Hotels with attached restaurants aren't usually interested in allocating much, if any, of their marketing and promotional budget to the food and beverage side of things. And understandably so, considering the profit margin is much higher on rooms than it is on food and beverage. Hotel revenue averages 65 percent while revenue from the restaurant operation comprises an average of 25 percent. Because of this, many corporate hotels prefer to outsource the food and beverage component of their operations to a third-party manager. As the average profit margin for limited-service restaurants is only 6 percent, it is important to find ways to maximize earnings. Here are two ways to boost the bottom line.
Know Your Hotel Guests
What type of people are staying at your hotel? Are they mostly business clients, family tourists, or a combination of the two? Having a clear picture of the kind of people who are checking in, when they're there, and what their purpose is for being there can pave the road for determining everything from the restaurant décor to the menu. Upscale businessmen will be more likely to meet with clients in the hotel restaurant if the food and beverages are also upscale. Consider offering several top-shelf drinks, like Scotch. Create a menu that reflects the typical man's food preferences, like big steaks. If you attract more families, offer plenty of kid-friendly food on the menu that is also healthy. You could also provide picnic baskets that allow them to head off exploring for the day to avoid stopping at a fast-food joint.
Don't Forget The Locals
When most people think about going out with a few friends after work or for dinner, they typically don't think of a hotel restaurant. Change that. What are the demographics of the city you are in? What other businesses are nearby? If you know that most employees at the huge insurance company down the road have one-hour lunches and end their work day at 5 o'clock, you now know what time your happy hour should start. You could also probably safely surmise that quick, easy, and healthy lunch options should be available weekdays between 11 and one o'clock. You may even want to consider hiring a part-time retiree to deliver catered lunches to the employees. Don't be afraid to directly market to the businesses around you. Many cities also have professional sports franchises. If the NFL is big in your area, there is no reason why you can't have a full bar every Sunday afternoon during football season, offering game day food and drink specials. Determine who your customer base is outside of hotel clientele and cater to them. They will be your bread and butter during your off-periods. Contact a company like D&G Hospitality to learn more.Share