ict and the hospitality industry

7/27/2019 ICT and the Hospitality Industry

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ABSTRACT

The effective management of an enterprise is critical for the successful operation of any

business. Information technology has facilitated the management of establishments through

different applications, softwares and packages. This paper focuses on technology that has been

in the forefront of the hospitality industry for the past twenty years as well as new technology

that has recently been developed and utilized in hospitality operations. It presents details of the

role of information technology in the various aspects of the hospitality industry by firstly

identifying the uses of property management systems at the front and back offices of

hospitality establishments, secondly describing advances in food service such as point of sales

systems (POS), sophisticated integrated food service software and catering application

packages and finally by differentiating between Random Access Memory (RAM) and Read

Only Memory (ROM). The findings indicated that information technology does play a critical

role in the smooth running of all areas of hospitality operations.

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TABLE OF CONTENTS

ABSTRACT................................................................................................................. 1

TABLE OF CONTENTS................................................................................................. 2

ABBREVIATIONS......................................................................................................... 3

LIST OF TABLES.......................................................................................................... 4

LIST OF FIGURES........................................................................................................ 5

1.0: INTRODUCTION .................................................................................................. 6

1.1: FRONT OFFICE PROPERTY MANAGEMENT SYSTEMS ...........................................7

1.1.1: THE GUEST CYCLE.......................................................................................................7

1.1.2: ROOM MANAGEMENT MODULE.............................................................................11

1.1.3: HOUSEKEEPING SOFTWARE....................................................................................131.1.4: CONCIERGE SOFTWARE............................................................................................13

1.1.5: PRIVATE BRANCH EXCHANGE (PBX) SOFTWARE..............................................131.1.6: WEBSITE RESERVATIONS SOFTWARE..................................................................14

1.1.7: GENERAL MANAGEMENT MODULES.....................................................................141.2: BACK OFFICE PROPERTY MANAGEMENT SYSTEMS ...........................................14

1.2.1: ACCOUNTING SOFTWARE........................................................................................14

1.2.2: TRAVEL AGENTS COMMISSION SOFTWARE......................................................18

1.2.3: SALES AND MARKETING SOFTWARE....................................................................181.3: ADVANCES IN FOOD SERVICE AUTOMATION....................................................19

1.3.1: SOPHISTICATED INPUT DEVICES............................................................................191.3.2: ELECTRONIC POINT OF SALES SYSTEMS (EPOS)................................................21

1.3.3: MICROCOMPUTER INTERFACES.............................................................................24

1.3.4: INTEGRATED FOOD SERVICE SOFTWARE............................................................251.3.5: FORECASTING APPLICATION SOFTWARE............................................................27

1.3.6: CATERING SOFTWARE PACKAGES........................................................................34

1.3.7: FOODSERVICE AUTOMATION..................................................................................361.4: RANDOM ACCESS MEMORY (RAM) AND READ ONLY MEMORY (ROM)................38

2.0: CONCLUSION..................................................................................................... 43

3.0: REFERENCES .................................................................................................... 44

4.0: APPENDIX ......................................................................................................... 45

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ABBREVIATIONS

DIMM-DUAL IN-LINE MEMORY MODULE

GPS-GENERAL PRINTER SERVER

IT-INFORMATION TECHNOLOGY

PBX-PRIVATE BRANCH EXCHANGE

PDA-PERSONAL DIGITAL ASSISTANTS

PMS-PROPERTY MANAGEMENT SYSTEM

POS-POINT OF SALES

PROM-ACRONYM FOR PROGRAMMABLE READ ONLY MEMORY

RBF- RULE-BASED FORECASTING

SIMM-SINGLE IN-LINE MEMORY MODULE

SSD-SOLID STATE DRIVES

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LIST OF TABLES

Table One pp 24

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LIST OF FIGURES

Figure One pp 28

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1.0: INTRODUCTION

Information Technology plays a critical role in the management of hospitality operations. It has

been used in the creation of software, applications and packages that facilitate the flow of

information and the smooth operation of duties. Information Technology is used to produce

reports quickly and accurately which can then be used as the basis for management decision

making. Reliable up-to-date management and operational information is the key to developing

competitive advantage in the modern hospitality establishment (Flynn et al, 2000). This paper

reviews these software, applications and packages and goes on to further differentiate between

Random Access Memory (RAM) and Read Only Memory (ROM).

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Q 5. Identify and describe the functions performed by front office PMS modules,

such as an in-house reservations, rooms management, guest accounting, and

general management modules.

1.1: FRONT OFFICE PROPERTY MANAGEMENT SYSTEMS

Property management systems are systems that facilitate the management of properties, personal

property, equipment, legalities and personnel all through a single piece of software. They are

packages of hardware and software specifically designed to perform the tasks required by the

hotel .In the hospitality industry, a front office property management system is a computerized

system that is used to manage guest bookings, online reservations, telephone and other amenities

(Vallen, 1991). The are many front office modules like the concierge, PBX and housekeeping

modules, but the four common ones are the reservations, the rooms management, the guest

accounting and the general management front office modules.

The functions performed by these modules are:

a. Handling the entire guest cycle

b. Guest accounting

c. Guest services

d. Guest settlement

e. Housekeeping

f. Room management

g. Management reporting

h. Night audit

i. Reservations

j. Registration

k. Telephone services

l. Travel agency accounting

m. Concierge information management

n. Reservations

o. Guest room management

1.1.1: THE GUEST CYCLE

In hotels a guest cycle involves the following activities: A potential guest makes an enquiry

which is answered by reservations, room availability is checked, a price is agreed and the room is

provisionally booked. At some stage the room booking is confirmed and the change is reflected

in the computer or if manual then it is reflected in the reservations book and in the guest records

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(Connor and Piccoli, 2003). The guest eventually arrives, is assigned a room and departs at some

point. A guest history database is then created. Property management systems play critical

functions in the various stages of the guests cycle. These functions include:

a. Reservations

A reservations module enables a hotel to rapidly process room requests and generate timely and

accurate rooms, revenue, and forecasting reports. Reservations received at the central

reservations site can be processed, confirmed and communicated to the destination property

before the reservationist finishes talking with the caller on the telephone. When the destination

property uses a property management system, the reservations module received data directly

from the central reservations system and in-house reservations records, files and revenue

forecasts are immediately updated. In addition the reservations data which is received can be

reformatted into pre-registration materials and an updated expected arrivals list can be generated.

In addition, the guest can alternatively access the computer at reservation sites in airline

terminals, at special computer centers or via a personal computer. Electronic mail sent from

home and reservations confirmed through the TV set are also being visualized making and

updating individual, group, business block reservations, deposit handling, cancellations,

confirmations, room blocking and sharing (Brotherton and Wood, 2008). Self check-in terminals

are normally interfaced with the property management systems. At freestanding locations within

the lobby, self check-in terminals present guests with their reservation and room assignment

details and accept their credit cards. This begins the property management cycle.

Computer reports generated by the property management system for the reservation department

include:

Arrivals report

Cancellation and change report

Central reservations report

Convention (Groups) delegates reports

Daily analysis reports

Deposit reports

Forecast reports

Occupancy reports

Overbooking reports

Regrets report

b. Registration

When the guest check-in is computerized, details of the guest such as address, names, and room

details are entered and stored in the computer system.

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c. Guest stay

A property management software module can offer a complete set of features for managingguests stay right from handling the guest messages and calls, informing the guest of offers at the

hotel, events at the locality to handling wakeup calls.

d. Guest accounting

It is a guarantee that a guest account will have to be created for a guest. A guest accountingmodule increases the hotels control over guest accounts and significantly modifies the night

audit routine.

The guest accounting modules functions are:

Billing and online charge posting

Automatic file updating and maintenance

Folio display/printing

Billing and online charging

Guest accounting normally generates folios that are used to keep transient account receivable

controls. Types of folios include individual folios, master folios, non-guest folios, employee

folios, control folios, semi permanent folio and permanent folios. The electronic folio is in a

computer memory. Charges that are incurred at the departmental levels get posted to the folios in

one way or another. If the hotel has a point of sale terminal and if the point of sale is online the

charge is posted directly from the department to the electronic folio (Brotherton and Wood,

2008). Being on-line, means that the point of sale interacts directly with the central processing

unit of the property management system. The property management system might be a smart

personal computer; it acts as an input device in this instant. If the folio is not online with the

point of sale or if the hotel has no point of sale terminal, a signed voucher must be dispatched

from the departmental cashier to the desk. At the desk the charge will be input by the front office

cashier or posting clerk. Once the charge is in the computer (folio) memory the process is the

same as if it had been online to start with.

The Call accounting software can also be used to record telephone calls charges that are included

in the guests account, for guest tracking and accurate billing of telephone usage. Call charges

may include customized mark-ups, surcharges, state and local taxes by type and duration of call.

Posting call records to guest folios can then be done automatically to front office software

(Connor and Piccoli, 2003).

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Guest accounting module reports that can be generated from the system include the ledger

summary report, revenue centre report, guest check control report and transfer report

Night auditing

Night auditing entails electronic data processing that is used to post room rates, taxes, balance

the folios and totaling the charges. From these night audit reports can be created. These reports

include the room rate variance report, allowance report, cashiers overage report, shortage report,

skipper report and write-off report. (Vallen, 1991) .Additional reports prepared during the night

audit include the city ledgers transfers, the convention use report, credit card report, daily

revenue report, departmental sales journal, guest ledger summary, late charge report, posting

report and room revenue posting report.

e. Guest check-out

Guests have several options in checking out. They could either do it themselves in their rooms or

at the hotels lobby or opt to do it at the reception. Express check-out has leaped ahead with the

interface of the Spectra dynes TV pay movie system into the hotels property management

system. The folio display appears on the television set any time the guests want it. With a click

of the remote control the guest can check-out. The system would then automatically transfer the

charges which have been accumulated in the front-office folio to the city ledger module

(Khosrowpour, (2004).

Self check-in check-out terminals have been interfaced with the property management systems.

At freestanding locations within the lobby, self check-out terminals present guests with their

folios and accept their credit cards. This completes the property management cycle which was

started when the guest registered at the same terminal.

f. Guest history

If guests histories are interfaced, that data can be considered by the property management

system in the making of current and future room assignments

THE USE OF SMART CARDS AND SMART SWITCHES IN THE GUEST CYCLE

Smart cards, smart switches and magnetic-cards once used at the hotel will cover the entire guest

cycle, beginning with reservations. Frequent guest programs are normally linked with specific

credit cards so that card readers on the telephones will automatically dial the central reservation

office of the participating chain. There the information remains awaiting the guests arrival. The

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arriving guest uses the self-registration terminal in the lobby. He passes the card (the same card

that was used to make the reservation) through the reader. Contacting the Central reservation

office computer through the telephone and contacting the property management system computer

through the check-in/check-out terminal in the same way. The card swipe or magnetic card

reader queries the reservation database. The property management system then reconfirms the

reservation; checks credit worthiness, assigns the rooms and completes the registration. Credit

authorization is an automatic by product of the arrival procedure. The credit card swipe is

interfaced with the credit card authorization network .As a function of the registration

assignment procedure; the property management system will transfer the reservation data into the

front office module. That would include credit cards guarantees or advance deposit accounting.

There are also smart rooms that hold property management system interfaces which become

terminals through which the guests and the property management systems interact. These include

the TV set, the telephone and the personal computer.

1.1.2: ROOM MANAGEMENT MODULE

A rooms management module maintains up-to-date information regarding the status of the

room, assists in the assignment of rooms during registration and helps co-ordinate many guests

services. This module alerts front desk employees of each rooms status .This status will remain

unchanged until housekeeping notifies the front desk that the room is clean and ready for

occupancy. In a computerized system the front desk employee simply enters the rooms number

at a key board and the current status of the room appears immediately on a display screen. Once

the room becomes clean and ready for occupancy, housekeeping changes the rooms status

through a terminal in the housekeepings work area and the information is immediately

communicated to the front desk (Vallen, 1991).

The Rooms management software handles all facets of room supervision including availability,

housekeeping, and maintenance and facility management. This software would provide a set of

features for rate quotation, revenue forecasting, analyses, setting and automatically controlling

rates. Tiers may be set for each room type where the date, day and seasons are defined. It links

front office with housekeeping and the software normally shows the applicable management

defined rate per day (Khosrowpour, (2004). It would also indicate the current hotel status by

displaying the number of check-ins, check-outs and rooms available. A sophisticated system may

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also regulate room sales. It would close down or stop the early allocation of a room to a heavily

discounted customer on the basis that last minute business which expects to be charged a high

rate will arrive at the front desk. Property management systems like Micros Fidelio and Opera

are in-house applications that support the central electronic structure of the hotel. They contain

all information on units of a hotel such as information on the numbers, price, category, status of

rooms whilst managing customer reservations and billing processes.

Functions performed by the Room management software include:

Identifying room status.

Electronic room status management change the time that it takes to do a job changes the

equipment being used and changes the format of the data.

Updating room status.

Room attendants can furnish data right from the workplace and communicates with the central

processing unit through the smart-switch phone thus changing the room status in an instant.

Assisting in assigning rooms.

Housekeeping uses the system to establish work priorities and improve productivity. Room

status is available floor by floor permitting a more efficient assignment of housekeeping

personnel. The computer keeps track of the room attendant who dials in and out by telephone

(Connor and Piccoli, 2003). Daily job assignments are computer programmed. Hard copy lists of

the rooms and their status are normally furnished to the employee at the start of the shift.

Providing in house guest information.

Organizing house keeping activities.

Providing auxiliary service.

Generating reports.

Computer programs can also include provisions for repair and maintenance orders.

Maintaining a computerized rack.

The computerized rack is a bank of basic unchangeable information on beds-sizes, baths, room

features and rates.

Reports generated by the Rooms management module include:

Room allotment report

Expected arrival /departure report

Registration progress report

Rooms activities forecasts

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Actual departure report

Housekeeping assignment report

Housekeepers productivity report

Rooms productivity report

Rooms history report

Pick-up report

Rate analysis report

Room status report

Very Important Persons reports

House used report

Out-of-order report

Flag report

1.1.3: HOUSEKEEPING SOFTWARE

Housekeeping software handles all the basic functions that are needed to run a hotel house

keeping department. Its features would include generating morning reports for cleaning

schedules (by floor, section or credits), generating room assignments, generating room statusinquiries and recording room status changes as rooms are cleaned. It also tracks and reports

guests special requests and alerts the staff about late sleepers, extra towel requirements, in-room

pets and other matters. Reports that this software can generate include the cleaning schedules,

guest lists, arrival lists, departure lists, room status summary, room sell status, early departure

list, extended stay list, walk-in list and vehicle list.

1.1.4: CONCIERGE SOFTWARE

This software allows one to access the hotel information system from the concierge menu, the

check-in screen and the reservations screen. The concierge staff design and input data that lists

and details attractions in an area such as restaurants, tours, shops and churches. These give guests

convenient, real-time access to news, weather, travel information and features interactive maps

that help guests find their way to local points of interest (Vallen, 1991). There are property

management systems that can deal with a range of services like sports scheduling, limousine

scheduling, guests safes, room movie systems and room honors bars.

1.1.5: PRIVATE BRANCH EXCHANGE (PBX) SOFTWARE

This software gives the telephone operators access to the reservation or guest information by

guest name, arrival, address, departure dates, room number, group affiliation, special request,

additional names, additional shares in the room and vehicle information. It also provides the

ability to enter telephone charges such as local and long distance calls for guests.

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1.1.6: WEBSITE RESERVATIONS SOFTWARE

This software provides a real time connection between the hotels website and the

establishments property management system. The software provides pages that perform

availability checks, reservations entries, confirmation, reservation revision and cancellationfunctions.

1.1.7: GENERAL MANAGEMENT MODULES

The general management module cannot operate independently of the other front office modules.

General management applications tend to be report-generating packages and therefore depend on

data collected through the other modules. The general management module generates reports and

is a central feature for linking front and back office applications of the property management

system. Reports that can be generated by this module include the revenue analysis, operating

statistics and financial analysis.

Q 6. Identify and explain the function of files maintained by the modules of a PMS

back office package including accounts receivable, accounts payable, payroll and

financial reporting.

1.2: BACK OFFICE PROPERTY MANAGEMENT SYSTEMS

Property management systems that are commonly used at the back office include the back office

corporate accounting software, the travel agents commission software and the sales and the

marketing software.

1.2.1: ACCOUNTING SOFTWARE

An accounting software is an application software that records and processes accounting

transactions within functional modules such as accounts payable, accounts receivable, payroll

and trial balance. The modules contained in these modules deal with particular areas of

accounting. These modules include:

Accounts receivable module.

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The accounts receivable module is the module where the company enters money received. It

monitors outstanding balances of guest accounts. It is an amount representing charged purchases

of a guest who has deferred payment for the products and services rendered by the hotel.

Accounts receivable balances can be automatically transferred from the front office modules

directly into the accounts receivable module. Once entered into the property management back

office system, account collection begins.

In summary, the services provided by the accounts receivable system include handling payment

posting routines, recording of cash miscellaneous transaction entries, editing, posting, statement

printing, invoicing, direct bill approval for reservations and folios, entering and editing of

account receivables accounts and the automatic distribution to general ledger. Typical reports

generated by this system include accounts receivables accounts, aging reports, account

receivable statements, accounts receivable invoices, accounts receivable daily register, period-to-

date transaction register, period-to-date document code register and accounts receivable activity

report.

Accounts payable module.

The accounts payable module is the module where the company enters its bills and pays money it

owes. It tracks purchases, creditor positions and the hotels banking status. Three major files

maintained by an accounts payable module are vendor master file, invoice register file and check

register file.The vendor master file contains an index of vendor names, addresses, telephone numbers,

vendor code numbers, standard discount terms (time and percentages) and space for additional

information.

An invoice register file is a complete list of outstanding invoices cataloged by vendor, invoice

date, invoice number and invoice due date. The file becomes important when management want

to take advantage of vendor discount rates.

The check register file calculates and prints bank checks for payment to vendors.

In summary, the services that would be provided by the accounts payable system include

automatic payment selection, check writing, posting and printing checks, entering and editing

invoices and payments, reconciliation of accounts payable checks with the bank accounts,

purging of paid invoices, cash requirements, contract payables, vendor details look up and the

creation of accounts payable history files that basically track all the invoices processed and paid.

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It would also print reports such as reports on the accounts payable, historical aging, open

payables, invoice distributions, batch transactions, tax and the accounts payable check register.

Payroll accounting module.

This module is where the company tracks salary, wages and related taxes. It is an important part

of the property management system back office package because of the complexities involved in

properly processing time and attendance records ,unique employee benefits, pay rates,

withholdings, deductions and required payroll reports. The system would enable automatic tax

calculation, tip reporting, check writing, creation and display of quarterly reports and fully

integrated time and attendance modules. The software packages can be used in the administration

of wages and salaries. Budgets can be compared quickly to actual expenditure to identify the

business profits or loss and labour costs can be related to sales to show which areas generate the

highest profits. The system can also track pay grades, pay raises and their history. Tax, social

security and statistical updates can be automated and payroll software can analyze profitability

and enhance profits.

Financial reporting module

This module involves the specification of a chart of accounts (a list of financial statement

accounts and their account numbers) and a systematic approach to recording transactions. This

module should also maintain the general and the statistical ledger. The ledger contains the

company's "books. An accounting software system would offer financial statements with

statistical analysis, detailed general ledger, accounts detail look up, automatic setting of the

general ledger date, entering and posting of general ledger transactions, generation of recurrent

general ledger batches, searching of general ledger accounts and maintenance and printing of

recurring general ledger entries(Connor and Piccoli, 2003).The financial reporting module is

capable of tracking accounts receivable, accounts payable, cash and adjusting entries. In

addition, most back office applications are capable of producing flash reports that normally

involve occupancy statistics (such as number of rooms sold, average room rate etc.) and general

ledger highlights .Reports that can be generated by this system include the trial balance, the

general ledger, year to date general ledger, general ledger detail transactions, general ledger

profit and loss statement, general ledger spread profit and loss statements, comparable balance

sheet, consolidated profit and loss reports and consolidated balance sheet. Such a system would

also retain several years detail information.

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Billing.

This module is where the company produces invoices to clients or customers. In hotels, such a

system would post direct bill accounts from the front desk automatically during the night audit

process and print out reports such as the accounts receivables accounts, aging reports, account

receivable statements, invoices, daily registers, period-to-date transaction registers and period-to-

date document code register.

Stock orinventory.

This module is where the company keeps control of its inventory. The basic technology that is

currently used in many operations is the computer technology both in terms of hardware and

software that allows the implementation of a basic property management system that includes

these modules.

Purchase order.

This module is where the company orders inventory. Multiple purchasing sets of prices can be

created where each purchasing set price is defined by a name and a currency.

Sales order.

This module is where the company records customer orders for the supply of inventory. Multiple

selling sets of prices can be created with each set being defined by a name and a currency.

Debt collection.

This module is where the company tracks attempts to collect overdue bills (sometimes part of

accounts receivable).

Electronic payment processing.

This is the module where electronic payments transactions are recorded.

Expense.

This module is where employee business-related expenses are entered.

Inquiries.

This module is where the company looks up information on screen without any edits or

additions.

Purchase Requisition.

This module is where requests for purchase orders are made, approved and tracked.

Supplier management.

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Services provided by this module include suppliers analysis and suppliers payments

monitoring.

Cash flow receipts and payments.

This is the module where records of all cash transactions, cash flows, receipts and payments are

kept.

Auditing.

This includes night auditing that entails room rates analysis, room and tax posting and night

auditing reporting that displays credit cards by type, transaction lists by date and cashier, folio

details list, trial balance and in-house tax exempt.

Events management.

In this the system would apply service charges, gratuity charges and automatic delivery charges

to events.

Reports.

This module is where the company prints out data. Reports of various types are normally

available in the system. These reports include analytical reports, cash flow reports, statutory

reports, managerial reports such as the balance sheet, profit and loss account, trial balance,

departmental analysis and budgets.

1.2.2: TRAVEL AGENTS COMMISSION SOFTWARE

The travel agents commission software enables one to create a travel agents database, calculate,

process, track, adjust and pay travel agents commissions. It also facilitates the printing of

statements, the posting of travel agents commission to the back office general ledger system as

well as the posting of the daily report. From it one can generate a travel agent transaction history

that is basically a summary of all the commissions that have been processed and paid to a travel

agent or tour operator. It also holds a travel agent data import that provides lists of travel agents

and tour operators to people with enquiries.

1.2.3: SALES AND MARKETING SOFTWARE

The sales and marketing software would provide sales information such as dates, time, terminal

number, selling price, sales histories, profit histories, discount and detailed sales reports. It would

also offer comprehensive inquiries, repeat guest history details, merges for marketing mail-outs,

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repeat guest history files, other data extraction and group management details (that is managing

transaction routing, special billing, special rates and group block booking of group plans,

corporate accounts, tour operators and wholesale accounts), (Khosrowpour, (2004). Sales and

marketing reports generated by this software include the repeat history details, group profiles,

group lists, blocking reports, market group sales analysis, arrival lists, regrets lists, departure

lists, market forecasts, room type forecasts and guest lists (by name, room, market or group).

The most important functions of a hotel property management system in marketing are:

a. To improve capacity management and operation efficiency.

b. To offer yield management capability.

c. To provide better database access for management purposes.

d. To support extensive marketing, sales and operational reports.

e. To facilitate market research and planning.

f. To track frequent flyers and repeat hotel guests.

g. To direct marketing and personalized services for repeat hotel guests (Pizan, 1993).

9. Describe advances in food service automation such as sophisticated input

devices, POS system and microcomputer interfaces, integrated food service

software, forecasting application software and catering software packages.

1.3: ADVANCES IN FOOD SERVICE AUTOMATION

1.3.1: SOPHISTICATED INPUT DEVICES

Input devices used in the foodservice area include:

Finger print biometric systems

Finger print biometric systems are also input devices that allow for the tracking of employees

hand washing and sanitization. Magnetic strip readers

Magnetic strip readers that can read credit cards are input devices when credit cards are swiped

over.

Touch-screen electronic cash registers

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Touch screen electronic cash registers and point of sale devices become input devices when they

are used to key in purchase details.

Touch-screen point of sale devices

Touch screen point of sale devices become input devices when they are used to key in purchase

details.

Touch-screen devices

Touch screens become input devices when they are used to make table reservations via the table

seating software and when used at food and beverage vending machines when keying in orders.

Card swipes that are used in vending machines and other automated machines.

At freestanding locations within the lobby, self service food and beverage terminals accept

guests credit cards for purchases of items through the card swipes that act as input devices.

Remote order pads

Remote order pads are a form of point of sales systems that handle transactions at the point of

sale. They become input devices when they are used to place orders at the kitchens. The food and

beverage orders are entered and routed automatically from the point of sale to the point of

production.

Digital timers on food production equipment

Digital timers on food production equipments like the oven and microwave become input

devices when the time that a food or beverage item is keyed in and set for the equipment.

Personal digital assistants

Personal digital assistants become input devices when they are used to write food and beverage

orders that are then transmitted to the bar and kitchen computers.

Vending machines keyboards

These become input devices when they food and beverages orders are keyed in at the keyboards

stationed at the vending machines or information kiosks, when purchase details are keyed into a

computerized electronic point of sales system and when guests use keyboards to select tables

when a computerized system is used (Connor and Piccoli, 2003).

Keyboards are common input devices when they are connected to a computer and are used to

key in details like purchase orders.

Point of sale

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The point of sale may act as an input device when the point of sale is online and charges are

posted directly from the department to the electronic folio. Being on-line, means that the point of

sale interacts directly with the central processing unit of the property management system. The

property management system might be a smart personal computer. In this instant the point of sale

acts as an input device.

1.3.2: ELECTRONIC POINT OF SALES SYSTEMS (EPOS)

The electronic point of sales system is a system that provides businesses with the capability to

retain and analyze a wide variety of inventory and transaction data on a continuous basis. . In an

electronic system, the system would be made up of the computer or electronic cash register,

input devices that would range from the keyboard to the magnetic strip readers and output

devices that would include the customer display units, video display unit, kitchen monitors,

electronic cash register printers and the point of sale printers. Hospitality point of sales systems

are computerized systems that incorporate registers, computers and peripheral equipment usually

on a computer network. These systems keep track of sales, labor, payroll and they can generate

records used in accounting and bookkeeping. Points of sale systems include stand alone

electronic cash registers, network or electronic cash registerbased-point of sale systems and

controller based point of sale systems .In its simplest form, it is a cash register with a processor,

memory and printer. In its advanced form, registers are computers sometimes with touch screens

and wireless handheld point of sales that are used to collect orders which are sent to a server that

sends the required information to the kitchen in real time (Khosrowpour, (2004). The touch

screen is automatically updated. Through this, servers are able to visualize how many items they

have sold and what tips they are making out of it thus motivating them to sell more items

Typical point of sale systems are able to print guest checks, print orders to kitchen and bars for

preparation, process credit cards and other payment cards, run reports and capture electronic

signatures. A point of sales terminal manages the selling process by a salesperson accessible

interface. The same system allows the creation and printing of the voucher.

There are several types of electronic point of sales available. They could either be computer

based, counter based or handheld mainly touch screen with useful prompts for staff to avoid

omissions or mistakes.

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Point of sales have specialized applications. These include the electronic funds transfer at point

of sale (EFTPOS), the rapid order system point of sale (ROSPOD) and the point of sale

inventory software. The electronic funds transfer at point of sale terminals enable customers to

open an account for all purchases by swiping a credit card or smart card into the system thus

creating a direct link to the credit company and enabling fast authorization of the funds available.

Electronic funds transfers at point of sale are able to:

Validate the credit card.

Produce the voucher or value added tax receipt.

Provide instant totals at the end of the shift and day.

Remove the administrative burdens of summaries and banking.

Remove the problem of clerical errors such as lost vouchers or overlooked expiry dates.

Give a faster more efficient service to the customer .(Braham, 1993)

The rapid order system point of sale (ROSPOD) is a hand held system, no bigger than a

calculator which is capable of communicating with the computer by one of these three methods.

By plugging into a nearby order point.

By radio control.

By infrared technology.

The system enables service staff to record an order at the table, ready for transmission to the

main computer.

Restaurant mobile ordering systems are a form of rapid order point of sales that utilize mobile

technology personal digital assistants in order for table staff to take orders for meals in

restaurants and communicate with kitchen and bar staff. The personal digital assistants connect

to the restaurant wireless network that is connected to a printer located in the kitchen and a till

system located at the bar. It also connects to a database server which stores all the processed

orders. Traditionally waiters would take orders from guests and write them on paper note pads

that were produced in duplicates with carbon paper. The original order would then be retained by

the waiter whereas the carbon copy would be sent to the kitchen.

Personal digital assistants are also a form of rapid order point of sales. The personal digital

assistants have an interface similar to the menus used by customers with cascading screens

allowing table staff to select the items for consumption, the quantities and any special requests to

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do with that order (Connor and Piccoli, 2003). The personal digital assistants also allow orders to

be changed at any stage. The use of personal digital assistants have increased accuracy in the

orders produced, improved record keeping, improved food and beverage control, improved

customer service and created a quicker response time to variations in customers orders.

Remote order pads are another form of rapid order point of sales systems that handle transactions

at the point of sale. The food and beverage orders are entered and routed automatically from the

point of sale to the point of production. For waiters it can be used to ensure that waiters spend

more time with customers as opposed to all that extensive interfacing with food preparation staff.

The bar code is another form of a point of sale (Brotherton and Wood, 2008). Bar-coding is the

method of placing a coded label on a product that can store information like price and item

popularity. By using a hand held bar code reader, the inventory can be logged in and the data

uploaded for analysis.

The point of sales inventory software programs lets one track usage, monitor changes in unit

costs, calculate when one needs to reorder and analyze inventory levels on an item-by-item basis.

One can control inventory right at the cash register. Point of sales softwares record each sale

when it happens thus inventory records are always up-to-date. In addition one can get much more

information about the sale than one could gather with a manual system. By running reports based

on this information, one can make better decisions about ordering and merchandising. The point

of sale system can be directly interfaced with the system of suppliers and programmed to order

directly once stock is depleted at certain levels. Some operators and suppliers use the Electronic

Data Interchange (EDI) whereby the establishments computers or points of sale are directly

networked with the suppliers.

The use of point of sales systems can seriously restrict the possibilities for staff pilfering as the

system can be able to match up the food and drink orders with the bills thus identifying any

discrepancies. These can then be printed out with the servers names.

Point of sale can be directly linked to integrated central computers and managers can download

reports. Increasingly point of sales terminals are becoming web-enabled which makes remote

training and operation possible as well as inventory tracking across geographically-dispersed

locations.

Some popular point of sales systems that are often considered in the hospitality industry are

Micros, Aloha, Free point of sale, Digital dining and Maitre'd.

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1.3.3: MICROCOMPUTER INTERFACES

Point-of-sale interfaces

Microcomputers may be interfaced to the point of sale system. When the electronic cash register

interfaces with the property management system, it becomes a point-of-sale terminal. Through

the point of sale system, for example at the bar, the guests identification is verified and bar

charges are automatically posted to the electronic folio. Tying into the back office function of the

property management system, the property management system allows an accumulation of the

bartenders tip records. A perpetual inventory icon then be maintained, automatically creating a

purchase order when inventories fall behind par. Since the purveyors system is also interfaced no

paper requisition is needed.

The point of sale can also be interfaced to the restaurant management system that would then

enable access to data maintained by the point of sale system and the electronic cash register

system. Such information could be on menu sales that identifies the actual number of menu items

sold and that would facilitate sales analysis by enabling a restaurant management system

application to merge data from the point of sale system or electronic cash register file with data

from files maintained by a recipe management application.

Remote order pads

Remote order pads connected to the kitchen computers are also interfaces and are a form of point

of sales systems that handle transactions at the point of sale (Brotherton and Wood, 2008). The

food and beverage orders are entered and routed automatically from the point of sale to the point

of production.

Smart cards that have credit card swipes become interfaces when they are connected to the

credit card authorization network thus enabling a guest to make a purchase in credit .They are

commonly used in making purchases through vending machines.

Terminals like the televisions at the guests rooms can be interfaced with the property

management system and can therefore allow for the viewing of food and beverage menus and

placing of orders on the food and beverage items.

In room vending, the automated bars, minibar and food dispensers act as terminals when they are

interfaced to the property management system whereby the charges for food and beverage items

consumed from the machines are recorded on the electronic folio (Connor and Piccoli, 2003).

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Through electronic vending the charge is posted through the bars system central processing into

the property management system interface and onto the electronic folio. The microprocessor is

normally triggered when a guest removes the object through the fiber-optic sensor.

Robots

Robotics will begin to play a larger part in transforming the hotel industry from person-to-person

service to human-to-computer interface and eventually to a consumer computer-to-hotel

computer interface.

1.3.4: INTEGRATED FOOD SERVICE SOFTWARE

An integrated food service software would perform the following functions under one system.

a. Supplier management

Using computers to evaluate possible suppliers tends to be done more by large, centralized

purchasers where large bulk discounts are involved. The purchases system records orders and

changes the status of the order to a delivery changing also the prices and quantities where

applicable. It can also be used to carry out vendor comparisons and to handle all the invoices and

statements from the suppliers.

b. Inventory management.With a computerized inventory purchasing can be based on demand and stock levels where the

computer has a record of ones stock and a record of ones desired reorder level. It can then print

out a suggested order at the press of a button. This reduces the amount of capital tied up in

unused stock and also reduces storage costs. The system allows the preparation and easy

implementation of obtainable physical inventories from true perpetual inventory values with par

levels. Inventory value can be calculated (Khosrowpour, (2004). Rising prices can also be

tracked automatically and vendor prices compared on their bids. From these a multitude of

reports can be generated based on purchases, price variances, bids and usages. The system also

facilitates the sending of requisitions for inventory items and generates purchase orders

according to required stock and par levels and also generates production sheets based on the

requirement for a period.

c. The ingredient management.

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The ingredient database contains information on each purchased ingredient such as the

ingredient code number, ingredient description, purchase unit, purchase unit cost, issue unit,

issue unit cost, recipe unit, recipe unit cost, quantities in store, new purchases and prices.

d. The measurement of the raw ingredient.

The measurement of the raw ingredient has become a main application of information

technology. Information technology is used to calculate stock value. If the stock is equipped with

printer bar codes then the bar code can read with an electronic wand and the quantity simply

typed next to the product description. This makes stock taking less onerous and fast (Peacock,

1995).

e. Recipe management.

Recipes are constructed from the ingredient database or other recipes. A standard recipe file

contains recipes for all menu items. Important data maintained by the standard recipe file may

include the recipe code number, recipe name, number of portions, portion size, recipe unit, recipe

unit cost, menu selling price and food cost percentage. The purpose of the recipe database is to

cost out the recipe. If the proportional difference between the selling price and cost price cost is

inadequate then the recipe is unlikely to be used.

Through a computerized system, a recipe can be stored and accessed at an advantage in the

computer where cross-referencing, printing and costing can be handled easily (Peacock, 1995).

Recipe costs can be updated at the touch of a button, the overall production food cost

percentages and margins established on a per recipe basis and menus benchmarked. Recipes can

also be created, scaled, portioned and their yield analyzed .From these different price points can

be allocated to each recipe based on its use. Preparation details of the recipes can also be

maintained and the recipes can be sorted based on a number of values. Proposals based on

accurate costs and desired selling prices can then be indicated. Significant marketing information

about the recipes can also be recorded in both names and descriptions and the requisite

equipment to be offered with each recipe and their cost displayed.

In a heavily standardized chain of restaurants the recipe database could include instructions for

the production of that dish and the garnishes that should be adopted. The combination of recipe

database, stock records and predictions on demand can be used to automatically generate orders.

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Recipe databases are rarely used as they need considerable effort and expense to transcribe all of

an establishments recipes on a computer and their use is limited to chain of establishments that

have standardized recipes.

f. Menu engineering and liquor costing:

A menu item file contains data for all meal periods and menu items sold. Important data

maintained by this file may include the meal plan number, descriptor (meal period), recipe code

number, selling price, ingredient quantities for inventory reporting and sales totals. From this

database menu engineering can be conducted. Menu engineering is the combination of point of

sales systems and recipe databases. The menu engineering application of a food and beverage

control system can suggest a constant restructuring of a menu based on the preferences of a

customer. A menu engineering system would only need one to input variables such as demand

quantity, desired selling price and it will automatically compute the contribution margin, gross

profit and other details thus helping in identifying which menu items to retain or drop from the

menu. It also enables one to evaluate current and future recipe pricing and designs (Peacock,

1995), personalize the colors of the background, font, buttons, highlight and insert the company

logo to give it the look and feel of the establishment.

g. Cost control

A property management system would aid in stock control. From it one can get reports on the

actual food cost from periodic inventory, ideal food cost from perpetual inventory, stock

overused from over portioning, waste, theft, neglect, stock overpriced from creeping prices,

jumping prices, lowball prices and hidden costs, stock wasted from trashing, burning and rotting

and dropping profits due to higher costs, lower sales and failure to market.

h. Temperature monitoring and hazard analysis critical control point (HACCP) management

A hazard analysis critical control point (HACCP) system would be able to alert management

when food is not properly processed; a freezer is not operating correctly or when someone forgot

to check the bathroom.

1.3.5: FORECASTING APPLICATION SOFTWARE

Forecasting customer demand, inventory needs and estimating sales volumes is critical for any

food and beverage operation.

1.3.5.1: PRECOSTING FOOD AND BEVERAGE ITEMS

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Pre-costing is a type of forecasting which compares forecasted guest counts with standard menu

item recipe costs to yield an index of expense prior to an actual meal period. A restaurant

management system pre-costing application can project costs on a portion, batch or meal period

bases. This projected cost of sales figure enables management to review and adjust operations

before an actual service period begins. Restaurant management systems pre-costing applications

streamline pre-costing analysis by assessing appropriate data from the ingredient file, recipe file

and menu item file and producing a pre-cost menu plan within minutes.

1.3.5.2: FORECASTING DEMAND FOR FOOD AND BEVERAGE ITEMS

Business forecasts can be divided into two very distinct types: Operational and Strategic. These

types differ both in the methods used to prepare the forecast and in the types of questions they

are designed to answer.

Operational Forecasts Strategic Forecasts

Type Time-series forecasting Modeling and simulation

Based on Historical data Management insight

Methods

Exponential smoothing

Statistical regression

Fourier analysis

Monte Carlo simulation

Decision analysis

Stochastic optimization

Used for

Production planning

Inventory management

Sales force evaluation

Marketing strategy

Resource allocation

Business optimization

Table One

OPERATIONAL FORECASTING

Operational forecasts are used to support routine business processes such as production planning,

inventory management, sales force evaluation etc. Forecasting methods include:

a. Time-series forecasting

This supports other different techniques to extrapolate trends and patterns from historical data.

Forecasting software applications are able to carry out time series analysis, tags and insightful

historical events like the impact of a product promotion or a recent shortage and automatically

analyze these in order to refine forecasts to truly reflect future customer demand. Using historical

data about a key quantity such as sales, one can apply time-series forecasting methods to identify

levels, trends and seasonal patterns in the data that can be used to predict future performance.

These techniques are very easy to apply and can produce very accurate results. However time-

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series forecasts are based on the assumption that the business environment and practices will not

change substantially from their current state. Time series forecasting methods include:

Fourier spectral analysis

This is used to identify seasonal patterns and business cycles.

Rolling forecast

This is a projection into the future based on past performances routinely updated on a regular

schedule to incorporate data.

Moving average

In statistics, a moving average, also called a rolling average, rolling mean or running average is a

type offinite impulse response filterused to analyze a set of data points by creating a series of

averages of different subsets of the full data set. A moving average is not a single number but it

is a set of numbers each of which is the average of the corresponding subset of a larger set of

data points. A moving average may also use unequal weights for each data value in the subset to

emphasize particular values in the subset.

Exponential smoothing

Exponential smoothing is a technique that can be applied to time series data either to produce

smoothed data for presentation or to make forecasts. The time series data themselves are a

sequence of observations. The observed phenomenon may be an essentially random process or it

may be an orderly but noisy process. Whereas in the simple moving average the past

observations are weighted equally, exponential smoothing assigns exponentially decreasing

weights as the observation get older.

Extrapolation

Extrapolation is the process of constructing new data points outside a discrete set of known data

points. It is similar to the process of interpolation, which constructs new points between known

points but the results of extrapolations are often less meaningful and are subject to greater

uncertainty. It may also mean extension of a method assuming similar methods will be

applicable.

Linear prediction

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Linear prediction is a mathematical operation where future values of a discrete-time signal are

estimated as a linear function of previous samples.

Trend estimation

Growth curve

Neural networks can also be used in forecasting.

This is a new approach to forecasting that uses a series of related neural networks. Multiple neural networks are created

and trained. Each new neural network learns from the results produced by the previous one. The neural network that

produces the most accurate results is selected and used to forecast results beyond the existing range. The data is normally

imported into a grid. The grid is then used to build and train a neural network. The neural network input values are then

forced to swing beyond their limits. The

network is then used to produce more forecasts. The forecasts produced are validated and then

added to the grid. All the values in the grid can then be exported for use in any way.

b. Causal / econometric methods

Some forecasting methods use the assumption that it is possible to identify the underlying factors

that might influence the variable that is being forecast if the causes are understood projections of

the influencing variables can be made and used in the forecast. Methods include:

Statistical regression-Regression analysis using linear regression ornon-linear regression.

Regression analysis includes any techniques for modeling and analyzing several variables when

the focus is on the relationship between a dependent variable and one or more independent

variables.

Autoregressive moving average (ARMA)

Autoregressive moving average (ARMA) models sometimes called Box-Jenkins models after the

iterative Box-Jenkins methodology usually used to estimate them are typically applied to time

series data. Given a time series of data Xt, the ARMA model is a tool for understanding and

perhaps predicting future values in this series.

Autoregressive integrated moving average (ARIMA)

Autoregressive integrated moving average (ARIMA) model is a generalization of an

autoregressive moving average (ARMA) model.

c. Econometrics

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Econometrics is concerned with the tasks of developing and applying quantitative orstatistical

methods to the study and elucidation of economic principles. Econometrics combines economic

theory with statistics to analyze and test economic relationships.

Simulation-based forecasting

This evaluates thousands of scenarios based on the established assumptions when historical data

is scarce.

Statistical forecasting

This automatically finds the relationships between multiple inputs and your business outcomes.

STRATEGIC FORECASTING

Strategic forecasts are used to exercise and compare competing business plans. These forecasts

are fundamentally different from operational forecasts in that one intends to change the business

practices so extrapolating past performance will no longer be a good predictor of future

performance. Strategic forecasts rely on modeling and simulation techniques rather than

statistical data analysis. It normally relies on modeling and simulation.Modeling and simulation

(M&S) is the use of models including emulators, prototypes, simulators and stimulators either

statistically or over time to develop data as a basis for making managerial or technical decisions.

The terms "modeling" and "simulation" are often used interchangeably. Forecasting methods

used in strategic forecasting include:

a. Decision Analysis (DA)

Decision analysis is the discipline comprising the philosophy, theory, methodology and

professional practice necessary to address important decisions in a formal manner. Decision

analysis includes many procedures, methods and tools for identifying, clearly representing and

formally assessing the important aspects of a decision situation, for prescribing the

recommended course of action by applying the maximum expected utility action axiom to a well-

formed representation of the decision and for translating the formal representation of a decision

and its corresponding recommendation into insight for the decision maker and other

stakeholders.

b. Monte Carlo methods

They are a class ofcomputational algorithms that rely on repeated random sampling to compute

their results. Monte Carlo methods are often used when simulatingphysical and mathematical

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systems. Because of their reliance on repeated computation of random orpseudo-random

numbers Monte Carlo methods are most suited to calculation by a computer. Monte Carlo

methods tend to be used when it is unfeasible or impossible to compute an exact result with a

deterministic algorithm.

There is no single Monte Carlo method instead the term describes a large and widely-used class

of approaches. However these approaches tend to follow a particular pattern:

Define a domain of possible inputs.

Generate inputs randomly from the domain using a certain specified probability distribution.

Perform a deterministic computation using the inputs.

Aggregate the results of the individual computations into the final result.

c. Stochastic optimization (SO)

Stochastic optimization methods are optimization algorithms which incorporate probabilistic

(random) elements, either in the problem data (the objective function, the constraints e.t.c) or in

the algorithm itself (through random parameter values, random choices e.t.c) or in both.

d. Judgmental methods

Judgmental forecasting methods incorporate intuitive judgments, opinions and subjective

probability estimates. They include:

Delphi method

The Delphi method is a systematic, interactive forecasting method which relies on a panel of

experts.

Scenario building

Scenario analysis is a process of analyzing possible future events by considering alternative

possible outcomes (scenarios).

Advanced analytic techniques that are used in line with the actual forecasting include:

Outlier-rejection

This is used to reduce the impact of inconsistent data.

Level-shift detection

This is used to account for changes in underlying business conditions.

In-sample testing

This is used to evaluate competing methods.

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The forecasting applications normally do have a Forecast wizard that guides one through all

aspects of preparing a forecast. This would include importing the historical data, finding the best

forecast methods and preparing output reports (Flynn, Ritchie and Roberts, 2000). Forecasts can

be run automatically (the application chooses the best forecast method and parameters), semi-

automatically (one chooses the method and the application chooses the optimal method-specific

parameters) or manually (one chooses the method and parameters).

AN EXAMPLE OF AUTOMATED ALLOCATION DECISION AND JUDGMENTAL

ADJUSTMENTS TO A FOOD AND BEVERAGE FORECAST

Automated Allocation Decision and Judgmental Adjustments to Forecasts (Figure one)

A schematic description of the price- and allocation-decision process is illustrated in Figure One.

A hypothetical automated system scans historical sales, demands and sales information and fits

quantitative forecasting models to the data. Using the fitted models, the system arrives at

predictions, which are then used as an input in making price allocation decisions. That is the

optimization algorithms recommend prices and allocation is based on the predicted values of the

forecasted variables. While the entire process can be computerized or automated, all of the steps

illustrated in Figure One involve and benefit from intervention based on human judgment.

Human judgment is applied when data and models are selected, models are fitted, forecasts are

evaluated and adjusted and final decisions on rates and allocation are made. The accuracy of the

forecast is essential, inaccurate predictions lead to suboptimal decisions that in turn diminish the

Judgmental

Adjustment

Forecast

Data

Past salesPast sales

patterns

QuantitativeForecasting

Models

OptimizationAlgorithms

Price

Allocation

Decision

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hotels food and beverage revenues and profit margin. One way to improve the accuracy of

quantitative occupancy-forecasting models is to consider the role of human judgment.

Forecasting scholars argue that more accurate predictions are obtained when quantitative

methods and judgment are combined and research supports this notion. Research on subjective

revisions (or adjustments) of objective forecasts indicates that some improvement in accuracy

can be expected from the revisions.

Studies by Armstrong, Mathews and Diamantopoulos demonstrate that revisions of quantitative

forecasts by experts (e.g., economists and product managers) often improve the forecasts

accuracy. In addition it was demonstrated that the accuracy of quantitative forecasting models of

daily sales could improve when an explicit structured process of judgment-based adjustments is

applied. This is because the human judgment supplies additional relevant information and it

functions as an independent source. If the operating environment is changing, until the models

are refitted or replaced by more adequate ones, judgment- based adjustments might prove both

necessary and effective.

Independent sources

When an additional independent forecasting model is used, the combined forecast is often more

accurate than is a single-source forecast. The independent models tend to cancel out each others

errors. Thus a strong argument can be made for a combination of forecasts where a simple way

of doing this is to let the combined forecast be a weighted average of the individual forecasts.

Collopy and Armstrong argue that rule-based forecasting (RBF), an expert system that employs

features of time series to select and weight extrapolation techniques, provides more accurate

forecasts than could be obtained from an equal-weights combination. In this case, whether it is a

combination of several quantitative models or a mix of a quantitative model and expert

judgment, accuracy is likely to improve. For best results both the quantitative models and the

revenue managers judgment-based forecast adjustment or independent assessment must be as

accurate as possible.

1.3.6: CATERING SOFTWARE PACKAGES

Catering Information System

The catering information system is a type of management information system .Beverage and

food control relies on a large database of information from the purchasing and storage of goods,

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to the delivery of service, to the receipt and control of moneys (Flynn, Ritchie and Roberts,

2000).

The main benefits of a catering information system are the speed the information can be

accessed, the accuracy of the data and the ability to control costs.

The key features of such a system are:

Control and document of all beverage and food stock items by classification and individual

item.

Record and cost all store transactions throughout the unit.

Calculate values of stores issued, held and demanded, within automatic updating of price

changes.

Maintain store levels in all stock locations.

Record automatically at the point of entry or exit from stores, all stock movements by

destinations, types and costs.

Generate purchase order based on reorder levels.

Record purchase orders status, that is delivery awaited and those partially fulfilled.

Update stock levels on receipt of purchase orders.

Calculate stock-usage data and generate stock-usage reports and wastage reports.

Virtual Service ModelThis is a part of the catering information system. These systems are common in universities. The

models use computer technology to allow for a Virtual meal plan card that combines with a set

of standard management practices and use of the internet, multiple food providers can be unified

into one system. The system allows students to be fed by multiple providers who operate in the

same system. Its feasible to have restaurant operate to operate in campus under the university

administration (Flynn, Ritchie and Roberts, 2000).The Virtual Service Model is a network that

links the university to food service providers. The financial connections allow students to pay for

meals and organizations connections allow the universities to maintain control of the systems. In

this way better value is provided to the students as vendors compete for customers. Payment can

also be facilitated through the use of credit cards and mobile phones.

Table Seating Software

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Table setting software has always been a part of the Micros system but increasingly stand alone

table seating systems like the Prohost are improving revenue by enabling a higher customer

satisfaction. Touch screen technology allows a customer to choose their table without waiting if

they had not made a reservation and a table is available. If they had made a reservation they

could easily find their pre-allocated table simply by using their credit card as a method of

identification. The service can be used in a customer personal computer or on the mobile phone.

This service if connected with a visual presentation of the restaurant tables allowing customers to

pick the actual costs and seats.

Interactive wine lists at bars and interactive bar surfaces are common.

Restaurant service staff can be given internal phones that allow them to be in constant contact

with food, beverage and banquet personnel while roaming through out the property (alcatel.com,

2009.)

Sales Analysis

The catering information system can be used to analyze historical data to indicate food usage by

type and to provide a database for developing a demand model. The point of sales system can

also analyze sales data; figure out how well all the items on the shelves sell and adjust

purchasing levels accordingly. It can then maintain a sales history to help adjust ones buying

decisions for seasonal purchasing trends. Through its use pricing accuracy can be improved

through the integration of bar-code scanners and credit card authorization abilities with the

system.

1.3.7: FOODSERVICE AUTOMATION

COMMON FORMS OF FOOD SERVICE AUTOMATION ARE:

a. Computerized ovens

New technology in production equipment allows ovens to interface with the property

management system allowing for reports on temperature, humidity gas and electricity for a better

allocation of fixed costs per product and ensuring that the operators remain true to the current

health and safety regulations.

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A chef can program ovens to cook what he wants, when and how he wants it reducing labour

costs and achieving consistency of products thus exceeding customers expectations. These

ovens can be linked to a personal computer for reporting, the equipment is installed with

temperature and humidity probes and the personal computer can regulate these, ensuring the food

is coked to perfection.

b. Digital timers on cooking equipment

Digital timers can help chefs keep track of time in busy kitchens. This can reduce overcooked

food and wastage. (Durocher, 2001)

c. Computerized deep fryers

Mc Donalds tested a prototype where a computer monitored machine dumps frozen fries into a

basket that that is in turn placed in hot oil for cooking. The machine then shakes the fries and

prepares them for service into bins.

d. Robots

Hotels could benefit from intelligent robots that act as automated attendants. Robots have been

used in food preparation and service whereby in most cases they are taken to be a promotion and

merchandising strategy. The robots prepare drinks and computers instantly convey new orders to

the robots. The process to deliver an order then takes no longer than two minutes.

e. Production equipment are also interfaced with the points of sale and the personal computers.

In service, guests give their orders to waiters holding a wireless pod (Flynn, Ritchie and Roberts,

2000). The order is then transmitted to the kitchen speeding service. The data from the handheld

device now in the establishments computer system passes through an interface to the inventory

and supply ordering system. The software breaks down an order into its components like the

starters, main course and the other courses.

f. Wireless pen based terminals integrated with leading edge restaurant systems can provide

food and beverage facilities with break through solutions that optimize efficiency and

eliminating wastes.

g. Guest pagers that light up and vibrate means that the hostess does not have to trail customers

on loudspeakers systems. Pagers can alert waiting staff when orders are ready in the kitchen.

Guest initiated pagers allow servers when a table is ready to have their order taken saving

time and unnecessary trips.

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h. Vending machines have become a powerful sales and merchandising tool. In hotels

refreshments can be provided through a combination of in-room facilities (automated bar,

automated kettles and vending machines) (Teare and Olsen 1992).

i. Information kiosks that utilize holographic and 3 dimension technology, available in many

hotel lobbies and public areas can also act as a great sales and marketing tool.

j. Motion detecting doors that open automatically at the approach of a person are common in

most establishments.

k. Automated coffee machines, water dispensers and juicers are commonly used to produce

beverages.

l. Televisions that are interfaced with the property management systems can be used to provide

room service menus and to place orders.

m. Kitchen equipment can be interfaced with property management systems.

n. Refrigerators are common storage devices in the food and beverage area.

o. Automated beverage control systems that are used to dispense beverages in hygienic

ict and the hospitality industry

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