Informational Interview

I interviewed my father, Louis Brienza. He owns a Dunkin Donuts in Bethpage, NY. My father manages the day-to-day operations and deals with the financial end of the business. He makes all business decisions for the company ie: loans, real estate, expansion, and banking. He looks for employees that are outgoing, reliable, confident, and who can communicate well with customers. The entry level jobs in his business include crew-members that handle customers, bakers who handle the manufacturing of the products, and store managers. I also learned that in recent years there has been a decrease in sales due to the recession our economy has been facing. The customers are cutting back on there discretionary income. Some businesses will see an increase in the next five years because the financially strong companies will stay in business and build while the weaker companies end up closing. This will create less competition, therefore, increasing the sales of the bigger companies.

Informational Interview

I interviewed Edward Din, owner and manager of Wong's Chinese Restaurant in Norfolk, Virginia.  From this interview, I was able to gain an insight into a family-run business and how it is affected by seasonal changes.  Mr. Din and I spent the majority of the interview discussing how his restaurant's business is affected by its location as it sits on the beach.  In the summer, Mr. Din employees many employees because the restaurant sees a lot of customers in the warm weather.  Once the season's start to change and the temperature cools, the restaurant loses many of its customers and they are forced to let non-family employees go until business once again regains momentum.   I had never thought before how the economics of a business could be affected by its location and and the regional weather.  It makes me wonder how many other restaurants see a change in profits and have to let their employees go at certain times of the year and how important it is to those restaurants when they open.  I thought the interview was definitely beneficial because I learned about a different aspect of the restaurant industry.

Informational Interview

I interviewed Steve Efstathiou, owner of three diners in New York and Virginia. The interview was very helpful in understanding the competition in the restaurant industry. Mr. Efstathiou informed me that the industry is very competitive. The increase in national chains, for instance, Chinese and Italian chains, has made it hard for diners to gain support, especially with the economy how it is now. He said the restaurant industry was hit hard five years ago and he has seen a turnaround this year that he expects to last into the future. To gain consumers, restaurants must differentiate themselves from others. The main way restaurants differentiate themselves is by pricing. Offering 2 for the price of 1 meals, and discounts draw consumers in. I mentioned the high demand of diners in the area, especially around the college where students see many diners in their hometowns, and he said that he would love to open one around the school but property prices are way too high. This is very important to consider when opening a business since you need to be able to cover your costs.

Informational Interview

My informational interview was with Mr. Brett Kelly, the co-owner and co-manager of a small business restaurant named "La Terrazza". It is located in New City, New York. Mr. Kelly and his friend began the Italian restaurant 16 years back. As of now, he has 40 employees. As the manager, he is in charge of scheduling staff, purchasing items, booking affairs, printing/updating menus, having owner/manager responsibilities, and assisting for the hosts if needed. During the interview, he spent time explaining the different types of entry-level jobs. He focused on the "front of house" staff, which include waitresses, head waiter, booking manager, and assistant managers. However, his main focus however was on chefs. His small business has 6 different chefs, including preparation/salad chef, broiler chef and executive chef.
A really interesting part of the interview was when he explained the recent increase/decline in certain jobs over the past few years. He has noticed that weekly dinners (from Monday-Thursday) have declined over the past few years. Mr. Kelly states this is a direct effect from the recession - many people do not have the time or money to go to restaurants on weeknights. He also stated his restaurant is becoming increasingly popular for events - such as weddings, birthday parties, retirement parties, etc. The part of his business that was most striking to me was his staff is mostly made up of full time workers. These full time workers include teachers and nurses - workers who are looking for more ways to "make ends meet." I did not realize that some restaurants may participate like this. Speaking with him showed me how difficult it is to run a small business, especially during a recession. However, it also showed me how rewarding it can be.

Informational Interview

My informational interview was with Valarie Zuffanti, the Senior Sales Manager at the Ritz Carlton Corporations in Boston, Massachusetts. Her hectic day starts at 8:30 am, which is when the staff meets to discuss their goals for the day, any important guests that are arriving (since the hotel is a high-end one), etc. This meeting will last approximately 30 minutes, until nine am, when the group breaks off, and starts accomplishing their goals. Currently Valarie is figuring out the price of beds in the hotel- meaning at The Ritz Carlton- for the next year, 2011. During the day, Valarie will also talk with clients in the companies target audience, such as workers at Goldman Sacks, to make sure they are aware of the great deals at The Ritz Carlton. Prior to the stock market crash, the primary consumer of The Ritz Carlton's services were Wall Street workers, but since the crash in 2008, there has been a complete shift. This shift has come from financial workers no longer bringing in income for The Ritz Carlton employees, since they cannot shell out the expensive room rates. Hence one reason the hospitality industry has been declining, even for the upperclass workers, who have not been as taken aback by the financial crisis of 2008. Despite the 80 percent of Ritz Carlton clients that were in administration, and the financial sector; the hotel industry is beginning to buzz again. Although, this is not in full swing, there is an increase in the number of jobs, due to a somewhat stable footing in the stock market, and more jobs- such as security, bell hops, and front desk receptionists; have been desired from this increase.

No toy without certain fat restrictions

Recently a bill was passed by the San Francisco Board of Supervisors that states that restaurants cannot give away toys in their meals unless they meet certain health requirements regarding fat, calories and sodium.  The bill, which blatantly takes on the Happy Meal, was headed by Supervisor Eric Mar after he became horrified by his daughter's growing collection of free toys.  He believes this new rule is a way to counter the fatty, salty fast food.  Mr. Mar has said that he hopes this will act as an incentive for fast food companies to "provide better choices".

A spokeswoman for the company has said that she does not believe that this is what customers want "nor is it anything they asked for".  The mayor, Gavin Newsom, was also not pleased with this new ban and had hopes to veto it because he does not think this will fight child obesity.  The boards counter fact was that roughly 30% of the city's fifth graders are overweight, which is an extremely scary statistic considering the Happy Meal is aimed towards their age group. "Under the bill, any meals will have to have fewer than 600 calories, fewer than 640 milligrams of sodium and less than 35 percent of calories from fat (with an exception for some healthy items, like nuts)." If restaurants fail to adhere to these policies, then no toy for their customers.

I believe that this is a smart move for the city as child obesity is one of the biggest growing problems in the country. I think that this will be an incentive for children to choose healthier options as the toy is the rewarding piece of the meal. Hopefully this new standard will convince fast-food restaurants to serve healthier meals as they will begin to see what their customers are drawn too.

Minimum-Wage Debate Divides Hong Kong

In response to growing public calls to tackle the widening wealth gap, lawmakers passed the minimum-wage bill after a 41-hour session in July. Some of Hong Kong's lowest-paid workers, such as toilet cleaners or security guards, earn as little as HK$20, or about US$2.60, an hour. A Provisional Minimum Wage Committee appointed by the government has yet to recommend a new the hourly rate. HK$28 per hour is the median between what labor representatives and business groups are calling for.

A dispute between labor groups and the business sector last week raised the question of whether a minimum wage might backfire more directly against the workers it is meant to help. Trade unions called for a boycott of one of the city's largest fast-food groups, Café de Coral Holdings Ltd., which operates restaurants in Hong Kong as well as the Manchu Wok chain in North America (Steger).

While the minimum-wage law has yet to take effect, Café de Coral last month acted pre-emptively by increasing hourly pay by between HK$2 and HK$3.50 (Steger). However, because the company eliminated a paid 45-minute paid daily lunch break, the move turned into a public-relations fiasco. Employees found out their original earning of $22 an hour would end up being less less each month if they worked eight hours a day, 26 days a month. The boycott plan soon followed.

Hong Kong Chief Executive Donald Tsang, addressed to business groups that the government was forced to legislate a minimum wage after a "tepid" response from the business community to a voluntary plan for a minimum wage proposed in 2006 (Steger). "[T]ensions are developing in society because the fruits of the economic recovery have not trickled down to all levels of the community," said Mr. Tsang. "Some people feel that they are being ripped off" (Steger).

Workers will not only respond to low wages with boycotts; but it will also be reflected in their work ethic. If employees at restaurants are not working as hard this will directly affect customer satisfaction. Meals may not be prepared as quickly or there mite be less effort put into making them. If the workers got paid normal wages all the disputes between employee and employer will be settled and the consumer will be happy.

http://online.wsj.com/article/SB10001424052748704737504575601832288088158.html