Barrows_7_edition.qxd 12/6/07 4:41 PM Page i INTRODUCTION TO THE Hospitality Industry SEVENTH EDITION Clayton W Barrows Tom Powers Professor Professor Emeritus Department of Hospitality Management School of Hospitality and Tourism Management University of New Hampshire University of Guelph John Wiley & Sons, Inc Barrows_7_edition.qxd 12/6/07 4:41 PM Page ii This book is printed on acid-free paper Copyright © 2009 by John Wiley & Sons, Inc All rights reserved Published by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978646-8600, or on the Web at www.copyright.com Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008, or online at http://www.wiley.com/go/permissions Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose No warranty may be created or extended by sales representatives or written sales materials The advice and strategies contained herein may not be suitable for your situation You should consult with a professional where appropriate Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages For general information on our other products and services, or technical support, please contact our Customer Care Department within the United States at 800-762-2974, outside the United States at 317572-3993 or fax 317-572-4002 Wiley also publishes its books in a variety of electronic formats Some content that appears in print may not be available in electronic books For more information about Wiley products, visit our Web site at http://www.wiley.com Library of Congress Cataloging-in-Publication Data: Barrows, Clayton W Introduction to the hospitality industry / Clayton W Barrows, Tom Powers – 7th ed p cm Includes index In earlier ed of work, Tom Powers name was listed first on t.p ISBN 978-0-471-78276-6 (cloth) Hospitality industry I Powers, Thomas F II Powers, Thomas F Introduction to the hospitality industry III Title TX911.P62 2008 338.4'791 dc22 2007021307 Printed in the United States of America 10 ftoc.qxd 12/10/07 6:52 PM Page iii CONTENTS Preface xiv PART ONE: PERSPECTIVES ON CAREERS IN HOSPITALITY CHAPTER 1: THE HOSPITALITY INDUSTRY AND YOU What Is Hospitality Management? The Manager’s Role in the Hospitality Industry CASE HISTORY 1.1: A Former Student’s Unexpected Change Why Study in a Hospitality Management Program? Employment Opportunities Planning a Career The Meaning of Work 10 Employment as an Important Part of Your Education Profiting from Work Experience ■ Learning Strategies for Work Experience 11 Getting a Job Getting in the Door ■ Learning on the Job ■ Other Ways of Profiting from a Job 15 INDUSTRY PRACTICE NOTE 1.1: An Employer’s View of Job Placement—Hyatt 18 Employment at Graduation 18 GLOBAL HOSPITALITY NOTE 1.1: Career Opportunities Overseas 20 Goals and Objectives: The Strategy of Job Placement 20 The Outlook for Hospitality The Effects of September 11, 2001 ■ Polarization in Hospitality Service Organizations ■ Accelerating Competition ■ Service Is the Difference ■ Value Consciousness ■ Technology ■ Empowerment ■ Diversity ■ Concern with Security ■ Concern with Food Safety and Sanitation ■ Globalization 24 Summary 28 29 29 30 31 Key Words and Concepts Review Questions Internet Exercises Notes ftoc.qxd 12/10/07 iv 6:52 PM Page iv Contents CHAPTER 2: FORCES AFFECTING GROWTH HOSPITALITY INDUSTRY AND CHANGE IN THE 33 Managing Change 34 Demand The Changing Age Composition of Our Population 34 INDUSTRY PRACTICE NOTE 2.1: Demographics in Practice 37 Diversity and Cultural Change GLOBAL HOSPITALITY NOTE 2.1: As North America Ages, Some Parts of the World Are Getting Younger 41 INDUSTRY PRACTICE NOTE 2.2: Advocacy for the Advancement of Women in Food Service 46 Supply Land and Its Produce 48 INDUSTRY PRACTICE NOTE 2.3: Is the Middle Class Shrinking? 49 Labor Workforce Diversity 53 The Impact of Labor Scarcity 55 Summary 56 57 57 58 60 Key Words and Concepts Review Questions Internet Exercises Notes PART TWO: FOOD SERVICE 61 CHAPTER 3: THE RESTAURANT BUSINESS 63 The Varied Field of Food Service The Outlook for Food Service 64 The Restaurant Business 67 The Dining Market and the Eating Market Dining Well ■ The Eating Market and Its Dynamics 68 Contemporary Popular-Priced Restaurants Quick-Service Restaurants ■ Midscale Restaurants ■ Casual Restaurants 76 ftoc.qxd 12/10/07 6:52 PM Page v Contents CASE HISTORY 3.1: Quark’s Restaurant Serves Earthlings, Too v 91 High-Check-Average Restaurants GLOBAL HOSPITALITY NOTE 3.1: Culinary Preparation 93 Restaurants as Part of a Larger Business Restaurants in Retail Stores ■ Restaurants in Shopping Malls 94 Summary 95 96 97 97 98 Key Words and Concepts Review Questions Internet Exercises Notes CHAPTER 4: RESTAURANT OPERATIONS 101 Restaurant Operations The Front of the House ■ The Back of the House ■ The “Office” 102 INDUSTRY PRACTICE NOTE 4.1: Research Chefs Association 110 General Management Making a Profit in Food Service Operations Increasing Sales ■ Reducing Costs Keeping the Score in Operations: Accounting Statements and Operating Ratios Cost of Sales ■ Controllable Expenses ■ Capital Costs 115 117 Life in the Restaurant Business Salary Levels 119 Summary 122 122 123 123 125 Key Words and Concepts Review Questions Internet Exercises Notes CHAPTER 5: RESTAURANT INDUSTRY ORGANIZATION: CHAIN, INDEPENDENT, OR FRANCHISE? Chain Restaurant Systems Marketing and Brand Recognition ■ Site Selection Expertise ■ Access to Capital ■ Purchasing Economies ■ Control and Information Systems ■ New Product Development ■ Human-Resource Program Development ■ Chains’ Market Share 127 128 ftoc.qxd 12/10/07 vi 6:52 PM Page vi Contents Independent Restaurants Operating Advantages ■ Marketing and Brand Recognition ■ Site Selection ■ Access to Capital 136 INDUSTRY PRACTICE NOTE 5.1: Working with the SBA 139 INDUSTRY PRACTICE NOTE 5.2: Why Go Public? 140 Purchasing Economies ■ Control and Information Systems ■ Human Resources ■ The Independent’s Extra: Flexibility ■ The Independent’s Imperative: Differentiation ■ Between Independent and Chain Franchised Restaurants The New Franchisee ■ Continuing Franchise Services 144 INDUSTRY PRACTICE NOTE 5.3: Interested in Becoming a Franchisee? 148 The Franchisee’s View ■ The Franchisor’s View INDUSTRY PRACTICE NOTE 5.4: Rosenberg International Center of Franchising 154 Franchisor–Franchisee Relations ■ Franchising: A Middle Way Summary 155 156 156 157 159 Key Words and Concepts Review Questions Internet Exercises Notes CHAPTER 6: COMPETITIVE FORCES FOOD SERVICE 161 Competitive Conditions in Food Service 162 The Marketing Mix Product 164 CASE HISTORY 6.1: Finding the Proper Marketing Mix—Shakey’s Pizza 165 IN Price ■ Place—and Places ■ Promotion INDUSTRY PRACTICE NOTE 6.1: The Wealthiest Consumers 175 Competition with Other Industries Convenience Stores ■ Supermarkets ■ The Home as Competition 177 Summary 182 183 184 184 186 Key Words and Concepts Review Questions Internet Exercises Notes ftoc.qxd 12/10/07 6:52 PM Page vii Contents CHAPTER 7: ON-SITE FOOD SERVICE vii 189 Comparing On-Site and Commercial Food Services 190 GLOBAL HOSPITALITY NOTE 7.1: International Perspectives 193 Self-Operated Facilities 193 Managed-Services Companies Pros and Cons of Managed Services 194 Business and Industry Food Service 196 INDUSTRY PRACTICE NOTE 7.1: Measuring Guest Participation 199 College and University Food Service College Students as Customers 200 Health Care Food Service The Dietetic Professional ■ The Dietetic Technician ■ The Dietary Manager ■ Dietary Department Organization ■ Trends in Health Care Food Service 204 School and Community Food Service The School Food Service Model ■ Contract Companies in School Food Service ■ Trends in School Food Service ■ Service Programs for the Aging ■ Community-Based Services ■ Senior Living Centers and Communities 210 Other Segments Recreation ■ Private Clubs ■ Transportation 221 Vending 224 Summary 227 228 228 228 231 Key Words and Concepts Review Questions Internet Exercises Notes CHAPTER 8: ISSUES FACING FOOD SERVICE 233 Consumer Concerns Health and Wellness ■ Junk Food and a Hectic Pace ■ Nutritional Labeling 234 INDUSTRY PRACTICE NOTE 8.1: Defining Health Claims 241 Food Safety and Sanitation ■ Alcohol and Dining ftoc.qxd 12/10/07 viii 6:52 PM Page viii Contents Food Service and the Environment Thinking About Garbage from Dump to Waste Stream ■ Managing the Waste Stream 245 Technology Enhancing Customer Service ■ Technology in the Back of the House 253 INDUSTRY PRACTICE NOTE 8.2: ESP Systems 256 Technology, the Internet, and Food Service Marketing ■ Technology and Management Summary Key Words and Concepts Review Questions Internet Exercises Notes 259 260 260 261 263 PART THREE: LODGING 265 CHAPTER 9: LODGING: MEETING GUEST NEEDS 267 The Evolution of Lodging 268 The History of Lodging ■ The Evolution of the Motel ■ The Motor Hotel Classifications of Hotel Properties 271 INDUSTRY PRACTICE NOTE 9.1: Europe: A Continent of Lodging Distinctiveness 272 Hotels Classified by Price ■ Hotels Classified by Function ■ Hotels Classified by Location ■ Hotels Classified by Market Segment ■ Other Hotel Classifications INDUSTRY PRACTICE NOTE 9.2: Trends in Spa Operations 281 Types of Travelers Business Travelers ■ Other Segments ■ International Travelers 285 Anticipating Guest Needs in Providing Hospitality Service 287 INDUSTRY PRACTICE NOTE 9.3: Creativity Is Evident in Hotel Properties 288 INDUSTRY PRACTICE NOTE 9.4: The Hotel of the “Not So Distant” Future 289 Service, Service, Service 290 INDUSTRY PRACTICE NOTE 9.5: Hotel Rating Services 292 Employees as the Internal Customers ftoc.qxd 12/10/07 6:52 PM Page ix Contents Summary Key Words and Concepts Review Questions Internet Exercises Notes CHAPTER 10: HOTEL AND LODGING OPERATIONS ix 296 298 298 299 300 303 Major Functional Departments 304 The Rooms Side of the House The Front Office ■ Automation of the Front Office ■ Reservations and Yield Management ■ Housekeeping ■ Telecommunications and Call Accounting Systems 307 INDUSTRY PRACTICE NOTE 10.1: Housekeeping 316 Uniformed Services Staff INDUSTRY PRACTICE NOTE 10.2: The Concierge 318 Security Hotel Food and Beverage Operations Banquets ■ Food Production ■ Sanitation and Utility ■ Leased Restaurants 321 Staff and Support Departments Sales and Marketing 325 INDUSTRY PRACTICE NOTE 10.3: Pros and Cons of Outsourcing Food and Beverage Operations 326 Accounting ■ Human Resources ■ Engineering Income and Expense Patterns and Control The Uniform System of Accounts 329 Entry Ports and Careers Front Office ■ Accounting ■ Sales and Marketing ■ Food and Beverage ■ Owning Your Own Hotel 333 Summary 336 337 337 337 339 Key Words and Concepts Review Questions Internet Exercises Notes ch15_7e.qxd 12/5/07 3:01 PM Page 525 Summary 525 Notes William H Davidow and Bro Uttal, Total Customer Service: The Ultimate Weapon (New York: Harper & Row, 1989), p 40 Christopher H Lovelock, Services Marketing (Englewood Cliffs, NJ: Prentice-Hall, 2001) This discussion draws on G Lynn Shostock, “Planning the Service Encounter,” in John A Czepiel, Michael R Solomon, and Carol F Surprenant, eds., The Service Encounter (Lexington, MA: Lexington Books, 1985), p 248 Shostock’s terminology (“remote,” “indirect,” and “direct”) is slightly different John Naisbitt, Megatrends: Ten New Directions Transforming Our Lives (New York: Warner Books, 1982) Webster’s Unabridged Dictionary, 2nd ed (New York: Random House, 1999) Shostock, “Planning the Service Encounter,” p 253 Peter G Klaus, “Quality Epiphenomenon: The Conceptual Understanding of Quality in Face-to-Face Service Encounters,” in Czepiel, Solomon, and Surprenant, eds., The Service Encounter Theodore Leavitt, “Production Line Approach to Service,” Harvard Business Review, September–October 1972, reprinted in Service Management (Cambridge, MA: Harvard University, n.d.), pp 20–31 Ibid., pp 22–25 10 Karthik Namasivayam and Timothy Hinkin, “The Customer’s Role in the Service Encounter,” Cornell Hotel and Restaurant Administration Quarterly, June 2003, p 26 11 Klaus, “Quality Epiphenomenon,” p 21 12 Interview with James Brown, former senior vice president, Four Seasons Hotels 13 Cathy Enz and Judy Siguaw, “Best Practices in Service Quality,” Cornell Hotel and Restaurant Administration Quarterly, October 2000, p 24 14 This section draws extensively on Davidow and Uttal, Total Customer Service 15 For an extended discussion of market segmentation for the hospitality industry, see Cathy Hsu and Thomas F Powers, Marketing Hospitality, 3rd ed (New York: John Wiley & Sons, 2001), especially Chapter 16 Davidow and Uttal, Total Customer Service, p 70 Emphasis added 17 Stephen Robbins and Nancy Langton, “Organizational Behaviour,” Prentice-Hall Canada, 1999, p 615 18 Davidow and Uttal, Total Customer Service 19 Karl Albrecht and Ron Zemke, Service America! (Homewood, IL: Dow Jones–Irwin, 1985), p 96 20 Davidow and Uttal, Total Customer Service, p 106 21 Ibid index_7e.qxd 12/5/07 3:13 PM Page 526 INDEX A AAA See American Automobile Association AC See Atlantic City Accounting, 334 role, 327–328 statements, usage, 118–121 Accounts, uniform system, 331–332 Activities in daily living (ADLs), 215 Activities/interests/opinions, patterns, 47 Administration on Aging (AOA), 216 Administrative and general (A&G), 330 ADR See Average daily rate Adventure Island, theme park, 458 Advertising See Internet; Mass media; Television advertising communication, payment, 405 impact See Consumer behavior media, characteristics, 176f message, 128–129 usage, 174 African Americans, U.S population, 42 Age composition, change, 35–40 Aging, service programs, 215–216 Airline food service (in-flight food service), 223 change, 224 Airline industry, 432–433 problems, 422 Airline partnerships, 433 Airlines Reporting Corporation, travel agency estimation, 434–435 Airline travel development, 432–433 increase, 421 trends, 430–432 Airport hotels, 275 Airspace, shutdown results, 422 Alcohol, impact, 244–245 526 Alimentation Couche-Tard, convenience stores, 178 All-suite hotels, 281–282 Alterra Healthcare Corp., 220 Amenities, 389–392 assessment, 391–392 reduction, 437–438 Amenity creep, 349 American Automobile Association (AAA), 291 lodging properties, rating, 294–295 American Gaming Association, casino study, 465 America Online (AOL), usage, 174 Amusement parks, 455–456 AOA See Administration on Aging Application, status (checking), 16 Aquariums, attractions, 486 ARAMARK (managed-services company), 221 conference center management, 483 employee annual report, 519 going private, 140 hospitality conglomerate, patient meal plan, modification, 208 Arrivals and departures, volume measurement, 427 Arthur Treacher’s Fish and Chips, bankruptcy, 152 Asset management, 368–369 Asset managers, 368–369 Assisted living, 217 Association market segment, 285 Atlantic City (AC) changes, 476–477 economic impact, 475 gambling, 472–475 rooms, comparison See Las Vegas skyline, examination, 474 success, planning (impact), 474 turnaround, 472, 474 Atria Retirement and Assisted Living, 220 Attractions See Temporary attractions Auditing process, 308–309 Audit process, schematic view, 309f Automated systems, availability (increase), 315–316 Available seat miles, growth, 430 Average daily rate (ADR), 313 Average rate, 330 B Baby boomer aging, 82 decrease, 38–39 impact, 36–37 movement, 71 term, application, 35 Baby bust, 35–36 Back of the house education, 15 operation, 106–109 responsibilities, 106–108 roles, 108–109 tasks, 107–108 technology, usage, 255–258 Banquets, 322 Barshop, Sam, 361 Baseball stadiums, urban entertainment centers, 481 Bed-and-breakfast inns (B&Bs), 282–283 Bell staff, 317 Bennigan’s, casual dining, 66 Beverage limitation, 385 success, 334–335 Beverage/bar cost, 118 Beverage operations, outsourcing (pros/cons), 326 B&I See Business and industry Biological needs, restaurant service, 68–69 Birth dearth generation, 36 Blue Man Group, popularity, 469 index_7e.qxd 12/5/07 3:13 PM Page 527 Index Bonuses, usage, 122 Boston Market, takeout-eat-in operation, 87 Boutique hotels, 283–284 Brand franchising, impact, 392 loyalty, concept, 407 recognition See Independent restaurants relationship See Marketing Branding See Co-branding consideration, 169–170 Brand name expense, 393–394 restaurants, 386–387 specialty restaurant format, advantages, 198 usage, 202 Brew-pubs, 89 Buffets See Commercial cafeterias/buffets Buffet-style restaurants, 86 Bundling See Food Bureaucracy, restraint, 519 Bureau of Labor Statistics (BLS), forecast See Labor Busch Gardens, theme park, 458, 459 Business administration education, focus, management preparation, Business and industry (B&I) food service, 196–200 growth, NRA indication, 197 Business centers, usage, 390 Business format franchising, 144 Business travel, 418–419 Business travelers, 285 comparison, 286f Bus trade, impact, 478 C Cadillac Ranch, 493 Cafeterias See Commercial cafeterias/buffets Call accounting systems, 315–317 Canada, economies (performance), 428 Cancellation restrictions, offering, 398 Capital access, 128, 132–133 See also Independent restaurants costs, 119–121 See also Fixed charges; Properties markets, role (increase), 378 Capital intensive business See Hotels Capital structure See Hotels Careers, 333–336 opportunities See Overseas career opportunities planning, 10–11 Carnaval de Quebec, temporary attraction, 488 Carrying capacity, increase, 439–440 Cash control, 104 Cash deposits, preparation, 115 Casino hotels, 278–279 Casinos, 456 See also Las Vegas business, 478–479 gambling environment, uniqueness, 465 hosts, function, 479–480 markets, 478–479 groupings, 478 staffing, 479–480 tourist attraction, 464–480 Casual dining, 66 guest satisfaction/service requirements, 103 Casual restaurants, 87–92 Casual tableservice operations, 82 Casual upscale dining, 71–73 concepts, 72 guest satisfaction/service requirements, 103 Casual upscale restaurants, contrast See Quick-service restaurant Catering industry, employment opportunities, C corporations (C corps), 358 CCRCs See Continuing-care retirement communities CCTV See Closed-circuit television cameras Cellular telephones, usage, 316–317 Cemetery Tours (New Orleans), 492 Cendant Hotel Group, hotel acquisition, 360 527 Center for Science in the Public Interest (CSPI), 241–242 Central processing kitchen (CPK), 209 Central Reservation Office (CRO) reservations, 402–403 Central reservation system (CRS), usage, 394, 402 Chain organizations, management company service, 367–368 Chain restaurants advantages, 137–138 consideration, 127 market share, 135–136 possibility, 143 staffing requirements, 54t strengths, 128 systems, 128–136 Chain-scale construction timeline, 342f Change, management, 34 Channels of distribution See Distribution Chart House, casual upscale dining, 71 Charting activities, 14–15 Check averages, operating statistics, 119 Check control, 104 Check-out screen, sample, 311f Cheesecake Factory, casual upscale dining, 71 Chi Chi’s, concept (problem), 167–168 Chili’s, improvement, 167–168 Choice Hotels International, ownership See Franchises Cities national convention market, bidding problems, 482–483 restoration/revitalization, 483–484 waterfront redevelopment projects, 483 City ledger, usage, 328 Clients, guests (distinction), 192 Clinical dietitians, 204 Closed-circuit television cameras (CCTV), 319 Closing, procedures, 115 See also Opening and closing procedures index_7e.qxd 12/5/07 528 3:13 PM Page 528 Index ClubCorp, 222 Co-branding, 150–151 Code of Hammurabi, 268 Code sharing, usage, 432–433 College and university food service, 200–202 College students brand consciousness, 202 customers, 202–204 nontraditional status, 203 Commercial cafeterias/buffets, 85–86 Commercial food services, comparison See On-site food service Commercial hotels, 274–275 Commercial mortgage-backed securities (CMBSs), 355 relationship See Debt investments Common carrier, 420–421 travel, growth component, 429–430 Community-based services, 216–217 Community food service, 210–221 Competition See Home; Industries conditions, 378–381 See also Lodging increase, 25–26, 162–163 relationship See Securitization Competitive forces, 161 Internet exercises, 184–186 review questions, 184 Competitive pricing, impact, 403 Complimentary services (comps), 478 approval, 480 Composting, 248, 251 CompuServe, usage, 174 Concept adoption, 169–170 change, necessity, 167–168 extension, 168–169 Concierge impact, 389 usage, 318 Condo-hotels, mixed-use developments, 353 Conduit lenders, 355 Congregate meals, 217 Consumer behavior, advertising (impact), 239–240 Consumer Federation of America (CFA), social change (influence), 237 Consumerism, 237 Consumers concerns, 234–245 wealth, 175 Continuing-care retirement communities (CCRCs), 219 Contract companies career opportunities, 214 franchisee status, 173 Contractors See Food service Control and information systems, 128, 133 See also Independent restaurants Controllable expenses, 118–119 Convenience stores, competition, 178–180 Convention hotels, 274 Corporate market segment, 285 Cost control dimension, 107 procedures, 141 techniques, 117f Cost of sales, 118 Cost reduction, 117–118 Country music, popularity (increase), 461–462 Couponing, 171 Coupons, usage, 177 Covers, operating statistic, 119 CPK See Central processing kitchen Creativity, opportunities, 20 Credit card control, 104 CRO See Central Reservation Office Crowding, 437–440 out, impact, 438–439 problems, 438 CRS See Central reservation system CSPI See Center for Science in the Public Interest Culinary preparation, global hospitality note, 93 Culinary Science training, 110 Culinology, 111 Customer dissatisfaction, 502 expectations, 504–505 service, enhancement, 254–255 D Daily routine, 113–115 Databases See Frequency marketing/databases Dealers, alertness, 480 Debt financing, sources, 356–357 Debt investments, CMBSs (relationship), 355–356 Defects See Zero defects Delivery, 74–76 sales, growth, 66 specialization, 75–76 Demand, 34–48 customer translation, 34 Demographics importance, 69 practice, 37 study, 34–35 travel, relationship, 418–420 Depreciation, 332 Destinations, 449 Internet exercises, 494–497 pattern, 267 relationships See Motives resorts, 278 See also Nondestination resorts review questions, 494 Developers favorites See Hotels segmentation, usage, 365–367 Diet mixed signals, 234–235 schizophrenia, 237 Dietary department functional organization, 207f organization, 206–208 Dietetic manager, 206 Dietetic professional, 204–205 Dietetic technician, 205–206 Dietitians See Clinical dietitians; Registered dietitians status, 204–205 Dining, quality, 69–73 Dining market, 68–76 Dining-out behavior, 73 Disabled people, employment, 108 Dishwashing, unskilled work, 107–108 Distribution achievement, 172 reference, 81 index_7e.qxd 12/5/07 3:13 PM Page 529 Index Distribution channels, 400–404 See also Internet dynamics, change, 400 emergence, 433–436 growth, 402 Diversity See U.S population; Workforce components, 53–54 cultural change, relationship, 40–48 importance, 27 increase, 40–41 Dollywood (Pigeon Forge), 461 Domestic air seat passenger miles, 430f Downsized units, introduction, 168–169 Downstairs guest, 383 Downstairs market, characteristic, 383–384 Downstairs services See Full-service hotels Downtown convention centers, business/pleasure mix, 481 Downtown hotels, 275 Drive-through, 74 sales, growth, 66 Drucker, Peter, business considerations, 15 E Eatertainment restaurants (theme restaurants), 89–92 economics, 91 experience, 92 Eating market, 68–76 dynamics, 73–76 Echo boomers (Generation Y), 38 Ecotourism, 278 Education employment, impact, 11–15 importance, 11 Educational Foundation of the International Franchise Association, 144 Electronic-mechanical transactions, 506 Emeritus Assisted Living, 220 Employees awards, 520–521 benefits, 119 internal customers, 296 participation, planning, 521 product equivalence, 521f status, 520–521 selection, 520 training, 520 turnover, 55–56 See also Food service Employer, evaluation, 22 Employers of choice, 296 Employment See Post-graduation employment; Theme parks impact See Education prospects, 51 Empowerment, 512–515 increase, 27 Empty nesters, impact, 45 Encroachment, 366–367 problems, 366–367 Engineering, role, 329 Entrepreneurial opportunities, 369 Entry ports, 333–336 Environment, discussion (difficulty), 246 Epcot Center, 459 Equity investment joint ventures, 358 sources, 357–359 ESP Systems, 256–257 Ethnic restaurants, 89 Europe, lodging distinctiveness, 272 Excalibur, King Arthur’s Tournament, 469 Executive conference centers, 276, 278 Exercise, mixed signals, 234–235 Expedia, online travel agency, 435 Extended-stay hotels, 282 F Face-to-face service transaction, 508t Face-to-face transactions, 507 Fairs, 455–456 economic effects, 488 temporary attractions, 487–490 Family competition, change, 44–45 529 Family households, U.S Census Bureau data, 44–45 Family restaurants, 68, 83–85 chains, list, 84t menus, 84 operating format, 84–85 Fast-casual segment, 82 Feasibility study, contents (sample), 400f FelCor Lodging Trust, REIT example, 357–358 Festivals, 455–456 celebration theme, 488–489 economic effects, 488 seasonality, 487–488 temporary attractions, 487–490 Fine dining excellence, importance, 69 guest satisfaction/service requirements, 103 requirements, 69–71 restaurants, 69–70 Restaurants & Institutions study, 71 Fine dining, involvement, 66 Fine-dining restaurants, glamor, 24 Fitness facilities, 389 Fixed charges (capital costs), 330 Fixed costs, impact, 395–396 Food costs, 118 variation, 51 critical control points, 243–244 dollar, 64 hazard analysis, 243–244 items, bundling, 116 limitation, 385 operations, outsourcing (pros/cons), 326 production, 255, 323–324 control, 109 safety/sanitation, 106–107, 242–245 concern, 28 success, 334–335 supply, impact, 51 Food and beverage department, role (emphasis) See Profit Food and Drug Administration (FDA), 240 enforcement, noninvolvement See Nutrition Labeling and Education Act index_7e.qxd 12/5/07 530 3:13 PM Page 530 Index Food away from home, 64 expenditures, 65–66 purchase, 65 Foodies Kitchen, off-premise dining, 73 Food Marketing Institute, supermarket competition, 180 Food service See Business and industry food service; College and university food service; Community food service; Health care food service; School food service areas, 65t chains (expansion), PODs (usage), 173 competitive conditions, 162–164 concepts/brands, development, 198 contractors, 191 demand, impact, 47 employees industry exit, reasons, 52t turnover, 52t environment, relationship, 245–252 establishments, productivity, 77t field, variation, 64–67 issues, 233 Internet exercises, 261–263 review questions, 260 managed services company operation, 192 management, 385–386 managers, median salary (BLS data), 121–122 marketing expenditures, 131t technology/Internet, usage, 258–259 operations, profit making, 115–118 outlook, 67 promotion, Internet (usage), 174–176 reductions, 386 sales, change, 66 usage, 384–389 waste stream, contents, 248t women, advancement (advocacy), 46–47 Four Seasons, service experience, 513 Fragmented market, 378–379 Franchised restaurants, 144–155 Franchisees advantages, 151–152 disadvantages, 152 impact, 145–146 interest, industry practice note, 148–149 investment, 144–145 marketing, importance, 150 perspective, 151–152 preopening training, 146 purchasing benefits, 148–149 screening, 146 Franchises agreement, 145 characteristics, 145 brands, Choice Hotels International ownership, 401f considerations, 127 development, 145–146 fees, 393f field support, importance, 147 financing, 146 information management, usage, 147 operating/control procedures, 146–147 operations manuals, 146 national/regional sales offices, 400–401 purchasing cooperatives, 147–148 quality control, 147 services, continuation, 146–151 site selection/planning, 146 Franchising See Business format franchising attention, 155 companies, profit (loss), 153–154 fees, PKF Hospitality Research, 393 organization, owners/managers (motivation), 153 risk, 152 Franchisor-franchisee relations, 155 team approach, 394 Franchisors advantages, 152–153 advertising assistance, 150 disadvantages, 153–154 perspective, 152–154 products/concepts, introduction, 150–151 training materials, preparation, 147 French Quarter Festival (New Orleans), establishment, 488 Frequency marketing/databases, 408 Frequent-stay programs, 407 Front desks See Virtual front desks Front office, 307, 333 automation, 310–313 Front of the house, 307–309 control aspects, 104 education, 15 operation, 102–106 responsibilities, 102–103 roles, 104–105 supervision, 105–106 tasks, 104 Fuddruckers, food quality, 37 Full board plans, change, 200–201 Full-service casual restaurant, schedule, 112 Full service hotels, 273, 321 downstairs services, 517 revenue and expense items, 331t Full-service restaurants, 65 Functional task (procedural task), 508 G Gambling growth, 464–465 markets, consideration, 476–477 Games, cost, 177 Gaming convenience, impact, 466 development, 465–466 growth, 466 jurisdictions, 467f markets, 464 consideration, 476–477 revenue, ranking, 468f tourist attraction, 464–480 Gaming Regulatory Act of 1988, 465 Gap financing See Mezzanine financing index_7e.qxd 12/5/07 3:13 PM Page 531 Index Garbage, path, 246–247 Gategourmet, 223 Gaylord Entertainment, 462 GDS See Global Distribution System General management, 112–115 General manager, title (usage), 113 Generation X (GenXers), 36 Generation Y See Echo boomers Gift shop/retail operations, 319 Global Distribution System (GDS), 403 Globalization, impact, 28 Global population, youth (increase), 41 Going public, 362–363 Golden Corral, takeout, 74 Golden Resources Mall, 486 GOMIXER, 254 Good will, atmosphere, Government food service programs, initiation, 211 Grand Ole Opry, 462–463 Great American Beer Festival, 488 Great British Beer Festival, 488 Great Depression, birthrate (decrease), 35 Group purchasing organizations (GPOs), 209 Guests corporate/governmental rate, 398 distinction See Clients expectations, 384 See also Upscale hotel companies face-to-face interaction, 507 fax machine installation, example, 514 flow, study See Hotels group rate, 397 needs, 384 anticipation, 287–290 meeting, 267 number, 330 ordering, 254–255 participation, measurement, 199 payment, 255 reservations, preference (example), 514 satisfaction, 102 segmentation, usage, 365–367 Gulf Coast See Mississippi Gulf Coast H Hazard analysis and critical control points (HACCP), 243–244 Health claim, 240–241 defining, 241 concern, 450 industry response, 238 mixed signals, 234–235 wellness, relationship, 235–238 Health care, contract companies (penetration problems), 195–196 Health care food service, 204–210 costs, reduction, 209 professional goals, 21 revenue, enhancement, 209–210 trends, 208–210 Health spas, 279–280 facilities, growth, 389 operations, trends, 281 programs, 389–390 Healthy eating, focus, 236 Helping skills, 509–510 Help wanted pages, leads, 15 High-check-average restaurants, 92 High rollers, impact, 478 Highway/interstate hotels, 275 Hispanics, U.S population, 42 Historic conversions See Hotels Home, competition, 181–182 Home meal replacement (HMR), 73 food service, 87 Hospitality definition, graduates, career preferences (ranking), 23t outlook, 24–28 September 11, 2001 (effects), 24–25 Hospitality industry case history, company culture, research, 518–519 domination, population group (impact), 503 employment opportunities, 9–10 entrepreneurs, attraction, 10 franchising, type, 144 growth, expectation, 52–53 531 growth/change, forces, 33 Internet exercises, 58–60 review questions, 57–58 Internet exercises, 30–31 manager, role, 5–7 relationship, review questions, 29–30 service, role, 501 Internet exercises, 523–524 review questions, 523 service industry, 7–8 Six Sigma, impact, 505 Hospitality job application, knowledge (necessity), 19 benefit mix, 12 consideration, 12–13 employer view, industry practice note, 18–19 obtaining, 15–17 on-the-job learning, 17 placement, strategy, 20 elements, 22–23 goals/objectives, 20–24 profiting, 17 satisfaction, determination, 22–23 Hospitality management defining, 4–5 graduates, opportunities See Lodging program, study reasons, 7–10 student selection, reasons, 9f Hospitality Sales Marketing Association International (HSMAI), 327 Hospitality service organizations, polarization, 25 popularity, 453–454 providing, 287–290 Hospitals commercial catering, offering, 210 HMOs, 208 organization, trends, 206–207 Host locations, 173 Hotel business, 341 cycle, example, 344–346 cyclicality, 344–346 economics, 342–351 Internet exercises, 371–373 review questions, 371 index_7e.qxd 12/5/07 532 3:13 PM Page 532 Index Hotels See Casino hotels; Commercial hotels; Convention hotels; Fullservice hotels; Limitedservice hotels; Luxury hotels airlines, partnerships (formation), 407–408 capital intensive business, 343 capital structure, 332 chains, national/regional sales offices, 400–401 classifications, 280–284 concierge, addition, 389 construction average days (from construction to opening), 343f decision, 399 cycles, 346–350 developer favorites, 379 development, 332 See also International hotels domestic recovery, 347 financial performance, 346–350 analysis, 348 food/beverage operations, 321–325 functional areas, 305f functional departments, 304–306 functional operational chart, 306f function classification, 274–275 future, 289 historic conversions, 282 honors, 392 industry problems, 422 securitization, 355–360 Internet advertising, usage, 406 investment decision, dimensions, 364–369 financial dimension, 364–365 lobby, guest flow (study), 14–15 location classification, 275–276 market segment classification, 276–280 operations, 303 See also International hotels Internet exercises, 337–339 review questions, 337 operators, challenges, 404 ownership, 335–336 post-Katrina operations, 347 price classification, 273–274 variation, 396 properties classifications, 271–284 creativity, evidence, 288 property management system interfaces, 312f rating services, 292–295, 392 real estate deal, elements, 354 possibilities, 351–363 restaurants, 387–388 rooms forecasting difficulty, 343 rates, affordability See Las Vegas selection factors, 382f support areas, 325 House See Back of the house; Front of the house rooms side, 307–309 Housekeeping, 314–315 practice notes, 316 House ledger (tray ledger), usage, 328 HSMAI See Hospitality Sales Marketing Association International Hub-and-spoke systems, disadvantages, 430–431 Human resources See Independent restaurants manager, interaction, 16 program development, 135 role, 328 Hurricane Katrina, impact, 475 Hurricanes, impact, 34 I Ice Hotel, The, 492 Illegal immigrants, 53 Immigrants See Illegal immigrants; Legal immigrants labor source, 53 Incineration, 248, 252 Income dining-out occasions, relationship, 50f distribution, change, 45–47 factor/impact See Two-income families requirements, 22 trends, 418 Income and expense patterns/control, 329–332 Income before fixed charges See Total income before fixed charges Independent living, 217 Independent management companies, 368 Independent operations, market withdrawal, 163–164 Independent restaurants consideration, 127 control and information systems, 141 differentiation, 142–143 expenditures, 130 flexibility, 142 human resources, 142 marketing/brand recognition, 137–138 operating advantages, 136–137 operations, 136–143 possibility, 143 purchasing economies, 141 site selection, 138 Indirect personal transactions, 506–507 Indirect service transaction, 508t Industries, competition, 177–182 Inflation hedge, 364 impact, 364 In-flight food service See Airline food service Informal organization (social organization), examination, 13 Information management, usage See Franchises Infrastructure crisis, 433 Initial public offerings (IPOs), 140–141 equity investment source, 357 Initiative/independence, opportunities, 20 In-room technology, 287 Institute of Women and Work (IWW), research, 46 index_7e.qxd 12/5/07 3:13 PM Page 533 Index Institutional food service See Onsite food service Intercept marketing, 81–82 Interest rates, impact, 364 International Association of Amusement Parks and Attractions, amusement park study, 455–456 International Beer Festival, 488 International Committee of Dietetic Associations, 204 International Franchise Association, failure rate estimation, 145 International Health, Racquet and Sportsclub Association (IHRSA), health club membership, 234 International hotels development, 352–353 operations, 350–351 International locations, targeting, 163 International tourist attraction See United States International travel, factor, 429 International travelers, 286–287 International UFO Museum, The, 492 Internet advertising, 406 usage See Hotels distribution channels, 402–403 impact, 403–404 usage, 258–259 Interpersonal behavior, skills, 510 Interpersonal skills, 509–510 Interview, 16 Interviewee, problems, 18 IPOs See Initial public offerings J Jacob Javits Convention Center, 482 Job See Hospitality job Junk food, proliferation, 238–240 K Karcher, Carl, 78 Kenny Rogers Roasters, takeout-eat-in operation, 87 Knowledge worker, importance, L Labor, 51–53 demand, BLS forecast, 51 scarcity, impact, 55–56 Land importance, 49–51 produce, 48–51 Landfills, usage, 252 La Quinta Inns, construction, 362–363 Las Vegas, 468–471 attractions, 469–470 casinos, 454 convention business, development, 471 development, 471 family entertainment, entry, 471 formation, 468 hotel room rates, affordability, 470 packages, offering, 470–471 recreational features, 471 rooms, Atlantic City (comparison), 474 Laughlin (Clark County), gambling, 472 Layout, sample, 14f Leased restaurants, 325 Leased specialty restaurants, 387 Leasing, practice, 386 Leavitt, Theodore, 512 Legal immigrants, 53 LEGOLAND, theme careers, 464 example, 458 explanation, 462 Leisure environments, theme (variation), 456 Leisure-oriented businesses, 416 Leisure time, growth, 417–418 Les Clefs d’Or, goal, 318 Leverage, 332 impact, 364 Liberal arts education, focus, Liberality, atmosphere, Licensed nursing facility, 217 Life cycle See Product; Restaurants Limited-service hotels, 273 Local governments, funds (requirement), 466 Location See Host locations; Place 533 importance, 399–400 scarcity, increase, 50–51 Lodging, 267 business, competition, 377 Internet exercises, 410–411 review questions, 410 competition, conditions, 381f competitive strategies/tactics, 383 cost structure, 380 cyclical industry, 379 distinctiveness, 272 employment opportunities, evolution, 267–271 functional departments, 304–306 history, 268–270 industry, pipeline forecast, 379 Internet exercises, 299–300 low variable cost, 380 marketing mix, 381–383 market segmentation, 517 operations, 303 Internet exercises, 337–339 review questions, 337 properties, 288–290 review questions, 298 sector, hospital management graduates (opportunities), 19 securitization, growth, 380 technological revolution, 380–381 Lodging Econometrics (LE), 352 LOVE (Beatles show), 469 Luxury hotels, 274 glamor, 24 M Macau, gaming/gambling, 477 Mad Cow Disease, concerns, 234 Mall of America, megamall, 485–486 Managed service companies, 194–196 advantages, 194 ranking, 195t Managed services advantages/disadvantages, 195–196 contract side, 65 Management See General management communication, 519 index_7e.qxd 12/5/07 534 3:13 PM Page 534 Index Management (Continued) companies See Independent management companies hotel owners, arrangement, 367–368 types, 367–368 contract, signing, 365 presence, importance, 105–106 training, 135 Manager helper, role, 519 interaction See Human resources role See Hospitality industry variation, Managerial organization, examination, 13 Mardi Gras (temporary attraction), 487 Market cyclicality, 379 diversity, response, 174 fragmentation, 378–379 growth pattern See Mature market segmentation, 516 See also Lodging share See U.S restaurants increase, 135 Marketing See Frequency marketing/databases; Independent restaurants; Intercept marketing brand recognition, relationship, 128–131 communication, 405–408 expenditures See Food service fees, 393f importance See Franchisees management function, 326–327 mix, 164–177 See also Lodging discovery, case history, 165 relationship See Sales Marriott World Center, business center (usage), 390 Mass market tourism, 454 Mass media, advertising, 405–406 Mature market, growth pattern, 419–420 McCormick Place, convention center, 482 McDonald’s expansion, 78 meals, RDA deficiency, 239 packaging materials, changes, 248f waiting lines, 504 Meal experience, factors, 77f Meal periods, 115 Mechanical-electronic service transaction, 508t Megamalls, 484 Mexico, economies (performance), 428 Mezzanine financing (gap financing), 355–356 MGM Mirage Resorts (Bea Rivage), gaming, 475 Middle class change, 49 defining, 48–49 size, decrease, 45 question, 48–49 Midscale restaurants, 83–87 types, 86–87 Mimi’s Café, casual upscale dining, 71 Minivacation, popularity, 421 Mississippi Gulf Coast, gaming (growth), 475–476 Mobil Travel Guides, 291 five-star awards, 292t–293t five-star designation, criteria, 293t Mohegan Nation, 465 Moments of truth, 503–504 Monthly profit-and-loss statement, preparation, 327–328 Motel evolution, 270 expansion, 271 Motives, destinations (relationship), 450–454 Motor hotel, 270–271 Multiple-concept chains, 72 Museums, popularity, 452 Mystic Seaport, theme town, 459 N Naisbitt, John, 507 Nashville (Tennessee), theme city, 461 National Association of Food Equipment Manufacturers (NAFEM), smart kitchen design, 258 National Parks and Conservation Association (NPCA), 491–492 National Park Service (NPS) establishment, 490 recreation visits, 491f National Park Service Organic Act of 1916, 491 National Restaurant Association (NRA) Restaurant Show, 482 Natural environments, 490–492 Networking, importance, 15–16 New Mexico State University, ARAMARK operation, 201 New Orleans Jazz Fest, 489 New products, importance, 165–166 New York Stock Exchanges, stocks (purchase/sale), 132 Night auditor, 308–309 NLEA See Nutrition Labeling and Education Act Noncommercial food service See On-site food service Nondestination resorts, 278 Nonfamily households See Singleperson households Nontraditional circus, 459 Nontraditional locations, targeting, 163 North American employees, expense, 20 NPCA See National Parks and Conservation Association NPS See National Park Service Nutrient claims, 240 language, 240t Nutrient levels (determination), USDA (assistance), 241 Nutrition, mixed signals, 234–235 Nutritional labeling, 240–242 Nutrition Labeling and Education Act (NLEA), 240–242 enforcement, FDA noninvolvement, 242 O OAA See Older Americans Act Occupancy index_7e.qxd 12/5/07 3:13 PM Page 535 Index percentage, 330 rate, average See U.S occupancy rate Office, 109–112 responsibilities/tasks, 109, 112 roles, 112 supervision, 112 Office of Travel and Tourism, industry definition, 434 Off-premise dining, components, 73 Off-premise sales, growth, 66 Older Americans Act (OAA), Title III-C, 216 Online shopping patterns, 404 On-site food service (institutional food service // noncommercial food service), 65 commercial food services, comparison, 190–193 contrast See Restaurants international perspective, 193 Internet exercises, 228–231 market, 196t review questions, 228 segments, 221–224 On-site franchised restaurant, 386–387 On-site sector, discussion, 190 Opening, 113–114 Opening and closing procedures, 106 Operating business, 365 Operating ratios terms, 330 usage, 118–121 Operating statistics, comparison See U.S restaurants Operations, tracking, 118–121 Opryland Hotel, 463 Orbitz, online travel agency, 435 Orders, calling, 115 Ordinaries, 268 Out-of-the-ordinary tourist attractions, 492 Outsourcing, usage, 199–200 Overseas career opportunities, 20–21 Overweight, problem, 236–237 P Paramount Canada’s Wonderland, employees (number), 463–464 Participation rate, 191 Partnership and reward programs, 407 Partnerships, formation, 407 Part-time workers, importance, 53 Passenger transportation, 429–433 Pasta, popularity, 89 Payroll costs, 119 People, importance, 520–521 Personal care, 217 amenities, 391–392 Personal goals, 22 Personal service rendering, 508–510 task, 508–509 P.F Chang’s, casual upscale dining, 71 Physical plant, examination, 13–15 Piccadilly Cafeterias, 85–86 takeout, 74 Pit boss, involvement, 479 Pizza restaurants, 86–87 PKF Hospitality Research, 348–350 Place, 171–173 See also Product Price Place and Promotion importance, 399–404 location, 171–172 reference, 382 Planned play environments, 455–464 Pleasure travel, 418–419 PMS See Property management system Point-of-sale (POS) system computerization, 133 purchase, 141 terminals, 312 usage, 135 Points of distribution (PODs) expansion, 81–82 operations, 173 proliferation, 180 scaled-down version, 138 usage, 172–173 See also Food service Point-to-point service, 431 Popular-priced restaurants, 76–93 Portion control, 107 POS See Point-of-sale Post-graduation employment, 18–19 535 Pot washing, unskilled work, 107–108 Price, 170–171 See also Product Price Place and Promotion competition, power, 170–171 impact, 395–399 peak demand, relationship, 396 reductions, risk, 171 reference, 381–382 Pricing impact See Competitive pricing strategic implications, 171 tactics, 395–399 Primary destinations (touring destinations), 452–453 Private clubs glamor, 24 on-site food service, 222–223 Private equity firms, pooled money (management), 354–355 investments, 353–355 Procedural task See Functional task Process viewpoint See Service selection, 515 Product, 164–170 development, 134–135 importance See New products inclusion, 381 innovation, 166 life cycle, 166–167 segments, variation, 365 usage See Segmented market viewpoint See Service Production viewpoint, selection, 515 Product Price Place and Promotion (4Ps), 164 Professional status, consideration, 22 Profit center, food and beverage department (role), 322 making, See also Food service treatment, 11–13 Promotion, 173–177 See also Product Price Place and Promotion; Sales Internet, usage See Food service reference, 382 usage, 405–407 Promotional merchandise, usage, 177 index_7e.qxd 12/5/07 536 3:13 PM Page 536 Index Properties, operating cost (capital cost), 395 Property management system (PMS), 310 Property/room breakdown (2005), 284f Psychographics, 47 Public anxiety See Travel Public funding, 359 Publicity, economic benefit, 426 Publicly held copmanies, 358 Publicly traded companies, 132–133 Public ownership, hazards, 360–361 Purchasing benefits See Franchisees cooperatives See Franchises Purchasing economics, 128, 133 See also Independent restaurants Q Qingdao International Beer Festival, 488, 490 Quality assurance, 393 Quality control See Franchises Quality time, seeking, 418 Quark, Star Trek-themed restaurant, 91 Quick service chains, dominance, 80 concept, 77–79 evolution, 81 food, difference, 80t future, 82 Quick-service restaurant (QSR), 76–82 casual upscale restaurants, contrast, 72 characteristics, 79–80 consideration, 23 growth, 36–37, 76 experience, 65 resistance, 50–51 sales, growth, 67 R RCA See Research Chefs Association Real estate investment trusts (REITs), 355 equity investment source, 357 example, 357–358 Reasonable care, 319 Receipts and payments, money measurement, 427 Recreation function, 450 on-site food service, 221–222 Recruitment, Internet usage (extent), 19 Recruits, skills (requirements), 18–19 Recycle (technique), 248, 250–251 Recycling, effort, 250 Reduce (technique), 248, 249 Refrigeration, usage, 256–258 Regional parks, size, 461 Regional theme parks, 460–461 Registered dietitians (RDs), 205 Relief job, importance, 17 Religion, concern, 450 Relocation, 138 Research Chefs Association (RCA), 110–111 Reservations, 313 networks, 436–437 Resident domestic travel volume See U.S resident domestic travel volume Resorts, 278 selection factors, 382f Restaurant business, 63 description, 67–68 Internet exercises, 97–98 life/experience, 121–122 retailing sector, 94–95 review questions, 97 Restaurant industry organization, 127 capital access, 138–141 Internet exercises, 157–159 review questions, 156–157 Restaurant operations, 101 familiarity, 102–115 Internet exercises, 123–125 profit, 385 review questions, 123 Restaurants See Leased restaurants; Retail stores; Shopping malls advantage, 180–181 company, public (taking), 140 competitive strategy, 388–389 concept, life cycle, 167f on-site food service, contrast, 191 problems, leasing (impact), 386 statement of income and expenses, 120f Retail stores, restaurants, 94–95 Retained earnings, consideration, 12–13 Reuse (technique), 248, 249 Revenue and expense items, 331t Revenue passenger miles, growth, 430 Revenue per available room (RevPAR), 332, 350–351 RICF See Rosenberg International Center of Franchising Riverboat gambling, 465–466 Rock Bottom Restaurant, going private, 140 Rockefeller Center, plaza planning, 483 Rooms departments, running, 305 inventory, surplus, 378 package rate, 398 rate structure, disclosure, 398 regular rates, perception, 396 reservation, 398 variable cost, 395 Rosenberg, William, 144 Rosenberg International Center of Franchising (RICF), 154 Routine See Daily routine Rush, preparation, 114–115 S Salary levels, 121–122 Sales cost See Cost of sales increase, 116–117 marketing importance, 334 relationship, 325–327 promotion, 176–177 usage, 407–408 Sanctuaries, attractions, 486 Sandwich wars, 168 Sanitary landfill, 246–247 Sanitation, importance, 324–325 index_7e.qxd 12/5/07 3:13 PM Page 537 Index SBA See U.S Small Business Administration Scale, 459–460 School food service, 210–221 cash subsidies, 211 contract companies, usage, 213–214 funding restrictions, 211–212 model, 212–213 operations, expansion, 212 trends, 214 School lunches, USDA regulations, 211 Seafood restaurants, 89 Secondary destinations (stopover destinations), 452–453 attractions, 453 Secondary offerings, 358 Secondary stock offerings, equity investment source, 357 Securitization, 355 competition, relationship, 359–360 growth See Lodging Security, 319–321 concern, 27–28 managerial problems, 320–321 technical problems, 320 Segmentation See Market usage See Developers; Guests Segmented market, product (usage), 383–394 Self-esteem, work (contribution), 11 Self-expression, opportunities, 20 Self-liquidator, 177 Self-operated facilities (self-ops), 190, 193–194 Self-operated universities, 203t Senior living centers/communities, 217–221 Senior living communities, accommodations (levels), 217 Senior Living Services facilities, operation, 220 September 11, 2001 (terrorist attacks), 422–423 Servers, assignation, 105 Service, 290–296 See also Systemwide services aspects, 509f assessment, 391–392 characteristics, 506 company organization, 516–522 competitive advantage, sustaining, 522 components, 389–392 consumption, 505–506 defining, 503–508 delivery, 102–103 enhancement See Customer excellence, importance, 391 importance, 26 process viewpoint, 511, 512–515, 515f product viewpoint, 511–512, 515f application, 512 rendering See Personal service segmentation strategy, 516 strategy, 516–517 involvement, 517 study, 502–508 types, 506–508 Service culture, 518–519 development, 520f establishment, 518 top management, commitment, 518 Service transactions interest, 507 management, 511–515 approaches, 515f types, 508t 7-Eleven, convenience stores, 178 Severe Acute Respiratory Syndrome (SARS), 348, 420 concerns, 234 impact, 34 public anxiety, 422–423 Shakey’s Pizza, marketing mix (discovery), 165 Shopping centers, 484–486 Shopping malls, restaurants, 95 Short-term work, experience, 21 Sidework, 114–115 Single-person households (nonfamily households), impact, 45 Site selection See Independent restaurants expertise, 128, 131–132 537 Six Sigma, impact See Hospitality industry Skilled jobs, acceptance, 23 Slot machines labor, involvement, 478–479 staffing, 480 Small Business Administration See U.S Small Business Administration Social military educational religious and fraternal (SMERF) business, 285 Social needs, restaurant service, 68–69 Social organization See Informal organization Society of Plastics Industry (SPI) coding system, 251f Sodexho (international company), 193 Solid-waste disposal, 246 South China Mall, 486 Southwest Airlines, passenger miles (leader), 431–432 Space tourism, 493 Spas See Health spas Specialty restaurants, 88–89 Spectacle, attraction, 452 Sporting events, popularity, 450, 452 Sports stadiums, urban entertainment center, 481 Spy Trail, The (walking tour), 492 St Louis Centre, mall, 484 Staff departments, 325–329 Staffing requirements See Chain restaurants Staging areas, 437 Star Trek: The Experience (Las Vegas show), 469–470 Starwood Lodging, financial power, 359 State governments, funds (requirement), 466 Steakhouses, 88 Stopover destinations See Secondary destinations Storage technologies, 256–257 Suburban hotels, 275 Suggestive selling, 116 effectiveness, 117 Summer work, experience, 21 index_7e.qxd 12/5/07 538 3:13 PM Page 538 Index Superfloors, usage, 389 Supermarkets, competition, 180–181 Supply, 48–53 impact See Food Support departments, 325–329 Systemwide services, 392–394 T Table service restaurants, 83–84 Tag line, design, 129 Takeout, 74 sales, growth, 66 Task, 508 See also Functional task; Personal service Tavern keeping, 268 Taxes, impact, 364–365 Technological changes, impact, 378 Technological revolution See Lodging Technology banquet sales, interaction, 258 impact, 27, 380–381 management, relationship, 259 usage, 253–259 See also Back of the house Telecommunications, 315–317 Television advertising, 130 Television-oriented traveler, expectations, 457–458 Temporary attractions, 487–490 Terrorism, impact, 348 Theater, attraction, 452 Themed attractions, number, 457 Theme parks, 456–457 See also Regional theme parks employment, 463–464 training opportunities, 463–464 Theme restaurants See Eatertainment restaurants Themes, 457–459 cities, relationship, 461–463 Tornado chases, 493 Total income before fixed charges, 330 Touch-screen ordering stations, usage, 253 Touring destinations See Primary destinations Tourism, 415 See also Mass market tourism; Volunteer tourism business beneficiaries, 425f demographic development, 419 economic significance, 424–426 employment, relationship, 426 factors, 417 favorable noneconomic effects, 440–442 generators, 449 Internet exercises, 494–497 review questions, 494 growth, 417 importance, 416–420 industry business/government collection, 416 expenses, 425f Internet exercises, 444–446 noneconomic effects, 437–442 review questions, 443 volume, measurement, 427–428 Tourist attraction See United States imagination, 492–493 Tourist dollar multiplier effect, 425f Tourist-related activities, offering, 480–481 Towne of Smithville, restored community, 458 Training opportunities See Theme parks programs, 135 Transportation on-site food service, 223–224 patterns, 267 Travel agencies problems, 435–436 usage, 434–436 complications, impact, 348 consultants, usage, 435–436 employment See U.S travel employment expenditures See U.S domestic travel expenditures factors, 417 industry direct expenditures, 424 public anxiety, 422–423 intermediaries, 401 mode, 420–421 multiplier, usage, 424, 426 plans/behaviors, Harris Poll, 423 relationship See Demographics trade balance, 428 trends, 420–424 wholesalers, 436 Travel agents growth, 52 importance, 401 Travelers business service, 429–437 comfort, 454 types, 285–287 Travelocity, online travel agency, 435 Tray ledger See House ledger Trip duration, 421–424 Two-income families factor, 418 impact, 44 U Undistributed operating expenses, 330 Uniformed services staff, usage, 317–319 United States destination, growth (reasons), 428–429 international arrivals, U.S travelers (contrast), 427f international tourist attraction, 427–429 University students, nontraditional status, 203 Unused seat miles, growth, 430 Upscale hotel companies, guest expectations, 387–388 Upstairs guest, 383 Upstairs markets, properties (usage), 388–389 Urban entertainment centers, 480–486 Urban planners, plaza development, 483 U.S arrivals and departures, 427–428 U.S Census Bureau, Consumer Expenditure survey, 175 index_7e.qxd 12/5/07 3:13 PM Page 539 Index U.S Department of Agriculture (USDA) regulations See School lunches U.S domestic travel expenditures, 420f U.S hotels average occupancy/room rate, 276f properties, total operating costs (increase), 349 U.S occupancy rate, average, 350 U.S population change, 39t diversity, 42–43 U.S resident domestic travel volume, 417f U.S restaurants chains, market share, 136f operating statistics, comparison, 121t U.S Small Business Administration (SBA) interaction, industry practice note, 139 studies, 145 support, 138 U.S travel employment, 425f Utell, Unirez acquisition, 401 Utility, importance, 324–325 V Vacation ownership, 280 Valet/garage staff, 318–319 Value consciousness, importance, 26–27 Variable costs, 119 See also Rooms Vending, 224–227 eating market segment, 225 machines, 506 management, changes, 226 operations, location, 225 Venture capital, 140 Vicksburgs National Military Park, popularity, 452 Virtual front desks, 402 Voice mail, availability (increase), 315–316 Volunteer tourism, 440–441 W Walk-in registration screen, sample, 310f Walt Disney World (WDW) complex, 359–360 Waste stream contents See Food service management, 247–252 path, 246–247 Water Tower Place, mall area, 484 WDW See Walt Disney World WestCoast Hospitality Corporation, flexibility, 394 West Edmonton Mall, megamall, 484–485 WHO See World Health Organization Wide World of Sports Complex, 460 Wilson, Kemmons, 270 Wireless bubble, providing, 256 Women’s Foodservice Forum (WFF) creation, 46 research, 46–47 539 Work contribution See Self-esteem defining, 11 meaning, 10–11 vocation, 10 Work experience benefits, 12–13 learning strategies, 13–15 necessity, 11 Workforce component, 54 diversity, 53–54 Working women employment, change, 44f impact, 43–44 World expositions, 487 World Health Organization (WHO) health, optimum, 236 obesity/excess weight fact sheet, 235–236 Y Yield management, 313 practice, ground rules, 398 problems, 397–399 system, development process, 397 usage, 396–399 Yosemite (park), creation, 490 Young adults, impact, 40 Young urban professionals (yuppies), 418 Z Zero defects, 504 standard, 516 Zoos, attractions, 486 [...]... Introduction to the Hospitality Industry in order to help students understand the material more easily and to help bring the world of hospitality alive ■ Additional international examples of hospitality and tourism operations have been included throughout the text ■ The Purpose of This Chapter section introduces the chapter to students and discusses the significance to the hospitality industry of the topics covered... students are drawn to the hospitality industry because they want to get into their own business Others, with good reason, suspect that there are opportunities for innovation off the beaten track of the traditional or franchise organizations There have been many successful examples of the latter throughout the history of the hospitality industry One segment in particular that seems to offer tremendous... exciting time to be studying hospitality management and we try to convey that in this edition of the textbook Content—Benefits for Students I n our efforts to present the industry in an organized and responsible manner, we have divided Introduction to the Hospitality Industry, Seventh Edition, into five primary sections encompassing everything from students’ concerns about their role in the industry and... volunteer tourism (Chapter 14) CAREERS IN HOSPITALITY Q ■ The Careers in Hospitality icon appears throughout the book in the margin of the text to alert students to specific discussions of career opportunities in the hospitality industry ■ The Summary provides a concise synopsis of the topics presented in the chapter ■ A list of Key Words and Concepts appears at the end of each chapter Further, key... fits into the broader world, the major career paths, as well as the important issues and challenges that managers face Content—Benefits for Instructors I nstructors will benefit from the flow of Introduction to the Hospitality Industry, Seventh Edition; the numerous examples provided; topic headings, which can be used to generate class discussion; and the numerous supplementary materials including the. .. attention now from the facilities and services associated with the hospitality industry to the people who staff and manage them, let us consider the profession of the hospitality provider The hospitality professions are among the oldest of the humane professions, and they involve making a guest, client, member, or resident (whichever is the appropriate term) feel welcome and comfortable There is a more... 1 The Hospitality Industry and You What Is Hospitality Management? W hen most people think of the hospitality industry, they usually think of hotels and restaurants However, the true meaning of hospitality is much broader in scope According to the Oxford English Dictionary, hospitality means the reception and entertainment of guests, visitors or strangers with liberality and good will.” The word hospitality. .. equipment Then begin to note on it where you see problems resulting from cross traffic or bottlenecks For example, if you’re working in the back of the house, you can chart the flow of products from the back door (receiver) to storage and from there to preparation You should also trace the flow of dishes Dirty dishes come to the dish room window and go to the clean-supply area after washing How are they... such as the Freemont Street Experience in Las Vegas, play an important part of the hospitality industry (Courtesy of Las Vegas Convention and Visitors Authority.) hotel business, but it is also one of the largest food service companies in the United States The point is that the hospitality industry is tied together as a clearly recognizable unit by more than just a common heritage and a commitment to “liberality... stated, these objectives suggest that managers must be able to relate successfully to employees and guests, direct the work of their operation, and achieve operating goals within a budget—that is, to run a productive operation within certain constraints Why Study in a Hospitality Management Program? O ne way to learn the hospitality business is to take the direct route: go to work in it and acquire the