ProMgmt. is a registered trademark of the National Restaurant Association Educational Foundation. ©2003 National Restaurant Association Educational Foundation

ProMgmt. is a registered trademark of the National Restaurant Association Educational Foundation.

©2003 National Restaurant Association Educational Foundation. This presentation may be reproduced on paper or overhead transparency FOR CLASSROOM USE ONLY. Notwithstanding the preceding exception, no part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the National Restaurant Association Educational Foundation.

Dimensions of the Hospitality IndustryThird Editionby Paul R. Dittmer

©2003 National Restaurant Association Educational Foundation.

Three Sectors of the Economy

Manufacturing sector Service sector Government

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Two Principle Segments of the Hospitality Industry

Food and beverage Lodging

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Travel and Tourism Includes:

Food and beverage Lodging Other industries that serve the traveler, such

as transportation, entertainment, and travel agencies

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Moment of Truth:

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Any contact a customer has with a business that gives the customer an impression of the business


Cycle of Service:

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The totality of moments of truth (or chain of events) from the beginning to the end of a customer’s experience with an organization


Total Quality Management (TQM)

An effort on the part of management to provide positive moments of truth for their customers. Management typically establishes committees to discuss customer issues and take appropriate action to correct negative moments of truth. Employee empowerment is a key feature of TQM.

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Development of the Hospitality Industry

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Tied closely with transportation, those nations with highest economic status have had the most developed transportation systems and hospitality enterprises.


Reasons for Better Travel Conditions in the Roman Empire

Roman coins were good everywhere in the empire

Construction of an excellent road network Knowledge of Latin or Greek enabled travelers

to communicate anywhere in the empire

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Early Modern-Period Developments that Led to Improvements in Travel and Hospitality Services

Introduction of the stagecoach and coaching inns Application of English common law to the hospitality

industry Improvements in the quality of inns Development of posthouses to accommodate the

stagecoaches handling the mail Reintroduction of restaurants for public dining in

France

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Colonial Timeline

1610—Existence of a hospitality enterprise in Jamestown known

1634—Coles Ordinary opened1656—Massachusetts towns ordered to sustain an

ordinary1762—Queen’s Head tavern opened by Samuel

Fraunces1783—Queen’s Head renamed Fraunces Tavern1794—City Hotel, New York City, built

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Nineteenth-Century Timeline

1815—Cooking stoves first patented in the United States1823—Appearance of first Catskill Mountain resorts1826—Ye Olde Original Oyster House, Boston, opened1829—Tremont Hotel, Boston, opened1836—Astor House, New York, opened1849—California gold rush1870—Palmer House, Chicago, opened1876—Fred Harvey opened first restaurant in chain1880—Appearance of the first apartment buildings1885—Henry Flagler began developing Florida resorts

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Late Nineteenth-, Early Twentieth-Century Inventions Impacting Travel and Hospitality

Telephone Harnessing of electricity Automobile Paved roads

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Restaurants in theTwentieth Century

Diners became common after 1897. Drive-ins were established after automobile travel

became common. Prohibition saw the development of speakeasies and

roadhouses. Restaurant franchising started in the 1920s. After World War II, fast-food chains developed,

including McDonald’s, Kentucky Fried Chicken, Burger King, and Dairy Queen.

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City Hotels in theTwentieth Century

1920s were known as the Golden Age of Hotels because of number constructed and high occupancy.

During the Great Depression, many hotels failed due to decreased travel and low occupancy.

During World War II hotels reached all-time occupancy highs.

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City Hotels in theTwentieth Century

Development of motels, motel chains, and hotel franchising began after World War II.

International hotel operation by U.S. chains began with Intercontinental Hotels and Hilton Hotels in the late 1940s.

In the 1980s, hotel chains began offering brands to cater to various market segments.

Computers became more common in hotels in the 1980s.



Resort Hotels in the Twentieth Century

Resort hotels were patronized only by the wealthy until after World War II.

After World War II, when airplanes became the primary means of transportation, resort hotels in distant places became popular and New England resort hotels suffered from lack of business.

Time-shares became popular in the latter part of the twentieth century. Types of time-shares included fee ownership, right to use, and vacation club time-shares.

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U.S. Food and Beverage Industry Facts

Sales of over $395 billion annually Employs more women, teenagers, and

members of minority groups than any other industry

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Definition of Foodservice

Providing fully prepared foods for immediate consumption, on or off premises.

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How Foodservice Operations Differ From One Another

Menu items Food quality Menu prices Service Ambience

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Types of Foodservice Operations

Table service Ethnic Specialty Fine dining Limited menu Chain restaurant

Theme restaurant Tops restaurant Family restaurant Cafeteria Buffet



Types of Foodservice Operations

Catering Institutional foodservice Business and industry

foodservice Airline catering Club foodservice Stand

Coffee shop Diner Neighborhood restaurant Drive-through Take-out



Why People Go to Beverage Service Establishments

To eat For entertainment To socialize To discuss business To meet people

To get out of the house To kill time To relax To drink

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National Restaurant Association Foodservice Classification System

Group I: Profit-oriented establishments whose main business in food service, beverage service, or both.

Group II: Establishments is which food service is not their main line of business.

Group III: Military food service, in which people pay for food.

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Concept:

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An imaginative and unifying idea that serves to focus the type of operation, its potential customers, and its location.


Layout and Design Considerations of a Food and Beverage Facility

Space Equipment Lighting Ventilation Material’s flow Traffic flow

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Food Area Activities

Purchasing Receiving Storing and issuing Production Serving

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Three Types of Bars

Front bar Service bar Special-purpose bar

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Four Critical Purchasing Issues

Quantity Quality Price Space

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Primary Goals of Food Storage

Security of material Quality preservation Ready access Facilitating the determination of quantities

on hand

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Goals of Food and Beverage Production Procedures

In suitable quantities Of appropriate quality In a timely manner With minimal waste

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Important Issues in Menu Development

Selecting which food/beverage items to include Determining the best location for each

category/item Writing sales-oriented menus Making art and design decisions

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Dining Room Service Styles

American

Russian

French

English

Cafeteria

Buffet

Takeout/delivery

Room

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Lodging Property:

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Establishment that charges fees for providing furnished sleeping accommodations to persons temporarily away from home or who consider these accommodations their temporary or permanent homes.


Five Key Elements of a Lodging Operation

Services Accommodations Decor Rates Target clientele

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Lodging Types

Inn Hotel Motel Lodge Tourist home/guest

house Bed-and-breakfast Hostel Condominium

Hospital Motor inn Transient hotel Residential hotel Resort hotel Traditional resort All-inclusive resort



Lodging Types

Resort condominium Resort motel Guest ranch Commercial hotel Convention hotel All-suite hotel Extended stay hotel

Conference center Casino hotel Health spa Boardinghouse Lodging house Dormitory Nursing home



Rate Plans Frequently Found In Lodging Establishments

American Plan (A.P.) Modified American Plan (M.A.P.) European Plan (E.P.) Breakfast Plan (B.P.) Continental Breakfast Plan

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National Rating Organizations

AAA rates establishments one to five diamonds Mobile Travel Guide rates establishments one

to five stars

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The Three Elements of a Hospitality Product Line

Accommodations Services Ambience

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Front-Office Activities

Reservations Check-in Information Check-out

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Typical Sizes of Lodging Accommodations (Square Feet)

Subbudget motel guest room Budget motel guest room Commercial hotel/motel guest room Luxury hotel/motel guest room Hotel junior suite Hotel standard suite Suite in an all-suite property

175–200

220–250

250–325

350–450

400–475

450–550

450–700

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Engineering Systems in a Hospitality Operation

Heating Air conditioning Ventilation Electrical Water

Transportation Waste Fire safety Energy control Communications

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Basic Operations and Services Found in All Lodging Establishments

Front office Telephone Housekeeping Security

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Operations and Services Found in Some Lodging Establishments

Front service Food and beverage service Recreation/entertainment Parking Other personal services

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Front Office Activities

Reservations Check-in Information Checkout

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Three Approaches to Caring for Linen

Own linen and install a laundry on premises Own linen and send it to a commercial laundry

for cleaning Rent clean linen

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Front Service Activities

Attended service at the front door Escorting guest from the front desk to his or her

assigned room Delivering mail, telephone messages, newspapers to

guest’s room Providing information about restaurants and theaters,

shopping and sightseeing Making reservations or obtaining tickets to events

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Other Personal Services Offered by Some Lodging Properties

Banking Guest laundry/dry cleaning Hair styling Office services Health facilities Newsstand Language services Shops

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The Functions of Management

Planning Organizing Directing Controlling

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The Basic Elements in the Marketing Mix

Product Place Price Promotion

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Types of Promotional Materials

Personal selling Advertising Sales promotion Merchandising Public relations

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Why People Travel

Conventions or conferences

Visits to friends or relatives

Business Health problems Weather Rest and relaxation

Special events or attractions

Sports activities Sightseeing Education Tracing roots Weddings or funerals To get away

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Three Segments of the Travel Industry

Direct providers of travel service Support services Tourism development

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World’s Leading Tourist Destinations

France Spain United States Italy China

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Nations That Spend the Most on International Travel

1. United States

2. Germany

3. Japan

4. United Kingdom

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Developers of Travel Packages

Direct Suppliers Airlines Bus companies Cruise lines Railroads Lodging companies

Intermediaries Tour wholesalers Tour operators

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Typical Requirements for Approval by Travel Agency Conferences

Manager with two years of experience and at least one employee with one year of experience

Net worth of $100,000 or bond Identifiable to the public and open a minimum

number of weekly hours Payment of application fee, annual fee, and

other fees

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Specialty Channelers Representing the Sellers of Travel Services

Hotel representatives State and local tourism offices Visitor centers Chambers of commerce Convention and visitors bureaus

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Specialty Channelers Representing the Buyers of Travel Services

Corporate travel offices Incentive travel firms Convention and meeting planners

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Recreation: Activities aimed at resorting or refreshing one’s body, mind, or both

Entertainment: Diverging or engaging incident that does not normally suggest physical activity


Types of Camping

Primitive Transient Vacation

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Types of Entertainment

Theme parks Entertainment areas Tour destinations Performances Fairs and festivals Parades and ceremonies Sports events

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Social and Economic Changes That Indicate a Strong Future for Hospitality and Tourism

Early retirement Longer life span Shorter work week More holidays Greater disposable income Greater mobility Growing demand

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Marketing Issues

Changing demographics Changing vacation patterns Market segmentation Frequent-guest programs Maturation of segments of the fast-food

industry Consolidation of the commercial lodging

industry

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Legal Issues

Liquor liability Receiving and evicting guests Impact of the American with Disabilities

Act of 1990 Ethics in hospitality

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Human Resources Issues

Diversity Sexual harassment Employee turnover

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Operations Issues

Total quality management Internationalization Automation

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Consumer Issues

Smoking/no smoking Sanitation The environment Truth in menu Diet/nutrition/health Fire and safety

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Documents

ProMgmt. is a registered trademark of the National Restaurant Association Educational Foundation. ©2003 National Restaurant Association Educational Foundation