Small groups are eating up the majority of F&B spending, and sources said this growing trend is the new normal.

　　REPORT FROM THE U.S.—Corporate group food-and-beverage spending is on the rise, but full-service hotel operators are finding fewer mouths to feed per event and more finicky appetites.

　　Several of the largest public hotel companies reported encouraging revenue increases on group F&B spending during recent quarterly earnings releases, although this revenue has not yet rebounded to pre-economic downturn levels, sources said.

　　Marriott International reported group F&B catering up nearly 11% during the first quarter.

　　“I think the actual numbers for Q1 are probably a better indication, hopefully, of where we’re going,” said Arne M. Sorenson, president and CEO or Marriott, during the company’s first-quarter earnings call.

　　Hilton Worldwide Holdings, Starwood Hotels & Resorts Worldwide and Hyatt Hotels Corporation also reported increases in group F&B spending, buoyed by the recovering economy and an increase in corporate meetings.

　　Marriott’s group F&B revenue is growing broadly across specific markets rather than in a specific property class, such as airport, suburban or downtown, said Bruno Lunghi, Marriott’s VP for event management in North America. In the United States, properties in major metros in Florida, California, as well as Chicago and New York reported increases in corporate and consumer group bookings and also F&B spending, while markets such as Washington, D.C., were flat, he said, due to government cutbacks.

　　“We’re not back to the heyday, but we’re getting closer,” Lunghi said. “We feel optimistic that this is going to continue for quite a while.”

　　“The largest growth market has been the small meeting, with upwards of 85% of all leads received being under 25 rooms peak and within a 30-day window,” said Joyce Inderbitzin, Hilton’s VP of sales, meetings & convention services. “Interestingly enough, this is across all product lines, from the largest convention hotels to the small airport properties. This is not a new trend but certainly growing exponentially.”

　　Translating small group F&B spending to greater profits, however, requires flexible and evolving menu options and additional customer service outreach to obtain post-event feedback and to secure more reservations, experts said.

　　Staying flexible and nimble

　　Responding to this increased F&B demand offers new opportunities for hotel operators but also requires more flexibility to respond to evolving dietary tastes and demands of event planners and guests.

　　“Since the recession, there’s been a much higher interest in a restaurant experience versus a banqueting experience,” said Bob Puccini, president CEO of the Puccini Group, a consultancy firm specializing in hotel restaurant design and management. “What we’re seeing is more satellite rooms being designed around restaurants for these groups that look and act and feel like a restaurant with the same kinds of food.”

　　These menu options include more upscale items, healthier choices, as well as unique dishes with unusual flavors, such as smoky, sweet and hot/spicy, said Jeff Dover, VP with fsStrategy, a consulting firm specializing in strategy support for the foodservice industry.

　　“We have noticed in recent years an increase in items offered with ‘social’ descriptions including local, environmentally friendly, corn or grain fed and Ocean Wise,” he said, adding that ingredients such as specialty cheeses, specialty meats, flavored mayonnaise/aioli, pesto, coriander/cilantro, arugula, ancient grains and Panko breadcrumbs also are appearing on more menus.

　　An increase in food options, however, does not need to break the bank for operators or groups. Switching from plated to buffet service in a stylish, restaurant setting allows hoteliers to offer variety for those with dietary preferences, intolerances, restrictions or allergies without increasing costs through wasted food or numerous special orders.

　　“We know that no two events are created equal and hyper-personalization is what planners and attendees want,” Hilton’s Inderbitzin said.

　　The new normal

　　Any increase in group F&B spending is welcome, but operators need to ensure they have adequate staffing to manage simultaneous events while following up with groups afterward to assess their satisfaction and secure repeat bookings.

　　Hilton’s team asks every meeting planner for feedback and each year receives approximately 30,000 responses that assist in evolving its banquet menus and operations, Inderbitzin said.

　　“We also believe strongly that the best way to sustain the highest quality of food-and-beverage experience is through our sales team’s education—learning through professional sources, our internal subject-matter experts and our guests,” she said.

　　If recent quarterly performance is any indicator, this type of investment in customer service could increase for hotel operators who want to sustain the small group F&B spending growth trend.

　　“Business post-recession has rebounded faster in corporate transient and leisure than in large groups,” said Christie Hicks, senior VP for Starwood Sales Organization. “As time passes, we are convinced that this is the new normal rather than a response to a tough economy.”