Professional Documents
Culture Documents
2. Coffee shop
Coffee shops are characterized by a decor is simple and prices are
relatively low. It is usually located in an office building or shopping mall. The rent
is high. The staff are often minimally trained. The peak periods of a coffee shop
are lunch and coffee breaks. Operating hours are from early morning to early
evening. A takeout service may be offered.
3. Cafeterias
Cafeterias often require a large preparation area. Their staff are minimally
trained. Beer and wine is necessary to handle the traffic volume. The operating
hours will depend on the location as school, office building, airport, or highway.
4. Gourmet Restaurants
5. Ethnic Restaurants
6. Fast-food Restaurants
Fast-food restaurants have increased in the years as people have become more
mobile. Franchising is a common in this type of restaurant. The menu is limited with low
prices. Because of low prices, many customers patronize fast-food restaurants.
Fast-food restaurants operate for long hours and generally for seven days a
week. Alcoholic beverages are not offered. A well-trained staff is required for franchise
as - operation in which the franchisor sets standards of service and food quality that
must be maintained at all times.
7. Deli Shops
Deli shops provide delicatessen food service, combining traditional delicatessen
cold meats and cheese with takeout sandwiches, salads, and similar items. Some deli
shops have limited seating capacity. They are usually located in shopping areas or
office buildings and are open from 9:00 AM to 5:00 PM or 9:00 PM. Capital investment
is low. Deli shops have low labor costs because only one or two owners and employees
are involved.
8. Buffet Restaurants
Buffet restaurants are established on a completely self-serve basis.
However, if liquor, beer, these beverages are provided.
The food buffet is usually an "all you can eat" hot and cold food for one
price. Food preparation and to a minimum. Buffet restaurants cater to the family
and therefore offer reasonable prices. They are open from 5:00 PM to 11:00 PM.
9. Transportation Restaurants
There is a natural link between transportation and food service. Several
restaurants are generally found along auto and bus transportation routes. They are also
found at bus, rail, and air transportation buildings, as well as on transportation vehicles
as trains and ships.
Some transportation restaurants cater to tour groups, particularly bus tour
groups. These restaurants can be quite profitable if the market can be maintained. They
require special cafeteria or buffet-type facilities so that arriving groups can be served
quickly and continue on their journey.
Franchising
Franchised restaurant are major component of the food service industry
particularly in the fast-food sector The reasons for the popularity of the restaurant
industry are very similar to those in the hotel industry. Franchises beneficial to the
franchisees because they provide operational, training, layout a design assistance,
location assistance, managerial expertise, group purchasing and most importantly, the
identification of a well-known brand supported by region national, and international
advertising and promotion. Franchised restaurants easily get financing from lending
institutions than independents
Restaurant Profitability
Food Cost Percentage
Food cost percentage is often used to measure a restaurant's marketing
success. It is determined by dividing the food cost for a period (a day, a week, a month)
by the sales for that same period and then multiplying it by 100. For example, if the cost
of food for one month is $40,000 and sales is $100,000, the food cost would be:
$40,000/$100,000 x 100 = 40%
Many restaurant operators strive for a 40% food cost to make the restaurant more
profitable.
Gross Profit
Gross profits is the selling price of an item less its food cost. Table 3 shows the
importance of gross profit in comparing two menu items.
2 $1 $4 25% $3
Labor Costs
Labor costs are controlled by expressing them as a percentage of sales on daily,
weekly, or monthly basis and comparing the actual cost with the standard desired.
Instead of treating labor costs as separate from food costs, many successful
restaurants look at these two as a combined cost. For instance, they set a standard of
above in which food costs plus labor costs must not increase. As long as the operation
maintains the combined cost below this level, the restaurant will be profitable.
Breakeven Point
Breakeven is that point at which business will make neither a profit nor a loss. The
operation for determining the breakeven point is:
Fixed Cost / Contribution margin
Fixed costs that remain the same regardless of the volume business. Examples are
salaries, interest, depreciation, insurance rent, and the like. Contribution margin is
average check less variable costs. For example, if a restaurant has an annual fixed cost
of $125,000 and an average guest spending of $10.00 ant variable cost such as food,
labor, and others is 75% of revenue or $7.500/0 guest
Menus
The menu is the basic planning document for a successful restaurant. Several,
aspects of the restaurant's operation depend on the menu. The menu contains what the
restaurant offers, the range of offerings, as well as the selling prices. The menu- must
portray the style and theme of the restaurant. Thus, the menu's design, printing size,
and colors are important.
The menu also determines the equipment needed and the investment required In
general, the more extensive the menu is, the more varied the needed equipment will be.
If a restaurant sells only hamburgers, hotdogs, fries, and soft drinks, its required
equipment will be less compared to those of a restaurant With 20 or 30 menu items '
which require different cooking methods and more specialized equipment.
Airline Catering
Airline companies spend billions of dollar" every year for food purchases, The
average cost per airline is between $1 and $7 depending on the length of the journey,
The amount is less for shorter trips, since passengers may be offered only a non-
alcoholic beverage and a light snack. For longer trips in which two or three meals may
be offered including free alcoholic beverages, the amount is higher. Around 3 to 4% of
an airline's total costs is spent on food.
Food Quality
The main problem of airline companies is to cook the meal on the ground and
serve it several hours later in an extraordinary dry cabin atmosphere, seven miles high,
to different group of people with their own food preferences, and whose main motivation
is to travel rather than to eat.
In 1992, airline passengers were served a sandwich and coffee from a vacuum
flask on a flight from London to Paris. At present, particularly on long flights, passengers
expect hot meals.
Logistics
To produce hot meals, the airline companies have to prepare specifications for
recipes, ingredients, cooking methods and temperatures, and labor for each flight These
require a forecast using the actual passenger reservations for each flight including an
allowance for standbys and last-minute reservations in order to have the correct raw
materials, equipment, and food production staff for each shift. Preliminary meal counts
are usually prepared from 24 to 72 hours ahead so that food supplies can be bought.
Menus must be carefully selected for each flight to avoid serving the same meal
to a passenger on two succeeding segments of a trip or on a round trip. In addition,
trays and serving utensils and supplies must be in the kitchen when the meal is
prepared.
Airplane Galleys
The first airplane galley was designed in 1936 by Douglas for its DC-3. Meals
prepared on the ground were kept hot or cold in insulated containers on the aircraft.
After World War II, the introduction of larger airplanes enabled them to have ovens and
refrigerators onboard in their galleys. The removable ovens are filled with hot food in the
ground flight kitchen, moved to the aircraft, and then plugged into electrical outlets.
Flight Kitchens
The first airline flight kitchen was opened in the late 1930s near Washington D.C.
Hoover Field airport by a gentleman named Marriott. He had a restaurant near the
airport. He noticed that passengers would go to his restaurant to eat before boarding
their flights because no meals were served in the airplane. He approached Eastern Air
Transport, now known as Eastern Airlines, and offered to prepare lunch boxes in his
restaurant for Eastern's passengers. Eastern agreed, so the first flight kitchen was
established. At present, Marriott In-Flite Services has approximately 100 flight kitchens
around the world which cater to 150 different airlines and serve 100 million meals a
year.
There is an ongoing trend.at present in which Flight Kitchen operators lease their
dining equipment from other firms.
Some airline companies have their own flight kitchens while others contract with
other airline companies that are equipped with their own kitchens. Most of the airline
companies turn over their catering services to outside caterers because airline kitchens
are not large and efficient.
Difference between Airline Catering and Restaurant Catering
Airline catering is different from restaurant catering because in the latter the
cooks can make last-minute adjustments. For example, a steak might be prepared in
the flight kitchen to be accompanied by a sauce and vegetables to be served hours
later. During this time, it must be kept hot, If there is flight delay of one hour, the steak
will be stringy, the sauce will be congealed, and the vegetables will be mushy. In an
ordinary restaurant, a meal like this will not be served but on an airline, the serving crew
usually has no other choice but to serve it.
In airline catering, the logistics are very complex but airlines exert great efforts to
serve good meals to the passengers. They even respond to the needs of passengers on
special diets if given enough notice.
Restaurant Promotion
Many restaurants advertise their menu on newspapers. Local newspaper
advertisements are used by most restaurants as a major form of external promotion.
Several restaurants advertise in the yellow pages of the local telephone directory; some
use local radio or television stations. Most popular restaurants and national restaurant
chains advertise in airline in-flight magazines, consumer travel magazines, and travel
trade publications. Many restaurants try to foster good relations with nearby hotel
employees such as front office staff, bell desk personnel, and doormen because they
are often asked by hotel guests to recommend good nearby restaurants. Good public
relations and word-of-mouth advertising generate a lot of business.
"Theme park" is often used as a synonym for "amusement park." A theme park is a
distinct type of amusement park which promotes a specific theme or exclusive set of themes.
Disneyland in Anaheim, California is considered as the first theme park. Theme park trips are
ideal for family vacations, including children below of age. Theme park travelers usually fly to
their destinations and rent a car once arrive. They engage in various activities such as shopping
and visiting historical museums, and beaches.
Main Issues in the Management of Tourist Attractions
Attractions face several threats from the external and internal environments which
affect the product quality, operational capability, and visitor experience. Thus, it is important
for managers of attractions to develop a strategy that recognizes threats and focuses on
managing potential impacts to attain long-term capabilities.
Management Planning
In a study of Australian tourist attractions, Benckendoff and Pearce (2003) found that
attractions with the highest level of management planning perform best and are more
profitable. The following are the effects of higher levels of planning:
1. Higher visitor numbers;
2. Increased revenue;
3. Longer asset value;
4. Greater local profit;
5. Lengthened visitor stay;
6. Better growth; and
7. Greater confidence.
Managers of attractions must plan ahead, decide what actions will be taken, and identify
objectives, time scales, funding, and implementation of projects. Planning is necessary for the
long-term survival of attractions based on renewal and innovation.
Environmental Impacts
Environmental impacts caused by visitors raise a number of issues for managers of
natural, built, and event attractions. While natural attractions and those that charge admission
fees are highly susceptible to seasonality, places of worship and country parks are less
susceptible. In addition, attractions in cities suffer less from seasonality than those located in
the external areas.
Visitor Numbers
There are several factors that affect Visitor numbers. These are promotions, global
issues, and the weather. Mechanisms for recording Visitor numbers include admission tickets,
car parking receipts, and manual or mechanical tools. However, recording visitor numbers at
some sites is a problem particularly when the entry is free, when the site has multiple entry
points, and when the installation of mechanical counting is not feasible.
Destination PIanning
Gunn (1988) found out in his study that attractions function more effectively when they
are clustered together. Several areas have adopted the strategy of clustering attractions and
events which provide more activities to tourists. The rationale for clustering attractions is
greater tourist mobility, competition among tourist areas, stronger marketing mechanisms, and
higher investment in development. Managers of attractions are able to collaborate with one
another to attract visitors to an area rather than to a simple attraction together With the
motivation to visit all attractions by means of big discounts and visitor passes. Collaboration
enables attractions to become more receptive to changes in the market place, and helps in the
formation of strong regional identities through destination marketing rather than specific
attractions. Investment in popular attractions can be a tool for regeneration. The development
of attractions in urban areas is undertaken not only to attract more visitors but also to stimulate
urban renewal.
Diversification
Many attractions have developed from an existing business such as farm attractions to a
diversified agricultural business. Industry attractions have developed through a similar process
where company identifies an opportunity to promote its products and create brand awareness
through the visitor market. Globally, there are examples of companies that operate visitor
centers that are linked to a product offering such as nuclear energy production and chocolate.
On Alaska, even oil installations are considered tourist attractions.
Renewal and Innovation
Innovation is a principal concept in tourism business. Many attraction managers find it
necessary to incorporate technology and innovation to their featured attractions to retain and
stimulate the interest of the visitors. An example is the virtual reality ride through New York
called New York Skyride at the Empire State Building.
3. Predict attendance
4. Set meeting budget
7. Select hotel(s)
8. Negotiate contacts
9. Plan exhibitions
4. Troubleshoot
5. Approve invoices
Post-meeting Activities
1. Debrief
2. Evaluate
The meeting Planner has several interactions with hotels. These include negotiating the room
blocks and rates. Escorting client’s onsite inspections gives the hotel an opportunity to show
their facilities and services. The most important interaction is with the catering/
bouquet/conference department associates especially the services manager and captains
because these frontline associates can make or break a meeting.
2. To assist groups with meeting preparations and give support throughout the meeting;
Specialized Services
Several companies offer specialized services such as transportation; entertainment,
audiovisual, escorts and tour guides, convention setup, and destination management.
Professional Associations
Since the MICE industry has grown, several professional associations have emerged.
These are the following:
Convention Industry Council
The Convention Industry Council (CIC) was founded in 1949 as an umbrella organization
for four professional associations which represent hotels, convention centers, and association
executives. Their purpose was to address the professional concerns of all industry groups and
offer certification of meeting professionals or CMP. At present, the CIC members consist of 30
national and international organizations representing 81,000individuals, as well as 13,000
companies and properties.
European Meetings Industry Liaison Group
It is also called the European Alliance of the CIC. It is composed of five groups, namely:
International Association of Conference Interpreters, the International Congress and
Convention Association, the International Association of Professional Congress Organizers,
Meeting Professionals International, and the European Federation of Conference Towns.
International Association of Professional Congress Organizers (IACPCO)
The IAPCO was founded in 1968. Its headquarters is in Belgium. It has members from 52
companies as well as individual members. Majority of the members are from Europe but there
are members from Australia, the USA, Canada, Latin America, and Middle East.
International congress and Convention Association (ICCA)
ICCA was founded in 1963. Its headquarters is in the Netherlands. The ICCA has very
strict guidelines which require members to conduct meetings in at least four different
continents. It has members from 100 countries which include convention centers, travel agents,
airlines, and other industry- related services companies.
International Federation of Conference Towns
Like the ICCA, it has very specific membership guidelines which require cities to have:
1. Conference facilities that can accommodate at least 300 participants;
2. Proper equipment;
3. Traditional meeting services;
4. Satisfactory hotel accommodations for at least 300 participants;
5. Necessary transportation;
6. Team of experts in conference organizations; and
7. Proof that it has hosted at least five international conferences for the past three years
International Association of Convention and Visitors Bureaus (IACVB)
The IACVB originated in the United States. It has several international members. Their
most common services are destination information services, supplies networks, and housing
assistance programs.
Professional Convention Management Association and Meeting Professionals International
(PCMA and MPI)
The PCMA and MPI are professional associations for industry professionals. They
provide education programs and have excellent publications and resources.
Foundation for International Meeting (FIM)
The FIM was established in 1983. It is focused on MICE industry organizations which
conduct international meetings. FIM offers several educational travel opportunities and a
unique trade mission program that links members with their counterparts in other countries.
American Society of Association Executives (ASAE)
The ASAE was established in 1920. The headquarters is in Washington, D.C. It has more
than 35,000 individual members who manage professional, trade, and philanthropic
associations which serve more than 287 million people and companies worldwide.
Convention and Special Events Management Companies
There are several types of companies or organizations that provide special events management
services. The following are companies which provide convention and special events
management services:
1. Destination management companies
2. Independent meeting management companies
3. Travel management companies
4. Special events professionals, public relation firms
5. Government entities and tourism offices
Destination Management Companies (DMCs)
Destination management companies are private companies that offer services primarily
for inbound customers. The corresponding European service provider is known as professional
Convention Organizer (PCO). The primary responsibility of DMCs is to expose their clients to
opportunities available in the surrounding area, and prepare a proposal describing the
preferred events and costs, selecting and organizing the special events for the convention
attendees. As soon as they are selected as the DMC for the inbound group, they will organize
the event, secure the site, obtain permits, and hire suppliers such as the caterer, decorators,
bands, and entertainment.
Emerging Trends
There are many developments that will shape the MICE industry. Two of the leading
factors are changes in communication systems, specifically the Internet and its diverse
applications, and the changing character of nations into a global community. The Internet
provides an accessible format for virtual meetings and exhibitions, video conferencing, and
online education. This connection to the cyber world from the home or office makes Europe
Asia, and America accessible to the local tourist office. Many corporations have already started
the process of globalization. At present, smaller Organizations and individuals can equally
participate in global integration.
Employment Opportunities in the MICE Industry
There are many employment opportunities in the meetings, incentives, conventions,
and exhibitions industry. The main qualifications are education and Practical experience.
Persons who possess these qualifications will have no trouble finding a job in the MICE industry.
The following are the job opportunities in the MICE industry:
1. Director of convention Services
2. Convention Service Manager
3. Director of Group Sales
4. Director of Food and Beverage
5. Director of Catering Operations/Sales
6. Director of Marketing
7. Hospitality Coordinator (Room Service)
8. Director of Human Resources
9. Resident Manager
10. Director of National Accounts