The article features some high profile hotel closures such as the W Hotel in San Diego and the Ritz-Carlton in Las Vegas.  The article also mentions how 76 California hotels have already fallen into foreclosure and that 330 out of the states 10,000 hotels have defaulted on their mortgage payments in the last year. 

As far as the cuts, the article really only mentions that Concierges are being replaced by lower cost employees and some hotels are changing their approach to food and beverage.

We have noticed quite a few changes at hotels over the last year or so to cut costs or drive revenues.  A few of the changes we see:

• Many hotels have closed restaurants and bars.  Instead of having 2 or 3, many have closed all but one restaurant and one bar.
• Hotels have cut costs and gone green by eliminating newspapers and printed folios.
• Parking rates are on the rise.  Many hotels have increased the parking fees for both self parking and valet parking.
• Breakfast buffets have really been changing.  The prices have increased and the quality and selection of food has decreased.
• Overall staffing has really decreased.  Many hotels have eliminated positions like bellmen or concierges.  Also, we see longer lines at check in because the hotels have less GSAs with similar occupancy as in the past.

What are you doing to survive?  Please post in our comment section!

With the advancement in technology, a server can make a guest check in seconds. That means they can easily manipulate a guest check in seconds. Here is one example our Mystery Shoppers see. A server serves 2 breakfast buffets and presents check number 101 to a customer. The customer pays $40 cash. Instead of closing the check to cash, the server pockets the cash and goes back and splits that check and creates check number 102 for 1 buffet and check number 103 for 1 buffet. Now the server has two open checks for very popular items that he/she can do many things with. He/she can present a check their next customer who orders a buffet or they can add additional items to the buffet or transfer it to another guest check. The opportunities are endless.

This not only works with buffets but with any items that are not prepared by the kitchen such as beverages, deserts, and especially alcoholic drinks.

How can you protect your restaurant?

1. Program a button on your POS for every single item you serve. Example: instead of a button for mixed drink, program a button for every single brand name of alcohol you have.

2. Require servers to input correct table numbers on their checks. Have a manager or supervisor occasionally pick up signed checks as soon as a guest leaves and verify the table number. If the table number on the check does not match, the server may be re-using checks.

3. Make sure all of your POS terminals are in a very visible location. The terminal should be in a place where it is seen by supervisors, other employees, and guests.

4. Subscribe to a Mystery Shopping Service. Have undercover shoppers come in on a regular basis to measure internal controls. It may cost a few dollars up front, however, most restaurants lose about 5 percent of their revenues do to poor internal controls so it will quickly pay for itself.