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 fields. Cote’s textbook customers make this website possible. These texts are: Basic Hotel and Restaurant Accounting (Click the Principles/System button) Accounting for Hospitality Managers (Click the Managerial Acctg Text button)                                                               AUGUST 2009   General Interest Online ordering is quickly becoming an integral part of customer service. http://www.fastcasual.com/article.php?id=14611&na=1 How to make a great burger. http://www.philly.com/philly/restaurants/20090604_Recipes_worthy_of_a_burger_whisperer.html Fast food restaurant names no longer describe their meal products served. http://www.usatoday.com/money/industries/food/2009-05-26-fast-food-changes-restaurants_N.htm Celebrity endorsements can be hazardous.  http://www.qsrmagazine.com/articles/columnists/christopher_wolf/128/celebrityrisk-1.phtml How to select the right ice machine for your operation: http://www.rimag.com/article/CA6661626.html How to ‘excel in an interview: http://www.diversityinc.com/public/6070.cfm ?  Who is a customer? Sorry, but purchasers of texts from used book sellers cannot be considered direct customers.  The publisher or author receive no remuneration from these sources who have not invested signifiicant time and huge sums in development, production, and marketing.      AUTHOR'S NOTICE: CHANGE OF CONTACT INFORMATION New email address: Not yet available.  Will be provided soon. New mailing address: Click the ABOUT THE AUTHOR tab at left of this page             UNITED STATES NEWS   Burger News McDonald's Corp. is now selling a premium Angus Burger at $4. The new burger is 1/3 pound burger on a premium bun. It comes in three varieties: the deluxe with pickles and tomatoes; another is bacon with cheddar; and the third is a mushroom with Swiss cheese. The sandwich is for sale at most U.S. locations; after several months, it will be evaluated if it should become a permanent item. Five Guys Burgers and Fries has grown to 500 franchises since 2002. The first Five Guys location opened in Arlington, VA. The franchise recently made national news when President Obama was shown on TV visiting Five Guys for lunch. Here’s some interesting data on Five Guys: There are over 250,000 ways to order a burger - - Only fresh, never frozen, ground beef is used - - No freezers are in any Five Guys location, just coolers - - Nothing is ever frozen - - Only peanut oil is used - - Only Idaho potatoes are used - - The menu is trans-fat free. The success of Five Guyes has created competition in the "Gourmet Burger" market. McDonald's and Wendy's are offering their own gourmet burgers. A newcomer is Smashburger, a Denver-based chain affiliated with Quiznos. Burger King, and Carl's Jr., Hardee’s, Quiznos, Red Robin, and Wendy’s are some of the national quick-serve operations switching using cage-free eggs, or eggs laid by hens not confined to small cages.   MENU NEWS The $5 Menu Pizz Hut, Boston Market, Subway and Quiznos, T.G.I. Friday’s have menus with $5 items.   New Menu Additions Wendy’s adds chicken wings to its menu. Wendy’s Boneless Wings are the first boneless wings to be offered by a hamburger fast food outlet. The menu offers three flavors: Sweet & Spicy Asian, Honey BBQ and Bold Buffalo. Suggested retail price: $3.99 for seven to nine wings based on weight. Dunkin' Donuts first breakfast wrap sells for 99 cents; bacon is added for 50 cents.   Healthier Food Menus The end of June marks the end of Starbucks' bakery using corn syrup, artificial flavors and dyes. The chain is also adding salads to its menu. 98% of New York restaurants are free of trans-fats.   Technology in the Food Industry Burger King has introduced iPhone mobile ordering. iPhone users automatically log in and locate nearby BK locations for mobile pre-ordering. The system also creates promotions and incentives based on individual order history. Subway and Burger King (BurgerKingNow.com) provide online ordering by texting from any mobile phone.    Comeback Trail Shoney’s is planning a recovery to its better days. Its previous 1,000 locations has dwindled to less than 300 and new franchises were no longer sold. The first Shoney’s opened in 1952, Lone Star Funds, a Dallas investment firm, took Shoney’s private in 2002. Now Royal Hospitality Corp. owns Shoneys. Management has ambitious plans for a successful comeback. One strategy is to add better and fresher food with made-to-order meals, instead of the value-priced buffet bar. For more information: http://online.wsj.com/article/SB20001424052970204456604574201611888252626.html?mod=dist_smartbrief   Divestures Jack in the Box Inc. is selling 55 of its 61 Quick Stuff c-stores and gas in an all-cash transaction; this sale and sale of the remaining six sites should be completed by the close of the company's fiscal year ending Sept. 27, 2009. The 55 stores under purchase agreement will be sold to a single buyer, but the company is not presently disclosing the buyer.     Food Regulation Massachusetts will require restaurant chains with 20 or more locations to show calorie counts either on the menu or on menu boards. The rule takes effect November 1, 2010. North Carolina and Wisconsin recently banned smoking in bars and restaurants.   U.S. Companies -  International Notes Ruby Tuesday, Inc. has secured rights to open restaurants in Abu Dhabi, the capital of the United Arab Emirate. Its franchisee Bin Hendi Hospitality plans to open six new restaurants in Abu Dhabi; it now has a total of 18 Ruby Tuesdays planned in the United Arab Emirates. YUM! (Taco Bell, KFC, Pizza Hut) is the world's largest total units fast-food company with more than 36,000 restaurants in about 100 countries. More than half its profits come from international business, which is expected to increase. The company has more than 3,000 units in China and plans to open hundreds more in 2009. It recently bought a 20 percent interest in the Chinese "hot pot" restaurant chain Little Sheep Group for $63 million. McDonald’s European plan is to overtake Starbucks (1300 stores) by opening several hundred McCafé stores selling pastries and cappuccinos this year. Brinker International opened its first Chili's Grill & Bar location in India. McDonald's plans to open another 40 restaurants in India; there will now be about 200 McDonald’s restaurants. Beef products are not on any McDonald's menu; India is predominantly Hindu and reveres the cow. Chicken burgers and vegetable patties have replaced beef menu items.   CAP AND TRADE Cap-and-trade (also known as allowance trading) is in reality "pollution credits." Air quality goals are defined for a specific area and specific sources of air are given a stated number of allowances of various pollutants that a facility is allowed to emit. Facilities that emit their allowable limit can sell their leftover allowances (pollution credits) to other facilities on the open market. In theory, the system rewards facilities that control air pollution and gives offenders an option to purchase credits to avoid penalties.  One problem with cap-and-trade systems is that certain parts of the country may become much more polluted than they should be. For more information, the U.S. Environmental Protection Agency's website is: http://www.epa.gov/airmarkets/index.html   Other News Steak n Shake Co. plans to expand its full service outlets plus franchising its new concept of limited-service locations. Starwood Capital will acquire Golden Tulip; making it the 11th largest hotel group in the world (per MKG Hospitality’s world ranking 2009). Tim Hortons Inc. will reorganize as a Canadian public company after approval by shareholders at a special meeting to be held Sept. 22. The company still plans to keep dual listings on the New York Stock Exchange and Toronto Stock Exchange. As of March 29, Tim Hortons has 3,457 restaurants: 2,930 in Canada and 527 in the U.S. U.S. Representative Neil Abercrombie (D-Hawaii) introduced legislation that would increase the federal tax deduction for business meals from 50 percent to 80 percent.   INTERNATIONAL NEWS Europe McDonald’s European plan is to overtake Starbucks (1300 stores) by opening several hundred McCafé stores this year selling pastries and cappuccinos. United Kingdom McDonald's apprenticeship programme will provide 6,000 of its 71,000 UK staff with access to apprenticeships in 2009, rising to 10,000 annually from next year, and the establishment of McDonald's Education Company. Bahrain Airplate, a Bahrain-based retail and wholesale food and beverage company, introduced its first vacuum-packed, ready-to-eat, smoked cut range, under the brand name Greedy Goose. The product line consists of smoked salmon, smoked chicken breast, peppered and plain pastrami beef, and smoked duck breast. Airplate is a joint venture between Bahrain Airport Services and EatCorp, a hospitality and leisure group of restaurants. Canada Alberta will be the first to include milk containers in a regulated deposit-refund system. On June 1, as with other designated beverage, milk and liquid cream containers are returnable to a bottle depot for a refundable container deposit fee. Only marked containers identified by "AB DEPOSIT are eligible for refund. The Quebec sales tax will be 8.5 effective Jan. 1, 2011. On May 1, the Quebec minimum wage is $8.00/hour for tipped employees and $9.00/hour for other employees. The prospect of a new restaurant meals tax in Montreal is terminated. Canada's biggest restaurant chain Tim Hortons will build a C$30 million, 74,000 sq. ft. coffee bean production and roasting facility in Hamilton, Ontario. The company presently operates a coffee plant in Rochester, New York. Tthe two plants will produce about 75 per cent of the company's requirements. Tim Hortons Inc. will reorganize as a Canadian public company after approval by shareholders at a special meeting to be held Sept. 22. The company still plans to keep dual listings on the New York Stock Exchange and Toronto Stock Exchange. As of March 29, Tim Hortons has 3,457 restaurants: 2,930 in Canada and 527 in the U.S. Caribbean Marriott has opened its first Residence Inn in Central America. The Residence Inn by Marriott San Jose Escazu in Costa Rica is operated under a management agreement with Caribe Hospitality. China Wyndham Hotel Group opened the 26-floor, 588-room luxury hotel, five-star Wyndham Xiamen hotel (owned by Xiamen He Ping Li Hotel Ltd.) featuring features five food-and-beverage outlets, 37,000 square feet of meeting space, a 2,658-square-foot business center and diverse fitness facilities. This is the first Wyndham-branded hotel managed by Wyndham Hotel Management, Inc. in the Asia Pacific region. Pan Pacific Hotels Group will open the new Pan Pacific Xiamen in August 2009; the hotel was formerly the Sofitel Plaza Xiamen. Renovations and upgrades to the Pan Pacific Xiamen are planned to be completed in early August. Another hotel, the Pan Pacific is scheduled to open the Pan Pacific Tianjin in 2011. YUM! (Taco Bell, KFC, Pizza Hut) has more than 3,000 units in China and plans to open hundreds more in 2009. It recently bought a 20 percent interest in the Chinese "hot pot" restaurant chain Little Sheep Group for $63 million. McDonald's will recruit 10,000 new employees in the country; 80% will be college graduates. China is one of the McDonald’s fastest growing markets. The company's operational plans include breakfast, 24-hour services, and dessert stations. McDonald's has already interviewed students at several famous Chinese universities, including Peking University. France Marriott International, Inc opened the 187-room Courtyard by Marriott Hotel Toulouse Airport Hotel, the company's tenth hotel in France. The government is lowering the tax charged at cafes and restaurants. The objective is that restaurants will also lower their prices to attract more customers during the current recession.   Germany Hilton Hotels Corp. plans two new Garden Inn hotels with a total of 488 rooms in Germany. India Brinker International opened its first Chili's Grill & Bar location in India. McDonald's plans to open another 40 restaurants in India; there will now be about 200 McDonald’s restaurants. Beef products are not on any McDonald's menu; India is predominantly Hindu and reveres the cow. Chicken burgers and vegetable patties have replaced beef menu items. Malaysia In 2008 Malaysia enjoyed 22,052,488 tourists, an increase of 5.1% from the previous year. Singapore was again the largest market source of tourists, composing 49.9% of total arrivals. Other key markets were Indonesia (11.0%), Thailand (6.8%), Brunei (4.9%), China (including Hong, Kong & Macau) (4.3%), India (2.5%), Japan (2.0%), Australia (1.9%), the Philippines (1.8%) and the United Kingdom (1.7%). Mexico NexCen Brands, Inc. opened its first Great American Cookies franchised store in Bosco Vallarta Zapopan in Jalisco, one of the 31 Mexican states. This is the first of a minimum of 30 Great American Cookies stores and 15 Pretzelmaker stores to be opened in Mexico over 15 years. Mozambique Rezidor’s Park Inn Tete featuring 116 rooms is scheduled to open on Q4 2010. Rezidor's portfolio on the African continent now comprises close to 30 hotels and 6,855 rooms in operation and under development. Saudi Arabia Rezidor’s Al Muna Karim Radisson Blu Hotel, a 322 rooms-property is scheduled to open in Q3 2009, it is Rezidor’s second hotel in in Al Madinah. Rezidor is also developing the Al Madinah Paradise Radisson Blu Resort; it will open in Q4 2010. 'This is Rezidor’s 10th hotel in the kingdom of Saudi Arabia. Other key Saudi Arabia markets with Rezidor hotels are Riyadh, Jeddah, Makkah, Al Khobar and Yanbu. Turkey Hilton Hotels Corporation has signed a Franchise License Agreement with Durmazlar Makina Sanayi ve Ticaret A.Ş. to open two new Hilton Family properties in Bursa. Hilton and Hampton by Hilton properties are expected to open in Bursa in 2011 Marriott International’s Courtyard Brand in Turkey, opened at the Istanbul International Airport. United Arab Emirates Ruby Tuesday, Inc. has secured rights to open restaurants in Abu Dhabi, the capital of the United Arab Emirate. Its franchisee Bin Hendi Hospitality plans to open six new restaurants in Abu Dhabi; it now has a total of 18 Ruby Tuesdays planned in the United Arab Emirates.        Basic Hotel and Restaurant Accounting escalates hospitality accounting into the 21st century; presenting topics such as: Hospitality accounting principles Specialized hotel accounting Specialized restaurant accounting Systems and procedures Computer processing Internet Stores Merchant accounts Forecasting and budgeting Starting a hospitality business Click the Principles/System button at left of page for complete information.        Accounting for Hospitality Managers  is a managerial accounting/financial management text providing expert information and procedures for restaurants, hotels,  and casinos to analyze profit problems and targets, financial statement analysis, including accounting for payroll, tips, budgeting, forecasting, and more.  Example of topics include: Accounting Principles for Hotel Revenue, Expense, and Assets  Hotel Financial Statements plus Analysis and Interpretation (Corporate and Departmental) Casino Accounting and financial statements Statement of Cash Flows Interim and Annual Reports Budgeting Expenses,Forecasting Sales, plus Budgetary Reporting and Analysis Hospitality Payroll Accounting Financial Decision Making Cash Management and Planning Inventory Accounting Assorted Topics Feasibility Study Allocating service departments and fixed charges to revenue centers Fair Value Accounting (Mark to Market) Compound Value Present Value Compound Value of an Ordinary Annuity Compound Value of an Annuity Due Present Value of an Ordinary Annuity Click the Managerial Acctg Text button at left of page for complete information.     FREE ANCILLARIES AVAILABLE ONLY TO CUSTOMERS OF MY TEXTS AUTHOR’S PERSONAL CUSTOMER SERVICE: The only hospitality accounting author providing personal assistance to customers. The following materials are different than any available from the publisher.  They are available only from the author for customers who purchase my texts directly from my publisher.  Sorry, but purchasers of  texts from used book sellers cannot be considered direct customers.  The publisher or I receive no remuneration from these sources. EDUCATIONAL MATERIALS: Special educational and research reports, when announced,  are available only to my customers and are provided via email. AUTHOR’S PERSONAL TEST BANK: A test bank designed by the author and classroom tested under actual test conditions. 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/grading process. PREP GUIDE: Chapter by chapter guide to assist instructor’s in converting their lecture notes from the previous edition to the current edition. AUTHOR’S CHAPTER OUTLINES: Listing of the major and sub-major topics in each chapter. 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.