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    the uk hospitality industry

    1.1 The structure of the

    hospitality industryThe hospitality industry in the UK is a broad and variedindustry ranging rom single-person organisations to

    worldwide corporations. People do a total o more than 80

    dierent jobs in the industry.

    f The hospitality industry is not just hotels and restaurants.There are 12 other dierent sectors o the industry:

    Hospitality: kindness inwelcoming guests or strangers

    key terms

    These dierent industries will be looked at urther in uturechapters in this book.

    d-z Sally has her own burger van. She runs it on her own. Shebuys and cooks all the ood and cleans the van at the end othe day.

    Adil works or McDonalds as a manager. He is responsibleor the daily running o the outlet and has many jobs, suchas organising sta training, quality control and customercomplaints.

    Around 80 per cent o hospitality operations employ less thanve people. This means that hospitality is a great industryor people who want to set up their own business whatever

    it might be, as well as or people who want to progress theircareer in a multinational corporation.

    Sectors of the

    hospitality industry

    Events

    Travel services

    Tourist services

    Visitorattractions

    Self catering

    Hospitalityservices Pubs, bars

    and nightclubs

    Gambling

    Contractcatering

    Membershipclubs

    Hostels

    Holiday parks

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    1.2 Hospitalitys contribution

    to the UK economy

    Service sector: part of theindustry or business which dealswith the marketing and sellingof services rather than physical

    goods.

    key terms

    Turnover of different industry sectors.

    The hospitality industry makes a major contribution to the

    UK economy and employs a large percentage o people.

    In some parts o the UK, the industry is the main source o

    income and employment.

    h In the UK, there are over 180,000 hospitality and leisureestablishments and these employ more than 2 million people.

    Thats about 7 per cent o the UK workorce.

    tThe hospitality industrys turnover in 2006 was65 billion, compared to 21 billion in educationand 5 billion in agriculture and shing.

    Nearlyhalfamillionpeopleareemployedin restaurants.

    400,000workintheservicesector(e.g.hospitals) o the industry.

    Inthissector,twothirdsoftheworkersarewomen.

    Inrestaurants,thesamenumberofmenand women work there.

    Overall,theindustryemploysayoungworkforcewith over a third o sta being under 25.

    Restaurantsinparticularhaveaveryyoungworkorce.

    Intheservicesector,mostworkersareaged35to 55.

    nb bFrom 1995 to 2005, the number o restaurantsgrewfrom46,000to63,000.Atthesametime,thenumberofhotels decreased rom 12,500 to 10,000. The number o pubsincreasedfrom46,000to49,000andthenumberofhostelsincreasedby300percentfrom50to150!

    f The most number o meals sold by ar is in the quick service

    sector. However, the revenue received is not much more thanthat received by hotels and restaurants.

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    How important is the hospitalityindustry to your local area?How many people are employedby the industry and how muchincome does it generate?

    find out

    r About 7 per cent o the UK workorce is employed by the

    hospitality industry. Hospitality income is 2.5 per cent o the UKstotal income. In some parts o the UK, however, the hospitalityindustry is ar more important than these gures suggest.

    hospitality and catering

    1 Discuss why the revenue received

    by the quick service sector isnot much more than received byhotels and restaurants.

    2 Comment on the difference inthe number of establishmentsshown in the graphs and whythis might be.

    3 Look at the importance of theindustry compared to otherindustires what surprised youabout these statistics?

    aCtivity

    The Isles o Scilly

    Tourism is estimated to account for 85 per cent of the islands income

    and 63 per cent of employment.

    Most hospitality businesses, except for a few hotels, are small

    enterprises employing fewer than four people. Many are family run.

    Because of the seasonality of tourism, many jobs are seasonal andpart-time as work cannot be guaranteed throughout the year. Some

    islanders take up other temporary jobs out of season to make up for

    this. Many seasonal workers are brought to the island just for summer.

    The Isle o Wight

    The Isle of Wight has a workforce of just under 50,000 people.

    Twenty-ve per cent of these work in the hospitality industry. Two and

    a half million people visit the island for day trips and longer holidays.

    Hospitality and tourism is therefore an important part of the economy.

    The city o Preston

    In the north-west region of England over 200,000 people (6 percent of the regional workforce) are employed in the hospitality and

    tourism industry. That is just below the national average, despite the

    popular resort of Blackpool being part of the region.

    In the city of Preston, over 5,000 people are employed in the industry.

    More important is the 30 per cent increase in employment in this

    industry over the past 10 years. For some sectors, such as restaurants

    and cafs, this is closer to a 50 per cent increase.

    If the percentage of people taking holidays in this country fell by 20

    per cent, because of the poor weather for several summers, what

    would the effect be on each of these areas?

    Case study

    1 What percentage of theworkforce is employed by thehospitality industry?

    2 How many people are employedin the restaurant sector?

    3 What sectors had a reductionin establishments from 1995 to2005?

    4 What percentage of thepopulation are employed by thehospitality sector in a) The Isleof Wight b) The isles of Scilly?

    CheCk your knowledge

    Food and drinks sales per sector

    Number of meals served

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    1.3 Links with other industries

    The Premier Inn at Trafford in

    Manchester is just 100 metres

    from the Manchester United

    Football stadium. The hotel has

    special match-night packages

    for residents and non-residents

    including champagne on arrivalwith a meal and the use of the

    bar and car park for an hour

    after the match.

    Case study

    If your hotel was next to aracecourse, what special package

    could you offer to race-goers?

    aCtivity

    You can see that the industry has developed because o thedevelopment o other industries. Manuacturing meant people

    neededtogetawayonholidayfromcities.Railwaysandairplanes meant easier and cheaper travel. The way businessesdeveloped rom small to national and, oten, multinationalcompanies meant that more people travelled on business.

    The hospitality industry eeds o other industries, but otherindustries eed o hospitality operations too.

    hw , v

    hThe hospitality industry eeds o leisure, travel and tourismbecause, as more people have disposable income to spend andmore ree time, the demand or holiday destinations increases.

    tMore and more acilities are needed along and around thetravel routes that people use to get to these destinations.

    lThe wider leisure industry, such as participating in or

    watching sport or going to the theatre, also increases the needor hospitality acilities.

    The hospitality industry is constantly developing and changing in its

    structure, client groups and services. These changes are infuenced byother industries but the industry itsel also has an infuence.

    16th century:Holiday meantreligious estival.

    17th18th century:Coaching inns developednext to mail coach routes.Lodging houses likeguest houses were usedby salesmen and the richrented houses to stay in.

    1909:The frst YHA youthhostel opened inGermany so youngpeople living in largeindustrial cities couldenjoy the countryside.

    1920s:Air travel becomepopular 10,000passengers orEuropean routes.

    Early 19th century:Ater the Industrial Revolution, withmore cramped and unhealthy livingconditions in cities, people wantedto escape to the seaside/country.Demand or accommodation andrestaurants increased, especiallywhen people had more leisure time.

    14th century:Monasteries wereused by pilgrims andtravellers, countryhouses by thearistocracy.

    Mid-18th century:The development o the railwaysmeant that more people travelled.Station hotels developed.

    16th17th century:Spa towns withrestorative waters,such as Bath,became popular.

    1911:The frst Indianrestaurantopened in the UK.

    1906:First ree school mealsmeant jobs or cooks toproduce the meals

    t The timeline gives you examples o how the hospitalityindustry has developed.

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    Research the history of aparticular sector of the industry,for example, Lyons tea rooms.

    find out

    hospitality and catering

    1 Why did the IndustrialRevolution mean a biggerdemand for holidayaccommodation?

    2 What is the connectionbetween the development ofthe airplane and an increase inhospitality facilities?

    3 How would a new hotelin a town affect the localshmonger, the poultry farm

    up the road and the orist?

    CheCk your knowledge

    iChanges in manuacturing and industry also create demandor the hospitality industry. Many industrial organisationshave increased in size and many national companies are beingtaken over by multinational corporations. This means that thedemand or accommodation and meeting rooms increases.

    hw jb The simple opening o a sh and chip shop will support otherindustries:

    Localshandpotatosuppliersgetmorebusinessandtakeon more sta.

    Localfoodpackagingsuppliergetsmorebusiness.

    Maintenancecompanyfordeep-fatfryersgetanother

    contract which means more jobs.

    Ifa4-star,200-bedhotelwithawiderangeoffacilitiesopens,the impact and support is even greater:

    Theswimmingpoolneedstwolifeguards.

    Thespaneedsfourbeautytherapistsandtwohairdressers.

    Thehotelhasacontractwithalocallaundrycompanytoclean its bedding and towels two jobs created.

    Thehotelhasacontinuousrefurbishmentprogrammethatemploys two decorators ull- time.

    Demandforfoodanddrinksupplieshelpsmanylocalcompanies.

    1936:The frst Butlins Holidaycentre opened atSkegness or 100 people.

    1948:The National Health Servicebegan, which meant thedevelopment o a nationalservice in hospital meals.

    1959:The frst motorway servicesopened at Watord gap whenthe M1 opened. Sandwicheswere served in a shed.

    1960s1970s:Package holidays abroadbecame more popularand started the declinein UK seaside resorts.

    2007:Japanese capsule hotels Yotels that sell cabin space bythe hour opened at Heathrowand Gatwick airports.

    1960s:The gaming act o 1960 (and the declinein cinema attendance because o theincrease in popularity o TV) meant thatmany Bingo halls opened in old cinemabuildings (now declining because o thesmoking ban and online bingo).

    1970s:The frst Japaneserestaurantsopened in the UK.

    1980s:Boutiquehotels werecreated.

    1974:The frstMacDonalds outletopened in the UK.

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    1.4 What services the industry

    provides and who it provides it forChapter 1.1 has identied the structure o the hospitality

    industry. This section looks at why this structure is so

    wide and diverse in what it provides and who it provides

    it or.

    d , Lifewouldbeveryboringifwewereallthesame.Imagine

    every restaurant in the whole country only selling the samedisheverydayoftheyear!

    List the range of clients andthe type of event that each

    establishment could cater for.

    aCtivity

    The Monkhouse Granary in

    Shropshire is a small conference

    centre converted out of

    redundant farm buildings on a

    working farm. It is a Monday

    to Friday operation, run by the

    farmers wife. The Granary has

    built up a local reputation as

    an excellent conference venue

    for up to 30 people. It provides

    personal service and uses local

    contract caterers to provide a

    choice of lunch options from

    nger buffets to hot dishes.

    Case study

    When I go out for a meal,I always have the steakand kidney pie with chipsand chocolate ice cream.

    more than 10.

    When I stay in a hotel,I have to have a choiceof pillows and a dressing

    gown with slippers.Oh, and sky TV with all the

    sport channels.

    Wouldnt it be boring if we all wanted the same thing?

    scThe industry needs to provide various services or thedierent individuals that exist in the world.

    The industry is wide and diverse. Dierent types o bedroomaccommodation are available, rom shared bunk bed roomsto luxury. Food ranges rom the sandwich on a train journeyto a eight- course gourmet taster meal at a Michelin-starrestaurant. Drink ranges rom a paper cup o coee at anairport to a cocktail served by a skilled cocktail bartender.

    Some establishments target a distinct client and service.

    Others oer a wider range o services to several clientgroups.

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    cPeoples needs dont stay the same. Needs changedepending on whether people are on a business or leisuretrip and whether they are on their own or in a group.Someone on their own will want a quick meal at a tableon their own. Groups preer round tables or betterconversation. How does a restaurant cater or bothtypes o client?

    l v b!

    hospitality and catering

    1 Identify three specic clientgroups that might book into arestaurant.

    2 Explain what type of client willbook a hostel in a city.

    3 Identify the type of event a100-year-old lady might want

    to celebrate her birthday.

    CheCk your knowledge

    The Barton Grange Hotel in Lancashire has one large banqueting

    suite used for conferences during the week and parties and weddings

    at the weekend. The room has sliding doors so it can be divided

    into several smaller rooms and has a separate entrance to the main

    hotel. There is a conference manager and a banqueting manager.

    They look after the two different types of business but use the same

    accommodation and staff. The kitchen has a separate service area for

    the banqueting suite but chefs can work in this area and in the main

    restaurant kitchen on the same day. The hotel also has two distinct

    restaurants: a 30-seater ne dining restaurant open evenings only

    and a less formal restaurant where snacks and full meals can be eaten

    all day. This restaurant offers a childrens menu.

    Case study

    Study a local hospitalityestablishment. Identify the

    different services it offers and thedifferent client groups it targets.

    aCtivity

    Plan a Christmas party fora group of thirty 7-year-oldchildren and a group of thirty 70-year-old adults. Plan the menuand entertainment. Compare thedifferences in the food offeredand how it will be served, as wellas the entertainment.

    aCtivity

    Services: provision of acommodity something materialsuch as a meal or a drink, spacesuch as a room, or somethingless concrete (an experience, forexample, the welcome receivedat a hotel).

    c : a particular typeof customer (leisure or businesscustomers, individuals or groups,different ages).

    key terms

    A celebration or party means dierent things to people at timeso lie so dierent establishments and services are needed.

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    1.5 Accommodation facilities

    The industry provides a range o accommodation services.Accommodation doesnt just mean bedrooms. It also means

    public areas such as unction and conerence rooms. These

    rooms have the same day to day needs as bedrooms and

    they need to be serviced in the same way: cleaned and

    set up or new customers tea, coee and snacks need

    replenishing, as well as toiletries or stationary.

    s

    The provision o accommodation acilities is a very importantpartoftheindustryandcovers4outofthe14sectorsoftheindustry:

    hotels holidaycentresandselfcatering

    hostels someMembershipclubs.

    hThe hotel sector is the largest sector, with a wide range oestablishments rom one- or two- bedded guest houses to 5-starluxury300-bedhotels.Thissectorcanbesubdividedinto:

    Hotels5-startolowcost,oftenservicedtoahighlevel,with restaurants and bars. They include independent,owner run, large chains and independent consortia.

    Motelsorlodgesusuallynearmotorwaysormajorroadsand also now in or near airports. They provide basic low-cost accommodation and are semi-serviced (catering isnearby or trayed and packaged).

    GuesthousesorB&Bsusuallyjustafewrooms,usuallylow cost but some are now boutique-style luxury guesthouses. These are serviced with a limited range o catering breakast only.

    Yotels are a group of Japanese-

    inspired cabins conveniently

    situated inside Heathrow and

    Gatwick airports.

    Yotel is similar to cruise liners

    in one sense the galley is ahub of activity for the crew

    who cater to guests every need.

    Guests are free to relax in their

    cabins, fully tted with all the

    mod-cons expected of a 4-star

    hotel room.

    What kind of people might use

    a Yotel?.

    Case study

    Consortium: an associationor combination of hotels andinvestors, for the purpose ofengaging in a joint venture, such

    as marketing and taking bookings.

    key terms

    Consortiums such as Hilton Hotels, have

    become major players in the hotel market.

    1 Accor, Hilton, Ramada, Holiday Inn, Premier Travel Inn, Radisson,Hotel du Vin, Jury Inn, Swallow and Marriott are some of the hotelchains in the UK. Research one of these and nd out about theirstandards. Present your ndings.

    2 Many hotels are still individually owned. These hotels often join aconsortia for marketing purposes. Find out about one consortia and the

    criteria needed to join. Go to www.slh.com or www.britishnest.co.uk.

    find out

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    1 Research the history of theYMCA or the YHA.

    2 What type of holiday centresexist in your region.

    find out

    hospitality and catering

    1 Where will you nd a motel?

    2 Do most guesthouses servedinner?

    3 What are the advantages anddisadvantages of using self-

    catering accommodation?

    CheCk your knowledge

    hThissectorhasonly450establishmentsintheUKbutisgrowingannually. Hostels range rom YHA barns in elds to converted

    houses or purpose-built buildings, such as the YHA in Manchester.Most accommodation in hostels is bunk beds with our to sixpeople on average in a room. Facilities are usually shared. Serviceis minimal, oten clients make up their own beds. Catering isusually provided but sometimes kitchens are available.

    Some hostels are situated in an area that can oer a range ooutdoor activities, such as canoeing, rock climbing and walking.

    sc ccThis could also be included under hostels or even small

    hotels. Social accommodation includes student housing either sel-catering or with meals, and residential homesor the elderly, which have a high level o service both orcleaning and the provision o meals.

    h cHoliday centres are oten a mixture o serviced and sel-catering accommodation. They range rom low cost, such asa caravan park, to luxury, such as one with log cabins all withindividual hot tubs. There are usually lots o leisure acilitiesin the centre, such as a swimming pool and play park.

    s-cThis is unserviced accommodation where no catering isprovided. This accommodation is usually let or ull weeks,although the industry is becoming more fexible, withweekend and midweek lets available.

    Aparthotels are increasing in popularity in cities, where dailylets are available.

    mbp cb

    Thissectorhasaveryoldtradition,especiallyinLondon.Some clubs do not provide accommodation but some do. TheUnion Jack Club or ex-servicemen is an example o one thatruns like a hotel or its members.

    fc ccThese provide large-scale service, accommodating largenumbers at any one time.

    This type o accommodation can be in a purpose-builtbuilding with a wide range o rooms or part o a hotels

    business. It can also be outside catering, such as a marqueein a garden or eld.

    There is a wide range of youth hostels

    available for use in this country.

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    1.6 Eating and drinking establishments

    Fast-ood restaurant Ethnic restaurant e.g. Italian

    Small choice on menu

    Cheap price

    Counter service from operators in a casual uniform

    Food is packaged to keep warm

    Food is precooked and ready when ordered

    Plastic seating. No music. Hard ooring. Plastic tables.

    Wide choice on menu

    Medium price

    Waiters in smart uniform serve you at the table

    Food is well presented on the plate

    A wait for freshly cooked dishes

    Music and carpet with comfortable seating and tablecloth

    Restaurants and bars are the two sectors in the industrythat employ the most people 850,000 out o a total 2

    million workers nearly hal o all workers in the industry.

    These are also the sectors that have the most single

    establishments (rather than chains such as Starbucks):

    120,000.

    Restaurantsandbarscaninfactoperateinall14sectorsoftheindustry. You will usually nd a bar and restaurant in a casinoandatleastafast-foodoutletinabingohall.Restaurantsexist in most tourist attractions and some orm o catering is

    available in hostels.

    Providing ood and drink is as varied as the paper cup ocoffeeboughtonthetraintoLondontoaneight-coursegourmet taster meal at the Michelin-starred restaurant in thenext town.

    rLikeaccommodation,eatingestablishmentscanalsobesubdivided into:

    Takeaways (sh and chip shops, sandwich bars and ethnicoutlets such as kebab shops) very quick service oftennow delivered to your home.

    Fast-food outlets:in a specialised environment especially kitchen- very quick service.

    Popular catering(includes cas and coee shopsincluding those ound in retail stores). Cafs focus on food,coffee shops on beverages.

    Mainstream catering: ethnic and themed usuallymedium to high prices with good levels of service.

    Fine dining: high levels of skilled service both in the

    kitchen and front of house.Sometimes it is easy to compare two dierent types o eatingestablishments to recognise the dierent eating experiencethey provide:

    Cafes brands, such as Starbucks have

    helped make popular catering a growth

    industry.

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    hospitality and catering

    1 What is the difference betweena caf and a coffee shop?

    2 What kind of customers willbe attracted to a ne-diningrestaurant?

    3 Why have pubs had to

    diversify?

    CheCk your knowledge

    Research on the internet for ane-dining menu and a fast-foodmenu. Compare the range ofdishes offered. Discuss how theyare described, price, nutritionand how many dishes are

    offered. Write a conclusion to theactivity explaining what you havelearned and what image each ofthe menus gives.

    aCtivity

    pb b

    examiners tiP

    You will often get questionsabout comparisons betweendifferent establishments suchas a hotel and guesthouse

    and a fast-food outlet and arestaurant.

    The pub and bar industry is a high prot-margin industry. The markup on drinks is often 200 per cent the same as food, but there is nolabour cost on preparing drinks! Wine bought in a supermarket costsfrom 3 wine in a bar or restaurant costs from 10.

    Cola bought in a supermarket costs 50p cola bought in a bar costs 2.50.

    Look at a menu form a wine baror cocktail bar. Create somenew smoothies or non-alcoholic

    cocktails for these menus.

    try this

    So to generalise you could dene eating establishments as:

    Lowcost Highcost

    Small choice on menu Wide choice

    Quick service o ood Slow service o ood (cooked to order)

    Sel-service High level o serviceBasicambience Highlevelofambience

    The traditional pub has a long history in the UK but around36aweekclosebecauseofchangesinsociety.Theyhave

    particularly suered rom the eect o stricter enorcemento drink-driving laws and the smoking ban. So, or manyyears, pubs and bars have had to diversiy to attract a wider ordierent client group. Some examples o this diversication are:

    Sportsbars:withlarge-screenTVsshowinglivesport,especially ootball matches.

    Cocktailbars:havesophisticateddcorandacocktailmenu. Oten doormen enorce a dress code or customers,such as no trainers or jeans.

    Winebars:alittlelikecontinentalcoffeebars.Theyoffera

    wider choice o drinks than the traditional pub, such as teasand coees. This type o bar attracts a wider clientele, suchas single women, because o the ambience created.

    Family-friendlypubs:withanoutsideplaygroundandsometimes one inside. Food is particularly important orthese pubs.