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Hotel Industry Updates

Butler Hospitality Sets Sights on National Expansion in 2021

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Butler Hospitality takes on the responsibilities of staffing, logistics and brand standards for its clients. (iStock/vladko13)

Ghost kitchens are on the rise, and if there is anyone that knows that, it is Butler Hospitality. The firm, which is the first ghost kitchen for hotels, recently announced its expansion goals for the year. These include growing its reach from serving more than 40,000 keys in New York, Chicago, Miami and Washington, D.C., to over 200,000 keys from more than 50 hotel restaurants in 10 U.S. markets by January 2022.

“We have been working hard to help the hotel industry recover from lockdown in our current markets,” Vice President of Acquisitions Sarve Eshtehardi said. “Our industry has been searching for a solution to food and beverage for hotels for some time now, [and] the current pandemic has only accelerated the visibility around the need for innovation.”

“We want to make sure that we focus our resources where they will make the most impact and speed recovery for the industry.”

According to Eshtehardi, Butler provides a best-use solution that unlocks value in dormant or inefficient space and provides a steady cash flow to landlords through a transitional rent structure. “It’s a mutually beneficial solution, [and] our partners are excited to have Butler as a food and beverage solution and we’re equally as excited to build relationships in new markets,” she added.

Through its process, Butler will lease a restaurant inside of a full-service hotel and manage the front of house while activating the back of house into a delivery hub that offers virtual room service to nearby hotels that do not have kitchens. It also takes on the responsibilities of staffing, brand standards and logistics. Although the company is currently focused on the eastern half of the United States, it projects that it will serve hotel partners coast-to-coast by the middle of this year.

“We are aggressively growing with our current property owner, management and brand partners,” CEO Premtim Gjonbalic said. “We want to make sure that we focus our resources where they will make the most impact and speed recovery for the industry.”

Butler also plans to further strengthen its commitments to its current markets. “We’ve proven to our existing partners that we can turn around the loss leading restaurants required by their brands,” Eshtehardi added. “At the same time, Butler works hard to respect the brand equity that attracts guests to full-service properties.”

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