Independent Business Project Work Placement
Ritz Carlton Tokyo
Author: Mingze Sun (Sylvia)
Student ID: 734770
Coach: Mr. Carlos
E-mail: [email protected] FB1
Table of Contents TOC o “1-2” Table of Contents PAGEREF _Toc523336995 h – 1 –
1Introduction PAGEREF _Toc523336996 h – 1 –
2The property and the location PAGEREF _Toc523336997 h – 2 –
2.1The organization and the property PAGEREF _Toc523336998 h – 2 –
2.2Vision & Mission PAGEREF _Toc523336999 h – 4 –
2.3PESTEL of Destination PAGEREF _Toc523337000 h – 4 –
2.4Listing of the type of the stakeholders PAGEREF _Toc523337001 h – 5 –
2.5SWOT analysis of the property and executive summary of the SWOT PAGEREF _Toc523337002 h – 6 –
3The guest experiences PAGEREF _Toc523337003 h – 7 –
3.1What employees do to enhance the guest experience PAGEREF _Toc523337004 h – 7 –
3.2Feature and benefits form PAGEREF _Toc523337005 h – 7 –
3.3The marketing of the features and benefits PAGEREF _Toc523337006 h – 8 –
3.4How the features and benefits add value to the customer experience PAGEREF _Toc523337007 h – 9 –
4BALANCED SCORECARD PAGEREF _Toc523337008 h – 10 –
4.1Provide a list of KPI’s your property is measuring regularly PAGEREF _Toc523337009 h – 10 –
4.24 Areas of the BSC PAGEREF _Toc523337010 h – 11 –
4.3How often is each KPI measured? Daily? Weekly? Monthly? PAGEREF _Toc523337011 h – 11 –
5Improvement PAGEREF _Toc523337012 h – 12 –
5.1What are your recommendations to the property? PAGEREF _Toc523337013 h – 12 –
5.2What can the property do to add value to for the guest? PAGEREF _Toc523337014 h – 12 –
5.3What can the property do to add revenue? PAGEREF _Toc523337015 h – 13 –
5.4What can the property do to decrease cost? PAGEREF _Toc523337016 h – 13 –
6Innovation PAGEREF _Toc523337017 h – 14 –
6.1Propose 1 innovation and state in which process phase the innovation takes place Justify the feasibility PAGEREF _Toc523337018 h – 14 –
7Summary PAGEREF _Toc523337019 h – 14 –
Bibliography PAGEREF _Toc523337020 h – 15 –
The hotel that I work for is the Ritz Carlton Tokyo, it is located at the Roppongi which is located at the central area of Tokyo. The Roppongi is a district that is well known as the city’s most popular nightlife district among foreigners. (Japan Guide, 2018)
The Ritz Carlton is on the 45th levels of the city’s tallest building, where floor to ceiling windows perfectly flame the skyline, from Tokyo Tower to Mt.Fuji. (Ritzcarlton.com, 2018) It has seven restaurants, one spa and meeting rooms.
The reason why I choose the Ritz Carlton Tokyo is I believe that Tokyo is an economic enter in Japan I could meet a lot of guests from different countries and I could study how to provide a good service to them. I am a F;B trainee in a Western styled restaurant, TOWERS, from March to September, it provides the breakfast buffet, French lunch and dinner. I am in charge of the morning shift from 6am to 3pm. I repose for the breakfast set up, then I will be arranged as an assistant or response for dish up or buffet refill. During the lunch time. I will response for the beverages in the bar and prepare everything we need for the next breakfast.
During the 6 months, I gain a lot of knowledge of how to run a restaurant and how to provide a good service. I also find some problems in the restaurant. In this report I will identify, analyze and critical evaluate a functional process or system of the organization and design an improvement plan for the department.
Implement a business project proposal to improve and innovate.
1. To observe every aspect of the company.
2. To analyze problems with the theoretical knowledge.
3. To evaluate the strength and weakness of the hotel.
The property and the locationThe organization and the propertyFacility and Service
Towers is a contemporary grill restaurant provide seasonal ingredients. It provides breakfast, lunch and dinner service. The breakfast starts from 6.00 to 11.00, the dinner starts from 12 until 14.30, and the dinner starts from 17.30 to 22.00
It was renovated on 4th September. it not only attracts in house guests but also attract guest who lives around the hotel. The breakfast is the buffet form with eggs menu, guest can order different types of eggs. But the restaurant scale is quite small, guests have to wait around 10 minutes during the public holidays.
2. AZURE 45
It is a one Michelin star French restaurant provide the highly visual cuisine. The restaurant provides lunch and dinner from 11:30 to 23:00.
Tokyo have 227 Michelin star restaurants. The AZURE 45 is not only famous for its high-quality food but also for its beautiful nigh view in Roppongi area.
This is Michelin starred Japanese restaurant, it provides four styles of Japanese dining – Kaiseki, sushi tempura and teppanyaki.
The restaurant has 92 seats. (Kaiseki 24, Sushi 12, Teppanyaki 14, Tempura 10, Chef’s table Private Dinning 8, Private Dinning 6 & 10, Semi Private dining 8) Every day the occupancy is lower than 50%.
4. The Lobby Lounge and The Bar
The Lobby Lounge provide traditional afternoon tea, cocktails, light fare and daily live entertainment from 9am to 5pm; The Bar shareable plates and signature cocktails. They are sharing the same area.
Every afternoon the Lobby Lounge is full of outside guests enjoying the afternoon tea. The view of the restaurant is quite good but the equipment appeared a little worn.
5. THE RITZ-CARLTON CAFÉ & DELI
It provides homemade beverages, coffees, fresh pastries and desserts. From 9am to 9 pm.
Treatments draw from Japan and beyond, incorporating time-honored techniques, products from the renowned Sodashi and ESPA lines. (Ritzcarlton.com, 2018) Facilities include a sauna, steam room, indoor lap pool and fitness center, complement the spa experience.
The Spa only provide for the guests who hold the year card.
7. Meetings and Wedding
The Ritz-Carlton Tokyo have one560-square-meter Ritz-Carlton Grand Ballroom and one 1,100 square meters of meeting and conference space.
The Ritz-Carlton Tokyo provide the most comprehensive wedding services, weddings are hold in Grand ballroom every day.
The hotel provides 245 elegantly appointed guest rooms and suites.
The suite rooms are eligible for Club Lounge privilege, the size of rooms is including 307 square meters, 220 square meters, 120 square meters and 100 square meters. Except the suites, deluxe rooms are all 52 square meters.
A variety types of rooms can satisfy different need of guests. The suite rooms and club deluxe rooms can enjoy the Club Lounge privilege. It referred to as a “hotel within a hotel. The Club Level concierge offers personal service to guests.
Customer Segments by months of the year
Customer segmentation tells a hotel owner who her guests are and why they stay at her hotel. Customers can be segmented by geography, demographics, benefits and needs. However, the most common customer segmentation in the hotel industry is purchase occasion. (Brian Hill, 2018) I use the Business Travelers, Leisure travelers and group travelers as the customer segments.
Customer Segments by months
According to the chart, we can know that The Ritz-Carlton Tokyo attract more leisure guests and group guests than business.
The Ritz-Carlton Tokyo is a business hotel, it is the No.1 of 116 hotels in Minato hotels. Other five-star hotels of the same type are in a competitive relationship with Ritz-Carlton.
No.2 Conrad Tokyo
The hotel has lower rate than The Ritz-Carlton and it have a good location for shopping. That would attract more tourist to choose the hotel.
No.3 Grand Hyatt TokyoIt has a higher rate than Ritz-Carlton. There is a bus station near the hotel that provides direct access to the airport. The facilities are outdated
No.4 Andaz Tokyo Toranomon Hills
The hotel has the highest room rate among the top 5 hotels. It is a new hotel with a good view, but the traffic is not convenient, very far from the subway.
No.5 The Strings by InterContinental Tokyo
This hotel has a convenient transportation, so tourist would love to choose this hotel. The hotel is built at 2003, but the room was nicely refurbished and guests enjoyed the new facilities very much.
Compared with hotels of the same type, Ritz-Carlton has the advantage of outstanding brand, good location and excellent service. But there are also many problems compared to competitors. If the hotel wants to maintain the first position for a long time and needs to renovate some facilities, many guests complain that the hotel facilities are too old, which is likely to affect the choice of potential customers.
Vision & MissionThe CREDO
The Ritz-Carlton is a place where the genuine care and comfort of our guests is our highest mission. We pledge to provide the finest personal service and facilities for our guests who will always enjoy a warm, relaxed, yet refined ambience. The Ritz-Carlton experience enlivens the senses, instills well-being, and fulfills even the unexpressed wishes and needs of our guests. (ritzcarlton.com)
PESTEL of DestinationPESTEL is a strategic analytical tool used to assess external factors affecting businesses. PESTEL acronym stands for political, economic, social, technological, environmental and legal factors impacting companies. (PESTEL Analysis, 2018)
Japan is a constitutional monarchy. The emperor, however, is only a figurehead which means a symbol, he formally power is very limited. He is defined as the “the symbol of the state and of the unity of the people”. Unlike the emperor, the prime minister to the country’s political and economic law is very influential.
The economy of Japan is strong. In fact, it is in the top five of the largest economy of the world. Japan’s product quality standard is very high, no other country can achieve half of its quality standard. The state pays high attention to the education system and the development of technical education, it has made a great contribution to the development of the country.
According to statistics, Japan has more than 126 million inhabitants in 2018. Japanese women are expected to stabilize and marry around 30 years old. Once married, she may not work anymore. Japanese couples are expected to be at least one boy can inherit mission or business from their family. This is a patriarchal system. In the past few years, however, the country’s birth rate reduced year by year. Japan is open to religion. Many of them are Christians and there are other beliefs.
Japan is a country with one of the most advanced telecommunications systems, especially its mobile devices. In Japan, people can connect to Wi-Fi almost anywhere. Therefore, Japanese does not need to send text messages, they deliver information through email and mobile software on their phone.
Other technologies in Japan are also improving. Many important facilities in Japan, such as airport? hospitals and restaurants are all use the automated systems. Their robot development is also stronger than other countries.
Japan’s population is concentrated in Tokyo and surrounding areas. The rich mountains and forests of Japan Island make some areas cannot become a good choice for living. These areas limit the development of Japan. Japan is surrounded by water; the land is vulnerable to earthquakes and tsunamis. Due to the large population, housing and development are closely clustered which are increasing their exposure to natural disasters.
Japanese laws are based on the European system.
Minimum wage: depends on the locality actual amount of living expenses, the wage varies by region.
Working hours: In Japan, the highest full-time working time is 8 hours a day, 40 hours a week. If the employees work 6-8 times a week. In hours, they have the right to rest for 45 minutes; if employees work 8 hours a day, they have the right to rest for an hour.
(PESTEL Analysis of JAPAN, 2016)
Listing of the type of the stakeholdersEmployees – Employees need guidance and training. Employees receive training of Ritz-Carlton’s policies and procedures to educate them on how to handle decisions that will benefit customers employees, and so on.
Customers – Customers need quality and value for money services. Customers need to understand the policies and expectations that the hotel expects.
Owner – The owner needs to make a profit through investment. Tokyo Ritz-Carlton have to communicate with owners to find solutions for environmental and economic growth.
Shareholders – Shareholders need to constantly understand how Tokyo Ritz-Carlton does and any business-related decisions. Ritz-Carlton provides them with any information they need to make a return on their investment.
Environment – The environment needs attention. Tokyo Ritz-Carlton reduces environmental pollution by reducing waste, emissions and cautious purchases. (???)
SWOT analysis of the property and executive summary of the SWOTSTRENGTHS
1. Provide quality service to customers.
2. Good location, the central area of the Tokyo.
3. On the 45th floor and provide guests 360-degree panoramic vistas of Tokyo.
4. Good reputation of the Ritz-Carlton brand.
5. Aspirational and High brand loyalty.
1. High employee turnover rate.
2. The scale of public areas are quite small.
3. The facilities and decoration are old-fashioned.
1. More tourism in the area of the hotel.
2. No more area in Roppongi for new hotels.
2. The area attract more foreigner guests.
1. Other 5-star hotel brand like Hyatt, Westin and the local hotel brands.
2. The influence of natural disasters on tourism, earthquakes and typhoons often occur in Japan.
3. Hotel rates indirectly effect by the Increasing costs of operations.
The Ritz-Carlton can keep the strengths and opportunities and reverse the weakness and threats. For example, bring out new service and activities, renovate equipment and regular training of personnel.
The guest experiencesWhat employees do to enhance the guest experienceEvery morning, front desk will send all of the information of everyday to each department. The information includes VIP guests, guests Today’s Birthdays, the place of events, occupancy and so on. Each employee has to read and remember during their break time.
Staff record the special requirements and they can give guests surprise when guests come back.
Each will prepare small birthday cake for guests when they receive the reservations.
Always use guest name
Employees are required to use the guest’s name more than three times in the service.
Feature and benefits formThe Ritz-Carlton Club Level
The club level provides guests personal service to make sure that guests have a comfortable experience during their stay.
The Ritz-Carlton Rewards and Marriott Rewards
The Ritz-Carlton have 3 elite level in total, they are Silver Elite, Gold Elite and Platinum Elite level.
Club level The Ritz-Carlton Rewards and Marriott Rewards
1. Use club lounge on 53rd floor.
2. Check in at the club lounge.
3. Enjoy the afternoon tea.
4. Daily 5 food and beverage presentation.
5. Complimentary pressing service for one hour after check in.
6. ESPA gift certificate. Silver Elite 1. 20 Percent Added Value on The Ritz-Carlton Rewards Points.
2. Your Personal Reservation Line ; Your Dedicated Guest Services Line.
3. Priority Late Checkout.
Gold Elite 1. Guaranteed Late Checkout until 4pm.
2. 25 Percent Added Value on The Ritz-Carlton Rewards Points.
3. Complimentary Room Upgrade.
Platinum Elite 1. Guaranteed Late Checkout until 4pm.
2. 50 Percent Added Value on The Ritz-Carlton Rewards Points.
3. Platinum Arrival Gift.
4. The Room is Yours 48-Hour Guarantee.
The marketing of the features and benefits1. Customer loyalty.
The Ritz-Carlton Tokyo using customer loyalty to attract returned customer. During the 6 months, for example, I know that some actors and singers always choose this brand when they come to Tokyo. I believe that the Ritz-Carlton Tokyo is really good at collecting information from guests and is good at using this information. They understand the need of their guests and know how to make them satisfy with the hotel. Customer loyalty is established at the same time.
2. Guests Review
The hotel pays great attention to the evaluation of guests on the TripAdvisor which is the world’s biggest hotel review site. The Ritz-Carlton, Tokyo get 4.5 on it. Guests often check the previous guest’s evaluation of the hotel before booking the hotel. On the orientation of new staff, all of managers emphasizes the importance of the Wow story and strengthen training of it. This is a good way to let guests remember the employee and they might mention it on the reviews of TripAdvisor.
3. Marriott Reward
By accumulating room nights, guests can upgrade their membership level, which is a win-win for both hotels and guests. Through the Marriott Rewards system, the guests are more willing to choose Marriott’s brand when booking a hotel and guests are getting higher benefits through higher and higher levels.
4. Social Media
The Ritz-Carlton, Tokyo is good at social media propaganda. They regularly update hotel information and events on Facebook and Instagram. This is a great way to attract guests.
5. Special Promos
The hotel often launches regular promotions on the official website to attract customers. For example, the offer in August 2018 is to book 4 nights can get one complimentary night on the official website. That would attract guests choose the hotel.
6. Brand Effect
(1) Get product premium through brand effect.
The hotel may get a higher price through the brand effect, because the customer has more trust in the products provided by the brand hotel, and believes that the brand will provide them with more value and services than other hotels.
(2) Cultivate loyal customers through brand functions.
The loyal customers will not only purchase the products and services of the brand hotel again, but also recommend the brand to others, which will ultimately bring lucrative profits to the hotel and reduce the marketing cost of the hotel.
(3) To achieve the hotel collectivization operation through the brand expansion.
With the brand, the hotel group can expand its business at a lower cost. Because of the similarities between hotels, the hotel group can enable its hotels to achieve resource sharing, in order to achieve efficient allocation of resources and reduce production costs.
How the features and benefits add value to the customer experience
1. Consider the customer’s point of view
It is enough to look at the restaurant business from the customer’s point of view. It is important to consider what is important to the target market and how the restaurant’s products or services will benefit the guests. This will help us understand the potential customers of the future.
2. Committed to improving customer satisfaction
By regularly getting feedback, you can keep the restaurant informed of the customer’s needs in the business process.
3. Apply the marketing model to the strategy
Using a popular marketing model can help shape the strategy. The Four Cs model and SWOT analysis tools can help define the unique selling points of the restaurant and predict customer needs based on market trends.
4. Develop an unforgettable customer experience
The memorable customer experience model focuses on providing intangible value. Includes personalized services, attention to detail, and more. Companies with a good customer experience can benefit from word of mouth, online reviews and higher retention rates.
BALANCED SCORECARDBSCs are used extensively in business and industry, government, and nonprofit organizations worldwide. Gartner Group suggests that over 50% of large US firms have adopted the BSC. (http://www.balancedscorecard.org/BSC-Basics/About-the-Balanced-Scorecard) Balanced Scorecard Basics
Provide a list of KPI’s your property is measuring regularly
It means “cost of goods sold.” This is how much does it cost on food. To determine the cost of goods in your restaurant, we need to master the inventory.
Fixed Costs Per Day
Fixed costs are bills, including utilities, rent and service fees. These costs do not change much every day. Utility costs may change according to the season, so “fixed cost” does not mean that these costs will not change.
Determine your Labor Cost
Labor is one of the highest costs in the food and beverage industry, and it is important to understand labor costs and how they relate to other indicators. To determine the monthly labor costs of a restaurant, we need to calculate the costs associated with our employment, such as taxes and insurance.
Through COGS, fixed and labor costs, a daily total cost estimate can be calculated.
The occupancy rate is the most critical and simplest KPI of Ritz-Carlton.
Customer satisfaction is an important indicator of hotel performance.
Based on the results of the survey of post-stay guests, it can help hotel identify problems in the operations.
Online Review Sites
Your online review is a valuable resource. Even if some comments are negative, you can still convert it into an advantage. Through these reviews, you can find out what your guests think of the hotel.
Regular training can enhance the quality of service of employees.
Food delivery time
It is very important to improve customer satisfaction.
4 Areas of the BSC1. Financial Perspective
-Fixed Costs Per Day
-Determine your Labor Cost
2. Customers Perspective
3. Internal Process Perspective
-Food delivery time
4. Learning and Innovation Perspective
-Online Review Sites
How often is each KPI measured? Daily? Weekly? Monthly?The KPI of Towers restaurant is measured monthly. The department have the largest number of guests in the hotel compare with other department, the problems generated by the guests are relatively high. The monthly evaluation causes many problems, and the problem cannot be solved quickly, it usually includes services, profits and employee issues.
ImprovementWhat are your recommendations to the property?1.SOP
There is a SOP Form in the pantry. However, since the restaurant opened, there has never been a manager who gave a corresponding explanation and training to the staff. So, the SOP seems to be non-existent among employees. For example, the pantry which is used for breakfast juice and supplementary food every day has never been regularly cleaned, and every corner are quite dirty. Only when the manager of the food and beverage department comes to inspect, the restaurant manager will let the staff clean the surface of pantry.
I suggest that the restaurant should improve the SOP and regularly clean up every corner of the restaurant. It should not be solved until something goes wrong.
During peak seasons, such as the cherry blossom season in Japan. The hotel occupancy rates are often reach to 100%, and most guests will choose to have breakfast at the hotel. At this time, there will be many problems of the breakfast service. The most serious problem is the shortage of tableware. Plates, cups and spoons are often not enough. Sometimes guests need to wait a long time at the buffet to just get a plate, because the stewarding also need time to clean. I think this will reduce the quality of restaurant service. The restaurant should order more cutlery to ensure a comfortable meal.
In the six months since the restaurant was reopened, all the food has never changed. Some residents who live near the hotel will often come to the hotel to eat, and the unchanging food will make the guests board. The restaurant will lose a lot of guests because of it.
In the second month of the restaurant’s opening, the Director of Food and Beverage launched a special breakfast trolley service that allows some guests can dine in a relatively quiet area, all the dishes delivered to guests by servers, but the price is still same as the buffet. Due to the small size of the restaurant, during the breakfast period, we will use part of the AZUL restaurant which is next to our restaurant as a breakfast area. But after the breakfast trolley service was launched, it took the AZUL part, which made us cannot use it and have to start using the lobby lounge area, which was very inconvenient for us and our guests. The inconvenience of the guests is that they take a long time to get to the self-service area. For employees, there are fewer employees in the lobby bar area, and they need to spend more time going through the entire restaurant to serve and clean dishes, thus reducing the quality of the service. During the peak season, guests often complain that the restaurant is too messy, but the status is hard to be changed. The breakfast cart service has been launched and will not be changed in a short time. The renovation of the restaurant is very stylish and it also wasted a lot of space at the same time.
What can the property do to add value to for the guest?1. Staff training
At least once a week of training and staff meetings, employees can share problems and suggestions for improvement. Managers can solve problems on time and adopt reasonable advice.
2. Keep up with the pace of technology.
Customers like to see the technological developments of the restaurants they like. For example, by developing some software, customers can keep abreast of the launch of new dishes. They can also use their mobile phone to order food before arriving at the restaurant.
What can the property do to add revenue?1. Seasonal activity
Regular seasonal events are added to the corresponding limited menus, such as the Peninsula’s annual Mid-Autumn Festival mooncakes and the Dragon Boat Festival’s scorpion are very popular, which is a good way to enhance customer loyalty.
2. Attract new customers
Give your guests a good first experience, take steps to stay in touch and establish personal contact with them.
3. Improve the up-selling technology of the waiter
Experienced waiters can effectively increase sales. First, simply describe the menu and recommend few items to them. Second, try to recommend more dishes, such as recommending a daily dessert after completing the main course.
4. Use marketing techniques to attract new customers.
Use traditional marketing strategies such as ad placement. But it can cost a lot of money. Restaurants may attract more customers through social media.
What can the property do to decrease cost?1. Reasonable recruitment of employees
Use more part-time workers during the high season, to let them work at the busiest time. In the low season, reduce the number of part-time workers to avoid unnecessary staff waste and cost savings.
2. Reduce food waste
The kitchen should prepare food based on the number of people on the reservation.
InnovationPropose 1 innovation and state in which process phase the innovation takes place Justify the feasibility
For the breakfast, because the scale of buffet is quite small, the innovation of it is very limited. For the lunch, the size and number of chef in the kitchen are limited. If the turnover rate and the number of guests are increased, the waiting time will be too long, thus reducing the quality of service.
I recommend that the restaurant modify the breakfast service to increase revenue and service satisfaction. As I mentioned at the IMPROVEMNET section, the service of breakfast has a serious problem. The new breakfast trolley service affects the overall quality of service and does not help the restaurant to increase revenue. There are 40 seats in the breakfast cart, and the number of people who choose he breakfast trolley each day is no more than 15 people. So, the utilization rate is less than 40%. Most of guests prefer to take their own food because it help them have more choice. If the restaurant cancels this service, it means that this area can be used by at least 60 guests each morning and we do not have to use the lobby lounge. Guests would not give up eating at the Towers because it is too crowded.
For those who are their children, if they still need our breakfast cart service, we can serve near the more spacious table.
I think this change may not be able to significantly increase turnover, but there will be a significant increase in customer satisfaction.
SummaryThrough the analysis of the property, the KIPs and the guests experience which I have collected during the implementation, I found some serious problems in the restaurant. After I observe the every aspect of the company, analyze problems with the theoretical knowledge and evaluate the strength and weakness of the hotel. I made the suggestion of possible improvements and innovation. I hope I could have a chance to apply what I have learned in my future work.
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