The relevance of the study of diversification approach to customeroriented management of the hotel and restaurant businesses is caused by the need to find areas of business management in the context of deepening economic crisis. The hotel and restaurant business in Ukraine has been in a crisis plateau for a long time, which changes in the types and nature of influence and over time only exacerbates market and economic risks. The viral pandemic, which has halted many hotel and restaurant businesses, has drawn the attention of scientists and experts to the importance of mitigating risks through other sectors of the economy that were less affected or on the contrary, benefited from quarantine restrictions. Cancelled services reservations caused significant losses, and only subjects of hotel and restaurant business, which had a financial safety margin and / or diversified business, were able to stay on the market and use this time to strengthen customer orientation through CRM-systems, branding, development of diversified business concepts in the framework of concentrated diversification. The purpose of this paper was to determine the theoretical aspects of the formation of diversification policy and development of the customer-oriented approach for the hotel and restaurant business. The paper deals with the internal capabilities of the hotel and restaurant entities for reorientation, re-profiling, and diversification of the business, which are determined on the basis of modelling the hotel service system. To consider the features of the diversified approach, a number of general scientific and specific methods were applied, which allowed to formulate the theoretical provisions of the directions of diversification. Restrictions on access to the current operating performance of hotels and restaurants in the conditions of the pandemic have created certain information gaps in the development of practices of the application of customer-oriented tools and technologies, areas of diversification. Therefore, directions for future research are the study of successful results of diversification activities for hotel and restaurant businesses in Ukraine and around the world