Organizations ■ Acceleration of competition ■ Service is the difference ■ Value awareness ■ Technology ■ Empowerment ■ Diversity ■ Safety concern ■ Food safety and sanitation concern ■ Sustainability industry Practice Note 1.2: Leading the way. The Dietetic Professional ■ Dietetic Technician ■ The Dietetic Manager ■ Health-Care Food Service Department Organization.
CHAPTE R 8 ISSU ES FACI NG FOOD SE RVICE 23 8
Industry Practice Note 9.3: Creativity is evident in hotel properties 293 Industry Practice Note 9.4: The hotel of the “not so distant” future 295.
The organization of the chapters should also help the students to understand the connection between the different topics. Factors related to the lodging industry's competitive environment are the subject of the final chapter in Part Three.
PRE FACE
The purpose of this chapter section introduces the chapter to students and discusses the relevance of the topics covered to the hospitality industry. The Careers in Hospitality icon appears throughout the book in the margins of the text to alert students to specific discussions of career opportunities in the hospitality industry.
PERSPECTIVES ON
CAREERS IN HOSPITALITY 1
HOSPITALITY
INDUSTRY AND YOU
- List examples of the kinds of businesses that make up the hospitality industry
- Understand the various roles that a hospitality manager serves
- Identify the reasons people study hospitality management—and list the advantages these academic programs offer
- Describe your career plan in terms of a life’s work and not just as an economic means of survival
- Identify two key components of the job-benefit mix that allow one to profit from work experience
- Appreciate the value of networking and the other strategies for landing a job
- Consider the steps necessary in launching your career after graduation
- Name three general career goals frequently cited by graduates seeking employment
- Identify key trends driving change in employment opportunities in the hospitality industry
This chapter, therefore, is designed to help you analyze careers in the hospitality industry and correlate that analysis with your personal, professional, and educational experiences. Identify two key components of the benefits mix that allow someone to benefit from work experience.
A Former Student’s Unexpected Change
A manager wants to ensure that the operation continues to provide service while making a profit. By managing these aspects, the establishment can recoup the costs of its operation and generate enough additional income to pay back all borrowed money and provide a return to the owner (or investor), who has a lot of money and time on the line set - to realize the establishment.
Rather, the point is that programs specifically focused on hospitality management usually consist of students who are interested in the industry they are studying. Many students become interested in the industry because a job they once had was particularly engaging.
Many students also have a natural interest in food and some are drawn to the glamor of the hospitality industry. If you have chosen the hospitality industry as your career, this section will help you map out your work plans.
The next section explores career planning in relation to the employment decisions you need to make while still in school. If you're still undecided, the section should help you think about the field in a more concrete way and give you some ideas for exploring your career through part-time employment.
However, if you consider the teaching portion of the benefits mix and your total income, including what you learn, you can—and probably should—choose a job that will add to your professional education. If you think about these jobs in terms of their total income, however, you can change your perspective.
For example, if you work in the back of the house, you can map the flow of products from the back door (the receiver) to the storage and from there to the preparation. If you work in the back of the house, you will mostly be looking at the flow of kitchen workers and dishes from the kitchen, scullery or pantry.
An Employer’s View of Job Placement—Hyatt
Andaz, a vibrant yet relaxed atmosphere aimed at today's individual business and leisure traveler, designed to reflect the unique cultural scene and spirit of the surrounding neighborhood. Hyatt Vacation Club offers members vacation ownership opportunities in regionally inspired and designed residential style homes with the quality of the Hyatt brand.
Career Opportunities Overseas
Even if your summer employer doesn't have a career opportunity for you, a favorable recommendation can give your career a big boost when you graduate. The lesson here is that the record you make now on the job can help shape your career later.
Thus, you would invest in retained earnings—the knowledge you hope to one day trade for more income, security, and job satisfaction. In this case, you can choose to accept a lower income (but one that you can live off of and in line with what such jobs pay in your region).
In today's and tomorrow's world, service will be the difference between barely surviving (or worse) and achieving success. Managers will need a broad background and openness to many types of people and cultures to thrive in the years to come.
While the white male has been the dominant force in the labor market, the majority of people entering the workforce for the foreseeable future will be women and minorities, such as African Americans, Hispanics, and Asians.
Leading the Charge in Going Green—Orchard Hotels
The first hotel in San Francisco to earn this honor, the Orchard Hotel is the second hotel in California. Develop an intimate understanding of "green" hospitality and make it part of the hotel's everyday life.
In the near future, this will not be a trend, but a part of business. We emphasized that there is a lot to be learned in the hospitality industry from studying the physical plant and how the front and back of the house are managed.
Key Words and Concepts
A manager in the hospitality industry must therefore keep these three goals in mind: (1) to make the guest personally welcome, (2) to make things work for the guest, and (3) to make sure that the industry will continue to provide service and meet its budget. We also noted that supply and demand in the hospitality labor market works as elsewhere, suggesting that what is most popular in terms of employment does not necessarily mean the best opportunity.
Review Questions
- What kinds of institutions or establishments does the hospitality industry include besides hotels and restaurants?
- What is the role of a manager in the hospitality industry?
- Why did you choose to study in a hospitality management program? What alterna- tives were available to you?
- What are some of the reasons that people work?
- What does the concept of retained earnings mean as it relates to a career?
- Describe the concept of the job-benefit mix. Give examples from your experience or from that of your classmates
- What are some things to observe in both the front of the house and the back of the house in the early stages of your career?
- What kinds of things can you learn from a part-time (or summer) job that are not strictly part of the job?
- What are three principal concerns in regard to a job after graduation?
- What are the five elements of the strategy of job placement?
What are some things to observe in both the front of the house and the back of the house in the early stages of your career. What kinds of things can you learn from a part-time (or summer) job that isn't strictly part of the job?
Internet Exercises
What types of services does your career services office provide to students (resumes and cover letters, job search assistance, etc.). Is there someone in your career services office that is specifically designated to help hospitality management students.
Notes
What support/career services does the website offer to candidates to help them find a job (for example: resume, cover letter, electronic resume assistance, etc.). Explore the Career Services website of the college or university you are currently attending.
GROWTH AND CHANGE IN THE HOSPITALITY INDUSTRY
- Explain how the changing demographics of the North American population impact the demand for hospitality services, and give examples of demographics that affect both food service and
- Describe the current and expected future impact of baby boomers on the demand for hospitality services
- Identify and describe the key supply factors that are important to hospitality organizations
- Give examples of the opportunities and challenges inherent in the North American population’s increasing diversity
- Explain how changes in the female workforce and alterations in family structure affect consumer behavior and the markets for hospitality services
In this chapter we will look at two of the most basic of these forces. Give examples of the opportunities and challenges inherent in the increasing diversity of the North American population.
The year 2011 is significant because it is when the oldest of the baby boomers turns 65. By the mid-1960s, most boomers' parents were past childbearing age.
Demographics in Practice
The children's menu won the 2005 Restaurant Hospitality magazine award for children's menus in the Family Restaurant category. The number of people aged 30 to 49 in North America has declined over the past decade.
The number of young adults increased through 2010, which is good news for providers of low-cost, casual dining services such as QSRs, fast-casual and some casual restaurant concepts. As for the teenage group, the news is mixed - the number of those between 10 and 14 has decreased, while the 15 to 19 age group has increased significantly.
As North America Ages, Some Parts of the World Are Getting Younger
Hispanics are of Mexican origin (almost 60 percent), but two-thirds of these were born in the United States. Women's participation in the workforce is expected to continue to increase in the short and long term.
Advocacy for the Advancement of Women in Food Service 1
The ongoing role of these advocacy groups is to push for the elimination of barriers to women's advancement. Information for this Industry Practice Note was gathered from the websites of: The Institute on Women and Work, Cornell University, and the Women's Foodservice Forum.
Is the Middle Class Shrinking?
- How would you define the term demand? What critical changes in demand do you foresee in the future? Why?
- Why are the baby boomers so important? What impact do you see them having on the hospitality industry in the next few years? In the longer-term future?
- Besides the baby boomers, what other significant age groups were discussed in the chapter?
- What are the main elements of diversity discussed in this chapter? What are the major trends related to diversity? What are their likely effects?
- Discuss the growth in the proportion of women working. What changes have working women experienced as they relate to the hospitality industry? What does
- What is the largest household type? What are some rapidly growing household types? What kind of customer for hospitality is each of these groups?
- Is the middle class shrinking? Which income groups are growing in absolute numbers?
- What categories of land as a factor of production are important to the hospitality industry? What is likely to affect the cost and availability of those factors?
- The food service workforce is expected to grow at about the pace of the total workforce. In spite of this, what factors make the need for food service workers
58 Chapter 2 Forces Affecting Growth and Change in the Hospitality Industry. to make up 23 percent of the civilian workforce by 2050. What impact do you think they will have on the hospitality industry in the coming years.
FOOD SERVICE
RESTAURANT BUSINESS
- List by size the major components of the food service industry, and describe the economic impact that the food service industry has on the economy
- Understand the changes that have shaped the restaurant business in recent years, such as new delivery approaches
- Define the terms dining market and eating market, and describe and contrast the major kinds of restaurant operations in each
- Identify the food service segments that currently are growing or declining, and explain the reasons for these trends
- Describe the relationship that exists between shopping and dining and how healthy this particular segment is
An ever-growing part of the dining market is in off-premise operations, such as home meal replacement (HMR). In fact, off-site food service has accounted for most of the growth in total restaurant sales since the late 1980s.
Now, as elderly parents or grandparents, they find the relaxed atmosphere more comfortable for the whole family. Yet the same study reports that one in three adults say they don't eat out as often as they'd like, and 35 percent don't buy takeout or delivery as often as they'd like.
Second, diligent operators are adding more healthy options to their menus, including more healthy options for children. Doing so saves money, is better for the environment and is in line with restaurant patrons' interests.
Casual upscale dining, in particular, seems to have filled some of the void left by fine dining. Noting the success of the casual upscale segment, many fine-dining operators have made changes.
The biggest part of sales outside business premises is sales with almost two thirds of turnover (visits) and volume. Drive-through, however, came to the fore with the introduction of double drive-through.
In Figure 3.1, the different types of restaurants are compared in terms of price level and food experience offered. Factors influencing the eating experience include time available, importance of convenience, utilitarianism compared to social events, and degree of subordination to other activities.
McDonald's began to turn things around after the turn of the century, evidenced by an increase in same-store sales, a measure of performance. Therefore, we can safely declare the original concept and the subsequent evolution of McDonald's as a tremendous success.
Subway and Entrepreneurship
This simple operating format results in quick service and has been named quick service. One of the positive aspects of rapid service development was the upgraded unit's physical facilities and layout.
This means increased demand for full-service restaurants and “newer” segments such as the fast-casual segment. The origins of the fast-casual can be traced back to the 1950s in the UK, when bakeries offered a sort of self-service restaurant.
Platters, sandwiches and salads are the main part of the menu, all attractively but simply served. However, the segment faces many of the same challenges discussed in relation to family restaurants.
According to the Brewers Association, the number of beer drinkers almost caught up in the United States in 2009, while dollar growth from beer production was about 9 percent. In total, there are about 1,500 breweries (including brewpubs, microbreweries, regional craft breweries, and large breweries) in the United States.
Quark’s Restaurant Serves Earthlings Too
The risk of obsolescence is a real problem for these high-investment operations unless the food and service are excellent—.
Culinary Preparation
- How do the dining market and the eating market differ?
- What kinds of restaurants are included in the dining market and the eating market?
- What are the growth concepts in the dining market and the eating market?
- Do you agree or disagree that quick service is a part of the American lifestyle?
- What is the outlook for fast-casual restaurants?
- How are midscale restaurants different from QSRs? How are they similar?
- What are the risks inherent in “eatertainment”?
- What are the prospects for fine dining?
- What larger businesses do restaurants serve?
As a result, one of the main attractions of major shopping centers is their food establishments. Food service is an integral and essential part of the North American way of life.
RESTAURANT
OPERATIONS
- Identify the three main divisions of activity found in restaurant operations, and summarize their respective roles
- Explain the two basic approaches to making a profit and how these approaches affect the various stakeholders
- Understand the primary tools used to measure financial results in food service operations
- Appreciate the various aspects of the restaurant business that make it both challenging and rewarding
In fact, many executives can boast of having started at the bottom in foodservice operations; for example, this is a common trait among McDonald's managers. The chapter concludes with a section on profitability in food service operations and a summary of the elements of the accounts.
Therefore, front-of-house people should be prepared to deal with complaints. Food production stands out as the predominant work done in the back of the house.
Research Chefs Association
Perhaps most important is "doing your organizing," that is, preparing the food—mise en vende (defined by the Culinary Institute of America as "everything in its place")—that will be needed during the coming meal period. . At some QSRs, a key part of the setup happens right when the meal period is about to begin, when the product is prepared and stored in the bin, ready for the rush to begin.
However, unless the competition's price level also rises, this method will most likely result in a loss of customers (the result of something called price resistance). In general, the key to reducing costs is a careful review of the operation to find places where waste can be reduced without losing quality.
The check average can be what it sounds like, the average dollar amount of a check. However, because lots (a group of guests sitting together) vary in size, the check average is usually stated as the average sale per guest.
- What are the most important elements of quality in food service? How are they attained?
- What is meant by the term management presence? Why is it important? Have you seen it provided in operations in which you have worked? What are some of the
- What characteristics do you think are important in a person who chooses to work in food service operations?
- What pitfalls can you see in the attempts to increase sales? To reduce costs?
- What are the major approaches to increasing profit? Which is the best way? Why?
- What are the main controllable costs? Why are they called controllable?
- Site name: All Food Business
Guest satisfaction, personal service and sales accounting are the main responsibilities of the front of house. Food quality and food safety, hygiene and food cost control are critical in the back of the house.
RESTAURANT INDUSTRY ORGANIZATION
CHAIN, INDEPENDENT, OR FRANCHISE?
List the relative advantages and disadvantages of chains and independents in the following key areas: marketing and brand recognition; site selection; access to capital; purchasing economies;
Identify the need for the independent for success; give an example of this necessity; and identify the independent's unique market advantage.
Identify the independent’s imperative for success; provide an example of this imperative; and identify the independent’s unique market advantage
Explain the difference between product franchising and business format franchising, identify which is most commonly used in the hospitality industry, and understand the advantages and
The table shows that the average level of marketing spending for restaurants with average checks between $15 and $24.99 is greater than the other categories. If this experience is pleasant, it will reinforce the desire to return to that sign at the local market or wherever else it may appear.
This is accomplished either by purchasing centrally at their commissary or by negotiating centrally with suppliers who then deliver the products, made to rigid specifications, from their warehouses and processing plants. In addition, chains can afford their own research and development laboratories for testing products and developing new equipment.
This is in addition to the intern's salary during the training, and covers fringe benefits, travel and classroom expenses, and the cost of the manager's time to provide on-the-job training. As we mentioned at the beginning of the chapter, chains have dramatically increased their market share (share of sales), representing over half of all local restaurant sales.
Because successful chains usually have deep pockets (ie, adequate financial reserves), they are able to weather recessions. Some larger chains actually see a recession as a time to buy smaller or less successful chains that are having trouble weathering the economic storm.
In addition, word of mouth advertising can spread his or her reputation to an even wider area. However, unlike chains, many independents spend relatively little on paid advertising, relying instead on personal relationships, their reputation and, as mentioned, word of mouth.
Working with the SBA
Why Go Public?
Because of the importance of quality in the independent industry, the price advantages in centralized purchasing may not be as important as an ability to consistently find top quality products. Cost control procedures can be stricter in the chain industry, but if an owner keeps track of everything from preparation to portion sizes to the garbage.
The independent owner can, and usually does, develop close personal ties with employees, a practice that can help reduce turnover. Although "seasoned" employees can act as trainers, the cost of training new employees tends to be higher for the freelancer because of the complex operation and because he or she lacks the economies of a training program. centralized training.
In 2009, the concept was selected as one of five Hot Concept awards at Nation's Restaurant News' 50th Annual Multi-Unit Foodservice Operators Conference. In addition, Restaurants & Institutions named Tutta Bella's seasonal summer pizza as one of the most innovative menu items.
The relationship of the restaurant franchisee is neither that of an employee nor an independent customer of the franchisor. Franchisee's Fees and Other Payments Obligations and Obligations of the Franchisor Obligations and Obligations of the Franchisee Limitations on Goods and Services Offered.
There is general agreement on the importance of field support and how it can ultimately determine the quality of the business. One of the most serious problems with failed franchise systems is a lack of field personnel or field personnel lacking in expertise.
Interested in Becoming a Franchisee?
These major changes in the franchisor's and franchisee's product line are achieved through the co-location of two or more concepts (known as co-branding or dual branding). Tim Horton's menu draws a lot of customers in the morning, while the Wendy's menu isn't even offered.
Rosenberg International Center of Franchising
Due to start-up costs for a new franchise unit for the franchisor, it may take three years before royalties start contributing to the franchisor's profits. In addition, the franchisor will have already made a significant investment in legal and accounting costs as well as management time.
- How do you rate the advantages of the chain (and independent) on the seven factors cited in the text? Are there other factors that should be considered?
- What is the trend in market share of chains in food service? Explain this trend
- What are the major services provided by the franchisor to the new franchisee?
- How do you assess your prospects as a franchisee? What characteristics do you think would be important to being a successful franchisee?
- What does the franchisor gain from franchising? What advantages does the franchi- sor give up by franchising instead of owning units?
- Site name: Top 100 Restaurant Chains
How do you rate the benefits of the chain (and independent) based on the seven factors mentioned in the text. IFA Special Report, "The Profile of Franchising 2006: Series II—Initial Investment, Series III—Royalty and Advertising Fees".
COMPETITIVE FORCES
IN FOOD SERVICE
Describe current competitive conditions in the food service industry
Describe the four P's that make up the foodservice marketing mix, and define the foodservice product, and describe the role of new products in foodservice competition.
Describe the four Ps that make up the food service marketing mix, and define the food service product, describing the role of new products in food service competition
Identify the two industries with which food service companies compete, and list their strengths and weaknesses
Look further at the number of takeovers, mergers and acquisitions that have taken place over the past ten years, and one can quickly see that the food service landscape has changed dramatically. The independents' role in food service remains an important one, but their share of the market has been steadily declining for several years.
