Len Panaggio, Beverage Consultant
By Len Panaggio
I think it is safe to say that winter is finally over, and what a winter it was. It was painful; no doubt about it! Now that we’ve “sprung forward” on the clocks, the days are longer, the weather a touch warmer, and we’re that much closer to summer.
April is a reminder that something better is always around the corner, as the expression goes. So, what do we have to look forward to? There aren’t any significant holidays in April with the exception of three special days.
First, April 15, Tax Day when we reconcile with the government on a personal level with corporations filing depending on their end of fiscal year date. Supposedly, refunds will be larger this year due to the Big, Beautiful Bill enacted last summer which touted benefits for the average person, a few for seniors, and for our industry: No tax on the first $25,000 in tips earned and no tax on overtime, which is a boon for the back of the house.
Second, Easter is early this year, April 5. While not an official holiday, many still find it a good opportunity to get family together and head to one of our great restaurants. Marketing that brunch, lunch or dinner sooner than later helps create holiday memories and fill seats. Don’t wait.
Third, another holiday that isn’t exactly official, at least not for us in Rhode Island is Patriots Day on April 20, which marks the beginning battles of the American Revolutionary War and is celebrated in Massachusetts and Maine. It is a three-day weekend (and the start of April break for local schools). Many wander down to little Rhody to enjoy a mini vacation. I bring this up because so many schedule makers in hospitality overlook this day.
So, what is happening in the beverage world? Things don’t look all that bright with a few exceptions. Demand for alcohol is weak in the U.S. and slow in China, a trading partner that enjoys many of our alcohol beverages. Tariffs are easing up somewhat, which will lower the costs of imported beverages which we so enjoy.
As I have mentioned in previous articles, there should be some great buying opportunities, especially in the wine portfolios. Wine is really suffering and while the large conglomerates will survive, some of the smaller, boutique wineries are closing up. This is, of course, alarming to the wine world; breweries and distilleries are not immune, and the distributors are feeling it too, responding with layoffs across the country.
What is causing all of this? We have discussed ad nauseam the shift of the demographic’s choice for beverages, Gen Z in particular. Their disdain for alcohol is quite apparent. But there are other contributing factors, the least of which is the concern over the economy. Hopefully the changes in the tax code and refunds will alleviate some of the anxiety; time will tell.
In conjunction with that issue, those that still want to enjoy alcohol are “downsizing”, e.g. giving up the 25 Year Old Macallan for a 12 Year Old. This is the time to again assess your inventory and purge what’s not selling, which isn’t always easy. It demands creative drinks using dogs, or discounting wine either on your menu or on particular day parts.
April is also the time to start thinking about staffing levels. Hiring is still a problem. Scheduling and utilizing the staff in place is a challenge. Bartending was once a coveted position in the hospitality world, but its shine is dimming on those long nights, holidays and weekends. Many of the first-time bartenders I have met over the winter are ill-equipped to be in a busy bar.
Training is key and many get little or none as they see no value to it: How hard can it be to serve a beer? Well, training encompasses so much more than that to be effective and sustainable. Fortunately, the hospitality industry here in Rhode Island offers many programs from TIPS to THC for first-timers or seasoned professionals. Stay current and relevant, and you can stay marketable. The RI Hospitality trade association education page is good place to start.
As we prepare for summer, good luck. Better days are coming despite the headwinds!
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.
