Blog Assignment # 2

"Plastic Never Looked So Good"

Hospitality Upgrade Magazine

Kasavana, Michael L. Plastic never looked so good. Retrieved September 28, 2007 from, http://www.hospitalityupgrade.com/_magazine/magazine_Detail.asp?ID=92

One way of implementing the self-service trend that has increased over the past five years in the hospitality industry is through gift cards. Today’s hoteliers and restaurateurs are using POS systems that are capable of supporting electronic cards, magnetic strips, and bar coding authorization. Gift card processors need to be able to interface with the business’ POS system. By interfacing with an already-standing POS system, the processor can provide a website that cardholders could use to track their purchases. And, the service provider can see what types of purchases the card holder made allowing purchase behavior and trends to be analyzed. Another main role of the processor is for security reasons. The company who issued the card can see real-time account activity which can help eliminate fraud and theft. Also, some companies are able to redeem lost gift cards if consumers have the original receipt. Each hotel or restaurant should have a gift card processor that handles not only transactions, account balances, and customer data, but also the activation of new cards, increasing the value of existing cards and redeeming purchases. Most recently, Web-based services entered the hospitality industry allowing gift cards to be bought and sold through “multiple distribution channels.” Through these various channels, whether it be on-site, online or through a third-party, more people are exposed to the brand name and new customers and higher revenues could be a result.

Although gift cards have been in the hospitality industry for a very long time, the fact that companies are just now realizing their gift card processors should be interfaced with their POS system is a little strange. The benefits of interfacing obviously include better customer satisfaction (since customer purchasing trends can be followed) and more personalized services. Customers can go to the establishment, go online or call for help about their accounts, balances and security concerns. Since gift cards are customizable with names, colors and templates, they are no longer considered impersonal gifts and the hospitality industry should realize that the target market for gift cards is huge. With their increased use over the past couple of years, especially through third parties, like Wawa, many companies would be foolish to not have a gift card technology implemented into their systems. By interfacing with their POS systems and using multiple channels to get their name into the market, the companies can fully reach all potential customers. Although this type of technology is a very small aspect of a hotel or restaurants business, it’s the one way a company can definitely increase their competitive advantage.

Blog Assignment # 1

The concept of self-service has matured over the past couple of years, especially in hotels, restaurants, airports and retail outlets. However, according to a survey, 38% of 1,125 consumers would patronize a quick-service restaurant if self-service was available. Unfortunately, only hotels have put an honest effort into providing such services to consumers. There are a handful of quick service restaurants that are jumping into the trend but most are still stuck in old-fashioned ways of dealing with customer service.

The self-service era, according to Mary Carlin, began with ATMs. Now the concept has expanded into airports, retail stores and hotels and it alleviates the pressures that businesses feel from bad customer experiences, via long customer lines. A Florida McDonald’s franchisee, Gary Moulton, has taken advantage of this customer-satisfier and installed self-service kiosks in all six of his McDonald's restaurants. He installed the kiosks in a few restaurants back in 2001 then expanded over the past couple of years to his other four franchise locations. As Moulton explained in the article, customers enjoy being in control, having “ownership.” Thus, more people are waiting to use the kiosk versus being serviced at the counter. This has also increased the restaurant’s customer volume, and in turn has forced staffing numbers to rise as well. More staff is required in the kitchen versus working behind the service counter because more people are enticed to use the kiosk. Upselling is also on the rise, considering the creative layout of the ordering screens. Moulton also says his customers are happier considering the decrease in errors and the efficiency of the overall process.

Another quick-service restaurant in Florida, Whataburger, has implemented self-service kiosks and ICR or Interactive Customer Displays. Whataburger, known for custom preparing burgers to order has a credit card swiping system that remembers the last four orders a customer has purchased and lists them on the ICR screen in front of the customer. Customers can choose a previously ordered burger or customize a new one and then pay for the order with the swipe if desired. No matter what meal they choose, the meal will be delivered to the table the way they like it.

I believe quick-service restaurants which have provided this self-service option are a league ahead of their competition. If a business person has a one-hour lunch break and they are craving a cheeseburger and fries, they want that lunch as fast as possible. Waiting in line is not an option when 15 people are ahead of them – they want convenience at a low cost. This is where self-serve kiosks can fit into their busy schedule and save the hassle of lines and cash payments. I think the Whataburger chain has done an excellent job at reaching out to customers and improving customer satisfaction. By providing a self-service kiosk that remembers the last four custom-made burgers a person has ordered, they are embracing the familiarity factor that customers are searching for. If the business person with the one-hour lunch break goes to the same burger joint once a week and doesn’t want to go through the different screens that ask about burger toppings, they can automatically choose their favorite customized meal, make a payment and be on their way. Convenience at Whataburger is more than 1, 2, 3 process, it’s about providing the customer with an unforgettable experience while also playing the role of quick service – a task not many quick-service restaurants can put on their list of accomplishments.

Carlin, M. L.  (n.d.).  Order and out . Retrieved September 16,

     2007 from ,  Web site:  http://www.htmagazine.com/HT/archive/0705/0705_2.shtml

My First Blog Posting

This is my first blog posting. See everyone in class.