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Outsourcing of hotel foodservice operations continues to be a large-scale trend as the lodging industry tries to recover from a three-year slump. Hope is on the horizon for both tourist and business travel, and signs of improvement will be apparent this year, experts say.
PriceWaterhouseCoopers predicted in March that, after three years of contraction, lodging demand would increase 4.5 percent this year. Occupancy was expected to rise 0.9 percentage points to 61.2 percent, and revenue per room was expected to increase 5.3 percent. While growth was expected in midscale properties that don't offer food and beverage, the other two areas of growth were expected to be "upper-upscale" hotels and "upscale" hotels, which do provide extensive foodservice options.
Marcel R. Escoffier, associate professor at Florida International University's School of Hospitality Management in Miami, says: "Outsourcing continues to be the big trend, especially among those [hotels] in San Francisco, New York and here in Miami. Hotels are purchasing the expertise of local restaurateurs or lease out the foodservice operations to noted national chefs."
Las Vegas hotels, including such properties as the Bellagio and the MGM Grand, were among the first to pioneer outsourcing, he says.
"In the very large hotels, as in Las Vegas, it was a management nightmare to run a variety of hotel concepts because you couldn't easily transfer employees among the different restaurants," Escoffier explains.
Now, other hotel groups in other parts of the nation are following the Las Vegas model.
Rick Hopkins, food-and-beverage director at the new Gaylord Texan Resort & Convention Center in Grapevine, Texas, says the 1,638-room property has 1,300 seats for foodservice in the $480 million property. That feeding capacity includes a high-profile restaurant created by a noted culinarian and restaurateur.
"Ama Lur is created by celebrity chef Stephan Pyles," Hopkins says. "It's a tapas setting with a Southwestern flair." The restaurant marks the first time any of the three Gaylord properties has used an outside celebrity chef.
The Gaylord approach at the Texas property, Hopkins says, is to find several executive chefs to run individual restaurants.
The range of check averages is $5 to $10 for sandwich, coffee and ice-cream shops; $7 to $14 at the sports bar concept; $25 to $40 at the Ama Lur tapas bar; and $60 to $70 at the steakhouse.
"We are focused on creating an incredible diversity for guests looking for something different," Hopkins says. "It is all produced in house and made from scratch."
The hotel also is cultivating off-property guests to sample the restaurants at the resort, Hopkins points out.
Foodservice--often considered an amenity rather than a profit-center--always has been a challenge for hotels.
Escoffier says: "The fundamentals for hotel foodservice are that hotels primarily make their profits on room sales. Foodservice is a necessary evil. Co-branding with well-known-name chefs offers a good relationship.
"Transferring the burden of managing this relatively unproductive area is a great way to get out of the dining-room operations," he continues. "They can even make some money on the side because of the draw of the property."
The greatest challenge, Escoffier warns, is for the hotel management to make sure the company or chef operating the foodservice does not overshadow the brand of the hotel, especially a concern in boutique properties.
"The real fear is that the outsource company, Starbucks, for example, could subsume the brand of the hotel. That's the double-edged sword," he says.
Among other trends over the past year, Escoffier says, hotel foodservice operations are offering more low-carbohydrate and other diet-based menus.
"Low-carb items are more expensive to produce," he says. "But clearly, on the high end, especially on the spa end, there has been a trend over the years to low-carb, South Beach diet-type menus. Of course, the problem is that food costs are impacted."
The banquet slice of the business still remains a hotel area of expertise.
"In the last 10 years hotels have started to have to learn some of the techniques of chain restaurants," Escoffier says. "It's a good trend, especially in research and development. Back in the '60s and '70s, hotels would provide foodservice, and the customer had to take it or leave it. Now hotels are very customer-driven.
"Banqueting is something that restaurants have never really figured out," Escoffier added. "I've never been at a restaurant banquet that provided food nearly as good as a hotel can do. The actual physical activity that goes on is very different in a hotel banquet kitchen. Restaurants can learn banqueting techniques from hotels, and, conversely, hotels can learn menuing techniques from restaurants to make them more modern."
Another area of concern in the year ahead, Escoffier says, is sanitation. Hotels must be vigilant to prevent illness outbreaks, he stresses. Escoffier says a special concern must be the Norwalk virus, which has hit the cruise line industry and easily could become a problem for hotels.
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