Makan Kitchen at DoubleTree by Hilton Kuala Lumpur
F&B operations are increasingly bolstering the profit margins of hotels with Hilton Worldwide properties in the Asia-Pacific owing over 40 per cent of revenues to its food and beverage businesses.
According to Markus Schueller, vice president of F&B operations, Asia-Pacific, the importance of F&B for hoteliers cannot be understated.
Apart from certain markets such as India, revenue derived from F&B had traditionally been incomparable with revenue derived from rooms. Between 2010 and 2014, the average revenue derived from F&B operations at full-service properties accounted for 25.3 per cent of total hotel revenue, according to research by CBRE.
It seems that for hotel operators such as Hilton, the food and beverage component of the business is increasingly vital.
“Across the Asia-Pacific, over 40 per cent of our total revenue comes from F&B. It is an integral part of our business,” said Schueller, adding that as a company, F&B also helps with aspects such as building rapport with the local community through weddings and banqueting.
“We have some hotels having over 50 per cent of revenue coming from F&B now. It really depends on the scale of the hotel and the F&B operation,” he explained.
When asked if a majority of customers are hotel guests or walk-ins, Schueller said most come from those who live and work in the city. The restaurants and bars have to appeal to them in order to be commercially viable, because while room occupancy is seasonal, those that dwell in the city are always there and a constant source of revenue.
“(However), you can never alienate your hotel guests. It’s a very fine line you have to walk to be different enough in order to attract external customers but cater to in-house guests as well,” he added.
The challenge for Schueller, who manages the entire F&B operation across all 13 Hilton brands in the Asia-Pacific, is to know what to do today what is needed in a few years’ time in order to future proof the concept.
“You need to know what will remain relevant five years, ten years from now,” he said.
He further revealed that while Hilton tends to create and operate their own F&B concepts in the Asia-Pacific, there are instances of commercial success found with third-party operators as well.
Schueller is currently working with a team in Shanghai on a brand new concept that will come out “fairly soon”. While not able to reveal details, he pointed to how Makan Kitchen – a hawker-style dining establishment with live show kitchens – at DoubleTree by Hilton Kuala Lumpur has found favour with locals.
“Last time, hotels built restaurants because there are none nearby. But that has obviously changed. Now, the first reason why people come is because of great concept,” he opined.
