Hospitality Management Report: Dining Concept Analysis for Park Hotel

This report provides an evaluation of three different dining concepts for The Park Hotel, including a detailed financial comparison of each restaurant concept. The study analyzes the current operational issues of the Park Hotel, highlighting poor customer handling and service quality. The report assesses three potential concepts: a fine dining concept (Concept A), a fast-food takeaway concept (Concept B), and the current operations. The evaluation considers service sequence, customer process, service style, and the impact on customer service for each concept. Financial data, including profitability ratios, are analyzed to determine the most viable option. The report recommends the adoption of Concept B (fast food takeaway), emphasizing its potential to improve both financial performance and customer satisfaction. The analysis underscores the importance of lean management, instant food delivery, and health-conscious options to meet modern customer expectations. The report concludes with a strong recommendation for The Park Hotel to consider Concept B to revamp its restaurant operations.

Running Head: HOSPITALITY MANAGEMENT
Topic- Fine Dining concept in the Park Hotel
Student name
University name
Author notes

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EXECUTIVE SUMMARY
The report is based on the evaluation of the three different dining concepts for The Park
Hotel and also includes financial evaluation of the three restaurants considered for concept
evaluation. After evaluation it is found that the Park which was having poor customer handling
issues need to adopt the concept B of the Hub, fast food takeaway concept to support both its
financials and customer support base. Detailed evaluation based on food and beverage sector is
provided in the discussion section.

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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
DISCUSSION..................................................................................................................................5
EVALUATION OF DINING CONCEPTS.................................................................................5
CURRENT OPERATION........................................................................................................5
CONCEPT A (FINE DINING CONCEPT OF THE LEAF)...................................................6
CONCEPT B (FAST FOOD TAKEAWAY-THE HUB)........................................................7
FINANCIAL COMPARISION....................................................................................................8
CONCEPT RECOMMENDATION............................................................................................8
REFERENCES..............................................................................................................................10

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INTRODUCTION
Food and beverage industry are one of the fastest growing industries globally (Davis et
al., 2018). The report is an evaluation of the three dining concepts applicable to the Park Hotel
and recommendation of the best concept for the organization in terms of services, customer
satisfaction and financial viability. Park hotel is currently doing poor in terms of customer
attendance and food service needs is not met holistically. The need for revamp is required in
terms of service style, food production and ambience. There are three dining concepts available
and need to choose the best with supportive data and information. Based on the best concept
evaluation, recommendations are justified by the use of various approaches used in food and
beverage establishments.

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DISCUSSION
EVALUATION OF DINING CONCEPTS
Park Hotel is based on accommodation and food and drink service operations.
Accommodation services in Park Hotel is dining pretty good but the food and drinks section is
not doing good and need to be revamped. Three dining concepts are available to choose the best
fitted one and the evaluation of each concept is mentioned below.
CURRENT OPERATION
Service sequence and customer process
The current operation does not focus on service sequence and service quality at all. They
are mainly focused on the financials and total number of footfalls of customers. As a result of
which the hotel in spite of being centrally located is not able to hold its customer base and a
nearby restaurant is capturing its breakfast services because of the latter’s popularity among
people and quality of breakfast being served there (Martinez, 2013). Function is a different genre
of operation which does not rely more on service quality and customer satisfaction. The
ambience matters the most there. So, the above evidences are enough to support the fact that
service sequence and customer process management in Park hotel is not up to the mark as per its
current operation is considered. Dinner option is not provided as the hours of operation is up to 3
PM. Both breakfast and lunch are limited and on Sunday restaurant service is closed.
Impact on customer services
Food and beverage sectors are not purely based on service experiences (Wu, Huang &
Chou, 2014). Customer experiences is a wider concept and is not only linked to quality of food.
It is now connected to the hospitality management concept and managing customer experiences

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is not at all an easy task. The current operations show that it is a profit-oriented hotel and is less
concerned about customer satisfaction and quality service providence (Grekova et al., 2014,
pp.152, 174-187). No mention of the type of customer service is provided that is there is no
‘customer service specifications’ and ‘quality’ would be a solution to the poor customer base in
the Park Hotel.
Service style
Again, there is no fixed service style currently in the Park hotel. Breakfast should be high
both on quality and customer satisfaction. Poor service style may be due to inefficient staffing or
may be poor meal delivery or may be poor quality of food being served (Kemp, 2013, pp. 109-
138). Focus is given only to costing part in current operational mode.
CONCEPT A (FINE DINING CONCEPT OF THE LEAF)
Service sequence and customer process
In Leaf the services are likely to expand from lunch to dinner and will be open on
Sundays. This concept intends to focus on specific audience segment and primary segment will
be intimate diners and high-end tourists having high dining preferences (Legrand, Chen & Sloan,
2013). Services are to be matched to breath taking Sydney restaurant settings and focus will be
on modern Australian cuisines. This dining concept assures inspirational cooking, friendly staff
hospitality and professional services (Kim, Vogt & Knutson, 2015, 170-197). This concept is
narrow as per demographic profiling and risk of failure is pretty higher.
Impact on customer service
High level customer service will be focused along with increased food quality by use of
fine ingredients. Customers focused will be based on refined demographic characteristics like
high income groups and also will be differentiated based on age groups. Customer service can be

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quantified and there will be 1 staff support for 3 tables to be served. So, the focus on customer
services is pretty high.
Service style
Authentic and modern Australian Cuisines are to be provided to the end customers. This
will narrow down the customer base and focus group can be served more profoundly. But this
will also reduce financial stability of the Park hotel. The lunch and dinner coverage customers’
limit are increased and the function host alternative is dropped as a result (Bharwani & Jauhari,
2013, 823-843). The menu is specified into three sections of Entrée, main course and desserts.
CONCEPT B (FAST FOOD TAKEAWAY-THE HUB)
Service sequence and customer process
The concept of the Hub is to provide fast food but with slow principle adaptation.
Takeaway food services benchmark does not apply to restaurants but if takeaway is changed to
in store consumption then a restaurant service like in The Park’s will be much effective.
Environmental sustainability and food production methods are focused upon (ROI, 2019).
Ingredient standards are high and fresh healthy food is being served in-spite of being a fast food
delivery restaurant. Volume enhancement along with increased service style is the main aim of
this food business (AMI, 2019). Service speed and quality product are to be provide to the
customers at the same time. Counter service staff and cook support is emphasized. And lean
philosophy of food delivery will be targeted. Here also the function alternative is dropped due to
increased customer support volume.
Impact on customer service
Present day customers are health-conscious on one hand and on the other want quality
food options. Keeping this in mind the food service operations in the Hub are decided upon.

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Moreover, time is another factor in this busy world, here customers are not be kept waited and
instant services will be delivered to them (BVO, 2015). The dining and lunch options are
affordable and targeted customers are middle-class and upper-class families and also young
professionals.
Service style
Service style is based on lean philosophy where floor staffs are floor runners and orders
are made at counters rather than on tables. Thus, to have fresh, sustainable and affordable casual
dining the Hub is the best option. Moreover, volume of service is another focus are of the Hub.
FINANCIAL COMPARISION
The financial comparison is shown in the excel attached and it is clear from the ratio
analysis that the third option that is concept B of the Hub is the most profitable one. Financial
performance benchmarks are reported on tax returns of the current financial year and are based
on income and expenses of the business in similar industrial background (ATO, 2019). The
current profitability ratio as a support of annual turnover (deduced from monthly data) in the
current business operations is 30%, for the second option it is 18% and for the third it is the
highest that is 33%.
CONCEPT RECOMMENDATION
So as per the evaluation, it is evident that the Park Hotel should adopt the third dining
concept (concept B of the fast food takeaway the Hub) in order to have both higher customer
base and increased profitability. Though as per restaurant benchmarks takeaway food services
are not to be supported in restaurant business but if takeaway concept is segregated from the
whole operational service of the Hub and replaced by in store consumption then the rest mode
will best suit to the Park (ATO, 2019). The current ratio analysis of the three financials of the

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companies clearly shows that the profit percentage is higher in the case of the Hub and is 33%.
The second dining concept of the leaf is not at all profitable and has only 18% profit and the first
current business operation at the park is showing 30% profit. Moreover, Park hotel is having
poor performance in regard to its customer base and most guests prefer the nearby café for
having their breakfasts. If the concept of lean management and instant food delivery option is
being adopted by the Park the problem could be solved to a greater extent. Also, present day
people are more health conscious and having a healthy fast food would be like a dream come
true because the popularity of fast food cannot be replaced by any cuisine (Food and beverage
industry associations | Business Queensland, 2019). Also, time management is another factor that
is emphasized by this generation people. If food is provided instantly specially the breakfast then
the customers will be much more satisfied as breakfast is generally the start of the rush hours of
the day for any professionals (Goodfellowpublishers, 2019). High variety, healthy and tasty food
that too on time is what the customers can expect at large. So, the third alternative that is concept
B of the Hub is highly recommended for the Park Hotel to consider while revamping the
restaurant.

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REFERENCES
AMI, A. (2019). Australia: A Strong Export Market for U.S. Food & Beverage Manufacturers -
Athena Marketing International (AMI). Retrieved from
http://athenaintl.com/articles/australia-a-strong-export-market-for-u-s-food-beverage-
manufacturers/
ATO. (2019). Restaurants. Retrieved from https://www.ato.gov.au/Business/Small-business-
benchmarks/In-detail/Benchmarks-by-industry/Accommodation-and-food/Restaurants/
ATO. (2019). Takeaway food services. Retrieved from https://www.ato.gov.au/Business/Small-
business-benchmarks/In-detail/Benchmarks-A-Z/R-Z/Takeaway-food-services/
Bharwani, S., & Jauhari, V. (2013). An exploratory study of competencies required to co-create
memorable customer experiences in the hospitality industry. International Journal of
Contemporary Hospitality Management, 25(6), 823-843.
BVO. (2015). Australia’s Food and Beverage Industry – Innovation and Growth on the Menu -.
Retrieved from https://businessviewoceania.com/australias-food-and-beverage-industry-
innovation-and-growth-on-the-menu/
Davis, B., Lockwood, A., Alcott, P., & Pantelidis, I. S. (2018). Food and beverage management.
Routledge.
Food and beverage industry associations | Business Queensland. (2019). Retrieved from
https://www.business.qld.gov.au/industries/hospitality-tourism-sport/food/industry-
associations

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Goodfellowpublishers. (2019). Retrieved from
https://www.goodfellowpublishers.com/free_files/Chapter%207-
b4faa323de523c58e175dda5923a9dec.pdf
Grekova, K., Bremmers, H. J., Trienekens, J. H., Kemp, R. G. M., & Omta, S. W. F. (2014).
Extending environmental management beyond the firm boundaries: an empirical study of
Dutch food and beverage firms. International Journal of Production Economics, 152,
174-187.
Kemp, S. E. (2013). Consumers as part of food and beverage industry innovation. In Open
innovation in the food and beverage industry (pp. 109-138). Woodhead Publishing.
Kim, M., Vogt, C. A., & Knutson, B. J. (2015). Relationships among customer satisfaction,
delight, and loyalty in the hospitality industry. Journal of Hospitality & Tourism
Research, 39(2), 170-197.
Legrand, W., Chen, J. S., & Sloan, P. (2013). Sustainability in the Hospitality Industry 2nd Ed:
Principles of Sustainable Operations. Routledge.
Martinez, M. G. (Ed.). (2013). Open innovation in the food and beverage industry. Elsevier.
ROI. (2019). Key Ratios Benchmarks. Retrieved from https://retailowner.com/Benchmarks
Wu, P. H., Huang, C. Y., & Chou, C. K. (2014). Service expectation, perceived service quality,
and customer satisfaction in food and beverage industry. International Journal of
Organizational Innovation, 7(1).