F&B in Hotels: The Revenue Centre Most Owners Undermanage

Food and beverage is the second largest revenue line in most full-service hotels. It is also the most commonly undermanaged.

A typical full-service hotel in our portfolio runs F&B at 28–35% cost of sales. A hotel that self-operates without a managed F&B programme typically runs at 38–45%.

The first intervention is always menu simplification. We typically cut menu items by 30–40% in the first six months of a takeover. Covers per menu item go up. Waste goes down.

The second intervention is outlet concept clarity. A hotel restaurant that tries to be all things succeeds at none of them.

Compass runs a central F&B advisory function that serves all 47 properties. Individual hotels benefit from portfolio-level expertise without carrying the overhead of a full F&B director on their P&L.