Mid-market F&B concepts key to profitability

HJA Hospitality executive director Henk Bruggeman highlighted the need to value TRevPAR in the budget and mid-market hospitality sector, noting the role of F&B outlets in the sector being important to overall profitability.

Bruggeman delivered the comment at the Hotelier Express Summit 2016, during a presentation entitled: Operating a successful F&B outlet, in which he identified F&B outlets as being ‘of great importance’ to the budget and mid-market hospitality sector.

“If you want a true reflection of your performance look to TRevPAR, especially in mid-market – you have less opportunity to make money, limited room numbers and limited facilities, these are cost savings, but it means if you don’t get the F&B options correct it is going to cost you a lot of money.”

He continued: “You don’t want to operate without making any profit, it is hard to operators to go to the owner and say we got the wrong F&B concept, it doesn’t work and we want to close it and change the concept; that is even more expensive.”

Bruggeman suggests hoteliers identify who their target customers are, and matching F&B concepts to these customers’ expectations.