Celebrity Chefs working with Hotels

by associating with a notable chef,
hotels are finding it’s a great way
to build the brand and business

To attract more guests in these tough economic times, an increasing number of lodging brands with locations outside of star-studded Las Vegas have been teaming up with celebrity chefs to open world-class restaurants that just happen to have hotel addresses—and many are reaping big benefits.

One local example is Jean-Georges opening MARKET by Jean-Georges at the Shangri-La Vancouver, as previous reported.

"Drive traffic, that is the bottom line for the way I look at everything," said Lisa Angelo, manager of strategic development central division of Harrah's Entertainment.

Angelo was part of the team who helped bring the Paula Deen Country Buffet & Store to the newly renovated Harrah's Casino in Tunica, MS. Opened in May and modeled after the Food Network star's home in Savannah, GA, the buffet concept features food stations such as Granny Paul's Garden, Uncle Bubba's Oyster House and Little Jack's Corner.

"[There's been] 48 percent more business [than a year ago] at the buffet since it opened," said Angelo of the partnership's success. "It's an experience for the guests—now they're going to Paula's home. [Before it was] just a regular buffet."

Deen is not the first celebrity Harrah's has partnered with, however. According to Angelo, Harrah's has been engaged in such partnerships outside of Las Vegas since 2001, with top names such as country music star Toby Keith and Iron Chef America-winner John Besh.

"It just goes to show you the power of the brand, the right brand," she added.

And it's not just celebrity partnerships that are driving sales and traffic at Harrah's properties, but also popular brand partnerships, said Angelo. For example, the company has had success opening outposts of well-known quick-service eateries, such as Starbucks and Fuddruckers, and is also in talks to open a Dunkin' Donuts on at least one site.

For Chevy Chase, MD-based The Ritz-Carlton Company, teaming up with well-regarded chefs isn't just about driving traffic, but about contemporizing the chain's nearly 100-year-old image.

"The concept of Cesar Ritz and the grand dining room just doesn't work anymore," said Ritz-Carlton spokesperson Vivian Deuschl. "We had a reputation for an old-fashioned, staid dining experience—they were award-winning [restaurants], but they weren't making money."

In 2005, Ritz-Carlton, which has about 72 properties worldwide, partnered with Eric Ripert on Bleu in the Cayman Islands, the brand's first such endeavor. Today, about a dozen of the approximately 36 domestic Ritz-Carlton locations have such agreements, according to Deuschl. The most successful so far is Southwestern cuisine pioneer chef Dean Fearing's aptly named Fearing's at The Ritz-Carlton Dallas, which generates more than $1 million a month in profits, according to Deuschl. While she was unable to provide specifics, Deuschl said that such partnerships have not only increased sales and traffic but also given a much-needed boost in awareness of the entire brand.

"The benefits have been very clear. It's been the most successful thing we've done," said Deuschl of the strategy. "As we look at our restaurants coming up for renovation, the first thing we look at is celebrity."

While many brands have been on the celeb track for a few years, others have been carefully watching and waiting before hopping aboard.

"There have been cases that some hotels have gone into a financially negative situation with a celebrity chef because they wanted to create an aura to fill rooms," said Fernando Salazar, vice president of food and beverage at Wyndham Hotels and Resorts of Parsippany, N.J. "It works when it's done right, and it's the right venue."

Salazar believes Wyndham will get it right come February when the 82-location chain opens its first celebrity-backed restaurant with Michelin-rated Spanish chef Jesus Ramiro in Cap Cana, Dominican Republic. Wyndham is also talking with Ramiro about additional opportunities, and with several other highly regarded chefs about teaming up.

"There is definitely a move in Wyndham to move forward with the right chef for the right project," said Salazar.

Industry experts agree that having a big name attached to an on-site restaurant can increase traffic, improve brand identity, build bar business and even increase occupancy rates, but they warn that celebrity partnerships aren't right for every lodging outfit.

"There are some places where it is a good strategy—properties in gateway locations and upscale casinos...but it's not without its risks," said Dennis Lombardi, executive vice president for Columbus, OH-based WD Partners, a consulting firm specializing in design and development. "Profitability needs to be shared with a name-brand chef...[and hoteliers need to] be careful not to get a chef that's a passing fad."

Source:
Hotel Interactive

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