Hotel restaurants and bars provide guests with delicious dining options while contributing significantly to bottom-line profitability. However, in today’s competitive hospitality market, relying solely on the same static approaches to food and beverage (F&B) management could leave money on the table. Hotels must implement creative, adaptable strategies to attract not only in-house guests but also local customers. By doing so, they can maximize the financial returns from these outlets and stay ahead in the competitive landscape.
In this article, we explore ten hotel revenue generating ideas that can help you increase your F&B profits, reach new customers, and optimize your existing hotel dining operations.
Table of Contents
- Market Restaurants as a Local Destination
- Offer Dynamic Pricing and Promotions
- Specialize 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
- Optimize Table Layouts and Reservations
- Continually Gather Guest Feedback
1. Market Restaurants as a Local Destination
To increase hotel revenue from F&B outlets, you need to expand your audience beyond your in-house guests. One way to do this is by marketing your hotel restaurants and bars as local destinations. Position your F&B outlets as must-visit spots in the community by promoting the unique aspects of your offerings. Highlight chef credentials, locally sourced ingredients, signature dishes, and special bar programs. You can also organize events that appeal to local residents, such as food festivals or themed nights, encouraging them to see your restaurant as a vibrant dining destination.
For example, according to a report by Statista, restaurant revenue in the U.S. surpassed $800 billion in 2023, with local patronage driving much of the growth. Targeting the local market can significantly impact your hotel’s bottom line by bringing in additional covers and increasing overall profitability.
2. Offer Dynamic Pricing and Promotions
Dynamic pricing and targeted promotions are powerful hotel revenue generating ideas that can help you boost food and beverage sales. By varying menu prices across peak and off-peak hours, you can capture different segments of diners. For instance, you could offer promotions like happy hours, prix fixe nights, or buy-one-get-one (BOGO) deals during slower periods to attract price-sensitive customers. This ensures you are driving traffic during non-peak hours without affecting demand during prime dining times.
Promotions like these can fill seats during traditionally quiet times, helping you make the most of your space and staff. As an example, hotels in urban areas have successfully increased their F&B profits by offering dynamic pricing during slow afternoons and late evenings, targeting budget-conscious customers who would otherwise dine elsewhere.
3. Specialize in Takeout and Delivery
As more people turn to takeout and delivery, hotels can significantly increase their F&B revenue by offering these services. Develop a user-friendly online ordering system and offer curbside pickup and delivery options to appeal to both locals and hotel guests. Tailor your F&B offerings to travel well by creating convenient family packages, meal kits, and individually packaged items.
According to the National Restaurant Association, off-premise dining (including takeout, delivery, and drive-thru) accounted for nearly 60% of restaurant business in 2023. By adapting to this trend, hotels can capture additional revenue from diners who prefer eating at home or on the go.
4. Host Themed Events and Experiences
Themed events are a great way to attract new customers and drive engagement. Consider hosting wine dinners, craft beer nights, rum tastings, or even celebrity chef pop-ups. Such events create a buzz around your hotel restaurant and provide guests with memorable dining experiences. Additionally, offering cooking classes or interactive dining experiences like “chef’s table” events can further enhance guest engagement.
For example, a study by Eventbrite found that 75% of millennials prefer experiences over physical goods, meaning they’re more likely to spend on unique, memorable dining events. Hosting themed nights can help position your restaurant as an experience-driven destination, boosting revenue in the process.
5. Refresh the Menu Regularly
Regularly updating your menu is essential for keeping diners interested and ensuring profitability. Create seasonal menus that showcase fresh, local ingredients, and promote new items prominently to generate excitement. Analyze sales data to determine which items are underperforming and adjust accordingly. By optimizing your menu layout and pricing, you can maximize profits while offering a refreshed dining experience to your customers.
Menu innovation is particularly important in competitive markets. According to a report from Technomic, 70% of consumers prefer restaurants that offer new or limited-time menu items. This means that regularly refreshing your menu is crucial for attracting repeat business and driving hotel F&B profits.
6. Train Staff to Upsell
Training your staff to upsell high-margin items is one of the simplest yet most effective ways to increase F&B revenue. By educating your team on how to recommend appetizers, premium dishes, alcoholic beverages, and desserts, you can significantly increase the average check size. Even modest upselling, such as suggesting a bottle of wine instead of individual glasses or offering dessert after the main course, can boost profits.
Studies show that upselling can increase sales by 10-30%, making it an essential tool in any revenue-generating strategy. Empower your staff with product knowledge and reward them for successfully upselling to encourage more engagement.
7. Add Retail Items
Retail items like branded merchandise, cookbooks, packaged goods, and even ingredients used in your hotel restaurant can serve as additional revenue streams. Set up displays near the host stand, checkout area, or even online to encourage impulse purchases. For instance, selling your restaurant’s signature sauces, baked goods, or other specialties can provide guests with a take-home experience, extending their connection with your brand beyond their stay.
This strategy has proven successful in many high-end hotels, where guests often look for souvenirs or memorable keepsakes from their visit. Selling retail items not only boosts F&B revenue but also builds brand loyalty.
8. Strategically Cross-Promote Your Outlets
Cross-promotion between your hotel’s F&B outlets and other amenities can help maximize guest spending. For example, you could offer spa credits or fitness classes along with dining packages. Suggesting drinks at the bar before dinner or offering a discount on dessert with a meal can also capture additional spending.
Hotels that effectively cross-promote their services often see higher overall spend per guest. According to a report by McKinsey, successful cross-selling can increase revenue by 20%, making it a crucial tactic for any hotel F&B operation looking to maximize profits.
9. Optimize Table Layouts and Reservations
To maximize revenue, ensure that your restaurant’s seating layout facilitates a natural flow of traffic while maximizing table utilization during peak times. Optimize your reservation system by using customer lifetime value (CLV) data to prioritize seating for high-value customers. For instance, offering prime seating to VIP guests can improve their dining experience and encourage repeat visits.
Hotels that optimize their seating arrangements and reservation strategies often see a noticeable increase in efficiency, leading to higher F&B profits.
10. Continually Gather Guest Feedback
Guest feedback is invaluable when it comes to improving your F&B operations. Solicit feedback through table check-ins, email surveys, and review platforms to gauge customer satisfaction and identify areas for improvement. Addressing issues promptly can help you avoid negative reviews, while positive feedback can be leveraged to attract new customers.
Encouraging happy guests to leave reviews online can improve your restaurant’s visibility, which can drive new traffic to your hotel. In fact, studies show that 93% of consumers are influenced by online reviews, making feedback an essential part of any revenue-generating strategy.
Final Word: Revenue Generating Ideas
The food and beverage sector is a significant contributor to hotel profitability. By implementing these hotel revenue generating ideas, hoteliers can maximize financial returns from their F&B outlets. From targeting local customers to optimizing pricing strategies and offering unique dining experiences, these approaches can help hotels boost revenue while providing excellent service. With the right strategies in place, F&B operations can become a major driver of profitability, ensuring long-term financial success for the hotel.
