Revenue Management

🍴 Bret Thorn, Senior Food & Beverage Editor for Nation’s Restaurant News and Restaurant Hospitality, joined in 1999. He hosted the podcast "In the Kitchen with Bret Thorn" and wrote for The New York Sun from 2005 to 2008. A Tufts University magna cum laude graduate, he also studied at Peking University, Nanjing University, and has a Cértificat Elémentaire from Le Cordon Bleu. Thorn won the 2006 Jesse H. Neal Award, served as the IFEC president in 2005, and was inducted into the Disciples d’Escoffier in 2014. Email: [email protected]

🏩 Gotham Restaurant in New York City closed permanently after 40 years of operation. In July, its parent company, Gotham Restaurants LLC, filed for Chapter 11 bankruptcy in the Southern District of New York, with nearly $484,000 owed to the New York State Department of Taxation Finance and additional debts to suppliers, credit card and utility companies. A cyberscam in June cost the restaurant $45,000, affecting payroll. The restaurant, known for inventing "tall food," opened in 1984 with Alfred Portale, who left in 2019.

🏨 Atomize, a leader in revenue management, improves hotel RevPAR by 15% on average through real-time, automated pricing recommendations. Mews and Atomize exhibit great synergy, with many properties using both systems. The acquisition allows for fast product development, enhanced support, and powerful, integrated solutions. Hoteliers can anticipate seamless experiences and improved efficiencies. The partnership aligns with visions of digitalization, automation, and efficiency in the hospitality industry, set to redefine industry standards and profit optimization. The collaboration started with Atomize's first integration in 2018. Mews will continue as an open platform, offering diverse revenue management options through Mews Marketplace.

💸 In April 2022, restaurant-related inflation peaked but has since declined, with full-service restaurants experiencing a 4.3% inflation rate and quick-service restaurants a 3.6% rate as of September, as reported by Square. Full-service restaurants have seen inflation rise since the year's start, in contrast to a steady decline in quick-service categories. Over the past seven years, labor costs have surged 73.9% for full-service restaurant employees and 60.2% for those in quick-service restaurants. Square highlights the ongoing operational challenges for restaurants, including balancing increased expenses with customer affordability.

💸 The Consumer Price Index in October increased by 0.2% and is up 2.6% year-over-year. Food costs rose 2.1%, with food prices overall up 2.3% year-over-year in September. Food-away-from-home prices soared 3.8% year-over-year compared to a 1.1% rise for food-at-home. October marked 20 consecutive months where restaurant pricing exceeded grocery pricing, with a 270 basis point gap noted by Kalinowski Equity Research. The U.S. restaurant industry may see 2024 as the worst same-store sales year since 2016.

🏨 IDeaS, founded in 1989, partners with over 30,000 hotels in 164 countries and has a 98% retention rate. Duetto, started in 2012, serves more than 6,000 hotels, focusing on dynamic rate adjustments and profitability. FLYR, partnering with over 2,000 hotels, leverages AI for revenue management. RoomPriceGenie, assisting over 2,500 hotels, was founded to optimize pricing for independent hotels. Atomize, established in 2016, has 500+ hotel partners and specializes in real-time pricing optimization using AI and machine learning.

🏖️ Upmarket Leisure launched Cabana Club at ME Malta on November 4th. Located in St. Julians, part of Zaha Hadid-designed Mercury. Cabana Club, with a 200-cover Mediterranean restaurant, is open daily. Luciano by Gino D’Acampo, 300 seats, and Radio Rooftop arrive in early 2025. ME Malta has 140 rooms, while Mercury Suites features 48 suites and 450 apartments. Upmarket Leisure also reopened Radio Rooftop in London after a £2.5m refurbishment.

📖 Demand Calendar advocates for total revenue management in the hotel industry, encouraging hoteliers to adopt a lean approach with step-by-step implementation. They provide an integrated solution for data consolidation across all revenue streams, emphasizing customer-centric management. Their platform enables proactive data analysis, breaking down silos, and optimizing marketing for profitability. Demand Calendar's vision is to transform hotels' operational strategies to maximize revenue, control costs, and enhance guest satisfaction, thereby increasing profitability and ROI for investors.

💸 In September, inflation rose by a seasonally adjusted 0.2%, with an annual rate of 2.4%. Food prices increased by 0.4%, contributing to a 2.3% year-over-year rise. Food-away-from-home prices saw a 3.9% annual increase and a 0.3% monthly rise, while grocery/supermarket prices were up 1.3% from the previous year. Menu inflation has outpaced grocery prices for 19 consecutive months, with a 260 basis point gap favoring grocery stores in September. According to Circana, 86% of American eating occasions were home-sourced over the past year. Dining out costs four times more than eating at home, affecting restaurant visits and sales.