Apr 2014 Bar Business Magazine by Bar Business Magazine

Tails of the Vine:

Wine cocktails offer a new way to push vino sales on-premise.

The How-To Publication

BAR BUSINE$$ April 2014

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On Tap April 2014

CONTENTS

28 Wine

Cocktails

HOW TO 15

Making Changes

Special forces

A feminine touch

Former Gerber Group executive Jeff Isaacson is helping a successful restaurant group refresh its on-premise vibe.

Our own Bob Johnson has launched a program to help train American military veterans in the art of bartending.

At a new pub called Grace in New York City, the cocktail menu was created exclusively by women.

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April 2014 Bar Business Magazine

On Tap

BAR BUSINE$$

CONTENTS

Features 28 From the vine Mixologists from around the country talk about the appeal of using wine cocktails to spike your vino sales on-premise this season.

34 spring fling

Departments 4 Bar room drawl 6 Booze News Perlick puts up several new options you can tap into on-premise; New tablets from Buzztime; The Real McCoy wins; Corona on tap just in time for Cinco de Mayo.

46 Inventory 48 h oliday happenings 52 Ow ning Up

With Cinco de Mayo on the horizon, our quarterly seasonal cocktail feature looks at some great Mexicaninspired drinks for spring.

10 liquid Assets Big beer companies like Heineken USA are responding to the craft boom by thinking outside of the box on new flavors and styles.

40 Big six It’s one big house party on Sunset Boulevard at the newly opened State Social House in Hollywood. Smoke ‘em if you got ‘em.

ON THE COVER

Heineken USA introduces two new Strongbow Hard Apple Cider profiles, plus its Desperados beer.

“Bar Business Magazine” (ISSN 1944-7531 [print], ISSN 2161-5071 [digital]) (USPS# 000-342) is published April, April, June, August, October, & December for $45.00 per year and January, March, May, July, September, & November will only be offered in a digital format at no charge by Simmons-Boardman, 55 Broad St 26th Fl., New York, NY 10004. Periodicals postage paid at New York, NY and additional mailing offices. Copyright © 2014 Simmons-Boardman. All rights reserved. Printed in the U.S.A. No part of the magazine may be reproduced in any fashion without the expressed written consent of Simmons-Boardman. Qualified U.S. bar owners may request a free subscription. Non-qualified U.S. Subscriptions printed or digital version: 1 year US $45.00; Canada $90.00; foreign $189.00; foreign, air mail $289.00. 2 years US 75.00; Canada $120.00; foreign $300.00; foreign, air mail $500.00. BOTH Print and Digital Versions: 1 year US 68.00; Canada $135.00; foreign $284.00; foreign, air mail $384.00. 2 years US $113.00; Canada $180.00; foreign $450.00; foreign, air mail $650.00. Single Copies are $10.00 each. Subscriptions must be paid for in U.S. funds only. For Subscriptions, address changes, and adjustments, write to: Bar Business Magazine, PO Box 10, Omaha, NE 68101-0010. Instructional information in this magazine should only be performed by skilled crafts people with the proper equipment. The publisher and authors of information provided herein advise all reader to exercise care when engaging in any o the how-to activities published in the magazine. Further, the publisher and authors assume no liability for damages or injuries resulting from projects contained herein. All rights reserved. POSTMASTER: Send address changes to Bar Business Magazine, PO Box 10, Omaha, NE 68101-0010.

Bar Business Magazine April 2014

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Bar Room Drawl By Chris Ytuarte Editor-in-Chief

You Can't Beat a Bar " I try to tell a story the way someone would tell you a story in a bar, with the same kind of timing and pacing.” — Chuck Palahniuk, author of Fight Club The above quote says a lot—a whole lot—about the bar industry. One of today’s most respected modern writers, Chuck Palahniuk, in one sentence, almost gives definition to that indefinable thing that is tavern culture. He shapes his own writing style after it, yet most don't even know what “it” is. And that’s just the way we like it. Bar room drawl, as one might be inclined to call it, is delivered in a certain cadence, with a volume altered by the din of others conversing, the jukebox music, and maybe some laughter. The pace of a story being relayed over a few drinks reflects just that—it may take a few drinks to get comfortable with the topic, to get into all the gory details, or just to endure the totality of it. A bartender may interrupt, and is welcomed to do so by those who need a new cocktail. A friend may arrive, and the narrative shifts to include their side of the story. There is a beginning, a middle, and a conclusion, and in between, there is the bar scene that already exists around you, writing its own new story even as the one you’re telling wraps up. Chuck Palahniuk would seem to understand this, and appreciate this, and even has his work reflect this. But who else truly does? Does every bar 4

Bar Business Magazine April 2014

owner, manager, and bartender understand it? Is that why they’ve invested their own lives and work in the indefinable charm of the bar? Does every customer who walks through the door of a bar or club or tavern aspire for this kind of esoteric experience every night? Do they comprehend the true potential awaiting them each time they sit down on a barstool? I don't know. But I will tell you this: The experience, which in the above description may seem like some spiritual ideal, is only attainable in a bar. In late March, Starbucks announced that it would be expanding its alcohol sales to thousands of its ubiquitous coffee cafés around the U.S., referring to its offering of beer and wine as “Starbucks Evenings.” Customers will have their IDs checked, and along with their beer and wine will be able to order small plates like truffle macaroni and cheese any day after 4 p.m. This is not entirely new. In 2010 Starbucks launched the program at one Seattle location, then expanded to a dozen spots in Chicago, Atlanta, and Southern California in 2012. With more than 20,000 locations worldwide and 11,500 in the U.S., it may take a while for “Starbucks Evenings” to invade your neighborhood, but it’s coming. And it’s another challenge to your bar sales. But remember: There is an indefinable essence to the experience you offer as a bar owner that no Starbucks can; just be sure that you are offering it. It’s true— you can’t beat a bar. And I don’t see Chuck Palahniuk modeling his next novel on the classic narrative styling of stories told in a Starbucks, do you?

BAR BUSINE$$ MAGAZINE

April 2014, Vol. 7, No. 4 Bar Business Magazine (ISSN 1944-7531) is published by Simmons-Boardman Publishing Corporation 55 Broad St 26th Fl., New York, NY 10004 executive offices

President Arthur J. McGinnis, Jr. Publisher Arthur J. Sutley 212-620-7200; fax: 212-633-1863 asutley@sbpub.com editorial

Editor-in-Chief Chris Ytuarte 212-620-7223; fax: 212-633-1863 cytuarte@sbpub.com art

Creative Director Wendy Williams wwilliams@sbpub.com Art Director Sarah Vogwill svogwill@sbpub.com production

Corporate Production Director Mary Conyers mconyers@sbpub.com circulation

Circulation Director Maureen Cooney mcooney@sbpub.com advertising sales

Art Sutley 212-620-7247; fax: 212-633-1863 asutley@sbpub.com circulation department

800-895-4389 Bar Business Magazine is published monthly. All rights reserved. Nothing herein may be reproduced in whole or in part without written permission of the publisher. To Purchase PDF files of covers, layouts or hard copy reprints, please call Art Sutley at 212-620-7247 or email asutley@sbpub.com.

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Booze News

Tapping In to Something Good

Perlick Unveils Twelve New Beer and Wine Dispensing Tower Options

erlick, a leader in total package bar equipment and beverage dispensing systems, recently announced the launch of twelve new glycol-ready decorative beer and wine tower options. Part of Perlick’s continued expansion of its Century System dispensing tower line, the new selections include the Brigitte, Illuminated Brigitte, Sexy and Illuminated Sexy towers. Perlick began expanding its Century System dispensing tower offering in 2013, when the company launched 158 tower options. With the latest, decorative additions, Perlick now boasts 170 new options. “The Century System dispensing tower expansion is Perlick’s response to the growing interests, on the part of operators, to offer a wider assortment of beers, particularly craft beers and wines, given the proliferation of wine on tap,” states Vice President of Sales for Perlick’s commercial products, Jim Koelbl. “Our new, decorative tower selections provide attractive options for operators focused on enhancing their on tap beer and wine offering as well as the character or theme of their bar.” Perlick’s newest beer and wine dispensing tower options include: • Brigitte Towers: A 3, 5, or 7-faucet tower offered in a polished chrome-plated finish (available in May 2014, options include faucet locks) • Illuminated Brigitte Towers : Offered in a polished chrome-plated finish with 3, 5 or 7-faucets and plugand-play illuminated medallions (optional faucet locks)

Bar Business Magazine April 2014

• Sexy Towers : A 2-faucet tower offered in chrome or gold-plated brass (available options include faucet locks) • Illuminated Sexy Towers : Offered in chrome or gold-plated brass with 3 or 4-faucets, plug-andplay illuminated medallions or standard white badges, and the 3-faucet model has the option of flooding with ice (available options include faucet locks) Family owned since 1917, Perlick’s award-winning commercial product lines have maximized the profitability of the world’s finest restaurants, bars, stadiums, hotels and resorts. As a Milwaukee, Wisconsinbased manufacturer, Perlick is dedicated to providing innovative, customizable food and beverage storage and serving solutions. To learn more about Perlick’s beer and wine dispensing tower options currently available to all on-premise owners and operators, visit www.perlick.com and check out the different styles and looks. Pour on!. www.barbizmag.com

NTN Buzztime Brings Next Generation Tablets to North America

uffalo Wild Wings, Inc., recently announced that it is partnering with NTN Buzztime, Inc., to bring Buzztime’s BEOND tablet-based entertainment platform to all of their North America restaurant locations by the end of 2015. Buzztime’s BEOND tablet lets Buffalo Wild Wings guests order food, request songs and television programming, play games (both multi-player and arcade-style), and pay the bill. The seven-inch Samsung Galaxy touchscreen tablets are pre-loaded with game and music options. With a mix of complimentary and paid content, the BEOND tablets enable multiplayer, multi-location gaming; guests can play popular trivia and poker games against other individuals, another table or even other restaurant locations. The Guest Experience Wingman feature allows guests to send an alert to their server with pre-defined requests like questions on how to use their Buzztime tablet, set up a Blazin’® wing challenge or requests to have a TV channel changed or get their check. Already available in approximately 150 corporate-owned locations, it is expected that the tablets will be rolled out to about 500 Buffalo Wild Wings restaurants by the end of 2014 and to all North American locations by late next year. “Our Guests come to Buffalo Wild Wings for our ultimate sports-viewing atmosphere, flavorful wings and icy beers, but we also wanted to take our personal entertainment platform to the next level,” said Ben Nelsen, Vice President of Guest Experience for Buffalo Wild Wings. “We worked closely with Buzztime to customize tabletop tablets that align with our brand, streamline some of our most popular gaming and music features and enhance guests’ social interaction with the Buffalo Wild Wings brand. Our intention is that the suite of features will evolve as we continue to listen to our guests and bring them the best possible in-restaurant experience.” Replacing Buffalo Wild Wings’ existing Buzztime Playmaker trivia consoles, the tablets will include complimentary core games such as trivia and poker, with additional paid games and jukebox selections available for guests interested in a premium experience. Nelsen noted that he expects an ordering and payment feature to be available on the tablets in the second half of 2014, and will help to connect the entertainment and menu experiences. “Tabletop technology isn’t just the future, it’s here now,” said Buzztime Chief Development Officer Vladimir Edelman. “We already connect millions of people across the country through our games; now we are going beyond that to create an even more connected experience. We are incredibly proud to be deploying our cutting edge products with Buffalo Wild Wings, which places so much emphasis on customer experience and entertainment.” The multi-year agreement follows a successful test of the tablets in approximately 30 Buffalo Wild Wings locations. The next-generation technology was very enthusiastically received and widely used by a variety of guests, ranging from groups of adult sports fans to families with younger children, Edelman said.

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April 2014 Bar Business Magazine

Booze News Just in Time for Cinco de Mayo CORONA ON DRAFT The Corona family is building on the success of its brands with the national expansion of Corona Light on draft, and the introduction of Corona Extra on draft in test markets. Corona Light draft will continue its momentum following successful roll-outs in key markets in 2012-2013 by launching in more than 35 U.S. markets. Corona Light, the third-largest brand in the Crown portfolio, continues to outpace the premium light category after a 2.9 percent sales increase in 2013 and a sales increase in 18 of the last 19 years*. “By expanding Corona Light on draft nationally, we look forward to improving our overall draft business, which accounts for approximately 2% of our business,” said Jim Sabia, chief marketing officer for Crown Imports, exclusive U.S. importer of Corona Light and Corona Extra. “With draft beer accounting for approximately 10 percent of the industry as a whole we’re excited about the growth opportunity with both Corona Light and Corona Extra on draft.” Corona Light draft will be ideal for a variety of occasions, appealing to light beer drinkers who want a more premium experience. In previous roll out markets, the presence of Corona Light draft contributed to a brand trend that is 12 percent better

than non-Corona Light draft markets. Corona Extra, introduced nearly 35 years ago in the U.S., has celebrated many exciting brand milestones, including becoming the number one imported beer and the number five beer overall. Introducing Corona Extra on draft will be an historic moment for the brand. Corona Extra draft will appeal to Millennials and Hispanic consumers that have continued to identify with the iconic brand. Crown Imports’ studies have shown that Millennials tend to prefer beer on draft, making it important for the company to raise the brand’s presence in this channel. These studies also indicate that Hispanic consumers are looking for their favorite beer on draft, with 25% of them naming Corona Extra as their preferred beer. Corona Light draft was made available in more than 35 U.S. markets, including New York City, Chicago, Los Angeles and Dallas beginning March 10, and Corona Extra draft was made available in three U.S. markets the same day.

It’s the Real McCoy

eal McCoy Spirits Corp., makers of The Real McCoy Rum, added yet another accolade to its growing list of honors during the 2014 World Rum Awards held in London, England recently. Part of the World Drinks Awards, the organization has been recognizing exceptional spirits and design since 2007. During the latest installment of the competition, the 3-Year-Aged expression was awarded the title of “Best White Rum in The World” while the 5-Year-Aged took home a bronze medal. This latest accomplishment tops the list of 14 awards that Real McCoy Spirits Corp. has earned for its portfolio of rums, which was introduced in the U.S. just a little over a year ago. The Real McCoy rum is a labor of love for the brand’s founder and CEO Bailey Pryor, who conceptualized the rum while filming an Emmy-award winning documentary about Bill McCoy. The pioneer rum runner of the Prohibition era, McCoy made a name for himself by delivering high-quality unadulterated rum to the U.S. during a time when most spirits were laced with chemicals and additives. As a result, his product was often referred to as “The Real McCoy,” a phrase most widely associated with Bill and one that gave birth to an entire brand. “When we first began

Bar Business Magazine April 2014

this journey, our goal was to create a product that best emulated what Bill McCoy stood for,” said Pryor. “The fact that the rum community has not only welcomed us, but has been so complimentary of the rums that we are producing, has been a real honor for us, and has really exceeded our expectations.” The company produces three rums: 3-Year, 5-Year and 12-Year-Aged expressions. Over the last year, the portfolio has received critical acclaim from industry leaders such as Simon Difford, Beverage Testing Institute and the Ultimate Spirits Challenge.

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Liquid Assets

INNOVATION

Nation

With a renewed dedication to unique product development, HEINEKEN USA leads the way in the battle for beer drinkers who have more options today than ever before. By Chris Ytuarte

he numbers don’t lie; thanks to a general improvement in the economy and a newly stimulated consumer palate, craft beer and spirits are seeing growth spurts in the U.S. marketplace the likes of which only one other industry entity can truly relate—big beer. The long-time rulers of the roost—the global beer giants whose names are known to all—can see the writing on the wall, and they fully understand where the American drinker is looking today: everywhere. The notion of an innovation nation amongst the big beer producers is one to celebrate in the bar business. Whether reactive to forces in play or proactive in the face of change, if the big boys of beer are ready to think outside of the box, it can only mean good things for the bar industry. And that is a good thing for all of us. “I think it’s a response to a lot of things happening in the marketplace,” says Monique Acevedo, vice president, 10

Bar Business Magazine April 2014

Innovation, HEINEKEN USA. “I think beer right now is a very dynamic category where we’re starting to see a lot of innovation. Things are very different, in that beer has been pretty much regarded as, ‘I like my beer, don’t touch it.’ But that’s changing. People are really open to different beer styles, and craft is one beer category that started that. You also have flavored beers, FMBs [flavored malt beverages] and ciders, so there are a lot of categories we look at for inspiration.” And at HEINEKEN USA, they are indeed looking. In 2011, in fact, the company created the new innovation department and installed Acevedo to lead and grow the brand’s capabilities in the area, having already done so at companies like Diageo, where she was responsible for leading the innovation strategy and business plan for new products like Crown Royal Black and Bulleit Rye Whiskey. She also spent eight years at The Coca-Cola Company, where she played an instrumental role in the

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development and launch of Dasani Water, Sprite Zero and Vanilla Coke. Obviously, when it came time to innovate, HEINEKEN USA knew where to look, and they knew what they were facing. According to The Brewers Association, craft brewers reached 7.8 percent volume of the total U.S. beer market in 2013, up from 6.5 percent the previous year. Craft dollar share of the total U.S. beer market reached 14.3 percent in 2013, as retail dollar value from craft brewers was estimated at $14.3 billion, up from $11.9 billion in 2012. The association called craft beer “a primary driver of growth in the beer industry.” So how does HEINEKEN USA respond? By looking outside of the box and launching new products poised to invigorate the marketplace this spring, including a tequila-barrelblended lager called Desperados, two new styles of its Strongbow Hard Apple Cider, and the lemonjuice-infused Amstel Radler. “This is a great time to be in beer, as an innovator, because I think there is so much opportunity to experiment, try new things, and borrow trends from other categories,” says Acevedo. “We’re looking to expand our traditional beers, and cider was the first step last year. Now we’re bringing in Desperados, which is a new beer style, and Amstel Radler, another new beer style. So we are definitely pushing and taking inspiration from a lot of different areas outside of beer.” HEINEKEN USA unveils Desperados with a proprietary recipe in the U.S., having already been available in 66 countries worldwide as a variation of what American consumers will see. “It’s lager beer that is blended with a small amount of beer that has been aged in tequila barrels,” explains Acevedo. “It ages for about two to three months in that tequila barrel, and then

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Desperados is a lager beer blended with a small amount of beer that has been aged in tequila barrels.

April 2014 Bar Business Magazine

Liquid Assets

“What’s in the bottle changed also... We’ve increased the profile of the apples, and it tastes much more natural.”

after that a small percentage is blended in with the lager. Tequila barrels impart a lot of flavor, so very little amount is actually put in, or else the beer would be undrinkable.” A regional rollout of Desperados is underway in the southeast U.S., where the company anticipates sophisticated palates in cities like Miami and Atlanta will serve as a proving ground for the unique beverage. “It was important for us in doing our regional launch to pick cities that we felt were the right match for the brand,” Acevedo says. “We thought it would be most successful launching in markets that are very cosmopolitan and leading-edge.” 12

Bar Business Magazine April 2014

Available on-premise in bottles only, HEINEKEN USA expects the newly designed look of Desperados to communicate the company’s continued leadership in the premium category. “All of the innovations we create are intended to help us increase our leadership in upscale,” says Acevedo. “We have a unique position there already, with Heineken and our other European and Mexican imports, so our innovations are here to help us increase our footprint.” After bringing Strongbow Hard Apple Cider to the American marketplace en force last season, HEINEKEN is unveiling two new variations this spring—Strongbow Gold Apple and Strongbow Honey & Apple—as well as a new bottle shape for all Strongbow products that was inspired by the wine and spirits categories. The updated bottles have more curves and impress once again the upscale nature of the product, something the company feels is a true differentiator between Strongbow and other ciders. “What’s in the bottle changed also,” says Acevedo. “We’ve done a lot of testing since we’ve taken the brand over in the last year, and while the liquid is good, we felt there were opportunities to make it more palatable to our younger core consumer. We’ve increased the profile of the apples, and it tastes much more natural.”

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“Innovation is paramount to build brands and the category... There’s no limit to new ideas”

keep was running low on beer just as he got overwhelmed by a group of bicyclists that came into his bar, so he stretched his supply by mixing it with lemon juice, and that’s how a phenomenon was born,” says Acevedo. Obviously, innovation begets innovation. “Innovation is paramount to build brands and the category,” stated HEINEKEN N.V. Chairman of the Executive Board/CEO Jean-François van Boxmeer at a recent company presentation. “During the year we made good progress towards reaching our stated 2020 innovation rate of 6% of revenues. Through the continued roll-out of products like Radler, a refreshing mix of beer and natural juice, innovations introduced in the markets within the last three years now represent EUR1 billion or 5.3 per cent of revenues.” And in the U.S., Acevedo and HEINEKEN USA expect the same kind of response throughout the bars of America. “There’s no limit to new ideas,” she says. “We spend a lot of time making sure that we have great beers and ciders. We put a lot of focus on making sure our beers get to consumers, and we go on-premise to build our brands because it’s the ideal environment for people to taste them. While it’s not the only place our products are available, it’s really the optimal place for consumers to have their first experience with our products.”

The new Strongbow Honey & Apple style was also inspired by market trends in other categories, such as whiskey and vodka brands that have incorporated honey flavoring into their products. “Honey right now is a really hot flavor, and while it seems sweet, it works very well in balance with the apple,” says Acevedo. “What comes across is something that is actually a very unique taste versus others in the market.” While Strongbow Gold Apple will be available on-premise in both bottle and draught, Strongbow Honey & Apple will be bottle-only. “The majority of people, in terms of our testing, seem to prefer having a bottle they can pour over ice, which has a more premium feeling to drinking it that way,” Acevedo says. HEINEKEN USA is also excited about its new Amstel Radler, a combination of 40% beer and 60% lemonade made from natural juice. “The legend behind a Radler is that it was established in the on-premise when a bar

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April 2014 Bar Business Magazine

How To:

our Revitalize Y Venue Experience

A Different Perspective on Success Jeff Isaacson has taken his valuable experience at The Gerber Group and become a independent consultant. Now working with an established restaurant group that needs to revitalize its on-premise experience, we talked to Jeff about his new outsider status, his outside perspective, and his outsized success in bringing some new life to these venerable venues. By Chris Ytuarte

here are no rookies in this story. Jeff Isaacson has seen and done a lot in the nightlife industry in his time with The Gerber Group, and Ark Restaurants has opened and maintained some of the best venues on the east coast. There is a lot of experience on both sides of the table. But sometimes, when you’ve been around for a while, you need a different perspective on things, and that sentiment fits both Ark and Isaacson these days. The two parties have met at just the right time.

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Coming off a 20-year run with The Gerber Group where, as a managing partner, he helped oversee the operations of more than 30 bars, lounges, and clubs around the world, Isaacson recently went out on his own to create On the Rocks Consulting (OTRC). It was time for a different perspective. Isaacson’s leadership, relationships and extensive knowledge of the nightlife and spirits industry have earned him the reputation and respect for having steered the nation’s first group of fashion cocktail lounges to immense April 2014 Bar Business Magazine

How To:

"It's visual and audio and tastes. We're trying to stimulate all of the senses, where in the past we hadn't been doing that.” Jeff Isaacson growth and profitability with The Gerber Group, so it didn’t take long for opportunity to knock. An early meeting with Michael Weinstein and Vinny Pascal, respectively CEO and COO of Ark Restaurants, was all it took. “What Michael and I discussed initially, after he learned what I did with Gerber and their liquor programs specifically, was how Ark focused so much on the kitchen and they hadn’t focused as much on the bars. And what they wanted me to start doing initially was to take a look at all of the bars at all of their restaurants and see where they could improve. So that’s what I’ve been doing.” Now working as a Corporate Director for Ark Restaurants overseeing its Bars and Beverage program, Isaacson may be underselling his new endeavor a tad. Ark owns and operates 20 restaurants and bars and 22 fast food concepts and catering operations, including five venues in New York City, three in Washington, D.C., and seven in Las Vegas. According to reported fourth-quarter financial results ending in September 2013, total revenues for the year were just over $130 million. This was no small operation Isaacson was stepping into, and he knew the challenges he was facing. “You’re literally trying to change a culture,” says Isaacson. “Ark has been around for 30 years. They did $130 million in sales. And now you’re coming in as an outsider and explaining to managers, ‘Hey, if you listen to the way I want to do things, we can change this.’ And while it’s hard to argue with success, because Ark has been so successful, it’s been five months and we’re finally starting to see the dividends paying off. I’ve put 18-year-old Scotches in places that have never had them before, where they said there was no way people would buy them—and people are buying them. People are buying Don Julio that they never thought 16

Bar Business Magazine April 2014

we could sell. Japanese whiskies are selling. We’re bringing in all these things that weren’t the culture of Ark before, but people are starting to buy in.” A quick look at some of the names of Ark Restaurant venues, and you know which ballpark you’re playing in: Bryant Park Grill, Robert, and Clyde Frazier’s Wine & Dine in New York City; Sequoia and Center Café in Washington, D.C.; New York-New York in Las Vegas, to name a few. As daunting as it may sound, Isaacson is tasked with working on a national group of Ark’s bars, with the goal to make them current and on-trend. Where does one begin? “The bars, the way they were set up visually, needed addressing immediately,” says Isaacson. “We needed to change what the customer was seeing when they approached the bar. We also needed to address the liquor brands, as they weren’t very current. And then there’s the audio. Right now we're in the process of upgrading all of our sound systems. We’ve hired an outside professional to curate our music with the work of the GMs of the bars. So it’s visual and audio and tastes, and then working with garnishes and updating things like that as well. We’re trying to stimulate all of the senses, where in the past we hadn’t been doing that.” It’s no coincidence, then, that Isaacson’s passion for an exceptionally functional bar was instrumental in supporting Gerber’s award winning design and architectural layout for all of its bars and lounges. He is taking the same approach to reinvigorating the Ark Restaurant venues, one by one; which, in itself, has not been easy. While Gerber bars typically possesses many universal binding elements that made them identifiable of the brand, the large scope of the Ark collective doesn’t allow for a similar approach to each venue. “The eclectic range of venues has been one of the biggest

Sequoia is Washington, D.C. is one of the well established venues in the Ark Restaurant family that Isaacson is working to refresh. www.barbizmag.com

One of Isaacson's immediate changes in most of the Ark Restaurant venues has involved updating the spirits brands and cocktail menus. challenges,” says Isaacson. “You have places like Robert and Bryant Park Grill, and then you have something like Gallaghers in Atlantic City, which has an award-winning wine list, and you have to figure out the wines and the brands that work there as well as someplace like Canyon Road, or neighborhood Mexican like Rio Grande. You have to work very closely with suppliers and understand the market that you’re in. It’s not one size fits all. It’s a tedious process.” That process has lead Isaacson to focus on three specific Ark Restaurant venues starting out—Robert and Bryant Park Grill in New York, and Central Café in Washington D.C. “I think Robert was just about honing it a little bit,” he explains. “Because there is no physical bar, it’s kind of hard; you have no back bar to work off of. So it’s honing the liquor list and honing the cocktails and making sure that people are aware of the selection they have, because there’s no eye appeal. The thing with Robert is the view; but there’s no bar to catch your eye, no back bar. The challenge is getting a list that people can appreciate. You really depend on the serving staff to sell. “At Bryant Park Grill, we’re in the process of a complete equipment renovation right now at the bar. We’re literally replacing all the equipment and we’re replacing the sound system there. And again, it’s such an amazing, iconic property, but it needed brands. I brought in about 25 new whiskies there and we basically turned the back bar into a wall of whiskey. We brought in barrel-aged cocktails; we’ve changed the glassware out; we’ve changed all the barware out. It’s been a complete renovation. “And at Center Café, which is inside Union Station, we’re smack in the middle of changes as well. We had competing venues right across from each other—Thunder Grill and Center Café—so what we did was turn Center Café into a more upscale type of lounge focusing on the high-end business

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traveler. We put leather chairs in, we’ve changed the menu to more upscale food, and we changed out brands to put in more mixology-based cocktails and high-end spirits as well. It’s a completely different experience than it was before.” The meeting of Isaacson and Ark Restaurants was all about good timing. Both parties were looking for a fresh perspective. As a bar owner, the idea of bringing in someone like Isaacson to revitalize your venue can be a great idea, especially when the timing is right. “When you have somebody coming in like this, it’s a fresh set of eyes, it’s an objective set of eyes, and I don’t have a vested interest coming in from the outside,” says Isaacson. “But if ownership can’t get management to buy in, and if the consultant comes in from the outside and can’t win over management, it's going to be an uphill battle all the way. You have to get management to buy in and you also must get the staff to buy in. You have to show them that teaching them new things and bringing in new products and educating them is great for customer relations, it creates great talking points for the guests, and at the end of the day you should be able to sell more, sell more intelligently, and in the end have the house make more money, which means your staff makes more money.” Sounds like a proper perspective to me.

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April 2014 Bar Business Magazine

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Quality & Innovation that inspires

How To:

o Give Back t American Veterans

Calling All Patriots Whether you are a bar owner, a beverage producer, or a nightlife product supplier, industry insider Bob Johnson is creating an amazing opportunity to give something back to the brave men and women who serve our country in the military by simply doing what you do best. Welcome to the School of By Bob Johnson, aka “BobTheBarGuy.com” Bartending for Veterans. Who?

What?

I’m Bob Johnson, owner and sole proprietor of Beverage Management Services (BMS) in North Augusta, South Carolina. BMS serves the nightclub/bar industry with the consulting, education and training of bartenders and bar managers, installation and monitoring of inventory control systems, speaking engagements, management books, and beverage management/bartender articles for major beverage alcohol magazines and on-premise publications, including Bar Business Magazine.

For the past 11 years I have been conducting bartender training programs for various nightclubs/bars throughout the country. I call it “Mobile Bartending School – I come to you!” I go to the city or location of a club that needs bartender basic training. The school is held at the client’s club (before opening hours). It’s a one-week course that teaches the basic skills of being a professional bartender and enables the person to go to work immediately after completing the class.

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April 2014 Bar Business Magazine

How To: The course consists of three hours of class for five consecutive days, three hours of homework each day, tests each day, and a Final Test that can result in a Certificate of Completion (must score 85 or better). I have successfully trained over 360 bartenders in this program the past several years. And from this basic structure came a thought: Why couldn’t I do this for American veterans who are looking for work after serving our country?

How?

When?

Where?

I am available one week a month to train 8 – 10 veterans who do not have a specific skill and cannot find a job. I bring all the equipment necessary to conduct the training. I bring the bottles (we use colored water—there is absolutely no liquor brought into the club), pour spouts, stir sticks, straws, napkins, fruit (oranges, limes, lemons, cherries, olives), glasses (hi-ball, rocks, Collins, “up”, shot), metal jiggers, ice scoops, large shaker cans, small shaker cans, drink-making mats, garbage cans and numerous smaller items that contribute to the course. We do not use any materials from the club we are training in. The inaugural one-week course will be held at Apres Lounge in New Orleans on April 21, 2014.

I will travel to any city in the continental United States of America that has 8 - 10 veterans who want to participate in this program. I bring my own overnight accommodations and pay for the gas (my own motor home, actually).

I will need the following at any participating location: ✪ A horizontal bar that has 2 drink-making stations facing the front. ✪ 8 – 10 bar stools ✪ Ample ice for making drinks for 2 + hours. ✪C ourse hours from 12pm – 3pm, Mon – Fri, thus the venue cannot be open to the public during this time.

Cost? There is absolutely NO COST for any qualified veteran to take this course. I offer this program FREE OF CHARGE. I gladly volunteer my time and my bartender training program. Any associated organization—American Legion, VFW, Warrior Project, Wounded Veterans, etc.—can call me and say, “We’ve got 8 – 10 veterans ready to go and we have the facility to train in.”

Learning the basics of bartending—measurements, pouring, mixology, etc.—can give a veteran the chance to find work in our industry.

Bar Business Magazine April 2014

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How To: Why? Former President George Bush, in a recent speech, said it eloquently and correctly when he asked for the “99%” in this country to do something for the returning veterans. “Help them get work!” Teach them a trade so they can get a job!” Our returning veterans need the help of the 99% of Americans who have profited from their sacrifices. We have all enjoyed watching ball games at sports bars, partying with our friends, going shopping at the mall, eating out any time we felt like it, going to school to get an education, raising a family, etc. All of this, and more, has been made possible by the sacrifices of our 1%. It’s because of them—the soldiers and veterans—that we have been free to enjoy our lives for so long. Shouldn’t all of us in the 99% give back a little for the returning veteran?

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Bar Business Magazine April 2014

Can you take the time to teach them a trade? Are you retired and have nothing to do and possess skills that could help a veteran have a better life? Will you help them find a job? Will you do something to help them get back into this great, free society they so honorably defend and have defended for decades? Aren’t you successful in part because of their sacrifices? Haven’t you had a great life because of their sacrifices? You’ve been living free in this country for a long time, right? I don’t ever want a Veteran to experience again what I experienced while serving in the Navy. Before going to Vietnam, I volunteered to be part of the “human wall” at the Pentagon. We were ten deep, completely surrounding the circumference of the Pentagon, waiting for the surge of protestors (a million of them) to charge up to us and maybe break our ranks and get into the building. They never got past the first row. I was in the second row and remember, to this day, the prophylactic filled with urine that splashed across my face, thrown by one of those demonstrators, one of those “99 percenters.” And the spitting, the cursing—all because of our involvement in a war we never asked for. We continually asked, “What did we, the military person, do wrong?” I am asking every nightclub and bar in America to one day hire a “Bar Vet,” a graduate of the School of Bartending for Veterans. I am asking every American Legion and VFW in America to help coordinate this program and get the word out to veterans about the possibility of attending a School of Bartending for Veterans program. I am asking every other bartender school in the nation to give up two spaces a month for a veteran to learn bartending and enter the industry.

Our beloved veterans need help “getting back in.” They need training. They need one of us to approach them, extend a hand, and ask, “What can I do for you? How can I help give back what you have given us for so long—freedom, a life, and a chance?” I want to give special thanks to the Augusta Warrior Project, who opened my eyes to the seriousness of why we must do more for our veterans. The majority of people in America, the 99%, have failed our veterans, but the veteran has never failed us. “Thank you for your service to our country” is not enough. You’re in the 99%. Now it’s your turn. Give back.

Our veterans need help "getting back in." They need training. They need us to extend a hand and ask, "What can I do for you?" If you or your company/organization are interested in contributing to this project, please contact me at 800-4474384, or visit my Web site at www. BobTheBarGuy.com and click on “School of Bartending for Veterans.” God Bless America! Bob Johnson, Director, Bar Vets of America©, is also a Bar Management Expert and a multi-unit beverage director who specializes in inventory control, bar management, and bartending. His book, “Manage Your Bar My Way!” is a compilation of 50 years of making mistakes and finally getting it right.

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How To:

ique Create a Un Cocktail Menu

State of Grace

A successful multi-venue owner in New York City has turned his latest Irish pub—and specifically the cocktail menu—into a tribute to the female spirit and its influence on the bar industry, past and present. By Chris Ytuarte

nside the New York City Irish pub known as Grace, it’s always ladies night, only in a slightly more reverent manner than that phrase might normally suggest. Named for Grace O’Malley, known around 16th century Ireland at the “Pirate Queen,” this rustically elegant venue and its owner, Danny McDonald, proudly acknowledge that, even in the bar business, behind every great man is a great woman. “The space was formerly McCormack’s, and anyone who followed rugby would go there for an Irish breakfast and to watch the Irish lose,” says McDonald. “The owners were friends of mine and they were tired of the business and were ready to go. So we knew the place was becoming available, and for years I’d wanted to tell the story of Grace O’Malley. So this was my chance.”

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McDonald, who owns some of the most successful pubs in New York City (Swift Hibernia, Puck Fair, Ulysses, and the recently renowned Dead Rabbit, to name a few), didn’t stop at just the name, however. Honoring Grace O’Malley and the feminine strength he perceived in the bar world would require more than that, and McDonald was seeing the writing on the wall. “As we fell into the notion of becoming a place that celebrates women, I was running into all of these great girls down at Tales of the Cocktail and events like that, and I think we all knew, industry-wise, there seemed to be a lot of women in this world of mixology,” says McDonald. “Running into the likes of people like Lynnette Marrero and all of these girls, they’re very inspirational. So that’s where April 2014 Bar Business Magazine

As a tribute based in the past—of both feminism embraces the shift toward craft cocktails in the

we were able to start a list of all these great ladies who might want to make our drinks.” Today, the crafted cocktail menu at Grace consists of drinks created exclusively by women, namely some of the top female mixologists in America, including Meaghan Dorman from Raines Law Room; Jane Danger from NoMad; Jane Elkins, formerly of Booker & Dax; Franky Marshall from Dead Rabbit and the Tippler; Ivy Mix from Clover Club; Eryn Reece from Death & Co. and Mayahuel; Lucinda Sterling from Middle Branch; and Pamela Wiznitzer from Dead Rabbit. The aforementioned Marrero and well-known brand ambassadors Charlotte Voisey and Lynn House also contributed cocktails to the Grace menu. “This was never just about hiring girls behind the bar or anything like that,” says McDonald. “It wasn’t a gimmick. It was about paying homage to the fact that there are a lot of women who are at the top of their game and at the top of this industry, and I think we’re going to start seeing very quickly where these girls are winning the awards. In fact, I think it’s already happening.” Craft cocktails in an Irish pub—the notion itself is forward thinking. But McDonald recognizes that the same industry that is embracing females at the forefront of such vital creative endeavors is one that also has changed with the times, even inside the venerable walls of an Irish public house. The convergence of both trends in his venue is truly part of the bold spirit embodied by Grace O’Malley herself.

“Growing up in Ireland I can’t tell you how much she was an inspiration to a lot of people, especially out west,” says McDonald. “She was a legendary character, and I spent a lot of time around her lore. And when I pulled up in front of the new space here, I realized the address was 365 Third Avenue and it dawned on me that 365 is a famous number related to Grace O’Malley because that’s the number of islands in Clew Bay, where she had her main seat of power.” As a tribute based in the past—of both feminism and bar operation—McDonald was fully ready to embrace a shift toward craft cocktails in the present, and for the future. “I’ve been in this business since 1983, and I’ve seen a lot of the changes and trends over the years, and there was a time when I think there was a dumbing down of the industry based on chasing volume,” says McDonald. “Soda guns and ice machines, bottled beer in giant ice bins, etc. And now it’s back to craft beer, craft cocktails, and great ice programs and not dumbing things down, and it’s great. There’s nothing better than an informed market.” The feminine approach at Grace does not end with the cocktail menu, and McDonald wanted the pub to be a place where women felt comfortable. Having such a strong female influence throughout, including a powerful cadre of women mixologists, has its advantages. “If you have women of this caliber who are intent on helping you with your cocktail menu and programs, it means that, A) they respect and hold in high regard what you’re doing, and B) they are likely to hang out

Just some of the ladies who are behind the all-female-created cocktail menu at Grace. From left to right: Pamela Wiznitzer, Lucinda Sterling, Lynnette Marrero, Franky Marshall, Jane Elkins, Lynn House, Eryn Reece, Charlotte Voisey, and Jane Danger.

Bar Business Magazine April 2014

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Photos by Andrew Kist, courtesy of Hanna Lee Communications.

How To:

and bar operation—Grace fully present and for the future. there,” McDonald says. “And if that’s the case, that means that this particular pub in this particular location of Third Avenue, albeit an Irish pub, is without televisions and there is no blaring music and it’s not going to be that male bastion of the crowded saloon where women are simply an afterthought. Because that’s absolutely not what it’s about—not for me anyway. Back home, most of the publicans that I knew up there in the country in Ireland were women. It’s not a masculine world there.” There is a lot to the name. Grace honors Granny O’Malley (she lived to be 73, quite unusual for women in the 1500s), and the beautiful craft cocktails created by female mixologists all carry names somehow tied to Grace and her legacy. But, as McDonald points out, sometimes there is more to a name than just the person behind it. “For a long time I’d wanted to use that name for a pub, and there were other names available out there when we found this space, but I liked the idea that Grace was not only her first name but also can describe the state of,” explains McDonald. “I see the people going in and coming out of the bar, and I like to think maybe we all leave with a little more grace than we came in with.” d-KRUf-prt-BarBusiness-April2014-halfpgAd-v1.pdf

3/18/14

Belclare, by Franky Marshall. Black Tom, by Lynnette Marrero. Gallow Glass, by Meaghan Dorman. 11:09 AM

CMY

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April 2014 Bar Business Magazine

Wine Cocktails:

Cocktails with a twist of grapes are making a comeback and attracting an expanded mix of customers in the process By Elyse Glickman

28 28

Bar Bar Business Business Magazine Magazine April April 2014 2014

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Serve chilled,

with a dash of modernity

hile there’s been lots of talk around gin and whisky revivals, we should never forget wine has its place in the cocktail and beverage history books. After all, Sangria has enjoyed a nice resurgence in recent years thanks to the advent of Spanish “tapas” restaurants in U.S. cities. Every upscale restaurant and lounge in luxury hotels and destination restaurants will have at least one champagne- or prosecco-based cocktail. And of course, if you’re in Gen-X, how could you forget your first drink in the 70s or 80s, which was possibly a fruity wine spritzer or wine cooler? While traveling through time via cocktails is a popular pastime for bartenders and customers, some are seriously looking at taking wine based cocktails into the 21st century, not only as an excuse to get creative but also expand your bottom line by bringing new customers into the cocktail party. Colin Hall, Moonrise Concepts mixologist at Boxwood Tap + Grill in Dallas, stresses that because there are so many new liquors with a wide range of flavor profiles and craft artisan products available now, it opens chefs and bartenders up to new avenues of creativity while also unleashing new opportunities to expanded choice for customers. “The last thing people want to see is the same old thing, rehashed,” he says. “But to go down new avenues that make sense, are not contrived and present the creativity of a culinary mind that is considering what the consumer will actually appreciate and enjoy, shows respect and consideration for their time, attention and, ultimately, expense.” Jeremy Strawn, Mixologist and Beverage Director for Bo’s in New York City, explains that with the right attitude and techniques, well-chosen wines truly mix well with a diverse clientele. The resulting cocktails, some originating from tried-and-true sangria and spritzer origins, transcend trends and fashion. “I am from Texas, where people still enjoy spritzers,” Strawn proclaims. “A new thing we’re putting in place for Bo’s this summer is a customizable sangria program, where customers will pick their favorite wine, red, white or sparkling, and from there pick and choose from a list of seasonal fruits and ingredients and serve each drink a la carte. This way, customers order sangria ‘a la carte’ ensuring the product is fresh tasting, in contrast to traditional sangria made in bulk.”

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Uncorking New Audiences The most obvious benefit of inspired wine cocktail recipes is their empowering restaurants without liquor licenses expand the breadth and depth of their offerings. However, the presence of a mixologist or chef well-versed in the art of achieving harmonious flavor profiles helps a wine cocktail list be seen as a restaurant’s attribute rather than a compromise. “We inspire creativity by always looking to improve our cocktail list,” says Blake Rohrabaugh, national Vice President of Beverage and Operations for Bar Louie Restaurants. “We look at trends in flavors and spirits, and we always try to push the envelope to what our bartenders can do behind our bars. We also try to push our guests by bringing them outside their comfort zones while still providing them with delicious offerings.” “Offering cocktails which are wine-based in an establishment which doesn’t serve spirits gives the guest an experience which rivals that of a restaurant with a full bar,” states mixologist Jon Lilley of Bravas Bar de Tapas in Healdsburg, CA. “The option to enjoy something outside of the realm of just beer or wine can heighten both check averages and guests experience. At Bravas, we have a full bar (two, actually), but our Sangrias and cocktails finished with Cava or Sparkling Wine are some of our biggest sellers.”

“The last thing people want to see is the same old thing, rehashed,” Says mixologist colin hall.

April 2014 Bar Business Magazine

beverage programs at Amor y Amargo, Dram and Bittermens). He points out that the presence of wine cocktails expands the restaurant’s scope of offerings but also the general experience of the customers. “I think wine cocktails (can function) like session beers where a customer can drink more of them

Wine cocktails can “achieve that middle ground” between craft beers and spirit-forward drinks. Call it thinking outside the cellar, perhaps. However, venues with full licenses are acknowledging that the presence of wine cocktails literally invites a more diverse base of customers to the party. “Quaker Steak & Lube is not restricted with liquors they can sell, but wine-based cocktails are important to us for a different reason,” says Kate Malaniak, senior director of food and beverage. “Because we are not a large ‘by the glass’ wine concept, it allows us to sell wine through other means. By adding wine to cocktails, our wine sales increase. Wine cocktails such as Sangrias or Spritzers on the menu helps attract the

“I think wine cocktails can function like session beers where a customer can drink more of them comfortably.” comfortably,” says Santos. “They achieve that middle ground as they can be as interesting as craft beers but less strong than spirit-forward cocktails. It’s about a customer enjoying a session, feeling good and not getting drunk.” Subbarao adds that in Europe, wine has long been a part of the aperitivo tradition in more formal dining situations. Lighter wine-and-amaro- or wine-andbubbles-based cocktails often propel festivities in the early evening in France, Spain, and Italy. With the popular mixology trend of exploring Anglo-American

In Europe, wine cocktails have been a tradition for young consumers getting ready to start a night out. wine consumer that may be torn on whether they want wine or a cocktail for the evening. It allows a crossover for them, not only to have a cocktail, but to also venture out into another category they may not have been as comfortable with in the past.” For this reason, David Santos, chef/partner in New York City’s Louro, created various Sangrias for the restaurant’s brunch menu in tandem with mixologist Mayur Subbarao (noted for his contributions to the 30

Bar Business Magazine April 2014

For a full list of fantatsic wine cocktails like these, check out www.barbizmag.com/winecocktails www.barbizmag.com

The wine cocktail mixologists (From the top, left to right): Jon Lilley of Bravas Bar de tapas; Blake rohrabaugh, National vice president of beverage and operations for bar louie restaurants; Jeremy strawn, Mixologist and beverage director at Bo’s; and Mayur Subbarao, mixologist at louro.

traditions in punches and highballs, bartenders have drawn inspiration in the creation of new mixed drink recipes, especially those that will appeal to the customer, “who might like something around the ABV of an Americano or Aperol Spritz but are likely to balk at an Old-Fashioned.” Scott Watson, bartender at Urban Farmer Steakhouse in Portland, OR, says that while wine-based cocktails are particularly enticing to novice cocktail drinkers or someone who normally gravitates towards wine to switch it up, the drinks, like wine on its own, should be harmonious with the other ingredients as well as with the food items the customers have ordered. “The sparkling wines we work with are dry, which makes it easier to bridge the gap between sweet and savory,” says Watson. “For sparklers done in the traditional method, they offer a mousse that is much more persistent than what a carbonated, non-alcoholic beverage can offer.” 32

Bar Business Magazine April 2014

Alex Berlingeri, Sommelier at BLT Steak New York, says creativity comes from what a bartender brings to the wine, while increased profitability comes from the efficiency with which wine cocktails can be created while still maintaining an artistic integrity. “A bartender can take us on a magical trip through different flavors of spicy, sweet, bitter, refreshing, citrusy, that is impactful but always light in body and alcohol,” he says. “They can be easily assembled by creating a pre-batched mix that is put in the glass upon serving, as they do not usually require muddling, shaking ‘vigorously’ or layering.” Even with simplicity of preparation combined with the potential for expanded sales, San Francisco-based H. Joseph Ehrmann points out technique can make or break the cocktail. “Using wine instead of distilled alcohol requires a bit more subtlety in the construction of flavor because the amplification of inherent flavors in the alcoholic ingredient is less powerful itself,” Ehrmann affirms. “Your end result

will obviously be less potent, but it does not need be less complex. Find the characteristics that you want to highlight, add ingredients and techniques that complement those characteristics, and mix.” Sometimes, less can be more in deciding whether wine-based cocktails can be brought in to your bar’s repertoire, especially as various customers will come to you with concerns ranging from a spirits’ potency to calories, drinking seasonally or compatibility with certain foods. “I consider wine to be another ingredient in my quiver, and one with great range,” adds Ehrmann. “For my ‘Low Impact Menu’ at my own bar, Elixir, I have been playing with sherry and vermouth as the base of a recipe, not the modifier. This is a self-imposed challenge. As today’s cocktail drinker does not see any barrier to use of wine as an ingredient, it’s more likely that the wine drinker is to have issue with the ‘cocktail movement’ than the other way around.” Berlingeri, at BLT Steak New York, notices that as younger consumers gravitate towards sweet sparkling and white wines, wine-based cocktails offer the generation raised on sodas an easier entree into the rest of the cocktail menu. “Having a menu that features wine-based cocktail selections is something that can bridge that gap and helps us cater to both sides.” For a full list of fantastic wine cocktail recipes, please visit www.barbizmag.com/winecocktails www.barbizmag.com

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SEASONAL COCKTAILS: SPRING

Springing into Cinco de Mayo By Debor ah Harris

he monumental nation-wide cold front has at last broken and daylight no longer needs to be saved. This alone is reason to celebrate. Patrons you may have lost to hibernation will reappear and other brave souls will be looking for any reason to let loose. For what it’s worth, everyone could use a little pick-me-up. I say, transport me back to my days of flip-flops and class cutting; carefree times of plastic pitchers spilling foam and shots of tequila with training wheels. I want to bask in the reverie of a less worrisome era. I want to party like it’s 1999 and I bet I’m not the only one. As Cinco de Mayo is right around the corner, take the opportunity to throw your patrons a “We’re-allgrown-up-now-but-don’t-reallywanna-be” bash. Better yet, celebrate Cinco all Mayo with Latin inspired cocktails. Yes, challenging cocktails are where it’s at, but a straight-up margarita (done right) always has its place.

Bar Business Magazine April 2014

THE ORIGIN-AL COCKTAILS Sun, sand, bars and Buffett. Though entirely inspiring, Mexico extends beyond beaches and bodegas. This country’s expanse of tropical and desert climates are ideal for cultivating corn, mango, pineapple, papaya, prickly pear cactus, and chilies. The ripe, bold flavors of the land are reflected in Mexican food, drink and culture; Flavors that also shape a bevy of beverages long on taste and short on ingredients. Allow these Latin flavors to inspire your drink menu. Fresh, ripe, acidic, sweet and spicy, these ingredients hold up well to tequila and mezcal, both earthy and peppery with vegetal notes. Classic Mexican cocktails are simple and bold. Less time spent mixing and more time spent mingling. Enter Michelada, Margarita, Sangria, Sangrita, and the less alcoholic Agua Fresca (Mango, Hibiscus & Horchata among others). www.barbizmag.com

Photo: Prince Rumi

Yum Kaax Recipe on page 38

Mexican mixology 101 Drink

Ingredients (recipes vary)

Margarita

Tequila, triple sec, lime, salt

Michelada

Mexican beer, tomato juice, lime, Tabasco

Paloma

Tequila, grapefruit soda

Agua Fresca

Fruit, water, sugar, lime

Horchata

Rice, milk, sugar, spices

Sangrita

Orange, lime & pomegranate juice, chili powder. Shot of tequila on the side

Sangria

Wine, triple sec, brandy, orange, lemon, lime, soda

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THE MAINSTAYS

Margarita~ the Cinco de Mayo stand-by The Margarita, whose background is widely disputed and rife with colorful stories, was fashioned “somewhere in Mexico, sometime between 1938 & 1961.” This classic Mexican cocktail may have been created for a singer, a socialite, or an Ambassador’s daughter, never the less it was consistently crafted with tequila, orange liqueur, lime juice and a salt rim. Searching for fun? Frozen margarita machines dispense deliciously cold, Slurpee-like cocktails and can add personality to any party. War y of syrups and machiner y? Riff on the classic MOTR. Tantalize taste buds with jalapeno infused tequila or embrace the dolce vita with passion fruit puree. Check out Perfect Puree’s 30+ flavors…an easy enhancement to any Margarita. April 2014 Bar Business Magazine

Michelada~ the better beer alternative

THE SPIRIT LOWDOWN

Warm nights in packed bars call for an ice-cold beer. But a Michelada offers beer lovers a whole new brew. The intelligent addition of lime juice and hot sauce to mellow Mexican beer results in a tangy libation with a pleasing punch. Dos Equis, Corona, Tecate, Negra Modelo & Sol can benefit from a Michelada makeover.

In case you missed last month’s tequila 411 and find yourself lacking mezcal info; here’s the short sweet and skinny. Tequila is produced of blue agave grown in the mostly volcanic soil of five Mexican regions, the largest of which is the Jalisco region. Similar to Cognac production in France, the Mexican government mandates where and how tequila can be distilled. During production, blue agave pinas are harvested, baked and mashed, and the twice-distilled liquid is either un-aged (Silver) or aged for anywhere from two months to three years (Reposado, Anejo). On to mezcal…An interesting fact: all tequilas are by definition mezcals but not all mezcals are tequilas. A mezcal is quite simply any agave-based liquor. Mezcal can be made from any one of thirty varieties of agave, resulting in a broad tasting palate and much individuality. While the pinas are cooked beneath an earthen mound, the plant smokes and caramelizes, imparting a distinct rustic, smoky flavor. Mezcals require a brave palate but this full-bodied, earthy spirit offers an agave drinking experience that a “Scotch Man” would surely enjoy. Brands are continuing to develop flavored, infused and aged tequilas. Hornitos has launched Hornitos Lime Shot (tequila with built-in training wheels) and will soon be introducing its Black Barrel (aged in charred oak…a whisky’s lover’s dream). Avion’s espresso tequila and Patron’s XO Café Dark Cocoa also offer exciting riffs on the agave spirit. More options = better cocktails. Viva Mexico! Not all tequilas are the same but each will make a great margarita. Choose your spirits and ingredients wisely, with both price point and quality in mind. Create a Latin inspired spirit menu that welcomes spring with a fiesta not a siesta. The bottom line is— the better the cocktail, the better the party.

Agua Fresca Flavors Guava Orange Watermelon Banana Lime Mango

Passion Fruit Strawberry Cucumber Hibiscus Pineapple

Papaya Melon Lemon Horchata

Agua Fresca~ crisp, cool and perfect for cocktails Agua Fresca is a crisp, thirst-quenching, traditionally non-alcoholic, beverage. Though rice (Horchata) and Hibiscus (Agua de Jamaica) versions exist, most Agua Frescas are composed of fruit essence (blended and strained fresh fruit) water, sugar and lime. A Central American version of lemonade, Agua Fresca, a simply perfect virgin drink, can also make a killer cocktail.

Agua Fresca Watermelon ½ watermelon seeded and diced 1 ½ cups water 2-4 tbsp sugar Juice of 2-3 limes Puree watermelon and strain through sieve to remove pulp. Mix fruit juice with water, sugar and lime juice to taste. Recipe also works with fruits such as mango, papaya, pineapple, cantaloupe, etc. Sangria vs. Sangrita~ not to be confused Both Latin in origin, Sangria and Sangrita have little else in common, save their shared etymology. Sangria, a wine based alcoholic beverage, is enjoyed throughout many countries and is very familiar to bar-goers across the US. Sangrita, a native Mexican aperitif is typically a deep red, fruit-juice based tequila pairing. Meant to be sipped beside a shot of tequila, Sangrita offers sweet aromatics with a peppery bite. Controversially, modern Sangrita recipes include tomato juice. However, it is argued that classic Sangrita acquired its deep red color from pomegranate. But no one really knows. How to handle this conundrum? Create your own cocktail…since there exists no cannon of Sangrita, you can’t go wrong! 36

Bar Business Magazine April 2014

Chela (Michelada) Recipe on page 38 www.barbizmag.com

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Strawberry Lemongrass Sparkler 1 oz. TANDUAY Silver Asian Rum 1 oz. Strawberry syrup ∏½ oz. Lemongrass syrup ½ oz. Fresh lemon juice 4 oz. Club soda Fill serving glass with ice. Pour ingredients into glass in order listed. Pour mixture into mixing tin and back into glass or stir to mix.

JALAPENO MARGARITA By Jordan Cohen, Beverage Director at Bryant Park Grill, ARK Restaurants

HORCHATA COLADA Recipe courtesy of Manny Hinojosa 2 oz. Bacardi Gold Rum 2 oz. The Perfect Purée Caramelized Pineapple Concentrate 2 oz. Horchata concentrate Shaved coconut for garnish Cinnamon for garnish In a mixing glass, add all the ingredients with ice. Shake vigorously and serve in a glass with shave coconut, top with nutmeg and orange slice. Blended version: Add all ingredients to a blender. Add ice and blend. Pour into a glass and garnish with coconut and cinnamon.

1½ oz Blanco tequila 3 pcs. Jalapeno (no seeds) ½ oz Cointreau ½ oz. Simple syrup 1½ oz Fresh lime juice

Brockmans Bramble

Muddle jalapeno, add tequila, Cointreau, simple syrup and lime juice. Top with ice and shake. Serve in rocks glass over ice. Garnish with jalapeno slice.

1½ oz. Brockmans Gin ¾ oz. Lemon juice ½ oz. Simple syrup ½ oz. Crème de mure Fill glass with crushed ice. Add first 3 ingredients to cocktail shaker filled with crushed ice. Shake and strain into glass. Top with crème de mure. Garnish with two blackberries.

YUM KAAX Recipe courtesy of The Black Ant 2 oz. Mezcal 1½ oz. Homemade corn juice 2 leaves of Epazote and Hoja Santa ½ oz. Lime juice ½ oz. Agave

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Bar Business Magazine April 2014

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Recipe courtesy of Orale ½ oz. Citrus mix ½ oz. Cholula hot sauce Tecate can Salted rim Salt rim of shaker glass. Add ice, citrus mix and hot sauce. Garnish with a lime wedge. Beer should be poured partially table-side. www.barbizmag.com

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6 A Social State

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New to the Sunset Strip, State Social House in Los Angeles is a welcoming venue with a variety of socializing options, including a coveted smoking lounge to which cigar and cigarette lovers alike are flocking. Check out the latest Hollywood house party. By Chris Ytuarte

Bar Business Magazine April 2014

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“State Social House is a place for everyone,” says Manager Chad Weiner. “I call it a neighborhood gastro pub because we’re looking to have a great neighborhood experience.”

ll along this infamous stretch of road known as Sunset Strip, some of LA’s most decadent denizens have created a lore of celebrity debauchery that reaches as far back at the swinging 60s, all of which felt exclusive to the rock stars and movie moguls who inhabited this strange land. But today, State Social House stands amidst the mirage of those unattainable nights as a new beacon for the everyman (and woman) who just wants to…well, hang out in Hollywood. With a little something for everyone—especially those who fancy a smoke now and then—State Social House opened its doors in August 2013 and immediately became a local clubhouse for folks who may not be Hollywood royalty, but love a great Hollywood night just the same. “We’re playing off the Sunset Strip, and it’s all about knowing your area and knowing what your area wants,” explains Chad Weiner, Manager of State Social House. “We have one of the biggest clubs in the world down the block, we have all these venues with ropes in front of them— and I worked at Beecher’s Madhouse, so I understand that— but State Social House is a place for everyone. I call it a neighborhood gastro pub because we’re looking to have a great neighborhood experience inside our place.” The venue formerly housed The Red Rock, a famous Sunset Strip location, before it was taken over by Robert Silverberg. “He bought a piece of the back of the building and when it was Red Rock and he ran a Mexican cantina www.barbizmag.com

called Isla,” says Weiner. “As Red Rock was going into its 20th year and the owners didn’t really care anymore, the landlord came to Robert and told him it was coming up for sale, and Robert told him he wanted the whole building. So he took the whole thing over and turned both venues— Isla and Red Rock—into what is now State Social House.” The revamped space truly has something to offer most any bar patron. With plenty of square-footage to go around, the venue has a dining space, a smoker’s lounge, and a multimedia area for various entertainment endeavors. “The bottom level is called The Back Room, which is where we sell our cigars, where you can smoke a cigarette, or drink a beautiful whiskey with your cigar—you can hang out like a gentleman,” says Weiner. “And ladies love it too. As do celebrities, because they see it as a place where people don’t get hounded. People aren’t on top of you or bothering you. So it’s like a really great place to watch a game, chill out, drink a nice Scotch and have some food. But we’re fully licensed to let people smoke in there, and smoking and drinking still go great together. The Main Floor, which is a tavern-type gastro pub environment, is more focused on the food and is suited more for “day-hanging” or coming in for a real dinner, says Weiner. “You can get a steak or burger or wings and three different kinds of fries or pizzas, plus we have twelve specialty drinks all served by our beautiful bartenders.” April 2014 Bar Business Magazine

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State Social House’s iconic Sunset Strip location helps it draw an eclectic crowd.

Finally, upstairs is The Attic, which is an area with a DJ booth, a huge bar, beautiful couches, and comfortable seating. “We do live music and live entertaining up there.,” says Weiner. “On Sunday nights we do karaoke on the Main Floor, and on Tuesdays we do comedy up in The Attic. On Wednesdays we do a piano night, where it becomes kind of a piano bar; Thursdays we do jazz up there, to give it a cool, mellow vibe; Friday and Saturday we have DJs, but they’re laid-back lounge acts.” The Attic is also a great space for private parties, able to hold 70 to 100 people without ever feeling overly crowded. With four full-service bars, 20 flatscreen TVs, and 20 draft beers, State Social House maintains all of the staples of any good watering hole. But Weiner suggests that, in the face of continuing smoking bans in bars across America,

Chad Weiner, Manager of State Social House, has experience with the LA scene. 42

Bar Business Magazine April 2014

the location’s coveted cigar lounge and designated smoking space remains the most appealing component to customers. “The cigar lounge is a huge draw,” he explains. “Right now it’s our most popular area. People love it because you can also smoke cigarettes, which is something that is hard to find these days. There are a few places in LA where you can do it, and we’re right on the Sunset Strip. We have such a great location. We’re a rock’s throw to the Roxie, The Viper Room, and great restaurants like the Everlay and Churchfields right next door. The Light Group is opening something in a space right next to us that used to be Mirabelle’s, and someone else is opening to the left of us. It’s a scene. So the good thing about this area is that it’s definitely on-the-up, and we’re the only place around where you can smoke and drink.”

Craft cocktails like the Moscow Mule round out the bar’s beer and spirits service. www.barbizmag.com

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Acquiring an in-demand smoking space is not easy. The same restrictions that hinder the ability to smoke indoors apply to anyone who wants to create an outdoor space to do so.

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“The funny thing is, people who enjoy smoking a cigar are often annoyed by the smell of a cigarette.”

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Bar Business Magazine April 2014

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“You have to have a patio to get the smoking license,” says Weiner. “Most places that have a patio in LA will use that patio for dinner service, because that will be their most profitable area. We use our patio, which is an openroof area of the back room, for smoking because we have a dining area upstairs with a little bit of a patio of its own. You can smoke at other places, like The Abbey, which is a patio-type place. But there are huge requirements in terms of ventilation. The ceilings have to be open, all of your windows have to be able to open, etc.” Cigars can be purchased on-premise at State Social House, with a menu of stogies that range from $11 entries like the Montecristo White Label Toro, up to $22 for the Padron Imperial Maduro; on certain nights, hand-rolled cigars are available. Cigarettes can be had for $10 a pack. “The funny thing is, people who enjoy smoking a cigar are often annoyed by the smell of a cigarette,” says Weiner. “So we promote our cigar lounge as such—you can smoke cigarettes, but we promote cigar smoking.” This house party is open to everyone, and it can go on all day. The newest addition to State Social House is the ultimate brunch on Saturday and Sunday, with bottomless Mimosas and Bloody Mary’s on the menu. “If you come in one Sunday morning for football at 10am for our brunch, you can watch the games and stay all day until 8pm,” says Weiner. “Then, if you’re a cigar smoker, you can go downstairs and have another drink, or go upstairs and have some dinner. You can basically stay and have three meals and then hang out for karaoke at 9pm. It’s a fun, neighborhood hang-out where there is no hassle. It’s a peaceful, cool vibe. We’ve really never even had a fight in here. It’s amazing. And I think that comes from the area. It’s a niche that we’re building upon, and people love it. It’s like having a house party.” It’s a social state for everyone. www.barbizmag.com

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Inventory Dos Equis® Introduces Dos-A-Rita

SW4 London Dry Gin Checks In

Dos Equis, one of the fastest growing Mexican import beers in the U.S., announces the launch of Dos Equis Dos-A-Rita, the premium, ready-to-serve Lager Margarita that will hit retail accounts beginning this spring. Modeled after the popular cocktail recipe originally created on-premise in Texas, Dos-ARita is a blend of Dos Equis Lager and classic Margarita flavors, sweetened with 100% premium Agave nectar. Dos Equis’ Dos-A-Rita is the first imported, authentically Mexican ready-to-serve lager margarita on the market. Making its debut in April 2014, Dos-A-Rita will be available at retail in TX, AZ, CA, NV, NM, CO, FL, GA, NC, SC and AL. Dos-A-Rita combines two traditional Mexican favorites – Dos Equis Lager and Margarita flavors - in one package. Marketing support by way of custom designed displays, price cards, cooler stickers and sampling bin POS elements, along with local out-of-home, radio and digital advertising and sampling activations (where legal), will foster consumer purchase interest, drive shopper traffic and increase sales. Visit dosequis.com/beer-cocktails/dos-rita.

SW4 London Dry Gin is made with a proprietary recipe of 12 botanicals, highgrade neutral spirit, filtered and de-ionized London water, at 40 % ABV. Created by Charles Maxwell, whose family has been distilling gin in London for over 300 years, SW4 is handmade in small batches and distilled through a single small pot still in South London. SW4 Gin is robust and multilayered, with chili and exotic spice, as well as a perfumed aspect. It has a strong traditional Juniper opening, which then opens out into a spicy midsection featuring citrus and spice notes from botanicals such as Lemon Peel, Nutmeg, Cinnamon and Cassia, with hints of Coriander and Almond. The finish features perfumed floral and hoppy notes from the Angelica, which combine beautifully with the cereal complexity of the Barley spirit component. All the elements are bound together by the earthy Orris for a satisfying, smooth, and sweet finish. SW4 Gin is extremely smooth with bold flavor and complexity for a memorable taste profile in any cocktail and makes the perfect G&T! For more information please visit www.sw4gin.com.

On The Rocks Rolls Across America

Stern Pinball’s Ford Mustang Games

Independent Distillers USA has announced the launch of On The Rocks, its new line of ReadyTo-Drink cocktails tailored specifically to beer and wine accounts. The line features four of the top five cocktail flavors – Margarita, Mojito, Hurricane, Cosmopolitan – and clocks in at 28 proof (14% Alc/Vol ). Independent Distillers is well acquainted with the ready-todrink category. As the world’s 4th largest RTD producer, they are responsible for creating, marketing and selling Twisted Shotz, the bartender-quality, line of layered shot drinks that has sold more than 30 million “shotz” since its introduction in 2010. On The Rocks comes in a 1 liter bottle (33% more liquid than a 750ml) and retails for $9.99 -$11.99. For more information check out www.independentdistillersusa.com.

Stern Pinball, Inc., the world’s oldest and largest producer of arcade-quality pinball games, proudly announced today the availability of three Mustang pinball games. The feature-rich Boss Premium and 50-Years-of-Mustang Limited Edition machines will join Stern’s Pro model, which was recently greeted by rave reviews at the Chicago Auto Show. Manufactured by Chicago’s own Stern Pinball, the Mustang-inspired games combine two icons of American pop culture – pinball and Mustang. Stern Pinball’s Pro model, designed for arcades and other public spaces, features Mustangs from the past five decades. The Boss Premium model focuses on an array of Boss Mustang models while the 50-Years-of-Mustang Limited Edition machine contains exclusive commemorative game features and art from the1965 original Mustang through the all-new 2015 Mustang GT. Each game includes real Mustang sounds and a Sony Music soundtrack featuring generational cruising tunes to give players the visceral experience of driving a Mustang. The Boss Premium and 50-Years-of-Mustang Limited Edition models feature genuine Ford Mustang chrome pony emblems, For more information, please visit www.sternpinball.com.

Bar Business Magazine April 2014

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The Glenrothes Unveils Single Cask 1969 Berry Bros. & Rudd Spirits and U.S. importer Anchor Distilling Company are proud to announce the second introduction from the Extraordinary Cask Collection of single-cask bottlings of The Glenrothes Single Malt Scotch Whisky from the late 1960s and early 1970s: Priced at $7,000, The Glenrothes Single Cask 1969 #11485, which is bottled in a hand-blown lead crystal decanter and housed in a leather-bound carrying case, arrives in the U.S. in May 2014. Distilled on July 10, 1969, Cask #11485, a refill hogshead, yielded just 133 bottles at a natural strength of 42.9% ABV and showcases the quality and purity that are the hallmarks of The Glenrothes – evident in the beautifully balanced, elegant and well-mannered single malt with peerless texture and perfectly expressed by this single cask bottling. No more than one single cask is released from The Glenrothes each year. www.glenrothes.com.

Black Stallion Adds Pinot Noir Black Stallion Estate Winery, producer of world-class Napa Valley wines, announces the introduction of its inaugural Pinot Noir, which joins the winery’s nationally distributed portfolio of wines including, Black Stallion Estate Winery Napa Valley Chardonnay and Napa Valley Cabernet Sauvignon. Known for delivering elegant and complex wines that showcase the diversity of Napa Valley’s growing regions, Black Stallion Estate Winery’s Los Carneros Pinot Noir follows the same site-specific, handcrafted approach that has shaped the success of its national and limited release portfolios. Focused on matching the best vineyards throughout Los Carneros with the best clones suited to those sites, Winemaker David Ostheimer kicks off Black Stallion Estate Winery’s foray into the Pinot Noir category with a final master blend filled with layered depth, rich flavors and silky, supple tannins. The introductory 2012 vintage of Black Stallion Estate Winery Los Carneros Pinot Noir is now available for distribution in AZ, CA, CO, GA, IL, KY, MA, MD, NC, NV, NY, MI, OR, SC, TX and WA for a suggested retail price of $27.99. Visit www.blackstallionwinery.com.

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Sangria with a Bite Vampire Vineyards, known for its Vampire & Dracula brand wines, has just launched Fangria. Fangria is an authentic Spanish red sangria, made the traditional way, with a blend of Tempranillo and Garnacha grapes, and all natural flavors and juices. Why Fangria? “Sangria” is the Spanish word for “bleeding,” so it’s a no brainer. Fangria is produced and bottled in La Mancha, Spain. As of last month, the European Parliament implemented new wine-labeling restrictions allowing use of the word sangria only to those wines made in Spain or Portugal. While sangria is traditionally enjoyed with Latin fare, Fangria goes great with a variety of foods, from Thai to cheeseburgers. At 10% alc/vol, Fangria is ready to drink right out of the bottle, chilled, or served over ice with a slice of orange. The brand has just rolled out in California, Arizona, Texas and Connecticut, with a national expansion in the works. Fangria has already received accolades for its refreshing taste, upscale packaging, and amazing value – with a suggested retail price of $8.99 for a 750ml bottle. For more information visit www.Fangria.com.

Alaskan Jalapeño Imperial IPA Released Alaskan Brewing Company’s newest Pilot Series release is a Double IPA brewed with jalapeño peppers, available in 22 oz. bottles and on draft throughout the 15 states where Alaskan is distributed. Alaskan Jalapeño Imperial IPA is made from glacier-fed water, the finest quality Centennial, Sterling, Magnum, and Apollo hops, premium two-row and specialty malts, and a whole lot of fresh jalapeños. Alaskan Jalapeño Imperial IPA is available now through June. Alaskan Jalapeño Imperial IPA Original Gravity: 1.081, Alcohol by Volume: 8.5%, Bitterness: 70 IBU, Color: 15 SRM. Visit http://www.alaskanbeer.com/our-brew/limited-edition/ pilot-series/jalapeno-imperial-ipa.html

April 2014 Bar Business Magazine

Holiday Happenings

May 2014

May 2: International Tuba Day. Here’s your big chance to load up the TouchTunes jukebox with some of the all-time great tuba players, like…umm…. uh…

May 4: Star Wars Day. Honor this nerdy holiday by building your ice from some of the available custom trays in the shape of the Death Star, R2-D2, Han Solo, and even an X-Wing Fighter. Aptly, you can find them all here: http:// www.thinkgeek.com/ product/e845/

May 5: Cinco de Mayo. Better stock up on your Corona and Modelo, crank up the frozen margarita machine, and make sure you have plenty of tequila, limes, and salt, cuz it’s the 5th of May folks!

May 6: National Teachers Day. Rather than simply serve drinks to teachers on this day, become one yourself: Teach your customers how to drink responsibly. That way they’ll always come back for more.

May 10: National Train Day. Please, do not use this day to program your jukebox with songs from the awful band Train; instead, throw a few copies of Railway Age magazine on your bar and make all “rail” drinks half price!

May 16: National Sea Monkey Day. Are sea monkeys toxic? If not they’d make great decorative cocktail garnishes. You didn’t get this idea from me.

May 18: International Museum Day. Get yourself down to New Orleans and check out The Museum of the American Cocktail today. Field trip!

May 22: Buy a Musical Instrument Day. I recommend a kazoo. Cheap, lightweight, and quite annoying.

May 23: Lucky Penny Day. Put one penny on the floor of your bar today. First person to pick it up drinks for free that night. Now THAT is a lucky penny.

Bar Business Magazine April 2014

May 29: Learn About Composting Day. Go green, get dirty, start composting!

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Index of Advertisers

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Inventory Companies Alaskan Brewing Company

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Black Stallion Winery

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Dos-A-Rita

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Fangria

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Glenrothes Whisky

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On the Rocks

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Stern Pinball

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SW4 London Dry Gin

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April 2014 Bar Business Magazine

Owning Up

4 Retirement Survival Tips

T wo financial experts share advice for navigating your way through bar owner retirement.

ome people retire from their 9-to-5 jobs and then open a bar to “relax.” But bar owners can retire too! And if you’re nearing the twilight of your nightlife gig, we have some tips for making a smooth transition. More and more Americans—28 percent in 2013—say they’re not at all confident they’ll have a comfortable retirement, according to an annual survey by the Employee Benefit Research Institute. Even the wealthiest among us have concerns; 38 percent of U.S. multi-millionaires are not “very confident” about their retirement income, a 2013 U.S. Trust survey found. “A ‘comfortable’ retirement means different things to different people,” notes Haitham “Hutch” Ashoo, co-founder of Pillar Wealth Management, (www.pillarwm.com). “The first thing you need to determine is what ‘comfortable’ means to you to ensure you have what you most desire in retirement.” Most retirees and pre-retirees will depend on income from their investments to maintain their desired lifestyle, says Chris Snyder, Pillar’s co-founder. Any dramatic negative market volatility that’s not fully understood can be devastating to their mindset and planning. “As wealth management advisers, we anticipate—based on historical patterns—an average five percent drop in the market about three times a year,” Snyder says. “Advisers should be planning for that. We tell our clients, ‘Don’t focus so much on the drop—we’ve planned and accounted for these predictable, recurring negative events. Instead, we should evaluate whether it will prevent you from reaching your life goals.’ ” Ashoo and Snyder offer these tips for those worried about the volatility in today’s market:

1 Have a deep understanding of your retirement life

goals. If you don’t have clear life goals, neither you nor a financial adviser can create a map to get you there, says Ashoo. “Think about what kind of cars you wish to drive; whether you’d like one or more vacation homes; where in the world you’d like to play golf; whether you want to budget $10,000 a year for travel or $250,000,” he says. “You also need to think about your beneficiaries and/or charitable causes that are near and dear to your heart. What sort of financial legacy do you desire for them?”

2 D o you or your financial adviser have a reliable process

for evaluating your progress toward your life goals? You need to know whether a drop or correction in the market is going to affect your ability to meet your life goals, so you can adjust for that, says Snyder. Simply measuring investment performance is not a reliable means of determining whether a person is on track to meet their life goals.

Bar Business Magazine April 2014

“We create a wealth management analysis that stress tests their retirement life goals through a simulation of stock, bond and cash activity from 1925 through 2013,” he says. “That includes recessions, depressions, catastrophes, bull and bear markets, and high and low inflation. We do this on a quarterly basis, since the market is constantly changing.” The analysis produces a score that reflects the level of confidence their clients can have that they will meet their goals. If the score is not between 75 and 90 percent, the advisers consider “what if” scenarios with their clients.

3 Avoid destructive investor behavior. Human nature is counter-intuitive when it comes to investing, and that can lead to bad decision-making, Snyder says. “Even the smartest, biggest institutional investors make the mistake of allowing their emotions to guide their judgment,” he says. “When the stock market goes up, people’s enthusiasm goes up and they rush to buy, which increases their risk. Then a correction occurs and they find themselves overweight in equities and they wonder what happened.” This destructive behavior can have a devastating impact on their plans in retirement. Snyder says it is not worth assuming more risk if you have an analysis that shows you are able to achieve your retirement goals with less risk.

4 Once you’ve accomplished 1, 2 and 3, let your financial

professionals do the work. It may be hard to turn a deaf ear when friends or family insist you should act or react because of something they’ve read or heard in the news, or because of an experience they’ve had. Let your professionals guide you, Ashoo says. “We’re paid to provide our clients with peace of mind, and to allow them to enjoy everything that is near and dear to their hearts,” he says. “Life’s too short to waste time and sleep worrying every time something happens in the world that could affect your investments. Since we have a process for ensuring our clients are making progress toward their goals with a high degree of confidence, we want them to take it easy and have fun. They deserve to enjoy their lives today.” www.barbizmag.com

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