Hotels take action to pare down food, restaurant expenses

ByABC News
March 13, 2009, 11:00 AM

— -- Looking for ways to trim costs, Omni Hotels executives recently debated whether to eliminate the free apples available in the lobby at its 40 hotels.

"It can get pretty expensive," says Richard Maxfield, an Omni operations executive. "It's a couple hundred thousand dollars a year. But it's a signature item we thought was important."

The apples stayed. Cuts were made by purchasing food in smaller amounts and reducing the operating hours of its lobby cafe, Morsel's, at some hotels.

As the industry retrenches amid the battered economy, food options at all classes of hotels are being rolled back after years of expansion. Lobby restaurants are shutting doors or closing earlier. Menus have been streamlined. And more upscale hotels are cutting back on 24-hour room-service.

Hotel restaurants' revenues are estimated to fall 1.2% in 2009, according to the National Restaurant Association.

"Everyone is trying to save money, and the key is to do it in a way to that minimizes guest impact," says Kirby Payne, president of HVS Hotel Management. Recently, his firm eliminated free 24-hour lobby coffee at a Holiday Inn Express, now offering it only in the morning and when guests ask for it.

Other food service trends:

Hours cut. Marcelo Almeida, a business development director in Dallas, wanted to order late room service during a recent stay at Marriott Wardman Park in Washington, D.C., but was told that it had closed at 11 p.m. "The only way to get food was to go down to their pub and order it from there," she says.

Hilton Anaheim, one of the largest hotels in Orange County, Calif., has cut back its room service to 18 hours.

Less waste. When Hilton Anaheim anticipates low turnout for its morning breakfast, it shuts down buffet tray tables and instead offers guests a fixed-priced "personal buffet," where items are cooked in the kitchen.

Holiday Inn provides to-go coffee cups only to guests who request one. It's also allowing franchisees to substitute linen napkins with paper napkins for breakfast and lunch.