David McCaslin, president of Northwood Hospitality, understands the evolving nature of hotel F&B programs — and how high-profile players can change the game. Northwood owns The New York Palace in New York City, where renowned Chef Michel Richard will open his first Manhattan-based restaurant later this year.
Celebrity chefs are not just making the rounds of television shows and cookbook tours anymore. Increasingly, they are setting up shop at the helm of prominent hotel restaurants.
With hotel F&B programs facing ever-growing pressure to contribute to a property’s bottom line, working with high-profile chefs can provide a powerful boost — as long as such partnerships are crafted carefully, keeping in mind the strengths and weaknesses of all parties involved.
As part of a story in the May print issue, HOTELS asked McCaslin for his thoughts on the best ways to help partnerships with star chefs shine.
HOTELS: How did your partnership with Michel Richard come about, and what was the main reason you decided to work with him?
David McCaslin: We conducted a full RFP process and interviewed a variety of entrepreneurs and companies to see what would be proposed. After going through more than 20 different options, we decided to work with Michel.
He understood both the hotel world and the freestanding restaurant world. He is a James Beard Award winner. We have a very international clientele, and we needed to appeal to a wide variety of guests. We have a beautiful, historic space, which we needed to imbue with some personality and playfulness. Michel is one of the great culinarians who is helping to redefine a luxury dining experience, just as we are doing with the hotel. Michel had the background and personality to do the most exacting high-end dinners as well as more casual fare.
HOTELS: What is your arrangement with Richard (lease, management contract), and what level of control do you have over decisions made regarding his restaurant at your property?
McCaslin: We have a management contract, as we believe the era of the leasehold is over unless the lessee has a major balance sheet. We also wanted an agreement where we were in a true partnership, for both culinary and financial reasons. Michel has a major influence on the design of the restaurant and the management staff. He has full control of the culinary side, and he is a true partner on the operations side.
HOTELS: What do you expect to be the biggest benefits of this partnership for your hotel?
McCaslin: The striking beauty of the restaurant is tucked away within a historically landmark-certified interior that is reminiscent of a museum. With The New York Palace implementing Michel’s design and programming concepts, it will expose more people to this truly unique space, as well as Michel’s cuisine and our exceptional service. The restaurant will bring new guests to the hotel so they can see all the changes at The New York Palace and extinguish some of their dated images of the hotel. For our current guests, it is a way to ensure that all aspects of their stay are truly innovative and evocative of an overall luxury experience.
HOTELS: What advice would you offer other hoteliers regarding working with celebrity chefs or any outside restaurant operators?
McCaslin: Don’t focus on just the financial arrangements. There will be good times and bad. You need to be able to have a relationship that can work through all kinds of external events, and you need to have the same vision for the property.
HOTELS: What is your expectation for the future of these types of partnerships throughout the industry?
McCaslin: In the future, I think you will see F&B helping to define a hotel more and more. I think you will see these types of partnerships used selectively where there are unique opportunities. I think most people are scared of F&B and want the simplest, safest branded experience they can get. These types of partnerships are not for every opportunity, and I don’t think they work if they become formulaic.