Best Practices and up to the minute news on Customer Experience Management and Service Excellence
Best Practices and up to the minute news on Customer Experience Management and Service Excellence
Imagine a guest checking into your hotel after a long day of travel. They’re hungry, maybe looking for a nightcap, but no on-site bar or restaurant exists. Instead of keeping their spending in-house, they head to a competitor’s venue down the street. That’s lost revenue– revenue that could have stayed within your property.
The financial case for on-site bars and restaurants is clear: they drive revenue, enhance guest satisfaction, and increase overall profitability. Studies show hotels with strong food and beverage (F&B) operations can significantly boost their per-room revenue. Yet, many properties underutilize this opportunity, losing thousands – if not millions – in potential earnings.
Below, we explore the latest research on F&B revenue, why hotels are missing out, and how hospitality leaders can turn their properties into full-service revenue machines.
The U.S. hospitality market is projected to reach $2.17 trillion by 2030, and food and beverage service plays a major role in that growth. According to CBRE, hotels that optimize their F&B operations see up to a 30% increase in total revenue per available room. Yet, some hotels still consider their restaurants an afterthought rather than a primary revenue stream.
A 2023 STR report found that hotel F&B revenue per occupied room rose 50.2% from 2021 to 2022, showing a post-pandemic surge in demand for on-property dining. If your hotel isn’t capitalizing on this trend, you’re letting a lucrative opportunity slip away.
Generic, uninspired hotel restaurants don’t attract guests. Instead, properties should design concepts that cater to both travelers and locals. Whether it’s a rooftop bar with craft cocktails or a farm-to-table dining experience, differentiation is key.
Many guests dine out because they don’t realize the hotel offers a high-quality option. Promote your F&B outlets through digital signage, in-room menus, and front desk recommendations.
Happy hours, prix-fixe menus, and themed dining nights can boost foot traffic during slower hours. Hotels that successfully implement happy hour promotions see increased bar sales, with guests often staying for full meals afterward.
Room service is making a comeback, particularly with streamlined ordering technology. Hotels with app-based or QR-code ordering systems report higher in-room dining sales.
Menu engineering is an essential practice for increasing profit margins. Hotels should focus on high-margin items like specialty cocktails and signature dishes that differentiate them from outside competitors.
Some hoteliers hesitate to invest in on-site dining due to overhead costs and staffing concerns. However, modern F&B models offer ways to mitigate these challenges:
Flexible staffing models: Cross-train employees for both front desk and F&B roles.
Partnering with local chefs or brands: Collaborate with well-known local restaurants to bring in established dining concepts.
Technology-driven efficiency: Use self-service kiosks, mobile ordering, and automated inventory management to cut costs while improving guest experience.
The days of treating hotel restaurants as an afterthought are over. Today’s travelers expect high-quality, convenient dining options, and hotels that meet this demand will see stronger revenue and guest loyalty.
By investing in well-executed F&B operations, properties can capture lost revenue and create a standout experience that keeps guests coming back. The question isn’t whether hotels can afford to invest in on-site dining – it’s whether they can afford not to.
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