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Library of Congress Cataloging-in-Publication Data:

Barrows, Clayton W.

Introduction to management in the hospitality industry / Clayton W. Barrows, Tom Powers. -- 9th ed. p. cm.

In earlier ed. of work, Tom Powers name was listed first on t.p. Includes index.

ISBN 978-0-471-78277-3 (cloth)

1. Hospitality industry--Management. I. Powers, Thomas F. II. Powers, Thomas F. Introduction to management in the hospitality industry. III. Title.

TX911.3.M27P68 2008 647.94068--dc22

2007021306

Printed in the United States of America

6 5 4 3 2

Preface xviii

PART

ONE:

PERSPECTIVES

CAREERS

HOSPITALITY

CHAPTER 1: THE HOSPITALITY INDUSTRY AND YOU

What Is Hospitality Management?

The Manager’s Role in the Hospitality Industry

CASE HISTORY 1.1: A Former Student’s Unexpected Change

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

■ Globalization

Summary

Key Words and Concepts

Review Questions

Internet Exercises

Notes

iv Contents

CHAPTER 2: FORCES AFFECTING GROWTH AND CHANGE IN THE
HOSPITALITY INDUSTRY	33
Managing Change	34
Demand	34
The Changing Age Composition of Our Population
INDUSTRY PRACTICE NOTE 2.1: Demographics in Practice	37
Diversity and Cultural Change
GLOBAL HOSPITALITY NOTE 2.1: As North America Ages, Some
Parts of the World Are Getting Younger	41
INDUSTRY PRACTICE NOTE 2.2: Advocacy for the Advancement of
Women in Food Service	46
Supply	48
Land and Its Produce
INDUSTRY PRACTICE NOTE 2.3: Is the Middle Class Shrinking?	49
Labor
Workforce Diversity	53
The Impact of Labor Scarcity	55
Summary	56
Key Words and Concepts	57
Review Questions	57
Internet Exercises	58
Notes	60

PART

TWO:

FOOD

SERVICE

CHAPTER 3: 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 ■ Midscale Restaurants

■ Casual Restaurants

Contents v

CASE HISTORY 3.1: Quark’s Restaurant Serves Earthlings, Too			91
High-Check-Average Restaurants
GLOBAL HOSPITALITY NOTE 3.1: Culinary Preparation			93
Restaurants as Part of a Larger Business			94
Restaurants in Retail Stores ■ Restaurants in Shopping Malls
Summary			95
Key Words and Concepts			96
Review Questions			97
Internet Exercises			97
Notes			98
CHAPTER 4: RESTAURANT OPERATIONS			101
Restaurant Operations			102
The Front of the House	■ The Back of the House	■ The “Office”
INDUSTRY PRACTICE NOTE 4.1: Research Chefs Association			110
General Management
Making a Profit in Food Service Operations			115
Increasing Sales ■ Reducing Costs
Keeping the Score in Operations: Accounting Statements
and Operating Ratios			117
Cost of Sales ■ Controllable Expenses ■ Capital Costs
Life in the Restaurant Business			119
Salary Levels
Summary			122
Key Words and Concepts			122
Review Questions			123
Internet Exercises			123
Notes			125
CHAPTER 5: RESTAURANT INDUSTRY ORGANIZATION: CHAIN, INDEPENDENT,
OR FRANCHISE?			127
Chain Restaurant Systems			128
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

vi Contents

Independent Restaurants				136
Operating Advantages		■ Marketing and Brand Recognition
■ Site Selection	■ Access to Capital
INDUSTRY PRACTICE NOTE 5.1: Working with the SBA				139
INDUSTRY PRACTICE NOTE 5.2: Why Go Public?				140
Purchasing Economies		■ Control and Information Systems ■ Human
Resources ■ The Independent’s Extra: Flexibility ■ The Independent’s
Imperative: Differentiation ■ Between Independent and Chain
Franchised Restaurants				144
The New Franchisee	■ Continuing Franchise Services
INDUSTRY PRACTICE NOTE 5.3: Interested in Becoming a Franchisee?				148
The Franchisee’s View		■ The Franchisor’s View
INDUSTRY PRACTICE NOTE 5.4: Rosenberg International Center				154
of Franchising				154
Franchisor–Franchisee Relations			■ Franchising: A Middle Way
Summary				155
Key Words and Concepts				156
Review Questions				156
Internet Exercises				157
Notes				159
CHAPTER 6: COMPETITIVE FORCES IN FOOD SERVICE				161
Competitive Conditions in Food Service				162
The Marketing Mix				164
Product
CASE HISTORY 6.1: Finding the Proper Marketing Mix—Shakey’s Pizza				165
Price ■ Place—and Places			■ Promotion
INDUSTRY PRACTICE NOTE 6.1: The Wealthiest Consumers				175
Competition with Other Industries				177
Convenience Stores	■ Supermarkets ■ The Home as Competition
Summary				182
Key Words and Concepts				183
Review Questions				184
Internet Exercises				184
Notes				186

Contents vii

CHAPTER 7: ON-SITE FOOD SERVICE					189
Comparing On-Site and Commercial Food Services					190
GLOBAL HOSPITALITY NOTE 7.1: International Perspectives					193
Self-Operated Facilities					193
Managed-Services Companies					194
Pros and Cons of Managed Services
Business and Industry Food Service					196
INDUSTRY PRACTICE NOTE 7.1: Measuring Guest Participation					199
College and University Food Service					200
College Students as Customers
Health Care Food Service					204
The Dietetic Professional			■ The Dietetic Technician ■ The Dietary
Manager		■ Dietary Department Organization ■ Trends in Health Care
Food Service
School and Community Food Service					210
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					221
Recreation		■ Private Clubs		■ Transportation
Vending					224
Summary					227
Key Words and Concepts					228
Review Questions					228
Internet Exercises					228
Notes					231
CHAPTER 8: ISSUES FACING FOOD SERVICE					233
Consumer Concerns					234
Health and Wellness ■ Junk Food and a Hectic Pace
■ Nutritional Labeling
INDUSTRY PRACTICE NOTE 8.1: Defining Health Claims					241
Food Safety and Sanitation			■ Alcohol and Dining

viii Contents

Food Service and the Environment	245
Thinking About Garbage from Dump to Waste Stream	■ Managing the
Waste Stream
Technology	253
Enhancing Customer Service ■ Technology in the Back of the House
INDUSTRY PRACTICE NOTE 8.2: ESP Systems	256
Technology, the Internet, and Food Service Marketing
■ Technology and Management
Summary	259
Key Words and Concepts	260
Review Questions	260
Internet Exercises	261
Notes	263

PART

THREE:

LODGING

265

CHAPTER 9: LODGING: MEETING GUEST NEEDS

267

The Evolution of Lodging

268

The History of Lodging

■ The Evolution of the Motel ■ The Motor Hotel

Classifications of Hotel Properties

271

INDUSTRY PRACTICE NOTE 9.1: Europe: A Continent

of Lodging Distinctiveness

272

Hotels Classified by Price ■ Hotels Classified by Function ■ Hotels

Classified by Location

■ Hotels Classified by Market Segment ■ Other

Hotel Classifications

INDUSTRY PRACTICE NOTE 9.2: Trends in Spa Operations

281

Types of Travelers

285

Business Travelers ■ Other Segments ■ International Travelers

Anticipating Guest Needs in Providing Hospitality Service

287

INDUSTRY PRACTICE NOTE 9.3: Creativity Is Evident in Hotel Properties

288

INDUSTRY PRACTICE NOTE 9.4: The Hotel of the “Not So Distant” Future

289

Service, Service, Service

290

INDUSTRY PRACTICE NOTE 9.5: Hotel Rating Services

292

Employees as the Internal Customers

Contents ix

Summary		296
Key Words and Concepts		298
Review Questions		298
Internet Exercises		299
Notes		300
CHAPTER 10: HOTEL AND LODGING OPERATIONS		303
Major Functional Departments		304
The Rooms Side of the House		307
The Front Office ■ Automation of the Front Office
■ Reservations and Yield Management ■ Housekeeping
■ Telecommunications and Call Accounting Systems
INDUSTRY PRACTICE NOTE 10.1: Housekeeping		316
Uniformed Services Staff
INDUSTRY PRACTICE NOTE 10.2: The Concierge		318
Security
Hotel Food and Beverage Operations		321
Banquets ■ Food Production ■ Sanitation and Utility		■ Leased
Restaurants
Staff and Support Departments		325
Sales and Marketing
INDUSTRY PRACTICE NOTE 10.3: Pros and Cons of Outsourcing
Food and Beverage Operations		326
Accounting	■ Human Resources ■ Engineering
Income and Expense Patterns and Control		329
The Uniform System of Accounts
Entry Ports and Careers		333
Front Office	■ Accounting ■ Sales and Marketing
■ Food and Beverage ■ Owning Your Own Hotel
Summary		336
Key Words and Concepts		337
Review Questions		337
Internet Exercises		337
Notes		339

x Contents

CHAPTER 11: FORCES SHAPING THE HOTEL BUSINESS					341
The Economics of the Hotel Business					342
A Cyclical Business			■ Hotel Cycles and Financial Performance
INDUSTRY PRACTICE NOTE 11.1: Hotel Operations After Katrina					347
RevPAR	■ Hotels as Real Estate ■ International Hotel Development
INDUSTRY PRACTICE NOTE 11.2: Condo-Hotels as Mixed-Use
Developments					353
Private Equity Investments
INDUSTRY PRACTICE NOTE 11.3: The Elements of the Hotel
Real-Estate Deal					354
The Securitization of the Hotel Industry				■ The Hazards of Public
Ownership
CASE HISTORY 11.1: Going Public: Some Good News and Some Bad					362
Dimensions of the Hotel Investment Decision					364
Financial	■ An Operating Business			■ Segmentation: For Guests or
Developers?		■ Management Companies ■ Asset Management
■ Entrepreneurial Opportunities
Summary					369
Key Words and Concepts					370
Review Questions					371
Internet Exercises					371
Notes					373
CHAPTER 12: COMPETITION IN THE LODGING BUSINESS					377
The Conditions of Competition					378
A Fragmented Market ■ A Cyclical Market ■ Cost Structure
■ Securitization			■ Technological Revolution
The Marketing Mix in Lodging					381
Competitive Tactics
Product in a Segmented Market					383
Food Service		■ Other Services and Amenities
INDUSTRY PRACTICE NOTE 12.1: Hotel Honored among World
Business Hotels					392

Systemwide Services

Contents xi

INDUSTRY PRACTICE NOTE 12.2: Franchisors–Franchisees:
A Growing Team Approach	394
Price and Pricing Tactics	395
Yield Management
Place—and Places	399
Location ■ Distribution Channels
INDUSTRY PRACTICE NOTE 12.3: Travel Intermediaries: Utell
Acquires Unirez	401
Promotion: Marketing Communication	405
Advertising in Mass Media ■ Advertising on the Internet
■ Sales Promotion
Summary	408
Key Words and Concepts	409
Review Questions	410
Internet Exercises	410
Notes	411

PART

FOUR:

TRAVEL

AND

TOURISM

413

CHAPTER 13: TOURISM: FRONT AND CENTER

415

The Importance of Tourism

416

Factors Affecting Travel and Tourism ■ Growing Leisure Time?

■ Income Trends ■ Demographics and Travel

Travel Trends

420

Mode of Travel ■ Trip Duration

GLOBAL HOSPITALITY NOTE 13.1: Public Anxiety and the Travel Industry 422

The Economic Significance of Tourism

424

Tourism and Employment

■ Publicity as an Economic Benefit

The United States as an International Tourist Attraction

427

Measuring the Volume ■ Reasons for Growth of the United States as a

Destination

Businesses Serving the Traveler

429

Passenger Transportation

■ Channels of Distribution

■ Reservation Networks

xii Contents

Noneconomic Effects of Tourism			437
Crowding
GLOBAL HOSPITALITY NOTE 13.2: Volunteer Tourism			440
Favorable Noneconomic Effects
Summary			442
Key Words and Concepts			443
Review Questions			443
Internet Exercises			444
Notes			446
CHAPTER 14: DESTINATIONS: TOURISM GENERATORS			449
Motives and Destinations			450
Mass-Market Tourism			454
Planned Play Environments			455
Theme Parks	■ Themes ■ Scale	■ Regional Theme Parks
■ Themes and Cities
INDUSTRY PRACTICE NOTE 14.1: A Different Kind of Theme Park			462
■ Employment and Training Opportunities
Casinos and Gaming			464
Las Vegas ■ Laughlin (Clark County)		■ Atlantic City
■ Mississippi Gulf Coast
CASE HISTORY 14.1: Changes Come to Atlantic City			476
Other Markets	■ Casino Markets and the Business of Casinos
■ Casino Staffing
Urban Entertainment Centers			480
CASE HISTORY 14.2: The National Restaurant Association
Restaurant Show			482
Shopping Centers ■ Zoos, Sanctuaries, and Aquariums
Temporary Attractions: Fairs and Festivals			487
CASE HISTORY 14.3: The New Orleans Jazz Fest			489
Natural Environments			490
On a Lighter Note . . .			492

Contents xiii

Summary	493
Key Words and Concepts	494
Review Questions	494
Internet Exercises	494
Notes	497

PART

FIVE:

MANAGEMENT

THE

HOSPITALITY

INDUSTRY

499

CHAPTER 15: MANAGEMENT: A NEW WAY OF THINKING

501

Management and Supervision

502

The Economizing Society

503

The Managerial Revolution

504

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

509

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?

516

What Is Management?

518

What Is Our Business? ■ In Business for Yourself?

Summary

524

Key Words and Concepts

524

Review Questions

525

Internet Exercises

525

Notes

526

CHAPTER 16: PLANNING IN HOSPITALITY MANAGEMENT

529

Why Study Planning?

530

Planning in Organizations

531

CASE HISTORY 16.1: Planning on an Olympic Scale at ARAMARK

532

Some Planning Concepts

Goal Setting

536

Characteristics of Well-Thought-Out Goals ■ Goal Congruence

■ Goals and Policies

xiv Contents

Planning in Operations			540
Strategic Issues	■ From Strategy to Tactics
The Individual Worker as Planner			543
Planning as a Personal Process
Long-Range Planning Tools			545
Return on Investment		■ Cost-Benefit Analysis
Summary			548
Key Words and Concepts			549
Review Questions			549
Internet Exercises			549
Notes			551
CHAPTER 17: ORGANIZING IN HOSPITALITY MANAGEMENT			553
Authority: The Cement of Organizations			554
The Basis of Authority		■ Authority and Responsibility ■ Authority:
A Summary
Departmentalization			558
The Delegation of Authority
CASE HISTORY 17.1: Reorganization in a Multibrand Company			559
Span of Control	■ Bases for Departmentalization
Line and Staff			562
Line Management ■ Staff Support
Issues in Organizing			564
Functional Staff Authority ■ Increasing the Span of Control: Empowering
Managers ■ Committees ■ Bureaucracy ■ Ad Hocracy
Summary			574
Key Words and Concepts			574
Review Questions			574
Internet Exercises			575
Notes			575
CHAPTER 18: STAFFING: HUMAN-RESOURCES MANAGEMENT IN
HOSPITALITY MANAGEMENT			577
Issues in Human-Resources Management			578
Fitting People to Jobs			579
Job Descriptions

Contents xv

Recruiting		584
Internal Sources ■ External Sources ■ Segmenting the
Employee Market
Selection and Employment		587
Selection ■ Orientation
Training		593
Management Training
GLOBAL HOSPITALITY NOTE 18.1: Training in a Global
Hospitality Industry		595
On-the-Job Training	■ Everybody Gets Trained
Retaining Employees		597
Staff Planning		598
Job and Work Needs	■ Part-Time Employees
■ Computerized Scheduling
Summary		603
Key Words and Concepts		603
Review Questions		603
Internet Exercises		604
Notes		605
CHAPTER 19: CONTROL IN HOSPITALITY MANAGEMENT		607
The Importance of Control		608
Control and the “Cybernetic Loop”		609
Control Through Management Action ■ Characteristics of Control Systems
Tools for Control		613
Financial Accounting	■ Managerial Accounting
■ Decision Accounting
Summary		620
Key Words and Concepts		620
Review Questions		620
Internet Exercises		620
Note		621
CHAPTER 20: LEADERSHIP AND DIRECTING IN HOSPITALITY MANAGEMENT		623
Leadership as Viewed by Social Scientists		624
Relationship to Other Management Functions

xvi Contents

Why People Follow		625
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		629
Three Important Elements of Modern Leadership ■ Participation
Communication		634
Barriers to Communication	■ Gateways to Communication
The Elements of Leading and Directing		636
Leadership and Change
Developing Your Own Leadership Style		639
INDUSTRY PRACTICE NOTE 20.1: Leadership in the Hospitality Industry		640
Summary		642
Key Words and Concepts		642
Review Questions		642
Internet Exercises		643
Notes		644

PART

SIX:

HOSPITALITY

SERVICE

INDUSTRY

645

CHAPTER 21: THE ROLE OF SERVICE IN THE HOSPITALITY INDUSTRY

647

A Study of Service

648

What Is Service?

INDUSTRY PRACTICE NOTE 21.1: Six Sigma Comes

651

to the Hospitality Industry

Types of Service

Rendering Personal Service

654

Task ■ Interpersonal Skills

Managing the Service Transaction

657

The Product View of Service ■ The Process View: Empowerment

■ Production or Process View?

How Companies Organize for Service

662

Service Strategy ■ Service Culture ■ The Employee as Product:

The Importance of People ■ Service as a Sustainable Competitive

Advantage

Contents xvii

Summary	668
Key Words and Concepts	669
Review Questions	669
Internet Exercises	669
Notes	671
Index	672

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	Clayton W. Barrows	Tom Powers
	Professor	Professor Emeritus
	Department of Hospitality Management	School of Hospitality and Tourism
	University of New Hampshire	Management
	University of New Hampshire	University of Guelph
		University of Guelph

	Clayton W. Barrows	Tom Powers
	Professor	Professor Emeritus
	Department of Hospitality Management	School of Hospitality and Tourism
	University of New Hampshire	Management
	University of New Hampshire	University of Guelph
		University of Guelph

CONTENTS