TFG Asset Management’s column which was recently published on Hospitality Net urges hospitality practitioners – hoteliers, and owners to revise their F&B – all-day dining concept and evaluate its lucrative returns. Having viewed the current and anticipated the future trends, we strongly believe that F&B department, particularly the all-day dining can maximise the top-line revenue without having to offer Half-Board and Full-Board packages to all tours.
The main arguments that TFG Asset Management evaluated in this article concerns three key points. Firstly, Hoteliers and owners should view it as an independent, concept substantiated, outlet and revenue generator. According to Deloitte Tohmatsu FAS, among full-service hotels in Japan, 34.3% of revenues are generated by the rooms department, and 60.5% originate from F&B activities.
Second of all, hotels should not be limited to solely addressing the needs of their in-house guests, and any F&B outlet including the all-day dining can be used to target the external patronage. Doing so requires considerable capital and time to be invested into executing a successful F&B concept and design that entices both internal and external guests, taking into account the tastes and habits of the local community. If these are done under proper and professional management, the lucrative returns will be immeasurable.
Thirdly, the all-day dining space is commonly underutilised and only optimised during breakfast, remaining empty for the rest of the day. From an asset manager and owner’s point of view, this is a loss of potential F&B revenue and waste of space. The outlet needs to be concept driven with market research that supports its cuisine and style. It will provide breakfast for in-house guests but more importantly it will be known for the cuisine and concept it trades under for both lunch and dinner.
As hotel asset managers, we have studied the trends and evaluated ways to maximise profitability for every revenue-generating space. It is important to be able to present alternative strategies and advices to our owners. For in-depth article, please click on this link to access our column on Hospitality Net.
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