Facilities Planning and Design for

Lodging and Foodservice Operations

The purpose of feasibility study is
for the student to have a sufficient
information about work flow process,
space utilization, equipment design,
ergonomics and some elements
affecting the work environment of
foodservice and lodging operation
such as lighting, color and
temperature.
The general objective for all food facility
planning is to make optimum use of the
money, materials, manpower, and
equipment to provide the highest quality of
food and service. Within this primary
objective is the basic concept of assuring
customer satisfaction. This means that the
foodservice facility has to be designed so
that foods can be freshly prepared and
appealing.
INTRODUCTION
Planning- art and science of forecasting as many
possibilities as possible for an idea to develop into
design concept satisfying certain requirements and
minimizing risk in the process.
Physical- pertains to material existence measured
by weight, motion and resistance. Thus, anything
taking up space in a facility must be accounted for
and fit the available space.
 Design- refers to the broad function of developing the
facility, including site selection, menu, equipment
requirements, and other functions that will guide the
project into reality.
 Lay-out- is the process of arranging the physical facilities
including equipment, that dictates operational efficiency.
This involves a drawn design n paper to show walls,
windows, doors and other structural components. After this
drawing is complete, required work areas are designated on
the plan, then the equipment and other facilities are
arranged and drawn into the plan.
Characteristics of a well planned
foodservice and lodging establishment

1. Minimum investment in buildings,

furnishings and equipment
2. Aesthetic appeal to customers and
workers (pleasant dining and working
areas)
3. Maximum profit and return on
investment
4. Simplified production processes for
food and non-food items
5. Efficient flow of materials and
equipment that may have to be moved
about
6. Minimum employee travel
7. Safe working areas
8. Minimum waste of time, labor and materials
9. Sanitary conditions in all areas of the facility
10. Minimum manpower requirements
11. Low maintenance costs
12. Ease of supervision and management
1. CONCEPT 4. Design concept
Plans and
DEVELOPMENT 5. Space Allocation design of
2. Feasibility Study 6. Equipment Lodging and
3. Team Planning 7. Environment
Foodservice
Operation
Part 1: Concept Development
Chapter I. Concept Development
Idea Generation
Planning and designing a lodging or
foodservice operation begins with ideas.
Major consideration in generating ideas are
the needs of the customers in the past, present
and future.
Generated ideas in the past could be revived and
modified to cater to the present needs. (example:
Kamayan Restaurant)
Ideas could emanate from present needs such as in the
ff: working mothers have become very aware of the
value of time. Thus there is a demand for prepared food
items for the family.
Noodles made from rice and squash fruit was recently
developed by the Food and Nutrition Research Institute
to answer the Nutritional need for lack of Vitamin A in
the diet of the Filipinos.
One idea in the future is the use of
robotics to prepare the room and food
for the guest. |the more ideas generated,
the better there will be, of a few being
good ones.
Foodservice
Idea- enjoying companionship and pleasure of drinking coffee
Concept- coffee houses
Idea- combining film and food
Concept- casual dining with burgers, pizza, pasta and
sandwiches in a renovated theatre.
Lodging
Idea- an inexpensive lodging place for students and travelers
Concept- a medium-sized hostel operated by a sorority in a
university campus in the suburb close to transportation
routes.
Refining the Ideas
Ideas can be found everyday in newspapers, books,
business periodicals. To polish and refine these ideas one
must:
Study specific needs of customers in various lodging and
foodservice establishment
Info of the site where the establishment is located
Technical knowledge about lodging/foodservice
management
Skills in the art of hospitality
Knowledge of current trends in the hospitality industry.
Customer Needs
In the field of marketing, the fundamental
message is to see the business from the
customer’s point of view.
Different Type of Customers
 Quality-conscious-operations that not only
satisfy but also visually delight the customers .
Process-oriented- see through or open
institutional kitchens, bakeshops, winery.
Value-conscious- combo meals.
Discounted room, prices, eat-all-you can
buffets
Time-conscious- fast food restaurants,
convenience stores, drive-through, delivery
service, computerized reservation system.
Highly-informed- electronic info(computer),
descriptive menu card, food labels.
Health and Nutrition-conscious- a variety of foods
in restaurants, organic and natural foods, fitness
facilities and spa
Environment-conscious- proper solid waste
management, biodegradable disposals
Global taste- proliferation of Italian, Japanese,
Mexican, American and other restaurants in Metro
Manila, a cycle of services for the hotel guest.
1. Quality- Conscious
Total features and characteristics of a product or
services that bear on its ability to satisfy stated or
implied needs(ISO 9000).
Trendy restaurants not only satisfy the hunger of
the customers, but also offer visual design and
décor that delight the customers.
Example are fastfood chain that offers diversified
menu items that meets the changing preferences of
market.
2. Process Oriented
Customers do not only judge the quality of
the food and service, but also the quality of
the management and the facilities producing
them.
The advent of “see-through” or open
institutional kitchens showing personnel and
facilities producing the food can be
attributed to this customer behavior.
3. Value-Conscious
Most customers in this decade and into the
next century will be more value-conscious
than cost or price-conscious.
Value for money will be the key
purchasing criterion.
Offerings of combo meals and eat-all-you-
can buffets are the present trends
acknowledging this customer behavior.
4. Time-Conscious
Waiting time not only serves as an
inconvenience to customers, but also
irritates them. Customers may loose their
appetite and make them decide never to
return to the restaurant.
In lodging establishment, the use of
computerized reservation system is
rapidly becoming popular.
Example are fast food
establishment which characterize
of little or no waiting.
Establishment also offers “drive
through” and “delivery service”
5. Health and Nutrition-Conscious
With the increasing health consciousness of
customers, food caterers are serving menus that
meet the criteria for fitness using the dietary
guidelines.
Low calorie food and drinks, coffee with low
caffeine, low fat and cholesterol, low-sodium
dishes, low or no alcohol in drinks, high in
fiber, high in calcium, organic and natural
foods. Use of sugar substitutes.
6. Highly-informed
In local setting, there are customers using the
internet and other information technologies and
can instantaneously compare prices of food and
the quality of its food and service.
The use of interactive television system and
high tech menu card.
Nutritional value are also available through the
internet.
7. Environment-Conscious
As a result of their concern about the
increasing environmental deterioration, both
foodservice customers and operators now find
it necessary and desirable to participate in
energy conservation, water conservation and
recycling activities.
Example are automatic temperature monitor,
sensory devices that turn off light when there is
no motion in the room.
8. Global Taste
Customers are developing global taste
based on universal standards of quality.
They are paying for the total experience
rather than just palatable pizza or service
of the bellboy.
Proliferation of Japanese. Italian,
Mexican restaurants around the world.
Trends affecting Foodservice Design
Dining Out Changes- the foodservice industry is
responding to this trend by making changes in the style of
foodservices, types of food served, and the process
charged.
Change in desired Menu Items- menus are now more
lighter, more healthful food selection and limited desserts.
This changes the equipment needed and the space
requirements and thus affects the remodeling or new
construction to accommodate preparation of foods
customers prefers.
Economic factors- cost of wages, food,
utilities can influence selection of a type of
foodservice and its design. Managers strive to
maximize the operation’s efficiency through
the best possible design and layout of work
centers, minimizing the number of steps a
worker must take, as well as the distance
necessary to transport and distribute food.
Flexibility of use- this means making the
existing space adaptable either for multiple use or
meeting future demands. This may be
accomplished in part by selecting wheel-mounted
and modular equipment that is uniform in size,
movable and adaptable to numerous work
activities.
Built-in safety, sanitation and noise
reduction- these trends in construction may
be achieved by the type of floor covering,
ventilation, building materials, lighting, and
equipment selected, and the method of their
installation.
Site Selection
The identification of the location is
equally important to be studied. It can
be in urban properties, sub urban
places, near the airport, seaport, land
transportation terminals, resort areas,
on the highways, sites of pilgrimage
and tourist destination.
Even at this early stage of planning,
assessment of the location’s desirability in
terms of convenience, visibility and
accessibility should be done.
After considering the market and location
, the planner will now look for a situation
in which capital and talent could be
invested for a profit as well as for
personal benefits.
A. Basic factors in choosing a location
Good location will not ensure success if the
food facility does not do a good job or is not
appropriate to the area
Planners must look for a location suitable for a
specific type of food operation or adapt or
design the food operation to fit a specific
location
It should be keep in mind that doing a fine job
can offset poor location.
 B. Location selected will have an impact on:
Type of customers
Construction or remodeling cost
Investing requirements by lending institutions
Local ordinances, state, federal laws
Availability of workers
Option to sell alcoholic beverages
Parking availability and accessibility
Occupancy cost- rent, taxes, insurance and so on.
 C. Different Types of Location available when
selecting a site.
Traditional freestanding site- also called isolated
site, usually located in the neighborhood area or in
the highway. It is where the food operation stands
alone which means the individual operation not
related to or specifically relying on, any of the
surrounding businesses or activities,. Operation on
this type of location must develop its own marketing
and advertising program
Location within another type of unit- It is also
as unplanned site which may be part of a
neighborhood or a down town shopping area
and may rely on pedestrian customers or public
car parking. Persons coming to the host for
other purposes provide a potential customer
base that the foodservice establishment may be
able to capitalize on. Thus, the planning may
reduce its promotional cost while maintaining a
steady customer base.
Co-location- here a company pairs up with another non-
competitive foodservice operation or with another type of
retail operation. Example of this type of location is a fast
food facility co-locating with the convenience store. Again
the foodservice facility anticipates increase customer
traffic generated by the other form with which is paired.
Also referred as a planned site, access and parking are
provided as part of the development and a range of
complimentary shopping outlets are combined on the site
in order to provide one stop shopping.
Factors to consider in selecting a site
1. Zoning restrictions- zoning ordinances must allow you
to do specific operation. It has other implications for
foodservice operations such as limitation on the
position, height and size of signpost.
2. Small or oddly shaped lot- not big enough or easily
accessible
3. Short term lease- do not lease for less than five years.
Generally short term rental agreements prohibit most
restaurants realizing their potential. It should be noted
that in shopping center, the management requires the
rent to be paid plus a percentage of profit based on
monthly sales.
4. Utility access- It means the availability of utilities such as
electricity, water, telephone and gas.
5. Speed of Traffic- Do motorist see your place?
6. Proximity to Workplace- Are your potential labor pool
able to live closely by?
7. Previous ownership- The planner should determine why
a previous business closed.
8. Visibility- Can the target market see the proposed
establishment?
9. Parking- Will there be enough parking space for the
target market? The general rule is one space for every
three seats.
10. Accessibility- Make it easy for guest to enter and leave
the parking lot and the building. Compliance with the law
concerning disables customers must be considered.
11. Restaurant Clusters- street line with eating places. The
advantage of being situated in the cluster is that it helps
the place becomes a destination for some.
12. Customers- both regular and infrequent- market
segments that can be categorized as regulars who visit
your establishment three to five times per month. ( single,
young families, retirees, tourist and conventioneers, office
or professional crowds)
Other Elements of Consideration

Foodservice and lodging concepts to

become a reality takes a lot of study,
patience and commitment.
 Foodservice Lodging

Service
Service
Mgmt.
Types of lodging
Ambience Rooms

Cost
Ambience
Trends
Ownership
Food
Cost

Culture
Culture

Concept
Market Location
Those are the required elements
to evolve foodservice and lodging
ideas into concepts considering
the market and location.
Chapter II: Preliminary Information
for the Feasibility Study
Organizing the Generated Ideas
The following can help the planner in putting the
information together in an orderly and coherent form.
1. A survey of existing foodservice and lodging facilities
in terms of the industry maturity and competitive
position
2. Defining the market
3. An assurance that the business concept conforms with
the objectives of governmental plans and policies
4. An information of major problems and risks
A Survey of the industry Maturity
Industry or product can be characterized
by four phases: Embryonic, Growth,
Mature and Vintage.
Depending upon the type of business, the
entire maturation process can have
unequal duration and can take anywhere
from a few years to a decade. (III-A)
There are no good or bad
maturity positions either. It only
becomes bad if the expectations
followed by a business are not
appropriate for that stage of
maturity.
 Embryonic Growth Mature Vinatage

F G
E H
D I
C
J

A- genetically altered foods F- ethnic specialty foods

B- delicatessen G- Fast food
C- specialty coffee/ tea H-Theme
D- Grill and Bar I- Bistro
E- Catering J- Night Club

The Competitive Position

The competitive position of the business is
another important factor to be studied.
Competitive position is a summary of the
business strengths and weaknesses relative
to those of its competitors. Business can be
described as dominant, strong, favorable,
tenable or weak.
Name of the company S O

T
Defining the Market
A study should be undertaken to find
out whether the product or service to
be sold has a market in the chosen
geographical area.
1. How many prospective customers are
there?
The Philippine population now stands
at 70 million. The specific population
statistics of the chosen area can be
sourced from the municipal hall of the
city or town where the business site is
located. The entrepreneur should be
consider the market figure may increase,
remain static or decrease over the next 5
years.
According to the National Population
Division there is a population bulge of
those aged between 18-24, and increasing
survival beyond the age 60. It is important
to consider these implementing changes
that will have impact on the lodging or
foodservice operation at this stage.
2. What is the demographic profile of the
market segment?
Hotel’s and restaurant sales are collected not
only with population trends but also with
personal income, age, sex, education and
others. In addition to demographics,
psychographics (eating pattern and habit) is
useful in determining patterns and habits of
the target market.
3. Will the demand for the product or services be
greater?

Will it be about the same? Or will it be less in five

years? Demand is certain to grow as consumers
become acquainted and familiar with the new
product or service. However, there is a need for
consistency in quality of product/ service to sustain
the demand. Other factors to consider are the
political, social, and economic trends, which would
produce market changes.
4. What competition exists in the chosen area for the
product or service?

To determine their competitive position, lodging and

foodservice operations within the area need to be
surveyed. Know their target market. Find out the
strength and weakness of their products, services,
amenities, designs, and management. Comparisons
with the competitor’s performance will help meet the
challenge of the competitors.
Goals and Policies of the Government
The business concept should conform with the goals and
policies of the government.
If the government has import restrictions on certain types
of food and beverages, the entrepreneurs need to make
some modification in its menu offerings.
The local zoning regulations will permit or prohibit will
permit or prohibit the establishment of a hospitality
operation in a desired area.
Local laws forbid the sale of the alcoholic drinks in some
locations, but not in other.
According to certain legislations, the comfort,
convenience, and safety of the business employees, as
well as the customers should not be overlooked. Smoking
in public areas is not allowed in the Quezon City to
conform with the clean air law.
Local legislations require that all places of business be
made accessible to differently able individuals. This may
be require some modifications as widening doorways or
building ramps.
Building and sanitation codes have their own
restrictions that need compliance from business
owners.
A business organization should be recognized
by the law for it to have a separate existence.
Major Legal forms of Organization:
1. Sole proprietorship
2. Partnership
3. Corporation
 Major problem and risk in putting up a lodging
and foodservice business
High initial investment cost is required for hotels
and luxury type fine dining restaurants.
There are foodservice organization which require
imported raw materials for its offerings.
Some new start up business ventures often involve a
technically new process and design that have not
been fully tested. It could produce a market decline.
Powerful competitors could, at any time , reduce
prices to capture the market.
It takes approximately 5-10 years to resource capital
investment in lodging facilities.
In the lodging and foodservice operations, very
often there is increase in labor cost without increase
on productivity.
There will be problems arising from social crowding
and competition for scarce natural resources because
of overpopulation.
The preliminary information for the feasibility
study includes a survey of the maturity and
competitive position of a business venture,
defining the market. These information will
help assess the feasibility of putting up a
lodging or foodservice operation, conforming
with the goals and policies of the government
and knowing the major problems and risks.