Hotels are discovering unprecedented expansion opportunities through strategic F&B data analytics. Here, Bastien Blanc, co-founder and board member at TroKadero Hospitality Global, reveals how data-driven insights can transform F&B operations into pivotal revenue drivers.

Given the competitive hospitality landscape, it should come as no surprise that food and beverage (F&B) operations are evolving from basic amenities into crucial sources of growth. Recognition is growing that these offerings can significantly impact revenue, guest satisfaction and brand perception. Significantly, some properties are already generating around 50 percent of their overall revenue through F&B. However, somewhat surprisingly, many hotels still manage F&B operations through instinct or ‘gut-feeling’ rather than data-driven strategies. The good news is that today’s F&B analytics offer unprecedented actionable insights, enabling hoteliers to revolutionize this critical area of the business.

Understanding the data revolution

Previously, F&B data was limited to basic sales reports. Today, however, advanced point-of-sale (POS) systems, mobile ordering platforms and reservation management tools like SevenRooms are generating in-depth insights. Additionally, guest feedback systems are providing granular details on preferences, purchasing habits, peak dining times and menu item popularity. The key for business leaders is to ensure they analyze and leverage this information effectively.

Actionable insights for revenue growth

Traditionally, F&B has been considered a necessary but lower-margin department. Nevertheless, by tapping into new data, hotels can unlock significant revenue potential through strategic growth initiatives. Key areas to target include:

• Optimized menu engineering: gone are the days of static menus. Detailed sales data reveals which dishes drive true profit and which are mere menu fillers. Therefore, by analyzing ingredient costs against selling prices and popularity, hotels can implement strategic menu changes. They can then promote high-margin, high demand items while adjusting or removing underperforming ones.

• Dynamic pricing and promotions: just as room rates fluctuate, F&B pricing can also be dynamic. Consequently, data on peak hours, slow periods and local events can inform pricing adjustments. For instance, hotels can offer happy hour specials during slow afternoons or pre-theater dinner packages to capture specific demographics. Additionally, promotions can be tailored based on guest segments and their past purchasing behavior.

• Targeted marketing and personalization: understanding guest preferences is paramount for sustainable growth. For example, if data shows significant numbers of guests prefer plant-based options, hotels can promote vegetarian dishes more prominently. By offering this level of personalization, businesses can transform generic offerings into tailored experiences.

Elevating the overall guest experience

Beyond direct F&B revenue, data insights can positively impact the entire visitor journey, reinforcing guest loyalty through enhanced experiences. Knock-on benefits include:

• Enhanced guest satisfaction: when hotels understand what guests want, they can deliver effectively. Therefore, analyzing feedback alongside sales data helps identify improvement areas, from service speed to menu item quality. Businesses can then utilize this data to elevate the broader guest experience, in turn, leading to more positive online reviews and stronger brand loyalty.

• Optimized operations: data on order volume by time, popular dishes and ingredient usage allows for more efficient inventory management and staff scheduling. We know that lower levels of food waste and optimized labor costs directly contribute to F&B profitability. Additionally, understanding the guest flow can help to inform design and service delivery improvements.

• Increased ancillary spend: when F&B offerings are compelling and well-aligned with guest preferences, they encourage more in-property spending. This could include dining at hotel restaurants, utilizing room service or having a drink at the in-house bar, for example, all of which contribute to a hotel’s total revenue per available room (TRevPAR).

Harnessing F&B data for future success

Inevitably, the ability of data-driven strategies to produce measurable results means they are rapidly replacing intuitive F&B management. Hotels that embrace the power of smart analytics can expect to see their F&B revenues increase, supported by an expanding customer base. However, success in the form of sustainable expansion will be determined by the ability of industry players to leverage data to create exceptional guest experiences that generate lasting loyalty.