TOUR 151 - OPERATIONS Seasickness: concerns about coping with

seasickness
MANAGEMENT IN TOURISM AND
HOSPITALITY INDUSTRY Available Jobs
• employs over 100,000 shipboard officers and
crew as well as approximately 15,000 employees
MODULE 4: GLOBAL OPERATIONS ashore. provides employment for food suppliers,
MANAGEMENT IN TOURISM AND engineering services, manufacturers, port agents
HOSPITALITY and authorities, transport companies, tourist
companies, hotels, destination companies, and
CRUISE OPERATIONS AND MANAGEMENT car-hire and employment agencies.
I. ELEMENTS OF CRUISING B. DEFINITION OF CRUISE/CRUISING
- the cruise experience embodies a series of - OXFORD DICTIONARY: - voyage on a ship or
powerful motivators: it is often perceived to boat taken for pleasure or as a vacation and
be safe, social, customer friendly, and usually calling in at several places
service oriented. The ship provides a - BRITANNICA DICTIONARY: To travel on a boat
mobile, consistent and easily available or ship to a number of places as a vacation
location to act as a home. - MERRIAM-WEBSTER: To sail about speedily,
- Cruise Tourism is becoming an smoothly and effortlessly, touching at a series of
increasingly popular 'leisure choice' ports
worldwide. - MARITIME DEFINITION: Cruise means living on
- cruise industry has grown and continues to a ship or a boat and travelling for extended period
grow enormously in scale. of times and travelling from place to place for
- Largest cruise companies as reported in pleasure
2015: - Cruising generally refers to trips of a few days
1. Carnival Corporation or more, and can also extend to round-the-
2. Royal Caribbean Cruises world voyages
3. Norwegian Cruise Lines - Cruise ship started sailing by early 1800s
4. MSC Cruises - these industry also has a negative effect: noise
- Carnival Corporation at the top in the pollution, obstruction to natural views, air
Worlds Largest cruise companies, pollution that causes death due to toxic
comprising 44.8% in number of fleets, airborne particles omitted by ships, damage to
berths and percentage of market shares. the destinations/port's historical buildings,
- Some of the major sailing regions, where water contamination, destruction of
passenger expenditures are being ecosystem, destruction of coral reefs.
cascaded, were: Caribbean and the
Bahamas, Alaska, West Coast, Hawaii, C. CRUISE OPERATIONS MANAGEMENT
Panama Canal, Bermuda, Trans-
Atlantic, Canary Islands, South - process of managing all aspects of transportation
America, European, Mediterranean, operation of cruise lines
Africa, Red Sea, Asia and the Pacific - provides a comprehensive and contextualized
and Australia. overview of hospitality services for the cruise
- Day and McRae (2001): a cruise ship industry
provides easy access to some of the - providing a background to the cruise industry,
world's most popular destinations also looks deeper into the management issues
providing a practical guide.
Factors that demotivate potential cruisers II. IMAGE OF CRUISING AND TYPES OF
(adapted from Dickinson and Vladimir (1997) CRUISES
Cost: cruising is perceived to be expensive
Exclusivity: cruising thought to be a domain for A. IMAGE OF CRUISING
the wealthy and elitist • Cruising is perceived to be safe, social, customer
Family prohibitive: cruising not felt to be for friendly, and service oriented
people with children but rather oriented toward • Might be able to board beneath blue skies
older couples • Soaking in hot tub with an ocean view
Claustrophobic: the ship is thought of as a • Spectacular sightseeing along the way
constraint and quiet space a premium
• Spacious accommodation and public areas - types of cruise ships with large
• Facilities are on par with of a luxury hotel vessels and most onboard
• Fancy Restaurants entertainment options.
- offer the widest variety of cruise
B. WHY PEOPLE CRUISE? schedules and itineraries.
- Cruising is a stress – free and hassle free - perfect for families, small groups
vacation, takes away trivial matters, produces looking for entertainment options,
appreciation of the environment and various as well as couples and
cultures among the passengers. honeymooners.
- provides a new experience to vacationers as this 1.2 Upscale Contemporary CL
differs from their usual vacation habits, experience - With more amenities to cater to
also gives prestige. upscale customers
- offers different activities inside the ship and other - Pricier than CCL
recreational activities. 2. OCEAN CRUISE SHIPS
- facilitate socialization and networking - heavy-duty and purpose-designed to
- offers a safe travel experience. Sea vessels withstand the punishment delivered by the
ensure guest safety and security. Anything out of world's biggest roughest seas. It's
the ordinary is swiftly noted and all means of commonly utilized in long-haul
access to the ship are strictly controlled. transcontinental voyages and world
- cruise package is generally all inclusive. cruises.
- Do not have as many entertainment
C. CLASSIFICATION OF CRUISE SHIPS options
- has fewer people on board and more room
ACCORDING TO SIZE - Not an ideal choice for family travelers
- Perfect for adventure seeking travelers of
all age groups
3. LUXURY CRUISE SHIPS
SIZE GROSS PASSENGER
- equipped with the most luxurious fittings
REGISTERED CAPACITY
and fixtures and will also feature a superior
TONNAGE
level of cuisine and service
Very Under 10,000 Not - essentially a 5 -star floating hotel
Small exceeding 3.1 Premium cruise lines
200 - large ships that offer voyages to
some of the most exotic
Small 10,000-20,000 200-500 destinations.
- cruisers usually don’t dock in the
Medium 20,000-50,000 500-1,200 city center because of their size but
are a great choice for luxury
Large 50,000-70,000 1,200-2,000 travelers
- Most of the passengers are wealthy
Megaship More than More than people
70,000 2,000 3.2 Ultra-premium cruise lines
- offer similar amenities as premium
cruise lines but are much smaller
ACCORDING TO PURPOSE and offer voyages to less-traveled
destinations
1. MAINSTREAM CRUISE SHIPS - priced higher than premium cruise
- most common type of cruise ship lines.
- often used for short to medium-haul - because of their size, they dock
cruises. near the heart of the city
- capacity of between 800 and 3200 - perfect for seasoned travelers and
passengers people who think that small touches
- can further be divided into two more make the difference
different types of cruise ships: 3.3 Ultra-Luxury Cruise Line
1.1 Contemporary Cruise Lines - most luxurious cruise ships
 - cater to their customers’ every - even smaller than small cruise ships and
desire and are designed for people this category includes everything from river
who desire the finest and can afford ships and mega -yachts to sailing vessels
it and expeditions ships.
- With high-end amenities with - offer an upscale experience and oftentimes
international atmosphere include overnights in ports.
4. ADVENTURE CRUISE SHIPS - great reason to choose intimate vessels is
- purpose-designed to go to places that the flexibility that they offer because they
larger vessels cannot. allow passengers to set an itinerary
- type of people that would generally use according to their needs.
these vessels are adventure travelers such 10. SAILING VESSELS AND YACHTS
as whale watchers. - These types of cruise ships include yachts,
- equipped to a very high standard with sail-assisted ships, and dual-purpose
premium fixtures and fittings. cargo ships.
- Most of them include adventure activities - also known as specialty lines and is perfect
such as kayaking, exploring remote fjords, for travelers who seek a more intimate
etc. experience without breaking the bank and
5. RIVER CRUISE SHIPS people who enjoy an educational type of
- Commonly much smaller than any vacation.
seagoing vessel, they can range from a - especially popular in Mediterranean
large converted paddle steamer to a countries like Italy, Greece, and Turkey,
traditional rice barge. especially nowadays when the Global
- Famous rivers that are popular for cruises Pandemic has seriously affected the way
include the Nile, the Amazon, the we function.
Mekong, The Danube and the Yangtze
River in China. III. SCALE AND SCOPE OF THE CRUISE
- the ships are tiny and they can dock MARKET
anywhere they want to, giving you more
flexibility for exploring new destinations. A. GLOBAL CRUISE MARKET SEGMENTATION
6. EXPEDITION CRUISE SHIPS ANALYSIS
- specialist companies that offer customers - global cruise market can be analyzed base on
an insight into the most inhospitable areas four (4) segments:
on earth such as the Arctic and Antarctic. 1. type of ship
- reasonably equipped for cruising, but the • Adventure Cruise
main purpose of the vessel is to go to • Christmas Cruise
places other vessels cannot. • Classic Cruises
- this isn’t something most people are into • Contemporary Cruise
- these types of cruise ships have the • Family Cruise
smallest target group • LGBT Cruise
7. MEGA CRUISE SHIPS • Luxury Cruises
- largest cruisers you can ever find. • Ultra-Luxury Cruises
- can accommodate more than 5,000 guests • Ocean Cruises
and are some of the most sophisticated • River cruises
vessels in the world. - ocean sailing cruises holds the big
8. SMALL CRUISE SHIPS share of market
- can only accommodate up to a few 2. by geography or destinations it visits
hundred passengers and offer a more • North America – US, Canada and
intimate and relaxing atmosphere while Mexico. On the basis of regional analysis,
traveling to less familiar destinations. the north American region had the
- perfect for travelers who seek a more in - highest Annual Growth Rate,
depth experience of the regions they visit. • Asia-Pacific – China, Japan, India,
- can go to ports that are not accessible to Australia and the rest of Asia Pacific
large cruisers and cover a lot more exotic • Europe – UK, Germany, France, Russia,
destinations on a single trip while providing Rest of Europe
all the luxury big cruisers do. • LAMEA – Latin America, Middle East and
9. INTIMATE VESSELS Africa
 3. by application - Passengers must use hand-washing
• Contemporary stations or hand sanitizers as they enter
• Premium restaurants onboard.
• Luxury - Passengers will receive single -use paper
• Others menus. Ships may institute multiple seating
- The Contemporary segment holds the times, emphasize outdoor dining, or open
big market share. The Contemporary more venues.
cruise lines offer a variety of cruise
schedules and itineraries that are perfect 5. Staterooms will also get New Safeguards
for younger adults and family cruises. - Interactive televisions and digital apps may
These are the lines with the largest ships, replace printed daily programs.
the most on board entertainment options, - Cruise lines will likely place masks, gloves,
and the widest variety of amenities. multi - purpose disinfecting wipes, etc.
4. by key players
• Carnival Cruise Line 6. Shore Excursion will be tailored to Protocols
• Royal Caribbean International at each Port
• Norwegian Cruise Line - expect sanitized coaches, with hand
• MSC Cruises sanitizer stations at coach doors, and
• Disney Cruise Line reduced passenger capacity in vehicles.
• Genting Cruise Lines - The places will be pre -screened for
• Hurtigruten sanitation and social distancing
• Silversea protocols—and ports may have their own
set of rules.
IV. ENHANCED HEALTH AND SAFETY
PROTOCOLS ONBOARD 7. Public Spaces will close early for Deep
Cleaning
1. Expect Pre-Boarding Health Screenings - expect social distancing in common areas,
- passengers will undergo mandatory touch- where hours may be reduced for intensive
free temperature scans, and possibly sanitizing and disinfection.
secondary medical screenings by health - Physical distancing rules might limit how
professionals. many passengers exercise simultaneously.
- Any passenger with symptoms of illness - Passenger count in entertainment venues
(and perhaps, who has traveled will be reduced, with additional
internationally within 14 days) will be performances added as needed to
denied boarding. accommodate.
- Expect touchless embarkation staggered
boarding with passengers wearing masks 8. Staff will be Specially Trained for COVID-19
in public areas - Crew will comply with physical distancing,
2. Lines will cap Passenger Numbers and undergo enhanced medical screenings
- Cruise ships—especially large ocean liners and training in new protocols and personal
—likely will sail with a reduced passenger protective equipment (PPE).
count to better maintain social distancing. - Ships may expand their medical centers
and number of medical professionals
3. Crews will enhance Cleaning Measures onboard
- Expect frequent and in-depth disinfecting in - Medical personnel may conduct additional
all public areas particularly in high -traffic temperature checks before and after port
areas. visits, and extend coronavirus testing on
- Cruise ships could extend turnaround cruise ships during sails.
times between trips to ensure deeper
sanitization and disinfection. V. CHALLENGES ENCOUNTERED BY CRUISE
- Some cruise lines, such as Avalon SHIPS
Waterways, are instituting new cleaning
technologies. - Cruise ships are also floating cities.
- Cruise ship is a very operations focused
4. Buffets are on Pause business.
1. Sanitation attention to creating the right balance so
- Ensuring no infected person boards that the offer meets.
- Keeping ships infection free - The quality of the food on board is critical
- No outbreak onboard for the success of the cruise.
- The price of the vacation includes the
2. Shore Leave provision of food
- Local Protocols and Ordinances - Cruise ships operate a variety of
- Shore leave restrictions restaurants to meet diverse guest
requirements
3. Availability of Trips - There may be complicated logistics
- Reduced sailing capacity involved in setting up a supply chain
- Slow return to service - The facilities for dining are managed
- Fewer workers onboard - Passenger-to-crew ratios can be from 3 : 1
- Longer waiting time to book vacation to almost 1 : 1, meaning potentially the
- Stringent medical requirements levels of service are correspondingly high
- Crew are expected to work long hours, for
4. Braving Stormy Waters seven days a week and for several months
- Harsh waves due to stormy weather at a time
condition - Crew rewards can be high because of tips,
- Navigation systems tax-free wages and the opportunity to travel
- Avoiding rough waters
MANAGING FACILITIES ON BOARD
5. Troubles at Sea - concerned with the management of cruise
- Natural calamity ship facilities and the accommodation on
- Human error like fire, oil spills board
- Airborne diseases, like the COVID 19, - The design of cabin or stateroom spaces,
chicken pox public areas and crew accommodation is
VI. OPERATIONS MANAGEMENT IN CRUISE undertaken with a view to ensuring that the
SHIPS resultant product:
- Is suitable for the purpose for which
- In customer service, we always aim to go above it is designed
and beyond the guests/customers expectations, - Is acceptable to the user in terms of
because their satisfaction is significant appearance and functionality
- Meets the needs of the user in
OPERATIONS FOR GUEST SERVICE terms of quality
● Creating Good Attitude - Good front-line - Meets onboard health and safety
staff know when to talk and when to listen. requirements Is maintainable and
Listening skills involve concentration and serviceable
good eye contact and careful use of nods - Is congruent with the brand and
and gestures. brand values
● Letting the Guest Talk - best to assume _________________________________
that the guest is truthful and not to try and
find flaws or holes in their story. MODULE 5: HOTEL OPERATIONS
● Empathy Problem Solving - . If the MANAGEMENT
member of staff expresses that she/he
understands how the guest feels, they are HOTEL MANAGEMENT - about overseeing every
not necessarily agreeing or admitting guilt operation of the property. Requires knowledge of
in the face of a complaint. distribution strategy, finance, customer service,
staff management, marketing, etc. about
MANAGING FOOD AND DRINKS OPERATIONS constantly evaluating performance is every facet of
- introduces the way that food and drink the business and making necessary adjustments.
operations are managed on board a cruise
ship. As your hotel becomes more successful you can:
- Food plays a serious role in the mix of > upgrade and charge higher rates
services and products that make up a > pay staff higher wages
cruise, and cruise brands pay particular
 > create an experience that guests want to adapt to their needs is vital to building
come back for. loyalty and guaranteeing profitability.

HOTEL OPERATIONS: Revenue Management and Price Strategies

1. Human Resource
2. House Keeping Smart revenue management and pricing strategies
3. Security are needed if you want to optimize your Average
4. Public Relations Daily Rate.
5. Food Service
6. Sales and Finances Optimizing Revenue
1. Packages, promotions and extras -
Hotel Operations Management: Packages are any rate that pairs the
Inventory and Revenue accommodation with an add -on. Promotions are
- Hotel operations managers oversee the entire special rates that can change depending on: The
operations of a lodging establishment. season or holiday period; If the guest is a VIP; or,
- Overseeing all of these operations will require the You want to capitalize on an event. Extras are an
hotel manager a lot of responsibility and a lot of added expenditure that guests will only realize they
knowledge and energy. want during the booking process.
- A hotel operations manager may have assistants 2. Events and tours - Selling tickets to local
or assign department heads to help manage the events, tours, or offering car rental is a good point-
hotel. of-sale to increase your revenue per customer as
- Effective inventory management for hotels well as providing a more satisfying experience for
involves both creating and managing demand, and your guest.
maximizing returns. The investment backing a 3. Sell your hotel products - If you offer your
hotel is tied up in its rooms and the returns can only guests the chance to buy your shampoo, and so
be gained from selling those rooms optimally. on, it can provide you with extra revenue and might
save you from the cost of replacing items that
HOTEL STRATEGY BASICS guests ‘accidentally’ pack with their own luggage
when they depart.
1. PRICING 4. Referrals and return business - If your guests
- By driving prices up during high peak give you positive feedback on completion of their
periods and knowing how much to discount stay, encourage them to share their experience
prices to ensure rooms are rented during with family and friends, and on social media to
low peak periods, hotels can maximize drive more bookings and brand awareness. You
their return. Through dynamic pricing, could also set guests up with a promotion code to
businesses can provide discounts and get a discount the next time they stay.
incentives in a controlled way during 5. Accommodate flexible travelers - Some
different seasons. travelers don’t have a set itinerary or allow
2. DISTRIBUTION themselves flexibility with their schedule, so take
- Hotels generally advertise their rooms the opportunity to raise your occupancy and
through multiple channels (socmed, OTA, incremental revenue.
meta search, hotel websites and vacation
rentals). This is to optimize reach and Hotel Management and Operations: Mistakes
promote sales. Distribution management is to Avoid
essential and this involves calculating the
minimum numbers of rooms needing to be 1. Failure to provide basic contact
sold. information
3. MARKET SEGMENTATION - The basics are something every hotel must
- Being aware of your market and the get right before anything else. Travelers
variable preferences, demands and have all kinds of queries and often people
affordability of different demographics are will be calling to make a booking so your
paramount to understanding how to price phone number is an absolutely essential
and distribute your room sales across the piece of information. The first thing we
various channels. Flexibility is an wanted to see on their website is probably
important virtue required of hoteliers and their contact info.
being able to understand your clientele and 2. Website scarecrows
 - The last thing they need is for their performance, the more tweaks you can make to
computer to start blasting commercials or optimize your distribution mix.
ditties around the office. The first thing 2. WEBSITE PERFORMANCE - Since your
they’ll do is close your website and it’s booking engine can be included in channel
unlikely they’ll return. performance you’ll be able to see if direct bookings
3. Incorrect use of social media are down and investigating your website is a good
- A common mistake hoteliers make is idea.
sending website visitors away to their 3. HOUSEKEEPING - Do you know how long it’s
social media channels immediately after a taking to clean a room on average? How many
visitor has landed on the homepage. guests are arriving to find their room isn’t ready
4. Poor Quality Photos yet? Do you have enough cleaning resources or
- There’s no point in investing in a great not enough? How efficient are staff?
website design if the photos you will 4. TOTAL REVENUE PER ROOM - keep on track
integrate into the theme are lacking quality. with the property and revenue management
Travelers want to see what they’re paying systems of the hotel to look after the occupancy,
for. average daily rate, revenue per available rooms
5. Downloads for Simple Information and total revenue per available rooms.
- If a traveler wants to view the menu of your
hotel restaurant for example, they should Seven Key Operational Areas of Hotel
be able to do it on your website. Management
6. Connecting to the wrong distribution
channels 1. Executives - the decision makers within the
- It is certainly important to choose the best business. They may be department heads,
distribution channel for your products and managers, or directors. Responsible for some of
services. the other areas in the hotel, including accounting,
7. Ignoring the Potential of the Local Area marketing, and at times even front desk services.
- Make sure you partner with local 2. Front Desk Services - constantly in contact
businesses and run promotions and with guests, and may even be responsible for
packages around local events and taking and handling bookings. Detail -oriented
attractions. This will add value to your people are often required for this role, since they
services and will add satisfaction among must meet the exact needs of the guests.
customers. 3. Housekeeping - Keeping your guest rooms
8. Closing your ears (and mouth) to feedback clean and tidy is an essential task. Your
- Customer satisfaction and brand reputation housekeeping team is typically responsible for
are vital if you want to keep the bookings every detail within a room, from the cleanliness of
coming in. You need to respond diligently the sheets to keeping toiletries stocked.
to both positive and negative reviews. 4. Maintenance - Tech can sometimes also be the
Negative review are your basis for responsibility of executives or front desk services,
improvement, and the positive ones are depending on what works best for the organization.
your basis for advancement. Might be lumped in with housekeeping or another
9. Not paying close attention to seasonality role.
- The price people are prepared to pay for 5. Accounting - The accounting team is usually
their hotel room will depend on the supply directly answerable to the executive team,
and demand trends over time. Seasonality providing them with relevant data and forecasts.
matters, and you’ll have to change rates a They may also make recommendations and offer
number of times during the year to reflect support for other departments.
buying behavior and market conditions. 6. Marketing & Sales - The marketing team is
10. Lacking attention to detail in housekeeping responsible for converting prospects into paying
- There should never be any shortcutting guests and spreading the brand message.
when it comes to housekeeping and Marketing can sometimes become the
cleaning. responsibility of front desk services. But because
executives often want control over the exact
EFFECTIVE HOTEL MANAGEMENT message that’s being shared with their target
audience, they will sometimes take it on –
1. CHANNEL PERFORMANCE - The point is the especially if they don’t have a pre-existing
more information you have about your channel marketing department.
7. Kitchen Staff - If you’re a full -service hotel, if Maintenance and Engineering - in charge of day
you offer room service, or both, then it’s impossible to day general maintenance preventive and
to keep up with orders and meet your guest’s emergency maintenance of the hotel.
dining needs without competent kitchen staff. Human Resources Department - in charge with
employment management, personal development
5 Areas for Best Operations Efficiency programs, staffing related policies and procedures.
Financial department - responsible for the
1) Guest Experience and Customer Relations – management of revenue received and expenses
exceeding their expectations and also for checking that all financial transactions.
2) Reputation Management and Branding - The
impact of online reviews and the social media buzz Pre-arrival stage of service circle:
that follows a very positive or very negative review the reservation comes first with the guests by
can no longer be ignored. making the room reservation, followed by the
3) Be an Excellent Role Model arrival stage where the front office staff takes care
4) Strategize for Revenue and Budget of the guests accommodation, the information
Management - The hotel industry is often about the hotel facilities and services or travel
vulnerable to changing economic conditions. information is assured by concierge staff.
5) Focus on Latest Hotel Technologies - During the occupancy:
Knowing which innovative technology to the front office is on constant contact with the
implement will translate into an experience that will guests making sure that all enquires are answered.
drive real value for the guest. Final stage of the cycle service is the departure
when front office staff will give the last impression
Hotel Structure and Functions at check out by closing the guest account,
checking the existence of any extras to be paid
Mullins (1998) - a hotel is a commercial hospitality followed by an update of room status.
organization and whether it is an independent,
franchise or limited liability property has a purpose Importance of a Hotel Organogram
in increasing revenue to the shareholders and the - to clearly describe the authority, responsibilities
results of the activity are regularly scrutinized in and duties of each department and its staff.
order to reach its targets. Grouping the functions - illustrates who is in charge of what and who is
and activities into departments allows a better subordinated to whom and makes it easier to
control of the services available and also for monitor employee performance.
employees as it helps in identifying their roles and - helps employees understand their daily tasks and
responsibilities. relation to other employees.
- An organizational chart helps streamline these
Most hotels use a hierarchical organizational operations and makes planning easier.
structure with pre - defined roles and departments. - also allows for effective resource allocation and
Their employees have clearly -defined smarter hiring decisions
responsibilities and everyone knows their roles.
Planning and Organizing Hotel Workflow
Most facilities have several key areas in common, - ability to adapt to an ever-changing
though; these usually include the executive environment makes organized workflows
management, front desk services, vital to efficient hotel operations
housekeeping staff, kitchen staff, maintainable Plan the Workflow - Create a vertical workflow
personnel, accounting and marketing. diagram that identifies each department or area
and depicts the sequence of tasks.
O’Shannessy et al. (2001) - Each department and Analyze Tasks
function brings its contribution to the overall Scheduling Employees
business organization as follows: Communications Planning - A good
Rooms Division - responsible for selling and communications plan is vital to an organized hotel
maintaining the guests rooms and associated workflow.
services.
Food and Beverage Department - responsible for Key Success Factors in the Hotel Industry
foodservice whether is provided in the rooms or in
the restaurant. 1. Customer Service - an integral part of
the hotel experience. Clayton Barrows, author of other managers, as well as owners, in planning,
“Introduction to Management in the Hospitality directing, and coordinating restaurant operations.
Industry,” explains how the front -desk worker
serves as the gatekeeper of the hotel. This Functions of a Food and Beverage Service
employee provides the customer’s first and last - provision of food and beverages is one of the
impression. Thus, hotels achieve a critical success oldest services associated with lodging
factor by ensuring the staff is knowledgeable, establishments.
courteous and capable of resolving any conflicts - F&B operations is a complex operation involving
that arise. numerous, highly
2. Advertising - Successful hotels target specific specialized functions.
consumers and will cater their prices, amenities
and advertising strategies to this group. The function of any restaurant and bar may be
3. Cost Control - a critical factor in a hotel’s summarized as follows:
success. Most hotels vary their rates according to 1. To provide food and beverage, served
high and low seasons. attractively fulfilling customer
4. Product Differentiation - Hotels thrive by expectation.
offering guests a unique experience. This 2. To provide a nice environment where
uniqueness may stem from the location. guests can enjoy the food and drinks.
_________________________________ 3. To make a profit.

Module 6: Restaurant Operations Management Food and Beverage Organization

Restaurant A food and beverage department is traditionally

- retail establishment that serves prepared food to divided into the following areas:
customers.
- covers many types of venues and a 1. Food purchasing - responsible for purchasing
diversity of styles of cuisine and service. foodstuffs and ingredients for the kitchen.
2. Food production or preparation - responsible
Types of Restaurants for designing menus and preparing meals served
1. fast food restaurant - emphasize speed of in the restaurant and may include an executive
service and low cost over all other considerations. chef and various cooks and stewards.
2. casual dining restaurant - serves moderately- 3. food service - responsible for greeting, serving,
priced food in a casual atmosphere. Comprises of and attending guests. may also be part of this
a market segment between fast food department if the restaurant is located inside the
establishments and fine dining restaurants. hotel.
3. fine dining restaurants - full-service 4. beverage service - responsible for dispensing
restaurants with specific dedicated meal courses. alcoholic beverages and other drinks.
establishments having certain rules of dining which 5. banquet/catering staff - responsible for
visitors are generally expected to follow, catering banquets, meetings, and conventions
sometimes including a dress code.
Restaurant staffing and Management
Introduction to Restaurant Operations and
Management Staffing and Management - Focus of recruiting
service personnel and management staff should
- Managing a restaurant involves many different be effective delivery of services and proper
responsibilities, from hiring and firing staff, to management on daily basis, plus long-term goals
tracking sales and basic accounting. of the restaurant.
- Restaurant operations are generally divided Restaurant Manager - has overall responsibility
between what is commonly called front of the for the restaurant and other food and beverage
house and back of the house. service areas. The restaurant manager sets the
standards for service and is responsible for any
Restaurant operations staff training that may have to be carried out, on or
- various activities that are carried out in a off the job.
restaurant to run the business. Captain Waiter - has overall charge of the service
- Restaurant Operations Managers oversee the staff/ team. Responsible for ensuring that all the
day-to-day operations of a restaurant, working with duties necessary for the pre-preparation for
service are efficiently carried out and that nothing - Food and beverage service personnel are
is forgotten. technical sales persons; therefore, you should
Waiter - must be able to carry out the same work have a thorough knowledge of the proper
as the station headwaiter. will normally have less presentation and service of all the food and
experience beverages
Trainee/Apprentice - the trainee is the 'learner'. Ability to Assume Responsibility
carries out certain cleaning tasks during the pre- - should be able to cope up with the demands of
preparation period. the job and have the ability to assume
Wine Waiter/Sommelier - sommelier is responsibility.
responsible for the service of all alcoholic drinks, Maximize Revenue
during the service of meals. This employee must - Cutting down on costs and maximizing the
have a good knowledge of all beverages available. revenue of the establishment should be the prime
the liquor licensing laws applicable to the particular objective.
establishment and area. Knowledgeable on local area points of
Receptionist (Host/Hostess) - attend to guest interests
needs, particularly, on arrival at the restaurant. The - the staff should have certain knowledge of the
host should "meet, greet and seat" the guest. area in which they work so that they may be able
Barman - must have good knowledge about the to advise the guests on the various forms of
ingredients and methods needed to make entertainment offered.
alcoholic drinks. Personality
- People with good personality comes partnered
Attributes of a Restaurant Staff with good attitude towards customer. The correct
approach towards the customer is of the utmost
Attributes of a Restaurant Staff importance. And staff with good personality and
- The quality of service staff in any establishment attitude are generally HONEST too.
reflects the quality of the establishment itself. If the
staff are well-trained and efficient, they can, to a Service Sequence
certain extent, make up for other shortcomings in The service sequence is integrated into
the services provided. guest circle:

Personal Hygiene and Appearance 1. Receiving and Greeting - This sequence is

- All members of the staff should be well-groomed called the 'meet-greet-seat' sequence, which
and clean at all times. means that you first meet the guest; then greet
- Nails should be trimmed, and kept clean. them and finally, show them to their seats.
- Chewing gum should be avoided 2. Seating
- wear minimum jewelry 3. Presenting the Menu - Make sure before
- Uniform should be clean and well-pressed presenting the menu that it is clean and up to date.
Good Conduct The menu is handed (opened) to each guest,
- You should be well-mannered and respectful to ladies first, then gentlemen, finally the host.
guests. You should be calm and pleasant. You 4. Take beverage and food order - Offer the wine
should be able to satisfactorily solve any problem list to host along with food menu
that may arise.
Good Memory Guests may not be familiar with all menu items and
- helps to improve performance. this requires that you should be able to assist by:
- also helps the service personnel to attend small • Explaining menu terms.
but important details • Describing menu items.
Observation • Explaining methods of cooking.
- need a keen sense of observation and an eye for • Describing accompaniments, sauces and
detail. will help you to be more efficient at the job. garnishes.
An ability to correctly judge people is definitely an • Make suggestions and recommendations
advantage. 5. Place orders at bar and kitchen
Concentration and Skill 6. Serving beverages and food clearing
- should develop a sense of urgency in the 7. Presenting bill and receiving payment
performance of duties. Service should be prompt 8. Guest's Departure
without haste.
Salesmanship Restaurant Opening Procedure
Opening Procedures • Check the number of portions, size of portions
1) Ensure parking lot is swept and litter has been and if found excess, return extra portion to the
picked up. kitchen.
2) Unlock restaurant. • Handle service equipment with care. Switch off
3) Disable alarm, if applicable. equipment like hot case, chilling machine, table
4) Check messages on voicemail. lamps, display cabinet lights, gas burners when the
5) Turn on all kitchen equipment and ensure in restaurant closes. Switch off gas burners when not
working order. in use.
6) Turn on TV and/or music • Do not misuse linen as they are expensive items.
7) Check restrooms for cleanliness and supplies. Always use duster for cleaning purpose.
8) Ensure thermostat is set to 70 degrees. • Order slip should not be used unnecessarily.
9) Ensure that sufficient employees are on hand to • Carry food carefully. Spilling can spoil the carpet
perform the necessary tasks. and waste that portion of food.
10) Assign employees to each work area, cleaning • Preserve the items, which can be reused such as
project, etc. flowers, butter, milk etc.
11) Hold a brief AM staff meeting. Explain • Tea and coffee should be server according to
assignments to employees. This should be a short proper portioning.
10-15 minutes meeting to ensure everyone is on • Send timely maintenance order.
the same page for the day. • In case of cancellation of food, cancel food and
12) Verbally confirm that each employee knows his beverage orders as soon as possible to avoid
or her assignment for the day. wastage.
13) Briefly cover any issues needing immediate • Try not to take wrong order; do not hesitate to
attention, specials for the day, etc. clarify doubts.
• Handle crockery and cutlery properly.
Restaurant Closing Procedure • Don’t work extra hours unless necessary, be
productive and efficient at work.
1) Check cash out for servers, hostess, bar, etc. • Build a good relationship with your colleagues
2) Check out entire kitchen line (equipment shut and others
off, wells emptied, wiped down, dishes clean and • Do not misuse or abuse the property and if you
restocked, trash emptied, floor swept and mopped) know its happening report and prevent.
3) Ensure no trash is outside of dumpster.
4) Check out bar area (liquor bottles wiped off and Suggestive Selling and Up-selling
reorganized, beer well stocked, swept floor, clean
counters) “Suggestive Selling” mean encouraging guests
5) Ensure salad bar is emptied, washed down to buy additional food & beverage.
6) Turn off TV and/or music. “Up selling“means suggesting more expensive
7) Ensure dining area is swept, tables reset and and possibly better quality items.
chairs neatly arranged. To do this, you have to:
8) Check all doors to make sure they are locked. • Be an affective seller by having a good
9) Turn off all lights. knowledge of the menu and all the products of the
10) Set alarm, if applicable restaurant
• Suggest the unusual
Restaurant Cost Control and Selling • Suggest foods and beverages that naturally go
Techniques together like for an example, soups and
sandwiches, or bacon and eggs, or steak and
7 Golden Rules of Restaurant Cost Control baked potatoes, coffee and dessert
• Compliment guests Choices. This makes guest
1. Conduct maximum purchases on credit basis feel good with their choice even if they don’t order
2. Keep a daily/weekly track of your costs what you suggest
3. Efficient Yield Management • Understand your customers by knowing their
4. Minimise internal thefts needs and bit of their background. This would help
5. Track and manage your inventory you design and deliver service accordingly tailored
6. Well regulated portion control fit to them, which can lead to better customer
7. Reduce employee turnover satisfaction
• Anticipate Guests Needs
Cost Control & Selling techniques
• Do marketing and promotional methods to - it is very important you apply best practices and
influence their decisions and choices of order. Or hygiene standards. Handling food safely is a key
you may want to offer choices to increase sales role in the everyday work commitments of a food
and customer satisfaction and encourage them to handler
return. Failure to meet the best practices may lead to the
following action:
Restaurant Staff Selling • Bad publicity and bad reputation.
Staff can promote sales by: • Legal action taken by the customer(s).
• Being attentive to guests’ needs • Death of a customer in severe cases.
• Have a good knowledge of the food and beverage •Closure of the premises by the
items offered on the menu Government Authorities.
• Being prepared to make suggestions to the guest, • You may lose your job.
when appropriate
• Enquiring whether the guest requires anything Contamination preventive measures
else. • Store food correctly.
• Maintain personal hygiene.
Menus - promotes the products of the restaurant. • Prevent pests and animals, e.g., flies, mice, rats,
Use of pictures, photographs and attractive cockroaches (use pest control and traps).
descriptions can encourage sales. • Cover food when not being used.
Displays - The counter/area should be clean and • Prevent children from touching food.
tidy, these food items should be fresh, attractive • Do not stick your fingers into food.
and colorfully laid-out, the counter should appear
full, yet not overcrowded. Waste management
Positioning - should be located where they can - Kitchen produces food using different products
easily be seen from the entrance to the restaurant. made from both degradable and non-degradable
Lighting above the counter (or in the area) may be material. It is vital that you are aware of them, as it
used to attract and focus attention. can be hazardous if they are not properly handled.
Catering for children - The menu often offers a
choice of children’s items consisting of smaller Pest control
portions of items from the adult menu and Pest - pest is any organism or unwanted creature
sometimes additional children’s favorites. in the restaurant that spreads disease and
destruction. Good pest control needs good
Restaurant Promotional Materials mechanism and systemic control.

Logos - signs or symbols representing the name First aid in the Restaurant
of the restaurant. First Aid - immediate and temporary treatment of
Posters - may be used to advertise special dishes a victim of sudden illness or injury in the restaurant
or draw guests’ attention to new products. while awaiting the arrival of medical aid.
Table cards - placed on the tables. Must be
replaced frequently in order that they are kept up Restaurant hazards, safety measures and
to date handling
Table mats - placed on the table or on the tray
holding the guest’s meal may be illustrated with a Fire - most threatening and most common hazard
game or general knowledge information. in the kitchen. Ensure that there is clear fire
Coupons - printed with some special offer to evacuation plan in the restaurant, and that the
motivate the guest to return kitchen is visible to everyone and everyone has
Premium gifts - gifts which are usually offered to been drilled as to fire procedures
children in the expectation that they will persuade
their parents to take them to the restaurant
Gift certificates or vouchers - used mostly by SAFETY RULES IN RESTAURANT
chain restaurants. The guests buy the certificates
to give to friends and relatives, who can then • Do not stack chairs and tables above chest
receive, without costs to themselves height.
• Take special care with flammable or potentially
Responsibility of a Food Handler explosive materials
• Distribute weight evenly on trays, and only load compare each invoice to the original supplier
what you can carry safely and comfortably. contract terms and orders.
• Never carry anything over the head of a guest or _________________________________
a colleague
• Do not overfill in case they spill hot liquid Module 7: Strategical Management of
• Use clean, dry serving cloths to carry hot dishes. Operations
• If space is tight, politely ask the guest to move to Operations management - field of business
one side when you serve concerned with the administration of business
• Only use the designated entry and exit doors to practices to maximize efficiency within an
the kitchen organization. involves planning, organizing, and
• Watch out for guests’ handbags, briefcases, etc. overseeing the organization’s processes to
• Ensure that floor coverings are firmly attached to balance revenues and costs and achieve the
the floor highest possible operating profit.
• Close off that area of the restaurant, and use Operations manager - tasked with ensuring that
appropriate warning signs. the organization successfully converts inputs such
as materials, labor, and technology into outputs in
The 8 Rules of Effective Restaurant an efficient manner.
Management
What is Strategy?
1. Build Value-Driven Relationship with your - total pattern of decisions and actions that position
staff - making personnel feel valued and the organization within its environment and that are
respected. Transparent communication about intended to achieve its long-term goals
what you can and cannot offer will also help foster environment statement makes it contextually
relationships that are empowering to everyone specific; it is about the market sector
involved. long-term goals, the organization needs to
2. Improve Your Restaurant’s Security - install acknowledge what they are and actually
security systems like wireless cameras that enable understand what long term within their sector
users to set entry and exit zones. Efficient means
restaurant operations management calls for
vigilance over restaurant security. The Role of Strategy in Operations
3. Create a Training Manual for Everyone to Management
Follow - training is undocumented and conducted - Skinner argued that by adopting a
in a casual manner. Documenting and enforcing strategic approach to managing operations
the areas in which a new recruit needs to be the organization could achieve competitive
trained will help prevent mistakes and boost edge over its rivals.
service standards. - the operations element can impede
4. Minimize Food Waste and Leverage a Food corporate success even when corporate
Cost Calculator - Leveraging a food cost objectives have been well stated and an
calculator to help you minimize waste will positively effective marketing strategy has been
impact your bottom line. formulated.
5. Adhere to Health and Safety Standards -
Food hygiene ratings and precautions regarding For a 'strategic difference' in operations, to link
your customers’ health are fundamental to marketing and operations, companies need to
achieving high footfall, satisfaction ratings, positive identify and distinguish between order-qualifiers
reviews, and much more. and order-winners:
6. Provide Your Staff with All the Necessary - Order-qualifying criteria get a service or
Tools - improve the operational efficiency of your product into the marketplace or on to
back-of-the-house and front-of-house staff by customers' shortlists and keep it there
equipping them with proper tools. - Order-winning criteria give the product or
7. Streamline Your Financials - Analyze your service superiority over the offerings of
reports every week and get an in-depth overview competing organizations.
of how your restaurant is performing.
8. Improve the Way You Manage Your Vendors Often the operations management people, their
- An integrated vendor management feature can input and expertise, are omitted because the
help you digitalize vendor invoices as well as strategic development is done by the senior team
and the Chief Executive Officer (CEO).
Four Stages of Hayes and Wheelwright
Framework

Robert Hayes and Steven Wheelwright -

developed a useful framework intended to provide
guidance for managers when attempting to evolve
their strategies and operations. Whilst originally
written with the manufacturing sector in mind the
premise can be applied equally well to the service
sector.
Hill’s framework (Hill, 2004)
- Fundamental to the framework is an
understanding of step three ‘how products win
orders in the marketplace’. In turn it is argued that
the mix of these comes from two major sources: (i)
the customer or market as reflected in corporate
strategies; or (ii) from the inherent features of the
operation system on the other.
- defining the corporate objectives, then
determining market strategies to meet these
objective. Third stage is to assess how different
products/services win order against competitors
Stage 1. minimize the negative impact of (like for example its prices, quality, delivery of
operations upon corporate and market service, responsiveness to change and technical
developments performance). Fourth stage is to establish the most
Stage 2. upon following industry practices in appropriate mode to manufacture this sets of
managing the workforce, avoiding large step product or provide these set of services, which is
innovations in product or process technologies, the process choice. And lastly, to provide the
and viewing economies of scale and efficiency as infrastructure required to support the production or
the most important factors in production. operations process.
Stage 3. They ensure decisions made here are - demonstrates how market and competitive
consistent with corporate and marketing decisions are, and should be, linked with decisions
strategies, that strategy is translated in terms on operations systems design. The framework can
meaningful to the personnel and are proactive in be used in two ways: (i) utilized for the assessment
developing longer term strategies and evaluation of the effectiveness of operations in
Stage 4. see products/service capabilities as a relation to corporate objectives and product
significant influence upon overall competitiveness. markets; (ii) it serves as a guide for developing
So operations strategy is not merely determined by new, market- focused strategies and systems in
internal corporate and marketing strategies, but operations.
also allows executives to have a meaningful role in
contributing to the development of the company
and its strategies as a whole.

Structure Approach to Formulating Operations

Strategy

Cambridge Group’s methodology (DTI, 1988)

- devised at Cambridge University for the UK

Department of Trade and Industry (DTI). system
performance may be improved and to better align the fastest and provide the best quality it is going
operations to the market needs. to increase the cost.
- Stage 1 is understanding market position, the
market requirements, opportunities and threats are
determined. Stage 2, an assessment of current
operations strategy must be carried out. There are
nine areas of analysis in this stage; facilities,
capacity, span of process, processes, human
resources, quality, control policies , suppliers and
new products. Stage 3, the development of new
strategies resulted from the evaluation done in
stages 1 and 2. the improvements needed to be
made within the corporate strategy and market
needs are determined.

Strategy and the Product Life Cycle Much attention has been given to:
- reduction of lead-times in terms of product
design; the faster a company can move from the
original design specification, to provision of that
service or product, the more attractive the item will
be to the market.
- short delivery lead-times, from the placing of an
order to receipt of the service or goods, will attract
customers who, given the choice, prefer delivery
sooner rather than later.
- increasing the level of operational flexibility and
widening the range of tasks which can be
Product life cycle curve accomplished within the existing operational
- The x axis represents the sales volume and the systems in order to satisfy the specific and
y axis represents time the product is available in specialized needs of individual customers.
the market. - improved labour productivity, much greater
- Stage 1, starts with the development of such importance is now given to the reduction of costs
product. Stage 2, the company should expect a through lowering inventory levels and increasing
growth in sales and production. Stage 3, e stock turnovers.
maternity or maturity stage, sales and production
are on its peak, prices is still adaptive, the product - Quality also has an important part to play in the
distribution is intensive and the company should do operations strategy of the market-driven company.
its best to remind the customers of the existence Quality can be viewed in two different ways: in a
of the product. Stage 4, e decline stage, product sense and, more holistically,
companies are now offering discounts, the - Quality and reliability is an important attribute for
distribution is limited. any product and levels of sales are often
determined by a company’s past reputation in this
Performance Objectives respect.
- quality in its wider organizational sense is often
The performance objectives (or key performance seen as fundamental in establishing and
indicators, KPIs) are usually given as: maintaining the appropriate culture and attitudes
Quality – doing things right the first time. within the organization.
Speed – doing things fast. - Total Quality Management and its associated
Dependability – doing things when you say you methods and processes are, as a result, now seen
are going to. as important components of operations strategy.
Flexibility – being able to change what you do.
Cost – doing things cheaply or at a price the
market will bear.
- each of these independent performance
objectives has a distinct relationship with the
others. They are inter-dependent: if we want to be