Article
How a hotel became a hot fast casual concept
Marriott transformed its Courtyard food and beverage offerings away from the traditional buffet into a new fast casual format, resulting in a 27-percent jump in guests' intent to recommend and return.
November 18, 2014 by Brenda Rick Smith — Editor, Networld Media Group
Just how influential is the fast casual concept?
Influential enough to influence the overhaul of the food and beverage service of one of the world's largest hotel brands.
Lon Southerland, then senior director of Global Food and Beverage for Marriott International, led the hospitality giant to overhaul the food and beverage offerings and lobby design of its Courtyard by Marriott brand. The rollout of Courtyard by Marriott's Bistro concept started in 2008, and by the end of 2013, 92 percent of the hotel's properties had undergone the transformation.
The Courtyard Bistro "coffee house meets open kitchen" concept features ready-to-go food, quickly-prepared hot entrees and Starbucks beverages throughout the day, and cocktails and light food in the evenings.
The transformation away from the hotel industry's traditional buffet-style food and beverage area in the lobby to the Bistro concept has resulted in a 27-percent increase in guests' intent to recommend and intent to return to Courtyard, Southerland told attendees during his keynote address at the recent Fast Casual Executive Summit. The change is also credited with a lift in room rates across Courtyard properties that feature the Bistro concept.
"It certainly activates the space. If you walk into a Courtyard now, instead of a vacant lobby with one person at the front desk and a bunch of empty coffee carafes you actually see people hanging out and enjoying the space," said Southerland.
The transformation also earned Marriott's Courtyard Bistro a spot on the 2014 Fast Casual Top 100 Movers and Shakers, a first for a hotel brand.
The rapid adoption rate – at one point, a new Bistro was being opened nearly every day – also made it one of the fastest growing fast casual concepts. Enthusiastic guest reception of the Bistro concept went a long way toward convincing franchise owners that renovating their lobbies with the new model would be worth it.
Keeping customers at their home-away-from-home
The transformation was prompted when Marriott noticed its Courtyard customers were skipping the traditional lobby buffet to go to local Starbucks cafes. The guests were in search of better food and a better atmosphere, said Southerland.
The traditional lobby wasn't connecting with Courtyard's customers, who are typically business travelers who want a place where they can be productive and connected. Courtyard customers have upscale tastes and are technologically savvy, said Southerland, and they seek balance and control.
Marriott turned to focus groups for a deeper understanding of what its customers wanted.
"We really understood from our customers what they expected from us, what they wanted from us, what was important," said Southerland.
Based on what it learned from focus groups, Marriott built a prototype of its re-imagined lobby and bistro area out of foam core in a warehouse in California. It brought in frequent hotel guests and asked them what they thought. Based on their feedback, Marriott tweaked the foam core model until it was ready to build a real prototype in one of its properties.
As a result of due diligence, said Southerland, Marriott got about 90 percent of the way to its final product while still in the prototype phase.
Marriott continued to listen to its customers, even after launch, said Southerland, making more adjustments along the way. For instance, it learned that the footprint and menu needed tweaking based on the size and context of each property, so it developed flexible models that could be adjusted.
Seeking healthier options
A big part of the transformation was a total revamp of Courtyard's food and beverage offerings. Marriott looked for ways to maximize ingredients across a wide range of menu items. This cut down on the inventory that needed to be managed, while keeping the menu choices plentiful.
One of the challenges facing Marriott was that its traditional buffet wasn't perceived as offering healthy options.
Southerland tapped into his own personal desires and lifestyle to inform the brand's new focus on health. He was strongly influenced by the movie "Forks over Knives" which highlights the health benefits of plant-based diets over animal-based diets.
"Healthy food options really spoke to me," said Southerland, and healthy options are also on-trend with the millennials who make up part of Courtyard's customer base.
In addition to changing up menu offerings to include items such Orchard Salad and Egg White Frittata, the Bistro began printing calorie counts on menus starting in 2010, long before it was mandated by the government. While ordering habits didn't necessarily change, said Southerland, the brand's perception as "healthy" increased.
If you can't beat 'em, partner with 'em
Southerland – who previously held a position with Starbucks – recognized the power of the coffee giant and the potential in leveraging that power through a partnership.
Courtyard is part of Starbucks' "We Proudly Serve" program. That means Courtyard Bistros get training and other support from Starbucks, and also get to benefit from the power of Starbucks' marketing efforts and ability to offer attractive seasonal beverages, such as the wildly popular Pumpkin Spice Latte.
But co-branding with a premium brand isn't always an easy sell. Southerland consulted with one property in Nashville that wanted to partner with Starbucks, but thought it was too expensive to be profitable.
Southerland ran the numbers, and discovered the property would need to sell just 13 more beverages a day to make it work. The property ended up increasing sales from 350 beverages a day to 580 beverages a day – a 65 percent increase – thanks to the power of the Starbucks brand and some additional staff training.
"That's an example of where co-branding can really elevate a brand and carry that story forth," said Southerland.
A destination
Not only are guests enjoying the Bistro, the space is attracting non-guests, too.
Southerland was on a property one day when he noticed a group of women in tennis skirts gathered around a table in the Bistro. The sight was odd, because the property did not have a tennis court. Southerland realized that the women had played tennis elsewhere, then decided to come to the Courtyard Bistro for an after-set snack.
It was a far cry from the time a few years ago when Courtyard lobbies were ghost towns that guests skipped for more attractive options.
"Without taking informed risks you will, perchance, miss the opportunity to transform an existing market, create a new one, or otherwise disrupt the landscape and change the game for the better," Southerland said.
About Brenda Rick Smith
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