Unlike many exclusive beach resorts, Terranea Resort in Rancho Palos Verdes, California, reaches its tentacles like a revenue-savvy octopus to capture local dollars. Or perhaps a grinning spider, using its two-and-a-half mile public nature trail around 102 acres of property as a clever web of profitability. Then again, the truly important animal at Terranea may be man’s best friend, the dog.

However you look at it, Terranea is one healthy F&B beast, feasting on local customers. “You can’t rely anymore on just group guests or the people who stay in your hotel,” observes Director of F&B Shawn Jervis. “Our tiny, trailside window really added accessibility for locals.”

THINKING OUTSIDE THE OUTLETS
“The Coastal Commission and the city of Rancho Palos Verdes originally asked the resort to consider adding some kind of refreshment stand for the public,” says Terri Haack, Terranea’s executive VP and managing director. So the team created Discovery Trail Refreshments at a point where the trail is close to the resort’s Cielo Point poolside F&B outlet.

“We took it a step further, adding restrooms, an outdoor shower, and dog watering bowls. And we incorporated the refreshment stand into our Cielo Point adult pool building,” Haack says. “While the two experiences are separate, the interior configuration allows us to utilize the same staff and kitchen facilities, and we can be open many more hours than a stand-alone venue.”

The menu includes German pretzels, quesadillas, sandwiches, and salads, all meeting the criteria of being uncomplicated and producing minimal waste. “We did things that don’t require bowls. We have bamboo plates and compostable cups,” says Jervis.

DISCOVERY DOLLARS
In its role as an entry point for locals, the trail stand’s impact resonates beyond the direct dollars it draws. “People grab something, they walk around the trail, and they walk past Nelson’s, our fine-dining restaurant, which now has around 60 percent local guests,” Jervis says, adding that approximately 45 percent of total F&B dollars come from locals.

Marketing to the community was key from the start, says Lori Kennedy, partner in Bonsall, California- based JLK Communications. “At the opening, the property invited the community for tours of the resort and had thousands of people walking its grounds in the first few weeks,” she says. “[Reaching out to locals] has really impacted our financials. In the first six months, hotel occupancies weren’t high because of the economy, but F&B has performed well above budget every month.”

Jervis estimates that on an average day during the summer season, the Cielo Point pool deck does $4,000 to $6,000, impressive for a pool area that he notes is very small and for adults only. “From the window of Discovery Trail Refreshments, with an average spend of $6 to $8, we do about $1,000 a day,” he says. “It’s a significant moneymaker.”

PUTTING ON THE DOG
Another big piece of the profitability puzzle at Terranea is being dog friendly. “At the refreshment window, there is a drinking fountain for humans and, lower down the pole, a drinking fountain for dogs,” Jervis says. While the refreshment stand offers no treats for the dogs, the hotel coffee shop does. “We tried having dog treats in all of our outlying areas,” Jervis says, “but that just got out of hand.”

HONING THE MODEL
Adjustments have been minimal since Discovery Trail Refreshments opened. “We started out thinking we could charge $10 for a hamburger and $8 for a big, fabulous pretzel,” Jervis says. “We learned really quickly that won’t work here. We lowered the price, but we didn’t adjust the sizes. Everything is still the same quality.”

For nearly a decade, Tad Wilkes, managing editor of HOTEL F&B, has written about on-premise hospitality.

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