Sunday, November 11, 2007

Blog Posting #5

Richardson, Nicole Marie, 11PMS Innovations, Hospitality Technology Magazine, October 2007

11 PMS Innovations

Summary
In the October issue of Hospitality Technology Magazine, Nicole Richardson interviewed an assortment of hotel technology managers to discuss and identify the most innovative offerings for Property Management Systems (PMS) in today's 2007 environment. The most influential application is a PMS system that is web-based or remote. Managers feel that with web-based, someone is able to access the system from anywhere in the world with an Internet connection, essentially very convenient for the property. Another innovation discussed is managing multiple properties on one database that allows for the sharing of guest profiles, customer relationship management, and property cross selling. They are also able to target customers specific interests. Through the integration of online booking engines, hotels are able to sell rooms up to the last minute and ultimately increasing revenue. Also through interfacing of on-property and third party attractions managers can accommodate all guests needs from booking a room to choosing a tee-off time. Additionally technology officers enjoy all of the aspects of self-service kiosks. Allowing guests to check in and out at their own convenience makes life for hoteliers and consumers less complicated and more enjoyable. Hand held devices are another innovation that are aiding larger properties in the industry. Information Technology officers have also found that centralization is optimizing room sales. Also cellular devices have connected with the PMS systems to alert guests with text messages regarding their dinner reservation times and/or room availability. Another thing of the past is faxing and snail mail so emailing is a must in today's hotel industry. Also in today's society systems are designed specifically to protect guest privacy and data because of hackers and viruses that plague the networks. And finally systems are becoming easier to maintain/use and installation fees and programmers will no longer be necessary. These innovations aid in today's society and will continue to grow in the hospitality industry.

Reflection
I found this article to be very interesting because it allows readers to understand what truely works in the hotel industry. The insite is very useful for future patrons of these innovative systems and encourages properties to invest in certain types of pms systems. I found the article to be well researched and was impressed with the amount of insite specific companies spoke about. I was additionally unaware of several innovations and will now be certain to incorporate at least 10 if not all of the innovations in our property for the SDP project for HRIM450.

Saturday, October 27, 2007

Blog Posting #4

Terry, Lisa, Breaking Down the Fudge Factor, Hospitality Technology Magazine, October 2007

Breaking Down the Fudge Factor

Summary
This article by Lisa Terry deals with restaurants applying analytics to take the guess work out of food preparation. Restaurateurs have found recently that in back end restaurant management systems that include forecast-driven production and menu analysis systems there is time, energy, and money that can be saved. These reduced labor and inventory costs allow for reduced waste, fresher food, tighter delivery cycles, menu changes, promotions, greater manager accountability to ultimately improve the guests experience and enhance the workers performance. Chris Rodrigue, CEO of Taste Buds uses software from Compeat. It works on a four to seven point reductions and restaurant operators are able to use solutions that allow them to see, control and scrutinize their costs. Taste Buds specifically uses time and motion studies to determine the processes involved in preparing dishes and is then able to forecast what's made and when. Another secret they feel is calculating a daily par level rather than averaging across days. These tools can also make ordering more accurate by recommending orders based on forecasts, not just previous orders. It works well when new items are added to the menu. Additionally, these tools provide real-time visibility. Which helps chains and franchise systems greatly! You must train managers and franchisees to use these systems properly though. And the secret of effectively employing back end solutions is to use them in an environment where they can do the most good, and then stay committed to doing the work. This tool is an integral part for the future of restaurants.

Reflection
I found that this article was very well written and informational. As a future restaurateur I will definitely look into top of the line back end solutions systems because of their effectiveness in the hospitality industry. I was surprised at the effectiveness of Taste Buds food costs decreasing from 31 to 27.5 and labor costs from 12.5 to 11 percent because of back end solution systems. These systems are not only increasing productivity but additionally creating more time and energy for management to focus on marketing concepts to increase future revenue for companies. Arby's uses Restaurant Technology inc. to help in the ordering and food preparation as the franchisee enters recipes into RTI's menu analysis tools to be able to see their impact on food costs, paper costs, and revenues and gross profit. These tools are essential for any franchise company and will help the company greatly in the future.

Sunday, October 14, 2007

Blog Posting #3

Lorden, Abigail A, After hitting the $1Billion Mark, Church's Chicken aims to double in size by 2011, Hospitality Technology, September 2007

Cover Story: Millions of Chicken's Sold


Summary
Since George W. Church found the chain, Church's Chicken in 1952 it has expanded into a billion dollar business. Through a mix of innovation and simplicity Church's Chicken plans to double in size by the year 2011 from approx. 1600 locations now to 2500 locations across the globe. Harsha V. Agadi, the company's current president and CEO became a chief executive on December 26th, 2004 a date which is referred in the company as "Independence day" because of when Church's Chicken's official shifted from AFC Enterprises to Crescent Capital. In 2005, guest number's increased and Church's introduced two new product launches inclusive of a spicy bone-in chicken and the 99-cent Spicy Chicken Sandwich. The growth will occur though the expansion of units in both domestic and international markets and building out it's franchise base. Church's Chicken is located in 30 states and targets lower income neighborhoods where great food at lower prices are valued. Internationally there are over 400 stores in 18 International countries. 80% of new locations will be franchised and 20% will be company owned internationally. Agadi feels that the key to successful franchising is setting the standard at the corporate level. Innovation at Church's has meant outsourcing many of it's operation and technology systems through installation of Radiant point of sales systems and Texas digital drive thru timers, Mirus Restaurant Solutions, sandwich stations into kitchen operations, rebuilding and relocating numerous company stores, and new spicy chicken options. Outsourcing functions include accounting and employee expense reporting, bank reconciliation, and payroll. Agadi feels that outsourcing help the company grow without having to add resources. And the ultimate goal is to simplify operations, drive down operating costs, and free up capital to invest in the product as to grow more locations world-wide.

Reflection
I found that this article was very informative. Through outsourcing IT and setting proper goals, Church's Chicken will hopefully be able to double in size by 2011. Sonata Information Technology, out of Bangalore, India helps Church's Chicken in providing IT consulting, application development, and management services. It creates personalized reports for the executive and management teams and helps them make quick decisions for the companies worldwide. Sonata is able to focus on Church's immediate access to information so that executive offices can deal with the core business function of the company......to make chicken. The "independence day" of the company was a pivotal step in the expansion and future for Church's Chicken. A 390 Million transaction allowed Church's to revamp their menu strategy to target the product offerings. I found this change to be essentially and with the marketing of the new spicy bone-in chicken and the 99 cent spicy chicken sandwich the company was well on it's way down a path of success. This article proves how a good partnership with an IT company and a strong company like Cresent Capital can make a world of difference in the hospitality industry.

Sunday, September 30, 2007

Blog Posting #2

Clark, Tim, Next Generation Table Management, Hospitality Technology, June 2007

Next Generation Table Management

Summary
Restaurateurs strive to increase revenue in their facilities every day. Throughout the restaurant industry it is a known fact that for leading casual dining ventures like T.G.I. Friday's, and BJ's Restaurants that turning tables fast and efficiently can generate more revenue. These restaurants also want to create a unique dining experience for the customer while still getting them in and out the door as quickly as possible.
BJ's Restaurants, Inc. decided to invest in a table management solution in 2005. This change in BJ's began a new vision for the company in everything from the entrance of a guest, to printing checks for the back of the house staff all because of innovative technology. BJ's researched their technology venture and decided on QSR Automations. ConnectSmart Hostess from QSR Automations combines speed of service, production and sales data to increase table turns and seat utilization by serving more accurate wait times. Essentially offering BJ's the ability to have a systematic approach to seating their guests.
T.G.I.Fridays was also recently in the market for creating a better guest experience with table management solutions. Friday's used a pilot from vendor JTech which inevitably they purchased from Micros in 2005 provided a better table availability diagram. JTech enables faster mobile status updates, a custom view of wait lists, floor plans, and on screen keyboard and handwriting recognition input.
Finally, in Atlanta, GA a restaurant, Aqua Blue, was eager to try to credit card processing technology. On the Spot, by Verifone, was the new table management system that Aqua Blue best fit their facility. Essentially the staff brings a machine and the bill to the table, swipes the credit card, and hands it back to the guest. The whole process takes place in front of the guest which puts the guest at ease with an extra level of satisfaction and then allows the server to handle the transaction right then and there. New table management systems have become more evident in the hospitality industry, but still have considerable room for growth in the future market.


Reflection
I feel that technology in the restaurant industry is making huge strides in accommodating the ultimate guests needs. These "extra levels of satisfaction" that a customer can now enjoy because of the new table management systems is outstanding. These systems allow the servers to be extremely productive, they allow for facilities to generate more revenue, and they supply the customers with the most effective service possible.
The continued partnering venture between BJ's and QSR Automations has given the restaurant's greeters and seaters information to lower the amount of time that seats are empty and ultimately increase the number of guests seated during a busy time at the property. This table management system works well for their facility while the JTech Host Alert system works well for T.G.I. Friday's In the Tyson's Corner Mall in McLean, Virginia D'Anna, Regional Director of T.G.I. Fridays, has recommended the full scale launch of Micros new system in this 400-seat property. The reduced wait time and obvious positive customer feedback has proven profitable for T.G.I.Friday's business developments. All of the systems appear to be a crowd pleaser in the hospitality industry and will continue to make leaps and bounds in the next couple years because the guest expectations can always be exceeded!!

Sunday, September 16, 2007

Blog Posting #1

Terry, Lisa, Hospitality gets smart (Eight proven tactics for a successful business intelligence strategy), Hospitality Technology, June 2007

Hospitality gets smart


Summary
In today's thriving environment business intelligence and performance management has climbed to $23.8 billion, up 3.6% from the precious year. Hospitality Technology has identified eight key points in any success full business intelligence (BI) strategy starting with "knowing what you want to do and starting simple." Essentially this means beginning your operation with a POS, PMS, or labor system and then gradually adding more pertinent information. Next is "selecting a tool that fits those needs," meaning that because BI is such a rapidly growing and changing tool the "infrastructure" must be prepared for future demands. Next is "making sure data is clean and accessible, " meaning that all data entails a common data dictionary so new and old data meets the same standards. Forth is "standardizing data" by way of similar names of items on its menus because BI is more efficient when data is able to be accessed quickly. Fifth is being able to "work closely with operations and other users" by allowing the users to become accustomed to the colors and graphics of the program. Next is the ability to "set expectations appropriately" by realizing that despite ones best efforts to tweak all imperfections that everything is prone to change. Next is remembering to always, "keep it simple." It is often hard to change everything at once, but if you take it in phases and remember to uphold the organizations goals then nothing is impossible. Finally "don't ignore cultural issues." BI atmospheres are half technology and half philosophy/culture. By only addressing one of the issues management can lead to failure and create below average results.

Reflection

I felt that this article was helpful for a basic start-up company or a franchise with a new management company. These guidelines are very essential and necessary in today's growing and changing hospitality industry. The steps that I found to be extremely relevant were to "keep it simple," "standardizing data," and "work closely with operations and other users." Companies did not always start at the top, they initially begin small and work their way up. It is always important to be prone to change and stay alert towards future advancement for the company. Also if you standardize everything then there is less room for error in the future. From my experience in the hospitality industry I know that when the PMS (micros) system is failing it can cause major delays, disappointment and frustration of customers, and give the company a bad reputation. I would recommend this article for many hospitality professionals because it provides them with a simple breakdown of a successful business intelligence strategy.