Southeast International Tips: Should You Have a Restaurant in You Hotel?

Here at Southeast International, we often get questions about whether or not it’s a good idea to have a restaurant in your hotel. It’s a good question, but not one that is easily answered. There are pros and cons to having a restaurant in your hotel, and it could be a good or bad idea, depending on the circumstances. When you buy a hotel through Southeast International, we’ll be able to help you decide what hotel is right for you.

Pros

Extra Revenue

The first, and most obvious, benefit of having a restaurant is the extra revenue it brings in. If your restaurant is doing well, you can add a good amount of profit to your bottom line. This is easier said than done, but when it works it can be a huge benefit.

A Bonus Amenity for Guests

Another benefit of having a restaurant is the option it gives your guests. Guests always love to have a restaurant in their hotel because it gives them an easy option for their meals. If your hotel has similarly priced rooms to a competitor and the other hotel doesn’t have a restaurant, a potential guest is more likely to book your hotel.

More Business

Restaurants draw in people who aren’t even staying at your hotel, so it’s free marketing. People can come to the restaurant and see how nice your hotel is. It goes the other way, too. People staying at your hotel will see the restaurant and probably want to go to it. Free marketing is never a bad thing.

Cons

Complicated

Maybe the biggest con of having a restaurant is the fact that it is almost a completely separate business. This can raise a lot of questions as to how you plan on implementing your business strategy. Are you going to hire a restaurant manager, or do you think you can handle it yourself? Do you have the proper licenses? Do you have a separate marketing plan for the restaurant? These are just a few questions you’ll need to consider if you want to have a restaurant in your hotel.

More Work

A restaurant isn’t just a side business that runs itself. It’s a full-time job. Having a restaurant in your hotel can add a lot more work to your already busy schedule. A restaurant won’t be successful if someone can’t stay on top of it. Many hoteliers choose to lease their restaurant space to another unrelated company to operate, thus generating income without having to operate a completely different business. It can take a lot of difficult work off your plate so you can focus on the big picture.

Less Business

This is the flip side of what we talked about earlier. If your hotel business is slow, but your restaurant business is good, a restaurant can be very beneficial. But what if business is slow for both? Then you’re stuck paying overhead for two businesses that aren’t bringing in much revenue to make up for it. In order for a hotel restaurant to be successful, it needs to be constantly attracting customers. You can’t expect all of your business to come from guests staying at the hotel.

Buy a Hotel Through Southeast International

When you buy a hotel through Southeast International, you know you’re in good hands. Southeast International has been in the hotel brokerage business for decades, so we know what hotel will be best for your needs. Contact Southeast International today or view our website for more information.