THE HOSPITALITY NEWSLETTER FOR EDUCATORS AND STUDENTS
February 2012 Edition
By Professor Raymond Cote (AICPA), Author of Hospitality Accounting Texts
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MY TEXTS
Basic Hotel and Restaurant Accounting:NEW EDITION 2011
A principles and systems text based on the uniform system of accounts for hotels (AHLA) and restaurants (NRA). The text also contains several introductory managerial accounting chapters. Click the HRA DESCRIBED tab at top of this page for more information. This text was recently revised.
Accounting for Hospitality Managers
A managerial accounting and financial management text providing the student with the necessary skills and knowledge to analyze financial information to solve hospitality business problems and achieve profit objectives. Click the AHM DESCRIBED tab at top of this page for more information
NEWS OF GENERAL OF INTEREST
· Loyalty programs for customers are successful. http://www.rmgtmagazine.com/content/loyalty-payoffs.
· Tips for getting a great online reputation. http://smartblogs.com/restaurants/2012/02/15/managing-your-reputation-online-is-a-never-ending-story/
· Michelin Star Restaurants: The Full 2012 List: http://www.hotel-industry.co.uk/2012/01/michelin-star-restaurants/
· More celebrities getting into the restaurant business: http://www.huffingtonpost.com/2012/01/27/celebrity-restaurants_n_1219247.html?ref=small-business
· Reading particular wine labels: http://online.wsj.com/article/SB10001424052970204652904577192523280280332.html?mod=dist_smartbrief
· Surviving seasonal swings: http://www.rmgtmagazine.com/beer-pubs/seasonal-strategies
UNITED STATES NEWS
Restaurant News
· Checkers financial situtastyion is recovering; loyal customers have helped. A few years ago, Tampa-based Checkers closed 200 stores; now it plans to open that many, Checkers merged with archival Rally's in 1999, creating the nation's largest double-drive-through chain, at more than 1,100 locations.
However, in the early 2000s, Checkers overexpansion was detrimental and it reduced its locations to less than 800 locations. Now, privately owned
Checkers is making a strong comeback.http://www2.tbo.com/news/business/2012/feb/05/bznewso1-checkers-jumps-into-new-life-ar-354859/
· Chipotle Mexican Grill expects to open 155–165 new Chipotle locations in 2012. http://www.qsrmagazine.com/news/chipotle-plans-biggest-growth-yet-2012
· McDonald’s USA gets a new contract and remains the Official Quick Service Restaurant of the National Hockey League in the US and in territories where the annual season-opening NHL Premiere Series is held. In addition to commercial interests, a charitable component will once again be included. The NHL’s monetary and in-kind contributions in support of Ronald McDonald House Charities, McDonald’s “Charity of Choice,” and the Ronald McDonald House
Program.
· McDonald's Shamrock Shakes will now be available at all its 14,000 U.S. restaurants for the first time. The mint-flavored concoction was originally formulated in 1970 to celebrate St. Patrick's Day,
· ’Charley’srestaurant chain has been bought by Fidelity National Financial; the nsurer also owns the Ninety Nine and Stoney River chains. The deal priced O’Charley’s at about $213 million.
· Quiznos has sold a 70% interest to a private-equity firm, the Avenue Capital Group, a move that avoids its bankruptcy plus provides a $150 million cash boost. Franchisees look forward to the corporation’s recovery after three years of slowing sales and closing stores.
· Red Robin Gourmet Burgers will open 13 new restaurants and 4 Red Robin’s Burger Works locations in 2012.
· Starbucks is partnering with discount retailer Target Corp. is partnering to establish coffee shops into Target’s 135 Canadian stores.
· Starbucks expanding sales of beer and wine locations. The company first began serving beer and wine at a Seattle store in October 2010; now it will add the beer and wine to the menus of about 25 locations in Atlanta, Southern California and Chicago.
· Starbucks opens first ski-thru location. Squaw Valley USA, a ski resort in California, has opened the world's first ski-in/ski-out Starbucks, customers can get coffee without removing skis or snowboards. onthesnow.com.
· YUM! (Taco Bell, Pizza Hut and KFC) plans to sell more company-owned operations in the U.S. to increase resources for global expansion. One of the plans is to reduce Taco Bell ownership from 23% to 16% during the next two years.
Hotel News
· According to data from STR, the U.S. hotel industry had increases in all three key performance metrics during the week of February 5-11, 2012. In year-over-year comparisons for the week, occupancy was up 2.6 percent to 55.9 percent, average daily rate increased 3.8 percent to US$102.01 and revenue per available room was up 6.5 percent to US$57.00.
· Viceroy Hotel Group announced that two of its luxury destinations, The Jalousie Plantation and Tides Zihuatanejo, will re-launch in 2012 as Viceroy Hotels and Resorts properties.
· Concord Hospitality Enterprises announced that the company has committed $355 million for development of 15 hotels in 2012 totaling 14,000 rooms as a third-party operator and owner. Concord historically has focused primarily on the Marriott brand family, is expanding to include top-tier brands such as, Hyatt, Hilton, Starwood and upscale Choice flags.
Gaming News
· Last year, lawmakers made the ground breaking move to legalize table games. Last July, the Pennsylvania casinos started operating table games; the
state has seen a major increase in gaming tax revenue.
· Maryland legislature is considering table games. The state recently opened their first casino and the addition of table games would increase the
gaming revenue. The decision to bring blackjack, roulette, craps, and other table games to Maryland casinos will depend on the residents of the state; even
if lawmakers approve, voters have the final approval for the casinos to have any new games.
· The gaming industry in the Northeast is flourishing; many states are adding new casino options such as sports betting. Delaware has already legalized
sports betting, and New Jersey is near ready.
· Nevada casinos have long enjoyed one of the best tax rates. The state is highly reliant on the gaming industry. Even with the low tax rates, tax revenue is hundreds of millions of dollars each year. Now politicians are considering adding online casinos.
Other News of Interest
· Rhode Island restaurants are already subject to a 7 percent sales tax, and a 1 percent restaurant tax, for a total of 8 percent. On the governmental table is a
3 percent restaurant tax, raising the tax to 10 percent of the cost for the meal. Restaurant owners will appeal to their customers for further support such as signing petitions and contacting local legislators.
· Florida’s Palm Beach County: Restaurants that charge covers or have minimum drink purchase requirements have to hire security guards.
· Florida Minimum Wage: A bill introduced in the Florida Senate would cut the minimum hourly wage for ipped workers from $4.65 to $2.13 for companies that guarantee wages and tips that equal at least $9.98 per hour. The Florida Restaurant and Lodging Association supports the bill because Florida's tipped minimum is financially harming the hospitality industry, causing companies to cut back their workforce.
INTERNATIONAL NEWS
Africa
· Rotana, a hotel management company in the Middle East and Africa, plans to open its new five-star hotel in Al Ain, Abu Dhabi in the first quarter of
2013.
Canada
· MINA Holdings, a Canada company, wants to acquire 42 Marriott Signature Branded hotels in the United Kingdom. The deal is expected to be the largest
ever made by a Canadian-based company as MINA Holdings is set to purchase the hotels from Fawkes Holdings Limited, a subsidiary of Professional Ventures
Corporation. http://www.businessreviewcanada.ca/business_leaders/canadian-hotel-management-company-to-acquire-42-uk-marriotts
China
· Unique Pizza and Subs Corporation, a Delaware Corporation, is in the secondary stage of selling frozen Unique Pizza’s in China. A search for a
distributor capable of allocating the frozen pizzas to grocery and convenience stores throughout the Beijing area is in process.
Dubai
· Hyatt International will open three new hotels in Saudi Arabia; the chain's number of hotels under development in the Kingdom now is six.
France
· Paris hotels hit a record for guest nights in 2011, aided by visitor from China. Visitors spent 36.9 million, a 3.1 % increase from 2010. Average
occupancy rates in Paris reached 79.5 percent, up 2.3 percent from 2010, and average income per room, increased 10.3 percent to 126.6 euros. French visitors
accounted for 37 percent of hotel nights in 2011, International visitors were mostly from the United States (3.6 million nights), Britain (2.4 million) and
Italy (1.8 million). Nights spent in Parisian hotels by Chinese visitors jumped by 21.6 percent to 407,000.
Guam
· The number of jobs on Guam increased and has recovered to the total it was one year ago. Hotel employment increased 160 jobs and other services up 200
jobs.
India
· Dunkin’ Donuts will not compete head-on in India with Starbucks; instead it will operate as a food service brand than coffee. The first Dunkin’ stores will begin with Delhi, then Bangalore and Mumbai.
London
· The upcoming Olympics bring some new hotels and older hotels are updating their interiors. http://www.hotel-industry.co.uk/2012/01/new-london-hotels-for-2012/
Malaysia
· The 1881 Chong Tian Cultural Hotel on Penang has recently opened; the hotel goes back to the 1880s when it was known as the 1881 Chong Tian Hotel.
The property features a rooftop bar, Chinese and Western restaurants, a function hall, library and a museum with antique collections dating back to the 18th
century.
Netherlands
· DoubleTree by Hilton today debut in the Netherlands was the opening of the DoubleTree by Hilton Amsterdam Central Station; it was formerly known as the Mint Hotel Amsterdam. The hotel is one of eight Mint Hotels across the Netherlands and the UK that will join the Hilton Worldwide portfolio of hotels under the DoubleTree by Hilton and Hilton Garden Inn brand names during the coming months.
Russia
· InterContinental Hotels Group has returned to Russia with an opening ceremony at the InterContinental Moscow Tverskaya. The company also will have a second InterContinental hotel in Russia. http://www.hotelnewsresource.com/article61363IHG_Returns_to_Russia.html
Switzerland
· Switzerland is among the European countries with the most Michelin stars per capita; it has 96 stars total. Zurich, Switzerland's largest city, has two two-star restaurants for the first time ever. Under the Michelin rating system: 1 star means a very good restaurant in its category; 2 stars is a restaurant that is excellent and worth a detour; and 3 stars goes to a restaurant that is among the very best and worth a special journey.
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NOTICE TO READERS
Sources of Information:Some of the information for this newsletter may be assembled, summarized, and re-tailored from many sources. For example, the National Restaurant Association, the American Hotel and Lodging Association, the Wall Street Journal, The Canadian Restaurant and Foodservice Association, Internal Revenue Service, QSR Magazine, Chain Leader, Hotel News Resource, Google, and numerous other professional sites.
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websites, and is not responsible for any such third-party websites. Ray Cote does not endorse or make any presentations about such third-party websites,
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