Coffee and tea have become essential parts of our routines. Many of us can’t imagine a morning without a steaming cup of joe to gear up for the day or an evening without a soothing herbal tea to ease us to sleep. That’s why when we travel, we want to find the same trusted drinks wherever we stay.
60% of American travelers value great coffee at their hotels and Airbnbs. Of that 60%, half even bring their own coffee with them when they travel. People don’t part with their coffee easily, so it’s no surprise that hotels and lodging venues have made coffee a readily accessible amenity whether appealing to guests in the lobby or the comfort of their rooms.
As we ride the waves of coffee’s rich history, we find ourselves in a time when specialty and craft coffee shape the culture surrounding this bold drink. Whether you agree a seven-dollar latte is worth it or not, there’s no denying how popular coffee shops have become. And they don’t seem to be losing traction any time soon. In 2024, the coffee market is valued at $132.1 billion and is expected to reach $166.4 billion by 2029.
So, what does this mean for your hotel business? Having a strong coffee culture can appeal to your guests. Not only will they enjoy having access to a valuable part of their routine, but they’ll also think more highly of your food and beverage overall. Investing in the right coffee and tea program is a great opportunity to increase profit and round out your hotel’s food and beverage offerings.
A New Status Quo
Guests have undoubtedly raised their standards when it comes to coffee in hotels. Once upon a time, all hotels had to do was provide basic brews at the mini bar of guests’ rooms. Coffee was most likely either instant or dispensed from a capsule, and the hotel could check off the box that said they provided the service. It left guests disappointed and underwhelmed, often opting to avoid the product altogether and buy their coffee from the nearest coffeeshop instead.
Many hotels have taken notice of this and elevated their offerings to better meet guests’ expectations. With a focus on appealing to their consumers, individual hotels began upgrading their coffee machines and equipment. Using professional tools, guests could now make themselves cups of fragrant, freshly ground coffee without leaving their rooms. With an increase in quality, guests no longer had to wander outside of the hotel for their standards to be met.
Younger Generations Brewing Change
These new standards for hotel coffee can be partially attributed to younger generations’ preferences. Millennials and Gen Z now make up more than half of hotel guests. These guests prefer to have exciting, engaging experiences with their coffee and are huge proponents of the current craft coffee movement. These consumers value convenience that does not sacrifice the quality and flavor of the coffee they’re enjoying.
As hotels shift to meet these consumers’ preferences, they have had to feature more premium offerings. The increase in quality can enhance a hotel’s food and beverage program overall and better a hotel’s reputation among guests.
Coffee As a First Impression
The first thing guests will see is the hotel lobby. Oftentimes, coffee is available just past the front desk. With the right coffee and tea selection, you set the tone for your guests’ stays. A delicious cup of coffee can welcome guests as effectively as a warm greeting.
Not only does it form your guests’ first impression, but it’s also available at every stage of a visitor’s stay. Coffee can then become a reference point for your hotel’s food and beverage offerings, enticing guests to see what else your culinary services have to offer.
Enhanced Guest Experience Leads to Repeat Business
A big part of appealing to guests is making them feel pampered and cared for. When guests feel their needs are met, they are more likely to return. Offering a curated selection of coffee and tea can create a sense of luxury that can make your hotel stand out from the competition. This can foster brand loyalty and create word-of-mouth marketing that brings in repeat visitors and possibly attracts new ones.
For guests that prioritize the food and beverage offerings at a hotel, this can draw them in. In time, your hotel may become a go-to destination for travelers who enjoy these comforts.
Upselling Opportunities
Coffee and tea aren’t just about what’s served at breakfast. As we mentioned before, coffee and tea can be incorporated into every aspect of a guest’s stay. After all, many people enjoy cups of coffee well into the evening or hot mugs of tea to relax them in the afternoon and at night.
Upselling is a key revenue generator when a hotel offers premium options. With coffee and tea, hotels can do so at the following touchpoints:
- In-Room Service: Premium coffee machines and equipment allows customers to prepare their coffee the way they like it. Making tea kettles available in rooms can appeal to tea drinkers. Offering additional coffee pods or specialty teas for a small fee can be an easy upsell that feels like an added convenience for guests.
- Lobby and Lounge Areas: Coffee and tea are great ways to bring people together. Customers value a curated experience that allows them to linger in public spaces and enjoy spending time somewhere they can relax.
- Room Service: Specialty coffee and tea can also be sold in a package to support your room service offerings. This can increase the value of your room service breakfast and dessert and lead to more sales.
Profitability in Hotel Cafés and Restaurants
Many hotels have full-service dining options or cafés that centralize coffee and tea beverages, including specialty espresso drinks, cold brews, and wellness teas. Adding these spaces can create an opportunity for higher-margin sales. Within a hotel café, you can consistently upcharge for artisanal blends, loose-leaf teas, flavored syrups, milk alternatives, and even pastries.
Opening these lines of business can also create opportunities for partnerships. By collaborating with local roasters and tea curators, you can create authentic local experiences. This can be especially engaging for tourists who are attracted to a particular area.
Catering and Meetings Revenue
Business travelers are a key demographic that can appreciate a well-executed coffee and tea program. When hosting meetings, conferences, or corporate events, hotels can generate substantial additional revenue by offering high-quality coffee and tea options as part of their catering package.
Trust In Tradecraft
The world of craft coffee and tea is vast and can be difficult to navigate. We at Tradecraft want to be your trusted partners to ensure success for your business.
We partner with local roasters across the country to deliver high-quality products that consumers love. By prioritizing cause-based companies that drive change and ethically source their products, we meet consumers’ trend-forward needs in the constantly evolving coffee and tea space.
With Tradecraft’s wide selection of specialty coffee, tea, cold brew, and kombucha, we can create a unique experience that helps your business stand out to your guests.
In the competitive world of hospitality, offering high-quality coffee and tea may seem like a small detail, but it’s one that has the potential to generate significant revenue. Whether through upselling, creating unique guest experiences, or enhancing meeting and event services, coffee and tea programs offer multiple revenue-generating opportunities for hotels.
Investing in the right products, offering exceptional service, and creating unique experiences around coffee and tea can drive guest satisfaction, create memorable moments, and ultimately, boost a hotel’s profitability. In a world where customers crave unique experiences, it’s the little touches, like a perfectly brewed cup of coffee or an expertly steeped cup of tea, that can set your hotel apart.
