world’s version of a military deployment. The eatery is set up in some sort of non-traditional location, perhaps with a bit of jury-rigging that is within the bounds of the law and safety standards, and is meant to only be there for a short time or to only serve meals sporadically. Meant primarily to promote a chef or their restaurant, they are also sort of like an individualized (and more ambitious) version of the stands set up at a food festival.

The pop-up restaurant can potentially set up anywhere it can operate legally and safely. They’ve been found everywhere from the roofs of city buildings to the inside of barns. Existing restaurants are generally the easiest choice, as all the necessary equipment is on hand, and the hosting restaurant can additionally get some cross-promotion buzz going.

They also do sometimes find themselves on the wrong side of the law. This is especially true of those set up in private homes, which are almost never zoned for such things. If they “pop up” just for one night, however, there’s very little chance of a law enforcement response unless something goes horribly wrong. The ones that operate out of a residence on a regular basis usually maintain an erratic schedule, shared by word of mouth among only a relatively small group of trusted friends and acquaintances, and only the most popular or careless get noticed by the local Health Department. A bigger legal danger comes in the form of serving alcohol without a license. In some areas, this can be side-stepped around by having diners BYOB, but this isn’t always a safe legal defense.

The big appeal of the pop-up is the relatively low cost to get going.

Assuming one is going the entirely legal route to promote their work or build interest in starting a more traditional restaurant, the big appeal of the pop-up is the relatively low cost to get going. Due to the transitory nature and usual lack of a full kitchen, the menu of the pop-up restaurant is almost always limited to a few dishes. Of course, the dishes will be something very unique or original to heighten the sense of being part of a special event, usually with the chef showing off their personal best dishes.

POP-UP PROS

  • It’s a relatively inexpensive way for a chef to get their name out and start getting people familiar with their work or helping them to establish themselves in a new area.
  • It’s also an inexpensive way to do a “test kitchen” of sorts that is detached from an established restaurant. New menu items can be introduced and experimented with while keeping them disassociated from the restaurant until there is certainty that they will work.
  • Chefs from different restaurants can cook together, which is not only great for a one-off event that patrons get really excited about, but also provides them with an opportunity to share some knowledge and technique.

POP-UP CONS

  • These are not great money-making operations. Even though diners are willing to pay good money to be a part of a pop-up if the right buzz is generated, the cost will be offset by the need to have a full staff to really make a good impression. A pop-up restaurant should be looked at more as a promotional measure that the chef can break even or only spend a small amount on rather than a way to bring in extra income.
  • There’s a pretty hard cap on the number of people that can be present, and you’ll often find there’s more interest than you can accommodate.

A pop-up restaurant should be looked at more as a promotional measure that the chef can break even or only spend a small amount on rather than a way to bring in extra income.

Our conclusion? Pop-up restaurants have been popping up for a few years now, so the trend isn’t entirely fresh, but it does seem to have strong legs so go for it as long as there’s good promotion and people are actually interested in the concept.

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Implementing Responsible Alcohol Service in Your Establishment

Implementing Responsible Alcohol Service in Your Establishment

by | Dec 19, 2016 | Business Toolkit, Management

Each state regulates alcohol — from its manufacturing, to selling, and the actions resulting from its use. This includes assessing the liability of any violations. If you serve alcohol in your restaurant, it is important that you and each staff member are aware of the laws, rules, and best practices in your state. Serving alcohol involves many risks. 

The failure to act responsibly may result in fines, loss of your liquor license, increased costs of insurance, or even imprisonment. Ultimately, it could result in losing your business.

Consequences of Serving an Intoxicated Guest

In almost every state, it is illegal to serve alcohol to an intoxicated person. There are numerous types of liabilities associated including criminal, administrative (liquor control commission), and broad civil liabilities via the Dram Shop Law. Therefore, it is imperative that you develop specific policies that ensure the responsible serving of alcohol in your establishment. This includes having a clear concise process for the difficult situation of denying service to an intoxicated guest.

Alcohol Awareness Training

Most liability insurances now require that all members of a restaurant, bar, or tavern staff undergo this type of training. Additionally, it is important because it helps underscore the importance of responsible service as well as the consequences of failing to do so. It also provides bartenders and servers with a factual base that enables them to make informed and often difficult, service related decisions with confidence. In addition to outside training, it is important that you have internal policies that define what to do when faced with these judgment calls.

The failure to act responsibly may result in fines, loss of your liquor license, increased costs of insurance, or even imprisonment.

Situational Awareness Training and Empowerment

Each member of your staff, no matter if they serve alcohol are important in the success of these policies, as often situations like these can be prevented. Train your staff to be observant. They should be listening and watching what is going on in your restaurant. Encouraging them to use their best judgment, empower each staff member to report any person or group they believe may present a problem. This is the best opportunity you have to prevent an incident from occurring. Once a report has been made, that is the time to have a manager or the owner drop by the table, speak to the patron, further assess the situation, and perhaps intervene.

Other Preventative Measures

  • Servers and bartenders keep track of how many drinks have been served.
  • Don’t serve drinks ordered for someone who is not yet present. As this person could already be intoxicated or perhaps even underage.
  • Have a visible authority presence in the bar area. This could be security or management.
  • Have signage posted with your policy

…it is important that they have the trust and support of management.

Tips to Refusing Service to an Intoxicated Patron

Because this is a judgment call that servers and bartenders are in the best position to make, it is important that they have the trust and support of management. Having a written policy that outlines the process is also helpful. These factors make it easier for them to exercise good judgment of how and when to refuse service. Robert Plotkin, founder of Bar Media offers the following advice on how to cut off an intoxicated guest.

  • When in doubt – don’t serve- Make this your policy. Because of the potential liability, isn’t it better to err on the side of caution?
  • Keep it simple- In the fewest words possible, explain that as a matter of policy, you will not be serving any more alcohol.
  • If possible, be discreet- There is no need to cause a scene that may embarrass the patron and potentially provoke an incident.
  • Utilize tact and diplomacy- Avoid using inflammatory language, disapproval, or criticism.
  • Remain firm- Once you have committed to this decision there is no turning back. To do so would undermine your credibility and authority.
  • Keep everyone in the loop- Notify the other staff and servers so that they do not mistakenly serve the guest additional alcohol.

For general precaution, management on-duty should be notified to take any further action needed, allowing the bartender or server to resume their regular roles. Management should determine whether to offer and arrange alternate transportation for the patron.

Keeping the patrons safe from harm and your establishment safe from liability is a job that falls to every employee. Knowing when and how to cut off an intoxicated guest is a judgment call often left to the bartender and servers. It is sometimes awkward and difficult, however, with proper training, guidelines, and internal support it can be accomplished with dignity and tact. 

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How to Work Your Way Up and Climb the Restaurant Ladder

How to Work Your Way Up and Climb the Restaurant Ladder

by | Dec 16, 2016 | Career, Management

Many of us have been presented the opportunity to move up to management in a restaurant. Some seek it out, while others seem to kinda just stumble into it. Regardless, the reality is that the opportunity does exist for those who wish to pursue it further. Every restaurant has their own process, some being more formal/professional than others. Here are a few pointers for anyone who is working in a restaurant and has entertained the idea of becoming a manager.

Use your voice

Restaurant management is constantly looking at their staff to identify who should be approached about a leadership role. If you are wanting to move up the ladder, then that should be communicated at the very beginning. Have a conversation, be it in the interview process or at some point during training. It also helps if you communicate it to the right person, i.e. the GM, Chef or Owner. Don’t worry if you seek a management role later in your tenure, just don’t expect anyone to be able to read your mind.

Take every opportunity to refine your talents and expand on your skill-set.

Become a trainer

Trainers are the staff leaders of the restaurant and are usually the people that are the most knowledgeable about product and service. They are also who the management team goes to for feedback and suggestions. If you are wanting to be taken seriously as a true leader within the restaurant, this is a role you must obtain and perform well in. Being able to work with new staff not only helps them learn, but it also allows you to develop your skills as a teacher. Think of trainers as the “elders” of the tribe, they are the ones that pass on the traditions and culture of the company. 

Lead by example

Nobody likes someone who is a know-it-all or is bossy, so don’t be that person. A true leader leads by example and sets a positive tone for others to follow. Whether you notice it or not, people are looking at you to see how you react in different situations. Keep a calm and cool demeanor during high-stress moments and lend a helping hand when needed. You don’t have to be everyone’s friend, but they have to know they can count on you when the going gets tough. If you cannot be recognized as a leader amongst your peers, don’t expect it later when and if you enter a management role.

Think of trainers as the “elders” of the tribe, they are the ones that pass on the traditions and culture of the company.

Develop professionally

Take every opportunity to refine your talents and expand on your skill-set. Being a leader is difficult, even for those who have “natural” ability. A lot of companies will offer training throughout the year or will even pay for classes or certifications that help you grow professionally. Often being the boss just means you have been deemed the one responsible for everything, which is a heavy burden to bare. In order to make a real impact, you must bring more to the table. How’s your wine knowledge?  What areas of the restaurant are you most unfamiliar with? Identify where you can improve and seek out ways to do so.

Obviously, there are multiple ways to move up the ladder and many different routes can be taken. These are just a few methods we suggest utilizing to move up the ranks. It is a totally different scenario for one to be hired into a management role as opposed to someone working their way up. For people without management experience, working your way up is the best option. Head to our job board to see what entry-level opportunities await you or if you already have a management background click here. 

 

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