Although countries around the world have exchanged goods and services with on another for many centuries, unprecedented opportunities for companies to expand their business globally were ushered in during the last few decades.
Globalization
Globalization continues to impact the hospitality industry. U.S. hotel and restaurant chains are establishing an international presence to serve U.S. travelers and meet the demand abroad for U.S. product Daniel Larkin, former managing director of the European practice of Price water house Coopers, said that "it will be increasingly easier for someone who has a favorite hotel brand or brands to count on it being there whenever they travel around Europe. It'll be at least ten years before Europe becomes like the U.S.,where you can find a Marriott, Hyatt, or Sheraton wherever you go, but the trend is very clear."
Globalization is a two-way street. InterContinental Hotels Group, based in Great Britain, and Accor Hotels, Europe's largest chain (bases in France) have properties throughout the world, including the United States.
The restaurant industry runs the gamut from gourmet restaurants to hot dog stands. The National Restaurant Association (NRA) estimated 2009 food services sales $566 billion, and the industry employed 13 million people in 945,000 establishments. The overall impact of the industry on the U.S. economy exceed $1.5 trillion. Restaurant industry sales equal four percent of the U.S. gross domestic product.The percentage of the food dollar spent away from home is 48 percent. On a typical day in the United States, 130 million individuals are patrons of food service establishments.
The restaurant industry is truly an equal opportunity employer. It employs more minority managers than any other industry:57 percent are woman, 14 percent are African-American, and 16 percent are Hispanic. Someone entering the food service field might work for a small, independent operator who runs a fine-dining restaurant, pizza parlor, or ice cream stand.
Restaurant Industry
Restaurant Industry Segment
The restaurant includes many different types of facilities and market. For reporting and other purposes. the industry can be divided into the following segment:
The term marketing mix is used to indicate the integration of several variables to satisfy consumer needs. The task of the marketing manager is to form these variables into a marketing mix that meets the needs of each consumer group or market segment targeted by the property.
What makes up the marketing mix?
The most widely used model of the marketing mix is the familiar "Four P's" set forth by E. J. McCarthy in his classic Basic Marketing. This model can be represented by three concentric circles (see Exhibit ):
The innermost circle contains the focal point of the marketing effort-the consumer.
The middle circle illustrates the marketing mix of product place, promotion, and price (the Four P's ). These are termed controllable variables.
The outer circle identifies uncontrollable variables such as the economic environment, political and legal influences, and the social and cultural environment.
Exhibit Marketing Mix Model
Marketing mix
This Basic marketing mix model for the hospitality industry contains the "Four P's" (product, place, promotion, and price) set forth by E. J. McCarthy in his classic book, Basic Marketing.
IN THE MID-TWENTIETH CENTURY, the typical hotel* (84.4 percent of all properties) was located in a population or trade center, had fewer than fifty rooms, and was independently owned. Only 4.7 percent of all properties belonged to a chain, and there were only two prominent chains-Sheraton and Hilton. Rooms were small,most had no telephone, and a few lacked a private bath.
Hospitality
Beginning in the mid-1950s, however, hotels began to change, driven by changes in the society around them :
Population growth. The population began growing signification, especially in the South, Mountain, and Pacific regions. The population also began shifting. The Sunbelt (especially Florida and Texas) and the western states (especially Colorado, Arizona, Nevada, and California) experienced a tremendous influx of people.
Long life span. Not only did the population grow, it also began to live longer, and a significant number of new household were formed. Many of these new families relocated, moving across the country in record numbers.
Improved incomes. Family incomes improved in the post-World War II economy, and two-income families became more prevalent. After the belt-tightening war years, families suddenly had more money to spend on travel and leisure. It wouldn't be until the 1970s, when inflation began running rampant, that this trend would be curtailed to any great extent.
