Hospitality and Business: Organizational Change in Browns Old Jewry Restaurants

This report discusses the organizational change in Browns Old Jewry restaurants, focusing on the hospitality business and the challenges faced in the industry. It analyzes the strategies to overcome these challenges using Kotter's eight-step model.

RUNNING HEAD: Hospitality and business
Hospitality and business

Hospitality and business 1
Contents
Introduction................................................................................................................................2
Change programme....................................................................................................................2
Conclusion..................................................................................................................................8
References..................................................................................................................................9

Hospitality and business 2
Introduction
The hospitality business is a broad group of businesses which provide service to the
customers. The hospitality business is focused on providing satisfaction to the customers by
offering unique experiences. It comprises lodging, theme parks, event planning, and others.
This report defines the hospitality business of Browns Old Jewry. It is the part of Mitchell’s
and Butlers PLC which is the largest operator of restaurants, pubs, and bars in the UK. The
first Browns Old Jewry was established in 1973 and is providing delicious food and drinks
experiences through the well-known brand. The customers are provided with the superb
service in the beautiful surroundings. Many of these restaurants are in the unique landmark
buildings. The classical seasonal food can be enjoyed along with the signature cocktails. The
tables can be booked online. The restaurants of Browns Old Jewry are widespread in allover
UK. The restaurant delivers great service, quality and value for money to the guests. The
restaurant has been successful in leading operations due to innovation, listening to customer’s
feedback properly and ensuring the best staff (Enz and Way, 2016).
Browns Old Jewry have gained capability in offering value to the customers at restaurant.
The restaurant is having more than 10,000 employees and having headquartered at
Birmingham. The restaurant generates a higher return on the investments through scale
advantage. It is even capable of maintaining a sound financial base from the income
generated from it’s all the restaurants. This report comprises the organizational change taken
place in Browns Old Jewry restaurants. The current stage of the change programme has been
described along with the barriers to attain the successful delivery of the change programme.
Kotter’s eight-step model has been used to analyze the strategies to overcome the issues faced
in the successful delivery of the change programme.
Change programme
The hospitality industry remains challenging and competitive. The restaurants of Browns Old
Jewry have undergone a significant organizational change in the last few years. The
competition and rising costs reduced profits of the restaurants significantly. The restaurant
operator at Browns Old Jewry reported a 25% fall in the pre-tax profit in 2015(Financial
Times, 2016). The restaurant is struggling due to the increased competition for the dining

Hospitality and business 3
customers and rising cost parameters. The recent opening of the wave of restaurants across
the hospitality industry put pressure on the outlets of Browns Old Jewry. It has been
estimated that almost 1700 rival eateries began dealing in 2015 which is approximately
correspondent to the size of pub estate. The competition in the hospitality industry has hit the
mid-market brands like Harvester and various restaurants of Browns Old Jewry. The
restaurant is also accompanied by the brands of Mitchell’s and Butlers PLC like Toby
Carvery, Harvester and All Bar One among. These brands are warned that the profit margin
can be hit by the increased investment along with the rise in the minimum wage. It was also
estimated that the labor costs would also be constant to cause ‘headwinds’. The pre-tax profit
of the Browns Old Jewry fell to £ 94m in the year and revenues declined to 0.7% to £ 2.1 bn.
Browns Old Jewry is aiming to achieve a leading position in the hospitality industry. The
changes experienced by Browns Old Jewry restaurants regarding competition and rising costs
resulted in:
Technology: The technology is an essential part of routine life. The hospitality industry
cannot take a break from technology. The guests in the restaurant demand a basic right to be
associated in any location, around the globe. The technology is considered a constant travel
companion wherever people go (Hornstein, 2015). The restaurants of Browns Old Jewry are
embracing the technology revolution nowadays which is resulting in competition and rising
costs. The innovations in technology benefits customers, not to just restaurants. It even assists
restaurants to stand out from competition and appeal to new customers. The technology has a
role in engaging brands and the restaurants using innovative technologies give tough
competition to the Browns Old Jewry. The rising costs also reduce the profits of the
restaurant (Cobos, et l. 2016). The customers also like to go to the restaurants implemented
new technologies. The restaurant is required to lead and maintain a position in the hospitality
industry which is possible by implementing innovative technologies.
Sustainability: sustainability is considered as the agenda of the organization. It is driven by
growing interest and concern for the environment. The restaurants having good corporate
responsibility programmes assist in winning customers and gives tough competition to M&B.
the restaurant has experienced change due to the rising concern of the restaurants toward
sustainability. The competitor restaurants spend a huge part of the running costs on the utility
and energy bills. Browns Old Jewry has transformed its operations to convert into going
green. The energy consumption is reviewed and methods are implemented to convey
financial savings (Jhamb and Singh, 2019). The restaurant faced challenges in raising its

Hospitality and business 4
brand image in terms of environmental impacts. It mainly focused on the wastage, water
consumption along with the energy. Browns Old Jewry even faced challenges in reducing
lighting and heating bills. It was required for the restaurant to involve in the partnership with
some organizations to launch strategies and tackle wastage (Mirhabibi, 2017).
Marketing and distribution: The marketing and distribution costs are the most substantial
changes seen over the past years by the hotel. The delivery cost for getting customers into the
hotel has changed the business model significantly. It was primarily based on the brand and
travel agents and those were paid 10% rate of the OTAs. The traditional marketing is also
replaced by digital formats in the form of ads through social networking (Hashim and Fadhil,
2017). The distribution also resulted in higher commission rates. The third party are paid a
good sum of money for the operations conducted by them. It has been considered an
important part of the operations of the organization (Li, 2018). The restaurant also faced
challenges due to the changing consumer behavior and the consumer also has the belief that
they will get the best and cheapest if the bookings are made through the third parties.
Operation: The hospitality industry has shifted over the years and has become more
complicated to operate. The restaurants are required to contract with third-party management
companies. Due to the higher usage of the technology and the internet, it has become
competitive for the Browns Old Jewry to operate the restaurant. The restaurant felt the need
of hiring third-party operators along with good franchises (Beech and MacIntosh, 2017). The
third party operated properties at a lower rate of return on the investment.
Irregular cash inflows: It is one of the major challenges which Browns Old Jewry faced
which is credit menace. The irregular cash inflows are dealt with pay after a period of 30, 60
and 90 days. The dealings are a bigger one but the cash crunch who is not useful. The
payments are delayed or go in the bad debts. So the payment recovery takes time. In order to
stand out from the competition, the hotel has launched an online marketing campaign to
attract direct bookings and bookings from other online channels (Cetin, Demirçiftçi and
Bilgihan, 2016).
Data security challenges: Browns Old Jewry suffered from the data security challenges in the
last few years. It is the competition which led hackers to theft the data from other hotels. The
threat of the theft of digital data, virus attack and confidential data has become a big concern
for the hotel. Browns Old Jewry faced challenges in updating its software and it enables the

Hospitality and business 5
high-security feature. It prevents leakage of the restaurant data. It also affects the credibility
of the hotel to appeal to more guests (Kasim and Dzakiria, 2016).
The Kotter’s eight-step model has been used to analyze the strategies which can be used to
overcome the changes faced by the organization.
Create a sense of urgency: The sense of urgency is developed around the need for change. It
can work as an initial motivation for the Browns Old Jewry. It is not simply showing poor
sales statistics and discussing about the increased competition (Ahmad and Muhammad Arif,
2016). It represents an honest and convincing dialogue about the things taking place at the
marketplace and with the competition. The urgency can build itself when the employees start
talking about the proposed changes. The restaurant can identify the potential threats and
develop scenarios screening what could happen in the coming years. creating a sense of
urgency help to assess the opportunities which should be or could be exploited. The honest
discussions can be initiated and convincing reasons can be given to get people conversing and
thinking. The support from the guests can be requested by the customers, stakeholders and
industry people to strengthen the argument (Moraru, 2016).
Form a powerful coalition: The restaurant can convince the people for the changes taking
place in the organization. It generally requires strong leadership and assistance from the key
people of the organization. It is also added that managing change is not enough but is should
be led. There are effective change leaders in the organization who do not necessarily follow
the traditional hierarchy. These are the influential people who bring together the team from a

Hospitality and business 6
variety of sources. It comprises status, job title, political significance, and expertise. Once the
‘change coalition’ works as a team, it continues to build urgency around the need for change.
In order to manage challenges, true leaders can be identified by Browns Old Jewry’s
restaurant along with the key stakeholders (Das, 2019). The key people of the organization
can be asked for emotional commitment. The restaurant should work on the team building
within the change association. The weak areas can be checked by the hotel and ensure that
they have a good mix of people from various departments and different levels within the
organization.
Create a vision for change: When the discussion is made about the changes then the great
ideas and solutions floating around. These concepts can be associated with the overall vision
which can be grasped by the members easily. A clear vision can help everyone at the
organization to understand why they are asked to do something. When the employees see
themselves what organization is trying to attain then they can make more senses. In order to
create a vision for change, restaurant can determine the values which are central to change. A
short summary can be developed to capture for the future of the organization. A strategy can
be created by the Browns Old Jewry to execute the vision (Muthoka, Oloko and Obonyo,
2017). The organization needs to make sure that the change coalition can describe the vision
in five minutes or less. The vision speech should be practiced by the organization on a
regular basis.
Communicate the vision: The vision created helps in deterring the success of the
organization. The message of the hotel will possibly have robust competition from daily
communications within the organization. The restaurant is required to communicate
forcefully and repeatedly. It should be surrounded by everything done by the organization.
The vision should be communicated by the hotel every time no chance should be missed.
When the vision is communicated again and again then the employees remember it and
respond to it. The restaurant can demonstrate the behavior expected by the staff in the
scenario of competition and rising costs (Yu and Lee, 2018). The restaurant can tackle the
situation by often talking about the change vision. The concerns of the people can be
addressed responsively and honestly. The vision should be applied in all aspects of the
operations right from training to the performance reviews. Everything should be tied back to
the vision of the organization.

Hospitality and business 7
Remove obstacles: By following each step of Kotter’s 8 step model, the step of removing
obstacles can be reached. If Browns Old Jewry’s restaurants will keep talking about the
vision and building buy-in from all the levels of the organization than the staff will
automatically like to get busy and attain the benefits which have been promoted. Removing
obstacles in the organization can actually place the structure for change (Sheresheva, Oborin
and Polyanskaya, 2018). It can help the organization moving forward along with the
occurring changes. The restaurant can hire experts or change leaders mainly for delivering
change. The organizational structure, job descriptions, performance and compensation
systems of the organization should be reviewed to ensure they are in line and aimed towards
the vision. The people should be identified and rewarded who have made changes. The
individuals should be identified in the organization who are resistant to change and help the
in viewing what’s needed. Necessary action should be taken quickly to remove the barriers
(Small, et al. 2016).
Create short term wins: The short term wins motivates more than success. The organization
should be tasted a taste of victory in the change process. The restaurant is required to aim at
some quick wins within the short period of time. It is because the smaller targets are
attainable with little room for failure (Sharma, 2016). The change team of the organization is
required to come up with these targets and each win produced can motivate the whole staff.
The restaurants of Browns Old Jewry can go for the sure-fire projects which can be executed
without any help from any strong critics of the change. The early targets should not be chosen
which are expensive. It is because the investment in each project cannot be justified
(Osiyevskyy and Dewald, 2015). The pros and cons of the targets of attaining profits should
be thoroughly analyzed. The failure of one goal can hurt the complete change initiatives of
the organization.
Build on the change: It is the seventh step of Kotter’s model. As per Kotter, many changes
projected fails because victory is declared too promptly. The real changes run deeply. The
prompt wins are just the beginning of what is required to be done in order to attain long term
change. It is great to launch a new service by using the new system. But if various numbers of
services are launched, it leads to the working of the new system. Each success can provide
Browns Old Jewry’s restaurants to provide an opportunity to build on and what went right. It
can provide the opportunity for the organization to make an improvement. The restaurant
should assess what went right after every win and what needs to be improved (Rossidis, et al.
2017). The hotel is required to set goals to continue building on the momentum which has

Hospitality and business 8
been achieved. Kaizen should be learned for the ideas of continuous improvement. The new
ideas should be welcome by bringing in new leaders and agents for the change coalition.
Anchor the changes in corporate culture: In order to make changes stick, it should become
part of the fundamental of the restaurant. The corporate culture is capable of determining
what gets done. The values behind the vision should represent routine work (Weston,
Conklin, and Drobnis, 2018). The continuous efforts should be made to make sure that
changes are seen in every aspect of the organization. It will help in changing a solid place in
the culture of the organization. It is significant for the leaders of the restaurants to support the
change. It comprises existing staff and new leaders who are conveyed in (Qoura and Khalifa,
2016). If the support of such people loosens, it might end up where the hotel is started.
Browns Old Jewry’s restaurants should talk about the progress made in every chance. The
success stories about the change process should speak to the individuals and such stories
should be repeated which are being heard. The change ideals and values should be included
in hiring and training new staff. The key members of the original change coalition should be
publically recognized and make sure that the existing and new staff contribute properly
towards the organization (Richard, 2017). The plans should be created in order to replace key
leaders of change as they move on. It will help Browns Old Jewry’s restuarants to ensure that
the legacy is not mislaid.
Conclusion
The restaurants of Browns Old Jewry have undergone a significant organizational change in
the last five years. The organizational change is faced due to competition and rising costs. It
has put an impact on the technology, sustainability, marketing and distribution, operation,
irregular cash inflows along with the data security challenges. The restaurant has to transform
itself due to the changes occurred. The changes occurred affected by the credibility of the
organization. The Kotter’s eight-step model has been used to analyze the strategies which can
be used to overcome the changes faced by the organization. These steps comprise creating a
sense of urgency and form a powerful coalition for the need for change. A vision for change
is also created along with the communication in deterring success of the restaurants of
Browns Old Jewry. The obstacles are created and short term wins aiming at wins within the
short span of time. The seventh and eighth steps of Kotter’s is building on the change and
anchoring the changes in the corporate culture. The hotel is required to set goals to continue
building on the momentum which has been achieved. The corporate culture of Browns Old

Hospitality and business 9
Jewry is capable of determining what gets done. The continuous efforts should be made to
make sure that changes are seen in every aspect of the organization. It can help in changing a
concrete place in the culture of the organization.

Hospitality and business 10
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