In Vino Veritas LXXXVII: Hybrid Restaurant and Retail Spaces for Wine Sales

Besides helping a hotel restaurant become profitable, the broader, less quantifiable goal, for is to satisfy hotel guests in such a manner as to halo positively back onto the guestroom product. People want to stay at hotels that are known for their food or having a fun spot to dine at.

To this broader goal then, it shouldn’t matter as to how the wine, or any other beverage, is delivered to the patron so long as it drives satisfaction, knowing that this will ultimately support occupancy figures. Traditionally, this selling pathway for wine is to seat the table, let the customers glance over the menu before ordering or making a recommendation, then deliver the drink or full bottle. Sometimes, though, it can benefit the hotel to play against type and opt for a different sales approach.

This brings us to our triumphant return to Las Vegas – the first trip back following the pandemic lockdowns – where we stayed the new Resorts World Las Vegas and wandered over to the hotel’s Wally’s franchise (the originals being in Los Angeles), a high-end cheese, charcuterie, wine and spirits retail store and restaurant. What’s of note here is that anything on display throughout the store can be bought via a ‘cash and carry’ point of sale, then taken away or consumed on premise at the restaurant for only a corkage fee of $40.

As essentially a luxury grab-and-go outlet, what elevates Wally’s is its well-curated collection of wine, spirits and accoutrement combined with upscale décor to complete the atmosphere. Equally impressive were the bundles which assembled one, two or sometimes three bottles as well as selected chocolate or other snack pairings, and all for a reasonable price considering it’s on The Strip.

How might this apply to your property? Specifically, if one of your dining outlets needs a facelift, would you consider going with a retail-restaurant hybrid remodeling?

To start, you must be cognizant of the evolving nature of the restaurant, with many pre-Covid trends resurfacing as travel restrictions dissipate. Think upscale casual dining, food halls, ordering via apps, lounge-style seating arrangements and the aforementioned grab-and-go setup. Two themes throughout are convenience and flexibility. In broader terms, you must ask your managers how they are planning to meet these changing consumer demands, for which pivoting to a hybrid setup may be a viable means to vitalizing a sluggish space.

Still, there are lots of issues. Foremost are cost of conversion, how the new price points may affect sales margins, how this model may affect turns or total dining throughout and what to stock or bundle in order to heighten guest revenues. Next are the legalities over selling alcohol in a grab-and-go manner. Las Vegas is perhaps one of the most pliable municipalities to that end, but it won’t hurt to inquire because Covid has loosened many of the previous restrictions as an ongoing means of supporting the struggling restaurant industry.

As we’ve remarked several times before, wine is as much about the flavor of the beverage as it is the ambiance within which it is imbibed. Adding a store-like experience to your restaurant represents one way to imbue that dynamic sense of flexibility to help amplify the mood and guest satisfaction overall.

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Food & Beverage

Larry is managing partner of a hotel consultancy that assists independent luxury hotels meet their goals and helps technology companies understand how their solutions work in the hospitality filed.

As one of two principals at Hotel Mogel Consulting Ltd., Adam Mogelonsky is a strategic advisor primarily for independent properties, small hotel groups and technology vendors for the industry, specializing in helping brands determine the best path to increased profitability whatever that direction requires.

Hotel Mogel Consulting Limited works exclusively with investors/owners/operators to help solve critical investment, management and marketing issues in the luxury segment. We also undertake public speaking at corporate and association events, where an independent point of view is desired.

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