How to Increase Food & Beverage Revenue in a Hotel
When it comes to the hospitality industry, revenue management is extremely important. Essentially, having a good grasp on revenue at your hotel enables you to keep running costs to a minimum and increase proﬁts. Monitoring data, understanding your customer and gaining control of all aspects of your business can improve your revenue manage and result in huge beneﬁts. Read on to find out how to increase food and beverage revenue at your hotel.
Within the hotel industry, revenue is often focused on room sales, whilst F&B outlets can be overlooked. However, food & beverage can have a vital impact on a hotel’s success; it provides a separate department which can generate further revenue. This article provides a list of valuable tips on how to increase food & beverage revenue in a hotel, to ensure you are extracting the maximum proﬁtability from your business.
What is Food & Beverage Revenue?
Food & beverage revenue is simply, the income gained from sales of all food & beverage items within your hotel. This includes the restaurant, bar, room service and takeaway. The F&B revenue is dependent on: service capacity, price management, table turnover and menu.
Data monitoring is one of the most signiﬁcant areas which can improve food and beverage revenue. To understand your F&B department and customer preferences you ﬁrst need to understand the data. Using a POS system within your restaurant and bar will allow you to track the most popular dishes, best-selling beverages and when the busiest and quietest times are. This information will then allow you to forecast trends, allocate staﬀ accordingly and manage cost control. Understanding your best and worst sellers will give an insight into your customers habits and as a result you can adapt the menu accordingly.
It is particularly important to install technologies such as a POS system to accurately monitor F&B data. 1834 Hotels will export LIVE data from your PMS and Point of sale to formulate an accurate position and implement changes to ensure we meet your KPIs. We provide analysis and management of goods purchased and goods sold. For more information, click here.
Customer service is key to a successful F&B department. Front of house staﬀ are the connection to the customers, and they will inevitably determine the success of the restaurant. Therefore, it is crucial to have a passionate and experienced F&B team who will provide friendly and eﬃcient service. The staﬀ need to understand the importance of upselling by oﬀering sides, large measures, desserts etc. Additionally, they will need to know how best to utilise the ﬂoor-plan and ensure every table generates the best possible revenue. For example, seating a table for two on a large table for six will lose revenue of up to four customers.
When considering how to increase food and beverage revenue in a hotel, menu design is another key point. The menu design and layout can have huge beneﬁts for F&B revenue. Through the science and psychology of menu design you can strategically encourage people to order the meals which are most proﬁtable. It is ﬁrstly important to cost the menu accordingly, in terms of how much it costs to make, the labour involved and your proﬁt margins. It is useful to categorise items based on levels of proﬁt and popularity to know what dishes you want to sell the most. Once these steps are complete you can design your menu accordingly. Below are a few simple steps to menu design:
- Don’t overwhelm with choices. Limit food options in each
- Use a panel design. Put items you most want to sell at the top left or top right side of the menu.
- Be descriptive. Provide a short sentence to help sell the
- Highlight a proﬁtable item. Choose a popular item which will return a good proﬁt. Write in small text a phrase such as ‘recommended by chef’ or ‘chef’s speciality’.
Food & Beverage revenue will largely depend on how many customers visit the restaurant. The more customers you have the more earning potential there is. It is important to get the most out of the space you have. Try out diﬀerent ﬂoorplan layouts to make sure you are maximising the space. Since Covid-19, many hospitality venues reduced tables and seats. However, as rules ease these can be brought back in to maximise covers.
Another top tip is to set time limits on tables. This is especially eﬀective during busy periods. By giving customers a two-hour sitting a table can be turned around and re-used, resulting in more potential for income. Additionally, when customers are waiting for a table, perhaps suggest they wait in a dedicated lounge or bar area which will help increase beverage sales.
Room service is often an area which can be neglected in terms of F&B. However, when determining how to increase food and beverage revenue in a hotel, it is an extra way to boost income. It is necessary to ascertain what products sell the best in room service and adapt the menu accordingly. Your room service menu does not have to be exactly the same as the main restaurant. Adapt the menu to suit the environment; for example, a ‘breakfast in bed’ or ‘evening grazing platter’ option might be appealing for those having a quiet night in or lazy morning. Providing mini bars with a select few drink options oﬀers another simple way to increase revenue within the hotel room itself.
Oﬀering takeaway from your restaurant makes for another way of dining and therefore revenue generation. Even when your restaurant is full, sales can still be made by takeaway orders. Takeaway can bring in custom from residents in the area who would like an alternative to eating out but is also appealing for dine in customers who might refuse a dessert due to being too full. Wait staﬀ can oﬀer desserts to take home for later, so the customer doesn’t miss out and a sale is still made. When introducing a takeaway option in your restaurant, it is a good idea to use environmentally friendly packaging and recyclable materials. This will help to keep your F&B sustainable, reduce waste and ensure that customers maintain a positive perspective of your business.
When it comes to your menu, it is important to have one with enticing options which encourage people to actually walk through the door. Keeping up with current food trends through social media is a great way to ensure your menu stays up to date and exciting. Similarly, by accommodating allergy and dietary requirements such as vegan and gluten-free, you will open your restaurant to a wider range of customers. It is a good idea to have a variety of options, whilst also making sure not to overwhelm customers with too much choice. Data monitoring, as we mentioned earlier, is a great way to narrow down what works and doesn’t work on your menu.
As we touched upon previously, when looking at increasing food & beverage revenue in a hotel, an important aspect involves thinking about how to get customers through the door. Special oﬀers are an eﬀective way to achieve just this. Incentives such as happy hours, discounts, two for one cocktail, and set course oﬀers are just some ways to attract customers.
It is essential to understand when the best times are to implement these oﬀers. For example, establish when your quieter times are throughout the day and use a happy hour deal to draw in customers. This will increase food & beverage revenue by generating custom during otherwise quiet periods. Another tip is to issue a local’s discount or deal to encourage residents within the area to come in. If your hotel is seasonal this can be a great way to increase revenue during quieter months, as locals will continue to utilise the restaurant and bar.
How can 1834 Hotels help increase food & beverage revenue?
1834 Hotels is an experienced food & beverage operator, currently managing food and beverage sales across our entire group. We specialise in activating sales, costing menus and products appropriately and using our business intelligence tools and reports to ensure cost of goods, wastage and overall satisfaction is maximised.
Click here to speak with 1834 Hotels and ﬁnd out how we can help you get the most from your food and beverage division.