Food and Beverage Partnerships with Hotels

Food and Beverage operations can strain many hotels–from boutique hotels to international chains. The pandemic brought the economics of this service, for many hotels, to the chopping block. Keep it, or cut it?

Should you downsize, create kiosks or POS quick fixes, or offer budget-friendly mediocre menu options? The post-pandemic hunger for elevated experiences forces your hand to weigh the options.

Hotel and restaurant partnerships are not new, and everyone from Grubhub to Ruth Chris wants to serve you. Here are some reasons you should consider, or re-consider, restaurant partnerships.

Hotel restaurants rarely make large profits from on-site restaurants

During the pandemic, many hotels struggled with food and beverage services. The rise of ghost kitchens (restaurants with no customer-facing space providing delivery-only services) proved to be a good alliance for the hotel industry, and have made many hoteliers re-think their offerings.

Partnering with or leasing space to established operations can reduce significant cost liability, while potentially elevating the food and beverage service for your guests. Hotels can concentrate their energy on more profitable aspects of their operations.

Unique partnerships offer guests meals while keeping food production costs down

Consider ‘Hyatt Centric,’ a Hyatt chain targeting millennials, who launched a “Restaurant to Go” service, a partnership with Grubhub where guests order 20-minute express deliveries to their rooms from curated restaurants. Guests are directed to a customized website at check-in.

Taking food and beverage service out of the internal hotel operations offered a better customer experience, and took a big headache out of a service that many hotels struggle with. Hyatt reports the endeavor was “received enthusiastically” and led to more food orders overall.

Brand Alliances Can Increase Brand Awareness

Joining forces with known brands is a marketing tactic well used in traditional lodging as joint ventures provide an ideal opportunity for some low-cost marketing. 

Many hotels find they can make more money by bringing in outside partners. Also, many third-party providers, with solid reputations that precede them, often become a destination for consumers beyond just hotel guests. This is good marketing by association for many establishments.

What to consider when choosing a brand partner

Make sure they feel like a natural fit. Their brand should align with your establishment’s values and personality.

Your partner should also align with your target audience. Dig into the data on your customer profiles, comments, and reviews. Consider the experiences, products, and services that they value.

Find a collaborator who understands your business objectives and brand identity. Make sure you understand theirs. Be clear on expectations for you both.

Look for an innovative partner, preferably local, who can excite your customers with unique experiences and offer you creative solutions to blend your businesses. 

Renewed Focus on Integrated Restaurant POS

While high-end branding partnerships have generally been the domain of luxury hotels, there are growing opportunities for smaller establishments. 

Smaller hotels should consider the many POS services for convenience and speed.

Creating partnerships with food Kiosk providers, especially those with a local flavor, can prove to be a valuable amenity for guests. From taco trucks to Coffee Bars, Kiosks offer a presentation and delivery style already familiar to the growing millennial market.

 

 

They are often scalable with technology-savvy contactless payment options or time-saving self-service that many guests have come to expect. 

Creative solutions like these can provide customer-pleaseing options for small or boutique hotels.

The Kiosk Group offers customizable kiosk options for hotels. *

 

References:

https://www.hospitalitynet.org/opinion/4113494.html

https://www.forbes.com/sites/claudiaalarcon/2022/07/21/5-new-austin-hotel-restaurants-join-citys-bustling-food-scene/?sh=616db3a57ae8

*https://www.kioskgroup.com/pages/ipad-tablet-kiosks-for-restaurants-hotels

**Correction–in a previous post of this blog we mentioned the partnership of the Archer Hotel Austin with La Corsha Hospitality Group. They are no longer partners.