Restaurant guide

A guide to eating out and all the best restaurants.

Restaurants Demanding Skilled Labor Force

Posted on | July 6, 2011 | Comments Off on Restaurants Demanding Skilled Labor Force

Hotels and restaurants are of utmost importance for the nation’s economy. Sector is a highly labor intensive service, and needs laborers in large number. A large part of the sector is closely
linked to the dynamics of the tourism economy. If we take it in terms of turnover, the sector accounts for more than 60% on tourist sector including both leisure tourism, and business travelling.
Restaurants, bars and cafes, Catering, and canteens are mainly the food service sectors and would
dominate both when it comes to employment and turnover. Customers/clients’ base is depends on many factors like, quality, service, location of the establishments. For example, there are hotels
that people visit for the sake of their services, e.g., a reputable restaurant that cooks food from a locally-owned farm, whereas other hotels are popular because of the geographical location, e.g., at the
town center.
The Hotels and restaurants sector are now facing labor related challenges along with competition from other entrepreneurs. Shortage of skilled laborers, increased awareness of healthy lifestyle,
individualization in customer demands, environmental concerns are some of the other problems which the sector is facing.  
Developments in technology like usage of Internet, and mobile service plays important role in the growth of the sector. The internet has dramatically changed the way hotels and restaurants market their services. Online booking, both directly at a restaurant’s or a hotel’s homepage and through new online based travel agencies, is one foremost example of new trends influencing and changing the value chain in the sector.
Food cost has a direct impact on a restaurants’ operating profit. Along with this payroll related expenses like salaries, wages, taxes, and fringe benefit, overhead expenses like advertising, utilities, maintenance, other supplies excluding food costs play major role on profitability of the business. However profitability and operational costs depend on size of the outlet, and vary from region to region.
Sector needs the long term strategic challenges of increasing innovation, skills, and competencies, which make out the ground pillar of the sector’s future growth possibilities, and increased its competitiveness. For example, older tourists/customers ask for more services. Customers may demand for new and different types of experiences and services. The increased usage of outsourcing like cleaning, cooking and booking services, in the sector also adds to increased complexity and volume of value chains.
Along with traditional value based factors like wellness, fitness, and healthy food, some other factors like demographical factors, modern life-style, implementation and usage of new technologies play
important role in the success of the business.
Government regulations are not same in all over the world. It differs with region to region. To start hotel or a restaurant licenses from the departments of local administration, health, electricity, water
supply and sewage board is required. Maintaining cleanness is very important. Food should be protected from cross-contamination at all stages such as during storage, preparation, holding, and display.  
Usually hotels have been rated based on luxury, quality of service, facilities provided like entertainment, view, room variations, additional amenities, spas and fitness centers and location.  
Getting finance to start/run hotels and restaurants are very important. Financing/ refinancing climate is always challenging, but with the right approach may not be as negative as many envisage. One
should prepare a detailed forecast, with full supporting data while explaining the market demand and supply dynamics. Refinancing is highly dependent on the performance of the property, the relationship with the bank, and that bank’s particular view on lending to the hotel sector at present.
Usually, people do not cut down consuming or travelling, but they do it in alternative ways. Customers are somewhat concerned about comfort, safety, convenience, wellness and health issues. They may go for genuinely healthy lifestyles and holidays and seek more luxury and values. Multinational hotel and restaurant chains offering healthy and sustainable convenience will experience growth. But, in future the sector will experience a rapid increase in the demand for highly skilled labor.