Singapore hotels shake up the F&B trade
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SINGAPORE — Convinced that the labour crunch situation has checked in for a long-term stay, some mid-tier and luxury hotels in Singapore are actively reinvigorating their food and beverage (F&B) business models, by opening up their restaurants to third-party managers, creatively blending self-service into upscale dining, relying heavily on technology and, in at least one case, even using robot waiters.
These initiatives come at a time when hotels, faced with increasing pressure on margins, are finding themselves forced to slash room rates amid falling tourist arrivals and increasing room inventory in the Republic.
“Caught between the manpower crunch and falling service standards, bringing in third-party operators to manage F&B outlets will help hotels to not only redeploy scarce resources, but also retain strategic focus on core operations and improvement of service standards. This trend is likely to gain momentum in the near future,” said Mr Robert McIntosh, executive director, CBRE Hotels Asia Pacific.
Two of the six dining outlets of InterContinental Singapore — Chikuyotei and Baker & Cook — are run by third-party owners. Baker & Cook opened its doors in April this year led by global Baker Dean Brettschneider. The hotel recently shuttered its 20-year-old Mediterranean-themed restaurant Olive Tree and, at the end of this month, will launch Ash & Elm — an open European dining concept that promises an interactive dining experience with culinary theatres including charcuterie and cheese rooms, a wood-fired oven and an open charcoal-grill kitchen.
“With the burgeoning food scene in Singapore, and the increased competition present in the industry, we recognise the importance of continuous development to cater to the progressive tastes and preferences of our guests … Contrary to independent dining establishments, hotel-operated restaurants often have to take a broader approach in catering to a wider palette,” said Ms Tash Tobias, general manager of InterContinental Singapore.
Royal Plaza on Scotts earlier this year converted its hotel bar, Heat Ultralounge, into a Japanese dining restaurant managed by external party Gion.
“The business decision was made based on rising operating expenses and the labour crunch situation. Being centrally located in the Orchard area, guests have plenty of dining and entertainment options that fit all budgets,” said Mr Patrick Fiat, chief experience officer of Royal Plaza on Scotts.
M Hotel Singapore, in Tanjong Pagar, recently leased out part of its F&B area to Hokkaido Sushi Restaurant. In March this year it also renovated J Bar to spin-off a part of the bar to create a new function space, J Collyer.
“An event space allows us to bring in additional revenue when the bar is not in use during the day,” said Mr Malcolm Chen, marketing manager at M Hotel. The hotel also operates two other F&B outlets — Café 2000 and The Buffet.
Park Avenue Rochester, too, has leased out its F&B space. “It is better that we let culinary experts run our F&B arm. We can then concentrate on our core business and bring in more guests to our hotels as well as our F&B outlets. We recommend our guests dine at partnering restaurants by offering them attractive discounts,” said Mr Ryan Sun, general manager, Park Avenue Hotels & Suites.
A critical aspect of the hotel’s future strategy in improving productivity and optimising manpower involves using technology to get the job done, he added. “We are planning to have robots assist in room service and deliver food to our hotel guests,” Mr Sun said.
At Fairmont Singapore and its sister hotel Swissotel The Stamford, technology also plays a big part in its customer service.
“One example of enhancing efficiency without losing guest interaction is by implementing hand-held ordering processes and table management systems. These new technologies allow us to better manage our guest expectations during busy meal periods,” said Mr Nick Flynn, director of F&B at Fairmont Singapore and Swissotel The Stamford.
In recent years, the restaurant scene in Singapore has witnessed a boom, presenting new dining opportunities for visitors, noted the Singapore Tourism Board.
But while the number of establishments in the food and beverage sector has increased, from 6,000 in 2009 to 7,000 in 2014, sales volume is slowing down and companies are facing greater competition, said Mr Lim Hng Kiang, Minister for Trade and Industry, in a written reply to a parliamentary question in July.
It is therefore important for the F&B sector to improve its productivity and become more manpower efficient, he noted.
Numbers aside, Singapore has also seen renowned chefs such as Joel Robuchon set up shop at Hotel Michael at Resorts World Sentosa, helping pull in the crowd while cultivating a more food-conscious culture.
“Well-heeled travellers visiting Singapore are taking the chance to visit the established restaurants on their trips as Singapore makes its mark on the map with its name on the World’s Best Restaurants list and with the sprouting of several celebrity chefs’ restaurants,” said Mr Fiat.
Meanwhile, gone are the days of elaborate and exhaustive menus. “Today the menu items are less in number but more targeted,” said Mr Guillaume Delemarle, executive assistant manager (F&B), Grand Hyatt Singapore. The upscale hotel is in the process of implementing a beverage self-serve concept at its all-day-dining buffet restaurant, StraitsKitchen.
“We have formed an internal productivity committee that is in charge of observing each food and beverage area and identifying opportunities on a constant basis,” Mr Delemarle added.
