Restaurant Business Plan for Marriott Merger

This assignment tasks students with developing a comprehensive business plan for a new restaurant concept. The plan must consider the recent merger between Marriott International and Starwood Hotels & Resorts, aiming to leverage the increased brand value and market presence resulting from the merger. Students are expected to analyze market trends, target demographics, menu offerings, operational strategies, and financial projections to create a viable and successful business proposition.

Hospitality Provision
in Travel & Tourism
Sector

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explain interrelationship between travel & tourism business and hospitality.......................1
TASK 2............................................................................................................................................4
2.1 Implications of integration to hospitality industry ...............................................................4
2.2 Integration has impacted a hospitality business....................................................................5
M1 Identify and apply strategies to find
appropriate solutions..................................................................................................................7
D1Reflection to evaluate own
work and justify valid conclusions.............................................................................................8
TASK 3............................................................................................................................................8
3.1 Rationale for a selected project.............................................................................................8
3.2 Plan for hospitality business..................................................................................................9
M2 Design and apply appropriate
methods....................................................................................................................................10
D2 Responsibility for managing and
organising activities.................................................................................................................11
M3 Present and communicate appropriate
findings.....................................................................................................................................11
D3 Demonstrate convergent/lateral/creative
thinking....................................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Hospitality has interrelated with tour & travel organisation because both sector has work
in same field like accommodation, recreation, transportation, food facilities etc. In present
business environment, number of visitor in United Kingdom has increase continuously resulted
there are many opportunity exist into industry to run their enterprise activities in an effective
ways. So that, management of the company has develop strategies that help to attract many
clients toward their offers and services effectively. Through this, firm are capable to achieve aim
and objectives in limited period of time appropriately. In this assignment choose Hotel Marriott
international to analysis the effect of hospitality sector on travel and tourism industry. It is a
American global organisation which are ruining their business activities in 6520 location in the
year 2017 (Barros, Butler and Correia, 2010). Hotel Marriott international was established in the
year 1927 by J. Willard Marriott and Alice Marriott. Here are working 177000 employees and
contribute in earning revenue approx US $ 22.894 billion in 2017. This report covers role of
hospitality sector with in travel & tourism industry and impact of integration on hospitality
sector. It also covers plan of hospitality business development.
TASK 1
P1 Explain interrelationship between travel & tourism business and hospitality
Interrelationships between hospitality and tourism businesses
Name- XYZ
Date- 30 May, 2018
In this unit used Marriott international hotel which is a highly recognised hotel chain that serve
their services approx 6520 location and in context of room they offer mixed suits not a single
room. So that, they are run their enterprise activities around the globe with high class facilities.
In each hotel at lesset 100 bed are provided by them and they are also run restaurant as well as
resorts that help them to attract more consumers by different segments (Guttentag, 2015).
Marriott international has offer range of services to their customers like spacious rooms,
modern lounge & bar, free Wi- Fi, food facilities, hospitality services and many others. When
visitor check-in in the hotel they are offer them complementary food like breakfast, starters,
welcome drink and many more. So that, Marriott hotel has range of resorts and services which
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help to serve high class delivery of services that enhance customer's satisfaction in long period
of time. This section covers all offers given by Marriott Hotel. In this context, started and
resorts are used as advertisement for not promoting hotel chain brand. Travel industry can be
define as firm as well as website which are assist clients in their tour plan and many other
aspects. In this sector various type of services are offered that has detail below:
Personal Contact:- These are individuals that are hired by travel agencies in order to assist
those people whom are planning their trip and need help in this. In this section personal contacts
are defined as personnels that are appointed by many travel agency in order to schedule trips.
In this, travel agency has recruit candidates those are ability to influence clients purchasing
behaviours and offer them their own product effectively (Heung, Kucukusta and Song, 2010).
For this, they are fix meeting with potential consumers whom planning for trip and needed help
to guild which one is best suitable for them according to their budget as well as requirement.
Personal contacts mean individual has get appointment from buyers those are willing to travel.
Employees has established connection with clients by several mode like internet, social media
sites, personal call, mail, massage etc. Tour & travel sector has almost work by online mode
and staff members can avail entire facilities by uploading information related to tour package
into various website for trip planning.
Trip Planning:- In this, employee of travel company has assist visitors in order to solve their
issues related to hotel booking, transportation facilities like bus, car, flights, train in each one
location, foods, visiting places and many more, it should be done after completion decision on
located where they visit. Most of the tour operating company has provide on the job training to
their new staff members it save time as well as money and employees get live experience.
Fees:- Firm has set their charges according to travellers selection of items like which kind of
hotel they choose, what is the mode of transportation like bus, car, train, flights etc. These all
rates are standardize and can not very so that employees provide full information related to fee
to their clients effectively (Hudson and Thal, 2013).
Convenience:- Each one travellers has want to comfortable tour for relaxation so that it is a
travel organisation responsibilities to provide convenience in all facilities which are associated
with tour package.
Scope and scale of hospitality sector
Gives employment opportunities- In hospitality sector lot of different kind of work has
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done like food facilities, clean room, help services, transportation, hotel and many others.
Travel sector has highly depend on customer's satisfaction so that all organisation has focus on
quality of services delivery in order to increase their comfortableness. In addition to this,
hospitality sector provide many employment opportunity to people. According to council of
world travel report approx 10 % of total GDP in United Kingdom has came by hospitality
sector and there around 260 million person has worked.
Enhancing tourists- In present market environment, most of citizen in United Kingdom
has make trip plan and with time number of visitor in UK are continuously increase resulted all
hotel, travel agency, food restaurant etc. has get higher profitability. Through this, they are also
gain long term sustainability and scope of expending their work into another location easily
(Jaafar and et. al., 2011). So that, competition is very high and all is depend on quality of
services those who are able to provide high quality with economy prices get more clients and
visa versa.
Medical tourism- Several developing country like India has offer low cost medical
facilities so that individual has want to go on that nation in order to take treatment. So that,
there are lot of new opportunity in hospitality industry like provide healthy food, health care
clinics, restroom and many more.
Interrelationship between Tourism Business and Hospitality
When travel company provide higher quality hospitality services to their visitors in order to
enhance client's satisfaction in long period of time. Consumers opinion are very important for
this industry so that it is a management responsibilities to build positive image in their mind
thus help them to encourage revisit at same place. For this, they are identify buyers needs and
wants accordingly provide product as well as services thus help them to full fill their demand in
an effective manner (Law and et.al., 2015). The main interrelationship between travel industry
and hospitality are detail below:
Communication- Communication is a method of transferring information from one place to
another. Through this, travel firm has provide all data related to their clients to their contract
hotel, transportation services provider, restaurant and many other. This information help them
to make arrangement of visitor in advance so that they are able to offer high quality services
effectively thus increase consumers satisfaction.
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Travel and holiday packages- One company can not able to do everything it reduce
their quality of product and services and run their business activities for very short time. So
that, travel company has provide services related to tour and holiday package in which they are
includes overs firm services like several branded hotel, restaurants, transportation mode like
flight, accommodate facilities, location, time, prices etc. Each one services has highly depend
on hospitality and its also depend on interrelationship among both sector effectively.
TASK 2
2.1 Implications of integration to hospitality industry
In present business environment, market are highly competitive so that survival of
organisation can not easy. So that, two or more firm are work together to achieve aim and
objectives in given time frame effectively, it is called integration of enterprises (Medlik, 2012).
Management of the company has manager and control over quality of services to build positive
brand image in clients mind thus help to get sustainability in long run. Integration has tow type
that are explain in detail as follows:
Vertical integration- Vertical integration can be define as a combination of two firm in
all stages of production but both are run their business activities separately. It is a method of
arrangement between supply and demand by implementing supply chain strategies with in a
work place. Through this, merger between two companies has been done for achieve common
aim and goals in limited period of time effectively. Vertical integration are also called backward,
lateral and forward. There are various kind of entry barriers are available so that several firm are
able to enter in vertical contract. Large organisation take benefits from this advantages and
opportunity of barriers to operate entire business activities appropriately in long run (Sigala,
Christou and Gretzel, 2012). After forward integration, enterprise are able to provide high class
services thus increase customer's satisfaction.
For an example- Marriott international hotel as well as Marston's both are enter into vertical
contract with the name of merger. By this, they are bitterly utilise available resources. So that,
through this institution are capable to achieve economic of scale and offer low cost services with
higher quality to their potential clients this enhance customer's satisfaction.
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Later integration is a one of most famous merger method used by organisation where both
companies are offer same type of services to their customers. In this situation there are no need
to merge institution but established connection to make big brand.
Horizontal integration- Horizontal integration compiling all stages of work because in
this both organisation has work into same field and offer same kind of product as well as
services. Through this, firm are creating monopoly condition at market place thus help to attract
very large number of buyers toward their goods and services. Management of the company has
used this strategies in order to expend market segregation and location (Smith and Puczkó,
2014). By this, they are able to make large visitors portfolio and provide them economic cost
hospitality services to build positive brand image in individual mind. In present scenario, many
travellers are visits United Kingdom so that there are so many option are available related to
accommodate, transportation, food facilities and many more, that shows higher opportunity for
new entrepreneurial venture those are provide innovative ideas of services.
For example, Marriott hotel and Marston's, both are work in same sector and provide
same hospitality services to their target visitors. After merger contract, quality of services may
enhance, for this, they are conducting market research to identify individuals needs, wants
accordingly they are produce commodities and hospitality offers.
For example, Management of Marriott international hotel has develop strategies and find
out new target market in order to expend their work effective. For this, they are continuously
monitor and control entire business operation in order to get sustainability in long period of time
that help to expansion plan by implementing vertical integration method.
2.2 Integration has impacted a hospitality business
In current business environment, integration has create positive as well as negative
impact on organisation performance and productivity. So that, management is conducting
research to analysis each one outcome whether that is positive or negative of this contract (Teng,
2011). Accordingly develop action of plan to reduce destructive points effect enterprise.
Affects of integration: There are lot of affect of integration on enterprise and one of the most
important is get competitive advantage through contract. Here are explain some another impact
of integration in detail:
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 Standardization- In current tour & travel sector environment, many visitors are make trip
plan and select hotels, restaurants, places etc. according to rating or their own experience.
In the industry of hospitality, quality of services is matter so that management of the
company has make standardization in their work and provide offers accordingly so that
consumers has get same experience with little positive modification that help to increase
more satisfaction of them (Tribe, 2011). For example, when one person visit hotel
Marriott international at UK and next time they are make plan to go China and again
select Marriott to stay. They are find out they have receive standardization services in
both hotels with few positive modification. Scale economy- By integration of both firms, management has develop plan to run both
of them with same kind of services that save resources like money, manpower, land etc.
Through this, they are capable to achieve economic of scale and offer low cost hospitality
services to their buyers. Thus help to attract number of individual toward company
services as well as product. Under this, it stated various others travelling operators make
contract with Marriott and take advantages of low prices services. Quality- By integration between two organisation, both together are able to improve
quality of services thus enhance customer's satisfaction in long period of time. In this
process both are share their resources in an effective manner to produce new things which
are innovative. Through this, they are full fill buyers needs and wants effectively
(Vanhove, 2017).
Integration has affected the functions of Marriott International hotel
Some of the consolidation impact on hospitality industry are explain as follows:
 By integration between two firms, cost of product should be same because they are offer
goods to consumer with same or common brand name.
Some of important consolidation affect of integration on hospitality sector has detail
below:
 When integration among two organisation, prices of services are same because their offer
same kind of commodities to same target market with large scale. For example, Marriott
has provide several product and services with different price strategies to that they reach
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all segmentation of market. Through this, after merger they can not change their cost of
commodities.
 By integration in two enterprise, resources of both should be mix and double in size so
that they are capable to provide low cost product thus influenced small scale organisation
negatively.
 In United Kingdom this method of expansion is very beneficial for each one organisation
because through this they are able to produce high quality product with economic prices
to that large number of individuals has get benefits those have low budget for trip
(Barros, Butler and Correia, 2010).
 By this, expenses should be minimise and overall revenue rise resulted firm get long run
sustainability as compare to their rivalries in the same industry.
 Integration between two enterprise develop monopoly situation at market that reduce
power of competitors in hospitality sector.
 Segregation has increase effectiveness and efficiency of hotel organisation in long period
of time.
So that, integration has very beneficial of each one company but in the other hand it
create negative impact on economy because due to merger monopoly situation may arise and
new venture can not able to survive in long time. Resulted, unemployment rise, opportunity for
new entry reduce due to high entry barriers and many more negative points.
M1 Identify and apply strategies to find
appropriate solutions
In United Kingdom hospitality sector are growing very fast where and companies make
integration with others in order to achieve economic of scale in their services as well as product
prices. Thus help to save resources and minimise wast because through integration among tour
operators and hospitality sector give several benefits which are comparison among rivalry in the
same industry accordingly organisation has develop strategies as well as plan in order to
complete them effectively (Guttentag, 2015). Those who are work with same chain can execute
this method of integration. Under this, Marriott Hotel purchase Starwood Hotels & Resorts with
the value of 12.2 billion US $. It is a biggest transaction in hospitality industry in the year 2007.
Through this, they have able to keep operations cost low and achieve economic of scale that
help to offer low price services and product to their consumers. Thus help to attract lot of clients
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toward their goods and get higher profitability and market share as compare to their competitors
in same sector
D1Reflection to evaluate own
work and justify valid conclusions
Both organisation executing integration agreement effectively in order to get aim,
objectives in specific time period. Hospitality has create many impact on integration contract like
rise market position, customer's satisfaction, advance technology, high brand value, develop
quality of goods as well as services, accommodate availability, food facilities, productivity,
performance, improve employees skills; knowledge; performance etc. of firm in the eye of
buyers. So that, hospitality and tourism sector has interrelated with each others and provide high
growth opportunities to the nation (Heung, Kucukusta and Song, 2010). Management of hotel
has make uniformity in their services so that no many discrimination has arise for business
clients those are travel around the global very frequently. They are offer various kind of fast
foods like sandwiches, pizza, burger etc. along with tea, hot coffee, cold coffee, ice tea and many
others. There are several kind of others facilities available like pubs, clubs with high quality
mocktail as well as cocktails
TASK 3
3.1 Rationale for a selected project
Under this report choose restaurant business where several kind of foods are available at
24*7 days. The main reason behind selection of this sector is in UK number of visitors has
increase on continuous basis and some of them are came from different location or country. So
that, due to this, there are lots of opportunity for new restaurant which are provide different type
of foods that help to attract customers those wants new taste. There are lots of rivalries and
clients are available that develop perfect competition into market place where no one single
company can able to influenced industry prices and entire market has enjoy their strategies to
attract number of consumers (Hudson and Thal, 2013). Through this, they are able to offer low
cost goods and hospitality services to their consumers thus help to attract large number of
individuals toward firm commodities, work. That provide high profitability and long term
sustainability appropriately so they are run their entire business effectively
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Current market trends: In hospitality sector harmony and trust is very important to
achieve higher position as well as long run sustainability. In present market quality of services is
very important in order to achieve customers interest. Small scale organisation can be want fund
and in UK there are several mode where they get money like financial institution, banks, angle
investors etc. Company has used online mode for promotion, advertisement, meet clients, spread
information related to offers and many more (Jaafar and et. al., 2011). Thus save time, money,
manpower and many other resources of small scale enterprise like restaurant.
3.2 Plan for hospitality business
Business plan is a statement or report of company which includes goals, vision, mission,
target segment, marketing strategies and objectives and many more. This report prepare for new
business venture related to restaurant has detail below:
Stage 1: Development
 Idea-Idea generation has important for entrepreneur to develop new start ups. The
idea of restaurant has came when one research report says visitor in UK demand
different kind of food with innovative ways. So that, there are lots of opportunity
in food industry.
 Market Research- They are organising research program in order to identify needs
and wants of buyers accordingly develop menu plan for their restaurant and full
fill all demand effectively. Thus help to achieve higher clients satisfaction in long
run.
 Target market- In order to sale food product, company is find out target segment
on the basis of lifestyle, age, disposable income, gender, education etc.
 Funding- There are lot of fund resources where organisation get money to run
new business like financial institution, bank, angel investor and many others.
 Products and services- Firm has make mix menu related to variety and prices. So
that full fill demand to all segment buyers effectively (Law and et.al., 2015).
 Licensing- In United Kingdom, licensing is important for open new restaurant so
that firm are full fill all documentation requirement to start new enterprise
effectively.
Stage 2: Design
Some of the design elements has given below:
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 Ambience- In present scenario, company want to get large market share and
develop ambiance related to decision of consumers of accommodation facilities.
 Culture- Firm has develop positive cultural in order to enhance customer's
satisfaction which are came from different location. So that, its important for
workers to behave in professional way in order to sever quality of services.
 Exteriors and Interiors- It should be related to social cultural environment of UK
so that visitors may attract to know their values. Thus transform individual
satisfaction effectively (Medlik, 2012).
 Functional Areas- Management has established strong communication network
with in work place and use technology for booking services that improve function
of restaurant.
 Sustainability- Management of the company develop action of plan in order to
attract new customers as well as retain old ones with them thus enhance
sustainability in long period of time effectively.
Stage 3: Operation
 Staffing by functional areas- It is primary task for each one new business to hire
candidates according to their requirement and needs.
 Specialist qualifications- They also recruit specialist person like chef and many
others they want to fix their qualification according to requirement.
 Cultural diversity and ways to deal with dispute- Cultural diversification has
create dispute among employees those are came from different location. So that,
management develop healthy working environment to reduce conflicts at work
place (Sigala, Christou and Gretzel, 2012).
 Promotional activities and price: Small scale firm promote their product and
services through social media site, internet, gorilla marketing strategies and many
more.
M2 Design and apply appropriate
methods
There are two sources of information primary as well as secondary. Under this
assignment, secondary information sources are used its includes books, journals, newspaper,
magazine, internal, social media networking and many others. It help organisation to take right
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decision effectively resulted overall profitability should be enhance (Smith and Puczkó, 2014).
Relationship of hospitality and tourism sector has very vital and both are inter depended on each
others. With out this they are not effectively run business activities.
D2 Responsibility for managing and
organising activities
In this business plan follow three stages development, design and operation. Thus help
the to make whole report in a systematic manner resulted achieve goals and objectives in limited
period of time. The main step is marketing, operations management and recruitment of
appropriate candidates for an organisation. It is a paper work and it help when business plan
come in flour or reality. In that time, management follows all stages to established new venture
effectively at market place.
M3 Present and communicate appropriate
findings
In current market environment, there are lot of opportunities for restaurant which are
open with new ideas. In UK, approx 51% of total private organisation has small in their nature so
that there are lot of opportunity in market. Business plan may help to how completing whole for
establishing enterprise in reality (Teng, 2011). Hospitality sector has develop new fast and
number of visitor may rise on continuous basis resulted establishment of new venture like
restaurant is very profitable and get sustainability easily.
D3 Demonstrate convergent/lateral/creative
thinking
When developing business plan there are several step which follows by each one small
business owner. In this. Firstly they select ideas ' Restaurant' from all available alternatives and
then after do feasibility analysis of that idea whether it is possible to execute that thought in
reality or not. Then next, conducting market research to identify customer's needs and wants
accordingly develop menu of restaurant and develop marketing plan it covers promotions,
advertisement, design etc.
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CONCLUSION
From the above report it is concluded that hospitality sector has very fast growing
industry in the world and its create positive impact on tour & travel organisation performance. In
United Kingdom number of visitor increase resulted profitability as well as sustainability of the
company may enhance effectively. Vertical and horizontal integration both has beneficial for
enterprise to develop monopoly condition at market place and get competitive advantages.
Marriott international hotel has also make contract of merger with Starwood Hotels & Resorts
and increase brand value. In this assessment, make a business plan for new venture of restaurant
that help them to established it into reality.
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REFERENCES
Books & Journals
Barros, C. P., Butler, R. and Correia, A., 2010. The length of stay of golf tourism: A survival
analysis. Tourism Management. 31(1). pp.13-21.
Guttentag, D., 2015. Airbnb: disruptive innovation and the rise of an informal tourism
accommodation sector. Current issues in Tourism. 18(12). pp.1192-1217.
Heung, V. C., Kucukusta, D. and Song, H., 2010. A conceptual model of medical tourism:
Implications for future research.Journal of Travel & Tourism Marketing. 27(3). pp.236-
251.
Hudson, S. and Thal, K., 2013. The impact of social media on the consumer decision process:
Implications for tourism marketing. Journal of Travel & Tourism Marketing. 30(1-2).
pp.156-160.
Jaafar, M. and et. al., 2011. Entrepreneurship in the tourism industry: Issues in developing
countries. International Journal of Hospitality Management. 30(4). pp.827-835.
Law, R. and et.al., 2015. Distribution channel in hospitality and tourism: Revisiting
disintermediation from the perspectives of hotels and travel agencies. International
Journal of Contemporary Hospitality Management. 27(3). pp.431-452.
Medlik, S., 2012. Dictionary of travel, tourism and hospitality. Routledge.
Sigala, M., Christou, E. and Gretzel, U. eds., 2012. Social media in travel, tourism and
hospitality: Theory, practice and cases. Ashgate Publishing, Ltd..
Smith, M. and Puczkó, L., 2014. Health, tourism and hospitality: Spas, wellness and medical
travel. Routledge.
Teng, C. C., 2011. Commercial hospitality in restaurants and tourist accommodation:
Perspectives from international consumer experience in Scotland. International Journal
of Hospitality Management. 30(4). pp.866-874.
Tribe, J., 2011. The economics of recreation, leisure and tourism. Routledge.
Vanhove, N., 2017. The Economics of Tourism Destinations: Theory and Practice. Routledge.
Online
Definintion of Tourism (UNWTO Definition of Tourism) / What Is Tourism ?, 2018. [Online].
Available through: <http://www.tugberkugurlu.com/archive/definintion-of-tourism-
unwto-definition-of-tourism-what-is-tourism>./
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