leisure management

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Commercial sector and three hospitality outlets

HOSPITALITY INDUSTRY

Hospitality is one of the largest industry in the world. In UK hospitality industry has 1.7 million employees which is about 6% of the total working population. The value of hospitality industry when all subsectors included is around 55-60 billion pounds per year. There are many different sectors in hospitality industry, four of the main hospitality sectors are given below. (Power point from M.Cotton)

1. HOTELS

There are around 50-60,000 hotels in UK, according to a survey in 2004 average room rate for chain hotels in UK was around 70.87£, and the occupancy was 73.5%. In 2003 there were approximately 24,0000 people working in the hotel industry which is around 15% of the total hospitality worker.

2. RESTAURANTS

According to an estimate, there are around 56,000 restaurants in UK. Restaurant sector in UK is worth 25 billion pounds. there are around 500,000 full time and part time people working in the restaurant sector.

3. PUBS

According to the British Beer and Pub Association, therewere 88,098 premises with full on-licences in 2004, including about59,000 pubs.

People 1st calculatesthat 306,147 people had theirmain job wasin the pub, club and bar industry in 2003. That's 19% of the total number of hospitality workers.

4. CONTRACT CATERING

BHA estimates that in 2004 there were 18,028 contract catering outlets in UK. The turnover for contract catering sector in 2004 was around 3.89 billion pounds according to BHA. In 2004 according to BHA contract catering sector served 1.6 billion meals. According to People 1st in 2003 172,550 people's main jobs were in catering sector, which is 11% of total number of hospitality workers. (caterersearch.com)

Other than these there are plenty more sectors in hospitality industry. Like:

  • Bars
  • Gastro pubs
  • Cafes
  • Takeaways
  • Night clubs
  • Guest houses
  • Motels
  • Hostels
  • BISTROS
  • Casino
  • Bed & breakfast

SECTORS

The hospitality industry is divided into two categories.

  1. Commercial sector
  2. Non-commercial sector (catering services sector)

COMMERCIAL SECTOR

Commercial sector can be referred to as money making or profit oriented sector. In this sector, making money is the main aim. The organisations in this sector usually operate for profits. In this sector, catering and hospitality is the main activity. Some examples are

HOTELS

RESTAURANTS

TAKEAWAYS

PUBS

BISTROS

NON-COMMERCIAL SECTOR

Non-commercial sector is the type of sector where making money or getting profit is not the main purpose. The establishments in this sector are usually subsidised by governments or some enterprises. Cost of food and beverages is usually very low or in some cases even free. Examples of such establishments are:

EDUCATIONAL INSTITUTES

HOSPITALS

PRISONS

Here in the case of prisons, the prisoners are in prison for the crime they did not to eat free food. Similarly students go to colleges and universities to study, not to eat food. And in hospitals, people go for treatment not for eating food.

§ COMMERCIAL SECTOR OUTLETS

1. HILTON HOTEL

ABOUT HILTON:

Hilton Hotels Corporation is a leading hospitality company that owns, manages, and franchises over 2,000 hotels across the country. The company's international arm, Conrad Hotels, has locations in Australia, England, Ireland, Egypt, Belgium, Turkey, Hong Kong, and Singapore. Though publicly traded, the chain was for most of its history led by members of the Hilton family from 1919, when founder Conrad Hilton bought his first hotel. By the late 1940s, Hilton owned a worldwide chain of premium hotels. (http://www.fundinguniverse.com)

Now a days Hilton is one of the most successful brands in hospitality industry. Hilton Hotels Corporation is the leading global hospitality company, with more than 3,000 hotels and 500,000 rooms in more than 80 countries, including 100,000 team members worldwide.

HILTON GATESHEAD/NEWCASTLE

It is an international chain hotel owned by HILTON WORLDWIDE.

The Hilton Newcastle Gateshead offers, above all-else, sweeping views of the river Tyne, its bridges, the Quayside and the vibrant city of Newcastle. Almost 10 years in the planning, this long awaited hotel is the first Hilton to open in the North East of England.

This four-star deluxe property is ideal for conferences, banquets and meetings from two to five hundred guests. Rooms are equipped with the latest in-room communication tools, and furnishings that reflect the hotel's contemporary style and comfort. (venues.org.uk)

LOCATION:

It is located next to tyne bridge Newcastle which is only 10 minutes walk from Newcastle town centre. Full address of Hilton is given below;

Bottle Bank
Gateshead

Ne8 2

FACILITIES:

  • Beauty Salon
  • Bicycle Rental
  • Cardio Equipment
  • Fitness Centre/Health Club
  • Indoor Pool
  • Sauna
  • Spa
  • Baggage Storage
  • Concierge Desk
  • Continental Breakfast
  • Executive Lounge
  • Accessible
  • Laundry/Valet Service
  • Lounge
  • Luggage Hold
  • Multi-Lingual Staff
  • Parking facility
  • Pets Allowed
  • Restaurants & Bars
  • Room Service
  • Executive Lounge
  • Dining & bars
  • Business Centre
  • Foreign Currency Exchange
  • High Speed Internet
  • Meeting Rooms
  • Wired Guest Rooms
  • Wired Mtg Rooms
  • Wireless Mtg Rooms
  • Babysitting Service
  • Children's Menu
  • Connecting Rooms
  • Cribs / Cots
  • High chairs

SIZE:

It is a very big hotel with most of the facilities in it. It has restaurant , bar, pool, gym . Hilton Newcastle/Gateshead hotel has 10 meeting rooms for 2-80 and a function suite for 500. It has a total of 254 rooms, maximum capacity of the largest room is 40. There are two different types of rooms.

Guest rooms : the size of guest room is 28 meter square.

Executive rooms: executive rooms are slightly bigger with 32 m square space.

TYPE OF OWNERSHIP:

It is an international chain hotel which is owned by Hilton Worldwide.

It is a franchise hotel.

ABILITY TO EXPAND:

It is a chain hotel for this reason they cannot further expand their hotel.

STYLE OF BUSINESS:

It has a very formal style of business, with room service. (Hilton.co.uk)

ROOM RATE:

It's a very expensive hotel with room rate starting from 119£ up to 239£.

COMPETITORS:

Its main competitors are other luxury hotels in the area, which include

  • Marriott hotel
  • Greystreet hotel
  • Copthorne hotel
  • Express by holiday inn

TYPE OF CUSTOMERS

their main customers are usually businessmen, families and tourists.

EXPRESS BY HOLIDAY INN

Express is a part of inter-continental hotels group (IHG).

It is a chain hotel with branches all over the world. It is one of the fastest growing hotels in the industry opening 2 hotels a week.

HISTORY

1991 Holiday Inn Express is launched in the U.S.

1996 Express by Holiday Inn is launched in Europe in Strathclyde, Scotland.

1996 Holiday Inn Express grows from 0 to 500 properties opening a new hotel

every four days on average.

2003 Express Start® breakfast bars are rolled out across all 1,250 U.S. properties

in less than 3 months, featuring Smart Roast® coffee and a cinnamon roll

developed exclusively for the brand.

2004 Holiday Inn Express SimplySmart™ is launched in the U.S. across more than

1,300 properties to enhance guests' overall bath experience.

2006 Holiday Inn Express SimplySmart™ bedding collection is launched in the U.S.,

Canada and Mexico across more than 1,400 properties.

2006 Launched hotel franchising programme for Holiday Inn Express in China.

2007 IHG announces plans for a $1 billion relaunch of the Holiday Inn brand family.

2008 Holiday Inn Express launched an updated Express Start® breakfast bar

in the Americas.

2008 Opened first Holiday Inn Express in Taiwan and signed first one in Bangkok.

2008 First Holiday Inn Express hotels road-test the brand relaunch programme.

(Holiday inn website)

EXPRESS NEWCASTLE:

LOCATION:

It is located just outside the Newcastle town centre close to the river tyne. It is only 5 minutes walk from Newcastle central station and ST JAMES PARK. The full address is given below;

Waterloo Square, St James Boulevard

Newcastle upon Tyne

NE1 4DN

SIZE:

It is a basic hotel with a bar and a place for breakfast. It has 130 bedrooms and 2 conference rooms. It has a capacity of 35 seated people in conference rooms.

FACILITIES:

It is a basic restaurant ,Their main facilities include

§ Bar and lounge

§ 24 hr welcome

§ High speed internet

§ Laundry

§ Breakfast

§ Pay and display parking

They don't have any restaurant and the parking is paid.

STYLE:

It has form style of business with room service.

OWNERSHIP:

It is a chain hotel and is owned by holiday inn. It is a franchise.

ABILITY TO EXPAND:

As it is a chain hotel therefore it's ability to expand is limited.

RATES AND TYPES OF CUSTOMERS:

Their room rate ranges from 50-120£ depending on the time. Their main customers are businessmen and families, and parties on weekends.

COMPETITORS:

The main competitors are other 3 or 4 star hotels in Newcastle town centre which are

  • Royal station hotel
  • Swallow imperial
  • Jurry's inn
  • Ravensdeene hotel

PIZZA HUT

It is the most famous and known pizza company in the world. It is owned by the YUM.

HISTORY:

In 1958, Frank and Dan Carney had an idea for a great local pizza restaurant in Wichita Kansas. The small 25 seat restaurant only had room for 9 letters on the sign… the building looked like a hut… so 'Pizza Hut' was born!

Fifteen years later, they opened the first UK restaurant and since then they've become the biggest Pizza Company on the planet!

According to pizza hut website , the detailed history is given below.

· 2008; We bought Godfather's Pizza in Ireland with 28 stores. We also launched our Pepperoni Stuffed Crust & Garlic Crust pizzas, larger 4 for ALL and a new range of Tuscani pastas in the UK.

  • 2007We brought out our Thick n Thin Pizza and began to re-franchise our dine-in restaurants.
  • 2006Whitbread sold their share of the joint venture to Yum! Brands Inc. Pizza Hut UK Ltd was now 100% owned by Yum! Cheesy Bites was launched! There were now 697 restaurants in the UK, with 154 stores as a franchise owned by 61 franchises.
  • 2005The 4forALL was launched. Over 600 restaurants were open in the UK, 70 of them as Franchise units.
  • 2004Pizza Hut launched The Big New Yorker.
  • 2003500 restaurants were now open throughout the UK, employing over 20,000 people.
  • 2002Tricon Global became YUM! Brands Inc. The Quad Pizza was launched in the UK, as Pizza Hut opens its 500th restaurant. A & W and Long John Silver's join the Yum brand.
  • 2001Pizza Hut began a franchising programme with its delivery stores.
  • 2000Pizza Hut introduced The Edge, a thin pizza with toppings all the way round the edge.
  • 1999Pizza Hut had over 400 restaurants, employing 14000 people. The Italian Pizza was launched in the UK.
  • 1998Pan Pizza was relaunched as Grand Pan.
  • 1997PepsiCo decided to focus on their drinks business. As a result, Tricon Global Restaurants was born, creating the largest restaurant brand in the World. Tricon became the partner company with Whitbread. The Sicilian Pizza was launched in the UK, where there were 277 restaurants and 100 delivery stores.
  • 1995Stuffed Crust was launched in the UK.
  • 199410,000 Pizza Huts were open for business.
  • 1993There were 300 restaurants and delivery stores in the UK.
  • 1992There were 9,000 restaurants in 84 countries.
  • 1990Pizza Hut warmed the cold shores of Russia. In the UK there were now 200 restaurants.
  • 1989The first restaurant was converted into a Restaurant Based Delivery store.
  • 1988The UK's first delivery unit was opened in Kingsbury, London.
  • 1987An average of one restaurant opened each week in the UK.
  • 1986By now, there were 100 restaurants in the UK and 5000 world wide.
  • 1984Over 50 restaurants so far in the UK.
  • 1982The UK joint venture started between PepsiCo and Whitbread.
  • 1980Pan Pizza was Introduced.
  • 1977PepsiCo bought Pizza Hut.
  • 1973Pizza Hut went international with restaurants in Japan, Canada & England. The first UK Pizza Hut opened in Islington, London.
  • 19721000 restaurants are open throughout the USA.
  • 1958Frank and Dan Carney open the first Pizza Hut in Wichita, Kansas.

PIZZA HUT NEWCASTLE:

Pizza hut is one of the very busy restaurants in Newcastle town centre. It provides quality food and deserts with good service.

LOCATION

It is located in grainger street, which is in Newcastle town centre. It is a very busy place.

Address :

66 Grainger Street,

Newcastle-upon-Tyne

SIZE

It's not a very big restaurant with seating capacity of 65 people. It has a waiting lobby for busy times. They have 22 staff members for a week.

STYLE OF BUSINESS:

It has both takeaway and restaurant style of business, where waiters deliver the food on the table.

TYPE OF OWNERSHIP:

It is an international chain restaurant. It is owned by YUM, which also owns other chain restaurants like KFC. It is a franchise.

FACILITIES:

It only provides basic facilities of a restaurant. Like takeaway service, waiters etc. It doesn't have a parking facility.

ABILITY TO EXPAND:

It is a chain restaurant that is why they cannot expand its product in this restaurant , but as a whole chain they continue changing and expanding their products, like

  • Different dough's
  • Introduction of pastas
  • Different deserts

TYPE OF CUSTOMERS:

Because it is located in the town centre of Newcastle, that is why it gets all sorts of customers which include families, couples, youths, elderly people etc.

COMPETITIORS:

Main competitors for pizza hut are the other restaurants and takeaways in the area.

The main competitors for pizza hut are

  • Pizza express
  • KFC
  • MC Donald's
  • Burger king

If we just compare it with other known pizza brands, than the competitors can be

  • Dominos
  • Pizza express
  • Papa John's pizza

§ NON-COMMERCIAL SECTOR OUTLETS

SHAHI CATERING SERVICES

This is a catering service located in killingworth Newcastle. It was established in 1984. They provide asian halal food for all major events like

  • Weddings
  • Engagements
  • Birthdays
  • Outdoor catering
  • Corporate functions

LOCATION

Their unit is located in killingworth , Newcastle.

Address:

Unit 16, planet place, George Stephenson industrial estate,

Killingworth, Newcastle upon tyne,

Ne12 6re

SIZE

They can arrange big functions where they can provide facilities for up to 1000 people. They have 7 regular staff members and they hire more members if needed.

STYLE OF BUSINESS

Their style of business is a bit different from other food providers. They operate from their food unit with advance bookings. They do not have a any takeaway or any outlet.

TYPE OF OWNERSHIP

It is a private catering service, opened in 1984 by MR Khalid Bhatti and his wife. They both have 50/50 share in it. They don't have any other branch.

FACILITIES

Their only provide food and beverage on special occasions with waiter service. Their food is traditional asian food.

ABILITY TO EXPAND

They are a private catering service, so they can always expand their facilities & products according to the needs of their customers, like providing more staff members, providing more food variety etc.

TYPE OF CUSTOMERS

Their main customer is asian community. But they also provide facilities for business functions in north east England.

COMPETITORS

Their main competitors are the other asian food caterers in north east England. Some of the are given below

  • Punjab catering services
  • Nadeem foods
  • Madina foods
  • Halal foods

FUSION RESTAURANT

Fusion is a take away restaurant located in Northumbria university campus.

SIZE

It is a small size restaurant, it has 13 tables and a sitting capacity of around 60 people. It has 8 staff members.

LOCATION

It is located in Newcastle college sandyford campus. It is in the town centre of Newcastle upon tyne.

Address:

Sandyford Road Campus, Sandyford Road,
NEWCASTLE UPON TYNE, NE1 8QE

STYLE OF BUSINESS

It has the slightly different style of business than other hospitality providers. It comes in non-commercial sector category, the main aim of this restaurant is to provide reasonable priced food for students.

TYPE OF OWNERSHIP

It is owned by Newcastle college which also owns some other restaurants like Chefs academy, Cafe it, space bar and Bistro.

RANGE OF FACILITIES

It has only the basic restaurant facilities like takeaway service and waiter service.

ABILITY TO EXPAND

Fusion have already expanded their services once, due to high demand of fusion now they have provided extra sitting space in the university cafe.

TYPE OF CUSTOMERS

They usually have internal customers like students and teachers, but sometimes they also get some external customers.

SPACE BAR

Space bar is another one of the hospitality services provided by Newcastle college. it is only for people who are over 18 years old.

LOCATION

It is located in rye hill campus of Newcastle college, which is only 10 minutes walk to Newcastle town centre.

FACILITIES

They provide a lounge area with bar, they usually have parties during weekends with live music. There are different bands and dj's performing in space bar. They have a sub category on the ground floor called CAFE IT where students can use internet while enjoying a snack. They also have a pool table , plasma screens and big projector showing sky sports.

TYPE OF FOOD

In the upper floor they have a licensed bar with many kind of drinks. They also have hot food such as hotdogs, sandwiches. Downstairs they have snacks & coffee.

TYPE OF OWNERSHIP

It is owned by Newcastle college which owns several other cafe's and restaurants in the college campus.

SIZE

It has a normal size lounge with the capacity of 400 people upstairs and a capacity of 100 people downstairs.

STYLE OF BUSINESS

It is basically a self service, it comes in the non-commercial sector. Its aim is to provide food and entertainment to students at a low cost. their prices are usually low, some of their prices are given below:

Pints £2.00
Shot & Mixer £1.60
Double up for an extra £1.00
Wine from £2.20
VK £1.90
JAEGARBOMBS £2.50
Glitter bombs £2.50
Cocktails from £2.20

ABILITY TO EXPAND

Space bar has an ability to expand its services according to the needs of the occasion, such as using cafe it for more space, providing more food varieties.

TYPE OF CUSTOMERS

They only have internal customers like students and teachers. There is a age restriction for space bar, only over 18's are allowed in it.

ASSESSMENT & CONCLUSION

Above were six different types of hospitality outlets , they were just an example to show the size and diversity of the hospitality industry. This shows how versatile the hospitality industry is. We discussed from 4 star luxury hotels to college cafeteria, they all had different styles, methods and facilities.

Hospitality is a huge industry with thousands of hotels, restaurants and bars all over the world. The hospitality industry has always been dominated by the famous brands. For example in the case of Hilton hotel, Hilton is one of the most famous hotel brands in not only UK but the entire world. People all over the world recognise Hilton hotel, so whenever they have to stay in a hotel , they prefer the famous brands like Hilton. There are many other luxury hotels as well in united kingdom but people tend to prefer the famous chain hotels. There are several different reasons for this, some of them are given below:

§ Standardised

§ Famous

§ Status

§ Satisfaction

§ Trusted quality

Brands dominate the hospitality industry in the same way as the clothing, footwear and perfume brands dominate the market.

If we take the case of pizza hut we have the same brand dominance. Pizza hut dominates almost all other pizza brands in the world. People prefer pizza hut over all other pizza restaurants and takeaways. The most important reason for that is, all these famous chain hotels & restaurants have the same standards all over the world, therefore in this massive industry, brand dominance is a key factor.

Another thing we noticed in the above hospitality outlets was their scale and diversity. Scale and diversity is a very important factor in the industry, it has a huge impact on the products and the services offered by the organisations. In most cases, Bigger the organisation better their services. That is why the hospitality outlets are usually graded due to their scale and services they offer. They get better grading for their size and versatility. Like the Hilton hotel offers many services therefore it is graded as four start hotel. Similarly EXPRESS doesn't offer as many services as Hilton hotel, therefore it is graded as 3 star hotel. That is why we have such differences in the standards of quality and prices. People expect more from bigger hospitality organisations that is why they pay more prices to get their desired level of service from bigger hotels. They can't expect a lot from small hospitality outlets like fusion and space bar because they are not as versatile and standardised as bigger outlets like Marriott and Hilton.

So from above it is concluded that although hospitality is a massive industry, it is dominated by bigger hospitality organisations like Marriott , Pizza hut, Hilton etc. And the size and diversity has a big part in it. Larger the scale and diversity, better the facilities and services.


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