Posts Tagged ‘ Concept Development

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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Method to the Madness: Part I, Hotel F&B Concepts

So, “Why is a raven like a writing desk?” What is the right concept for our hotel restaurant? And, do either of these questions have a definitive answer?

Maybe. At GVC we use a 7-part “methodology” to create a concept. It’s not rocket science, right? Perhaps 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.

Stephen R. Covey’s seminal The 7 Habits of Highly Effective People says (habit 2), “Begin with the end in mind”. Well, if I knew exactly what the final concept should look like, I could skip the methodology. But Covey is right – let’s figure out what it has to be like, let’s begin by determining the criteria by which success will be judged. What must the concept achieve to be called successful?  If the concept doesn’t meet the criteria, then it won’t work.

In general, a concept within a hotel should support the hotel’s brand image. For example, a concept for a Holiday Inn hotel could be too upscale, while the reverse holds true for a Ritz Carlton. I recall having to convince a senior hotel executive that he should abandon his plans to make a Waffle House (albeit a successful company and brand) the exclusive restaurant for a Crowne Plaza hotel (another successful brand).

A second criterion concerns the hotel’s functional needs. How must the concept “serve” the hotel? Which meal periods must be offered? Which services (food, beverage, to-go, room delivery?). What are the hours of operation that a successful operation must serve the hotel? And what is the expected profit contribution to the hotel?

Next, what is the restaurant’s role? Is it to be a destination or an amenity? In other words, is its purpose to draw local guests or to service the hotel guest? Most often the answer is a complicated combination of these two perspectives, but the discussion needs to occur early in the process.

A fourth criterion requires a primary Unique Selling Proposition – a feature that differentiates it – and the hotel – from the competition. A final concept will have many special attributes, but it should have a prime USP that defines it, enables us – and our customers – to talk about it. But it’s too soon to say what that should be – that comes with ideation.

Chains will sometimes add that they should be able to duplicate the concept in other hotels. This will spread the development costs and will serve to give the hotel brand a talking point as well. It will further help optimize the company’s resources, and support its development team.

The test of these and other criteria is this: if the concept fails to meet one of the criteria, can it still be judged a success?

Perhaps you can think of additional criteria. I’d love to hear from you. In the meantime, how about the answer to that riddle?

“Have you guessed the riddle yet?” the Hatter said, turning to Alice again.
“No, I give it up,” Alice replied. “What’s the answer?”
“I haven’t the slightest idea,” said the Hatter.
“Nor I,” said the March Hare.
Alice sighed wearily. “I think you might do something better with the time,” she said, “than wasting it in asking riddles that have no answers.”

These are my thoughts, let me know yours.

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