As hotel owners search for new ways to drive revenue and strengthen profitability, food and beverage is increasingly being viewed as more than a guest amenity. According to Renee Lee Wege, trendologist and senior publications manager at Datassential, changing consumer behavior and growing demand for high-quality on-property dining are creating opportunities for hotels to capture more guest spending and elevate overall performance.
Those trends will be the focus of From Amenity to P&L Driver: Repositioning Hotel F&B for Profitability, a session that Wege will moderate at The Hospitality Show on Nov. 3. The panel will examine how operators are redefining F&B's role within the hotel P&L through format selection, service models, pricing strategies and capital investment decisions.
"The hotel industry has long viewed hotel restaurants as amenities," Wege said. "Everyone in the industry is looking to increase their slice of the food and beverage pie, so to speak." She noted that as consumer dining habits evolve, hotels are increasingly competing for a larger share of spending that once flowed primarily to traditional restaurants.
"Lines between segments are being blurred," she said. "Consumers are more open about where they are getting food and beverage, realizing that as hotel restaurants have stepped up their game in recent years, these on-site options can be convenient and have high-quality, craveable food."
Datassential data points to a significant opportunity. According to the company's Travel & Dining Habits report, 41 percent of consumers stayed at a hotel on their last trip, but only 17 percent purchased food from a hotel restaurant or room service. "That showcases a huge opportunity gap for hotels to grab some share of stomach from consumers," Wege said.
Hotels may be particularly well-positioned to capitalize on travelers' desire for local experiences. "Hotel owners have a unique opportunity to offer something special to delight guests when traveling," Wege said. She added that hotel restaurants can introduce guests to regional cuisine and local food culture while delivering the convenience travelers value.
On-Property Dining Options
When it comes to selecting foodservice formats, Wege sees opportunities across multiple concepts. Datassential research found that 69 percent of consumers find an on-site restaurant appealing, while 57 percent are interested in room service. Micromarkets also represent an underutilized option, with only 14 percent of guests having used one during their last stay despite 38 percent saying they find them appealing.
Convenience remains a major factor, but value is increasingly important. More than half of travelers, 55 percent, say hotel food and beverage offerings are too expensive. "Successful operators will understand this tension of value and price while also offering unique experiences or menu items," Wege said. She pointed to hyper-local menu offerings and partnerships with local restaurants as ways to differentiate hotel dining experiences while meeting guest expectations.
Menu innovation also presents opportunities. "Just under 40 percent of consumers say that restaurants without any global influence feel outdated," Wege said, while 58 percent expect to see globally inspired items on restaurant menus. Datassential research also found that nearly half of consumers would rather pay slightly more for a portion size that better fits their appetite than receive excess food.
Balancing Profitability, Value
While many owners focus on restaurant profitability, hotel operators often view F&B through a broader lens. According to Datassential lodging research, accommodation traffic is operators' top objective, ranking ahead of foodservice profitability. "On-site restaurants create a vibe and a feeling which is key in driving overnight guests," Wege said. "That is the focus more so than the incremental revenue of their foodservice operation."
For owners seeking investments with lower capital requirements, Wege highlighted limited-food bar concepts. According to Datassential's 2024 lodging data, 58 percent of operators offering an alcohol-focused bar with limited food reported sales growth. "This could be an easier add to consider as it foregoes a kitchen or trained staff," she said.
Looking ahead, Wege believes hotels have an opportunity to capture more spontaneous dining occasions. More than 40 percent of travelers say they chose where to eat spontaneously on their most recent trip, creating an opening for hotels that offer compelling, convenient options. "Being a solid choice that's also conveniently located and offers a taste of the local dining scene" can help hotels win more of those dining decisions, she said.
In addition to sharing consumer and operator insights, Wege said she looks forward to hearing how hotel leaders are balancing profitability, guest expectations and operational realities.
Those discussions will take center stage during From Amenity to P&L Driver: Repositioning Hotel F&B for Profitability at The Hospitality Show, featuring executives from Atrium Hospitality, Crescent Hotels & Resorts and Loews Hotels & Co.