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But in day-to-day operation they collaborate. Restaurant provides buffet service to quests, and guests consider that this is hotel service. In this way, and restaurant and hotel promote each other.

We have also revealed, that restaurant`s attendance is variable in accordance with season. For л

example, during the valley season, when it`s time for business trips, the city doesn`t look so attractively, streets are poor lightened and dangerous for tourists, so guests prefer to stay in a hotel, that`s why restaurant meet a lot of guests. Though during the peak season, when it`s summer, there are a lot of places and entertainments to go so, restaurant`s capacity decreases.

Russian practice is introduced as young, second-wave, trying to adapt to modern conditions and paces of development. That`s why such form of organizing food service is considered as hotel`s advantage.

So, the hotel doesn`t provide any f&b services itself. But creating an illusion of providing f&b services by near-standing restaurant makes the clients think this is the one product. We can call it the difficulties of Russian business and the art of satisfying guests:

We are very glad to meet customers needs by offering them restaurant Pizza-M. As we are targeted on business guests, we are trying to develop especially range of business services. We`ve just finished with a new laundry service and started to construct a new convention hall with all necessary audio- and visual- equipment. So restaurant eases our operation and we don`t have to think about f&b department. Of course we agree that availability of your own F&B department is a great indicator of a hotel, it`s category and so on, but it requires the inflow of a great amount of money. Nowadays, we are tied up by local conditions and relatively low financial statement to develop our own f&b. We are sure that if you want implement something new in your hotel, so it must be good-quality product, answers executive director.

In fine, we conclude that hotel business reality and theory have some discrepancies. As a hotel can`t provide any services, it can benefit from other properties. In this case, location plays an essential role.

Many Vladivostok hotels have f&b operations as nearby independent properties. All these facilities are aimed to organize operation in such a way, that clients consider these services as a hotel`s product. The hotel tries to offer quality facilities, restaurant, and recreational facilities. It is a great plus if they are situated near their property. As tourism will develop, hotels try to have their own f&b department. But nowadays it seems a very long-term perspective Conclusion Until the 50s of XX century, hotel restaurants were a drag on hotel facilities, and had minor influence on hotel business. It was normal to get losses from restaurant business, and to cover them from the benefits of a room department [5]. On the other hand, customers considered the restaurant meal unacceptable in its quality and preferred to dine and supper in other restaurants. Though the end of XX century sharped a great decline of hotel`s level of business, and the importance of F&B department as perspective source of income started to rise up. Consequently, nowadays FBD influence the hotel so much hotel owners try to do their best to provide customers with superior catering service. So, the major customers` expectations are primarily connected with accommodation and meal.

We should mention that hospitality business is constantly changing;

it adopts to modern life conditions. Everyday development of hotel departments, implementing innovations results in human factors, such as necessity in accommodation, meal, comfort, safety, communication and variability.

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F&B department nowadays is one of the main sources of hotel revenue, especially, modern F&B facilities allow to satisfy several guests needs at once. That`s why quality organized f&b department of a hospitality unit is a prime factor of its success.

But in fine, we conclude that hotel business reality and theory have some discrepancies. As a hotel can`t provide any services, it can benefit from other properties. In this case, location plays an essential role. Many Vladivostok hotels have f&b operations as nearby independent properties. All these facilities are aimed to organize operation in such a way, that clients consider these services as a hotel`s product. The hotel tries to offer quality facilities, restaurant, and recreational facilities. It is a great plus if they are situated near their property. As tourism will develop, hotels try to have their own f&b department. But nowadays it seems a very long-term perspective This data can help to be aware of the role of food operations in hotel industry, to catch its diversity in terms of hotel positioning, hotel size and category. During our investigation, we`ve discovered that:

- According to hotel classification, there are different requirement to f&b departments - Restaurants and bars are also obliged with classification - In accordance with the size of a property, there are different organizations charts - F&B department can offer a wide range of services in the hotel - There are different types of organization f&b service within a hotel Also, we analyzed Vladivostok hospitality market. The research reveals that:

- Not every hotel can provide f&b department - The most common type of providing food service relationship with nearby independent food property - Owning its own f&b department is a long-term perspective References 1. All union standard number 50645-94 Tourists service. Classification of hospitality facilities dated February, 24, 1994.

2. All union state standard number 50762-95 Classification of food service facilities dated April, 5, 3. Jack D. Ninemeier Management of Food&beverage Operations, fifth edition, p. 36 AH&LA: Michigan, 4. James R. Abbey Hospitality Sales and Marketing, fifth edition. P. 531 AH&LA: Michigan, 5. Milton T. Astroff, James R. Abbey Convention management and service, eighth edition.

P.457 AH&LA: Michigan, 6. Hotel Primorye, sources of remote access - http://hotelprimorye.ru Great thanks to executive director of Hotel Primorye, Tatiana Aleksandrovna Kirechkova!

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QUICK-SERVICE RESTAURANTS CHAIN EXPANSION Kalashnikova A.A., Soboleva N.F.

Far Eastern Federal University, School of Economics and Management, Vladivostok Today, in the century of globalization, we tend to simplify all the aspects of our life in order to survive and become successful in a high-paced environment and get everything done on time.

As we all know, time is money and an extremely important resource we feel the lack of.

Therefore, fast food outlets have become popular with different types of consumers nowadays.

A fast food restaurant, also known as a quick service restaurant (QSR) is a specific type of restaurant characterized by minimal table service where food is typically offered from a limited menu;

is cooked in bulk in advance and kept hot, and then finished and packaged to order.

Fast food restaurants are usually part of a restaurant chain or franchise operation, which provisions standardized ingredients and partially prepared foods and supplied to each restaurant through controlled channels.

In 2012, the fast food nation of the USA has chosen its favorite fast food chain. That was Subway.

Subway history started in 1965 when a 17-year-old entrepreneur Fred DeLuca and his family friend partner Dr. Peter Buck opened the first submarine sandwich shop named Petes Super Submarines in Bridgeport, Connecticut.

With its 39078 restaurants in 101 countries, Subway finds itself balancing in a unique spot, wedged between two industries - health food and fast food.

As fast food is wholly associated with indulgence and unhealthiness, its message can create cognitive dissonance for consumers - the discomfort of two conflicting notions held at the same time.

However, Subway has to balance these two ideas and still makes it believable.

But the growth has been generated not only by Subway's offer of a healthy alternative to burgers and fries, but also a supremely efficient franchising model started in 1974 when Fred DeLuca sold a franchise to his fraternity friend Brian Dixon.

The average cost for opening a Subway Franchise Total Investment $85 200 - $260 Initial Franchise Fee $15 Royalty Fee 8% Number of employees in unit needed 8- Term of Agreement 20 years Subway allows absentee ownership of franchise. Subways director of development, Don Presentation of the report is located in the Presentation_of_Forum.

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Fertman highlighted that franchising model gives a lot more people opportunity to franchisees and those people are dedicated to their individual stores.

As a result of being 100 % franchised, the dollars stay local and the impact is on a local basis.

Regarding the international expansion of a multi-unit chain, the trick was to handle each market separately and considering the fact that local entrepreneurs know their markets a lot better than the ones in the headquarters.

Started in the year of 1984 with the opening of the Subway outlet in the Middle Eastern market of Bahrain, the chain started to appear in such distant lands as Iceland, Poland, Nicaragua and China.

Allowing an innovative and flexible market opportunities in Asia-Pacific region Subway keeps in mind its cultural and religious diversity. Entering Indian market with relatively low expectations, Subway built 330 outlets in 65 cities across India.

The marketers from Asia-Pacific countries note a large amount of foreign businesses entering Chinese market.

They find reasons for it in strong positions on European and North American markets and emphasize Subways strategy of adapting to cultural and religious features as serving beneficial among other chains.

In regard to Russia, Subway outlets are concentrated mostly in such cities as Moscow and Saint Petersburg, the cities in the middle part of Volga region (Nizhny Novgorod, Saransk, Kazan, Samara and Saratov), middle and southern Ural mountains region (Kirov, Yekaterinburg, Chelyabinsk, Orenburg), western Siberia (Tyumen, Surgut, Novy Urengoy), and Altai Krai (Biysk, Barnaul).

The total number of Russian properties equals 532. According to the official Subway website, the Far Eastern region is represented only by Khabarovsk.

To sum it all up, Subway has now become a habit for some people.

However, sometimes people tend to feel themselves too virtuous eating healthy food as the ads suggest, and they reward themselves with chips, sodas, or extra condiments that can turn a healthy meal into an unhealthy one.

The 4 Ps of marketing mix in the case of Subway can be described as following:

Product: sandwiches and salads, nutritious, healthy, adapted to each region Price: affordable, features discounts Place: franchisee shops - different outlets located in various parts of the world ranging from small corner shops to big QSRs, nontraditional locations airports, amusement parks, hospitals, universities Promotion: national TV advertising, posters, brochures Consequently, Subway gained its popularity due to rather interesting health-oriented product promoted with a good advertising campaign.

Moreover, it is not going to let the competitors take their place as they continue the expansion with 2000 new outlets opened each year.



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