Len Panaggio, Beverage Consultant

By Len Panaggio

At long last, June is upon us—and with it we hope comes better weather and the start of a busy tourism season. It used to be that June was the busiest month for weddings, but it seems that October now holds that title, with many brides taking advantage of the beautiful fall weather in New England. And with fall weddings come summer bachelor and bachelorette parties, which have grown bigger and more festive. June is also a big month for graduations from kindergarten to high school. This is not only good news for restaurants but also caterers and hotels. Reminder, check IDs!

There are no major holidays in June except for Father’s Day—and this holiday seems to be transitioning from a backyard BBQ into a restaurant experience, so be prepared with menu and drink specials! The end of the month leads directly into the Fourth of July and the real start of the summer season. I don’t need to tell you that July and August are critical for the coastal communities, and while cities tend to be soft, they get bolstered by promotional experiences like restaurant weeks.

Traditionally, June represents the month that businesses need to be fully staffed for summer. Unfortunately, staffing issues continue to be a problem with no end in sight. The young population is not interested in working nights, holidays or weekends, it seems. The work paradigm has shifted and it has really hit the hospitality industry, causing businesses to compete for talent and make big adjustments to not only scheduling but often by reducing hours to reflect the ability to operate effectively.

Now, aside from the cost of labor continuing to rise, the cost of goods is also rising, though not as fast as a few years ago. Your beverage producers are increasingly dealing with higher input costs, resulting in increased costs to the consumer. And this is the time of year they do so in hope that the increased business will mask the price increases. As I have said before, sit with your salespeople and reps and ask them what they can do for you to offset the rising cost of their products. You’d be surprised at what they may offer.

I am sure that by now most of you have had cause to turn on your air-conditioning system. Remember back a few months ago I warned against not conducting preventative maintenance? Hopefully, you have listened, as trying to get HVAC technicians on-site while in the heat of the moment (all puns intended) is literally impossible in the warmer weather—and that will result in business lost. The same holds true for all your refrigeration. These systems need to be working well and at their best performance level. With reports of a hot summer, all cooling equipment will be pushed to the limit, so be prepared. And if you’re not, do it right now! Don’t hesitate.

And speaking of lost business … be vigilant about what bills our legislature is mulling over. The reduction or elimination of the tip credit will have a devastating effect on your bottom line, as will the increase in the minimum wage. Look at what the wage increase has done to California restaurants—and it is moving this way. Washington, D.C., has cut more than 3,700 full-service restaurant jobs since it started rolling back its tip credit last year.

It’s a delicate balancing act. You can only raise prices so much, you can only afford so much in labor, too much of either will result in an operational crash and significant pushback by your guests. So, get involved, write to your state representatives and implore them not to try and fix a problem that does not exist. There are plenty of issues that actually need to be remedied.

Happy Father’s Day!