Annual hotel show fetes latest industry recovery

Nation's Restaurant News, Nov 22, 1993 by Theresa Howard

NEW YORK -- Showgoers at the 78th Annual International Hotel/Motel & Restaurant Show found everything they needed at the sprawling exhibit of new products and services, but before even stepping into the hall, most already had what they wanted--an uptick in business.

"In general, this is the best year Martha's Vineyard has had in six years," said Derkel Tipton, general manager of The Island Inn there. "Hopefully that is a sign of things to come."

Attendees combed the floor for new ideas, but like Tipton, many said the year had provided them with the most prized aspect of the restaurant business, more customers and sales. Operators reported that business is alive and well and living in their restaurants and hotels, but some cautioned that returning customers are more demanding than ever before.

"Customers want upscale items, but cost is important," said Michael Vasile, chef-owner of Vasile's Catering in Hunt, N.Y. "Things are lightening up, but we're taking it a little bit on the chin," he said about trying to meet the price expectations.

"You have to give them good stuff," said James Bellas, owner of Pazzo Inc. "Food costs are higher, and it's lower price points but you're doing the volume."

Bellas opened his restaurant only four months ago as one of the "few value-added" restaurants in Port Washington, N.Y., he said. The 72-seat restaurant tallies $12-per-person tickets and capitalizes on the hot trend of brick oven pizzas and pastas.

"Good portions for the money and a lot of variety," said James Sieminski, president of Silver Spoon Ltd., on how he addresses customer needs. Sieminski, whose year-old, 62-seat restaurant tallies per-person check averages of $20, features 41 entrees on his menu. However, he said he is optimizing food costs by offering numerous varieties of different products.

While operators new to the restaurant business have entered the market with a firm value plan in hand, others had to suffer through the recent period of sluggish sales and traffic dips. Hoteliers on the high end of the spectrum developed such solutions as new businesses and restaurant redesigns, and chain hotels, like Choice Hotels, began to build alliances with restaurant chains. Restaurant operators, meanwhile, downscaled, upscaled and sidescaled.

"Business is quite wonderful," said Nancy Smith, a partner in Homestead Inn., a 122-room inn with a 100-seat restaurant in Greenwich, Conn. "Things are definitely on the upswing after two years." When the downturn first hit, Smith said, she and her partner, Lessie Davison, embarked on a plan to draw executives for off-site meetings. "We started two years ago, but we have been much more aggressive about it."

At the Holiday Inn Crowne Plaza in White Plains, N.Y., a more contemporary menu is shifting the hotel's image. "Holiday Inn has never been known for its food products," said executive chef Matt Marchbanks. But a recent revamping to Mediterranean cuisine is helping to make the hotel a "destination," he said.

Choice Hotels, meanwhile, is adding foodservice as an integral part of its added value for customers. The Silver Springs, Md.-based hotel operator recently inked a deal with PepsiCo-owned Pizza Hut to push the brand in its hotel rooms.

"It is a way for our operators to service guests without being in the food and beverage business," explained John Haywood, director of research and development for Choice Hotels, whose 3,000 properties include the Comfort, Quality Clarion as well as Rodeway and EconoLodge brands.

Through Vrroom Service and the in-room materials that promote the concept, customers are directed to the nearest Pizza Hut outlet. "We would like to have a burger alliance, breakfast alliance and dine-in or family alliance," Haywood said.