Bengaluru Luxury and Upscale Hotels Food and Beverage Performance

Half Year 2024 – (January to June)

Insights and Analysis from Compset Vision Technosoft Private Limited?

Revitalizing Bangalore's F&B Scene: Key Insights and Trends

The first half of 2024 has been a transformative period for the Food & Beverage sector within Bangalore's Luxury and Upscale hotels. As the city emerges stronger and more vibrant, the F&B outlets have witnessed a remarkable resurgence driven by innovative offerings and a renewed sense of consumer confidence. This report delves into the key performance metrics and emerging trends that are shaping the culinary landscape of Bengaluru (Bengaluru (Bangalore)), while also comparing these insights with previous years' performance.

?Dissecting Performance - The Heartbeat of Hospitality

?2024 H1 Highlights:

• Occupancy Rates: Exceptional growth, with Coffee Shops achieving an 81% occupancy rate, reflecting a 4% increase from H1 2023. Banquets held steady at 19%, underscoring their enduring popularity.
• Average Per Cover (APC): Significant rises in APC, particularly in Banquets (11%) and Bars (12%), indicating a shift towards premium dining experiences.
• Revenue per Available Seat (RevPas): Robust increases, with Coffee Shops and Banquets leading the way with 12% and 9% growth, respectively.
• Average Revenue: The F&B sector's total average monthly revenue soared by 9%, averaging an impressive INR 4.72 Cr per month.

Unpacking the Performance - A Detailed Analysis

Occupancy Dynamics:

The first half of 2024 saw vibrant occupancy rates across all F&B outlets. The Coffee Shop, a perennial favourite, fortified its position with an impressive 81% occupancy, reinforcing its role as the social and networking nucleus of the hotel. Banquets maintained a steady occupancy rate at 19%, highlighting the continuous demand for event hosting.

APC and RevPas Metrics:

• Banquets: The Banquet space, reimagined through innovative offerings, capitalized on the renewed demand for social gatherings, reflected in a significant 11% increase in APC and a 9% rise in RevPas.
• Coffee Shop: The Coffee Shop experienced a 6% increase in APC and a 12% boost in RevPas, further solidifying its popularity.
• Indian Specialty Restaurant: Indian outlets saw a 6% increase in APC, reaching INR 3047, with a steady RevPas of INR 987, despite a slight dip in occupancy.
• Pan Asian Restaurant: The Pan Asian segment captured diners' imaginations with an APC rise of 4%, contributing to a stable RevPas of INR 845.
• In-Room Dining (IRD): IRD maintained stable occupancy at 8%, with a 2% increase in APC and RevPas, indicating consistent demand for private dining.
• Bar: The Bar segment saw a 12% increase in APC and a 6% rise in RevPas, indicative of a growing preference for leisure dining experiences.

Revenue Growth Analysis:

The first half of 2024 painted a picture of remarkable revenue growth across all outlets. Banquets, Coffee Shops, and Bars were the standout performers:

• Banquets: Revenue increased by 9% to INR 2.26 Cr per month., reflecting its dominance in the F&B landscape.
• Coffee Shop: Revenue surged by 12% to INR 95.28 lacs per month, underscoring its role as a central gathering place.
• Indian Specialty Restaurant: Despite a slight dip in occupancy, revenue grew by 3% to INR 47.11 lacs per month, driven by the steady appeal of authentic Indian cuisine.
• Pan Asian Restaurant: Revenue remained stable at INR 46.40 lacs per month, reflecting a consistent demand for Pan Asian offerings.
• In-Room Dining (IRD): Revenue saw a modest increase of 1% to INR 20.72 lacs, highlighting its role in providing personalized dining experiences.
• Bar: Revenue grew by 2% to INR 35.84 lacs, highlighting its appeal for evening and social gatherings.

Comparison with Previous Years:

When comparing the performance of H1 2024 with previous years (H1 2023 and H1 2022), the following trends emerge:

• Occupancy Rates: The overall occupancy rate increased by 1% from H1 2023 to H1 2024. In contrast, H1 2023 had seen a larger recovery jump of 5% from H1 2022 as the market emerged from the pandemic.
• APC: The APC has consistently grown year-over-year, with an increase of 7% from H1 2023 to H1 2024, compared to a 10% rise from H1 2022 to H1 2023.
• RevPas: RevPas showed strong growth of 9% from H1 2023 to H1 2024, following a 15% increase from H1 2022 to H1 2023, reflecting continued consumer willingness to spend on premium dining experiences.
• Revenue: Average monthly revenue increased by 9% from H1 2023 to H1 2024, after a significant 20% increase from H1 2022 to H1 2023, indicating a steady growth trajectory.

?Evolving Dining Preferences:

The data further elucidates a shift in dining preferences, where the splendor of Pan Asian cuisine captured the imagination and appetite of guests, contributing a 4% increase in average revenue. Meanwhile, Indian outlets, despite a slight dip in occupancy, held steady in their revenue contributions, underscoring the enduring appeal of authentic culinary offerings.

Contribution Mix Analysis:

• Banquets: Accounted for 48% of the total F&B revenue in 2024, up from 47% in 2023, indicating a strong preference for event hosting.
• Coffee Shop: Contributed 20%, a slight increase from 19% in the previous year, reflecting its role as a social hub.

• Indian and Pan Asian Restaurants: Both held steady at around 10-11%, showing consistent demand for diverse culinary experiences.
• In-Room Dining (IRD): Contribution remained stable at 4%, highlighting steady demand for private dining.
• Bar: Contributed 8%, consistent with the previous year, underscoring its popularity for leisure dining.

We further drill down into 6 major food and beverage outlets listed below along with a bird’s eye view of the total F&B performance –

1.???? Banquets

2.???? Coffee Shop

3.???? Indian

4.???? Pan Asian

5.???? Bar

6.???? IRD

7.???? Total Food & Beverage

Banquets Performance Analysis - H1 2024

Banquets: Where Celebrations Happen

The first half of 2024 has been fantastic for Banquets in Bangalore's Luxury and Upscale hotels. Here's the lowdown on how things went:

Big Wins:

• Steady Crowd: Banquets kept a steady occupancy rate of 19%. People love celebrating here!
• More Spending: The average spending per guest (APC) went up by 11%, hitting INR 2740. This means people are splurging more!
• Seat Value: Revenue per available seat (RevPas) grew by 9%, reaching INR 510. More money from each seat!

Monthly Highlights:

• February: This was the star month! Revenue shot up by 18%, and people spent more per cover, pushing APC up by 18%.
• May: Another great month with a 14% revenue boost and a 14% rise in APC. Events were a hit!

Breaking Down the Money:

• Breakfast: Made INR 11.77 lakh monthly on average, up by 5%.
• Lunch: Big winner here with INR 64.34 lakh, a whopping 43% increase!
• Dinner: Steady but slightly down, making INR 1.55 crore monthly.

When They Dine:

• Lunch Love: Lunch events are booming, with a 30% share, up 7%.

• Dinner: Still the biggest, but down to 65%, a drop of 7%.

What's Popular:

• Food: 75% of the revenue came from food, staying strong.
• Beverages: Drinks accounted for 12%, a tiny dip from last year.
• Other Services: Other revenue made up 13%, up from 11%.

Compared to Last Year: Steady Guests: Occupancy stayed the same at 19%.

• Spending More: APC grew by 11%, showing people are willing to spend more.
• Seat Earnings: RevPas up by 9%, more earnings per seat.
• Revenue Rise: Monthly revenue jumped by 9%, especially strong in February and May

Day-of-the-Week Performance:?

• Weekdays: Steady with 38 breakfast covers, 121 lunch covers, and 169 dinner covers. APC was INR 1410 for breakfast, INR 2326 for lunch, and INR 3366 for dinner.
• Weekends: Moderate with 24 breakfast covers, 115 lunch covers, and 186 dinner covers. APC was INR 1277 for breakfast, INR 2259 for lunch, and INR 3170 for dinner.

In a Nutshell:

Banquets are rocking it in 2024! With steady guests, higher spending, and growing revenue, Banquets continue to be the go-to place for celebrations and events in Bangalore's Luxury and Upscale hotels.

Coffee Shop Performance Analysis - H1 2024

Coffee Shop: The Buzzing Hub

The first half of 2024 has been a buzz for Coffee Shops in Bangalore's Luxury and Upscale hotels. Let's dive into the highlights:

Big Wins:

• Packed House: Occupancy soared to 81%, up 4% from last year. February was a standout month with 86% occupancy!
• More Spending: Guests are spending more, with APC at INR 989, a 6% rise from 2023.
• Seat Value: RevPas climbed to INR 805, marking a 12% increase.

Monthly Highlights:

• February: Revenue hit nearly INR 1 crore, with guests spending and staying more. Occupancy was at an impressive 86%.
• June: Closed strong with revenue of INR 96.69 lakh, and APC at INR 951.

Breaking Down the Money:

• Breakfast: Pulled in INR 32.9 lacs, a 43% jump from last year.
• Lunch: Despite a slight dip of 2%, still strong at INR 26.8 lacs.
• Dinner: Consistently robust at INR 35.5 lacs, up 3%.

Dining Preferences:

• Breakfast: Accounts for 35%, up by 7%.
• Lunch: Holds 28%, stable.
• Dinner: Strong at 37%, consistent with last year.

What's Popular:

• Food: Dominates with 90% of the revenue.
• Beverages: Contributed 10%, down slightly.

Compared to Last Year:

• More Guests: Occupancy up by 4%.
• Higher Spending: APC increased by 6%.
• Seat Earnings: RevPas up by 12%.
• Revenue Surge: Total revenue up by 12%.

Day-of-the-Week Performance:

• Weekdays: High traffic with 249 breakfast covers, 58 lunch covers, and 75 dinner covers. APC was INR 537 for breakfast, INR 1490 for lunch, and INR 1998 for dinner.
• Weekends: Busy with 227 breakfast covers, 77 lunch covers, and 73 dinner covers. APC was INR 548 for breakfast, INR 1713 for lunch, and INR 1749 for dinner.

In a Nutshell:

Coffee Shops are thriving with more guests, higher spending, and growing revenue. A great place for socializing and networking!

Indian Specialty Restaurant Performance Analysis - H1 2024

Indian Cuisine: Authentic and Inviting

The first half of 2024 has seen steady performance for Indian Specialty Restaurants in Bangalore's Luxury and Upscale hotels. Here's what stood out:

Big Wins:

• Steady Flow: Occupancy held at 32%, consistent with last year.
• Spending Up: APC rose to INR 3047, up by 6%.
• Seat Value: RevPas at INR 987, a 3% increase.

Monthly Highlights:

• February: Saw the highest occupancy at 36% and APC at INR 3280.
• June: Strong finish with RevPas at INR 1004.

?Breaking Down the Money:

• Breakfast: Contributed INR 1.3 lakh, stable but a small segment.
• Lunch: Solid at INR 40.85 lakh, driven by consistent demand.
• Dinner: Major contributor at INR 2.40 crore.

Dining Preferences:

• Lunch: Steady at 14%.
• Dinner: Dominates at 85%.

?What's Popular:

• Food: Makes up 70% of revenue.
• Beverages: Holds at 30%.

Compared to Last Year:

• Stable Guests: Occupancy almost unchanged.
• Higher Spending: APC up by 6%.
• Seat Earnings: RevPas rose by 3%.
• Revenue Growth: Total revenue increased by 3%.

Day-of-the-Week Performance:

• Weekdays: Regulars with 9 lunch covers, and 49 dinner covers. APC was INR 2575 for lunch, and INR 3505 for dinner.
• Weekends: Weekend delight 14 lunch covers, and 51 dinner covers. APC was INR 2371 for lunch, and INR 2698 for dinner.

In a Nutshell:

Indian Specialty Restaurants are maintaining their charm with steady guests and growing spending, making them a popular choice for authentic culinary experiences.

Pan Asian Restaurant Performance Analysis - H1 2024

Pan Asian Delights: Exotic and Exquisite

The first half of 2024 has been flavourful for Pan Asian Restaurants in Bangalore's Luxury and Upscale hotels. Here's the scoop:?

Big Wins:

• Consistent Crowds: Occupancy at 25%, steady with last year.
• More Spending: APC rose to INR 3409, up by 4%.
• Seat Value: RevPas at INR 845, a slight 2% increase.

Monthly Highlights:

• February: Highest APC at INR 3577 and occupancy at 29%.
• June: Consistent performance with revenue at INR 45.13 lakh.

Breaking Down the Money:

• Breakfast: Small but growing at INR 5.6 lakh.
• Lunch: Significant contributor at INR 59.27 lakh.
• Dinner: Major revenue driver at INR 2.13 crore.

Dining Preferences:

• Lunch: Steady at 21%.
• Dinner: Dominates at 77%.

?What's Popular:

• Food: 70% of revenue.
• Beverages: 30%, consistent.

Compared to Last Year:

• Steady Guests: Occupancy almost unchanged.
• Higher Spending: APC up by 4%.
• Seat Earnings: RevPas slightly increased by 2%.
• Revenue Growth: Total revenue up by 1%.

Day-of-the-Week Performance:

• Weekdays: Popular with 11 lunch covers, and 36 dinner covers. APC was INR 2845 for lunch, and INR 3929 for dinner.
• Weekends: Favourite choice with 20 lunch covers, and 43 dinner covers. APC was INR 2581 for lunch, and INR 3184 for dinner.

In a Nutshell:

Pan Asian Restaurants are delighting guests with consistent occupancy and growing spend, making them a favourite for exotic cuisine.

Bar Performance Analysis - H1 2024

Bar: Cheers to Good Times

The first half of 2024 has been lively for Bars in Bangalore's Luxury and Upscale hotels. Here's a toast to the highlights:

Big Wins:

• Good Crowd: Occupancy at 29%, slightly down but still strong.
• More Spending: APC at INR 2465, up by 12%.
• Seat Value: RevPas at INR 702, a 6% increase.

Monthly Highlights:

• February: Best month with APC at INR 2594 and occupancy at 33%.
• June: Consistent with revenue at INR 33.45 lakh.

Breaking Down the Money:

• Breakfast: Small but present at INR 1.61 lakh.
• Lunch: Significant at INR 33.96 lakh.
• Dinner: Major revenue source at INR 1.79 crore.

Dining Preferences:

• Lunch: Steady at 16%.
• Dinner: Dominates at 83%.

?What's Popular:

• Food: 35% of revenue.
• Beverages: 64%, highlighting the bar's strength.

Compared to Last Year:

• Steady Crowds: Occupancy slightly down by 2%.
• Higher Spending: APC up by 12%.
• Seat Earnings: RevPas up by 6%.
• Revenue Growth: Total revenue increased by 2%.

Day-of-the-Week Performance:

• Weekdays: Regular buzz with 10 lunch covers, and 40 dinner covers. APC was INR 1762 for lunch, and INR 2805 for dinner.
• Weekends: Lively with 17 lunch covers, and 49 dinner covers. APC was INR 1660 for lunch, and INR 2543 for dinner.

In a Nutshell:

Bars are thriving with higher spending and strong revenue, making them the go-to spot for leisure and social gatherings.

In-Room Dining (IRD) Performance Analysis - H1 2024

In-Room Dining: Cozy and Convenient

The first half of 2024 has been steady for In-Room Dining in Bangalore's Luxury and Upscale hotels. Here’s the comfortable breakdown:

Big Wins:

• Consistent Demand: Occupancy stable at 8%.
• Steady Spending: APC at INR 1139, up by 2%.
• Seat Value: RevPas at INR 92, a 2% increase.

Monthly Highlights:

• May: Highest revenue at INR 22.79 lakh.
• June: Strong finish with APC at INR 1142.

Breaking Down the Money:

• Breakfast: Contributed INR 18 lakh, consistent.
• Lunch: Stable at INR 33.90 lakh.
• Dinner: Major contributor at INR 72.41 lakh.

Dining Preferences:

• Lunch: Steady at 27%.
• Dinner: Dominates at 58%.

?What's Popular:

• Food: Dominates with 85% of the revenue.
• Beverages: 14%, stable.

Compared to Last Year:

• Steady Guests: Occupancy unchanged.
• Slightly Higher Spending: APC up by 2%.
• Seat Earnings: RevPas increased by 2%.
• Revenue Growth: Total revenue up by 1%.

Day-of-the-Week Performance:

• Weekdays: Consistent with 13 breakfast covers, 24 lunch covers, and 40 dinner covers. APC was INR 1138 for breakfast, INR 925 for lunch, and INR 1235 for dinner.
• Weekends: Stable with 9 breakfast covers, 21 lunch covers, and 34 dinner covers. APC was INR 866 for breakfast, INR 1027 for lunch, and INR 1340 for dinner.

In a Nutshell:

In-Room Dining is holding steady with consistent demand and slight increases in guest spending, making it a reliable option for guests seeking convenience and comfort.

Total F&B Performance Analysis - H1 2024

Total F&B: A Comprehensive Look

The first half of 2024 has shown strong performance across all F&B outlets in Bangalore's Luxury and Upscale hotels. Here's the complete overview:

Big Wins:

• More Guests: Occupancy increased to 26%, a 1% rise from last year.
• Higher Spending: APC climbed to INR 1849, up by 7%.
• Seat Value: RevPas grew to INR 479, a 9% increase.
• Revenue Surge: Total revenue hit INR 25.92 crore, up by 9%.

Monthly Highlights:

• February: Record-breaking revenue of INR 4.82 crore, with the highest occupancy at 30%.
• June: Strong end with revenue of INR 4.39 crore and APC at INR 1867.

Breaking Down the Money:

• Breakfast: Significant growth, with revenue at INR 4.97 crore, up by 28%.
• Lunch: Major contributor at INR 11.56 crore, a 22% increase.
• Dinner: The largest segment, with revenue at INR 16.03 crore, up by 2%.

Dining Preferences:

• Breakfast: Increased to 11%.
• Lunch: Strong growth to 27%.
• Dinner: Steady at 62%.

What's Popular:

• Food: Dominates with 74% of the revenue.
• Beverages: Stable at 19%.
• Other Services: Contributed 7%, up slightly.

Compared to Last Year:

• More Guests: Occupancy up by 1%.
• Higher Spending: APC increased by 7%.
• Seat Earnings: RevPas up by 9%.
• Revenue Surge: Total revenue increased by 9%.

Day-of-the-Week Performance:

• Weekdays: High traffic with 304 breakfast covers, 234 lunch covers, and 377 dinner covers. APC was INR 696 for breakfast, INR 1854 for lunch, and INR 2811 for dinner.
• Weekends: Busy with 275 breakfast covers, 258 lunch covers, and 399 dinner covers. APC was INR 626 for breakfast, INR 1885 for lunch, and INR 2620 for dinner.

In a Nutshell:

The Total F&B performance in the first half of 2024 has been impressive, with more guests, higher spending, and growing revenue. Each outlet has contributed to this success, making Bangalore's Luxury and Upscale hotels a culinary hotspot.

Conclusion

Wrapping Up a Stellar Half-Year for Bangalore's Luxury and Upscale Hotel F&B Sector

The first half of 2024 has been a period of remarkable growth and rejuvenation for the Food & Beverage sector within Bangalore's luxury and upscale hotels. This report has meticulously unpacked the significant strides made across various F&B outlets, highlighting the trends and key performance metrics that have contributed to a vibrant culinary landscape.

A Promising Horizon: Positive Growth Projections for H2 2024 in Bangalore's Luxury Hotel F&B Sector

As we move into the second half of 2024, the outlook for Bangalore's luxury hotel F&B sector remains positive, with projections indicating stable occupancy rates of around 25-26%. The Average Per Cover (APC) is expected to rise by approximately 5-6% in both Q3 and Q4. Revenue per Available Seat (RevPas) is anticipated to grow by about 6-7% in Q3 and 10-12% in Q4. Total revenue for the sector is projected to see a significant increase, with an expected growth of around 5-8% in Q3 and 10-15% in Q4, driven by increased consumer spending and seasonal demand. This promising outlook underscores the sector's resilience and growth potential.

Final Thoughts:

The first half of 2024 has showcased a resilient and thriving F&B sector within Bangalore's Luxury and Upscale hotels. The data-driven insights provided by Compset Vision Technosoft Private Limited? emphasize the importance of continuous innovation and adaptation to consumer preferences. The trends and performance metrics highlighted in this report are a testament to the sector's robust recovery and growth trajectory.

As we move forward, leveraging these insights will be crucial for sustaining momentum and achieving new heights in the second half of 2024. Compset remains committed to empowering hoteliers with precise, comprehensive data to drive informed decision-making and elevate the guest experience.

About Compset:

Elevating your F&B venture? Compset offers elite data benchmarking and insights, tailored for the global hotel food and beverage sector. Beyond intuition lies our data-driven strategies, setting you apart in a cutthroat market. Dive into analytics, benchmark against competitors, and make growth-centric decisions with precision.

Our commitment? Accurate, comprehensive insights for spotting opportunities and forecasting trends, propelling your business forward. Contact us at [email protected] or +91 90226 48532, and let's turn data into your competitive edge. With Compset, innovation meets excellence, propelling you to the industry forefront.

Compset Vision Technosoft Private Limited?

www.compset.in | [email protected]

?

?