Sprucing Up F&B Sales

Hotels find effectively merchandising food and spirits and getting staff involved in the story behind the product directly affects the bottom line.

By Mary Boltz Chapman, Contributing Editor -- Hotels, 7/1/2009

When The Peninsula Chicago began offering single-malt scotch flights, its public relations staff spread the word through local newspapers and magazines. Its finding, however, was that the best marketing is the buzz that spreads through the bar when someone orders it: Three 1-ounce pours in etched glasses are stacked on a handcrafted wooden ladder.

"We knew it would take off," says Director of Food & Beverage Pradeep Raman. "We started getting regular guests ordering it, which attracts onlookers."

The Peninsula created the flights and added them in October to try something unique for its guests, whom Raman describes as "urban yuppies. A mixture of affluent younger generation who come in with friends and businessmen entertaining clients." Nine flights, ranging from US$25 to US$95, were assembled to take customers "on a journey." Each flight holds three scotches ranging in complexity. They are grouped by region, body or tasting notes.

Raman says the flights are selling well, at a pace of about five to 10 on weekdays and 20 or more on weekend days. He credits in part the merchandising that happens when a guest sees someone else drinking it. The server or bar manager will walk customers through the experience, discussing each single malt and its characteristics. Guests also receive a card listing details on each scotch.

The handcrafted, etched glassware bearing the hotel's name is prominently on display behind the bar, and bartenders are happy to tell inquiring guests about the flights.

Home-Grown Merchandising

At Doubletree Hotel Chicago Magnificent Mile, bar staff also serve as marketers, telling the story of the infused vodka flights featuring flavors grown on site.

Executive Chef Scott Walton grows vegetables and herbs in a deck garden for the hotel's Markethouse restaurant. Taking a cue from the restaurant's seasonal slant, Walton began infusing vodkas with fruits from local purveyors for the hotel bar, which was completed in December. A recent US$15 flight included raspberry, vanilla and pomegranate.

This summer, Walton will include infusions from the fruits of his own labor, such as lemon balm, chocolate mint and tomatoes. He also is planning a bacon-infused vodka with pork from a local farmer. Flights combine flavors from savory to sweet.

Walton says depending on flavor, the bar goes through a decanter of infused vodka every seven days. As at The Peninsula, glassware set out on the bar and customer buzz act as merchandising.

Beyond The Buffet

The Courtyard by Marriott brand might not attract the same customers as those upscale and luxury hotels, but it does put experience first. Since the brand overhauled its lobby—and with it the in-house restaurant—food and beverage sales are up 22% in redesigned hotels.

The changes in the lobby, made based on customer research and observations, include visual cues to "atmospheres" for relaxing, working and dining, says Courtyard Vice President and Global Brand Manager Brian King. He says the overhaul gives guests more control of their experience.

Taking cues from fast-casual restaurant concepts like Panera, the restaurant allows customers to grab food from the counter for takeout; order and pay, then sit and be served; or take advantage of traditional full service. About half of sales are from counter service. The branded foodservice concept is called The Bistro. Eat. Drink. Connect. "Connect speaks to the social aspect and the business aspect," King says, referring to guests toting laptops.

King says popular breakfasts include a US$3.75 oatmeal with fruit and nuts, and sandwiches such as the bacon, egg and cheddar on a croissant with bistro potatoes or fresh fruit for US$6.50. At lunch and dinner, customers go for sandwiches, such as the US$8.50 Caesar Wrap with coleslaw and chips, and pizzas such as the US$7.25 Tomato Mozzarella. The menu also includes soups, salads, entrées and snacks, and beverages range from Starbucks coffee to a full bar.

In hotels that have The Bistro, sales per occupied room are up 18%. "We have an offering that gives guests control and choice," King says.

Since the first redesign in November 2007, 42 Bistros are up and running, and King expects to have 100 done by the end of the year. Courtyard has 833 properties worldwide and plans to incorporate The Bistro wherever possible in its hotels in North America.