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Index: hospitality news, hospitality accounting text, hospitality managerial accounting text, hotel accounting, restaurant accounting, accounting, finance
Raymond Cote, Author of hospitality accounting textbooks provides this news website for educators, students, and professionals in the hospitality fields of accounting, management and operations. Cote’s textbook customers make this website possible. These texts are:
Basic Hotel and Restaurant Accounting (Click the Principles/System button at left)
Accounting for Hospitality Managers (Click the Managerial Acctg Text button at lelft)
 BASIC HOTEL AND RESTAURANT ACCOUNTING is a hospitality principles and systems text; it also has several introductory managerial accounting chapters. Press the button at left of this page labeled Princples/System Text.
 ACCOUNTING FOR HOSPITALITY MANAGERS is an advanced hospitality managerial accounting and financial management providing coverage for hotels, restaurants and casinos. Press the button at left of this page labeled Managerial Acctg Text.
 Articles of General Interest
- Three interesting articles on fast food restaurants
- Five Keys to Restaurant Success:
http://www.fastcasual.com/article.php?id=16809&na=1
Transforming brand value: http://www.fastcasual.com/article.php?id=16747&na=1
Empowering front-line employees: http://www.fastcasual.com/article.php?id=16721&na=1
Several quick-service brands are expanding in nontraditional venues. http://www.qsrmagazine.com/articles/features/135/nontraditional_venues-1.phtml
Subway is Number 1 again. Find out its 2010 plans and additional ratings of other franchises.http://www.entrepreneur.com/magazine/entrepreneur/2010/january/204358.html
Customer index from the Zócalo Group and M/A/R/C Research rate California Pizza Kitchen as the number 1 casual dining restaurant. See the top 10 at:http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=118983
 Cost of Debit Card vs. PIN Transaction to the Retailer
- When a consumer uses a debit card, the consumer may use this card as follows: (1) As a debit card by signing for the transaction, or (2) simply as a PIN transaction or by the use of a special number assigned to the user. Debit card transaction cost the retailer an average of 75 cents for every $100 spent, more than twice that of a PIN transaction. While a debit card is a more expensive transaction to the retailer, debit cards account for 61% of all transactions. To the consumer, the cost is the same regardless which method is used. Visa has 73% in the signature debit card market in the U.S. and its domestic PIN debit market is 42% (and growing) according to The Nilson Report industry newsletter.
 International Expansion Plans of U.S. Companies
- McDonald’s, Burger King, and Subway have ambitious plans to expand in Russia. Refer to Russia in the separate International news section.
- Chipotle Mexican Grill is expanding in several international locations. See Canada, France, Germany and Great Britain for additional information.
- Cold Stone Creamery: See Thailand.
- Brinker Internationals: See Saudi Arabia
- Wendy’s has problems in Tokyo: See Japan
- Yum Brands plans a major expansion in India. See India in the international news section.
- See Israel for the return of Ben & Jerry’s.
- The parent of Outback Steakhouse is selling its Asian stores located in South Korea, Japan and Hong Kong. Proceeds will be used for payment of debt and revive its U.S. business.
 Other News of Interest
- North Carolina now bans smoking in restaurants and bars. The state is the nation’s leading tobacco grower, producing nearly half of the U.S. tobacco crops. According to the American Lung Association North Carolina is the 29th state to ban smoking in restaurants and the 24th to ban it in bars.
- Subway plans to add 130 more stores in Eastern and Central Massachusetts over the next five years.
At present 175 Subway restaurants are in that market. The expansion is planned by a combination of new franchisees in Massachusetts assisting existing franchisees to expand.
- Restaurants in New Jersey, starting next year, might be subject calorie posting requirements. Franchises with more than 20 locations nationally must show the number of calories for every menu item and post the information on drive-through boards and indoor menu boards. Non-compliant restaurants can be fined between $50 to $100 for a first offense; $250 to $500 for second and subsequent offenses.
- Burger King franchise operators are losing a few cents on each $1 two-beef patty burger. Most franchisees are following the current promotion, but the National Franchisee Association for Burger King, has filed a stating that franchise agreements don't allow the company to dictate prices to its franchisees. Burger King's rival, McDonald's Corp., faced a pricing issue in 2008regarding its $1 double cheeseburger. The matter was resolved when McDonald's removed one of the two slices of cheese and re-labeled the burger as the McDouble.
Dairy Queen is halving the price of its drinks at participating stores in a Happy Hour promotion similar to Sonic's: http://www.qsrweb.com/article.php?id=16348
Food Safety Is a Problem at U.S. Airports:http://www.usatoday.com/travel/flights/2009-12-23-airport-food-safety_N.htm
Index ranks the friendliest states in which to do business (two articles below):
http://denver.bizjournals.com/denver/stories/2009/11/30/daily24.html
 Income Tax Updates
Homebuyer Credit
- The new Homebuyer Credit legislation extends and expands the first-time homebuyer credit allowed by previous Acts. The new legislation extends the credit to long-time residents of the same main home if they purchase a new main home. Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return.
Refer to:
http://www.irs.gov/newsroom/article/0,,id=204671,00.html
http://www.irs.gov/newsroom/article/0,,id=218336,00.html
References for Original credit legislation to eligible buyers of 2009.
http://www.irs.gov/newsroom/article/0,,id=202222,00.html
http://www.irs.gov/newsroom/article/0,,id=187935,00.html
2009 Tax Return Notes
- Personal Exemption: $3,650 ($150 increase)
- Standard Deduction:
- Married/Joint & Qualifying Widow/er: $11,400
- Single & Married filing separate: $5,700
- Head of Household: $8,350
- Energy Efficiency Credit: 30% of cost; maximum credit $1,500.
- American Opportunity Credit: Up to $2,500 education credit. Student must have completed 4 years of college. Income limits apply.
- Earned Income Tax Credit:
- 3 or more qualifying children: $5,657
- 2 or more qualifying children: $5,028
- 1 qualifying child : $3,043
- No children : $ 457
- Maximum modified gross income for IRA Contribution deduction:
- $65,000
- $109,000 if married, filing jointly
- Retirement Deduction for IRA Contributions
- $5,000 $6,000 if 50 or older by end of 2009
- Mileage Deduction:
- Business: 55 cents
- Medical: 24 cents
- Deductible move: 24 cents
- Charity work: 14 cents
IRS Regulation of paid tax preparers starting in 2011
- All paid tax return preparers must register with the IRS and obtain a preparer tax identification number
- All paid tax return preparers must sign a federal tax return
- Requiring competency tests for all paid tax return preparers except attorneys, certified public accountants (CPAs) and enrolled agents who are active and in good standing with their licensing agencies.
- Requiring ongoing continuing professional education for all paid tax return preparers except attorneys, CPAs, enrolled agents and others who are already subject to continuing education requirements.
- Extending the ethical rules found in Treasury Department Circular 230 -- which currently only apply to attorneys, CPAs and enrolled agents who practice before the IRS -- to all paid
  
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AUTHOR’S PERSONAL CUSTOMER SERVICE
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EDUCATIONAL MATERIALS: Critical news and reports
AUTHOR’S PERSONAL TEST BANK: A computerized test bank, designed by the author is free to my customers. Each chapter contains a minimum of 20 questions in multiple-choice format. Every question relates to end-of-chapter material and therefore is appropriate for the testing process.
PREP GUIDE: Chapter by chapter guide to assist instructor’s in converting their lecture notes from the previous edition to the current edition. Eliminates instructors having to completely redo their lecture notes
AUTHOR’S CHAPTER OUTLINES: Listing of the major and sub-major topics in each chapter.
 INTERNATIONAL NEWS COMMUNITY
Canada
- Chipotle Mexican Grill plans to add two more restaurants in Toronto.
- Century Casinos has an agreement to acquire 100% of the outstanding common stock of Frank Sisson's Silver Dollar Ltd. and 100% of the outstanding common stock of EGC Properties Ltd. The transaction is valued at $10,650,000 (USD), plus/minus a working capital adjustment. The Silver Dollar casino is 3,000 square foot casino on seven acres of land in Calgary. The casino facility has 504 slots, 16 table games, 15 video lottery terminals, two restaurants, lounge, 5,000 square foot showroom, 18,000 square foot convention center and a 38-lane bowling alley.
China
- Starwood Hotels and Resorts Worldwide, Inc. has an agreement to open the brand's first hotels in China. The Astor Hotel, a Luxury Collection Hotel, is scheduled to open in May 2010 after a $22 million renovation. The Malus Sanya, a Luxury Collection Resort, a new resort is scheduled to open in 2012.
- Hyatt Hotels Corporation and Suning Real Estate Development Co. have signed agreements for Hyatt to provide management services to three hotels in China's Jiangsu province. Hyatt Regency Wuxi and Hyatt Regency Xuzhou are projected to open in 2012 and Grand Hyatt Nanjing is to open in 2013.
- Jumeirah Group, a Dubai-based luxury hospitality company, will manage a luxury hotel in the Yangtze River Delta tourism hub of Hangzhou.
- JAL Hotels Co., Ltd. will add a new 443-room hotel in Xiamen, China, to Nikko Hotels International, its luxury international hotel group, in spring 2011. Hotel Nikko Xiamen is one of four new Nikko Hotels being built in China; for a total of 9 Nikko Hotels.
- Krispy Kreme Doughnut Corporation’s franchise partner, KKD Lotte Holdings Company, Ltd., has opened the first Krispy Kreme doughnut shop in Shanghai, China. The franchisee plans to open 34 more Krispy Kreme in the next five years. Lotte also is Krispy Kreme's franchisee in the Republic of Korea and Japan.
Cyprus
- The Association of Cyprus Tourist Enterprises, STEK, and the Cyprus Hotel Association, PASYXE, are among the groups that oppose the governments’ proposals on property tax. The STEK and PASYXE stated "this move will hit the hotel industry as hotel units will be required to pay much higher taxes; 10-15 times more than under he current system" and called on the government to deal with the problems in the "wasteful" public sector. ------------------------------ As a result, the proposed taxation will be the ‘coup de grace’ for the hospitality industry, whose survival will become even more problematic and doubtful."
- The government's statistics office reported that Cyprus tourist arrivals decreased 10.9 percent in 2009. Tourism contributes almost 12 percent of the island's GDP and the majority of visitors come from European countries also affected by the global recession. Tourists from Britain, the largest source of tourists, dropped 10.3%; tourists from Germany declined 7.8%. However, Greek tourists increased by 3.2%. The tourism sector could experience an exceptional unemployment rate of 7% or more.
France
- Chipotle Mexican Grill is searching for sites in France.
Germany
- Chipotle Mexican Grill is searching for sites in Germany.
Great Britain
- Chipotle Mexican Grill plans to open a London location in April, its first restaurant in Europe. The company is also looking for additional London locations for new restaurants.
Hong Kong
- The parent of Outback Steakhouse is selling its Asian stores located in South Korea, Japan and Hong Kong. Proceeds will be used for payment of debt and revive its U.S. business.
India
- Yum Brands is planning a major expansion in India for its KFC and Taco Bell brands. Yum is behind its competition in the fast growing Indian market. Yum operates 72 KFC outlets compared to McDonald's Corp.'s 170 stores. Yum has 158 Pizza Huts compared to the 274 Domino's Pizza stores. Yum’s objective is to have 1,000 restaurants in India by 2015.
- Choice Hotels International, Inc. has agreed to acquire the remaining 60 percent ownership interest in Choice Hospitality (India) Ltd. Choice Hospitality India is the master partner and franchisor of Choice's hotel brands in India. After the completion of the agreement, the company will be operated as a wholly owned subsidiary.
- Carlson Hotels plans to grow from 28 hotels in 2009 to 78 by 2012. The plan is in process and includes four brands: Radisson Hotels & Resorts, Country Inns & Suites, Park Plaza Hotels & Resorts and Park Inn.
- Carlson Hotels has signed an agreement to increase its stake in RHW Hotel Management Services Ltd. from 13% to 87%, subject to government approval. Private investors hold the remaining 13%.
- Carlson Hotels plans to expand its luxury brand Regent Hotels & Resorts into India with the opening of The Regent Gurgaon in late 2013.
Israel
- Ben & Jerry’s ice cream is returning.
http://www.jpost.com/servlet/Satellite?cid=1259831470123&pagename=JPost%2FJPArticle%2FShowFull
Japan
Wendy’s could not renew its franchise agreement with its Tokyo-based franchisee and Wendy’s is searching for a fitting new partner. Wendy’s is Japan’s seventh-largest burger chain,
- The parent of Outback Steakhouse is selling its Asian stores located in South Korea, Japan and Hong Kong. Proceeds will be used for payment of debt and revive its U.S. business.
Malaysia
- Malaysia came in fifth in the top Asia travel destinations, after China, Thailand, Hong Kong and Japan. Top attractions for travellers to a destination include great natural scenery, sunshine and beaches and exploring new places.
- The Travel & Leisure 500 magazine includes the 500 best hotels in the world per a survey of its readers. Shangri-La was awarded the number one spot in Hong Kong, Shanghai, Malaysia, Taiwan and the Philippines.
Mexico
- Wyndham Hotels and Resorts and Palace Resorts stated that four upscale Palace Resorts properties in Mexico are to join the Wyndham brand. Beach Palace in Cancun, Isla Mujeres Palace in Isla Mujeres, and the Playacar Palace and the Xpu-Ha Palace both in Riviera Maya. Xpu-Ha Palace will be re-branded as a Wyndham Resort. Beach Palace, Isla Mujeres Palace and Playacar Palace will have the Wyndham Grand Resort designation. All will continue to be owned and operated by Palace Resorts.
Netherlands
- Wyndham Hotel Group announced that the Apollo Hotel Amsterdam, a 223-room hotel with a 50-year history of guest service, is now an upscale Wyndham Hotels and Resorts brand; it is its first hotel in the Netherlands.
Philippines
- The Travel & Leisure 500 magazine includes the 500 best hotels in the world per a survey of its readers. Shangri-La was awarded the number one spot in Hong Kong, Shanghai, Malaysia, Taiwan and the Philippines.
Russia
- McDonald's presently has 233 stores in Russia and plans open at least 40 more in 2010. McDonald's, has a 70 percent share of Russia's quick-service restaurant market. Investment in a single Russian restaurant ranges from $3-$5 million.
- Burger King is planning to open its first Russian restaurant in Moscow in 2010.
- Subway presently has 78 stores in Russia and plans to expand to about 1,000 by 2015.
Saudi Arabia
- Brinker International has opened its first Maggiano's location in Saudi Arabia, the only franchised Maggiano’s restaurant outside of the US. Maggiano's Little Italy specializes in Italian-American cuisine.
Singapore
Wendy's/Arby's International opened its first of 35 Wendy's restaurants scheduled to be built by the Kopitiam Group in Singapore over the next 10 years. The franchise restaurant is located in Lau Pa Sat Festival Market.
South Africa
- Hyatt Hotels & Resorts announced the opening of Hyatt Regency Oubaai Golf Resort and Spa, located on Herolds Bay in George, South Africa. The resort is the second Hyatt property in South Africa, joining Hyatt Regency Johannesburg, which opened as a Hyatt hotel in October 1995. The 100-room Hyatt Regency Oubaai is part of the 263-hectare Oubaai Golf Resort overlooking the Indian Ocean on Herolds Bay. The development also features the country's first Ernie Els championship golf course.
South Korea
The parent of Outback Steakhouse is selling its Asian stores located in South Korea, Japan and Hong Kong. Proceeds will be used for payment of debt and revive its U.S. business.
Switzerland
Switzerland-based Golden Tulip Hospitality Group has opened the "Tulip Inn" in Lucknow, a new 50-room three-star hotel. In association with the Louvre Hotels, openings in December were: the 344- room Golden Tulip El Mechtel in Tunisia, two Kyriad hotels in France and three Golden Tulip hotels in Thailand. The group plans to open 28 new hotels in 2010 1,250 hotels in 2011.
Thailand
- Cold Stone Creamery has signed a 20-year agreement with Central Restaurants Group Co. Ltd. to open its ice cream brand stores in Thailand. The goal is to open 10 stores by 2014; the first Thailand location should open in February in Bangkok.
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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.
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