THE FUTURE OF DISTRIBUTION MANAGEMENT IN RESTAURANT INDUSTRY

1. THE FUTURE OF DISTRIBUTION MANAGEMENT IN RESTAURANTINDUSTRY Presented by HarmanrajSindhu And RapeepanNoppornprom

2. Source of the article • Journal of Revenue and Pricing Management, March 2011, Volume10, Issue2, P189-194

3. the author

4. Sheryl e. kimes • She is a professor of Operations Management at School of Hotel Administration. • She served as interim dean of the Hotel School from 2005-2006. • She served as the school’s director of graduate studies from 2001-2005. • She teaches restaurant revenue management, yield management and food and beverage management. • She holds the Singapore Tourism Board distinguished Professor in Asian Hospitality Management.

5. continued • She has done lots of research interest. • Published over 50 articles in leading journals. • Served as a consultant to many hospitality enterprises around the world. • Earned her Doctorate in Operations Management in 1987 from University of Texas at Austin. • M.B.A., New Mexico State University • M.A.P.A., University of Virginia • A.B., University of Missouri

6. Restaurant distribution channels • 4 basic ways • The traditional telephone method • Call centers • Online or mobile through their own website or application • Online or mobile through general third-party reservations sites or applications.

7. Telephone reservations • It give the restaurant more control over the way they take bookings. • It allows them to have a personal connection with their customers. • During the busy times, it maybe difficult to take the reservation. • It may be seen as problematic from the customer perspective.

8. continued Telephone reservation can be handled by having their customers call the dedicated reservation call center

9. Online reservations • available since late 1990s. • have grown in importance and acceptance over the years. • For example, OpenTable.com • 90% share of the US online restaurant reservation market. • approximately 5 millions seats dinners per month.(OpenTable Corporate Presentation, 2010; Severman,2010) • OpenTable, UrbanspoonRez or restaurant website

10. Third-party site • OpenTable or UrbanspoonRez • offer reservation at a number of restaurant and show customers the availability of reservation at the times. • Pros • is very easy to make, can make 24/7 a day, will get the e-mail confirmation. • Restaurant operators can put their table inventory online. • Cons • loss of personal connection with the restaurant.

11. continued • In addition, these sites offer additional services that maybe beneficial to the restaurant such as • electronic reservation books, • guest history systems and • table management

12. restaurant website • Restaurant develop their own website for the convenience of their customers. • But also control the restaurant information that provided to the customers. • While the personal connection is not high if compare to call center method • But it is higher than achieved through the third-party sites.

13. Things to consider • Customer preferences • Incrementality of business and • Other ancillary services such as electronic reservation books, guest history system and table management.