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The Achilles heel

Food & Beverage margins in hotels are dropping everywhere - What to do?

Restaurant_chef_kitchen_FandB_16-9_1920_c Pylyp Sukhenko, Unsplash

Hotel kitchens are generating less and less turnover. How can one counteract this? / © Pylyp Sukhenko, Unsplash

26.4.2024

It's well known that hotel Food & Beverage operations are by and large low-margin activities. Since the pandemic, the situation has gotten worse, due to the rising cost of labour, in particular. Ultra-luxury remains as a class of its own. How can margins be improved? By a top guest experience or a "dark kitchen"?

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Autor

Macy Marvel

is a former professor of economics and finance at EHL who likes to analyze markets and figures from the global hospitality business. A favourite travel destination: Crete.