F&B 2.0: The Evolution

F&B outlets are contributing a lion’s share to a hotel’s revenue pie through a series of calibrated strategies that span eclectic all-day dining spaces, conceptual restaurants and bespoke experiences.

- Deepali Nandwani

Food & Beverage (F&B) statistics from luxury hotels across India have a rather crucial story to tell. A story of change and transformation, led by savvy hoteliers who have warmed up to the idea that F&B has emerged as a viable profit center across hotel segments.

In most hotels, well-planned and experimental F&B operations earn revenues that equal earnings from room rates. A recent HVS-FHRAI report reveals that revenue from F&B—which includes banquets and restaurants—rose to 42.6% in recent years, against 36.6% 10 years ago, while room revenues declined to 50.9% from 57.2% for the same period. Much of this growth has come from banqueting and events, powered by MICE and extravagant weddings. Equally important contributors to F&B-driven revenues are conceptually strong restaurants and well thought out all day dining spaces and coffee shops that have undergone a transformation in offerings and design, in keeping with the emergence of experiential dining as a major force.

Is it any wonder, then, that behemoth hospitality chains such as IHCL, Marriott International, The Ober oi Group, The Leela Group, Accor, Hyatt and Hilton are focusing on F&B operations to boost revenues and drive profits. The leviathan IHCL group has experienced a substantial growth in revenues from F&B across all segments. Puneet Chhatwal, MD & CEO, has said, “IHCL banks on its innovative F&B offerings to contribute a large part of its revenues, which stands at 40% of our revenue globally and 47% in India. The India earnings from F&B amounts to INR 4500 crores.”