Living space with leather chairs and tall windows


Three reasons why a great F&B program is essential for today’s hotels

1. Incremental Revenue

A hotel’s food and beverage program presents a unique opportunity for hoteliers to drive revenue; however, there will be a quick demise if you cut corners or reduce the operation to an afterthought. Food and Beverage programs are highly dynamic operations that can teeter anywhere between lucrativity and lost cause. As such, hotels interested in remaining competitive must be willing to invest accordingly into human capital and program development. Such an investment is critical in driving overall asset value, not only because F&B revenues increase, but also because hoteliers are able to leverage F&B to position a property within its market and drive revenues in the rooms division. Finally, discounting F&B offerings is a great way to increase value perception without compromising ADR.

2. Local Connection

Studies show that there is no correlation between growth in hotel occupancy and growth in F&B revenue per available room (RevPAR). When comparing data from 364 hotels, STR found that, while occupancy increased 2.1%, F&B RevPAR was only up 0.3%. This lack of correlation suggests that in order for a hotel’s F&B operation to be successful, it must put as much effort in capturing locals as it does hotel guests. You do so by being an involved and contributing member of the local community. A study by the United States Department of Agriculture (USDA) shows that 82% of respondents cited freshness as the reason for buying local; 75% cited support for the local economy as a reason; and 58% gave the reason of wanting to know the source of the product. Take advantage of these insights by partnering with local purveyors, participating in community events, and supporting good will efforts in your neighborhood. The next step is to communicate this activity in an on-brand manner across your social channels.

3. Guest Experience

Whether home or away, traveling for business or pleasure, it’s in our nature as people to seek out connection. When guests stay at hotels, an opportunity to reconnect with themselves is highly valued: luxury bedding promises a good night’s sleep and an oversized shower with robust water pressure ensures a great start to the day. But people also yearn for connection with others. This is why a hotel’s public spaces are so vital to the guest experience. These are the spaces where they interact, not only with hotel staff, but with their friends, family, colleagues, and even other guests. What public activity is more centered around connection than dining? F&B programs give hotels the chance to bring people together in a way that feels both special and natural.