Insights from a panel discussion hosted by James Hacon at the Future Hospitality Summit in Dubai
At the Future Hospitality Summit in Dubai, James Hacon, Managing Partner at Think Hospitality, hosted a thought-provoking panel with Christian Gradnitzer, VP of Business Development and International Operations at Recast, and Josh Craddock, Group Director of Marketing at EATX. The panel explored the provocative question: Why can’t hoteliers run restaurants? The discussion delved into the fundamental differences between the hotel and restaurant industries and the challenges that arise when these sectors converge.
The Unique Challenges of Hotel F&B
Christian and Josh shared their insights, drawing on their extensive experience in both the hotel and restaurant sectors. They both agreed that the core distinction between hotels and restaurants lies in their business models. Hotels are primarily focused on maximizing occupancy, average daily rates (ADR), and stay durations. In contrast, restaurants are driven by the creation of exceptional, community-driven experiences that extend beyond just food service.
Christian highlighted how, historically, hotels treated food and beverage as secondary to their primary business of room sales. However, in recent years, this mindset has shifted, with food and beverage now playing a pivotal role in attracting guests and contributing to the hotel’s overall appeal. Despite this shift, he pointed out that hotel operations remain largely siloed, and the rigid structures often hinder the flexibility needed to run a successful restaurant business.
Restaurants’ Agility vs. Hotels’ Bureaucracy
A major point of consensus between the panelists was the agility that restaurants have over hotels. Christian and Josh both agreed that restaurants can move quickly, adjusting menus, price points, or concepts on the fly—something that is often restricted in the hotel world due to layers of bureaucracy and slower decision-making processes. Josh, who has experience both in hotels and now at EX, noted that this agility allows restaurants to remain relevant and dynamic, responding to customer needs and market changes with much more ease than hotel F&B teams can.
Josh also discussed how hotels focus primarily on commercial value—maximizing occupancy and ADR—while restaurants prioritize creating unique experiences. For restaurants, customer experience is at the heart of their business model, while hotels often find that food and beverage offerings take a backseat to more commercial goals.
Creating Distinct Restaurant Brands within Hotels
The panelists agreed that one of the best ways for hotels to succeed in food and beverage is to allow restaurants within their properties to operate as independent brands. Christian and Josh both stressed that for restaurants to thrive, they need the freedom to innovate, develop their own branding, and focus on creating exceptional guest experiences without the constraints of hotel operations.
Josh emphasised that successful hotel-restaurant collaborations occur when hotel operators allow restaurant teams the autonomy to operate as if they were standalone businesses. This means treating the restaurant as a distinct entity with its own P&L, marketing strategy, and talent management approach, which will enable it to succeed and bring value to the overall hotel offering.
The Future of Hotel-Restaurant Collaborations
While acknowledging the challenges, the panellists discussed the potential for successful collaborations between hotels and restaurants. The key is recognizing that restaurants bring more than just food—they inject energy, atmosphere, and a unique identity into a hotel, enhancing the entire guest experience.
Christian pointed to successful partnerships, such as those between Recast and Nismo, where hotels and restaurants collaborate to create innovative new concepts. These partnerships allow both sectors to complement each other, benefiting from the strengths each brings to the table. As the hospitality industry evolves, Christian believes the future of hotels and restaurants lies in a deeper integration of food and beverage into the hotel experience, but with a clear understanding of the distinct needs of each business.
Conclusion
The panel discussion, hosted by James Hacon at the Future Hospitality Summit, highlighted the growing divide between hotel and restaurant business models, each with its own approach to operations and success. While hoteliers have increasingly recognized the value of food and beverage, the key takeaway from Christian Gradnitzer and Josh Craddock’s insights was that restaurants need independence and flexibility to thrive. As the industry continues to evolve, the integration of strong, standalone restaurant concepts into hotels will be essential. However, it requires a shift in mindset and a willingness to treat restaurants as unique entities with their own operational needs.
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