The core mandate of hospitality business across the international market has always been driving room revenue to grow its market presence. In the past, checking into a big-name international hotel brand meant the comfort of a luxury room and a breakfast offering at the hotel’s premium restaurant.

While a luxury hotel experience is all about the quality of the room and providing additional comforts to make a guest’s stay truly unforgettable, hotel groups worldwide are missing out on a key opportunity to invest in their in-house dining concepts to drive their food and beverage (F&B) service line.

Every guest checking into a five-star or luxury boutique hotel expects services confined to rooms, spa and fitness facilities. While these elements offer guests a luxurious experience, they’re simply not enough.

In-house dining should be a key driver to disrupt the current trend of dining in classic restaurants. For hotels to stand out in the F&B market, they should focus on culinary excellence – producing an outstanding menu that turns them into a dining destination.

Hotel restaurants typically cater to large groups, like conferences and wedding parties, with set buffets and banquets. But what about the guest who considers dining a special moment to cherish – a meal as an event and not just a convenient add-on as they pass through the hotel?

The revenue line doesn’t have to stop with hoteliers cashing their cheques once the guests have checked out. Hoteliers should consider how their in-house offerings can cater to the overall hotel experience, presenting unique concepts that make the guest’s dining experience as memorable as the stay.

Leverage a strategic sales and marketing team

To position F&B services as a key revenue driver for hospitality groups, hotel operators must leverage a strategic sales and marketing team capable of launching the hotel’s food concepts in a way that attracts guests specifically seeking a premium dining experience – not just accommodation.

Historically, tour operators and sales teams have succeeded in securing room rates for group bookings but have overlooked the significant potential lost by not converting these groups to in-house dining. This failure has often led hotel operators to rely on room revenue to cover shortfalls in F&B revenue.

So how can hoteliers turn this opportunity into action? There are a few strategies to consider.

Owners, hotel operators and investors should consistently promote a culture that prevents hotel companies from using room revenue to cover shortfalls in F&B revenue. While marketing the hospitality experience is a priority, marketing the menu as part of the overall dining experience is key to putting hotels, and their restaurants, on the map.

This can be achieved by offering guests the opportunity to taste the food that in-house restaurants have to offer free of charge. After this introduction, they’ll be more likely to dine in the hotel instead of walking to the nearest restaurant or ordering

It's crucial to emphasise, at group level, the importance of selecting top-quality interior fittings to present a classic restaurant image that competes with renowned brands. Converting room guests to F&B patrons should become a key performance indicator for the sales team, measuring their ability to attract guests to dine within the hotel rather than opting for nearby restaurants.

The introduction of a standardised F&B conversion cycle (FBCC) across all hotel operations can significantly drive revenue growth within the F&B division. The FBCC programme should begin at floor level, laying the groundwork for this initiative, and culminate in the final cover reports from the F&B division.

Operations should meticulously capture every aspect of the F&B experience – from the selection of basic cutlery and addressing negative feedback on food quality to identifying the most popular menu items. These insights should be reviewed by the head chef and efficiently communicated to the sales team promptly.

Conversion cycle

Effective coordination between the chef, sales team, operations and owners is essential to identify the ideal mix of guests likely to participate in the conversion cycle. Monthly cover reports should prompt hotel operators and investors to make necessary adjustments to the restaurant layout, enhancing its appeal.

The sales team should then translate this work into a unique F&B concept targeting guests who prefer in-house dining over external options like a restaurant delivery service. This approach simplifies the sales team's task, allowing them to focus on understanding potential guests' lifestyles and expectations.

The FBCC programme's success hinges on the operations team's ability to capture every detail within the F&B space and promptly update the sales team. A creative chef capable of innovating the menu and restaurant design should be a key resource for the operations team. Only then will the conversion cycle effectively flow to the sales group, enabling them to target the right market segment.

Once ingrained in the hospitality culture, the FBCC programme has potential to become a significant driver of revenue growth for the sector, extending the experience of luxury hospitality to the culinary sphere.