< PreviousBIG INTERVIEW 20 | MAY 2021 | HOTELIER INDIA www.hotelierindia.com pacity as well as meetings and events global expertise will ensure consistency for the same meeting across hotels with similar meet- ing experience such as F&B experience, for e.g. Breakouts are a popular concept in any business event. Can hy- brid events have small group interactions with panelists after a session? Microsoft Teams allows breakouts and then ease the contact be- tween participants including panelists. Presenters can optimise their time, jump from one breakout to another, and interact with many participants. Content is the key in business events. How can hybrid events el- evate this aspect to justify virtual attendance? We need more time to estimate the impact of hybridation on event attendance. By optimising the process and budget to attend events, organisers will have the opportunity to attract a wider au- dience to their events. Virtual attendees will then become physical participants during next sessions. Are there tools that can calculate potential ROI of virtual vs physical participation in such events? This new solution needs to be experienced and we need to moni- tor the usage and user’s behavior to follow those metrics. RoI is dependent of the results of the meeting’s objectives. There is room for virtual and physical; we need to look at ways to improve this experience to best answer our customers’ needs. Why will the Accor ALL Connect hybrid meeting concept benefit your corporate clients? COVID-19 has deeply impacted the M&E market; digital tools be- came the norm to meet changed customer behaviour. Accor’s ALL Connect hybrid meeting concept helps M&E planners organise seam- less hybrid meetings without being concerned about technology. In Accor meeting spaces, Micro- soft Teams Rooms and Surface Hub 2S people on-site can connect with those joining remotely with audio and video device experiences. It focuses primarily on small hybrid meetings (up to 50 in-hotel partici- pants) where it combines Accor’s service culture with Microsoft Teams’ collaboration technology. This offer- ing enables corporate customers and meeting planners to combine physical in-hotel meetings with vir- tual interactions across multiple lo- cations simultaneously. Does the ALL CONNECT have SLAs to ensure glitch-free performance for participants? The service is being finalised. A few pilot hotels are being run across different brands and regions to en- sure service will be at is best, for hotel staff, meeting planners and of course, participants to guarantee seamless experience. Since announcing ALL CONNECT, has Accor seen an increase in en- quiries for hybrid events, especially in India? The number of requests really de- pends on the sanitary situation. But, there markets are moving progres- sively out of the crisis where demand for hybrid meeting is developing like Australia, China, Japan, Middle East and yes, India. How will ALL CONNECT offer Accor a new revenue source? Does it have any digital upgrades to generate in- cremental revenue streams? It will become a new revenue stream for the Group as corporate custom- ers will focus on more sustainable corporate travel, continuing to pri- oritise health and safety, while main- taining business connections. The offer will be distributed on all chan- nels, starting with dedicated search engine on meetings.accor.com and sales solutions for Accor sales of- fices. HI Virtual meetings, which emerged as lifesavers during the pandemic, will dominate the hospitality sector even after physical meetings and events restart. ALL Connect will become a new revenue stream for Accor as corporate customers focus on more sustainable corporate travel, continuing to prioritise health and safety, while maintaining business connections.”INDUSTRY REPORT www.hotelierindia.com HOTELIER INDIA | MAY 2021 | 21 47% of Indian travellers are willing to book international travel within six weeks of restrictions easing, compared to the global average of 41% INDIAN TRAVELLERS READY TO ADOPT ‘DIGITAL HEALTH PASSPORTS’ TO RESTART TRAVEL As governments and the travel industry explore the benefits of digital health passports, the message from Indian travellers is clear – digital health passports can be a vital tool in opening up travel once again. The ‘Global Travel Survey’ by Amadeus Labs found that 93% of Indian travellers would be comfortable using a digital health pass- port for future trips, as the appetite to travel remains high with nearly half (47%) expressing their interest in booking international travel within six weeks once the restrictions are lifted. It further revealed that over the past three quarters, 79% of Indian travellers would be willing to store their travel health data electronically if it meant it will enable them to travel sooner, and if it enabled them to pass through the airport faster with less face-to-face interactions with others. The international study, which included over 1,000 respondents from India, indicates that there is enough incentive for authorities and businesses to accelerate plans for digital health passports. In fact, 57% stated that they would be happy for a digital health pass- port to become the norm. CHECKS AND BALANCES Surprisingly, the highest scepticism around digital health pass- ports was reported among Gen Z, with 12% saying that they would not be comfortable using a digital health passport under any cir- cumstances. Even though receptiveness to sharing data is high, when asked about the technologies that would increase confidence in travel in • 34% of respondents are worried about data security risks with their personal information being hacked • 28% of respondents are concerned about lack of transparency and control over how and where their data will be shared DESPITE AN OVERWHELMING RESPONSE TO DIGITAL HEALTH PASSPORTS, THERE REMAIN CONCERNS ABOUT ASSOCIATED SECURITY AND PRIVACY ISSUES: the next 12 months, mobile solutions remained a popular option, with suggestions that include: • Mobile applications that provide on-trip notifications and alerts (51%) • Contactless mobile payments (49%) • Facial recognition technology (48%) • Boarding pass on mobile (47%) Mani Ganeshan, Head of R&D, APAC, Amadeus, said, “As busi- nesses navigate out of the global pandemic, the future of travel looks optimistic. This study acknowledges the appetite for tech- nologies that can address the concerns of travellers, whether it is better access to information or reducing physical proximity. Inno- vations such as digital health passports can catalyse both traveller confidence and the opening of international borders once again. With the world racing towards digital transformation unlike ever before, sophisticated travel-friendly apps will help build the much- needed confidence for travellers both worldwide and in India.” HI 93% of respondents said they would be comfortable using a digital health passport for future travel.EVENTS 22 | MAY 2021 | HOTELIER INDIA www.hotelierindia.com Hoteliers have always been at the forefront of innovation when it comes to design and architecture. However, they are now facing unusual and unimaginable challenges from a structural and design standpoint. Keeping in per- spective that they are striving hard to adjust to the new normal where hygiene, safety and superlative guest experience go hand in hand, Hotelier India presented its first webinar under the ‘Design Insights’ series recently. At this virtual event, a panel of esteemed hoteliers and archi- tects shared their opinions about the new design ethos adopted by the hospitality industry. It comprised Michael Wang, RA/AIA, Senior Continent Leader, Global Design Asia Pacific at Marriott Ho- Designers can play with different colours and materials that are easier to clean, so the that housekeeping staff can maintain rooms and public areas without difficulty. RETHINKING HOSPITALITY DESIGN DURING THE PANDEMIC At Hotelier India’s first webinar under the ‘Design Insights’ series, prominent hoteliers and architects offered their opinions about design ethos for the hospitality industry tels, Reema Diwan, Director, Design & Technical Services, India & South Asia at Accor, Architect Prem Nath, founder of Prem Nath and Associ- ates and Niyati Chavan, Principal Ar- chitect and Founder of AbhiKrama Designs. Vinita Bhatia, Editor of Ho- telier India, moderated the webinar. Bibhor Srivastava, Country Head of ITP Media India, introduced the panellists, drawing attention to the pertinent question on top of most BY PRANITA BHOSALE EVENTS EVENTS www.hotelierindia.com HOTELIER INDIA |MAY 2021 | 23 Please give an example where the hotel design was used to reduce operating cost? Michael Wang: Even before COVID-19, Marriott endeavoured to create overall effiency at the back of house area. So, we try to compress this area by 20% by using natural light as well as open and flexible planning. This is also critical in public areas. Fortunately, we have 7,500 hotels worldwide, which gives us lots of data to work with. This is an incredible information source to tap into and understand areas where we can reduce cost with- out affecting guest experience while creating a better investment model for us. Most MEP Design Basis Reports (DBR) are the same rehashed content. Can hotels use a standard set of MEP DBRs? Reema Diwan: Most hotels and developers have set MEP DBR standards on how the MEP and engineering elements should flow in a hospitality space, depending on whether it is a pre- mium, luxury or lifestyle property. It is also pretty standard- ised for Accor. However, we are very practical in our approach and keep adapting this checklist based on the feedback of what works and doesn’t in our hotels. Evolving these stand- ards helps us stay ahead of the competition, and also incorpo- rate new products and services as part of the DBR and guest experience. What are three top takeaways for architects during the pan- demic? How are they incorporating it in their designs for ho- tels across segments, be it rooms, public areas, dining and wellness? Ar Prem Nath: Designers and hoteliers need to create a new environments that it is safe for guests and where they can en- joy the ambience as well. For e.g. people don’t prefer sitting in indoor cafes, so there needs to be more outdoor places to so- cialise. Secondly, manpower is a hotel’s lifeline, so all staff areas are important. The right kind of lighting and HVAC has to be used across back of house and guest-facing areas. Designers also need to use new, but less expensive, technologies that ho- tels can maintain in the long run. They should opt for simplified, environment friendly and easy to maintain products. What are some ideal materials for room furniture for a mid-scale hotel, which are low maintenance? Besides paint, what easy-to- maintain materials can cover walls in rooms and corridors? Niyati Chavan: When it comes to furniture, it is best to avoid those with grooves and moulding as it gathers dust, which is difficult to clean. The materials should have texture and depth that is sustainable for repeated usage. One can also do layering with normal paint, which is cost effective. There are antimicro- bial wallpaper as well. Glass is another good medium, where one can have backprint- ed glass or print on top of it. Moreover, it is very easy to disin- fect this surface. For the wall, one can go for textured or lasered fabric, which can be wiped off easily if it is part of the paneling. However, fabric on the wall is best avoided. QUESTIONS ANSWEREDEVENTS 24 | MAY 2021 | HOTELIER INDIA www.hotelierindia.com Michael Wang, RA/ AIA, Senior Continent Leader, Global Design Asia Pacific, Marriott Hotels has been with the company for over 23 years. He is respon- sible for overall design and project management relat- ed activities for Marriott’s portfolio of 23 brands in APac. He also oversees the development and execution of strategies to respond ef- fectively to changing de- velopment and business needs in the region. MEET THE SPEAKERS people’s minds – how is the hospitality industry creating designs that ensure the safety and wellbeing of guests and staff without taking the edge off aesthetic appeal. Wang flagged off the dis- cussion by stating that the pandemic has been a wake-up call for hotel designers, architects and hoteliers. “We have to examine all preconceived ways of doing things and to me it is about bringing back some basic fundamentals of design, like simplicity. When there was no air conditioning, there used to be lot of open spaces to allow airflow and we treated sun angles differently. Many of us have forgotten these important design criteria, which COVID-19 has forced us to re- member,” he stated. Though form continues to follow function, guest experience is critical, especially in current times. While hoteliers have been fo- cusing on touch-less and contactless solutions, they cannot lose sight of the fact that the hospitality business is built on the bed- rock of human interaction. How can they curate the use of mobile apps and other touch-less technologies to control density in pub- lic spaces without affecting the guest experience or make gues- trooms resemble a highly sanitised area? Diwan noted that while the hospitality industry always adopted technology quickly, currently it is integral to hotel design. “While it is important to have technology well-integrated with the overall experience, it should be less complicated. The moment the tech- nology interface is simple and effortless, guests of every genre can access it with ease and this won’t hamper the guest experience,” she stated. She recommended swift keyless check-in and check-out without visiting the reception desk, making online payments, and smart lights in public washrooms with touch-less surfaces. Incidentally, the last year saw an in- crease in remote working, with many professionals checking into hotels for workcations. This development offers hoteliers design opportunities to provide flexible services to guests, including private offices, co-working spaces or Zoom suites. What matters is how this to achieve this with mini- mal adjustments to a guestroom. Diwan stated that ancillary spaces that gained an elevated importance during the pandemic, be it gues- trooms or even in public spaces. “Right now, our design decisions fo- cus on creating a more adaptable experience for guests, which is sim- ple yet spectacular. Paying attention to basic design principles, we have modular forms of furniture where Reema Diwan recently joined Accor as Director, De- sign & Technical Services, In- dia & South Asia. She will lead the planning, design and con- struction of projects under Accor and will design high- impact guest experiences. In the past, Diwan has been as- sociated with Starwood Ho- tels & Resorts and Taj Hotels, Resorts & Palaces, where she was instrumental in crafting brand identity and conceptu- alising various brands under the IHCL portfolio. Architect Prem Nath, founder of Prem Nath and Associates, has been practic- ing for over five decades and has given India many firsts in the hospitality segment. This includes the country’s first revolving restaurant at Hotel Ambassador in Mumbai and India's first health spa and resort, Golden Palms, at Ben- galuru. He is now working on an upcoming destination entertainment resort with an artificial beach at Delhi-NCR. Niyati Chavan is the Principal Architect and Founder of AbhiKrama De- signs, a firm she set up in 2002. An graduate in archi- tecture, she completed her formal education in Project Management from NICMAR and later received her IGBC Leed Professional certifica- tion. As a strong advocate of a human-centric ap- proach to design, she is re- garded as a subject matter expert with over two dec- ades of experience.EVENTS www.hotelierindia.com HOTELIER INDIA |MAY 2021 | 25 guests can be comfortable, and which can be adapted by any ho- tels based on their needs,” she stated. AIR, AIR EVERYWHERE Air quality is one of the most scrutinised factors in hotel design right now, as guests are growingly concerned about the transmis- sion of COVID1-9 virus. With recent reports stating that it can be airbone, this apprehension is justified. Ar Prem Nath pointed out that since each room is independent in a hospital, air does not travel from one room to the other. A similar principle needs to be applied in hotels. He suggested plac- ing self-contained fresh air units near each room’s window to keep the air carbonised and ionised. “The rooms should also be well- maintained and ventilated to avoid contamination. Hotels can use filters to trap the virus before it spreads,” he added. He opined that in the days ahead designers should relook at using clean, smooth surfaces without mouldings or texture. “They can play with different colours and materials that are easier to clean, so that housekeeping staff can maintain rooms and public areas without difficulty,” Nath opined. Lighting is another element that can go a long way in influencing mood besides setting the right tone for guestrooms. Chavan be- lieved that hotels should leverage it to mimic by deploying lighting systems nature that follow the Circadian cycle. “This can be done by having more outdoor light, which can also be timed to filter into the room as the hours go by. Moreover with the onus on hygiene, UV lights can be used for disinfection of guestrooms. The can use auto- timed UV light, where the moment a guest exits the room, the UV light comes on. This reduces human in- tervention and ensures the room is sanitised automatically,” she sug- gested. During this interactive webinar, the panellists answered several questions that participants posed to them. A key takeaway from the virtual event was the need for prioritisation when it comes to hotel design. Ultimately, every architect, de- signer and hotelier has to juggle the challenge of incorporating various smart design solutions without es- calating the cost per key or compro- mising the wellbeing of guests and associates. They have to keep func- tionality, efficiency and aesthetics at the forefront, while keeping budget- ary constraints at the back of their mind. A tough call, definitely. HI You can watch the entire webinar on this link - https://bit.ly/3gKUf8k F&B 26 | MAY 2021 | HOTELIER INDIA www.hotelierindia.com Many restaurants shifted towards cloud kitchens during the pandemic, using their existing kitchens for takeaway and delivery orders. This trend is likely to continue as customer footfalls remain dismal BY PRANITA BHOSALE ADVANTAGE: CLOUD KITCHEN Even before the pandemic struck, food delivery was a successful business for most hotels and restaurants. 2020 ended up accelerating its growth as customers started ordering-in with gusto. F&B establishments, which were battling curfews, restricted timings, social distancing limitations along with curtailed manpower found it a viable revenue stream, at a time when customer footfalls were a bare minimum. This shift in business models also led to the emergence of cloud kitchens, which focus solely on fulfilling online food orders and delivery. According to industry reports, India had around 5000 cloud kitchens in 2019. Redseer expects this number to grow at 50% to 60% F&B www.hotelierindia.com HOTELIER INDIA | MAY 2021 | 27 year-on-year. In terms of the gross merchandise value (GMV), the cloud kitchen sector is likely to become a $3 billion industry by 2024, up from about $400 million in 2019. Another report by Allied Market Research valued the global cloud kitchen market at $43.1 billion in 2019, which is likely to reach $71.4 billion by 2027. Karan Tanna, Founder and CEO, Ghost Kitchens is unsurprised by these numbers. According to him, the cloud kitchen and food delivery business has been disrupting India’s food ecosystem for Madhav Kasturia, Founder, ZFW Hospitality. Debashish Yadav, CEO and Co-Founder, Licorne Hospitality. Cloud kitchens have two business models. In the first example, a food-tech partner offers retail kitchen space to multiple chefs and restaurants. While each manages their independent business, they have to pay an individual membership fee to the food-tech company. This covers rent, infrastructure, use of commercial equipment as well as operational overheads including dishwashing and storage of produce. In turn, the food-tech partner prioritises these brands in its search metrics, which increases their business prospects. Under the second model, a restaurateur uses a shared kitchen space to prepare multiple cuisines under different brand names. The company is responsible for all operational aspects of the business, and can promote its offerings through its own platform or those of third party food aggregators. MISE EN PLACE IN BUSINESS three main reasons – convenience, choices and cost. “The end-to-end food delivery experience of aggregators like Swiggy and Zomato has made customers dependent on convenience of ordering food at home. Moreover, factors like improved packaging, delivery time and quality of food are encouraging the rise of food delivery,” he opined. “The growth of cloud kitchens is a global phenomenon. Even high street restaurants are depending on food delivery as a major revenue source.” SHINING THROUGH THE CLOUDS Some industry players call cloud kitchens the latest modification of low-budget restaurants, which are often unable to provide adequate seating space to customers. In con- temporary times, social distanc- ing norms have made it even more difficult for them to continue with their business operations in small premises forcing them to turn into cloud kitchens. Although, diners cannot pick up orders directly from these establishments since there are no storefronts, they can cater to consumer demand through online channels. India’s cloud kitchen features several established players, includ- ing Rebel Foods and Box8, who have witnessed significant business growth in the past five years. Third F&B 28 | MAY 2021 | HOTELIER INDIA www.hotelierindia.com party food aggregators like Swiggy and Zomato dominate the food-tech ecosystem followed by last mile delivery services like Dunzo and Shadowfax. In the past five years, many others jumped the bandwagon, including niche specialist players who leverage this model to cater to patrons at scale. Ashwin, Co-Founder of TTSF Cloud One stated that cloud kitchens can be serviced through food aggregators as well as the restaurant’s own online-ordering website or app. The latter offers better profit since aggregators charge high commissions. “Cloud kitchens that heavily focus on building traffic via their own website or app can disrupt the current functioning of India’s food-tech ecosystem. Due to the low CapEx involved, it will also enable more supply to aggregators across all geographies,” he pointed out. LICENSED TO COOK Many F&B players view cloud kitchens as a remarkable channel to augment their sales and reach. They can operate out of a single kitchen space, serving either one type of cuisine or an assortment of menus from different brands. Moreover, they can deliver directly to customers’ doorsteps without having a physical existence, as long as they have the license to cook and serve, for their own brand or that of others. Chef Vineet Manocha, VP-Culinary of Lite Bite Foods rattles off the advantages offered by a cloud kitchen model – low operation costs, reduced risk, quicker turnaround of concept, competitive pricing, viable advertising and access to a fast-growing delivery market. “Since this concept does not require elaborate designs or a guest interface, it is more or less a cookie-cutter model. Standard equipment is required, getting unobtrusive spaces is easier and business scale up is quicker as compared to restaurants. Our site finalisation to operations time is less than 35 days for a large 10-brand kitchen, while smaller spaces can be developed faster,” he explained. In addition to the low CapEx costs for setting up a cloud kitchen, De- bashish Yadav, CEO and Co-Found- er, Licorne Hospitality believed that faster time-to-market is another ma- jor advantage, especially for existing restaurant brands. “Lower operat- ing expense due to reduced rental is also a significant game changer,” he stated. Yadav added that scaling-up is relatively faster given that third-par- ty cloud infrastructure is now avail- able for rapid expansion. “In theory, you can open 10 locations within two months but the key is ensuring sustainable growth and maintaining quality standards,” Yadav pointed out. ACCORDING TO INDUSTRY REPORTS, INDIA HAD AROUND 5000 CLOUD KITCHENS IN 2019. REDSEER EXPECTS THIS NUMBER TO GROW AT 50% TO 60% YEAR-ON-YEAR. IN TERMS OF GROSS MERCHANDISE VALUE (GMV), THE CLOUD KITCHEN SECTOR IS LIKELY TO BECOME A $3 BILLION INDUSTRY BY 2024, UP FROM ABOUT $400 MILLION IN 2019. The long-term business challenges while scaling up include consistency in food quality across multiple stores in a city. . Himanshu Taneja, Culinary Director - South Asia, Marriott International.F&B www.hotelierindia.com HOTELIER INDIA | MAY 2021 | 29 Agreeing to this observation, Madhav Kasturia, Founder of ZFW Hospitality agreed that an industry player could open a cloud kitchen in any commercial locality without worrying about restaurant facade or design. “Capital, time and efforts in a cloud kitchen model needs be invested in preparing and serving good food as well as marketing it to end-customers in a targeted fashion. If it achieves an optimal product-market fit in a particular sub- zone, it can scale-up operations in that zone or replicate the model in other similar sub-zones,” he stated. Hence, it is pertinent for F&B players to identify their customers and lay out other metrics in accordance to their audience. While opening cloud kitchens is easy given the low capital re- quirement and operational expense, sustaining it can be daunt- ing. Costs involved in customer acquisition and retention as well as delivery management make the unit level economics challenging. Hence, scaling up of the business requires lots of deliberation. Tanna explained, “From the investment and go-to-market point of view, scaling up is easy. However, for sustainable operations it makes sense to scale up to a new unit only after achieving profitability at few units earlier and learning the nuances of economics of unit.” Moreover, players have to invest heavily to ensure high online visibility and relevance. Trust and loyalty are also essential to sus- tain this business, hence cloud kitchen companies have to adopt out-of-the-box strategies to attract and retain a dedicated cus- tomer base. “In today’s age, marketing costs of aggregators have shot up and new brands are unable to reach their break-even point with- out investing lakhs of rupees in marketing in the first year,” Kas- turia stated. Other short-term challenges involve finding the right kitchen and FOH team. Kasturia added that the long-term challenges while scaling up include consistency in food quality across multiple stores in a city. “This occurs if SOPs aren’t defined clearly. Also, pilferage and wastage of raw materi- al lead to a much higher percentage of cost of goods sold than what was projected,” he pointed out. Chef Manocha also rued the fact that cloud kitchens are mostly dependent on online delivery platforms or aggregators. “The listing fees or marketplace commissions currently are extremely high and need reworking and better regulation. The operator also spends on delivery charges and visibility, which squares off the savings made on occupancy cost,” he added. SHIFTING GEARS The intermittent lockdowns since last year saw many organised F&B establishments slam the brakes on their business. According to the Na- tional Restaurant Association of In- dia (NRAI) nearly 90% of restaurants registered with it temporarily shut down operations in 2020. A CRISIL report also estimated that the coun- try’s organised dine-in restaurants faced a 40% to 50% dip in revenue until March 2021. During the pandemic, many res- taurants, especially those in the un- organised sector, decided to shift towards cloud kitchens. The major reason was high operating costs. Many restaurateurs did not get a good rent deal from their landlords, forcing them to shut operations or opt for delivery-only cloud kitchens. Yadav of Licorne Hospitality also pointed out that traditionally the failure rate in the restaurant industry is high. “The lockdown forced many restaurants to shut doors temporarily, or permanently, as per government orders and due to unsustainable conditions. Most brands shifted focus and used their existing kitchens for takeaway and delivery orders, which is a continuing trend,” he added. Agreeing with this conjecture, Neville Vazifdar, Founder and Di- rector of Royal China, JIA and Kuai ALLIED MARKET RESEARCH VALUED THE GLOBAL CLOUD KITCHEN MARKET AT $43.1 BILLION IN 2019, WHICH COULD REACH $71.4 BILLION BY 2027. While opening cloud kitchens is easy given the low capital requirement and operational expense, sustaining it can be daunting. Chef Vineet Manocha, VP-Culinary, Lite Bite Foods.Next >