Butler Hospitality Announces National Expansion Pipeline

NEW YORK, Feb. 17, 2021 /PRNewswire/ -- Butler Hospitality, the first ghost kitchen for hotels, has announced its national expansion goals for 2021. Currently serving more than 40,000 keys in New York, Chicago, Miami, and Washington DC, Butler will serve more than 200,000 keys from more than fifty hotel restaurants in ten US markets by January 2022.

"We have been working hard to help the hotel industry recover from lockdown in our current markets," said Butler VP of Acquisitions Sarve Eshtehardi. "Our industry has been searching for a solution to food and beverage for hotels for some time now, the current pandemic has only accelerated the visibility around the need for innovation. Butler provides a best use solution, unlocking value of dormant or inefficient space, providing steady cash flow to Landlords through a traditional rent structure rather than an inequitable management agreement. It's a mutually beneficial solution, 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."

When Butler leases a restaurant inside of a full-service hotel, it runs the front of house and activates the back of house into a delivery hub that provides virtual room service to nearby hotels that do not have kitchens. Butler takes full responsibility for staffing, brand standards, and logistics. Currently focused on the eastern half of the United States, Butler will serve hotel partners coast to coast by mid-year. Immediate expansion plans include Los Angeles, the San Francisco Bay Area, and multiple markets in between.

"We are aggressively growing with our current property owner, management, and brand partners," said CEO Premtim Gjonbalic. "We want to make sure that we focus our resources where they will make the most impact and speed recovery for the industry." In addition to its western expansion, Butler will deepen its commitment to its current markets. Butler is actively negotiating opportunities throughout Florida including Fort Lauderdale and Orlando. In its home market of New York City, Butler is rapidly expanding throughout Brooklyn, Queens, and New Jersey.

When Butler leases a hotel restaurant, it takes responsibility for all aspects of its operation including staffing, brand standards, and logistics. Existing restaurant staff, both front and back of house, are hired by Butler, freeing the hotel operator to focus on what they do best: filling rooms and making guests happy. "We've proven to our existing partners that we can turn around the loss leading restaurants required by their brands," Eshtehardi said. "At the same time, Butler works hard to respect the brand equity that attracts guests to full-service properties."

Butler opened in Chicago in October 2020 and is seeking new partners in greater Chicago, particularly around O'Hare and Midway Airports. Other markets slated for Butler kitchens are Atlanta, Denver, Philadelphia, Boston, and the DC suburbs in Virginia and Maryland.

"All of these markets are filled with existing supply that precisely fits the profile of the types of hotels that Butler was founded to support," said Eshtehardi. "Our value proposition is clearest to hotels in central business districts with 3-meal-a-day restaurants serving at least 100 keys. Guests book at these hotels because they have an expectation of food and beverage service. But staffing a restaurant diminishes profits, especially during times of low occupancy. Butler assumes this liability and continues to meet the guest expectation."

Butler pays market rates for hotel restaurants, even restaurants with a history of operational losses. "These restaurants are an essential part of the full-service hospitality experience but are traditionally viewed as a cost center," said Butler Chief Revenue Officer Aaron Cohen. "Despite this, Butler will guarantee a rent payment and a percent of sales, even if we know the restaurant can't break even. We make it up by fulfilling virtual room service orders for nearby hotels."

Founded in 2016, Butler has more than doubled the number of keys served each year for five years by partnering directly with the biggest players in hospitality. "We're incredibly grateful for the trust our partners have put in us over the last five years," Gjonbalic said.

Butler is actively pursuing leases throughout the United States. For more information or to contact Butler about your hotel restaurant, visit www.butlerhospitality.com or email [email protected].

About Butler Hospitality
Butler Hospitality is the original pioneer of digital transformation for hotel restaurants. Founded in 2016 by Premtim Gjonbalic, Butler is the largest hotel food and beverage provider in New York City. Butler develops restaurant brands through exclusive relationships with hotel owners, managers, and brands. Currently serving guests in NYC, Chicago, Miami, and Washington DC, Butler will serve more than 200,000 keys across the United States by the end of 2021.

To learn more about Butler Hospitality, please visit www.butlerhospitality.com.

SOURCE Butler Hospitality

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