Streamlining the Front of House with more Technology.

For many hospitality operators being present on the web and installing computers front of house has been a big hurdle, for others it was just another step in using technology to streamline operations.

The internet and specific computer software provides a means to assist in many customer service functions. Monitoring internal performance, collecting data feedback and extending the range of services available to guests, are examples of uses of systems.

Remaining competitive means providing customer service at the front of house and beyond with as much efficiency as technology will allow. Fidelio (guest reservations programme), cashier, banking, accounting, book keeping and cost control systems has been advancing for sometime now. However, the latest systems to be taken up by many hotel chains are booking online options, customer service performance tracking, and email feedback forms.

Check in/out and booking online

When it comes to booking a hotel online, Compete's research reveals that Baby Boomers (aged 45 to 64) are the most likely to be internet shoppers. Statistically, over 10% of the 17 million Baby Boomers who look online for travel and holiday opportunities, will also book online. This is considerably more than travellers of other age groups. The younger tend to window-shop, and Seniors are often uncomfortable when purchasing from the web.

In search of more time-saving solutions which take the queuing and chore out of travelling, this year Quantas and the Accor deluxe hotel group, Sofitel have teamed up to give customers the ability to check in for their flight from their hotel. Checking in and receiving a boarding pass at the hotel means more time for relaxation or energy for business. This service is believed to be particularly beneficial to business travellers.

Similarly, Hilton Hotels have also made moves to expand their ‘check in’ services for guests by providing multifunctional kiosks. The kiosks have new technology which fortunately comes with step-by-step instructions. Guests can view their hotel reservations, check-in to the hotel, obtain the room key and look up any pre-arrival messages. At the end of the stay, the guest can check-out at a kiosk, review and pay their bill, confirming or change method of payment and print or email home the receipt.

Hilton Kiosks also enables a guest to use an airlines' own web page and check in for their flight, change seats, request upgrades and print their boarding pass at no extra cost. There is the possibility to print boarding passes for 18 major airlines

Since this is only present in some Hilton hotels, and only of interest to some guests, there is still Hotel staff at the Front desk. Greeting guests, answer questions and assisting (if needed, at the kiosks) means that traditional front-desk services and guest relations do continue.

Guestware

GuestWare, the lodging industry's leading customer relationship management (CRM) programme, has many different functions. It is often used as a means to measure problem resolution, track for defects and provide evidence useful in process improvement.

One function of this software is a means to track service quality. There is the possibility with this programme to record reoccurring problems. Hotel staff log details such as, guest name, room number, incident type, how the incident was resolved, who resolved it and whether compensation was provided to the guest in a database. These incident reports enable managers to identify types of incidences as well as problems by room. Identification of issues now not only means timely solutions but with detailed records mean the opportunity to solved/eradicate many problems altogether.

GuestWare is operational in several Marriott hotels and has been found successful: ‘A stay at a hotel, without needing to report problems is highly rated by guests and satisfied guests is a great way to build loyalty.’

Feedback Surveys via email

A good innovation in customer satisfaction studies, relating to performance measures and a use of the internet, is collecting data via email surveys. This, an interesting and new evolution is considered very effective.

As a reader of 4hoteliers has recently commented “When I returned from a recent trip to San Francisco, I found customer satisfaction surveys from my hotel (The White Swan, which is part of an association of small hotels,) and two restaurants I booked through opentable.com. This was an outstanding idea! Who has time to fill out surveys when you are checking out? Yet, to be thorough, a guest does not want to complete the survey before check-out. (And if you notice – many hotels do not include post-paid service to return satisfaction surveys.)”

Overall, technology is getting more advanced, more multifunctional and therefore offering a wider spectrum of practical uses. The cost of software and systems and the need to train and keep training staff is an expensive business but for many this is clearly a worth while expense.

At the forefront for many enthusiasts is that technology will in addition to its tangible day to day functions, also enhance brand loyalty.

How to solve the hospitality leadership puzzle.

“There is no such thing as a perfect leader, either in the past or present, in China or elsewhere - If there is one, he is only pretending, like a pig inverting spring onions into his nose in an effort to look like an elephant”. Liu Shao-Chi

It may be true that there is no such thing as the perfect leader – leaders are human, after all. However, that is not to say that people who hold leadership positions in the hospitality industry should not continually seek to improve their leadership skills.

How often have we worked for managers, senior to ourselves, and have asked ourselves “How did he get to that position?”? Some appear not to have any clear idea where they are taking their organisation; others preside over people who are frustrated, demotivated and in constant conflict within teams and between teams.

Comments such as “nobody tells us anything”, “nobody listens to us” and “there is a rumour going round that …” are heard throughout the organisation.

These managers hardly set an example for others to follow. They may have a badge on their suit or their office door that pronounces them ‘Chief Executive’; ‘Catering Manager’; or ‘Head Chef’ but do these ‘badge holders’ display all the necessary qualities to inspire others to follow them?

In order to measure managers’ leadership skills, we need to identify the essential qualities of an effective leader. In my view they are six in number:

* A Leader is a visionary
* A Leader sets an example
* A Leader understands what motivates each team member
* A Leader builds supportive relationships
* A Leader empowers others to reach their potential
* A Leader understands the power of communications

These are the six components that each leader must work hard at continually and consistently applying and, most importantly, demonstrating in all he or she does. Think of it as a jigsaw – The Leadership Jigsaw™. Unless all six pieces are in place, the leader will not achieve his or her potential, nor will those looking to following their leader.

No one aspiring to lead a high-performing team can do so if they are ‘one piece short of a jigsaw’! Let’s consider each piece in a little more detail.

Vision. Leadership involves taking people on a journey but, if people are to follow, the journey must not be into the unknown. Such destinations may work for Captain Kirk of the Starship Enterprise but they will not work for modern-day leaders with their feet placed firmly on terra-firma!

A person holding a leadership position without a clear vision, or the ability to communicate one effectively, will be heading into darkness (probably alone!).

Creating a vision must, by its very nature, be one of the foremost roles of a leader – as it sets a positive theme for the future. A vision is, however, more than a mere mission statement, which can be merely be a set of fine words designed more for the benefit of shareholders reading the company prospectus than its employees.

For the average caterer, working for a company that’s mission is to be ‘world class’ offers little relevance and even less inspiration. A leader’s vision – which he or she personally associates themselves with – should appeal to people at an emotional level, as well as a practical one.

It should be meaningful, relevant and inspirational: encouraging people to buy into it willingly. When leaders express their vision in a way that touches their followers, they invite strong commitment: a common purpose that focuses people on a shared, mutually beneficial objective.

“A leader shapes and shares a vision which gives point to the work of others”
Charles Handy

Example. One of the most important and effective qualities leaders can display is consistently and visibly to link the values they stand for with their everyday actions. Indeed, consistency and visibility are the keys.

People respect and follow leaders whose behaviour mirrors their words; they have no respect for leaders who say one thing and do another. “Do as I say, not as I do” is simply not good enough in today’s workplace.

Managers should, therefore, look hard into the mirror and consider what they see. Example is a reflection of the beliefs and values of the individual and it is important to clarify these in oneself. A good starting point would be to ask “Do I lead in such a way that I would willingly follow myself?

Do I consistently demonstrate leadership qualities that I would recognise in leaders that I, myself, respect?” You can be sure of one thing: you may not be continually assessing your performance as a leader, but your team will be! They will be watching your every move and taking a lead from you.

"The leaders acts as though everyone is watching, even when no-one is watching”
Brian Tracy

Motivation. Having a vision is one thing: selling it in a way that others want to realise it is quite another. The leader’s role is to focus the energies of followers on shared goals and to motivate them to achieve those goals.

Of course, there have been leaders who gained and manipulated their power through force and fear. Yet it is leaders who inspire and encourage their followers who have long-term success and are remembered well into the future.

Yet everybody is different and responds to different stimuli. Truly great leaders understand their followers: they understand their needs, their dreams, their fears, their emotions – what ‘makes them tick’. It is an understanding of the impact of differing needs on different people that is vital for effective leadership.

The great leader inspires others to achieve the vision by focusing on each individual’s motivations. Moreover, understanding individual drivers will improve the performance of the whole group as it is the interactions between individuals that determines team effort.

One of the greatest motivators is to believe that you are contributing to your team’s success and, hence, to the success of the overall vision. People need to believe that they are playing their part, hence successful leaders ensure that team members receive the recognition their efforts deserve.

Leaders must work hard, on a day-to-day basis, to find ways of making people feel valued for their contribution. In my experience of working with junior catering managers across the country, a belief that they are not valued for their efforts is one of the most commonly found demotivators.

Restaurant Rent: How Much is Too Much?

The question of how much rent a restaurant operation can afford to pay is explored using examples of fixed rent and percentage rent. The relationship between gross sales and rent paid is discussed.

In 2002 I wrote a two-part article on restaurant valuation that was published in The Real Estate Finance Journal - Fall 2002. The article is on the HVS International web site and I regularly receive email and telephone calls from people who have read the article and have used the information in it to lower their real estate taxes, negotiate a selling price for a partner buyout, or determine a reasonable amount to pay for the purchase of an existing restaurant business.

One email posed this question: "I am looking at renting a large restaurant that is approximately four years old. In its first year of operation the restaurant did $2,000,000 in sales. Most recently the restaurant did $1,200,000 in sales. The landlord has approached me with the following offer. Base rent of $10,000 per month plus $10,000 per month triple net charges, and $3,200 per month for kitchen equipment rent, which equals $23,200 per month, or $278,400 per year. Is this too much rent to pay when the landlord thinks that sales volume of $1,500,000 can be easily attained and rent would equal 18.6% of annual sales?"

I have owned a restaurant for 28 years and have appraised restaurants and hotels for almost 20 years. Based on my personal experience in the restaurant business I stated in my restaurant valuation article that restaurants cannot afford to pay more than 5% to 8% of gross sales in rent and still have net operating income left over to provide a return on and of the restaurant operator's investment in the business. Applying this percentage rent guideline to the lease terms shown above, in order to afford $278,400 in annual rent the restaurant operator would need to generate annual gross sales as follows:

$278,400 Annual Rent ÷ 5% of Gross Sales = $5,568,000 Gross Sales
$278,400 Annual Rent ÷ 6% of Gross Sales = $4,640,000 Gross Sales
$278,400 Annual Rent ÷ 7% of Gross Sales = $3,977,143 Gross Sales
$278,400 Annual Rent ÷ 8% of Gross Sales = $3,480,000 Gross Sales

Because annual rent is a fixed amount in this example, the gross sales necessary to cover rent over the range of percentages of gross sales declines as the rent expressed as a percentage of sales increases.

The restaurant business, like many businesses, is managed by ratios of expenses to gross sales. There are fixed costs and variable costs that a restaurant owner must control in order to run a profitable operation. The two largest controllable cost categories are cost-of-goods-sold and labor. These two cost categories are called Prime Costs, and the two together cannot exceed 62% to 68% of gross sales if the restaurant is to stay in business and be profitable over the long run. All other expenses together, including rent, or occupancy cost, should be held in the range of 24% to 32% of gross sales if the restaurant is to run at a profit.

Within the category of Prime Costs, cost-of-goods-sold and labor can vary by type of operation, as long as the total of the two does not exceed 62% to 68% of sales. For example, a steakhouse that sells high cost items such as filet mignon, New York strip steak, and fresh Maine lobster may run a food cost of 38% to 40%, but have a labor cost of 22% to 30% of sales and still have a total Prime Cost of 62% to 68%. Conversely, a quick-service restaurant may need more labor to produce low-cost, low-priced food items quickly and labor cost can be 34% to 40%, with a food cost range between 22% and 34%, and Prime Costs stay within the range of 62% to 68%.

To illustrate the effect of paying rent on the profitability of a restaurant I have taken an actual operating statement for a restaurant that operates in owned real estate and pays no rent, and applied different rent percentages to gross sales to examine the effect on net operating income before income taxes, depreciation, and amortization (EBITDA).

Protocol for Tea, Juice and Coffee Service in the Middle East.

In the real world of the service industry in the Middle East it's the little things that make a huge difference, the day-to-day interactions that you need to know in order to avoid unpleasant little surprises.

Juice Service
If your lady is receiving female guests, a selection of juices and water is offered upon arrival. The juice must be fresh and can be plain or made up of combinations; I have also seen some houses that use yoghurt in their juice selection. Do not use canned or packet juices/drinks, especially pineapple (trust me on this one!).

Combinations could include: orange and mango, lemon-lime and kiwi, strawberry and mandarin to name a few. The regular variety would be watermelon, sweet melon (similar to honey dew), lemon, carrot and orange. You would only offer the guests juice once...then tea service would follow.

Typical Tea Service
Tea service would include a pot of Moroccan mint tea (make it with gunpowder green tea sprinkled over sprigs of fresh, common mint, add water, boil then strain). This will generally be served in a silver Moroccan tea pot. Red tea is also provided (what people in the West refer to as normal tea; your favorite or English Breakfast). This is served in a regular china tea pot.

Moroccan tea would be served in Moroccan-style glasses, red in regular tea cups. Milk and sugar (cubes only) and sweet 'n low (or similar sweetener) would be offered. Coffee generally would not be offered to ladies unless requested.

Following tea there would be an offering of what in the East is called "sweet items or salt." These can vary from house to house: from Moroccan-style biscuits to cakes, sandwiches or hot finger food. After offering food, you offer another round of tea. You don't generally offer a second round of food, unless specifically requested. The serving dishes are to be loaded full and "mountain style" (stacked like a pyramid formation). The selection you are offering should not be mixed on the same platter either. One dish/one type of food.

Arabic Coffee Service ( Ghawa)
This follows tea service to indicate that the meeting etc. is coming to an end. Sometimes Ghawa (Arabic coffee) would be brought out in a Dulla (a typical Arabic coffee pot) and poured from the left hand only into Ghawa cups that are held in the right hand, which are stacked inside each other (normally up to 6 at one time).

If more cups are required, one staff member would follow with more cups on a tray or holder. The pourer would pour a round, then go around again and offer seconds - which are poured into the same cup. If the guest does not want a refill, they will shake their cup from side to side indicating 'no, thank you' and will place it on the stack back in your right hand. If you were working in the Middle East, there would be someone designated to making the Ghawa. Some people/houses like to add Saffron to it as well.

Oud/Bahoor Service
Oud or Bahoor is a fragrant wood or a little incense ball of a strong perfume smell/scent which is placed on what is commonly called 'Magic Charcoal' or real charcoal which is placed on top of a burner. The Oud, or Bahoor, is then placed onto the hot charcoal to smoke away; the pieces of wood are offered to guests to waft the smoke onto their clothing; it is a polite Arabic way of saying 'party over'. Oud is very expensive and is mostly used by the royal family.

The size of the piece of wood denotes the importance of the guest: the bigger the piece, the more important the guest. The smell is very typical of the East and clings. Arabs love it. Normally it is kept in a safe or under lock and key.

Mastica
Mastica is imported from Greece and comes in the form of little dried balls of sap. It has a very distinctive smell and, like Oud and Bahoor, it is placed on the hot charcoal to smoke away, You use Mastica after you have cleared the dining room so as to remove food smells, of which the Arabs are very particular (hence there is always another kitchen out the back of the house for cooking). Bahoor could also be used to remove or mask smells...but never Oud.

Note!
Make sure you turn the smoke alarm system off before offering Oud or Bahoor to the guests... ( trust me on that one as well!).

If the guests are men, just add Ghawa at the beginning of their visit, before the juice, and again at the end before offering Oud.

Setting Your Restaurant Up For Success: The Importance of Operating Systems.

Documented operating systems and policies are absolutely critical to the long-term success of any restaurant operation.

Reduced turnover, increased morale, improved consistency and enhanced value are only some of the benefits that can be realized.

Based upon numerous HVS Restaurant Management & Advisory Services audits, most restaurant operators leave money on the table by not standardizing operating processes and putting state-of-the-art systems in place. Often, for hotel and country club operators, food service is an afterthought because in the mind of most managers, restaurants have historically lost money.

Although creating operating manuals, writing job descriptions and training guides, along with documenting processes may seem like tedious tasks, having such systems in place is absolutely critical for the long-term success of any restaurant operation.

There are several immediate benefits that a restaurant will realize as a result of standardizing its operation:

Reduced Management Time

Managers will have more time to devote to building/leading the business instead of working in it (marketing, community involvement and promotions planning are but a few of the things that can be accomplished).

Enhanced Value

When it comes time to either sell the operation or obtain financing, a new buyer or lender will see that food and beverage success is not dependent upon the owner/manager.

Consistent Service & Food

Repeat performances by both culinary and service staff across all day-parts (weeks and months) will delight your guests and bring them back.

Decrease Turnover/Increased Morale

Strong recruiting and training systems make for a competent and confident staff who will know what is expected of them and are therefore free to focus on guests.

In addition to the advantages described above, there are many quantifiable benefits that an operation will realize as a result of standardizing its operation. For example, subsequent to a recent audit a client experienced the following results after implementing a range of recommended improvements:

* Reduced labor costs by more than $1,200 per month
* Reduced food cost by 4.4%
* Generated an additional $9,750 in net average revenues per month

If your restaurant requires too much of your time being involved in day-to-day operations, experiences high employee turnover, or delivers inconsistent food or service, taking the time to put organizational and operational systems in place is a step worth considering.

Menu Trends Has Become The Main Focus.

It was standing room only Monday during an education session given by Nancy Kruse; president of The Kruse Co

Kruse's session "On the Menu: What's Hot, What's Not and What's Next" focused on seven major menu trends: flavorful foods; ethnic adventures; healthy perceptions; contemporary comfort; convenient options; affordable indulgence; and culinary fingerprints.

Kruse said the trends were tracked based on the top 200 restaurant chains. She also analyzed trends based on seven menu hot spots: breakfast, appetizers, salads, sandwiches, sides, center of plate, dessert and beverages.

Here are a few highlights:

Breakfast

According to the 2006 report from Packaged Foods, "The Revolution in Dayparts: Breakfast in the Foodservice Market" the current domestic breakfast market is worth $65 billion. In eight years it is predicted to swell in value to $83 billion.

Kruse says breakfast has been the least active when it comes to new product introductions, but the last several years the daypart has become a major area of hope.

McDonald's has always been the industry leader when it comes to grab-and-go breakfast offerings, but Starbucks, Au Bon Pain, Dunkin' Donuts and other major fast food and quick-serve players are making serious breakfast headway. (Taco Bell, Wendy's and Subway all recently announced their foray into the breakfast business).

Kruse said breakfast trends lean toward grab-and-go products such as Au Bon Pain's Sausage, Egg and Cheese sandwich; comfort items such as Denny's Lumberjack Slam; and ethnic accents such as Carl's Jr.'s Steak and Egg Burrito. While Kruse said the majority of breakfast growth has come from the quick-serve market, fast casual breakfast growth is increasing.

The fast casual article, Brawling over breakfast, points out that market research indicates a growing number of breakfast eaters want a more upscale experience, opening the door for fast casual operators to grab a bigger piece of the breakfast pie.

Salads

Salads are one of the fastest-growing categories on the menu, says Kruse.

With quick-serve and fast casual eateries such as Panera Bread, McDonald's, Arby's and Saladworks, among many others, offering premium salads to diners has almost become a consumer mandate.

Kruse said salads fit the majority of the "big seven" menu trends: flavor foods, ethnic adventures, healthy perceptions, and culinary fingerprints.

Three of the big salad trends include salads as a main dish, with fruit on top and the use of dramatic dressings.

Caesar salad continues to be one the most popular salads, and with the addition of a protein such as fish, chicken, steak or ribs, it fits the trend of salads as a main dish, Kruse says.

"Just about everything that walks on four feet, that swims or flies has made an appearance on top of a Caesar salad," Kruse said.

She used Hops Boneless Short Ribs Caesar as an example along with Logan's Roadhouse Mesquite-Grilled Salmon Caesar.

When it comes to salads with fruit on top, Kruse said Panera Bread's Fuji Chicken Apple Salad and McCormick & Schmick's Curried Shrimp and Blueberry Salad are two prime examples. Arby's has also done a nice job on their Market Fresh salads, including their Martha's Vineyard, which also incorporates apples as a main ingredient.

Kruse said in the fruit category, restaurants should look for more exotic fruit ingredients such as papaya and more specific varieties such as Fuji apples. Additionally, more ethnic ingredients are making an appearance, such as McDonald's Asian Salad with Edamame (an edible soybean). Kruse said historically salad ideas have come from the casual dining restaurant segment, but now "there are as many good ideas bubbling up from quick-service as there are trickling down from the casual dining category."

In terms of dressing, bold flavors and healthier alternatives are meeting consumer demand.

Einstein Bros.' use of an Orange-Pomegranate Vinaigrette (Pomegranate is also a huge flavor trend right now, says Kruse) and Houlihan's Banana-Ginger Vinaigrette also were highlighted.

Sandwich

Top trends in the sandwich category include warm sandwiches, better breads and creative condiments, says Kruse. Additionally, the uses of indulgent or upmarket proteins, such as prime rib, are showing up on menus across all restaurant segments.

Kruse said warm sandwiches enhance the sensory appeal experienced by consumers. But secondly, and most importantly, she said, warm sandwiches could be seen as a way for restaurants to put their foot in the door at dinnertime.

Dinnertime is proving to be an increasingly important daypart for fast casual and quick-serve chains looking to increase their dining footprint. And with the addition of signature breads and fresh produce, the sandwich category is experiencing a menu shift.

Kruse said simple sandwich applications, such as Au Bon Pain' Thai Chicken Sandwich with Peanut Sauce, appeals to the consumer interest in healthy ingredients and ethnic flavors. Additionally, chains are introducing sandwiches with ethnic backgrounds such as Corner Bakery's New Chicken Pomodori Panini.

Don't be a Clown in the Kitchen.

Clowning around in the kitchen can be a dangerous act -

And if you’re not careful, it can lead to serious employee injuries as well as become a potential food safety threat. In today’s competitive foodservice climate, it may be tempting to relegate employee safety to a side show.

However, by moving foodservice workers’ safety to the center ring, companies can accomplish many of their significant goals. A company that has an active safety program not only sees a reduction in workers’ compensation costs and staff turnover but also experiences an increase in employee productivity.1 A safe work environment leads to benefits for customers as well.

Customers benefit from consistent food quality, timely service and an improved company reputation. Managers and employees must keep safety in the center ring by following all safety practices. In order for a company to experience the benefits of an established safety program, a thorough hazard assessment should be conducted. A hazard assessment is an identification and analysis of all injury-producing conditions and instruments in the workplace.

It includes a review of existing controls, work practices and personal protective equipment. The assessment also includes determining where new controls or work practices will benefit the goal of injury prevention and workplace safety.

Pacing Is Critical in Restaurant Meals.

A study explains how to increase a restaurant’s table turns by adjusting the pace of a meal -

By dividing the meal into three parts, we were able to determine where a restaurant may pick up the pace and where it must not rush.

“The first stage, which we call pre-process, can be relatively brisk, including greeting and ordering food. However, once the drinks are on the table and the meal is in progress, we found that diners are unhappy when they feel rushed.”

By contrast, the researchers found that diners had a much greater tolerance for speed in what they called the post-process stage, which occurs with check settlement and departure after the meal is consumed.

One exception to this observation occurred in fine-dining restaurants, where guests prefer not to be rushed at any point of the meal.

The article, "The Effect of Meal Pace on Customer Satisfaction", published in the August 2007 CQ (Volume 48, No. 3), is available for download at no charge from the Center for Hospitality Research www.hotelschool.cornell.edu/publications/hraq/feature , publisher of the Cornell Quarterly.

In this study, researchers Breffni Noone, Sheryl Kimes, Anna S. Mattila, and Jochen Wirtz determined that guests can be rushed through certain parts of the meal, while other sections of the meal must proceed at the guests' pace. Noone is an assistant professor at Pennsylvania State University; Kimes is a professor at the Cornell University School of Hotel Administration; Mattila is an associate professor at Pennsylvania State University; and Wirtz is an associate professor at the National University of Singapore.

Study Finds Restaurants Make Wise Use of Capital.

A commonly used assessment of a company’s short term liquidity paints too pessimistic a picture of restaurants, according to a new study from the Cornell Center for Hospitality Research.

The study, “Short-term Liquidity Measures for Restaurant Firms: Static Measures Don’t Tell the Full Story,” analyzed restaurants using an integrative measure of liquidity, which takes into account both the firm’s operating and financial sources of capital.

Liquidity measures attempt to gauge a company’s ability to cover its short-term financial obligations. The most common approach is to apply static measures, such as the current ratio or the quick ratio. But those measures assume that the company’s current assets are being sold.

In contrast, the dynamic measures take into account a company’s ability to generate operating capital—that is, to cover its obligations and continue to operate. “We compared restaurant and manufacturing firms using both static measures of liquidity and dynamic measures,” said Canina. “The static measures imply that manufacturing companies are far more liquid than are restaurant companies, but the integrative framework told a different story.”

In the dynamic test, restaurant firms were shown to be more liquid than were manufacturing firms, based on their financial and operating liquidity. “Our analysis suggests that financial analysts, creditors, and managers should evaluate both dynamic liquidity measures and static measures in assessing short-term liquidity,” Canina added. “We believe that this finding that restaurants, particularly owner-operator firms, have high operating liquidity should be an argument for favorable financing terms, even though static ratios make restaurants seem like poor short-term risks.”

Keep Your Waste Disposal Costs Under Control.

Waste management is entrenched as the least exciting aspect of the lodging industry -

Aside from the obvious unpleasantness, waste disposal is a comparatively small expense and is often thought of as, “out of sight, out of mind.”

Even so, the nascent green lodging movement has taken trash and recycling from the loading dock and parking lot and into the executive offices. There, the movement has quickly established itself as a viable way to control costs, enhance guest satisfaction and improve occupancy.

While the economic benefits of going green are straightforward, the difficulty in executing a green lodging waste initiative boils down to the fact that it can be time consuming. While there are many resources advising hotel operators what to do, there are few resources who can actually step in and do it, saving managers time and money and helping them avoid missteps along the way. Consequently, this low hanging fruit is often ignored or abandoned after a couple of false starts.

To help stay on top of waste disposal costs, you need to do the following:

Remove Automatic Renewal Language In Your Contract

Standard waste vendor contracts include language that automatically extends existing rates and terms if certain notices aren’t properly given within a stated window of opportunity. Failing to give the proper notice means you forfeit your opportunity to improve rates and terms. To combat this, immediately send your vendor notice that you are canceling this language by certified letter, return receipt.

Don’t Rely on Competitive Bidding As Your Primary Cost Control

While competitive bidding may get you a decent price, it doesn’t guarantee you the exact service that you need. Haulers will ask what you have now and bid on that. Rarely will they spend the time to conduct a customized needs analysis for you. If you have an eight-yard dumpster, but really need a four-yard dumpster, getting a good price is meaningless because you’d still pay twice as much as you should.

Periodically Monitor the Waste Industry

Ask an administrative assistant to do an Internet search periodically. If a hotel operator had searched earlier this year, he’d be forewarned that the largest companies in the waste industry, like Waste Management Inc., and Allied Waste Systems, are focusing on return on capital, much of which is coming from price increases.

Don't Buy Into the Myth Of ‘National Purchasing Leverage’

Waste disposal pricing, and the vendor’s costs, are largely a function of the distance from a property’s dumpster to the vendor’s nearest landfill. So while “purchasing leverage” does entail some discounting, it is really a misnomer for administrative simplification, where the hotel operator leaves money on the table in exchange for time. In particular, hotel operators who work with waste brokers sacrifice transparency and control because they no longer see the actual waste and recycling vendor invoices. This gives the waste broker the opportunity to operate with, and profit from, an additional margin.

Don't Accept Price Increases Without Question

Waste vendors prepare for a percentage of their customers to refuse their price increases using actuarial techniques. Also, the sales managers instruct their staff not to lose any business over a price hike. So the next time you’re notified of a price increase, be sure to call them up and challenge it.

Be Clear on How Waste Bans and Laws Impact Your Costs and Liability

The bulk of a standard waste hauler agreement is language that limits their liability. Your vendor will not advise you nor guide you with respect to waste recycling requirements and regulations. You alone are responsible to ensure compliance and know that your hauler may provide services that expose your organization to financial risk and other penalties simply because it’s cheaper for them to operate that way.

Capture and Recycle All Valuable Commodities

There’s big money in selling cardboard, cans and plastic, so recycling service costs should be lower than those for solid waste. Managers should verify that the lower cost structure is passed along to them, not pocketed by the hauler. If there is space for one or more recycling containers, separating recyclables from waste should be carefully considered. Composting should also be considered for larger properties. Operators can reap community service and publicity benefits by considering local options for recycling like nonprofits and small businesses.

Identify and Correct Problems With Waste Collection Equipment

At larger properties, compactors are the equipment of choice. Like everything else, they require periodic maintenance, but it’s most often up to the hotel operator to ask for a checkup. Compactors should have working, accurate pressure gauges so staff can accurately monitor capacity. If you don’t have a pressure gauge, demand one from your vendor. In either case, it’s advisable to have an independent third party verify that the compactor’s pressure limit switches meet the manufacturer’s specifications. If they are lower than spec, you’ll pay for more frequent pickups, which makes your hauler more money.

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Personalized Luxury

Jumeirah Living makes life luxurious. Beautiful, spacious residences in which to stay and live, managed by Jumeirah - a name synonymous with luxury hospitality.

Jumeirah Living offers residences that cater to your individual style for effortless living. Focusing on your requirements, our commitment is to achieve your ideas and to create your own personal haven.

Jumeirah Living embraces the renowned Jumeirah hallmarks to offer the best of hotel living, but with complete independence.

Ideally suited for short, mid term and extended stays.

Living Signatures

Jumeirah Living gives you the lifestyle you deserve. Unwind and fully indulge in a range of five star services that are tailored to you. Our dedicated Lifestyle Concierge team will be available to personalize your space and to offer pre-arrival services including stocking your fridge with all your favorite foods. For our longer staying guests - we can color your walls, decorate your child’s bedroom or even create your own home gym.

Our luxury facilities also extend to a Deli, delivering sumptuous meals for
every palate, and a Club lounge bringing you an enjoyable social hub.
Feel at home and totally relaxed to enjoy the better things in life.

Future Properties

Jumeirah Living is dedicated to creating an effortless lifestyle for you.
With properties in distinctive Dubai locations including: a prime beach side setting, in the heart of the commercial Trade Center, as well as the
hub of the financial center.

Future properties planned worldwide.