Food and Beverage in Hotels: a Recipie for Success?
FOOD AND BEVERAGE IN HOTELS: A RECIPE FOR SUCCESS?
It is a very well established fact that independent, freestanding Food and Beverage outlets are more successful than their hotel equivalents. There has always been a lot of scrutiny into the monetary role that Food and beverage operations play within hotels and if they are a venture that will compromise the total profitability of the establishment. Hotels, right until the 1950’s predominantly generated its revenue from room sales. This all changed when the wars ended bringing economic stability through international commerce. Food and Beverage outlets, especially hotel restaurants were very well received and often celebrated for the unique gastronomic experiences they offered. These hotel departments propagated an abundance of revenue for their establishments and as the industry flourished so did the competition. Since the late 1980’s there has been a sudden boom in independently owned restaurants and other Food and Beverage outlets. This new addition not only revolutionized the Hotel Industry but also has made it into the commercial juggernaut that it is today. Freestanding Food and Beverage operations offer an almost infinite array of cuisines and other services compared to the generic Hotel Restaurant and bar. With such varied and unique choices on offer it’s not hard to deduct why the consumers favor independent outlets to their Hotel counterparts.
According to political economist Dr. Elliott R Morss (June 2009), There are in estimate of over 8.7 million independently owned restaurants worldwide. These freestanding businesses generate more than US$550 billion globally and that’s not taking into account Alcohol, which is a jaw dropping estimate of US$1,163 billion. With a handicap of such numbers the Food and Beverage outlets within the Lodging establishments unfortunately perform very poorly. Hotels have to maintain Food and beverage Operations as providing these amenities helps them maintain a
It is a very well established fact that independent, freestanding Food and Beverage outlets are more successful than their hotel equivalents. There has always been a lot of scrutiny into the monetary role that Food and beverage operations play within hotels and if they are a venture that will compromise the total profitability of the establishment. Hotels, right until the 1950’s predominantly generated its revenue from room sales. This all changed when the wars ended bringing economic stability through international commerce. Food and Beverage outlets, especially hotel restaurants were very well received and often celebrated for the unique gastronomic experiences they offered. These hotel departments propagated an abundance of revenue for their establishments and as the industry flourished so did the competition. Since the late 1980’s there has been a sudden boom in independently owned restaurants and other Food and Beverage outlets. This new addition not only revolutionized the Hotel Industry but also has made it into the commercial juggernaut that it is today. Freestanding Food and Beverage operations offer an almost infinite array of cuisines and other services compared to the generic Hotel Restaurant and bar. With such varied and unique choices on offer it’s not hard to deduct why the consumers favor independent outlets to their Hotel counterparts.
According to political economist Dr. Elliott R Morss (June 2009), There are in estimate of over 8.7 million independently owned restaurants worldwide. These freestanding businesses generate more than US$550 billion globally and that’s not taking into account Alcohol, which is a jaw dropping estimate of US$1,163 billion. With a handicap of such numbers the Food and Beverage outlets within the Lodging establishments unfortunately perform very poorly. Hotels have to maintain Food and beverage Operations as providing these amenities helps them maintain a
References: Morss, R.E. (2009), “The Economics of the Global Entertainment Industry”, viewed 3 March 2013,<http://www.morssglobalfinance.com/the-economics-of-the-global-entertainment-industry/> O’Fallon, R .M. & Rutherford, D .G. (2011), “Hotel Management and Operations”, John Wiley & Sons Inc., New Jersey, Fifth Edition, pp. 246-247 Kapoor, T., (2006), “Focus on Profits: Impossible Dream or Achievable Reality?” Kapoor and Kapoor Inc., California, viewed 3 March 2013, < http://www.kapoorandkapoor.com/articles/pdf/essay_focus_profits.pdf> Haynie, M.SR.,(2010), “Hotel Food and Beverage: A profitable venture?”, Parkway Hospitality Management, Maryland, pp. 1