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