Hospitality Leaders Pivot Food and Beverage Strategies to Combat Third-Party Delivery
Industry executives at The Hospitality Show discussed the evolving role of onsite dining, focusing on how hotels can remain competitive against local restaurants and delivery apps. According to reporting from Lodging Magazine, leaders from Wyndham, Ritz-Carlton, and Davidson Hospitality emphasized the need for hotels to function as standalone culinary destinations rather than just secondary amenities.
Context from Industry Pulse
The shift in food and beverage strategy reflects a broader necessity to balance property revenue with the modern traveler's desire for local authenticity. While luxury brands like The Ritz-Carlton Bal Harbour may leverage partnerships with established restaurant groups to boost their culinary profile, select-service brands are finding success by integrating with third-party delivery services like Grubhub. This dual approach acknowledges that hotels can no longer act as gatekeepers to the guest experience. Instead, success is increasingly measured by how effectively a property can guide guests to the best experience, whether that occurs at an onsite bar or through a delivery app at a late-night airport location.
Research from Questex indicates that forty-four percent of travelers bypass hotel food and beverage options to explore local areas. As Lodging Magazine reports, hotel operators are now tasked with positioning their onsite bars and restaurants as authentic destinations that appeal to both overnight guests and neighborhood residents. Executives suggest that moving away from industry labels like outlet in favor of traditional restaurant branding helps establish a more competitive identity.
Maintaining strong ratings on digital review platforms is critical for capture rates. Lodging Magazine notes that guests often rely on online research to choose their meals, making high visibility on sites like Yelp a primary driver of foot traffic. By focusing on quality and reputation, operators can exert more control over whether a guest chooses to stay on property or venture out for a meal.
Third-party delivery apps present another significant challenge, as guests who frequently order room service are also likely to use external delivery platforms. Lodging Magazine highlights that some brands, such as Wyndham, have opted to embrace these services through formal partnerships. This includes providing designated storage areas for delivery orders and offering loyalty points for using specific app partners, acknowledging that convenience often outweighs traditional onsite dining for certain travelers.
The role of complimentary amenities like breakfast and coffee remains a point of contention. As Lodging Magazine explains, over half of hotel guests choose to eat their first meal of the day on property. However, removing standard offerings for cost-cutting reasons can lead to significant guest dissatisfaction. Leaders emphasized that distinguishing between basic expectations and luxury enhancements is vital for maintaining brand loyalty and retention in a competitive landscape.
The Industry Pulse Bottom Line
Hoteliers must treat onsite dining as a standalone business to compete with local markets. Success requires balancing high-quality in-house concepts with the practical integration of third-party delivery services to meet evolving guest expectations for convenience and authenticity.