TAILIEUCHUNG - Lecture Hotel management and operations (5th Edition): Chapter 6.5 - Michael J. O'Fallon, Denney G. Rutherford

Strategic alliances between hotels and restaurants. In part because of the high cost structure of hotel restaurants, which means high prices relative to other restaurants, they developed among potential customers a reputation for being a poor value, offering indifferent service and inferior food. Today many hotels are rethinking the process. | Strategic Alliances between Hotels and Restaurants Robert W. Strate and Clinton L. Rappole Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Introduction In the past, hotel restaurants have been managed as a secondary function. In part because of the high cost structure of hotel restaurants, which means high prices relative to other restaurants, they developed among potential customers a reputation for being a poor value, offering indifferent service and inferior food. Today many hotels are rethinking the process. Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Introduction Cont. Hotel owners and operators are asking at least four key questions about their property-level F&B service: What are the hotel customers’ food and beverage needs and expectations? Which food and beverage concept best aligns with the positioning of the hotel? Would converting the hotel’s restaurant to a brand-name restaurant concept improve the property's overall bottom line? Would turning to a brand-name F&B operation give the property a competitive advantage? Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Introduction Cont. Two results of owners’ and operators’ new focus on hotel food service are: Innovative hotel F&B concepts are being created. Strategic alliances are being established between well-known brand-name hotel and restaurant companies. Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Introduction Cont. The results of a strategic alliance should be an improved property image overall, enhanced customer value, increased revenues, and a competitive advantage. The following four main topics will be addressed: The value of the brand-name partner Existing hotel-and-restaurant alliances A description of Bristol Hotel Company alliance with Good Eats Grill Future trends Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Alliances Five reasons as to why alliances are becoming more frequent: Creates financial .

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