Insider: The Impact of the Recession and the Administration's Policies on Hotel Food & Beverage
By Professor Marcel R. Escoffier, School of Hospitality and Tourism Management, Florida International University, Miami, Florida.
Mr. Marcel R. Escoffier
Call it what you will, we are in an economic downturn. Since the press is using the “R” word, let’s go along and call it a recession. Another word which has popped up lately concerning the economic state we are in is “stagflation.” Let’s look at these terms in an historic context, and see how Hotel F+B should cope with the economic, social, and operational implications these words possess.
Surely, you remember in your college career some professor or another saying something like, “Management must be proactive not reactive.” Well, a “pat on the back” if you saw these economic hard times coming. Few of us did see this coming. (Well, OK, let me pat myself on the back, the title of this article was proposed by me six months ago when few did see this coming. A lucky guess, I’m no Milton Freidman!)
It is time to react to where we are now and to proactively plot a course out of the current economic mess our nation is in. It would also be nice to make a buck along the way.
Along with creating a survival plan for weathering this economic storm, the Hotel F+B Director needs to plan for the future as well. In my article "The Impact of the Recession and the Administration's Policies on Hotel Food & Beverage" in the Hotel Business Review I discuss how casual dining restaurant chains are coping with the downturn in the economy, how the food industry in general is coping with ever rising prices, and how you can cope with the challenges which you face in maintaining customer counts.
Let’s not forget that every cloud has a silver lining. There is money to be made, even in a poor economy. Also, operational opportunities which an economic downturn can bring you require your immediate attention. So far, the 200 plus year economic history of the United States has shown us that every economic downturn eventually ends and a new economic recovery begins. There is no doubt among the experts that this downturn, too, shall end. The only questions open for debate are: how low can we go, and when will it end?
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Sincerely,
Marcel R. Escoffier
Professor
FIU School of Hospitality Management
escoffie@mediaone.net
