Len Panaggio, Beverage Consultant
By Len Panaggio
November is an interesting month for hospitality businesses. Change begins on Nov. 2 with turning the clocks back an hour, creating shorter and darker days and having a real effect on business as customers begin to hunker down in preparation for those long winter nights.
The month also holds what I consider to be two four-day weekends. The first being Tuesday, Nov. 11, Veterans Day. While not technically falling on a weekend, it does create a nice opportunity to create a four-day weekend. Thanksgiving falls on the fourth Thursday of the month, this year on Nov. 27., but in my experience, many folks turn this into a four-day weekend, as it officially kicks off the holiday season with Black Friday in full effect.
Despite earlier and earlier holiday-themed shopping days largely driven by Amazon Prime days in October, retailers still put a lot of emphasis on aggressive pricing, promotions and gift card sales right after Thanksgiving. Over the years, gift cards have topped the list of most frequently purchased Christmas gifts, and if your operation isn’t offering incentives to purchase them, you will certainly miss out on sales.
Speaking of incentives, with the last quarter of the year upon us, distributors and their suppliers will be offering deals. Typically referred to as OND for the last three months of the year, suppliers have enormous pressure placed on them to make their numbers. So, be on the lookout for attractive deals on the select items they need to clear out. If you can take advantage of these buying opportunities, do it—it gives your bar staff the opportunity to
get creative!
Unfortunately, tariffs are impacting discounts. There is currently a 15% tariff on EU products and vice versa. Over the years, suppliers and distributors absorbed some of the tariffs, but I don’t foresee that happening as a long-term selling strategy. That being said, if there is an incentive to buy product before the new year, consider it, as pricing is going to be an even bigger concern in 2026.
Another factor that is likely affecting your bottom line is the Ozempic effect. With more and more consumers taking these weight loss drugs— thereby not eating as much or out as often—restaurants need to adjust menus to try and retain customers. A focus on healthier, seasonal, protein-based meals is critical.
Compounding the problem is the drastic decline of alcohol consumption, thereby creating a real need for creative mocktails and nonalcoholic options. Management needs to put their collective thinking cap on and create a plan to combat this, as it is real and will have a deleterious effect on your bottom line.
Speaking of your bottom line, our legislature voted to increase minimum wage on Jan. 1, 2026, to $16 per hour, adding to your already diminishing returns. Many operators are trying to offset these increases by charging for the use of credit cards, adding a culinary appreciation fee and so on. But there are only so many rocks we can look under for additional dollars.
In the short term, look at your scheduling—especially during this slower season. Do you need two bartenders? Barbacks, are they always necessary? And what is your policy for keeping the bar open? Do you have one? With the decrease in consumption, late nights aren’t as profitable as they once were years ago! And hours of operation clearly need to be adjusted to meet lower winter demand, including closing for a day or two if warranted.
There are many headwinds facing our industry and they require constant monitoring and attention to change course accordingly. Oh, and how is your Oktoberfest beer inventory? Happy Thanksgiving!
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.
