In the GCC, where F&B is the backbone of luxury hospitality, the industry is being reshaped by two powerful global trends: wellness and sustainability. These movements are not only changing consumer preferences, but are also unlocking significant profit-driving opportunities.
The global wellness market is now valued at USD 1.8 trillion, according to McKinsey, with their data showing that wellness is prioritized in the daily lives of: 87 percent of consumers in China; 82 percent in
the US; and 73 percent in the UK. This shift has transformed how people view food, with guests increasingly seeking dining experiences that go beyond mere sustenance. Today, their demands include meals that boost immunity, manage health conditions and enhance overall wellbeing.
Sustainability is equally important to today’s global citizens. PwC’s 2024 Voice of the Consumer survey found that 80 percent of consumers are willing to pay more for sustainably produced or sourced goods.
By leveraging smart revenue management tactics, offering premium products and services that align with these trends, and adopting strategic cost-saving measures, luxury hotels and their F&B venues in the GCC can effectively capitalize on both wellness and sustainability to drive profits. Here are seven top tips for tapping into these key trends:
- Farm-to-fork initiatives: by sourcing produce from local farms, hotels can reduce transportation costs and their carbon footprint. These initiatives not only support communities and offers guests fresher ingredients, but have proven to contribute to a 25-percent increase in local patronage, which is particularly important in the GCC.
- Menus matter: many luxury hotels now offer health-centric dishes with organic, local ingredients, resulting in a 30-percent boost in F&B revenue and increased guest engagement. Beyond that, a smaller, well-curated menu can reduce food waste and costs while offering diversity. Focus on quality over quantity, with wellness-oriented, high-quality dishes.
- Waste not, want not: hotels generate nearly 290,000 tons of waste annually, a third of which is food, according to businesswaste.co.uk. Effective waste management can reduce disposal costs and save on procurement. Hilton’s Green Ramadan 2024 reduced food waste by over 20 percent across 32 hotels in seven countries. Conrad Dubai composts food waste, distributing it to local farms and displaying it at buffets to encourage mindful consumption.
- Be crystal clear: transparency is ethical and profitable. Detailed menu descriptions, including local sourcing stories, plus knowledgeable staff, can greatly enhance the dining experience and command a premium. Moreover, incorporating creative, plant-forward dishes that appeal even to meat lovers can cater to wellness trends, while also lowering ingredient costs.
- Educational experiences: providing immersive experiences related to sustainability and wellness can be a money-spinner. The Mandarin Oriental, Bangkok, offers cooking classes and farm tours that highlight sustainable practices and healthy cooking techniques. These initiatives have resulted in a 20-percent increase in guest participation in F&B activities and positive feedback.
- Wellness-focused dining: many luxury hotels are now offering wellness-focused dining as a key selling point or ‘the’ reasons to stay. Six Senses Hotels Resorts Spas launched the ‘Eat With Six Senses’ program, emphasizing organic, local and nutrient-rich ingredients. Reports indicate that properties featuring wellness-focused dining have seen a 20-percent increase in guest satisfaction and a 15-percent rise in repeat bookings.
- The forecasting factor: forecasting customer trends – not just what guests prefer to eat, but the days and times they dine too – is crucial. By nailing down these details, hotels can optimize their procurement processes, ensuring they purchase just the right amount of high-quality ingredients at the right time. This approach also factors in efficient staffing, reducing staff costs during quieter periods.
Judith Cartwright,
founder and managing director of Black Coral Consulting
blackcoralconsulting.com
@jhalkenhaeusser