4 Ways to Increase Food and Beverage Revenue in a Hotel

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Modern hotels have a couple of ways that they make their revenue. Of course, their prices and location are still the two most important factors. However, other revenue sources can have a great impact on the bottom line.

Food and beverage revenue is one of those sources that is starting to have a significant effect. In other words, F&B fits into the type of revenue that can be increased with every booking. If you can’t expand the capacity of your hotel and book a large number of events, working on F&B is a good idea.

Revenue management is very important for the hospitality industry to help reduce your running cost and improve profit margins. Here’s what you should do.

Treat the restaurant as an independent business!

Most hotel heads cannot see significant returns on their F&B because they don’t pay enough attention. The restaurant is “just another” part of the hotel in their minds. Of course, you can’t focus your utmost attention on your hotel restaurant.

However, this doesn’t mean that your restaurant should be mediocre with nothing to attract guests. Think of all your bars, lounges, cafes, or restaurants within the hotel as a separate brand. This is how you will take them more seriously and work towards improving them.

First of all, create logos and names for all of them. Make independent social media pages where you can market each one of them separately. Make them open to both guests and the locals living nearby. This is how you will boost food and beverage revenue in no time.

Adopt new tech

With the right technologies, you can instantly improve the F&B aspect of your hotel. These kinds of tools can help you boost efficiency, save time, reduce the number of mistakes, and so much more.

They are designed to let you handle and process personalized meal requirements, upsell meals with visual proposals, see your whole space in a 3D environment, and so much more. On the other hand, you can use an F&B POS software for tracking valuable data, managing orders, and doing reports.

With this kind of system, you can learn about how well your sales are growing, which items or meals your customers like/dislike, what are your peak hours, and so much more. All of this data can give you valuable insights for improving your revenue. POS systems can also let you:

Do inventory management with ease

Manage employees

Perform customer relationship management

Help you run your supplies

Work on improving your service!

Even though it should be evident that bars, lounges, and similar F&B establishments should work on their service, it is often a neglected area. Having great drink options and excellent meals doesn’t guarantee good revenue.

They are only half of the whole story. It’s essential to provide exceptional customer service. With the suitable approaches, you will create a loyal base of customers and make people want to return to your hotel in the future.

Here are some of the ways you can do this in no time:

Make waiters/waitresses anticipate what customers need. Teach them to refill their glasses, clean the ashtray, take away dirty glasses/plates regularly, and so on.

Your staff should check up on your guests from time to time to see how they are enjoying their stay, drinks, and meals.

Finish payments in time. Don’t make your guests wait to get their bills. This is how you will also free tables earlier to get new visitors.

Treat loyal customers with more care and give them special discounts or offers.

Offer something for everyone!

When it comes to their diet, people prefer many different things. For example, lots of people are now turning to healthier options. This is because they are slowly becoming aware of their health and how important it is to eat right if you want to preserve it.

On the other hand, many travelers are looking to try out local food and authentic meals. Some people travel because of this alone. So make sure to find the proper chefs and expand your menu. Here are some of the foods you should include:

Vegan options

Local meals or dishes

Food made out of local produce

Healthier options (without sugar, cauliflower rice, gluten-free, etc.)



It’s essential to cater to everyone’s needs if you want to get the most out of your F&B establishments.

Use dynamic pricing for the food and beverage department

Dynamic pricing is a great practice that will help you adjust prices based on the current period and demand. Similar to how it can be used for rooms, you can use price changes to differentiate products and create different customer groups based on how much money they want to pay.

But fences in the hospitality department are different, and they could include:

Special amenities

The size of the menu

Location of the table

Day of the week


Time of booking

With these adjustments, you can reward your loyal customers while still getting the best possible margins on your products. During slower periods, keep your expenses down by introducing a different menu and switching your staff to other tasks.

Real-life case studies

Now let’s look at some case studies that show how these approaches can improve revenue in a hotel.

This example shows how a hotel was able to increase revenue by completely separating its F&B and turning it into a franchise.

How Mandalay Bay Resort’s food and beverage revenue equals 20% of total revenue thanks to its banquet operations.

How Hilton Hotels used contactless dining tech to optimize its  F&B revenue.

Case study on how overall service and food quality affect the customer experience in spa hotels.


In the end, your total revenue won’t grow if you aren’t focusing on providing the best possible guest experience. With excellent services, your guests will spend more, spread the word about your hotel and F&B, and book a room again.

To learn more about marketing, tactics, and promotion, check out CBRE, but as a hotelier, your ultimate goal should be to provide a great customer experience.

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Graduated from Standford University, Arielle has over 5 years of experience in the Hospitality industry. She holds an MBA in business administration from the IDC Herzliya, Israel. She currently works as Account Manager at UpStay, building and maintaining strong, long-lasting customer relationships. She is deeply passionate about helping hoteliers unlock significant new revenue streams from unsold premium inventory.


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