HOTEL RESTAURANT MARKETING AND MENU ANALYSIS 1
Executive Summary 1
Section I: Introduction and Background 1
Section II: Statement of the Problem/Research Project 2
Scope of the Paper 2
Specific Nature of the Problems 3
The Potential Benefits of the Research Findings 3
Section III: Methodology 3
Literature Review 3
Survey of the Food Industry 3
The fast food industry 4
High-end dining industry 4
Section IV: Findings 5
Human Resources and Motivation 5
Diet and Nutritional Consciousness 5
Diversity in the Food Industry 6
Section V: Conclusions 6
Section VI: Recommendations 6
Improve the Communication strategies in the workplace 6
Diversify to Increase Revenue Pool 7
Monitor the Trends in the Food Industry 7
Appendix one: 8
Appendix Two 8
Interview Questions 8
The analysis endeavors to adress the problems affecting the Harris’the San Francisco Steakhouse, find areas in need of improvementand recommend solutions to all problems or potential improvements tothe existing systems. One of the complications is the lack of harmonyamong workers, especially between the managers and the lower rankedemployees. The paper will explore the source of the problem and thepossible solutions to improve the working atmosphere. At the sametime, the restaurant industry has a popular trend of moving towardshealthy diets. The relevance of the diets affects all food choices,especially in the middle working class in the society. Since thisgroup is the target patrons for the restaurants, it is important toconsider the effects of changing trends on the restaurants and adaptto the trends before the business model ceases to be functional.
Employees express dissatisfaction with the working conditions at theHarris’ the San Francisco Steakhouse. In addition, there arehigh rates of employee turnover on the lower levels of employment. Inthe business model, the identity of the business is built around beefand steak. The implication is that the increased emphasis on healthyeating in the society is in a direct line of conflict with theexisting business model. Therefore, it is important to reevaluate thebusiness model and the brand identity to reduce the effects of changeon the restaurant and to create a suitable and functional businessbefore the trends render the business completely unprofitable.
SectionI: Introduction and Background
One of the biggest trending topics in the field of restaurantmanagement is the human resource relations. In most restaurants, manyworkers are not satisfied with the quality of the working environmentor by the management strategies of the immediate supervisors.Consequently, in non-management working positions, there are highrates of employee turnover because of the limited perception ofappreciation of the output of the employees. Therefore, the employeesare often de-motivated, and it affects the functionality of theworkplace because it reduces productivity. The high rates of turnoveralso induce the additional costs of staffing and training for newemployees, creating further incidences of inefficiency in theproduction process.
In human resource management, one of the biggest themes is balancingbetween achievement of the company objectives and the realization ofthe true potential of all employees. Therefore, the best managershave to connect with their workers and create the impression thatthey are concerned about the welfare of workers while at the sametime facilitating the achievement of the company objectives. Fewmanagement models fit the bill. However, a recent book, “The OneMinute Manager” outlines a way for managers to combine thevalues of democratic leadership and authority to produce the bestresults in the working environment (Blanchard & Johnson, 2004).
The increasing adaptation of the principles of one-minute managementcontinues to create efficiency where the human resource departmentsadapt it. The main objectives of the management are clearcommunication of the objectives of the employer and the expectedoutcome for the employee. Where the employee meets the objectives,they should be congratulated immediately and made to feel theimportance of their achievements. Where they fail, the reasons forfailure are communicated promptly. The key to success is having aclear line of communication and having clear objectives to direct theemployees, where the employees feel lost, hey simply take a minute tolook at the objectives and acquire the required level of motivation.The strategy is potentially useful to the Harris’ the SanFrancisco Steakhouse. The application would improve the levels ofmotivation reduce the rates of turnover and at the same time,increases employee satisfaction. Therefore, the recommendations arebound to improve the working employment and atmosphere to maximizethe realization of the organizational objectives.
The other problem in the restaurant industry is the increasing numberof competitors offering better prices and better services to thepatrons and thus reducing the number of guests to places such as theHarris’ The San Francisco Steakhouse. As the name suggests, beef isa very important part of the Menu. In recent trends, an increasingnumber of people prefer healthy diet as opposed to red meat. At thesame time, the trends are influential in the middle-income group ofthe society because they have the greatest awareness of healthissues. Therefore, the restaurant and its operational model arethreatened by the new trends in health. The middle-income group, thetarget of the restaurant, is also the group with the biggest abilityto take action against the potential negative effects of unhealthydiets. Therefore, the business model and the brand identities need toconsider potential new inclusions in the menu to have a largeraudience. To increase the number of guests in the restaurant, thepaper will explore potential strategies to appeal to the currentmarket as well as potential strategies to reduce the health concernsof the patrons. If the trends are not considered, it is possible thatthe number of patrons will eventually dwindle to the threshold point,the point after which the business cannot possibly sustain itsoperations profitably.
SectionII: Statement of the Problem/Research Project
The main problems, as identified in the earlier section, are relatedto employee satisfaction and the potential effects of healthy dietson the business model of Harris’ the San Francisco Steakhouse.
Scopeof the Paper
Explore the role of employee motivation in improving the quality ofservice offered to the customers and the overhead costs of operation
Explore the potential diversification of the menu and increasedoptions to the patrons to reduce the reliance on Beef.
Explore the potential approaches to increase the number of patronsvisiting the restaurant
SpecificNature of the Problems
The restaurant has been experiencing a decreasing number of Patronsover the last few decades. At the current rate, the businessoperations will not be sustainable for much longer. The reduction iswith the attention of the restaurant because recent trends suggestthere is likely to be an escalation before a respite.
The increasing employment rates and the relevance of training all newemployees, especially in the lower levels, strain the recruitmentbudgets. The costs increase the overhead costs of running thebusiness and reduce the margins of the profits. Therefore, retentionof the lower level employees is an appealing strategy because itoffers the opportunity to reduce the costs of operations and thusincrease the profit margins of the business.
ThePotential Benefits of the Research Findings
As an intern, I was exposed to the issues in the restaurant throughthe stay, especially regarding the welfare of the workers. Iwasstationed in the staffing departments, and I experienced the staffingissues first hand. Therefore, the findings may create a need for newapproaches to reduce the negative effects of high rates of turnoverand uncover better management practices.
Popular trends and the best management practices are all contained inthe literature review. The reviews also suggest solutions and explainwhy specific methodologies and approaches are bad for specificbusiness models. The literature review will target specificliterature in the world of restaurant management and collectsuggestions on the best policies to solve similar problems elsewhere.The problem of employee satisfaction will be the most prominentinquiry in the literature review process.
One of the objectives of the study is to improve the efficiency ofthe employees and thus reduce the numbers of required employees inthe restaurant and increase the ability of the restaurant to retainthe existing workers. Therefore, interviews will seek to evaluate thelevel of employee satisfaction with the quality of treatment. In thequestionnaires, there is complete anonymity, and the employees answerthe same questions (see Appendix 2). The data collected is numericalfor objectivity and comparison purposes. In addition, the individualemployees will be requested to respond to the questionnairesdifferently.
Surveyof the Food Industry
To illustrate the importance of the target customers and therelevance of dietary trends in the society, the survey will targetdata on the profitability of different categories of the foodindustry. The survey will follow the methodology of a literaturereview to uncover the dormant trends in the food industry.
The fastfood industry
MacDonald`s Fast Food outlets are the global leader in the fast foodsector. The business model of the fast food outlet is based onefficiency regarding the money and the quality of services.Therefore, in the fast food industry, the higher the quality of theproducts, the higher the costs incurred by the consumers. The reverseis also true. In all the joints, there is a theme of universalappearance and appealing to similarities, such that walking into anyfast food outlets, they bear a close resemblance.
The business model is also based on franchising the outlets. Thefranchise model depends on local profits and paying a commission tothe owners of the brand. Franchises facilitate internationaloperations provided the international outlets pay homage to theoriginal brand owners. In franchising, the services are outsourced tothe local population and the mantle depends on the local traits.Therefore, the fast food joints are responsive to change, anddifferent outlets in different countries offer different services tothe consumers. For example, the Macdonald`s branches in Hong Kongserve social functions. The joints now include wedding cateringservices as part of the restaurant packages to the patrons.
The link (https://ycharts.com/companies/MCD/profit_margin) shows theprofit trends of the MacDonald’s in the US over the last fiveyears. In this period, the healthy diets became an important part ofthe US society, and an increasing number of people selected what toeat based on their health interests. However, starting early 2015,the MacDonald’s outlets changed their menu to include healthy dietssuch as vegetables and increased the volume of advertisement tocreate awareness for the changes. The Soft Drink Giant, Coca-Cola,was also affected by the problem of reducing brand presence until theintroduction of healthy alternatives such as the diet soda by thecompany. Therefore, the trends in healthy eating indicate that theprofit margins of a company reduce where the company fails to accountfor the changes in the consumer traits.
The link(http://www.statista.com/statistics/219453/revenue-of-the-mcdonalds-corporation-by-geographic-region/)shows the revenue sources for the MacDonald’s franchise all overthe world. Despite the reducing local demands and the decreasingappeals of the fast foods in the US, other parts of the world hadhealthy markets and increased the number of fast food users.Therefore, the trends in the Fast food industry suggests that thebest coping mechanism is finding an alternative market to market thesame product if the other market is not affected by the same trendsor if there is potential for growth in the alternative market.
Regarding the workers, the fast-food industry is not reliant onindividual creativity because the mode of production is the same forall workers. Therefore, despite the relevance of training, theindustry is not affected by a high rate of turnover because itemploys minimum wage earners and offers no benefits. Where a memberof the serving staff leaves, they are replaced promptly.
Harris’ the San Francisco Steakhouse is a high-endrestaurant because it offers the best services at high prices to thecustomers. The services are so good that the restaurant regularlywins awards for the quality of Steak served. Therefore, it ispossible that the trends in the Fast food joints are different in thehigh-end restaurant. Therefore, the paper surveys the trends in therestaurant industry to make the recommendation and uncover thebusiness direction of the restaurants.
In the trends, the effects of the recession still affect the choicesof the consumers with most people feeling that they have notrecovered from the recession (see Appendix 1). At the same time,restaurants serve social functions. Therefore, the dining habits ofthe patrons are determined by the trending food choices in thesociety. The implication is that where there is an increased chanceof health diet selection the diners are likely to select the bestoutlets for the healthy diets. Therefore, while the trends show anincreasing growth in the restaurant industry, even after adjustmentfor inflation, the growth is best in the restaurants that serve ahealthy diet.
The Profit Margins for the Harris’ the San Francisco Steakhousehave been reducing over the last few years. Since 2008, theprofit margins, adjusted for inflation, have been going down, therestaurant targeted tourists because tourists are attracted torestaurants with proud local histories and secured high ratings onblogs. In a search result for the best steak restaurants, the Harris’the San Francisco Steakhouse is among the first hits. However,the instability of the tourism industry coupled with the absence oftourist attractions in the neighborhood reduces the appeal of therestaurant to the tourists. At the current rates, it is possible thatthe business will have to change the business models and the menu tostay in business.
HumanResources and Motivation
The literature review revealed that the best motivational strategiescreate opportunities for growth and appeal to the personal need for asense of belonging. In addition, where the employees feel valued, orwhere they perceive attachment of value to their specificcontributions, they are likely to increase the amount of effort andexperience attachment to the place of employment. The survey of thelocal employment conditions in the lower levels of the organizationrevealed that employees are strongly dissatisfied with their roles inthe organization, would appreciate better pays, and clearly definedroles in the working environment (Blanchard & Johnson, 2004).
Dietand Nutritional Consciousness
More and more people appreciate the importance of healthy diets.Therefore, there is a reduction in the volume of consumption for fastfood and other diets with a small nutritional value. The profittrends for the fast food industry are misleading because they do notaccount for the increasing presence of the fast food joints in manyplaces around the world. The increased presence increases the volumeof prospective clients and consequently improves the turnover and thetotal revenue. Where the revenue is compared to the total number ofclients and the total number of fast food joints, it is clear thatthe productivity of individual joints has been increasing over theyears.
The dietary awareness dictates the popular trends in restaurants aswell. While the quality of preparation appeals to the high-endconsumers, the nutritional value f the diet is an importantconsideration and restaurant adopting healthy diets are likely toincrease the number of patrons. At the same time, where manyrestaurants adapt the trends, it is possible that traditionalbusiness models are likely to appeal to a specific group in thesociety. For example, the steak lovers are likely to find fewrestaurants serving their favorite meals. The implication is thatprovided the business retains a specific target, and persists withthe current model it is possible that in the future, it will inheritthe remaining customers with the specific preferences addressed.However, in San Francisco, there is a culture of beef and steakconsumption. For this reason, most of the local restaurants simplydiversify their menus and retain the steaks. The implication is thatit is important to have an element of diversification to hold on tothe clients and appeal to new ones.
Diversityin the Food Industry
It is becoming more important for the food outlets to havediversified products. While the diversification increases the needfor employees and the overhead costs of running the restaurant, it isimportant to note that diversification increases the appeal of therestaurant to a bigger number of people. For example, due to thehealthy eating trends, the fast food industry diversified theproducts to increase appeal to a larger target and thus increases themargins of profits. In the restaurant industry, most restaurants arediversifying the products and nature of services to include bars anddancing in the same establishments to increase the appeal of theestablishments for all-inclusive evening entertainment.
The contemporary working environment requires proper motivation ofthe employees top improve productivity. Human resources are not aboutthe number of workers, but the quality of their productivity andwillingness to work for the current employer. Therefore, Harris’the San Francisco Steakhouse needs to improve the handling ofworkers to reflect the contemporary values of the workingenvironment. At the same time, the workers need to have a scene ofconnection with their work and the workplace to improve theirproductivity.
Harris’ the San Francisco Steakhouse is in a state ofdecline. The data from the historical earning support the view thatthe decline is not merely a function of the recent recession. Afterthe recession, there was an increased tendency for the US restaurantpatrons to prefer healthy diets. The Harris’ the San FranciscoSteakhouse diet depends on meaty products, specifically on beef.The other main dishes are meaty because they are based on animalproducts. Therefore, they are not healthy, and the emphasis on thepresent market on healthy diet creates the impression that therevenues will continue to decline in the near future. The consumertrends are not affected by reviews provided the consumers have aclear idea of what they want. Therefore, despite the high rankings ofthe Harris’ the San Francisco Steakhouse on social mediaplatforms, there is a need for change in the marketing strategies toarrest the decline.
SectionVI: RecommendationsImprovethe Communication strategies in the workplace
According to the book “The One Minute Manager", themotivation of employees in the workplace depends on the communicationstrategies used by the managers. To create the impression that theemployers are concerned about the welfare of all employees, it isimportant for the managers to have precise and effectivecommunication strategies. In the book, the three steps of managementinclude coming up with the goals of the organization, one-minutepraising and one-minute rebuking (Blanchard & Johnson, 2004). Inall the steps, the employee is involved in the decision-makingprocess, and the decisions are the expected outcome of showing aparticular behavior (Blanchard & Johnson, 2004). For example, inthe one-minute goal setting, the employee, and the manager createcome together to generate the objectives based on the abilities ofthe employees. The objectives are used to evaluate the outcomes, andthe employees are aware that where the objectives are not met, theywill be told, clearly, where they went wrong. Furthermore, themanagers make sure the workers are aware of the areas where they metthe intended objectives and how they can repeat the tasks for thebenefit of the workplace and all the workers in it (Blanchard &Johnson, 2004). In one-minute management, all workers are part of ateam, and they derive esteem from functioning as parts of the teams.The same motivational and management strategy is proposed for therestaurant to reduce the incidence of arguing by setting clearobjectives to manage the expectations of all workers.
Diversifyto Increase Revenue Pool
The revenue of the restaurant depends on meaty products. The mainproduct in the menu is beef, and the restaurant derives pride and asense of identity from the nature of the products served.Furthermore, the target groups are all middle class working peoplewith the financial ability to afford the products in the restaurant.However, despite the relevance of identity in strengthening theappeal of a brand to the target, such as the tendency of all peoplein close proximity to visit the restaurant when they experience beefcravings, it is important to diversify the menu to appeal to a newtarget and to increase the number of patrons who visit theestablishment. For example, the restaurant can ration beef so that itfalls within the acceptable standards of healthy eating. In addition,including healthy options in the menus and reducing the costs toincrease the number of people who can afford the food have thepotential to increase the numbers of potential clients. In addition,outside catering should be marketed to increase the revenue base bytapping into the potential revenue generated by social events wherepeople are unlikely to be inhibited by the conscience of health.
Monitorthe Trends in the Food Industry
Popular trends in the society are a very powerful motivator ofdirection and choices by all members (Dubin, 2014). For example, inthe world of advertising, the onset of social media changed the scopeof advertising and generating targets forever. In the same way, theawareness of health is likely to change the dietary contents for allworking class Americans forever (Dubin, 2014). For this reason, it isvery important that the restaurant managements consider the effectshealthy diets on food choices and use the changes to effect localizedchanges to keep in touch with the trends. In addition,diversification of the functions of the eating restaurants is apopular trend that affects the choices for entertainment. Such trendsare important considerations because they determine the businessorientations and failing to account for the changes may eventuallyresult in a business model becoming obsolete.
Blanchard,K., & Johnson, S. (2004). The one-minute manager. New York:Morrow.
Chowhounders,H. (2011, March 2). Who`s familiar with old San Franciscorestaurants? Retrieved November 24, 2015, fromhttp://www.chowhound.com/post/familiar-san- francisco-restaurants-769444
Dubin,J. (2011). Empirical studies in applied economics. Boston: KluwerAcademic.
Krashinsky, S. (2014, October 21). Healthy food trend seesMcDonald’s, Coca-Cola’s profits slim down. Retrieved November 25,2015, from http://www.theglobeandmail.com/report-on-business/healthy-food-trend-sees-McDonald`s-coco-colas-profits-slim- down/article21209076/
TheRestaurant Industry Forecast (2014) Download the entire report fromthe link(https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=3&cad=rja&uact=8&ved=0ahUKEwjU_ZuA9avJAhUJuBQKHSqDBaUQFgg2MAI&url=https%3A%2F%2Fwww.restaurant.org%2FDownloads%2FPDFs%2FNews-Research%2Fresearch%2FRestaurantIndustryForecast2014.pdf&usg=AFQjCNECu4MFpEvpjq7aFpkMCoPzZUojww&sig2=TBxhjih1fCHpe5Wo1wb5CQ&bvm=bv.108538919,d.d24)
Ona scale of one to ten, rate the following comments
I love my job
The managers treat me like a person
I love working here
I would leave the job if a better offer came along
I would love to work here for the next ten years