Chapter 21 Distribution service industry helps hospitality enterprises get their products and services from creation to consumption Purchasing agents information technology accountants HR warehouse managers delivery drivers food inspectors street sales Distribution services are the backbone of the hospitality Require salespeople to meet face to face with hospitality operators weekly or more often Sales reps provide info on cost cutting ideas introduce new or improved products assist in menu development Personal interaction creates a working relationship between the hospitality industry and its vendors Food Distribution Price quality and quantity of food products are determined by chefs and kitchen managers each day Food vendors seek former restaurant managers and employees with knowledge of food products and operations to fill positions Food Distributors vendors or purveyors Food product suppliers work directly with farmers meat and poultry packaging plants fish and seafood houses dairies food processing plants Standing orders the operators receive the same quantity of food products each day Meats and poultry delivered three to four days a week Dry canned frozen food coffee beverages delivered once or twice a week Some food distributors carry a full line of food products produce meats and poultry seafood dairy coffee and beverages bread and baked goods dry canned frozen products Ex Sysco provides a full line of food products food service equipment paper products cleaning supplies kitchen design cost cutting consultation US Food service and Sysco employ sales representatives and are considered total suppliers Supply everything from brand name products to equipment and supplies System distributors are commonly owned by the same corporations that own the chain food service operations Food Service Design An integral relationship exists between equipment planning productivity and presentation of the final product A food service consultant provides services through the design and construction phases until the business is on stable footing Liquor Distribution Wine beer spirits are typically purchased on a weekly basis Starts with the producers and ends on the guests palates Sales reps work closely with wine producers and distributors Pass along their knowledge to restaurant club bar catering operations Sales rep must be familiar with domestic and international wines liqueurs beers spirits Positions in purchasing accounting and finance warehouse management and marketing Equipment and Supplies All food service operations purchase nonfood products from vendors The equipment and supply industry works directly with food service operations Offer consulting advice in kitchen design and layout equipment menu design sanitation needs Edward Don Co specializes in providing equipment and supplies leader in food service equipment distribution Provides food service equip and supplies to restaurants gov institutions hospitals hotels schools Designs and builds full service kitchens for food service Founded in Chicago Restaurant Equipment World world leader of online restaurant equipment sales installations design export Site features REX the restaurant equipment search engine Distributor sales representatives earn income based on some combination of total sales collected and percent of gross margin on products sold Territories geographical area in which distributor sales reps sell their wares Furniture Fixtures and Equipment FF E Three distinct types of purchasing Operating Supplies and disposables and food and beverage items are purchases that can be performed through computerized programs More than 50 of nation s restaurants bars are smoke free est to be 70 by year s end National Restaurant Association American Hotel and Lodging Associations help keep you on top of public policy and legal matters that affect the hospitality industry New trends more ethnic food and healthier option Chapter 23 Hospitality firms employ real estate specialists including market analysts location analysts and lease negotiators Or you can be an independent appraiser or work for a lender private investor or real estate brokerage firm Company Real Estate Representatives Many large corporations employ a real estate director and one or more real estate reps They are responsible for 1 Performing location analyses evaluating real estate sites to determine whether the company should construct new businesses in these locations 2 Evaluating existing business locations from the perspective of acquiring and managing the business that is situated there 3 Working with the hospitality company s franchisees if the firm franchises its business to assist with site selection decisions provide design advice or help coordinate the activities of the company s internal resources with the franchisees 4 Working with a variety of external agents for example negotiating lease or purchase agreements with brokers and or owners Interfacing with the company s legal construction operations and financial personnel 5 Real estate appraisers are employed to render estimates of value Trained to value various assets real estate furniture fixtures equipment collectibles artifacts going concern businesses Engage appraisers commercial lenders investors sellers insurance companies contractors attorneys accountants pension funds other entities with a financial stake in a hospitality project Appraisers tend to specialize in a particular category and not in a particular category Brokers play a valuable role by serving as an intermediary in a real estate sales transaction Some sales associates represent sellers and some represent buyers Few represent both in a transaction because doing so may be a conflict of interest In a typical sales transaction the seller pays the commission which is then divided among the relevant sales offices that helped consummate the deal Vacation Ownership firm is in business to sell long term vacation packages to guests Sell slices of time sell a guest the right to use a vacation apartment hotel room or condominium for a specified time period per year for several years at a specific property in a specific location Guests who prepay for vacations usually have the option of swapping their time at one location for comparable time at other vacation locations that are part of a time share exchange network The prepaid vacation is an economical alternative to paying for vacations every year The guest only needs to pay a maintenance fee each year
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