Environmental and Sustainability Management 195 Minimizing waste generation begins with the purchasing function. Purchasing products in bulk, using products manufactured from recycled materials, controlling the usage of products to avoid waste, and working with suppliers to mini- £ȱȱȱȱȱȱ ¢ȱȱ£ȱ ȱǯȱȱ Ȃȱ ȱ ȱ ȱȱ ȱ ȱ¢ȱ ǻȱȱ ȱȱ >flU *3 Sfl Vfl -25<>ff <8 77B ;8= 9=<; 7@7B 9 83=< := <A 3 77B ?;< 8=<9=<; >flU +3 URfl fl -25<>ff <8 3= A =; 3 3= 98<< A 37 <78;9 7; ;8; >flU ,3 fl K KL Sfl Q -25<>ff <8 9 8<< < := <A 84 ?< ;8= ; 3 <8 =; @;< ;8= ; 44< A 3 :=<2 A >flU -3 SflSfl fl -25<>ff <8 77B ?;<?< 8=<9=<; 8 3 <8 9 8<< < :=< > 8 7< <8 ;4= 3 4 8 3 4= 3 <8 8; > 3 9 8<< < := <A 84 4 ; ?< ;8= ; >flU .3 LVQQJfl -25<>ff <8 9 9 83=<; 8< 98<< A B 38=; ;=2;<; ?< 78 > 87< A 2 9 83=<; >flU /3 flOfl -25<>ff <8 3= 8 8< 8 74= 7;;8; <8 < <78;9 3 8< > 87< 44<; 84 < ;98 < >flU 03 &Q O fl -25<>ff <8 3 ?< < 7= <9 373; 8 3 :=<2 7 ;= << 3> 897< ; 8< >;= A < =;> 3 8< 2=<; <8 8; > > 8 7< 3 = <= ? < 87 >flU 13 RRflKK% Qfl% Qfl Rfl Q -25<>;ff <8 9 8<< 3 8 98 < < < ;<; 84 877=<; 3> 897<; 3 <8 ;= << < > 87< ;;8; 3 2A ;<44 =;<87 ; 3 87 7=<; 9=< <8 9 < < 87 >flU 23 KQflJflU -25<>ff <8 ;= << ? <8 8; 3 9 83=<; 3;3 <8 2 ;; 98 =< 78 44< ;8 A 3 = <= A 99 89 < 3 > 2 ?8 3?3 >flU *)3 OflLOKQflJ ROfl -25<>ff <8 48 7 9 < ;9; <8 2 28=< 8< 7 ;=;<2 <A F@9G98 H K= OH E:A 8@= AB=; :6A9<L 6<8AM ! o % kg ) $ffl & $ ! ff r xe xl & e gjjm
196 Chapter 7 Ǽȱ ȱ ¢ȱ ȱ ȱ ȱ ȱ ȱ ȱȱȂȱȱȱ¡ȱȱȱǯȱȱȱ ȱ¢ǰȱȱ¡ǰȱȱȱ ȱ¢ȱ¡ȱȱĴȱȱȱȱȱ ȱȬȱĴ¢ǰȱȱȱȱ¢ȱǯȱȱȱĴȱȱ ȱȱ ȱ¢ȱȱǰȱ ȱȱȬȱĴ¢ȱȱȱȱ¢ǯȱ¢ȱ ȱ¢ȱ¢ȱ ȱȱȱȱŗǰŘŖŖȱȱĴȱȱ¢ȱŗŖŖȱǰȱȱȱ ȱȱǞŜŖŖǯȱȱȱȬȱ¢ǰȱȱ¢ȱŗŖŖȱȱ¢ȱ ȱȱŗŖŖȱ Ĵȱ¢ȱȱ¢ȱȱȱȱȱǞşŖǰȱȱęȱȱȱȱȱĴ¢ȱ disposal. Reuse as a means of waste reduction has been practiced in the hospitality industry for many years; beverage containers such as those holding syrup concentrate and beer kegs are typical. In some parts of the world, soda and beer are ȱ ȱȱ ęȱ Ĵǯȱȱ ȱ ȱ ȱ ȱ ȱ ¢ȱ and pallets to suppliers for reuse. Reuse does not have to happen on the property ȯȱȱȱȱȱȱȱȱȱȱ£ȱȱ ǯȱȱȱȱȱȱȱĞȱȱȱȱȱȱ other ways reused and given an extended lifetime. Recycling as a means of conservation can be turned into a revenue stream. The price paid for recycled materials varies geographically and over time. Geographic variations are due to proximity to potential processors and the users of recycled materials as well as the degree of development of recycling in the area. Variations over time occur due to market forces that are related not only to the supply of materials but also to the demand for recycled products. The real economic value to a property of a recycling program is usually in the savings in waste haulage rather than in the money received for the recycled products. This is illustrated in Exhibit 2. ȱ¢ȱěȱ ȱ¢ȱȱȱȱ ȱDZ F@9G98 O I=7M7;9K :<8 B9K<J M88 I=K=7M @97K: F? !))' !))( Q flR ff+))%010 ff*0/%0+) @R fl% PQOfl +1%-.2 ,,%.)) @RQ 1%1-+ /%))) 8BF? "#(ffi (( "!&ffi"" + J fl ff0,%.)1 ff0-%))) QOR fl /.%))) ..%-)) QOO 1%+.) 2%0-) 8B+ !$&ffi'%( !#)ffi!$ 4 F? )!ffi## ''ffi ( ! o '$ b$ e $ e % &q % ! s ' & u fi ''fi -'fi flfi fl< flfi 1ff fl fi 7fl ', l gjjj
Environmental and Sustainability Management 197 Glass Metals Plastics Paper Cardboard Yard waste Purchasing records are a rich source for identifying the potential volumes of ¢ȱǯȱ ȱȱ¢ȱȱȱȱȱȱȱ packaging used allows for a quick estimate of the potential volume to be recycled. With glass recycling, it may be necessary for you to separate the containers by color to receive the best prices. To reduce the volume of the glass, a glass crusher ¢ȱȱȱ ȱȱ ǻȱȱ ȱȱȱȱ ȱ¢ȱ Ǽǯȱȱȱȱ ȱȱȱȱĴȱǯȱȱȱ¢- ȱȱ ȱȱĴȱȱȱȱǯȱȱęȱȱ ȱ¢ȱȱȱȱ ȱȱĴȱȱȱȱ ȱȱȱ refund. Metals recycled in the hospitality industry are usually from metal beverage ȱǻ¢ȱǼȱȱȱȱǻȱȱȱǼǯȱ- num has the higher value, making separation important. In certain areas, metal ȱ ȱ ȱ ȱ ǰȱ ȱ ȱ ęȱ ȱ ȱ ȱ return. Food cans need to be clean and in some instances without their paper labels. Can crushing can help to reduce volume and the space required for storage. ȱ¢ȱȱȱȱȯ¢ȱȱȱ- ȯȱ ȱ ȱ ȱ ȱ ȱ ¢ǯȱ ȱ ȱ ȱ ȱ ȱ recycling, cleanliness of the product and separation of various types of plastic are key to receiving a good market price for the plastics. Exhibit 3 contains informa- ȱȱȱ¢ȱȱȱ¢ȱěȱȱȱȱȱ commonly using these plastics. Paper recycling is an option available to many operations. Separation of vari- ȱ¢ȱȱȯ ǰȱĜȱ¢ȱǰȱȱȱȯȱȱ appropriate if large enough amounts exist, since the prices for mixed paper are ę¢ȱ ȱȱȱȱȱǯȱȱȱȱȱȱ add paper to composting operations; few have been successful. Cardboard has long been recycled. There is generally a stable market for this material and, because of its characteristics, it lends itself to on-site collection, compression, and baling. If large quantities of cardboard are collected, a baler may be warranted. Besides the day-to-day accumulation of scrap cardboard from receiving department activities, a potentially large amount can also be generated when renovations or replacements are undertaken. Working with vendors at these times can help ensure that cardboard is recycled. Yard waste and seaweed from beach cleanups is non-existent at some opera- ǰȱȱȱȱŚŖȱȱȱȱȱȱ ȱȱȱǯȱ ȱȱȱ time permit, on-site composting of these wastes, along with non-meat kitchen waste, can not only reduce the cost of waste disposal but also provide a valuable x x x x x x
198 Chapter 7 F@9G98 N :LL: ;<897< DD;9789:< >UflLU OLflLfl !> % > "' > % flQL% L flQ J OOfl' UQ Kfl N Jflfl UMfl Q OQfl fl' flL OOflQ flOO JflL K &K fl& ' % U > KN Ofl fl KO KJ K Ofl U% OQ KJK &flTfl' N& 3 >Ufl' L flU>UflLU !>"' > Q fl N JflflK N% MQ% Sfl% QUOQfl' Ofl Jflfl flQfl% LR J OOfl flKK% SQfl fl ON O& QflSflL LflLK KQL N' 8Q > L L fl% fl Q K ON ULQL Qfl LQL flfl JL' >fl > JflflLR Jflfl flN fl flL QOfl > Jflfl' >flKfl N% Sfl% OflN% J% QflLSL% flQO Jflfl' >Qfl JQflfl% ON% MU% M M' R& J K RJ OO K flU' =N% Sfl% MQ% & fl%LO% L QUflfl Jflfl4UQfl & flQJ4 JT 4 U% flL% fl J' AU !>URU L >A"3 fl fl flflJ OLU OOfl% >A LT& fl L fl% SflLJflU% KS Lflfl% flJ fl OO& fl' L Rfl K RU OQfl J JUR fl KTJ fl& ' 8flfl ONLfl M Nfl% JQfl fl SUQ flL flQfl Nfl KQL OOfl OO Kflfl%% Ofl JN SS' 9TJ RU Q S J Qfl% K Lfl% K R UflLfl flL OQfl% fl% J J% flQJ% UflL OO& fl' S flU>UflLU ! >"' O& flU K OOflQ fl flflQL& % KTJflU flR flOU% N& fl OOQ K Q OOflSL Lfl U' > Q fl QKflQ KTJ Jflfl fl Q S J OOfl + K &K ON% flQJ& % S J Qfl% K Lfl% flQfl O& QflQL OO% Kfl& fl%% K fl% Ofl JN S& S K' U% J KV K J% PQVJ Jflfl!'' LU% Qfl"' , C A??CCB
Environmental and Sustainability Management 199 soil and fertilizer source. For those operations that elect not to compost this waste on-site, haulers are available to take it to locations for composting. Waste transformation is an opportunity that may be worth considering under certain circumstances. Incineration of wastes was once common and is still used today in some locations. This can be at the unit level or in a large waste-to-energy ¢ǯȱȬȱȱȱĞȱȱȱȱȱ ȱęȱȱ ȱȱȯȱ¡ǰȱȱȱȱȱȱȱȱ ȱȱ ȱȱ ȱȱęǯȱ ȱȱ¢ȱȱȱ ȱǰȱ ȱ ȱȱ ¢ȱ Ĝȱ ǰȱȱ ¢ȱ ȱ ¢ȱ ¡ȱȱ ȱ removed from the waste before burning, viewed as minimally harmful to the environment. Pulping is another method of transforming waste, in which a pulping machine ¡ȱȱ ȱ ȱ ǰȱȱȱȱǻȱȱȱȱǼǰȱȱ it and as a result extracts water from the tank in which the waste is ground. It then expels the pulp into a holding bin. Waste does not enter the sewage system. The pulper recycles the water it used during the grinding process. Pulpers can handle typical food service waste such as plastic utensils and containers, paper napkins, aluminum foil, straws, milk cartons, and corrugated cardboard. Garbage volume ȱȱ¢ȱŝśȱȱŞŖȱǰȱ ȱ¢ȱ ȱ ȱȱǯȱ ȱȱ also possible to transform food service wastes with a pulper and make them easier to handle for eventual composting. Exhibit 4 provides a summary of the information discussed in this chapter on solid waste disposal and other suggested actions. Selecting and implementing F@9G98 N flL' K flL flflLfl flL ON& PQfl SflL flL flL flLTfl JR% K flL fl JR Q Qfl&U Jfl' >UOOU !>>"' >UOOU L L fl% fl% L LL fl Ofl N fl K Lfl&K PQ' >> KQ KTJ ON OflK QflflR & Q OQfl' >UflU !> "' >UflU Rfl Ofl flLfl J K' : OQ& O OUflU % L% Jflfl' fl L flRUS fl Ofl' UO OOflQ OflflR ON% & fl% % QO% Jflfl% flU' flQO Jflfl%UQfl fl & flQJ% Jflfl' Ofl MNfl% KR OO& fl% Ufl fl flU% fl% O& Jflfl% QO% Ofl% QflU' L KR QJ Sfl Jflfl% flQMQ% flQO Jflfl' + , C A??CCB
200 Chapter 7 waste minimization practices appropriate to your property will help to address economic and environmental issues. Energy Conservation and Management Energy conservation and management has long been a concern to the industry, ¢ȱȱȱǯȱ¢ȱǻȱȱȱȱǼȱ¢¢ȱ represents four to six percent of hotel revenues for U.S. hotels. In the U.S. lodging industry, this translates into an annual expenditure for energy of 4 billion. ¢ȱȱȱȱ¢ǰȱȱǰȱ ȱȱ ȱǻȱ to the ȱ¢ȱȱȱȱȱȱ ¢Ǽǰȱȱȱǰȱ and in some instances, purchased steam, hot water, and chilled water. Byproducts of energy usage include carbon dioxide, nitrous and sulphur oxides, and particu- ȱĴǯȱěȱȱȱ¢ȱȱȱȱĴȱ ȱ reduce energy usage with resultant cost savings and reduction in environmental pollutants. Good facilities management practices involve actions that will control energy usage. Examples of the kinds of management actions that help control energy ȱDZ ȱȱȱ¢ȱȱȱ¢ȱǯ Properly maintaining equipment. Using proper operating methods and records. To monitor the usage of energy, it is necessary to keep adequate records of energy used and the amounts paid for the energy. Unfortunately, the process used x x x F@9G98 T K= OH V<8= 99L9a89: 789:< I !G J @Q flL Sfl JQ JUfl OQflflLfl LR Sfl Ofl' flQOOSL fl V flL Sfl OflK flL OQfl fl flLfl QKflQV Q &fl ON' @Q OQflSLR OJ' @U SL Qfl Q fl OJ SL R& flUQ Sfl O Qfl!''% J" fl OOOfl' O K QRJ SflOJU' QflKK fl OUflL OOK Sfl Vfl fl L' BN SflL Rfl flL QflLflfl flJL JL flLfl OR fl Rfl Kfl JQfl OQfl O' O U O Kflfl OU Qflfl OR R flflPQflU'
Environmental and Sustainability Management 201 by some operations does not provide the facilities manager with the needed information. If bills for utility services are not provided to the facilities manager for review, not only does the operation lose a needed check on charges being incurred, but the facilities manager also is denied the opportunity to maintain a record of the quantity and cost of the energy. On the other hand, some operations have developed sophisticated methods to know how much energy is being used at a facility. ȱȱŗşşŖǰȱ ȱȱȱȱ¡ȱȱȱ¢ȱ ȱȱȱȱȱȱȱȱȂȱǯ Using computerized controls at the building, the facilities manager is able to not only obtain records of energy usage over time but also monitor instantaneous usage. Some multi-unit operators have contracted with providers who monitor their buildings and provide them with utility usage reports, either on paper or on-line. ȱȱȱȱȱ¢ȱȱ¢ȱȱǻȱ Ǽȱ ȱ ȱ ǯȱ ȱ ȱ ȱ ȱ ȱ ȱ ¢ȱȱ ȱ ęȱ ȱǻȱ¢ǰȱȱ¡Ǽȱǰȱȱȱ¢ȱ ǰȱȱȱȱ ǯȱȱȱȱěȱȱȱȱȱ ¢ȱȱȱȱȱ ȱȱ¢ǯȱȱȱȱȱĞȱ ȱȱȱȬȱǯȱ This conveys the impression that the actual usage of energy occurs in the guestroom. For many operations, this is not the case. Energy is used by a host of systems and energy management needs to focus on those systems and the areas they serve. Submeteringȱ ȱ ¢ȱ ¡ȱ ȱ ȱ ǯȱ ȱ ȱ ȱȱȱȱȱȱȱȱȱǰȱ¢ȱ¢ȱęȱ submetering to be more common. ¡ȱśȱȱȱȱȱȱȱ obtained from submetering. F@9G98 U :8; :<8 >A=?:Wh =AKM V8=A 698 < % ffifl!fl N 0Bfi "! N 0/ ! ? ff flN "ffl!fflffl flN 8 ! N 5H "!fl flN 6B $ ffl!fflffl "N / ffi!flffl flN #ff ff H N > flN @='6 N &fflfi , $fi ( .-/fi 012 %3
202 Chapter 7 Proper maintenance of equipment is key to achieving its rated performance. ȱȱěȱĜ¢ǰȱȱȱȱ¢ȱȱȱĜ¢ȱȱ- ȱȱȱ ȱ¢ȱȱȱȱ¢ȱȱ¢ǯȱȱȱȱ provide proper water treatment for boilers and chillers can increase the rate at ȱȱȱȱȱǯȱȱȱȱȱȱ reduces friction and resulting losses. Making certain that valves are not sticking open will ensure that equipment does not simultaneously try to heat and cool or that water is discharged only when it should be, rather than all the time. ȱȱȱȱȱ¢ȱ¢ȱȱȱěȱȱ other employees is also an important component of energy management. Facilities ěȱȱ ȱ ȯȱȱȱȱ¢ȱȯȱȱ ȱěȱȱ performance and operations. This involves issues such as what equipment to oper- ȱȱȱȱ ȱȱȱȱȱ¡£ȱĜ¢ǯȱ ȱȱȱ controlling the operation of equipment so that unnecessary operation does not ȯȱ¡ǰȱȱȱȱȱȱȱȱȱȱȱ- ȱȱǯȱȱěȱȱȱȱȱȱȱȱȱȱ ¢ȱȱȱǯȱȱȱ ȱȱȱȱȱěǰȱȱ¢ȱȱ ȱǰȱȱȱȱěȱȱȱȱȱǰȱȱȱ ȱȱȱȱǰȱȱǰȱ ȱȱęȱȱȱ¢ǯȱ ȱȱ¢ȱȱȱȱȱDZ ȱĜ¢ǯ Reducing operating hours. Reducing the load being supplied. Recovering and reusing waste energy. Using the least costly energy source. ȱȱȱ¢ȱȱ¢ȱ¢ȱȱȱę¢ȱĚȱ¢ȱ ȱĜ¢ȱȱȱǯȱȱȱǻȱǼȱ¡ȱȱǯȱȱ- ȱȱȱȱ ¢ȱĜ¢ȱȱŘŖȱȱȱ ĴǯȱȱĚȱȱ ¢ȱȱȱĜ¢ȱȱŜŖȱȱȱ Ĵǯȱȱȱȱȱȱ¢ȱ is required to produce the same amount of light from an incandescent versus ȱ Ěȱǯȱ ȱ ȱ ¢ȱȱ ȱ Ĝ¢ȱȱ ¡ȱ ȱ - ous pieces of equipment, the cost of energy, and the amount of energy used by the equipment, you can conduct an economic analysis to assess the feasibility of ȱȱĜȱǯȱȱȱȱ¢ȱ¢ȱȱȱȱ ȱȱȱȱȱęȱȱȱĜȱ- ȱȱȱȱȱęǯ ȱ ¢ȱ ȱ ȱ ¢ȱ ȱ ȱ ȱ ȱ ǰȱ ȱ ǰȱ ȱȱȱěǯȱȱȱȱȱŘŚȱȱȱ¢ǰȱȱ ȦȦȱȱȱȱǰȱȱȱȱȱȱ time clocks rather than on photocells, and a host of other all-too-common practices result in excessive and unnecessary energy usage. ȱ ¢ȱ ȱ ȱ ȱ ĞȬȱ ǯȱ ȱ ęȱ ȱ ȱȱȱǯȱ ȱȱ ȱȱȱȱȱȱ x x x x x
Environmental and Sustainability Management 203 of water required. Providing additional roof insulation cuts down on heating and cooling loads. The opportunities are extensive. ¢ȱȱȱȱȱȱȱȱȱȱȱ waste energy. One option for all commercial buildings is recovery of heat or cold ȱ¡ȱǯȱȬȱȱȱȱȂȱȱȱȱȱ¡ȱ air is a way to recover and reuse waste energy. The laundry provides further opportunities for recovery of heat, from both exhaust air and from discharged water. For the resourceful, the opportunities are almost limitless. Imagine using water to cool refrigeration equipment, then using this water in the laundry operation. Not only ȱ ȱȱȱȱȱȱǰȱȱȱȱǯȱȱȱȱ operations, the path to recovery and reuse of waste energy may mean producing power on-site by either an engine-driven generator or, not so far in the future, a fuel cell. Creative facilities professionals and managers who want to encourage creativity have the opportunity to accomplish some amazing things. Using the least costly fuel source can require careful recordkeeping and research. Consulting historic consumption records and information about prices provides the information necessary to consider fuel cost options. This can involve ȱȱȱȱȱ¢ȱěȱȱ ȱ¢ȱȱǰȱȱ electricity supplier, and consideration of direct purchase of natural gas. It could ȱȱȱȱȱȬȱȱǻȱȱȱȱ¢ȱ ȱȱ ȱ ȱ ȱ ȱ ȱȱ ȱ Ǽǰȱ ȱ ȱ- ȱȱȱȬěȱȱȱȱȱȱȱȱ¢ȱ rather than running a boiler at the property. Researching the available options can ȱǰȱȱ ȱȱȱȱ¢ȱ ǯȱȱęȱȱ ȱȱ worthwhile to contract with companies to audit utility bills for errors or for the ȱěǯȱȱȱȱȱȱȱȱȱȱȱȱȱȱ ȱ¢ȱęȱȱȱ¢ȱȱȱȱȱȱ¢ǯ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱȱ ȱ - ers in reducing and managing energy usage. Many U.S. lodging corporations are ȱ ȱ ȱ ǯǯȱ ȱ ȱ¢Ȃȱ ¢ȱ ȱ ȱ programs. These programs provide a wealth of information about energy man- ȱȱȱȱȱǯȱ ȱȱȱȱȱȱ ¢ȱǰȱȱ¢ȱȱȱȱȱȬȱ ǰȱ ȱ ȱ ȱ £ȱ ȱ ȱ ȱ ǻȱ ȱ ȱ ȱ Ǽȱ ȱ ȱ ǻȱ ȱ ȱ ȱ ȱ Ǽȱ ȱ ȱ ȱ ǯȱ ¢ǰȱ ȱ ȱ commonly read by facilities professionals, such as Buildings and Building Operating Management and specialty publications such as ¢ȱȱ , can help you stay abreast of the latest technology, challenges, and opportunities in the energy domain. Exhibit 6 lists environmentally benign methods of energy generation such as ǰȱ ǰȱȱǰȱ ȱȱ¢Ȭȱ ȱ¢ȬĜȱ - gies. U.S. hospitality operators have not adopted environmentally benign methods of energy generation in large numbers. In urban areas, there are some real challenges to doing this. For others, the economics of these options have either not been favorable or have not been objectively investigated. For many opera- ǰȱȱȱ ȱ¢ȱ¢ȱȱĴȱDzȱȱ ȱ
204 Chapter 7 ȱ ȱ ¢ȱ ȱ ȱ ȱǰȱȱ ¢ȱ ęȱ¢ȱ ȱȱǯȱȱȱ ȱȱȱȱ¢ȱ ȱ¢ȱ- ȱȱȱȱ ȱȱȃȄȱǯȱȱȱȱȱȱ ¢ȱȱȱȱȱȱ ȱęȱȱȱ¡ȱȱ¢ȱ benign methods and purchasing from them is a worthy consideration for the environmentally concerned operator. Management of Fresh Water Resources ȱȱȱȱȱ ȱȱȯ¢ȱȱȱȱȱ ȱȱȱȱ ȱȱȱȯ¢ȱęȱȱȱȱȱ ȱ ȱȱȱȱ¢ȱȱȱĴȱȱȱȱȱȱȱȱ ¢ȱȱ ȱǯȱȱ ȱȱȱǰȱȱȱȱ ȱ ȱȱȱȱȱǯȱȱȱȱŗŖŖȱȱŘŖŖȱȱ ǻřŞŖȱȱŝŜŖȱǼȱȱ ȱȱȱȱ¢ȱǻřŜǰśŖŖȱȱŝřǰŖŖŖȱȱǽŗřŞǰŖŖŖȱȱ ŘŝŜǰŖŖŖȱǾȱȱȱȱ¢Ǽȱȱȱ ȱȱǞŘǯŖŖȱȱǞŚǯŖŖȱȱŗŖŖŖȱ ȱǻǞŖǯśŖȱȱǞŗǯŖŖȱȱŗŖŖŖȱǼȱǻȱȱȱȱȱȱ - ȱǼǰȱěȱ ȱȱ ȱȱ¢ȱ¢ȱěȱ ȱĴȱ ȱę¢ȱȱ¢ǯ ¢ȱ ȱ ¢ȱ ęȱ ȱ ȱ ȱ ȱ ȱ water usage because of supply shortages caused by dry weather, high consumption, or water system breakdowns. Regulations can also prohibit certain uses of water or the time of its use; for example, lawn watering may be prohibited or limited to the evening hours. Regulations may also set maximum usage levels, with ęȱȱȱ¡ȱǯ ȱ ȱ ȱ ȱ ȱ ¢ȱ ȱ ¢ȱ ȱ Ĵȱ ȱ ȱ responsibility as it relates to fresh water. Resorts proposing to build in any area ȱ ȱ ȱ ȱ ȱ ȱȱ ȱ ȱ ȱ ȱ ȱ ěȱ ȱ supplies in the local community. These demands may also create needs for costly F@9G98 X K= OH =AKM :<=AB89: K=L=8 789:< I " ?I F ? Ofl Ofl Q USfl4O QQL SflL KK PQOfl SL fl Q JQJflfl K Rfl JKflflL KflflO Ufl O' @L flflR% RflUJ flLK Ufl% QL % S% JOS' RO% Q% fl U&R flLU' flfl UKKUflfl S ROfl' flKK JQfl flL Rfl JKflK flflRflR U' 9 fl&fl Ofl% OUU&KKfl flL Kfl RO RO Qfl'
Environmental and Sustainability Management 205 increases in water infrastructure that could raise the price of water for local peo- ǯȱȱȱȱȱȱȱȱǰȱȱȱȱȱ ¢ȱĴȱȱȱȱ¢ȱȱȱ ȱȱ¢ȱȱ ȱȱ ěȱȱ£ȱ ȱȱȱȱȱ ȱǯ Though not all-inclusive, ¡ȱ ŝȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȯȱȯȱ¡ȱȱěȱȱȱȱ water resources. Rainwater capture is widely used in locations with limited water supplies. Directing refrigeration condenser cooling water through laundry cycles ȱȱǯȱěȱ¢ȱȱȱȱȱ¢ȱȱȱȱȱ¢ȱ other opportunities. Wastewater Management Most of the fresh water used by hospitality operations ends up leaving the operation as wastewater, the notable exceptions being water used in cooling towers and for landscape irrigation. Operators pay for wastewater disposal as a component ȱȱȃ Ȅȱǰȱȱȱȱǰȱȱȱȱȱȱȱ ȱ ȱ ȱȱǻ ȱȱ ȱȱ¢ȱ¡Ǽǯȱȱȱȱ ȱǞŝśȱȱǞŘŖŖȱȱȱȱ¢ȱȱ ȱǯ F@9G98 Q K= OH A=<@ V8=A K=L=8 789:< I # ? G E N OJ Qfl Oflfl flLPQflUK KL Sfl R flJL OOOfl UOQLQ RJ Q flLfl' >R KL Sfl KflK Q JU Qfl Q OUK Sfl KflQflQ fl J fl flR flL K JflL flQfl Qfl' =V Sfl K Sfl JUQflN Q fl LN' BN SflL Qflfl Q Sfl 4 O flTO fl QflflL Ofl K R Sfl MQfl TO K U Q KKflR flflR' Sfl&R Rfl Q Sfl QOfl SL fl& RPQflU' >fl QLfl&flflO O ' RO OOOfl Rfl Ofl fl fl Q flLfl Sfl Rfl NUfl K S OMfl% K Sfl flQfl UQfl Lfl% J OO fl N flL 8< fl JQ' 9 fl&fl Ofl% fl Sfl&R flL flLPQfl Kfl RO Qfl' @Q U Sfl SLR OJ' QflKK Qflfl Ofl OflK flL Sfl & fl O fl UOQfl L'
206 Chapter 7 Most commonly, local regulations govern the quality levels of water discharged from wastewater treatment plants. Moreover, there may be regulations governing the content of wastewater discharged to the wastewater system. These regulations were the impetus for creating the grease traps in kitchen areas. In many locales, regulations also require that receiving dock drainage be routed to ¢ȱ ȱ ȱ ȱ ȱ ȱȱ ȱȱ ȱ ȱ ěȱ ȱ ȱȱěȱȱȱ¢ȱ ȱ¢ǯ ȱȱȱ¢ȱȱĚȱȱ ȱǯȱȱ locations with poor wastewater management have contaminated beaches, resulting in at best an unpleasant environment and at worst illness of guests and local people. From a business perspective, this is disastrous. Circumstances such as these have prompted tour operators to refuse to bring groups to these destinations ȱȱ ȱȱȱȱȱȱȱǯȱȱȱ ȱ ȱȱȱ¢ȱȱȱȱǰȱȱȱĚȱȱȱǯȱȱȱ ¢ȱȱ¢ȱ ȱȱȱȱĴǰȱ ȱ¢ȱ reduces the appeal of the operation and the local economy that depends on it for their livelihood. Discharge of untreated wastewater to the environment is socially irresponsible. While customers may be exposed to this wastewater during the short stay of their visit, it is the local population that is most exposed both to the water itself and to possible diseases the water may carry. Owners and managers need to ensure ȱ ȱ ȱȱȱ ȱȱȱȱ¢ȯȱ¢ȱ their own on-site plants, but also those of other businesses in the area. Owners and managers also should take responsibility to ensure that waste processing by municipal agencies is not harming the environment. Failure in doing this could mean that the clean environment so essential to business survival will be irreparably damaged. ¡ȱŞ is a summary of several of the items discussed here regarding wastewater management, as well as some topics for additional involvement and concern. Those operations exhibiting proper responsibility regarding wastewater will help to ensure the ongoing environmental health of their destination for guests, employees, and local people. Hazardous Substances ¢ȱȱ¢ȱȱȱȱȱȱȱȱȱhazardous substances.ȱ ǰȱ ȱȱȱȱȱȱ ȱ¢ȱ ȱdo ȱ£ȱǯȱ¢ȱęǰȱ£ȱȱȱȱȱ DZ ¡ȯȱ ȱ ȱ ȱ ȱ ǰȱ ¢ȱ ȱȱ- ment, or death when inhaled, ingested, or absorbed; for example, pesticides and herbicides. Flammableȯȱ ȱ ȱ ȱ ¢ȱ ȱ ¢ȱ ȱ ȱ Ěȱ ȱ ȱęǯȱȱȱȱȱȱȱ ȱ ȱĚȱDzȱȱ example, solvents and fuels. x x
Environmental and Sustainability Management 207 ¡ȯȱ ǰȱ ¢ȱ ȱ ȱ ȱ ǰȱ ȱ producing such a temperature, pressure, and speed to cause damage to the surroundings. Corrosiveȯȱȱ¢ȱȱȱ¢ȱȱǯȱȱ in contact with human tissues, these substances may cause burns and destroy ǯȱȱȱȱȱǰȱ¢ǰȱȱǰȱȱǯȱȱȱȱ cleaners are usually corrosive. Infectiousȯȱ ȱȱȱȱ ȱ ȱ ¡ǰȱ capable of causing disease. Examples of infectious items are medical waste or ȱȱǻǰȱǰȱȱǼǯ ȱȱȱȱȱ£ȱȱȱȱȱȱȱ ȱ ȱDZ Minimizing the use of hazardous materials Using more environmentally acceptable alternatives ȱȱȱȱ£ȱȱȱȱ Ensuring that hazardous materials are stored, labeled, used, handled and disposed of in accordance with local and international standards and regulations ȱȱȱȱȱȱȱȱDZ Identifying and record where hazardous materials are being used, what they are being used for, and the reasons for their use. ȱȱ£ȱȱ ȱȱǯ x x x x x x x x x F@9G98 R K= OH V<8=W8=A K=L=8 789:< I $G G ? SflSfl flflfl Kfl QflflQ flL S fl Q flLfl KKQfl flfl fl flL B fl Q Q KUOQOSL OOOfl' BL SflSfl Kfl fl Tfl% SN SflL flL O R& flfl flJL OOOfl Kfl OQ' flJL OOOfl flLfl Ofl Q flLfl OflflU L fl fl flL SflUfl flLQL QKK' flJL OSflLflKK% flQfl% Qflfl QO PQfl Rfl' flJL UOQfl Q flLfl flL PQfl Rfl Oflfl K flSflL flL KflU' BLR OJ% R OQflfl OflflULVQQJ& flSLL URflQUK flL SUfl flL SflUfl' O K SflSfl OJU'
208 Chapter 7 Identifying, where possible, environmentally preferable alternatives. Reviewing handling, storage, labeling, and disposal procedures. Compiling a hazardous materials manual. ȱȱŗşŞŖȱȱŗşşŖǰȱȱĴȱ ȱȱȱ ȱ£ȱ DZȱȱȱǯȱȱ ǻ¢ȱǼȱ ȱȱ - formers and certain other electrical devices. Ensuring that PCBs do not leak from these devices and that PCB-contaminated products are disposed of in an approved manner continues to be a concern, especially in developing countries. ȱ ȱ ȱ ¢ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ become airborne and then inhaled by building occupants. Proper procedures to identify and manage asbestos are well developed and need to be followed. Ȭȱ ȱ ȱ ȱ ȱȱ ȱ ȱ ȱ¢ȱ ȱęȱ ȱ is common in the industry. Fuel leaks and discharges can be highly damaging to the environment. Proper procedures and regular inspection of tanks and supply pipes are critical to maintaining the integrity of these storage systems. Fuel storage tanks should be located above ground to help minimize undetectable leaks and to ȱĚȱȱȱǯ In lodging establishments, common corrosive materials include cleaning chemicals, chlorine for pool water treatment, and bleach used in laundry operations. Replacing chlorine with ozone-based systems should be considered as a way to reduce potential use and exposure to this potentially corrosive chemical. ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ Ğȱ ȱ ȱ ȱǻ£ȱ¢ȱȱȱǼȱȱȱȱ- ¢ȱ ȱ ȱ ǯȱȱ ȱ ¢ȱ ȱ ¢ȱ ǯǯȱ ȱ ȱ ȱȱȱȱȱȱȱȱȱȱǯ ¡ȱş provides a set of actions that can help reduce problems of hazard- ȱǯȱ ȱȱȱȱȱȱȱȱȱ¡ȱşȱ ȱ assist in reducing the usage and release of hazardous substances. Transport The hospitality industry obviously would not exist without means of transport for customers, employees, and supplies. The combustion of fuel by autos, buses, trucks, trains, planes, and ships clearly contributes to emissions and air pollution. Building the infrastructure to meet transportation needs, such as roads, airports, and terminals, requires alterations to the landscape and contributes to environ- ȱ ǯȱ ȱ ȱ ȱ ȱ ȃȄȱ ȱ contributes to a less-than-pleasurable experience for guests and employees. To help curb the emissions at the unit level, lodging operators can purchase ȬĜȱ ǰȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ gas, and encourage car-pooling and public transportation by employees. Coordinating the ordering of supplies to help ensure a minimum number of deliveries and looking to purchase supplies produced locally can also help to reduce the environmental impact of transportation. x x x
Environmental and Sustainability Management 209 ¢ǰȱ ȱȱȱȱȱ¢ȱȱȱȱǻȬ Ǽȱǰȱȱȱȱȱȱȱ ǰȱȱȱȱ to encourage safe transportation is important. Encouraging use of seat belts, safe operation of vehicles, and minimizing overcrowding of bus and other vehicular transport is needed. Transportation-related injuries and deaths are all too prevalent and clearly represent a place where improvements are needed. ¡ȱŗŖȱěȱȱȱȱȬȱǯȱ¢ȱ of these involve activities that encourage the use of mass transit and consider the potential environmental impacts of transportation when purchasing decisions are made. Land-Use Planning and Management Probably tens of thousands of hospitality facilities are developed each year if one includes restaurant, lodging, and amusement facilities. Facilities development is a time of unique opportunity to examine the environmental, cultural, social, and ȱȱȱȱǯȱȱȱęȱȱȱȱ¡ȱ can be substantial. From an economic perspective, appropriate land-use planning and management can result in reduced or, at the very least, more controlled costs for devel- ȱ ȱ ǯȱ ȱ ȱ ¡ȱ ȱ ǻȱ ¡ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ Ǽȱȱ ȱ ȱ ¡ȱ ȱ appropriate land-use planning and management that reduces initial costs. Reusing existing structures also helps to retain a cultural and social fabric for a loca- ȱȱȱȱȱę¢ȱěȱ¢ȱȱȬȬȱǯȱ F@9G98 S K= OH aA:6< 6G<87= 789:< I % JE E> T flL flUK Q K OQflfl OflflULVQ QJfl% SL OJ% Q RflUJ OQfl' flL KQ Rfl S K OflK S OQfl O fl OQL' BL RflUJ flflR fl Tfl% K OflLOSflL Rfl QKflQfl RO flL' @Q Q K OQflfl LVQQJflfl flL Sfl O& JPQflflU U Q UQ flLfl J OflQ' O K UQRJ SflOJU' fl QO Rflfl OQfl Q fl flLKfl(fl' Q flLfl OOOflflKK fl L K LVQQJ& fl UOQ' flfl Qfl K flTQJflfl flL Rfl Ofl K WLfl&fl&NSYO K OU Lfl Qfl' K J flL NS&LS fl RO Qfl'
210 Chapter 7 Proper site orientation of newly constructed buildings and retention of existing landscaping can result in lower energy costs and reduced costs for landscaping, both initially and in the long term. ȱȱ¢ȱǰȱĴȱ ȱȬȱȱȱ- ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ Ğȱ included in the broader context of the environmental impact statement (EIS). The EIS process can be expedited by addressing these issues in the planning stages. ȱĴȱȱȬȱȱȱȱȱȱȱȱ with a greater sense of place and resulting customer appeal. Customers doȱȱȱȱȬȱȱȱǯȱȱ Ȭ ȱ ¢ȱ ȱ ȱ ȱ Ĵȱ ȱ ȱ ȱ ȱ ȱ ȱ ¡ȱ ȱ ȱ ȱ ȱ ǯȱ ȱ ȱ ȱ ȱ ȱ ȱ DZȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱȱ ȱ ȱ ȱ Ĵȱ ȱ ȱ - ȱȱȱǰȱȱȱĴȱȱĜȬȬȬȱǯȱ ȱ ȱ ȱ ȱȱ ȱȱȱȱ¢ěȱ ȱ ǯȱ¢ȱȱ ȱȱȱȱ ¢ȱȱȱȱȱĚȱǰȱ¢ȱȱ ȱȱȱȱȱ¢ȱȱ¢ȱǯȱĴȱȱȱȱ ȱ¢ȱȱȱȱǯȱȱȱ¢ȱǻ¢ȱ F@9G98 HZ K= OH A<D:A8 789:< I & C S&fl flOfl flLU% flLQV & fl flL Rfl4 flLOflQUOflfl K % SLL LQN fl Ofl flL fl KKfl Kfl OJ' O RO Qflfl PQ Rfl flLN PQOfl' RO L% U% SN&fl&SNLK OU OR flRfl QQ' >R Kfl fl Qflfl LO flL Q OQJ flOfl% U SU% KflOflL' BN SflL O QflLflfl Q flLfl LflO flL O KK Ofl S fl' BN SflLQOOfl Q flLfl OQL fl R fl ON fl !fl flJQflfl " flLfl R KQU' BN SflL K flL JQfl OQLQOOU SLR OJ' BN SflL Rflfl Ofl Qfl Q fl L OQfl4 flLOflQURfl fl flL flOflfl fl flU Rfl' BN SflL Rflfl flfl flOfl flLQQ flL ORfl ' flOfl Ofl K ROfl O' Ofl fl fl Q flL K OQfl K fl& Ofl KR K OQfl flRfl'
Environmental and Sustainability Management 211 ȱ ȱ ¢ȱ ȱ ȱ ȱ ¢ȱ ȱ ¢ȱ Ǽȱ ȱ ȱ ȱ ȱ ¢ȱȱȱĚȱ ȱȱȱ¢ȱȱȱȬǯ Social responsibility means that land-use planning and management considerations should not stop at the property boundaries. The development of a new property can create additional demands for land and services to accommodate ȱǰȱěȱǰȱȱȱȱȱȱ¢ȱȱ ǻ¢ȱ ȱ ȱȱ Ǽǯȱ ȱȱȱ ȱȱ - munity to meet environmental good practice should be given due consideration. ȱ¢ȱȱȱȱȱȱȱĚȱȱȱ¢ȱȱȱ¢ȱ- ȱ ȱ DZȱ ¢ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ proper sanitary conditions, reside in good quality housing, and in general live in an environment that is somewhat comparable to the environment they are in while at work. Describing the practices of operations exhibiting social responsibility helps to ęȱȱǯȱȱȱȱȱȱǻffi Ǽȱȱȱ ȱ ǻħǼȱ ȱȱ ȱ ȱ ȱ¡ȱȱ ¢ȱȱȱ ȱȱȱȱǻȱǼǯȱȱ ȱǰȱ ¢ȱ ȱȱ about their impact in the community and on the environment and took strides to ęȱȱȱ¢ȱ ȱǯȱȱ¢ȱ ȱȱȱ the Punta Cana Beach Resort in the Dominican Republic. The Resort helps provide schooling for the children of employees, medical care for employees and families, ȱȱȱȱȱȱȱǰȱ ȱȱŘǰśŖŖȱ ȱǻŗǰŖŖŖȱǼȱȱȱȱȱȱȱȱȱǯ ¡ȱ ŗŗ lists some typical land-use planning and management measures ȱȱȱȱŘŗǯȱ¢ȱȱȱȱȱȱȱȱ- tions is the responsibility of not only the hotel ownership and operations, but also ȱȱȱȱȱ ȱȱ ȱęȱȱ ȱ ¢ǯȱ ȱȱȱȱȱĞȱȱȱȱȱȱȱȱ desirable to all concerned, resulting in sustainable economics as well as environ- ȱȱ¢ȱęǯ Involving Staff, Customers, and Communities ȱ ȱ ȱ ȱ ȱ ȱ ¢ȱ ȱ ȱ ęȱ ȱ ȱ ȱ ȱ ěǰȱ ǰȱ ȱ ȱ ¢ȱ ȱ ȱ ǯȱ ȱ ěȱ ȱ ȱ ȱ ȱ ȱ ¢Ȭȱ ȱ - gram can be a positive contributor to the program itself and take the ideas and concepts developed outside the property into their homes and communities. Saun- ȱȱ ȱȱǰȱĴǰȱ ȱȱ¢ȱȱȱĴȱȱ ěȱȱȱȱȱǯȱȂȱ ȱȱǻȱ ȱ ȱȱȱǼȱȱȱ ȱ¢ȱȱȱ environmental initiatives and involvement. Some hospitality managers believe that certain environmental actions may result in a negative customer reaction. In this case, market testing of environmental initiatives is needed just as it is with any guest service. Providing some guest education to go along with the testing is also appropriate. The responses of customers to the Saunders initiative were generally positive and even resulted
212 Chapter 7 in new business, as customers with an interest in environmental issues selected Saunders. ȱ ¢ȱ ǰȱ ȱ ȱ ȱ ȱ ǰȱ ǰȱ ȱ ȱ ȱȱȃȱȱȱǯȄȱ ȱ ȱȱȱȱDZ ȃȱȱ¢ȱȱȱȬ¢ȱȱȱ ȱȱ¢ȱǰȱȱȱȬȱȱȱȱȱȱȱ ǯȱ ȱǰȱȱȂȱȱȱȱȱȱ part because of its environmental programs. Property managers believe ȱ¢ȱȱȱȱȱȱȱ ȱȱȂȱ ȱ ȱ ǯȱȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱȱȱȱȱȱ¢ȱȱȱȱěȱ ȂȱȱȱȱǯȄ ¡ȱŗŘ provides additional ideas on stimulating employee involvement. By being involved with and sensitive to the concerns of all sectors of the local ¢ǰȱ ¢ȱ ȱ Ĵȱ ȱ ȱ ȱ ȱ ȱ ¢ȱ ȱ stakeholders. Design for Sustainability ęȱ ȱ ¡ȱ ȱ ȱ ȱ ȱ ȱ ¢ȱ ȱ ȱ incorporate more sustainable elements. This potential resides at all levels of the F@9G98 HH K= OH ]_<= ;9K K=L=8 789:< I 'BfflE CB? ? flL Oflfl Rfl% QflQ%% OflK S ROfl' N Qfl R flR Ofl V QRJ Ofl' =fl flL OflK S O OQ' fl!KQJflflUQ" J SL flQfl S Kfl' OUflL flOOOfl fl fl S ROfl KQJLfl' BN SflL fl QflLflfl Q flLfl PQfl KflQ& flQ O K S ROfl KQJLfl4 flLUQ N OR K SflSfl flflfl Kfl flflUQOOUSflL flL ROfl QQOOfl K Kfl Qfl' RR flL QflU M ROfl ! OflU 1"' R U OflU Q flflSL RO S OQfl% OU ' BN SflL flLflfl Q J OflUROfl Oflfl'
Environmental and Sustainability Management 213 9 -BB 2? ffi =>>G Afl 9 K ORflUS fl */) K flQ JQL R SflL flQ SflL fl' L L/*fl % Q K J % KR QT TOfl&RQfl' L LJ JQfl SflL TO KKflO fl Q flLfl flL fl QflQJ OJ% Q flLflL% L S & US QUOflQO' flflflOfl R Qfl% R S flLQL flL KflQflQ% R flL O K Rfl% O&O fl LQ' > fl fl K USN flL % Rfl Ofl fl S Qfl SLL Q flKU flQ fl% flQ K& flQ N Kfl' OUflLfl fl UJ Qfl S SflL& Qfl flL TOO K flL LK TQflR' Tfl TO KQflJ ROfl OflLO% flL Lfl OMfl R flL J EJ NS S >fl A' BN SflL flL OO LK K flL =QNQ R% flfl R Sfl QflLflUOflJUOJ' LOfl flQfl TO Ofl fl% QflQ% LU% LflU% Q% flflK flL =QNQ OO' 9QR JKfl flL =QNQ QflU fl R LflL% Qfl% R' flLflNL flL % Q OU%QOO% flL QflU flfl fl KS flL JQOfl Ofl fl flL Rfl% Q OMflflLfl JKfl flL QflU% flLQL Qfl K OU% Qfl% fl SN SflL fl R& fl fl Oflfl flL Rfl' 8EB 0Bffi -@ Qfl fl flfl flL QflL >K% Ofl K flLDS :QO K R flL@OQJ K 9M' L fl%flQfl flL S SflK 9M% Lfl fl U*- QOfl fl' fl OR RQ flLflL% L&JQfl JQ !fl" K RUQOZ PQfl flflSflL SSO fl flL 8Q ' fl OR flL Rfl K flL % flL S%@L R& %flR fl JK&QKKflZQflfl QO KQ SNLO JQUKQflQ KflUflQ Qfl L OK flJ' L L J RQfl&OflL% SLL L flL ,))%))) flfl flL Q flL Ofl ' L LJ O Q flL fl K RJ flQfl flLfl OLJflflL K flL % flflL QJ K Qfl fl *- QO% OflflSK' flUR LKQ flS&UUU OR KRQK LJ R' Qfl WQflQ QflY *221 SLL fl T flL Vfl SflL flL flTfl K flRflflfl flL %% QflQ Ofl K Qfl flL QO RQSL N QO flL KJ K flL flN flQQ ' L Qfl flL Kfl K flN flL S% LflJL S OK OflSflL JQfl flL Ofl' ! o y y
214 Chapter 7 industry and applies not only during new construction but also during renovation planning and when making other capital decisions. To help realize this potential, research is needed to develop new products that have minimal environmental impact. Research results then need to be communicated within the industry and the educational community and corporations need to incorporate these concepts into their policies and mission statements. ȱȱ¢ȱ ȱȱ¢ȱ¢ȱȱȱȱ¢ȱ ǯȱȱȱȱȱǰȱȱ¢ȱ ȱȱȱŗŖŖȱȱ throughout Scandinavia, illustrate ways in which corporations are responding to the challenge of sustainability. Scandic has received a number of awards for its ȱȱ ȱȱȱ ȱȱ ȱ ȱ ȱ ȱ şŝȬȬ ¢ȱ ǰȱȱ ȱ ȃȱȱȱȱȱ¢ȱȱ- ȱȱȱȱȱȱȱȱȱǯȱȱȱ ȱĚǰȱ F@9G98 HO K= OH 8EEJ 6<8:L=AJ :LL698M B:;B=L=8 789:< I ( FBF? ffi E ffi E F B E N fl Qfl flL OK flK flL QflU flL & fl K flQ ROfl4 flL J Kflfl JU flQ KQ JUK flJflSflKK QflUJ' >R QflflK flOO' QROfl O OOflQflSflL Qfl' O OUU% Sfl% Sfl O Kflfl flL & QflU' QflJQfl flL N Rfl JKflK flL JQ' Q flLfl JK flL QflU% Q S% Q OO% flLUQ% flL % LR fl OUfl Ofl OOflQflSflL flL OU' OR flL Rfl JUflKKO &QO% fl' 8 BJ F B EC B E ? E ffi Effl ffi ?CE>B G ffi C EB flKK% K flO fl fl flOUOU% Rfl Q' >ROfl fl flflKK NUOfl' QflJQfl OURfl flflR% JflL fl O OQfl UflU fl Q flLfl flL Rfl LU OQfl fl Ofl fl L' BN SflL L fl flfl Rfl Qfl OU Rfl Qfl' Q O fl K QflUJfl J flL fl O& flOfl flL Rfl ROfl O' RR OU K Rfl flRfl Rfl' KK fl OOflQflfl flL JQ flL '
Environmental and Sustainability Management 215 ȱȱȱȱȱǰȱȱ ȱȱĴȱ¡ǰȱȱȱ- ȱ ȱ ȱ ȱ ȱ ȱ ǯȄȱ Ȃȱ ȱ ȱ ȱ ȱȱȱȃȱȱȱ ȱȱȱȱȱȱȱ environment will be an integral part of our daily lives and in which we take our ȱȱ¢ȱȱȱȱȱ¢ǯȄ ȱ ¢ȱ ȱ ȱ ȱ ¢ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ¢ǯȱ ȱ ȱ ȱ ȱ Ȃȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ Business have recently published Sustainable Hotel Siting, Design and Construction,ȱ ȱȱȃȱȱ ȱȱȱȱȱ- ¢ȱȱǯȄȱȱȱȱȱȱ ȱȱǰȱȱ ȱ ȱ ȱȱȃȱȱȱ¢ȱȱȱȱȱ- £ȱȱȱȱȱȱȱȱȱȱǯȄ ȱȱȱ ȱȱȱǻ Ǽȱȱȱȱȱ ǻȱȱ ¢ȱ ȱ ȱǼȱ ȱ ¢ǰȱ ȃȱ ¢ǰȱ consensus-based national standard for developing high-performance, sustainable ǯȄȱȱȱȱǰȱȱȱȱ¢ȱȱȱ- tunity for new and existing buildings to review their design and operation and ȱȱȱ¢ȱǯȱȱȱǰȱȱȱȱȱ ȱ ȱȱȱȱȱȱȱȱȱ ȱ ȱȱȱ sustainability principles in design and operation. ¡ȱŗřȱěȱȱȱȱȱȱȱȱ- ity. Understanding the issues in designing for sustainability requires adoption of ȱȱȱȱǰȱ ȱȱȱȱ ȱȱěȱ and ways to address them in design decisions. Partnerships for Sustainable Development Creating coalitions to encourage sustainable development is integral to the concept of sustainability. Input and cooperation of all stakeholders is needed to achieve the economic, environmental, and equity concerns inherent in sustainability. Though ȱ ȱȱ ȱ ęȱ ¢ȱ ǰȱ ȱȱ been provided through the leadership of various industry organizations. ȱ ȱ ȱ £ǰȱ ȱ ȱ ŗşşŚȱ ȱ ȱ - tal awareness, provides a location for coordinating information and conducting dialogue related to sustainability issues throughout the globe. Green Globe was ȱDZ Encourage companies and communities of all sizes to join Green Globe to show their commitment to sound environmental practice. Promote the truth that adopting good environmental practice makes good long-term business sense. Collect, explain, and distribute examples of industry best practice to businesses and governments. ȱ ȱ ¢ȱ ȱ ȱ ȱ ȱ ȱ ȯȱ ȱ Ȃȱ children. x x x x
216 Chapter 7 In addition to publications, studies, conferences, and other activities, Green ȱ Řŗȱȱ ęȱ ȱ ȱ ȱȱ ȱ¢ȱ ȱ manner, as well as annual awards for members exhibiting particularly outstand- ȱěȱȱȱȱŘŗǯȱ ȱ ȱ ȱ ȱ ¢ȱ ȱ ȱ ȱ ȱ ȱ DZȱȱȱȱȱȱȱǻǼȱȱȱȱȱ DZ ¡ȱ ȱȱȱȂȱȱȱȱȱ¢ȱȱ high quality education and training related to sustainable tourism. ȱ ȱ¢Ȃȱěȱȱȱȱ ȱ ȱȱȱȱ stakeholders. Serve as a vital link to all stakeholders with sustainable tourism interest in the Caribbean region. ȱȱȱ¢ȱ¢ȱȱȱȱȱǰȱȱȱȱ ¢ȱȱȱȱ¢ȱȱȱȱǯȱȱȱ- ȱȱȱȱȱěȱȱȱȱȱȱȱ- ȱȱ ȱȱȱȱȱȱǯȱȱȱȱȱ can be found at its website. x x x F@9G98 HN K= OH 6<89G9;98M 789:< I ) ? E>BI flJL OU&S OQflJ ROfl' L ROfl flRfl' T flL Oflfl Rfl%% QflQ% OflK S OQfl' NQflfl Rfl OJ RO RO Q& fl' BflL flL flOflfl%flflL KKflfl fl% UV% TL Kfl flL fl JflS flOfl flL Rfl' >R Kfl QOOfl flL JQfl Rfl Qfl LO JQ QO flflQfl%flK% O% fl & Ofl' =N PQfl OOflK flQ fl% Q JQ S flQ Kflfl SflLflQL fl' TL Kfl Qflfl Rfl OJflLQL Q flQL flL B Q Vfl flL B R Q& Rfl@L fl' BL RO Kfl flL Qfl% Q flL Rflfl& LL flL flL QflUK '
Environmental and Sustainability Management 217 ȱȱȱȱȱ¢ȱȱ¢ȱǰȱȃȱ government-backed program helping businesses and individuals protect the envi- ȱȱȱ¢ȱĜ¢ǯȄȱȱȱȱǯǯȱ¢ȱęȱ have participated in Energy Star in recent years and been recognized for their achievements in this voluntary partnership between business and government. ȱȱȱȱ DZ Year Firm ŗşşŞȱ ȱ¢ȱ ŘŖŖŖȱ ȱȱ ŘŖŖŗȱ ȱȱ ŘŖŖŘȱ ȱ ŘŖŖřȱȱ ȱ ŘŖŖŚȱ ȱȱǭȱȱ ŘŖŖśȱ Ĵȱ ȱ ȱȱ ¡ȱ ŗŚ provides suggestions for individual operations and others inter- ȱȱ ¢ȱǯȱȱȱȱȱ ęcantly enhance the environmental and equity aspects of their operations, and in F@9G98 HT K= OH A8=A<@9D< E:A 6<89G9;98M I ! C C E>B F BC flJQfl fl flL ROfl OR flL S J K flL QflU' OflflRfl Jfl Lfl MflUKQ flflRfl flfl flL flQflKQflJ ROfl' 9fl Q JflS Qfl% J KQflQflfl Mfl OJ' BN SflL Q&V flOfl TL fl N% Nfl ROfl% flL NS&LS% OU flL OOfl K flLU' BN SflL Rflfl flJL J KSN K flL LR& fl KQflJ ROfl' >fl flfl JflS flQfl Lfl Qfl L flL QflU Oflfl fl flJQfl fl Qfl K flL Q& flQ' >fl QOOfl fl NflK flL S K flfl RR flL R Q QflU' Ofl flL K QflZOUQQ& flZ flL O O flLfl flLUKKflRUOflOfl QflJ ROfl'
218 Chapter 7 ȱȱ¢ȱ¢ȱ ȱęȱ¢ȱȱȱȱȱȱȱ- ȱȱȱĴȱǯ Conclusion ȱȱȱȱǰȱǰȱȱ£ȱȱȱ ȱȱ working to improve the sustainability of travel and tourism. Those mentioned here ȱȱěǯȱȱȱȱȱȱȱȱȱȱȱȱ- tion of the many commendable approaches being taken. That so much is happen- ȱȱǯȱ ǰȱȱȱ¢ȱĝ ȱȱȱ ȱ ȱȱȱȱȱĚȱ¢ȱȱȱ¢ȱȱȱ ǯ Recognition of the economic, regulatory, market, and social responsibility ȱ ȱ Ȧ¢ȱ ȱ ȱ ȱ Ĝȱ ȱ ȱ ȱ¢ȱȱȱȱȱǯȱȱȱȱȱȱ- trate, there exist a wide variety of approaches to a wide variety of issues. Sustainability is more about a process than an ultimate destination. Some things are more sustainable than others, and some practices are more environmentally sound than ǯȱȱȱȱǯȱȱȱȱȱ£ȱȱȱȱȱ ǰȱȱ¢ȱȱȱȱȱȱȱęǰȱȱȱ in a manner that provides an acceptable economic return. Key Terms CERES—Coalition for Environmentally Responsible Economies, an environmentally conscious group that, among other things, is urging its corporate members to include environmental considerations when making lodging purchasing decisions. corrosive—¢ȱȱȱ¢ȱȱȱ¢ȱȱǯȱȱȱ contact with human tissues, these substances may cause burns and destroy tissue. ecotourism—ȱȱȱȱȱȱȱȱȱȱȱȱȃ- ¢Ȅȱȱȱǯ environmental impact statement (EIS)—ȱȱȱȱěȱȱȱ construction project will have on the surrounding community. explosive—¢ȱȱǰȱ¢ȱȱȱ ȱǰȱȱȱ such a temperature, pressure, and speed to cause damage to the surroundings. Ěȯ¢ȱ ȱ ȱ ȱ ȱ ¢ȱ ȱ ¢ȱ ȱ ȱ Ěȱ ȱ ȱęǯ hazardous substances—¢ȱȱȱȱȱȱȱȱȱ or property. infectious—¢ȱȱȱȱȱȱȱȱ¡ǰȱ capable of causing disease. ISO 14000 standards—ȱȱȱȱȱȱ¢ȱȱ - national Organization for Standardization that are recognized as the global stan- ȱ ȱȱǯȱęȱ ¢ȱ ȱ ȱ ȱ ȱ ȱ ŗŚŖŖŖȱ standards is acknowledged in the industry as benchmark achievement.
Environmental and Sustainability Management 219 land-use planning—ȱȱȱȱȱ ȱȱȱ- priate planning and management is applied to existing real property, structures, and natural resources to preserve the cultural and social fabric of surrounding community. pulping—ȱȱȱȱ ȱǻȱȱȱȱȱǼȱȱ solid form into a type of slurry by adding water and processing it through a pulping machine. The pulping machine acts much like a household garbage disposer, grinding the waste, pressing out the water, and expelling it into a holding bin. recycling—Separating certain items of refuse for eventual shredding or melting to their basic materials to be used to make new products. reuse—The practice of using items more than once, thereby substantially reducing trash and throwaways. Beverage containers, beer kegs, shipping trays, and pallets are typical reuse items. submetering—ȱȱȱȱȱȱ¢ȱȱ¢ȱȱȱ ȱȱȱȱȱȱ¢ȱȱȱęȱȱǻȱȱ ȱ¢ǼȱȱȱȱȱȱǻȱǼǯ sustainability—ȱȱ ȱ ȱȱȱȱ ȱ- ronmental issues are addressed within the context of economics, ecology, and ethics. social responsibility—The recognition by hospitality owners and managers of an obligation to protect the environment for their associates, guests, and communities. toxic—¢ȱ ȱ ȱȱȱ ȱǰȱ¢ȱ ȱȱ- ment, or death when inhaled, ingested, or absorbed. waste minimization—ȱ ȱ ȱ ȱ ȱ ȱ ȱ reduction, reuse, recycling, and waste transformation to minimize the amount of waste disposed and the cost of its disposal. Its ultimate goal is to ensure that disposal is done in an approved and environmentally suitable manner. waste transformation—The practice of converting waste products into another usable form, such as incinerating burnable items and capturing the heat energy thus created to generate power. wastewater—ȱ ¢ȱ ȱ ȱ ȱ ȱ ¢ȱ ȱ ǻ¡- tions being cooling tower water lost to evaporation and irrigation water for the Ǽǯ
221 8 Marketing Restaurants and Lounges From Hospitality Sales and Marketing, Fourth Edition by James R. Abbey, Ph.D., CHA From Managing Service in Food and Beverage Operations, Third Edition by Ronald F. Cichy, Ph.D., CHA and Philip A. Hickey, Jr. A CAREER IN FOOD AND BEVERAGE SERVICE puts you into one of the most exciting— ȱȯȱȱȱ¢ȱ¢ǯȱ¢Ȃȱȱȱěȱ a myriad of food service career choices—from fast food to specialty items to gourmet eateries. Yet studies conducted by Cornell and Michigan State universities ȱȱȱȱȱȱȱȱȱȱȱęȱ¢ǰȱȱ ŜŖȱȱȱ ȱęȱ¢ȱȱ. To be successful in this fast-paced, consumer-driven business, you must keep ȱȱȱȱȱ¢ǰȱ£ȱȱěȱ ȱȱ ȱȱǰȱȱěȱȱȱȱȱȱȱȬȱ- ȱȱȱǯȱȱȱȱȱȱȱěȱȱȱȱȱ industry today include the following: 1. Celebrity involvement.ȱ ȱ ę¢ȱ ȱ ȱ ȱ ȱ ȱ ȱ escaped the notice of celebrities, and many have invested in food and bever- ȱǯȱ ȱȱǰȱȱȱȱĴȱȱȱ ȱȱ- taurant’s actual operation, although they may participate in grand openings and other promotions. Other celebrities are actively involved in the development of products and the promotion of their outlets. Many hotels are building business by introducing celebrity chain brands or partnering with celebrity chef consultants. The MGM Grand in Las Vegas, ȱ¡ǰȱěȱȱȱȱȱȱȱǯȱȱâȱ Plaza Athénée in Paris hired famed chef Alain Ducasse as a consultant to add his expertise at their Plaza Athénée Restaurant. He revamped the restaurant and brought in a team of chefs that he had trained at his other restaurants. ęȱȱȱǰȱǰȱ¢ȱȱȱ·ȱȱȱǰȱ in which celebrity chefs consult with each hotel. Wyndham International formed a partnership with Shula’s Steak House, an upscale dining establish- ȱȱ Ğȱ ȱ ȱȱȱǯȱȂȱ¢ȱȱ helps draw more guests from outside the hotels—business has tripled since the chain purchased part ownership in Shula’s company—and Wyndam intends to roll out more than 30 of the outlets by 2004.
222 Chapter 8 2. Theme restaurants.ȱȱȱęȱȱȱ·ȱȱȱȱȱŗşŝŗǰȱȱ ȱěȱȱȱȱȱǯȱȱ¢ ȱȱȱ- rabilia. The Harley-Davidson Cafés feature motorcycles. The Jekyll & Hyde Club serves up food and beverages in a “haunted house.” The food is considered secondary at most theme restaurants; the main draw is the experience. Operators further romanticize the experience by selling clothing and other ȱȱȱȱȂȱǯȱȱȱȱȱȱȱęȱ than the food; they can contribute 30 to 50 percent of the outlet’s revenue. Most theme restaurants are located in major tourist centers like New York, Orlando, Las Vegas, and London, because theme restaurants depend on tourists for the majority of their business. Dick Clark’s American Bandstand ȱȱȱ¡Dzȱ¢ȱȱĴȱȱ ȱȱȱȱȱ Indianapolis, Indiana; Columbus, Ohio; and Kansas City, Missouri. 3. Dining entertainment options. Since diners today are looking for an experience ȱȱȱȱǰȱȱǰȱȱǰȱěȱ ȱȱ decorations, and interactive dining options have increased in popularity. The entertainment experiences that were previously available only at dinner theaters are now supplemented by interactive dining options. In Las Vegas, for example, dinner—and magic—is served up in Caesar’s Magical Empire, and at the Excalibur Hotel’s “King Arthur’s Tournament,” guests can eat Cornish hens with their hands while cheering on jousting knights. But restaurants Ȃȱ ȱ ȱ ěȱ ¡ȱ ȱ ȱ Ĵȱ Dzȱ ȱ ȱ Ȭ¢ȱěȱȱȱ ȱǰȱȱȱȱȱȱ¢ȱȱȱȱ ȱȃȄȱĴȱȱȱ¢ȱ ȱ¢ǯ 4. Increased competition. In addition to competing with other restaurants and catering services, dining establishments must compete with nontraditional ǯȱȱǰȱ ȱ¡ǰȱ ȱěȱȱ ȱ ȱ ǻȱ dogs, hamburgers, nachos, etc.), microwavable meals, and full-service delis. ¢ȱ¢ȱȱ ȱȱȱȱěȱȱ ȱ¢ȱȱ “heat-and-eat” entrées. Today’s busy lifestyle has led many consumers to look for “meal solutions,” and supermarket “home-meal replacements” are perceived to be healthier and more nutritious than fast food. Choices range from pre-cooked meat and vegetable dishes that can be taken home for reheating to exotic menu items such as sushi. As these easy-to-prepare items are gaining in popularity, supermarkets are moving them closer to the check-out lines, enabling customers to dash in to pick up quick meals for themselves and their families. In supermarkets where take-out food is prepared on-site, dining areas are sometimes added, adding yet another source of competition for traditional restaurants. Supermarkets that do not have the facilities or expertise to prepare takeout meals have begun teaming up with established food companies to enable them to cash in on this trend. For example, The Wolfgang Puck Food Company has established Wolfgang Puck Express units in upscale supermarkets, ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ¡ȱ ȱ ěȱ ȱ takeout at some of its locations.
Marketing Restaurants and Lounges 223 5. Takeout and delivery. Many consumers with hectic schedules rely on takeout and delivery food to save time. In response, takeout has expanded beyond the traditional pizza, burgers, and chicken. A growing number of restaurants are ȱȱ ǻȱȱǼȱȃȱȄȱȱȱěȱ- ¢ȱǯȱȂǰȱȱ¡ǰȱěȱȱȱȱ ȱȱȱ £ǰȱǰȱȱǰȱĴǰȱȱȱ ǰȱ- serts, beverages, and a kid’s menu. Customers call in their order, pull into designated To Go parking spaces at participating restaurants, and their food is brought out to their cars. Other restaurants, such as Romano’s Macaroni ǰȱȱěȱȱǰȱ ȱȱȱěȱ¢ȱȱ ȱ as customer pickup. These outlets may hire their own drivers or contract with delivery services. 6. Hotel and restaurant branding partnerships. Since food service can be a losing proposition for some hotels, especially those with limited services, a number of properties are joining forces with outside food vendors and operators to provide a wide range of food choices, from in-room pizza delivery to food courts to gourmet restaurants. Ned Barker, vice president of food and beverages for InterContinental, says there are three types of branding solutions for hotels: ȱȱȬȱȱȱȱǻȱǰȱ ȱ- day’s, Denny’s, Steak & Ale, Shula’s Steak House, and so on) and placing ȱȱȱǯȱȱȱĞȱȱȱȱȱȱ Ȭ ȱ brand with a well-known hotel brand. Using the products of branded, leading food service products and placing them on the menu. Taking several quick-service brands and bundling them into a food court ȱěȱȱȬȱǰȱȱȱȱ££ȱȱ ǰȱȱȱ main restaurant. x x x Hotel and Restaurant Branding Partnerships Sheraton x Starbucks Coffee x Ruth Chris Steakhouse x Pizza Hut Holiday Inn x 'HQQ\·V x Pizzeria Uno x Red Lobster Hilton x Benihana Japanese Restaurants Choice Hotels (six different hotel brands) x %HQQLJDQ·V x Steak and Ale x Bonanza x Ponderosa Marriott x Pizza Hut x 1DWKDQ·V x TCBY x 3RSH\H·V&KLFNHQ x Burger King
224 Chapter 8 ȱęȱȱȱȱȱ¢ȱȱȱȱȱȱȱȱ New York City with Le Cirque, an upscale restaurant that was looking for a new location. The restaurant works independently of the hotel, although the two share a common clientele. Other restaurants also look for properties that would be a good match for their product—Texas-based Metromedia Restau- ȱ ǰȱȱ¡ǰȱȱȱȬȱȱęȬȱȱȱȱȱȱ Ale brand, which has a high-check average. ȱ ȱ ȱ ěȱ ȱ ǰȱ ȱ ȱȱ ǰȱ ȱ ǰȱ ȱ ££ǰȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ěȱ ǻ££ǰȱȱ¡ǰȱ¢ȱȱȱȬȱȱȱ¢ȱȱȱ pizza outlet). Other hotels have teamed up with other food service operators, ȱȬȱȱȱȱǰȱȱ¢ȱȱȱěȱ or eliminate the need to operate hotel kitchens. At the Embassy Suites, Center City Philadelphia, for example, TGI Friday’s operates the lunch and dinner ȱȱ ȱȱȱȱ ȱ¢ȱȱěȱ ȱȱ part of the Embassy Suite package. Hotel chains such as Choice Hotels and Holiday Inns have partnered ȱȱȱȱȱȱȱȱěȱȱȱȱȱ- ing well-known brands. This concept, which is known as dual- or multiple- ǰȱ ěȱ ȱ Ȭ ȱ ȱ ȱ ȱ ȯȱ ¢ȱ accept branded dining options, the restaurant operators realize additional business, and the hotel cuts costs. Depending on the arrangement, hotels may realize additional revenue from these food service providers through space rental deals. ȱ ŝǯ Multiple-branding among restaurants. A number of restaurants are teaming ȱȱěȱȱȃ ȬȬȄȱǻȱǼȱȱȱȱȱǯȱȱ example, Taco Bell and Pizza Hut have teamed up within the same building ȱ¢ȱȱȱěȱȱȱǯȱȱȱȱȱȱȱȱ with its sister company, KFC. ȱȃ ȱȄȱȱȱȱęȱȱȱ- kets may be diverse. In the case of Taco Bell-KFC, for example, Taco Bell enjoyed a larger lunch business than KFC, which outpaced Taco Bell at dinner. This arrangement also saves on real estate costs—the partners can share rental and other costs associated with operating a restaurant. While multiple branding is generally practiced by quick-service restaurant chains, middle-market restaurants are also considering sharing space under one roof, whether in a free-standing facility or as part of a hotel food court. Darden Restaurants, owner of Olive Garden, Red Lobster, and Bahama Breeze, does not see cannibalization of its brands at shared space, citing that ȱȱěȱȱěȱ¢ȱȱȱ¡ȱȱȱ¡¢ȱ¢ȱ increase visits to outlets that diners had previously not tried. To succeed in the competitive food and beverage business, you need to know how to merchandise your product, create promotions that will help you stand ȱȱȱ ǰȱȱȱěȱȱȱȱȱȃȬ¢Ȅȱ experience. While these basics apply to all restaurants and lounges, they are especially important when promoting hotel food and beverage outlets.
Marketing Restaurants and Lounges 225 Positioning Restaurants and Lounges In this section, we will discuss the positioning of hotel restaurants, the positioning of free-standing restaurants, and positioning research. Positioning Hotel Restaurants There was a time in the not-too-distant past when U.S. hotel managers considered in-house restaurants a necessary evil. Hotel restaurants are very popular in other parts of the world. In Europe and Asia, hotel dining rooms are commonly the best dining facilities in the city and are heavily patronized by both hotel guests and local clientele. The Movenpick Hotel in Zurich, Switzerland, for example, which Marketing in Action Taco Bell and Pizza Hut Team Up to Offer a Diverse Dining Experience Taco Bell and Pizza Hut, two of the five brands under the Yum! Brands Inc. umbrella (the others are KFC, A&W Restaurants, and Long John Silvers), are just two of the fast-food outlets that share space in order to diversify their menus, serve different groups of diners, and save on real estate costs. Jonathan Blum, a senior vice presiGHQWDW<XPVD\VWKDW´PXOWLEUDQG ing is our key growth strategy. It offers more choice and convenience DQGLWRYHUFRPHVWKHYHWRYRWHµ According to research by Yum!, customers preferred visiting a multibranded location six-to-one. Therefore, Yum!, which has 32,000 units across its five brands, now operates about 1,800 domestic multi-branded outlets and projects an additional 375 annually in the future. By 2007, it will have more than 5,000 dual- or multibranded outlets. One of the principal challenges faced by the dual Taco Bell-Pizza Hut outlet was at the back of the house. Prep areas had to be reconfigured (they were essentially split into two dedicated areas) and each brand required different prep skills, resulting in the need for cross-training of both staff and management. The dual-branding of Taco Bell and Pizza Hut has proved popular, however, giving diners additional menu choices at one convenient location, and the chain has added other dual-branding concepts, combining Taco Bell (usually an impulse dining FKRLFH DQG.)& D´GHVWLQDWLRQµSXUFKDVH fi163&(4A ,.)13'A ffl3(8,55A <3$0'A 60'.,0*A 11/4A $4A $45A (('(34A 92.1,5A !$3,(5:A " # ff "$A ffi&51%(3A A BA $0'A ,/A ,..$3'A <1?3$0',0*A % fl fl A $3&+A J 2A
226 Chapter 8 ěȱȱȱǰȱĞȱȱȱȱ ¢ȱȱȱȱȱȱ accommodate hotel guests. In Asia, revenue from hotel restaurants can account for ȱȱŝśȱȱȱȱȂȱǰȱȱȱȱȱ¢ȱȱȱřśȱ percent in the United States. Today’s U.S. hotel operators are increasingly beginning to see in-house dining facilities as more than a convenience for guests, although the capture rate—the percentage of hotel guests who eat meals at the hotel—is still considered important and is measured regularly. Hotel restaurant operators in the United States have become more aware of the importance of non-hotel customers and the need ȱěȱȱȱȱĚȱȱȱȱȱȱǯȱ- fore, hotel restaurants are becoming more relaxed and less formal and many have ȱȃȄȱȱȱĴȱȱȱȱȱ¢ȱȱ ȱ as hotel guests. Today’s hotel restaurants range from the bright and cheery to the intimate and ǰȱȱěȱȱȱ¢ȱȱȱǯȱȱ£Ȭȱ hotel chain, for example, has updated its formal restaurants, redesigning them for today’s more casual atmosphere. Now they feature exhibition kitchens, windows ȱȱȱȱȱǰȱȱ·ȱĚȱȱ¢ȱȱȱȱȱ ȱȱǻȱȱȱȱȱȱȱȱȱȱȱ¢Ǽǯ Despite such improvements in hotel restaurants, some surveys continue to show that many hotel guests prefer to eat in an outside establishment. With dramatic changes taking place, why aren’t more guests discovering and frequenting hotel restaurants? The answer is positioning. Many guests don’t feel that a hotel restaurant or lounge is as good as a freestanding restaurant or night spot. This view presents a challenge to hoteliers. Their food and beverage outlets must be ȱǻȱȱȱ¢ȱǰȱǰȱȱǼȱȱȱ ȱ free-standing eateries and lounges despite this negative view. Exhibit 1 shows how one hotel used a clever promotion to convince its guests that its restaurant ěȱĴȱȱȱȱȱ ȱȱȱȱ¡ȱȱęȱȱȱȱ restaurant. ȱȱȱ¢ȱȱȱȱ¢ȱȱǻȱ- Ǽȱȱȱ ȱ ¢ȱȱĴǯȱȱȱ ȱȱ ȱ ¢ȱȱȱ ȱȱȱȱ¢ȱȱȱȱȱȱȱŘŖȱĚȱȱ dine in a restaurant. Some potential guests may not realize that hotel restaurants ȱȱȱȱȱǻȱȱǰȱȱ¡ǰȱȱȱǼǯȱ ȱ ȱĴȱǰȱȱȱȱȱȱȱȱDzȱȱȱȱǰȱ ȱȱȱĴȱȱȱȱȱȱȱȱȯȱȱ entertainment choices that just happen to be located in a hotel. Several hotels have remodeled their restaurants to resemble free-standing establishments. Curtis Nelson, president and CEO of Country Hospitality World- ǰȱ ȱ ȱ ȃ¢ȱ ȱ ȱ ¡ȱ ǰȱ ęȱ ȱ ȱ ȱ awnings, a facade, and signage.” Don Cronk, vice president of development for ȱ ¢Ȃǰȱ DZȱ ȃȱ ȱ ȱ ȱ ȱ ĜǯȄȱ ȱ ȱ ȱ restaurant a separate identity is a good way to enlarge your guest base; hotel restaurants with outside entrances, a canopy, and valet parking have seen their guest counts go up.
Marketing Restaurants and Lounges 227 ȱȱȱȱȱȱȱȱĜȱȱȱ a restaurant’s physical positioning. Years ago, property restaurants were usually ȱȱ ȱ ȱȱ ȱȬȱǰȱ ȱ ȱĞȱ¢ȱȱ ȱȱȱȱȱȱę¢ǯȱȱȱȱȱȱ ȱȱ ǰȱȱȱȱȱȱĴȱȱȬȱȱȱȱ patrons. For some properties, repositioning may mean dividing a large restaurant into smaller, more intimate rooms, or theme rooms. For other properties, repositioning may require other creative approaches—restaurant lighting can be varied ȱȃȄȱǻȱȱȱǰȱ¢ǰȱǯǼȱȱȱȱȱȱěȱ ȱȱěȱǯ Positioning Free-standing Restaurants Positioning is equally important for free-standing restaurants, especially those located in an area where there are multiple dining opportunities. If that is the case, the restaurant may position its products against those of a competitor. Such was the case during the “Burger Wars” of a few decades ago, when Wendy’s ran its flffiflflffl ff fiflfl flfl fl !fl ffl fi " flflffi #ffiffi $fl" $ fffl ffl %fl ffl fl flffifl fl& ffl ' !"&( ffi " flff fl fl ffi flff fl" ffi flff ( !fl fi fl fl ) ' !"& flffff ! ffflfl ) fi fifl" * fl ff fl" ( + "fl fl) ff fl( fi fl fl ) fl , ! fl ff fl ffflfl - fi . ") fl fi ( F1635(4:A 1)A +(A fi6//,5A 15(.A $35)13'A 100(&5,&65G flffi ffl
228 Chapter 8 “Where’s the Beef?” campaign against McDonald’s and Burger King, and Burger ȱȱȱĚȬȱȱȱȂǯ ȱ ěȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ǯȱȱ - ǰȱȱ¡ǰȱ¢ȱěȱȱȱȱȱȱȱǰȱ ȃ ȱȄȱǰȱȱĞȱȱȱȱȱȱ ȱȱȱȂȱ ¢ǰȱȱȱ ¢ȱȱĴȱȱȱȱǯ A restaurant can also use its location or ambiance to distinguish itself from competitors. The Hard Rock Café restaurant chain, for example, has created an environment that is hard to duplicate with its displays of memorabilia, while ȱȱȱěȱȱȱȱ¡ȱȱȱȱĴȱȱȃȄȱ environment. Whatever type of positioning your restaurant uses, it is important that customers have a consistent image of your establishment. Many restaurateurs make ȱȱȱ¡ȱ ȱěȱȱȱǰȱ ȱȱȱ customer confusion—and loss of business. If you are unsure of how to position ¢ȱǰȱȱȱȱĴȱ ȱȱȱȱȱ ȱȱ ȱ¢ȱ ȱ¢ȱĚȱ ȱ¢ȱȱȱěǯ ȱȱȱȱęȱȱǯȱȂȱ- ȱȱȱȱȱǰȱȃȬĴȄȱȱ ȱȃ¢ȱȂȄȱ positioning, which promoted each outlet as owned by someone in the local community who cared about his or her outlet. This positioning strategy was developed ĞȱȂȱȱȱ ȱȱ ȱ ȱȱ ȱȱǰȱ ¢ȱ ȱȱ ȱȱǰȱȱ ȱ ȱȱȱȱǻȱ ȱ ȱ Ĵȱ ȱǼǯȱ ȱǰȱ ȱ ȱȱ ȱ ȱȱ ȱ same tool you should use to determine how to position your restaurant—thorough research. Positioning Research Positioning research should become an ongoing part of the operation of any res- ǯȱ ȱ ȱ ȱ ȱ ęȱ ȱ DZȱ Ȭȱ ǰȱ ȬęȱǰȱȱǻȱǼȱǰȱȱ¢ǰȱ and trend research. Trading-Area Research. Research into who guests are and where they come from ȱȱȱ ȱǯȱȱȱ ȱĞȱȱȱ ȱ trading areaȱ ǻȱ ȱȱ ȱcatchment area) from which business is derived. ȱȱȱȱȱȱȱ¢¢ȱȱȬȱȱęȬȱȱǻ¢ȱ a travel time of ten minutes or less). Therefore, it is generally much smaller than ȱȱȱȱ¢ǰȱ ȱĴȱȱȱȬĚȱǯ Your trading areas may vary greatly, depending on a number of factors. You ¢ȱȱȱ¢ȱěȱȱȱȱȱȱ ȱȱ¢ȱȱȱ weekdays, for example. Your guest mix may even vary by meal period. Your lunch crowd, for instance, might consist largely of businesspeople within a ten- to 15- ȱȱȱȱęȬȱ ǰȱ ȱȱȱ¢ȱȱȱ ȱ ȱȬȱȱŗśȬȱǻŗŜȬȱȱŘŚȬǼȱǯȱ ȱ¡¢ȱ ȱȱȱ ȱ ȱ ȱ ȱ ¢ȱ ȱ Ĵȱ ȱ ȱ ȱ ȱ ȱ ȱ
Marketing Restaurants and Lounges 229 insights that will help you in directing mailings, choosing media for advertising, and creating menus that will appeal to each trading-area group. ¢ȱ ǰȱȱ ǰȱ Ĵȱ ȱ ȱ ȱ ȃȱ- ǰȄȱ ȱ ¢ȱ ŝŖȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ǰȱ work, shop, or visit within a ten-minute drive. Develop a database of your potential local clientele, separating them by categories such as employers, churches, ǰȱȱǰȱȱȱǰȱȱȱěȱȱȱȱȱǯȱ Your mailing to a church, for example, may include a fund-raising proposal, while ¢ȱȱȱȱ£ȱȱȱ¢ȱ¡ȱȱěȱ¢Ȭȱȱ available only to them. Even large, established chains do not neglect neighborhood marketing. McDonald’s is known for catering to the markets it serves, such as when 300 restaurants added bratwurst sandwiches to their menus to cater to the unique tastes of the Midwesterners they served, or when McDonald’s outlets in India replaced its hamburgers with veggie burgers and other choices, since the majority of customers there considered cows sacred and would not eat beef. Ȭęȱǯ Once the trading area has been determined, research into ȱȂȱǰȱǰȱ¢ȱǻ ȱȱǼǰȱȱ¢ȱȱȱ- ȱǯȱ ȱ¢ȱęȱȱ¢ȱȱȱ¢ȱȱȱȱ lunch and hotel guests in the evening, for example, it makes it easier to design menus that appeal to each group. ȱ ȱȱęȱȱȱȱĜȱ ȱȱȱȱ than at the front desk. If a hotel restaurant patron is a hotel guest and charges his or her meal to the room, the patron’s room number can be noted and information can be obtained at the front desk from the patron’s registration form. In cases where a ȱȱȱȱȱȱ Ȭȱȱǻ ȱȱȱǼǰȱȱ ȱȱȱȱ ¢ȱȱ ȱȱęȱȱȱȱDZ ȱȱȱǯ The host or food server can get information by conversing with guests, or by observing details such as an out-of-town Ȃȱȱȱȱęȱ ȱȱȱǰȱȱȱȱȱ- ȱȱȱęȱȱȱȱȱǰȱȱȱǯȱȱȱ ȱȱȱęȱȱȱǰȱȱȱȱěȱȱȱȱȱȱ£ȱ code. ȱǯ If the restaurant caters to a business trade, it can run a free-meal promotion and request the business cards of patrons as entry forms. One ȱȱȱȱȱȱȱ ȱȱęȱǰȱȱȱ ȱȱȱ- plimentary meal. This type of promotion yields names, occupations, addresses, ȱȱǰȱȱȱ¡¢ȱȬěǯ ȱ¢ǯ Questionnaires or evaluation forms are excellent sources of information that can assist in menu planning and the planning of promotions ȱȱȱǯȱȱĴȂȱȱ¢ȱȱȱȱ their opinions. All diners are given satisfaction surveys asking them to rate food, ǰȱǰȱǰȱĜ¢ǰȱǰȱĴȱ ȱǰȱȱ¡ǯȱ Ĵȱ¢ȱȱȃȱȱ¢ȱȱȱȱȱǰȱȱ- ǰȱ ȱ ȱȱ ȱǰȱ ȱ ȱ ȱ ȱ ǰȱ ȱ Ĵȱ ȱ ȱ ěǰȱ to pricing the wine list.” Applebee’s uses customer-focused menu development,
230 Chapter 8 ȱȱ ȱ ȱ ǻŚŖȱ ȱ śŖȱ ¢Ǽȱ ȱ ȱ ȱ ȱȱ - sumer focus groups that provide feedback on the products being tested. Other ǰȱ ȱ ȱ ȱ ǰȱ ěȱ ȱ ȱ ȃȄȱ ȱ ȱ ȱ ȱ customer feedback. Questionnaires vary in content. A restaurant targeting business lunch guests, for example, may use a questionnaire that asks questions relating to favorite food selections, speed of service, and other factors that would make the restaurant more Ĵȱ ȱ ȱ ȱ ¢ǯȱȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ǻȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱǼǰȱ ¢ȱȱȱǻ ȱȱȱěȱȱȱǼǰȱȱȱ- ȱ ǻȱȱȱȱ ȱȱȱȱ¢ȱȱ ȱ restaurant). ȱ ȱ ¢ȱ ȱ ȱ ȱ ȱ ěȱ ȱ ȱ ȱ markets and can give clues as to markets being missed. They can also aid management in making pricing decisions. ȱȱȱȱęȱȱȱȱȱ¢ȱǰȱȱȱ ȱ ȱĴȱȱȱȱȱȱȱȱ¢ȱ ȱȱȱĞȱȱ- ȱȱȱȱȱȱęȱȱȱȱ ȱȱ¢ǯȱȱ ȱȱȱȱȱ¢ȱȱȱȱęȱȱȱȱǰȱ or an envelope for the completed survey.Aguest who has received less-than-perfect ȱ ȱ ȱ¢ȱ ȱȱ ȱ ȱȱ ȱĚĴȱ ¢ȱ ȱ his or her food server; an envelope ensures anonymity and may encourage more guests to respond. Still other food and beverage outlets provide stamped, self- ȱ¢ȱȱȱȱȱ¢ȱȱęȱȱȱȱȱ the diner’s convenience. Situation (Current Business) Research.ȱ ȱ ǻȱȱǼȱ ȱ can be used to identify market segments. If situation research shows that most of the property’s lunch guests are businesswomen, for example, the property can appeal to that market segment with an eye-catching salad bar and specially priced small lunch portions for light eaters. TGI Friday’s, which always had an all-day ǰȱ ȱȱěȱȱȱȱȱȱȱȱ ȱĴȱȱ the daytime market. The singles market is a rapidly growing segment for many restaurants. Restaurants with a large singles clientele have developed a number of innovative ideas ȱęȱȱȱȱǯȱȱȱȱȱȃȱǯȄȱȱ tables are designed to provide single diners with company and conversation if they don’t want to eat by themselves. Exhibit 2 shows creative ways that Friend- ȱȱ ȱ ȱȱ ȱ Ĵȱȱǯȱȱ ȱȱȱȱ ȱ used on cruise ships, it is relatively new to the hospitality industry and has become a popular addition in many restaurants. The Wyndham Hotel in Chicago has done a variation on the Friendship Table with its “Networking Table,” which gives women traveling alone the opportunity ȱȱ ȱȱ ȱǯȱȱȱȱȱ ȱěȱ¢ȱȱ dining option for single diners, The Chef’s Table. Guests are shown around the ȱȱȱȱȱȱȱȱǰȱȱ ȱěȱȱȂȱǯȱȱ
Marketing Restaurants and Lounges 231 concept, which was originally started to get publicity for the new chef, has proven so popular that there is now a three-month waiting list for the table for four. The senior citizens market may be important in a restaurant’s positioning, especially if the restaurant is located in a hotel or another area that is popular with ǯȱ¢ȱȱěȱȱǰȱǰȱȱȱȱȱ citizens. Situation research also entails a look at statistics. Nearly all hotels make use of room occupancy statistics, but fewer have access to restaurant occupancy data such as total and table turnover ratios per meal. Tracking covers, for example, helps to identify slow, medium, and busy periods, and also helps to determine Ĵȱȱȱȱȱǯȱȱȱǰȱȱȱȱȱ down into the six weekly meal periods or dining segments: x ¢ȱȱǻ¢Ȭ¢Ǽ 6 !" " )" fi fl fl" ! " fl " fi "ffl fl 7ffl ! )" fifl ff fl fl "fl( 6 !" fl) flfl fl . fl "7 fl fl fifl, fi ff""flfi ffl ) fl fifl "" !fl .fl fl flff fi ffi fl ! flffi ffifl ff ffi" fi 8fl " 9 fl ( fi" fl !" ! :fl& / #) ffl ;fl 1" ff" ffl ;fi <ffl fl) fl) fl ( ! " ff # "
232 Chapter 8 ¢ȱȱǻ¢Ȭ¢Ǽ ¢ȱȱǻ¢Ȭ¢Ǽ ȱȱǻ¢Ȭ¢Ǽ ȱȱǻ¢Ȭ¢Ǽ ȱȱǻ¢Ȭ¢Ǽ Using these meal periods makes it easier to track such statistics as customer ȱ ȱ ǻǼDzȱ ·ȱ ȱ ǻǼDzȱ ȱ ȱ ȱ ǰȱ desserts, and side items sold during each period. These statistics help managers to analyze strengths and weaknesses and to take steps to increase sales, such as ȱȱȱȱȱȱȱěȱȱȱȱȱȱȱȱ that is typically slow for dessert sales. In addition, a breakdown by meal period ȱȱȱ ȱěȱȱȱ ȱ ȱȱ ȱ ȱęȱȱȱǯ Determining what is important to each meal period’s customers can help you ȱȬě¢ȱȱȱȱȱ¢ȱȱǯȱȱ¡ǰȱ it would be helpful to know that the weekday breakfast and lunch crowds are interested in speed and value, while customers during the same periods on the weekend are looking for relaxation and ambiance. x x x x x Creating an Enjoyable Dining Experience for Single Diners Restaurateurs who wish to attract the large number of solo diners among business travelers, leisure travelers, and local customers must work to create a climate in which solo diners are welcomed and shared seating is comfortable and acceptable. Here are a few ideas: x 'HYHORSDWUXO\ZHOFRPLQJJUHHWLQJIRUVRORGLQHUV$YRLG´ERG\FRXQWµJUHHW ings, such DV´2QO\RQH"µffLQVWHDGVD\ZDUPO\´7KDQN\RXIRUMRLQLQJXVIRUGLQ QHUWKLVHYHQLQJµ x 2IIHUDYDULHW\RIVHDWLQJRSWLRQV³IURPDVLQJOHWDEOHWRFOXVWHUVHDWLQJWRYDUL ations on community tables. A diner who is shy about eating with a large group PD\EHRSHQWRVKDULQJDWDEOHZLWKMXVWRQHRWKHUVRORGLQHU x 3ODFH H[SODQDWRU\ PHVVDJHV RQ WDEOHV 7KLV GHPRQVWUDWHV \RXU UHVWDXUDQW·V VXSSRUWRI´VRFLDOGLQLQJµRSWLRQVDQGFDVWVDPDQWOHRIDFFHSWDELOLW\RQWKHFRQ FHSW7KHVHPHVVDJHVDQQRXQFHWKHGLQLQJRSWLRQWRDOOJXHVWVffVRPHFRXSOHV may welcome the opportunity to become acquainted with others. x Make solo dining a special experience whether the diner chooses to dine alone RUMRLQDQRWKHUGLQHURUJURXS3URYLGHVSHFLDODWWHQWLRQWRVRORGLQHUVDQGRIIHU an amenity, such as a complimentary appetizer, beverage, or dessert, to show your appreciation for their patronage. *LYH´VRFLDOGLQLQJµRSWLRQVWLPHWRZRUN$VNIRUIHHGEDFNDQGZRUNRXWDQ\ SUREOHPVJXHVWVPLJKWKDYHZLWKWKHRSWLRQV\RXRIIHU3XEOLFL]H\RXUVLQJOHGLQLQJ options, detailing their benefits, such as the opportunity to network over a meal or VLPSO\HQMR\WKHFRPSDQ\RIIHOORZZRPHQEXVLQHVVWUDYHOHUVIRUH[DPSOH
Marketing Restaurants and Lounges 233 ȱ¢ǯWhile in-house research is extremely necessary, it is equally important to be aware of what the competition is doing. Study the competition’s: Menu items and prices Facilities and services ¡ȱǻȱȱǼȱȱ Extra amenities—parking facilities, special menus or discount clubs for seniors, and so on ȱě Analysis of the competition for a hotel restaurant should be used as it is by the rooms division—to determine property strengths and weaknesses and develop ¢ȱȱěȱȱ¢Ȃȱȱȱȱȱȱǯȱȱ ȱȱȱęȱȱȱȱǰȱȱȱȱȱěȱȱ ¢ȱ¡ȱ ȱȱȱȱȱěǯȱȱěȱȱȱ ȱȱȱȱǻǰȱǰȱȱDzȱ¢ȱ ȱ- ods; and peak times) to get a complete picture of service and atmosphere. Trend Research. In addition to the trends mentioned in the opening of the chapter, you should keep abreast of changing demographics and dining trends. For ¡ǰȱȱȱȱȱȱȱȱĴȱȱȱȱȱȱȱ growth in the number of single diners; these trends can impact the type of foods desired, the ambiance of a restaurant, and even the size of portions. In addition, ȱ ȱ ȱ ¢ȱ ȱ ȱ ǰȱ ȱ ¢ȱ Ğȱ Ěȱȱȱ ȱȱ¢ȱ ȱȱǯȱǰȱȱ¢ȱȱȱ in an area where there is a large population of families, you may want to consider developing a children’s menu or take steps to make your restaurant more “family-friendly.” You should also examine food trends and eating habits. Over the past several years, the trend has been away from heavy meals to lighter, healthier fare such ȱǰȱ ȱ ȱ ȱǰȱ ȱȱȱ ȱęǯȱȱȱ - ȱȱȱĞȱȱ¢ȱȱȱȱȱěȱę¢ǰȱ your restaurant can avoid this problem by supplementing traditional menu selections with trendy specialties. Menus can be changed each night to alleviate “menu ȄDzȱȱȃȄȱǻȱȱǰȱȱȃȬ¢Ȭ ȬȄȱȱ ěǰȱȱȱǰȱǯǼȱȱȱǰȱȱȱȱȱȱ created for dieters and the health-conscious. Merchandising Food and Beverages Food and beverages can be merchandised by special packaging and pricing, promotional materials such as posters and table tent cards, and suggestive selling by food servers. But perhaps the most important merchandising tool is the restau- Ȃȱǯȱȱȱǰȱȱȱ¢ȱȱȱěȱȱȱȱ ȱ ȱǰȱȱȱ ȱȱ ȱȱ ȱęȱȱ ¢ȱ ȱ ȱ beverage operation. x x x x x
234 Chapter 8 Creating Menus That Sell ȱȱȱĚȱȱȂȱȱȱǰȱȱǰȱ and serve as a suggestive-selling tool. While this may seem like a monumental challenge, it is actually quite easy when you follow a menu development cycle that includes image, price, message, and design. ǯȱThe menu development cycle begins with your restaurant’s positioning ȱȱǻȱ¡ȱř). Your restaurant’s image refers to how your restaurant is perceived by your patrons. What image does your restaurant create? What type of ȱȱȱȱ¢ȱěǵȱȱȱǰȱȱ¢ȱ¡ȱȱ- tic atmosphere or a casual dining experience? While there are a myriad of menu options, your menu must live up to your guests’ expectations. Since a restaurant’s image is determined in part by the type of clientele the res- ȱĴȱǻȱȱȱĴǼǰȱȱȱȱȱȱ ȱȱ ȱȱȱȱȱȱȱ¢ȱǻȱȱ¡ȱȱǼȱȱ ȱ = fl" ! fl ff" fl ffi flff ( ffi ffflffi 4ff 4 fl ffi flff >" ?( +ffifl " ! " ffl " fi fffl ? ffi( F1635(4: 1)A ,.510A 15(.4A 13213$5,10G %ffi#
Marketing Restaurants and Lounges 235 market segments your restaurant serves. Does the restaurant cater primarily to the health-conscious? Do business travelers, who usually prefer rapid service during their lunch hours, make up the largest number of patrons? Or does the restaurant serve a great number of families and therefore need a more varied menu? Price. Price information is a critical menu consideration. Your pricing strategy should be determined long before your menu is designed, and should correspond with your positioning. What prices do your guests expect to pay for menu items? ȱȱȱȱ¢ȱǻ¥ȱȱǼȱȱȱȱǵȱȱȱȱ at all? According to a study detailed in the Cornell Hotel and Restaurant Administration Quarterlyǰȱ ȱ ȱ ȱěȱȱ ȱ ȱ ȱȱȱ during lunch and dinner without risking customers’ perceptions of fairness. In addition, the study found that variable pricing on weekends versus weekdays is also likely to be acceptable with customers. These factors, then, should also be taken into consideration when planning your pricing strategy. ȱǯȱFood service operators generally base menu pricing on four critical factors: cost, the type of operation, guest perception and demand, and competition. Unlike free-standing restaurants, which operate with established ǰȱȱȱĞȱȱȱǻǰȱǰȱǯǼȱ ȱ ȱȱȱȱȱȱȱǰȱȱȱĜȱȱȱ operating costs or to properly price menu items. For this reason, hotel restaurants price menu selections primarily on a cost-of-merchandise basis. Since the cost of ȱȱ¢ȱ ę¢ǰȱȱȱȱ ȱȱ ȱȱȱ for all items. Common cost-of-merchandise targets are 30 to 40 percent on food, ŗŝȱȱŘŘȱȱȱȱǰȱȱřřȱȱśŖȱȱȱ ǯȱǰȱȱ- mine the selling price of a menu item, you must divide the cost of the item by the ȱȱǯȱȱȱȱȱȱǻ¢ȱȱȱǰȱȱ example) should also be considered. It is important to remember that you “can’t bank percentages” and that a lower ȬȬȱ ȱ ȱ ȱ ¢ȱ ȱ ȱ ęǯȱ Exhibit 4, which lists Tuesday and Wednesday covers, foods costs, and revenue, shows how ȱȱęȱȱȱȱěȱ¢ȱȱ¢ȱȱ¢ǯȱȱȱ ¢ȱ ȱ ȱ ȱ ȱ ȱ ǰȱ ȱ ȱ ȱ ȱ ęȱ ȱ ȱ two days. ȱȱȱȱĜȱȱȱȱȱȱȱ- ȱ ȱ ǰȱ ȱ Ěȱ ȱ ȱ ȱ ȱ ȱȱȱ ȱȱȱȱěȱȱǯȱȱȱȱ most establishments must be monitored constantly and adjusted for seasonal and competitive changes. In addition to cost, the following factors should be considered in order to properly price menu items for hotel restaurants: 1. Type of operation.ȱ ȱȱȱȱěȱǰȱȱȱȱǰȱ ȱȱȱȱǵȱȱȱȱěȱȱȱȱȱȱ- ȱ¢ȱǵȱěȱȱȱȱ¢ȱȱȱ ǯȱ ȱȱ restaurant caters primarily to guests who stay at the property for an extended
236 Chapter 8 period of time, however, a varied menu that could keep extended-stay guests ȱȱȬ¢ȱȱȱ¢ȱȱȱȬěǯ 2. Guest perception and demand. How do guests perceive the restaurant? Do they expect to pay high prices for superior service and menu selections, or do they see the restaurant as a casual dining room and expect to pay low prices? 3. Competition. How many restaurants are nearby, and how do their prices, food, service, and atmospheres compare with your own? When a patron has a special occasion for dining out, does he or she have only a few acceptable restaurants to choose from or are there many high-quality restaurants in the vicinity? Message. Think of your menu as your restaurant’s brochure—but remember that customers spend an average of three minutes with a menu, so make the most of that time. Make sure your menu is organized, readable, and conveys the tone of ¢ȱǯȱ Ȃȱȯȱ Ĵȱȱȱȯȱȱ- tant part of the menu’s appeal. Will your menu simply list the foods and beverages ěǰȱȱ ȱȱȱȱȱ£ȱȱȱǰȱȱȱǰȱȱȱ ingredients, and methods of service? In addition to describing menu selections, will the menu provide information such as restaurant hours, payment options, special dietary information, and cross-selling messages for other property facilities? ȱȱ ȱȱęȱ¢ȱȱȱȱȱȱ DzȱȱȃȄȱȱǻȱȱȱȱ£¢ȱȱȱȱȱ ȱȱȬǰȱȱ¡Ǽȱ¢ȱȱġȱǯ 4 ffi& fl ffflfl fl "fl fi"" fl flff !"( ( ffflfl fl ff fl fl " ffifl flff !" ( ff fl ? ( fffl fifl "" flfi ) flff ffff ! ""( ?" "flfi ffflfl fl ffl "fl " flff !"( ' ( ) Tuesday Menu Item Covers Food Cost Revenue Covers Food Cost Revenue Chicken Prime Rib Crab Legs TOTAL $1,650 $1,200 $1,350 $4,200 Food Cost % Total Gross Profit Average Profit/Guest Wednesday 550 200 150 900 $4,950 $2,800 $2,700 $10,450 150 400 350 900 $450 $2,400 $3,150 $6,000 $1,350 $5,600 $6,300 $13,250 $4,200 $10,450 40.2% $10,450 $4,200 $6,250 $6,250 900 $6.94 $6,000 $13,250 45.3% $13,250 $6,000 $7,250 $7,250 900 $8.05
Marketing Restaurants and Lounges 237 ȱ ¢ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ Ĵȱ ǯȱ ȱ ȱ ȱ ȱ ȱ ȱ ¡¢ȱ ȱ ¢ȱ ȱ Ĵȱ ǻȃȱ ȱ ¢ȱ choice of soup or salad, vegetable of the day, and dinner roll or garlic toast”). The menu should feature the actual name of the item. “Steak and eggs,” for example, is too vague; is it a sirloin steak, a T-bone steak, or a minute steak? Menu descriptions should also include: ȱ ȱ ȱ ǻȃȬȱ ȱ ȱ ǰȄȱ ȃȱ ȱ ¢ȱ ęȄǼ ȱȱȱǻȱȱȱȱǰȱȱȱȱȱ the freshness and quality of additional ingredients) ȱȱ¢ȱȱȱǻȃ ȱĴȱǰȄȱȃ ȱȱǰȄȱ etc.) ȱȱȱȱǻȃ ȱȱǰȄȱȃȬȱ at your table”) Ȭȱȱ ǻȱȱ ǰȱǰȱǰȱȱ calories is especially important to today’s health-conscious consumers) ȱ ȱȱ ¢ȱ ȱ ȱȱ ¢ȱ Ĵȱ ¢ȱ ȱȱ - cialist or advertising agency, it is important that your restaurant’s image not be ȱ ¢ȱ ȱȱ ȱ ¡ȱǰȱȱ ȱ ǻȃflȱ ȱ ȱ welcomed here” is far more diplomatic than “Positively no personal checks”), or poorly designed promotions. One of the most common errors—and a striking example of poor taste—is the lumping together of a senior citizens’ menu and a menu for children: “For those under 12 and over 65.” Design. ȱȂȱȱȱ¢ȱȱȱȱǯȱȱĴȱȱ will enhance the copy and draw guests to featured items and specials. As shown in Exhibit 5, there are many layouts for menus. There are many styles of menus, from a simple blackboard on the wall to parchment paper tied with a gold cord. The ȱ¢ȱȱǻǰȱǰȱȱǼȱ ȱ¢ȱȱȱ role in determining the menu’s design. A restaurant with contemporary positioning and an emphasis on fresh foods, for example, may select a menu enhanced by ȱ¢ǯȱȱ¢ȱȱȱȱěȱȱȱȱȱȱ¢ȱȱ tastes may prefer using a menu divided into categories: a breakfast section, a lightlunch section, a “hearty-fare” section, a dessert section, a “for-the-youngsters” section, and so on. ȱ ǰȱ ȱ Ĵȱ ȱ ȱ ǰȱ ȱ ȱ ȱ ȱ characteristics: 1. ěȱȱȱǯȱȱȱȱȱȱȱĴǯȱȱǰȱ ȱ ȱ ǰȱ ȱȱ ¢ȱ ȱ ěȱ ¢ȱ ȱȱ ȱ menu’s readability. 2. ěȱ¢ǯ As shown in ¡ȱŜǰȱ¢ȱȂȱ¢ȱ ȱȱĴȱȱ particular areas of the menu, depending on its style. The most popular items, or those that the restaurant wants to promote, should be placed at the head ȱȱǰȱ¡ǰȱȱ¢ǰȱȱ ȱȱǯȱ ȱȱęȱ x x x x x
238 Chapter 8 * ) Symmetrical Square BASIC LAYOUTS ´;PDV7UHHµ $V\PPHWULFDO Separate Page /HIW+DQG3DQHO 8SSHU/HIW3DQHO 6LQJOH)ROG 6SHFLDO3DQHO 6HSDUDWH0HQX 6HSDUDWH3DJHV /HIW+DQG3DQHOV *DWH)ROG 7ZR6HSDUDWH/LVWLQJV +DOI)ROG 'LQQHU3ULFH 2. À la Carte Price &RPSOHWH'LQQHUV /LVWHGLQ6HSDUDWH3DQHOV 7ULSOH)ROG 1 2 = ! ) flff " " fl( ? ) " fl " fl flffl fl" ff" & flfl fl) fl flflffi fffl ffi ffi fl ! " !"(
Marketing Restaurants and Lounges 239 ȱȱ¢ȱȱȱǻ ȱȱ¢¢ȱȱȱȱȱ ȱęȱȱȱȱȱȱȱǼǰȱȱȱȱ¢ȱ ȱȱȱȱȱȱ ȱęȱǯȱ ȱȱ Ȭȱȱȱǰȱ ȱȬȱȱȱ ȱ ȱĴDzȱ ȱȬȱǰȱȱȱȱȱȱȱȱ special promotions. And last but certainly not least, prices should be placed ȱȱȱȱȱȱǻȱȱȱȱȱȱ¢ȱȱȱȱ¡ȱ First Eye Focus + ) $ffi First Eye Focus Eye movement across a one-page menu. Eye movement across a two-page menu. Upper-Left Corner Upper-Right Corner Bottom-Left Corner Bottom-Right Corner First Eye Focus Eye movement across a three-page menu. " " ffifl)ffi fl) ) fl " flff ffi( fl ffi , ffifl ffff ) flff ffi ffl flff ffi fl" ! " "fl fl fi fi"" ) ffifl fl (
240 Chapter 8 percent). Many restaurants mistakenly line up prices on the right; this approach leads many customers to base their menu selections on price. To play down price, use boldface type for the names of entrées, center them on ȱǰȱȱȱȱȱȱȱȱȱȱȱȱěǯ 3. Eye appeal.ȱ ȱȱȱĴǯȱȱȱȱǰȱ ¢ȱ¢ǰȱȱ ȱȱǯȱȱȱȱȱȱȱěȱ¢ǯȱȱȱ on light-colored paper is best, especially if restaurant lighting is dim. Photographs or illustrations can also be added to add interest and enhance sales appeal. ȱǯ As supplements to its regular menu, a restaurant may provide drink menus and wine lists, children’s menus, and dessert menus. Children’s menus, such as the one shown in ¡ȱŝǰȱȱĞȱȱȱȱȬȱ items, and may feature games or stories to keep children occupied while they wait ȱȱǯȱȱȱȱȱěȱȱȱȱȱDzȱ¢ȱȱ ȱȱȱȱǰȱȱ¢ȱȱĴȱ ȱȱȱǯ Clip-ons are used to avoid expensive reprinting when restaurants supplement the regular menu with daily specials, theme meals, or special menu items in ǯȱ ȱȱȱȱȱȱȬǰȱȱȱȱȱĴȱ ȱȱȂȱǯȱȱȱȱȱĚȱȱȱȱȱȱȱȱȱ the menu can be set aside so the clip-on does not obscure other entrées. Other F&B Merchandising Methods In addition to menus, restaurants can use the following merchandising methods to increase sales: product packaging, added-value alternatives, point-of-purchase merchandising, suggestive selling, and special promotional items. Product Packaging. Product packaging relies on an appeal to the senses to sell ǯȱȱȯȱ ȱ Ĵȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ beverage—usually involves producing a special visual impact that can turn something ordinary into a special delight. Product packaging can begin at the restaurant’s entrance—a display of wines, ȱȱȱǰȱȱȱĴȱ¢ȱȱȱȱȱȱěȱ sales tools. A display of fresh produce not only whets the appetite but also conveys the message that the restaurant uses only the freshest ingredients. This message can be carried throughout the restaurant through salad bars and table decor. Product packaging can inspire promotions that generate additional business. Cracker Barrel restaurants, for example, have featured an apple promotion that includes theme posters, recipe brochures, bushel-basket displays of apples, special menu items such as baked apples and apple bread, and a free apple with each deli soup and sandwich lunch. Many food and drink items can be made special through product packaging. Colorful garnishes of fresh fruits or vegetables create a feeling of quality and abundance and can make even simple food and beverage items more appetizing and salable. A bowl of dry cereal, for example, becomes a more memorable break- ȱ ȱȱ ȱȱȱȱȱȱǻ ȱȱǰȱ ǰȱ
Marketing Restaurants and Lounges 241 . %ffi# & / / /fl! fl) " " & ffi fl 3. fl) flfi 5( ' ffi ) , , fl fi" fi fffl ffi "( %" & ffi flfl ff ffi"ff "( F1635(4:A 1)A ff('A ff1%,0G
242 Chapter 8 raisins, and so on). A simple salad can become a work of art when enhanced with skewers of fresh fruits or vegetables. Unusual presentations can also be used for eye appeal. A hollowed-out avocado can serve as a unique bowl for homemade guacamole; chicken curry or a special salad can be showcased in a pineapple half; and a fresh, crispy tortilla bowl can hold a taco salad. Drinks, too, whether alcoholic or nonalcoholic, can generate impulse sales when presented in unique ways. An unusual glass; the addition of Ĵȱǰȱ ȱȱȱȱȱ ȱȱȱȱȱȱȱ ȱ or as elaborate as artistically arranged skewered fruit in frosted glasses; and the ȱȱ¢ȱȱ ǻ¢ȱǰȱȱǰȱȱȱȱ¢ȱȱȱ ȱĴȱȱȱ ȱ Ǽȱȱȱȱȱǯ Novelty serviceware might also increase food sales. Eggs served in cast-iron ǰȱ ȱ ȱ ȱ ȱ ȱ ȱ ěȱ ȱȱ ǰȱ ȱ ȱ ȱ ȱ ȱ ȱȱ ȱ ȱ Ĵȱ ȱ ȱ ¡ȱ ȱ ȱ merchandising that sells. ¢ȱȱ¢ȱȱȱ ȱ ȱ ȱȱ ěȱ ȱ ǯȱȱ every restaurant in town is serving prime rib, for example, why should a guest choose yours? One answer might be your restaurant’s unique way of serving the meal. At Lawry’s Prime Rib restaurants, ribs are brought to each table on a serving cart; guests choose their cuts and watch them being sliced to order. A food server could prepare a salad at the guest’s table instead of the kitchen, spinning the salad ȱ ȱ ȱ ȱǯȱ ȱ ȱ ǰȱ ȱ ěȱȱentertainment value. Dining becomes more than satisfying hunger—it becomes an experience to be enjoyed. Sales can be increased by presenting a spectacular dessert early in the eve- ǯȱȱ¢ȱȱȱȱȱĚ·ȱȱȱȱȱȱȱ ȱȱǻȱȱȱȱȱ¢ȱȱȱȱȱȱȱȱȱ any number of reasons), and sales of that item are almost guaranteed to increase ȱȱȱȱȱ¢ȱȱĚȱǯȱȱ ¢ȱȱȱ product packaging can be used to boost sales are almost endless. ȬȱǯȱȱȱȱȱĚȱ¢ȱ ǰȱ - Dzȱȱ ȱ ¢ȱȱȱ ȱȱȱȱȱĴȱȱȱȱ money. The principle behind added-value alternatives is simple—the guest is given an opportunity to purchase the greatest value among several alternatives. ȱ ¢ȱȱ ȱȱěȱȱȱȱȱ¢ȱ¢ȱȱȱȱȱ restaurant manager. ȱ ¢ȱȱȱȱȱȱȱěȱȱ£ȱȱǰȱ ȱ ȱȱȱȱȱȱěȱȱȱǯȱȱȱȱȱȱȱěȬ£ȱDzȱ steak can be sold by the ounce to appeal to those with small appetites. When large £ȱȱěǰȱȱȱȱȱȱȱȱȱȬȬȱ- ȱǰȱȱȱȱȱęȱȱȱȱǯ ȱȱȱ ȱȱȱȬȱȱȱěȱȱ ȯȱ ȱ ȱ ȱȱ ȱ ¥ȱȱ ȱ·ǰȱ ȱ¡ǯȱȱ examples of price alternatives are salad bars priced both with and without a ȱ·ǰȱȱěȱ ȱȱ ȱȱǰȱȱȱěȱ ȱȱ ȱ£ǯȱȱȱȱȱȱěǰȱȱȱȱȱȯ an alternative that appeals to their lifestyle.
Marketing Restaurants and Lounges 243 Package pricing is another way to provide added-value alternatives. This ȱȱĞȱȱȱǰȱȱȱȱȱȱȱȱ in one selection; the price of the items, of course, would be higher if purchased ¢ǯȱ¡ȱ ȱ ȱ ¢ȱ ȱ ȱȱ ěȱ ȱ ȱ ȱ ȱ with dinner; a sandwich served with a choice of soup or salad and beverage; a dinner that includes a choice of salad, vegetables, breads, and dessert; and so on. Point-of-Purchase Merchandising.ȱȱȱȱȱĚȱ¢ȱȱ product packaging or value factors, and must be coaxed into making selections. ȬȬȱȱȱȱȱȱȱ¢ȱȱȬęȱ items to best advantage. Merchandising at the point of purchase makes extensive ȱȱ¢ȱȱȱȱǰȱȱȱȱȱǻȱExhibit 8), and additional graphic reinforcement such as strategically placed salad bars, displays of wines, and dessert carts. ȱ ȱ ȱ ȱ ȱ ȯȱ ¡ǰȱ ȱ Ĵȱ ȱ ȱ labeled with a tag identifying it as the “wine of the month,” or complimentary samples of appetizers or entrées that the restaurant is promoting. When using tabletop selling, the restaurant must make it clear whether the item is complimen- ¢ȱȱȱǯȱ ȱȱĴȱȱ ȱȱȱȱ¢ǰȱȱȱȱ¢ȱęȱ as such and guests must not feel obligated to buy. If a fruit basket contains complimentary fruit and is not on the table strictly for decoration or for sale, a simple ȱǻȃȱȱȄǼȱȱȱȱ¢ȱȱȱȱȱȱ more at home. 0 %ffi# fi fflfi 1#) #flffi flflff " " !fl * "ffl ff"" fl"fl flffifl *fl ,( 1flflff ffi " fl fl ffi" "( F1635(4:A 1)A .$/,0*1A ,.510A $0'A 18(3A $4A !(*$4A fl(7$'$G
244 Chapter 8 In order to make the most of point-of-purchase merchandising, one strategy ȱ ȱȱ¢ȱȱȱęȱ£ȱȱȱěȱȱȱ in each: lobby zoneȱǻǰȱȱǰȱǰȱȱ¡ǼDzȱfront counter zoneȱǻȱǰȱǰȱȱǼDzȱbar zoneȱǻȱȱȱ drinks, and point-of-purchase opportunities); dining room zoneȱ ǻȱǰȱ ǰȱ ȱ ¢Ȧȱ ǰȱ ǰȱ ǰȱ ȱ ǰȱ ȱ ĞȬ dinner mints); bathroom zoneȱ ǻȬȬȱ ȱ ȱ ȱ ȱ and displayed newspaper ads). Point-of-purchase merchandising can lead undecided guests into making impulse decisions, but, like a menu, it has a limitation: it is a one-way communications medium. There is still a missing ingredient: people. ȱǯȱFood servers and other restaurant personnel play an important ȱȱȱȱȱǯȱȱȱȱȱěȱ- dising tools is suggestive selling. Suggestive selling can begin from the moment a guest is seated. The food server can suggest a cocktail from the bar or a special £ȱ ȱȱ ȱǯȱȱȱȱȱěȱȱ£ȱȱǰȱ and the food server can suggest several appetizers that can be ordered by various members of the group and shared. Entrées may be suggested or upgraded with ȱ ȱ Ȭȱ ǯȱĞȱ ȱǰȱ ȱ ȱ ȱ ȱ ȱ ȱ choice of desserts rather than just asking if anyone would like dessert. The chances ȱȱȱȱȱ ȱȱȱȱȱĴȱȱǯ Suggestive selling can also be used in a lounge. The bartender or cocktail ȱȱȱ£ȱȱ¢ȱDZȱȃȱȱȱęȱ ȱȱ drink that I know you’d enjoy. It’s made with a blend of fresh pineapple juice and orange juice with our quality rum, and is served in a tall, frosted glass.” Suggestive-selling responsibilities should be part of a food or cocktail server’s ȱǰȱȱ ȱěȱȱȱȱȱȱȱȱȱȱ ȱǯȱȱȱȱȱȱȱȱȱĴȱȱ ȱȱȱ¢ȱȱ¢ȱ¢ȱȂȱ ǰȱȱȱȱěȱȱȃȱ up” a check. Instead, suggestive selling should be viewed as a part of good service, a way to serve the best interests of guests and make their visits more enjoyable. Since some servers feel uncomfortable with the idea of suggestive selling, Bill Marvin, a noted restaurant consultant and trainer, suggests that they simply make personal recommendations. He advises servers to tell guests what they like, what they think are the best things on the menu. Not only is sharing a personal favorite a lot more personal, but servers are expressing their own ideas and will have a natural enthusiasm and sincerity. Management should make sure that food and beverage servers understand the principles behind suggestive selling and which audiences are most receptive to this sales technique. Leisure travelers, for example, may be more receptive to taking their time and trying new dishes than guests having a business lunch. ȱȱ ǯȱȱȱȱȱȱȱǻȱ ¡ȱşǼȱsuch as recipe cards, postcards depicting drinks, and souvenir menus. ǻ ȱȱȱȱ¡ȱȱǰȱȱǰȱȱȱȱȱȱȱ take home.) If the restaurant is part of a chain, special promotional items may be available through corporate headquarters. They can also be specially designed by