Franchises Again-Kyle Davis

(Disclaimer to Audience: This may look familiar. As the great author and industry genius I am, apologize for my minor miststake which has lead to this mixup.)

Recently it has become more difficult for entrepreneurs considering investing into a franchise. Due to the economy, franchisers have raised their previous standards and requirements for those interested into buying a franchise. Popeye’s, for example, made it so that all potential buyers have to own a restaurant already to be eligible to be a franchisee. To confirm how well an owner the candidates are, inspection of currents restaurants are conducted as part of the evaluation process. Popeyes opened since these changes have performed better than those previously opened. Financing of franchises is also of concern so franchisee candidates are having much more elaborate financial evaluations and stricter requirements. “At Zoup Fresh Soup Co., candidates now must have $150,000 in cash, $350,000 in net worth and a credit score greater than 700. Previously, they needed only $100,000 in cash and $300,000 in net worth to open a store, which costs between $250,000 and $400,000” This gives more confidence to franchisors that their investment will be more successful.

This change in requirements makes sense with the economic trend but I think that the shift is good from the franchisor’s perspective. Stricter requirements attract higher talents and higher quality of work and management. It weeds out a large portion of potential buyers who would just run out of business. It also increases the longevity of the franchise. Great changes historically have come from low times and when the economy does become good again, I predict these changes will remain and the franchise will continue to grow and prosper.

http://online.wsj.com/article/SB10001424052748704361504575552803956439716.html?KEYWORDS=restaurant

Joining a Franchise (Irma Mendez)

It has become harder for entrepreneurs to get involved in some franchises. To become part of a franchise, higher standard requirements are needed. This has occurred because of the recession in the economy. In order to join a franchise entrepreneurs need to demonstrate that they have some knowledge on how to handle the business. Preferably it would be better for these people to already have a successful, running business that demonstrates their capability to take care of a business. Mr. Vojnovic says, "We're looking for those that have experience…sweating about payroll and paying taxes every month." Having experience gives a person who wants to join a franchise, a better chance to get approval to join.
Another reason it has become harder to join a franchise is franchises are demanding more money from prospect franchisees. At the same time banks are not willing to loan money to just anyone. A person has to look really good to banks in order for them to accept to give him or her a loan. If a person can't get financing, then his or her idea of opening a new franchised restaurant will not happen. Now it is harder to open a franchised establishment, unless a person has money and enough experience. Mr. Vojnovic also believes, “Popeyes restaurants that opened in 2008 and 2009 generally have better sales than those that opened earlier.” Because the standards are higher, the new franchised places that are being opened are of higher quality. The people who open these franchises are ones that have overcome and complied with the new, higher standards, which means they will be more likely to provide better services.
http://online.wsj.com/article/SB10001424052748704361504575552803956439716.html?mod=WSJ_Hospitality_leftHeadlines

Informational Interview with Mr. Hasan Wanli

For my informational interview assignment, I interviewed Mr. Hasan Wanli, resident manager of Crowne Plaza Kuwait. Mainly we discussed the marketing strategies that hotels use to stand out between their competitors. Since Crowne Plaza is a branch of InterContinental Hotels Group, a major player in the industry, Mr. Wanli was able to provide me with some really insightful details about the various strategies used.

Hotels have been struck hard by the recession as they are the one of the most vulnerable industries to consumer taste. There is much competition and it is seen mostly as a luxury. Because of consumers wanting cheaper hotels to accommodate their travels that have also been cut back, major brands have had to restructure and reshape their operation system to meet these new demands. One of these changes took the form of outsourcing. To lower their internal costs in order to lower the cost on the consumer sections of the management that are not vital to the everyday operation of the company, such as advertising, have been outsourced to expert companies that do this job very efficiently.

Another aspect Mr. Wanli pointed me towards was the extreme importance of segmentation in the industry. Hotels have to specifically target their consumer so that they can give them the exact experience they want. They start of with business versus leasure, then high income, middle or low, then they will choose the location that these customers want, after that they will take into consideration what these customers look for (trendy, relaxing, green, etc.), they might even add a theme that helps them stand out. If the customer is not clearly defined the outcome of this chain could be catastrophic. If a hotel that is for low income customers is built in an exotic Caribbean island, they will probably have more costs than they will have revenue.

All in all the interview was a successful one as I was able to learn a lot from him and his first-hand experience in the field.

Hotel Technology - Irma Mendez

In order to better accommodate the different kinds of customers that hotels get, the hotels need to innovate their different services. The hotel industry has incorporated technology in different aspects of its products and service. One way technology influences hotels in through the internet. The internet has allowed hotels to grow. It provides easier access to the locations of hotels and to booking a room at a hotel. A person can find out the different services offered at a hotel through the hotels’ websites. The appearance of hotels’ websites is very important. Recently hotels are trying to make their websites suitable for everyone. What this means is that a color blind person, a deaf person, and people with other disabilities, have access and are able to navigate through the hotels’ website. The American Hotel and Lodging Association state, “The primer helps hoteliers look at every aspect of their site and ensure all content is usable and understandable no matter how it is presented, and that it integrates seamlessly with other platforms like social media networks and mobile devices.” Hotels have to work hand in hand with technology in order to better satisfy their clients.
I think that it’s important for hotels to be considerate of their customers and try to find ways to facilitate their services for their clients. The more pleased and satisfy the guests are, the more they will want to return to the hotels. Making people’s lives easier will encourage them to come back. If implementing new technological innovations means attracting more customers, then that is what hotels are doing.
http://www.hospitalitynet.org/news/154000320/4049071.search?query=hotel%20industry

Starwood Swings to Loss on Divestiture- Jesse Binder

Starwood Hotels & Resorts Worldwide Inc. reported a small loss($6 million, or three cents a share) in the third quarter compared with a profits of $40 million($.22 a share) last year.   A $55 million charge related to a sale of an asset contributed to the loss.   Excluding the lost, Starwood earned $.25 a share, well above the Company’s July forecast of $.15-.19 a share.   The company is recovering from last years slump in the hotel industry.  Revenues rose 8.6% and Revpar(revenue per available room) jumped 11% which was far better than last year’s decline of 20%.   In the Company’s fourth quarter, Starwood is projecting profits of $.36-$.38 on Revpar growth of 7%-9%.   For 2010, it now expects to earn $1.09-$1.11 a share on Revpar growth of 9%-10%, well above their prior forecast of $.93-$1.05 which was based on Revpar growth of 7%-9%.   Like other competitors such as Wyndham and Marriott that also posted sizable improvement in their quarterly earnings, Starwood is definitely citing improved demand and substantially higher Revpar growth rates. 

Based on the gradual improvement in the US GDP, low interest rates, modest growth in business travel, Starwood Hotels & Resorts Worldwide Inc. should be able to generate solid growth in Revpar and Revenues and at least mean their fourth quarter and 2011 earnings forecast.  Starwood is aggressively cutting costs, raising room rates and benefiting from the rebound in travel and tourism.   The improvement in demand and room rates as well as efforts to reduce costs should contribute to a starry-eyed 2011 for Starwood Hotels.

http://online.wsj.com/article/SB10001424052702303362404575579910742433800.html?KEYWORDS=hotels

Consumers Shouldering Price Increases

The hospitality industry is looking for solutions to deal with changes in its supply chain that have increased input costs. Over the past year inflation, higher foreign demand and less supply ability have all contributed to the higher costs of staples such as beef, milk, and sugar. Groceries and restaurants have taken in these costs over the past couple of years in fear that passing them along to consumers will push them towards their competitors who have kept their price costs internally. Now, however, executives are looking towards alternatives to deal with this situation. Pete Bensen, chief financial officer of McDonald's, has claimed that "The question will be exactly at what point will we be able to take some of that pricing," and chief executive of Starter Bros. Jack Brown has quickly backed him up by stating that "The big challenge will be, how much can we swallow and how much can we pass along?" While many see that this could hurt their business, those with a high brand equity such as Starbucks, Domino's Pizza and Morton's Restaurant group, believe they have enough wiggle room and pricing power not to hurt the business too much. With costs expected to rise 2% in the US and 3% percent in Europe, international and local organizations will find a difficulty in transitioning.

Here is where I believe brand loyalty plays a significant part in business decisions. If a company knows that it has built a strong loyalty within its consumers it knows that they have some breathing space to deal with higher costs. Another important factor in this new approach is timing. Companies who change their prices earlier than their direct competitors could easily loose customers even though the competitor will eventually have to raise prices. BJ's Restaurants has played a slight-of-hand trick as they raised prices but also changed the decor and table settings of the restaurants. BJ's chief financial officer Greg Levin as said that they followed this trategy because "in this business, you can't just raise prices without improving the overall dining experience." Others will have to find their own ways of loading off some of their costs unless they see a true potential for long-term growth if they swallow the short term costs.

http://online.wsj.com/article/SB10001424052748704506404575592313664715360.html

Hotel Plan-Kyle Davis

Residents and officials of a neighborhood in Williamsburg are questioning the governments decision to finance the construction of a hotel. The hotel developer is applying for 15 million in federal tax exempt financing and next tuesday The New York City Capital Resource Corp will vote on whether or not to aprove the loan. The location the hotel would be built is in an area that is designated for industrial and manufacturing jobs. Management at the company trying to purchase the land claims that no one else was trying to acquire the space and that a hotel would make a great addition to the area. Earlier in the year, the new york capitol resource gave 20 million to finance a hotel in harlem. They claim that it will help the economy by stimulating construction and hotel jobs.


This article brings up an interesting government and economic issue. Theoretically the hotel would stimulate the economy to some extent but it is a risk to invest in a hotel that could possibly not be profitable. Also the money that is being used for these hotels could probably be used for other ventures that are more secure and that create more jobs. A hotel does present a variety of jobs such as management, custodial work, receptionist jobs and chefs for potential restaurants or room service. Also construction of the hotel, interior design, electrician and what ever else is necessary to create the hotel. In my opinion, i do not think the hotel should be approved for loan unless more research is done on the amount of jobs they hotel will stimulate. Also i think research should be done on the need of a hotel in the area. How man people visit Williamsburg? What is the competition in terms of other hotels and the demographic of tourist and visitors of Williamsburg?


http://online.wsj.com/article/SB10001424052748704462704575590270402178614.html?KEYWORDS=hotels#articleTabs%3Darticle

Hotels Increases (Irma Mendez)

The recent recession had an impact in the hotel industry. Personal travel didn't change by a lot. The Business travel, however, drastically decreased, which was where the hotels saw a decrease in revenue. This trend had occurred in the last two years. This year it seems that hotels are beginning to recover from the recession as business travel slowly increases. According to Smith Travel Research Inc. hotel occupancy rose from 62 percent to 67 percent last year in hotels with the most expensive rooms. Also occupancy rose from 62 to 65 percent in hotels across the country. This increase demonstrates that the recession is slowly going away, which is making businessman travel more often. If this increase continues, then hotels can recover from the loss of revenue they had because of the recession, which caused businessman to travel less.
I believe that the revenues of hotels will continue to increase as more and more businessman continue traveling and staying at hotels. Also as the recession continues to disappear, it will benefit hotels. Once people feel confident that the recession is over or that economy is in good shape, they will be more willing to spend money. This has the possibility of increasing personal travel, which will boost the hotel revenues. With both an increase in business travel and personal travel, hotels will be able to recuperate their losses from the last couple of years.
http://www.bloomberg.com/news/2010-11-03/hyatt-third-quarter-profit-rises-as-demand-for-high-end-hotels-increases.html

Socializing at the Holiday Inn

Executives at the InterContinental Hotels Group PLC (IHG) have announced their intent to incorporate a "social-hub" into their Holiday Inn chains. Holiday Inn studies have shown that most of their guests—"who are most often middle managers, route salespeople, entrepreneurs and government supervisors—want to be around other people rather than holed up in their rooms." The company plans to overcome the everlasting problem it faces with generating enough traffic to support full-service food services.

The social-hub would join all the aspects of a restaurant, game room and business center into one. There the guests of the hotel can meet and interact even if just briefly. Kevin Kowalski, senior vice president of global brand management for IHG, has said that "these are more extroverted, charismatic people who like people," therefore, they will enjoy this new inclusion. Although the start up cost of such a project will be significant, the project promises to decrease labor costs by limiting the wait staffs. This will result as the planned social hub will have a more "do it yourself" theme where many stations will be set and you, as a guest, pick and choose.

I think that this plan could pay off for IHG as it has been an underperforming sector of the middle market hotels. A restructure could be exactly what this area of the business is looking for to creative a more lucrative field. Social travelers will likely look forward to these hubs as they can turn their stiff business trips into more relaxing and enjoyable ones.

http://online.wsj.com/article/SB10001424052702303443904575578613162270270.html

"Greenwashing" -Irma Mendez

It seems that the recent goal of hotels is to become more environmentally friendly. Hotels in the Northwestern part of the country are no exception. The only difference is that they are trying to do it even greater than what other hotels are doing. One hotel that is becoming eco-friendly is the Oxford Hotel in Oregon. One way that the hotel is doing that is by having natural mattresses. The mattresses have “no polyester or off-gassing.” The rooms in the hotel are also cleaned with nontoxic solution made from water and electrolyzed salt. Other ways that the hotel saves energy is that: “The hotel is entirely powered by Columbia River Gorge wind farms and hydro dams through renewable energy credits provided by Pacific Power’s Blue Sky program.” These are not the only ways to be “green.” The hotel is also starting its own roof garden, which will provide some of the foods for the hotel's kitchen.
One reason that the hotel is trying to be more “green” is that it wants to show that it does care about the environment. Also as Ben Perle, the hotel's manager put it that the hotel is not doing it because of all the “greenwashing.” The trend of hotels moving towards becoming more “green” is quickly growing giving the hotel chains the pressure to change their facilities to accomplish this. This pressure has made some hotels lie or exaggerate to some extend about the “green” changes that they are making. This is what the term “greenwashing” refers to. Ben Perle doesn't want the Oxford Hotel to be seen as those “greenwashing” hotels. He says that the changes the hotel is going through are real and no exaggeration or lying is taking place.
It is very important that if a hotel says that they are going to become “green” that they actually go through with the plan. If they fail to do so or of it know that they are lying, then the hotel could loose credibility and clients. In order for the hotel to keep its reputation it needs to keep its word and perform all its planned activities. A hotel doesn't have to become “green” if it doesn't want to but the growing trend shows that if hotels want to stay in competition then they have to find some way to more towards being “green.”
http://www.nytimes.com/2010/10/17/travel/17headsup.html?scp=7&sq=hotels&st=Search

Bedbugs Take A Bit Out of the Waldorf - Jesse Binder

The massive infestation of the bedbugs in the New York City area has already created havoc for apartment dwellers, retail stores, and even the Lincoln Center for the Performing Arts.  In recent years, it has become a growing concern for New York City’s hotel industry.   Over the past five to seven years, hotels began to “change some of their housekeeping protocols” to identify a problem early said Joseph McInerney, President and Chief Executive Officer of the American Hotel and Lodging Association(a trade group).    He also noted that the number of lawsuits against hotels over a bedbug complaint has been “miniscule.”   But a recent lawsuit by a Nassau County mother may increased this risk for hotel industry.

In a Nassau County Supreme County, Ms. Susanne Igneri filed a complaint in mid October against the renown Waldorf Astoria hotel(owned by Hilton Worldwide) in New York City.   She argued that she has spent more than $13,000 in expenses to treat her six year old daughter Sophia.     Their complaint suggests that the child is experiencing repeated nightmares and lasting medical issues.    If the family prevails, it may spark a rash of lawsuits against the NYC hotel industry.   Already, travelers have second guessed staying in New York hotels.   If the Igneri family succeeds, hotel operators may also second guess opening new hotels in New York City. 

Although the mounting concerns about the bed bug infestation has reduced demand for NYC hotel rooms, an increase in lawsuits could reduce the longer term supply of hotel rooms.  This could have a favorable impact on longer term hotel rates.   However, this presumes that New York City prevails in cleaning up its bedbug epidemic.   It remains to be seen who will win this fight, New York City or the Bedbugs?

http://online.wsj.com/article/SB10001424052702303339504575566413252299180.html?KEYWORDS=bedbugs

Starbucks Slow down-Kyle Davis

Next month, Starbucks is implementing a storewide change into their approach in preparing beverages. People had been complaining that the care and attention in the preparation of their drinks had been lost due to the assembly line method used in making drinks. Starbucks is responding to this by making employees slow down the amount of time use in making the drinks. No more than two drinks can be worked on at a time and milks is steamed for each drink. This change brings the small coffee feel back to this coffee shop chain. They also claims it will increase the efficiency. I can agree that the quality of the beverages will increase but more time is being taken so i would argue that there is no efficiency change.

Slowing down the production time is going to increase the wait time for customers. This could lead to less people from visiting Starbucks who are in a rush or impatient. People who may need to get their morning coffee before work may go to other alternatives. McDonalds is Starbucks biggest competition already and not only is their coffee cheaper, but it’s also faster now. In this situation I do not think that making this switch is going to reap enough benefits to make it worth it. “Earnings at Starbucks rose 37% while revenue for the quarter ended June 27 increased to $2.61 billion from $2.4 billion in the year-earlier period” Sales are fine for Starbucks so I do not see what exactly starbucks is responding to because whatever system is currently going on is working.

http://online.wsj.com/article/SB10001424052748704164004575548403514060736.html?mod=WSJ_Hospitality_leftHeadlines

Redesigning Hotel Rooms

The recession has had some impact in the leisure and travel aspects of hotels. This has lower the hotels' income, which has prevented several hotels from coming up with new design projects. There are, however, some hotels that seem to be doing well enough to invest in redesigning their rooms. One of them is Starwood Hotels and Resorts. It plans to redesign some of the guest rooms. Out of the 576 worldwide hotels, it only plans redesign 41 of them. The reason for this is because it takes a lot of money to redesign just one hotel. With the 41 hotel Starwood is estimating to spend over $100 million. Starwood is a big hotel chain, which is why it is able to afford the costs.

Franchised or managed hotels are not able to keep up with the new designs because the ones that pay for the designs are the owners and not the management companies. The lack of income means that this hotels have can't afford to change the look of the hotel. A study shows that hotel spending on new looks has gone down in the last couple of years. The lack of renovation has become apparent; it has come down to, “scuffed wall coverings in hallways to torn drapes and faded, worn and stained carpeting and upholstery.” Hotels that are able to work on making themselves look better have the advantage of being more appealing to guests.

Hotels that are being affected by the economy have to do something that will give them an advantage over the new and improved hotels. What these hotels can do is maybe lower the prices of the rooms or provide a service that will cost them very little, but will greatly satisfy the guests. The improvements of the hotels will be attractive to people, but it might also make the prices of the rooms go up in order to compensate for the expense of remodeling. This will then leave people with choosing to stay at a cheap, not so attractive hotel and room or to stay at a more expensive, but better looking hotel and room.

http://www.nytimes.com/2010/10/12/business/12hotels.html?scp=1&sq=hotel%20industry&st=cse

Blackstone Reclaims Old Property

Blackstone Group LP, the world's largest buyout firm, has pounced on the chance to make big money off of the recession. Blackstone has $100 billion worth of assets under managment, including Hilton Worldwide, Inc. The firm has now seeks to buy back properties it sold at peak value for a bargain. Blackstone has already captured Extended Hotels, Inc. along with its 680 hotels, which it sold for $8 billion in 2007, for a price of $3.9 billion. Now the firm has its eyes set on 14 hotel properties owned by Columbia Sussex. These same 14 properties were sold to Columbia Sussex for $1.4 billion in 2006. Blackstone now looks to regain these properties at the extremely discounted rate of $300 million. Columbia Sussex had invested $170.6 million to turn 13 out of the 14 properties into top-tier brand hotels.

I believe Blackstone Group has done the right job as they pick up the ripe treats before them. The hotel industry is continuing its recovery as occupancy and revenue rates continue to increase. For Blackstone to hold these major properties at the discounted rates now could promise them a very optimistic return in the future as they have already worked with these properties and seen their growth potential. In buying out their old properties, Blackstone also eliminates the fear of dabbling in unknown waters. The odds are that they will eventually capitilaze on their expenditures and I think that they are very aware of that.


http://online.wsj.com/article/SB10001424052748704164004575548390559325962.html?mod=WSJ_Hospitality_leftHeadlines

Marriot Swings to Profit as Revenue Rises- Jesse Binder

Marriot generated more than a $500 million improvement in profits during the third quarter, led by the absence of last year’s $502 million write-down and a 7.5% increase in RevPAR(revenue per available room). The increase in RevPAR partly reflects a 1.8% increase in the average daily room rate as well as higher occupancy factors. In fact, this was the first time in two years that Marriot’s North American average daily room rates actually rose compared to a year ago. For the third quarter, the hotel reported earnings of $83 million, or 22 cents a share, compared with a net loss of $466 million, or $1.31 a share, a year earlier. Revenue rose 7.2% to $2.65 billion. The company’s profits have been helped by the increase in demand for corporate and leisure travel and a limited increase in the supply of hotel rooms. Marriot’s profit improvement has also been boosted by the expansion of its hotels outside North America, which management believes will account for a growing percentage of its future revenues and earnings.


Marriot projects fourth quarter earnings per share of 33 cents to 36 cents. The organization also estimates 6% to 8% growth in revenue per available room, or revpar, a key performance metric for hotels. Hotel companies are very dependent on the health of the economy, consumer spending, and business confidence. Due to the improving economic trends, strong economic growth in the emerging markets, and limited growth in the supply of new hotels, I believe Marriot hotels will report strong results in the fourth quarter and in 2011.


http://online.wsj.com/article/SB10001424052748703735804575536632272217678.html?mod=WSJ_Hospitality_leftHeadlines

Upper Class and fast food-Kyle Davis

A recent American express study has shown that the “ultra-affluent” consumers have increased their spending on fast-food by 24%. Ultra-affluent is defined as someone who charges 7000 a month on their card and meet certain income requirements. These consumers have also increased their fine dining expense but are still showing signs of saving money. This agrees with how the economy is doing. The economy is recovering but still is bad which means people are becoming better off financially but not to a large degree.

"Subconsciously, I think I'm saving money by spending less on food, but my spending somewhere else must be going up, because the amount on my credit card is not going down”

Fast-food is the only portion of the restaurant industry which has seen increases during the recession. I think its interesting that even the upper class are subconsciously reducing their spending in aspects of their lives. The article brings up the point that their luxury spending is increasing on things like plane tickets and luxury hotels but they still have increased their spending on fast-food and retail shopping. Its interesting that this increase in lower end expenses makes the upper class consumers feel as thought they are watching and limiting their spending.

http://online.wsj.com/article/SB10001424052748703431604575522080669507478.html?KEYWORDS=fast+food

San Francisco Foodshed Project

As farmers continue to struggle with increasing domestic and worldwide competition; a group of non-profits and businesses have initiated a project in the San Francisco Bay Area. They have set up a chain where farmers' harvests would be picked up by Ben and Annie Ratto, acting as middle men between farmers and food distributers. These distributers include L.A. Specialty Produce Co.'s San Francisco branch and FreshPoint Inc. The distributers then sell these products to customers in the area. Since July of this year the project has aimed to tighten the often complicated relationship between local farmers and final commercial customers. One of the best known names associated with this project s the Ritz-Carlton hotel chain.

Although this seems like good step towards helping out local farms, the system still has major flaws. Ritz-Carlton chef Nate Beriau is a strong supporter of the project, yet he claims that "It takes patience," referring to the need to maintain a standing order for the fruits and vegetables instead of making ordering according to the specific needs of that day. Other worries include the fact that this system cannot guarantee that products will be similar size of shape, which is a concern to restaurants that want to keep their signature products the same.

I think that with a few logistic adjustments and the experience that will come with time, this project will really take off. It solves the hurdles that farmers have to go through in famers' markets and such. It also helps the fast-paced food industry to find all their needs under one roof that is known for its quality.


http://online.wsj.com/article/SB10001424052748703946504575470212852902950.html?KEYWORDS=hotel+supply+chain

Human Resource Practices (Irma Mendez)

Marriott Hotels are a major chain of hotels that has been around for a long time. One of the reasons why the hotels have had such success is the human resource practices that they have. J. Willard Marriott, the founder of the chain, made sure that every employee felt valued in their job. He would take the time to ask his employees about their specific problems at work. He also told the managers that they were responsible for the satisfaction of their subordinates because in order to complete your work with a good attitude, you need to feel comfortable in your job.
Marriott's human resource practices include: “manpower planning, recruitment and selection; training and development, employee retention and welfare initiatives.” What manpower planning means is that each division or department of each hotel makes an expansion planning. They look at the number of workers, jobs, and positions needed if the hotel grows to a certain level. This helps them see how many workers they are going to need to hire and the type of they training they will need to offer. This type of planning helps them be prepared for any expansion or change that the hotel might encounter. Training and recruitment is another important aspect. After having hired a new person to become part of the hotel, that person needs training so that they know exactly what to do. Marriott has several training programs that have gotten better over the years. Marriott spends a big part of its money on training its employees, therefore it is important to keep them. In order to do so, Marriott provides services that helps the employees not get stressed out and balance work with personal life. In 2000 it started a new program called Management Flexibility. This program was started after several managers quit because the hotel was taking too much of their time. The program's goal was to help its employees not feel like their work was taking over.
The human resource practices of a hotel or any workplace are vital to the organization of the place and the way employees feel about their work. I think that it is very important for any workplace to take into consideration the needs of its workers. If a worker feels appreciated, then he or she will perform his or her job better. Choosing the right people and training them well will definitely make the hotel run better. Also being prepared for what might happen has the the potential to help a business(hotel) grow.
http://www.icmrindia.org/casestudies/catalogue/Human%20Resource%20and%20Organization%20Behavior/Human%20Resource%20Management-Best%20Practices-Marriott%20International-Case%20Studies1.htm

Burger Kings New CEO- Jesse Binder

3G Capital, the new owner of Burger King plans to restructure the burger joint management team through the hiring of CEO Bernardo Hees who will succeed Burger King's current Chief Executive Officer, John Chidsey. Bernardo Hees was previously the CEO of America Latina Logistica, Latin America's largest railroad and logistics company. He successfully implemented various strategies to boost company profits for the railroad and logistics company. Burger King’s sales and profits have been hard hit by the impact of the high unemployment rate of its targeted market of young customers. Analysts who follow Burger King hope that Bernardo Hees will be able to leverage his skills to the fast-food industry. Burger King’s international sales have been lagging behind its main competitor McDonalds. By bringing in the new CEO, Burger King hopes that new operator will show great leadership, discipline and innovation to help the burger company to surpass their key adversaries such as McDonalds and Wendy's.

Bernardo Hees will have to fill the shoes of some stronger CEOs who have previously run Burger King.   Burger King has had CEO's such as John Dasburg, Greg Brenneman, and John Chidsey who brought knowledge and experience to the company.  However, the former CEO's were unable to elevate Burger King’s market share and financial performance to a level near McDonalds, the industry’s powerhouse. I believe Bernardo Hees will enforce a new type of strategy and leadership into Burger King.   He not only brings strong leadership skills but also was previously the Chief Financial Officer of the Brazilian railroad and logistics company.  In my opinion he will focus on customer satisfaction, distributing better products to its consumers, and instilling more aggressive marketing and financing tactics to ensure that Burger King is able to improve its competitive standing in the fast food industry.

http://online.wsj.com/article/SB10001424052748703960004575481482827393778.html?KEYWORDS=emerging+hotels

Chik-Fil-A Kyle Davis

One of the most unique restaurants in the industry is Chik-fil-a. Chik-fil-a was started in 1946 by Truett Cathy in Georgia. The Dwarf Grill, as it was known then, was credited with inventing the boneless chicken sandwich. Chik-fil-a has a simple menu that is unique from most fast food places. Not only is there only chicken products (no beef anywhere) but there are also waffle fries. Even the deserts like cheesecake and peach milkshakes separate them from other restaurants. They steer away from the traditional approach of quick food service.

 Chik-fil-a still remains privately owned and the morals and values of the owner are still present. The employees are friendly and seem to care and have more enthusiasm than other fast food workers. Also chik-fil-a is closed on Sundays always due to the owners belief that no one should work on Sundays. There are several standalone chik-fil-a’s but they are usually found in malls and other food courts because they are a quick-service restaurant. This means that chik-fil-a’s can be found in hospitals, airports, college campuses, malls, streets, and pretty much anywhere food can be obtained. Chik-fil-a is truly one of a kind in several aspects of the food industry.

http://www.chick-fil-a.com/?#facts

Irma Mendez (Conrad N Hilton)

          One influential leader in the hotel industry was Conrad Nicholson Hilton, the founder of the Hilton hotels, one of the biggest hotel chains that exist today. Conrad was born on December 25, 1887 in San Antonio, New Mexico territory. From a very young age he had been exposed to the hotel business. When he was a boy, he helped his father turn part of their house into an inn for traveling salesmen to stay at while passing by. He also started working at his father's store, A.H. Hilton & Son. At the age of 23 years, he decided he didn't want to work with his father. After his father's death, he bought the Mobley Hotel in Cisco, Texas. This of course was the beginning of a chain of hotels that would become very dominant.

          There were three methods that Hilton used to build his empire. They were: “first, by the leasing and renovation of old hotels; second, by the erection of new hotels on leased land primarily in Texas; and third, by the purchasing of existing hotels at low prices.” His continued grow in business was affected by the Great Depression, a time in which he lost a lot of his profits. He didn't let this discourage him, instead it made him want to work harder. He once stated, “Success seems to be connected with action. Successful men keep moving. They make mistakes, but they don’t quit.” Hilton's perseverance and desire to succeed played an important role in the growth of his empire. One key action that helped determined the future of his chain was buying the Waldorf-Astoria hotel in NYC. This action put, “. . .his financial problems to bed forever.” Hilton did not stop there. His religious belief and devotion to God, made him want to help those in need. In 1944 he founded The Conrad N. Hilton Foundation, which, “provide[s] funds to nonprofit organizations working to improve the lives of disadvantaged and vulnerable people throughout the world.” Hilton knew that he did not only want to be known for creating this empire of hotels, but he also wanted to be known for making a difference in helping the lives of others.

http://www.minyanville.com/special-features/articles/conrad-hilton-hilton-hotels-religious-CEO/5/19/2010/id/28273

Jesse Binder

Influential Leaders and Jobs in the Restaurant Industry

The restaurant industry has many influential leaders that have impacted the industry, but the most prominent ones are Gordon Ramsey and Jamie Oliver. Gordon Ramsey is known for his reality television shows such as "Hells Kitchen" and "Ramsey's Kitchen Nightmares." He has also published 13 sensational cookbooks. His Gordon Ramsey Restaurant went from nowhere to three stars in just three years, a prize achieved by only five British Restaurants. In fact, Gordon Ramsey Holdings(GRH)  comprises nine London restaurants with eight Michelin stars. Jamie Oliver is also well known for his reality television shows called the Naked Chef and Jamie's Kitchen. He gained national recognition when he worked as a senior sous chef at the River Cafe for three and a half years where he was "discovered" in a 1997 TV documentary. The well known chef believes in helping out underprivileged people. In fact, he created his first Fifteen which he personally trains fifteen disadvantaged young people to become chefs. Both Gordon Ramsey and Jamie Oliver boast a hard work-ethic and are icons to people who love cooking for fun or for a profession.

http://www.caterersearch.com/Articles/2006/10/24/308864/CatererSearch-100-the-full-list.htm

The restaurant industry offers many jobs to people who wish to work in a restaurant. Available jobs include being a host/hostess, bartender, server, food runner, line cook, and pastry cook. The host is responsible for answering the telephone where they can make reservations or assist customers on directions or what time the restaurant opens and closes. Hosts also greet and escort customers to their reserved tables. A bartender is responsible for mixing drinks for customers and servers. They need be ready to carry heavy cases which can include glasses or bottles. Bartenders are also responsible for making sure the “right” TV programs are on for the bar patrons. A server is responsible for writing down orders and maintaining a friendly attitude toward the restaurant’s customers. Servers need to possess a great memory in order to inform customers on daily food specials and wine descriptions.  They also have to balance several hot plates. A food runner is required to keep their composure and bring in hot meals at a quick pace to customers. Line cooks actually play an important role in a restaurant by working together in the kitchen to cook food ordered by the patrons and prepare all foods needed for service. Line cooks need to be prepared to work in a hot and congested area, and also spend plenty of time preparing efficient meals for the customers. Pastry cooks play a similar role to line cooks but they make breads, deserts, ice creams, and other sweets for the restaurant.

http://www.ehow.com/facts_5143690_types-restaurant-jobs.html

I believe influential restaurateurs such as like Gordan Ramsey and Jamie Oliver have enhanced the image of the restaurant industry.  They bring a new sense of culture and attitude into the restaurant business. They create job opportunities, produce television shows that attract customers to their restaurants, and recruit selected individuals to develop their chef skills on TV. In my opinion, if these two icons didn’t exist, the restaurant industry would not be as successful and unable to offer as many job opportunities as they currently do.  

Ray Kroc and the McDonald's Empire

Probably one of the most recognized names in the world today, McDonald's started off with a amazing concept but a small vision. Richard and Maurice McDonald's launched their first Mcdonald's restaurant in San Bernardino, California in 1948. They introduced the "Speedee Service System", the idea that established the modern-day fast-food restaurants.
Ray Kroc was a multi-mixer salesman when he first walked into a McDonald's to deliver an order they had made. He was amazed by what he saw and later presented his vision of expansion to the McDonald's brother's. After limited success with the brothers, who were happy with the handful of restaurants, Ray Kroc arranged for an acquisition of the company. After the purchase Kroc had the freedom to expand. His first footsteps in creating the Mcdonald's empire was to enforce his view of "Quality, Service, Cleanliness and Value" throughout the company.

“If I had a brick for every time I've repeated the phrase Quality, Service, Cleanliness and Value, I think I’d probably be able to bridge the Atlantic Ocean with them.” —Ray Kroc, McDonald's.com

He also used a unique philosophy to implement a unique strategy in the industry. Kroc encouraged his franchisees and suppliers to maintain the same quality methods of preparation to provide the same tasting foods everywhere. He used the slogan “In business for yourself, but not by yourself,” to achieve this mission. In following this strategy Ray implemented an assembly line into the restaurants industry. Ray held these principles high until the day of his death and in doing so contributed greatly to the tremendous success of McDonald's. His vision is still carried out in every one of the over 31,000 McDonald's restaurants worldwide.

Irma Mendez (Pollo Campero)

A restaurant that has become popular in certain areas of the US. is Pollo Campero. The chain of Pollo Campero restaurants started in Guatemala in 1971. Now it has more than 227 restaurant locations in 10 countries, one of them being the US. Pollo Campero serves a chicken with a distinct flavor that differentiates it from other chickens. It also serves campero sauces, beans, sausage, spanish rice, fried plantains, sweet plantains, coleslaw, smashed potatoes, french fries, and many more delicious foods. Pollo Campero mainly serves foods that are based on hispanic flavors. Pollo Campero not only provides delicious foods, but it, “ . . .is also known for its personalized, friendly service.”

Pollo Campero restaurants have opened in several states in the last couple of year including Chicago, Washington D.C., Virginia, Texas, Maryland, New York, and California. Each Pollo Campero restaurant has made about 1.9 million dollars a year. The restaurants are really popular among Hispanic consumers, but they are not limited to those consumers. The general public seems to also enjoy this food. During the opening weeks, the restaurants seem to be very popular bringing crowds of people. A couple of years ago, the one in Virginia opened. I didn't have the chance to go during its opening week, but my dad did. He waited for 2 hours in line before getting his food. That's how crowded it was. The restaurants seem to be very well liked.

Restaurants around the area where the Pollo Camperos are opened have a new competition. There's new delicious food that those restaurants have to compete with. Also this popularity shows the growth that Hispanic restaurants are having in the US. The Hispanic restaurants that were already establish also have new competition.

http://www.prnewswire.com/news-releases/campero-usa-corp-opens-headquarters-in-the-us-58014102.html

Five Guys-Kyle Davis

Many people know that five guys has a delicious burger but a lot more people have become aware of this recently.The first five guys opened in 1986 but it was a local place that only people in the DC, maryland and virginia area knew about. In 2003, five guys sold out of franchise territory and began opening restaurants up nationwide. Since then five guys has quickly gone up in popularity and received best burger awards in several cities. According to a survey done by market force, when looking at people's favorite restaurant based on the amount of them, Five guys is the winner. Five guys received the highest score in 8 out of 10 rankings including quality of food and cleanliness of restaurant. A recent Zagat survey also named five guys as number one food place.

Five guys presents the best of both worlds for casual dining. There is the fast food "burger joint" element and the fresh ingredients and care of a sit-down place. THe consumer knows where the potatoes are from and can see their burger being prepared in front of them. The price is higher than most fast food places but this does not turn away people because they know that they are getting a higher quality meal.In the zagat survey, five guys beat In-N-Out burger because five Guys offer a larger range of toppings. "I would suggest that, being No.1 and No. 2 for burgers, there may not be a hell of a big difference between the two," he said when I pressed him on why Five Guys was winning. "I wouldn't make too much of that." But Five Guys has got it, he says: "The fresh ground beef and unlimited fresh and interesting toppings has caught the public imagination and taste."Five guys has also been expanding so quickly and the word of mouth buzz has generated large profits for this business. It is a simple formula that has made Five GUys one of the top restaurants in the country.

http://www.qsrmagazine.com/articles/news/story.phtml?id=11353http://www.dailyfinance.com/story/company-news/five-guys-new-burger-masters/19595634/

Taking Green to a New Level - Mohammed Sadeq

Starwood Hotels and Resorts have launched their first eco-friendly hotel line, Element by Westin, in July 2008. As one of the world’s largest hotel companies, owning brands such as Sheraton, St. Regis, and W, Starwood has now tried to jump in front of its competitors with its eco-friendly chain. Element by Westin is the first hotel chain to be built on being green from its roots. All Element hotel buildings must have U.S. Green Building Council's (USGBC) LEED Certification, which recognizes high performance green buildings. The chain also uses up to 100% recycled carpeting content throughout the site. All rooms include a kitchen area that contains all Energy Star rated appliances. Ambient lighting offers three brightness levels using fluorescent light bulbs to be more energy efficient. All bath amenities are presented in a dispenser system and not the traditional mini-bottle system which is known for its waste. The list is endless.

I believe Starwood Hotels and Resorts have acted brilliantly towards the growing demand to be green. Since the hotel’s launch in 2008 it has increased the pressure on other hotel chains to become more energy efficient. The competitive landscape has changed as a result of Element’s concept of a green hotel from the ground up. While hotel chains have been working for years to improve their current hotels and make them more efficient, they simply cannot compete with Element’s eco-friendly structural advantage. Competitors will now have to react quickly to find solutions to catch up in the green race as it is a growing concern for the hospitality industry. Element has been able to cut its water consumption by 32 percent, or 942,000 gallons. It has also been able to become 20 percent more energy-efficient by purchasing 70 percent of its power from reusable energy sources.

- http://www.greenbiz.com/news/2010/08/05/starwoods-element-hotel-line-designs-green-prototype
- http://www.starwoodhotels.com/element/experience/green_vision.html

Jesse Binder-Subway

Subway

Although Subway started out as a small sandwich shop nearly 45 years ago, Subway has emerged over the past five years as one of the fastest growing fast food companies in the United States. Subway has used innovative techniques such as the extremely popular $5 Footlong (introduced in 2008) to enable it to survive and grow during the 2008 recession. Subway has developed a reputation as a “healthy” restaurant, which has enabled it to attract customers that are concerned about their weight. Subways spokesman Wes Winograd talks about how the restaurant is able to live up to their motto “Eat Fresh”. “The idea of Subway as a healthy alternative came from the fact that we don’t fry anything. There are a lot of veggies on the sandwiches. The meats are low fat. Things like that.”   The documentary “Super Size Me”(introduced in 2004) awakened consumers to the drastic effects from the fast food industries.   In particular the movie blasted McDonalds, as the lead actor Morgan Spurlock gained 24 ½ pounds in just 28 days by eating at a McDonalds three times per day.   The movie helped to spur the growth of fast food chains such as Subway that offered products appealing to health conscious customers. Subway was able to capitalize on this movie and the emerging health trend and used a man named Jared as an advertising dynamo. “"When Jared came on the scene, things just got out of hand," Winograd recalled. "It really put us on the map. He had lost 245 pounds on a diet that he designed, which included eating nothing but Subway for about a year and supplemented it with an extensive exercise program. He went from morbidly obese to healthy, so we put him in some commercials, and it resonated with consumers. People to this day write and tell us that he inspired them. People related because he was a regular guy. We didn't ask him to lose weight."   Subway created healthy and fresh sandwiches; for example, “the meatball marinara sub has 379 calories and 23 calories of fat in the 6-inch version.”

Through its innovative advertising techniques, its franchisee approach, and its appealing and value oriented sandwich offering, Subway has been able to change the competitive landscape in the restaurant industry.   In fact, by the end of 2009, Subway had more than 32,000 food stores, exceeding the total number of McDonalds’ stores.   Ten years ago, fast food customers would choose among McDonalds, Burger King or Wendys for a quick fix. How Subway is now a featured fast food chain and is growing at a very fast rate.   In fact, Subway has used its $5 Footlong sandwiches to attract budget-conscious customers enabling to grow during the current recession.  Because of their success, entrepreneurs want to invest in the Subway concept. According to Wes Winograd, "We've got franchisees that used to be customers who now want to start a store. Since the recession, we've gotten a lot more inquiries, which is traditional: There's a mistrust for working for a corporation, and it's the American dream to run your own business."   Unlike most franchisors, Subway doesn’t operate any of its restaurants. The company’s success has been noted in the 2009 Zagat’s fast food survey where it was rated the best provider of “Healthy Options” and ranked first in the “Best Service” and “Most Popular” categories.”

http://motherjones.com/environment/2009/10/step-aside-mcdonalds-why-subway-has-most-fast-food-stores-country

Dirty Restaurants-Kyle Davis

When people go to restaurants, one of the things expected is cleanliness. This covers many aspects including how clean the restaurant is, hygiene of employees, and storage of food. What causes this to be even more unsettling is that the average consumer has no way of truly knowing how clean a restaurant is in most of these aspects. Restaurant owners should want their restaurant to be as clean as possible. Dirty food and surroundings not only decreases the aesthetics but also discourages people from coming back. The risk of getting food disease, or any type of infection, increases greatly in unsanitary settings.

Health codes are put in place and it’s a restaurant’s responsibility to maintain all the guidelines of the code. Inspections are done and restaurants receive grades based on how well the guidelines are met but the average consumer is unaware of well they establishment did Some of the things included in health codes are:

• how often restaurants should be inspected
• the amount of training needed by restaurant health inspectors
• standards for refrigeration equipment and commercial dishwashers
• cooking temperatures for meat, poultry, pork, eggs, and fish
• hot-holding temperatures for cooked foods
• the need for consumer advisories for raw or undercooked foods

A USA Today article brings up the growing movement for making restaurants post their health inspection grades in plain site for the people. This makes the public more aware so that they are better equipped to make a good decision for their eating experience and health. If restaurants are making their efforts to maintain a quality establishment, they should not be afraid to post their grade for the public. A good grade would help with public image for the restaurants that actually do keep a clean restaurant. It will also force restaurants to make their restaurants more up to code causing the quality of all restaurants to increase.

Kyle Davis 

http://www.usatoday.com/news/health/2010-06-21-healthinspect21_ST_N.htm

Hotel's Social Responsibility

For the hotel industry, one that is spread throughout the entire world, their main issue today is sustainability. Hotels' building and operations can leave a huge mark on the planet. Millions and millions of gallons of water used in countless washing machines to clean all the supplies each hotel room needs such as towels and bedsheets. Toiletries are another utility that will most usually go underused. Guests will not use the whole soap bar that the hotel offers and another guest will not use the same bar of soap, therefore, the hotel has to throw it out. Not making full use of the utilities means that they will be dumped into the trash where it will eventually turn into pollution to the Earth.

Hotels have quickly reacted to the growing awareness of consumers of such factors as global warming to save their business. Large hotel companies have now issues a sustainability promise as well as a mission statement. Hilton, for example, issues this statement on its website: "For Hilton Worldwide, sustainability means continuous improvement and action. Our objective is to lead our industry with products and programs that not only deliver great guest experiences, but protect the world we live in. It's how we provide for today's needs while positively influencing tomorrow." Hilton has followed up with its sustainability promise by launching two "green" programs: From Commitment to Action and LightStay. The latter is Hilton's instrument to measure every one of its hotels' sustainability performance impact. And to assure its customers of LightStay's legitimacy Hilton Worldwide has hired an independent third party auditor, KEMA-Registered Quality, Inc, to verify their results. Hilton's other program From Commitment to Action is where Hilton outlines its means to achieve a more environmentally friendly company. Hilton uses a four-step cycle which its calls its Framework for Action. These four steps are:

1. Measuring: using LightStay.
2. Reporting: auditors confirm Hilton's measurement to benchmark their continuing sustainability.
3. Learning: they use their expertise to share the best practices of sustainability to all its hotels.
4. Continuous Improvement: keep finding new and better ways to run their business in an even more pleasing matter.

Honestly, I believe hotels must find ways to show their social responsibility towards the environment. People today are much more aware of the harm caused to the environment and unless the whole industry raises its bar companies, such as Hilton Worldwide, are going to have a strong competitive advantage over their rivals as they will be more appealing to consumers.

http://www.hiltonworldwide.com/aboutus/sustainability.htm

Mohammed Sadeq

Irma Mendez (Applebee's)

          Applebee's is a restaurant that not only wants to provide its customers with good food, but it also wants to help its community. Applebee's not only has a mission statement, but it also has a social responsibility statement.

Applebee's social responsibility states:

“When thousands of people embrace their responsibility to our neighborhoods, the results can be astounding. Since its beginning in 1980, Applebee's has recognized our responsibility to operate with ethical business practices and to be a force for social good. This makes good business sense as it resonates with our associates, franchisees, and most importantly our guests, who are looking more and more closely at how all businesses contribute to society.

In short, Applebee's strives to make a positive impact in the neighborhoods we serve because we believe we have a responsibility to do so. We have seen firsthand that embracing our responsibility to our neighborhoods builds value for our guests, associates and franchisees. We organize our social responsibility efforts into categories that describe our focus on Caring for the Environment, Supporting our Neighborhoods and Valuing our Associates.”

             Applebee's has taken corporate social responsibility to heart. The way this can be seen is through the different actions they've taken concerning the environment, animals, recycling, and energy consumption. In order to help the environment Applebee's has been involved in several recycling efforts. As of July of 2009 it had recycled almost 49 tons of paper material. This makes a big impact in helping the environment. Applebee's also works on improving the welfare of farm animals. They are concerned and tries to improve the treatment of farm animals. Applebee's also wants to reduce its energy consumption. In order to do this they have switched from regular lights to motion activated ones in their non-restaurant facilities. In their restaurants they have switched to fluorescent lighting. In order to help the community Applebee's hosts fundraisers and invest in organizations to help celebrate Christmas and other holidays. All of this actions demonstrate that Applebee's takes its social responsibility serious and does its best to provide and help the community.

Applebee's mission statement has seven core values:

The first is Integrity. Applebee's believes in having high ethical standards. The will always try to do the right thing. The second is value Excellence. Applebee's wants to provide the best service it can to its customers. In order to accomplish that it asks its workers to always be their best. The third value is Innovation. Applebee's doesn't want to always provide its customers with the same, old, boring stuff. It welcomes change and new creative ideas. It wants to always provide the best and newest products for its customers. The fourth value is Accountability. Applebee's takes the responsibility of all the actions it does. It always does what is expected for it to do. The fifth value is Inclusion. Applebee's welcomes diversity. It likes and respects the views and values of others. The sixth value is Trust. Applebee's knows that one of its key elements to succeed is to have sincere and open communications. By doing this, it will acquire the trust of others. The seventh value is Community. Applebee's does its best to make an impact in the communities and neighborhoods it serves.
http://www.applebees.com/social_responsibility.aspx

Jesse Binder- McDonalds

Fast food companies such as McDonald’s, KFC, and Burger King are playing a major role in the production, marketing,  and consumption of animal-derived food throughout the world. Companies such as McDonald’s are capable of changing how animals can be raised and processed for human consumption.  The company has worked closely with its suppliers to educate them on animal safety and improved handling procedures. McDonalds has also developed an Animal Welfare Auditing Program for its suppliers. Nevertheless, Animal rights organizations are attacking fast food companies by forming boycotts and launching billboard advertising that attacks corporate officials. For example, PETA(People for the Ethical Treatment of Animals) says on their website that McDonalds' suppliers use an outdated method to kill chickens the result in extreme suffering.   Fast food companies have been portrayed by animal activists as callous, profit-seeking entities that are only concerned with the bottom line. The fast food industry has sought to respond to concerns from animal rights groups but their efforts haven't really changed the way customers and the public view the problem of animal welfare and food production.   As discussed below, McDonalds has identified animal safety as one of its corporate values, but the public at large view doesn't seem convinced.      

McDonalds is a company that has taken corporate social responsibility to heart.
They have launched a multi-prong strategy to ensure that their customers, communities, employees, and suppliers know they mean business:
1)They ensure that their supply chain contributes positively to the safety, quality, and availability of their final products.  McDonalds works closely with direct suppliers to improve their communities, environment, their own supplier, and customers. McDonalds is advocating sustainability to their own suppliers and indirect suppliers.
2)McDonalds is committed to improve the nutrition and well being of their customers.    McDonalds is one of the first restaurants to provide customers with nutritional  information about the products that they offer.
3)McDonalds has also been environmentally responsible.  They have established the Global Environmental Commitment,  a strategy that has helped to eliminate 300 million pounds of product packaging by redesigning and reducing materials.  They believe when we consume less energy, produce less waste, and minimize resources used by our suppliers, we use less and spend less.
4)McDonald’s is committed to its employees. McDonalds complies with employment laws where they operate, and will not employ underage children or forced laborers. McDonalds believes in a talented workforce that will deliver food responsibly and will satisfy their customers.


McDonald’s mission statement consists of seven core values:

1)Customers are our top priority:  the customer experience is at the core of what we do. Superior service, high quality food and maintaining a clean  and appealing facility at a great value is critical to their success.   
2)We are committed to our people. McDonalds believes that developing a team of well-trained employees with a diverse background that respect one another produces a successful working environment.   
3)Maintain a "three-legged stool": McDonalds core is maintaining a strong network of suppliers, owner-operators and employees.  
4)Operate an Ethical Business:   which means they hold their employees to high standards of fairness, honesty, integrity, and responsibility.
5)Support their Communities: Charities like the Ronald McDonald House are trying to make the world a better place.
6)Grow Profitably: Strong and steady profit growth is essential for its shareholders and the success of the business model.   
7)Continuous Improvement: McDonalds is always seeking ways to improve. Innovation is critical to confront and profitably respond to changing customer requirements and employee demands.

http://www.mcdonalds.com/us/en/home.html

Teen Resorts- Kyle Davis

Recently, hotels and resorts have been making the increased effort to accomodate to the teenage guests. Usually hotels focus the adult comfort and will also do things for kids but teenagers are usually neglected by resorts. Hotels are creating various things like activities, lounges and event to keep teenagers entertained and happy. The problem with making a good teenage experience is the consumer. Teenagers needs and demands are not only unpredictable but hard to accommodate. The Atlantis resort did a focus group with 50 teenagers and they said that they wanted beds in the teenage club similar to those seen in more adult clubs. Beds in a teen club is way too inappropriate. Teenagers want to be adults but are still children and resorts approach how they want to appeal to teenagers differently.

Bored teenagers have a tendency to wander and loiter in areas such as the lobby or hallways formulating ideas for entertainment that may disturb the guests. Children in families eventually grow up and the DIsney resort that used to be an amazing time may not work when taking a 14 and 16 year old on vacation. Teenagers do not want to feel forced to be a child and would prefer a more independent and adult like experience during their vacations. Parents can also appreciate a break from their children and the goal of a vacation is to be happy and relaxed. Children usually do not have a large voice in the decision of a vacation but teenagers, being as demanding and picky as they are, have a more influential voice and they will prefer the resort with teen activities. This is smart for attracting families of many demographic to accommodate to many demographics. A resort that accommodates the entire family is a big factor that may cause a family to choose one hotel over the other.

http://online.wsj.com/article/SB10001424052748703940904575395011201052130.html?mod=relevancy

Hotel Brands Giving Away Their Land (Mohammed Sadeq)

     Well known hotel brands, such as InterContinental Hotels Group, are looking to divest themselves of what they have left of real estate. Such companies have transformed, since the 1980s, from landowners and operates to mainly just operating and managing properties owned by real estate investors. As this seems to be a more favorable way of running their business, managing not owning, many hotels are likely to change hands these next years depends on which real estate investors buy the properties. Now that the hotel industry is slowly but surely regaining its former strength, corporations believe its a smart time to get rid of the burdens they have remaining at a fair price. From 2009-2011 hotel ooccupancy rates are expected to rise 4.1 percentage points and revenue per room is expected to rise 10.8%.

     This change from owning to managing will now define more clearly the roles of hotel companies in the market. These companies will no longer need to worry about the real estate side of their operations and will mainly focus on service and presentation. This could lower their operating costs, therefore, lowering prices to consumers. Hotel company will be paid by real estate owners and investors to operate their properties and so the hotel company's risk of losses in another recession are greatly minimized. Real estate companies will also benefit because most properties that the large corporations have to sell are extremely significant one with extreme potential for growth in the coming years.


http://online.wsj.com/article/SB10001424052748703720004575478214068058370.html?KEYWORDS=hotels+poised+to+shed+properties

Irma Mendez (Hotels)

        In order to stay on top constant changes are necessary. This is true for the leisure industry. Marriott seems to have found a way to attract its customers. It has created a “Refreshing Business lobby.” It has placed it in the unlikeliest places, the Grand Central Station. The Vice President of Courtyard by Marriott calls it, “. . .the most radical reinvention we've had in the 20-plus years we've been in business." The reinvention is a bistro that provides several snacks and some foods. There is also wireless internet, a touch screen that serves as a virtual concierge, and communal tables. Before coming up with this idea, a lot of customer research was done. Also a version of it was created in San Francisco and customers were polled about it. Finally the final product was created and introduced to the public. The introduction to this new lobby doesn't stop there. A smaller version of it will be presented to several airports in Denver, Atlanta, and Chicago.


       As the Vice President of Courtyard by Marriott put it, "We wanted to get people's attention." In order to keep business going she knew that they had to come up with an idea that grabbed people's attentions. The reinvention they came up with is definitely a different one and has gotten people's attentions. Other competing hotels will have to come up with another idea to keep up with the one Marriott came up with. The services Marriott is providing will please its customers, thus possibly making Marriott's popularity grow. This might make the leisure industry grow because it will let other hotels and leisure services know that they can do things like this to attract customers.

       I think that if other hotels look at what Marriott is doing and continue to come up with new ideas then the industry will definitely grow. Constant changes to please the customers is what is needed to keep the business going. In order to come up with this new innovations the leisure industry has to observe its customers and see what will make their lives better. If this trend of new ideas grows, then the leisure industry has the potential to grow and make people's lives easier and more comfortable. http://online.wsj.com/article/SB10001424052748704358904575477972834044224.html?mod=ITP_newyork_5

Jesse Binder (Restaurants)

Like many industries, the Restaurants have felt the impact of the recession.  The restaurant industry saw a downturn this past year, with total restaurant traffic declining 3% in the year ending May, 2010, according to market –research firm NPD Group Inc.  Restaurants are seeking new ways to retain their loyal customers and attract new ones.  They are dangling free ships, and a shot of winning pricey items.  Restaurants such as Outback Steakhouse, Red Lobster, and Starbucks are using a points and gift program to not only hang onto their loyal customers but also get them to come more often and spend some bucks.  Outback Steakhouse customers can earn points to win Tim McGraw memorabilia such as CDs, the country singer’s namesake cologne and footballs or cowboy hats autographed by him.  Red Lobster is seeking to enhance customer satisfaction by creating the “Fresh Catch Club,” which provides the customer with a chance to win a trip to coastal cities in New England and the Florida Keys.   

These “rewards” programs do come at a cost.    The Strategic Resource Group estimates that it costs restaurants typically 1% of its sales to launch a rewards program.   Thereafter, the discounting associated with a “rewards” program can cost another 5% to 15% of sales.   The return on the investment in a “rewards” program is roughly 2% of sales.   

I believe if the restaurants pursue more aggressive sales tactics such as rewards programs and free gifts, they will be able to retain a greater number of customers and get them to feast more frequently.   Perhaps my opinion is best reinforced by a Panera Bread customer, Daneen Feeney,  a 43-year old Chicagoan who stated that she would return to a favorite restaurant more often if it had a rewards program. “If a restaurant can offer a little extra something it would show they appreciate your business,” she said.     Even though there is an upfront cost associated with the reward programs, I believe the return on investment justifies the cost.   At the very least, a crowded restaurant is contagious.   Customers like to see they AREN’T the only ones eating at the restaurant.        

http://online.wsj.com/article/SB10001424052748704271804575405363647189110.html?KEYWORDS=restaurants