“Hotels are there to rejuvenate; restaurants are there to nourish. Put together, that creates a memorable experience for guests.”
That’s the philosophy behind the José Andrés Group, according to Sam Bakhshandehpour, who was recently named CEO of the culinary enterprise that operates 40 restaurants from tapas spots to food halls.
While José Andrés Group's near-term plans center on hotel food and beverage, there are already discussions around branded hotels and residences down the line, Bakhshandehpour said.
Andrés is known globally for his humanitarian efforts with World Central Kitchen, a separate organization from José Andrés Group. But the connection “creates a halo effect for the company,” Bakhshandehpour said. Chef Andrés was formerly CEO but remains chairman of the group.
Bakhshandehpour, who has a background in both finance and hospitality, has served as president and CEO of lifestyle hospitality brand SBE, where he met Andrés. Bakhshandehpour points to SLS, a brand started by SBE before it was bought by Accor, as a little-known brand where food and beverage and a high-energy lounge component “brought all the sizzle.” Those hotels were selected for meetings and dinners because they were culinary-driven, Bakhshandehpour said.
When he joined with Andrés to launch a hospitality-centric culinary enterprise, Bakhshandehpour said the goal was to, "look at the rate we were able to garner with SLS. What if we could put those concepts into a new hotel in mid-Manhattan that would spotlight culinary excellence?"
That idea culminated in the Ritz-Carlton Nomad in Manhattan, a property that caters to three demographics — guests, tourists and locals — and drives a top rate to owners.
Currently, José Andrés Group has assumed management of food and beverage in five hotels in the last two years with three projects coming in the next year. While the company's ratio of hotel restaurants to freestanding restaurants is now about 60:40, the goal is to move it closer to 80:20.
The company has “wonderful relationships” with Marriott International and Hilton and recently signed its first deal with Hyatt Hotels Corp. at the Andaz South Beach, Bakhshandehpour said.
“We love the hotel sector because it’s such a natural extension of what we do," he said. "Also, the earlier we can get into a design and programming conversation with an owner, the better off we are because we can all view the guest as the center of a universe and provide an authentic experience through storytelling, a 'wow' factor and elevated design.”
A Hotel Brand On the Way?
In terms of developing the José Andrés Group hotel brand, developers and owners are excited about the possibility, but no name or segment has been set, Bakhshandehpour said.
“We’re looking for the right locations and partners,” he said, adding, that there might be an “alignment” with a large operator.
“We simply want to control the guest experience in its entirety,” he said. “We love being in Conrads and Ritzes and Andaz, and we understand that formula well. We believe we can also slot in our own branding alongside that.”
He said this represents a unique opportunity for hotel owners.
“Our whole thesis is to look through the lens of a real estate partner. The more we lead with branding, promotion and the [food-and-beverage] experience, the more the ability to capture rate,” Bakhshandehpour said.
The Principles of a Successful Hotel Restaurant
Bakhshandehpour doesn’t see José Andrés Group's outlets as simply restaurants in a hotel. The group takes a more holistic approach. He said the company aims to curate the entire stay because the luxury category “is not just a room play, but the totality of the experience including the gym, the spa and experiences beyond the four walls of the building.”
The operator’s approach to hospitality is to create one consistent, multi-outlet experience that’s tied together symbiotically, Bakhshandehpour said. For instance, José Andrés Group's operation in the Ritz-Carlton Nomad includes two restaurants and two bars — including a 50th floor rooftop location — plus in-room dining and banqueting. Anything touching food and beverage is José Andrés Group’s responsibility “and we aim to maximize capture of that stay,” he said. If a guest stays three nights, Bakhshandehpour wants them to have dinner in the hotel two nights, plus drinks a few times.
In addition, an emphasis is placed on value. Even at a Ritz-Carlton in pricey Midtown Manhattan, prices are accessible so that locals will return regularly, Bakhshandehpour said.
“We price with locals in mind,” he said. “When restaurants are ripping your face off, they won’t get repeat business. And we are on a par culinarily with the finest places in the market.”
This strategy makes sense because having a single restaurant in a hotel requires the same oversight and resources — including labor and management — as multiple outlets, Bakhshandehpour said. Labor costs are a major consideration, so the more preparation in a centralized kitchen and the more square footage front of house versus back of house, the better. The Ritz-Carlton Nomad has a single leader across all the food-and-beverage functions who also enjoys the synergies of a global company. José Andrés Group can also provide carer mobility for its employees.
“We have scale,” Bakhshandehpour said. “Our venues are high-volume. Zaytinya [a restaurant at the Ritz-Carlton Nomad] has 500 to 600 covers a night, but the service is very personalized.”
Although the group’s restaurants cover multiple cuisines including Mexican and Chinese-Peruvian, Bakhshandehpour said the heart remains in Andrés' home country.
“We are rooted in Spain and lead with the spirit of Spanish cuisine — culture and sharing and family and small plates,” he said.
The company currently has more than 20 brands.
“We lean into the flexibility of the culinary experience, but we aim to please everybody,” Bakhshandehpour said. "If you go to dinner with a pescatarian and a vegetarian, everybody will have equal experiences. It’s a menu of classics with localization. You can go to The Bazaar in four different locations and have different experiences.”
With Andrés as a globally known personality, Bakhshandehpour believes tourists will find their way to one of his restaurants. Andrés has trained many chefs over the years, and there is an army of executives who are leaders in research and development and hotel innovation.
“The No. 1 value-add from JAG is leading trends and evolving menus,“ he said.
Bakhshandehpour said he speaks with Andrés daily and the lines are always open to him, but he's not involved in the day-to-day operations of every restaurant.
“While José is everything to this company, he’s just one man and we have built a professional team,” he said.