Customer Success Story:
Hotel Del Coronado

Located in San Diego, California, the Hotel Del Coronado has long been heralded as one of America’s most beautiful beach resorts.  More affectionately known as “The Del”, it has been called “one of the top ten resorts in the world” by USA Today

Known as the best bar in San Diego, Hotel del's Babcock & Story was designed to take advantage of the spectacular seaside setting and features the original 46-foot handcrafted mahogany bar, which was brought by ship from Philadelphia around Cape Horn in 1888.   It’s a popular, high volume, high-end operation. 

A Shrinkage Problem
“Our high volume bar, Babcock & Story, was running a respectable 18.8% beverage cost.  We had implemented an inventory solution that was highlighting a significant liquor shrinkage problem.  The challenge, however, was that even with weekly inventories conducted by the solution vendor, we could not go to bartenders with sufficiently detailed data to change behavior," observed Steve Schackne, Food and Beverage Director for Hotel Del Coronado.

Hotel del Coronado is part of the Strategic Hotels & Resorts portfolio, an industry-leading owner and asset manager of high-end hotels and resorts. Schacnke followed the recommendation of another Strategic property that had been using Capton and getting impressive results. 

"Capton generated data is behavior-changing in character.  We know exactly who is over pouring what drinks, and when.  We know every time staff gives away a drink, or if they fail to apply an up charge.   After five months our beverage cost is down 3.6 points.  That’s a three month payback on the system in that one bar.” 

Seamlessly Integrated into Operations
One of the key objectives for Capton in this project was not only to produce savings, but also to prove the system did not negatively impact customer service or guest experience. 

“The problem with a lot of liquor control systems is that they look ‘clunky’ to customers, impose operational practice change, and require a lot of management babysitting to keep them running.  The Capton system had none of these issues – and it produced the savings result,” added Schackne.

The Capton project involved an installation of Capton’s patented RFID-based liquor monitoring spouts at the Babcock & Story Bar operation, Capton’s software on a manager’s desktop, and a POS Integration application linked to the property’s Micros POS solution.

“The thing we like about this solution,” said David Hogin, VP Asset Management for Strategic Hotels, “is that it does not become a management burden.  It’s a technology investment we can make into a property with a fast ROI that does not require major operational changes or management priority shifts.  And Capton’s ongoing business services approach puts them in position to be an independent advisor to the local team on ways to reduce costs and increase revenues in their bar operation.”

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