UP YOUR F&B GAME

Revenue Management Strategies for F&B operations help optimize pricing, manage inventory effectively, and maximize revenue generation opportunities.

- BINDU GOPAL RAO

While there is no doubt that food and beverage is a key driver of revenues in hospitality, this is an avenue that has a well-thought-out revenue strategy in place that includes several aspects like menu engineering, yield management, and demand forecasting to make sure that the bottom line is boosted. Achieving revenue growth and continuous improvement in hotel F&B requires the implementation of numerous plans and strategies. By carefully strategizing and executing these initiatives, hotels can ensure their F&B operations thrive and achieve year-on-year financial growth.

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Hoteliers have a variety of revenue-boosting strategies as far as F&B operations are concerned. These include aspects like menu engineering, a strategy that involves analysing the profitability and popularity of menu items to determine their placement, pricing, and promotion. By identifying high-margin and popular dishes, restaurants can adjust prices, highlight certain items, and modify recipes to maximize revenue.

"Offering limited-time promotions, special menus, combo deals, happy hours, or seasonal packages can attract customers and boost sales during off-peak hours or slower seasons. These strategies encourage customers to make additional chases, try new items, or visit during less busy times. Training staff to upsell or cross-sell complementary food and beverage items can increase the average transaction value. By suggesting add-ons, upgrades, or pairings, businesses can increase sales while enhancing the overall customer experience," explains Varun Kumar, Director of Food & Beverage, Sheraton Grand, Bengaluru, Brigade Gateway.

Yield management that focuses on optimizing capacity utilization and revenue by adjusting prices based on demand is commonly used in catering, banquets, and events where fixed resources, such as space or time, are limited.