Archive for August 1st, 2010

Method to the Madness, Part II, Hotel Eating & Drinking Concepts

Great restaurants and bars are about passion and joy and excitement and culinary wonder. Right? But that’s after they open. Getting there? Another matter.

In March, Part I of this series about developing hotel restaurant and bar concepts discussed determining the criteria that a new concept must meet in order to be successful. At GVC we use a 7-part “methodology” to create a concept. It’s not rocket science, right? Or maybe it’s more difficult than rocket science, since thousands upon thousands of very experienced and bright folks have failed at it, one time or another. An outline of the seven steps methodology can be found at the GVC web site. Here I’ll go into a bit more detail.

The Second Step of this Methodology is Anything but a Tea Party!

While Part I is largely strategic, Part II gets into the “hard work” – it’s certainly no “tea party”. A thorough exploration of the “internal” side of the status quo is required. This includes an examination of the hotel brand, the hotel customer, the facility and its operations. While this blog pertains to a hotel that is already operating, much of what follows would apply to a new-build as well. Mostly the sources for the information would differ.

Let’s begin with the hotel’s brand. Learn what you can about the Brand and Brand image. What types and categories of restaurants and bars fit? Corporate Brand “owners” can help here, as they have usually thought this through. Get an answer to this question and you’ll be headed in the right direction, Brand-wise: “place any existing restaurant or bar in your prototype hotel – what would it be?”

Also essential: know the Brand Standards. And try to learn the demographic and lifestyle habits of the Brand customer. This will be different in some ways at the local level, but it’s a good starting point.

Next, and far more challenging: learn about the hotel guests and customers. Determine the answer to these and other questions:  Who is the guest, and why are they here? Where do they come from? Business, leisure? What type of business? Traveling alone or as part of a group? How did they book? What is their average rate? If part of a group, what is their group’s policy about charging restaurant and bar charges to the room? How did they arrive at the hotel? What is their average length of stay? I like to study a hotel’s segmentation analysis and then extend it to eating and drinking occasions. Hotels are amazing when it comes to tracking rooms. But rooms don’t eat in restaurants or drink in bars. People do.

Yes, Madness does have a Method

Simple? Maybe. If we were done. But what about the meeting and banquet guests who are not also staying at the hotel? I like taking a hard look at this category of customer, because it’s a little easier to nail down, even quantify, the eating and drinking potential. Let’s take meeting guests. Usually these potential customers eat lunch during their visit to the hotel. So, if we can determine how many such guests we have each year, what percentage have a banquet luncheon vs. eating “on their own”, we have a good starting point. While we’re at it, let’s find out how long the average break is. Hotel restaurants often close at lunch. The information provided here will factor into a decision whether or not to do this.

Now let’s look at the hotel facility. Access, parking, signage, visibility, and location within the hotel, for example.

Access alone generates a number of routes of inquiry. Access from the outside: car, bus, taxi, limo and walking. Now let’s go inside. Access to the restaurant and bar areas from the lobby, from the banquet areas, from the elevators, from the stairwells. Visibility, signage and wayfinding indicators are just some of the things to look for. During access what is the flow, especially when busy? What does the customer see as they enter, the “sense of entry”. What is possible? And since we’re assessing the facility, what about the employee flow, from the kitchen? And what about the attributes that aren’t readily apparent: sound system, lighting, Wi-Fi, natural light control and HVAC to name a few.

Finally, operations. What is the restaurant’s and/or bar’s performance? This requires a detailed analysis of revenues and costs. And sales patterns must be divined, which is possible if the POS system is current and is functioning well. Don’t forget a close look at menus and all marketing collateral of the existing concept.

Finally – or maybe first? – talk with people. Executive people. Guest people. Employee people. Owner people. Even competitors. Or nearby restaurants and bars – they’ll almost always offer their impressions of the facility you’re working to improve.

Next time – Part III, a thorough external analysis.

These are my thoughts, let me know yours.

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