Hospitality commercial sector

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Contents

Task 1 1

The scale of outlets 1

The scope and diversity of service sector 1

Task 2

Organizational structure 3

Organization chart for the Le Meridian hotel 3

Organization chart for small hotel 7

Task 3 8

Michelin rating system 8

AA rating system 9

General meaning of rating by stars 9

Red star awards 10

Diamonds 13

Tick 14

Task 4 15

Marketing 15

Financial planning 15

Human resources 16

Technology 16

Bibliography 17

Commercial Sector Assignment

Task 1

The scale of outlets

Restaurants are organized into groups in chains or franchise organizations or stand alone as independents. Also they can be grouped in coompanies and different organizations.

Private company- a type of company who offers its shares to the public? All companies that are not public are private companies. Private company tends to be used for smaller businesses.

Public limited company (PLC) – a type of limited company whose shares may be offered for the sale to the public. It is similar to a corporation and it is often more flexible from ownership, suitable for smaller companies with a limited number of owners.

Chain outlets- are a raange of retail outlets which share a brand and central management and selling the same merchandise, usually with standardised business methods and practices. Such stores may be branches owned by one company or franchises owned by local individuals or firms an

nd operated under contract with the parent corporation. Features common to all chains are centralised marketing and purchasing, which often result in economies of scale, meaning lower costs and presumably higher profits.

E.g. hotel chain- a group of hotels managed together under a business arrangement known as franchising.

International -an international organization, or more formally intergovernmental organization (IGO), is an organization whose members are sovereign states, incorporated under the act is exempt from taxation. Non-governmental organizations- (NGOs) are private organizations that can also be international in scope. Generally and correctly used, however, the term “international organization” is reserved for intergovernmental organizations only. Membership of organizations (global organizations) is open to all the nations of the world.

Group- a company is a member of thhe same group as another if it is the subsidiary of the other or both are subsidiaries of the same corporate body, or each of them is controlled by the same person. Two companies in the same group are called related companies.

The scope and diversity of commercial sector

The scope of the commercial sector of the hospitality industry includes:

Hotels, restaurants, fast food outlets, takeaways, motels, pubs, guest houses.

All these outlets relates to relaxation, holidays, eating out and drinking.

The table on th

his page identifies and explains the products and services of 6 hospitality commercial sector outlets.

Outlets

Products &services

Hotels The products of hotels are: accommodation, food & drink. Hotels provide a huge range of services such as: room service, leisure facilities, C&B, restaurants, audio visual services, secretarial services, computer, transportation, medical, laundry service, concierge, VIP assistance, currency exchange, wake up etc.

Restaurants The product of restaurants is food and drinks. The service includes its preparation and how it will be served. These outlets also can offer the reservation services, events organizing, audio visual facilities. Restaurants are organized in chains or franchise organization or stand alone as independents.

Pubs, Bars, Clubs The product of these outlets is food & drink. The service is simple & common. The ownership is similar to a restaurant. The property can be located in different places and ranges in size from local pubs to big nightclubs. They provide the social environment, entertainment, screens, life music, etc.

Casinos

Guest Houses

and

B+B

Events Catering A casino is a facility that accommodates certain types of gambling activities. They are placed near or combined with hotels, restaurants, retail shopping, cruise ships and other vacation attractions. Some casinos are known for hosting live entertainment events, such as concerts and sporting events. These outlets ar

re providing food & drink. The size and ownership of these outlets varies from big companies and chains to independents outlets.

The basic product of these outlets is accommodation and simplified food & drink. The service known as highly personalized. These outlets are not relevant to the big chains or companies as their size is not very big, usually they are independent or franchised.

Events catering serves and provides food & drink with waiting staff. This service typically provided at banquets, conventions and weddings. The catering is covered by two different groups: independent caterers and companies with a catering business on the side. The events catering company or specialist is expected to know not just food preparation but how to make an event attractive.

Task 2

Organizational structure

Hotel properties range in size from tiny to huge. Most properties perform basically the same functions, but the way they work them varies with the property size. Hotel managers are responsible for keeping the operation of their establishments efficient and profitable. In a small hotel, motel, or inn with a limited staff, the manager may oversee all aspects of operations. However, large hotels may employ hundreds of workers, and the general manager is usually aided by

y a number of assistant managers assigned to the various departments of the operation. In hotels of every size, managerial duties vary significantly by job title. Assistant managers help run the day-to-day operations of the hotel. In large hotels they may be responsible for activities such as personnel, accounting, office administration, marketing and sales, purchasing, security, maintenance, and pool, spa, or recreational facilities. In smaller hotels, these duties may be combined into one position. Some hotels allow an assistant manager to make decisions regarding hotel guest charges when a manager is unavailable.

Organization chart for the Le Meridien Hotel

Le Meridien Hotels is owned by the Starwoods company and in each hotel of this company is employed a General Manager under whom an Executive Assistant Manager assumes responsibility for day-to-day operations. The General Manager is responsible- with a Director of Sales & Marketing, Financial controller, Executive Chef who is responsible to F+B Manager and Human Resources manager.

The importance of Sales & Marketing department is to increase when there is an over supply of rooms in a market. The Director of sales & marketing is analyzing market research done by others; proactively develop the business through local and international contacts across all market segments, to manage the sales team. Sales manager and sales persons are responsible for finding sales leads and following up on them with personal calls and booking functions.

Executive Chef is in charge of food preparation and production and of all the personnel involved in the task. He/she is assisted by sous chef, chef de partes’ and is responsible to F+B manager.

F+B manager is responsible for quality control of food, overall organization structure, budget and personnel, ensuring a sensational dining experience for guests of the hotel. Assistant F+B manager is responsible for administration, distribution and technical f+b function.

An accounting department is headed by a Financial Controller and consist of a several managers. Their function involves: accounts receivable and financial reporting and control, preparing operational systems, conducting special cost studies, overseeing the hotel’s cost control systems.

The Human resources manager is managing people in their particular section: recruitment, interviewing, training, advice and conflicts dealing.

Under an Executive Assistant Manager’s responsibility are Executive Housekeeper, Front Office Manager and Chef Engineer.

Executive housekeeper is responsible for the overall appearance of the hotel. Typical duties include the following: Supervising, training and assisting the other housekeepers in deep cleaning, laundering clothes and household linens, cooking and servicing meals, running errands, changing bed and household linens, keeping the household supplies stocked, polishing the silver, caring for household pets and general household projects.

Chef Engineer supervises the engineering staff. Together they are responsible for operating the hotel’s heating and air conditioning, for lightning, transportation systems, and mechanical equipment.

The Front Office manager controls the front desk, and it is the manager’s duty to work in collaboration with reservations to ensure that occupancy and revenue are maximized. He or she is also responsible for staff rosters, and the effective use of front office staff.

The Assistant Front Office manager’s role is to guarantee the smooth operation of the front desk. He or she handles any guest’s complaints, and taking care of VIP guests.

The Reception Manager has responsibility for allocating rooms for groups, takes charge of the actual arrival and coordinates the whole process while keeping all other relevant department informed.

The Reservations manager is in charge of the section and ensures that staff is operating effectively and efficiently. He or she also ensures that the hotel operates with a maximum occupancy and determines the levels of overbooking each night.

The duties of Chief Concierge includes: control of the concierge staff, acting as a centre for information for internal and external facilities and services, the control of messages and mail delivery, the booking of external tickets, security.

Duty Manager is responsible for maximising service, satisfaction, and repeat business, understanding of laws, responsible for monitoring and maintaining operational and health and safety aspects of the business.

Night manager responsibility is overseeing hotel operations, ensuring an excellent reception service is provided to the customers, also to be responsible for the security of the premises during the shift and to be on call in case of an emergency.

Switchboard supervisor and staff handle all incoming calls, looks after in-house paging system for staff and management operates the public address system.

Organization chart for small Hotel

It is very important to note that a small property have a functional areas, not a departments.

The general manager, for example, has overall responsibility for the operation of the hotel. Within guidelines established by the owners of the hotel or executives of the hotel chain, the general manager sets room rates, allocates funds to departments, approves expenditures, and establishes standards for service to guests, decor, housekeeping, food quality, and banquet operations.

Housekeeper ensures that guest rooms, and public areas are clean, orderly, and well maintained. They also train, schedule, and supervise the work of cleaners, inspect rooms, and order cleaning supplies.

Front office manager coordinates reservations and room assignments as well as train and direct the hotel’s front desk staff. They ensure that guests are treated courteously, complaints and problems are resolved, and requests for special services are carried out. Front office managers often have authorization to adjust charges posted on a customer’s bill.

Food and beverage manager direct the food service operations of hotels. They oversee the hotels’ restaurants, cocktail lounges, and banquet facilities. These managers also supervise food and beverage preparation and service workers, plan menus, set schedules, estimate costs, and deal with food suppliers.

Head chef organises and leads the restaurant and caters for functions, preparing food and doing basic cooking, and is also responsible for maintaining high standards of hygiene, handling deliveries and stock rotation.

The restaurant is run by the Restaurant manager who directly supervises all employees (bar stuff, waiting staff).

The duties of Head Receptionist is to provide an efficient secretarial and administrative service, be the first point of contact for all customer issues in the hotel, to be familiar with the operating budget and budgetary systems, participate in the marketing and promotion of the hotel, help to organise and manage events and sales of the products and services, receive incoming calls and route as required, provide secretarial support to the Management.

Task 3

Classification systems

Michelin Rating System

The MICHELIN® Guide, whose prestigious rating system is internationally recognized as the height of culinary success, A comfort rating: levels of comfort are rated using one to five forks and spoons ( ) to ( ) for restaurants and one to five pavilions for hotels ( ) to ( ). Those symbols only judge the comfort of the establishment. They are: the furnishings of the establishment, the service, the cleanliness and upkeep of the surroundings.

Special distinctions for certain establishments: these include stars for the very best restaurants ( to ), Bib Gourmand ( ) and Bib Hotels ( ) symbols for the best moderately priced food or accommodation. Red forks and spoons or red pavilions ( to ) are for especially pleasant establishments. The stars and the Bib Gourmand symbols judge only “what’s on the plate,” meaning the quality of products, the mastering of flavours, the mastering of cooking, the creativity of NEW YORK.

The MICHELIN® Guide, whose prestigious rating system is internationally recognized as the height of culinary success, is already published in 12 editions covering 20 European countries. Its offers a broad selection of hotels and restaurants in each price and comfort category, taking into account each country’s local environment. This rating is unique and consistent across all countries covered by the MICHELIN® Guide. It is expressed in two ways:

• A comfort rating: levels of comfort are rated using one to five forks and spoons ( ) to ( ) for restaurants and one to five pavilions for hotels ( ) to ( ). Those symbols only judge the comfort of the establishment. They are: the furnishings of the establishment, the service, the cleanliness and upkeep of the surroundings.

• Special distinctions for certain establishments: these include stars for the very best restaurants ( to ), Bib Gourmand ( ) and Bib Hotels ( ) symbols for the best moderately priced food or accommodation. Red forks and spoons or red pavilions ( to ) are for especially pleasant establishments. The stars and the Bib Gourmand symbols judge only “what’s on the plate,” meaning the quality of products, the mastering of flavours, the mastering of cooking, the creativity of the chef and his team, the value for money and the consistency of what it offers to its customers both throughout the menu and the year.

Certain restaurants deserve to be brought to the reader’s attention for the particularity fine quality of their cooking. These establishments are identified by Michelin stars, which are awarded for the standard of meals served. As Michelin often says, “The stars are in the plate.”

The star ratings are as follows:

• One star ( ) indicates “a very good restaurant in its category,” a good place to stop on your journey.

• Two stars ( ) denote “excellent cooking, worth a detour,” with specialties and wines of first-class quality.

• Three stars reward ( ) “exceptional cuisine, worth a special journey,” where diners eat extremely well, sometimes superbly. The wine list features generally outstanding vintages, and the surroundings and service are part of this unique experience, which is priced accordingly.

• The chef and his team, the value for money and the consistency of what it offers to its customers both throughout the menu and the year.

Since this breakthrough in travel technology, the Michelin Group has been dedicated to providing unbiased, accurate, clear and easy-to-understand information for the travelling customer. Michelin as the most respected arbiter of fine dining. With their unparalleled commitment to quality, Michelin publishes close to 20 million maps, atlases, travel guides and hotel and restaurant guides in more than 70 countries worldwide every year.

AA rating system (British System)

This system focuses on a consumer’s perspective on accommodation properties. The objective was to introduce a classification system easily understood by the consumer. This system is part of the description of properties seen in travel books. The American version is the AAA system. The AA Rosette Awards are given to UK restaurants annually which achieve the highest standards in food quality. Many Rosette Awards are given to restaurants within hotels, or increasingly to restaurants which provide rooms. The awards are recognised as prestigious by leading chefs, a sure sign that they hint at fine dining excellence

General meaning of rating by stars

A star is a symbol used for classification purposes. In particular, a set of one to five stars is employed to categorize hotels. Although there have been numerous attempts at unifying the classification scheme so that it becomes an internationally recognized and reliable standard, huge differences exist as far as the quality of the accommodation and the food within one category of hotel is concerned, sometimes even in the same country.

The five categories can be described as follows:

* (one star) — low budget hotel; inexpensive; may not have maid service or room service. It can be independently owned, with a family atmosphere. Services may be provided by the owner and family on an informal basis. There may be a limited range of facilities and meals may be fairly simple. Lunch, for example, may not be served. Some bedrooms may not have en suite bath/shower rooms. Maintenance, cleanliness and comfort should, however, always be of an acceptable standard

** (two stars) — budget hotel; slightly more expensive; usually has maid service daily. In this classification hotels will typically be small to medium sized and offer more extensive facilities than at the one star level. Some business hotels come into the two star classification and guests can expect comfortable, well equipped, overnight accommodation, usually with an en-suite bath/shower room. Reception and other staff will aim for a more professional presentation than at the one star level, and offer a wider range of straightforward services, including food and drink.

*** (three stars) — middle class hotel; moderately priced; has daily maid service, room service, and may have dry-cleaning, Internet access, and a swimming pool. At this level, hotels are usually of a size to support higher staffing levels, and a significantly greater quality and range of facilities than at the lower star classifications. Reception and the other public rooms will be more spacious and the restaurant will normally also cater for non-residents. All bedrooms will have fully en suite bath and shower rooms and offer a good standard of comfort and equipment, such as a hair dryer, direct dial telephone, toiletries in the bathroom. Some room service can be expected, and some provision for business travellers.

**** (four stars) — first class hotel; expensive (by middle-class standards); has all of the previously mentioned services; has many “luxury” services (for example: massages or a health spa). Expectations at this level include a degree of luxury as well as quality in the furnishings, decor and equipment, in every area of the hotel. Bedrooms will also usually offer more space than at the lower star levels, and well designed, coordinated furnishings and decor. The en-suite bathrooms will have both bath and fixed shower. There will be a high enough ratio of staff to guests to provide services like porter age, 24-hour room service, laundry and dry-cleaning. The restaurant will demonstrate a serious approach to its cuisine

***** (five stars) — luxury hotel; most expensive hotels/resorts in the world; numerous extras to enhance the quality of the client’s stay (for example: some have private golf courses and even a small private airport). Here you should find spacious and luxurious accommodation throughout the hotel, matching the best international standards. Interior design should impress with its quality and attention to detail, comfort and elegance. Furnishings should be immaculate. Services should be formal, well supervised and flawless in attention to guests’ needs, without being intrusive. The restaurant will demonstrate a high level of technical skill, producing dishes to the highest international standards. Staff will be knowledgeable, helpful, well versed in all aspects of customer care, combining efficiency with courtesy.

Red Star Awards

AA star classifications are usually depicted in black on signs and in the AA’s guides and electronic products. However, at each of the five classification levels, the AA recognizes exceptional quality of accommodation and hospitality by awarding Red Stars for excellence. A hotel with Red Stars, therefore, has been judged to be the best in its star classification and recognizes that the hotel offers outstanding levels of comfort, hospitality and customer care.

Red Stars are awarded to consistently outstanding establishments in terms of Hospitality, Service, Food and Comfort instead of percentages.

The Royal Automobile Club (RAC) makes the following Awards for

Hotels, Guest Houses and Bed & Breakfast Establishments

Listed: Minimum standards of facilities in public areas and bedrooms

Acclaimed: Higher standards than Listed with 5

. . .

Task 4

Hospitality Departments

Marketing

Marketing is a basic business function covering a wide range of activities. It includes studying markets, planning products, pricing them, promoting them, selling them, and then delivering these products to customers. Marketing is about understanding the customer and ensuring that products and services match existing and potential customer needs. Marketing is also about looking at ways of influencing the behaviour of customers. It involves anticipating and identifying customers’ needs, and then supplies products and services to meet the needs.

Success in the hospitality and recreation business often hinges on marketing. It’s not enough to create an attraction with delicious food, comfortable guest rooms, and fun activities. If the public doesn’t know about it or doesn’t think it’s a good value, the operation will fail.

The role of marketing in hospitality is to define and implement a regional marketing strategy to exceed annual targets, to monitor market trends, develop the websites, audit hotel merchandising and liaise with the press, tourism associations and business contacts.

Growing number of hotel marketing departments are shifting more of their sales budgets to activities that involve person-to-person contact, like trade shows, meals and entertainment, rather than advertising, brochures and billboards. In fact, this marks that hotels have cut their local advertising budgets. Use of the Internet became a marketing tool by the hotel industry.

A SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture or in any other situation requiring a decision. It involves monitoring the marketing environment internal and external to the company.

Financial planning

A profit is the difference between sales and costs. Most businesses are not expected to be profitable from day one, but they are expected to have a plan outlining when they are likely to become profitable.

Financial planning should ideally cover all areas of the client’s financial needs and finally to end with the achievement his goals and objectives in each of the targeted areas.

Provide financial forecasts. This need to show that business is viable and can generate enough cash to cover costs and become profitable. Include details about how it is planned to fund a business. Careful planning at the start-up stage helps to ensure that you exit the hotel business on its own terms. Outlining the exit strategy in business plan can be beneficial financially and for the health of the business.

Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against that plan.

Businesses should also have proper financial controls. Keeping accurate records helps you fulfill your legal requirements. It will also help you monitor your financial position and keep a tight control on costs.

Human Resources

Hospitality is an industry that relies people. Hotels succeed only with the right personnel in the right places. It is the responsibility of the Human Resources Department to find and retain these people. Within Human Resources, the staff performs the following duties:

• Payroll

• Benefits

• Recruitment

• Career development/training

• Conflict resolution

• New hire orientation

Recruitment of new employees is perhaps the most important role of Human Resources. Greeting and implementing various training and career enhancement programs has been proved to improve employee retention and reduce turnover.

Human resources can also play a vital role in employee conflicts with each other and conflicts involving superiors.

Technology

The applications of technology include better energy control and more mechanization of existing equipment to make control of the production process easier. In management – computerized point of sale systems not only make a service process easier for employees, they save managers work by preparing routine reports, tracking inventory, stock levels and costs and determining which items are producing a profit.

Computers and communication systems already had a pronounced effect on hospitality operations. Point-of-sales Systems have led to an explosion in management information for both operational and marketing planning. Computer chips are used to automate the control of heating and air conditioning. Company meetings via closed circuit television- using satellite transmission- are increasingly common.

Computers are used extensively by hotel managers and their assistants to keep track of the guest’s bill, reservations, room assignments, meetings, and special events. In addition, computers are used to order food, beverages, and supplies, as well as to prepare reports for hotel owners and top-level managers. Managers work with computer specialists to ensure that the hotel’s computer system functions properly. Should the hotel’s computer system fail, managers must continue to meet guests’ needs.

Bibliography

Aslett, M.,Gower, R. (2000) Hospitality and Catering, Longman Vocational A-level, Pearson Education.

Blaker, K., Huyton, J. (2001) Hospitality Management: an Introduction, Hospitality Press Pty Ltd.

http//:guide.symplicity.com/resources/

Powers, T. (1995) Introduction to the Hospitality Industry, 3 Ed.

Powers, T. (1995) Introduction to Management in the Hospitality Industry, 5 ed., Wiley service management series

www.businesslink.gov.uk

www.caterer.com

www.tander.com

www.theaa.com

www.michelinman.com

www.wikipedia.com

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