F&B Restaurant: Strategic Management Report, Q1 Performance Review

This report provides a strategic management analysis of an F&B restaurant's performance, focusing on its online presence and the importance of digital strategies in the hospitality industry. It begins with an introduction to strategic management and its significance in the competitive restaurant business, emphasizing the need for proactive strategies to achieve short-term and long-term goals. The report then analyzes the restaurant's quarterly performance, comparing it to the business plan's forecasts, and identifies areas for improvement. It highlights the critical role of an online presence, supported by examples like the Marriott group of hotels, discussing the benefits of websites, social media, and e-commerce. Emerging trends, such as AI-assisted support and cryptocurrency, are also discussed. The report concludes with recommendations to increase the company's online presence, expand partnerships, and source more finances to pursue an expansion strategy. The report uses the Marriott Hotels and Restaurants as a case study of a company in the hospitality industry that has used online marketing strategies to achieve its goals.

Running Head: STRATEGIC MANAGEMENT 1
STARTEGIC MANAGEMENT
Name of student
Institution

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Introduction....................................................................................................................3
Importance of online presence for the restaurant business............................................4
Emerging trends which may impact on the hospitality industry in future.....................6
Opportunities for F&B to increase market share and revenue.......................................7
Recommendations..........................................................................................................7
Conclusion......................................................................................................................7
References......................................................................................................................8

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Introduction
Strategic management is a very important aspect of the management of every
business. Strategic management is the process that helps a business organization to
come up with tactics that help a company to become competitive in the market and
attain its short term and long term goals (Bore, Rutherford, Glasgow, Taheri &
Antony, 2017). The hotel and restaurant business is very competitive and sensitive
industry since it is a service industry. Every company operating in this industry must
continuously come up with strategies that steer the company towards the attainment of
its objectives. This report analyzes the quarterly performance of F & B team
restaurant. The results are then compared to what was forecast in the business plan,
and new strategies are designed to help the restaurant improve and attain its objective
for quarter 2. The restaurant has to stay ahead of trends and take advantage of
opportunities to stay competitive in this market. The simulation establishes how
online presence for today's restaurants impacts performance and subsequent
marketing efforts. The restaurant was established eight years ago and it has been
experiencing declining occupancy rates and hence decline in revenue over the last few
years. The hotel has 350 rooms and a restaurant with 200 seats and adjourning 50
seats bar. Hotels in this area have experienced a steady decline in performance over
the past few years. This can be attributed to the increase in competition from other
cities as well as lack of finances to fund operations. This report therefore designs
strategies that the business should apply to reverse the situation and achieve its
objectives.
Importance of online presence for the restaurant business
In this digital age, it is very important for a business to have an online presence.
There are various ways in which a business can have an online presence. It can be

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through a website, social media accounts or e-commerce sites. Research indicates
more than 70% of the world populations have access to the internet (Wood, 2015).
There has been a growing popularity of e-commerce over the last decade. The
increase in popularity of social media and its association with business also means
that every business has to be online. The hotel and restaurant business is also one of
the most dynamic markets. The following are some of the reasons why it is important
for a business like F& B restaurant to have an online presence.
An example of a business that has been successfully implementing the online
strategy is the Marriot group of hotels. Marriot hotels and resorts are one of the largest
hotels globally. The company has more than 566 hotel outlets in different parts of the
globe. It was founded in the year 1957, and it has a global presence (Enz, 2010). The
restaurant was voted the best company to work for by the Times in the year 2009.
Despite the company attaining most of its success before the onset of the online age,
the restaurant has also shaped its strategy to adapt to the current needs and trends in
the hospitality industry at present times. Marriott Hotel and Resorts has managed to
grow in a period where companies such as Airbnb have brought immense competition
to the hospitality industry. The online strategy of the company has played a huge role
in the success of the company.
Marriott has used the strategy of user-generated content to attract more
customers. Research shows that Millennials are spontaneous and that 49% book trips
in the last minute and only 58% book traditional lodgings. More than 80% of
prospective and existing customers use social media information to make decisions
("Marriott launches category marketing strategy with 'Golden Rule' campaign", 2019).
It is for that reason that the company came up with a project with high profile
snapchat influencers to make “Episodes” which mimic television travel

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documentaries (Munjal, 2017). This has helped to attract clients for luxury properties.
The campaigns can reach customers using Snapchat, YouTube and Facebook. The
program uses graphics to capture the attention of consumers, and it's more effective
than mainstream advertising.
Marriott also uses M Live to interact with consumers and understand their needs.
Arne Sorensen, the President of Marriott International, notes that social media is
allowing the company to draw attention to itself and to see guests in the spotlight.
This helps to build personal relationships which help to create two-way loyalties. The
company also designed the Marriott App which customers use to make bookings and
purchase products (Plunkett, 2018).
The establishment and growth of Marriott Hotels and restaurant Ltd can be
attributed to the strategies that the company has applied over time. One of the
strategies that the company has used to achieve its success is the philosophy of
"treating people like people". The company policy is based around treating customers
in the best way possible. Marriott has one of the best and happiest staff globally. This
contributes to the staff treating customers in the right manner and becoming highly
hospitable. The company focuses on luxury products. It offers customers a wide range
of products to choose from. Most of the customers who have spent time at the hotel
appreciate the hospitality and high quality services offered at the restaurant.
Another strategy that has contributed to the growth of Marriott hotels is its expansion
strategy through acquisitions. The company has made acquisitions for example Protea
hotels and Starwood Hotels Ltd (Cai & Alaedini,2018). Marriott has been able to
develop a conversion friendly strategy which allows the company to deliver value to
partners through flexible and cost efficient processes. The company has been able to
acquire various brands in all continents in the world. The company’s expansion

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strategy has seen it increase its customer base and establish itself as a giant in the
hospitality industry. Without its acquisition strategy, Marriott could not have grown to
achieve the size it has currently attained.
Emerging trends which may impact on the hospitality industry in future
The use o AI-assisted support. Businesses in the travel and hospitality industry
are using artificial intelligence (AI) to automate bookings and navigation. Businesses
in the hospitality industry are also developing natural language processing technology
which will make it easier for companies to handle customer queries (Olsen, West
&Tse, 2014).
The use of cryptocurrency is expected to be embraced by different industries
including the hospitality industry. Cryptocurrency enables value exchange
transactions that eradicate fees that are incurred when banks and credit cards are used.
(Piasetskaya & Matuszak, 2018) Use of cryptocurrency in the hospitality industry in
future will enable smoother and secure transactions.
Opportunities for F&B to increase market share and revenue
F& B restaurant should develop AI systems which will enable customers to get
instant and accurate feedback from robots. This will lead to an increase in the
efficiency of the company’s operations. Customer satisfaction will also increase and
hence lead to an upsurge in the number of customers and hence increase profitability.
F&B restaurant should adopt cryptocurrency as a method of payment and encourage
customers especially foreigners to pay using this method. This will be more
convenient to customers because costs are lower and it's less beauricratic.
Recommendations
 Increase the companies` online presence and social media activities in order to
attract more clients and meet the needs of consumers.

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 Increase partnership and source for more finances in order to pursue an expansion
strategy for the company.
Conclusion
This report analyzes the performance of F&B restaurant for the first quarter of
operation. From the analysis of the performance, various shortcomings have been
identified as contributing to the company not attaining the desired performance as
forecast in the business plan. It is therefore clear that an online strategy for the
business must be developed to attract more clients and keep up with customer needs.
The report uses Marriott Hotels and Restaurants as the case study of a company in the
hospitality industry that has used online marketing strategies to achieve its goals.
Current trends in the industry are being discussed in this paper.

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References
Bore, I., Rutherford, C., Glasgow, S., Taheri, B., & Antony, J. (2017).A systematic
literature review on eWOM in the hotel industry: Current trends and suggestions
for future research. Hospitality & Society, 7(1), 63-85. doi:
10.1386/hosp.7.1.63_1
Cai, L. A., &Alaedini, P. (2018). Quality Services and Experiences in Hospitality and
Tourism.Melbourne;Melbourne University Publishing
Enz, C. (2010). Hospitality strategic management.Hoboken, N.J.: John Wiley & Sons.
Munjal, S. (2017).Indian Hospitality Industry. Oakville: Apple Academic Press.
Piasetskaya, I., &Matuszak, A. (2018). Hotel Industry – Requirements for Hotel
Business Managers’ Participatory Culture Acquisition. New Trends In
Production Engineering, 1(1), 639-644. doi: 10.2478/ntpe-2018-0080
Plunkett, J. (2018) Restaurant, Hotel & Hospitality Industry. Almanack.
Sydney;Sydney University Press.
Wood, R. C. (2015). Hospitality Management: A brief introduction.Collingwood:
Schwartz Publishing Pty, Limited
Olsen, M., West, J., &Tse, E. (2014).Strategic management in the hospitality
industry. Harlow: Pearson.