Hospitality Accounting - Hotel Accounting - Restaurant Accounting - Hospitality Finance - Hospitality Texts -Hospitality Management



JUNE 2011 Edition

This news site is maintained and paid for by Raymond Cote, Author of these two texts:

Basic Hotel and Restaurant Accounting: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. An optional workbook is available. Click the HRA DESCRIBED tab at top of this page for more information.This text has been 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. An optional workbook is available. Click the AHM DESCRIBED tab at top of this page for more information
 
GENERAL NEWS OF INTEREST

·A few tips for opening a restaurant: http://blogs.wsj.com/in-charge/2011/03/21/how-to-open-a-restaurant/?mod=dist_smartbrief

·Ten tips on scheduling employees: http://www.allbusiness.com/company-activities-management/operations-customer/15518116-1.html

·How to speculate if a chain is going bankrupt: http://monkeydish.com/restaurant-leadership/how-tell-when-chain-going-bankrupt-everybody-else?tid=698

·One opinion on why customers tip: http://www.smartmoney.com/spend/family-money/tipping-doesnt-reward-good-behavior-1301325538049/

·Top brands: http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=147646

·How to reduce labor costs without reducing staff: http://www.qsrmagazine.com/human-resources/smart-tips-save-labor-costs

·Ten tips to boost sales without raising menu prices: http://www.allbusiness.com/food-beverage/restaurants-food-service-restaurants/15562957-1.html



UNITED STATES NEWS

Restaurant News

·Olive Garden plans to renovate as many as 400 of its existing restaurants nationwide by 2013 into its Tuscan farmhouse design, a new model introduced in 2000.http://remodel.olivegarden.com/VT_landing_page.html

·Sbarro Inc., operator of more than 1,000 pizza restaurants worldwide, sought bankruptcy protection to eliminate about $200 million in debt after sales slowed and cheese costs rose.

·Starbucks accepts mobile payments via the Starbucks Card Mobile iPhone and BlackBerry applications at 6,800 company-operated stores; more than 3 million people have paid using Starbucks Card Mobile.

·Taco Bell (Yum Brands) exonerated.The California woman and herlaw firm that had filed suit alleging Taco’s ground beef contained little beef, has withdrawn the litigation;no money or other value being exchanged between the parties.For more information: http://www.smartbrief.com/news/restaurant/storyDetails.jsp?issueid=AF2187DD-7347-447B-B3FF-8E8EA788FC62&copyid=9E0F933A-7F82-4CFE-BC9A-98C8042EE1AC&sid=5e32ed3d-1c27-421f-beab-e0e23f037499&brief=restaurant

·Wendy’s fries with a crisper, skin-on version flavored with sea have experienced a 10% sales increase.

Regulations

·Menu labeling requirements proposed by the Food and Drug Administration will require chain restaurants with 20 or more locations, along with bakeries, grocery stores, convenience stores and coffee chains, to clearly post the calorie count for each item on their menus.

http://www.mercurynews.com/latest-health-news/ci_17757866?nclick_check=1

http://online.wsj.com/article/SB10001424052748704530204576237203366549010.html?mod=dist_smartbrief&mg=com-wsj

International Expansion

·Subway and the Middle East: http://www.hoteliermiddleeast.com/10951-subway-plans-to-diversify-in-middle-east/

Casino News

·Indian tribes have enjoyed a monopoly on casino gambling in states all across the United States because of limited competition due to regulations or high tax rates.Now state legislators allowed new non-Indian owned casinos and have relaxed laws with existing casinos.In 2009, tribal casino gambling revenue at $26.4 billion dropped for the first time in many years; although a decline of only one percent.While the tribes attributed the economy for the declining revenue, the main cause is very likely competition.Many states are expanding their gaming industries which will further exacerbate the problem.

·Casino Montelago, Las Vegas, was closed for over a yea; it now will re-open.It will be hiring 100 employees.

·The Las Vegas Convention and Visitors Authority reports that people coming to Las Vegas for the casinos as their primary focus has dropped from 13% in 2009 to 9% in 2010. A decrease is expected in 2011.One cause given was that most gamblers now have casinos within an hour of their homes; there is no need to come to Nevada for gambling.

·Atlantic City, the second largest gaming market in the US has seen its casinos affected by the recession and competition.First quarter results: casinos had a gross operating profit of $98 million, down 14% from the same period in 2010; net revenue was down only 7% at $786.7 million.

·Trump Marina Hotel Casino has been sold to Landry's Inc.Donald Trump will no longer be associated.The casino will be renamed the Golden Nugget.There are only two casinos left in Atlantic City bearing Trump’s name.

Accounting and Taxation

·Senate passes repeal of IRS Form1099 requirements:http://online.wsj.com/article/SB10001424052748703806304576244881535104262.html?mod=dist_smartbrief

   

INTERNATIONAL NEWS  

General

·Europe Air Transportation Analysis: The recovery for Europe’s airports was a notable +10.8% for passenger traffic and +7.2% for freight traffic for the period January–April 2011. However, these figures were inflated due to the impact of last year’s volcanic ash jolt; the adjusted growth was really +4.9% for passenger traffic and freight traffic.In 2011, the demand for air transport in Europe will be affected by sluggish economic growth, especially in Western Europe. The current oil prices also have airlines cautious to predict significant gains.For the full year 2011 +6% for passenger traffic and +5% for freight traffic are estimated.The economic and financial performance of air traffic growth has not contributed to revenue growth.External costs are high, especially security costs.Capital expenditure remains significant; airports plan to spend 44 billion euros between now and 2015.

·The Association of Asia Pacific Airlines (AAPA) April 2011 report shows that Asia Pacific’s airline carriers had a slight increase in international passenger demand; however, there was weaker international air freight.Members transported 15.0 million international passengers in Apr-2011, up 1.6% year-on-year.Growth rates are likely to remain soft in the second quarter due to the after-effects of the earthquake and tsunami in Japan.Japan., but will hopefully pick up again in the second half of the year.

·African carriers saw a modest 1.2% growth compared to a 7.1% decline in March.

·The UAE General Civil Aviation Authority reported that air traffic s in the UAE grew 6.7% in April 2011 compared to the same month last year.

·InterContinental Hotels Group (IHG) has added 54 hotels to its European holdings in the year from June 2010 to May 2011.The 7,874 rooms are located in the UK, Germany, France, Italy, Spain, Portugal, Russia, Turkey, the Netherlands, and Switzerland. 

NEWS BY NATION 

Canada

·.It presently has some locations in Mexico, Kuwait and the United Arab Emirates, and about 370 U.S. restaurants.Its internationala percentage of sales.

·The Nova Scotia minimum wage will be $10/hour in October.

·Alberta’s restaurant industry now has a liquor server gratuity wage; however the government did not introduce a training wage for new hires. A gratuity wage differential has been in effect in Quebec, Ontario, and recently in British Columbia.

China

·McDonald's Corp. is planning to open 700 new stores in China by 2013.It currently has 1,300 stores.McDonald's is expanding faster in China than in any other market in the world.

·Starwoods Hotels opened China’s first international-branded hotel in 1985 and now it expects the nation to be its largest growth market in the next three to four years.The company now has more than 70 hotels in China carrying eight of its nine brands that also include Le Meridien, Sheraton, St. Regis and Westin.About 90 Starwood hotels are under construction in China.

·Sofitel Luxury Hotels announced that it will open a new 405-room hotel in Kunming in early 2014.

·Holiday Inn Shanghai Pudong Kangqiao, a 390 room hotel, launched its grand opening at the end of May.The hotel is close to Shanghai New International Expo Center and it will take less than 20 minutes by car to the Shanghai Disneyland Resort scheduled to open in 2016.

·Wyndham has signed three new Ramada properties, one of which will be the company’s first managed Ramada hotel in China.The 496-room Ramada Plaza Sanya is scheduled to open in June 2012. The 320-room Ramada Plaza Shaoguan City Center is scheduled for opening in January 2012.The 278-room Ramada Suzhou North is scheduled for a summer 2013 opening.

·Trump Hotels is in discussions to build a hotel in China.

Cyprus

·Cyprus's tourism income rose 53.5 percent in April, compared to the same month last year.Revenue from the key tourism sector was 136.7 million euros in April compared to 89 million euros for the same period of 2010.Income from tourism represents 12 percent of its gross domestic product.

·The government predicts the economy will increase by 1.5 percent in 2011.

·http://uk.news.yahoo.com/cyprus-divided-heart-europe-070000054.html

·The three foremost industries in Cypress are tourism, food and beverage production, and cement production.

France

·Hotel brand Book Inn France opened two new designer hotels in the South of France, these 3 and 4 star hotels - the Comfort hotel Perpignan Centre del Mon and the Quality hotel Perpignan Centre del Mon, respectively provide 46 and 55 rooms.Both hotels are to be awarded the European Ecolabel for use of environmentally friendly materials.

·Official website of the French Government Tourist Office: http://us.franceguide.com/

·France, a large European economy, had strong growth in the first quarter of 2011.The French economy exceeded growth forecasts by 1% in the first quarter due to higher consumer spending and corporate investment.French Prime Minister Francois Fillon is confident France will achieve its 2% growth target this year.

Guam

·The economy depends on U.S. military spending, tourism, the export of fish and handicrafts.Its industries are US military, tourism, construction, transshipment services, concrete products, printing and publishing, food processing, and textiles.The expanding tourist industry has created construction demand for new hotels and the expansion of older ones. More than 1 million tourists visit Guam each year; the Japanese make up almost 90% of the tourists.Guam’s objective is to attract tourists from other Asian countries such as South Korea & China.

·Consequences of the disasters in Japan are beginning to adversely affect a drop in tourism.Many economists expect the tourism impact to be short term.

·ABank of Guam executive predicts the delay of the military buildup from 2014 to 2019 and cuts in appropriations for the troop transition are other key factors shaping Guam's economic future.Despite the earthquake in Japan and the military cuts, economists at a recent conference, optimistically project Guam's economy.

India

·Trump Hotels is in discussions to build a hotel in India.

·The hotel development company Duet India plans to have 20 hotels, 3,500-room capacity, during the next three-five years.The company funded USD 200 million to bring in Holiday Inn Express hotels via a 76-24 per cent joint venture with InterContinental Hotels Group.Duet India Hotels will spend USD 166.50 million (Rs 800 crore) in their joint venture with IHG

·Bangkok-based Absolute Hotel Services (AHS) plans to have 400 rooms across the country by the end of 2011and over 1000 rooms by 2012. Currently, AHS operates The Chariot Resort and Spa Puri and Desertscape Jodhpur Resort in India.

·European Swissotel is planning three more five-star hotels in India by 2013.

Malaysia

·Hyatt plans to open a new Grand Hyatt Kuala Lumpur 412 room/42 suite hotel in Kuala Lumpur next year.Hyatt currently owns two other hotels in Malaysia.Hilton Worldwide will manage the 2014 planed DoubleTree by Hilton, Melaka in Malaysia’s west coast.Hilton Worldwide currently operates five hotels in Malaysia including Hilton Kuala Lumpur, DoubleTree by Hilton Kuala Lumpur, Hilton Kuching, Hilton Petaling Jaya and the Batang Ai Longhouse Resort, which is managed by Hilton.

·The 6th Malaysia International Dive EXPO 2011 is at Putra World Trade Centre from 1 July to 3 July.There are 120,000 certified divers in Malaysia from ages 8 to over 40.Well-known diving brands may be purchased on site.Resorts have booths promoting a variety of diving packages.There will also be about 200 booths participating at this year’s Malaysia International Dive Expo 2011.

·The Institute for Management Development (IMD) survey ranked Malaysia as among the top 5 most competitive nations in the Asia-Pacific region for the second year,

·Malaysia currently produced 300,000 tons of durians, with revenue estimated at RM1.3 billion annually. A large quantity of Malaysian durians will enter the China market after the Chinese government gave its official approval to Malaysia to export the 'king of fruits.'

Mexico

·Marriott International announced plans to open a 292-room hotel in 2012, its first Courtyard by Marriott hotel in Mexico City at the Benito Juarez International Airport.

·Hilton Worldwide plans to open a DoubleTree in Mexico City later this year.

Netherlands

·Economists predict the Netherlands will not experience a double economic dip;Dutch companies will have opportunities abroad, the country will be a good place for foreign firms to invest.http://www.rnw.nl/english/article/opportunity-knocks-dutch-2011

·The Netherlands is gaining renewed interest from large global companies in the financial services industry.Recently, players in asset management and banking have been opening Netherlands operations.

·Dutch economic growth in the fourth quarter of 2010 was 2.4 percent compared with the same period in the previous year. This put economic growth for the whole of 2010 at 1.7 percent. Compared with the third quarter of 2010,

·The Dutch hotel industry experienced a praiseworthy year in 2010. The number of guests equaled the record number of 19.2 million in 2007.According to the Central Bureau of Statistics, (CBS), in 2010 hotels accommodated 19.2 million guests; 7.7% more than in 2009. The number was nearly the same as in record year 2007.  

Panama

·The Trump Hotel Collection will open its sixth hotel in Panama City on July 6; the hotel will have 369 rooms.http://www.trump.com/Hotel_Collection/Trump_Panama/Trump_Panama.asp

·IHG (InterContinental Hotels Group) has signed a franchise agreement for a new-build Holiday Inn Express hotel in Panama City, Panama. The 198-guest room, 12-story Holiday Inn Express Panama City, is scheduled to open in July 2012.

South Africa

·The Arabella Hotel & Spa has joined Africa's luxury hospitality brand, African Pride Hotels.

·Rich Mkhondo , the chief communications officer for the 2010 Fifa World Cup Organising Committee South Africa reports the following on the benefit of hosting the world cup.Here is a summary: The tournament attracted more than 350 000 football fans---- The sporting event generated massive global media coverage, promoting South Africa as a holiday destination ----Expenditures by tourists, teams, the media, were an economic benefit------ The World Cup was seen by billions of viewers, and Africa gained media attention----- and much more.For more information: http://www.iol.co.za/thestar/what-we-won-out-of-world-cup-1.1082810

Switzerland

·The Hotel Schiller, a historic boutique hotel in Lucerne, Switzerland has completed its restoration and re-branding as the Renaissance Lucerne Hotel, an 86-room hotel, under a franchise agreement with Hotel Schiller Betriebe AG.

·One of the top European destinations for medical tourism is Switzerland because of their medical facilities rated as world-class featuring the latest technology.The country’s clean air and high-class accommodation make it an attractive destination. Saving money is not the objective; people go for luxury care and attention. The Swiss have made a conscious effort to promote medical tourism. The prices are very high and the services are marketed to those willing and able to pay. Russia is a key market.

United Arab Emirates

·Belgium-based Rezidor Hotel Grouphas opened Radisson Blu Hotel, Dubai Downtown, its seventh property in the UAE.

·A hotel has removed endangered fish species such as grouper and kingfish from its menus to save them from extinction.http://www.monstersandcritics.com/science/news/article_1640575.php/Endangered-fish-taken-off-the-menu-at-UAE-hotel

 
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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.· Links to third-party websites: Links to third party websites are provided solely as a convenience to you. If you decide to access any of the third-party websites linked in the newsletter, you do this entirely at your own risk. The author of this newsletter is not obligated to review third-party websites, does not control such third-party 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, their content, products or services. · Procedure for making claims of infringement: Ray Cote respects the intellectual property rights of others. Accordingly, Ray Cote has a policy of removing any content that violate copyright law. Pursuant to Title 17 of the United States Code, Section 512, if you believe your copyright or other intellectual property right is being infringed please provide written notice to:Raymond Cote, Author, PO Box 771383, Ocala, FL 34477· Your written notice must:
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