Region:
USA
Category:
Tourism

U.S. Hotel Chains Scale Back Free Breakfast as Cost Pressures Mount

  • U.S. Hotel Chains Scale Back Free Breakfast as Cost Pressures Mount.
    U.S. Hotel Chains Scale Back Free Breakfast as Cost Pressures Mount.
Region:
USA
Category:
Tourism
Author/s:
By ABC MUNDIAL Newsroom
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Across the United States, complimentary hotel breakfast — once a defining perk of midscale and limited-service lodging — is increasingly under review. Major brands such as Hyatt Hotels Corporation and IHG Hotels & Resorts are adjusting long-standing breakfast models as part of broader cost-containment and revenue optimization strategies. What began as isolated pilot programs has evolved into a structural reassessment of one of hospitality’s most recognizable amenities.

At the center of the shift is economics. Industry operators estimate that breakfast service can consume 5% or more of a property’s total revenue, rising to 6–7% when labor is included. The Hyatt Place brand removed complimentary breakfast at dozens of U.S. locations last year, while Holiday Inn transitioned many of its properties to buffet-style formats designed to reduce staffing costs and food waste. The changes reflect a recalibration in a sector where margins remain tight despite strong travel demand.

Analysts argue that free breakfast was historically positioned as a “loss leader” — a loyalty driver meant to encourage repeat bookings and strengthen brand affinity. But as Curtis Crimmins, founder of boutique concept Roomza, noted in recent industry commentary, once a perk becomes an expectation, its strategic value diminishes. The expansion of “grab-and-go” offerings at brands like Holiday Inn Express signals a move toward controlled cost structures rather than expansive hot buffets.

Data suggests the amenity still matters. According to the 2025 North America Hotel Guest Satisfaction Study by J.D. Power, 78% of guests who consume on-property food and beverage eat breakfast at the hotel, and nearly half of midscale travelers classify complimentary breakfast as a “need-to-have” feature. The tension, therefore, lies between operational savings and perceived guest value — particularly in segments where price sensitivity is acute.

Luxury operators appear to have more flexibility. Marriott International CEO Anthony Capuano recently described the lodging landscape as emblematic of a “K-shaped” economy, with affluent consumers sustaining premium travel demand. In select high-end markets, brands have experimented with replacing complimentary breakfast for elite loyalty members with points or discounted options — a model less likely to trigger backlash among upscale clientele.

Still, not all chains are retreating. Best Western has publicly reaffirmed its commitment to complimentary breakfast, framing it as integral to guest satisfaction and long-term loyalty. As U.S. hotel operators weigh rising labor costs, food inflation, and competitive positioning, the future of the free breakfast buffet may not disappear entirely — but it is increasingly segmented, bundled, or monetized. For travelers, the waffle iron may no longer be guaranteed.