Evaluation of the Queens Head Hotel Strategy - Essay Example

Evaluation of the Queens Head Hotel Strategy Introduction This report is based on a discussion on the research findings I obtained as a Catering Consultant when I was reviewing The Queens Head hotel. The report will identify six key strengths and weaknesses of food and beverage operation. The report will critically evaluate the restaurant, finding out if Cullum made any money after commenting on the trading position, sales, and average spend per head, and wages. The report will discuss how the figures compare to the interview conducted considering the budgeting position. Future recommendations for food and beverage operation will be provided and then advice Cullum about converting the other hotel restaurants in the group to a Giuseppe’s using the situation analysis as well as academic references to support the findings. Strengths and weaknesses of food and beverage operation Queen Head generates high revenue from providing food and beverage services to their customers. O’fallon and Rutherford (2011) noted that food and beverage is a term that is used in the hospitality industry to describe items in banquets and outside catering services. The department of food and beverage consists of kitchens, internal and external catering, restaurants, room service, and internal and external banqueting. The hotel requires a huge quantity of various staff members to cater for the needs and services of the customers outside and inside the hotel in order to facilitate smooth running of the business. Strengths Mukherjee (2006) noted that food and beverage operation is opportunistic as the managers of the businesses always find ways to make sales by creating fairer prices to improve the business efficiency. Ability to handle staff problems with skills and courage Trouble-shooter Individuals that deal with food and beverage operations are quick to find the root cause of the problems and fix them to avoid losses. There is increased demand for food and beverages especially those that are located near busy towns and transport facilities such as roads, rail stations, and airports (Gillespie, 2001). Developing a positive image on Facebook and other social media activities strengthens the food and beverage operations, as they are able to target many customers especially the middle aged who frequently need to meet friends and hang out in the best restaurants. Online services attract many customers as individuals can order food and beverages from the internet. Weaknesses Increased competition from other businesses Lack of managers with experience Government regulations Flat profits and sales Insufficient labour force Lack of finances to buy more tools and materials to be used in the kitchen and other departments Queens Head restaurant Giles-Gash family who operate about ten ventures in Southwestern part of England own Queens Head hotel. The hotel has a 50-cover restaurant, 50 bedrooms, a leisure complex, and a bar. Cullum is the younger son of the Giles-Gash who joined the business after completing his hospitality degree. Strianese et al. (2012) noted that the hotel provides a spectacular setting with its 16th Century fireplaces and bespoke chandeliers. They have a live performance venue where their customers can dance all night during the DJ nights. Cullum made a lot of money after taking over the Giuseppe’s businesses as lots of profits were made during the first few months when the restaurant was new and it developed loyal customers during that period hence hope for more productivity. Trading position Hill et al. (2010) defined trading position as the amount of securities borrowed or owned by dealers or individuals. Queens Heads mainly deals with the hotel and restaurant business where they provide different traditional British cuisines to their customers and hold various events such as weddings and funeral teas. From the case study during the first quarter of trading, the enterprise remained at a stable price of approximately 12,000 pounds a week but decreased because the novelty value of having a new restaurant in the area wore off. Sales The hotel attracts many customers because of its location near a rail station, airport, and road. This means that their volume of sales is high because they have high demand from the frequent customers and tourists who come to see the beaches and other attractions. More sales are contributed from the leisure centre where they offer membership to the gym and swimming pool. The customers remained loyal even after the novelty value of new business wore off hence making the sales consistent. A target of 15% on sales was set with price increases of 5% for the year of operation (2013-2014). Average spend per head The average food spend per head is less than 10 pounds per person and those who take drinks spend from 3.80 per bottle of beer and 14.50 pounds per bottle for wine. The food gross profit kept on increasing over the months. Wages According to Henry (2001) wages are the finances paid to the staff members and the all other employees. Cullum has developed good relationships with his staff members hence workers at Queens Head are paid according to their positions and services in the business. The restaurant is at a stable position in the market as they have loyal customers and adapt to the frequent changes in the market by improving their menus and ensuring fair prices for their products and services in order to attract more customers. Comparing the facts to interview According to the interview conducted with Cullum, he believes that the restaurant business is busier during evening meals and lunches because of the couples that spend above average and the office workers. This is a fact because those are the main meals of the day and most restaurants have many customers at those periods. Cullum believes that it is not essential to be in the centre of the city as good food and services would attract trade but the fact is being in the city is good for the restaurant because most customers would be able to access the services at the restaurant easily (Koester,2012). Cullums is planning to borrow ideas from his competitors, which is risky for the business; he needs to come up with new ideas that are better than other businesses. On the current budgeting position, Cullum stated that he is reviewing ways to save money on the operational side of the restaurant. He is planning to avoid using the three-decker pizza oven that uses a lot of electricity in the process minimizing the costs involved. Cullum is planning to develop a unique level of personal service and food quality. He is planning to improve their restaurant menus to be a step ahead of their competitors. After utilizing the kitchen equipments, Cullum is planning to introduce office and home delivery of pizzas hence increasing profits. Future recommendations I would recommend the food and beverage operation in future to do more research on what their consumers enjoy eating and drinking and build on that to come up with unique menus hence being gaining competitive advantages. The hotel needs to market itself by offering discounts and special menus for their customers. This is supported by the marketing theory, which states that increased product awareness amongst the target customers lead to more sales as they are convinced to purchase the products and services (O’fallon and Rutherford (2011). The managers need to be conversant with new online services and use them to become familiar with the media territory hence getting ideas on what is possible for the business and how to implement new strategies (Quinn, 2013). The managers need to be interested in knowing more about all aspects of their business for instance accounts and not focus on cooking and serving customers only. According to Chen (2010), it important for the hotels to create online profiles on Facebook that is positive and clean, a LinkedIn profile that displays success and experience and do regular Google check to find out what customers are saying about the business to know the areas to improve. SERVQUAL model Hill et al. (2010) stated that there are seven dimensions in SERVQUAL model that are used in providing services hospitality industries that emphasizes: Competence and courtesy of individuals Transactions and communication Tangibles Knowledge and understanding of customers Accuracy and speed of services Ability to solve problems Accuracy in hotel reservations Koester (2012) stated that the SERVQUAL model enables the managers in hospitality industries to attract more customers in the hotel because of guest satisfaction. The model allows the consumers to assess the quality of services based on the five dimensions of service that include reliabity, tangibles, assurance, responsiveness, and empathy. Advice for Cullum I would advise Cullum to wait a little longer before converting the other hotel restaurants in the group to a Giuseppe’s because the other hotels are already established and have their own existing customers. Giuseppe’s need to have a firm foundation and better strategies to operate its various activities together with the other restaurants as explained in the situation analysis ( Strianese et al.2012). Situation analysis Strianese et al. (2012) defined the situation analysis as the process in which the business identifies their weaknesses and strengths as they relate to threats and external opportunities. This analysis enables the business to choose a position in various environments based on known facts. Guiseppes is still in the process of determining their position in the environment and is challenged by other competitors doing the same restaurant business. The manager needs to establish ways to be unique in the market in order to maintain customer loyalty after converting the other restaurants. Koester (2012) stated that every enterprise has to consider its external environment influences and internal weaknesses and strengths that affect it before developing an efficient marketing plan. Conclusion Queens Head is a restaurant that is owned by Giles-Gash family and is based in England. The hotel attracts many customers because of its close proximity to the various means of transport. Cullum the younger son in the family is in charge of Giuseppe’s restaurant, which he is doing his best to manage. The food and beverage operations are profitable when the managers have the skills to handle various problems that affect the employees and the customers. The main challenge in the business is strong competition from similar businesses and lack of finances to expand the business in other areas. References Chen, J. S. 2010. Advances in hospitality and leisure. . volume 6 volume 6. Bingley: Emerald. Cousins, J. A., Foskett, D., and Pennington, A. (2011). Food and beverage management: for the hospitality, tourism and event industries. Woodeaton, Oxford, Goodfellow Publishers. Gillespie, C. 2001. Food & beverage management mediabase. Glasgow: Scottish Hotel School. Henry, J. 2001. Creative management. London [u.a.]: SAGE. Hill, Kathleen, and Barbara S. 2010. Career opportunities in the food and beverage industry. New York: Ferguson. Koester, A. 2012. Business advantage theory, practice, skills B1 Student's book with DVD / Almut Koester ... B1 Student's book with DVD / Almut Koester. Cambridge: Cambridge Univ. Press ˜[u.a.]œ. Mukherjee, A. (2006). Food and beverage management. Delhi, Isha Books. O'fallon, M. J., and Rutherford, D. G. (2011). Hotel management and operations. Hoboken,N.J.: John Wiley and Sons,Inc. Quinn, B. 2013. Key concepts in event management. London: SAGE. Strianese, Anthony J., and Pamela P. 2012. Math principles for food service occupations.Clifton Park, NY: Delmar, Cengage Learning. Read More