Luxury Travel, Lifestyle and Marketing Trends

4 Trends in the Business of Restaurants

kwe blog le locamerchant-1Not much has happened in the business of restaurants in recent years. I’m talking about innovations other than in the cooking itself or culinary approach, to increase revenues. With the tremendous competition now and rising rents and food costs, we’re finally beginning to see some new, creative ideas that are worth noting. Expect to see a lot more in coming months, especially with Priceline’s recent purchase of OpenTable.  Here are several restaurant trends that have a lot of promise:

!.How to increase covers in the downtimes of 5:30 to 6:30/7? Fine restaurants are trying to make diners feel as if they’re special, going out of their way with attention and service. Restaurants realize they need to overcome the traditional stigma of diners feeling like second class citizens, part of an “early bird special” group.  In addition, all matters of special incentives are being offered, from smaller portions (and prices) of signature dishes and a small bites menu to unique menus such as New York’s Le Cirque offering what they call a heritage menu with items like Dover sole and wild Burgundy Escargots. Read more in “No Shame in a Table at 5:30” in the Wall Street Journal.

2.As the top 1% get richer and the stock market continues on an upward trajectory, demand at the top restaurants in peak hours has been off the charts. New apps have sprung up like Zurvu and Resy that cooperate with restaurants sharing revenue for the most in demand dining times  and access to prime tables (a “commission” from $10 a person to $50 a table).

3.Restaurants hosting a visiting chef from out of town or out of country has been around for a long time. But now there’s a new twist – a visiting local chef.  Harry’s Pizzeria owned by star Miami chef Michael Schwartz hosted a series of themed dinners with Miami colleagues. We’re also seeing several chefs team up to do special dinners at a colleague’s restaurant. The idea? Copromotion which makes a lot of sense.

4.Reservation websites are providing incentives for early bookings. Members of Opentable get more points for booking early time slots and another app. leloca, gives last minute discounts at participating restaurants to users (like the restaurant counterpart to Hotel Tonight).

Insatiable Luxury in China

luxury in china

Peninsula Shanghai image from www.sienacharles.com

Post by Karen Weiner Escalera

We’ve all read about the boom in sales of luxury products in China. But nothing prepared me for the reality — the quantity and size of stores of the big names in luxury brands. Staying at The Peninsula Beijing, within two blocks there were several Chanel stores, one larger than the next. Within the hotel itself, besides the entrance being flanked by Chanel and Louis Vuitton shops, there’s a two story arcade exclusively with all the big brands. And this is repeated throughout the city.  Curiously, walking past the shops there was seldom anyone inside. Why? Our guide said that wealthy clients get the brochure of the new collection (or see it online), call the shop, and have the item or items sent to their residences much as mere mortals would order take out food.

I asked the same guide why there weren’t more top Chinese fashion designers. She said why would anyone buy a local fashion brand and pay a lot for a name no one knows. Anyone in the luxury business should not miss a visit to the “knock off” multi-leveled emporiums – the Silk Market in Beijing and several in Shanghai. It’s fascinating to see what brands are being counterfeited besides the obvious – Hermes, LVMH, Prada, etc. Beats headphones and speakers seem to be “hot” items. No wonder Apple recently announced a possible purchase of Beats. It was also interesting to see how luxury brands have to quickly come out with new lines to stay ahead of the counterfeiters. Of course new models help fuel purchases but you can’t help thinking that in any case, this counterfeiting greatly debases the brand.

Speaking of luxury and hotels, I also had a chance to see the latest in hotel technology in action by the master, Peninsula. At the hotel in Shanghai, here are some of the picks for top features:

  • Built in “nail dryer” in the dressing room
  • VOIP for free international calls
  • Humidity control for the guest rooms
  • Preset internet radio channels
  • A Yamaha speaker built into a lacquered cabinet, totally unobtrusive
  • And then the bathtub that even they have taken up a notch: luxuriate in the tub watching tv, having a conference call by speaker phone, choosing your favorite spa music, and more

All this being said I kept asking if and when the bubble will burst. As someone said, throughout the country there are thousands and thousands of unoccupied apartments bought for speculation (said one friend, in China the crane is the national bird). Makes for an unstable situation, no?

Budget Luxury

luxury budget

Flying a private jet doesn’t sound “budget” to me but new European jet carrier Wijet bills itself as “budget luxury”, charging $3,000 an hour for a Cessna Citation Mustang 510 that accommodates four people. As quoted in the New York Times, Alexandre Azoulay, owner, says the “budget” comes in since there’s no need to buy a minimum number of hours.

I guess if you’re an exec that has to get someplace in a hurry and millions or billions of dollars or Euros are at stake – or if you’re a billionaire, then $3,000 an hour is a “deal.” More apt, though, would be to call the service “value” luxury.

All of this prompted my thinking about what luxury means in today’s travel world.

The term “affordable or budget luxury” has been around for a number of years, meaning you’ll have a “luxury like” experience that’s within many travelers’ grasp. The expression packed some punch at the time it was first used, but now – with overuse – it has become almost meaningless.

Today, three-and-a-half star hotels and resorts are claiming to offer luxury – not in terms of service or expensive millwork, but with other elements such as top-of-the-line mattresses, designer linens, marble bathroom countertops or rainfall showerheads.

“It’s a challenging time for anyone who wants to cater to upscale consumers, regardless of their price point,” said Barbara DeLollis, the former USA TODAY hotels reporter. “Why? Younger generations who have vastly different expectations and needs than their parents are forcing new definitions of luxury.“

So this begs the question, what qualifies a hotel or resort as offering total luxury and how do consumers substantiate the claim? Prestigious awards certainly help. Invoking brand names of products used – from suites conceived  by fashion designers to luxury branded amenities and facilities. Not easy. And interesting that another word has not arisen to take the place of “luxury” so I guess we’re still stuck with it.

6 Things to Know to Attract the Same-Sex Wedding Market

same-sex wedding same-sex wedding

By Steve Deitsch

With marriage equality seemingly sweeping the country, more and more same-sex couples will be tying the knot in the coming months and years.  To date, well over 75,000 same-sex marriages have been performed in the U.S. and that number will only grow.  There are about 650,000 same-sex couples in the U.S.  so there is huge economic potential.  In fact, the U.S. Congressional Budget Office estimates an additional $1 Billion in revenue from same-sex weddings  if it were legalized across the U.S.

How can your property get a piece of the pie?  Here  are some things to consider:

1.  Become relevant before you relate
76% of same-sex couples want to work with LGBT-friendly properties and vendors. In 28 U.S. states and many countries, it’s perfectly legal for vendors to refuse to work with LGBT couples.  That means you need to vet your vendors, train your staff, and even update your forms so they don’t say “Bride” and “Groom” but “Spouse” and “Spouse,” for example.  72% of LGBT couples want vendors who use inclusive language and 69% want vendors to show inclusive photos.

2.  Location matters
The economic opportunity for those states in the U.S. or the 17 countries that offer same-sex wedding is enormous.  If same-sex marriage is legal in your location, research shows that same-sex couples will spend up to three times more on their wedding than in locations where only a civil union or domestic partnership is legal. Many couples also opt for destination weddings, so if you are in a desirable location in a state in the U.S. or a country where same-sex weddings are legal, cast a wide geographic marketing net.

3.  There is a difference between weddings between men and weddings between women 
Lesbians spend up to 15% more on their weddings than gay men  For example, 66% of lesbians bought an engagement ring, vs. only 19% of gay men. The women also tend to stick more traditional aspects of the wedding ceremony and reception.

4.  Be open to non-traditional and creative approaches to the ceremony and reception – especially for gay men
Because same–sex couples don’t necessarily follow wedding tradition, they are often interested in doing things beyond the ordinary to make it more personal.

5.  Same-sex weddings tend to be smaller and more casual, but more expensive 
Same-sex couples spend slightly more on their weddings and more per guest than the $28,400 the average straight couple spends. Because many of the same-sex couples have been together a longer time, they are often older and their parents don’t invite their friends and distant relations.  Also, most same-sex couples  pay for the weddings themselves.

6.  Show you care
Gays and lesbians are a lucrative audience, and tend to influence the general population and be extremely loyal to a brand or company that supports them.  So if you are new to marketing to the LGBT community, it’s important to establish that you not only want their money, but that you genuinely support the LGBT community.   This can be accomplished a number of different ways:  provide equal benefits and protections to LGBT employees; sponsor local (or national) LGBT charities; and offer products or services or packages that would be of special interest to the LGBT audience.

Sources:  Community Marketing Inc., TheKnot.com <http://TheKnot.com> ,  Pew Research, U.S. Congressional Budget Office, 14 Stories

Steve Deitsch is President of Reverberate! Marketing Communications. The company specializes in reaching the LGBT market.  

Keeping up with the Crawleys (of Downton Abbey)

More and more consumers these days want to live the Manor Life. Call it the Downton Abbey Effect: demand for the well-staffed home is on the rise, according to agencies and house managers alike. Clients are calling for live-in couples, live-out housekeepers, flight attendants for private jets, stewards for the yachts and chefs for the summer house.

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Using Art to Market Hotels

the betsy

Hotels have been using art to appeal to the affluent market for years. I remember when we launched Ritz Carlton Hotels years ago, art in the public areas was promoted as a major amenity, as it would become with many other hotel groups and individual properties. Artists in residence, experiences with art such as the Peninsula Academy’s class in Chinese brush painting, art tours, and even one with the word “museum” in its name (21C Museum Hotel), have all been part of the appeal. But now, especially at the recent Art Basel in Miami, it has been taken to the next level, both in uses in marketing and in reaching out to new audiences.

And that’s not just travel products, but lifestyle in general, brands ranging from American Apparel and Fiat to Maserati, Harper’s Bazaar and Samsung. Publishing, apparel, automotive, beverage, food, they’re all jumping on the bandwagon and in a major way. According to a recent New York Times article, “In Marketing, Art’s the Thing”, they’re using art to reach consumers in their 20’s and 30’s who are already making art part of their lives, as a differentiator in the luxury category, and as a point of reference for relating to the beautiful and artisanal.  Miami hotels chose to wave their flag during Art Basel with popups – from The Newstand at the Standard Spa Miami and all night dining at The Raleigh to cultural events at The Betsy. The Betsy’s tie-ins were especially notable, featuring exhibits in its dedicated visual arts space, programming inviting guests to interact with the artists, and a cause related marketing initiative. Percentage of all works sold is contributed to the Zara Center for AIDS Impacted Youth in Zimbabwe.

Restaurants and bars got into the act with special themed menus like Red Steakhouse’s “Red Basel” and cocktail bar The Broken Shaker serving up drinks with their companion art. Pamela Drucker Mann, publisher of Bon Appetit cited food and art coming together, giving examples of restaurants designed to look like art galleries and “tablescaping”, designing table arrangements or centerpieces. Indeed, art sells.

Blogpost by Karen Weiner Escalera, President & Chief Strategist

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Entertainment Returns to Dining

kwe blog crepes suzette

In the 70’s I fondly remember restaurant tableside preparation of Caesar salad, guacamole, and flambes. The flambes always added elements of entertainment and glamour to a meal, so I lamented their passing from style. With the advent of Spain’s Ferran Adria, his molecular gastronomy and disciples, tableside food preparation came back into fashion, but it just didn’t seem the same.

Now, restaurants across the country are bringing back some of the traditional dishes and with them, tableside preparation sometime by the chef himself. It makes sense. It offers a culinary experience for the diner at a time when travelers and the affluent want new experiences. For the restaurant it  not only creates a buzz, but also, helps justify higher price points and adds value. The Wall Street Journal recently described what some of the more innovative restaurants are doing. Leading the pack is New York’s Eleven Madison Park which has made their signature entertainment, justifying the $225 prix fixe dinner. For instance, a raw carrot is put through a meat grinder clamped to a table. Voila, carrot tartare. Michael Lomonaco, chef and partner at Porter House New York has brought back the duck press. In the $110 roast duck dish for two, bones are crushed in the French press at the table. The duck comes out on a gueridon cart and disassembled at the table. Duck’s legs and thighs are served in a salad for the first course, and the breast with the juice from the crushed bones is second.

Other dishes that get the tableside entertainment treatment are a 40 oz, 14 in long rib eye carved before the diners’ eyes at Urban Farmer in Portland, tea smoked oysters at Desnuda ceviche bar in Brooklyn, and tableside cloud preparations for pasta or rabbit with a mist of truffles at Marc Forgione in New York. And then there are the traditional dishes of the 50’s and 60’s like steak au poivre, crepes suzettes and flambéed drinks. Brennan’s of Houston has even created a new job description: flambé chefs. Glad for the return of this nostalgic element of dining.

Blogpost by Karen Weiner Escalera

Next Step in Farm to Table

Round Hill Hotel & Villas, Jamaica photo: modernfarmer.com

Hotels That Farm: Round Hill Hotel & Villas, Jamaica
photo: modernfarmer.com

Fairmont Hotels has its rooftop beehives, more hotels and restaurants their herb and vegetable gardens and buy local, and spas their herb gardens to use in treatments. It’s all part of the rapidly growing farm-to-table movement you’ve read about. Consumers, too, are doing their thing with urban chicken farming, gardening and beekeeping  proliferating across the country. In fact, this has raised issues for municipalities who are relooking zoning. The consumer phenomenon is called the “hobby farmer”, you could say a logical next step in the farm-to-table movement that has fueled a growth in farmers’ markets, community sponsored agriculture and young people going back to the land. To reach out to the market segment of “foodies”, the passionate about farm to table, and would be young farmers, there’s an intriguing new website and magazine  — Modern Farmer. Out since April, it already has a global following in Europe and Australia. I can see why. There are highly original, fascinating articles not covered by any other publication. Former President Bill Clinton contributed an article about the work his foundation is doing with farmers globally, and his memories of helping on his uncle’s farm in Alabama. Categories include food, travel, plants and animals and culture among others. Other articles have included everything from Hotels that Farm and  Farmers’ Market Etiquette to the Boston Design Center getting a 55K square foot rooftop garden, and probably more than you’d ever want to know about goats (a “hot” menu item now….the new lamb?).

Reprinted from www.miamicurated.com

Hotels Accelerate Innovation in F & B

Four Seasons Food Truck

Four Seasons Food Truck

kwe blog four seasons food truck 2

Over the years, first at my alma mater Hilton International and later
representing hotels and resorts, I frequently heard hotel GMs complain that
guests were bringing in pizza and fried chicken from the outside to their guest
rooms. This was particularly true in the off-season at resorts when the bargain
crowd moved in. Now, hotels have decided if you can’t fight them, join them.

As reported in the New York Times, the Amway Grand Plaza
hotel has created its own pizza delivery service .Convenient ‘grab-and-go’
restaurants with selections of sandwiches, salads and beverages  are
becoming more commonplace. The Westin Diplomat is one of several Westins that
created their own take on the concept with restaurants called ‘Ingredients, Some
Assembly Required’ in their lobbies. In some, but not all cases, these are in
addition to traditional room service offerings. For guests it’s a money/time
saving choice. For the hotels, it’s a way to capture some additional revenue
that would have otherwise gone elsewhere

With the high cost of running a food and beverage operation, hotels are looking
for more ways to capture revenue both in volume and by increasing the average
cover. In the luxury end, culinary experiences are increasingly more common which
offer the added benefit of reinforcing luxury branding. We’re also seeing
more hotels developing dedicated websites to highlight themselves as food
destinations. And, in one of the more exciting innovations, Four Seasons Hotels
has launched a food truck that is traveling to a number of its West Coast properties.

Young Foodies, your Devoted Customers-to-Be

Mikey Robins, 15, is the youngest champion of the Food Network's "Chopped".

Mikey Robins, 15, is the youngest champion of the Food Network’s “Chopped”.

More on millennials marketing. Remember you read it here first – teenagers and offspring of affluent parents will be a food focused generation. All of the signs are there. Teens favoriting the Food Network and other foodie shows, then trying out what they see in the kitchen. Even toddlers have become adventurous eaters and think nothing of eating sushi, sashimi and “Babe-a-ccinos” (a coffee free cappuccino).  We are, indeed, a food obsessed population. Look not only at the proliferation of cooking schools, growth of culinary tourism, tourist board food and wine festivals, but social networking sites, blogs, and review sites. Youngsters are eager to join their parents in cooking classes at the pricier resorts around the world. I have a 13 year old niece whose best friend gave her a ring that was inscribed with the words “kale” in honor of her obsession with the dark green leafy vegetable. Where does this come from? Their parents’ foodie culture.

Now we’re seeing exhibits honoring the world’s leading chefs: early next year will be an exhibit of the drawings and diagrams of master Spanish chef Ferran Adrià at the Drawing Center in New York.  And then there’s the Food Hotel which we’ve written about before. What does this all mean to marketers? Capturing the imagination and interest of these young foodies can create indelible memories that can translate into a devoted customer-to-be.

 

Blogpost by Karen Weiner Escalera, President and Chief Strategist