The Symbiotic Relationship Between Hotels And On-Site Restaurants

Read original story on Forbes.com

New York City is a notoriously tough market for restaurateurs, with ever-present competition for diner dollars and rising rents leading many to open stalls in food halls (where startup costs are significantly lower) or hop on the fast-casual train (which serve a steady stream of customers at a higher turnover rate).

For higher-end dining concepts, from sit-down to multi-course fine dining, hotels offer a built-in customer base, and the restaurants in turn bring guests into the hotels. Below, I take a closer look at this symbiotic relationship between hotels and their on-site dining concepts, as demonstrated by the Park South Hotel and LUMA Hotel Times Square.

Park South Hotel

The food and beverage program at Park South Hotel was shaped by Tim Cushman, a 30-year industry vet and James Beard Award-winning chef, and his wife Nancy Cushman, co-owner and founder of restaurant group Cushman Concepts. First came o ya, a high-end, contemporary Japanese restaurant that was first launched in Boston; then Covina, an all-day restaurant serving American fare; and finally the scenic Roof at Park South.

The vision for the Park South Hotel, detailed Tom Glassie, managing director of Atlantic Stars Hotels & Cruises and owner of the Park South Hotel, was to “create a neighborhood gem and culinary destination in the heart of Manhattan, with dynamic hotel and f&b offerings for corporate and leisure travelers, in addition to locals.”

Park South Hotel general manager Justin Kellerman notes that the on-site dining concepts lend a “competitive advantage” to the hotel. “This model has proven highly appealing to our neighborhood clients, corporate guests as well as leisure travelers staying at the Park South,” said Kellerman. “Hotel guests have the convenience of never having to leave the building for a unique and quality NYC dining experience.”

Park South further entices hotel guests to dine on-site by offering a glass of wine or beer at Covina’s daily happy hour, ramen happy hour at o ya and exclusive views at the Roof.

Nancy Cushman points out that Park South is still a boutique 130-room hotel, and while hotel guests offer a lift in business, outside guests drive most of its economic success, in addition to private events and catering. “It’s a self-feeding ecosystem that fulfills the needs of many different important business and leisure audiences,” said Cushman.

“It is an economic advantage to be located inside a hotel and under the roof of hoteliers as opposed to other non-hoteliers’ as restaurant rents and labor costs in NYC are continuously rising,” said Cushman. “It ends up being a mutually advantageous and symbiotic financial relationship.”

LUMA Hotel Times Square

Ortzi by chef Jose Garces is the anchor dining concept at LUMA Hotel Times Square, and there’s a more informal bar and café that leads into the restaurant.

On the benefits of having on-site dining backed by a notable chef, LUMA Hotel general manager Kate Martin said, “Now more than ever, people are planning their vacations based on where they want to eat. There are so many great places to eat in NYC, but what's exciting about Ortzi is that guests can enjoy a standout meal without leaving the building.”

When it came to choosing a restaurant concept, having a wide appeal was key. “We wanted the restaurant to be a dining destination for travelers and locals alike,” said Martin.“We feel that Ortzi definitely accomplishes that consideration, from the pintxos, crudos and conservas to the rotating selection of paellas. The Basque focus carries over to our lobby bar, where we've recently launched a signature menu of gin and tonics with a variety of different international gins, tonic waters and garnishes.”

Michael Han, Ortzi’s chef de cuisine, listed the “built-in audience” as a key benefit to working in a hotel restaurant. “In addition to the hotel guests, we also attract local diners who are looking for a taste of Basque Country and want an oasis amidst the bustle of Times Square,” said Han.

As for the additional responsibilities that come with working at a hotel restaurant, Han noted, “We provide in-room dining to our guests, so it's important for us to make sure that the dining experience is just as good in their room as it is in the restaurant. Additionally, we offer a kids’ menu to accommodate those traveling with children and have a great burger on the menu because who doesn't love a burger?”