Unique Dine-In Experiences

The constant innovation in food and beverage outlets beyond a hotel has often raised the one pertinent question – the profitability of food and beverage (F&B) outlets within properties.

- Charmaine Fernz

Industry reports suggest that 2019 was the best year for the hospitality industry and with no comparison to the ongoing post-COVID-19 recovery phase, food and beverage outlets have continued to fill up the cashiers for hotel chains in previous years. Pertaining to F&B outlets, varied factors have been talked about right from innovation to local produces to giving guests a home-away-from-home experience. As Arif Patel, Regional Vice President – Sales & Marketing, Hyatt India explains,“A good hospitality experience is the exceptional food and beverage experiences, which are key enablers. This fact is well-engrained into hotels, who proactively focus on delivering unique gastronomic experiences.”

THE PROFITABILITY

As the adage goes, money makes the world go round, with a similar sentiment, the F&B outlets within hotels are the cash cows. As Sandeep Bhatnagar, General Manager, Ramada Plaza by Wyndham Chennai, India asserts, “It is certainly profitable to have restaurants within properties, which is close to profitability touching 35%. This is just dining in-house with us after removing all kinds of costs involved in running the food outlet at a hotel. Subsequently, the in-house dining outlet also adds value for guests and generates another stream of revenue for the hotel. We have seen growth in our occupancy levels over the past three months between 12-15% and looking ahead, the restaurants will soon be back to their usual profitability levels.

Due to impacts on the hospitality industry caused by COVID-19, it has also become imperative to drive efficiency in all areas of business to reduce costs. The variety of F&B options including common kitchen for the all-day restaurant, and coffee shop with the in-room dining option has driven top-line growth by way of reducing running cost.”