Contemporary hospitality

Student:

Assessor:

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 TABLE OF

1.1Introduction............................................................................................................................3

1.2................................................................................................................................................6

1.3................................................................................................................................................8

2.1..............................................................................................................................................10

2.2..............................................................................................................................................11

3.1..............................................................................................................................................14

3.2..............................................................................................................................................12

4.1..............................................................................................................................................19

4.2Conclusion...........................................................................................................................21

Bibliography.............................................................................................................................24

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Introduction

The hospitality industry involves businesses within the foodstuff services, housings,
recreation, and performing sectors. It is one of the richest production, and frequently rest on
accessibility for free days, the one-use salary. Businesses are developing wildly. This industry
includes restaurants, gardens, different dining accomplishments and view of the client service.
Appreciations of the functions in the hospitality industry must be material on existing
construction. Also, the staffing process in the business, recent developments that affect the
hospitality and to be able to identify the possible trends and progresses.

1.1

The hospitality industry is one of the oldest businesses in history. People have always gone
out to from time to time eat, travelling and go to vacations. The separation of profitable
institutes, attentions into circumstance that housing and foodstuff, and beverage through a
charitable human discussion. There is contemporary in environment and assumed to improve
the collective well-being of the gatherings concerned.

Hospitality business includes:

Hotels
Restaurants
Pubs
Bars and nightclubs

Hotel - A profitable, institution, providing, housing, meal time, and other visitor service
station. In common, to be named a guesthouse, an agency requirement is to have at least six
rooms, minimum three of which must involved private restroom. Though hostels categorized
into 'Star' classes one star to five star. The agreement with customer requests is volunteer.

Restaurant - establishment that organises and serves meals and beverage to clients in return,
they pay for it. The food is usually served and eaten on premises, or the restaurants offer a
delivery services.

Pubs - are a drinking formation essential to the values in Britain, Ireland, Australia,
Newfoundland, Canada and New Zealand. The pub could be the primary point of the society.

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Bars and Clubs - Bars and nightclubs offer alcoholic and non-alcoholic beverages, and some
of them give food or snacks. Nightclubs played music and have dance zones. Clubs charge an
entry payment.

For example, Mc Donald has restaurant and serve to persons at one-hundred

republics. Outside financial prudence include price for each component and its determined
by the scope of the business. The internal economies involved cost per unit and the extent of
the single firm. The scale of hospitality provides a huge business right to use to a significant
market by letting them function with a countless geographical range. The scope involves the
advantage cost that companies shows the range of manufactured goods or distribution of an
only amount produced. It can rise from the involvement or cooperative operation of
contributions and displays the decrease in the unit price. Mc Donalds has a big diversity of
products and services that include different meals, from beverages to burgers, chips and
French fries.The accommodation of Mc Donalds that people can notice is the 5-star
annotations on the front door. All the regulators are for healthiness and safety completed. The
employees are polite, and you can feel the warm welcoming and great customer service.In
addition, the facilities achieve in conditions of technology because there is free wi if for
internet connection for the clients. The restaurants are clean and enjoyable place where you
can eat and take a break. One other hand, the amount of customers in bars compare number of
Mc Donalds clients are much more because the restaurant works day and night, and the bar
works only in the night. As well the restaurant offer and the serve diversity of foodstuffs in
standings of promotional suggestion. Every month the manager make rotational offers of the
novel products and make different advertising campaign. The media supports the introduction
and the promotions of the products. Not only the restaurants represent diversity of food and
burgers, but also the client has a choice. In the bars, the managers could offer only brochure
free entrance and the alcohol and the food is with the same cost.
According to dspace.mit.edu (2012) in Structure in the hospitality industry, The
hospitality industry and its scale is imperative to the economics of UK. The sector of travel,
tourism, hospitality and vacation is the largest employer in UK. This fact makes UKs
industry one of the 5th economic powers today. Structure of the hospitality industry, The scope
includes fourteen different industries such as hotels, gambling games, restaurants,
etc.Diversity of the industry includes a variety of products and services. Central determination
of hotels is to make available travellers with somewhere to stay, food, bath, and related
services and goods. The primary products offered by hotels, restaurants, pubs, clubs and

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contract catering businesses are food and drinks. Accommodation of the hospitality involve
hotels, guest houses, bed and breakfasts and hostels. Hotel accommodation separated from the
bedrooms and the public areas. The more luxurious hotels will have several features in their
rooms things like breakfast in bed or tourist (budget) hotel.

1.2

The operational structure of Mc Donald restaurant and bars are significantly

different. For example, Reflex bar is open for visit most of the week. The functional team in
the bars include security guard who checks the identity of every single client. The staff must

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be sure that they are in the correct age because the institution serves alcohol drinks. Inside
there are second safe keeping person who allocated in captivating the entry payment from
each consumer who stay at the bar. Also, in the bar there are the bartender and the serving
crew, their part provides an additional friendliness and provide well-organized package of
services to the purchaser. The employees inside in the bar are polite and plentiful to serve in
desires of the client. The organizations are:
Tall organisation has relatively high number of layers and tend to have narrow spans
of control
Flat structure has relatively few layers and tends to have broad spans of control

Matrix structure brings together workers from numerous parts of the companies to
concentration on a particular project. Staffs complicated job simply part-time in the
array structure and devote the rest of their time carrying out their regularly assigned
task.

McDonalds has a Matrix Organization in its senior top management and the restaurant
level.

Fig.1 Flat structure organizations - examples [by tibbr.com (2012) in How Fortune 100 Companies are
Flattening Hierarchies Through Enterprise Social [Online] available from:
http://www.tibbr.com/blog/topics/enterprise-social-network-topics/why-are-leading-organizations-turning-to-
a-flatter-organizational-hierarchy/?goback=.gde_3977473_member_99926731 ]]

The British Gas has a tall organizational structure and it is large organization such as:

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Fig.2 tall organizational structure of British gas [by businesscasestudies.co.uk (2014) in
Roles, responsibilities and career development [Online] Available from:
http://businesscasestudies.co.uk/british-gas/roles-responsibilities-and-career-
development/organisational-structure.html#axzz3SscEnlwq ]

1.3

Hospitality-related organisations and professional bodies:

British Hospitality Association

The BHA is representing hotels, restaurants and food service providers. They aim to deliver
real returns for our members, positively championing the industrys priorities through
partnerships with government and other associations and organisations.

1. Economy support and helpful fiscal atmosphere for UK business to grow in the
circumstance of the global race

2. Employment - to bond the crack between schooling and business to shape skillful
employees for the hospitality

3. Clever instruction - counseling management, decreasing the weight for expensive

control with nationwide stages

4. Sustainability - helping with the progress of the economics,

5. Health - determining sector; answering for the community division program,

improving services for the customers

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 Springboard UK

The Springboard Charity is a forerunner in for over 20 years, have been serving beginning,
jobless and in need individuals develop their views for a profitable comfort. They deliver
prospects for supportable hire. United Kingdom provides to the capable one the occasion to
ensure the superior employment profits. Organization provides the international students to
have a working permit visa to finish their diploma. According to the government, in this
country they ensure to support the public funds for the development of the industry.

2.1

For this task, the restaurant and a bar is a proper example of chosen. The restaurant
operates day and night, and the club/bar operates only in the night. The investigation is on The
Mc Donald and the reflex bar. The significant problems for this 2 are that the restaurant parts
and obligation are binds with training the staff because it works with the several structures of
trainees. They include part-time and full-time job, or most of the employees are a diversity of
foreign workforces. Although in the bar, the workforce is frequently employed because the
bar needs people with good communication skill in English then the workers in fast food
service. Also the foods and drinks that the Mc Donald offer are different. In the restaurant, the
adults and childrens go to drink and eat while in the bars there only adults that drink alcohol
and wine and the food there is only some snacks. Also, the various kinds of client approach in
this two hospitality institution. The differences in huge, because customers in the restaurant
go to eat. The accommodation in the bar for the customers helps to enjoy and take the
pleasure of the music there. The customers go dancing and making parties or birthdays. The
restaurants placed in locations where more people can go. On the other hand, the bars are
sited mostly where the police could react quickly.

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 2.2

In this industry, the roles and accountabilities of the employees for individually
establishing are a domineering used for all industry. Standards include separate requirement.
The boss at the enterprise is the store manager of a restaurant with the support of the
assistant director. The junior manager distributed the changed task for the shift managers
on a different schedule and different job. The staff must be well trained and the managers to
develop them. They finish the measurable gather approving to the understanding of the store
manager, and this is an example of the workplace as administers in restaurant like Mc Donald.
The employment effects on the problems of this industry. These problems include the priority
of trust that the employee could get more benefits because he or she takes more shifts or
spend more time on work. Also, more spend hours in the work are an excellent opportunity to
show and to promote yourself as a worker. This factors could lead to the next level of
accomplishment so you as skilled and trained employee could lead the crew, and you must be
a role model. The roles of the workers include their responsibilities that are bind with
achievement for the control of the food. The kitchen crew cook the meals, and they should
follow the flow of business. If it's busy on the unexpected days kitchen staff must be proactive
on their duty to support the proper process of hot and good quality of burgers. In the chicken

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the staff should be connected to each other meaning, The food must cook well, and they could
support in the fast way to serve the food to the clienteles. The serving crew follow steps in
the hospitality industry to satisfy their needs.They must be polite to the clients. The
welcomeness to clients its critical. The serving team must quickly take the order from the
customer. At last the staff get the payment, and they must present the provisions and to make
last greet for goodbye to the clients.

ASSISTANT RESTAURANT MANAGER

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Cooker

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DINING SERVER AND KITCHEN CREW

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3.2

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 According to Mathieu Chanoux (2012) in Current and Future Trends in Tourism and
Hospitality- The present image of the hospitality industry, before establishment in hospitality
are very limited in terms of, time of business, types of business. Now days I could
differentiate the significant issues that change the creation in the hospitality because now they
can serve a longer time for food and beverages industry even in the hotel accommodation as
well. For example, there are various current trends present in the housing sector. People have
been much conscious about their health as a result of which they are attracted to healthy
eating or the organic food.Innovations in technology are also one of the current trends. Due to
inventions of new technologies the life of people has become easier.The term globalisation
has also created an impact on the hospitality industry where people are thinking at the time of
expanding their business all around the world like Accor groups. They are opening their hotel
branches in most of the countries. Not only actor most of the leading hospitality brands are
expanding their business all around the world.Consumer spending is also one of the current
trends.People are tending to spend more money as disposable income.Making bookings
through the website reservations is also the trend that contribute to flourishing the hospitality
industry.People can easily book the rooms in the hotels. The current trends have positive
impact on the hospitality industry.

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TASK B

3.1

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Fig. 2 operational, managerial and legislative issues

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 According to business.qld.gov.au (2014) in Food and beverage industry regulations
and compliance- On 13, December 2014 a new law came up, that requires food
businesses to provide allergy information on food sold unpacked. That will be a legal
requirement to provide clear information about allergens on each of the menu items.
The staff can provide verbal information, but written confirmation about allergies
must be available on request. This will require extra staff training but also will affect
suppliers who will be expected to provide accurate information about each product.
In UK budget for 2014 duty on spirits and cider has been frozen. Alcohol duty
escalator has been scraped, and 1p has cut tax for pint of beer. This will bring relief
to pubs sector, struggling due smoking ban, strict drink driving law and changing
customer trends pubs closing rate went up from 24 to 28 per week in 2013. New
duty will make visiting them more affordable, supporting and preserving produce of
traditional beers, ciders and whisky. Other key factors in 2014 budget are to keep
apprenticeship grants for small businesses and doubling investment allowance that
will help to start and grow businesses, invest in people and to create new jobs.

According to business.qld.gov.au (2014) in Food and beverage industry regulations

and compliance - The normal working activities of the food safety first must meet the
requirements of the health and security regulations. For the organizations with 3 stars not

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lower than that and for the big companies like Mc Donalds and many other big institutions
must be categorized a 5 stars from the health and safety regulatory board.

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b)A justification of predicted future trends and developments in hospitality (AC 4.1)
Key trends:

* Growth in emerging markets

* Importance of consumerfacing technology and the sourcing

* Growing importance of the sustainability

* Development and retention of human capital

Emerging markets

Due to risk of over- supply of upscale product, growing middle classes and recession, there
are needs to develop mid-market and budget product. Demand for supply more budget
conscious travellers are growing, especially when occupancy of upper end of the market is
falling.

Frits van Paasschen 2013 Half of humanity is middle class... That middle class needs hotels.

Main factors on changing customer trends

Current recession is changing values and behaviours among customers, who have become
more cautions and changing their spending patterns, which is reflected in future hospitality
and tourism trends.

In last years technology and growth of social media were helping customers become more
and more knowledgeable and aware about the market. With quickly growing mobile apps
technology, widely available 4G network and websites like trip advisor we can clearly see that
in the future customers will become very well informed. As a result clients will have high
expectations about services and products. Technology also drive trend for special offers and
vouchers which increase competition and rise discussion is that really create locality to the
brand.

Sustainability

Sustainability will play increasing role in determine customer preferences, will become
business norm. Growing importance of sustainability is social issue. Regarding to Deloitte
report whole tourism sector contributed in estimated 5% of global CO2 emission. (40% of that

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belongs to air travel and 21% to accommodation). Hospitality industry is vulnerable to water
shortages, relies heavily on build assets and consumes significant amounts of electricity.
Those factors ensure that sector will be impacted by sustainability issue in the future.
Currently we can find sustainability initiatives in operational changes such as linen or towels
re-use programs, energy and water saving programs, development programs such as green
building programs and certifications.

Marriott already have ten year water and energy consumption reduction targets per available
room, established green goals and green sourcing programs. Big chain restaurants companies
like Whitbread, M&B or Wagamama already have strict policies when its comes to waste
disposal and recycling, which confirm that sustainability is one of strategic priorities.

Development and retention of human capital

Turnover rate is expected to increase rapidly as the economy begins to pick up. Regarding to
Deloitte report average hotelier spends 45 % of operating expenses on labour cost when
turnover in industry is as high as 31 %, nearly twice the average rate for other sectors, true
cost of turnover is even higher: As economy recovers businesses will need to develop new
talent programs and solutions targeting reduction of staff turnover. Table below shows
employment projections to 2020 by occupational group, using accommodation and food
services data as a proxy for the sector.

c)An impact analysis for the predicted trends and developments (AC 4.2)

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SOURCES:

Bighospitality (2014) in Trends and reports [Online] Available from:

http://www.bighospitality.co.uk/Trends-Reports [Accessed: 5 February 2015]

People1sr.co.uk (2014) in Organisations and professional bodies [Online] Available from:

http://www.people1st.co.uk/ [Accessed: 3 February 2015]

Instituteofhospitality (2014) in Institute of hospitality [Online] Available from:

http://www.instituteofhospitality.org/ [Accessed: 4 February 2015]

dspace.mit.edu (2012) in Structure in hospitality industry [Online] Available from:

http://dspace.mit.edu/bitstream/handle/1721.1/77122/825109312.pdf?sequence=1[Accessed:
6 February 2015]

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Mathieu Chanoux (2012) in Current and Future Trends in Tourism and Hospitality [Online]
Available from: https://prezi.com/nit320-ykcqw/current-and-future-trends-in-tourism-and-
hospitality/ [Accessed: 3 February 2015]

According to Soultana (Tania) Kapiki (2012) in Current and Future Trends in Tourism and Hospitality
[Online] Available from: https://www.academia.edu [Accessed: 3 February 2015]

Pavlos Stavrakakis (2014) in Trends and developments in the hospitality industry: Exploring
managerial perceptions, and organisational actions [Online] Available from:
http://www.northors.aau.dk/papers/Pavlos-Stavrakakis.pdf [Accessed: 3 February 2015]

The Caterer and Hotelkeeper (2001) in The Caterer and Hotelkeeper Guide to Money Matters
for Hospitality Managers [Online] Available from: https://books.google.bg/books?id=-
byJ3Ek93TsC&pg=PA238&lpg=PA238&dq=The+Caterer+and+Hotelkeeper+hospitality&sou
rce=bl&ots=zbBpHLyVTB&sig=nB0ZNyV82sMViKM6fP3MV2Hhpz0&hl=bg&sa=X&ei=i
KnTVL-6AY3uaJfOgoAK&ved=0CDoQ6AEwAw#v=onepage&q=The%20Caterer%20and
%20Hotelkeeper%20hospitality&f=false [Accessed: 3 February 2015]

business.qld.gov.au (2014) in Food and beverage industry regulations and compliance

[Online] Available from: https://www.business.qld.gov.au/industry/food/food-and-
beverage/food-beverage-regulation [Accessed: 3 February 2015]

Namkung & Jang (2007) in DOES FOOD REALLY MATTERS IN THE EATING OUT
EXPERIENCE IN RESTAURANTS? [Online] Available from:
http://pc.parnu.ee/~htooman/EuroChrie/Welcome%20to%20EuroCHRIE%20Dubai
%202008/papers/DOES%20FOOD%20REALLY%20MATTER.pdf [Accessed: 3 February
2015]

Dube, Renaghan, and Miller (1994) in Measuring customer satisfaction for strategic
management [Online] Available from: http://www.cob.sjsu.edu/kallis_j/handout%206.pdf
[Accessed: 3 February 2015]

Sulek and Hensley (2004) in Evaluation Of Restaurant Service Attributes And Their
Contribution To The Mature Customers Satisfaction [Online] Available from:
http://scholarworks.umass.edu/cgi/viewcontent.cgi?
article=1230&context=gradconf_hospitality [Accessed: 3 February 2015]

Pictures:

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Fig.1 Flat structure organizations - examples [by tibbr.com (2012) in How Fortune 100 Companies are
Flattening Hierarchies Through Enterprise Social [Online] available from:
http://www.tibbr.com/blog/topics/enterprise-social-network-topics/why-are-leading-organizations-turning-to-
a-flatter-organizational-hierarchy/?goback=.gde_3977473_member_99926731 ]]

Fig.2 tall organizational structure of British gas [by businesscasestudies.co.uk (2014) in

Roles, responsibilities and career development [Online] Available from:
http://businesscasestudies.co.uk/british-gas/roles-responsibilities-and-career-
development/organisational-structure.html#axzz3SscEnlwq ]

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