On the top and center of the "Ben and Jerry's" infamous pint of ice scream is a debatable little phrase; it says "all natural." The only problem is that, in my opinion, this is misleading because natural verses beneficial for the body are two different things. Another potential loophole for Ben and Jerry's is that "the Food and Drug Administration has no formal definition for natural." I believe that this is a very difficult term to define, and also the fact that Ben and Jerry's was trying to still use it is not ethical. After so many years of nutritional advancements, we can finally see the side effects of all of this lying.
If a company does lie, or imply one thing because it means another it is wrong. "Ben and Jerry's" claimed they were using all natural to remind the consumer that there are "no added color, additional flavors, or synthetic substances." However, if Ben and Jerry's meant this, then I feel they could have just put that on the label, instead of the misleading all natural.
I feel as though this will negatively affect "Ben and Jerry's" but also negatively affect the ice cream industry. FIrst off, if the ice cream is no longer natural, than why would a consumer feel the additional obligation to purchase it? This will probably affect the ice cream industry, because "Ben and Jerry's" is such a large part of the industry, that consumers will feel lied to, and betrayed and not able to get ice cream from any source. However, if the consumer is someone as in love with ice cream as myself, the would be able to eat it, knowing that it does in fact go straight to one's hips, and enjoy the flavors while they last.
Tuesday September 28, 2010 Edition of the Wall Street Journal
Article "Ice Scream Maker to Drop 'All Natural' From Labels"
Wednesday, September 29, 2010
"A Day Without a Mexican"
In 2004 the movie A Day Without a Mexican proposed the question, what if one day we woke up and all of the Mexican illegal immigrants had disappeared from California, meaning no cooks, maids, or nannies. The film, although through extreme hyperbole, still makes the point that without these illegal immigrants the economy would suffer and basically making the point that the jobs once filled by illegal workers would now belong to legal workers and cost the employers much more.
Sarah Kershaw, of the New York Times, asks "what if the restaurant industry — one of the largest employers of immigrants, a good number of whom, it is no secret, are undocumented — had to do it all above board?" She proposes a valid question as, according to a survey in 2008, 20% of this country's chefs, head cooks, cooks and around 28% of dishwashers are illegal immigrants. Additionally, as the Obama Administration begins to scrutinize those employers who hire an undocumented workers, restaurants should be wary of who they are hiring now cause it could cost them more in the future.
Interestingly enough, it appears as though the consumer would be the one to pay if restaurants were to only hire legal workers as they would see the price of their meals shoot up drastically. This issue could be seen as an ethical one as the employers are knowingly hiring these workers, yet those people need the jobs to stay in the country. Also it asks the question to customers whether or not they would still go to eat at a certain restaurant if they knew some of the employees were illegal immigrants. I personally I am not sure where I stand on the issue of immigration but I do believe that it's important for the country to examine its values in order to pursue this issue.
http://dinersjournal.blogs.nytimes.com/2010/09/07/what-if-restaurants-stopped-hiring-illegal-immigrants/?scp=3&sq=restaurants&st=cse
Sarah Kershaw, of the New York Times, asks "what if the restaurant industry — one of the largest employers of immigrants, a good number of whom, it is no secret, are undocumented — had to do it all above board?" She proposes a valid question as, according to a survey in 2008, 20% of this country's chefs, head cooks, cooks and around 28% of dishwashers are illegal immigrants. Additionally, as the Obama Administration begins to scrutinize those employers who hire an undocumented workers, restaurants should be wary of who they are hiring now cause it could cost them more in the future.
Interestingly enough, it appears as though the consumer would be the one to pay if restaurants were to only hire legal workers as they would see the price of their meals shoot up drastically. This issue could be seen as an ethical one as the employers are knowingly hiring these workers, yet those people need the jobs to stay in the country. Also it asks the question to customers whether or not they would still go to eat at a certain restaurant if they knew some of the employees were illegal immigrants. I personally I am not sure where I stand on the issue of immigration but I do believe that it's important for the country to examine its values in order to pursue this issue.
http://dinersjournal.blogs.nytimes.com/2010/09/07/what-if-restaurants-stopped-hiring-illegal-immigrants/?scp=3&sq=restaurants&st=cse
Tuesday, September 28, 2010
Restaurants To Create New Tipping Laws
The article I posted on ethics was about lawsuits formed based on workers being deprived of their wages and tips. A recent Wall Street Journal Article explains that recommendations for the state of New York for worker's tips and pay have been created over a year ago, and have yet been acted on. These recommendations could decrease the lawsuits filed against restaurant owners drastically.
Restaurant owners have expected the proposals for months now, but they are still waiting. The new laws are expected to consider everything from minimum wage to tipped employees to how tips are to be handed out. (Reddy) One of the recommendations was raising the wage of tipped employees to $5 rather than $4.65. Also, restaurants are required to give between $4 and $9 every week to workers who are required to wear a specific uniform. It was recommended that this rule be taken away.
The state Labor Department has said that the new wage order will be posted within a couple of weeks. Following that, there will be a 45 day period for people to comment on their thoughts. Once all comments are considered and edited, the wage order can be put to use.
President of the New York State Restaurants Association has said that there is so much confusion because the laws are not clear enough. People are hiring attorneys just to tell them what the law means. (Reddy) Hopefully, the order will be presented soon enough to clear up problems that could have been solved a long time ago.
http://online.wsj.com/article/SB10001424052748703.html?KEYWORDS=restaurant+industry
Restaurant owners have expected the proposals for months now, but they are still waiting. The new laws are expected to consider everything from minimum wage to tipped employees to how tips are to be handed out. (Reddy) One of the recommendations was raising the wage of tipped employees to $5 rather than $4.65. Also, restaurants are required to give between $4 and $9 every week to workers who are required to wear a specific uniform. It was recommended that this rule be taken away.
The state Labor Department has said that the new wage order will be posted within a couple of weeks. Following that, there will be a 45 day period for people to comment on their thoughts. Once all comments are considered and edited, the wage order can be put to use.
President of the New York State Restaurants Association has said that there is so much confusion because the laws are not clear enough. People are hiring attorneys just to tell them what the law means. (Reddy) Hopefully, the order will be presented soon enough to clear up problems that could have been solved a long time ago.
http://online.wsj.com/article/SB10001424052748703.html?KEYWORDS=restaurant+industry
Hotels Make Slight Comeback
As of last week, room rates in North America have risen 2%. (Plank) The increase in room rates is due to the increase in business travel.
They are more willing to spend money on hotel reservations then in the past. Omni Hotels and Resorts reported that the number of meetings booked at his company is now the same as they were in 2007 and early 2008. 75% to 80% of its business has come from corporate travel.
Editor of Travelocity has reported that hotel bookings through the sight for this past summer remained constant with that of last summers. However, there has been a 3.5% in bookings this fall compared to last. Although there is improvement, bookings are still 12% lower than in 2008, before the recession. (Plank)
Apple Core Hotels has also seen a 25% in RevPAR since 2009. When compared to 2008, revenue is still down about 20%. It is clear that the hotel industry is making improvement, but business travel must increase to keep hotel revenue increasing.
http://online.wsj.com/article/SB10001424052748703.html
They are more willing to spend money on hotel reservations then in the past. Omni Hotels and Resorts reported that the number of meetings booked at his company is now the same as they were in 2007 and early 2008. 75% to 80% of its business has come from corporate travel.
Editor of Travelocity has reported that hotel bookings through the sight for this past summer remained constant with that of last summers. However, there has been a 3.5% in bookings this fall compared to last. Although there is improvement, bookings are still 12% lower than in 2008, before the recession. (Plank)
Apple Core Hotels has also seen a 25% in RevPAR since 2009. When compared to 2008, revenue is still down about 20%. It is clear that the hotel industry is making improvement, but business travel must increase to keep hotel revenue increasing.
http://online.wsj.com/article/SB10001424052748703.html
Trump Entertainment Resorts Hires New CEO
In an article posted today in Businessweek, the popular Trump Entertainment Resorts is replacing its current CEO, Mark Juliani, with Robert Griffin, who is the president and CEO of MTR Gaming Group Inc. He is also the president of the Casino Association of New Jersey. Robert Griffin has already been praised by Trump's board chairman, even though Mr. Griffin will not begin working as CEO until late October or early November.
Mr. Griffin's company MTR has casinos in West Virginia, Pennsylvania, and Ohio. He has many well-regarded casinos in Columbus, Ohio. Furthermore, he was also involved in Trump Entertainment years back. He was a senior manager at Trump Marina from 1992-1998.
Mr. Trump, who currently owns 10% of Trump Entertainment, said "Mark (the current CEO) was a wonderful guy, and we think the new CEO will do a fine job as well. They (the board) just felt it was time to do something new." The article also states that Mr. Juliano's exit marks a near-complete change of top management in the company.
I believe that every certain number of years, a company should change its CEO. Even though that may be difficult, I believe having a new boss with new ideas will benefit the company more in the long run than not. Also, I find it incredible that Mr. Griffin has 30 years experience in the Hospitality industry. He is only 51. He has seen the industry during its best and worst times and has seen how far the industry has come over 3 decades. I believe his experience will help Trump Entertainment Resorts in the future. I think it's important that Mr. Griffin was a part of Trump at one point. Even though he was involved in it years back, he has at least a basic background about how things are operated within the Company.
http://www.businessweek.com/ap/financialnews/D9IH4TUG0.htm
Mr. Griffin's company MTR has casinos in West Virginia, Pennsylvania, and Ohio. He has many well-regarded casinos in Columbus, Ohio. Furthermore, he was also involved in Trump Entertainment years back. He was a senior manager at Trump Marina from 1992-1998.
Mr. Trump, who currently owns 10% of Trump Entertainment, said "Mark (the current CEO) was a wonderful guy, and we think the new CEO will do a fine job as well. They (the board) just felt it was time to do something new." The article also states that Mr. Juliano's exit marks a near-complete change of top management in the company.
I believe that every certain number of years, a company should change its CEO. Even though that may be difficult, I believe having a new boss with new ideas will benefit the company more in the long run than not. Also, I find it incredible that Mr. Griffin has 30 years experience in the Hospitality industry. He is only 51. He has seen the industry during its best and worst times and has seen how far the industry has come over 3 decades. I believe his experience will help Trump Entertainment Resorts in the future. I think it's important that Mr. Griffin was a part of Trump at one point. Even though he was involved in it years back, he has at least a basic background about how things are operated within the Company.
http://www.businessweek.com/ap/financialnews/D9IH4TUG0.htm
Wednesday, September 22, 2010
First Look at the Italian Eately
On August 31st, Mario Batali and Joe Bastianich opened an Italian food and wine marketplace in the Flatiron District. Although it appears to be a giant food court, Batali swears that " this isn’t a selection of restaurants under one roof. This is a retail store where we peddle the greatest of Italian gastronomy to people who want to eat it and know how to appreciate it." The ideology in the market comes down to the goal of providing New Yorkers with a home-cooked meal outside of the house.
According to the Wall Street Journal, "the interiors have a Whole Foods-meets-Bloomingdale’s-via-Tuscany feel". So far 300 the restaurant employees 300 people. Eataly mainly uses Italian products with few exceptions and serves such food as handmade mozzarella and oysters as well as plenty of wine and a future rooftop beer garden.
I believe that this marketplace will mark a new movement in the restaurant industry. Customers are drawn to the concept of a home-cooked style meal thats already ready to eat. As Batali said, "you ask any Italian and all of the smart Americans where the best meal they ever had in the last ten years was, and it was never in someone’s restaurant. It was always in the house. And with these products, and this ideology, we’re hoping that’s what we’re going to bring to New Yorkers.". This new endeavor could mean the appearance of other eateries like the Eately as the owners find it is a successful venture.
http://blogs.wsj.com/metropolis/2010/08/25/first-look-at-mario-batalis-monster-italian-marketplace/
According to the Wall Street Journal, "the interiors have a Whole Foods-meets-Bloomingdale’s-via-Tuscany feel". So far 300 the restaurant employees 300 people. Eataly mainly uses Italian products with few exceptions and serves such food as handmade mozzarella and oysters as well as plenty of wine and a future rooftop beer garden.
I believe that this marketplace will mark a new movement in the restaurant industry. Customers are drawn to the concept of a home-cooked style meal thats already ready to eat. As Batali said, "you ask any Italian and all of the smart Americans where the best meal they ever had in the last ten years was, and it was never in someone’s restaurant. It was always in the house. And with these products, and this ideology, we’re hoping that’s what we’re going to bring to New Yorkers.". This new endeavor could mean the appearance of other eateries like the Eately as the owners find it is a successful venture.
http://blogs.wsj.com/metropolis/2010/08/25/first-look-at-mario-batalis-monster-italian-marketplace/
Darden Restaurants 1Q Profit Up 20%; Red Lobster Struggles
Darden Restaurants Inc.'s first-quarter earnings increased 20% as the casual-dining giant's same-store sales rose at Olive Garden and LongHorn Steakhouse (Ziobro). Shares of Darden dropped approximately 2.2% to $43.07 as investors became cautious over Red Lobster's sales. "The seafood chain's sales fell 1.7% in the quarter, resulting in Darden's overall sales missing estimates, though profits beat expectations as labor costs were held in check. Darden also backed its outlook for the year" (Ziobro).
Darden sees the recovery as a difficult journey especially as consumers are still worried over the stability of the recovery and the slow pace of new job creation. By the end of the quarter on August 29, the company posted a profit of $113.1 million, or 80 cents a share from a year earlier. "Revenue increased 4.2% to $1.81 billion, as combined same-restaurant sales at its three main chains grew 1.1%" (Ziobro).
Red Lobster's store sales have recently declined 7.9% in the past year. This decline is most certainly due to the new competition of other sea-food restaurants opening in areas near Red Lobster. "Darden said Red Lobster's sales were hurt after it started its popular Endless Shrimp promotion two weeks later this year than a year earlier" (Ziobro). This new promotion played a major role in the downward trend of the Red Lobster store sales in the past year. "Some analysts were hoping that another promotion, Crabfest, which offered a selection of meals featuring crab, would have provided a stronger boost" (Ziobro).
During the recession, Darden generally has avoided discounts and has instead he offers short-term promotions that highlight some of the unique attributes of its brands (Ziobro). This plan by Darden has helped protect companies profits, while other chains have focused on price-driven deals. In conclusion, the competitive landscape changed during the recession due to the fact that promotions for these restaurants have been causing sales to decline in the past few years.
http://online.wsj.com/article/BT-CO-20100921-713280.html
Can a Luxury Hotel Survive in this Economy?
According to Travel and Leisure’s September 2010 issue, the Armani Hotel Dubai is a hotel everyone needs to go to at least once in his or her lifetime. This hotel is located inside the world’s largest building- the Burj Khalifa. This adventure land is not only competing for the World’s tallest building, which it has claimed the title of, but also trying to get tourists to come to the various activities offered in the building. From an indoor ice skating rink, the Dubai mall, an upper level pool that wraps around the entire hotel, a spa with its own outdoor pool, to an upper level observation deck; this hotel has more to keep a person entertained in its own building than some hotels have in a city.
Although, the cost will take a number of hard working years to save up for- the double rooms start at $1,000 a night, and go up to suites over $10,000 a night. However, a personal assistant and concierge, called a “lifestyle manager” are on call around the clock, and they are provided free of charge. The hotel opened in April 2010 (which was delayed a week by volcano ash storm), by the funding of Mohamed Ali Alabbar and the designs of Giorgio Armani. Together this power duo has planned out the design of 10 hotels and resorts around the world so far, but this is the first one that is actually open to customers.
Personally, I admire Armani for being one of the first designers with various endeavors outside of fashion industry. This is quite revolutionary for the hospitality market, and will probably inspire other major fashion designers to test out the success of other industries. In general, it is risky to be gambling on a business during a recession that is affecting the world. Not to mention the fact that this hotel is a luxury hotel. Seeing as this is such a small market, if the profits are not substantial, then this company is going to suffer. Meaning people losing jobs, and Dubai losing tourists. As long as the Armani Hotel Dubai can maintain an image of luxury, and impeccable service to the guests, then it is unlikely that the hotel will fail.
http://www.travelandleisure.com/articles/the-new-armani-hotel-dubai/3
http://online.wsj.com/article/SB10001424052748704868604575433583524896308.html?KEYWORDS=dubai+hotel
Although, the cost will take a number of hard working years to save up for- the double rooms start at $1,000 a night, and go up to suites over $10,000 a night. However, a personal assistant and concierge, called a “lifestyle manager” are on call around the clock, and they are provided free of charge. The hotel opened in April 2010 (which was delayed a week by volcano ash storm), by the funding of Mohamed Ali Alabbar and the designs of Giorgio Armani. Together this power duo has planned out the design of 10 hotels and resorts around the world so far, but this is the first one that is actually open to customers.
Personally, I admire Armani for being one of the first designers with various endeavors outside of fashion industry. This is quite revolutionary for the hospitality market, and will probably inspire other major fashion designers to test out the success of other industries. In general, it is risky to be gambling on a business during a recession that is affecting the world. Not to mention the fact that this hotel is a luxury hotel. Seeing as this is such a small market, if the profits are not substantial, then this company is going to suffer. Meaning people losing jobs, and Dubai losing tourists. As long as the Armani Hotel Dubai can maintain an image of luxury, and impeccable service to the guests, then it is unlikely that the hotel will fail.
http://www.travelandleisure.com/articles/the-new-armani-hotel-dubai/3
http://online.wsj.com/article/SB10001424052748704868604575433583524896308.html?KEYWORDS=dubai+hotel
Tuesday, September 21, 2010
Hotels emerge in NYC
This year New York City is expecting the greatest number of hotels to develop in several years. 44 new hotels are planning on being opened, which creates 7,561 new rooms, and 8.5% espansion in the city's room supply. (Hudson) These projects were started a couple years ago, but due to the economy, they had to be put on hold.
Usually when supply increases, room rates decrease since consumers have more options. Therefore, hotels drive down their prices to win guests. However, NYC hotel owners expect the prices to remain about the same.
Michael Depate, who owns four hotels in NYC stated, "About six months ago, every hotelier in New York was very worries about all of the new supply coming. But there has been such a resurgence of business travel that, even with all of the supply coming, we haven't had any troubles absorbing it."
Depate's statement shows the confidence hotel owners are having in the industry these days. This may be due to the 7.1% increase in occupancy rates this year. Revenue per available room has risen by 13.4%, and nightly rates have raised 3.1%. (Hudson)
This supply growth is not expected to last for very long. They suspect that next year it will decrease greatly. In conclusion, the hotels are not feeling pressured by the increase in supply of rooms. Room rates are expected to stay about the same and they are not expecting occupancy rates to drop much due to the increases in travel and RevPAR.
http://online.wsj.com/article/SB10001424052748704.html?KEYWORDS=new+hotels
Usually when supply increases, room rates decrease since consumers have more options. Therefore, hotels drive down their prices to win guests. However, NYC hotel owners expect the prices to remain about the same.
Michael Depate, who owns four hotels in NYC stated, "About six months ago, every hotelier in New York was very worries about all of the new supply coming. But there has been such a resurgence of business travel that, even with all of the supply coming, we haven't had any troubles absorbing it."
Depate's statement shows the confidence hotel owners are having in the industry these days. This may be due to the 7.1% increase in occupancy rates this year. Revenue per available room has risen by 13.4%, and nightly rates have raised 3.1%. (Hudson)
This supply growth is not expected to last for very long. They suspect that next year it will decrease greatly. In conclusion, the hotels are not feeling pressured by the increase in supply of rooms. Room rates are expected to stay about the same and they are not expecting occupancy rates to drop much due to the increases in travel and RevPAR.
http://online.wsj.com/article/SB10001424052748704.html?KEYWORDS=new+hotels
Wyndham Worldwide Corp to Manage Planet Hollywood Hotels
According to a Wall Street Journal article, the Wyndham Worldwide Corporation and Planet Hollywood Resorts International LLC have finally reached a licensing deal. This deal states that the Wyndham Worldwide Corporation will franchise and manage Planet Hollywood hotels all around the world. This means great news for the Wyndham Worldwide Corporation, even though existing Planet Hollywood hotels "will continue to own its brand trademarks and intellectual property".
By franchising and managing Planet Hollywood, Wyndham hotels will be able to surpass the offerings of their current hotels. In other words, Wyndham's hotels will be more attractive to a larger percent of the population because of the added appeal of Planet Hollywood's hotels. Another advantage of franchising Planet Hollywood is the alteration of future Wyndham hotels. According to the article, Wyndham "plans to offer developers various entertainment-based Planet Hollywood concepts for future hotels, including several restaurant chains based on hotel or resort size and location."
I believe this is a great deal for Wyndham Corp. Planet Hollywood resorts are one of the best known resorts around the world. Since it's creation, Planet Hollywood has made a strong name for itself. I have personally stayed in a Planet Hollywood resort and had great service, relaxing visits, and enjoyable dining, as well as shopping and activities. Furthermore, Wyndham Corp. is another big, strong name in the industry. The article states that Wyndham has 7,200 hotels under a dozen other brands including Ramada, Howard Johnson and Days Inn. Again, I have personally stayed multiple times at a Ramada and Days Inn and never had any type of problem. Since these companies are both strong, I think Wyndham Corp franchising Planet Hollywood will only make them stronger and more appealing. I believe it is also important to note that Wyndham "recorded a 34% increase in July in second-quarter earnings and raised its 2010 guidance. As well as company shares increased 1.1% at $28.17 in recent trading and the company stock is up 40% this year alone." Wyndham is doing extremely well.
Lastly, I believe this will create more competition in the industry. More well-known global hotel companies may want to quickly begin brainstorming licensing deals with other well-known companies, based on how well Wyndham does over the next months.
http://online.wsj.com/article/SB10001424052748704129204575506004059115436.html?mod=WSJ_business_whatsNews#&mg=com-wsj
By franchising and managing Planet Hollywood, Wyndham hotels will be able to surpass the offerings of their current hotels. In other words, Wyndham's hotels will be more attractive to a larger percent of the population because of the added appeal of Planet Hollywood's hotels. Another advantage of franchising Planet Hollywood is the alteration of future Wyndham hotels. According to the article, Wyndham "plans to offer developers various entertainment-based Planet Hollywood concepts for future hotels, including several restaurant chains based on hotel or resort size and location."
I believe this is a great deal for Wyndham Corp. Planet Hollywood resorts are one of the best known resorts around the world. Since it's creation, Planet Hollywood has made a strong name for itself. I have personally stayed in a Planet Hollywood resort and had great service, relaxing visits, and enjoyable dining, as well as shopping and activities. Furthermore, Wyndham Corp. is another big, strong name in the industry. The article states that Wyndham has 7,200 hotels under a dozen other brands including Ramada, Howard Johnson and Days Inn. Again, I have personally stayed multiple times at a Ramada and Days Inn and never had any type of problem. Since these companies are both strong, I think Wyndham Corp franchising Planet Hollywood will only make them stronger and more appealing. I believe it is also important to note that Wyndham "recorded a 34% increase in July in second-quarter earnings and raised its 2010 guidance. As well as company shares increased 1.1% at $28.17 in recent trading and the company stock is up 40% this year alone." Wyndham is doing extremely well.
Lastly, I believe this will create more competition in the industry. More well-known global hotel companies may want to quickly begin brainstorming licensing deals with other well-known companies, based on how well Wyndham does over the next months.
http://online.wsj.com/article/SB10001424052748704129204575506004059115436.html?mod=WSJ_business_whatsNews#&mg=com-wsj
Wednesday, September 15, 2010
How far does Chipotle's 'integrity' reach?
Chipotle prides themselves as “purveyors of food with integrity”, yet new evidence has come to light that proves otherwise. A new ethical issue has arisen in the restaurant industry as farms are employing illegal workers to produce food for some so-called ethical companies. Recently the Department of Justice officials unveiled an indictment for the eighth time in over ten years over “forced labor in Florida’s agricultural fields”. According to the federal court, three labor bosses have hired dozens of illegal Haitian workers with the “promise” of access to their passports and they were forced to work and live in horrible conditions, constantly threatened with deportation.
A Florida-based farmworker association,The Coalition of Immokalee Workers, is pioneering the movement to end “modern-day agricultural slavery”. The CIW’s goal is to “train local, state and federal law enforcement to investigate, uncover and prosecute existing slavery operations, in addition to working to eliminate the root causes of the problem: farmworkers' structural powerlessness and grinding poverty”. They were also recognized by Secretary Clinton, for its persistence and innovations in the battle against human trafficking, who said stopping slavery is more than a one person job and we have to act against it.
Chipotle is a respected brand due to its quick growth and mission statement of “Food with integrity is our commitment to finding the very best ingredients raised with respect for the animals, the environment and the farmers”. Yet the company is unwillingly to help to fix the abuse of Florida’s agricultural workers as they have opted for a solo approach that encourages oversight of farm work. Chipotle has outwardly acted against the ethical standards that have commercialized and encouraged the success of their company.
Their stance exemplifies the “reckless disregard” that Secretary Clinton has criticized in the modern fight against slavery. This is a risky move for a company that primes themselves on “ethically produced” burritos. Their behavior is in direct conflict with their mission statement and I believe when this information comes to light people will think more carefully about how the food they are putting into their systems was produced.
http://www.huffingtonpost.com/sean-sellers/chipotle-farmworkers-integrity_b_712007.html
Michelle Obama to Restaurants: Cut Fat
Today, the restaurant industry was given cooking advice by First Lady Michelle Obama. She said, "a little less butter and cream, and hold the fries." Obama gave her first address to the National Restaurant Association. She made fighting childhood obesity her primary cause. Her message included remarks to an industry widely viewed as a main contributor to the nation’s exceeding waste lines and rising diabetes rates. Obama called on restaurants to consider changing their kids’ menus with healthier ingredients and to encourage more nutritious foods in their marketing to children.
http://blogs.wsj.com/washwire/2010/09/13/michelle-obama-to-restaurants-cut-the-fat/
New CEO For Burger King
It has finally been decided that former railroad executive Bernardo Hees will be the CEO of Burger King Holdings Inc. This will occur once the $3.3 billion leveraged buyout by 3G Capital Management is completed, later this year.
Mr. Hees has an impressive history in business. He was a logistics analyst at America Latina Logistica (based in Brazil) before becoming chief financial officer, chief operating officer, and ultimately chief executive. Even though he has stepped down, he will still be on the board. However, while Mr. Hees was the CEO of America Latina Logistica, the company reported a doubled second-quarter net profit from the year-earlier period. Furthermore, Mr. Hees is a partner at 3G Capital Management.
Due to the recent loss of stock, analysts anticipate Mr. Hees position will help Burger King Holdings Inc, even though many previous CEOs of Burger King have had experience in other fields, including airlines and hotels.
I believe Mr. Hees will make a difference in Burger King. Burger King's main problems are "weak sales and franchisees unsatisfied with corporate spending to boost the brand." Furthermore, Burger King is doing poorly in the market place because the company has not changed its menu to accommodate new desires of its consumers, whereas McDonald's menu has changed. Another problem is: Burger King is advertised towards people aged 18-24. This age group is currently suffering from the high unemployment rate. Though the company is suffering, I believe Burger King is mostly following its mission statement of supplying costumers with "exceptional, consistent services (as well as burgers, fries, and drinks). On the other hand, I also believe Burger King should change its menu around a bit and take a few more "risks" with corporate spending to really boost the company. Hopefully Mr. Hees will be able to make these changes and greater ones.
http://online.wsj.com/article/SB10001424052748703960004575481482827393778.html?KEYWORDS=burger+king
Burger King Mission Statement: http://www.helium.com/items/800617-burger-king-the-facts-about-the-second-largest-fast-food-restaurant
Mr. Hees has an impressive history in business. He was a logistics analyst at America Latina Logistica (based in Brazil) before becoming chief financial officer, chief operating officer, and ultimately chief executive. Even though he has stepped down, he will still be on the board. However, while Mr. Hees was the CEO of America Latina Logistica, the company reported a doubled second-quarter net profit from the year-earlier period. Furthermore, Mr. Hees is a partner at 3G Capital Management.
Due to the recent loss of stock, analysts anticipate Mr. Hees position will help Burger King Holdings Inc, even though many previous CEOs of Burger King have had experience in other fields, including airlines and hotels.
I believe Mr. Hees will make a difference in Burger King. Burger King's main problems are "weak sales and franchisees unsatisfied with corporate spending to boost the brand." Furthermore, Burger King is doing poorly in the market place because the company has not changed its menu to accommodate new desires of its consumers, whereas McDonald's menu has changed. Another problem is: Burger King is advertised towards people aged 18-24. This age group is currently suffering from the high unemployment rate. Though the company is suffering, I believe Burger King is mostly following its mission statement of supplying costumers with "exceptional, consistent services (as well as burgers, fries, and drinks). On the other hand, I also believe Burger King should change its menu around a bit and take a few more "risks" with corporate spending to really boost the company. Hopefully Mr. Hees will be able to make these changes and greater ones.
http://online.wsj.com/article/SB10001424052748703960004575481482827393778.html?KEYWORDS=burger+king
Burger King Mission Statement: http://www.helium.com/items/800617-burger-king-the-facts-about-the-second-largest-fast-food-restaurant
Tuesday, September 14, 2010
I was lovin' it
This upcoming Thursday, during “The Daily Show with Jon Stewart,” an advertisement by the Physicians Committee for Responsible Medicine that blames McDonalds for causing a woman’s husband to die. At the end of the commercial, there will be a play on words, instead of “I’m Loving It,” which is McDonald’s slogan, it will be, and “I was lovin it.” Even though this is quite extreme, it does send the message, that eating unhealthy amounts of processed foods, will lead to death. Even though McDonald’s has responded to “Supersize Me”- a movie claiming that McDonald’s can make you fat- in a positive way, it clearly was not extreme enough of a measure. People are still eating countless numbers of meals a week at McDonald’s and they are suffering the physical consequences.
A major reason this advertisement is debuting in Washington, DC is because the lack of nutritionally conscious choices the city is making. But it is also related to not being able to afford the high prices of produce in the less financially prosperous areas. Each year more than 1,500 Washingtonians die because of heart disease, which is the second-highest rate of such death in the United States. Another startling fact is that Washington, DC has more McDonald’s, Burger King, and KFC restaurants per square mile than eight other similar-sized cities.
The ethical issue that has arisen is whether it is in the consumers’ best interest to be eating unhealthy processed food, just to make a profit for the company. McDonald’s has made alternative options available, but realistically very few people who eat at McDonald’s will choose the more nutritionally sound, alternative options. The company has also made the nutritional information available to their customers- online and in the franchises. Clearly, consumers have responded by either still eating at McDonald’s franchises, or by siding with nonprofits, such as the Physicians Committee for Responsible Medicine, that is against fast food altogether.
A contrary to McDonald’s is the mission statement of Subway. In the Mission Statement, there was one part that I believe is an accurate portrayal of Subway,” offering value to consumers through providing great-tasting food that is good for them and made the way they like it." The consumer knows that Subway has relatively healthy options, disregarding the chips and cookies. Subway has vegetables, fresh bread, and fresh meats, which it can serve its customer at an affordable price. To become more of interest to the consumer, the company occasionally will have “Five Dollar Foot Long” Months. This is a great time for profit, and to have a sandwich without feeling ripped off.
Wall Street Journal Article-- http://online.wsj.com/article/SB10001424052748704190704575490011354963240.html?mod=loomia&loomia_si=t0:a16:g2:r2:c0.0453364:b37296132
McDonald’s mission statement-- http://www.aboutmcdonalds.com/mcd.html
Subway Mission Statement-- http://www.subway.com/StudentGuide/s_e_welcome.htm
A major reason this advertisement is debuting in Washington, DC is because the lack of nutritionally conscious choices the city is making. But it is also related to not being able to afford the high prices of produce in the less financially prosperous areas. Each year more than 1,500 Washingtonians die because of heart disease, which is the second-highest rate of such death in the United States. Another startling fact is that Washington, DC has more McDonald’s, Burger King, and KFC restaurants per square mile than eight other similar-sized cities.
The ethical issue that has arisen is whether it is in the consumers’ best interest to be eating unhealthy processed food, just to make a profit for the company. McDonald’s has made alternative options available, but realistically very few people who eat at McDonald’s will choose the more nutritionally sound, alternative options. The company has also made the nutritional information available to their customers- online and in the franchises. Clearly, consumers have responded by either still eating at McDonald’s franchises, or by siding with nonprofits, such as the Physicians Committee for Responsible Medicine, that is against fast food altogether.
A contrary to McDonald’s is the mission statement of Subway. In the Mission Statement, there was one part that I believe is an accurate portrayal of Subway,” offering value to consumers through providing great-tasting food that is good for them and made the way they like it." The consumer knows that Subway has relatively healthy options, disregarding the chips and cookies. Subway has vegetables, fresh bread, and fresh meats, which it can serve its customer at an affordable price. To become more of interest to the consumer, the company occasionally will have “Five Dollar Foot Long” Months. This is a great time for profit, and to have a sandwich without feeling ripped off.
Wall Street Journal Article-- http://online.wsj.com/article/SB10001424052748704190704575490011354963240.html?mod=loomia&loomia_si=t0:a16:g2:r2:c0.0453364:b37296132
McDonald’s mission statement-- http://www.aboutmcdonalds.com/mcd.html
Subway Mission Statement-- http://www.subway.com/StudentGuide/s_e_welcome.htm
Monday, September 13, 2010
Restaurants Depriving Low-Level Employees
Lately popular restuarant owners, including Masaharu Morimoto of "Iron Chef", have been targeted with lawsuits by attornies. These attornies are representing low-level employees who have supposedly been underpayed, have not recieved tips, and have not recieved an extra hour of pay after working ten or more hours as stated in state laws.
Large law firms are behind these lawsuits. Mr. Kirschendaum who has filed several law suits in the last year says, "We don't chase people, people chase us. They're being wronged, they're being taken advantage of by big corporations with a lot of power."
The ethical question that arises is whether or not it is right for a restaurant to steal some tips from their workers to increase profit. Although it seems like an obvious no, that extra profit may keep the restaurant from having to lay off one employee. The $20 one may lose from not recieving their tips does not compare to a years pay. However, an employee should recieve the pay they earn, and therefore, has caused employees to file suits against their employers.
One of Mario Batali and Joe Bastianich restaurants' Del Posto is said to "create an ambiance filled with the warmth, bouyancy, and lightheartedness of the Italian Spirit." However, they have a lawsuit filed against them for physical and sexual harassment, racial discrimination, and not paying some workers their "due tip wages" . This shows that the "lightheartedness" presented to its customers does not extend as far as the employees.
Batali and Bastianich have not released any comments on the situation. Eanni-Rodriguez, director at Restaurant Opportunites Center said, "We're still speaking with the company. I don't think they really have a sincere interest to fix things. We're at the point where workers wanted to really take actions." This statement shows that the company has not taken this event to heart. People make mistakes, but they should feel obligated to fix this situation with their workers. They should have earned at least respect from their employers who have been unethically insulting then.
http://online.wsj.com/article/SB10001424052748703882304575465913350852120.html?KEYWORDS=restaurant+industry
Large law firms are behind these lawsuits. Mr. Kirschendaum who has filed several law suits in the last year says, "We don't chase people, people chase us. They're being wronged, they're being taken advantage of by big corporations with a lot of power."
The ethical question that arises is whether or not it is right for a restaurant to steal some tips from their workers to increase profit. Although it seems like an obvious no, that extra profit may keep the restaurant from having to lay off one employee. The $20 one may lose from not recieving their tips does not compare to a years pay. However, an employee should recieve the pay they earn, and therefore, has caused employees to file suits against their employers.
One of Mario Batali and Joe Bastianich restaurants' Del Posto is said to "create an ambiance filled with the warmth, bouyancy, and lightheartedness of the Italian Spirit." However, they have a lawsuit filed against them for physical and sexual harassment, racial discrimination, and not paying some workers their "due tip wages" . This shows that the "lightheartedness" presented to its customers does not extend as far as the employees.
Batali and Bastianich have not released any comments on the situation. Eanni-Rodriguez, director at Restaurant Opportunites Center said, "We're still speaking with the company. I don't think they really have a sincere interest to fix things. We're at the point where workers wanted to really take actions." This statement shows that the company has not taken this event to heart. People make mistakes, but they should feel obligated to fix this situation with their workers. They should have earned at least respect from their employers who have been unethically insulting then.
http://online.wsj.com/article/SB10001424052748703882304575465913350852120.html?KEYWORDS=restaurant+industry
Wednesday, September 8, 2010
Touch Screen Vending Machines- The Newest Trend
As a little kid, your first memory of a vending machine is mystical. First telling your parent your favorite candy bar. Then, they grab some spar change in their purse or wallet. Next you know, the metal spiral is turning, then your item of choice falls, and finally you reach behind that metal flap to grab one of your favorite treats. Well, that memory is going to change for children all over the United States, and all over the world. There is a new trend in vending machines that combines the joy of a touch screen, and the convenience of a vending machine.
Since one of the largest decline's in the industry's history, they fell for 10 percent to $19.85 billion in 2009 from $22.05 billion in 2008. Large vending machine chains are trying to find most efficient way to cut their costs, and make smarter decisions about which products to sell in which parts of the country. These vending machines will not only be capable of having credit card swipes, but in each of the vending machine's 45 slots there is real time data. So that when items are being replaced they can tell which ones need to be most frequently replaced, and which ones are "dead spirals" or dispensing less than one item per week.
I feel that this is a definite transition that needs to happen. This will help people vending machine owners make customer valuable decisions. Even though the new technology will cost $300 per machine (which is costly per $3,000 vending machine.) However, it will likely even out quickly if there are 45 items, and each is about a dollar, then that will not be a problem. Another positive benefit is the change option for money and the ways to pay. People will no longer have to worry about having more than a one dollar bill, and getting multiple dollars in coins, since there is change in dollar bills now. And also, the credit card machine means that people who do not have cash, which in this day in age not everyone has all the time, will make it very efficient.
Since one of the largest decline's in the industry's history, they fell for 10 percent to $19.85 billion in 2009 from $22.05 billion in 2008. Large vending machine chains are trying to find most efficient way to cut their costs, and make smarter decisions about which products to sell in which parts of the country. These vending machines will not only be capable of having credit card swipes, but in each of the vending machine's 45 slots there is real time data. So that when items are being replaced they can tell which ones need to be most frequently replaced, and which ones are "dead spirals" or dispensing less than one item per week.
I feel that this is a definite transition that needs to happen. This will help people vending machine owners make customer valuable decisions. Even though the new technology will cost $300 per machine (which is costly per $3,000 vending machine.) However, it will likely even out quickly if there are 45 items, and each is about a dollar, then that will not be a problem. Another positive benefit is the change option for money and the ways to pay. People will no longer have to worry about having more than a one dollar bill, and getting multiple dollars in coins, since there is change in dollar bills now. And also, the credit card machine means that people who do not have cash, which in this day in age not everyone has all the time, will make it very efficient.
Restaurants Resort to Loyalty Programs
In the past, restaurants relied on their loyal customers to come in a couple times a year for certain occassions. This could be either birthday, holidays, family reunions, etc. Restaurants would reward customers with a slice of cake and a happy birthday song for their birthday. We have all had this done to us. However, with the recession, it is not as easy for restaurants to reward people with a free piece of cake for their birthday.
Instead, with a 3% decrease in restaurant traffic, restaurants must and are finding other ways to reward their customers and draw their attention and loyalty. This includes free trips, coupons, CDs, cologne, autographed objects, and many more. T.G.I Fridays is offering people the chance to try menu items before they come out by signing up for their rewards program. They will also recieve a free appetizer or dessert and an $8 coupon everytime they spend over $100.
Burt Flickinger, a manager at a consumer consulting firm, says that grocery stores and drug stores have always offered consumer loyalty programs, and therefore, they have not been hit by the recession as drastically as restaurants have. If restaurants had offered more rewards earlier, then they would not have to act so drastic right now. Red Lobster would not have to be offering the chance to win a trip to the Florida Keys and Starbucks wouldn't have to offer trips to the Galapagos Islands.
It is estimated that it costs a company 1% of sales to start a rewards program. The return on investment is approximated at 2%. Therefore, it pays off for these companies to start these programs. Starbucks has created an awards program that has three levels. The first offers a free drink on their birthday for signing up, the second (customer with 5 stars) offers free syrup for coffee and free refills, and the third (30 stars) offers chances to win VIP tickets and other huge rewards. Stars are earned with each transaction. This Starbucks rewards program is a perfect example of the success a restaurant can gain from this. The use of a Starbucks cars is used with almost 20% of transactions at Starbucks. These programs prove to be rewarding to the customer along with the restaurant.
http://online.wsj.com/article/SB100014240527487042718045754053636471891110.html?KEYWORDS=restaurant+industry
Instead, with a 3% decrease in restaurant traffic, restaurants must and are finding other ways to reward their customers and draw their attention and loyalty. This includes free trips, coupons, CDs, cologne, autographed objects, and many more. T.G.I Fridays is offering people the chance to try menu items before they come out by signing up for their rewards program. They will also recieve a free appetizer or dessert and an $8 coupon everytime they spend over $100.
Burt Flickinger, a manager at a consumer consulting firm, says that grocery stores and drug stores have always offered consumer loyalty programs, and therefore, they have not been hit by the recession as drastically as restaurants have. If restaurants had offered more rewards earlier, then they would not have to act so drastic right now. Red Lobster would not have to be offering the chance to win a trip to the Florida Keys and Starbucks wouldn't have to offer trips to the Galapagos Islands.
It is estimated that it costs a company 1% of sales to start a rewards program. The return on investment is approximated at 2%. Therefore, it pays off for these companies to start these programs. Starbucks has created an awards program that has three levels. The first offers a free drink on their birthday for signing up, the second (customer with 5 stars) offers free syrup for coffee and free refills, and the third (30 stars) offers chances to win VIP tickets and other huge rewards. Stars are earned with each transaction. This Starbucks rewards program is a perfect example of the success a restaurant can gain from this. The use of a Starbucks cars is used with almost 20% of transactions at Starbucks. These programs prove to be rewarding to the customer along with the restaurant.
http://online.wsj.com/article/SB100014240527487042718045754053636471891110.html?KEYWORDS=restaurant+industry
Reliance’s Surprise Entry Into Hotels
The Reliance Industries; which is India’s largest listed company by market value, has surprised its investors yet again. "On Monday the industry announced that it had acquired a 14.12% stake in the Indian hotel chain EIH for $216.97 million in its second foray into a new line of business this year." This gain shows that despite the economies recession, some hotel industries and businesses are still managing to do well.
Oberoi and Trident hotel brands which are operated by EIH, saw their stock price rise much as 20% since the market’s close on Monday. For EIH, having an investor like Reliance Industries is definitely an advantage. "It’s a good deal for the shareholders of the company, whose Trident hotel in Mumbai was attacked by terrorists in November 2008, with the offer from Reliance amounting to roughly $3.9 a share, 22% higher than EIH’s closing price on Monday."
"As investments go, hotels are a pretty good place to be." According to GDP stock prices for hotels, trade, telecom and transport together grew 12.2 percent over the previous year. This increase in prices marks a major turn-around for the better in the hotel industry.
Recently I believe people have been taking vacations more often, therefore staying at hotels more and contributing to the increase in that industry. Also, despite the economy, people are still buying timeshares in hotels giving them the ability to stay free at that hotel anywhere in the world. I know this because my family just recently bought a timeshare in Aruba. In conclusion, if people keep contributing to the increase hotel industry, we should see great advances and positive progress in the next few years.
http://blogs.wsj.com/indiarealtime/2010/08/31/reliances-surprise-entry-into-hotels/?KEYWORDS=hotels
Hotels Hinting at a Turnaround
The Hotel Industry has witnessed a drastic decline in guests over the last couple of years. It is only now that their occupancy and revenue has started to rebound. Although hotel owners are not out of the clear yet as their properties remain deeply in debt “with billions of dollars of mortgages coming due in the coming years” and aren't expected to fully recover until 2013. Smith Travel Research recently showed that the US hotel occupancy rose 2 points in the past five months raising the average to 54.7%, but this number still falls short fiver percent of the previously recorded number in the first five months of 2008 of 59.4%. The hotel-industry analysis company PKF Consulting Inc. reasons that “US average rates and revpar will return to their recent peaks by 2013”, whereas occupancy is not expected to return to its normal rate until 2014. For some hotels, for example the Ritz-Carlton Chicago, this waiting time is to long and they are hoping for a stead-fast recovery of 10 percentage occupancy points. Most hotels are not generating enough cash to cover even the interest on their loans and they are turning to private investors and their own money to help cover payments.
Given our country's economic turmoil, I believe much of the hotel industry's drop in occupancy is due to people saving and spending their money on more vital things. Families, the hotel industry's biggest customers, are spending their money on their children's education and finding the cheapest way to go on a vacation, which does not include a pricey hotel. It is only now, as the economy is starting to pick up, people feel the flexibility to spend their earnings on things outside of essentials like food and shelter. I agree with the article that the occupancy and revenue levels will not fully return for three to fours, or until the economy is stable enough for people to have extra cash to spend.
http://online.wsj.com/article/SB10001424052748704123604575322840815295472.html?KEYWORDS=hotel+industry
Dans Le Noir? - A Restaurant In The Dark
There is a non-traditional restaurant opening in New York City late this year or early next year. The restaurant is called "Dans Le Noir?" and will be located at 107 Norfolk Street in the Lower East Side. Dans Le Noir is a French chain restaurant that has been successful overseas in cities including Paris, Barcelona, and London. The restaurant serves international food with a French influence.
The reason why this restaurant chain is so unusual is because "diners eat in pitch black unable to see each other or their waiters and unaware of their exact menu." The translation of "Dans Le Noir" is "in the dark." Furthermore, another non-traditional characteristic of the restaurant chain is the waiters are all legally blind. "Anyone can apply to be wait staff but the blind are the only ones that can survive navigating in the pitch black."
The committee gave the restaurant the "green light" to move towards a liquor license. Now the chain must be approved by the full board. Though, the board is already pleased and impressed with the chain because, besides the alluring idea of the restaurant, the company donates 10% of its profits to various charities worldwide.
I believe this chain will do well in New York City, especially if it has been successful in London, Barcelona, and Paris. The concept of this chain is so abstract and exciting, at least it is to me. I believe Americans like trying new things outside of their comfort zone, and this is something out of our comfort zone. An additional benefit is the restaurant offers traditional food versus strictly French food. If this restaurant does well in its first American appearance, we will definitely see more of it around the country, which could possibly lead to a new trend of "sensory" or "unusual" restaurants.
http://blogs.wsj.com/metropolis/2010/08/17/new-restaurant-will-give-diners-a-taste-of-darkness/?KEYWORDS=restaurant
The reason why this restaurant chain is so unusual is because "diners eat in pitch black unable to see each other or their waiters and unaware of their exact menu." The translation of "Dans Le Noir" is "in the dark." Furthermore, another non-traditional characteristic of the restaurant chain is the waiters are all legally blind. "Anyone can apply to be wait staff but the blind are the only ones that can survive navigating in the pitch black."
The committee gave the restaurant the "green light" to move towards a liquor license. Now the chain must be approved by the full board. Though, the board is already pleased and impressed with the chain because, besides the alluring idea of the restaurant, the company donates 10% of its profits to various charities worldwide.
I believe this chain will do well in New York City, especially if it has been successful in London, Barcelona, and Paris. The concept of this chain is so abstract and exciting, at least it is to me. I believe Americans like trying new things outside of their comfort zone, and this is something out of our comfort zone. An additional benefit is the restaurant offers traditional food versus strictly French food. If this restaurant does well in its first American appearance, we will definitely see more of it around the country, which could possibly lead to a new trend of "sensory" or "unusual" restaurants.
http://blogs.wsj.com/metropolis/2010/08/17/new-restaurant-will-give-diners-a-taste-of-darkness/?KEYWORDS=restaurant
Thursday, September 2, 2010
Hotel Profits Expected to Comeback in 2010
Since 2007, hotel profits have dropped approximately 38 percent. According to research released by "Colliers PKF Hospitality Research" United States hotels' net operating income is expected to increase 2.3 percent. On the contrary, a 0.6 percent decline in average room rates is expected for 2010. Even though "the increase in profits for 2010 [is] 'underwhelming' but predicted greater profits in 2011 to 2013." (Business Week, "U.S. hotels expect profits to return in 2010)
Clearly, this is of great interest for a person who wants to be in the hospitality and tourism industry. First off, there is great hope for the future because in this article, it infers improvements occurring in the economy. This article, found in Business Week, on August 24, 2010, entitled, "U.S. hotels expect profits to return in 2010" by Hugo Martin, is one of the first positive outlooks for the hospitality industry. Since the consumers in the economy are willing to, and have the resources to spend extra money to feed the economy it is likely that citizens will be vacationing more frequently. Due to the fact that going on vacations is not a necessity, people who have not needed to go on vacation, during these tough economic times.
This year is one that is considered an economic recovery. Even though the expected increase in profits are minimal and seem "underwhelming" they are still increase in profits, nonetheless. The report that Martin analyzed was a credible one, and that is why the even greater increases in profit from 2011 to 2013 are positive. When I graduate college I would be more satisfied with the prediction that a certain field will be recovering, thus the economy will be, and that will make me less worrisome about finding a job.
http://bx.businessweek.com/hospitality-hotels--resorts/view?url=http%3A%2F%2Fc.moreover.com%2Fclick%2Fhere.pl%3Fr3088410972%26f%3D9791
Clearly, this is of great interest for a person who wants to be in the hospitality and tourism industry. First off, there is great hope for the future because in this article, it infers improvements occurring in the economy. This article, found in Business Week, on August 24, 2010, entitled, "U.S. hotels expect profits to return in 2010" by Hugo Martin, is one of the first positive outlooks for the hospitality industry. Since the consumers in the economy are willing to, and have the resources to spend extra money to feed the economy it is likely that citizens will be vacationing more frequently. Due to the fact that going on vacations is not a necessity, people who have not needed to go on vacation, during these tough economic times.
This year is one that is considered an economic recovery. Even though the expected increase in profits are minimal and seem "underwhelming" they are still increase in profits, nonetheless. The report that Martin analyzed was a credible one, and that is why the even greater increases in profit from 2011 to 2013 are positive. When I graduate college I would be more satisfied with the prediction that a certain field will be recovering, thus the economy will be, and that will make me less worrisome about finding a job.
http://bx.businessweek.com/hospitality-hotels--resorts/view?url=http%3A%2F%2Fc.moreover.com%2Fclick%2Fhere.pl%3Fr3088410972%26f%3D9791
Hotel Chain Explores Bankruptcy
As the economy continues to struggle, a real-estate investment firm led by Joseph E. Robert Jr., who was one of the most successful deal makers during the industry crisis in the 1990s, is exploring a potential bankruptcy. This would mark another collapse of a major hotel company as our economy continues to plummet.
According to the PKF Consulting Inc., hotel values are expected to increase almost 7% this year. This increase would be following a 40% decline last year and 27% in 2008. Still, analysts warn that the hotel branch remains vulnerable to a double-dip recession because rooms turn over on a nightly basis.
The growing depression has been hard on the hotel industry this past year. Despite the probable collapse a real-estate investment firm led by Joseph E. Robert Jr., other hotel values are expected to rise by at least 7% in the next year. With the predicted hotel values on the rise does this also mean that employment will rise as well in the next year?
Restaurant Industry Making A Comeback
The restaurant industry is finally working its way out of the economic slump. Restaurant owners are reporting greater sales, up to 10%, even on the menu's most expensive items. Restaurant owners are crediting the hike in business to several factors. These include an increase in tourism, warm weather, summer travel, and increased spending.
Although warm weather has attributed to much of the success these past few months, restaurant owners still have high expectations for the months to follow. With rent decreasing 35% this year, more people are looking to expand and open new restaurant businesses. With these new openings, more jobs are being created. Barbara Byrne Denham, a chief economist said restaurants have created almost 6,000 jobs this year.
Although the most expensive products aren't being ordered to stock the restaurant's kitchens, food sales alone have doubled in the last two months. With more customers, many of whom are willing to spend more money, restaraunt owners have seen increased sales which have continued to go up since the first quarter with reports of up to 25%.
Prices on restaurants menus are finally rising after being drastically lowered. Chef and owner David Burke stated that his current Sunday special which previously ran for $25 is currently selling for $35 and will hopefully go for $40 by next year. Wine is currently being sold at almost $115 a bottle, whereas last year it was at only $90. With all aspects of business on the rise, the restaurant business is slowly making their way to a full recovery.
Although warm weather has attributed to much of the success these past few months, restaurant owners still have high expectations for the months to follow. With rent decreasing 35% this year, more people are looking to expand and open new restaurant businesses. With these new openings, more jobs are being created. Barbara Byrne Denham, a chief economist said restaurants have created almost 6,000 jobs this year.
Although the most expensive products aren't being ordered to stock the restaurant's kitchens, food sales alone have doubled in the last two months. With more customers, many of whom are willing to spend more money, restaraunt owners have seen increased sales which have continued to go up since the first quarter with reports of up to 25%.
Prices on restaurants menus are finally rising after being drastically lowered. Chef and owner David Burke stated that his current Sunday special which previously ran for $25 is currently selling for $35 and will hopefully go for $40 by next year. Wine is currently being sold at almost $115 a bottle, whereas last year it was at only $90. With all aspects of business on the rise, the restaurant business is slowly making their way to a full recovery.
Restaurant owners under investigation
Multiple well-known restaurant owners are being targeted in a lawsuit claiming they underpaid their workers. While this weeks targets are Michael White and Chris Cannon, this comes after the lawsuits filled against Mario Batali, Joe Bastianich, and Masaharu Morimoto. Each lawsuit states a similar case: "that restaurants are depriving low-level employees of due tip wages in violation of state and federal labor laws". For example, in the case against Mr. White three employees claim that the manager shared their tips as well as required them to buy and clean their own uniforms, which is in clear violation of state laws. The frustrated employees are seeking "unpaid wages and tips, interest, liquidated damages and attorney's fees, and class-action certification". As mentioned in the Wall Street Journal, "Nearly a dozen suits filed against high-profile restaurants over the past year were lodged by Outten & Golden or Maimon Kirschenbaum of Joseph, Herzfeld, Hester & Kirschenbaum LLP" and they must be sure to have hard evidence before filing a case. Often lawyers only focus on the workers filing the lawsuit, but the Restaurant Opportunities Center of New York knows to be careful when suing a restaurant by first looking for a pattern in the hopes of guaranteeing that they make an impact on the restaurant workers as a whole.
I believe that the law firms are acting ethically by filing lawsuits against the restaurants because clearly the companies have acted unprofessional as well as broken the law. Evidence is clearly the most important aspect of any case and if the law firms wish to make a lasting impression on the restaurant industry they must have more than one or two plaintiffs before pursuing their case. Although, I am surprised that such well-known restaurants owners are the target of such a case. Considering their success, one would think that they would have the monetary ability to treat their employees respectfully without having to break the law.
Top 15 Fall Restaurant Openings in NYC
According to a Wall Street Journal article released September 1st, beginning this fall, there will be 15 new, big restaurants opening in the New York City area. The five main trends of these restaurants are: Italian cuisine, American cuisine, TV chef, hotel restaurant, and food hall/food court. These varieties are very popular now because of their "comfort food" and "moderate menu pricing."
All of the restaurants, with the exception of three, have a combination of two or more trends before mentioned. For instance, "Eataly" will serve Italian cuisine, will be opened by a TV chef, and will be located within an "enormous food hall." "Neely's Pig Parlor" will serve American cuisine and will be opened by a TV chef.
I believe the opening of the 15 restaurants will create important, new growth for the Hotel, Restaurant, and Leisure industry. According to the Wall Street Journal, "hotels have become home to big restaurants." This means our industry will have the opportunity to receive more revenue from: hotel guests who dine in the hotel's restaurants; non-hotel guests who dine in the hotel's restaurants; and non-hotel guests who dine in the hotel's restaurants and decide to book a room, while pleasing our consumers on a higher level. I also believe the restaurants owned by TV chefs will be another important trend. Consumers enjoy trying new restaurants where a TV chef is the owner. The opening and progress of these 15 restaurants should be followed carefully by our industry because they have great potential.
All of the restaurants, with the exception of three, have a combination of two or more trends before mentioned. For instance, "Eataly" will serve Italian cuisine, will be opened by a TV chef, and will be located within an "enormous food hall." "Neely's Pig Parlor" will serve American cuisine and will be opened by a TV chef.
I believe the opening of the 15 restaurants will create important, new growth for the Hotel, Restaurant, and Leisure industry. According to the Wall Street Journal, "hotels have become home to big restaurants." This means our industry will have the opportunity to receive more revenue from: hotel guests who dine in the hotel's restaurants; non-hotel guests who dine in the hotel's restaurants; and non-hotel guests who dine in the hotel's restaurants and decide to book a room, while pleasing our consumers on a higher level. I also believe the restaurants owned by TV chefs will be another important trend. Consumers enjoy trying new restaurants where a TV chef is the owner. The opening and progress of these 15 restaurants should be followed carefully by our industry because they have great potential.
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