Pivoting Your Labor Management System to Optimize F&B Revenue

By Mark Heymann Chairman & CEO, Unifocus | August 26, 2018

Hotel owners and operators have long valued use of a labor management system as a smart and efficient way to understand, control and contain its largest cost. What fewer realize however, is that an effective LMS, properly deployed, can double as a revenue optimizer in their food and beverage outlets (as well as other revenue centers). Understanding the peaks and valleys of demand and using predictive scheduling can circumvent the likelihood of queues at the door that result in would-be guests turning away in frustration. This is particularly true in competitive urban markets, where guests have other dining options nearby and are less likely to be willing to wait for service. 

Revenue-Building F&B Strategies

Historically, hotel operators have relied on several proven approaches to increase revenue in their food and beverage outlets:

  • Increasing the length of the service demand period; for example, opening early for seniors to fill open tables at low demand times.
  • Increasing prices.
  • Implementing programs that focus on increasing average check or average revenue per purchasing customer.
  • Developing a cuisine offering that draws local as well as hotel-oriented business.
  • Providing the best customer service possible, creating demand by inspiring people to return and recommend the business to others.

To that last point, delivering high-quality service is driven by an establishment's ability to have the right staff in place at the time people want to be served.  That's where an LMS with the capacity to identify and adjust staffing to high-demand periods provides a key advantage.

Optimize Your Share

Chef's Table at 3800 Ocean, Palm Beach Marriott Singer Island Beach Resort & Spa
3800 Ocean at Palm Beach Marriott Singer Island Beach Resort & Spa
Eleven Waters at Marriott Syracuse Downtown
Breakfast service at Eleven Waters, Marriott Syracuse Downtown
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Eco-Friendly Practices: Corporate Social Responsibility

The hotel industry has undertaken a long-term effort to build more responsible and socially conscious businesses. What began with small efforts to reduce waste - such as paperless checkouts and refillable soap dispensers - has evolved into an international movement toward implementing sustainable development practices. In addition to establishing themselves as good corporate citizens, adopting eco-friendly practices is sound business for hotels. According to a recent report from Deloitte, 95% of business travelers believe the hotel industry should be undertaking “green” initiatives, and Millennials are twice as likely to support brands with strong management of environmental and social issues. Given these conclusions, hotels are continuing to innovate in the areas of environmental sustainability. For example, one leading hotel chain has designed special elevators that collect kinetic energy from the moving lift and in the process, they have reduced their energy consumption by 50%  over conventional elevators. Also, they installed an advanced air conditioning system which employs a magnetic mechanical system that makes them more energy efficient. Other hotels are installing Intelligent Building Systems which monitor and control temperatures in rooms, common areas and swimming pools, as well as ventilation and cold water systems. Some hotels are installing Electric Vehicle charging stations, planting rooftop gardens, implementing stringent recycling programs, and insisting on the use of biodegradable materials. Another trend is the creation of Green Teams within a hotel's operation that are tasked to implement earth-friendly practices and manage budgets for green projects. Some hotels have even gone so far as to curtail or eliminate room service, believing that keeping the kitchen open 24/7 isn't terribly sustainable. The May issue of the Hotel Business Review will document what some hotels are doing to integrate sustainable practices into their operations and how they are benefiting from them.