Thursday, September 30, 2010

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

Wednesday, September 29, 2010

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.




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.

Thursday, September 23, 2010

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/

Wednesday, September 22, 2010

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



Thursday, September 16, 2010

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

Wednesday, September 15, 2010

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

Thursday, September 9, 2010

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

Wednesday, September 8, 2010

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

Friday, September 3, 2010

Airport Hotel Popularity-Kyle Davis

Reviews taken from Hotel.com have shown that the ratings on airport accommodations have been on the rise. The obvious convenience of staying in a hotel right next to an airport before a flight or in response to cancellations has always been noted but the comfort for regular guest has usually been overlooked. On average people save 42% staying at airport hotels compared to hotels downtown.The increased rating of these hotels has helped these business of these hotels outside of travelers. People coming to visit cities as tourist, or other reasons, are staying at airport accommodations increasing profit for them. 

The convenience for travel, the reviews and the cheaper price has boosted the market and appeal of airport hotels and has made them serious competitors with other hotels that may be around the same city. Airport hotels are usually more chain based hotels that are familiar with the average traveler. Familiarity makes the traveler more comfortable and reassured as to what they are purchasing A consumer is more likely to trust a nation wide hotel like the Hilton as opposed to a bed and breakfast located in the city.

Thursday, September 2, 2010

Burger King Buy Out - Mohammed

      As the results of the economic recession continue to unfold till this very day, Burger King has been the latest to announce their troubles. Burger King Holdings Inc. is looking to sell its shares in the world's second largest food chain company after continued losses in this past fiscal year. The company's shares closed at $16.45 on Tuesday versus its year high of $22.06. With 12,000 stores in 75 different countries, Burger King's problems are global problems as many people face loses with their stakes in the company.
      Talks of the buyout have led to a drop in analysts estimates in its market value. So far Burger King's global sales have dropped 2.3% and in the US and Canada they have dropped 3.9% since last year. One of the prospective buyers is New York-based investment fund 3G Capita, but it is uncertain yet if anything will be final. If the world's second largest food chain company can't hold itself imagine what this means for the rest of the industry. With the restaurant industry highly dependent on people's standard of living and how much they like to treat themselves the increasing unemployment rate and fragile global economy that leads people to more conservative spending ways many businesses are at stake.

Jesse Binder


Over the past two years, the hotel industry has been hit during the recession as business travel declined significantly and budget conscious customers seeking lower hotel prices.  There is one exception that is stabilizing the industry: extended stay hotels.  In 2009, even though industry demand fell 6%, the demand for extended-stay hotel rooms rose 2.6%(according to STR).  In July, 2010, demand rose 14.1% and the occupancy rate increased 8.9%. Extended stay hotels are defined as hotels that offer lower prices if the guest stays for a longer period of time (they must stay for at least four consecutive nights). Many of the travelers may stay for as long as weeks if not months. This cannot only attract budget conscious business travelers but also the leisure customer who might be moving to an area for an extended period. Some of these extended stay hotel chains are offering free Internet access and free personal laundry. In this part of the business occupancy rose 8.9% in July from a year earlier and demand was up 14.1%. Extended- stay is defined as at least four consecutive nights at one property.

The success of the Extended-Stay concept suggests that leisure travelers want cheap room rates and are willing to stay for a longer period of time.  As also demonstrated by the growth of the no-frills hotel market in New York City, customers increasingly want low room rates and are willing to seek out the best deals.   Traditional hotels have been losing more customers due to their expensive room rates.  Extended-stay hotels though are able to attract business customers who are looking for a quality hotel that values customer satisfaction. They can give incentives by offering a long-term, lower rate to a guest. The combination of the growth in the no-frills and extended stay markets will likely put more pressure on hotel prices and force the traditional hotel companies to offer more value to their customer. This could mean lower rates, more free services, or possibly more flexible pricing policies that are similar to the extended stay concept.  

Irma Mendez

An important event occurring in the restaurant industry is that this fall the openings of new restaurants seem to have a specific trend. Italian cuisine seems to be the biggest, followed by American food. Also television chefs are opening new restaurants. Hotels are also adding big restaurants. This event will impact the restaurant industry by providing consumers with more options of places that sell similar foods. It will also allow the restaurant industry to grow by having more restaurants to provide food, which means that there will be more competition among the restaurants. Food especially Italian food will be more accessible to people.


A way that globalization has affected the restaurant industry is that it has allowed food from other places to be accessible to people here in the U.S. Also like the trend shows food that is not from here is the one that's growing the most. Globalization has allowed competition to increase because now American restaurants not only have to compete with each other, but also with foreign restaurants that are becoming more popular. In this aspect globalization is a good thing because it provides consumers with a variety of options that they might enjoy more.