Document 15121223

: V0254 - Operational Tata Hidang II
: 2010
Global Dimensions of Management &
the Role of Technology
Pertemuan 13
Multi-National Food Service Operations
• The global expansion of the restaurant industry really
should come as no surprise to anybody working in this
industry. This is so because travel, tourism, and the
sampling of international cuisines have historically been
integral parts of the hospitality industry.
• Two of the best known international foodservice
companies in the U.S. are Coca-Cola and the QSR
(quick-service restaurant) franchisor and restaurant
operator, McDonald's.
• As the restaurant business in the United States continues
to become saturated, it is natural that more and more
restaurant companies will look beyond their own
country's borders for expansion and growth.
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Management Challenges In
A Global Economy
• Most companies want to exercise a specific level of
control over their international operations. The control
may be quite significant or it may be advisory in nature
• As a professional in the hospitality industry, there are a
variety of reasons why you might be assigned the
responsibility of controlling and monitoring costs in one
or more of your company’s international operations.
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Management Challenges In
A Global Economy
• Your education and past work history give you the
experience you need to succeed in the job.
• No local staff (in the foreign country) is currently
qualified to assume the responsibility.
• Your responsibilities include the training of local staff.
• Local persons are being trained for positions that will
ultimately replace the need for your assistance, but they
are not yet qualified to assume 100% responsibility.
• Your employer wants to instill a global perspective in you
(and other) managers.
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Management Challenges In
A Global Economy
• It is in the company’s best long-term interest to improve
the cultural understanding between managers and
employees in the company’s various international
• An international assignment is considered an integral
part of your professional development process.
• There is an interest in obtaining tighter administrative
control over a foreign division or addressing and
correcting a significant problem.
• There are property start-up, operating or other issues
that require long-term on-site management direction to
properly address the issues.
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Management Challenges In
A Global Economy
• Experienced expatriate (a citizen of one country who is
working in another country) managers report that they
sometimes confront problems in one or more of the
following areas:
– Language – While English is widely spoken in many parts of the
world, in many cases it will not be the primary language of a
restaurant’s employees, and thus expatriate managers must be
sensitive to the variety of issues language barriers and the direct
translation of languages may present.
– Local Government Entities – Routine items such as operating
permits and permissions to do business may be slower in coming
than in the United States. As well, local customs may dictate that
money, paid directly or indirectly to government officials, may
accompany the granting of these permissions.
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Management Challenges In
A Global Economy
– Facilities – Foodservice operators may find it more difficult to
build, service, and maintain their physical facilities in foreign
countries. This is especially true if the company has not
identified a dependable, cost-effective and local service
representative for the building they occupy or the major
equipment they utilize.
– Employees – The local labor force that is available to
international managers can vary greatly from one area of the
world to another. Employee attitudes toward gender equality,
appropriate dress, work ethic, religious tolerance, and the rights
of minorities are all areas that may present significant challenges
to you as an international foodservice manager.
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Management Challenges In
A Global Economy
– Operations – The actual operation of an international
foodservice unit can be challenging. Among these challenges is
the potential unreliability of the unit’s food supply chain. If
restaurant is dependent upon a unique product that is prepared
in another location, frozen, and then shipped to the unit, a
dependable refrigerated storage and delivery company will likely
be of critical importance if a high level of food quality is to be
• In the case of joint ventures, projects where the
partners consist of the restaurant company and
one or more local investors/owners, the
expectations of those parties who are partners in
the business can also vary greatly.
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Management Challenges In
A Global Economy
• It will be helpful to view international cost controlrelated challenges as one or more of the following types:
– Operational
– Cultural
– Financial
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Management Challenges In
A Global Economy
Operational Challenges – The cost control issues
encountered by hospitality managers can range from
what is done, to when things are done, to exactly how
they are done.
– U.S. companies are accustomed to the day parts that have
traditionally been defined as the breakfast, lunch and dinner
periods, in other countries the names for, and the times of,
these day parts may vary significantly.
– For those managers who have learned food productions
techniques using the British Imperial (U.S. Standard)
measurement system of ounces, pounds, gallons, and
tablespoons, converting recipes and purchasing standards to the
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metric system can often seem challenging.
Management Challenges In
A Global Economy
– Additional operational areas that can be greatly affected include:
• Marketing
• Menu Planning
• Pricing
• Safety standards
• Purchasing
• Receiving
• Beverage production and service
• Equipment selection and maintenance
• Utility (natural resource) management
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Management Challenges In
A Global Economy
• Cultural Challenges – Culture can be defined as the
customary beliefs, social norms, and characteristic traits
of a racial, religious, or social group.
– There are certainly those who believe that the expansion of U.S.
companies to foreign countries has a negative affect on the local
culture of the areas in which they are located.
– Others just as firmly believe that the impact of international
expansion and development, in terms of economic benefit to the
local area, job creation and the expansion of entrepreneurship
among local citizens, is extremely positive.
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Management Challenges In
A Global Economy
– As a manager, it will be your responsibility to
ensure the smooth operation of your facilities
by fairly addressing issues that may arise.
– Expatriate managers who succeed best do so
by demonstrating the real respect and
understanding for local culture that is most
often missing in less successful international
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Management Challenges In
A Global Economy
• Utilizing the following guidelines can help you effectively
meet cultural challenges.
Foster an environment that encourages open discussion.
Encourage interaction.
Celebrate diversity.
Foster a healthy understanding of group identity.
Model appropriate behavior.
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Management Challenges In
A Global Economy
• Financial Challenges – It is a fundamental principle of
accounting that the financial results of a business should
be reported in an identifiable monetary unit.
– A monetary unit is simply defined as a specific currency
denomination. The reporting of cash sales may be complex in
international companies because of a potential variety of
monetary units being used.
– Credit, debit, and bank card sales (which constitute a large
portion of many restaurants’ total sales) create further
complications because the company's merchant service provider
must apply an exchange rate (to convert the value of one
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currency to another).
Advances in Technology and
Information Management
• As a professional managing operations across the globe,
the sphere that is changing most rapidly (and thus will
demand much continued attention and analysis) is
related to technology and information (data)
• Two significant information sharing developments that
have extensively changed the way foodservice
professionals manage their financial reporting and date
sharing tasks are:
– Internet – a place to store and retrieve information
– WiFi (Wireless Fidelity) – technology to transfer information
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Advances in Technology and
Information Management
• The following are some of the most recent concepts and
technology applications for foodservice operations:
– Internet-Based POS Systems
• POS systems are interfaced (systems
electronically connected for the purpose of sharing
data) and serve as both a POS terminal and an
Internet connection.
• Internet-based POS systems have advantages such
as reducing hardware costs, operational
standardization, multiple user access levels, data
security and integrity, and 24/7 access and instant
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Advances in Technology and
Information Management
– Handwriting Recognition System
• With wireless handwriting recognition systems,
servers can write down orders that are then sent
directly to the kitchen without ever having to leave
the guest's table. Servers write the order and then
send it to the kitchen with the touch of a stylus on
their handheld order pad.
– Voice Over Internet Protocol (VoIP)
• This is an emerging technology that transmits voice
(telephone calls) over the Internet instead of over
traditional telephone lines. This reduces international
phone charges.
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Advances in Technology and
Information Management
– Staff Sharing Technology
• This two-way interactive video device
allows staff to “see” and talk directly with
employees and guests at other locations.
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Advances in Technology and
Information Management
– Paperless Paycheck Systems
• Paperless paycheck systems utilize employee assigned debit cards.
• “Unbanked” employees are those who can not afford or qualify
for a checking account. This system would allow employees,
including those who might want to immediately wire significant
amounts of their money to their relatives in another country, to
have instant access to their cash on payday, without paying
unnecessary check cashing fees.
• All employees with the ability to access the Internet could utilize a
special login code to view, in their own language, details about
their wage earning and withholdings.
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Advances in Technology and
Information Management
– Motion Detection/Intelligent Systems Software
• Intelligent systems software can be
programmed to process massive amounts of data
in order to suggest specific courses of managerial
• Hardware/software combination that, when
mounted on the restaurant’s roof, scans the
parking lot 24/7, detects the number of people
entering the restaurant’s parking area and, utilizing
historical sales data for that time of day and that
specific store, predicts the number and type of
menu items these guests are likely to order.
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Selecting Advanced Technology Products
• The future of foodservice revenue and expense
management will be heavily influenced by the everexpanding capabilities of technologically advanced cost
control-related systems.
• Operators seeking to use advanced technology to
enhance their cost control systems are interested in one
or more of the following goals:
1. New information
2. More accurate collection of information
3. More convenient collection of information
4. Faster collection of information
5. Better communication of information
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6. Improved analysis of information
Selecting Advanced Technology Products
• It is important to remember that technological
improvements can encompass everything from
advancement in a single electronic cash register to
property-specific, networked training delivered via the
Internet in a multi-language format.
• Once you know what information is valuable to you, you
can evaluate the appropriateness of purchasing
enhanced software, hardware, and/or data transfer
systems as well as how much money you should spend
to acquire the new information.
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Selecting Advanced Technology Products
• While your cost control efforts can be greatly enhanced
by well-designed and integrated technology, there are
limitations to the role technology can reasonably be
expected to play in your operation.
• It is important to remember that computers can only be
programmed to imitate food service control processes
that are already understood.
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Selecting Advanced Technology Products
• Any proposed improvement in technology should be
considered in light of its ability to:
Enhance guest satisfaction.
Increase revenue.
Reduce costs through improved decision making.
Increase employee or management productivity.
Improve communications.
Provide a competitive advantage.
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Selecting Advanced Technology Products
• Carefully consider the following essential elements
before selecting and purchasing any technological
enhancement to your existing cost control efforts:
– Cost – It can be difficult to cost-justify any investment in
technology. When it is possible to demonstrate that the
technological advancement will pay for itself relatively quickly,
the decision can be easy. If the cost of the tool exceeds its value
to your operation, its purchase is questionable.
– Complexity – Some technology systems are so advanced that
their implementation and routine operation requires very high
levels of skills. These difficulties may be reduced or eliminated
through the implementation of thorough training programs.
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Selecting Advanced Technology Products
– System Warranty/Maintenance – Because technology items
are machines, they need routine maintenance and can break down.
Items of particular importance to you will be a list of precisely
which items are covered under the terms of the warranty, the
length of the warranty, hourly rate charged for repair service for
non-warranty-covered items, and expected response time of the
service/repair technicians.
– Upgradeability – While it is difficult to predict what new
technological developments may occur in the future, it is true that
advancements that are compatible with your current system will
likely prove to be less expensive than those that require completely
new software, hardware, or communication devices.
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Selecting Advanced Technology Products
– Reliability – Reliability of the product or service and the
reliability of the vendor
• A variety of factors can influence vendor reliability
including location, experience, quality of service
staff, response time, and reputation.
– Psychological Impact on Guests and Employees –
• Employees who are subject to new technological
procedures related to cost control may feel that
management does not trust them.
• When controls or systems are too invasive,
customers may feel as if they are a “number” not a
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Monitoring Developments in
Cost Control Technology
• It is simply not possible to know about every
technological advance that could directly affect your
• Choices for continuing education in this area are varied
and depend on your own preferences, but most
foodservice managers can choose from one or more of
the following methods:
– Tradeshows/Professional Associations – These associations
typically serve the certification, educational, social, and
legislative goals of their members. Trade shows are an
extremely efficient way to see the product offerings of a large
number of vendors in a very short time.
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Monitoring Developments in
Cost Control Technology
– Publications – Technology and its application have become such
a large part of the editorial interest of trade publications that a
special technology editor is employed to monitor technological
changes that could be of interest to the publication’s readers.
– Current Vendors – Your current technology suppliers should be a
valuable source of no-cost information. An added advantage of
working with your current technology suppliers is the fact that the
new systems they develop are likely to be compatible with those
systems you already have and maintain.
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Monitoring Developments in
Cost Control Technology
– Competitive Vendors – Identifying your current vendor's
strongest and best competitors is a good way to monitor
advances in technology. Competitor visits can help you quickly
identify improvements in procedures and features that your own
vendor may have overlooked or dismissed.
– Technology –Related Classes – Many community colleges,
universities, and private training organizations offer instruction
on the application of technology to your business.
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Monitoring Developments in
Cost Control Technology
– Your Own Organization – Often, a large company will
produce newsletters, conduct in-service training, or hold
regularly scheduled conventions that can be a source of
information on changing technology. These professionals are in
a position to see what technology works best both within your
own company and with your competitors.
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