HOTEL BUSINESS REVIEW

August FOCUS: Food & Beverage

 
August, 2012

Food & Beverage: The Biggest Challenges

According to Hotel F&B Magazine, the hotel food and beverage industry declined by an annual rate of 4 percent over the past four years, one of the foodservice industry's greatest declines over that period. However, with an upturn already noticeable, the segment appears poised for above-average growth. The hotel industry is rebounding from the recession; consumers are traveling more often and spending more on hotel foodservice. The long-term forecast indicates that hotel food & beverage will be a high performer over the next five years. The vast majority of new properties and brands entering the U.S. lodging industry offer either limited, or no food and beverage service at all. On the other end of the spectrum are full-service hotels with multiple restaurants, lounges, and banquet facilities. For these full-service hotels, the offering of food and beverage is not just a source of revenue but an amenity used to position the property within the marketplace. The bottom line - a hotel's Food and Beverage department is an exception if profit exceeds 20%. The August Hotel Business Review will provide readers with an in-depth analysis of the trends that are currently shaping hotel food and beverage. We present expert insight from a team of recognized leaders who will guide your food & beverage sales for success and make your profits sizzle!

This month's feature articles...

Rani Bhattacharyya

After all the effort that you and your staff put towards providing guests memorable experiences on your property; why would you want to undermine your credibility by using inexpensive and potentially harmful food and personal care products? In this article, I will review how Genetically Modified Organism's (GMOs) are defined and regulated in the US and some of the human health risks that have been associated with the production and consumption of GMO's. I will also try to provide a few strategies that hospitality management, purchasing and food services teams can use to avoid the risks that GMOs pose. READ MORE

John Brand

The best service any hotel can offer is the ability to serve guests high quality food in their hotel room in a timely manner with excellent service. The mark setting standard from a three star hotel to a four star hotel is complimentary amenities for guest checking or upon turndown. A simple glass of fresh lemonade upon check in can make the all the difference for a customer and a customer for life. READ MORE

Mathias Gervais

Farm to table programs continue to be a growing trend as customers are demanding more and more healthy and flavorful options. While the impact of a local produce program on a menu is easy to define, understanding how to navigate a relationship with a local purveyor to meet the needs of customers can be uncharted territory. Understand your customers and define your needs and clearly define your requests with a purveyor for a successful farm to table program that will be good for the environment, good for the community, good for business and good for customers' stomachs. READ MORE

Cory York

As Chef de Cuisine of the award-winning deep blu seafood grille at the new Wyndham Grand Orlando Resort Bonnet Creek, I have had the opportunity to utilize my creativity with a passion for providing diners with a fresh spin on sustainable sourced seafood and local produce. Maintaining a menu that is not only exciting to our diners (a mix of resort guests, Orlando park goers and the local crowd) but is also accessible to an array of palates is a challenge I have whole-heartedly, and successfully, taken on. READ MORE

Mehdi Eftekari

How Mehdi Eftekari, General Manager of Four Seasons Hotel Los Angeles at Beverly Hills and his team created a destination restaurant concept, with the addition of Culina, Modern Italian. This is the newest trend and Culina was a pioneer concept for Four Seasons Hotels & Resorts, which has proven successful and already won several awards. READ MORE

Richard Vitale

How does an historic hotel maintain its relevance in an ever changing world? From physical attributes worth preserving, to the traditions and customs that have made the hotel unique, to even the food and beverage service, this is a question that restaurants in many of our country's “elevated cuisine” cities, like New York, San Francisco and Miami, have to constantly answer to stay current in the minds of their guests. READ MORE

Thomas Haas

Noble House Hotels & Resorts - a privately held hotel ownership and management company - utilizes interactive applications and digital integration for food and beverage marketing, as with many of its initiatives and marketing efforts. From social media applications and website marketing, to e-marketing and guerrilla marketing, Noble House reaches its guests with information and news regarding all F&B efforts, including banquets, restaurants and events. READ MORE

Wade Murphy

Buying local has become more than just a way to support nearby farmers and fishermen; it has become a criterion for meeting the expectations of the bespoke traveler. The guests staying at our hotel demand the most authentic experience when they are discovering new places and in particular new cuisine, so that is why The Lodge at Doonbeg, which was recently named the Best Hotel Restaurant in Ireland at the Irish Restaurant Awards, has cultivated a network of local artisans whose meats, fish and cheeses which are featured everyday on our menus. READ MORE

Erik Wolf

Improved supply chains and demand for convenience have made it too easy for us to overlook a wide variety of quality local food and drink providers. Not to mention that we're all busy and tend to forget what's right under our noses. These factors have actually backfired and had a tremendous negative impact on our local economies, which are now stagnating. Buying locally-made food and drink is a win-win-win. It's usually healthier for you, usually tastes better and it helps keep more cash invested locally, thereby helping to prevent economic stagnation. READ MORE

Rohit Verma

Customer value extends far beyond the table or the restaurant itself. Restaurateurs have the opportunity to create customer value from the first contact, whether that means a telephone reservation or an electronic order or reservation. The restaurant operator's decision of whether to permit electronic ordering or to accept reservations via the web depends on numerous factors, including balancing guest preferences against the cost of participating in third-party reservation sites. Studies of consumers who have made electronic reservations find that those who prefer the web tend to be younger customers who dine out more frequently than others. READ MORE

James Bermingham

"One cannot think well, love well, sleep well, if one has not dined well." - Virginia Woolf. This quote truly reflects the focus we take to the culinary programs at every Montage Hotel & Resort. Our focus on dining is one of our brand pillars, with a spotlight on delivering the best possible experience for our guests. Each restaurant has been carefully crafted to take inspiration from their environment -- whether beach, city or mountain -- incorporating a sense of spirit and place into the design and cuisine. In turn, our offerings have blossomed into attractions in and of themselves. We focus on execution and meticulousness and have created a recipe based on three-prongs defining our daily course. READ MORE

Stephen Barth

Bringing in an operator, restaurateur or celebrity chef to provide food and beverage service in a hotel can provide immediate and significant benefits for a hotel and its guests. Hotel owners and operators use the experience, vision and creativity of third party food and beverage providers to generate attention, energy and business for hotel properties. Further, while hotels brand their properties and earn their reputations over decades, pockets of a hotel property can be made available to third party food and beverage providers to create a more immediate change in brand direction or environment. Despite the lure, however, chemistry and contract details are important. READ MORE

Martin Pfefferkorn

The Hyatt Regency Atlanta and its Executive Chef know how to satisfy Meeting Planners hungry for innovative breakout ideas. The hotel offers over 180,000 square feet of meeting space is embracing its Southern roots and allowing its experts to run the show with interactive and learning-based breakouts. According to information provided by Elizabeth Mann, Sales Manager for an Atlanta Destination Management and Corporate Event Planning Company, Juice Studios, there is an increase in demand for meeting breaks that not only incorporate refreshments for attendees but also an interactive learning experience. She also said planners are presenting the challenge to keep corporate groups entertained and enlightened between breaks in meetings while integrating the current and evolving food trends. READ MORE

Darin Grohs

A restaurant can be a great asset to a hotel - it presents an additional source of revenue, adds to the bottom line, and is an attractive feature for guests. Operating a restaurant from within a hotel ensures a certain amount of business will be coming your way. Over the years, however, hotel restaurants have gotten a bad reputation for putting out subpar food. With the right marketing, within the hotel and outside of it, restaurateurs can influence the amount of business coming in beyond hotel guests. READ MORE

Brad Parsons

From the guest's experience to the food delivery, in-room-dining can often be challenging for hotel chefs. Every step of the in-room-dining process should be considered because even if the menu is designed to perfection, poor execution often comes at the cost of an unsatisfied guest. Guest needs, seasonality of the ingredients and food quality at the time of delivery can individually or collectively jeopardize a happy returning guest. Using some of my own experiences, this article provides best practices that I have implemented to create a flawless execution for in-room-dining. READ MORE

David Cronin

How can it be possible for an existing hotel, like the Marriott West Loop, by the Galleria, in Houston, to operate Food and Business as a venture enterprise? It seems, at this point, a bit counter intuitive. The hotel has been around since the mid-70s and has had a kitchen, restaurant, catering, bar and room service all that time. How, then, could it still be considered a venture enterprise? First, let's consider the definition of a couple of the terms. An enterprise is a business that is providing some good or service. A venture is something that is speculative or uncertain. A venture enterprise is a business that is operating “with some risk in expectation of gain.” Food and Beverage operations for hoteliers are, in fact, risky propositions every single day. READ MORE

Fernando Salazar

I recently returned from Rioja, Spain, where I spent eight days touring Rioja's wine country. There, I was mesmerized by the world-class wine museum, Museo de la Cultura del Vino. The visit highlighted the importance of knowledge that we, as professionals in the food and beverage industry, should continue to garner so that we can impart education to staff members. As managers, training staff is both a responsibility and a top priority. A properly trained staff in areas like wine education not only provides guests with a better experience but will increase your restaurant revenues and your staff members' tips. READ MORE

Tom O'Rourke

As the mobile market continues to grow, most restaurants have been slow to adapt to the new opportunities afforded by this evolving technology. With possibilities for increasing revenue, generating new revenue streams, optimizing diner loyalty and more, implementing a mobile strategy has never been more vital. Based on research and my knowledge of the hospitality industry, I've written this article to guide you with informed recommendations to embrace this new medium. I will cover the benefits to both the restaurant and the diner, and explain the various ways in which mobile websites and mobile applications can positively impact a restaurant's business practices and the dining experience they provide. Each mobile platform offers something unique to the industry; the benefits of a mobile website are completely different than the benefits of a mobile application and they will each be addressed. READ MORE

Walker Lunn

Most talented chefs I know give great thought into what they put on a plate. The decision to service guests potentially hazardous scientific experiments should be part of their consideration and disclosed to our guests. But we regularly prepare, service and consume genetically modified crops that bear significant risks without any discussion or disclosure. We all have a right to chose if we wish to consume these products, and that right has been silently taken. READ MORE

Neal Cox

Do you feel frustrated by the need to constantly update your menus? Is it difficult to constantly be creative and provide fresh and new ideas for your customers? Do you think that your guests are happy with what you offer now and don't want to see changes? If you answered yes, then get ready for a wake-up call. As a Chef with 22 years of experience in the industry, I have seen and experienced numerous changes over the years and updating your menu is one of the most important elements to staying “new” and on the culinary radar. Your regular clientele want to see it and even more importantly, so do your potential clientele. READ MORE

Shannon Dooley

Call them what you'd like, but mystery shops, inspections, and surprise evaluations can help you keep your team on their toes and your property at the top. Clean sheets and appropriate coffee cups aside, how great hotels take those reports - and a few tricks - to forge a path to success in the eyes of both the brand and the guest. READ MORE

Michelle Millar

Some lodging companies have employees whose primary responsibility is to promote and incorporate sustainability into their business practices. At the same time, more and more hospitality educational programs are teaching about sustainability, because educators and executives alike believe that sustainability will someday become “a norm”. As it does become “the norm”, it will become increasingly important for lodging companies to employ those that are knowledgeable about the practice. And since potential new employees will be learning about it in school or elsewhere, why not take advantage of that knowledge? What are we waiting for? READ MORE

Holly Zoba

Who is winning at social media? Take a look at some best practices we have gathered to help your social media strategy garner some positive results. While social media can appear daunting because of the ever changing landscape, the properties who are experiencing some successes are following some of the same rules. Hitting a homerun in the social media arena may not be in your immediate future, but a series of base hits can help bring you home just the same. READ MORE

Skip Adams

Keeping hotel staff educated on the latest food and beverage offerings for guests is no easy task. Add in the high turnover rate in the service industry, and keeping new staff educated on an ongoing basis seems nearly impossible. At the Windsor Court Hotel in New Orleans, Louisiana, we work with staff collaboratively to ensure employees are not only educated, but also interested. By offering multiple opportunities to not just food and beverage staff, but to all staff across the hotel, we create a richer guest experience and the potential for employees to gain experience outside of their normal tasks. READ MORE

Marky Moore

In the age of "green" building, property owners have become aware of the savings in energy costs that can be realized by building and renovating for energy efficiency. What you may not know is that there are potentially significant tax benefits available to hotel property owners who follow the sustainability trend. Find out how one Arizona resort sought the advice of energy efficiency professionals to successfully cut their HVAC operating expenses, and how you can develop a strategy that may result in a tax deduction for improvements to your lighting system, HVAC system or building envelope. READ MORE

Michael Miller

At first glance, OTA direct connections seem like a good idea to many hoteliers. They save time, reduce labor and provide the opportunity to drive better margins. Choosing this type of deal might not be the best solution in every situation depending on a number of factors that different hotels face. Learn when direct connects work for your property and when to think twice or should reconsider for a future date. READ MORE

Marco Albarran

Educating your hospitality employee and placing the ones that you feel are truly ready and able to wanting to grow within your hospitality brand, is by far of the best practices you should be applying in your company. As you read further into this article, you will find some examples that I have suggested, as well as experienced a growing hospitality professional, which have afforded opportunities of developing some of the best and brightest. READ MORE

C. David Wolf

We all feel the driving force to buy local from community advocates and locavores. With food and beverage costs increasing dramatically over the past five years, we are searching for the perfect balance of sound economics and customer satisfaction for healthful, nutritious and flavorful foods. As we face this challenge, it makes sense to reach out to our local resources for products that serve these ongoing demands. Meeting these diverse expectations is like Olympic hurdling in a 400-meter race for achievement. Limitations of availability from supply and demand, invoicing and transportation are the keys factors. The future of our success weighs heavily on our supportive buy-in. READ MORE

Junvi Ola

Expand your hotel's online reach and influence with a carefully crafted blog that allows you to generate fresh and exciting content on a regular basis. Through a blog, you can share information about your destination, your property, your hotel's history and story on a personal level, rather than within the standard confines of your branded site. Despite the endless topics to write about, one of the pitfalls that many hotels face is running out of content ideas or not knowing how to make each post exciting enough for readers to come back for more. Here, I'll share 10 writing tips to make sure you're producing a blog that will stand out amongst the rest, while keeping readers and followers excited about your content. READ MORE

Rick Gabrielsen

All the initiatives you have bottled up in pursuit of the dream combined with all of the finances set aside to provide the security become the tightrope of emotion. Never at anytime were there naysayers or negative comments, only the pride seen in their faces or the confidence to accomplish a plan. You see small business today is not what it was days, weeks and years ago, because the environment always changes. Self employed gets you recognition, but does not get you financing. Self employment is only you to direct your time. READ MORE

Mark Simpson

Throughout the online travel process-from browsing to booking-customers are telling you a lot with their online behaviors. The real question for you is: are you doing everything you can to put them at the core of your business? Because the companies that do listen will see revenues and loyalty skyrocket. READ MORE

Roberta Nedry

It's the small things that matter. Big things come in small packages... it's the little things that count. This is especially true in the hospitality industry. The littlest efforts can make the biggest impressions. They show a degree of caring in the most simple and mundane of gestures and that everyday life moments matter... even when away from home or office. I call it "Pineapple Service" based on the pineapple serving as a symbol of a warm welcome and hospitality tracing all the way back to the days of Christopher Columbus and early days in the Americas. READ MORE

Kathleen Pohlid

Trimming expenses is a critical concern to most businesses in a tough economy, but efforts to cut payroll costs can present legal pitfalls. The use of independent contractors is such an example. Some employers consider using independent contractors as a cost savings measure, but misclassification of workers is illegal under federal law and also under many state laws. Federal and state governments are cracking down on these and other cost saving practices, including improper use of tip credits and fluctuating workweek payment methods. It is important to know and avoid these pitfalls. READ MORE

Vanessa Horwell

“Please come again soon.” Whether written on traditional storefront signage, or in the unspoken mindset of hoteliers, front desk staff and everyone else on down to the bellhop and parking attendant, you can be sure that professionals in the hospitality industry want your repeat business and “please come again soon” is foremost in their thoughts. While mobile technology in the form of smartphones and tablets have in large ways come to define the pre-trip and in-trip experience across a host of industries, from airlines, to entertainment, to retail, post-trip has largely been ignored. Especially in our still-struggling economy, retaining loyal guests is in many ways far more critical than attracting new ones - and mobile devices are fast proving themselves the ultimate post-stay emissary. Read on to learn how mobile devices are helping cultivate the continuing customer experience -long after the bill has been paid and before the next trip is booked. READ MORE

Sara Fedele

Do online training activities help travel agents to sell more and earn more? Are travel agents worldwide aware that Ministries of Tourism do provide them with online training activities? With the fast growth and development of information and communication technologies (ICT), the world of tourism and hospitality management has been deeply reorganized. This article explores the perception travel agents have of the online training courses created ad-hoc for them by Destination Management Organizations (DMOs) with the aim of providing DMO representatives hints to improve the courses and the travel agents' eLearning experience. READ MORE

Michele Walters

Hotels are changing the way they view their world. The fickle nature of today's customer is forcing a shift from traditional room-centered measures to the more sophisticated guest-centered mentality. By harnessing Guest Analytics intelligence, forward-thinking hotel companies are beginning to transform their Marketing, Sales, Revenue Management and Customer Service functions. While the benefits to the bottom line are many, implementing an effective Guest Analytics program can be a challenge. The key to success is to take a disciplined approach and to understand the technological, mathematical and human dimensions of such an initiative. This 7 step process can help you get there. READ MORE

Jennifer Nagy

Public relations helps companies to build and manage relationships with their public - be it potential guests, media, suppliers or industry experts. These relationships are the foundation of a successful sales campaign so it is important that hospitality businesses are using strategic and effective PR tactics to create the most media coverage possible. In this article, I will explain the most commonly used items in the public relations toolkit: the press release, media alert, backgrounder and fact sheet. READ MORE

Steven Belmonte

Character and integrity are essential in order to run a successful business. Why? A lack of character and integrity will eventually become clear to those who surround you and while you may be able to successfully run your business at first, continuing to stay successful will be the issue. In the hospitality environment, integrity is achieved by walking the talk and doing for your franchisees, employees or guests what you say you are going to do. Conduct yourself with integrity and those franchisees and employees will follow suit. The franchisor/franchisee relationship is truly the ultimate in power sharing and character building. READ MORE

Michael Koethner

The purpose of this article is to initiate a thought process of positive change within the hospitality, spa and wellness industry. It does not matter if the spa is being outsourced or integrated into the hotel/resort. It is important to understand its function and purpose, because the guests will not differentiate between the outlets. The guests only see the overall experience, from point of check-in to point of check-out. The people in this industry also need to be aware of the radical change the spa industry is currently experiencing and be aware of the potential rapid growth. READ MORE

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