Radisson MG Road in Delhi opened its much-anticipated world cuisine restaurant LORE – Recipes Retold for Today this week, signalling hoteliers’ growing
focus on experiential dining as a strategic lever to boost food and beverage (F&B) revenues — a segment that is rapidly outpacing traditional room revenue in India’s hospitality business.
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Located in the capital’s bustling MG Road district, LORE is designed as an all-day dining destination rooted in narrative-led cuisine, weaving together global culinary traditions. Its launch comes as the hotel industry increasingly looks beyond rooms to drive growth, with F&B emerging as a critical component of overall profitability.
F&B’s rising share of hotel revenue
Industry data shows F&B is no longer a peripheral service but a major revenue engine for hotels. Within many Indian properties, F&B — comprising restaurants, banquets, cafes, bars and catering — now contributes approximately 35-50% of total revenue, narrowing the historical gap with room income and reflecting evolving consumer behaviour around eating out and experiential dining.
Analysts note that this shift mirrors broader structural changes in the hotel business. While room revenue growth has moderated in recent years amid supply expansion and softening average room rates, F&B revenues have grown steadily as urban consumers spend more on eating out and experiential formats. Global projections also support this trend: the hotel food and beverage services market was valued at around $480 billion in 2025 and is expected to more than double by 2035, at a CAGR of nearly 9.5%, driven by demand for premium, personalised dining experiences.
Why experiential concepts matter
LORE’s emphasis on thematic ‘chapters’ such as Indian Short Stories and Scrolls from the Silk Road reflects this shift towards differentiated offerings that go beyond traditional hotel dining. Executive Chef Kush Koli has curated dishes that blend heritage with contemporary techniques, a strategy increasingly used by hotels to attract local diners and increase footfall beyond guest rooms.
Experts say such storytelling and culinary innovation can materially impact F&B performance. Properties that position their restaurants as standalone dining destinations often see a 15-30% uplift in F&B sales, with well-executed concepts also driving repeat visits and even room bookings.
This focus on creative, narrative-driven dining is part of a wider shift in hospitality revenue strategy. Hotels are investing in beverage programmes, artisanal coffee, signature cocktails and curated menus to capture larger shares of diner spend — a response to changing consumer preferences for experiences over transactional dining.
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Market momentum notwithstanding, challenges remain
Despite strong growth, operators face headwinds such as rising food inflation and labour costs that can compress margins, even as they race to innovate. However, with the F&B segment’s contribution to total revenues on the rise and experiential dining increasingly valued by urban consumers, launches like LORE underscore a broader realignment in how hotels view their food and beverage businesses — not as cost centres but as key revenue drivers in a competitive market.
