NewsStocksRadisson MG Road Delhi Launches LORE Restaurant as Hotels Focus on F&B Revenue GrowthRadisson MG Road Delhi Launches LORE Restaurant as Hotels Focus on F&B Revenue Growth
Radisson MG Road Delhi opened LORE restaurant, showcasing the hotel industry's strategic focus on experiential dining as F&B operations now contribute 35-50% of total hotel revenue. The global hotel F&B market, valued at ₹40,000 crores in 2025, is projected to double by 2035 with 9.5% CAGR. Well-executed dining concepts generate 15-30% F&B sales uplift while driving room bookings and repeat visits.
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Radisson MG Road in Delhi has opened LORE – Recipes Retold for Today, a world cuisine restaurant that signals the hospitality industry's strategic shift toward experiential dining as a key revenue driver. Located in the capital's bustling MG Road district, the all-day dining destination represents hotels' growing focus on food and beverage operations beyond traditional room revenue.
F&B Emerges as Major Revenue Engine
The restaurant industry within hotels has undergone a fundamental transformation, with food and beverage operations no longer serving as peripheral services but becoming critical profit centers. Industry data reveals the significant contribution F&B now makes to hotel revenues:
| Revenue Component | Contribution Range | Traditional Role |
|---|---|---|
| F&B Operations | 35-50% of total revenue | Previously peripheral service |
| Components | Restaurants, banquets, cafes, bars, catering | Now major revenue engine |
| Growth Pattern | Steady expansion | Outpacing room revenue growth |
This shift reflects evolving consumer behavior around dining experiences and eating out, with F&B revenues growing steadily even as room revenue growth has moderated due to supply expansion and softening average room rates.
Market Growth and Global Projections
The global hotel food and beverage services market demonstrates robust growth potential. Market analysis shows the sector was valued at approximately ₹40,000 crores in 2025, with projections indicating it will more than double by 2035. This expansion is driven by a compound annual growth rate of nearly 9.5%, fueled by increasing demand for premium and personalized dining experiences.
Experiential Dining Strategy
LORE's concept centers on narrative-led cuisine that weaves together global culinary traditions through thematic chapters such as Indian Short Stories and Scrolls from the Silk Road. Executive Chef Kush Koli has curated dishes that blend heritage with contemporary techniques, reflecting the industry's move toward differentiated offerings that attract local diners beyond hotel guests.
Hotels implementing well-executed experiential dining concepts typically see measurable performance improvements:
| Performance Metric | Impact Range | Additional Benefits |
|---|---|---|
| F&B Sales Uplift | 15-30% increase | Enhanced profitability |
| Customer Engagement | Repeat visits | Brand loyalty building |
| Cross-selling | Room bookings | Integrated revenue growth |
Strategic Revenue Diversification
The hospitality sector's investment in creative dining experiences represents a broader revenue strategy realignment. Hotels are developing comprehensive beverage programs, artisanal coffee offerings, signature cocktails, and curated menus to capture larger shares of consumer spending. This approach responds to changing preferences for experiential dining over transactional food service.
Properties positioning their restaurants as standalone dining destinations benefit from increased footfall, higher per-customer spending, and enhanced brand recognition in competitive urban markets. The strategy also helps hotels reduce dependence on room revenue fluctuations while building sustainable profit streams.
Industry Outlook
Despite strong growth momentum, operators face operational challenges including rising food inflation and labor costs that can impact margins. However, the increasing contribution of F&B segments to total revenues and urban consumers' growing preference for experiential dining continue to drive investment in innovative restaurant concepts. LORE's launch exemplifies how hotels are repositioning their food and beverage operations from cost centers to strategic revenue drivers in an increasingly competitive hospitality market.
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