‘The Starbucks Effect’

How coffeehouse concepts can improve hotel profitability

The idea of sitting down to a heavy breakfast early in the morning may not appeal to a certain kind of traveler with a fast-paced lifestyle. These guests often want to grab fresh and convenient food on the go. Cue the rise of barista-driven coffeehouse concepts in hotels, or what Don Falgoust, principal of Spot On F&B Services Group, refers to as “the Starbucks effect.” 

Falgoust explained, “You see it more and more: People are grabbing a breakfast sandwich or some fresh fruit and a coffee.” Branded coffeehouse outlets have moved the needle for hotel profitability, Falgoust noticed, generating more traction than full-service sit-down restaurants. These concepts can help hotels streamline operations while delivering on hospitality. “They can mitigate the number of staff you have to have, but they also increase the interaction time you have with a guest,” Falgoust explained. 

Instead of servers or attendants disappearing to finish other tasks, guests wait in line until it’s their turn, and then the staff are “100-percent focused” on them. “I think that dining trend is certainly going to continue in that direction, but different hotels and different resorts are going to have different concepts,” Falgoust added. He recommended hoteliers start by looking at their historical data on what sells and what doesn’t and streamline their offerings accordingly. “We can no longer be all things to all people,” Falgoust said. “The guest expectation is that we do things very well.” 

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