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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Coming up in March 2019...

Human Resources: An Era of Transition

Traditionally, the human resource department administers five key areas within a hotel operation - compliance, compensation and benefits, organizational dynamics, selection and retention, and training and development. However, HR professionals are also presently involved in culture-building activities, as well as implementing new employee on-boarding practices and engagement initiatives. As a result, HR professionals have been elevated to senior leadership status, creating value and profit within their organization. Still, they continue to face some intractable issues, including a shrinking talent pool and the need to recruit top-notch employees who are empowered to provide outstanding customer service. In order to attract top-tier talent, one option is to take advantage of recruitment opportunities offered through colleges and universities, especially if they have a hospitality major. This pool of prospective employees is likely to be better educated and more enthusiastic than walk-in hires. Also, once hired, there could be additional training and development opportunities that stem from an association with a college or university. Continuing education courses, business conferences, seminars and online instruction - all can be a valuable source of employee development opportunities. In addition to meeting recruitment demands in the present, HR professionals must also be forward-thinking, anticipating the skills that will be needed in the future to meet guest expectations. One such skill that is becoming increasingly valued is “resilience”, the ability to “go with the flow” and not become overwhelmed by the disruptive influences  of change and reinvention. In an era of transition—new technologies, expanding markets, consolidation of brands and businesses, and modifications in people's values and lifestyles - the capacity to remain flexible, nimble and resilient is a valuable skill to possess. The March Hotel Business Review will examine some of the strategies that HR professionals are employing to ensure that their hotel operations continue to thrive.