Lodging Magazine April 2017 : Page 21

OWNER’S MANUAL THE BUSINESS OF HOSPITALITY›››››››››››››››››››››››› SMAR T S TRATEG Y House Specialty A COMBINATION OF ON-PROPERTY RESOURCES AND FOOD SERVICE BEST PRACTICES OPTIMIZE RETURNS FOR HOTEL RESTAURANTS BY ROBIN MCLAUGHLIN IN THE 1990S, HOTEL RESTAURANT DINING had a bad reputa-tion. During this era, most hotel food and beverage programs were designed strictly to be enjoyed by in-house guests during their stays, and they did not welcome local foodies. And, because hotel restaurants were not pulling in outside revenue or retaining customers, food and beverage programs su ered severely. These fi nancially unstable hotel restaurants were economically problematic in that they made it impossible for fully functioning food and beverage operations to have su cient margins. The new generation is bouncing back from this phenome-non, as hotels strive to establish locally known and embraced dining options within their walls. Larry Spelts, vice president of business development at Mt. Pleasant, S.C.-based man-agement company Charlestowne Hotels, says, “The ideal and super-successful hotel restaurant has strong local support, but that has to be created. Obviously, fi rst you have to have a good product, a good concept, and you have to execute it well, but you also have to build that relationship and build that expo-sure in the local community.” Achieving this goal is a feat that has eluded many hotels in recent years. In Spelts’ experience, the way locals are most e ectively drawn to hotel restaurants is through soft openings. Instead of immediately opening to the public, Spelts suggests having invitation-only benefi ts for local charities when the restaurant is ready to open. Choosing charities that have a APRIL 201 7 LODGINGMA G A ZINE . C OM 21

Smart Strategy

Robin Mclaughlin

House Specialty

A COMBINATION OF ON-PROPERTY RESOURCES AND FOOD SERVICE BEST PRACTICES OPTIMIZE RETURNS FOR HOTEL RESTAURANTS

IN THE 1990S, HOTEL RESTAURANT DINING had a bad reputation. During this era, most hotel food and beverage programs were designed strictly to be enjoyed by in-house guests during their stays, and they did not welcome local foodies. And, because hotel restaurants were not pulling in outside revenue or retaining customers, food and beverage programs suffered severely. These financially unstable hotel restaurants were economically problematic in that they made it impossible for fully functioning food and beverage operations to have sufficient margins.

The new generation is bouncing back from this phenomenon, as hotels strive to establish locally known and embraced dining options within their walls. Larry Spelts, vice president of business development at Mt. Pleasant, S.C.-based management company Charlestowne Hotels, says, “The ideal and super-successful hotel restaurant has strong local support, but that has to be created. Obviously, first you have to have a good product, a good concept, and you have to execute it well, but you also have to build that relationship and build that exposure in the local community.”

Achieving this goal is a feat that has eluded many hotels in recent years. In Spelts’ experience, the way locals are most effectively drawn to hotel restaurants is through soft openings. Instead of immediately opening to the public, Spelts suggests having invitation-only benefits for local charities when the restaurant is ready to open. Choosing charities that have a strong and supportive local demographic in the community, he explains, will have the restaurant packed for several nights in a row. If this is executed properly, Spelts maintains, it can create momentum to roll into opening to the public.

Yet keeping locals interested in the restaurant after having a strong opening has proven to be almost as difficult as getting them there in the first place. Susan Terry, vice president of culinary and food and beverage operations at Milwaukee-based Marcus Hotels & Resorts, believes that the key to maintaining the success of a hotel restaurant is to focus on what makes all customers happy. Terry says, “It’s really easy to run a business that has strong repeat customers. It’s very difficult to find new customers all the time.” Concepts that serve a large local demographic, she says, will keep customer retention rates high.

But even as they’re catering to a local clientele, hotels must also take care not to lose sight of guests needs, which also may vary considerably depending on whether the guest is traveling for business or leisure. The best way to keep guests’ attention—and keep them spending money in the hotel—is offering a number of different dining options at varying price points. Terry says, “When you have a number of options, it allows the guest to move around the hotel without getting bored. There’s no feeling of repetition because they’ve got options to choose from. Even better if there are options based on what their specific price point might be.”

Exciting and varying concepts are very key to making customers want to return to a hotel restaurant; guests won’t eat there if they don’t feel comfortable with the concept, Terry says. “If you want to keep your customers inside your hotel, having variable options for them is hugely beneficial. It also allows you to have restaurants that are not trying to be everything to everybody. They can be based on specific customer concepts and be true to those concepts without necessarily having to worry about alienating a different customer.”

Watching trends keeps restaurants in business; if restaurants aren’t current, new customers won’t return. Hotel restaurants must commit to trends they see sticking, and be wary of ones that are only around for a couple of months. “Trends are important to watch and understand, and if you’re savvy, you know how to act,” Terry says.

While all of these different variables reel customers in and hook them to the restaurant, ultimately what keeps guests returning is a good customer experience. Enthusiastic, well-trained staff members and delicious menu items will keep both customers and employees happy. As Spelts says, “Nothing is more important to creating consistent quality in any food and beverage business like volume, because if you don’t have a busy restaurant, it makes it very, very, very difficult to keep everyone sharp and focused. It also makes it difficult to keep a good house staff .”

Terry and Spelts agree that the first step to having a hotel run smoothly is to have a strong operations team that knows what the expectations are concerning the facility, the customer experience, and the quality of products. Not only does this reflect on the employees, but it also shows customers a strongly defined operating standard that the hotel and restaurant share. Hiring the right people with the right jobs and keeping those employees committed and focused on different individual outlets of the business will make a hotel restaurant run smoothly. Terry says, “Food and beverage may not always be the whole conversation, but often it’s an important piece of the entire conversation of the dynamic or the importance of the overall hotel experience. With these steps, maybe customers will remember that they don’t have to be an in-house guest to enjoy a great meal at a hotel restaurant.”

“It’s really easy to run a business that has strong repeat customers. It’s very difficult to find new customers all the time.”

— SUSAN TERRY VP OF CULINARY AND F&B OPERATIONS, MARCUS HOTELS & RESORTS

CONNECT the DOTS

Set the Table

Larry Spelts, vice president of business development at Charlestowne Hotels, shares three indicators that a hotel restaurant is set up for success.

1 Solid finances. “A hotel with a restaurant typically is going to have a financial controller on sight. That provides a tremendous advantage for the restaurant because most freestanding restaurants aren’t in a position to justify having a dedicated financial controller just for the restaurant.”

2 Dedicated sales. “Most freestanding restaurants don’t do a particularly good job with their sales and marketing. However, most hotels have a director of sales, a team of sales directors, and a marketing manager or a third-party marketing firm, giving the restaurant advantages that it wouldn’t have as a freestanding restaurant.”

3 Quick fixes. “Freestanding restaurants don’t have an engineering department with a chief engineer and maintenance technicians on duty or associated with a property. Hotels have such personnel on hand should the need arise.”

CRAFT FOODS

COMMITTING TO A TREND IS DANGEROUS FOR A RESTAURANT; SOME TRENDS CAN LAST DECADES, WHILE OTHERS CAN LAST MERELY WEEKS. WHEN IT COMES TO CRAFT FOODS, THE TRENDS COULD HANG ON FOR YEARS (THINK CRAFT BEER) OR BE MORE FLEETING. RIGHT NOW, WHISKEY AND BOURBON ARE HAVING A MOMENT, OBSERVES SUSAN TERRY. “WHEN YOU START TO SEE A SURGE IN CONSUMER CONSUMPTION OR A SURGE IN CONSUMER ATTENTION TO A SPECIFIC CATEGORY, YOU WANT TO MAKE SURE YOU’RE ENHANCING THAT CATEGORY AND TAKING ADVANTAGE OF THOSE KNOWN PREFERENCES,” SHE SAYS. WHEN THE WHISKEY AND BOURBON TREND BEGAN IN 2012, SALES IN THE UNITED STATES INCREASED BY 6.7 PERCENT, ACCORDING TO THE NATIONAL RESTAURANT ASSOCIATION, AND THE MOVEMENT HAS ONLY GROWN MORE POPULAR SINCE. TERRY SAYS, “DEPENDING ON WHERE THE TREND FALLS, YOU ALWAYS KEEP YOUR EAR TO THE GROUND. YOU WANT TO BE AT THE FRONT END OF A TREND WHEN IT’S IMPORTANT, BUT YOU ALSO DON’T WANT TO OVER-COMMIT TO A TREND WHEN IT’S INSIGNIFICANT.”

Read the full article at http://bluetoad.com/article/Smart+Strategy/2759549/398850/article.html.

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