Hotel Foodservice Trends in the U.S.

Hotel Foodservice Trends in the U.S.

Abstract:
The hotel foodservice industry is in the midst of reinventing itself. Emerging from a recession that drained almost 18% in foodservice revenue in just two years, the hotel industry is experimenting en masse with new menu, design and technology concepts that are reshaping how hotel guests experience hotel food and beverage offerings. When executed well, these concepts are bringing music to hotel operators’ ears, according to Packaged Facts’ Hotel Foodservice Trends in the U.S. (July 2011).

Going forward, Packaged Facts expects hotel foodservice sales to rise approximately 4.8% in 2011 and 2.8% in 2012, driven by higher hotel occupancy rates and related travel expenditures. As guests arrive, they will find that hotels have worked aggressively to meet consumers’ evolving expectations and needs, which is reflected in our analysis of key hotel food and beverage trends such as restaurant and hotel design, daypart strategies, balancing indulgence, health and convenience, and price and value. Sustainability is also a core expectation—which has not been lost on hoteliers rolling out everything from rooftop gardens to farmers’ markets to sustainable menu items.

But technological advancement provides some of the newest and most promising changes. The report assesses hotel industry players providing technology leadership by harnessing technology trends to transform the industry while driving growth; it illustrates how hotels can empower their foodservice offerings by tying them into the powerful Facebook social networking platform, Twitter concierge services, and even creating their own social networking experiences for guests. Hotel Foodservice Trends in the U.S. covers the U.S. hotel foodservice industry, which provides restaurant, bar, café, catering and room service foodservice options to its guests. In addition to detailed trend analysis, the report provides thorough marketing and forecasting metrics, hotel foodservice growth factor analysis, and thorough analysis of leading hotel foodservice operations (including foodservice strategies by company and brand; brand characteristics, and food-driven trend adaption). The report provides the insight hotel foodservice participants need to understand these needs and frame their strategies accordingly.

Table of Contents:

Chapter 1: Executive Summary

Scope and Methodology

Scope

Methodology

Market Size and Forecast

Definitions

Consumer Foodservice Expenditure Trending

Terminology

Table 1-1: Terms and Acronyms

Share of Stomach: U.S. Hotel Foodservice Market Size and Forecast

Insight Capsule

Fast Facts

Hotel Foodservice Growth Factors

Insight Capsule

Hotel Foodservice Health, Design and Menu Trends

Hotel Foodservice Technology Trends

Insight Capsule

Chapter 2: Share of Stomach: U.S. Hotel Foodservice Market Size and Forecast

Overview

Packaged Facts Hotel Foodservice Market Size and Forecast

Graph 2-1: Hotel Foodservice Sales, 2007-2012

Scope of Market Size

Hotels and Casino Hotels

Graph 2-2: Hotel Foodservice Sales, by Hotel Segment, 2007-2012

Graph 2-3: Hotel Foodservice Sales, by Hotel Segment, Annual % Change, 2008-2012

Restaurant Sales at Hotels

Graph 2-4: Sales at Lodging Place Restaurants, 2006-2011

Segmenting Hotel Foodservice Revenue

Snapshot: Hotel Catering

Food and Non-Alcoholic Beverages Garner Two-Thirds Revenue Share

Graph 2-5: Total Hotel Foodservice Sales: Catering, Meals & Alcoholic Drinks, 2010

Catering a Non-Casino Hotel Differentiator

Graph 2-6: Hotel (non-Casino) Foodservice Sales: Catering, Meals & Alcoholic Drinks, 2010

Casino Hotels Break Out the Alcohol

Graph 2-7: Casino Hotel Foodservice Sales: Catering, Meals & Alcoholic Drinks, 2010

Hotel Industry Catering, Meals & Alcoholic Drink Establishment Penetration

Alcoholic Drinks and Catering Tell Different Stories

Graph 2-8: Hotel (non-Casino) Foodservice: Hotel Industry Penetration Metrics

Graph 2-9: Casino Hotel Foodservice: Hotel Industry Penetration Metrics

Away-From-Home Food, Beverage & Lodging Spending Trends

Introduction

Overview

Out-Of-Town Food, Beverage and Lodging Spending

Table 2-1: Out-of-Town Food, Beverage and Lodging Consumer Spending, 2007-09

Double Down on HH Income Out-Of-Town Spending

Table 2-2: Out-of-Town Food, Beverage and Lodging Consumer Spending, by HH Income, 2007-09

Table 2-3: Out-of-Town Food, Beverage and Lodging Consumer Spending, by HH Income, Percent Share, 2007-09

Managers and Professionals Generate Disproportionate Share

Table 2-4: Out-of-Town Food, Beverage and Lodging Consumer Spending, by Occupation, 2009

Food and Lodging in Context: Travel Spending

Table 2-5: U.S. Travel Spending, by Industry Sector, 2008 v. 2009

Hotel Chain Foodservice Sales Snapshot

Top 10 Hotel Chains Generate Almost $7 Billion in Foodservice Revenue

Graph 2-10: Top 10 Hotel Brands, U.S. System-wide Foodservice Revenue, 2007-09

Hotel Foodservice Employment

Chapter 3: Hotel Foodservice Growth Factors

Overview

Macroeconomic Growth Factors Point to Tenuous Economic Recovery

Consumer Gloom

Affluent Confidence Higher But Lagging

Who’s Your Audience?

Higher Income Households Increasingly Important

Air Travel Growth Slowing

Rail Ridership Trends

Business Travel Trends

Leisure Travel Trends

Cruises

Amusement Parks

Gaming

International Travel Continues to Grow

Convention Center Traffic Brings Relief

Table 3-1: Convention Center Traffic Trends, 2009-10

In-depth: 2010-12 Travel Volume Brings Better Days

Domestic Travel

International Travel Does an About Face

Leisure Travel Versus Business Travel

Table 3-2: U.S. Travel Forecast, 2007-2013

In-depth: International Visits

Forecast Through 2015

Table 3-3: International Visitors to the U.S., 2006-2015

South America, Asia, and Oceania to Lead International Visits

Table 3-4: International Visitors to the U.S., by International Region, 2010

In-Depth: Hotel Travel Trends

Industry Upswing

Positive Forecast

Table 3-5: Monthly Hotel Room Occupancy and Rate Outlook, 2011-12

2009-11 Occupancy Trends

Table 3-6: Monthly Hotel Room Occupancy Rates and Revenue, December 2009 to March 2011

Luxury in the Lead, But It Has High Hill to Climb

Table 3-7: Monthly Hotel Room Occupancy Rates, by Industry Segment, April 2011

Checking in With the Hotel Players

Starwood Hotels Worldwide, Inc.

Host Hotels & Resorts, Inc.

Marriott International, Inc.

Red Lion Hotels Corporation

Las Vegas Sands Corporation

DiamondRock Hospitality Company

Sunstone Hotel Investors

Wyndham Worldwide

Chapter 4: Hotel Foodservice Health, Design and Menu Trends

Overview

Consumer Perspective: Hotel Food and Beverage Importance

Health, Wellness and Environmental Responsibility

Trans Fat Crackdown Continues

Menu Labeling?

Fruit on the Breakfast Menu

Whole Grains and Activia, Too

Green and Local is the Expectation

Hyatt Hotels: Green is a Core Expectation Now

60 Varieties of Fruits, Vegetables, and Herbs in an Urban Setting

Farm-to-Table Hotel Dining

Marriott Goes Gardening

Starwood’s Friendly Operations

Andaz Hosts a Farmer’s Market

Stay Green, Even For Meetings and Banquets

Small Plates Or Just a Taste

Restaurant and Hotel Design Trends

The Atmosphere: Hotel Food and Beverage

Not Your Parents' Lobby

Bistro Fast-Casual Concept Takes Center Stage in Lobby Redesign

Music to the Hotelier’s Ears: Revenue Per Available Room Increases

Holiday Inn Creates the Social Hub

Crowne Plaza Entrance Highlights Food and Beverage Offerings

Sheraton Gets Wired with the Link

Chicago Palmer House Hilton Take Upscale Approach

Embassy Suites’ Flying Spoons

Restaurant and Bar Concepts

Wyndham “Refresh”

Sheraton Club Lounges Get a Makeover

Dayparts: Create a Social Dining Experience For Everyone

While You’re Here, Get Breakfast and Coffee

Bye, Bye to the Buffet?

If You Buffet, Do With Style

Le Germain Does Brunch North of the Border

Homewood Suites Brings Guests Low-Carb and Organic Breakfast

Holiday Inn Express Builds on Breakfast

Coffee VIA the Single-Cup Solution

Illy Provides Some Competition

Peet’s Presence

Lunch and Dinner: Keeping Them in the Hotel

Keeping It Light For Lunch

Dinner: All Things To All People

What Goes Down Must Come Up: The Casualization of Fine Dining

Children’s Menus Add Family Appeal

Tart to Heart

Add Healthfulness

Be Even More Local

Beverage Services

Give Me Convenience or Give Me Death

Go, Go, Go Gourmet

Re:fuel Whenever You Want

Snack and In-Room Services

Synergy to Boost In-Room Dining

Online Ordering Does It, Too

Price and Value Trends

Perception Versus Reality

Lower Prices Have Upside Potential

Prix Fixe Menu Formats: Some Things Are Better Left Unsaid

Service Charges

Veil Them

Chapter 5: Hotel Foodservice Technology Trends

Overview

Technology Leadership Snapshots

To Book Rooms, Hilton Harnesses Social Media and Apps

Forbes Travel Guide 3.0 Travel Platform Combines Travel Content With Social Media

Addressing Illegitimate Reviews and Driving Advertising Opportunities

Hotel Evolution Touchscreen Technology Connects Concierge to Mobile Devices

Benefits to Hotels: Customer Service, Instantaneous Ordering, Customization

A Concierge Supplement, Not Replacement

Cost

Outcomes

Hotel Foodservice Social Media and Networking

Benefits to Engaging Social Media Users

Challenges

Social Media and Networking Applications

Facebook

Table 5-1: Facebook, Selected Metrics

Benefits to Hotels and Restaurants

Facebook Places & Facebook Deals

Hotel Foodservice Opportunity

Liking it Forward

Luxury Hotel Application: The Peninsula Chicago on Facebook

Twitter

Table 5-2: Twitter, Selected Metrics

Who Do You Want to Follow?

Starbucks Leads Restaurant Chains Into Twitter Territory

Twitter as Concierge?

MGM Grand Foodservice and Twitter

Twitter and Holiday Inn

Promoting Businesses

Starbucks Leads Restaurant Chains into Twitter Territory

Minimal Advertising Space Crimps Its Potential

Twitter: Economy to Luxury Hotels

Photo and Video Enhancements May Provide Counterweight

Short Content Bursts

Location-Based Social Media

Hotel-Based Social Networking Interaction: Pod Hotel

Daily Deals and Group-Coupons: Groupon and Living Social

Groupon

Table 5-3: Groupon, Selected Metrics

Living Social

Table 5-4: Living Social, Selected Metrics

Living Social: Escapes

Groupon and Living Social Backlash

Online Review Platforms

A Growing Force to Be Reckoned With

What Information Source Do You Use to Choose a Hotel?

Yelp

Table 5-5: Yelp, Selected Metrics

How It Works

Benefits

Mobile Application

Lawsuit Pending

Business Response Ammunition

TripAdvisor

Hotel Technology: Online Ordering

Omni Hotels Expands Platform

Helping Breakfast Along

Foodservice Revenue Leader

Forecast

Chapter 6: Hotel Foodservice Operations & Strategies Analysis

2011 Results

Positioning and Direction

Table 6-1: 2010 U.S. Lodging Market: Marriott Share

Brand Characteristics: Chain Concepts Across the Lifestyle Spectrum

Table 6-2: Marriott International: Brand Characteristics and Metrics

Key Marriott Foodservice Trends

Healthy Living

Technology and Renovations

Pushing the Upscale Envelope

Foodservice Happenings and Trends, By Brand

Marriott Hotels & Resorts

JW Marriott Hotels & Resorts

Renaissance Hotels

Courtyard by Marriott

AC Hotels by Marriott

Residence Inn by Marriott

Fairfield Inn & Suites by Marriott

Marriott Conference Centers

TownePlace Suites by Marriott

SpringHill Suites by Marriott

Marriott Vacation Club

The Ritz-Carlton Hotel Company, L.L.C.

Bulgari

Starwood Hotels & Resorts Worldwide, Inc

A Billion-Dollar Foodservice Brand

Forecast

2011 Results

Positioning and Direction

Table 6-3: Starwood International Revenue Share, Top 5 Markets

Top Markets

Table 6-4: Starwood Domestic Revenue Share, Top 5 Markets

Brand Characteristics Share Upscale Thread

Table 6-5: Starwood: Brand Characteristics and Metrics

Key Starwood Foodservice Trends

Sustainability, Sustainability, Sustainability

Foodservice Happenings and Trends, by Brand

Sheraton Hotels & Resorts

Wiring the Lobby Lounge

Club Lounge Makeover

Four Points by Sheraton

W Hotels

Aloft Hotels

The Luxury Collection

Le Méridien

Element

A Pantry Stocked With Target Market in Mind

Upscale Innovations

Westin Hotels & Resorts

Driving Health

Hyatt Hotels Corporation

2011 Results

Positioning and Direction

Hyatt Brand Characteristics

Table 6-6: Hyatt: Brand Characteristics and Metrics

Key Hyatt Foodservice Trends

Go-Go-Go

Fresh and Local

Foodservice Happenings and Trends, By Brand

Park Hyatt

Andaz

Grand Hyatt

Go, Go, Go Gourmet

Greener Menus

Synergy To Boost In-Room Dining

Hyatt Regency

Hyatt Place

Hyatt Summerfield Suites

Hyatt Residences

Hyatt Vacation Club

InterContinental Hotels Group

Recent Performance

Positioning and direction

Brand Characteristics

Table 6-7: IHG: Brand Characteristics and Metrics

Key IHG Foodservice Trends

Rally Around The Social Hub

Upscale Dining Synergy

Foodservice Happenings and Trends, By Brand

InterContinental Hotels & Resorts

Crowne Plaza Hotels & Resorts

Hotel Indigo

Holiday Inn Hotels & Resorts

Social Hub

Holiday Inn Express

Staybridge Suites

Candlewood Suites

Wynn Resorts LTD

Food and Beverage Garners Significant Revenue Share

Recent Food and Beverage Performance

Brand Characteristics

Table 6-8: Wynn: Brand Characteristics and Metrics

Key Wynn Foodservice Trends

Nightclub Innovation

Keep the Chefs Coming

Not a Chain To Be Found

Foodservice Happenings and Trends, By Brand

Wynn Las Vegas

Beach Club Makes a Splash

Star Chefs the Only Way To Go

Wynn Macau

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