Embarking on a journey often means packing your daily routines into a suitcase. From morning rituals to evening strolls, travelers carry their habits with them wherever they go. And for hotels, this presents a golden opportunity to bolster their revenue through the Food and Beverage (F&B) and Wellness departments.
Among the myriad traveler habits, there's one global constant – coffee consumption. The comforting cup enjoyed in the hotel room, or the specialty brew savored in the hotel's restaurant is a ritual that's connected with the very essence of the traveler's experience.
For hoteliers, managing a hotel restaurant is no easy feat. Hotel operations are complex enough, and keeping the F&B department profitable takes a lot of effort as well. But, here's the catch – by understanding your customer’s habits and a few marketing strategies, you can unlock a treasure trove of potential profit.
In this article, we'll guide you through a multitude of sales strategies that can be adapted to sell anything in your hotel, using coffee as a delicious example. So, whether you're a coffee connoisseur or just someone who knows a good opportunity when they see one, join us as we explore how to get the most from your hotel's F&B department.
Why coffee matters for hotel revenue
Well, the numbers speak volumes! According to Statista, the coffee market is expected to reach a staggering US $88.3 billion in 2023, with a yearly growth rate of 4.61%. In this robust market, investing in the quality and accessibility of coffee in your hotel is a savvy move that can significantly boost your profits.
However, the importance of excellent coffee in the hospitality sector goes beyond mere statistics. A well-brewed cup of coffee can instantly set a positive tone for the dining experience, while a bad brew can leave your customers disappointed and unsatisfied.
Source: Trip Advisor
Not only does great coffee enhance the immediate dining experience, but it also contributes to the establishment of a positive brand image. Customers tend to associate high-quality coffee with a commitment to excellence and attention to detail. This perception can enhance your business's reputation through positive reviews on Trip Advisor or Booking.com and, in turn, attract more customers through your doors.
The evolution of coffee culture cannot be ignored either. Specialty coffee has witnessed a remarkable surge in popularity in recent years, and customers have become more discerning about the types of coffee and brewing methods. In this era of coffee connoisseurs, failing to offer quality coffee can place your business at a disadvantage in terms of customer satisfaction and loyalty.
8 ideas for improving F&B revenue in your hotel
Ready to supercharge your Food and Beverage department and overall hotel earnings? Let's dive into some imaginative strategies and approaches that promise to both delight your guests and strengthen your F&B department's bottom line.
1. Discover the power of upselling and cross-selling
Upselling and cross-selling are powerful techniques to increase sales and revenue. For upselling, offer customers premium options like a larger coffee or various milk alternatives, catering to diverse preferences. Plant-based milk, for instance, taps into the growing demand for vegan and plant-based lifestyles, while adding an extra charge to your coffee offerings.
For cross-selling, suggest they sweeten the deal with cakes, slices, and biscuits. Many customers won't need much persuasion to accompany their coffee with a treat in the form of a biscuit or a slice of brownie.
2. Embrace seasonal offers
Guests just love seasonal menu items like a famous Pumpkin Spiced Latte from Starbucks that’s only available during the fall. Such limited-time offerings create a sense of urgency, driving up demand as customers don't want to miss out.
- ● Holidays like Christmas provide a prime opportunity for seasonal promotions. It’s high time to offer flavored coffee syrups like gingerbread and praline to add a festive twist and charge a premium.
- ● You can also craft a festive food menu for various holidays and events throughout the year, such as Valentine's Day or Halloween.
3. Add a variety of healthy options
Guests are becoming increasingly health-conscious, looking for coffee blends and extras that offer health benefits. To cater to their needs, you can incorporate health-focused additives like supplements, vitamins, minerals, and herbs into your hot drinks.
- ● Adopt trends like the turmeric latte and design espresso blends that cater to health-conscious guests. Such blends may include ingredients such as vegan milk, honey, cinnamon, ginger, turmeric, and other antioxidants.
4. Take some time to refine your menu
Refining your menu is all about finding the sweet spot between variety and simplicity. Here, you can start by focusing on your most popular and profitable items. Having too many choices of coffee and food can overwhelm customers and lead to higher costs.
In the meantime, an uncomplicated menu leads to quicker service, which results in more satisfied customers who are likely to return. By streamlining your menu, you create a smoother dining experience, that brings increased sales and better profitability.
5. Create several bundle deals
Incorporating bundle deals into your F&B offerings is another great way to boost revenue. These deals allow you to package complementary items, making it easier for customers to make a choice. Let’s see what you can do:
- ● Offer a bundled package that includes a cup of coffee paired with a freshly baked pastry. This breakfast combo provides guests with a hassle-free and satisfying start to their day.
- ● At lunchtime, entice diners with a meal deal. Combine a delicious main course with a beverage, like coffee, creating a value-packed offer that encourages guests to indulge.
- ● In the afternoon, sweeten the deal with a hot drink paired with a cake. This combination is hard to resist, making it an easy upsell.
6. Sell retail products and branded merchandise
Why stop at serving coffee within your establishment when you can extend the experience to your customers' homes? Offering retail products allows you to capitalize on your guests' love for coffee and expand your revenue streams. Here are some ideas for enhancing your hotel coffee sales:
- ● Diversify your retail offerings with branded reusable coffee cups, gift vouchers, and seasonal gift hampers.
- ● Sell bags of high-quality coffee beans, marked up to create a profitable retail option. Ensure that they are beautifully displayed with clear labeling and pricing, enticing your customers to take a piece of the local experience with them.
7. Host special events
Special events can add a touch of uniqueness to your hotel, attracting both guests and locals, especially during periods of low occupancy. This way, you can showcase your hotel’s culinary expertise and engage with your community.
- ● Host wine, coffee, and food tastings or pairings that allow guests to explore the nuances of flavor. Consider collaborating with local wineries or coffee shops for a unique touch.
- ● Offer coffee brew classes led by your expert baristas. Guests can learn the art of preparing their favorite drinks while creating lasting memories.
8. Tap into sales trends and guest preferences
To optimize your F&B offerings, you need to take a data-driven approach. Regularly analyze sales data and track key metrics to gain insights into customer preferences and sales trends. A robust Point of Sale (POS) system can make this data more accessible.
Understanding sales trends and customer preferences helps you make informed decisions about your menu, inventory, and profitability. This data-driven approach ensures that your F&B department stays profitable and in tune with guest tastes.
Calculating the ROI of coffee sales
Understanding the Return on Investment (or ROI) for your sales of coffee or any other services is absolutely necessary for assessing the effectiveness of your strategies and their financial impact on overall hotel revenue.
How to find out the ROI percentage
One of the most straightforward methods for measuring the ROI is to compare your revenue before and after implementing new strategies. Calculate the difference and divide it by the initial investment to determine the percentage.
Keep in mind that the initial investment should include not only the cost of equipment and coffee but also expenses related to training, marketing, and staff.
Here is an approximate estimate of costs and ROI you can expect from setting up a coffee corner in your hotel:
☕ Starting with initial investment
Purchase of Coffee Equipment: $10,000 (espresso machines, grinders, brewing equipment, etc.)
☕ Counting monthly operational costs
Cost of Coffee Beans: $1,500
☕ Estimating monthly revenue
Average Monthly Coffee Sales: $15,000
☕ Calculating monthly ROI
Monthly ROI = Monthly Revenue-Monthly Operational CostsInitial Investment 100
☕ Calculating annual ROI
Annual ROI =Monthly ROI 12
Thus, the hotel's coffee service yields a monthly ROI of 44% and a great annual ROI of 528%. In this example, the initial investment and ongoing operational costs are generating a substantial return through coffee sales.
However, you should keep in mind that actual results may vary based on factors such as location or marketing efforts. Reassessing and adjusting your strategy will help maximize the return on your coffee investment.
To grasp the bigger picture, you can engage with your customers through surveys and feedback forms to understand their satisfaction levels with your coffee offerings. Combined with data analytics tools to track sales trends, you will be able to identify which coffee products are performing best and which might need adjustments.
Technology makes your sales smart
When it comes to leveraging your Food and Beverage department's revenue potential, technology is your ultimate ally. It's the key that unlocks business growth without creating operational chaos. To achieve this, you need the right Point of Sale (POS) system purpose-built for the dynamic needs of hotel restaurants.
A robust POS platform offers many benefits, including:
✔️ Boosting operational efficiency
A well-integrated POS system streamlines your F&B operations from restaurant to delivery. It simplifies order management, inventory tracking, and payment processing, freeing up time for your team to focus on delivering top-notch service. With the inventory management feature, you can monitor resources used, speed up restocking procedures, and keep costs and revenue under control.
✔️ Exploring new revenue streams
A modern POS system empowers you to diversify revenue streams. This can encompass retail offerings and catering services easily accessible to your guests with technology. How is that? For instance, with a customizable menu, available in both digital and printed forms, that showcases all items available in the POS system. Guests can use QR codes on these menus to instantly order any meal, ultimately boosting your sales.
✔️ Speeding up service
The speed of service is essential, and hotel tech can streamline it. Think kiosks, handheld devices, and mobile ordering – these tools not only accelerate service but also enhance the overall guest experience. Upon placing an order via a kiosk, the system instantly sends all confirmed orders onto the kitchen monitor for the chefs, expediting new orders efficiently and quickly.
✔️ Optimizing staffing and labor costs
Smart scheduling and labor management tools help you allocate resources efficiently, reducing costs and ensuring the right staff are in the right place at the right time.
✔️ Expanding your offerings
Hotel POS empowers you to expand your menu offerings and cater to specific preferences. Your customers can choose their preferred sauces, ingredients, and even how their steaks are cooked, allowing them to customize their orders in many ways.
✔️ Refining the billing processes
An advanced POS system simplifies all aspects of the billing process. The system’s flexibility enables your staff to effortlessly split bills among multiple guests with just a few taps on the screen. In the HotelFriend POS, splitting a bill is as simple as clicking a button, choosing the number of guests, and allocating items across each guest’s bill. That’s it!
HotelFriend POS – a recipe for success
With HotelFriend POS, implementing upselling, cross-selling, and other strategies becomes a breeze. We give your customers the freedom to personalize their orders with a wide array of options and extras. Whether it's choosing sauces and ingredients, or specifying cooking preferences, our system handles these customizations effortlessly when orders are sent to the kitchen.
Providing a personalized experience is a proven way to enhance your revenue. The seamless integration of technology and hospitality ensures that your F&B department operates with maximum efficiency and profitability.
Why not experience it for yourself? Give our free trial a spin and discover the difference HotelFriend POS can make in boosting your bottom line.
☕ Coffee, as a global constant in the daily routines of travelers, presents a golden opportunity for hotels to enhance their revenue and brand image. The statistics point to a thriving coffee market, but the true value of excellent coffee lies in the positive dining experience it offers and the reputation it builds.
As the hospitality industry continues to evolve, staying ahead of the competition requires a commitment to excellence, an understanding of customer habits, and a willingness to embrace technology. This is the only recipe for unlocking the revenue potential of your F&B department and providing your guests with unforgettable dining experiences.