Len Panaggio, Beverage Consultant
By Len Panaggio
With the arrival of May, we can officially bid adieu to any remnants of winter weather and welcome in the glorious tastes of summer weather that this month can bring.
Even better, there are many events and holidays to capitalize on in May. Graduations, especially colleges, as well as First Holy Communions, which are abundant this time of year and are very often celebrated in a restaurant or hotel or with a catered event at home.
Make sure you are aware of the events in your immediate vicinity.
The first major “holiday” is the second Sunday of May: Mother’s Day! I am always amazed that those who do the scheduling aren’t aware of the actual day it falls on (same with Father’s Day in June). And, a mere two weeks later, we have the day that we all wait for: the unofficial start of summer … Memorial Day! This year the Monday holiday falls on May 26.
I may sound like a broken record, but with all this excitement, you must be prepared to take on as much business as possible. The summer labor situation is still thorny; more college kids return to school earlier and earlier in August, which isn’t helpful for your busy season. It also seems that being a bartender isn’t as appealing to the younger generation as it once was. The big deterrent is that most bar shifts end at closing, which is typically later than the kitchen and usually requires cleaning and restocking. Gone are the glory days of being a bartender.
Beyond that, and likely more painful, is the cost of labor. I see more and more fees added to checks to offset the cost of labor. Some of the terminology used to add these “fees” to the checks is quite creative! I am not a fan of this practice, as I feel that menu prices should just be raised period. I am not as opposed to assessing a credit card fee for the use of the card and, happily, legislation has been introduced to forbid charging fees on sales tax and tips since the restaurant doesn’t benefit financially from either of these charges. If you are instituting this practice, make sure you aren’t adding it to debit cards, as that is forbidden. Be sure to alert your guests to the charge or encourage them to use cash or debit cards to avoid the fee altogether.
And speaking of fees, as of this writing, imposing tariffs is rearing its ugly head. My advice is to talk to your salesperson and get a read on the pricing of the imported products you use at your bar, of which there are many! The question is how much the cost will go up and whether consumers are willing to pay a significantly higher price for their favorite imported beverages. Some good news may be that American products will be in higher demand to fill the void, but there is a very real possibility that price gouging may occur. Again, talk to your salesperson and be sure that your bar program is ready to absorb the increases, raise your prices and remove imported products. There is a lot to consider if in fact it does happen.
Lastly, is your physical plant ready for the dramatic increase in business and the wear and tear that comes with it? I mentioned this in the last few articles; there is still time to address all those concerns but the clock is ticking.
Despite all these headwinds, business should be robust and now is the time to make money. Good luck!
Len Panaggio’s career in food and wine spans more than three decades as an owner and as a beverage director at some of the top restaurants in Rhode Island. Currently a hospitality consultant, Len is a graduate of the University of Rhode Island and has attended the Culinary Institute of America Master Sommelier program and the Sterling School of Service and Hospitality.
