Even though tourism and travel has nearly recovered since before the pandemic, hotels are still short on labor. The reasons for this are many, including: the aftermath of the Great Resignation and the Great Reshuffle; less budget available to increase wages and benefits to new labor market levels; high levels of burnout after the pandemic; and retirement of staff who opted to leave the industry earlier than planned due to the economic downturn.

Regardless of the reasons, hotels are increasingly turning to self-serve food and beverage options to better serve their guests. Modern travelers appreciate the convenience of 24-hour grab-and-go options that fit their mobile lifestyles, which in many cases are more efficient than waiting on room service or traditional sit-down dining. Guests enjoy the ability to customize their food and beverage options based on personal preference and dietary restrictions, especially Gen Z travelers who seek sustainable food and beverage options that are locally sourced.

The locavore food movement is not new, and recently the growth of homesteading as seen in Instagram, Tiktok, and other social media, has captivated foodies to make their own kombucha, brew beer, make a sourdough starter and other fermented products, raise chickens for eggs, and engage in beekeeping, among others. The locavore movement seeks to support the local economy and food culture by sourcing food products within 100 miles of the location and advocates for freshness and seasonality.

The reduction of food miles and food waste, support of local farmers and makers, and use of native ingredients all speaks to Gen Z and Millennial travelers and those guests who value sustainability when choosing where to stay on a trip. So, it will become increasingly important to evolve hotel self-serve options to entice these travelers. The following are some strategies for consideration in high-quality food and beverage self-serve and vending.

Food Vending

Grab-and-grow fridges are emerging in some markets. For example, Chef Vivian of Kinston, North Carolina has created a 'smart refrigerator' extension of her acclaimed Chef & the Farmer restaurant. On her website, she lists the location of these refrigerated units that change items regularly. The website allows for real-time and transparent inventory so that consumers know ahead of time what is stocked in the fridge. While most of her remote fridges are located in wine shops and other retail, it would be a good first-mover advantage for a local hotel to partner with Chef Vivian, or other locally acclaimed chefs.

Farmer's Fridge, based in Chicago, Illinois, is an up-and-coming fresh salad in a jar vending business. Since launching in 2013, Farmer's Fridge kiosks can be seen in major U.S. airports, grocery stores, big box retail, corporate offices, and schools. Farmer's Fridge offers a high-quality fresh salad alternative for health-conscious consumers who may purchase at the self-serve unit or via an app with price points around $2 for snacks and $9 for larger meals.

As an alternative, and in collaboration with a local sandwich shop, locavore chef, or marketplace, hotels can opt for a refrigerated display case or cart stocked either by hotel staff, or by the supplier. Hotel locavore offerings can include (and should market to guests) local and seasonal ingredients with labeling, "farmer's market" refrigerated cases with locally made cheese or other milk products, and regularly changing locally made snacks with beer or wine. This is a good course of action for hotels that wish to showcase the culinary options of the region. Packaging aesthetics, ingredient color, variety, and freshness are priorities for guests who have prior experience with high-quality to-go food options in their hometown. Hotels need to meet, if not exceed, guests' expectations of these food and beverage choices while on a trip away from home.

Depending on the location or region, not all hotels can or should invest in these high-end vending or self-serve options until ROI becomes clearer. Good market entry options include instant-food vending, which has evolved in recent years. Cashless payments using an app, smart machines with built-in sensors, and premium designs incorporating video touchscreens, high-end materials, lighting, and customizable marketing wraps have elevated vending machines to attract the modern consumer. Units that heat food, such as premium soup or pasta vending, give guests a hot, fresh meal within minutes. The incorporation of adventurous flavors and premium ingredients provide options and quality on par with restaurant dining.

The added benefit of cashless payment makes high-quality hot vending machines very attractive for busy guests. 24/7 availability is also an advantage for early morning or late-night customers. If there is space available, hotels can create a "food hall" by grouping the machines and refrigerated cases according to themes: "farmer's market", "sips and bites", "fresh artisan breakfast", "wellness snack station", "late-night nosh", "DIY trail mix bar", etc.

Beverage Vending

Imagine this: You and or your mate have travelled for several hours to arrive at a contemporary hotel (budget, midscale, or upscale), where you have checked-in online. You head to your room (or prefer to have a robot handle your luggage), unpack, and then decide to enjoy a beverage of choice. You enter the attractive, sleek 'Beverage of Choice' Lounge, and experience a world where soft drinks, beer, wine, or cocktails are instantly prepared….with precision portioning every time………no tipping, no cash, no-hassle, and zero mistakes. You choose from dozens of regular or sugar free sodas, smoothies, energy drinks, beers, dozens of wines (with tasting samples upfront before investing in a full glass), or a collection of cocktails with the perfect blend every time.

Self-service beverage spans the spectrum - from vending with metal or glass cans to barrel taps - RFID chip-enabled, AI and Smart Lock technologies, purchase tokens or a dispenser card. Guests make the choice to sample an assortment of domestic and imports straight from the tap, an entire flight of vinos, or your favorite whiskey concoction. This futuristic dream is available today, as beverage self-serving is one of the fastest growing beverage trends on the planet. And the benefits are many, including incremental revenues, minimal labor, no sick days, no holiday pay, and reduced shrinkage. These complex machines, which made a big splash in the mid-2010's, were driven by a confluence of factors including Millennial demand for faster service in high-volume bars; the urge to Instagram everything; the increased intrigue for alcoholic and non-alcoholic liquids, wines, IPAs, bourbons; and the flashy new bobbles named kiosks and robotics.

These incremental revenue sources were exciting among those in the accounting department AND for those guests who bypassed cashiers to reduce time and avoid face-to-face interactions. The post-pandemic staff reduction contributed to self-service, as restaurant and hotel guests, employees, owners and vendors all paused to consider the possibilities. Having reviewed the multitude of options - maximum revenues and minimum costs - are you ready to give it a try? Prudent hoteliers should conduct their due diligence by evaluating the relevant pros and cons of ROI drinkables. One disqualifier to keep in mind is that every hotel type, size, service level, brand/or not, culture, location, market, age, and owner/s is/are different. The following discussion of pros and cons may assist as you consider the potential investment.

For many hotels, this idea of dispensing everything from Frappuccino's to Boba Tea, soft drinks, beer, wine, to cocktails makes sense, as it is incremental revenue with minimal labor. A beverage vending machine, which can hold dozens or even hundreds of cans or bottles at a constant temperature to prevent spoilage, can be leased, purchased, or rented. Beer barrel taps, wine and cocktail dispensers, can be an innovative, efficient, interactive, and fun experience. Sampling from 50-60 wine choices, viewing the attractive colorful metal cans, and DIY can be an adventure worthy of Instagram.

Furthermore, the process is easy, as today's guests continue to educate themselves to scan retail items, check-in via kiosks, activate Apple wallets, self-purchasing cards and tokens - it is becoming second nature to most. The ease of instant gratification, self-choice, and controlling the entire process can be exhilarating for the guest, while reducing the risk of transmission of COVID-19 and other future infectious diseases. Keep in mind that the robotic server can be a stand-alone figure or work simultaneously with the human bartender on an as-needed basis.

The owners' return on investment will drive the decision, of course. Benefits include less dependence on a server or bartender, especially in the absence of a labor force. This decreases training time, wages, benefits, uniforms, etc. The option of dispensing metal cans for non-alcoholic beverages, beer, wine, and cocktails eliminates the need for glassware. Additionally, the shelf life of vended beverages is extended (i.e., temperature controlled for up to 45 days via argon gas with no odors, wine preservers, or gas sealers) for cans of soft drinks, beer, wine and prebatched cocktails; and data collection for sales is quite simple. For many guests who want to explore the world of wine, it eliminates the pretentiousness and intimidation, as self-serve wine walls can make 'vino' a bit more approachable.

While non-alcoholic vending has been a mainstay for decades, alcoholic vending success stories now are center stage across the country: Laguna Canyon Winery, Laguna Beach, Roots in Houston, Island Vintage Wine Bar, Honolulu, The Shaker and Vine, Schenectady, NY. Manufacturers include Boxxtech, iPourIt, and Yanu. BRILLO, a bartending robot, can not only whip up a cocktail, but can also remember your favorite drink, tell jokes, and have a conversation AI style. Robots have been serving cocktails since the mid 2010s and examples include Tipsy Robot on the Las Vegas Strip, Toni Makr Shakr on cruises, and more recently, Cecilia.ai in 2021.

Other cutting-edge beverage technology includes Bobacino, which sells Boba Tea dispensers, and has reportedly created an opt-in only cashless payment system, where the customer's face will be scanned and authenticated to pay for the beverage. A version of this type of dispenser will be helpful one day when authenticating alcoholic sales for age-appropriate consumers. New beverage technology, such as "vein bio metrics", may make alcohol vending machines "smart" enough to age verify and to make sure that the person using the machine is the person who is pre-registered in the system and verifying age. Vein biometric technology is based on a person's unique vein pattern on the palm of their hand similar to a unique fingerprint. The consumer registers in advance on their personal device and then uses a touch screen on the vending machine for customer validation.

Important Considerations for Self-Serve and Vending

While there are many wonderful and innovative self-serve food and beverage options for your hotel guests, there are also some important considerations before investing and adopting. The initial equipment installation includes some careful decision-making: buy vs. rent, length of contract, flexibility to adjust products. Ongoing maintenance must be considered, as the capital investment can be in the thousands, and a maintenance contract is often mandatory. Like all products offered, the hotel needs to understand their guest audience's wants and needs.

Other questions to ask before an investment include: Does self-serve or vending make sense for your market's audience, guest psyche, family unit and age, adventurous nature, beverage education, and price tolerance? There are also important safety and security considerations. Legal ramifications should be investigated, including Sunday sales restrictions of alcohol in certain states, adherence to hours of operations, age verification, and self-overserving for alcoholic beverages. Will you need to invest in an alarm system or camera security to reduce pilferage or other theft? Depending on your region, union contracts might need careful consideration.

In summary, food and beverage self-serve vending or grab-and-go refrigerated cases can be a great investment for a hotel foodservice solution or to enhance the customer experience and reduce labor costs. However, do your homework, contact existing users, and most importantly, consider your market.

*Please note the authors have no affiliations with any vendors mentioned in this article.

Reprinted from the Hotel Business Review with permission from http://www.hotelexecutive.com/.