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Introduction to Management in the Hospitality Industry 10th edition

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PERSPECTIVES ON CAREERS IN HOSPITALITY 

THE HOSPITALITY INDUSTRY AND YOU 

What Is Hospitality Management? 
Case History 1.1: A Former Student’s Unexpected Change 
The Manager’s Role in the Hospitality Industry 
Why Study in a Hospitality Management Program? 
Employment Opportunities
Planning a Career 
The Meaning of Work
Employment as an Important Part of Your Education 
Profiting from Work Experience

■ Learning Strategies for Work Experience Getting a Job 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 
Employment at Graduation 
Global Hospitality Note 1.1: Career Opportunities Overseas 
Goals and Objectives: The Strategy of Job Placement 
The Outlook for Hospitality 
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
Globalization

FORCES AFFECTING GROWTH A N D C H A N G E I N

THE HOSPITALITY INDUSTRY 

Managing Change 
Demand 
The Changing Age Composition of Our Population
Industry Practice Note 2.1: Demographics in Practice 
Diversity and Cultural Change
Global Hospitality Note 2.1: As North America Ages, Some
Parts of the World Are Getting Younger
Industry Practice Note 2.2: Advocacy for the Advancement
of Women in Food Service 
Industry Practice Note 2.3: Is the Middle Class Shrinking? 
Supply
Land and Its Produce

■ Labor Workforce Diversity The Impact of Labor Scarcity

FOOD SERVICE 
THE RESTAURANT BUSINESS
The Varied Field of Food Service 
The Outlook for Food Service
The Restaurant Business 
The Dining Market and the Eating Market 
Dining Well ■ The Eating Market and Its Dynamics
Contemporary Popular-Priced Restaurants 
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
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


RESTAURANT INDUSTRY ORGANIZATION: CHAIN, INDEPENDENT, OR FRANCHISE? 
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

COMPETITIVE FORCES IN FOOD SERVICE 
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
Competition with Other Industries 186
Convenience Stores ■ Supermarkets ■ The Home as Competition
Summary 190
Key Words and Concepts 191
Review Questions 191
Internet Exercises 191
Notes 193


ON-SITE FOOD SERVICE 
Comparing On-Site and Commercial Food Services 196
Global Hospitality Note 7.1: International Perspectives 199
Self-Operated Facilities 199
Managed-Services Companies 200
Pros and Cons of Managed Services
Business and Industry Food Service 202
Industry Practice Note 7.1: Measuring Guest Participation 205
College and University Food Service 206
College Students as Customers
Health Care Food Service 210
The Dietetic Professional ■ The Dietetic Technician ■ The Dietary
Manager ■ Health-Care Food Service Department Organization
■ Trends in Health Care Food Service
School and Community Food Service 217
The School Food Service Model ■ Contract Companies in
School Food Service ■ Trends in School Food Service ■ Service
Programs for the Aging ■ Community-Based Services ■ Senior Living
Centers and Communities
Other Segments 226
Recreation ■ Correctional Facilities ■ Private Clubs ■ Transportation
Vending 229
Summary 232
Key Words and Concepts 233
Review Questions 233
Internet Exercises 234
Notes 236

ISSUES FACING FOOD SERVICE 
Consumer Concerns 239
Health and Wellness ■ Fast Food and a Hectic Pace ■ Nutritional Labeling
Industry Practice Note 8.1: Defining Health Claims 247
Food Safety and Sanitation ■ Alcohol and Dining
Food Service and the Environment 252
Thinking About Garbage from Dump to Waste Stream ■ The Greening of the
Restaurant Industry
Technology 259
Enhancing Customer Service ■ Technology in the Back of the House
Industry Practice Note 8.2: ESP Systems 262
Technology, the Internet, and Food Service Marketing ■ Technology and
Management
Summary 265
Key Words and Concepts 266
Review Questions 267
Internet Exercises 267
Notes 270

LODGING
LODGING: MEETING GUEST NEEDS 
The Evolution of Lodging 274
The History of Lodging ■ The Evolution of the Motel ■ The Motor Hotel
Industry Practice Note 9.1: Europe: A Continent of
Lodging Distinctiveness 277
Classifications of Hotel Properties 278
Hotels Classified by Price ■ Hotels Classified by Function ■ Hotels
Classified by Location ■ Hotels Classified by Market Segment
Industry Practice Note 9.2: Trends in Spa Operations 286
Other Hotel Classifications
Types of Travelers 289
Business Travelers ■ Other Segments
International Travelers
Anticipating Guest Needs in Providing Hospitality Service 292
Industry Practice Note 9.3: Creativity Is Evident in Hotel Properties 293
Industry Practice Note 9.4: The Hotel of the “Not So Distant” Future 295
Service, Service, Service 296
Employees as the Internal Customers
Industry Practice Note 9.5: Hotel Rating Services 298
Summary 303
Key Words and Concepts 305
Review Questions 305
Internet Exercises 306
Notes 307

HOTEL AND LODGING OPERATIONS
Major Functional Departments 
The Rooms Side of the House 
The Front Office ■ Automation of the Front Office ■ Reservations and Yield
Management ■ Housekeeping
Industry Practice Note 10.1: Housekeeping 324
Telecommunications ■ Uniformed Services Staff
Industry Practice Note 10.2: The Concierge 327
Security
Hotel Food and Beverage Operations 330
Banquets ■ Food Production ■ Sanitation and Utility
■ Leased Restaurants
Industry Practice Note 10.3: Pros and Cons of Outsourcing
Food and Beverage Operations 335
Staff and Support Departments 335
Sales and Marketing ■ Accounting ■ Human Resources ■ Engineering
Income and Expense Patterns and Control 339
The Uniform System of Accounts
Entry Ports and Careers 342
Front Office ■ Accounting ■ Sales and Marketing ■ Food and
Beverage ■ Owning Your Own Hotel

Summary 345
Key Words and Concepts 346
Review Questions 346
Internet Exercises 347
Notes 348

FORCES SHAPING THE HOTEL BUSINESS 
The Economics of the Hotel Business 352
A Cyclical Business ■ Hotel Cycles and Financial Performance
Industry Practice Note 11.1: Hotel Operations after Katrina 357
RevPAR ■ Hotels as Real Estate ■ International Hotel Development
Industry Practice Note 11.2: Condo-Hotels as Mixed-Use Developments 363
Industry Practice Note 11.3: The Elements of the Hotel Real Estate Deal 364
Private Equity Investments ■ The Securitization of the Hotel Industry ■ The
Hazards of Public Ownership
Dimensions of the Hotel Investment Decision 371
Case History 11.1: Going Public: Some Good News and Some Bad 372
Financial ■ An Operating Business ■ Segmentation: For Guests or
Developers? ■ Management Companies ■ Asset
Management ■ Entrepreneurial Opportunities
Summary 379
Key Words and Concepts 380
Review Questions 380
Internet Exercises 381

COMPETITION IN THE LODGING BUSINESS 
The Conditions of Competition 388
A Fragmented Market ■ A Cyclical Market ■ Cost
Structure ■ Securitization ■ Technological Revolution
The Marketing Mix in Lodging 391
Competitive Tactics
Product in a Segmented Market 393
Food Service ■ Other Services and Amenities

Systemwide Services
Industry Practice Note 12.1: Hotels Honored among World
Business Hotels 403
Industry Practice Note 12.2: Franchisors-Franchisees: A Growing
Team Approach 405
Price and Pricing Tactics 406
Yield Management
Place—and Places 410
Location ■ Distribution Channels
Industry Practice Note 12.3: Travel Intermediaries: Utell
Hotels and Resorts 412
Promotion: Marketing Communication 416
Advertising in Mass Media ■ Advertising on the Internet ■ Sales Promotion
Summary 420
Key Words and Concepts 421
Review Questions 421
Internet Exercises 422
Notes 423
PART FOUR: TRAVEL AND TOURISM 425
CHAPTER 13 TOURISM: FRONT AND CENTER 426
The Importance of Tourism 427
Factors Affecting Travel and Tourism ■ Income Trends ■ Demographics and
Travel
Travel Trends 431
Global Hospitality Note 13.1: Public Anxiety and the Travel Industry 432
Mode of Travel ■ Trip Duration
The Economic Significance of Tourism 435
Tourism and Employment ■ Publicity as an Economic Benefit
The United States as an International Tourist Attraction 438
Measuring the Volume ■ Reasons for Growth of the United States as a Destination
Businesses Serving the Traveler 440
Passenger Transportation ■ Channels of Distribution ■ Reservation Networks

Noneconomic Effects of Tourism 448
Crowding ■ Favorable Noneconomic Effects
Global Hospitality Note 13.2: Volunteer Tourism—or Voluntourism 452
Summary 453
Key Words and Concepts 454
Review Questions 454
Internet Exercises 455
Notes 457

DESTINATIONS: TOURISM GENERATORS
Motives and Destinations 460
Mass-Market Tourism 464
Planned Play Environments 465
Theme Parks ■ Themes ■ Scale ■ Regional Theme Parks ■ Themes and
Cities
Industry Practice Note 14.1: A Different Kind of Theme Park 472
Employment and Training Opportunities ■ Casinos and Gaming ■ Las
Vegas ■ Atlantic City ■ Mississippi Gulf Coast
Case History 14.1: Changes Come to Atlantic City 486
Other Markets ■ Casino Markets and the
Business of Casinos ■ Casino Staffing
Urban Entertainment Centers 490
Case History 14.2: The National Restaurant Association Restaurant Show 492
Shopping Centers ■ Zoos, Sanctuaries, and Aquariums
Temporary Attractions: Fairs and Festivals 497
Case History 14.3: The New Orleans Jazz Fest 499
Natural Environments 500
On a Lighter Note 503
Summary 504
Key Words and Concepts 504
Review Questions 505
Internet Exercises 505
Notes 508

MANA GEMENT IN THE HOSPITALITY INDU STRY 
MANAGEMENT: A NEW WAY OF THINKING 
Management and Supervision 512
The Economizing Society 513
The Managerial Revolution 514
Taylor: The Work Process Focus ■ Fayol: Administrative Management
■ Human Relations: Work as a Social Process ■ Implications for the
Modern Hospitality Manager
Management: A Dynamic Force in a Changing Industry 520
Statler: The First “National” Hospitality System ■ Stouffer’s Modern
Management Techniques ■ The Building of Complex Hospitality Systems
Case History 15.1: Where Does a Concept Come From? 527
What Is Management? 528
What Is Our Business? ■ In Business for Yourself?
Summary 535
Key Words and Concepts 535
Review Questions 536
Internet Exercises 536
Notes 537

PLANNING IN HOSPITALITY MANAGEMENT 
Why Study Planning? 540
Planning in Organizations 541
Case History 16.1: Planning on an Olympic Scale at ARAMARK 542
Some Planning Concepts
Goal Setting 545
Characteristics of Well-Thought-Out Goals ■ Goal Congruence
■ Goals and Policies
Planning in Operations 549
Strategic Issues ■ From Strategy to Tactics
The Individual Worker as Planner 553
Planning as a Personal Process
Long-Range Planning Tools 554
Return on Investment ■ Cost-Benefit Analysis

Summary 558
Key Words and Concepts 558
Review Questions 559
Internet Exercises 559
Notes 561


ORGANIZING IN HOSPITALITY MANAGEMENT
Authority: The Cement of Organizations 563
The Basis of Authority ■ Authority and Responsibility ■ Authority: A Summary
Departmentalization 568
Case History 17.1: Reorganization in a Multibrand Company 569
The Delegation of Authority ■ Span of Control ■ Bases for
Departmentalization
Line and Staff 573
Line Management ■ Staff Support
Issues in Organizing 576
Functional Staff Authority ■ Increasing the Span of Control: Empowering
Managers ■ Committees ■ Bureaucracy ■ Ad Hocracy
Summary 585
Key Words and Concepts 586
Review Questions 586
Internet Exercises 586
Notes 587

STAFFING: HUMAN RESOURCES MANAGEMENT IN HOSPITALITY MANAGEMENT 
Issues in Human Resources Management 590
Fitting People to Jobs 591
Job Descriptions
Recruiting 596
Internal Sources ■ External Sources ■ Segmenting the Employee Market
Selection and Employment 600
Selection ■ Orientation
Training 606
Global Hospitality Note 18.1: Training in a Global
Hospitality Industry 608


Management Training ■ On-the-Job Training ■ Everybody Gets Trained Retaining Employees
Staff Planning 
Job and Work Needs ■ Part-Time Employees ■ Computerized Scheduling
Summary 
Key Words and Concepts 
Review Questions 
Internet Exercises 
Notes 619

CONTROL IN HOSPITALITY MANAGEMENT 
The Importance of Control 622
Control and the “Cybernetic Loop” 623
Control Through Management Action ■ Characteristics of Control Systems
Tools for Control 628
Financial Accounting ■ Managerial Accounting ■ Decision Accounting
Summary 635
Key Words and Concepts 635
Review Questions 635
Internet Exercises 636

LEADERSHIP AND DIRECTING IN HOSPITALITY MANAGEMENT 
Leadership as Viewed by Social Scientists 639
Relationship to Other Management Functions
Why People Follow 
Necessity as Work Motivation ■ Advantage as Work Motivation
■ Personal Satisfaction as Work Motivation ■ Independence as Work
Motivation ■ Encouragement, Praise, and Recognition as Work
Motivation ■ Money as Work Motivation ■ Company Policy as Work
Motivation ■ Does Happiness Lead to Productivity?
Leadership Theories 
Three Important Elements of Modern Leadership ■ Participation Communication 
Barriers to Communication ■ Gateways to Communication

The Elements of Leading and Directing 653
Leadership and Change
Industry Practice Note 20.1: Leadership in the Hospitality Industry 657
Developing Your Own Leadership Style 658
Summary 659
Key Words and Concepts 660
Review Questions 660
Internet Exercises 661
Notes 662

HOSPITALITY AS A SERVICE INDU STRY
THE ROLE OF SERVICE IN THE HOSPITALITY INDUSTRY
A Study of Service 666
What Is Service?
Industry Practice Note 21.1: Six Sigma Comes to the Hospitality Industry 670
Types of Service
Rendering Personal Service 673
Task ■ Interpersonal Skills
Managing the Service Transaction 676
The Product View of Service ■ The Process View: Empowerment
■ Production or Process View?
How Companies Organize for Service 681
Service Strategy ■ Service Culture ■ The Employee as
Product: The Importance of People ■ Service as a Sustainable

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