Len Panaggio, Beverage Consultant
By Len Panaggio
It’s hard to believe, but we’re already in the final stretch of summer. From the graduation celebrations of June to Independence Day, America 250, and the World Cup reaching its fever pitch in July, the season has been packed, and I hope you’ve all reaped the rewards.
Except for the heat dome putting a damper on outside dining in early July, the coastal communities fared well in what is typically the biggest business month of the year. August is equally no slouch when it comes to volume, typically due to an influx of international tourists who favor the latter part of the summer. It’s also a transitional time, as coastal businesses slow down towards the last 10 days of the month but start ramping up in the cities as students head back to school. Every year it seems colleges start earlier and earlier, exacerbating the labor situation.
In Rhode Island, August has one holiday that many residents seem to forget until it suddenly arrives: Victory Day, which falls on August 10 this year. As many of you know, the Ocean State is the only place in the U.S. to celebrate this day. Labor Day falls on September 7 this year, bringing an extra week of welcomed summer business.
As August is also one of the busiest months for hurricanes in the Atlantic Basin, be sure to update and revise your hurricane/inclement weather plan if you have one. If you don’t and you are sitting in a vulnerable location, it’s time to implement one. We didn’t think we would have two major snowstorms last winter, including one for the record books, so don’t get caught off guard when it comes to serious weather conditions – no matter the season.
As the month winds down, it’s time to think about Oktoberfest beers. It sounds crazy, but since the advent of pumpkin beers, the life expectancy of Oktoberfest has shortened to end around Columbus Day. Buy early as consumers will be looking for pumpkin everything! As the weather starts to cool, make sure you have brown spirits and red wines for autumn ready to go! I also encourage all to really think about beer, wine, and spirit dinners as a way to drive business on slower nights. Customers are looking for experiences and there is a thirst (no pun intended) for learning more about these products firsthand.
That said, alcohol-beverage sales continue to decline, although they are showing signs of leveling out. The coveted group, Gen Z, is the demographic of the future and their habits are primarily what is causing the change. Boomers are slowing down their consumption for many reasons, but as a group they do purchase a lot and their choices have not really changed over the years. Millennials and Gen X account for 55% of sales with boomers at 35%; it’s Gen Z that is way behind. Evaluating your customer base is critical in driving your purchases to meet the demand of those individual groups. Ask your salespeople what they see out there. They have information that could help inform your purchases.
Now onto the all-important staffing issues which still linger in our business. Because so many seasonal employees leave at the end of August, creative scheduling is a must to not burn out the rest of your team. Buying adjustments need to be made as well; coastal restaurants need to turn their inventory into cash and locations in the cities need to prepare for an increase in volume. And for all restaurants, bottle creep needs to be evaluated: you know those bottles salespeople were enticing you with that are still sitting on your back bar? Do something with them. They are occupying valuable real estate.
The smart operators will do well and the rest will follow! Have a great August!
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.
