Table Of Content

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. 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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