Key dimensions of outsourcing hotel food and beverage services

Hotel restaurants are widely considered to be under‐performing assets and hotel companies have sought to improve their financial performance in a number of ways including outsourcing to specialist restaurant companies. This article reports the findings of a study that explores the key dimensions of outsourcing through a series of semi‐structured interviews and group discussions with 55 key informants. The findings reveal five key dimensions to the outsourcing relationship: core competencies, brand compatibility, organizational culture, operational tension, and systems of review, evaluation and control. It is concluded that, whilst there is evidence that the outsourcing of hotel restaurants can offer substantial benefits for both hotel and restaurant companies, it is important that the relationship is treated as more than merely the contracting‐out of support services. The provision of food and drink is an important and integral part of the hotel product and the complexities of the relationship between the partners, particularly in terms of issues such as brand association, organizational culture and operational tension, should not be underestimated. The impact on consumer perceptions of the hotel product and consumer satisfaction should also be considered carefully.