Wyndham Plans TRYP Hotel in New York

Founded in 1981, Wyndham has been around now for almost three decades. After 29 years of catering to the needs (comfort and pleasure) of its customers, they are now on a new venture realizing the new demand of hotel rooms. Even though we are still in the economic recession, the hotel industry has been doing much better those past few months. This is why “Wyndham” took interest into investing into a new hotel called TRYP in midtown Manhattan that plans to open its doors in April 2011.

Last week, I interviewed a Human Resource Specialist from the Ritz Carlton who mentioned her company’s rapid recovery after the industry’s big hit. Hearing it from someone working on the actual field makes it sound more realistic. Therefore, I can now clearly state my opinion on Wyndham’s investment plans in NYC. I believe that they are taking a good step since not only there now exist a greater demand for hotel rooms, millions of Europeans visit Times Square every year. Already being well known in Europe, Wyndham are more likely to attract the majority of those Europeans over any other American hotel chains.

http://intransit.blogs.nytimes.com/2010/11/16/wyndham-plans-tryp-hotel-in-new-york/?scp=1&sq=hotel&st=cse

Takeaways from Interview with Crystal Weaver, owner of Prince Street Cafe

Entrepreneurship is about being self-motivated and setting goals to achieve for yourself, even if you don’t have much experience in the field you are interested in. As Crystal Weaver described from her experience starting Prince Street Café, “It's difficult to plan for something you've never done before and have no experience in.  I had no prior food-service or coffee shop experience.  However - early on in my life - I was taught to solve problems, figure things out, and overcome obstacles.  I was taught to work hard and never give up.  I always wanted to do my best and find a better way...  And I understood what it meant to sacrifice personal immediate pleasure for long term gain.  So there were many obstacles along the way - needing lots of money to get started, learning to organize a food service establishment, and manage 20+ people.  Management of people is my biggest challenge.  I am warm and friendly with my staff and sometimes it's hard to be tough and require a lot of them.”        

I was surprised to find that some companies have actually benefited from the economic recession.  If the environment is right and the competition is not overwhelming, companies can still thrive.  “In some ways I think it has strengthened it.  It seems that the people who typically ate out at expensive $20 per person places... now come to us and pay $10 and they're happy because we provide a nice clean environment. We haven't experienced any loss and in fact continue to climb in our sales.”

I also learned about what an employer is looking for in a potential employee.  It seems that many employees look for similar traits in their employees.  “I look for personality.  A bubbly happy person who can easily make conversation.  I look for people who seem to be thoughtful and compassionate and care about others.  I look for people to show up early for their interview and present themselves well.  I am particularly happy when they show that they are passionate about coffee and people and are super good at multi-tasking.”

Pemberley Tea Shop

The following is information taken from an interview with Nenita Miller, co-owner of a privately owned Tea Shop located in Lancaster, Pennsylvania.

As a tea shop, there is competition with the big brand name coffee companies such as Starbucks, but Pemberley Tea Shop rarely feels the strain of this competition. Nenita stated that “we have our own kind of clientele, we are the only tea shop around and what we have here is very unique because we make everything here, and the people we serve come here specifically for that.” However,Nenita admitted that the only clients they may lose to companies who offer coffee as well as tea are the international students from the local college.

The majority of the customers of Pemberley Tea Shop are middle aged and elderly people, ranging from in the neighborhood to as far away as Delaware and Baltimore. As an advertising strategy, Nenita admitted that when they were first starting, “we advertised in every magazine”. However, now that they have developed a secure clientele base, Pemberley Tea Shop has set up a register for their clients to sign up and receive “the latests news and mail.” This is in an effort to advertise to their older patrons who do not use email, and to keep customers in touch and interested. Pemberly Tea Shop also still advertises in the local newspaper website and magazine in order to attract newer and younger customers.

While starting their company, Nenita admitted that there were many obstacles facing them. One of the biggest obstacles was finding the perfect location to open a tea shop, so that it received a lot of attention and interested clients. After they found a location and had already developed a solid customer base, Nenita admitted that “we had problems with our landlords. A new person bought the building and wasn't a good landlord. He wanted to kick us out of the building, but realized he needed tenants. This cost us some customers who thought we were leaving, and three years later came around and saw we were still here.” However, the location turned out to be perfect, located right by a college campus and an up and coming hotel, whose customers often come and eat lunch at the tea shop.

Price increase in food industry -John Kwon-

Increasing price for the product had happened with every field of business. There are several reasons for increasing price for products, and depends on how reasonably the price for the product is increased determines customer’s attitude towards the company. The factors for increasing price are primarily depends in increase price in ingredient, and inflation. With understandable reason for increase in price can be beneficial to the business, such as giving positive impression to its customers, and it also stands out among the other competitors.

In this article, Chipotle Mexican Grill INC was the example of a hospitality business that is managing well in terms of increasing in price. Chipotle Mexican Grill INC (CMG) is taking patient stance in its pricing strategy, which waits until the other competitors and try to adjust prices in well-suited, understandable range. Since CMG is leading restaurant in Mexican food, their policy/range of increase in price would have influence on the other “burrito chain business.”

Lastly CMG’s “Food with integrity” mantra, I believe their price changing policy is also one of their marketing methods and differentiate themselves from its competitors and in the business where all similarities exist in each company.

http://online.wsj.com/article/BT-CO-20101110-713506.html?mod=WSJ_Hospitality_middleHeadlines

Fast Food A Rising Staple

According to a survey performed Yale University's Rudd Center for Food Policy and Obesity, 84% of parents interviewed fed their children fast food at least once in the past week. Along with this survey comes data rating fast food meals from different corporations, determining the healthiest fast food meals present in the industry. Among the top healthiest meals are meals produced by places such as Burger King and Subway. Dairy Queen, however, had the worst scoring meal of all, the contents adding up to 973 calories in total.

In response to an earlier blog posting, the emergence of this data further supports the development of a law in San Francisco limiting the amount of calories allowed to be present in fast food meals targeted at young children. With evidence that as many as 84% parents feed their children fast food at least once a week, this law comes into more of a perspective for me. If parents are actually feeding their children fast food on a regular basis, it is more of a necessity for there to be laws limiting the amount of calories present in meals for younger children.

http://blogs.wsj.com/health/2010/11/08/report-84-of-parents-fed-their-kid-fast-food-in-past-week/?KEYWORDS=restaurantsKEYWORDS%3Drestaurants

Trends in the Hospitality industry

For the past two years, the hotel industry has been facing significant challenges due to the economic recession. The traveling rate of both, businessmen as well as vacationers has incredibly dropped; therefore, after the industry’s golden year in 2007, occupancy rates experienced a strong decline in 2008 and 2009. However, collected data for this year shows modest improvement from the very weak levels of the two previous years.

Those past couple of years have also been rough for the Restaurant industry; it was affected directly and indirectly by the recession. First of all, eating outside of home became an unnecessary expense that was cut due to economic difficulties. Secondly, the decline of the traveling rate during the past two years had an impact on the Restaurant industry as well. According to the National Restaurant Association’s 2007/2008 Operations Review, travelers accounted for a median of 15% of sales at quick-service restaurants, 20% at casual dining establishments, and 40% at fine dining restaurants.

The hospitality industry has been one of the greatest victims of the recession. However, the economy’s ongoing recovery has shown great improvement. Thus a full recuperation promises new large revenues for the hotels, restaurants, and leisure industry.

Bedbugs Proving Problematic for Hotels

            This article addresses the issue of bedbugs in hotels, in particular the Waldorf-Astoria.  A prestigious establishment such as that one would not be expected to have bedbugs, yet two complaints have been formally filed, with patrons claiming that they suffered bug bites and were faced with infestation of their homes upon leaving the hotel.  Bedbugs are a disgusting occurrence to say the least, but it is especially troubling in the hotel industry, where expensive lawsuits and compensation to unhappy customers can lead to hundreds of thousands of dollars lost.  In this economy, it is crucial for hotels to have a solid customer base that will return and pay more money at their particular establishment.  If the hotel develops a reputation for having bedbugs, no one will want to return, meaning lost revenue and customer following.  Also, in order to ensure that the customers will not be upset and spread a negative image, the hotels must put large amounts of money into compensation for such a minimal problem. 

Bedbugs may seem like a small issue in the grand scheme of things, possibly even something to laugh at, but for hotels, these tiny critters can cost big bucks and can spread like wildfire, carrying on their backs an image that could cause permanent harm to revenue and income.  They are just a minor example of problems that can arise in the hospitality industry, and the necessity to keep customers satisfied with their stay at hotels.  If even the tiniest thing upsets a customer, that could mean losing the money they would spend, and, possibly, as in the case of the bedbugs,  facing an expensive lawsuit.

http://blogs.wsj.com/metropolis/2010/11/04/waldorf-astoria-faces-second-bedbug-complaint/

Food price changing. John Kwon

This article contains concerns for increase in prices of staples such as milk, beef, coffee, cocoa and sugar. Hence some food makers and retailers will try to pass the price weight on the customers for costs for ingredients. In lots of food business, price for the ingredients have raised in small percentage, however the effect that the price changed impacting the food business to change the price higher and its becoming severer. Also with the downfall of economy, people’s unwillingness to go out spend money on dinning, and other leisure can sometimes become the reason for long term downfall of economy and increase price of products and as well as ingredients. Some experts are concerned about the fact that food price are rising faster than overall inflation, which also can cause the world’s food trading and the downfall of whole trading relationships and economy. food price changing is inevitable when it occurs in naturally over time, however sudden rapid changes in the price might cause whole food related business, and in wider picture, the nation’s and world’s economy can go through downfall.

http://online.wsj.com/article/SB10001424052748704506404575592313664715360.html?mod=WSJ_Hospitality_leftHeadlines

Increased Food Costs

This article discusses the recent increase in prices of staple food items, such as bread, milk, and sugar.  Restaurants have also begun raising their prices as a result.  Another result of such price increases is that Americans are changing the way they spend throughout the country.  People are staying in more, eating at fast food restaurants rather than expensive restaurants, and are switching the places where they shop for groceries. 

            These price increases are presenting a problem for food companies in this economy.  It is crucial that people continue spending, and, as stated by BJ’s chief financial officer Greg Levin, “In this business, you can't just raise prices without improving the overall dining experience.”  Companies need to change what they’re doing in order to continue attracting customers, especially customers who are choosing to save their money and stay home rather than dine out.  This is yet another example of a way that companies need to constantly change and update their methods of business to keep up with the consumers’ needs.

http://online.wsj.com/article/SB10001424052748704506404575592313664715360.html?mod=WSJ_Hospitality_leftHeadlines

Stricter Health Laws take the happy out of "Happy Meals"

Recently, the San Francisco Board of Supervisors voted 8 to 3 in favor of a bill that forces fast food meals that come with free toys to not contain any more than 600 calories. Another sector of the bill states that each individual item in the meal cannot contain more than 200 calories, and that it must include fruits and vegetables, along with a beverage with limited amounts of sugar. If this bill is approved, it will take effect in December 2011, much to the chagrin of several fast food executives.

Fast food executives such as McDonald's franchise owner Scott Rodrick have made it public knowledge that they are not happy with the decision of the Board of Supervisors, claiming that it will "take the happy out of Happy Meals". Even the National Restaurant Association publicly opposed the legislation. On the other hand, supporters of the bill want to stress that the bill is important in "improving the nutritional value of kid's meals and addressing childhood obesity".

In my opinion, although this bill is aimed at helping fight obesity and health risks, it should not be made into a law. It is unfair to subject fast food restaurants to changing their menus and legacies to fit new laws on health. Happy Meals in particular have been around for many years, and changing that now is unfair to the corporations. Although I believe it is crucial to fight childhood obesity, I think that there are other ways to go about doing this, such as changing the meals served in schools and the vending machines available to students, rather than changing the entire fast food system.

http://blogs.wsj.com/health/2010/11/03/san-francisco-cracks-down-on-happy-meals-and-their-ilk/?KEYWORDS=restaurants

hotel connoisseur -- a hot job appears in this industry

Hotel connoisseur is a nice job that can make a good money. The job is enjoyable. People paid for sleeping in a hotel then report the feeling. Usually, they will stay in the hotel for one night then make judges about the conditions, service and comfort level. The report will be really simple, like: i love the bed, so comfortable for sleeping or the mirror in the bathroom is not clean enough. The hotel connoisseur become a hot job in China recently. Because it is "easy", nice-paid job. It creates for digging more comfotable, special hotels. In China, there are a lot of hotels that build in China culture. Not like Hyatt, they are not big, globalized hotel. The hotel connoisseurs' tasks are finding these kind of hotels, then spend one day to try how they feel during the day. At last, they will write the report for vistors.

The same kind jobs have been created before. In 2006, the Britain budget hotel Travelodge had recruited the Director of Sleep. The director of sleep is just like the hotel connoisseur to testing how comfot is the hotels in their company. This kind of job seems so easy. But it is a tired job. The hotel connoisseur may need to stay in 10 different hotel that localed in different cities in a mouth. They must be really scrupulous. They need to judge the hotel without personal aspect. They must be considerated. They need to see every small things about the hotel, digging out all the good and bad about the hotel. So it is not a easy job. You need to pay before you get paid like always.

Differences among companies in the industry

In the lodging industry, hotels are classified from 2 to 5 stars. There exist a big difference of service among them; the more stars contained by a hotel, the more luxurious it is, the better service it offers, and the more expensive it is. However, inside each category, there are a number of competitors whose service’s differentiation is really trivial. Therefore, since competing for the exact same clientele, those hotel companies put together excellent advertising campaigns and sign alliance contracts with airline companies to gain certain customers.

The Restaurant industry resembles the hotel’s “star system”. Restaurants are characterized as quick-service restaurants, casual dining establishments, or fine dining restaurants. Similarly to hotels, those three categories differ in food quality, customer service, and comfort and environment. It’s also hard to find a difference between competing restaurants. When taking McDonald’s for example, when they introduced their chicken McNuggets, it didn’t take Burger King too long to introduce their BK Chicken Tenders.

In the hospitality industry, every competing restaurant or hotel provide approximately the same services; it is all about marketing strategies that have for goal to successfully manipulate the people and develop numerous and loyal clients.

The segmentation of the Hospitality industry

The Hotel, Restaurant, and Leisure industry often segment their targets either geographically or demographically.

During the past decades, the hospitality industry has enormously grew and expanded mostly thanks to globalization. The new integrated world has been offering extreme revenue growth in the hospitality business. Millions of people travel away from home daily meaning that millions of people are in need of temporary places to stay, eat, and enjoy every single day. Therefore, this is why the geographic segmentation is really important in this industry. For example, hotel owners would most likely invest in a hotel in New York City rather than Up-state New York. New York city has a greater population and a much higher rate in tourism that promises much greater revenue.

Hotel, Restaurant, and Leisure companies must also identify their targets based on their incomes. There exist 2-5 star hotels, as well as quick-service restaurants, casual dining establishments, and fine dining restaurants. When opening a restaurant or a hotel, one must take into consideration whether his company will be attracting consumers with high income looking for complete luxury or averaged income consumers looking for affordable services.

Similarly to the other industries, segmentation is a necessary process in the hotel, restaurant, and leisure industry. A company failing to approach this step will fail to identify their targets, which will result into unsatisfying revenues.

Ozumo: Quick & Easy Food Options

Ozumo offers accommodations that many restaurants do not.  A view of the Bay Bridge, a sushi bar, and $20 bento boxes are the factors that differentiate Ozumo from other sushi restaurants in the area and appeal greatly to professionals in the San Francisco area.  The bento boxes are “for diners who don't have time to spare on a big, family-style meal,” making them a hot commodity for businessmen and women who need to grab a quick but satisfying bite on their short lunch breaks. (Ozumo) The high prices don’t seem to bother the clientele that Ozumo is trying to attract, as they have money to spend and are willing to spend it on quick, delicious food.

Restaurants should take note of Ozumo’s idea.  As stated in my earlier blogs, “healthy fast food” is becoming one of the highest demanded types of service in America.  Nobody wants fattening junk food anymore, but they don’t always have the time to sit down and enjoy a meal.  Ozumo has the right idea in creating a quick and healthy option, and, as a result, they can still thrive with high prices.  This idea can easily be adapted and reformed to fit different restaurant styles, and it can bring in an entirely new clientele if implemented in the correct way.

http://online.wsj.com/article/SB10001424052702303738504575568814068670730.html?mod=WSJ_Hospitality_leftHeadlines

Hotel Bars to become "Social Hubs"

The executives at Holiday Inn have discovered a new trend in the hospitality industry and are jumping on board as quickly as possible. InterContinental Hotels Group PLC has unveiled a new idea, known as the social hub, in which the bars at Holiday Inn Hotels will begin to function as not only as the bar, but also the restaurant, game room and business center. Recent studies have shown that most of the visitors at these hotels are business men and women who,"are more extroverted, charismatic people who like people," (says senior VP of global brand management Kevin Kowalski). Holiday Inn hopes to create a more social environment with the opening of the "social hub", that will affect the atmosphere of the hotel, and also it's economic standing. The menu available at the hub will be more easily maintained if served by the bar staff, reducing the cost of upholding a restaurant staff. The same would go for the breakfast menu, which would develop into more a of self-serve, buffet style offer, further lowering the costs of employment for the hotel.

The idea for a "social hub" in hotels is an innovative, yet risky idea for the hospitality industry. Although I agree that Holiday Inn's may be able to save money on employment, there always runs the risk that the hub will not appeal to the majority of the visitors, and the hotel will find themselves understaffed with unhappy guests. In order to make this idea successful, I think the InterContinental Hotels Group must conduct extensive research to see if developing the hub is worth the cost. They could circulate surveys and questionnaires to ask their customers if they would be receptive to the installation of a social hub. However, in the long run, I believe that the social hub will develop into a successful aspect of the hospitality industry, and may just be the next new big trend in the industry.

Social Responsibility programs in hotel business. John Kwon

As big corporations, big players in hotel industry have tried to take their social responsibilities in their fields. Nowadays, corporations take social responsibilities not only as their duty, but also as their marketing. By taking social responsibilities, corporations often receive varieties of benefits. They get tax deductions, and they raise their reputations and values.

The methods of doing social responsibilities slightly varies depends on the companies, however, the basic concept of them are pretty similar. Most of the hotel business groups have done most of their social responsibilities focused on saving environments and eco-friendly. Examples of the social responsibilities are saving water, reduce wastes, toxins, and conserve natural resources. Some hotel companies have developed their own Eco-friendly programs and technologies, such as Kimpton hotel’s EarthCare program, which uses earth friendly products and practices throughout their whole hotel since 2005. Also, Hilton Hotel Group has its own eco-friendly program called “HER” which is Environmental Reporting Tool that was introduced in 2003. This system allows Hilton Hotels to exchange valuable environmental data about their performance and impacts between its hotels. And for Joie de Vivre hotels, they have Green Dreams program, which is to preserve the environment by educating their employees and guests.

With the eco-friendly programs, many hotel companies have taken their social responsibilities. It not only brought huge impact on environments, but also it gave customers good impressions and good reputations about the companies. And I believe this is a good way of taking responsibilities.

Starbucks Changing Business

            In light of the current economy and the tendency for people to spend less on luxury items, such as fancy caffeinated drinks, it is rare to see a big-name company such as Starbucks changing their business to hinder the speed and efficiency of their production.  The new guidelines, which were implemented very recently and which require baristas to work on no more than two drinks at a time, are designed to increase the level of personalization behind each drink made.  These changes surfaced amidst complaints that the art of coffee making has been reduced to “a mechanized process with all the romance of an assembly line” (Jargon). 

However, “the new methods have ‘doubled the amount of time it takes to make drinks in some cases,’ according to Erik Forman, a Starbucks barista in Bloomington, Minn., who says his store began making drinks under the new guidelines last week” (Jargon).  With slower production time comes longer lines, and, seeing as the lines in Starbucks are already longer than is ideal, this new process could hinder the sales and reduce the consumer pool, especially in today’s rushed world of fast food and quick business.  Although Starbucks is attempting to create a more personalized and efficient way of doing business, they may ultimately be hurting themselves, a decision which, in the current economic state, could be less than intelligent.

http://online.wsj.com/article/SB10001424052748704164004575548403514060736.html?mod=WSJ_Hospitality_leftHeadlines

Restaurants Keep Customers Guessing

Changing menus are and will always be a trend in the restaurant industry. Restaurants change their menus constantly to better suit customers, or to try new things and see what the customer reaction will be. They add items to the menu, or take things of the menu; but either way, people aren't always happy with the change. To accommodate a greater range of customers, some restaurants have even taken up the trend of having seasonal items on their menus, or limited time only offers. McDonald's is one such restaurant corporation who has taken up the trend of implementing a seasonal offer system, for such items as the Shamrock Shake. They have also begun to implement a regional and limited time only offer system, to keep their customers on their toes. The McDonald's sandwich known as the "McRib" is one such item on the menu that subscribes to the "regional" offer system. The McRib pops up randomly in McDonald's restaurants around the country, sometimes unannounced, and sometimes staying for only a few weeks. The randomness of this sandwiches arrival has become a topic of great interest to "McRib" lovers across the nation, attracting dedicated customers to go out of their way to pick up one of the sandwiches when it arrives at a location nearby.

As with McDonald's and the "McRib" and "Shamrock Shake", a new trend seems to be emerging or just further developing in the restaurant industry. Having seasonal or regional offers causes a rush of want and need from dedicated customers, and therefore can result in a quick influx of profits for restaurants who implement this system. Restaurants other than McDonald's could benefit from adapting and allowing certain items on their menus to be "limited time only". The randomness and short time span of these offers makes customers think they need to stock up on these items before they leave again for another year. This can benefit the restaurants by causing an increase in not only profits, but also an increase in customer dedication. Customers who know about the limited time only offers may look forward to buying their select items in mass quantity during the select times it is offered, and may also look to give the restaurant business throughout the year in hopes of catching their item on the menu.

http://online.wsj.com/article/SB10001424052748704696304575538373863627604.html?KEYWORDS=restaurants

THe Hotel, Restaurant and Leisure industry going green!

Due to an enormous amount of pollution around the world, global warming has become a major issue globally during the past few years. As a result, steps have been taken either individually or business-wise to support what we refer as “the green movement.” The green movement has been going on now for the past few years and strongly sustained by many industries, especially the Hotel, Restaurants, & Leisure Industry.

“Most major chains are looking for ways to integrate green into their hotels, and water and energy conservation are popular routes." Hotels have for plan to use eco-friendly air-conditioning, solar heating, and heat recovery systems to extract waste water from one system and use it in another. This sounds like a promising plan that however demands sacrifices. But have you ever thought about advantageous ways of going green for a company? Sometimes “going green” might seem like a hassle; it is however not always the case since it can be beneficial to some companies. For example, Starbucks used to serve their hot beverages in two cups in order for the customer not to get burned. A while later, a wise man came with the superb idea of creating a holding band made with recyclable papers. By taking such step, Starbucks is definitely going green, but saving money at the same time.

Another example is when lodging at a hotel and customers tend to get encouraged to go green by using the same towel during their entire stay. The hotel will be appreciated for taking ethical steps and will save money as well by having fewer towels to wash. In the business world, there are always opportunities; it just takes one to know his product, his customers, and his industry in order to take advantage of those openings and be successful.

Technology, the simplifier!

Over the past few decades, technology evolution has been increasing at an enormous pace. Technology has become so grand today that one can obtain Internet access, telephone service, and a navigation system on a single pocketsize device. This scientific movement eased, simplified, and improved individuals’ lives as well as businesses. Technology completely renovated the hotel, restaurants, and leisure industry

“Mmm! Your pizza’s here, hope you enjoy your meal!” Domino’s pizza’s online ordering system is incredible. In just three simple steps, without saying a single word, one gets to easily place an order. After choosing your desired items, you simply need to enter your address, select your payment method and then enjoy the beauty of technology. The order is automatically sent to the nearest domino’s restaurant and your then provided a “cool” tracking system which provides you information such as when you order has been received, when you pizza’s baking, when it’s out of the oven, when it left the restaurant, and when your food is finally waiting for you at the door.

Technology has become so powerful that it is now possible to easily identify room fares and menus of hotels and restaurants thousands of miles away. At their arrival, travelers most often have their rooms ready; it is also very likely that they are already familiar with the restaurants, shopping centers, attraction parks etc. in the area. Technology provides information and services in a simple, easy, and effective manner; thus ameliorating the health of every business especially the hotel, restaurant, and leisure industry.

Spa verses Spa

Destination Spas, such as the Greenhouse Spa in Dallas, Texas are facing the impact of the economic downturn, and are continually losing customers to smaller, more centralized spas know as day spas. In the past, it was a popular pastime for women (and occasionally men) to take weeklong trips to the spa, where they would sometimes pay upwards of $5000 per week to relax away from home. However, the recent trend for spa-goers is no longer to travel far from home to spend several days relaxing, but rather to take shorter, more concentrated trips at day spas located close to home. Jerry Katzoff, owner of the Greenhouse Spa attributes the lack of business to the fact that "Women are busy. They're working. We used to get the wives of CEOs. Now we get the women as CEOs."

As a result of this upcoming trend, day spas are becoming an increasingly popular luxury. One way for the hotel industry to take advantage of this trend is to jump on the "In-hotel" spa trend. Many new hotels are incorporating either very basic spa setups, or five star setups into their facilities, and therefore attracting not only customers looking to find somewhere to stay, but also customers looking to relax at a cheaper price. This new trend could help struggling hotels find their way back into the competitive market, through offering amenities before other hotels get around to it. By offering spas, hotels can increase their chances of attracting corporate customers looking to relax for a few days while still maintaining a business professional mindset.

http://online.wsj.com/article/SB10001424052748703298504575534290136712772.html?KEYWORDS=restaurants

China Lifts Yum Brands' Profit

The article I chose discusses the increasing economic success of Yum Brands, especially in China but throughout the world in general.  Although labor and economy costs have risen in the weak economy, Yum Brands has utilized “international expansion” to increase their profit margins, “particularly in China where consumer confidence remains strong.” (Solsman) Yum Brands is also sensibly focusing more on their successful chains, such as Taco Bell, and distributing their weaker chains to franchisees so as to focus their attention on the aspect that will acquire more money in the long-run. 

            Although the economy is weaker in some places than others, there are still countries and areas where the economy is thriving and people are willing to spend money on things they don’t necessarily need, such as eating out.  Yum Brands has the right idea in that they are expanding internationally to take advantage of the places that are still thriving, so that the places that are not doing as well are not lowering Yum Brands’ success as a whole.  Other companies should take note of Yum Brands economic decisions in order to be successful in a weak economy.

http://online.wsj.com/article/SB10001424052748703843804575534394015216572.html?mod=WSJ_Hospitality_leftHeadlines

Numerous job titles and yet a single goal

The Hotel, Restaurant, and Leisure industry offers a grand variety of jobs. However, there exist vast gaps between the different work titles. At the top of the company, there are executives (board members, CEOs’, vice-presidents etc.) who are accountable for risky decisions that will determine the company’s future. A bit lower, there are office workers responsible for the company’s financial exercises. Analysts along with accountants are responsible to analyze financial performance indicators such as occupancy rates in hotels or annual revenues in restaurants and casinos to determine the company’s health.

Besides the officers responsible for the broad performance of the hotel, restaurant or casino, there exist tons of small players on the actual field. Housekeeping managers, front office managers, restaurant managers, casino operations managers, security managers etc. are in charge of even smaller players such as maids, front desk attendants, bellhops, porters, cashiers, chefs, waiters, casino dealers, guards, only to name a few. As mentioned earlier, job titles in this industry vary enormously. However, no matter how different a CEO’s daily task or salary is to a maid’s, they both share a common goal and responsibility. The work of every employee is vital to this industry; it’s the sum of every single person’s work that makes a hotel, restaurant, or casino’s complete success.

New market and expansion of Hilton hotel.(John Kwon)

Hilton Hotels Corporation has put their focuses not only in U.S, but also they put much weigh on the worldwide market. For the first step, they have changed their name “Hilton Hotels Corporation” to “Hilton Worldwide.” Hilton Corporation developing about 900 hotels outside of North America, and most of its hotels are located in main cities of countries through out the world. The recession on 2009 had impact on hospitality industry in U.S, however the hotels outside of U.S had remained undamaged. Hilton Hotel Corporation had 800 hotels and 120,000 guestrooms, and only 15% of that was international hotel. However, today, Hilton International has 45% of its hotels located outside of U.S.

Some of the international hotels have the highest growth market, and it will bring Hilton great advantages, and the brand values foreign customer’s recognitions. Since the world became so connected due to advance in technologies, transportations…etc, it became possible people to travel, easily, conveniently, and faster. Therefore Hospitality business has been forming international strategies. Hilton International is a great example, and the model for expansion of international hospitality business and the new market.

Higley, Jeff, ed. "Asia/Pacific Tops Hilton's Expansion List." Hotel News Now. 29 Sept. 2010. Web. 30 Sept. 2010. <http://www.hotelnewsnow.com/Articles.aspx/4096/Asia/Pacific-tops-Hiltons-expansion-list>.

Hilton and Trump: Successful Entrepreneurs

Two influential leaders in the Hotels, Restaurants and Leisure Industry are Donald Trump and Conrad Hilton. Both of these entrepreneurs pioneered now extremely successful hotel businesses. In 1997, Donald Trump's hotel collection, Trump International Hotel & Tower opened its doors to the world. This was the first hotel of the collection, followed ten years later by the Trump International Hotel & Tower Chicago. Both of these hotels have climbed the ladder of success in regards to the luxury hotel industry. They are adorned with five-star ratings and reviews from such magazines as Conde Nast Traveler, which has rated Trump International Chicago as the "hottest new hotel in North America". In addition to his success in the Hotel Industry, Donald Trump has also made impressive strides in the Leisure Industry. Trump has developed award winning golf courses world and nationwide, such as Trump National Golf Club, Trump International Golf Club and Trump International Golf Links in Scotland.

Conrad Hilton bought his first hotel, the Mobley Hotel in Texas, in 1919 and within the next year, he had earned back his investment, by renovating the hotel and making it more efficient. With his profits, Hilton bought another hotel in Ft. Worth and another in Dallas. By 1925, Hilton had made enough profit to build his first hotel. Although the depression took a toll on Hilton's hotel business, he recovered and by 1937, he was back in the hotel business, buying various hotels along the West Coast. In 1946, Hilton created the Hilton Hotels Corporation and by 1947 it became the first hotel company listed on the New York Stock Exchange. In 1948, with the opening of his hotel in Madrid, Hilton founded the Hilton Hotels International company. By the time of his death, Conrad Hilton owned 185 domestic US hotels and 75 international hotels. Since then, the Hilton corporation has continued to grow and now owns more than 500 hotels worldwide.

http://www.woopidoo.com/biography/conrad-hilton/index.htm

http://www.trump.com/Donald_J_Trump/Biography.asp

Travel Bug Bites Again

This article comments on the fact that travel has begun increasing again, even though the economy is increasing at a much slower rate (nearly half).  “Spending on airplane seats, hotel rooms and rental cars, among other tourism and travel expenses, jumped 3% at an inflation-adjusted annual rate in the second quarter, the government said Thursday, while the economy as a whole grew only 1.6%.” (Murray) This is due in great part to the changes that businesses are making in the recession, a common theme that I have addressed in my previous blog posts.  “Much of the increase is fueled by businesses, which reduced employee travel during the darkest days of the recession and are now once again deploying those road warriors.” (Murray)

This increase is a sign to hotels that their business may be increasing in the coming year, and that they should raise prices accordingly.  However, many businesses are still afraid, and with good reason.  “Room rates… slipped 1% because many hotels remain hesitant to raise prices.” (Murray) Raising prices is a risky endeavor, and if business does not increase as is expected, the hotels could risk bankruptcy, as is already a common theme in the hotel industry.  However, I personally take the increase in spending on travel expenses and other luxuries to be a good sign, and it is definitely a positive occurrence for the hotel, restaurants, and leisure industries.

http://online.wsj.com/article/SB10001424052748704062804575510190736435952.html?mod=WSJ_Hospitality_leftHeadlines

business & government

China's tourism authorities have asked local travel agencies not to promote travel to Japan amid an increasingly tense territorial dispute between the two countries. The pressure between two countries already spread from political to business. The relationship between these two countries is not good for a long time. And this is not the first time that the government problems get the way of business.

For this kind of situation, how should business man deal with it? On one hand, there are the government rules. We cannot directly fight over it. On the other hand, there is the profit we can get from the tour to Japan, in this case.

I think for most of the business men, they will choice to following the government rules, especially in China. Personally, I don't think that any government issue should affect on business. We should have a free market, a free business. 

http://online.wsj.com/article/SB10001424052748703860104575507473962289634.html?mod=WSJ_Hospitality_leftHeadlines

The James Hotel-An emerging competition

“In the realm of hospitality, The James defines luxury liberated from tradition”. This quoted statement is the slogan of the emerging luxurious hotel company “The James”. The James opened their first doors in downtown Chicago four years ago. This 297-room hotel offers modern and sophisticated designs at midlevel prices. Downtown Chicago is mainly made up of Marriotts, Sheratons, and Hyatts. Therefore, the introduction of a modern and stylish hotel at reasonable prices put a big competition pressure on the bland hotel chains.

The James opened their second “boutique hotel” this fall in SoHo, New York. “When the James Hotel opens its doors this fall in SoHo, on the corner of Thompson and Grand, many things will be shiny and new” stated a Wall Street Journal reporter. The Hotel industry took a hit with the recession. However, collected data shows strong improvement from those past two weak years and predicts even better for the year to come. However, with the new emerging competition, hotel companies (both luxury and mid-level ones) must renovate their establishments since The James Hotel provides luxury at midlevel prices.

Source: http://online.wsj.com/article/SB10001424052748703720504575377321936169274.html?KEYWORDS=new+hotel

Singapore Casinos Could Rival Las Vegas by 2010

http://online.wsj.com/article/SB10001424052748703649004575436743057042602.html

Singapore has opened 2 new casinos and is slowly beginning to attract the majority of Eastern hemisphere gamblers to their country.  People prefer to gamble closer to home, and the sudden increase in gambling in Singapore is expected to rival that of Las Vegas in the coming 2 years.  Not only could this affect the revenue in Las Vegas, but it could shift the entire gambling and casino industry.  There will be more demand for casinos in Singapore, as well as an increased level of tourism and revenue from the casinos.  This could also inadvertently affect the hotel industry, because there will be a greater demand for hotels as more and more Eastern Hemisphere gamblers flock to Singapore’s casinos. 

Although Las Vegas will most likely continue to thrive, "instead of the [Eastern Hemisphere] player making two or three trips to Las Vegas in the year they may make only one trip and the other two trips may be more closer regionally." (Andy Nazarechuk).  This is also a further testament to the importance of easy access in all aspects (hotels, restaurants, and leisure).  People want convenience- they don’t want to travel hundreds of miles to enjoy themselves.  Shifts in the location of different amenities will cause shifts in the location of tourism and market.  

Investors go loco for fro-yo

Pinkberry Inc. is a frozen yogurt chain that was founded in January of 2005. It was founded in Los Angeles, California but has since expanded to own and run seventy three stores in California and New York. Pinkberry has become an increasingly popular desert and snack parlor since 2005, growing to a multi franchise company. In October of 2007, the venture capitol firm Maveron backed Pinkberry with $27.5 million in funding. For the first half of 2009, Pinkberry was also ranked on Vitrue's Top 25 Most Social Restaurants, along with other popular franchises such as McDonalds and Starbucks. In addition, Pinkberry has also found it's way into pop culture, making appearances on popular television shows such as Gossip Girl and appealing to the celebrity crowd.

Frozen Yogurt is an emerging trend in the Hotels, Restaurants and Leisure Industry. In addition to Pinkberry, other notable frozen yogurt companies are Mr. Yogato's, Yogurberri, Berri Good and Red Mango. Red Mango is Pinkberry's main competitor, with it's new expansion plan to open 550 stores throughout the US.

The arrival of the Frozen Yogurt trend created a significant competition not only between the various brands, but also between other desert places. The growing popularity of frozen yogurt has had an effect on the emergence of new ice cream parlors and desert brands. In a sagging economy, companies such as Pinkberry and Red Mango seem to not be suffering, but rather flourishing. Investors and venture capitalists alike are continuing to push money into the frozen yogurt industry, and they are reaping the rewards. In five years, Pinkberry has moved from a small company to a multi-national franchise. The emergence of companies such as Pinkberry and Red Mango has people wondering, is frozen yogurt the new ice cream?

http://blogs.wsj.com/venturecapital/2009/04/23/investors-sweet-on-frozen-yogurt-chain-pinkberry/?KEYWORDS=pinkberry

Burger King's possible change of hands

Burger King Holdings Inc., the second largest hamburger-chain, is facing a possible sale. The last time this incorporation experienced a change of hands was in 2002, when Bain Capital LLC and Goldman Sachs Capital Partners bought the company for about $1.5 billion. Today, the investment fund “3G Capital” is showing strong interest in purchasing this 2 billion dollar worth business. At the beginning of the year, around April, Burger King’s shares reached a high of $22.06. It’s actual market capitalization has a value of around $2.26 billion, and is currently in control of over 12,000 restaurants spread all around the world in more than 75 countries. However, the competition (McDonald’s) is presenting a much greater appearance.

Burger King Holdings Inc. holds a fair amount of advantages such as its value and globalization. However, earlier this month, Burger King shares decreased by 1.91% as it closed at $16.45 on the New York Stock Exchange. On the other side, McDonald’s sales increased by 4.8% this summer. Burger King’s current owners are making a good decision by taking interest in selling the incorporation. By doing so, there exist a possible reciprocal benefit. Burger King’s current state has no promising future, and at those times of competition crisis, change is always the best option.

Source: http://online.wsj.com/article/SB10001424052748703467004575464521824398544.html

service--the best logo of a hotel

Due to the economy going downward, the competitions between hotels become bigger. Every hotel wants to attract more people. In order for attracting more people, the hotel need to show how special the hotel is. And another important thing is that too show how good the service is. Just like Ritz-Carlton Hotel, they will join airlines, credit card companies, many other hotel chains and even lowly sandwich shops Tuesday in offering loyalty program to their customers. It is a good way to make profits. Weather the hotel can keep up the quality of the service is determined how the consumers will think about the hotel.  So hotel companies cannot ignore the quality of the service because of the profits.

Hyatt Corp. is one of the best hotels all over the world. It provides the best service in the world. Just like their mission statement said: provide authentic hospitality by making a difference in the lives of people we touch every day. Their FORCE Plan which is the family of responsible and caring employees is an important training statement before every Hyatt opened. Not only Hyatt, there are a lot of hotels have the similar mission statement. Four Season Hotel is one of them. Their desire is to treat others as you wish to be treated. It seems easy. But to follow this principle all the time is hard.

Even nearly every hotel’s mission statements are including provides best service. But not really every hotel’s employees follow that. Maybe the company can think about the consumers first, then is the money.

Grocery Stores Help Make Healthy Choices

The second largest food retailer in the nation, Kroger Co., has adapted a new system to help their customers make healthier food choices. In Kentucky, some Kroger Grocery Stores have begun to implement a new nutritional scoring system developed by health experts from Yale University and other institutions. The scoring system rates foods on a scale of 1 to 100, the higher the number, the healthier the food. The system takes into account certain aspects of the foods, such as protein and saturated fat, and either docks points or awards points. These scores are then posted in the aisles of choice grocery stores for all the customers to see.

Certain food retailers, such as Hy-vee, Kroger, and Wegmans Food Markets Inc., are also doing their part to help with nutrition by hiring dietitians to walk around their respective stores and help customers make healthy choices. These dietitians are often also available for hire to help make personalized shopping lists and take clients on personalized tours of the store. Safeway, the third largest food retailer in the nation, is going one step further and allowing customers to sign up for an online program that allows them to view the nutrient levels of the household purchases over the last six months. This is made possible through the use of "loyalty cards", which track customers purchases and allow for discounts.

The actions taken by these businesses and corporations are perfect examples of companies in the Hotels, Restaurants & Leisure industry that have taken on corporate social responsibility. In response to the growing obesity epidemic, corporations such as Kroger, have taken it upon themselves to help the nation understand how to make healthier choices, without forcing it upon them. They are creating opportunities for people to educate themselves on how to stay healthy, and creating opportunities for people to apply this education and live healthier lifestyles.

http://online.wsj.com/article/SB10001424052748704229004575371010407610760.html?KEYWORDS=fast+food

Luxury Hotels "Bow to Recession"

This article is a direct example of what the hotel industry should be doing to increase their marginal profits.  In the recent economy, nobody wants to be spending money on things like luxury hotels and expensive restaurants.  In order for the hotels to attract customers that are willing to pay, they need to offer extreme discounts, cheap packages, and deals with local restaurants and credit-card companies, as the Ritz is now apparently doing.  An example of one of the discounts that the Ritz is offering is the point system- “the new points program is one of a number of actions taken at Ritz hotels to try to attract more business and leisure travelers.  For example, earlier in the summer, many resorts offered a special that provided free meals for children.” As the article states, room occupancy has risen almost back to pre-recession times, but “room rates are still sharply lower than they were two years ago. The average cost of a room at the chain in the second quarter was $297, down 19% from $353 in 2008.”  Unfortunately, in the changing economy, it is virtually impossible for luxury hotels to draw in the same number of paying customers, and lowering room rates is still a necessary evil to stay afloat as a company, but the deals are helping to raise revenue and other luxury hotels should pay attention to the Ritz and follow suit. 

            Although the discount programs and other promotions that the Ritz is offering could potentially cost them more than they are earning, if implemented correctly, the profits could be more successful than any other luxury hotel is doing today.  For example, “under the new points program, a 20-night stay at a $300-a-night Ritz room would earn one or two nights at most other Ritz hotels, or 10 nights at many Fairfield Inns or other lower-end Marriot brands.”  This line truly struck me- the deals that this high-end hotel is offering could cost less than an extended stay at a generally “cheap” inn.

http://online.wsj.com/article/SB10001424052748704190704575490113861298350.html?mod=WSJ_Hospitality_leftHeadlines

Hotels Move from Owning to Managing

Recent predictions of the hotel business making a comeback from the recession have some large hotel companies prepared to sell off some of their properties and focus on the "less capitalist" business of managing hotels. Hotel brands such as Marriot International and Hilton are prepared to sell off several of their properties and cash in on the comeback of the hotel industry. Buyers are poised to purchase these properties as revenue per available room is estimated to rise as much as 10.8% by 2011. In turn, they will continue to withhold contracts with the initial owners of the hotels, corporations such as Marriot and Hyatt, who will continue to manage the hotel for a price.

This transfer of the managing and owning power of the major players in the hotel industry will significantly decrease the amount of new hotels opening in the nation. With the major corporations wanting to own only a few significant hotels, it will become increasingly difficult for new hotels to find the funds to open and stay open. In return, the hotel industry will be narrowed down even further to a few big players such as Marriot, Hilton, Hyatt and Starwood owning and managing the few hotels left in the industry. As a result, these businesses will boom and property values will significantly increase.

http://online.wsj.com/article/SB10001424052748703720004575478214068058370.html

the mortgage brings problems

The owners of the Hyatt Regency Jacksonville in Florida missed payments again on its mortgage. Even they had the help from Hyatt Hotels Corp. Last year, when the ownership group led by Charters Lodging Group LLC could not pay for the $150 million mortgages, Hyatt offered $5 million in assistance. In return, Charters let Hyatt manage the 966-room hotel. But the payment of mortgage is still a big problem. According to Realpoint, the hotel’s occupancy dropped from 61% in 2008 to 52% last year. Its net cash flow declined from $10.9 million in 2008 to $4.2 million last year.


The big economic crisis mandates that the owners of the Jacksonville Hotel must change their ways to run the hotel. They can choose to sell the hotel at a low price to others, or, they can take a risk to change the hotel as if to start a new one. If they can finally find a way to cut down th cost and create more revenue, it will be so helpful. All in all, there are some big issues while they run the hotel. They must find them out and solve them.

For the hotel owners who just start this business, we need to be careful when we are going to martgage from the bank. As the econimic is going through a really bad time, the situation is hard for all the new business owners.

link: http://online.wsj.com/article/SB10001424052748704421104575463970323876954.html?mod=WSJ_Hospitality_leftHeadlines

Organic Restaurants on the Rise

This article is a reflection on the changing direction of the restaurant industry.  There is a much higher demand for “fresh organic food”, resulting in a more urgent need for restaurants that cater to that particular consumer market sector.  However, the demand for quick, easy-to-purchase food is still prevalent in society, so the companies must find ways to combine these two demands for the greatest profit margins.  In the example given in the article, “The Plant” is an organic food restaurant that has dedicated two registers to take-out orders to help “speed up breakfast orders to cater to customers dashing to work”.  Through this food distribution technique, The Plant has managed to stay on top of the trends and still run a generally fast-paced, easily accessible restaurant business.

            Although this article gives a simple example that caters to only a small part of the world’s vast restaurant industry, it represents a general movement in the organic direction.  More and more companies are offering vegetarian and vegan options as consumers want easy to get, healthy food.  In the changing industry, it’s important for restaurants to stay on top of the trends and try new marketing and sales techniques, similar to what The Plant has done.  Organic food is an expensive but eventually profitable direction that the restaurant industry should seriously consider.

http://online.wsj.com/article/SB10001424052748704147804575455970021770514.html?KEYWORDS=the+plant

Organic Fast Food Restaurants-A possible new market

The demand for organic food greatly increased in San Francisco, California. Even though more expensive than any other fast food restaurants, financial district workers are willing to pay higher prices for healthy meals offered by the private café called “The Plant”. The event organizer for Morgan Stanley, Shannyn Kastner, gave positive feedbacks on “The Plant.” She enthusiastically stated that she was satisfied of both the food and customer service. This café opened only nine months ago, and already has a solid clientele that keeps on growing everyday.

“The Plant” has a pretty broad menu. They offer a variety of choices such as $5 sandwiches, $8 lasagnas, and $9.5 healthy burgers. The coffee bar also offers the “build-your-own” service for both burgers and salads. The popularity of fast food restaurants lies in the idea of quick and ready to go meals. Now, a few small private restaurants like “The Plant,” are offering that same express service but with healthy food. A healthy fast food restaurant will never be as successful as Mac Donald’s or Burger King, as they will never be able to compete with their low prices such as the dollar menu. However people have become more health conscious, and this new way of life will open doors for healthy fast foods.

Who would ever think that Americans would agree to pay five cents for each bag when purchasing at a grocery store? People are becoming more aware of global warming, and “going green” is a new way of life. Just like the “going green” movement, eating healthy is becoming a must among Americans. I believe that the growth of organic fast food restaurant chains is possible, as everyday more Americans are willing to spend an extra buck for a healthy lifestyle.

Article Source: http://online.wsj.com/article/SB10001424052748704147804575455970021770514.html?KEYWORDS=the+plant

Casino hotel(Gambling) John Kwon

Hospitality service, especially hotel business, has lasted since with traveling. Now days, hotel business is not only place to stay for accommodation but also it is place where every services are provided such as entertainment, conventions, etc…

Hotel industry is all about providing elite services to the customers who often come from different culture or different backgrounds. Therefore hotel industry is a both global, domestic business. The fact that I want to go deep in about the hotel business is the gambling so called casino.

People used to go to only for the purpose of accommodation, however there are people             who go to hotel mainly for entertainment purpose. For example, people travel to Las Vegas to gamble and watching shows. Also people go to Macao for the same purpose. Hence the hotel businesses are now not only focusing on providing better accommodating, but also providing better entertainment services since Gambling took high role in terms of revenue of hotel business now days.

Therefore I believe the gambling (casino) in hotel business takes huge portion of now days  and the future hotel business.

Resorts & Recreation Losing Revenue

There was an article published in yesterday’s Wall Street Journal that explained the economic struggles of the Resorts Atlantic City amid the fall in gambling revenue.  It stated that the company, which is the oldest casino in New Jersey, was in danger of closing down and was trying to find new, innovative ways to make the casino more profitable.  This is indicative of the fact that less people are investing their money in leisure and recreational activities in the recent economic recession, which is causing normally successful and profitable organizations, such as the Resorts Atlantic City, to fail and lose revenue.  The Resorts Atlantic City is merely one of many normally successful companies that are going under, and the recreation industry as a whole is suffering in the current economic climate.

            Globalization has had a large impact on the restaurant industry.  People want to spend less time on food preparation in present-day society, and as a result, they want quicker ways to get food.  Oftentimes, these quick-fix options are ethnic, as many people want a multitude of ethnic foods on-hand 24/7.  As a result, globalization has become more popular so that different ethnic cuisines are much more readily available to the local consumer.  This has taken away from the restaurant industry, however, because many microwavable or quick-fix meal options are easier and cheaper than dining out.  Therefore, globalization has most likely damaged the restaurant industry, seeing as the need to go to a restaurant to enjoy ethnic cuisine has disappeared.  Globalization has also affected the hotel industry, as many hotel companies that originated in the United States have been able to outsource to different countries and continents, allowing for a wider range of customers and a larger source of income.

Globalization--An accelerator in the growth of the Hotels, Restaurants, & Leisure Industry

With the help of new communications, technologies, and international trade, Globalization is continually increasing, making it possible for societies, governments, and companies of different nations to become much more integrated. Globalization has made it easy for people around to world to communicate and do business. Just like every other industry, Globalization plays an important role in the growth of the hotel, restaurant, and leisure industry. Globalization has greatly helped chain restaurants to expand and increase profits in foreign markets. McDonald’s for example, this chain of fast food restaurants serves an average of fifty eight million customers daily. Without globalization, the introduction of Mc Donald’s in the international market would not have been impossible. When a multi-million dollar enterprise emerges into a developing country such as the Dominican Republic, no other local restaurant is able to keep up with them as a competition, therefore destroying the Dominican home market. But on the other hand, McDonald’s helps the economy of the country by creating job opportunities and hiring locals as employees. Entering new markets is extremely challenging for restaurants, as food is a consumption-good, which requires a deep knowledge about consumer tastes that is location specific. Thus, McDonald’s has to vary its menu depending on the wants and needs of that new target market.

Globalization has affected the hotel market as well. Globalization makes it possible for hotels such as “Hilton” and “Best Western” to penetrate foreign markets and become global companies. With traveling rates significantly increasing for both business and vacation purposes, hotels gained interest in expending overboard. Just like in the restaurant industry, globalization may affect the business of local hotels in the country they choose to enter. But the positive side is that they maximize their profits while creating jobs in this new market.

It is true that globalization destroys local companies, cultures, and values. But on the other hand, the development and expansion of the Hotel, Restaurant, and Leisure industry around the world is productive, innovative, and brings employment to the country of entry. Globalization will continue to grow and affect the business world.

Hospitality Industry---Ready and Waiting

With the economic downturn these past few years, many people decided to give themselves a rest from travelling for a year or two, keeping their wallets or purses close at hand. However, all economic downturns eventually end and with new growth and prosperity, there will be a yearning for travel by the public after a few years of ‘cabin fever’. The hospitality and travel industry will thus experience rapid expansion over the next few years. There will be 140,000 new jobs created by this rapid expansion.


There are hundreds of different jobs in a hotel. Not the same as most other industries, the hospitality industry is an industry where the top chef can be paid as much as the general manager. Still, like other industries, hospitality requires high-education and lots of work experience. At the same time, they need people who are good at dealing with the relationship with others, good at doing team work.But it is not as easy as what we may imagine to work in a hotel. A person may need to begin his or her job as a doorperson or bagperson. Then one can get promoted little by little. So no matter what a person is going to do, hard work along with training is key for the customer experience.

In summary, the hospitality industry will experience rapid growth in the next few years as the current economic downturn ends. Therefore, managers need to prepare today by hiring and training staff now to be able to accommodate these once-again travelers with the need to spend money. These hotels who stand ready will garner the coveted repeat customer if so prepared.

Restaurant Grading System

Recently the New York Restaurant Association has put into place a restaurant grading system that has several restaurants in anxiety over passing grades. Restaurants are being put under pressure to pass new inspection exams, the results of which are letter grades that will be posted for the public to see. The significance of this new testing system is that not only are the restaurants graded on a letter scale, but also if they score less than an A, they are either subject to a follow up inspection that takes place approximately two weeks after the first, or forced to shut down until certain health requirements have been fixed. The Health Department hopes to inspect all of New York City's 24,000 establishments in the next fourteen months. As a cautionary measure, many restaurants are now hiring consultants to do weekly walk throughs of their establishments.

Although this new inspection system is specialized in New York City, if it proves to be effective in weeding out unsatisfactorily run restaurants, it may spread to other parts of the US. This may effect the growth of the restaurant industry by decreasing the amount of new restaurants planning to open, while also decreasing the amount of operating restaurants. Also, the new inspection system may effect the pricing of restaurants. With the new cost of maintaining a private consultant, restaurants may resort to raising their prices, which may in turn result in a decrease in consumer activity.