Mr. Halfmann

Food & Beverage

Success Through Sustainability

By Keith Halfmann, Vice President of Operations, Marcus Hotels

You don’t have to be in the hotel business very long to figure out that a signature restaurant can be either a financial boon or a balance sheet nightmare. While some operators view food and beverage as merely a necessary amenity, passionate owners and operators view their restaurant as an opportunity to increase the bottom line and engage the local community.

Busy hotel bars and restaurants deliver on both objectives. They draw-in out-of-town guests, enabling the hotel to drive higher ADRs and boost RevPAR, while capturing added revenues from the local community. Finding that balance of attracting local residents, while meeting the needs of hotel guests can be a challenge. But, it doesn’t have to be that way.

Marcus Hotels & Resorts turned this challenge into an opportunity. We found innovative ways for our lounges, bars and restaurants to add value to all of our guests - hotel guests and local residents alike. We focus on how we can be full of activity during all hours – not just lunch and dinner, further develop and grow our brands, meet the needs of our customers and remain top-of-mind in the community.

When we’re developing a new restaurant brand or concept, we focus on these four key components:

• Know your customer. Don’t rush into a new concept - take the time to understand the market. In our experience, it’s often the target market that helps us develop the idea. Ask your team “who are we going after?” Then create the food concept around that. Determining who your target customer is drives everything else, from concept, architecture and design to menus, preparation, staffing and entertainment. This critical step ensures that you remain true to the concept and it maintains its edge, rather than becoming the flavor of the day over time. As your market evolves, so must your concept.

• Separate restaurant management from the hotel. Hotel operators have one primary objective – heads in beds. Many operators view the restaurants and lounges as a subset of the hotel – an added value, but not the first priority. In reality, food and beverage outlets are a business of their own and should be treated as such. Many of our restaurants are separate entities from the hotel. They have their own management team, operating systems and strategies focused on running a successful and profitable restaurant or lounge.

• Implement a strong marketing and PR program. Always have something to talk about. Always ask your team “How can we generate more volume?” Competition is fierce, especially in today’s economy. You can never stop listening to your customers to find out how you can make their experience exceptional. And remember, locals remain in town while guests come and go. From different promotions such as happy hours and wine tasting events to live entertainment and loyalty programs – getting locals in the door provides the base business, while hotel guests are the frosting on the cake. Social media is the perfect vehicle to build and craft those relationships. People are always talking about restaurants and bars online. Use social media platforms to support your marketing efforts, engage with customers on a one-on-one basis and monitor your brand among the chatter. Conversations are everywhere and you have to be there too.

• Streamline to be profitable. At the end of the day, you need to make money. Constantly look at the menu sales mix and always listen to customer feedback. Find ways to bring a variety of customers into your restaurant – during all periods of the day and night. Streamline your operations by creating menus that run an efficient food cost and watch your margin contributions – hold your own against competitors. In order to reduce your costs, consider buying from fewer vendors or look at ways you can purchase locally.

By practicing these tips when developing a new restaurant or bar, your concept will create its own personality and appeal to guests from down the street or across the world.

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A Success Story – Mason Street Grill

Our Mason Street Grill brand is an example of these strategies at work. It’s a benchmark for how a hotel can develop a destination restaurant inside the property and build a following among both local residents and hotel guests. Through creative food and beverage concepts and strategies that attract different customers to each element of the physical space – the bar, the counter, event space and main dining room – we have incubated a great brand that we can grow and introduce into other locations.

The Concept

The Pfister Hotel in Milwaukee, Wis. has always been known for its fine dining options. In 2002, an exciting opportunity was created when a longtime tenant in a prime location with street access vacated the first floor of the hotel. We took advantage of this move, and retooled this attractive piece of real estate for a new restaurant concept. In a 4-Star hotel, there was the added challenge of creating a restaurant that would stand out above the sea of steakhouses and chain restaurants in Milwaukee. After researching the target demographic, a grill seemed to be a natural fit, offering classic American cuisine coupled with quality service. Mason Street Grill was born.

Who We Are – A Quintessential Neighborhood Grill

We created the DNA – or differentiators, nuances and attitude – for Mason Street Grill, and stuck to it in all facets of the restaurant. The 8,500 square-foot restaurant seats 285 guests, including a 65-seat bar, three private dining rooms and a 25-seat chef’s counter overlooking the kitchen. The “book ends” – the bar and private dining rooms, which are the most profitable – flank the restaurant, with the main dining room and kitchen counter – “the show” – at the center – a design concept that has proven to be profitable. The four quintessential spaces each cater to the Mason Street Grill guest in different ways.

• The Bar. The BIG bar is a dominant design feature, impossible not to miss and easy to become a part of. A natural gathering point, the bar can act as a pre-dinner check point or a destination of its own. Using the ample seating to its advantage, the bar provides a casual atmosphere for lunch, energetic vibe during happy hour and in-bar dining or the perfect place to end your night. These options prove attractive for the single traveler or the after-work crowds not looking to sit down for a full meal.

• The Main Dining Area. The flow of Mason Street Grill easily transitions into the main dining area to allow guests to see the full breath of the interior. The restaurant area is open to accommodate and appeal to a wide range of guests and occasions, ranging from power diners during the lunch hour to first dates and large groups at dinner. The inviting booth seating alongside full picture windows is ideal for business guests looking to see and be seen during a hectic work day, while locals can enjoy a leisurely evening dinner in the same atmosphere just hours later.

• The Counter. Ideal for attracting true foodies, the counter is an option for guests to sit close to the kitchen. From this position, they are behind-the-scenes, taking in the sights, sounds and smells of the grill. Chefs chat with frequent diners, discuss the food and beverage items and talk about upcoming events.

• Event Space. Mason Street Grill has three private dining rooms, often booked months ahead. We have found that a full-time coordinator dedicated solely to selling these three rooms is a worthwhile investment. Equipped with LCD televisions and wireless high speed Internet, the private dining rooms host a variety of parties ranging from 16 to 80 guests.

Mason Street Grill Kitchen

How is Mason Street Grill Sustainable?

So how do we effectively keep our customers coming back and maximize revenue from each of these four prime spaces? The answer is solid programming that creates interest and intrigue, and encourages guests to reconnect with the brand not only from a menu standpoint but also through unique experiences. A few examples:

• The foundation of the menu is classic favorites like steaks, seafood, sandwiches and desserts, with seasonal specials. The menu knows its customer and therefore is not changed often. The focus is on exceptional quality that tastes good and people like – and is easy on the wallet.
• A well-established service culture helps to define the brand. At Mason Street Grill everyone is treated like a “regular.” There are no pretentions – just a conscientious, easygoing style with superior attention to details.
• The bar area hosts live entertainment seven nights a week. Our CEO has even been known to make an appearance on Thursday evenings to tickle the ivories of the bar’s piano.
• Sunday night family-style dinner encourages families to reconnect and enjoy three courses for $20 per person. This program has led to a consistent and profitable level of Sunday night covers.
• Wine dinner events bring in foodies and wine lovers, many of which are new customers. These events give us the opportunity to really show off the capabilities of our knowledgeable staff.
• Creative specials, such as the “Five-Fiftini” happy hour with $5 signature martinis and $5 appetizers, and the “Throw ‘Em Back Thursdays” raw bar with a dozen oysters and a pitcher of beer for $20 are favorites among the after-work crowd.
• Seasonal promotions such as our recent “Summer of ’69” promotion which gave customers a 3-course menu for $69 a couple keeps customers engaged. An upcoming promotion will involve our executive chef taking a fishing expedition to catch the freshest stone crab himself. This will be turned into a social media promotion including video and commentary from the chef.
• Chef Series cooking classes allow our guests to meet the restaurant’s chefs and learn to cook with seasonal, local foods, while having an intimate experience with the menu.
• An ongoing loyalty program has enabled better email and social media communication with our customers, while encouraging repeat business. We find that loyalty members spend, on average, $27 more than non-member guests at Mason Street Grill.

Getting the Word Out

Once the programming is in place, you need to get the word out. Marcus Hotels & Resorts is currently implementing its fall e-billboard campaign for Mason Street Grill, set to launch in November 2011. The campaign will run for the first 14 weekdays in November, and again for the first 14 weekdays in December. As the campaign is digital, real-time information can be displayed on the boards using “day parting.” This allows the billboard messaging to include the exact time of day and temperature outside, creating eye-catching visuals such as “It’s 11:18 a.m. – Hungry for lunch?” or “It’s 7 degrees out – Warm up with broccoli cheese soup!” Advertising can also be combined with an effective social media program, such as posting a live picture update of a couple dining at Mason Street Grill to celebrate their anniversary – as long as they have signed a waiver.

Remaining Profitable

Mason Street Grill opened as top restaurant in Milwaukee and remains a strong contender today. The restaurant serves 100 percent local Milwaukee-area residents during the weekday lunch period, 60 percent locals/40 percent hotel guests for dinner during the weeknights and 85 percent locals/15 percent hotel guests on the weekend. These are strong numbers that any hotel restaurant would be proud to boast. In terms of profitability, Mason Street Grill generates 25 percent more in annual rent than the former tenant, while providing added operating income for the hotel. By reviewing our sales mix and streamlining our offerings in both food and beverage, and reducing our vendors to consolidate buying power, we have reduced our overall cost of goods sold by 6%. This highly successful restaurant concept helps The Pfister Hotel to maintain its position as the premier hotel in Milwaukee, while upholding its reputation for outstanding food and enviable service.

As every hotelier knows, being an exceptional hotel operator takes more than just creating a menu – it takes passion, innovation and creativity. Transforming a hotel restaurant into a destination that is sustainable takes vision, the right programming, adapting to changing customer needs and a long-term focus. Mason Street Grill shows how this can be achieved and provides a model for others seeking sustainable success.

Keith Halfmann is vice president of operations for Marcus Hotels & Resorts. Mr. Halfmann oversees the day-to-day operational responsibilities for several hotels in the Marcus Hotels & Resorts portfolio including the Hilton Madison, Wis.; Sheraton Madison, Wis.; Sheraton Clayton Plaza Hotel, St. Louis, Mo.; Hilton Garden Inn, Houston, Texas; Bloomington Hilton, Bloomington, Minn.; Crowne Plaza – Northstar, Minneapolis, Minn. and the Westin Columbus, Columbus, Ohio. Mr. Halfmann is responsible for managing revenues, sales, financial performance, guest satisfaction and operational excellence for each hotel, as well as managing product and service quality standards for a variety of hotel brands. He also remains involved with the operation of the Mason Street Grill restaurant located in the Pfister Hotel in Milwaukee, Wis., which he successfully opened in 2006. Mr. Halfmann can be contacted at 414-905-1200 or keithhalfmann@marcushotels.com Extended Bio...

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