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 r. Fred J. DeMicco,
professor & chairman,
Hotel, Restaurant &
Institutional Department at the University of
Delaware (UDEL), announced
completion of the first pilot
study measuring the size and
complexity of the U.S. hotel
foodservice market. The study, begun in mid 2005,
utilized a questionnaire designed to gather specific
property information regarding 2004 retail sales
volume by food & beverage function and day part.
The project was initiated due to the lack of industrywide
standards for the food & beverage side of the hotel
business. According to DeMicco, “the lack of data was
noteworthy, particularly because the rooms side of the
business has many real estate standards by which to
measure growth and performance, such as occupancy
rate, revenue per available room and revenue per
occupied room.”
The online survey was posted on www.AdvantageResearch.com for data collection. It was
then compiled and analyzed by the UDEL Statistics
Department. A total of 363 completed property responses
were received and tabulated. Property types ranged from
mid-market flags such as Holiday Inns to luxury brands,
including Four Seasons and Ritz-Carlton. Hotels of various
sizes and from every geographic region participated,
including several casino hotels. The study did not include
limited service properties primarily serving complimentary
breakfast buffets.
TOTAL MARKET VOLUME
The total 2004 U.S. retail hotel F&B sales volume
was estimated at just over $71 billion. The survey also
identified approximately 48,000 total foodservice
outlets within hotels, not including room service and
banquet and catering. The number of U.S. hotel food &
beverage outlets breaks out as follows:
| Restaurants |
21,230 |
| Bars & Lounges |
16,602 |
| Other Outlets |
9,961 |
| Minibars/ In-Room Refreshment Centers |
600,000 |
Additionally, data indicate that 15,093 hotels
contain banquet & catering facilities.
The study confirms that the U.S. hotel, resort, and
casino foodservice market is far larger than previously
estimated. Previous surveys generally measured only
restaurant volume. This new data estimates sales as:
| Banquet & Catering |
$35.1 billion |
| Restaurants |
$21.9 billion |
| Bars & Lounges |
$8.0 billion |
| Room Service Volume |
$3.6 Billion |
| Other F&B Outlets |
$2.6 million |
BANQUET & CATERING
Forty percent (40.6 percent) of respondents
reported having between 5,000 and 15,000 square feet
of available function space. Another third (35.4 percent)
have between 15,000 and 40,000 square feet, and 10
percent reported 40,000 or more square feet of
available function space. In terms of revenue, the 2004
average dollar volume from banquet and catering was
$2,605,151 per property. The largest banquet day part
was dinner at 33.8 percent, while lunch and breakfast
together accounted for 40 percent of revenues (see
chart #1).
RESTAURANTS
The hotel food & beverage professionals surveyed
reported their property had an average of 1.5 restaurants,
with each restaurant averaging a total of 189 seats for a
total of more than 280 seats. The sample also reported
that 2004 restaurant revenues averaged $1,750,734.
Breakfast and dinner each accounted for more than a
third of this revenue, while lunch represented just over a
fifth (22.8 percent) of restaurant revenues (see chart #2).
Additionally each property had an average of 1.3 bars and
lounges. The reported number of bar seats was nearly
120 per property, with $570,597 in average annual sales
and 75.5 percent of the total coming from alcoholic
beverage sales.
At a total of $71 billion, the hotel F&B market ranks
fourth among all commercial foodservice establishments
and institutions. Its sales are behind only the Quick-
Serve (Fast Food), Chain Restaurant, and Independent
Restaurant segments of the market. Total market sales in
2006 are projected to increase to $76 billion.
FUTURE RESEARCH
UDEL’s DeMicco emphasizes that the sample size
of future surveys will have to be “much larger and
tailored by type, size, and location of properties to
more accurately represent the U.S. marketplace and
will require significant industry support as well as
more conscientious attention to survey details by
respondents.” However, he stresses that the initial
results were in line with previous estimates from other
organizations: “We’re pleased that the restaurant food
and beverage volume reported by our sample is within
5% of the volume estimated for hotel restaurants by
the National Restaurant Association and supports a
total market figure above $70 billion annually.”
DeMicco acknowledged the valuable assistance
provided by partners Advantage Business Research,
Smith Travel Research, and the Meinrad Hotel
Database, along with the support of several prominent
hotel companies required to execute the pilot project,
particularly InterContinental Hotels Group, Kimpton
Hotels and Restaurants, Loews Hotels, Omni Hotels,
Four Seasons, The Ritz-Carlton Hotel Company, and
Interstate Hotels. |
