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The Hotel F&B Transformation Roadmap

  • Clay Bassford
  • 13 September 2023
  • 3 minute read
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This article was written by Shiji Insights. Click here to read the original article

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The hospitality industry is undergoing a profound transformation, and the food and beverage (F&B) sector within hotels is no exception. As guest expectations continue to evolve and operational challenges mount, hotels are turning to technology as a bridge to bridge the gap between customer desires and the realities of F&B operations. Inspired by a recent whitepaper by Amazon Web Services and Shiji, we created an actionable roadmap for hoteliers to use to navigate the tech landscape today and improve Guest Service at their properties.

Download the roadmap below or read on to delve into the changing landscape of guest service in hotel F&B and explore how technology is playing a pivotal role in reshaping the industry.

A Widening Gap: Guest Expectations vs. F&B Realities

The F&B division of the hotel business has long struggled to maintain profitability relative to other divisions, and recent challenges have only exacerbated the situation. Labor shortages and inflation have added to the woes of the industry, leaving hotels with a significant gap between guest expectations and the ability to deliver quality and service while ensuring efficiency and profitability.

5 Trends Transforming Hotel F&B Operations

The AWS/Shiji whitepaper outlines five key trends that are exerting pressure on hotel F&B operations and driving the need for technological interventions, causing an F&B transformation in notable ways:

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  1. Chronic Labor Shortages
    The Great Reshuffle has led to significant staffing challenges, forcing hotels to reimagine recruitment, training, and operational efficiency.
  2. Rising Operating Costs
    Inflation and increased wages have driven up operating costs, prompting hotels to find creative ways to balance prices and maintain service standards.
  3. Shrinking Profitability
    F&B outlets have historically been less profitable than other divisions, and recent trends have further eroded profitability, necessitating strategies to control costs and boost revenue.
  4. Shifting Dining Behavior
    The rise of food takeout and delivery services has changed guest preferences, compelling hotels to adapt and find new ways to attract patrons for sit-down dining experiences.
  5. Low Ratings in F&B Reviews
    Labor shortages and pricing pressures have affected guest satisfaction, leading to lower ratings in F&B reviews and emphasizing the need for improved service standards.

Rising to the Challenge: New F&B Service Models

The whitepaper also highlights innovative approaches that hotels are adopting to address the challenges of F&B operations:

  1. Leaner Staffing Models
    Labor costs are a major concern, prompting hotels to adopt leaner staffing models and optimize workforce deployment.
  2. Scaled-back Services
    The pandemic has prompted hotels to reevaluate the necessity of extensive F&B services, leading to more streamlined offerings.
  3. Flexible F&B Concepts
    Hotels are redesigning F&B outlets to be more flexible, offering grab-and-go options, self-service, and hybrid dining experiences.
  4. Greater Reliance on Technology
    Technology is playing a crucial role in improving efficiency and guest service, with mobile POS devices and digital F&B services leading the way.

AWS on Modernization and Innovation in Hotel F&B Technology

Amazon Web Services sheds light on the next stages of cloud development, focusing on modernization and innovation. Cloud technology is enabling hotels to integrate more capabilities into mobile apps, enhance guest data utilization, and offer personalized F&B experiences. AWS products like “Just Walk Out” and “Alexa Smart Properties” exemplify how technology is shaping the future of hotel F&B.

The F&B Transformation Roadmap

View and download the full roadmap below:

Hotel F&B Technology: Bridging the Gap

The paper also highlights six ways hotels are leveraging technology to bridge the gap between guest expectations and F&B realities:

  1. Integrated POS Platform
    Hotels are adopting centralized POS platforms with open APIs to manage inventory, sales, payments, and reporting seamlessly. 
  2. Migrating to the Cloud
    Cloud-based POS systems reduce costs, enhance remote access, and facilitate scalability for F&B operations.
  3. Connecting Software to the POS
    Integration with third-party software enhances efficiency in areas such as table management, reservations, and payments.
  4. Equipping Staff with Mobile POS Devices
    Mobile POS devices empower staff to take orders and process payments anywhere on the property.
  5. Offering Digital F&B Services
    Digital dining technology enhances guest convenience and reduces wait times while increasing guest spend.
  6. Harnessing Data & Reporting
    Data-driven insights enable hotels to optimize menus, inventory, promotions, and loyalty programs.

Adapting Service Standards in a Tech-forward F&B Environment

The paper emphasizes the importance of striking a balance between technology and the human touch. Surveying guests, involving staff in technology planning, ensuring user-friendly interfaces, preserving the human element, prioritizing convenience, mastering service recovery, and selecting vendors with robust support are key strategies hotels are employing to ensure technology enhances rather than detracts from the guest experience.

Conclusion

In the evolving landscape of hotel F&B, technology is emerging as a powerful tool to bridge the gap between guest expectations and operational realities. By embracing innovative solutions, hotels can navigate challenges, streamline operations, and provide exceptional guest service, ensuring a successful and profitable future for the industry.

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