Ergo chapter 2

• Hospitality Industry


  Broad field that encompasses various businesses that provide food and beverage services to customers and lodging accommodation
• The Hospitality Industry includes hotels, restaurants, bars, cafes, resorts, casinos, and other businesses that cater to the needs of travelers and locals alike
• Idea generation


  An important aspect of the hospitality industry, as it helps business stay competitive and meet the changing needs of customers
• Ways to generate ideas in the hospitality industry

  • Stay updated with industry trends
  • Conduct market research
  • Embrace innovation
  • Brainstorm with your team
  • Look for gaps in the market
  • Experiment with new technologies
  • Consider sustainability
  • Create a partnership
  • Take inspiration from other industries
  • Encourage customer feedback
• Sample Ideas that could evolve into Food Service Concepts

  • Coffee Shop
  • Food Truck Restaurant Business
  • Food Garage Business
  • Samgyupsal Restaurant
  • American Casual Restaurant
• Sample Ideas that could evolve into Lodging Concepts

  • Sheraton Manila Hotel- Bubble Pod Dining Experience
  • Resort Casino Hotel- Dinner in the Sky
  • H20 Hotel-Aquarium Hotel Rooms
• Feasibility Study


  A creative, rational process whereby marketing and financial data are collected, assimilated, and analyzed to determine whether or not to proceed with the project, define the optimum scope and quality of the facilities, and quantify its prospects for financial success or failure with reasonably accuracy
• Benefits of conducting a feasibility study in the hospitality industry

  • Identifying market demand
  • Assessing the competition
  • Evaluating location
  • Financial Projections
  • Regulatory Requirements
• Parts of the Feasibility Study

  • Executive Summary
  • Introduction
  • Market Analysis
  • Technical Analysis
  • Management Plan
  • Financial Analysis
  • Conclusion and Recommendations
• A feasibility study can help assess the financial viability of the project by analyzing costs, revenue projections, and potential return on investment
• A feasibility study can help to identify any legal or regulatory requirements that may impact the project such as zoning laws, building codes, and licensing requirements
• The five benefits of conducting feasibility study

  • Assessing the viability of a proposed project
  • Maximizing the chances of success
  • Identifying accessibility, visibility, and local regulations
  • Assessing financial viability
  • Identifying regulatory requirements
• Parts of the feasibility study

  • Executive Summary
  • Introduction
  • Market Analysis
  • Technical Analysis
  • Financial Analysis
  • Risk Analysis
  • Conclusion
  • Appendices
• How to do a feasibility study

  1. Start with the objectives to be attained

  2. Define the scope

  3. Conduct a market study

  4. Do a technical analysis

  5. Prepare the financial statements

  6. Evaluate then conclude
• Market Study


  The process of gathering and analyzing information related to a particular market or industry
• Site Selection


  The process of identifying and evaluating potential locations for a business or project
• Site Selection Guidelines


  • Accessibility
  • Demographics
  • Competition
• Site Analysis Evaluation Factors

  • Site Description (Size, Boundaries, Topography, Survey, Subsoil Condition, Drainage Problems)
  • Site Evaluation (Visibility, Accessibility, Transportation, Utilities)
• Accessibility


  The ability to reach a place with respect to another place
• Visibility


  The site should be visible for it to be easily located
• Availability


  Availability of parking area, parking restrictions, and utilities
• Market Segmentation


  • Demographic
  • Psychographic
  • Behavioral
  • Geographic
• Financial analysis is the process of evaluating businesses, projects, budgets, and other finance-related transactions to determine their performance and suitability
• Components of Financial Analysis

  • Capital Investment Budget
  • Operating Budget
• Project Cost Estimates


  • Land
  • Construction Cost
  • Taxes
  • Architect and Engineer's Fee/Consultant Fee
  • Furniture and Fixture and Equipment
  • Pre-Opening Expenses
  • Working Capital
  • Overhead Expenses
  • Contingency
• Architectural Terms


  • Architectural Plans
  • Elevation
  • Perspective
  • Facade
  • Column
  • Beam
  • Truss
  • Arch
  • Dome
  • Fenestration
  • Balcony
  • Portico
  • Cornice
  • Gable
  • Eaves
  • Mansard roof
  • Parapet