NOVOTEL OLAYA HOTEL FOOD AND BEVERAGE CONCEPT BRIEF OUTLINE
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Hospitality Consultants
Novotel Olaya | Riyadh
CONTENTS
PROJECT OVERVIEW
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MARKET RESEARCH OVERVIEW
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Restuarant market research, food and beverage trends.
16 TA R G E T M A R K E T S
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CONCEPTUAL OPTION SELECTIONTITLE
WILDFIRE GRILL UNIQUE SELLING POINTS
Three key market segments to be targeted for the specialty
WILDFIRE SWOT
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SUCCESSFUL GLOBAL BENCHMARKS
8 FOOD AND BEVERAGE TRENDS
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I M P L E M E N TAT I O N S T R AT E G Y
Novotel Olaya | Riyadh
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PROJECT OVERVIEW
PROJECT OVERVIEW The United Youth Company has contracted CKP Hospitality Consultants to survey the Riyadh food and beverage market in order to develop the food and beverage concepts for their upcoming Novotel Olaya hotel. This property is being developed in the north side of the city which has major commercial real estate developments planned in the next 3-5 years. The property is set to open in 2018 and will be located in an affluent neighborhood thatcurrently lacks high-quality upscale eateries. 3
Novotel Olaya | Riyadh
MARKET RESEARCH OVERVIEW
The hospitality market in Riyadh, Saudi Arabia continues to thrive with major players from all the hotel groups positioning to claim themselves as the #1 hotel in the market. Internationally branded hotel keys account for 55% of the market’s total hotel supply, 57% of which are rated 5-star. Locally branded and unbranded supply, account for 9% and 36% of the market’s hotel supply, respectively. With over 3,000 rooms planned to join the market by the end of 2016, there comes significant challenge for hotel groups to stand out in the crowded market, especially when it comes to food and beverage offerings.
55% 32%
Internationally branded hotels
five-star hotels
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Novotel Olaya | Riyadh
MARKET RESEARCH OVERVIEW
Business-at-a-glance reveals that the restaurant market in Riyadh is still very much in the developmental stage. Most of the higher end Five-star properties like the Ritz-Carlton and the Al Faisaliah Hotel plan to renovate restaurants are still located within 5-star hotel properties. their food and beverage venues in order to stay current and relevant. While a significant number of international hotel groups are busy establishing their first Riyadh foot hold – established brands such as Hyatt, Marriott and Accor prepare for the openings of new properties in capital.
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The city still relies heavily on private transportation and diners are forced to drive upwards of 40min to cross the city to visit some of the finer restaurants in town. There is an impetus to move away from the traditional hotel restaurant paradigm and a clear demand in the market for internationally competitive restaurants that provide dining experiences of ‘stand alone’ outlets with the expected “freestanding” creativity. Novotel Olaya | Riyadh
MARKET RESEARCH OVERVIEW
Local and global food trends have shown that diners across the Middle East prefer a ‘back to basics’ approach in food and their ingredients. Diners are coming into a new level of discernment that drives expectation for sustainability. Restaurants must be very transparent about the origin of their food sourcing sustainable, fresh and regionally produced food as much as possible. 6
Novotel Olaya | Riyadh
CKP studied the demographics of the Riyadh market and determined three key market segments to be targeted for the specialty restaurant within the property TA R G E T M A R K E T S
Educated-Abroad Tastemakers Male and female, 25-45
Foreign Professionals and Top Foreign Executives, Male and female, 30-55
Schooled in the US, UK, and Australia, with a penchant for luxury brands and global travel, these high-income entrepreneurs and professionals have had their tastes shaped by their experiences in foreign lands and expect the same quality in Riyadh.
40-plus industry leaders who value high quality and attention to detail above all else, come from the public and private sector with a high disposable income and are willing to spend money if the product meets their expectations. This These high-income Western sygment is comprised of discerning professionals have been posted to Riyadh and work in MNC, Healthcare or diners, very well traveled and seek new internationally competitive experiences. Education industries. They have higher A large group of this market segment than average disposable income, appreciate good food, but are generally resides close to RINO development in Olaya. too busy to cook for themselves.
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Society and Opinion-Shapers Male, 40-60
Novotel Olaya | Riyadh
FOOD AND BEVERAGE TRENDS
When determining the food and beverage concept direction, many global food trends were observed and CKP focused on trends that would be most applicable and appealing to the target market for this project. The following trends were selected as being the basis for developing the food and beverage concept.
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Novotel Olaya | Riyadh
FOOD AND BEVERAGE TRENDS
MORE MEAT As developing countries continue to have higher personal disposable income, the global meat consumption is projected to soar by 2024, with Saudi Arabia in the top ranks for poultry consuption. What does this mean for restaurant operators? Diners are still big on eating meat regularly with increased quality, freshness and a demand for improbed Halal standards being of paramount importance. Menus should be designed with many feature meat dishes intended as signature items. 9
Spice Alchemy
With general consumers seeking alternatives to salt due to concern over sodium intake and interest in bold flavors and spice combinations, culinarians are becoming spice mixologists to develop unique tastes on the menu. Flavors from different corners of the world are being infused into menus that traditionally stuck to tastes from the local region. Spices like cumin, saffron, cardamom, sumac, za’atar, harissa, and Aleppo and Marash peppers are being used more frequently in cooking and found more frequently in general supermarkets in the West. Japanese fruits like Yuzu are increasingly showing up on fine dining western restaurants in replacement of vinaigrettes. As these flavors have been introduced into more untraditional locales, global consumers are craving more unique combinations and fusions on their menus. Novotel Olaya | Riyadh
FOOD AND BEVERAGE TRENDS
Small plates have long been big business for restaurants in major culinary centers in the world. Over the past decade, tapas bars, pricy tasting-menu-only temples and even the odd major restaurant chains have embraced small portion sizes on the idea that it’s easier to sell customers five $10 dishes than one $50 entree. At first, adventurous diners, eager to taste as broad a swath of the menu as possible ate it up. But a few veteran eaters have more recently started to complain of tasting menu and small plate fatigue.
SHARING IS CARING Chefs around the globe have noticed have ditched small plates for their polar opposite: the large-format, family-style dish. Huge pots of stew and mammoth haunches of lamb, meant to be shared between multiple people, increasingly crowd the wooden tables at hip restaurants that recently had been covered with a dozen dishes. Dishes are often presented in the same vessel they were cooked in; coquettes, skillets or carved and served on large wooden cutting boards. This format is ideal for sharing with large groups and gives a ‘back to basics’ nostalgia feeling desired by consumers. 10
Novotel Olaya | Riyadh
CONCEPTUAL OPTION SELECTION
In determining the concept for the specialty restaurant at Novotel Olaya, CKP reviewed a range of concept options and the pros and concepts of each. The primary consideration in selection was made keeping in mind 4-5 year window of opportunity for the future venue to operate with almost no major competition in the immediate vicinity. This meant selecting from the following options the concept that could become the multi-use per month—the ‘go to ‘place for regular quick business lunches, family outings, ladies afternoon gatherings, business meetings, and compelling destination dining all in one – fulfilling the needs of the entire available demographic in the location.
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Novotel Olaya | Riyadh
CONCEPTUAL OPTION SELECTION
High-end Japanese
Sushi/Teppanyaki
PROS: •• Perception in the market is that Japanese food high quality •• Engaging dining experiences for guests can be a selling point for the venue •• No Japanese restaurants in the immediate vicinity. 12
CONS: •• Concept may not encourage frequent repeat visits from key target markets due to it’s product offerings and/or price. •• Reliance on a keeping a quality Japanese chef is crucial to the success of this concept.
•• Japanese cuisine is still not as approachable to Riyadh market for daily use purposes as other cuisines. •• Quality seafood is expensive to source and not native to the Riyadh market.
Novotel Olaya | Riyadh
CONCEPTUAL OPTION SELECTION
Modern european
Celebrity chef restaurant PROS: •• Celebrity/michelin-starred chef brings cachet to the restaurant •• Very few celebrity chef restaurants in Riyadh
CONS: •• Chef driven concept can be difficult to implement without early decision of operator •• High-cost of bringing in celebrity chef
•• Modern European cuisine market is still an underdeveloped market segment in the city 13
•• Perception may not be in-line with Novotel’s position in the market. Novotel Olaya | Riyadh
CONCEPTUAL OPTION SELECTION
Italian Restuarant
PROS: •• Approachable cuisine and accepted in the market •• Frequent business is expected as the menu is recognized •• Italian chef is preferred but not necessary to success 14
CONS: •• Oversaturation of Italian restaurants as ‘specialty’ in every market. •• Authenticity will be challenging due to restrictions on pork and alcohol in the market therefore requiring excellent and affordable seafood to replace – seafood supply not being Riyadh’s strong point.
•• Must have exceedingly potent and unique selling points or restaurant will not stand out in crowded market
Novotel Olaya | Riyadh
CONCEPTUAL OPTION SELECTION
mediterranean
Grill Restuarant
Pros:
•• Familiar cuisine that could result in frequent business from multiple market segments
•• Menu has a strong meat focus which is easy to pair with other favorite menu options - this to fit with a broad swath from all market segments •• In-line with the dietary trends and eating habits of the market
•• Grill restaurant is not dependent solely •• Unique presentation style of food in on a chef to make it successful the Riyadh market
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Cons: • Menu may be considered too broad and/or specialized • Typical hotel Grill restaurants ‘per se’ are numerous in Riyadh • Health concerns over too much red meat consumption may turn some guests away
Novotel Olaya | Riyadh
WILDFIRE GRILL UNIQUE SELLING POINTS
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Table side presentations and showmanship Select your own cuts at the vitrine Cart service desserts Choose your own knives
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Interactive dining experience 16
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WILDFIRE GRILL UNIQUE SELLING POINTS
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Open terrace dining area Delicious cuisine – finger food Sexy non-alcoholic specialty drinks Wow-factor sharing platters Feature show kitchen with twin open Parilla grills, and wall inset slow roast charcoal oven
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Robust regionally inspired gourmet cuisine in a hip, trendy environment
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WILDFIRE SWOT
STRENGTHS
•• Exciting, varied, and very accessible menu encourages repeat business
•• “#hashtagable” food presentation
•• Family style serving is encouraged in this market
•• Competitive price point – offering and exceptional value
•• Cuisine style is more popular than Asian/ European tastes
•• Strong market reach
•• Menu hits the current F&B market trends
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•• Concept can be implemented with ease and does not rely on a specific chef for success
- Sharing Plates - Meat
•• Satisfies business lunch/ afternoon tea/dinner/ group business
weaknesses •• Location far from downtown center •• Broad menu may need to be narrowed down •• Grill restaurants are abundant in Riyadh so perception may be that it is not unique •• Requires operators to have strong business owner level acumen
•• Designed as the ‘go to’ outlet for most every occasion
Novotel Olaya | Riyadh
WILDFIRE SWOT
opportunities
•• Large, affluent communities nearby with few choices of conveniently located meeting/eating spaces •• Approximately 5 year open window of exclusivity before remaining hotel developments in the area materialize •• Advantage of positioning as the only proper destination restaurant and choice for business lunches 19
Threats in the immediate proximity •• Increasing demand for cutting edge design and cuisine in RiyadhPublic demand for gourmet fast casual dining options increasing •• Large commercial development (NAME NEEDED) nearby will pull more consumers to Olaya district of Riyadh
• Public perception of a hotel restaurant may not be favourable • Healthier eating habits may deter certain market segments from visiting • Commercial development in area will bring more competitors to the local area.
Novotel Olaya | Riyadh
SUCCESSFUL GLOBAL BENCHMARKS
Blue Butcher
THE CHOPHOUSE
Nusr-et
The self-proclaimed “Most Recommended Steakhouse in Hong Kong”, Blue Butcher is an award winning steakhouse concept known for its aged Australian wagyu beef, Prime US steaks and an excellent cocktail menu.
The Chophouse is part of the Wooloomooloo group’s meat-centric restaurants that have been successful in Singapore and Hong Kong.
The Chop House is part of the Wooloomooloo group’s meatcentric restaurants that have been successful in Singapore & Hong Kong. Casual dining spaces focused on offering quality ingredients appealing to young trendy professionals.
Hong kong
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SINGAPORE
Casual dining space with a focus on quality ingredients and appeals to young trendy professionals.
dubai
Novotel Olaya | Riyadh
I M P L E M E N TAT I O N S T R AT E G Y
Approach the restaurant development from day 1 with the eyes of an independent restaurant group owner who would be utilizing the space for his/her own business endeavor. Ensure that personal preference of hotel operators do not compromise the creativity or integrity of the concept. Ensure there is assigned the ‘concept restaurateur’ personage who role plays the free standing business person. This outlet GM is the ‘FB handler’ accountable for the outlet - not the GM, Hotel Manager or the in house FB Manager - to ensure continuity of development. This outlet GM may report to corporate FB office and property ownership on the restaurant directly. The GM Wildfire could be full oversight of FB since the banquet catering component is nil. The focus though would need to be entirely wildfire and the assistant (FB Manager) would be in charge of All Day Dining. This creates a complete umbrella of authority on resources from the rest of the hotel kitchen and service teams that could be important in supporting Wildfire operations Creatie a free standing independent restaurant dynamic
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Likewise the number one kitchen production personage in the hotel could be assigned as Executive Chef Wildfire while a senior sous chef perhaps Levant or Turkish Origin in charge of room service and ADD restaurant. To round out there would be a head chef or sous chef in charge with the Executive Chef in the Wildfire restaurant. Novotel Olaya | Riyadh
I M P L E M E N TAT I O N S T R AT E G Y
THE PRODUCTION KITCHENS SUPPORT Due to the limited space of wildfire kitchen - would be essential to the wildfire success.
The Three in-house hotel leaders would be part of a ‘restaurant business directors’ special team with the GM Wildfire having the autonomous veto and approval authority on decisions. The Hotel GM in this case could be exempt from responsibility for the restaurant except in a quality of support given scale. Establish a separate P&L for the outlet which includes an allocation for space and unlimited maintenance and utilities services. 22
THE PASTRY PRODUCTION This chef is ideally coming from an urban center café bakery operation where the products are modern and the pastry chef is primarily focused on A la carte cakes and sweets – French or high end California cooking background is a key. THE ARABIC PRODUCTION TEAM Try to source a specialist in Aleppo cuisine which brings together Turkish and traditional Syrian/Lebanese cooking. Novotel Olaya | Riyadh
Hospitality Consultants
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