January 2015 Bar Business

cold weather calls for some warm Perking Up: The cocktails, so why not just add coffee?

The How-To Publication

BAR BUSINE$$ January 2015

M A G A Z I N E

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How to: Digital Marketing wine: New Lines from the Vine big six: Miami’s Ball & Chain

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BAR BUSINE$$

On Tap January 2015

CONTENTS

21

Cherry on top

HOW TO

25

21

25

29

We’re all MIXED UP

The war of the wages

Doing IT Digitally

The latest edition of our bi-monthly section for digital issues only, where we provide a collection of cocktail recipes for mixologists.

These days, paying your employees properly is not just a matter of good business, it’s a legal matter as well.

Digital marketing is an ideal tool for bars looking to get their names out there and connect with people sooner than later.

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Bar Business Magazine January 2015

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On Tap

BAR BUSINE$$

CONTENTS

32

Features 32 COFFEE TALK

40 Big six In Miami, three locals have revived a historic Cuban themed venue in the Little Havana neighborhood that has always loved it by bringing back the old Ball & Chain.

44 inventory 46 holiday happenings 48 OWNING UP

The winter months are upon us, makit it a perfect for putting some pep to your cocktail menu with some amazing cofffee-based creations, new and old alike.

36 Brewery buy-in Big beer business is leading to breweries hoping to expand and grow, so we look at some of the ways in which these companies can find liquidity in their liquids.

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Departments 6 Bar room drawl 8 Booze News Perlick teams with top mixologist to create new equipment; Black Rose and Speed Rack benefit cancer research; NRA looks at trends for 2015; Laugh along with Lagavulin.

12 liquid Assets It’s a fine time for wine sales to grow on-premise, as long as you’re ready to think inside the box and look a bit beyond the bottle.

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“Bar Business Magazine” (ISSN 1944-7531 [print], ISSN 2161-5071 [digital]) (USPS# 000-342) is published February, 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 © 2015 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 1172, Skokie, IL 60076-8172. 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 of 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 1172, Skokie, IL 60076-8172.

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Bar Business Magazine January 2015

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1. Nielsen, FDCM+, latest 9 weeks ending 11/29/2014 2. Nielsen, FDCM+, latest 52 weeks ending 11/08/2014

Bar Room Drawl

By Chris Ytuarte Editor-in-Chief

By the Trade, for the Trade "Competition is not only the basis of protection to the consumer, but is the incentive to progress."

— Herbert Hoover I love the smell of commerce in the Bar Business Spirits Competition: On morning. And nothing says “American” the second day, our team of skilled like a little competition, like a little mixologists will then build and judge a creative capitalism, like a good stiff collection of cocktails featuring some of drink. Mix them all together and what the spirits that entered the blind-taste competition using recipes submitted by have you got?

I’ll tell you: You’ve got the 2015 Bar the distilleries or producers, with Business Spirits Competition. And we winning drinks in several categories.

The duality of the 2015 Bar Business couldn’t be more excited about it.

As we start out a new year, sure to be Spirits Competition is what will truly create a winning scenario another 365 days of indusfor the trade. Not only will try news, insights, inforour breakdown and blind mation and “How To” tasting of hundreds of spirinstruction from the pages its, old and new, provide of Bar Business Magazine, nightlife and hospitality BarBizMag.com, and our ownership and management timely e-newsletters, we’ve with insight into the quality taken to heart the idea of these liquors, but we will that, as we often describe, essentially build a functionthe best cocktails contain al database of award-winthe best ingredients. So Bar Business ning cocktails that any barinto the mix of our usual SPIRITS tender or mixologist can information and education COMPETITION implement on-premise. By in 2015 we will add a little By the Trade, for the Trade bit of friendly competition, which, of the Trade, for the Trade.

By the Trade: spirits and cocktails course, will benefit the industry we tasted and judged by a panel of industry serve every day.

The 2015 Bar Business Spirits trade buyers — your fellow owners and Competition, coming later this year, peers. For the Trade: a built-in compilawill be “By the Trade, for the Trade,” as tion of winning spirit flavors and craft we like to say. This two-headed event cocktails, ideal for immediate in-house will feature a blind taste-test contest use in any bar or club in the country.

Keep an eye on upcoming issues, our pitting spirits seperated by price across several categories against each other, Web site at BarBizMag.com, and future allowing our readership of bar and club digital communications for more owners and operators the best chance information about the inaugural 2015 to find out what kind of liquors they Bar Business Spirits Competition, should be stocking in order to — you including the date, the location, and how to enter. It’s going to be an exciting guessed it — create the best cocktails.

And therein lies part two of the 2015 year. Are you ready to compete?

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Bar Business Magazine January 2015

BAR BUSINE$$ MAGAZINE

January 2015 Vol. 8, No. 1 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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Tobin Ellis, Founder and CEO of BarMagic. barmagic.com

Imagine bar equipment conceived by a renowned bartender, and built by Perlick Perlick’s new Tobin Ellis Signature Cocktail Station is a breakthrough achievement in underbar design resulting from an ambitious collaboration between 6-time national bartending champion and celebrated bar designer, Tobin Ellis and the award-winning engineering team at Perlick.

“Together, we’ve built a cocktail station that’s perfect for everything from craft cocktail bars to high-volume nightclubs and 5-star/5-diamond hotel environments. It’s the tricked-out station every serious bartender has dreamt about and every savvy operator has hoped for.”

Tobin Ellis To learn more and see live demonstrations by Tobin Ellis, visit Perlick in Booth #5834 at the 2015 NAFEM SHOW.

Exclusively from Perlick Contact Perlick today to learn more. perlick.com • 800.558.5592

Quality & Innovation that inspires

Booze News Slimming Down Heineken® Doubles Down Investment on Slim Can

H

eineken®, the first premium import brand to offer an 8.5 oz. slim can format, announces it is doubling its investment in this growing segment in 2015. Marketing support, including out-of-home advertising, traffic-stopping in-store point of sale and a new slim can 24-pack, will emphasize the can’s “Cold to the last drop. Perfect for any occasion”, consumer benefit to drive traffic and sales at retail.

“Sales of small can offerings (8.0-9.0 oz.) grew more than 350% last year delivering incremental volume and profit to retailers across all channels,” said Jonathan Simpson, Director of Commercial Marketing, HEINEKEN USA. “The small can keeps the liquid colder longer and has strong appeal among Multicultural consumers looking to unwind after work or elevate their casual social gatherings. Our 8.5 oz. slim can is the first premium small can format to cater to this growing and increasingly influential demographic who prefer upscale beer and Heineken to mainstream counterparts.”

Simpson added, “The Heineken 8.5 oz. slim can offers retailers numerous benefits. In addition to its strong multicultural appeal, over-indexing with Hispanic and African-America consumers, Heineken’s higher repeat purchase rate versus key competitors signifies greater consumer loyalty that retailers can leverage to drive traffic to their stores and profits to their bottom line.”

Heineken 8.5 oz. slim cans will be available nationally across channels in 12 and 24-pack cases.

HEINEKEN USA Inc., the nation's leading upscale beer importer, is a subsidiary of Heineken International BV, the world's most international brewer. European brands imported into the U.S. include Heineken, the world's most international beer brand, Strongbow Hard Apple Ciders, Desperados, Amstel Light, and Newcastle Brown Ale. HEINEKEN USA also imports the Dos Equis Franchise, Tecate Franchise, Sol, Indio, Carta Blanca and Bohemia brands from Mexico. For the latest information on our company and brands, follow on Twitter @HeinekenUSACorp, or visit HEINEKENUSA.com.

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Bar Business Magazine January 2015

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Giffard Speed Rack Black Rose Liqueur To Benefit Breast Cancer Research & Awareness

B

ack Bar Project LLC, exclusive importers of Giffard Liqueurs announces a special edition, all natural, Crème de Rose liqueur. Giffard, the 5th generation, family-owned liqueur maker located in France’s Loire Valley since 1885 worked closely with the founders of Speed Rack (www.speed-rack.com), an all-female speed-bartending competition that raises money for breast cancer research.

Speed Rack Black Rose Liqueur will be available starting December 14th in New York. Net proceeds of Speed Rack Black Rose will be donated in support of breast cancer awareness and education.

The finest quality petals of Moroccan Rosa Damascena are macerated in neutral beet spirit to extract their delicate aroma and flavor. Sugar and water are then added to the infusion to create this exquisite liqueur. The special label features Speed Rack’s notable black and pink logo.

Speed Rack, created by bar industry leaders, Ivy Mix and Lynnette Marrero, kicked off its fourth season on November

10th, 2014 in Washington D.C. Mix and Marrero will be hosting all-women bartender cocktail competitions that raise money for breast cancer research in Los Angeles, San Francisco, Seattle, Denver, Chicago, Dallas and New York City. The Speed Rack National Finals will take place in New York City in June 7, 2015. In 2015, the tour will expand globally to Canada and France and continue efforts in the U.K., making Speed Rack the one and only all-female, international bartending competition.

For a list of event dates, please visit www.speed-rack.com.

“We’re extremely excited to team up with our friends at Speed Rack and the Giffard family for this unique project and truly delectable liqueur!” said Jackie Patterson Brenner, National brand marketing director for Back Bar Project. “Speed Rack is such an important event for women in our industry and we’re honored to play a part in raising funds for breast cancer awareness.”

To date, Speed Rack has raised more than $250,000. Additional information can be found on the Speed Rack website.

NEW FORECAST REVEALS 2015 TOP NATIONAL MENU TRENDS

N

ational Restaurant Association’s “What’s Hot in 2015” Survey Offers Sneak Peak into What Items Will Top Restaurant Menus in 2015 On Wednesday December 3rd, 2014, the National Restaurant Association released its “What’s Hot in 2015” survey, revealing which foods, cuisines, beverages and culinary themes will top restaurant menus across the country in 2015. The annual forecast gets in the kitchen and surveys nearly 1,300 professional chefs who are members of the American Culinary Federation (ACF) to find out what the hottest menu trends will be in the year ahead.

“What’s Hot” pulls together the top 20 food trends overall, but also breaks down trends from a wide variety of categories. Categories include the top featured desserts, appetizers and brunch items; what’s trending in alcoholic beverages; and what chefs are

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doing to cater to dietary restrictions. The surveyed chefs give their take on what food items are on the rise (hello, ramen and pickles!) and which are on the decline (so long, Greek yogurt and kale salad!). Chefs were also asked to predict which trends will still be hot ten years from now. Will gluten-free still be popular? Only time – and these expert chefs ­— will tell!

The National Restaurant Association report look at: • “ What’s Hot in 2015” — What the annual forecast can tell us about the top trends in the culinary world • Top 20 Food Trends: The hot new foods to look out for in 2015 • Rising and Falling Food Stars: What’s in and what’s out when it comes to food trends • Predictions for 2025: Which culinary trends have the staying power to still be popular ten years from now?

Visit www.restaurant.org/News-Research/Research.

January 2015 Bar Business Magazine

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Booze News CELEBRATE THE ART OF MIXOLOGY “For The Love Of Cocktails,” presented by BACK BAR USA, in partnership with world-renowned mixologist and author Tony Abou-Ganim, United States Bartenders’ Guild (USBG), Delano Las Vegas, Mandalay Bay Resort and Casino, and Herbs & Rye, will be an exciting three-day mixology event kicking off Thursday, Feb 12.

The headlining event will be the “For The Love Of Cocktails” gala held from 7 p.m. until 10 p.m. Friday, Feb. 13, at Alain Ducasse’s miX, located on the 64th floor of Delano Las Vegas, www.delanolasvegas.com. More than 30 mixology stations with bartenders from Las Vegas and around the world will feature original cocktail recipes crafted with fresh ingredients. Guests will enjoy contemporary live entertainment while tasting passed hors d’oeuvres, charcuterie and other gourmet bites prepared by miX Executive Chef Bruno Riou. Tickets will be priced at $100 per person and are available on the For The Love Of Cocktails website www.fortheloveofcocktails.com. Proceeds will benefit the Helen David Relief Fund for Bartenders Affected by Breast Cancer, a charitable organization that assists women in the bar industry by providing pre-screening services for breast cancer.

In addition to the gala, “For the Love of Cocktails” will present an exciting weekend lineup of seminars and mixers to celebrate the craft of mixology. A detailed schedule for the weekend’s events can be found below: Guests may also take advantage of exclusive room packages at Delano Las Vegas www.resweb.passkey.com/go/g02love. Additional information about the event, including participating bartenders and mixologists and ticket purchase details, is available at www.fortheloveofcocktails.com.

Back Bar USA is a full-service marketing, consulting and design firm with more than 25 years of experience in the beer, wine and spirits industries.

Specializing in corporate and national account beverage programs with an emphasis on gaming, resorts, nightlife and fine dining, the company provides services ranging from menu development to ground-up venue concept, design and execution. Back Bar maintains an impressive portfolio of clients and brands. For more information, visit www.BackBarUSA.com.

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Bar Business Magazine January 2015

Tales of Whisky Digital Shorts Bring Scottish Distilleries Into the Spotlight

D

iageo, the makers of some of Scotland’s finest single malt whiskies including Lagavulin® and Oban®, has collaborated with actor, humorist, woodworker and self-proclaimed human being Nick Offerman to create an original video content series entitled My Tales of Whisky.

As the title suggests, the original content pieces are musings on Scotch whisky. As the title may not suggest, the series goes live on the interweb today.

The creative team behind My Tales of Whisky exports scotch enthusiast Nick Offerman’s deadpan humor and exceptional use of plaid to two of Scotland’s esteemed seaside distilleries, Lagavulin and Oban. The storylines range from an epic transcontinental journey to prove his familiarity with his dram of choice to a ‘documentary’ (the not-real-kind) on how the beloved Oban single malt whisky gets made.

When asked to comment on My Tales of Whisky and the proverbial pedestal upon which these fine whiskies are placed, Offerman reached deep into his library, dusted off a book and selected a passage written by one the great masters of contemporary civilization.

Translating Virgil’s Aeneid from its original Latin, Offerman stated, “Believe one who has tried it.”

(Spoiler Alert!) In the My Tales of Whisky series, viewers who decide to trust the aficionado will discover a number of things, including: 1. What happens when you try to pull a fast one on a Lagavulin lover. (Hint: it makes your friend who sent back that bottle of Chateaux Whatever because it might be corked look like a lazy amateur.) – That’s Not Lagavulin 2. Historic poetry masters inspire greatness. – Poetry 3. The Oban Ping Pong Club looks competitive. – The Makers of Oban 4. Whether or not the taste of wooly cattle is existentially something you’d want to know the taste of. – Taste It All 5. A rhyme for remembering moderation in drinking. – Music Video 6. Nick Offerman likes his Scotch whisky.

To view the videos visit the YouTube channel at: www. tinyurl.com/MyTalesOfWhisky or join the conversation by using #MyTalesOfWhisky on social media.

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Love your TouchTunes Jukebox?

Get Rewards!

Bar Rewards members enjoy great perks like free plays, exclusive giveaways, special mobile app features and more.

Membership is free. Sign up now at www.touchtunes.com/BarRewards Don’t forget to check us out at NightClub & Bar Show in Las Vegas, March 31 – April 1, Booth #1007.

Liquid Assets

Great Time

Wine for

New lines from the vine, the big box boom, and upswings in consumption trends all make this a great time for wine sales on-premise, so we look at some of the up-and-coming trends and products for 2015.

By Chris Ytuarte

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Bar Business Magazine January 2015

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T

he Scottish novelist Robert Louis Stevenson, most famous for works such as Treasure Island and The Strange Case of Dr. Jekyll and Mr. Hyde, once penned this slightly more delicate observation on humankind: “Wine,” he said, “is bottled poetry.”

Though he never mentioned anything about boxed poetry.

Today, however, as modern times encroach upon the romanticism of Stevenson’s words, our wine has become available —and tastefully — in boxed form; some bars are pouring by-the-glass servings of vino straight from the tap; wine labels based on our favorite television shows are making waves; and the source countries and grapes — an ever-expanding list — becomes more interesting by the day. As elegant as Robert Louis Stevenson put it back then, today’s wine business is a bit more complicated, and much more interesting.

In March of this year, the ProWein conference in Düsseldorf, Germany will host a global congregation for the category.

Ahead of the meeting, the organization has collected some fascinating statistics: “Since 2005 the global volume of imported and exported wine has risen from 72 million hectolitres (hl) to last year’s 99 million hl. This figure accounts for 40% of global wine consumption, which has remained relatively stable with minor fluctuations at some 240 million hl. However, as the international wine organization OIV noted in its latest market report, there are significant shifts within wine consuming countries. While in France, China, Italy, Australia and Austria consumption fell, it rose in the USA, Germany and Greece.”

Of more interest, however, to American bar owners, is this tidbit: “Posting 29 million hl in 2013, the U.S. became the largest consumer market in the world for the first time, mainly because the heavy drop in consumption in France has continued.” In other words, Americans are into their wine, hence the variety and options we’re now seeing, including by the box.

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Thinking Inside The Box Bota Box, a leading eco-friendly wine producer of premium 3-liter varietals, recently announced the launch of Bota Brick, a groundbreaking new entry in the 1.5-liter wine category. Featuring the same environmentally responsible packaging as the original 3-liter Bota Box, Bota Brick offers wine consumers and bartenders a new alternative in the 1.5-liter section that stays fresh after opening more than four times longer than any 1.5-liter glass bottle.

“In pilot tests conducted this summer, Bota Brick demonstrated strong consumer pull in the 1.5-liter category, previously untapped by producers of premium boxed wine,” said Mark Koppen, Marketing Brand Director, Bota Box. “Bota Brick is at the forefront of paving the way for this new innovation and we are eager to continue the positive momentum with the national rollout.”

Even a timsless classic like sangria is getting in on the boxed craze. Beso Del Sol, the first premium, 100% natural sangria in a bag-inthe-box offered in the U.S. market, has launched its new White Sangria.

The new marque, available now in Florida and California, will achieve full distribution in 2015.

The Beso Del Sol White Sangria is made with 100% Airén grapes. This

Since 2005, the global volume of imported and exported wine has risen, with significant shifts within countries. light skinned grape, known for its adaptability, is native to Spain and represents approximately 30% of all of the country’s grape production.

Wine from Arién grapes feature hints of citrus, green apple and nuts with a very fruity character, making it the perfect base for sangria. Once the wine is ready to be blended, all natural peach and mango extracts are added to the base with additional sugar. This results in a white sangria that is light, fruity and refreshing – everything a delicious sangria should be.

“Adding a white sangria extension is a natural progression for the Beso del Sol brand which was launched in January 2014,” says Hans Christian Holst, CEO of Arctic Beverage, LLC. “The sangria category is extremely popular right now. Suppliers and accounts are doing very well with the brand and asked for this offering.

Our goal with Beso del Sol is to continue to innovate the category while delivering profitable margins for the supply chain and keeping prices attractive for consumers.”

January 2015 Bar Business Magazine

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Liquid Assets Each 3L box of sangria is equivalent to four traditional 750 ml bottles. The technology used in the packaging ensures that the wine will remain fresh for up to six weeks after opening. Additionally, the durable box makes it easy to stack and store — a plus for bars and restaurants.

The attractive price creates profits upwards of 95% on-premise, and Beso Del Sol White Sangria can be served chilled with or without seasonal fruit garnish — another timesaver for high-volume on-premise accounts.

Heading Downton Just in time for the premiere of Downton Abbey’s fifth season, Downton Abbey Wines expanded its growing portfolio with the Countess of Grantham Collection – a delicious selection of varietal wines crafted with premium fruit from California.

The new world bottlings, including a Cabernet Sauvignon and Chardonnay, take inspiration from Lady Cora Crawley, the thoroughly modern, American-born wife of British aristocrat Robert Crawley, Earl of Grantham. Bold-flavored and fruit forward, the new wines are the perfect counterpart to Downton Abbey Wines’ more classically reserved Bordeaux offerings.

“We are thrilled to broaden our Downton Abbey Wine portfolio to include these popular varietals crafted with exceptional California fruit,” explains William Zysblat, co-founder of Downton Abbey Wines.

“As legions of Downton Abbey fans continue to enjoy the show with a glass in hand, they now have even more choices with a new Cabernet Sauvignon and Chardonnay.”

In addition, Sutter Home Family Vineyards, one of the best-selling wine brands in the world, announced that it has added a new Red Blend to its growing portfolio.

By blending three distinct red grapes from California Zinfandel, Cabernet Sauvignon and Merlot, Sutter Home has crafted a perfectly balanced red wine that is both 14

Bar Business Magazine January 2015

Some boxed wines use technologies that ensure they remain fresh for up to six weeks, ideal for improving bar margins.

smooth and delicious.

“Sutter Home quickly learned the importance of listening and responding to what our consumers are saying,” says Wendy Nyberg, vice president of marketing for Sutter Home. “We want our consumers to know that we understand what they want and we will continue to set the bar for the wine industry.”

According to Nielsen, Red Blends are the fastest growing segment among the top ten largest table wine

varietals. They are growing twice as fast as Sauvignon Blanc, the second fastest growing varietal type, and six times as fast as the wine category overall. Today, the category is now the fifth largest “varietal” and makes up for 6% of total wine sales – up 17% versus a year ago.

With all different styles of packaging and profiles makes waves in the wine category, it does seem fitting that “blends” are big.

Get used to it. www.barbizmag.com

CHAMPAGNE ATELIER CLOSES OUT 2014

I

n an innovative approach to boosting bubbly sales, Viceroy Santa Monica, the sophisticated and contemporary boutique beachside hotel, launched its Champagne Atelier at the end of 2014. (An atelier is a workshop or studio, especially one used by an artist or designer.)

The intimate private dining room featured a prominent wall of featured Champagnes and festive decorations, and could accommodate up to 48 guests in a variety of table arrangements. The space also extended seamlessly into the semi-private lounge, ideal for a pre- or post-dinner reception.

“Our Champagne Atelier stood out as a unique, luxurious and customizable option for seasonal gatherings,” said General Manager Spencer Yeo. “From diverse small bites to Chef Tony DiSalvo’s locally

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and internationally-inspired 4-course tasting menu with Champagne pairings, Viceroy Santa Monica catered to all clients and offered a great venue to kick off holiday festivities.”

Featured Champagnes included Moet & Chandon ICE Imperial, Veuve Cliquot ‘Yellow Label’ and Rosé,Dom Perignon 2004 and Veuve Clicuqot La Grande Dame 2004.

The Champagne Atelier tasting menu ($155/pp) included options like Japanese diver scallops with applemiso, foraged mushrooms, scallion and myoga paired with Veuve Cliquot Rosé; steamed Alaskan black cod with sake steamed clams and honshimeji, paired with Veuve Cliquot Yellow Label; and a caramelized banana tart with butter rum ice cream paired with La Fleur D’or Sauternes.

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Tuning Up

Tuning Out 2014 Kicking off 2015, we look back at the top on-premise music of 2014, as reported by the major jukebox companies in the U.S.

By Chris Ytuarte

W

hile we may have just finished another year, the music never stops.

On-premise, traffic at your digital jukeboxes had a stellar year, and it’s always interesting to see who got the most plays, who dominated the music scene in 2014, and how the country breaks up in terms of trending tunes and surging artists.

As 2014 come to a close, on-premise entertainment companies TouchTunes and AMI both reported on their year-

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Bar Business Magazine January 2015

end numbers in terms of plays and popularity based on their various accounts across the nation. Let’s have a look.

TouchTunes, the largest in-venue interactive entertainment platform in North America, released its annual Year-End Music Charts reporting on the top played songs and artists of 2014. Based on songs played across its domestic network of over 60,000 jukeboxes, TouchTunes’ Year-End review provides unique

insight into the music choices of bar and restaurant patrons regionally and nationwide.

Country sensation Luke Bryan was TouchTunes’ Top Played Artist in 2014, closely followed by AC/DC and Eric Church. “Since I started my career playing bars across this country, it makes me proud to be TouchTunes’ Top Played Artist this year,” commented Bryan. “I hope I can continue to make music that makes people want to have fun.” www.barbizmag.com

Timed with the announcement, TouchTunes also offered Luke Bryan fans a chance to win a trip for two to Luke Bryan’s ‘Crash My Playa’, an all-inclusive concert vacation in the Riviera Maya, Mexico. Fans can enter the sweepstakes at participating TouchTunes locations and directly online at www. touchtunes.com/lukebryan.

TouchTunes’ Most Played Song of the year was Brantley Gilbert’s “Bottoms Up.” The song was a smash hit from Gilbert’s Just As I Am, which recently won Favorite Country Album at the 2014 American Music Awards.

Upon hearing the news, Gilbert said, “Just found out that “Bottoms Up” was the most played song on TouchTunes in 2014. It means so much to me that the song resonated with so many people.”

From coast to coast, rock music continued to be the most played genre in 2014, followed by country, with the pop genre coming in third. Pop superstar Katy Perry was TouchTunes’ 2014 Most Played Female Artist.

TouchTunes 2014 Year-End Charts Top 10 Played Artists Luke Bryan AC/DC Eric Church Jason Aldean Lynyrd Skynyrd Kid Rock Johnny Cash The Rolling Stones George Strait Metallica

TouchTunes 2014 Year-End Charts Top 10 Played Songs 1. “Bottoms Up,” Brantley Gilbert 2. “ Dark Horse (feat. Juicy J)” Katy Perry 3. “Happy,” Pharrell Williams 4. “ Country Girl (Shake It For Me),” Luke Bryan 5. “Royals,” Lorde 6. “Wagon Wheel,” Darius Rucker 7. “Smoke A Little Smoke,” Eric Church 8. “Crazy B*tch,” Buckcherry 9. “Copperhead Road,” Steve Earle 10. “Dirt Road Anthem,” Jason Aldean To view the complete TouchTunes’ 2014 Year-End Charts, visit www. touchtunes.com/2014YearEndCharts. www.barbizmag.com

AMI Entertainment Network has been developing cutting-edge entertainment solutions for bars and restaurants for more than a century, from the dawn of the jukebox to the digital age. Featuring the latest in content and technology, AMI jukeboxes and Tap T V provide everything you need to connect with today’s tech-savvy patrons. From music to video to mobile, AMI provides 360 degrees of entertainment.

So for AMI, which artists ruled the jukebox in 2014? What was the top genre of the year? What music video amazed more viewers than any other?

The most popular jukebox artist of 2014 was the seminal southern rock band Lynyrd Skynyrd, racking up 6,960,000 individual song plays.

At around three minutes per song, that comes out to 347,963 hours — or the equivalent of 39 years of nonstop Skynyrd! Other mega-popular jukebox artists for 2014 included Guns N’ Roses, the Allman Brothers Band, and Zac Brown Band — the latter of which still received nearly 26 years of consecutive play.

In the world of new music, up-and-coming artists like Pharrell and Meghan Trainor made a huge splash on jukeboxes in 2014 — Pharrell’s album G I R L, featuring the mega-hit song “Happy,” was played just short of 600,000 times, enough to be played 24 hours a day for four years, back-to-back — that’s quite a dance party. New hits from DJ Snake & Lil Jon, Latin artist Romeo Santos, and Iggy Azalea

Brantley Gilbert all racked up play counts in the hundreds of thousands, too.

For the first time ever, the AMI Jukebox Year-End Music Charts also feature music video play counts.

The most popular video of 2014 was the saucy, adults-only version of Robin Thicke’s “Blurred Lines,” with equally strong showings from January 2015 Bar Business Magazine

17

Tuning Up “Happy” and Blake Shelton’s “Boys ‘Round Here.” Check out the official AMI Jukebox Year-End Music Charts page for more entertaining music facts and a handy downloadable PDF. AMI also recently announced the new Jukebox Remote Settings feature for its collection of jukeboxes. The

new feature allows operators the ability to access and change many of the jukebox settings through the easy-to-use operator website.

AMI is continually dedicated to providing operators with the tools needed to easily oversee their jukeboxes while maximizing

All the tools you need, all in one place.

Lynyrd Skynyrd profits. With the new remote settings feature, operators can now manage many of the important settings from their home or office – saving both time and resources.

In order to take advantage of this exciting new feature, jukeboxes must be running on software version 4.4 or higher, powered on, connected, and registered to the proper location. Operators can simply log into their account through www. amientertainment.net to manage settings like: Freeplay, Do Not Disturb, Genre and Artist Lockouts, Aux Audio and Schedule, Video Caching, and Default Volume Settings.

Similarly, AMI also announced at the end of 2014 that its popular mobile app, AMI BarLink, will now accept Apple Pay through equipped iOS devices. It has never been easier for your customers to add credits to their wallet, leaving them more time to enjoy their favorite music in your bar.

Adding credits to a wallet is easy with Apple Pay: simply select the “Buy with Apple Pay” button on the bottom of the screen to use the stored payment method. For more information on how to add a credit card to an Apple Pay account, visit www.apple.com/apple-pay.

Apple Pay is a new service that will transform mobile payments with an easy, secure, and private way to pay. Apple Pay works with iPhone 6, iPhone 6 Plus, and Apple Watch.

For more information on AMI’s products and services, as well as the latest news and updates about the AMI jukebox network, please visit www.amientertainment.com or follow AMI on Facebook or Twitter. ™

BAR BUSINE$$ M A G A Z I N E

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Bar Business Magazine January 2015

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How To:

Master Mixology

Mixed Up Cocktail Ideas for the On-premise Mixologist

Cherry Sour Bourbon

W

ith February approaching, and the ever-loathed Valentine’s Day celebrations encroaching upon your bar’s singles scene, we though we’d at least provide you this month a few great cocktails that can not only help you feed the famished fools who come to the bar with a date, but also those lonely souls looking for something tasty.

So what says Valentine’s Day better than some sweet treats — namely the alluring cherry flavor found in the classic bar room liqueur known as Cherry Heering. Along with cocktail

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cousin, Xante, with its own pear and Cognac pairing of tastes, Cherry Heering is the perfect foundation for some great drinks on February 14th. This classic ingredient invokes a smoky past of years gone by in the bar business, ideal for a lonely Valentine or a pair of lovers.

And of course we had to include some tequila drinks as well, because let’s face it — when it’s time to drown some sorrows on Valentine’s Day, nothing does a better job than some tasty tequila.

January 2015 Bar Business Magazine

21

How To: Now HEER This The illustrious Cherry Heering Liquer has been a cocktail staple from back in the days of the British Empire, and today remains the essential ingredient in The Singapore Sling while adding its rich flavors to various new drinks.

Pour out some cheery cherry love this Valentine’s Day.

Hot Cherry

Heering Negroni

Heering Latte

Heering Negroni

2 parts Cherry Heering 2 parts gin 2 parts sweet vermouth 2 parts Campari Pour all ingredients into a mixing glass filled with ice. Stir max 19 turns, strain into a lowball glass. Squeeze and garnish with an orange zest on top. Garnish with orange slice.

Hot Cherry

1 part Cherry Heering 2 parts single malt Organic honey Cinnamon stick Hot water Add all ingredients except hot water into a teapot. Pour 5 parts hot water, rest for a while. Serve.

Cherry Sour Bourbon

2 parts Cherry Heering 2 parts Bourbon 3 parts freshly squeezed lemon juice 3 parts simple syrup Dash bitter Dash egg white Garnish with an orange wedge and/or Amarena cherry Pour all ingredients into a shaker filled with ice and shake. Strain into a lowball glass with ice.

Garnish with an orange and a cherry.

22

Xanté Hot Apple

Bar Business Magazine January 2015

Heering Latte

2 parts Coffee Heering 4 parts warm milk Mix ingredients and serve in a “latte glass.”

Coco Heering

4-6 parts Coffee Heering Hot chocolate Cream Fill a cup with Coffee Heering and hot chocolate. Serve with whipped cream and grated chocolate on top.

Coffee Berry Sour

4 parts Coffee Heering 2 parts Crème De Mur 4 parts freshly squeezed lemon juice 3 parts simple syrup Dash egg white Blackberry Lemon Add all ingredients into a shaker. Shake up and serve in a lowball glass. Garnish with 2 blackberries and a lemon.

Xanté Hot Apple

2 oz Xante Freshly pressed apple juice Cinnamon stick *Heat the apple juice together with the cinnamon stick.

Add Xanté before serving

www.barbizmag.com

Crushing on Tequila Look, there may be some sad sacks who come in to the bar on February 14th in need of a lonely night sipping something that will help them forget someone. And in the bar business, we all know there is one thing for that kind of night — tequila. Here’s a few great cocktails to get them started (before they start doing shots).

Dulce y Picante

Hornitos® Plata Paloma

Berried Treasure

Hornitos® Plata Paloma

2 parts Hornitos® Plata Tequila ½ part lime juice 2 parts white grapefruit juice 2 parts club soda Combine ingredients in a glass and serve.

Garnish with a lime slice.

Dulce y Picante

1.5 parts Hornitos® Plata Tequila 1/2 part Green Chartreuse® Liqueur 1/4 part pineapple juice 1 jalapeno slice 1/4 part simple syrup* 1/4 part lime Handful of cilantro *To make simple syrup, mix together 1 part sugar and 1 part water and bring to a boil (approximately 1-2 minutes).

Cool before serving.

Muddle cilantro in a mixing glass, then gently muddle jalapeño on top of cilantro, then add remaining ingredients into a mixing glass. Shake well for approximately 8-10 seconds. Double strain into a double old fashioned glass rimmed with paprika sea salt. Garnish with a cilantro leaf and/or pineapple leaf.

www.barbizmag.com

Roasted Jalapeño Blackberry Margarita

Berried Treasure

2 parts Hornitos® Reposado Tequila 1/4 part simple syrup* 1/4 part lemon 6-8 blackberries 1-2 rosemary sprigs 2 dashes Angostura® Bitters *To make simple syrup, mix together 1 part sugar and 1 part water and bring to a boil (approximately 1-2 minutes).

Cool before serving.

Add rosemary sprig and muddle, then add 6 blackberries into a mixing glass and muddle.

Add the rest of the ingredients and shake well.

Double strain into an old fashioned glass.

Garnish with a rosemary sprig and two blackberries.

Roasted Jalapeño Blackberry Margarita Recipe Courtesy of Barrio Star

1.5 oz Roasted Jalapeño Infused Giro Tequila 1.5 ounces total of equal parts agave and fresh lime juice 1/8 oz Blackberry Puree Fill a shaker with ice. Pour in shaker tequila, agave and fresh lime juice mix, and blackberry puree.

Shake filler vigorously ten times. Strain over a margarita glass rimmed with salt and filled with ice.

Garnish with a lime wedge.

January 2015 Bar Business Magazine

23

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How To:

f Be Aware o Wage Laws

Time & Money Is a Wage & Hour Class Action Secretly on Your Menu?

While restaurant and bar menus have begun changing seasonally to keep up with the rapid change in tastes, the hospitality industry has been slow to keep up with workforce regulations and laws that have evolved at a frantic pace.

By Jonathan M. Boulahanis

www.barbizmag.com

January 2015 Bar Business Magazine

25

How To:

Make sure your staff is getting paid properly to keep them (and the government) happy.

T

he hospitality industry has unquestionably had a bulls-eye on its back in recent years when it comes to Wage and Hour violations. Besides the class action lawsuits and private lawsuits targeting restaurants, bars and hotels, the Government has drastically increased its scrutiny. According to Department of Labor ("DOL") statistics, from 2009-2013 Fair Labor Standards Act ("FLSA") investigations into hotels and restaurants increased from approximately 4,500 investigations to approximately 7,300 investigations. In 2013, investigations into restaurants and hotels made up approximately 53% of all DOL investigations. As part of the DOL's P3 initiative (Plan/ Prevent/Protect), nearly 2,000 investigators have been added in the last three years. On top of DOL investigations, each state regulates wage and hour violations (in Illinois, it's the Illinois Department of Labor that enforces the Illinois Minimum Wage Law and Wage Payment Collection Act).

Why is the hospitality industry being disproportionately targeted by wage and hour lawyers and regulatory agencies?

There are a few answers. First, attorneys are much more willing to take these cases because they allow for the recovery of attorneys' fees, and courts have been much more willing to certify class actions in recent years. Class actions don't necessarily mean a class of 500 - in these cases the similarity of issues has let employees in small to mid-size establishments certify a class or join as many employees or former employees as is possible. Second, there is a much more educated workforce regarding their

26

Bar Business Magazine January 2015

rights. Media coverage of high profile wage and hour suits, including against big corporations like Applebee's and Friday's, as well as against high profile celebrity owned restaurants like those owned Mario Batali and Joe Bastianich, have made employees take notice. Third, when an establishment utilizes the tip credit, it adds a layer of complicated rules and regulations that are difficult to understand, and even more difficult to navigate. Fourth, the hospitality industry has been slow to conform to the additional regulations that have gone into place, and have been slow to institute and enforce uniform policies that comply with the regulations.

Given that background, what can an operator in the hospitality industry do to ward off wage and hour issues?

Before highlighting some areas of concern and ways to approach them, it is essential that your establishment recognize the danger, and take steps to limit the risk.

Meeting with an employment attorney familiar with the industry to audit current practices and policies is a great first step. Preparing an updated handbook documenting practices, policies, and compliance with regulations, and distributing the handbook to current employees and new hires is important as well. An operator also should have a discussion with its insurance provider to make sure that any EPL (Employment Practices Liability) insurance in place contains coverage for wage and hour litigation.

As for potential problems and solutions - here are some of the top recurring issues that confront hospitality industry operators:

www.barbizmag.com

Improperly Classifying Employees as Exempt Very few employees in the hospitality industry actually fall into a clearly defined exception to the FLSA overtime requirements. The recognized exceptions are executive, administrative, professional, and outside sales. Any "exempt" employee must make at least $455/week. Executive exempt employees are owners and operators, or managers if they are clearly defined as such, their primary duty is management, they supervise 2 or more employees, and have authority to hire and fire employees. The administrative exemption likely applies for bookkeepers and the like. The primary duty for those in the "administrative" category includes non-manual office work, and requires the exercise of independent judgment and discretion on matters of significance. The "professional" exception was created for learned professionals and applies for lawyers, doctors, and accountants. It also applies to creative professionals who perform work requiring invention, imagination, and talent. A chef could arguably be classified as such, but the case law does not clearly accept the profession yet, thus it would be best to tread carefully before classifying the chef as such. Outside sales is someone who is primarily and regularly engaged in making sales away from the employer's business. 80% of such duties must include attempting to make those sales for the employee's benefit.

Every other employee, whether salary or not, is entitled to time and a half for hours worked over 40 hours. This is a very common pitfall for hospitality industry owners.

Tip Credit - Tip Sharing/Pooling A common problem is allowing improper personnel to share in the tip pool. Members of management, employers, and owners can never share in the tip pool. Kitchen and office staff also have been held to be improper. Additionally, tip pool portions that go back to "the house" for administrative expenses or training are also improper.

Servers, bussers, bar backs, service bartenders, and food runners all may be proper. However, their job descriptions and actual roles should be clearly defined so that there can be no argument that the employees are properly sharing in the tip pool.

Tip Credit -Overtime According to the FLSA and IRS regulations, employers cannot take a greater tip credit on overtime hours than they do on regular hours. Taking a larger tip credit results in underpayment to the employee and violation of the FLSA. For example, in Illinois an employer can take a 40% tip credit on the applicable minimum wage of $8.25 — so the tip credit is $3.30. When an employee works more than 40 hours, they are entitled to 1 1/2 times the minimum wage, but the employer can only subtract $3.30.

Tip Credit Distribution of Work In order for a tipped employee to be paid the tip credit minimum wage, at least 80% of their work must be in furtherance of the tipped occupation. For example, servers,

www.barbizmag.com

who are also bussing tables, making coffee, setting tables, and occasionally washing dishes are performing duties in furtherance of the tipped occupation. If they have half their shift doing bar inventory, or working in the kitchen, then the tip credit is inappropriate.

Work Before Employees Clock In, or After Employees Clock Out Employees must be paid for all hours performing activities for the benefit of the employer. Beware of automatic clock out systems. Establishments run into issues when they require employees to come in before their shift to prepare stations for service or set up the restaurant, or stay after to clean up. The employee should be clocked in for every minute they are performing duties that are even arguably benefiting the employer.

Walk-outs/Breakage Walk-outs and breakage cannot be charged back to the employee. Additionally, there cannot be a portion of the tip pool to cover walk-outs or breakage. If there is a pattern with a certain employee, it is best practice to have a provision in the disciplinary policy regarding walk-outs and breakage that will result in loss of a shift or termination.

Automatic Gratuity Automatic gratuity, or service charges, are not considered "tipped wages" by either the FLSA or the IRS. A recent IRS ruling confirmed as much. The employer can suggest a tipped amount by printing suggested 15%, 18% and 20% calculations, but automatic tips that are applied without an independent choice by the consumer are not considered tips.

In that circumstance, it is improper to utilize the tip credit for the employee's hourly wage, and doing so results in underpayment to the employee.

This is just a sample of common issues that confront employers in the hospitality industry. It is by no means a comprehensive list, and many of these issues have deeper layers that should be explored in more detail. As an owner/ operator or member of management, it is important to understand that these issues are real, continuing to evolve, and are extremely dangerous for the industry. Look closely at your policies, talk to a professional, and please make sure that you do not have the wage and hour class action hidden somewhere on your menu.

Jonathan M. Boulahanis is an attorney in Clark Hill’s Litigation and Labor and Employment Practice Groups, and is one of the Chicago leaders of Clark Hill's Food and Beverage Team. He focuses his practice on commercial, business, and employment litigation, as well as advising businesses on labor and employment issues and litigation avoidance. He also provides counsel on administrative and regulatory compliance issues that are commonplace in the food and beverage industry. Jonathan has been practicing since 2009 and has extensive trial experience in the federal courts.

January 2015 Bar Business Magazine

27

How To:

our Y e z i m i x a M Digital Marketing

Internet Interest:

Digital Marketing in the Bar and Nightclub Space Digital marketing is an ideal solution for nightclubs and bars looking to get their names out there and connect with people sooner rather than later.

D

igital marketing — ­ the process of reaching out to prospects via email and social media — has a much quicker turnaround than its snail mail equivalent. This makes it an ideal solution for nightclubs and bars looking to get their names out there and connect with people sooner rather than later. Additionally, the fact that nightclubs and bars are naturally social environments puts them in a great position to benefit from the advantages offered by digital marketing channels.

Why email?

Email is virtually instantaneous, meaning your nightclub or bar can reach people on its mailing list in a matter of seconds

www.barbizmag.com

- and all at the same time. This makes the medium an ideal way to make sure your regular patrons have easy access to your upcoming events calendar and are in the loop about theme nights, special deals, limited-time promotions and anything else you want them to be aware of. The immediacy of email makes it the ideal channel through which to send news updates and day-of event reminders.

Provided you integrate robust email marketing solutions into your promotional operations, you'll find it quick and easy to do things like personalize messages, track consumer preferences and segment your customer database. Sending targeted emails to members of a demographic likely to

find a particular piece of information interesting is a good way to: • Increase awareness among a captive audience • Make recipients feel your brand "knows" them on a personal level • Reduce rates of unsubscription due to the delivery of irrelevant or uninteresting content The ease and immediacy that defines email-based outreach means you can communicate more regularly with your customer base, and this is a great way to keep your brand top of mind among your clientele. Think about it — when people on your mailing list are considering which watering hole to drink at with their friends on a Friday January 2015 Bar Business Magazine

29

How To: night, are they more likely to think of the venue that sent them a piece of direct mail a month ago or the one they just got an email from that morning?

If you're still not convinced of the benefits of email, just let the numbers do the talking: Myriad studies have revealed companies that integrate email into their marketing strategies enjoy a high return on their investment.

To cite just one example, more than two-thirds (68 percent) of respondents to Econsultancy's Email Marketing Industry Census 2014 rated the channel as "good" or "excellent" and named the medium as being the best in terms of generating ROI.

Why social media?

Many of the advantages associated with email also apply to social media.

Platforms like Facebook and Twitter are immediate communication channels that allow you to share information and promote your bar or nightclub instantaneously - but make sure the content you post is relevant to your audience, or else people will stop

30

Bar Business Magazine January 2015

following your account and you'll lose an important way to communicate with them.

What's more, it's quick, easy and cost-effective to post on social media at regular intervals. Although paid business accounts are available on some social platforms to help further your promotional efforts, the regular free accounts can work wonders by themselves. Communicating with customers on social networking sites is a snap thanks to features such as wall posts and comments on Facebook and mentions and direct messages on Twitter.

If you take the time to personally respond to comments and questions, this will cast your brand in a favorable light and bolster customer loyalty.

Social content is also easily shareable, which is great for expanding your reach. Ultimately, it doesn't matter whether users regram your Instagram photos, re-pin items on your Pinterest board, retweet something from your Twitter account or share one of your Facebook posts - the important thing is that they're engaging with your content and getting your message out there.

Companies in some industries must maintain a serious tone in their social

media postings, but the nature of the bar and nightclub industry means you're free to have some fun. That being said, make sure your online voice is in sync with your real-life atmosphere - if your venue is known for being an informal local hangout, using a casual tone on social platforms is appropriate, but if you operate a high-end establishment, affect a professional air that's more in keeping with the vibe at your physical location.

Establishing and maintaining engagement via digital marketing Email and social media are viable outreach channels for bars and nightclubs thanks to factors such as their immediacy, ease of use and cost-effectiveness. Entering into direct communication with current and prospective patrons, updating customers on things they care about and disseminating reminders about upcoming events all help to generate engagement among your consumer base.

In terms of keeping this engagement going, staying in frequent contact with customers - whether directly (via personalized emails) or indirectly (through appearing on their social networking feeds) - can go a long way.

Measuring metrics such as open rates and click rates can also assist bars and nightclubs in cultivating engagement by indicating which posts and messages resonated most with the audience.

When you know what your customers best respond to, you can tailor future communications accordingly to increase your rate of engagement.

You can also raise awareness of your digital presence during an event itself by advertising your social usernames on posters, making sure the information is printed on paper calendar handouts, etc.

With 2014 gone, your digital marketing efforts shouldn't end with it. Chances are the promotions you launched during the holiday season not to mention the events themselves added some new names to your mailing list and resulted in more people following your social media accounts. There may be fewer events to promote in the new year, but that

www.barbizmag.com

“

Email and social media are viable outreach channels for bars and nightclubs thanks to factors such as their immediacy, ease of use, and cost-effectiveness. Staying in frequent contact with customers can go a long way. doesn't mean you don't have anything to talk about on social networks.

Here are some suggestions for talking points during the post-holiday slump or other times when you're looking to maintain engagement in between events: • Humanize your bar or nightclub by posting photos and bios of your employees. The next time patrons drop by they might even recognize members of your team from the pictures!

• Send out exclusive email promotions or post secret codes on your social platforms that customers can present at the door for reduced admission or at the bar for free drinks.

• Advertise the offer on posters so people who aren't on your mailing list or following your social accounts can get in on the action.

• Monitor the comments and other feedback you receive on social media, then enter into conversations with the people who shared their thoughts.

Everyone likes to be listened to.

• Share intriguing or funny content that may not have much to do with your brand but is sure to be a hit with the people who follow you on social media or signed up to be on your mailing list.

• Offer a behind-the-scenes look at your establishment that will allow customers to see the familiar space in a different way. For instance, if they've only been there when it's dark and crowded, snap a photo one night before the lights go off and the doors are opened. People will love seeing the venue in a different light - literally!

• Spread the word about any awards you won, reviews you got or articles in which you were featured. Your patrons already know you're great, but it doesn't hurt to reinforce the idea.

• Post facts about your bar or nightclub. Before you came to town, what was the space used for? Has your venue always had the same name, or was it previously known as something

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”

else? How long have you occupied the space? Was there a previous location?

• Share trivia related to your industry.

For example, did you know that The

Cave, which opened in the basement of the Gruenwald Hotel in New Orleans in 1912, was one of the first nightclubs in the country?

Digital marketing can be extremely lucrative for nightclubs and bars thanks to its quick turnaround and interactive nature. Use email and social media to connect with customers on a personal level, promote upcoming events and keep your brand top of mind.

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31

Cocktail photo / Jayd Jackson; Beans / Shutterstock; Digital composite / Gal Dor

Dear Irving Espresso Martini

A Hill of Beans, and Then Some 32

Bar Business Magazine January 2015

Whether customers prefer “cool beans� on a warm day, or steamy concoctions in winter, premium coffee and its liqueur-based offspring bring versatility, complexity and depth to the bar menu.

By Elyse Glickman

www.barbizmag.com

D

id you ever stop to consider why people more commonly use the term “espresso bar” rather than “coffee house” or “coffee shop” to describe a business that serves and sells gourmet coffees? Have you noticed that in most trendy spots, employees are often called “baristas” rather than “servers” or “waiters”?

While Irish Coffee and coffee liqueur-based drinks like the Black Russian have been around for decades, the deepening of coffee as a beverage category has made it a bar essential that transcends the old wives’ tale of being solely a sobering-up solution.

Furthermore, with coffee beans being grown in different parts of the world, and with those beans roasted and blended in a multitude of different ways, coffees are often marketed like wine. They have tasting notes, complex aromas, defined flavors and fascinating stories behind their producers and origins. Many mixologists looking to add dimension of recipes through fine coffees may even stock several at their bar, based on flavor profiles the recipes call for.

Coffee Talk

Seattle-based luxury coffee specialist and roaster Bryan David Scott is not only committed to providing his corporate clients the essentials for a perfect French Roast or espresso. His firm, Cup of Luxury, also provides creative foundations for coffee-based cocktails and usage suggestions to help his professional clients expand their beverage program.

This includes a web site in the works for 2015 focused on educating visitors on the many uses of coffee, coffee liqueurs and related products. It will include a variety of preparation tips, recipes, useful terminology and tasting notes akin to those relating to wine.

“Higher end coffees are compared to wines (in the way they are marketed) because the terminologies are generally identical in describing the flavors, aromas and other nuances,” says Scott. “Beverage directors and mixologists are curious people by nature, and because of this, the notes are a tool that allow them to learn all they can about a product and be at their best for their customers. I have also found from experience that when customers order wine, they often want to experience a taste profile that’s close to their coffee drinking preferences. Therefore, coffee tasting notes help you match your customers’ desire for something nutty, chocolatey, semi-sweet or acidic to the right drink, whether it is a simple brewed cup or a cocktail.”

On that note, Scott points out that the crossover appeal of coffees into a venue’s alcoholic beverage program can expand the guest’s options either in terms of having the ultimate coffee experience or the ultimate craft cocktail experience. That said, only certain roasts and beans are perfectly suited for the creation of a cocktail with a pleasing and balanced flavor profile.

“There are not many coffees that pair well with many spirits because of the way spirits are distilled,” www.barbizmag.com

Higher-end coffees are often compared to wine in describing the flavors, aromas, and other nuances. he says. “The coffee I recommend for cocktails are Columbian Supremo (the best of the four grades available in Colombian coffee), which is the most mild and balanced of the group and presents a rich flavor and nice mouth feel.”

He also recommends estate-grown Costa Rican, which presents on the palate as bright, crisp and having a full mouth appeal, which enhances the flavors of other cocktail ingredients; and Kenya A A, which is bright with nice acidity, and will compliment a recipe with citrus notes, milk or cream based, and plays well with brown spirits. “Sumatra-Mandalay has a rich smooth flavor, and plays well with flavors in different alcohols, while Cup of Luxury’s Shade Gone Mexican, accentuates spice, makes a great horchata infused with tequila or vodka.”

Scott stresses that use of the right techniques is important when preparing cocktails with coffee elements. Often overlooked rules he advises bartenders revisit are knowing when to stir and when to shake when making certain cocktails, and understanding what constitutes a good modifier for a given spirit within the cocktail recipe. He also says Italian Roast, French Roast and milder Viennese Roast coffees work great in a variety of recipes provided the coffee is blended and prepared correctly before bringing it in to the recipe.

“To craft an excellent drink, you need a modifier like coffee or espresso, citrus or syrups and you need water, which often is brought in as ice,” Scott instructs.

“What this does is lower the liquor’s proof and results in a more drinkable cocktail. The major difference between shaking and stirring is texture. The textures come out when you shake the ingredients more prominently than if you stir, and it adds air. The shaking, when done right, presents a violent but dynamic process where the air bubbles form, which January 2015 Bar Business Magazine

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Robusto Rumba

Darian Bradford

tempers things like acidity, which when not brought into check, can make a cocktail intense and unpleasant rather than light and refreshing.”

He adds that the size of the ice is also important.

Use large ice cubes, or pieces of very cold, very dense ice. If you use standard sized cubes, use five cubes.

Shake your shaker very hard and very fast for as long as possible, 8 to 10 seconds. The larger the cubes in the shaker, the longer you have to shake.

Speaking of shaking things up, Scott believes adding high-end coffees like those sold through his Cup of Luxury can perk up one’s bottom line as well as extend the creative options for both the bar area and the kitchen. He points to research that shows Americans drink 400,000,000 cups of coffee per day, making the U.S. the largest consumer of coffee in the world. 50% of that coffee-drinking population (between 150,000,000 and 200,000,000) spends good money on espresso-based cappuccino, lattes and iced coffees.

“By offering more coffee drinks on your beverage menu using premium coffee, a business will see a substantial increase in their beverage sales,” observes Scott. “Research shows Americans are willing to pay premium prices for excellent coffee and coffee-based beverages. As a non-alcoholic based espresso drink averages $3.45, by adding coffee- or espresso-based cocktails to their list, they will see a phenomenal increase to the bottom line — increases of 300% when you infuse spirits with coffee.”

The “Perk” of the Irish

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While Irish Coffee did evolve in Ireland (Joe Sheridan, a chef from Foynes, County Limerick, was credited for developing the recipe most Americans are familiar with during World War II), it became an American institution at San Francisco landmark Buena Vista Café in the early 1950s. Over the years, the comforting mixture of coffee, spirit and a cream top inspired other coffee cocktails through the decades, as did the introduction of Kahlúa liqueur in the U.S. in the 1930s.

Customers and professionals alike will always come back to Irish Coffee for its soothing, balanced flavor and texture — when executed correctly — as several bartenders see it.

“Although the recipe is simple, many restaurants and bars mess it up by using incorrect technique, glassware, or even worse, sweetened aerosol whipped cream cans,” states Hugo Moreno, Director of Operations with Block 16 Hospitality Group in Las Vegas. He points out the most common and correctable mistakes are use of the wrong glassware and use of pre-fabricated whipped cream — deal-breakers in a current cocktail culture where fresh ingredients are top priority with customers.

“I recommend the traditional ‘Irish Coffee’ tulipshaped glasses that are narrow at the bottom, flared near the top,” he says. “The Libbey #8054 glass is a great example of the correct glass, as the shape helps with the proper ratios of coffee, Irish whiskey and www.barbizmag.com

cream. The coffee to whiskey ratio should be near 3:1, which will give you a nicely balanced drink. As for whipped cream, what you top the coffee with should round out the drink and should be unsweetened. Use heavy cream and whip it to the point where it is barely stiff but still pourable. Be sure to layer (use the back of a spoon placidly, touching the glass, and pour over it slowly) a ¾“ to 1” head of cream.”

Ivo Couto, Food and Beverage Manager of Triomphe in New York City, stresses that the perfect Irish Coffee transitions between the seasons, especially as the recipe can be tweaked to feature a popular niche brand of coffee as well as provide something that is at once comfortingly familiar and unique to the venue.

“We are using Jameson 12 Year Old Special Reserve, which is lighter than other whiskeys and the perfect whiskey for the transition from winter to early spring,” Couto says. “We combine the Jameson with freshly brewed Gillie’s coffee. The last step in creating my perfect Irish Coffee is using freshly hand-whipped heavy cream which is whipped to thicken the consistency but still liquid, and is then gently poured over the top.”

Howard Beach, Queens’ Vetro Restaurant & Lounge, tapping into its reputation as the only 5-star diamond restaurant in the borough, features a classic Jameson/ Bailey’s coffee (albeit with a theatrical topper of whipped cream, creme de menthe and cherry), and then branches out with a variation of the Nutty Irishman and their own Cafe Vetro.

Global to the Last Drop

While the Irish-American classic and variations of the White and Black Russian cocktails (made with Kahlúa, Tia Maria, or another coffee liqueur) still hold court on many hot cocktail and dessert menus, mixologists in venues across the U.S. and around the world are not shy about taking coffee in unexpected directions, figuratively or literally.

San Francisco based Bisou Bistronomy touts their Sparker, made with SNS Cafe espresso (available exclusively at the restaurant) and Hangar 1 Vodka as a foundation before adding Triple Sec, Bourbon sea salt caramel, Chartreuse, fresh chopped rosemary and a tajine maldon salt ring. The SNS Café espresso is a handcrafted, authentic Italian espresso made by the Bisou chef and business partners, though the finished cocktail has a definitive Middle Eastern influence.

Guests of Lantern’s Keep, a Parisian-style cocktail bar nestled within the Iroquois Hotel in Midtown Manhattan, can enjoy the French accent defining their Café de Nuit, fashioned with Stoli Vanil Vodka, Frangelico, Godiva Carame, Butterscotch Schnapps and espresso, which they brag (rightfully so) is a combination that makes it the ultimate cup of java.

For additional information about coffee cocktails, plus more delicious coffee cocktail recipes, check out the bonus feature on this subject available on our Web site at: www.barbizmag.com/coffeecocktails www.barbizmag.com

recipes Robusto Rumba

Rob Floyd, 41 Ocean, Santa Monica, CA 1½ oz Bourbon infused with vanilla bean* ¾ oz Kahlúa (Reacts well with the base spirit) 1 small packet of granulated sugar OR ¾ oz agave stirred into the coffee 6 oz of your favorite dark roast 3 dashes of cinnamon bitters Top off with whipped cream and dusted nutmeg. *Put two long vanilla beans into a bottle of Bulleit bourbon and let sit in the bottle for two weeks.

Caramel Irish Coffee

Doc’s Landing, White Bear Lake, MN ½ oz 2 GINGERS® Irish Whiskey ½ oz Baileys® Caramel Irish Cream 3-4 oz coffee Whipped cream Pour hot coffee into warmed glass until it is about ¾ full.

Blend in 2 GINGERS® Irish whiskey. Top with Caramel Irish Cream by pouring gently over back of spoon. Add whipped cream for garnish and serve hot.

Café de Nuit

Lantern’s Keep at the Iroquois Hotel, New York City 1 oz espresso 1 oz Stoli Vanil Vodka ¾ oz Frangelico ½ oz Godiva Caramel ½ oz Butterscotch Shnapps ½ oz simple syrup Shaken in ice and strained up in a martini glass up or poured over ice. Garnish with ground espresso.

Cafe Vetro

Vetro Restaurant & Lounge, Howard Beach, Queens, NY 3 oz coffee ½ oz pumpkin liqueur ½ oz splash of Fireball Whiskey Whipped cream Combine liquid ingredients, pour into a snifter glass and top with whipped cream.

Nutty Irishman

Vetro Restaurant & Lounge, Howard Beach, Queens, NY 1 oz Baileys Irish Cream 1 oz Frangelico liqueur Whipped cream Dash ground cinnamon

Café Noisette

Novianto Benito, Café Noisette, Jumeirah Beach Hotel, Dubai 1¾ oz Captain Morgan Spiced Rum 2/3 oz Frangelico 1 oz Espresso ¼ oz simple syrup 2 dashes Chocolate Bitters January 2015 Bar Business Magazine

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Untapped Potential Craft Beer M&A, ESOPs and Other Liquidity Transaction Considerations

By Kyle Leingang, Esq., Dorsey & Whitney LLP

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Many financial buyers are very eager to invest in craft beer.

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raditional liquidity transactions are rare in the craft beer industry, leaving many founders and early investors with illiquid holdings notwithstanding high intrinsic value based on positive cash flow. This article discusses the options for breweries to provide cash for stockholders, including the recent Employee Stock Ownership Plan (“ESOP”) trend, and explores transaction limitations unique to craft beer. Due to these limitations, particularly the industry’s resistance to traditional M&A, craft brewery owners creatively pursuing liquidity will likely increasingly embrace ESOPs, although they should also consider certain hybrid transaction structures and other forms of debt-financed stock repurchase as well.

IPOs: Expensive and Not “Local” Today there are only two publicly traded craft breweries, Boston Beer Company and Craft Brewers Alliance, and there are not likely to be many others in the near future.

The high cost of becoming and staying public makes an IPO ill-suited as a liquidity tool for most breweries given their size, particularly since less expensive capital sources are available. Even larger breweries that may afford the compliance costs avoid going public because an IPO sends a mass-market signal at odds with the goal of maintaining a local image. www.barbizmag.com

Sale of Control: Take Your Money and Run The most common buyers of craft breweries are larger breweries, including high profile companies like Anheuser-Busch InBev and MillerCoors (through Tenth & Blake) and others like Craft Brew Alliance and Duvel Moortgat. These buyout transactions are often disapproved of by industry insiders and enthusiasts, whom criticize them for tarnishing a brand’s local credibility, imposing “big corporate” culture, and leading to sacrificed quality. This sentiment, combined with seemingly endless industry growth, has made transactions rare, with less than ten deals in the past four years. The appetite by large breweries on the buy side will likely continue, however, as the market share of breweries outside of craft declines and growth appears possible only by taking equity in craft.

In addition to large breweries, many financial buyers, especially private equity funds, are very eager to invest in craft beer. Transactions involving financial buyers have been less criticized than acquisitions by large breweries. The industry atlarge seems more receptive to these deals – or at least willing to turn a blind eye – because founders generally retain equity and maintain a management role. These tradeoffs can also bring negative publicity for a craft brewery, as was the case with Magic Hat Brewing Co. January 2015 Bar Business Magazine

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ESOPs

Employee Stock Ownership Plans are an option through which breweries can provide cash for stockholders.

Minority Sales: Find the Right Buyer While a complete sale may arguably yield the best share price, another alternative is a minority sale transaction with the founders maintaining control.

With this structure, a brewery is better positioned to maintain its culture and existing ownership will continue to control its destiny. Also, if a brewery is willing to sell a minority position, deals with other brewers become more palatable, as a brewery can sell up to 25% to a large brewery and still continue to be a “craft” brand under the Brewers Association guidelines.

There remain trade-offs for minority sale transactions, however. For example, while buyers have been increasingly willing to consider minority transactions to break into craft beer, there are fewer interested buyers, as most private equity firms require control as part of their investment criteria.

This limited buyer pool likely lowers the share price, unless a very unique buyer is identified. Also, because a minority buyer is still likely to be a large brewery, a craft brewery that sells a minority interest may still be subject to “sell-out” accusations, even though there is no change-of-control. The continued stigma of being associated with non-craft breweries or private equity funds remains an obstacle to minority investments.

Minority sales may sharply rise in frequency as the pool of buyers that craft breweries find suitable grows to include other craft breweries. Boston Beer Company, 38

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for example, has publicly expressed interest in minority acquisitions. Collaborative transactions have also been completed by Stone Brewing (with Maui Brewing), Breckenridge Brewing (with Wynkoop), and Long Trail Brewing (with Otter Creek Brewing). These intra-craft transactions, however, have generally been oriented more for strategic growth rather than for liquidity. The rising tide of craft beer may soon produce collaborations among craft breweries akin to an equity based alliance – a natural progression based on the industry’s current interest in brewing collaborations.

ESOPs: An Emerging Liquidity Resource Whether to create an Employee Stock Ownership Plan (“ESOP”) has emerged as a hot topic in craft beer and ESOPs are on the brink of exploding with popularity.

Using an ESOP, a trust managed by a third party for the benefit of employees borrows money and serves as the investor, providing cash to current stockholders in exchange for stock. The company repays the trust obligation with future profits and the shares purchased by the trust are given to employees through an incentive stock option arrangement. An ESOP can be structured with the employees receiving the stock as a bonus, as a profit sharing arrangement, or in exchange for a cash contribution.

An ESOP is a flexible structure that can be used as a form of liquidity transaction. Full Sail Brewing and www.barbizmag.com

New Belgium Brewing have used ESOPs to transfer 100% of their stock from existing owners to employees and have received positive publicity for these transactions. On the other hand, Deschutes Brewery used an ESOP to transfer only a portion of their stock to employees – providing an exit for shareholders who opted to participate. ESOPs provide an opportunity for investors seeking to sell off (or those that believe craft beer valuations have peaked) an option to sell at a price that has been independently determined, while allowing other investors to maintain ownership.

Many of the traditional advantages of an ESOP are tax-oriented and these aspects should always be evaluated by legal and financial counsel. With appropriate structuring, these benefits can include reducing or even eliminating federal taxation in an S-Corporation or deferring the sellers’ capital gains tax for a C-Corporation.

The status of “employee owned” has also become an asset in itself – as some breweries are labeling themselves as “employee owned” in marketing materials.

As ESOPs become more popular, the offer of equity may become necessary for a larger craft brewery to recruit the best talent for positions where traditionally equity would not otherwise be offered. For example, large Colorado craft breweries may soon be pressured to follow New Belgium’s ESOP in order to remain competitive in hiring assistant brewers and retaining other key personnel. The ESOP financing method not only avoids the stigma of selling out but results in positive publicity in the craft beer community.

Combining ESOPs with Other Transactions: The New Frontier for Craft Beer While many financial investors think of ESOPs as competitive transactions, an ESOP does not have to be mutually exclusive with a sale to a financial or strategic buyer. For example, while a portion of the stock could be purchased by a third party buyer, the remaining portion of the purchase could be set up through a parallel ESOP – either with the third party or the ESOP trust obtaining the controlling stake.

This combination takes financial pressure off the buyer and may bring the total deal price low enough to attract a wide buyer pool. This structure also provides immediate cash to sellers that would not be available in a pure ESOP transaction. Further, if an acquirer is a large brewery, this combined transaction may minimize the “sell out” stigma and help retain the brewery’s good standing with employees notwithstanding the change in control.

An ESOP combination transaction structure has not been used in the craft beer industry yet, although the potential for added value compared to traditional transactions or pure ESOPs should make craft breweries consider it as an alternative as well.

Craft breweries are capital-intensive businesses and commercial debt is generally more available to www.barbizmag.com

breweries than other business, because brewing equipment provides significant security. So long as the company and equipment assets are not already over leveraged and the company has sufficient cash flow to service the debt, commercial debt can be a cost

IPOs

Initial Public Offering: Expensive and not local.

effective way to fund a liquidity transaction without using cash needed for operational purposes.

Breweries using this liquidity structure have obstacles to navigate as well. For example, they should be careful to (i) negotiate for appropriate covenant language that will permit the contemplated stock repurchase transaction, (ii) verify that the transaction is permissible under the company’s corporate governance documents, including any shareholder agreements, (iii) ensure that the debt financed stock buyback will not cause a default under any other existing contracts and (iv) address any tender offer rules, depending on the buyback’s structure.

While a traditional corporate finance and M&A menu remains theoretically available for craft brewery owners seeking liquidity – and pure sales should remain the primary option for those seeking to maximize the liquidity event – these transactions remain uncommon due to the craft beer community’s distaste for most active institutional buyers and the perception that craft beer will continue growing.

In light of these unique limitations, ESOPs present an option with advantages for the brewing industry, as do minority sale transactions with larger craft breweries and debt financed stock buybacks. Further, the possibility of combining an ESOP with a third party sale is an untapped structure for craft beer liquidity

DEBT

Brewing equipment can secure debt acquisition.

with the potential to accelerate the cash event for sellers and make traditional sales more palatable to the industry by ensuring local ownership and protecting craft beer’s culture.

Kyle Leingang is an attorney at Dorsey & Whitney, LLP. Kyle’s law practice includes representing craft breweries and investors in M&A and financing transactions, including ESOPs. Kyle is also a certified BJCP judge and avid homebrewer. Kyle can be reached at leingang.kyle@dorsey.com January 2015 Bar Business Magazine

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The Old Ball & Chain (Is New Again)

Head

A classic Miami venue, once the centerpiece of a thriving jazz scene in the 1940s, has been restored to its former glory by three local partners who have reintroduced a little piece of history to Little Havana in the form of Ball & Chain.

By Chris Ytuarte

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“From 1935 to 1957, Ball & Chain existed in the exact same location we’re open in now. The goal was to bring it back as if it never closed.”

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n American lore, the ball & chain symbolizes something holding you down, keeping you in one place, limiting your movement and ambitions. But for three lifelong Miami residents, rebuilding the Ball & Chain symbolized their most ambitious project to date, and nothing could hold them down.

Recently reopened Ball & Chain is a historic and world famous jazz bar located at 1513 Southwest 8th Street in Miami, Florida, in the center of the city’s Little Havana neighborhood. The retro jazz bar on “Calle Ocho” has been reborn as a live music venue with an authentic Cuban flare and was meticulously redecorated in iconic 1950s Miami style by new ownership Ben Bush, Zack Bush and Bill Fuller.

“From 1935 to 1957, Ball & Chain existed in the exact same location we’re open in now,” explains co-owner Zack Bush. “At that time, jazz was a super prominent music of the era and all these great jazz artists —mostly black, some white — would come to Miami Beach to perform. The black artists would perform there but they weren’t allowed to stay there in those days, so a bunch of them would end up staying in Little Havana (of course at that time it wasn’t known as Little Havana yet). And they would end up having these epic jam sessions and performances at Ball & Chain. Then in 1957, Count Basie sued the owner for lack of payment and the owner just said, ‘Screw it,’ and shut the place down.”

In fact, In January of 1957, Count Basie was paid by the

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Ball & Chain $5,100, which was what it grossed from his multi-day stint there. Yet Basie’s contract called for a payment of $13,000, so The Count sued the Ball & Chain for the balance owed and won a judgment of $5,000 in the same year, effectively putting the club out of business.

“Fast-forward years later, and Little Havana is born, which is a predominantly Cuban neighborhood,” says Bush.

“For five to ten years, my business partner and one of the owners was responsible for bringing a lot of the arts to the neighborhood, and they basically had this idea many years ago — ‘Hey, we’ve got to revive this place.’ I had a background in the service industry and in nightlife marketing as well and we discussed it briefly and decided that when the time was right we’d bring it back. Fast-forward again, to three years ago, when we signed the lease. It took us about that long to get the place open and restored.”

The three Miami natives and entrepreneurs have completely revived the entertainment venue while preserving its cultural elements to reclaim its reputation as a power player in Miami’s nightlife scene, with a 3,000-square-foot interior and a 3,500-square-foot patio both outfitted for live music. “We honor the old history by having live jazz three nights a week, and our walls are decorated with original ads from the original Ball & Chain from when Count Basie played there and when Chet Baker played there, as well as many other jazz artists and local Miami January 2015 Bar Business Magazine

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musicians,” says Bush. The venue will feature live music every Thursday, Friday and Saturday, and holidays. “The music scene at Ball & Chain infuses contemporary sounds with old school Cuban jazz and salsa, and we love to support local artists but plan to book big names as well.”

Despite the history and tradition of the original Ball & Chain, Bush and his partners understood that the timing would need to be right in order for a rebirth of the jazzcentric, Cuban-themed venue to truly succeed. With retro nightlife endeavors on the rise, and a consumer swell in classic cocktail cravings and throwback vibes, the opportunity arrived all on its own.

“We finally thought it was appropriate for the neighborhood,” says Bush. “People like myself, who grew up in Miami, born and raised, could still be unfamiliar with the area. I don’t have a Hispanic background like one of our co-owners, so I still didn’t really know what Little Havana was about. And going back ten years ago with him and seeing the neighborhood, I really fell in love with it, as did he. It’s authentic, it’s original, it’s probably what I imagine Lincoln Road in Miami Beach was many years ago, where people are out on the street and playing music and beating Cuban drums. It has become a destination — no one comes to us casually, just passing through Little Havana, and decides to stop by Ball & Chain. It’s more like, ‘We may not 42

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Dade County pine dating back to the 1930s was used for the roof. be too familiar with the area, but let’s go to Ball & Chain.’”

Aside from the amazing music scene, the bar program at Ball & Chain features top shelf and premium liquor, a signature specialty cocktail list created by world-renowned mixologists Julio Cabrera and Danny Valdez, as well as a Cuban inspired tapas menu. “Yes, a lot of people do great cocktails at many different bars all over Miami,” says Bush.

However, our mojito, which I would put on the same level of quality you would receive anywhere in Miami, is cheaper than it is on Brickell Avenue, cheaper than it is in South Beach, and you’re still getting an amazing quality product.”

Drawing from his Cuban roots, Ball & Chain mixologist Cabrera designed a cocktail list as playful as it is tropical, featuring drinks such as the Cañita and the Pastelito Daiquiri. The tapas menu features traditional Cuban cuisine including roast pork spring rolls, chicharrones (house-made pork rinds), congri fritters and queso frito.

Ball & Chain’s location, in the Little Havana neighborhood, affords Bush and his partners the chance to not only recreate a legendary local establishment, but continue to www.barbizmag.com

All photos this page: Gil Bitton

“We weren’t trying to be ‘cool.’

We wanted it to be authentic and true to what it was, and it just so happens we’ve become ‘cool.’ But that was never even on our radar.”

infuse it with authentic Cuban traditions, even beyond the food and drink. The vibe and the music, Bush says, feature a Latin feel at all times.

“Anyone could open a Cuban themed bar; however we feel that when people are coming to see us on Calle Ocho, whether it’s our Saturday night party, which is all Cuban, or any other night, that we should always infuse a Latin flavor,” says Bush. “Our goal is to play music that people can dance to. Anywhere you go now, for the most part, in a club or bar you tend to hear hip-hop or EDM. I’m not judging either of those, but we want music that people can dance to.

And not to say you can’t dance to hip-hop and EDM, but on a Thursday night in Ball & Chain you’ll hear Michael Jackson followed by Steve Wonder followed by Celia Cruz. There’s always a Latin flavor, every night.”

The overall aesthetic of Ball & Chain plays a big role in its authenticity as well. Though the bar’s logo is new, the font used for the type is the same used by the venue back in the 1940s. The roof, in fact, is made from original Dade County pine from the 1930s, materials that were used for the first go-round of Ball & Chain back in the day.

“There was a tremendous amount of attention to detail, as far as the design goes, and I give full credit to our business partner, Bill Fuller,” says Bush. “He’s my best friend since we were ten years old, and he’s a true artist. Everything from the custom door handles that are a ball and chain to the authentic details like 1940s wallpaper he sought out — being an artist he took great pride in detailing the whole place.”

Even the unique, Cuban-inspired cold-press concrete tile www.barbizmag.com

floors keep the Latin influence flowing throughout the bar, while the newly constructed island-style bar allows for an improved social experience. “The goal was to bring it back as if it never closed,” says co-owner Bill Fuller.

But of course, it did close. And bringing it back was a challenge. In the bar business, reviving anything from the past without making it seem like a Disney ride can be a tough line to straddle, but Bush and his team were confident they could pull it off.

“We don’t mind being a little bit kitschy and a little bit themed,” says Bush. “We weren’t trying to be ‘cool.’ When we decided on this project, we wanted it to be authentic and true to what it was, and it just so happens we’ve become ‘cool.’ But that was never even on our radar. We’ve adjusted somewhat as we’ve become ‘cool,’ but we still try to remain super loyal to our underlying tenets, which were affordability, accessibility, and being authentic. We have an amazing location, right across the street from the world famous Domino Park and The Tower Theater, which is owned and operated now by MiamiDade College and was recently restored. We’re still in the finishing touches on our outdoor amphitheatre-style stage, and it’s going to look like a pineapple when it’s done. That’s a little kitschy, but we don’t care because it creates photographic moments and people love it.”

Ball & Chain is certainly not holding these guys down.

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Inventory Chivas Regal Launches New Blend

Does This Tickle Your Fancy?

Chivas Regal, the world’s first luxury whisky, introduces Chivas Regal Extra — its first new global expression since 2007. Complementing its collection of premium blended Scotch whiskies, Chivas Regal Extra is one of the richest, most generous tasting blends within this category, crafted for those who look for more. Taking Chivas Regal’s famous, award-winning house style to a new taste experience, Chivas Regal Extra continues the legacy of founding brothers James and John Chivas, who pioneered and excelled in the art of blending whiskies in the 19th Century. Blending whisky for 25 years, Colin Scott, Chivas Regal Master Blender has created a unique and outstanding blended Scotch using some of the rarest malt whiskies from the Chivas inventory. Chivas Regal Extra is a special selection of whiskies matured in Oloroso sherry casks together with the rarest and finest Chivas malts, creating a rich and generous Chivas blend, for those who look for more. The result?

An incredibly rich and discerning interpretation of the Chivas signature style, Chivas Regal Extra has a fruity, sweet nose with notes of ripe pears, creamy toffee and a hint of ginger.

For more information regarding Chivas Regal Extra visit www.chivas.com.

Sugarlands Distilling Company announces the highly anticipated addition to its authentic moonshine offerings, Tickle’s Dynamite Cinnamon Moonshine. Tickle joins Mark Rogers and Jim Tom Hedrick as the third legend in the popular Sugarlands Shine Legends Series. Tickle’s Dynamite Cinnamon Moonshine is a smooth 70 proof cinnamon perfect for sipping or cocktails.

Tickle’s Cinnamon Dynamite is available for purchase starting January 17, 2015 in Sugarlands Distilling Company’s downtown Gatlinburg location. Retail store distribution will begin early February of 2015. Other Sugarlands Shine varieties available include Silver Cloud Tennessee Sour Mash, Jim Tom Hedrick’s Unaged Rye, Mark Rogers’ American Peach, Appalachian Apple Pie, Blockader’s Blackberry, Butterscotch Gold, Old Fashioned Lemonade and Southern Sweet Tea. For more information visit www.sugarlandsdistilling.com.

ELECTRIFYY Your SKYY

The Book on Whiskey

SKYY® Vodka and Mode Design Group first collaborated in 2012. Back then, we staked our place as innovators with an industry-first- the velvet-flocked Blue Velvet Limited Edition Bottle. For 2014, SKYY and Mode are breaking the rules on packaging again with the release of SKYY ELECTRIFYY, a first-of-its kind limited-edition bottle uniquely designed for bottle service, featuring a graphic LED label that moves to the beat of the music.

Integrated into the new soft-touch label are dozens of light-emitting diodes (LEDs). A special colorcoordinated base houses the batteries, sound sensors and power switch. When turned on, the LEDs create a constant illumination of the SKYY logo. Additional LEDs, arranged in the shape of equalizer bars, are sound-sensitive and actually move to the beat of music!

They are not randomly flashing – they are responsive to the beat! www.skyy.com.

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The popularity of North American whiskey, particularly small batch brews, is all the rage. True whiskey lovers are always on the lookout for new brands to try. But reliable information can be hard to come by, so it›s best to look to the experts, those who truly know the qualities of an exceptional whiskey and how aficionados will enjoy them. We’re talking about the bartenders themselves. The new book, THE NORTH AMERICAN WHISKEY GUIDE FROM BEHIND T HE BAR [Page Street Publishing, November 2014, $21.99 US], by bartenders Chad Berkey and Jeremy LeBlanc, features reviews of 250 American and Canadian whiskeys from real mixologists and provides the expert guide and information to choosing the best types and brands of whiskeys. And with 30 cocktail recipes, THE NORTH AMERICAN WHISKEY GUIDE FROM BEHIND THE BAR is the must-have book for every enthusiast and whiskey lover. From bourbons, ryes, wheats, malts, Canadian and Tennessee whiskeys, to blends, cocktail recipes and even a Whiskey Drinker’s Bucket List, this useful bar top guide everything whiskey lovers could want.

Available now at www.amazon.com.

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Vessl Smartphone Charging

Dulce Vida Tequila 5-year Extra Añejo

Connect Group Enterprises, with offices in San Francisco and Seoul, South Korea, is making Vessl — an elegant, simple portable charging device — available for local establishments and social spaces to provide to their customers.

Hand a Vessl to your customer — it will power-up two smartphones at a time; once the customer is ready to leave, he or she returns the charger to you and departs with a freshly charged device! Everyone needs to keep their phones charged, but they’re on the go, away from power outlets. Your customers are: Looking for public device-charging locations; Asking your bartender, barista or waitperson to charge their phone for them!

You’re trying to provide this but wind up with messy or unsafe power strips, which clutter the space behind the bar, under the table or next to a work area. What can you offer your customers that is new, cool, solves their charging needs and makes you look awesome? Vessl – a portable, table-top charger designed for Restaurants, Cafes, Bars, Gyms, Salons, Hotels – any public space. Customers re-power their device while they enjoy lunch, coffee, a meeting, or a workout.

Busy people love the opportunity to charge their device while socializing making multi-tasking fun and tasty!

Visit www.vesslcharger.com.

Dulce Vida® Organic Tequila unveils a very special offering this month: a 5-Year Limited Edition Extra Añejo.

The tequila release commemorates the company’s 5th anniversary and will be available nationwide in November 2014.

Having received over 70 prestigious accolades in only five years on the market, there has been plenty to celebrate, but on the forefront of the true craft tequila renaissance, this anniversary deserved something extraordinary. Like all Dulce Vida tequilas, the Extra Añejo is made with 100% blue agave sustainably sourced from the Los Altos Highlands of Jalisco, and distilled and aged in San Ignacio Cerro Gordo, Mexico. This celebratory Limited Edition was rested for five years in single barrels of American Oak from a respected Napa Valley winery.

This unique craft approach, using barrels that previously contained award-winning vintages of Merlot and Cabernet wines, creates a stunning tequila with a distinct dark amber-saffron color and sophisticated flavor profile. The 5-Year Extra Añejo first imparts a nose impression of fine cognac, followed by the robust tequila taste to be expected of an aged añejo, and a finish almost like a port wine. A truly remarkable tequila expressions to delight the most discerning of tequila connoisseurs. www.dulcevidaspirits.com.

Deep Eddy Introduces Lemon Vodka

Premium Edition Walking Dead Pinball

Expanding its line of vodkas made from real, premium ingredients, Deep Eddy Vodka–one of the fastest growing spirits brands in the country–introduces Lemon, a zesty lemoninfused vodka made with quality, all-natural flavors including real lemon juice and Texas aquifer water. Like all Deep Eddy Vodka spirits, Lemon is gluten-free and is handcrafted in small batches in the Deep Eddy Vodka distillery located just outside of Austin, TX. Lemon will hit shelves beginning January 2015. Lemon is free of artificial flavors and high-fructose corn syrup, and can be served on the rocks or mixed with infinite other ingredients to create something more complex.

Consumers can find Lemon in five sizes: 50 ml, 375ml, 750 ml, 1 liter and 1.75 liter. Officially making a splash after the New Year, Lemon will be available nationwide in all fifty states beginning January 2015. This is the first new flavor to launch since the opening of the new, 30,000-square-foot Deep Eddy Vodka distillery in Dripping Springs, Texas. Lemon is created using Deep Eddy Vodka’s signature column distillation process, during which vodka is distilled ten times in a state-of-theart twenty-foot column still to remove impurities and create a smooth finish. For more infor visit www.deepeddyvodka.com.

Stern Pinball, Inc., the world›s oldest and largest producer of arcade-quality pinball machines, announced today the availability of the Premium Edition of AMC’s The Walking Dead pinball machine.

This is in response to continued strong demand for the title. The Walking Dead Premium Edition offers the same fan-favorite game play as the sold-out LE model, full of extra features such as additional targets, a special-effect fish tank with illuminated sculpted zombie heads, and a player-controlled motorized crossbow pinball launcher. A new high-definition art package adds to the player’s experience of battling zombies and completing game missions.

The Premium Edition rounds out the three model lineup of AMC’s The Walking Dead Pinball, which includes Pro, Premium, and Limited Edition models. “It’s great to see both old and new fans so excited about with The Walking Dead machine, which is why we’re offering the Premium Edition,” said Gary Stern, Chairman and CEO of Stern Pinball. For more information, please visit www.sternpinball.com.

www.barbizmag.com

January 2015 Bar Business Magazine

45

Holiday Happenings

February 2015

2

1 Feb 1: Change Your Password Day. These days it’s harder to remember how many passwords you have than it is to remember each password, but changing things up is vital to keeping your business info safe online. (Hint: 1,2,3,4 is not a good password.)

Feb 2: Ayn Rand Day. The Fountainhead was about draught beer, right?

11 Feb 11: Don’t Cry Over Spilled Milk Day. Don’t cry, just make a White Russian.

46

17 Feb 17: Champion Crab Races Day. Check out www. crabrace.com for ideas on how to get your customers racing hermit crabs for charity or just for fun in your bar.

Bar Business Magazine January 2015

7

4

6

Feb 4: Facebook’s Birthday.

Now a vital marketing tool for bars and clubs, it’s a good night to wish Facebook happy birthday by putting down custom made “like” coasters for every well placed drink order on the bar.

Feb 6: Working Naked Day. Nope. Never a good idea. Unless you run a gentlemen’s club, which of course makes this a year-round holiday.

Feb 7: Dump Your Significant Jerk Day. This is the first day of Dump Your Significant Jerk week, and why not support it? Nothing is better for the bar business than a bevy of newly single ladies.

18

24

27

Feb 18: National Drink Wine Day. Again, this should be a year-round holiday, but why not emphasize it tonight anyway.

Feb 24: World Bartender Day. See Feb 18.

Feb 27: US Snow Shoe Day. Ever snow shoe your way to your favorite watering hole in the middle of a blizzard?

I have. It makes that first drink taste just a bit better.

www.barbizmag.com

Index of Advertisers

Company

web site address

page #

Buzztime

www.GoBeond.com/barbiz

19

Coast to Coast Insurance

www.CoastToCoastInsurance.com

15

Harbortouch Corp

www.Harbortouch.com

3

Harbortouch CA

www.iHarbortouch.com

24

Heineken USA

www.HeinekenUSA.com

5

Innova Products

www.InnovaProductsLTD.com

31

Modern Line Furniture

www.ModernlineFurniture.com

Nightclub & Bar Show

www.NCBShow.com

28

North American Cable Equipment

www.NorthAmericanCable.com

20

Perlick USA

www.Perlick.com

7

TouchTunes

www.TouchTunes.com

11

C2-1

Inventory Companies Chivas Regal

www.Chivas.com

Deep Eddy Vodka

www.DeepEddyVodka.com

Dulce Vida Tequila

www.DulceVidaSpirits.com

North American Whiskey Guide

www.Amazon.com

SKYY Vodka

www.SKYY.com

Stern Pinball

www.SternPinball.com

Sugarlands Distilling Company

www.SugarlandsDistilling.com

Vessel Smartphone Charger

www.VesselCharger.com

To advertise in Bar Business Magazine contact, Art Sutley, Ph: 212-620-7247, e-mail: asutley@sbpub.com

www.barbizmag.com

January 2015 Bar Business Magazine

47

Owning Up

Negotiating Commercial Leases & Renewals [For Dummies]

By Dale Willerton and Jeff Grandfield ­— The Lease Coach

A

pproximately two million commercial lease-renewal transactions take place every year in North America. No matter where you are leasing commercial space for your independent or franchised bar, you will eventually have to face a lease-renewal with a landlord.

Most commercial landlords push for a rent increase on a bar tenant’s lease renewal. This is perfectly normal and should be something you anticipate. A lot can transpire in a 5- or 10-year lease term between when you moved in and when you need to negotiate your lease renewal. The lease-renewal negotiation is a familiar process to The Lease Coach and gives us an opportunity to re-address or fix a lot of the lease problems existing from the tenant’s initial deal.

If there is only one piece of advice we could share with you, it would be to start the lease renewal process early — nine or better yet 12 months before your term expires. This will give you sufficient time to prepare for battle. If you can’t get a decent renewal rate, would you rather find out you need to move with three weeks or six months left on your lease term? Landlords are likely to ask for a rent increase on the renewal term and the bar tenant had better start doing their homework now.

Remember that your strength or leverage may lessen the less time you have remaining on the lease term, so the farther in advance you can find out what the landlord wants to do with your tenancy and rental rate, the more time you will have to react. Keep in mind that most landlords want and plan to have their bar tenants renew; however, you may need some help at this time from The Lease Coach.

Another practice we often employ for our bar tenants approaching their lease renewals is to conduct site selection — even if they don’t want to move! We’ve had many tenants question this practice as many tenants resist the option of moving because they don’t have the time, or that there isn’t any good commercial space for 48

Bar Business Magazine January 2015

lease near them, or that they don’t plan to move anyway. Why waste time looking at other locations? Actually, the converse is true. The more you think you want to stay in your current location, the harder you have to look at what other space is out there available for lease — if you want to get a good lease renewal deal.

When we “shop around” our bar tenants and collect written Offers to Lease from other landlords, we are creating competition for this bar tenant’s tenancy.

With regards to getting lease proposals on other sites to increase your renewal leverage, timing is critical. Ideally, we do all of your site selection at once and receive multiple proposals all within a few days, including any renewal proposal from your landlord. This allows us to compare the deals on paper side-by-side.

Sometimes, a landlord’s real estate agent sends you a casual e-mail proposal, which is not as effective as a full proposal on their letterhead. If you want to show this competitor’s lease proposal to your landlord to create longer leverage for your renewal negotiations, it has more clout if it looks more official than a casual e-mail.

Furthermore, we also talk with existing neighboring tenants to gather valuable insights. These current tenants can often readily share their thoughts on the landlord, the level of property management, the length of their lease terms, their rental rate and so on. All of this is free for the asking, but you have to know how to effectively ask.

For a copy of our free CD, Leasing Do’s & Don’ts for Restaurant Tenants, please e-mail your request to DaleWillerton@ TheLeaseCoach.com.

Dale Willerton and Jeff Grandfield — The Lease Coach are Commercial Lease Consultants who work exclusively for tenants. Dale and Jeff are professional speakers and co-authors of Negotiating Commercial Leases & Renewals For Dummies (Wiley, 2013). Got a leasing question?

Need help with your new lease or renewal? Call 1-800-7389202, e-mail DaleWillerton@ TheLeaseCoach.com or visit www.TheLeaseCoach.com. www.barbizmag.com

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