Hospitality Consulting Unleashed: A Journey to Redefine F&B for an International Brand
Introduction: Redefining the F&B Experience in a 5-star International Brand Hotel
Situated in the bustling center of Lisbon, Portugal, a prominent upper upscale 5-star hotel, proudly flying an international flag, faced a pressing challenge. Despite its prestige, the lobby, bar, and dining experiences failed to meet the expectations of both owners and management. The lobby lacked appeal, and the bar and restaurant struggled to attract and retain guests and locals.
To address these issues, Blueshift undertook a hotel consulting assignment with a clear goal: to develop a new concept and program for these key areas. This case study provides insights into the objectives, methodologies, and tangible outcomes of this collaborative effort, shedding light on how strategic hospitality consulting played a pivotal role in transforming the core spaces of this landmark hotel.
A Hotel Consulting Journey: From Assessment to Conceptualization and Business Planning
The hotel consulting project was organized into five distinct phases, as detailed below:
Phase 1: Assessment of Current Situation
In the initial phase, Blueshift conducted a comprehensive assessment of the existing F&B outlets. Scrutinizing everything from exterior and interior visibility to menu structure and pricing points, this critical analysis laid bare the strengths and weaknesses of the current offerings, providing a solid foundation for subsequent strategic planning.
Phase 2: Benchmarking Local Competition
Building on the internal analysis, Blueshift turned its gaze outward, benchmarking against 12 key local competitors. This meticulous comparative study evaluated location, brand positioning, trendiness, and more, offering invaluable insights into market dynamics and positioning strategies that would inform the impending redesign.
Phase 3: Design of New Concept
With a wealth of insights from internal assessments and benchmarking exercises, the third phase saw Blueshift diving into the creative realm. Analyzing trends, drawing lessons from case studies, and employing Blue Ocean Strategy frameworks, the team crafted a new lobby and F&B experience. This phase culminated in a collaborative workshop with the client’s management team to discuss different alternatives and fine-tune the agreed concept.
Phase 4: Detailing the New Concept
Transitioning from the conceptual to the tangible, Blueshift meticulously detailed the new concept for both the lobby and F&B outlets. This involved refining exterior and interior visibility, access points, layout, decor, staff uniforms, and culinary concepts, setting the stage for the physical manifestation of the envisioned changes.
Phase 5: Business Plan and Payback Analysis
In the final phase of the project, Blueshift developed the financial modeling of the project. Building a detailed business plan, the consulting team compared scenarios of implementing the new concept with the scenario of maintaining the status quo. The 10-year financial projections, in USALI format, including investment details, staffing plan, and other cost and revenue drivers, culminated in an analysis of key financial metrics, confirming the project’s viability and its financial return.
Strategy Unveiled: Pioneering a Revolutionary F&B Paradigm
In navigating the complexities of the consulting project, Blueshift engaged in extensive discussions with the Client’s management team and the board of directors. Two alternative strategies emerged as focal points for consideration, each bearing distinctive implications for guest experience, market target, investment, and operational costs.
The first alternative proposed a robust investment and marketing effort to position the hotel as a top-of-mind destination for both locals and visitors, emphasizing the creation of an enticing restaurant and bar experience. In contrast, the second alternative prioritized internal guests, envisioning a unique and seamless merger of the lobby, bar, and restaurant into a cohesive space. While both concepts held merit, Blueshift underscored the importance of a decisive choice. The recommendation emphasized the critical need to avoid the common pitfall of compromising and diluting impact by settling for a middle ground (“the Frankenstein trap”).
Upon the selection of one of the alternative strategies, Blueshift applied rigorous Blue Ocean Strategy frameworks to validate its innovativeness and disruptive potential. This strategic validation ensured that the chosen concept would carve out a distinctive market space, offering a unique value proposition.
Following this validation, Blueshift meticulously detailed the envisioned guest experience in the revitalized lobby and dining area. This encompassed the establishment of layouts, circulation, and seating arrangements, as well as the delineation of the all-day dining and chilling experience. Key directives were provided for menu structure and pricing across various outlets and meals. The conceptualization extended to defining the ambiance, interior design, and featuring decoration items, as well as outlining hosting, service, and uniform styles. To further elevate the guest experience, Blueshift introduced groundbreaking activation programs and established guidelines for technology and connectivity integration, among other essential elements.
Conclusion: Igniting Innovation in Established Excellence
In the realm of hospitality, even venerable, well established international brand hotels can embark on a journey of reinvention and value creation. The case of this consulting project with this landmark 5-star hotel in Lisbon exemplifies the immense potential for transformative change, provided one adopts an out-of-the-box mindset coupled with a spirit of disruption.
Blueshift embraced the challenge, delving into the project with the freedom to explore inventive solutions. Leveraging the principles of Blue Ocean Strategy and engaging in an interactive collaboration with the client team, the consulting endeavor unlocked a realm of possibilities. The liberty to think beyond convention and challenge established norms paved the way for groundbreaking strategies and concepts.
In this process, Blueshift not only reimagined physical spaces but also revolutionized the very essence of guest experience. The decision to prioritize a decisive alternative strategy, rather than settling for a compromise, underscored the commitment to creating a truly impactful and unique presence in the market.
The lesson learned from this consulting venture is clear: by fostering an environment that encourages innovation, creativity, and a disruption spirit, even the most established players in the industry can discover new avenues for growth and distinction. Blueshift’s collaborative and interactive approach, coupled with the application of strategic frameworks, showcases the potential for massive value creation.
Written by Filipe Santiago
February, 2024
