10 Reasons Why Hotels Struggle with F&B And What’s Holding Them Back

Hotel restaurants, bars and breakfast offerings are a key driver of guest decision making when booking a stay, so why do so many properties still have poor or underwhelming F&B offerings? 

Given its importance in driving not just revenue, but also reputation, guest satisfaction and long-term brand equity we outline the top 10 reasons why hotels struggle with F&B. 

The Quick List  

• Chasing Room Revenue While F&B Gets Sidelined

• No One Wants to Invest in Something That’s Already Struggling

• Turning Down Small Wins While Waiting for the Big Ones

• Quick Fixes Are Not a Strategy

• Talented Teams Are Leaving for Better Pay and Purpose

• The Cost of Playing It Safe

• Designed Like a Lobby, Not A Place to Dine

• Teams Are Built to Manage, Not Challenge

• Great Food, Awkward Experience

• You Can’t Market What You Haven’t Defined

1. Chasing Room Revenue While F&B Gets Sidelined 

Too many hotels continue to prioritise REVPAR (Revenue Per Available Room) as the primary performance metric, without considering the broader commercial potential captured in TREVPAR (Total Revenue Per Available Room).  

This narrow focus often results in Food & Beverage being undervalued, with restaurants, bars and other F&B outlets within a complex seen merely as a support function for room sales rather than a strategic revenue driver in its own right. 

Take inclusive breakfasts, for example. These are frequently booked internally at cost to make room packages more appealing. While they may lift ARR (Average Room Rate) or boost perceived value on paper, the reality is they can put significant strain on F&B operations and margins.  

Executive lounges suffer a similar fate, offering high-cost services that are rarely offset by incremental spending. Over time, this approach not only erodes profitability but also stifles innovation and creativity within the F&B department, reducing its ability to surprise, delight and differentiate. 

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2. No One Wants To Invest In Something That’s Already Struggling 

For hotel F&B to truly succeed, it requires meaningful upfront investment across interior design, concept development, operations and talent.  

Guests today are discerning, and subpar outlets simply don’t cut it. Yet many owners remain reluctant to invest in venues that are already underperforming, viewing them as cost centres rather than growth opportunities. 

This creates a vicious cycle. Without investment, there’s no improvement. And without improvement, there’s no return. Stagnant venues continue to underdeliver, further justifying the lack of support.  

Meanwhile, competitors who take a bolder and more strategic approach pull ahead, capturing market share, PR coverage, consumer attention and guest loyalty that might otherwise have been within reach. And the time budgets are finally approved, the opportunity has often passed for late-movers. 

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3. Turning Down Small Wins While Waiting for the Big Ones 

Hotels frequently turn down smaller, one-off event enquiries such as weddings, private dinners, or product launches, in the hope of securing larger, high-value corporate bookings. But these big-ticket bookings are often slow to materialise, if they come through at all. In the meantime, valuable event space sits idle. 

This overly selective approach can lead not only to lost revenue but also missed opportunities to build long-term community relationships and guest loyalty. These smaller events often act as powerful brand touchpoints, introducing new audiences to the property and driving future stays, word-of-mouth and repeat business. 

Equally, while room inventory is revenue-managed with precision, event spaces, particularly MICE (Meetings, Incentives, Conferences, and Exhibitions), are often under-optimised, with inconsistent pricing models and limited forecasting.  

The result? Untapped potential and serious revenue left on the table. 

4. Quick Fixes Are Not a Strategy 

New uniforms. Updated tableware. A seasonal dessert special. These kinds of surface-level changes may feel productive, even exciting in the short term. But without a clear, cohesive vision guiding them, they often have very little impact on the big picture. 

What truly builds a lasting F&B identity is consistency, originating from the core F&B concept and strategy and delivered across every touchpoint, from physical brand collateral to digital marketing and communications. 

Guests might not consciously notice when the F&B concept lacks alignment, but they’ll feel the disconnect. It shows up in the mood, the menu, the music, and the overall message. When these elements are disjointed, the experience feels flat or forgettable. 

Great hotel F&B concepts succeed because everything works in harmony, from the storytelling behind the dishes to the lighting in the dining room. Without cohesion, even well-intentioned upgrades are just cometic. 

Learn More About the World of OS&E in Our Q&A with TGP Brand Development Director 

5. Talented Teams Are Leaving for Better Pay and Purpose 

Talent is the foundation of any successful F&B operation, yet in many hotels, it remains one of the most undervalued assets. Front-of-house and kitchen staff are often paid significantly less than their counterparts in independent restaurants, with limited access to training, mentorship, or clear pathways for progression. 

Even when strong leadership is brought in, such as a capable manager or head chef with fresh ideas, the average tenure is often short. Six months spent learning the system, a year managing under constraints, and another six months planning their exit.  

The result can sometimes be a revolving door of leadership that makes it nearly impossible to implement long-term strategies, sustain cultural change, or build high-performing teams. 

Without investment in people, not just recruitment, but retention and growth, hotel F&B will continue to fall behind more agile, talent-driven competitors in the independent sector. 

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6. The Cost of Playing It Safe 

Buffets are safe. Predictable menus are easy to manage. But today’s guests are looking for more than just convenience, they crave experiences that are memorable, locally inspired and visually shareable. They want to feel a sense of place and personality in what they eat, not just fuel for the day. 

When operational efficiency drives every decision, creativity and innovation often get deprioritised. And although standardisation may keep costs in check, it rarely sparks excitement or emotional connection. In a competitive market flooded with choice, forgettable F&B is a missed opportunity. 

If your concept doesn’t stand for something—if it doesn’t tell a story, evoke curiosity, or offer a unique point of view—it risks being overlooked. Playing it safe is often the biggest risk of all. 

7. Designed Like a Lobby, Not A Place to Dine

Too often, hotel restaurants are designed by the same teams responsible for guest rooms, teams that prioritise efficiency, uniformity and brand standards over atmosphere and experience.  

The outcome? Spaces that are functional, but ultimately forgettable. 

F&B requires a different lens. These spaces aren’t just about flow and layout, they’re about evoking emotion, telling a story and creating a reason to linger. A well-designed restaurant or bar can become a destination in its own right, drawing in not just hotel guests, but locals and visitors alike. 

Good design invites people in. It sparks curiosity, encourages dwell time and supports the brand’s identity through every detail.  

Generic design, on the other hand, may tick operational boxes, but it rarely leaves a lasting impression. And in hospitality, that’s the difference between a venue guests talk about and one they walk past. 

8. Teams Are Built to Manage, Not Challenge 

Many hotel F&B teams are structured to maintain the status quo, not to drive transformation.  

General Managers and F&B Directors are often incentivised around short-term performance metrics (daily covers, cost control, monthly revenue targets), leaving little room or motivation to rethink what’s truly possible. 

Layer onto this a hiring culture that often prioritises speed and quantity over fit and potential, and you end up with teams that are underprepared for today’s demands.  

And when onboarding is often focused on compliance rather than culture and training that is not designed to build creativity, leadership or innovation, the result can be an operation that runs but rarely evolves. 

To create standout F&B with teams that can not only execute the basics but also have shared vision, strategic capability, and energy to lead hotels must invest in people not just as operators, but as changemakers. 

9. Great Food, Awkward Experience 

From clashing cuisines to awkward access routes, many hotel outlets simply don’t feel intuitive.  

Ambience, too, can often miss the mark, shaped more by internal preferences than a clear understanding of guest expectations. 

But dining is emotional. Guests respond to mood, detail, and coherence. Every touchpoint, from the entrance experience to the lighting design, should contribute to a seamless story.  

When thoughtfully considered, these elements elevate a meal into a memorable moment. 

10. You Can’t Market What You Haven’t Defined 

It’s incredibly difficult to market generic or vanilla F&B concepts. Yet in many hotels, F&B brands still lack a distinct identity, consistent digital presence, or dedicated marketing support.  

The result is an offering that struggles to stand out, even when the product itself has potential. When F&B is treated purely as an amenity rather than a brand in its own right, it’s difficult to generate lasting momentum. 

On the other hand, when your brand has a clear voice and visibility in the market, it then becomes possible to connect with both in-house guests and the local community.  

Learn About TGP’s F&B Marketing and Brand Management Services 

So What Makes a World-Class Hotel F&B Concept? 

Great hotel F&B doesn’t happen by accident. It’s the result of deliberate choices, strategic design, and consistent execution, all anchored by a world-class concept at the core. Whether you’re building from scratch or revitalising an existing venue, these are the elements we believe set standout concepts apart: 

1. Personality – Not following gimmicks or fads; a concept must have a unique, customer-focused and authentic personality, with global and local trend lines in mind. 

2. Clear Positioning – An understanding of a defined and suitable service style, whether it's up-scale, casual or bistro. 

3. Great F&B – Crave-able, beautifully presented food and drink, delivered with consistency. 

4. Interior Design – Exciting, sensory design with visual anchors and customer journeys that are commercially and operationally sound. 

5. Strategic Branding & Detailing – A cohesive visual language that tells the story through graphics, signage, tableware, uniforms and playlists. 

6. Atmospherics – A sensory-rich environment—lighting, temperature, acoustics—that encourages guests to stay longer and spend more. 

7. Customer Focused – From warm welcomes to check-backs and return invites, every guest should leave feeling better than when they arrived. 

8. Strong Leadership – Relentless focus on concept execution, every day. No plain vanilla. 

9. Marketing – Concept-led campaigns that drive awareness, connection and loyalty across all touchpoints. 

10. Selfishly Desirable – A place we all genuinely want to hang out in. 

Need support? Whether you're looking to reimagine your existing outlets, launch a new concept, or place a proven brand within your property, we can help you unlock the full potential of your hotel F&B strategy.