Chapter 11) The process of taking a known brand and opening that facility in a business, hos-pital, or a school.2) The profitability percentage of a sold guest room is usually higher than from sell-ing a meal. 3) A guest room is a perishable product, if not sold on any one night...that revenue is lost forever. 4) Non-commercial food service industry...schools, hospitals, prisons, corporate of-fice buildings. 5) “The Moment of Truth” A term used in the service industry, refers to any time the guest comes in contact with anyone or anything that represents the operation. It can-not be taken back, or done over again. 6) The Food Service industry is growing at dramatic rate. 7) The hospitality product is intangible, The manufacturing product is tangible. 8) Fast or quick service is the largest segment of the food industry.9) Private clubs.....10) In todays economy, the service industries dominates. 11) Ratio between guests and workers...12) Taking good care of the guests is the single most critical element for success. 13) Being consistent...14) Fusion...Chapter 21) Ellsworth Statler, his hotels offered comfortable accommodations and a full rangeof services previously offered only in luxury hotels. They were moderately priced and targeted toward the economic middle class. 2) Inexpensive lodging was common throughout U.S. but quality was inconsistent orpoor.3) The urban locations of hotels became problematic as highway construction/main-tenance improved, more people traveled by automobile.4) The industrial revolution created new wealth among investors and business own-ers, this contributed to the widespread emergence of an economic middle class. 5) Independent restaurants emerged in Europe and America during the 18th and 19th centuries.6) Steam ships were intended to cater to wealthy industrialists and their families.7) The original purpose of ocean liners was to transport people and cargo from point to point. 8) Franchising has become a widespread method of growing brands. The restau-rant industry has organized into segments based on price and quality. The industry has become consolidated through acquisition. The chain paradigm has matured to encompass concepts in every segment.9) In 1958 the jet engine was introduced to commercial passenger aircraft, making intercontinental air travel fast and safe.10) Disneyland opened in Anaheim, CA in 1955, it was the most important moment in the history of theme parks.11) Increase in amusement parks..Chapter 41) The hospitality industry is always open-some aspect; long hours on your feet; limited free time; “we work when others play” 2) A well written thank you letter can make you stand out from the others; very rarely done3) Mail your thank you letter the same day of the interview 4) The cover letter introduces you5) Four major career fields: food, lodging, tourism, recreation6) in addition to base salary, many jobs have a commission, shared gratuity, or bonus plan that pays up to 40% of salary as incentive compensation.7) Expand your social network....8) The resume is the document considered your personal advertisement 9) Enthusiasm is the single most important quality that a potential employee should have. Chapter 51) Someone who owns a business and operates that business on a smaller scale than a large chain or corporate business. 2) Advantages of independent operator: Easy to implement changes, no corporate policies and procedures that could slow down any change. Disadvantages: Do nothave backing of corporate headquarters, either financially or operationally, economies of scale (less volume = higher cost), not a proven “name” to the public.3) The hospitality industry is a great industry to become an independent operator because low barriers to entry, of lower start up costs relative to other industries, gen-erally fewer restrictions exist. Also, there are a wide range of types of opportunities.4) An independent operator is someone who operates a business on their own with-out any large corporation and infrastructure behind them; whose goal is typically for revenue growth, but not necessarily unit growth. Entrepreneur is someone who is willing to take the risk to start a business, manages a business, and assumes the riskand rewards of a business. They also would like to grow the business. They also would like to grow the business in revenue as well as in the number of units.5) 5 characteristics of a successful single unit restaurant manager: 1. Organiza-tional skills 2. Interpersonal skills 3. Restaurant experience, knowledge and skills 4. Honesty, integrity and strong ethics 5. Leadership skills 6) LLC= Limited Liability Corporation- limits the amount of exposure that the owner has on their personal assets, Liability is limited to the assets of the corporation. 7) The S corporation, similar but more formal, than an LLC, more documents tom complete. Must have a board of directors; shareholders. Less flexibility in operations. More administrative issues; costs more to operate. Taxed like a corporation. Owner’s personal assets are protected. 8) Sole Proprietorship, very easy to form. no cost to start up. owner of the business makes the decisions. No operational formalities exist. all revenues al expenses tied to owner, as well as all liability; owner’s personal assets are exposed. 9) Angel investor- one who is interested in investing in a new business or concept; gives capital exchange for ownership equality in company. 10) Single unit manger has only the responsibility of the single unit as their primary
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