Introduction to Management in the Hospitality Industry

748 Pages·2011·26.107 MB·English

by  Clayton W. Barrows, Tom Powers, Dennis R. Reynolds

This page intentionally left blank
INTRODUCTION TO
M A N AG E M E N T

IN THE
H O S P I TA L I T Y I N D US T R Y
FFFFIIRRSS..iinndddd ii 2233//1122//1100 77::2288 PPMM
This page intentionally left blank
INTRODUCTION TO
M A N AG E M E N T

IN THE
H O S P I TA L I T Y I N D US T R Y
Tenth Edition
CLAYTON W. BARROWS TOM POWERS DENNIS REYNOLDS
Chair and Professor Professor Emeritus Ivar Haglund
Whittemore School of Business School of Hospitality and Distinguished Professor
and Economics Tourism Management School of Hospitality Business
University of New Hampshire University of Guelph Management
Washington State
University
John Wiley & Sons, Inc.
FFFFIIRRSS..iinndddd iiiiii 2233//1122//1100 77::2288 PPMM
This book is printed on acid-free paper.
Copyright © 2012, 2009, 2006 by John Wiley & Sons, Inc. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any
form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise,
except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without
either the prior written permission of the Publisher, or authorization through payment of the
appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers,
MA 01923, 978-750-8400, fax [phone], or on the web at www.copyright.com. Requests to the
Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons,
Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax [phone], or online at http://www
.wiley.com/go/permissions.
Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best
efforts in preparing this book, they make no representations or warranties with respect to the
accuracy or completeness of the contents of this book and specifically disclaim any implied
warranties of merchantability or fitness for a particular purpose. No warranty may be created or
extended by sales representatives or written sales materials. The advice and strategies contained
herein may not be suitable for your situation. You should consult with a professional where
appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other com-
mercial damages, including but not limited to special, incidental, consequential, or other damages.
Evaluation copies are provided to qualified academics and professionals for review purposes
only, for use in their courses during the next academic year. These copies are licensed and may
not be sold or transferred to a third party. Upon completion of the review period, please return
the evaluation copy to Wiley. Return instructions and a free of charge shipping label are avail-
able at www.wiley.com/go/returnlabel. Outside of the United States, please contact your local
representative.
For general information on our other products and services, or technical support, please contact
our Customer Care Department within the United States at 800-762-2974, outside the United States
at 317-572-3993 or fax [phone].
Wiley also publishes its books in a variety of electronic formats. Some content that appears in
print may not be available in electronic books. For more information about Wiley products, visit
our Web site at http://www.wiley.com.
Library of Congress Cataloging-in-Publication Data
ISBN: 978-0-470-39974-3
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
FFFFIIRRSS..iinndddd iivv 2233//1122//1100 77::2288 PPMM
CONTENTS
Preface xix
PART ONE: PERSPECTIVES ON CAREERS IN HOSPITALITY 1
CHAPTER 1 THE HOSPITALITY INDUSTRY AND YOU 2
What Is Hospitality Management? 4
Case History 1.1: A Former Student’s Unexpected Change 5
The Manager’s Role in the Hospitality Industry 5
Why Study in a Hospitality Management Program? 7
Employment Opportunities
Planning a Career 10
The Meaning of Work
Employment as an Important Part of Your Education 12
Profiting from Work Experience ■ Learning Strategies for Work Experience
Getting a Job 16
Getting in the Door ■ Learning on the Job ■ Other Ways of
Profiting from a Job
Industry Practice Note 1.1: An Employer’s View of Job Placement—Hyatt 18
Employment at Graduation 20
Global Hospitality Note 1.1: Career Opportunities Overseas 21
Goals and Objectives: The Strategy of Job Placement 22
The Outlook for Hospitality 25
The Effects of September 11, 2001 ■ Polarization in Hospitality Service
Organizations ■ Accelerating Competition ■ Service Is the Difference ■ Value
Consciousness ■ Technology ■ Empowerment ■ Diversity ■ Concern
with Security ■ Concern with Food Safety and Sanitation ■ Sustainability
Industry Practice Note 1.2: Leading the Charge in Going
Green—Orchard Hotels 30
Globalization 32
TTOOCC..iinndddd vv 0066//0011//1111 1122::4488 PPMM
vi Contents
Summary 33
Key Words and Concepts 33
Review Questions 33
Internet Exercises 34
Notes 35
CHAPTER 2 F ORCES AFFECTING GROWTH AND CHANGE IN
THE HOSPITALITY INDUSTRY 36
Managing Change 38
Demand 38
The Changing Age Composition of Our Population
Industry Practice Note 2.1: Demographics in Practice 41
Diversity and Cultural Change
Global Hospitality Note 2.1: As North America Ages, Some
Parts of the World Are Getting Younger 45
Industry Practice Note 2.2: Advocacy for the Advancement
of Women in Food Service 49
Industry Practice Note 2.3: Is the Middle Class Shrinking? 52
Supply 54
Land and Its Produce ■ Labor
Workforce Diversity 58
The Impact of Labor Scarcity 59
Summary 60
Key Words and Concepts 61
Review Questions 62
Internet Exercises 62
Notes 64
PART TWO: FOOD SERVICE 65
CHAPTER 3 THE RESTAURANT BUSINESS 66
The Varied Field of Food Service 68
The Outlook for Food Service
TTOOCC..iinndddd vvii 0066//0011//1111 1122::4488 PPMM
Contents vii
The Restaurant Business 72
The Dining Market and the Eating Market 73
Dining Well ■ The Eating Market and Its Dynamics
Contemporary Popular-Priced Restaurants 80
Quick-Service Restaurants
Industry Practice Note 3.1: Subway and Enterpreneurship 84
Fast-Casual Restaurants ■ Midscale Restaurants ■ Casual Restaurants
Case History 3.1: Quark’s Restaurant Serves Earthlings Too 98
High-Check-Average Restaurants
Global Hospitality Note 3.1: Culinary Preparation 100
Restaurants as Part of a Larger Business 100
Restaurants in Retail Stores ■ Restaurants in Shopping Malls
Summary 102
Key Words and Concepts 103
Review Questions 103
Internet Exercises 104
Notes 105
CHAPTER 4 RESTAURANT OPERATIONS 106
Restaurant Operations 108
The Front of the House ■ The Back of the House
Industry Practice Note 4.1: Research Chefs Association 116
The “Office” ■ General Management
Making a Profit in Food Service Operations 121
Increasing Sales ■ Reducing Costs
Keeping the Score in Operations: Accounting Statements and Operating Ratios 124
Cost of Sales ■ Controllable Expenses ■ Capital Costs
Life in the Restaurant Business 128
Salary Levels
Summary 129
Key Words and Concepts 129
Review Questions 130
Internet Exercises 130
Notes 131
TTOOCC..iinndddd vviiii 0066//0011//1111 1122::4488 PPMM
viii Contents
CHAPTER 5 R ESTAURANT INDUSTRY ORGANIZATION: CHAIN, INDEPENDENT,
OR FRANCHISE? 132
Chain Restaurant Systems 134
Marketing and Brand Recognition ■ Site Selection Expertise ■ Access to
Capital ■ Purchasing Economies ■ Control and Information Systems
■ New Product Development ■ Human Resource Program
Development ■ Chains’ Market Share
Independent Restaurants 142
Operating Advantages ■ Marketing and Brand Recognition ■ Site
Selection ■ Access to Capital
Industry Practice Note 5.1: Working with the SBA 145
Industry Practice Note 5.2: Why Go Public? 146
Purchasing Economies ■ Control and Information Systems ■ Human
Resources ■ The Independent’s Extra: Flexibility ■ The Independent’s
Imperative: Differentiation ■ Between Independent and Chain
Franchised Restaurants 151
The New Franchisee ■ Continuing Franchise Services
Industry Practice Note 5.3: Interested in Becoming a Franchisee? 155
The Franchisee’s View ■ The Franchisor’s View
Industry Practice Note 5.4: Rosenberg International
Center of Franchising 161
Franchisor-Franchisee Relations ■ Franchising: A Middle Way
Summary 163
Key Words and Concepts 163
Review Questions 164
Internet Exercises 164
Notes 166
CHAPTER 6 COMPETITIVE FORCES IN FOOD SERVICE 168
Competitive Conditions in Food Service 169
The Marketing Mix 172
Product
Case History 6.1: Finding the Proper Marketing Mix—Shakey’s Pizza 173
Price ■ Place–and Places ■ Promotion
Industry Practice Note 6.1: The Wealthiest Consumers 183
TTOOCC..iinndddd vviiiiii 0066//0011//1111 1122::4488 PPMM