Restaurants in Hotels

The restaurant business is a tough one, and the going can be even tougher for those located in hotels. This paper describes the pros and cons of operating a restaurant in a hotel. It then explains the chances of growth and profitability and makes recommendations for the types of restaurants and operations that are more likely to achieve success.

There are several benefits of having a restaurant in a hotel (Ursin, 1999). The first is having a built-in business from the hotel's guests. The restaurant may also be able to handle the hotel's room service and banquet business to drive extra revenue. A restaurant can often share kitchen facilities and banquet rooms with the hotel's food-and-beverage operation and may be able to derive discounts by ordering some of its supplies in conjunction with the hotel. Further, a restaurant can benefit from things such as a hotel's central...
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