101 HRI Exam One Review
Chapter 2: Unique components of hospitality Product not tangible Inseparability Perishability (food in restaurants) Capacity constrained business: Hotels and restaurants only have so much space. Try to shift demands to time when business is low. Service: Meeting customers' needs Keys to Success 1. 2. 3. 4. 5. Don't forget who you are Encourage every employee to act like a manager Handle moments of truth Hire good people and keep them happy, hire for attitude over skill set. Guest loyalty
7 Deadly Sins of Service: 1. 2. 3. 4. 5. 6. 7. Apathy: forgetting you are there to provide a service Brush-off: ignoring customers because you are too busy Coldness: Condescension: Robotics: all employees have the same canned response Rule book: Runaround:
The Disney Example: "We create happiness" Customers are referred to as guests Employees are cast members One day orientation called welcome to show business Every job is important
Disney's 4 Basic Service Priorities: Safety Show Courtesy efficiency Chapter 4: Industry Associations: The National Restaurant Association: The NRA sends out periodicals monthly to keep their members informed. They also have and annual trade show in Chicago in May. This is the largest restaurant show in the country; it allows industry people to network. Associations in the hospitality field may be organized on several different levels. Associations may be created to meet the needs of individuals, businesses or organizations of one specific area. States have hospitality and tourism associations that serve the needs of members on a statewide level. Large national associations sometimes include colleges and universities affiliated with industry partners. International associations have members from around the world, and their members are often smaller industry associations. Industry associations will have a mission-a statement of purpose-that describes why the association was formed. You should be able to look at an association's mission statement and understand the purpose and scope of the organization. The mission statement is developed by the association's members or governing board and often serves as the guide for activities. Industry associations will also have bylaws that govern the membership and any paid staff that may be employed. Bylaws are rules or laws that govern the association's actions and internal operations. With the member's approval, bylaws may be amended or changed to meet new needs. Industry associations will also have a vision statement that serves as an umbrella statement about where the association sees itself in relation to the entire industry. Vision statements tend to be broader in scope than mission statement. They may also include goals that the association hopes to achieve in the future.
Governing documents help to ensure the smooth running of all industry associations. Why join an industry association? Because networking is important. You need to meet people, exchange business cards and get to know them. Follow up, e-mail them a week later telling them how nice it was to meet them and that you would love to learn more about their company. Call them and set up an appointment to talk, afterward send them another e-mail thanking them for their time. Networking is building relationships. Industry Rating Services: Set standards definite with criteria. No government rating systems in the U.S. Goal is to provide an indicator of excellence in hospitality. Evaluated based upon a set of guidelines, one, two, and here diamond restaurants. American Automobile Association: Up to 5 diamonds Only 150 restaurants have a 5 diamond rating Mobil Travel Guide: Stars, 6 point tool For lodging and restaurants Chapter 6: Business Owners: Independent Owner One unit, maybe two Operate with a limited scope, smaller scale Stay with a successful approach Entrepreneur
Entrepreneurial Recipe 1. Discovering the Business Opportunity Idea not currently available Recognize opportunity 2. Develop a business plan Well organized, written document Define goals and strengths 3. Securing required resources Personal money 4. Managing a new business venture Rewards vs. Risks Risks: Financial Career Personal: time, away from family and friends Psychological: stress Rewards: Financial Satisfaction: knowing you accomplished something Status: community will look at you in a better light Independence: no boss Control, over your schedule (per day, week, month) Why businesses fail: Not enough experience Unrealistic business plan Unrealistic goals High costs Operating procedures: lack of creativity Poor location: can people find you Lack of management ability Lack of funds: money runs out
Chapter 7: Consistency Systems and procedures- in writing Reputations and image Dependent on employee training, same consistent concepts Performance and standards Measuring tools: know what is expected Facilitate decision making: in line with where we want to go Chain Operations Site selection Capital: greater access Purchasing economics: larger number, lower cost Marketing growth Branding, co-branding
Branding: Used to attract and retain customers Associate two names/ symbols together Co-branding Enhance revenue/ market share: hotel using brand name shampoo Five reasons: o Finances: create benefits o Greater value: customer perception o Image: improves o Competitive position o Operational value: advantages Complimentary products Forming alliances Reputation and recognition Chapter 8: Two types of franchises Product or trade name: auto industry and soft drink companies
Business format: ongoing business relationship includes products and service, majority of growth has been here. Advantages of the Franchisee: Site selection Credit Construction Training Economics of scale Ongoing support Disadvantages of the Franchisee: Restrictions Unwanted products Unwanted advertising Unprotected territories Advantages of the Franchisor: Expansion Income Ideas/ innovations Disadvantages of the Franchisor: Continually monitor standards Top 3 Franchise Hotels: Wyndham worldwide Choice hotels international Intercontinental Hotel Co. Chapter 9 Chapter 10 Contract Management Noncommercial: Organizations business is not food, ISU's is education "Captive audience" I.e.: schools, military, hospitals, etc.
Two Options: Self-operation Organization employees Contact Management For profit business Hire-out Contract Management 8 Steps: 1. 2. 3. 4. 5. 6. 7. 8. Determine need to analyze foodservice alternatives Analyze foodservice Determine specific requirements Develop RFP, request for proposal Analyze proposal Negotiate contract Enter into contract Administer contract
Chapter 11