Gourmet goldmine: The dynamic role of F&B in hotels

The significance of Food and Beverage (F&B) offerings is increasingly getting recognised as a cornerstone of guest experience and revenue growth. Hotels, with each passing day, are embracing F&B not just as an ancillary service, but as a vital component that enhances guest satisfaction and fosters loyalty. This shift reflects a broader understanding that exceptional dining experiences – encompassing unique meals and engaging atmospheres – are essential for attracting guests and ensuring repeat visits. As sustainability and innovation take centre stage, hotels are reimagining their F&B strategies to align with modern consumer expectations, creating memorable culinary experiences that resonate long after a guest’s stay. By prioritising diverse and health-conscious menus, integrating technology for personalisation and committing to ethical sourcing, the hospitality industry is shaping its future and setting new standards for excellence in dining.

Avartana, ITC Maurya Delhi

Growing significance of F&B
Prioritising culinary excellence has become a key strategy for hotels seeking to enhance guest experiences and drive significant revenue growth. The F&B segment is now recognised as an indispensable part of a hotel’s success, demonstrating that exceptional dining can lead to greater satisfaction and loyalty among guests.

Highlighting the importance of F&B in revenue generation, Chef Rakesh Sethi, Corporate Executive Chef for South Asia at Radisson Hotel Group, notes that in many cases, F&B contributes between 40 and 60 per cent of total revenue. “In locations where our food offerings are a key focus, this can even reach a 50-50 split,” he explains. This significant contribution underscores how integral F&B has become to the overall hotel experience.

This perspective is echoed by Sachin Maheshwary, F&B Alchemist Accor India and General Manager, Novotel Goa Resort & Spa and Novotel Goa Candolim, who observes that F&B has evolved into a core pillar of hotel revenue. “From unique breakfast spreads to large-scale MICE events, F&B employs a multidimensional approach that enhances the overall hotel experience,” he asserts. For Maheshwary, the focus extends beyond meals; it’s about creating memorable moments that resonate with guests long after their stay.

Chef Rajeev Janveja, SVP & Corporate Chef at Lemon Tree Hotels, further emphasises this point. He notes that F&B operations typically contribute between 35 and 50 per cent of total revenue. This encompasses a range of offerings, from all-day dining to specialty restaurants and in-room service. He also identifies large-scale events like weddings and corporate meetings as major revenue drivers, prompting new hotels to design spaces specifically for banqueting.

Additionally, innovative dining experiences, such as thematic restaurants and culinary pop-ups, are attracting both hotel guests and local patrons.

The rise of social dining has also played a crucial role in shaping guest satisfaction. Chef Simran Singh Thapar, Executive Chef at The Leela Palace Bengaluru, points out that diverse culinary offerings significantly enhance the guest experience. “In India, the rise of social dining and events boosts guest satisfaction and loyalty,” he explains, underscoring how hotels can transform their F&B initiatives into vibrant social hubs.

Reflecting on the dramatic evolution of the industry, Yogendra Adep, Culinary Director for South Asia at Marriott International, emphasises that F&B plays a crucial role in overall hotel revenue, especially during events. In luxury hotels, F&B can contribute around 40-45 per cent of total revenue, despite the limited number of such establishments. By embracing regional flavours and cultural innovations in dining, hotels can create upscale experiences that not only satisfy guests but also drive significant revenue growth.

Rocky Kalra, Vice President of Operations at The Lalit, adds that in luxury settings, F&B operations typically contribute around 3040 per cent to total revenue, with that percentage often higher for highend hotels focussed on exceptional dining experiences. His insights highlight that a strong F&B strategy is essential for maintaining a competitive edge in a crowded market.

At Hilton, the F&B segment is similarly vital, contributing 35-40 per cent of total revenue. This impressive figure is driven by innovative dining experiences and the increasing demand for events such as weddings and corporate gatherings. Prashant Kulkarni, Director of F&B Operations – South Asia, emphasises on the hotel’s commitment to curating culinary experiences that are both innovative and regionally inspired. “By customising our menus based on guest needs, we elevate not just dining but the entire hospitality experience,” he says.

Neung Roi, Radisson Blu Plaza Delhi Airport

Financial impact of F&B
The F&B sector is not merely an additional revenue stream but a vital component of hotel operations that can significantly enhance profitability. By innovating their culinary offerings and strategically managing their F&B resources, hotels in India are positioned to thrive in an increasingly competitive market. Chef Manisha Bhasin, Corporate Executive Chef at ITC Hotels, emphasises on the importance of creating unique dining experiences.

“Our core goal is to deliver memorable moments that foster brand loyalty. By focussing on innovation in menu design, ambience and service, we create a competitive edge.” ITC’s centralised resourcing model helps manage raw material costs effectively, ensuring consistency and quality across locations. She notes, “Our comprehensive training programmes empower our teams, enhancing service quality while ensuring operational efficiency,” highlighting the balance between luxury and financial sustainability.

Discussing the significant contribution of F&B to hotel revenues Kulkarni says, “In urban markets like Delhi and Mumbai, restaurants and bars can account for 30-40 per cent of F&B revenues, while banqueting in leisure markets can represent 40-50 per cent.” The diversity of dining experiences not only attracts hotel guests but also non-residents, demonstrating Hilton’s effective approach.

Understanding market demand is crucial, as Maheshwary points out. “Conducting thorough market analysis helps identify unique dining concepts that resonate with guests.” He cites a report indicating that Latin American cuisine is projected to be the fastest-growing sector in India’s full-service restaurants, with a CAGR of 15.89 per cent from 2024 to 2029. Maheshwary underscores the importance of flexibility in restaurant design to capture diverse customer segments, adapting spaces to fit shifting dining trends.

Chef Sethi adds that hotels with multiple dining outlets can generate substantial revenue, particularly in destination wedding properties. “Dedicated wedding studios in some of our key hotels often lead to full property bookings, covering room occupancy while driving significant revenue through dining spaces and banquet halls.”

Paasha, JW Marriott Pune

Embracing sustainability 
As the global focus on sustainability intensifies, India’s hospitality industry is rising to the challenge, particularly within the F&B sector. Leading hotels are implementing innovative practices to reduce their environmental impact while enhancing guest experiences.

Emphasising on the commitment to sustainability at Accor, Maheshwary says, “We focus on reducing food waste, eliminating single-use plastics and celebrating local cuisines. All Accor hotels in India have successfully removed single-use plastics and utilise an in-house tool to monitor food waste, even displaying menus with carbon footprints to cater to eco-conscious guests. Local sourcing is a priority, including cage-free eggs and honey from supported beehives, aligning with broader sustainability goals.

Chef Manisha Bhasin elaborates on pioneering initiatives, highlighting the company’s energy-efficient buildings and water recycling efforts. “Over 50 per cent of our produce is sourced locally,” she notes, citing their recent showcase at the G20 Summit, which featured a menu crafted entirely from home-grown ingredients, particularly millets. This not only showcased the versatility of these ancient grains but also supported local farmers. Under ITC’s Responsible Luxury ethos, she has in discusses zero-waste kitchens that convert food scraps into vermi-compost and the promotion of climate-resilient ingredients.

Similarly, Chef Simran shares insights on adapting to sustainability. “We focus on local and seasonal sourcing, implementing recycling and composting programmes,” he states, highlighting creative menu planning and inventory management as vital strategies for reducing food waste while offering plant-based options. Innovations such as vertical farming and food waste reduction apps are fast becoming integral to their operations.

Hilton is also deeply committed to driving positive social and environmental impact. Kulkarni outlines their ESG strategy anchored in the Travel with Purpose programme, which promotes responsible travel while addressing key Environmental, Social, and Governance priorities.

As Hilton advances its Travel with Purpose 2030 Goals, several innovative initiatives have emerged in India. For instance, the Hilton Goa Resort has implemented a hydroponic setup at its all-day dining restaurant, @Saipe, emphasising sustainable ingredient sourcing. The company is also transitioning to glass water bottles across properties to reduce plastic waste significantly by 2030.

Kalra adds their hotels are aligning F&B operations with sustainability values. “We reduce food waste through efficient inventory management and partner with sustainable suppliers,” he explains. Advanced energy-efficient systems support both sustainability goals and cost savings, while the introduction of millet-centric dishes promotes environmentally sustainable choices.

At Lemon Tree Hotels, Chef Janveja reports a growing adoption of sustainable practices in F&B operations. “We’ve installed energy-efficient LED lighting and low-flow fixtures to minimise water consumption,” he says. Their farm-to-table philosophy supports local sourcing, effectively lowering transportation emissions. Seasonal menus focus on fresh produce, ensuring quality while reducing the environmental impact of imports. Innovative practices, such as a No Bin Day policy in staff cafés and organic waste converters, further enhance their commitment to sustainability.

Mikusu, Conrad Bengaluru

Navigating challenges and opportunities
The integration of F&B into broader business strategies presents a complex landscape of challenges and opportunities for hoteliers. Chef Sethi believes these challenges can often be transformed into strategic advantages. “By staying ahead of trends, like the rising demand for vegan and plant-based dishes, we can gain a competitive edge,” he explains. Incorporating these offerings into menus allows hotels to meet evolving guest preferences while positioning themselves as trendsetters.

Chef Simran emphasises that one of the major challenges is balancing F&B profitability with hotel room revenue goals. “We need to manage diverse customer preferences and dietary requirements, all while maintaining quality and consistency across multiple outlets,” he notes. The pandemic has made it increasingly difficult to recruit and retain skilled F&B staff, adding another layer of complexity. Furthermore, adapting to rapidly changing consumer trends and technological advancements is essential for success. Despite these hurdles, opportunities abound. “Enhancing guest experience through unique F&B offerings can significantly boost loyalty,” he states, adding that leveraging F&B for social media engagement also plays a vital role in enhancing our online reputation. Catering, events, and take-out services further integrate F&B into hotel strategies, creating additional business opportunities.

Novotel Chennai OMR

Kalra acknowledges the challenges of managing food costs and ensuring quality consistency. “High service standards and the coordination of F&B operations with other hotel services require careful planning,” he notes. However, he sees immense potential for hotels that effectively execute their F&B strategies. “A well-crafted F&B approach can enhance guest satisfaction, increase revenue, and differentiate a hotel in a competitive market,” Kalra emphasises. By tapping into trends like experiential dining and sustainability, hoteliers 
can create unique value propositions that attract and retain guests.

Chef Janveja points out that while high labour costs and sourcing quality local ingredients pose significant challenges, the rewards are compelling. “Unique dining experiences can set a hotel apart, enhancing its brand and attracting both guests and locals,” he says. The potential for lucrative events, such as banquets and weddings, enables hotels to leverage their culinary capabilities to boost revenue. Additionally, sustainability initiatives can attract eco-conscious consumers while reducing long-term operational costs.

Unlike the rooms division, which benefits from robust analytics – such as revenue management systems and industry diagnostics – F&B often lacks structured data and insights. This absence complicates informed decision-making regarding pricing and occupancy. However, as Kulkarni explains, this complexity can be a growth opportunity. “By incorporating restaurant revenue management and focussing on detailed analytics related to catering and events, we can make more strategic, data-driven decisions. F&B can account for 35-65 per cent of total revenue, depending on the property, making it a critical revenue stream that supports overall profitability and enhances our hotel’s reputation.” A key opportunity also lies in nurturing a passionate workforce. Engaging and training staff to deliver exceptional service is vital for successful F&B operations. Kulkarni underscores this, stating, “Nurturing a motivated workforce and fostering a culture of excellence are essential. When our team is passionate about what they do, it translates into an enhanced guest experience and drives revenue growth.”

Ariva Bar, Aurika Mumbai International Airport - Luxury by Lemon Tree

Embracing farm-to-table dining 
As the demand for farm-to-table dining and local sourcing surges, hotels are reimagining their F&B offerings to align with guest expectations while promoting sustainability. Chef Sethi highlights the importance of this trend through their FLOSS philosophy – Fresh, Local, Organic, Seasonal and Sustainable. “In several of our resort hotels, we even grow our own produce in kitchen gardens, allowing us to offer guests an authentic and sustainable dining experience,” he explains. This hands-on approach not only elevates meal quality but also connects guests to the source of their food, enriching their overall experience.

Emphasising on the significance of partnerships with local farmers and suppliers, Kalra says, “With our concept of We Serve What We Grow, our menu features fresh, seasonal ingredients. Sourcing directly from our kitchen gardens enhances the flavour and quality of our dishes while reducing our carbon footprint and supporting local 
economies,” he notes. The Lalit also underscores its commitment to sustainability through the use of eco-friendly packaging and the inclusion of millet-centric menus, promoting healthy, locally sourced grains.

At Marriott South Asia, Culinary Director Yogendra Adep is redefining the F&B strategy by integrating thoughtful technology and sustainable practices. “We’re committed to collaborating with local vendors and reducing our carbon footprint. This includes sourcing cage-free eggs and offering sustainable vegetarian menus,” he explains. These initiatives have resulted in a notable 27 per cent contribution from sustainable practices, creating opportunities to explore diverse cuisines and foster meaningful exchanges with local producers. Adep also stresses the importance of culinary variety, stating, “Guests today don’t want the same dish every day. We aim to surprise them with new offerings, rather than serving the same butter chicken or club sandwich repeatedly.”

Mohan Mahal, The Leela Palace Jaipur

Shaping future revenue growth  
The future of F&B in Indian hotels is poised to be shaped by a dynamic blend of technology, sustainability, and innovative culinary approaches. As these trends evolve, hotels that adapt will not only enhance guest experiences but also drive significant revenue growth in an increasingly competitive market. Chef Sethi emphasises on the importance of staying ahead in this rapidly changing industry. “The F&B industry is evolving quickly, and innovation is essential for continued revenue growth,” he explains. He highlights trends like plant-based protein dishes, fermented foods, and a renewed focus on local cuisines, noting their relevance can vary by market.

Adep anticipates the rise of health-conscious dining as a significant trend. “The emphasis on locally sourced and sustainable ingredients is becoming increasingly important, transcending traditional dining formats,” he notes, stressing that while trends often centre around specific ingredients, the ultimate goal should be to enhance the overall dining experience. “Our commitment to sourcing local ingredients aligns with consumer preferences and enriches the culinary landscape,” he says.

Baluchi, The Lalit New Delhi

Technology is another driving force in shaping F&B experiences. Kalra points to tech-driven personalisation as a game changer. “Advancements in technology enable highly tailored dining experiences, from AI-driven menu recommendations to automated ordering systems,” he says. He also highlights the growing consumer demand for transparency in food sourcing, referencing initiatives like The Lalit’s We Care and We Serve What We Grow philosophies.

Meanwhile, Maheshwary notes the emergence of multi-dimensional dining spaces. “Hotels are creating flexible environments that cater to various interests, including partnerships with celebrity chefs and transforming day cafes into speciality dining venues at night,” he explains. He points out the increasing popularity of healthy and sustainable eating, with a renewed interest in low-calorie beverages and regional ingredients. Hyper-local and third-culture cuisines are also gaining traction, showcasing chef-driven concepts that resonate with diners.

This evolving F&B landscape signifies a fundamental shift in how hotels enhance guest experiences and drive revenue. Industry experts recognise that innovative culinary offerings and sustainability initiatives are critical success pillars that foster deeper connections with guests and profitability. By embracing creativity and staying attuned to diners’ evolving preferences, hotels not only position themselves for success but shape the future of hospitality.