March 2010 News

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 The texts are: Basic Hotel and Restaurant Accounting (Click the Principles/System button) Accounting for Hospitality Managers (Click the Managerial Acctg Text button)   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 INTEREST Seven Keys to Building Customer Loyalty--and Company Profits: http://www.fastcompany.com/article/seven-keys-to-building-customer-loyalty-and-company-profits?partner=rss Utilitarian and Reception of the TIP JAR: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/03/04/DDUU1C93MF.DTL&tsp=1 Mario Batali’s Success and Future Plans: http://www.time.com/time/nation/article/0,8599,1967220,00.html Ten Strategies To Succeed In This Depressed Restaurant Economy: http://www.entrepreneur.com/magazine/entrepreneur/2010/march/204986.html National Chains Plan A Large Number Of Store Openings: http://www.forbes.com/2010/03/16/retail-expansion-recession-markets-equities-property.html?boxes=Homepagerebuilding   UNITED STATES NEWS   PROMOTIONS AND MARKETING Arby's (Wendy's/Arby's Group Inc.) is planning a nationwide dollar menu month and spending millions for updating and remodeling its restaurants. Its recent $5 meal deals have failed. Revenue has decreased 7%. For the quarter that ended Jan. 3, the company had a loss of $13.6 million, or 3 cents per share. Burger King is advertising its Steakhouse XT burger line at an introductory price of $3.99 and a $4.49 alternative. A Whopper burger sells for an average $3.19 at company stores. Future promotions will feature both the XT and the $1 double cheeseburger, but 70% will target the premium burger. DineEquity Inc. is using different strategies for its two brands to increase sales. Applebees introduced an "under 550-calorie" menu. IHOP will focus more on value, such as its recent national price of $4.99 for unlimited pancakes. Both brands will focus on promoting new menu items.   INTERNATIONAL GROWTH OF U.S. CORPORATIONS (See International News Section below for more            information) Subway plans to open 500 stores in China in the next 5 years; 35 to 50 will open this year. Starbucks now sells tea drinks in China in response to the demands of local consumers; it is also selling teacups and teapots. At the end of 2009, Starbucks has over 700 coffee shops in Greater China, including over 360 in mainland China. Starbucks will introduce Starbucks VIA® throughout Company-operated and licensed locations in the U.K. on March 8 and in Japan on April 14. Subway plans to open 500 stores in China in the next 5 years; 35 to 50 will open this year. A standard subway sandwich costs around 20 yuan ($2.93) compared with 6 yuan for a cheeseburger at McDonalds. Subway has 150 stores in China compared with McDonald's 2,000+ stores. Hilton Worldwide has signed a multi-year management agreement with Consorcio Hotelero S.A. de C.V. for a Doubletree by Hilton full-service hotel in Mexico. Construction of the Doubletree by Hilton, Merida is expected to begin this month with a scheduled completion in March 2011.   DOMESTIC GROWTH Dunkin' Donuts expansion for 2009 increased 351 new locations worldwide and 171 new restaurants in the U.S. 90 percent were outside of the New England market. Some of the new outlets are in airports, arenas, travel plazas, and universities.   FINANCIAL REPORTS DineEquity Inc. (Applebees and IHOP) reported a fourth-quarter loss but the results were better than analysts’ estimates. Starbucks is test marketing a 31-ounce iced teas and iced coffees in Phoenix and Tampa. McDonald's continues with its national 32-ounce sweet tea for $1.   NEWS OF INTEREST Jerry Remy, the Red Sox TV color commentator, opens his new restaurant "Jerry Remy’s Sports Bar & Grill," For $500, fans get to skip the line before Red Sox games (home or away games), have a guaranteed table (once the game starts), and receive a $25 food credit and one free beer per visit and other perks, including an autographed picture of Jerry Remy at your table. The $500 does not buy a seat in the park. Remy’s goal is to duplicate the season-pass offer to attract fans year-round, with $350 Patriots package and a $250 Celtics package. Panera will be the first nationwide chain to voluntarily post calorie information at all of its company-owned restaurants. Yum Brands Inc. (parent of KFC, Taco Bell, Pizza Hut, Long John Silver's and A&W All-American Food plans to put calorie counts on menu boards at more than 3,200 nationwide corporate-owned restaurants by Jan. 1, 2011. New York City's 24,000 restaurants will have to display large letter grades near their entrances indicating their kitchen cleanliness rating by the Board of Health. The best grade is an A. New York City's restaurant inspection reports were already available online, but officials claim posting the information makes it more convenient for consumers. (The new regulations do not apply to mobile food cars; though New Yorkers are most suspicious of food sanitation issues.) The Board of Health in Los Angeles grades its restaurants with A for scores of 90 to 100 percent, B for 80 to 89 percent and C for 70 to 79 percent. A restaurant scoring under 70 percent twice in a year is subject to closure.   ACCOUNTING AND FINANCE SEC Halts Ponzi Scheme Preying on Retirees Attending Estate Planning Seminars: http://www.sec.gov/news/press/2010/2010-37.htm IRS Releases Guidance for Ponzi Scheme Investors: http://www.journalofaccountancy.com/Web/20091552.htm IRS Outlines Additional Steps to Assist Unemployed Taxpayers and Others: http://www.irs.gov/newsroom/article/0,,id=220001,00.html IRS Warning About Schemes, Scams and Cons: http://www.irs.gov/compliance/enforcement/article/0,,id=105786,00.html   INTERNATIONAL NEWS Australia Sydney is the international travelers' favorite destinations with 20% of leisure and business travelers staying on average 3.1 nights at average room rates of $195. Melbourne is second with 12.5% of travelers and a $169 ARR. The other popular spots, listed in order are Gold Coast, Canberra, Adelaide, Perth, Brisbane, Hobart, Coffs Harbour and Cairns. Canada The ARR fell by 8% in 2009 according to the Hotel Price Index released by Hotels.ca. Halifax and Quebec City had the highest nightly room rates at $154. Vancouver and Calgary were the third and fourth most expensive major Canadian cities at $146. Montreal’s ARR was $144. Toronto was eighth at $135. The most expensive Canadian destinations were outdoor adventure/ski locations such as Lake Louise, AB ($236), Mont Tremblant, QC ($209) and Collingwood, ON ($202). China Starbucks now sells tea drinks in China in response to the demands of local consumers; it is also selling teacups and teapots. At the end of 2009, Starbucks has over 700 coffee shops in Greater China, including over 360 in mainland China. Subway plans to open 500 stores in China in the next 5 years; 35 to 50 will open this year. A standard subway sandwich costs around 20 yuan ($2.93) compared with 6 yuan for a cheeseburger at McDonald’s. Subway has 150 stores in China compared with McDonald's 2,000+ stores. Marriott International plans to open its third Renaissance-branded hotel and first upscale Marriott Executive Apartments property for extended stay travelers in Tianjin, China later this year, under a management agreement with Tianjin Tianbin Real Estate Development Co., Ltd. The two hotels are the 368-room Renaissance Tianjin Lakeview Hotel and the 96-unit The Lakeview, Tianjin—Marriott Executive Apartments. Life Resort Management reports that Life Resort Danang, a187-room resort on Bac My An Beach, will officially open April 4. Cyprus The first Cyprus Wine Awards was held in March. Fifty awards were made to 23 wineries. Local wineries have made considerable progress in the last decade; the industry has progressed from grape product processors to a quality bottled-wine industry producing notable wines. France New rules for France’s travel industry: http://www.lexology.com/library/detail.aspx?g=52d27723-c1ed-45e8-aeae-b13e15e889d0 India India’s top chef is starting his own TV network. See: http://www.washingtonpost.com/wp-dyn/content/article/2010/02/23/AR2010022301324.html India’s hotel industry is recovering based on data from STR Global; showing an upward trend and positive year-on-year growth RevPar. One favorable factor is the economic growth factored at 8.5% for 2010-2011 (Source: Ministry of Finance, Economic Survey). The Commonwealth Games hosted by Delhi during October will be another positive factor. Japan Starbucks will introduce Starbucks VIA® throughout Company-operated and licensed locations on April 14. Malaysia Kenny Rogers Roasters, operated by Berjaya Roasters, plans to add another 10 restaurants in 2010. The company presently has 63 restaurants in Malaysia, of which 47 are company0owned and 16 are franchised. Mexico Hilton Worldwide has signed a multi-year management agreement with Consorcio Hotelero S.A. de C.V. for a Doubletree by Hilton full-service hotel in Mexico. Construction of the Doubletree by Hilton, Merida is expected to begin this month with a scheduled completion in March 2011. Netherlands Tourism is very important to the economy. China is the biggest market followed by Russia for visitor arrivals from the BRIC countries. (BRIC is an acronym for Brazil, Russia, India, and China. These countries are regarded as major emerging growth markets.) 100,000 Russian tourists visit annually and the forecast is that the number will double by 2015. Singapore Marina Bay Sands is scheduled to open in late April. It features three cascading hotel towers, a lotus-inspired Museum, retail stores featuring international luxury brands, Celebrity Chef restaurants, entertainment at the theaters and night clubs and a Las Vegas-style casino. For business clients, there are extensive Meetings, Conventions and Exhibitions facilities featuring state-of-the-art technology, and a convention centre that can host over 45,000 delegates. South Africa The month-long 2010 World Cup finals kicking off on June 11. The schedule of matches is available at: http://www.fifa.com/worldcup/matches/index.html United Kingdom Starbucks will introduce Starbucks VIA® throughout Company-operated and licensed locations in on March 8 Notice for canceling further receipt of this newsletter:.This newsletter is distributed only to educators. Your email address is treated highly confidential and is not harvested, sold, or transferred in any manner to any other institution or individual. The main purpose of this newsletter is to provide hospitality news and research. The author of this letter does have a commercial interest in the sale of his texts, which may be displayed or described therein. Upon notice from you, you may opt out of receiving this newsletter. Please mention "Opt Out" in the subject portion of your email. Immediate removal from my files will follow. 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. Links to third-party websites:Links to third party websites are provided solely as a convenience to you. If you decide to access any of the third-party websites linked in the newsletter, you do this entirely at your own risk. The author of this newsletter is not obligated to review third-party websites, does not control such third-party websites, and is not responsible for any such third-party websites. Ray Cote does not endorse or make any presentations about such third-party websites, their content, products or services. 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