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Marcello Cauda: London’s Leading Bars Manager on Balancing Innovation and Profitability

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26/11/2024 Marcello Cauda delves into how he innovates with cocktail menus, guest experiences, and bar operations while maintaining profitability and aligning with The Berkeley’s luxury standards.

In this exclusive interview, we sit down with Marcello Cauda, the visionary Bar Manager at The Berkeley’s Blue Bar and a distinguished judge at the London Spirits Competition. Renowned for his innovative approach to cocktail design and his ability to balance creativity with profitability, Marcello shares insights into his journey, the inspiration behind the Blue Bar’s music-themed menu, and how he is shaping the future of London’s luxury bar scene.

Marcello, as the Bars Manager at The Berkeley’s iconic Blue Bar, can you share a bit about your journey in hospitality and how it has shaped your approach to blending innovation with luxury in such a prestigious setting?

Absolutely, I come from a really little town in Italy, I did hospitality school when I was little, and for some reason I always find it interesting, at the beginning of my journey I wanted to be a chef but this quickly changed after I understood what’s being a front of house person meant, taking care of guests, being able to showcase what’s in your mind creating some incredible moment either with your service or your drink creation. 

When I was 20 I moved to Bristol and Bath this is where I had my first outside Italy experiences, after 3 years I wanted to get more international bartending skills so I moved to Australia to learn more about classics cocktails, then I moved to the UK and was part of a big hotel opening in East London. After I had the chance to join Blue Bar which was exactly what I wanted. Such an iconic bar, and hotel. Since I started with the team we always tried to elevate the guest experience and to try to make something unique for the bar in order to showcase what Blue Bar has been and what will be. 

For example, our current menu is called Shades of Blue #beyondjustcolours we took inspiration from our shade of blue called Lyutens Blue, which the legend says was made from 50 different shades, we took 12 and each of the shades inspiration came from the name of it but none of the drinks are blue.I feel so lucky to be able to work with an incredible team and have the chance to develop our vision throughout our service/vibe and cocktails

Marcello Cauda

How do you strike a balance between introducing innovative cocktails and maintaining the classic luxury experience that guests expect at The Blue Bar?

In the Blue bar, we have our signature cocktail menu based on 12 bespoke cocktails that we change yearly, of course, we can always serve a classic and we make sure that all of the team members make it in the Blue bar, where we sat down and try the classic recipe and we refined to our standard. 

For those who want to try our signature cocktails, we always try to make them similar to a classic so that people can relate to something, also being in a hotel we have to make sure we can please everyone. at the same time we want to showcase our creative mind using some known ingredients but also something that might look crazy as edible chalk, butternut squash, sweet potatoes, distilled seaweed, etc.

Blue Bar

Image: Blue Bar Under bright skies, the Blue Bar glows anew – with reimagined mixology and late-night vibes making it this season's coolest hotspot. From the herb-infused Arctic Blue to the ocean-fresh Ultramarine Blue with ponzu ‘caviar,’ or the playful Baby Blue trio of mini-Martinis, Bar Manager Marcello Cauda and his team have distilled the bar’s iconic heritage into a captivating new collection. 

When launching a new menu, how do you ensure it resonates with your clientele while also driving profitability?

When we launch a new menu: we always take into consideration that we are part of a Hotel and not everyone might have certain knowledge on taste/drink served, so we have to find a balance between something that people can relate to and something that people might not know the taste of. Our menu process might take up to 5/6 months in order to pass from the concept to the ideas to the flavor profile to then the drink. 

How we look at profitability, after we have the recipe that we like we present this to our management then once is approved we make sure our GP is in line with our guidelines, depending on the concept and what we want to create we look into some brand collaboration that might help the bar in any way.

What role does guest feedback play in deciding which innovative ideas to keep and which to refine?

Before we launch a new menu we pass into a very detailed tasting process team/management/pr etc, in all these processes if we see what the main comments are, then if we see something isn’t working we of course change the recipes we are here to please the guests, if anything can be done in order to do so we do. The best is to create something unique, and flavourful and receive amazing feedback, this makes us proud and always trying to expand our knowledge. There is always something else to learn.

How do you manage the cost of premium ingredients while experimenting with innovative cocktail recipes?

Sometimes we ask brands if they can support us with some bottles during our cocktail creation process. Sharing the ideas with them in order to get them excited too!

Marcello Cauda at Blue Bar

How do you evaluate the financial viability of introducing new techniques or tools in your bar operations?

To evaluate the financial viability of introducing new techniques or tools in our bar operations, I typically consider several key factors:

1) Initial Investment & Cost Analysis: I start by assessing the upfront costs of acquiring and implementing the new tools or techniques,

2) Return on Investment: I look at the potential for increased efficiency, higher sales, or improved customer satisfaction. For example, a new cocktail-making technique or tool may allow us to streamline service, reduce waste, or create a unique selling point that attracts more customers.

3) Market Trends: Understanding customer preferences and staying ahead of industry trends is essential. If the new technique or tool can improve the customer experience or align with emerging demands, it can lead to increased patronage and loyalty. This is our approach when we have to invest in something new. Everything needs to be approved by the Line manager so having a good strategy is essential

What systems or metrics do you use to ensure that innovation doesn’t lead to increased waste or inefficiencies?

We use data-driven decision-making to make sure that our wastage is always looked after, we also have to make sure the new system is better and more efficient than the previous one.

How do you integrate creative offerings, such as signature cocktails or themed events, into your strategy for maximizing bar revenue?

We ensure that our signature cocktails are unique and tailored to our brand identity, creating a memorable experience for customers. These cocktails often feature high-quality ingredients or innovative twists on classics, which can encourage higher spending per customer. Everything before goes live must follow our GP’s brand collaboration etc

Themed events are another effective approach. By aligning them with popular trends, or local events for example during London cocktail week we host a bar from Vancouver, even this decision was made in a way that we want the guests to have a unique experience, London is a busy city, and takes over is happening every week, we always want to ensure that we host a different bar, with different cocktails offering we can drive foot traffic and increase customer engagement. Offering limited-time promotions or cocktail menus as well as prompting guests to visit sooner rather than later.

Shades of Blue

Here’s looking at blue, as the bar introduces a bold new menu, Shades of Blue. This collection is inspired by the custom Lutyens blue, a signature shade at the heart of the Blue Bar’s iconic design. It features 12 distinct cocktails, each representing a different shade of blue derived from this unique hue. From the herb-infused Arctic Blue to the ocean-fresh Ultramarine Blue with ponzu ‘caviar’, or the playful Baby Blue trio of Martinis, every drink offers a creative and artfully crafted tribute to blue in all its forms.

In Picture:

Goods From The Dark Underground
• Michter’s US*1 Kentucky Straight Rye Whiskey
• Aberfeldy 12yo Whisky
• Mancino Rosso Amaranto
• Campari
•Jerusalem Artichoke
• Black Truffle
• Ginseng

How do you measure the success of new initiatives, both in terms of guest satisfaction and financial return?

Throughout feedback, reviews, business return

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Looking ahead, how do you see innovation in luxury bars evolving, and what strategies will help maintain profitability in this changing landscape?

As the luxury bar industry continues to evolve, I see innovation being driven by several key trends. First, there will be an increasing focus on experiential offerings, where the ambiance, storytelling, and personalization of the guest experience take center stage. Exclusive, tailor-made cocktails and immersive environments will become more important as consumers seek unique, memorable experiences rather than just high-end products.

Sustainability is another area where innovation will play a significant role. Consumers are becoming more environmentally conscious, and luxury bars can maintain relevance by incorporating eco-friendly practices, from sourcing sustainable ingredients to reducing waste in creative ways with different creations.

Marcello Cauda

To keep profitability in this changing world we should focus on investing in great staff training so that staff is able to upsell in any time and give a bespoke service. Also building strong brand partnerships with premium spirits producers and maintaining a great presence in the digital space through social media and targeted marketing will help attract and retain a loyal clientele. Showing everything that you can do. Also, I see that people want a place where they can go every day, being your local, for hotel bars this isn’t as easy as your market is limited in certain ways, we must find a way to ensure that each guest wants to come back the day after, either with the service, the offering, the atmosphere. This will help massively your profitability.

Marcello Cauda will also be judging at the 2025 London Spirits Competition and will be sharing his favorite top spirit brand with you. If you are interested in connecting with him, you can follow him on his Instagram or Linkedin.

Also Read:
Raul Diaz on importance of staff education and training
The Economics Of Sustainability
How to design a bar with ambience – insight from a top designer

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