Hotel restaurants and bars provide guests with delicious dining options while contributing significantly to the hotel’s bottom-line profitability. However, simply relying on traditional approaches won’t maximize the potential revenue from these outlets. In today’s competitive hospitality market, hotels need to implement creative strategies to attract external customers while also catering to in-house guests. By thinking outside the box and leveraging innovative approaches, hotels can generate more revenue from existing food and beverage (F&B) operations, ultimately improving overall profitability.
In this article, we explore ten practical and innovative hotel revenue generating ideas to maximize returns from hotel F&B outlets. These strategies focus on increasing foot traffic, improving guest experience, and boosting sales. Read on for actionable insights on how your hotel can benefit from these ideas.
Table of Contents
- Market Restaurants as a Local Destination
- Offer Dynamic Pricing and Promotions
- Specialise in Takeout and Delivery
- Host Themed Events and Experiences
- Refresh the Menu Regularly
- Train Staff to Upsell
- Add Retail Items
- Strategically Cross-Promote Your Outlets
- Optimise Table Layouts and Reservations
- Continually Gather Guest Feedback
1. Market Restaurants as a Local Destination
To drive revenue beyond your in-house guests, hotels should promote their restaurants and bars as local dining destinations. Many potential customers live near hotels, and attracting them can lead to a significant revenue increase. Hotels should highlight the unique aspects of their F&B offerings, such as:
- Chef credentials
- Use of locally sourced ingredients
- Signature dishes or cocktails
- Special bar programs
By positioning your restaurant as a high-quality dining experience for locals, you can draw in more customers and boost overall revenue.
2. Offer Dynamic Pricing and Promotions
One of the most effective ways to maximize hotel F&B revenue is by implementing dynamic pricing strategies. By varying menu prices during peak and off-peak times, hotels can attract a broader customer base. Promotions like happy hours, prix fixe menus, buy-one-get-one (BOGO) deals, and other creative pricing strategies can increase foot traffic during slower times without affecting regular demand.
For instance, offering discounted drinks or special pricing for large groups during off-peak hours can draw price-sensitive diners. This strategy can help to keep your F&B outlets busy throughout the day, thus driving more consistent revenue.
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3. Specialise in Takeout and Delivery
With the rising trend of off-premise dining, specializing in takeout and delivery services can significantly increase your hotel’s F&B revenue. Many guests prefer the convenience of eating in their rooms or ordering food for delivery, especially with the growing popularity of online food delivery platforms.
By offering easy-to-use online ordering, curbside pickup, and delivery options, your hotel can capture this off-premise trend. Tailor your F&B offerings to include items that travel well, such as family-sized meals or meal packages. This not only provides convenience for guests but also opens the door to a new revenue stream.
4. Host Themed Events and Experiences
Hosting themed events is another fantastic way to generate buzz around your F&B outlets. By creating unique, memorable experiences, hotels can increase foot traffic and generate additional revenue. Consider hosting:
- Wine pairing dinners
- Craft beer tastings
- Cooking classes with a guest chef
- Holiday-themed brunches or dinners
- Cocktail-making workshops
These events can help hotels stand out, particularly if they offer something guests can’t experience elsewhere. Not only do these events bring in more customers, but they also help create a lasting impression, encouraging repeat visits.
5. Refresh the Menu Regularly
Regularly updating the menu can keep your restaurant fresh and appealing to both guests and locals. Seasonal menus that feature local ingredients or highlight new culinary trends tend to attract more interest. Analyzing sales data can also help optimize your menu layout and pricing by showcasing high-margin dishes while removing underperforming items.
In addition to refreshing the menu, promote new dishes prominently to encourage guests to try them. This keeps your offerings exciting and gives repeat customers a reason to return.
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6. Train Staff to Upsell
Your staff can play a key role in driving F&B revenue through upselling. Training staff to recommend high-margin items such as premium alcohol, appetizers, and desserts can significantly boost average checks. For example, suggesting a wine pairing or a side dish can add value to the guest’s experience while increasing revenue.
Empowering staff with product knowledge and teaching them upselling techniques can have a huge impact on sales. Even small increases in individual checks, when aggregated over time, can lead to a significant boost in overall revenue.
7. Add Retail Items
Retail items are an often-overlooked opportunity to generate additional revenue. Many hotels can capitalize on this by selling branded merchandise, cookbooks, or even the ingredients used in signature dishes. Consider offering:
- House-made sauces or condiments
- Branded kitchenware
- Packaged baked goods
- Local artisanal products
These items can be displayed at the host stand, bar, or checkout area, creating impulse buying opportunities for guests. Additionally, offering these items online can extend your reach beyond in-house diners, providing a valuable take-home experience that continues after they leave.
8. Strategically Cross-Promote Your Outlets
Cross-promotion between different hotel outlets is an excellent strategy for increasing guest spending. Suggesting a pre-dinner drink at the bar or offering dessert after dinner can keep guests within the property and spending money. Additionally, bundling F&B services with other hotel amenities can drive more traffic. For instance:
- Offering meal packages with spa services
- Bundling breakfast with a room booking
- Including F&B credits in wellness or fitness packages
Cross-promotion ensures that guests have multiple touchpoints for engaging with your hotel’s services, leading to higher spending per guest.
9. Optimise Table Layouts and Reservations
Maximizing table layout is critical for improving operational efficiency and revenue generation. By arranging tables to facilitate a natural flow, you can increase turnover rates during peak hours and avoid bottlenecks. Additionally, using reservation systems that factor in customer lifetime value can help prioritize VIP or repeat customers, ensuring they get premium seating.
Optimizing layouts and managing reservations more effectively can lead to better service, higher satisfaction, and increased revenue during busy times.
10. Continually Gather Guest Feedback
Customer feedback is invaluable for optimizing your F&B operations. Actively soliciting feedback through email surveys, in-person table visits, or review platforms can help you identify areas for improvement and spotlight what’s working well.
Positive feedback can also be used to encourage online reviews, which can increase your restaurant’s visibility and attract new customers. Acting on guest feedback helps improve customer satisfaction and ultimately leads to increased revenue as guests return for better experiences.
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Final Word: Hotel Revenue-Generating Ideas
Undeniably, the food and beverage sector represents a significant portion of a hotel’s revenue potential. To fully realize this potential, hotels must implement innovative and dynamic strategies tailored to current market trends. From marketing restaurants as local destinations to introducing dynamic pricing models and offering specialized takeout services, there are countless ways to boost F&B profitability.
By adopting these creative revenue-generating ideas, savvy hoteliers can maximize financial returns from their F&B outlets while providing excellent dining experiences. In today’s competitive hospitality industry, relying solely on static approaches will leave money on the table. Instead, hotels should embrace a comprehensive, revenue-focused strategy to ensure their F&B operations contribute meaningfully to overall hotel profitability.