Case Study – Revitalizing a Hotel Restaurant: A Blueprint for Enhanced Profitability

In 2009, a chic Art-Deco styled restaurant with 120 seats and a central bar opened in Brussels, becoming a city hotspot due to its prime location and strong media promotion. Initially, the restaurant thrived, with two meal shifts and an annual revenue of €9M. Payroll costs were just 29% of the revenue, and other expenses were only 6.4%.

However, after six years, the restaurant’s appeal waned, and competition with newer establishments led to a decline in volume and profit. By 2018, the departmental profit had plummeted to just 32% of its peak in 2010.

Recognizing the problem, an experienced Asset Manager collaborated with the Operator to address the negative feedback about the outdated furniture and ambiance. Mystery guest checks and competitor analysis confirmed the need for refurbishment. The Owner, initially resistant, was persuaded by a detailed ROI analysis and professional renders.

Upon approval, the project was meticulously planned, ensuring timely furniture delivery and minor works completion. The marketing department developed a comprehensive plan, including a SWOT analysis and the outlet’s new identity. Live events were introduced to diversify the product, and a renowned external company was hired for social media promotion, resulting in significant pre-opening reservations.

The structured approach and reliance on expert input led to a tripling of the outlet’s profit within a year, despite not reaching the same volume of covers due to increased competition. The average spend per customer rose by 12%, enhancing both the Owner’s earnings and the Operator’s fees, demonstrating the impact of professional asset management.

Case Study – Revitalizing a Hotel Restaurant: A Blueprint for Enhanced Profitability