You can access the full white paper from which this content was derived here.
NATIONAL REPORT— Leading hotels are boosting profits through a strategic focus on marketing F&B outlets to locals.
From rooftop bars and pools to hotspot restaurants and swanky lounges, today’s hotel food and beverage experience looks nothing like that of yesterday. The trends shaping this hospitality renaissance extend well past travelers, and into the daily lives of those guests who aren’t transient: locals.
Today, we live in an experiential economy where consumers are seeking new and exciting experiences as a regular part of their day-to-day lives, and their spending habits reflect this.
According to EuroMonitor International, consumer values have fundamentally shifted to prefer experiences that bring happiness and well-being over material things. Spending on these types of experiences, including dining out, is expected to rise to $8.0 trillion USD by 2030 (source here).
Hotels are uniquely positioned to capitalize on this lucrative trend by providing these experiences closer to home where they can be enjoyed many times over, fostering loyal guests for life across the portfolio.
Why Locals Matter
A strong F&B presence with locals can help fortify your bottom line against seasonal travel slumps. In fact, increasing your F&B retention rate by 5% can increase your profits in that area by 25% to 95% (source here).
The benefits of locals extend beyond revenue from repeat reservations, too. Local regulars can recommend the hotel to visiting friends, may choose the brand when traveling and often lend an authentic, local flair and ambiance that travelers crave.
Create a local restaurant that stands on its own
From venue naming and brand aesthetics to your website and social channels, think about your restaurant as an independent, free-standing concept that is separate from your hotel. Understand that it is competing on its own as well.
If you want locals to patronize your F&B outlets, you can’t rely on word-of-mouth marketing alone. You need to have a distinct — and easy to find — online presence that pulls in locals where they are already searching. Today, that means search and social. That means having an easy to find website for the restaurant (that’s optimized for search and mobile traffic), enabling direct online reservations, claiming a Google My Business listing for the restaurant and maintaining individual social media profiles for the restaurant.
Segment Your Approach to Marketing
One size doesn’t fit all when it comes to marketing, especially when it comes to out-of-towners and locals. If you are prioritizing your local audience, then you’ll need a targeted plan that reflects the uniqueness of that audience. Here are ways you can successfully target a local audience:
- Create programming that specifically targets locals
- Strategically leverage local channels to get the word out
- Be an active member of your local community
- Localize your ongoing marketing communications
Turn Locals into Regulars with Data
Taking the time to really know each guest, understand their preferences and make them feel special every time they dine is the most cost-effective marketing strategy there is. In fact, 51% of Americans said that a server simply remembering them from a previous visit would make their dining experience stand out (source here).
Prioritizing the collection and strategic use of guest data is the first step. With the help of a restaurant reservation and CRM system, you can easily build robust guest profiles with guests’ name, photo, home location, birthday, allergies, dietary preferences and more. Being able to access the right data at the right time is how F&B-forward brands are able to personalize service and marketing in a way that turns first time guests into lifelong regulars.
To learn more about how you can boost your F&B profits with locals, download SevenRooms’ latest educational guide, Hotel F&B: Local Marketing—Unleash the Revenue Potential of Locals. In this free industry white paper, you’ll get data-based insights and actionable tips for marketing your F&B outlets to locals.
From neighborhood restaurants to international, multi-concept hospitality groups, SevenRooms empowers operators to create and cultivate meaningful, direct relationships with guests that make exceptional experiences possible. Founded in 2011 in New York, the reservation, seating and guest management solution gives operators the tools they need to develop direct relationships with guests, boosting revenue and enabling personalized service and marketing. SevenRooms has restaurant, hotel and nightlife clients in more than 250 cities worldwide, including: Jumeirah Group, The Cosmopolitan of Las Vegas, Standard Hotels, LDV Hospitality, Live Nation, Zuma, TAO Group, Bagatelle, Altamarea Group, Wolfgang Puck, Michael Mina, Patina Group, Hakkasan, Chase Hospitality Group, Mercer Street Hospitality, Corbin and King and The h.wood Group. www.sevenrooms.com