HOTEL BUSINESS REVIEW

August FOCUS: New Developments in Hotel Food and Beverage

 
August, 2013

New Developments in Hotel Food and Beverage

The hotel industry is finally rebounding from the Great Recession. The economy is modestly improving and so, business and vacationing consumers are traveling more frequently and spending more on hotel foodservice when they do. In fact, according to a recent study, hotel foodservice sales are expected to grow 2.2% annually through 2016, making lodging one of the fastest growing segments in the foodservice industry. Food & beverage has been recognized as an important contributor to a hotel's positioning within its market. A guest's experience with food & beverage plays a critical role in his or her overall hotel experience, which provides greater opportunities to enhance a property's overall performance, and to add value to the asset as well as the real estate. Though the immediate future looks bright for the hotel foodservice industry, competition is at an all-time high and operations must continually evolve to meet the demands of its customers. In order to address these concerns, some hotel ownership and management companies are creating wholly-owned restaurant companies as subsidiary divisions. Others are emphasizing the development of in-house, retail-style restaurant concepts. Still others are partnering with celebrity chefs, and some hotels are adding more food and beverage services in their public spaces. In addition, there is an increased focus on the banquet, lounge, room service and catering sectors in order to exploit their profit potential. The August issue of the Hotel Business Review will document these business developments and report on how some leading hotels are fully exploiting their Food and Beverage opportunities.

This month's feature articles...

Omer Acar

The Paris restaurant scene is constantly evolving. Many trends have been emerging in the past couple of months and travelers are more adventurous with taste, but more conservative on quality. They're eager for new experiences and can't wait to try out new restaurants, but without compromising taste and excellence. Parisians are very selective about their dining options. They want to know where the products on their plates come from - especially with all the recent misleading labels in France and Europe. A guest-friendly dining experience combined with food chain transparency is the most important criteria guests look for in a Paris restaurant. READ MORE

Ned  Barker

The hotel industry has come a long way since operators had to count the cars in their competitors' parking lots to gauge their performance in the marketplace. For many years the STAR report has replaced car counting with hard data and analysis. But what about F&B? For full service hotels, F&B may account for a third of a hotel's total revenue, even more at the luxury end of the market. Yet F&B market share goes unmeasured. Until now. READ MORE

Paul  Lynch

Embracing the cuisine of any state means embracing the land it grows on. The fruits and vegetables native to an area create the flavor profile that makes up that specific taste of place. When I say a taste of place, I'm referring to flavors that have evolved over centuries with influences from the cultures of that land. I believe that cooking with local, native foods, connects us to a rhythm and life cycle that we've lost over the years and that's why sourcing local food for my restaurant is so important to me. READ MORE

Jeremy  Cooper

For Four Points by Sheraton, creating a bar experience that would drive customer loyalty was ultimately as simple as handing ownership of each hotel's beer program to its general manager, with a local craft brew at is core. Perfectly suited to Four Points' road warrior demographic, the innovative Best Brews℠ program is centered on the simple pleasure of enjoying a great beer with a unique, local story to tell. It has proven to be a home run with guests and owners/franchisees, and a business builder for Starwood's “best for business” brand. READ MORE

Glenn Withiam

Reviews on the internet, interactions in social media, and distribution via the web have drawn the attention of restaurateurs in many locations. None of this changes the core restaurant transaction, however, and restaurateurs should use these new tools to aid them in their ancient goal of delighting customers and encouraging their return. READ MORE

Randy Buck

In today's world where diners bring their cell phones to the table and various review platforms are available at their fingertips, restaurant managers need to be more responsive than ever. To stay current in a society that has grown accustomed to immediacy, hotel food and beverage operations need to expedite their internal processes to match that speed. However, while a good measure of control, various levels of approval to menu changes, new recipes and service alterations can slow and sometimes even halt the response process. Executive Chef Randy Buck of Hotel Monteleone discusses how the hotel has effectively used customer reviews to drive operations in the hotel's newest restaurant Criollo. READ MORE

John Brand

Applying for a job these days has grown from its dependency on skill and experience to include the added value of knowledge and the pursuit of information. As a cook, sous chef and chef, one must have basic culinary skills and kitchen operation knowledge as a standard to get in the door. We used to hire for depth and stamina and we still do but equally important is attitude and disposition in the kitchen. One of the crucial details I look for in an interview includes knowledge, does this person have it and know how to utilize and share it. Will they bring a fresh perspective, unique experiences and technique? Will their experience enhance the culture of the kitchen? READ MORE

Larry  Mogelonsky

Cutting carbohydrates out of meals is a current nutritional trend that has gained mainstream acceptance. As such, hoteliers would benefit by appealing to adherents to this dietary choice through healthier menu options that are 'carbless'. However, it may be quite difficult to adopt this trend as carbs are deeply ingrained in our culinary and cultural heritage. In particular, carbs are often essential to delivering meal satiety, which is a heavy factor for meal satisfaction. Without carbs on the plate, it thus becomes harder to satisfy your average restaurant patron. I offer a few creative solutions to help navigate you through this gastronomic change. READ MORE

James LoBosco

With Millennial travelers on the rise, the hotel industry is adjusting to accommodate the needs and expectations of this influential demographic. Millennials grew up with the Internet and they are tech-savvy and active with social media. Looking to meet their guests' interest in staying connected while traveling, hotels are reinventing lifeless lobbies and common areas to lure a new generation of travelers who work and socialize differently. Introducing the most recent hotel add-on: the e-lounge, a gathering place fully equipped with tech essentials to entice modern-day travelers. READ MORE

Rani  Bhattacharyya

In this article I try to present a strategy by which hospitality service providers can both protect and strengthen their existing brands by deepening its connection to the local landscape and community. By examining the public's increasing interest in locally grown and produced food products, and why this trend is important for hospitality professionals to pay attention to, I also hope to provide readers a few ways that both hospitality and food service professionals can continue to provide the powerful value proposition that the industry offers to the public, through connecting its fine dining services back into the local foodshed. READ MORE

Antonio Rodriguez

Like many other industries, resort food and beverage services have experienced numerous challenges over the past few years as the U.S. economy suffered. The biggest challenge in this economy is the budget, which is getting smaller for labor. We've needed to do a lot more cross-training, utilizing the same people for different tasks. Another aspect is the food costs. You've got to be buying smart. You have to know who your customers are and this is more important than ever. Before they go out to eat, they have a good idea of what they want to spend and or what they can afford to spend. These days, you have to have not only the passion, but the drive to stay in this business. I've been in this business for more than 30 years, since 1982. If I didn't love what I do, I just wouldn't be doing it. READ MORE

Melissa  Paston

Melissa Paston, catering sales manager of The Kitano, New York's only Japanese-owned hotel, discusses how the property sets itself apart through authentic Japanese food and beverage experiences for meetings and events, highlighting the hotel's heritage. As authentic food experiences are of such mainstream interest in the right now, the hotel provides guests with the ability to incorporate traditional Japanese menu items and experiences which translate to a high-value, memorable event or meeting. Traditional offerings range from kaiseki delicacies through the hotel's Michelin-rated restaurant, Hakubai, and the organization of traditional tea ceremonies for a truly unique team-building session during a corporate meeting. READ MORE

Monica  Poling

With childhood obesity rates on the rise, and Americans spending an increasing amount of their food budget at lodging establishments, Hyatt Hotels & Resorts, which launched an industry-leading philosophy “Food. Thoughtfully Sourced. Carefully Served” in 2011, has broadened its approach to healthy eating by rolling out a new “For Kids, By Kids,” menu. What makes the menu particularly groundbreaking is that Hyatt asked kids, including 12-year old Haile Thomas, an accomplished healthy eating activist, what they'd like to see on menus designed for them READ MORE

Majed   Dawood-Farah

Here in Atlanta, Southern food is in our heart and soul. And we like to eat. Not only are we the hometown of the world's favorite soft drink (Coca-Cola), Atlanta today has a vibrant food scene full of James Beard Award winners and Food Network stars, not to mention neighborhood “Mom and Pop” favorites and home cooks who serve some of the best dishes in the U.S. READ MORE

Edward  Allen

With turnover rate in the food service industry skyrocketing over most other industries, attracting and retaining top performing employees is intrinsic and crucial in today's fast paced world. Businesses are vitally dependent on top performers to provide services that distinguish themselves from other strong competitors. Drawing in talent in our industry nowadays with fierce competition, creative cultures and reputation to produce good quality food gives us challenges, of course, but we like to look at them as opportunities. READ MORE

Brian  Mitchell

In an industry of tight margins, it makes sense to impose stock controls, effectively manage inventory, and address over-pouring and spoilage. However there's a waste that's more damaging to a business. Far worse than a 3% over-pour are the sales never made - that rightfully should have been. The opportunities missed, that should have been taken. They abound in every restaurant section, every shift, every day, week and month of the year. Waste will always be with us. But the painful thing about this is that it's so large, and so easily corrected. Armed with the right technique, any front of house team can convert these losses into immediate incremental business - and more satisfied diners. What a waste that they so rarely do. READ MORE

Amy Bair

According to Cornell, Food and Beverage expenses can take up to 40% of a hotel's operating costs. In this new economy, hoteliers are looking for creative yet long-term methods for reducing those expenses without hurting their scores. In this article, we portray a Cornell training guide that offers specific methods and best practices for reducing waste in food services. In fact, this guide is set up so you can easily train your staff. Additionally, we give you pointers on how to not only get them on board but also make them excited to help! READ MORE

Marc  McDowell

What is today's traveler looking for when deciding on where to stay for their vacation or weekend getaway? Do they research all the online reviews in hopes that will lead them to their ultimate destination or is it where the best value is perceived, best service? Is it a place that has the best spa or the pools with all the slides for the kids or is it the place with the best restaurants that determine where you book. Because there are so many choices out there where someone can spend their money you need to have that something "special thing" that attracts them and keeps them coming back for more. In my opinion it's a hotel or resort that takes the "everything made from scratch" philosophy that will win their patrons over. READ MORE

Erik Wolf

Three stars, 30 points, 5 diamonds? Which is the best and who is doing the rating? The time has come for a new global food and drink experience accreditation system for our industry. There is plenty of room for improvement in current assessment systems for food and drink experiences. Consumer-oriented systems are confusing and/or incomplete. Trade systems are often arcane or relate to specific organizations or programs (like organic-certified or sustainably-fished). To be successful, such a new system would need to cross the various industry sectors, and be suitable for all countries, languages and cultures. We'll look at the work that has been done to date on just such a system and what's in store for the world's food and drink rating systems in the near future. READ MORE

Andria Ryan

The last few years have brought an explosion in the number of private lawsuits against employers for wage and hour violations and increased scrutiny by the federal Department of Labor and various other state enforcement agencies. The hospitality industry is not immune from these challenges. In fact, the Wage and Hour Division considers hospitality workers and other low-wage workers to be particularly vulnerable. Over the past year, the U.S. Department of Labor Wage and Hour Division has targeted hospitality employers across the country. Investigators often arrive unannounced and demand immediate access to payroll records and employees for interviews to determine whether employees are properly classified and properly paid. READ MORE

Ashley Verrill

Online Travel Agencies such as Expedia, Priceline and Hotwire are extremely good at what they do: filling empty rooms. Unfortunately for hotel operators, they've become slightly too good at it, and travelers are now going straight to these deals sites for their booking needs. So how do hotel operators keep OTAs from cannibalizing business from customers that might have booked direct in the first place? This is one question I hear all of the time from companies that call me for advice on hotel automation systems. READ MORE

Clifford Ferrara

Sometimes, in the fast-paced world of hotel management it is easy to skip over some of the suspiciously simple aspects of our operations, like truly knowing our customer. Knowing who is in our hotels is the first step in the process, understanding their preferences and why they are staying there the second, and engaging or utilizing that understanding to capture more business, the final and most important. In this article, I share key strategies you can use at the hotel level to gather and leverage information about your guests to ultimately increase your bottom line. READ MORE

Michael Koethner

The main point of discussion and the key topic elaborated on in this article is the rapid growth of wellness centers (including spa, fitness and pool) within hotels and resorts in developing countries. When looked at “Maslow's pyramid of Human Needs”, the development and education of most humans, then compare this with the business and operation side of the hotel or resort it will not make much sense at all to build or integrate a wellness center into some of the new hotel projects. The “why” and “because” will hopefully be reasoned enough in the article below. READ MORE

Michael McCartan

The distribution challenges for hotels has increased with the internet being the primary source for leisure bookings, however with a vast selection of accommodation available hotels need to shout louder to get heard. This is causing conversion figures to fall. Here we talk about hotels and their perspective on distribution, the pain points and how they aim to tackle it. This includes findings and stats from a Research paper that RateTiger has prepared in association with EHL. READ MORE

Frank  Vertolli

Big data is a hot topic across business sectors, but in many ways the travel industry has been a data-rich channel for years. At some point we just start to call it “big.” It's a journey, and the data you need to advance your business is available today. This article examines tips and tools to gather data about your consumers, and provides insight on how to make it manageable and effective in driving hotel bookings. How will you put it to work for your hotel? READ MORE

Julian Gurule

The success of a hotel's reorganization will depend on securing the support of vendors, employees and guests in the early stages of the chapter 11 case. Building and maintaining strong relationships with these groups will enable the hotel debtor to seamlessly transition into bankruptcy without negatively affecting the guest experience (always a critical consideration) or jeopardizing the value of the business. This article outlines the principal ways that a hotel debtor can encourage vendors, employees and guests to stand by the company for the duration of the chapter 11 case, thereby increasing the likelihood of a successful restructuring. READ MORE

Brandon Dennis

Tech bloggers predict that Google Glass, the computer you can wear on your head like glasses, will be available to consumers by as early as Christmas 2013. While we don't know how popular this new product from Google will be, many theorize that Glass will be the dawn of a new age of wearable device technology, reaching similar adoption rates as the tablet and smartphone technologies before it. If true, then hoteliers will have to adapt to the technology quickly, just as they had to adapt to smartphones and tablets. The following are some ideas to think about for dealing with guests who use Google Glass, and possible opportunities to market your property. READ MORE

Mercedita Roxas-Murray

The number of hotel chains that are adjusting their loyalty programs, forcing guests to use up more points to redeem upgrades, discounts or free stays is on the rise. These devaluation adjustments run the risk of frustrating and disenfranchising customers, the exact opposite of what a rewards program intent and goal is. Hotels must separate themselves from their competitors in an environment when customer service is a table stake, many point programs are similar, and devaluation is occurring causing point programs to be less attractive. The opportunity at hand is to build customer loyalty using the foundation of the current loyalty rewards programs and build upon it in such a way as to not cause revenue cannibalization. Hotels need to consider instant gratification rewards, tiered systems of loyalty, and using experiential to tie lifestyle interests with rewards. READ MORE

Paul Vanderbroeck

Developing Success in Developing Countries: How Revenue Management can Bolster Bottom Line Results in Emerging Markets - To say that hoteliers operating in emerging markets often face challenging business conditions is an understatement like no other. From operating in boom to bust business environments, from periods of slow business growth to increasingly fierce competition, hoteliers in emerging markets face economic uncertainties on a daily basis. Yet, despite these challenges, they are also presented with enormous opportunities to grow revenue if they have the right people, processes and tools in place. To help ensure that industry best practice strategies and systems are in place, hoteliers in emerging markets should take lessons from their counterparts operating in more developed markets. Critically, emerging market hoteliers should be looking towards the widespread adoption of revenue management amongst hoteliers in developed markets and how individual and group owned properties enjoy stronger bottom line results. READ MORE

Jennifer Nagy

Affiliate marketing is a marketing tactic that many hotels overlook, either because they aren't aware of it as an option or because they don't see the value in it. Well, I'm here today to tell you all about why affiliate marketing is a great tactic to increase online traffic and bookings - and the best part is, you don't pay a dime until you see results. READ MORE

Marco  Albarran

The title and article focuses on suggestions which educates the reader on how one truly can demonstrate to the target segments which they invest their marketing dollars in, the level of hospitality and service so they can increase their chances of retaining them as a long term client and/or guest. Evidence of how important hospitality focused service is fundamental in a competitive way, ensuring customer retention and increased bottom line performance, as well as improved return on investment, has been in discussion by several hospitality brands lately. READ MORE

Kathleen Pohlid

In 2009, the Americans with Disabilities Act Amendments went into effect providing greater protections against employment discrimination for over 54 million Americans with disabilities. Demographics indicate a growing impact on employers. The U.S. Census Bureau estimates that 10 percent of people 18 to 64 years of age and 38 percent of adults 65 years and older have a disability. Additionally from 2008 until 2012, the Equal Employment Opportunity Commission reported an increase in total ADA monetary awards from $57.2 million to $103.4 million. It is important for employers to know and comply with their obligations under the ADAAA. READ MORE

Mark Simpson

Establishing your hospitality brand on social media platforms isn't difficult. However, once there, many brands act as if the job is done. But that isn't the case--far from it! (cue The Carpenters' We've Only Just Begun...). The key is leveraging your social media activity into a stronger brand, greater customer loyalty, more reservations, longer stays, and higher revenues. This article examines 7 proven tactics from e-commerce and online marketers that will turn your social media presence into social media profit. READ MORE

Janet  Gerhard

There are multiple indexes around customer experience and in each one there are winners and losers. ACSI says customer satisfaction is improving. JD Power says it's declining. Market Metrix announces quarterly winners of their study. TripAdvisor says something else and so on. There are no clear winners since in each measure the rankings change. Does it matter? Beyond marketing, what value can we, as hotel and brand operators, glean from these indexes? With customers more jaded and armed with information never available before, how do we assimilate ratings, reviews and everything in between? READ MORE

Beth  Schelske

Employees in hospes industries increasingly experience high levels of burnout and turnover. Patients and guests can be demanding, the hours long and the benefits inconsistent. During holiday and vacation times, when most people are spending extended time with family and/or taking time off from work, employees in the hospitality industry are putting in overtime and feeling stretched to their limits. It is no wonder that the hospitality industry, in general, is accused of creating a turnover culture. While there's no silver bullet for eliminating turnover and increasing employee satisfaction, there are short and long-term strategies that can make a significant impact. READ MORE

Roberta Chinsky Matuson

There are few businesses where employees are expected to be “on” 24/7 and to always have a smile on their face regardless of how they are feeling. But this is exactly what is required of those who work in hotels. Some say that if you can't stand the heat, then get out of the kitchen. That old saying may have worked well for other generations. But what happens when the next generation isn't as tolerant or committed as the one that came before them? Will you be able to compete for talent with the 9-5 industries and if so, will you still be able to create a five-star experience with employees who resemble characters out of the Zombie movie, The Night of the Living Dead? Here are some steps you can take to prevent this nightmare from happening in your hotel. READ MORE

Miranda  Kitterlin-Lynch, Ph.D.

You would be hard pressed to find someone working in hospitality who has not had days of feeling stressed, bored, or unappreciated at work. Left unchecked for a prolonged period of time these feelings can accumulate and result in what is commonly known as 'burnout.' The symptoms of burnout tend to be initially job related and have been connected to a variety of health problems ranging anywhere from severe depression to violence. Aside from being bad for the health of an individual, burnout is bad for the overall health of a business. Lost productivity, decreased commitment, and high turnover rates are but a few of the organizational concerns that can be directly linked to employee burnout. Fortunately, there are a number of ways for management to respond to and prevent a burnout outbreak in their workplace. READ MORE

Marie  Apke

Burnout and the resulting turnover of hotel employees is the highest of any industry. To effectively reduce the rate of employee burnout in the hospitality industry, it is important for general mangers to make a commitment to help their employees develop ways to minimize workplace and personal stress on a daily basis. An organization's EAP is proven to be an effective resource for managers and employees alike. READ MORE

Joyce Gioia

With non-traditional workweeks, night shifts, and difficult guests, hotel employees have very taxing jobs. On top of that, the demanding responsibilities and long hours often lead to the condition known as "burnout". Often hotel executives think of this state as irreparable, however wise hospitality leaders know that they can help the employee and retain a valued team member with a few very strategic moves. READ MORE

Henri  Birmele

In today's career-driven hospitality industry culture, with managers and staff devoting an inordinate amount of time to the job, there is need to hit the pause button and think about how to better understand and manage work-life balance issues. Finding solutions to achieve a more productive workforce is an ongoing process. Striking this better balance is the challenge hoteliers face. In this article, the author takes us on his quest to tackle and deal with important issues we all need to need to recognize, embrace and integrate into daily practice. How is your organization dealing with work-life issues? READ MORE

Fred Bendaña

The term “engagement” is so overused these days that it has nearly become a cliche. However, internal initiatives to engage and develop team members often remain under-invested and misunderstood by organizations large and small. Here's what we know: studies show that actively engaged stakeholders generate the greatest levels of customer satisfaction and these higher levels of satisfaction directly impact business profitability. Considering that it costs significantly more money and resources to onboard a new employee or brand representative than it does to keep a valued team member, it makes undeniable financial sense to find ways to capture both the hearts and minds of your people. READ MORE

Darnell  Lattal

The reasons for visits to hotels vary, but guests require professional behavior from staff. Down time, resolving disputes, complaining of aching feet... Personal imperfections cannot be aired in front of the customer. After all, the hotel industry is one of the few businesses in which people who ask for services are called guests. Consider the pressure to be constantly “on” that employees in such settings often face. From the parking attendant to the registration desk to the cleaning service, every element is visible — the employees are part of the setting and they have a presentation burden that employees in other businesses don't carry in this way. How such employees show up literally does matter. READ MORE

Adwoa Buahene

Burn-out is a common risk for all employees. People who feel that they are reaching burn-out levels are often employees whose commitment to their roles is unquestioned. They are the 'go-to' employees and managers, constantly putting out fires and ensuring that the team's performance is at its best. In the hospitality sector, the need for immediate response to ensure customer satisfaction is intense. Managers have to think quickly on their feet, and often are so busy solving problems, that they barely have time to work on initiatives that require more strategic thinking and planning. So what can a manager do to decrease the likelihood of burning-out? READ MORE

Robert Woods, Ph.D., CHRE, ISHC

Burnout is reaching epidemic proportions in the United States. While some say “people just don't want to work today,” the answer is more complicated and not necessarily because of the people involved. More likely, it is the result of changes in the workplace and in society. One of the major problems is that managerial confidence is eroding (and along with it enthusiasm). Managers are constantly watched by their boss, customers and employees. In such an environment managers are less likely to enjoy success and less likely to feel the thrill of achievement. READ MORE

S. Lakshmi Narasimhan

Stakeholders pour money into their hotel investments with expectation of a good return. To achieve this return, the hotel property needs to be looked at in asset management terms and not just financial or operational. Stakeholders would like to have a professional SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis carried out to assess their chances of accomplishing the returns they seek. In recent times, they are turning more and more to professional asset managers to carry out their reviews and determine whether the asset is indeed being managed in a manner consistent with earning the returns expected. As far as they are concerned, a hotel asset is no more the domain of the accountant or the financial controller. It is the job of an asset manager and the paramount objective is value creation. Asset Managers have their work cut out for them. READ MORE

Kelly  McGuire

Hospitality executives struggle to find the balance between delivering a guest experience that fosters loyalty and repeat business, and delivering on their revenue and profit responsibilities to stakeholders, shareholders or franchisors. If you invest too much in the guest experience, you could impact profits. On the other hand, focusing too much on cost cutting measures negatively impacts the guest experience. Analytics can help achieve balance, but only when commitment to fact-based decision making is part of the corporate DNA. Organizations that build a strategic analytic culture are better positioned to succeed in a highly competitive market. READ MORE

Fran  Sarmiento

From rooftop nightclubs to water parks, unique amenities are springing up at hotels across the country. These attractions can help attract more guests, but they also open hotels to an array of insurance exposures. With the right risk management tactics and insurance coverage, you can adopt new amenities while keeping your business safe. READ MORE

Roberta Chinsky Matuson

Have you ever noticed that some managers seem to attract the same team members regardless of where they go? It's not uncommon for these managers to receive calls from former employees asking them if by chance they have a spot available on their team. We call these leaders magnet because no matter where they go, others seem to follow them. You can sit back and wish you had their charisma or you can take stock of what it takes to be the type of leader that gets great people to stick with them through thick and thin. Here's how to become a magnet leader by Monday. READ MORE

Coming up in March 1970...