Boost Hotel F&B Revenue with Workflow Management
By Kamini Patel
Last updated March 22, 2022
4 min read
Today’s hotel guests are not only looking for a comfortable place to stay, but memorable dining experiences as well. Over the past couple of years, however, new trends have significantly reshaped the hotel industry’s F&B operations and workforce. Hoteliers must find new ways to satisfy guest demand and increase profit margins. The right technology helps you better manage F&B workflow and boost your bottom line.
Today’s hotel guests are not only looking for a comfortable place to stay, but memorable dining experiences as well. With consumer’s pent-up demand for restaurant service remaining high, food-and-beverage (F&B) service can be a major contributor to your hotel’s positioning in the market, helping you drive unique guest experiences and differentiating your business from competitors.
Yet the past couple of years have reshaped the hotel industry’s F&B operations in ways that have significantly impacted profit margins. According to the 2022 State of the Restaurant Industry Report, food, labor and occupancy costs are expected to remain elevated. And 40 percent of restaurant operators are not yet open to full capacity for on-premises dining, with 7 in 10 reporting that it’s due to staffing shortages. On top of this, there’s increased demand for curbside pick-up, take-out and delivery services.
A key way of addressing these challenges lies in choosing technology solutions that optimize management of F&B workflow. The right solutions can mean the difference between becoming more lucrative or experiencing a quick demise. With an advanced hotel application, you can improve key aspects of your F&B workflow as well as your bottom line.
Create Efficiencies with Mobile Reservations
Making restaurant reservations via phone calls is quickly becoming a thing of the past. A hotel app that offers guests the ability to book a table online offers a number of benefits for the guest and your F&B workflow. First, it improves the guest experience by giving them the freedom to plan in advance and make their bookings while on-the-go. Research from the 2021 Customer Engagement Technology Study revealed that 53 percent of your guests expect the ability to make their dining reservations online.
On the operations side, a mobile-first reservation system helps you better manage waitlists and provide speedier seating, eliminating the cost and hassle of pagers by letting you text guests when their table is ready. An automated system eliminates reservation mix-ups and accidental double bookings that can occur due to the stress of front-of-house (FOH) staff dealing with constantly ringing phones. And because an app offers the capability to include additional comments, you can plan ahead to personalize service for those guests needing a high chair or celebrating a special event.
Streamline In-House Dining with Online Ordering
Providing the ability for guests to place F&B orders via your hotel app using their personal mobile devices is another efficient and easy-to-use digital option that benefits workflow. For in-house dining, because you’ll no longer require servers to take each order, you can operate effectively with less staff. In fact, 80 percent of restaurant operators say that labor savings is a top benefit they’ve experienced when implementing online ordering, along with easier order processing and higher average checks.
The entire system is expedited because guests can place orders as soon as their ready. This translates to less wait time, faster table turnover, and thus greater revenue. Online ordering increases accuracy since guests are communicating any meal customization and special requests themselves. And it satisfies the expectations of today’s guests, particularly younger travelers, with 43 percent of Millennials and 55 percent of Gen Z-ers preferring to order food and beverages via an app on their smartphone.
Improve Food Delivery Services with Online Ordering
Mobile ordering also creates efficiencies with room service and food delivery. Since no human is required to take orders, guests are no longer stuck on hold while team members juggle calls during peak hours. And GPS location within an app makes it easy to deliver food or cocktails directly to guests on your property, whether they’re in their room or lounging poolside. The self-service aspect of online ordering simplifies the process and allows for revenue-lifting increases in order volume. On average, restaurant operators see a 43 percent increase in order frequency for takeout and a 29 percent increase for delivery orders.
Another benefit is that apps collect F&B analytics from guest orders. Hotel restaurant operators can use this data to track fulfillment and delivery times, monitor inventory and analyze which dishes are most popular. The data also allows you to develop promotions designed to build off-peak demand, target specific guest segments and create discount strategies. Over half of restaurant operators state that these tailored promotions are much more effective than standard promotions.
Digital Options Improve Menu Management & Marketing
Switching from physical to digital menus gives you the flexibility to include multiple menus within your hotel app, such as separate menus for your in-house restaurant, room service and group events. You can also develop custom menus, reducing time-consuming phone calls with questions about ingredients or gluten-free options, and satisfying the majority of your guests that expect the ability to preview menus and nutritional information online.
Menus can be changed and updated instantly without the need for staff to physically swap them out in the restaurant or waste time replacing them inside in-room compendiums. Unavailable options can be removed in real time, helping you avoid guest disappointment. You can also boost revenue and streamline F&B marketing by promoting specific menu options at optimal times, such as offering a special on warm, comfort foods during cold days, suggesting specific food and drink pairings, and highlighting menu options that give you the highest profit margin.
Enhance Internal Communication with In-App Text & Chat
In hotels, texting or chat for internal communication offers immediacy as well as the ability to track conversations. It speeds up workflow by allowing tasks to be communicated and handled more quickly. And it also expedites the tedious and time-consuming job of employee scheduling. Contacting a large number of staff via email or phone call isn’t practical, especially when it comes to time-sensitive notifications such as shift changes and event updates. Automated text messaging within a hotel app creates an efficient way for hotel restaurant operators to instantly contact staff. It also makes it quick and easy for employees to handle tasks such as searching for substitutes, trading shifts with co-workers or requesting vacation time.
Mobile Payment Simplifies BOH Operations
The standard payment process is time consuming, requiring manual card entry, verification, reconciliation, chargebacks and disputes. Mobile payment through an integrated app allows restaurants to simplify back-of-house (BOH) operations by directly linking dining POS systems to your hotel’s PMS. This lets you easily assign a specific guest room to an F&B order so that the invoice is applied to the guest’s account with just one click. When guests pay directly through your app, it also diminishes mistakes and drastically reduces reconciliation times. Furthermore, you enhance satisfaction and loyalty because you’re meeting guests’ expectations, with 84 percent of all demographic groups preferring restaurants accept digital, contactless payment options.
An integrated hotel application provides an ideal platform for improving overall hotel F&B performance by incorporating self-service reservation booking, mobile menu options, online ordering and payment solutions along with internal chat and texting features. When you implement the right solution, you create a winning synergism that delivers significant efficiencies to your F&B workflow while improving guest satisfaction and profitability at the same time.