HMGT 1101 Perspectives in Hospitality Spring16

Chapter four discusses the food and beverage operations as a whole. It talks about the roles of the employed in a food or beverage establishment. The beverage or food director reports to the general manager. There are many skills a beverage director must have such like leadership and cost control experience. It is important for the managers to make sure that all money invested is being projected into sales. In all food and beverage establishments there is a person called the chief steward who is responsible for organization of the back of the housel in other words, the kitchen. This person is in charge of inventory, maintenance, sanitation etc. The catering department of an establishment is also very crucial to business. The catering director is responsible for upselling banquets and organizing events.

Chapter five focuses on beverage operations and how it works in the hospitality industry. The chapter discusses the different types of wines along with the history behind the making of wine. It also talks about beers and spirits and how they have flourished over the years. The history of wine goes back to 7,000 some years ago. There are six steps into making wine which include crushing, fermenting, racking, maturing, filtering, and bottling. There are many different types of wines that are paired with different types of foods like meats and cheeses. It is considered that wine is very beneficial to ones health and should be consumed regularly. In recent years, the practice of sustainability has been seen through the consumption of wine. More and more winery’s have adapted the idea of becoming organic and sustainable. There are numerous kinds of beers and spirits made internationally and is a very successful business. The chapter discusses the ways bars are set up in order to sell food and beverages. There are many different types of bars, anything from a sports bar to a sophisticated hotel bar. Some coffee shops and smaller establishments have been known to sell alcohol. The bar/restaurant business is very risky because of the liabilities that come along with the responsibility. An establishment may be held liable for many reasons and is important to maintain reputation.

In the fourth chapter of the text, titled “Food and Beverage Operations”, the author discusses the various facets of the of the food and beverage services typically provided by a hotel along with the nature of managing those services. The chapter begins with informing the reader that the food and beverage department of a hotel is headed by what is known as a director of food and beverage. It continues by outlining the responsibilities of this individual; these include overseeing that the kitchen,bars, restaurants and catering services are being operated in an efficient and profitable manner. In addition, this director is also tasked with supervising room service. According to the text, this position results in the director having an obligatory interest in identifying trends in the hospitality industry and a partial responsibility in organizing special events. The text continues next by elaborating on the hotel kitchen. The hotel kitchen is the domain of its executive chef. The executive chef must ensure the quality and quantity of food. They’re are tasked with producing and maintaining the organization of the kitchen, this includes delegating specific duties to those employed in the kitchen and monitoring financial performance. Furthermore, the chapter goes on to mention that larger hotels tend to have both formal and casual restaurant options. These restaurants are either independent enterprises or they’re directly attached to the hotel’s operations. It then discusses bars as a lucrative revenue center, but one fraught with liability. From that point the chapter takes a turn to focus in on the two remaining pillars of a hotel’s food and beverage operations, stewardship and catering.

In the latter part of the chapter, the text delves into the unsung hero that is the chief steward. The chief steward is the position in the food and beverage department that is tasked with ensuring that the kitchen and all the tools used in the preparation and serving of food are kept clean. They must also maintain other areas under the purview of their department, such as the backstage of the hotel. In addition, they are charged with implementing pest control. From here, the text turns its attention to the pivotal function of catering. Catering is typically categorized as either on-premise or off- premise. Hotels provide catering for events like conventions, weddings, dinners and meeting. The nature of the catering service and its organization are predicated on the event being catered to. Ultimately, catering features prominently in a food beverage department’s repertoire because it is procedurally a highly complex affair involving many parties. The chapter concludes by sharing the evolving nature of room service, and how many in the hotel industry use it strategically to boost guest satisfaction.

Key Terms

1. Banquet- The current head of state will typically throw a lavish banquet in honor of a visiting foreign dignitary.
2. Banquet event order (BEO)-  Hotel personnel who are involved in catering an event can find out there duties by referring to the banquet event order
3. Brigade- The tasks of the of the kitchen are usually delegated according to the brigade system.
4. Capture rate- A hungry but lazy guest is always great for a hotel’s capture rate.
5. Catering- Though very lucrative, catering large events can be very taxing for a hotel kichen.
6. Catering coordinator-  Any  contract involving catering on the part of a hotel must be reviewed by its catering coordinator.
7. Catering event order (CEO)- See banquet event order (BEO).
8. Catering services manager (CSM)- When an event space is not set-up as a client expected, the blame will fall the catering services manager.
9. Chef tournant-  One can say that a chef tournant is a sort of Jack of all trades.
10. Chief steward- For a general manager to appreciate the cleanliness of their kitchen, they must appreciate the work of the chief steward.
11. Classroom- style seating- If the guest of an event are expected to take notes, then the organizers should implement classroom-style seating.
12. Contribution margin- The kitchen of a hotel must sell a certain amount of a food item to justify its contribution margin.
13. Dinner-style room seating- When dinner is a primary draw for an event, it stands to reason that the organizers will implement dinner-style seating.
14. Director of catering (DOC)- The director of catering is the one ultimately responsible for the execution and profitability of all catering activities.
15. Director of food and beverage- A general manager who is displeased with the quality of food being produced in their hotel must deal directly with the director of food and beverage to solve the problem.
16. Executive chef- The hotel kitchen is generally run by the executive chef.
17. Food cost percentage- Determining food cost percentages is integral to establishing the profitability of a hotel’s food and beverage outlets.
18. Food sales percentage- A hotel kitchen typically expresses the cost of labor in the food sales percentage.
19. Horseshoe-style room seating- Organizers  of an event can facilitate interaction between guest by utilizing horseshoe-style room seating.
20. Kitchen manager- Certain multi-faceted executive chefs are referred to as kitchen managers.
21. Labor cost percentage-  A labor cost percentage of a hotel kitchen can fluctuate on whether the items they produce are made from scratch.
22. Perpetual inventory- A hotel kitchen can monitor cost by using software that establishes a perpetual inventory.
23. Pilferage- An experienced restaurant owner will certainly always remember to account for pilferage when reviewing inventory.\
24. Pour/Cost percentage- The efficiency of any bar operation is measured by its pour/cost percentage.
25. Responsible alcoholic beverage services- An establishment runs the risk of being held legally liable if doesn’t promote and enforce responsible alcoholic beverage services.
26. Restaurant manager- A restaurant manager is a restaurant’s equivalent to a hotel’s general manager.
27. Room service-  A hotel guest can be surprised how expensive regularly ordering room service can get.
28. Shopper- The employees of a hotel bar should always remain conscience of the possibility that any given customer could be a shopper.
29. Sous chef- Sous chefs tend to work under executive chefs in the kitchen
30. Station chef- A vegetable chef is the station chef charged with preparing vegetables.
31. Theater-style room seating- Events that involve audiovisual presentations usually conform to theater-style seating.

Chapter 6 talks about the restaurant business and the way it has changed our world. The restaurant business can be dated back to the 1700s. Mari-Antoine Careme and August Escoffier are credited as the founders of modern cuisine. To have a restaurant is a lot of responsibility and to be a good owner/chef/manager one must have specific qualities. The location of your business is crucial to the outcome of your investment. Sustainability is also very important in this business as well as the entire hospitality world. There are many different themed restaurants such as steak houses, fine dining, and and casual dining. The fast food business is a billion dollar empire which grows each and every single year.

Chapter 7 goes on to discuss the restaurant operations in the front and back of the house. Each division has its own manager whom answers to the general manager of the business. Service is key is an hospitality business and it is important to on top of your competitors. Quality over quantity always. There are different types of services like the American service and European. The restaurant is made up of different systems that help run the business a lot smoother. There is a lot of organization that takes place inside a restaurant like staffing and training/development. It is crucial to keep your employees happy and rewarded for their good work ethics. As a restaurateur you must maintain your business fully stocked and organized in order to have a properly functioning system. The chapter ends discussing the importance of the National Restaurant Association and recycling.

Chapter 10 discusses the topics of recreation, leisure, and wellness. These three things are very different in meaning. Leisure is best described as free time. Recreation is described as a time to to refresh ones mind and body. The government can sponsor a recreation. The government also has the ability to raise or reduce taxes for such occasion. National parks is also a topic in this chapter. As well as theme parks and their significance in the hospitality industry. Walt Disney was one of the first people to create an amusement park. Back then an amusement park was very different as to what it is today. Walt Disney grew his empire adding multiple theme parks all around the world. The chapter also talks about the historic places and museums. Clubs are a major part of the hospitality industry for it serves patrons of all types for all of many occasions.

Chapter 3 discusses the rooms division operations inside a hotel. A hotel is made up of many revenue department that are interwined. Hotels are meant to serve those who are away from and make them feel as though they are home. Each hotel follows a management structure. Every hotel has a general manager who is responsible for over looking all department to make sure everything is running as it should. Each hotel has an executive commitee which consists of diferent directors for each department. Each department is crucial to the proper functioning of the hotel but the revenue department are the ones that bring in the money by maximizing room occupancy. Chapter 3 goes on to discuss guest services like door attendants and concierge. House keeping and security also play a big role in the proper function of hotels.

For the tenth chapter of the text , titled “Recreations, Attractions, and Clubs”, the authors delves into the nature and operational attributes of recreational spaces. the text begins by explaining that recreation is the spare time that most use to rest and restore their minds and bodies. Individuals can preform these activities alone or in a group, and these activities can be active or passive. These activities can include amusement parks, playgrounds, and sporting arenas along with more cultural pursuits such as visiting a museum. The text goes on to mention that many of the recreational options on offer involve some sort of governmental support. Afterwards, the chapter then turns its focus to national parks. National parks are recreational outlets that are formed for the purpose of conserving certain exceptional natural spaces for public use. They tend to put a focus on appropriately managing and maintaining the local ecology along with recognizing the significance of key historical sites. The chapter then turns to discuss the increased pressure put on municipalities to provide basic recreational amenities to their communities; these include things like swimming pools, golf courses, playgrounds, and picnic areas. In addition, the chapter spends sometime elaborating on commercial enterprises or in other words, the recreational outlets operated with the intention of making a profit. Most forms of live entertainment, theme parks, social clubs all fall under this ever expanding multi-billion dollar umbrella. In this portion of the text, the reader is given detailed insight on the nature of clubs. The book tells the reader that clubs tend to be built around certain commonalities among their members, and this unifying thread can be of a purely recreational, professional, or fraternal nature. The chapter concludes by further discussing the noncommercial recreation provided by governmental and nonprofit organizations such as volunteer services and recreational programs directed at those with disabilities.

Key Terms

1.City clubs- Soho House in in New York City is an excellent example of a city club.

2.Club management- Club management are the ones responsible for the overall well-being of the club.

3.Commercial recreation- Theme parks are a primary purveyor of commercial recreation.

4.Country clubs- Exclusivity is a hallmark of any country club.

5.Government-sponsored recreation- If you have ever been to a national park, you have participated in government-sponsored recreation.

6.Heritage tourism- Italy oozes with heritage tourism attractions.

7.Leisure- Anytime not devoted to work and school is leisure time.

8.National Park- Yellowstone is a well known national park.

9.National Parks Service- The National Parks Service is an organization invested in environmental preservation.

10.National Register of Historic Places- Due to it’s obvious historical importance, the White House would certainly be on the National Register of Historic Places.

11.Noncommercial recreation- The YMCA is one of the best known providers of noncommercial recreation.

12.Recreation- If you like to do something for fun, it’s probably some form of recreation.

13.Recreation for special populations- Recreation for special populations always designed to take into account the disabilities of those involved.

14.Recreation management- Effective recreation management is necessary for any municipality that wants to provide recreational spaces for the community.

15.Theme parks- Disney tends to set the standard for theme park experiences.

16.Transient occupancy tax (TOT)- Hotels contribute to the public purse when they pay their transient occupancy taxes.

17.Voluntary organizations- No one is obligated to participate in a voluntary organization.

In the third chapter, title “Rooms Division Operations” , the text details the primary departments that that constitute a hotel and there various functions. The chapter begins by discussing the managerial structure of a typical hotel. Here it focuses on the preeminent position of general manger. It stresses the importance of the role by mentioning how the general manger is seen as the representative of their respective hotels, and are ultimately responsible profitability of the enterprise they govern. It goes on to say that general managers typically run a hotel in tandem with a complimentary executive committee. According to the text, the executive committee consist of heads of the major departments in a hotel. These departments include rooms division, food and beverage, marketing and sales, and human resources. Afterwards, the chapter delves into the centrality of the front desk. It elaborates on how the front desk is the place where rooms are sold, and where the daily balancing of guest accounts occurs. The chapter devotes a sections to the arduous but integral housekeeping department and its key role in maintaining quality guest accommodations. In addition, the text delineates how certain organizational tools, such as PMS, centralized reservations, and yield management, are assisting both financially and in terms of quality of service. In conclusion, the text remarks currents trends in internal hotel operations along with advice on potential career paths in hotel management.

Key Terms

1.Application service provider (ASP)- Textbook def: Delivers a complete booking system tied to the hotel’s inventory in real time via the internet. My example: Application service providers allow for an efficient way for hotels to outsource sales operations.

2. Average daily rate(ADR)- My example: A hotel manager will utilize the average daily rate forecast the revenue for a particular time of the year.

3.Call accounting systems(CAS)- My example: Even though telephone charges are a dying revenue center in modern hotels, call accounting systems are utilized to help bring what little that can still be made from them.\

4.Catastrophe plans- My example:  Every hotel should have catastrophe plan in the event a natural disaster strikes.

5.Central Reservation office(CRO)- My example: Large hotel chains tend to have a central reservation office, so they can more efficiently process reservations from their various properties.

6.Central reservation system(CRS)- My example: Central reservation systems allow hotels in referral associations to assist each other when one is in need of occupancy.

7.City ledger- My example: Hotels can provide credit to a large corporate client with the use of a city ledger.

8.Concierge- My example: If a guest wants tickets to a sold out concert, their best bet is to speak with the concierge of the hotel.

9.Confirmed reservations- My example: A guest will always have proof if they have a confirmed reservation.

10.Cost centers- My example: Utilities are a basic cost center of any business.

11.Daily report- My example: A general manager relies on a daily report to make informed decisions about the operations of their hotel.

12. Employee Right to Know- My example: Employees are obligatorily informed about the risk of their occupation as result of the Employee Right to Know.

13.Executive committee- My example: A general manager uses meetings with the executive committee to stay informed about the happenings of different hotel departments.

14.Global distribution systems (GDS)- My example: International hotel chains rely on global distribution systems to stay operational in their various markets.

15.Guaranteed reservation- My example: A hotel can face litigation if it does not honor a guaranteed reservation.

16.Night auditor- My example: The night auditor will be the first to know how much revenue a property brought in on a given day.

17. Occupational Safety and Health Administration (OSHA)- My example: Employees are ensured by OSHA that will work in a safe environment.

18.Productivity- My example: A general manager is the one who is ultimately responsible for keeping a hotel’s productivity high.

19.Property management systems (PMS)- My example: Billing a guest correctly is made infinitely more easy with the use of a PMS.

20.Revenue management- My example: Room rates are primarily determined through revenue management.

21.Revenue center- My example: Food and beverage provision is a growing revenue center for many hotels.

22.Revenue per available room (REV PAR)- My example: In the hotel industry REV PAR is customarily used to rate a properties’ competitiveness.

23.Room occupancy percentage (ROP)- My example: ROP is integrated into daily reports so concerned parties can see how many rooms were bringing in revenue on a given day.

24.Room rates – My example: Room rates fluctuate based on supply.

25.Room divisions- My example: Most hotel are organized along the lines of rooms division.

26.Uniformed staff- My example: Uniformed staff are always the first ones to encounter guest at a hotel.

27.Yield management- My example: Decisions about room rates are usually reached using yield management.

Chapter two discusses the hotel business and the different types of hotels that exist. Franchising began in 1907 by The Ritz Carlton. Franchising is a way to help businesses expand by using the help of the franchisor. As a franchise you are given the right to use the company’s name but can only use the company’s procedures. The chapter goes on to talk about management contracts and referral associations. The chapter talking about feasibility which is a kind of survey to give the developer and idea of his/her surroundings. There are many types of location classifications for hotels. Anything from airport hotels to bed and breakfast inns they all serve different purposes to all different types of travelers.

Chapter 9 discusses tourism and what tourism is globally. The chapter talks about the importance of tourism as it is crucial to the trading business between the united states and other countries. Tourism is described as a 24/7 , 365 day around the clock business, it never ends. Different forms of travel like airlines and ships gain most of their income from tourist. The bottom line is people want to travel, they have the money and the time. There are five stages of tourism which have evolved the way everyone around the world travels. Back in the day, people did not really travel for leisure it was more of a religion or business venture. We began to use cars as a from of transportation in 1895. We have something that is called the hub and spoke system which is where major airliners fly to a major city and from there one can take a connecting flight to a smaller town. The chapter talks about the growing cruise business that has sparked over the years. In tourism there are many promoters of the business. Ecotourism has become a thing in the recent years, which is a environmentally safe way for travels. Sustainability in this industry is a huge deal being that we need to try to lower our carbon foot prints as much as we can. The chapter ends by discussing the trends in tourism like new technologies that will be put in place in the near future.

In chapter two “The Hotel Business”  the text discusses the fundamental nature and the current state of the hotel and lodging industry. It begins by giving us a timeline of pivotal events and developments that have the concept of a hotel as we know it today. From there it leaps into detailing the various methods used in modern hotel development. This section begins with referring to the popular vehicle of hotel expansion known as franchising which is a double edged sword of sorts due to the contractual limitations it places on both parties. Then they refer to the confederation style arrangement of referral associations and how they incorporate the use of shared branding and a central reservation system. The chapter ends the section by detailing management contracts  and the traditional investor oriented practices of hotel development. They mention the significant positive impact that hotels have on local economies. Furthermore, the chapter delineates the nature of hotel classification, and it gives the example of the American Automobile Association’s diamond award system. According to the chapter, hotel classifications are usually predicated on location, price, and type of services offered. Afterword, the chapter shares certain ongoing trends and development in the hotel industry. The chapter tells of the growing trend of vacation ownership such as timeshares. Then it shifts focus to the growing internationalization and market diversity of the hotel industry. It also notes the increasing emphasis on environmentally friendly sustainable lodging. the chapter concludes by sharing the growing variety of career of options in hotel development and classification along with the employment value they can provide.

Key Terms

1. Capital intensive- Textbook def: Something requiring a lot of capital. My example: Pharmaceuticals is very capital intensive due to all  resources a business must pool to be even remotely successful.

2. Fair return on investment- Textbook def: A reasonable return for the amount invested. My example: Apple’s 40% profit margin is a more than fair return on investment.

3. Feasibility study- Textbook def: An assessment of the viability of a project. My example: an affective feasibility study looks at things like market supply and demand in a specified area.

4. Direct economic impact- Textbook def; The infusion of particular business’ revenue stream into the local economy. My example: The direct economic impact of a restaurant is determined by factors such as product pricing.

5. Indirect economic impact- Textbook def; The potential economic stimulus a local economy can receive purely from the operation of a particular business. My example: A restaurant has an indirect economic impact when it sources its supplies from local vendors.

6. Franchise- Textbook def: 1. The authorization given by one company to another to sell its unique products and services. 2. The name of the business format or product that is being franchised. My example: McDonald’s is synonymous with the concept of franchising.

7. Management contract- Textbook def: A written agreement between an owner and an operator of a hotel or motor inn by which the owner employs the operator as an agent (employee) to assume full responsibility for operating and managing the property. My example: Management contracts  allow for investors to be successful in fields they may not have much knowledge of.

8. Real estate investment trust (REITs)- Textbook def: A method that enable small investors to combine their funds and protects them from double taxation levied against an ordinary corporation or trust; designed to facilitate investment in real estate in much the same way a mutual fund facilitates investment in securities. My example: REITs by nature can be very lucrative because they are obligated to distribute the vast majority of their income to stockholders.

9.Referral associations- Textbook def: Associations that refer guests to other participating members. My example:  A overbooked hotel in referral association will gladly suggest a fellow member hotel to would be guests.

10.vacation ownership- Textbook def: Offers consumers the opportunity to purchase fully furnished vacation accommodations in a variety of forms, such as weekly interval or points in a point-based systems, for a percentage of the cost of full ownership. My example: Timeshares are a popular form of vacation ownership.