Secrets of the modern minibar

29 April 2003 by
Secrets of the modern minibar

Passion fruit massage oil, chocolate body paint, Banana Dick Lick, kinky handcuffs and a "real-feel" vibrator are not what you'd call routine minibar offerings. But all of these items and more can now be purchased without leaving the comfort of your hotel room - if you're staying in the right hotel, of course. And if you're concerned about what might come up on your bill if you do decide to indulge yourself, only the words "room service" will hint at your purchases.

This is no normal minibar, but what is known as the Smut Drawer, available only at London's self-consciously trendy K-West hotel in Shepherd's Bush, a favourite haunt of the music and entertainment industry.

But if you were under the impression that a minibar still means just a small fridge stocked with overpriced wine, chocolate and mini-spirits, then think again. With the birth of the boutique, design-led and generally fashion-conscious hotel, minibars are experiencing a makeover.

"Ever since the emergence of the boutique-style hotels, the boat has been pushed out on all aspects of the hotel product, says Craig Markham, director of marketing at the Firmdale Hotels group, which includes the Charlotte Street and the Covent Garden hotels. "It's about giving our guests what they think they want and a little bit more."

Giving guests what they want has been the cause of both innovation and some dispute in the hotel industry, however. While you can buy sex toys at K-West, CDs (at retail price), silver yo-yos and shopping guides at the Firmdale hotels, and Mr Happy books and Berocca vitamins at Ian Schrager's properties, other hoteliers argue that minibars are unprofitable, a logistical nightmare and provide an impersonal service.

"The type of guests we have are in the media and entertainment business, so they're very receptive to things like CDs in the minibars," Markham says. "What we don't do is put spirits in the rooms because we feel very strongly about the service we provide for our guests - that means a gin and tonic should only be served with ice and lemon."

The type of guest required to make more unusual minibars successful is crucial. "Selling drinks from the minibar is no way as profitable as selling drinks over the bar," says Stephen Kyjak-Lane, K-West's general manager. "But the snacks, comfort food and flexibility we offer fits with the concept of the hotel, where people spend a lot of time in their rooms. We encourage them to stay in by providing what they want."

While some hoteliers are expanding their dry and wet minibar offerings, however, most admit they do not represent a real profit source. Servicing minibars is labour-intensive and generally necessitates dedicated staff members who fuel wage costs for little return. Unsold goods are wasted and much is lost through what hoteliers refer to as "spoilage" - guest theft or sabotage.

"You can make a profit from minibars but they will always be more of a guest amenity, something people expect, so we provide," says Sally Beck, director of sales and marketing at the Landmark hotel in London.

David Orr, managing director of City Inn, agrees. "Hotels have to invest in buying minibars so they have to show some return. However, it's more about giving people what they want, an accessible convenience. They're more of a service rather than a revenue stream you would expect to grow year on year." City Inn, a relatively young company, does not currently offer minibars but plans to install them this year.

Not only do minibars provide little return in terms of profit for hoteliers, but giving guests what they want can actually come at a price. So much so, in fact, that some hoteliers have decided that it either isn't worth it, or that tight management and a simplification rather than an expansion of the minibar offering is the only way forward.

"Unfortunately minibars are a necessary evil," says John Philipson, general manager of Rocco Forte's Lowry hotel in Manchester. "They're practically very difficult to manage. Our aim is to make them as useful as possible to the guest without making them financially painful to us."

The Lowry's solution to low-volume sales and high spoilage has been a simplification of the minibar service to encourage greater guest use and reduce staff maintenance. "Previously we were trying to create a luxury product out of the minibar to work in line with the rest of the hotel," Philipson says. "But because the volume of sales is never high, the cost of things unused or spoiled had to be covered by the price of the items."

Hilton has taken a more meticulous approach to ensuring profit ensues from all guest services, including minibars, by installing automated fridges, where an item is charged as soon as it is removed from the fridge. "We decided that having minibars in our rooms is a service we would like to continue to offer our guests," says Andrew Staley, facilities and environmental manager for Hilton UK & Ireland. "But research showed that so-called honesty bars did not make it financially viable for the hotels." Automated bars have now been introduced to most Hilton properties, at some cost, in a bid to stamp out spoilage. The company says the system works reasonably well, although it admits no system is foolproof.

Many hoteliers shy away from automated bars, since they could imply a lack of trust in guests, however justified that ultimately might be. "We tried automatic fridges but they were very difficult to manage and more trouble than they were worth," says Philipson at the Lowry. "It also says to the guest that we don't trust them."

Carrie Wicks, operations director at Firmdale Hotels, concurs. "We would not use electronic fridges because they are very impersonal and give the impression of mistrust," she says. "We control costs by keeping a close watch on what sells and what doesn't, and changing products accordingly."

Since minibars can represent something of a logistical minefield, some hoteliers are now deciding that they're simply not worth it. Peter Birnie, chief hotel inspector of the AA, confirms that star ratings do not require a minibar at any level, so hoteliers are free to make their own decisions.

Andrew Beale, managing director of Beales Hotels, has decided to take them out entirely. "If your hotel has a decent room service team who can guarantee quick service, than you can offer a cheaper and more personalised service that way," he says. "Customer theft from minibars is also hugely commonplace and necessitates exorbitantly marked-up prices to cover that. Guests will open a bottle of whisky, drink it and replace it with urine. Brandy is replaced with tea and vodka with water."

Alias Hotels has also decided not to offer guests a minibar service. "My fundamental problem with minibars is that they are not a personal service and that is what our hotels are about," says managing director Nigel Chapman. "I also think minibars are rather cynical because they're presented as a service but actually what you get is a very limited selection of highly priced products. I don't think we're losing any revenue stream by not offering them because of the high costs involved in running them."

But for the most part minibars look set to stay. Ultimately they represent a service and an opportunity for differentiation. And how a hotel chooses to maximise their potential is as free as the staff's imagination will allow.

Why did K-West introduce Smut Drawers? "It was just an idea I dreamt up one morning," says general manager Kyjak-Lane. "Don't ask what I was thinking about at the time - I just wanted to add some spice."

Minibars: turnover

Hotel>Number of roomsWeekly minibar turnover (approx)
K-West 222 \*£2,000
Charlotte Street 52 £1,000
The Lowry 164 £1,750
The Landmark 299 £10,000
\*not including K-Suites

Minibars: Price comparisions

Chocolate barSoft drinkSpiritWine (half-bottle)Water
K-West 60p £1.40 £4.80\* From £8.60 £1.40
Charlotte Street £1.50 £3 \* £16 £2\*\*
Rocco Forte Hotels 75p £1.50 \* £8.95 £1.50
Hilton Hotels £1.95 £2.30 £5.50 £5.50 £3.50
The Landmark £3 £2.25 £6 From £13.95 £3.95
St Martins Lane £2 £3 £6 £14 £3.50

\
Available from the bar
*\
complimentary water also provided

Minibars: Most expensive item
* K-West Moutard Reserve, (half-bottle), £11.20

* Charlotte Street Krug Champagne, (half-bottle), £60

* Rocco Forte Hotels RF Champagne (half-bottle), £11.95

* Hilton Hotels Champagne, £27.50

* The Landmark Red wine (half-bottle), £14.50

Minibars: Most unusual item
*\ K-West**
Set of candles, £5. Anything from K-Suites Smut Drawer, including Banana Dick Lick, Real Feel Vibrator and Kinky Handcuffs, from £5

* Charlotte Street CDs (selection), from £12

* Rocco Forte Hotels
Toffee-covered almonds, £1.50

* Hilton Hotels Paddington Bear, £12

* The Landmark The Landmark Lady: a box of the most frequently requested items by women. Includes E'spa products and curling tongs (complimentary)

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