Food and Beverage

What Avenues of Food and Beverage in the Hotel Industry Yield the Highest Revenue?

October 21, 2023
Nathan Baws

Food and beverage outlets for full-service hotels are vital to the guest experience while contributing up to 25% of total revenue. Properties must optimize their outlet mix to maximize financial returns from F&B operations to focus on the most profitable offerings. Specific dining and drinking options generate higher guest spend and margins, making them prime targets for hotels seeking to boost bottom-line revenue.

Types of Food and Beverage Outlets That Double Hotel Sales 

Every hotel owner hunts down ways to increase their sales and profits. The food and beverage industry is one of the major sectors that can double hotel revenue by attracting customers. However, it would be best to have the proper outlets in your hotel to attract customers to dine inside your hotel rather than opting for outdoor restaurants. 

Let's look at some food and beverage avenues you can create in your hotel business to attract guests.

Full-Service Restaurants

Multi-meal restaurants with broad appeal across guests and locals are hotel F&B workhorses. They maximize covers and provide continuous revenue by serving breakfast, lunch, and dinner. Diners often have drinks before meals, boosting beverage sales. Tables turn faster at breakfast and lunch compared to lengthy dinner services.

Bars and Lounges 

Bars generate significant income through higher-margin alcohol sales. They attract restaurant pre-meal and walk-in external guests with small plates, drinks, and an upbeat ambience. Flowing liquor drives tabs. Strategic happy hours also stimulate bar business during slower periods.

Food and Beverage

Room Service

Despite higher labour costs, room service offers unmatched convenience and comfort to guests. Menu prices carry premium markups, yet occupancy demand makes it a consistent revenue source. Allowing external delivery services expands potential diners.

Catering and Banquets

On-property events like weddings, meetings, and social functions represent a major F&B profit centre. Per head, revenue from reception packages and hosted bar services is high. Minimum guarantee revenues provide financial cover.

Market and Retail Outlets

Coffee bars, gift shops, to-go cafes, and quick-bite kiosks in high-traffic hotel areas tempt guests and visitors with impulse purchases and convenience. High-margin grab-and-go items and branded merchandise boost revenues.

Strategies to Maximize Returns

While menu quality and execution remain paramount, hotels can implement additional strategies to extract even more significant revenues from these prime outlets:

- Dynamic pricing that responds to demand signals like seasons, events, holidays, etc.

- Data-driven menu analysis and engineering for profitability  

- Targeted F&B packages and upgrades to drive guest spend  

- Training staff on effective upselling techniques

- Providing multiple outlet choices to capture more on-property spend

- Strong online presence and accessibility for outlets  

- Promotions and happy hours during slow business periods

- Events and experiences to attract local diners 

- Continual menu innovation and data-based optimization


The most successful hotel F&B operations choose outlets strategically, maximize operational execution, and implement innovative ways to generate increased guest spend and margins. This ultimately results in substantially higher revenues and profitability from these essential hotel food and beverage channels.

Get in touch with Emersion Wellness to help you guide and open various food and beverage outlets in your hotel. 

See Also: Hospitality Revenue Solutions: Boosting Your Hotel's Profit

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Emersion Wellness

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7 Leake St Fremantle - 6160 - Perth, Western Australia

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