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Hotel F&B Insight report reveals need for restaurant modernisation and room service reinvention

31 January 2020 by
Hotel F&B Insight report - room service cheaper

Hotels need to modernise in-house restaurant design and reinvent room service to maximise revenue, according to a new insight report.

The Caterer's Hotel F&B report, launched this week, utilises specially commissioned research from leading industry firm CGA and is available to Caterer Gold Club subscribers here.

The report highlights the impact of digital services, which have encroached into the hotel F&B market and seen guests often choosing to use external food delivery platforms such as Just Eat and Deliveroo, which can be cheaper and more attractive than in-house room service.

Hotels are failing to utilise in-house restaurants to combat this, sometimes treating them as a necessary expense rather than an opportunity to drive profits. Research showed that in a bid to reduce operating costs, some operators have looked to a slimmed-down F&B service, limiting opportunities to profit from guests.

Industry consultant Melvin Gold said: "It has been common for a while to find many hotels not offering lunch in their restaurant. It is increasingly likely that on less busy nights restaurants may close with a more limited menu on offer in the hotel bar.

"Additionally, many hotels retain a formal regimented table layout that can be uninviting to guests who are familiar with modern trends in local eateries. If hotels want to compete with the high street they have to create the look and feel of the type of restaurants there."

The report also highlights in-room dining as a potentially bountiful revenue stream that is being under utilised, with 44% of hotel guests saying the expense is the biggest barrier ordering room service.

Slow service, a lack of menu options, cold food and dirty plates all ranked similarly in a survey of room service annoyances.

Consultant Peter Backman said: "The problem with hotels is that it is expensive to provide in-room service, so they try to add value with more fancy additions - and that makes it more expensive. Hence, the guest is unhappy."

Solutions to these challenges will be among those addressed at The Caterer's Hotel F&B Summit on Wednesday 9 September 2020 at the Soho Hotel in London.

The half-day event will explore the latest trends in hotel F&B concepts and design and how to ensure a hotel F&B operation is a profit centre rather than a cost centre.

Tickets are £175 + VAT and can be purchased here.

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