Food and beverage and hotels go hand in hand. After all, hotel restaurants, like the walls they exist within, sometimes garner as much attention—think T’ang Court, the three Michelin-starred restaurant in The Langham Hong Kong Hotel, or The Palm Court at The Plaza in New York or Dinner by Heston Blumenthal inside the Mandarin Oriental Hyde Park London. A restaurant of this caliber is an experience in and of itself, not just a part of the hotel.
In some cases, a hotel will operate the restaurant itself; in other cases, it leases the space out to a third party to run. Regardless, each case is different and reliant on myriad variables to decide what route is best. It’s for that reason why for hotel owners and hotel operators, striking the right balance between the rooms department and F&B department’s operations is crucial.
While some similarities exist in running a hotel and restaurant, managing F&B inventory and operations is challenging, nuanced and necessitates a select set of skills.
RESTAURANT OPERATORS
The location and market of the hotel can often decide if the hotel should operate the F&B space or rent it out. The primary reason for a hotel operator to outsource the space is because a restaurant operator brings its expertise and/or a reputation that will attract people to the hotel and enhance the property’s image, said Larry Cohen, a partner at Citrin Cooperman Advisors, one of the nation’s largest professional services firms.
There can be creative arrangements with the restaurant operator rather than just a space rental. This can include joint ventures and revenue sharing, he added.
“A hotel that is not in a city center or tourist area, such as an airport property or industrial park property, might operate the restaurant itself as a marquee restaurant. However, this probably would not increase revenue and it may be difficult to attract a marquee operator,” Cohen said.
A thorough understanding of the market is also required to decide whether to collaborate with a restaurant operator. According to Adam Crocini, SVP and global head, food and beverage brands, Hilton, a market study will inform both parties of the existing landscape of F&B operations in the area, which will determine the right fit for the property.
“Based on those findings, the owner and operator might create a bespoke concept for the property, or partner with a third-party with a trusted brand or concept,” he said. “In those situations, the goal is to fill a void or enhance the culinary scene in the city or region in a way that will have an outstanding impact. Sometimes, based on costs, revenue expectations or even owner preferences, it makes more sense to operate the restaurant or bar directly.”
A major challenge in partnering with a restaurant operator is the risk of having differing goals and strategies. While some decisions may not look great for the restaurant’s bottom line at that moment, it could have a positive impact on guest satisfaction and the overall hotel performance.
NEIGHBORHOOD SERVICE
Since hotel restaurants have the potential to become a defining aspect of the hotel, servicing the neighborhood and attracting local guests becomes equally important.
Hotel occupancy will fluctuate from month-to-month, and without support for F&B outlets from the local community, an operator will be at the mercy of those very variabilities. More importantly, the local audience has the ability to build and sustain the reputation of the restaurant, said Crocini.
Therefore, it is important for a hotel restaurant to develop an independent spirit to maintain a dedicated customer base.
“A hotel restaurant is a restaurant which happens to be within a hotel. What makes a hotel restaurant successful is its independent spirit, not relying on the hotel for its success and ensuring that it reflects the local community,” said Bashar Wali, founder and CEO of Practice Hospitality, a hotel management company based in Dallas.
A hotel restaurant should enjoy equal popularity among locals and tourists, Wali added.
KEY INGREDIENTS
To guarantee a hotel restaurant’s success, it is crucial to get the menu and cuisine right, said siblings Joe and Catherine Bartolomei, who together own Farmhouse Inn, in Sonoma County, Calif. “If you don’t have great food, then you shouldn’t be in the restaurant industry,” they said. “Ensuring the team understands the vision and the concept of the restaurant is really important and the entire team—hotel and restaurant— need to be aligned with that vision, because, together, they make the magic happen.”
According to Practice Hospitality’s Wali, it is advisable for restaurants to offer a generic cuisine as people’s tastes can be diverse. In the U.S., it’s hard to offer ethnic cuisines in restaurants. A generic menu makes most people happy, he said.
“For instance, if there’s a sushi restaurant in the hotel I’m staying, and I don’t like sushi, I don’t have any other option,” he said.
Overall, in the U.S., Americana and Italian cuisines work well, Wali said. While Middle Eastern is gradually becoming a common option, Japanese and Chinese cuisines are difficult to implement, he added.
The restaurant’s design and aesthetics also play an important role in its success. For Hilton, a successful hotel restaurant will have a strong narrative interwoven throughout every aspect of the space, experience and service program. Design is the medium through which Hilton delivers this narrative to its guests.
“It is critical to tell your story in all the touchpoints, from brand design and collateral to staff uniforms and serving ware,” Crocini said. “The food and beverage menus are the plot of your story. Music and lighting are both integral elements that contribute to the restaurant setting and can make or break a dining experience. Finally, there are the interactions and moments designed to leave a lasting impression.”
At the end of the day, the right team, especially in the kitchen, and communication are the biggest parts of operating a successful restaurant.
“A team that gels and understands the shared vision for what the restaurant is attempting to deliver is invaluable. We have all been to hotel restaurants that feel like an afterthought. However, if you can get the right team in place, you can really make magic happen,” the Bartolomeis said.