Strategic Management

It's a traditional bespoke hotel. This hotel. And we'll have a wander around quite soon.

0:35

Just 34 bedrooms. And I would say if a traditional feel to it well run traditional hospitality.

0:41

Yes, food and beverage is very, very important to this hotel.

0:48

This hotel has a very traditional feel, as you'll see from me. Go inside. Thirty four bedrooms.

0:52

Not a lot of bedrooms and a very strong reliance on food and beverage operations,

0:57

which means, of course, it's difficult to translate nine to bottom line profit.

1:03

Lots of costs with staff, lots of costs in terms of food provision,

1:08

lot more difficult to make a profit in a food beverage operation than a solely accommodation provision.

1:14

But what this hotel does have a very loyal customer base.

1:21

People love coming here for their lunches, for the dinners, for the teas and the coffees.

1:26

And they do support, they tell, which has a great following in the city ownership wise.

1:33

You will meet the managing partner, Gordon Sinclair, very soon.

1:39

And this is a private, independent hotel. There's no brand. There's no franchise here.

1:43

There's also no borrowed money apart from the odd overdraught to see you through trade in.

1:49

So we're going up on the kind of. We're going to look at their facilities.

1:55

You make a judgement on what storm that is. And then, ladies and gentlemen, it's over to you.

2:00

Let's go find our hotel. Go on. Thanks for your time. Ladies and gentlemen, Mossler students, we are very, very lucky to be in the awful hotel.

2:07

And we'll be joined by someone who I think this is a good friend and a great supporter of university and me,

2:16

Gordon St1, Monju partner here at the House Hotel.

2:24

And we're going to talk to, you know, some interesting topics that you might want to pick up on on your assignment.

2:27

And we're all here to try and guide you through that. Some you know, the first thing you've done, of course,

2:34

is looked at environmental scanning and what are the major influences out there in an operating environment?

2:38

Some it not to Gordon. Gordon. We've got real issues because it would all be wearing a mask this morning.

2:45

Real issues with Kuvin 19. That's a very difficult operate environment.

2:52

Would you like to pick up and cover? But also other issues that are perhaps unique to Utopia's environment in terms of the dollar bottle price of oil,

2:57

the increase in leisure tourism uncool it itself.

3:06

So what do you feel are the main things you've got to be aware off every week when you operate this business?

3:09

You go on the good cost of and that's a situation that nobody in the country has so could have, could have foreseen.

3:17

The difficulty is because it's something you have to handle it.

3:28

So there are pending guidelines being about, but actually you must do so.

3:32

You have to then separate rules, regulations, guidelines, whatever, to suit the business.

3:38

And that's comes with its own challenges and challenges of physical distance.

3:44

And it's feasible to do so, then lose three quarters or a quarter of the potential.

3:50

I stock talking the camera outside earlier and I made the point on that.

4:00

This hotel said it's four bedrooms, three strong food, beverage, you know, teas, coffees.

4:03

We saw doomsdayers, lunches, dinners.

4:08

And you and I know that's hard work to make a profit out of it.

4:12

So you've been corvet into it. What does it mean for the food beverage operation?

4:16

A lot less volume, I guess. A lot less volume. Well, you could change everything that you do.

4:20

So everything we've had is all been fresh. Now things like company that's for meals, catch cross-sell, all have to be an individual.

4:27

Saatchi's you can't predict bits and pieces anymore.

4:38

We got to the point. What do we do? And if you'd asked me six months ago, would you consider doing particularly food?

4:43

I told you, not in my life. However, two months in and no money coming in, then you have to try something.

4:50

So we spent a lot of time looking at packaging, looked at the food itself.

5:01

I cannot replicate that. Are many places you could go for, particularly majority being Chinese, Indian, that sort of thing?

5:06

Yes. People only have that facility of good square meal.

5:13

A different thing altogether. So we too there are four favourites.

5:19

These are the dishes. You know, for many years we would be suicidal, would take it off, put it that way.

5:26

Medicine, types of medicine, that is most chicken, fish and chips or fish as Jessica Ocean liquor suppliers.

5:32

Again, as Jessica to find the right packaging.

5:40

So you could have found a container that you could put the whole dish into the TV.

5:44

Do that. Just put some of these cars and the drives home. I think the old Beijing and other things go on.

5:52

So it doesn't look appealing. It doesn't look like that you get in the airport.

6:01

So we spent a bit of time, as I say, looking at various containers, package up so fully.

6:04

For example, the ticket, which is probably the second condition.

6:11

But you have one in the fleet in the hotel Eurostep in your study.

6:17

Chipolata Greevey Festivals [INAUDIBLE].

6:22

So what we did with the packaging was to try and say, well, okay, what you get is exactly what you get in a hotel.

6:26

You just have to build the place up. Right. You could plate up even a plate.

6:32

So we use a separate packaging for the plastic in this country.

6:37

And a chipolata and one greevey in a separate container. So it doesn't go all over the place.

6:43

Got as much or as little as you want. Deidre's vegetable sold separately so they don't go into the previous.

6:48

Again, so you've got three or four packages make up your one dish.

6:55

But the response has been a lot of people said the packages being shipped out.

7:00

It wasn't a money making exercise as such. It would be a couple of bills, but it kept the kitchen.

7:08

You get well, had to open the kitchen especially to do it because eventually the deal was closed.

7:13

Hello. Plus three, it was it kept me in touch with all the regular customer.

7:17

They are the ones that support the hotel and have done their families support that over the years and have come back again.

7:22

Sure. And some of them have said to me, would you continue doing this once you go back to normal?

7:31

And I said, yeah, I probably would, actually. That's interesting, because if the kitchen is open to serve those deals, yes.

7:39

No baggage is there. And there are still people who are not comfortable with going at it.

7:46

That's a good point. It's also suits some people where they can feel a special occasion or occasion where they want to go it.

7:52

We can go get that meal here, but hopefully it isn't the same people maybe doing something at the weekend.

7:58

And so they decided, you know what, let's just put the effort together. Right.

8:04

So from me thinking I'm not going to do anything to as its people, everything else was closed over 200 meals on a Saturday night.

8:09

So that's been going. So it has dropped to Reno intervenors authorship.

8:17

I wonder if I talked with that. And I wouldn't pay attention to what God was saying.

8:22

There was very much about quality. And, you know, sometimes I might touch that awful mean something.

8:26

People are also drawn does transform and transcend where we are.

8:33

And the attention detail to make sure of the customer. God can be your product even in take away our lives.

8:39

I just know. But what else is happening? And we've got a microclimate, Albertine.

8:46

Sadly, we see a number of towns close recently.

8:50

You know, I've just been talking about the cops on Dunnhumby Street, a recognised brand, maybe a competitor of this.

8:53

What they expect that they have closed so high quality hotels and all.

9:00

Sure. What is that? Plus, influencing the difficult trading we've got beyond Crawford.

9:05

I figure if I look at the invited me half here to go on.

9:11

And yes, it's difficult changing, covered, but operating as a micro economy, a microclimate had trouble before.

9:14

Is it fair or simple just to say look at the dollar bottle price, which today is forty two dollars for us.

9:21

We've seen one hundred twenty sets of a difficult, different trading.

9:28

Is that fair? How are business tourism thought about it? I think things are happening in Sin City.

9:33

Maybe they will never see again. Right. Unfortunately, the city itself has become dependent on oil and gas.

9:39

And there has been times where people have kind of said, you know,

9:49

what happens when the oil and gas industry does become seriously less than two, three, four?

9:52

Nobody does. Yes. Well, the effect has been quite catastrophic.

9:59

Nuts about us the last four years I've tended early is not to put all my eggs in one bottle.

10:05

People have said, you know what happens? What happens when the oil and gas industry has a hiccup?

10:13

Oh, well, the general thought was, well, we'll just turn around and tourism at that time.

10:19

Why would people expect it to someone moving northern for the last 40 years?

10:26

And how is your leisure tourism? No. 20, 20, September 20, 20.

10:31

How is the. Arthel? Richard has moved more to let us off people who are travelling in the staycation kind of thing.

10:36

People are still very, very wary. As I say, I've always been split between oil and gas industry leisure.

10:44

We do a lot of work with the hospital being just 10 minutes away and the very few major clients of the kind of spread.

10:55

So it's much easier for me to think that we could concentrate on some of the others.

11:05

It's difficult to judge, Judy. I think what we what we try to get across is that, you know, here we are privately owned.

11:14

There are people who whose livelihoods depend on it.

11:26

We've stuff that been with us for. Well, I think could recently an article that I had responded to.

11:30

We have 16 staff. We've been here for 15 years, plus eight of whom have been here for over 30 years.

11:39

So staff on loyal customers, very much a strength for the off the table.

11:46

And the staff at the hospital plant is all about Mrs. Voyles. You have people coming and coming back on a regular basis.

11:52

Yes. In a nutshell. For one look at the future that you keep.

11:58

Are you concerned that perhaps you have. And there's nothing wrong with that because I'm old.

12:02

An ageing population coming here.

12:07

Are you concerned that beyond reaching the young audience to come to the author, I think the young audience that come to that home recently,

12:09

before covered, there was an influx of new faces, be it children of our regulars who have been the first four years, and they are children.

12:18

So there's a third generation going in. And I know of one family. It's a fourth generation.

12:33

And it's about comfort. It's about service.

12:38

It's about standards. It's about quality. So I guess what I gave a lot, because to be honest, I like coming here.

12:42

And it's a good cause. It's consistent and accurate. I know what you're doing.

12:54

Half gone as a blonde. Do you do a non-standard.

12:59

Do you think not being a Hilton or being part of a franchise?

13:03

Does that hurt the talent? And is our strategy you would ever consider over the years?

13:07

It suddenly doesn't. And that's a good strength for us because we are individual with a niche market for people.

13:13

They get personal attention from myself, from the staff. They know the stuff.

13:24

There's a comfort factor being built. Ladies, we go for lunch.

13:29

Quick, happy rather than sit in our cars in the car park waiting for the friends to arrive.

13:32

They're having to come in because the news staff and all the people and people know them.

13:37

So there's a conversation that's always gets the point to only a little social club post.

13:41

Yes. But far out, there's not a lot of places like that within the city.

13:46

You're right. Probably having a brand to both do or would not join if accommodation sales.

13:51

It might help with television sales where you find one of the weaknesses is I don't have the knowledge and the wherewithal as to achieve hotels.

13:57

So Change Hotel will have a sales and marketing department. Sales.

14:06

Reservations department. Head office. Head office. They will have all the risk assessments, health and safety all take time for them.

14:11

They don't have to worry about a thing.

14:21

I, on the other hand, have to do that internally ourselves, whether it's myself or some of the management team.

14:23

Sure. And that's one of the I think over the years, the associations we've had with a lot of tailors,

14:30

that you can go to them and then say, well, be done this. What have you done with that?

14:38

All right. The other thing that would actually work. But if I take that section and put it in that section, then it might go.

14:43

OK. So there's a lot of income from there is a lot of the job is time consuming.

14:49

And until you have a general manager oversees everything. And as I think they might like, titled in managing partner, I generally manage.

14:58

But it comes with a price. You know, the success.

15:11

Your business depends on the input that you put in. Correct. It's a loyalty to your customers as well as the customers being loyal to you.

15:16

It works both ways. And that's what you have certainly. And more customers.

15:24

I think maybe maybe you're trying to franchise it would be envious of that.

15:29

They get that. They get that Pelops across the country.

15:32

We get certainly enough for here on a regular basis case by a click and see if if your sales were 100 percent,

15:35

how much would be food, beverage and accommodation.

15:44

The split be on month by month basis. 50 percent to 50 percent food.

15:48

Twenty five, twenty five days. So not not quite, that's quite interesting.

15:57

And if if if you're right. That's a good day when we could do functions previously that I do enough to function as were sitting at the moon.

16:02

So there's not the demand to fill them. The cost implications of opening, they're not stopping them.

16:10

With the regulations that apply. Yes. Because private functions view a few party up to 20 people.

16:18

But the same applies that you can only have a maximum of six at one table or two persons cut.

16:27

And therefore, do you get that for an advance from the directors?

16:34

It's cracked up to be. So is it really worth getting involved, get involved in that?

16:40

I mean, I would rather think I don't know what happens with your stuff.

16:45

Simplify everything, ignore it, but still give the service.

16:50

So A is left off on the floor. We still have somebody to sit and read through all of it.

16:55

But all of what you have to do is one of these systems that are just insane.

17:01

Pick up your own menus, pick up the and traceable. So, David, your compliments.

17:06

We are meal out of a plastic container. That's the way it has to be.

17:11

People to appreciate that. Appreciate you take the time.

17:16

I think in this particular instance, at this point in time, it's making people feel comfortable and safe in their surroundings.

17:19

We have had feedback. I've had feedback not only from people saying they do feel safe, which is which is great.

17:26

And I'm sitting up here at a function of the clinic, about 50, 60 and next to our room that 20, 30, and that's not half.

17:31

So that's an income stream of revenue stream that everyone who's in conference in Bonn, fruitiness missing out on Kucharski.

17:40

Again, back to where we were going before Kofod. We were expecting cruise ships coming in.

17:48

We're expecting more leisure visitors. We're talking Northeast 250 as to in route.

17:54

We've got the Techa, that PMG alive and out at the airport.

18:00

Any of these initiatives helping you to include take out anything that's happened in the last year, helping some of them will have helped.

18:04

And Tech, I have helped indirectly, obviously, that the hotels near to there will fill first.

18:13

But there are also people who are looking for a hotel that's privately owned.

18:21

That's that's their cup of tea to do the places, I take it, for a concert or whatever it happens to be.

18:25

People are not travelling abroad, though. And I think there are a lot more couples just travelling because they want to get away.

18:34

And that's what I hope that remind us to at least retain some of the comedies that

18:48

are there are signs of positive signs of travel and leisure industry picking up.

18:53

I think it's something that we've got to direct for the future and the importance of it,

19:00

because we have got an awful lot on our doorstep that would encourage people to come to the northeast.

19:07

We've got mini golf courses and good quality golf course.

19:13

We've got royalty's site.

19:18

We've got the kind of national park, the Pacific trails, castle trails, all things of interest and all those and just that, say the city.

19:20

Basically, people who come with us tend to be.

19:31

Majority unfancy tend to be probably central belt.

19:38

Who to a car drive. So that's and we can use this as a base.

19:43

Yes. To to to to a roundabout. Do these things in these days.

19:48

Yes. I think the city centre hotels and the airport hotels, they have their own agenda.

19:52

Shall we say the city centre. You could come to our the by train, for example, from Nashville or anywhere.

20:01

Straight and straight. And tell cheque into one of the hotels at the station.

20:09

Visit the shopping centres and cinemas and restaurants finisher.

20:14

We can get back on the train and you see nothing. You are probably half.

20:18

So I think looking the future, we need to be promoting as much as we can what's available to us.

20:22

Suddenly across the country, just know people like me and Nike, Steven Nike and Kiefer Telles.

20:30

I do rather well the documents in sending out presents and calls anywhere other regional and Inverness Alice's talents and something very well.

20:38

So there are people are using the staycation. Well, the things we've done in the course is looked at past collaborators.

20:47

Do you work closely with. Was it Aberdeen, China? It's called to helping to collaborate to put business into Aberdeen in this hotel.

20:53

And previously wasn't such a great indicator that we were getting a lot in return.

21:01

Yes, we did try and keep in touch as much as we can. There are various incentives that are offered by both, yes.

21:06

But there's no genuine proof that we get business right from it.

21:13

And one of the downsides, I suppose, of being private, not up to date necessarily with all eye-teeth, for example.

21:19

Yes. As we have the TNA company to look after that I.T.,

21:26

the systems that we have are probably more capable of giving me more information than we actually use.

21:31

But then again, we don't have the funding to pay for extra staff to do separate jobs.

21:38

So receptions in the AFL usually manned by one person, but they take all the function employees or the restaurant reservations.

21:46

They take accommodation, reservations, anybody who comes into the hotel to cheque into this chickens Checketts restaurant billing.

21:55

That's all the matters. So they sometimes don't get a chance to concentrate on other areas.

22:04

And it's all you need to look into the future. Definitely. Who do you see your main competition is in terms of.

22:12

I might be EPMD. Frankly, I don't know. Is it here, Beebee?

22:18

Is it although hotels. What's your main competition as far as food beverage goes?

22:22

That's a pretty unique market. And these go by if I could.

22:28

For example, that's an otter tail. It's closed. It's closed its doors till next year.

22:32

So they would have been very slow come to town.

22:37

Culturally, we privately owned nothing like ourselves.

22:42

And I think there's quite a crossover between customers with a captive audience with lots and lots more.

22:46

So you think people moved between independents rather than defect from a brand like Judi's?

22:54

There are some other signature. Not not far from here.

23:00

I mean. How do they fit into people's decision making or do people's buying price?

23:04

Well, that whilst some people will buy a price. So they're looking for the cheapest room they can get industry.

23:10

So they're not really what age about the service of the place, quality of the food, the standard of this that the next day.

23:18

There's a point of no return. Obviously, some people like general type of customer doesn't look necessarily for the cheapest room we can get.

23:25

It's something that if it ideologically is a deal, but they do all the service standards on behalf and only cleanliness.

23:36

And if we go to separate viso from.

23:44

But I don't think my guests travel.

23:52

Remarks. Yes. The views we have been travelling users when I look over.

23:57

We have been number one on travel reviews for three and a half.

24:02

Novelty number one, travel reviews are flat out tell. That tells you something.

24:09

So that's the plan. That doesn't go by price. It doesn't include. Goes by what the customers actually say about the hotel itself.

24:14

And the two things that are mentioned quite a lot, cleanliness of it.

24:23

And the standard through it,

24:30

understand it's affecting you guys aren't here today because that certainly can tangibly touch it when you go on this property.

24:34

I talked to in class about the quality of the brass plaque. Safety is always cleaned and I think that is a marker of the quality that is here.

24:40

That's interesting because in RFL is, I would say, unique, certainly,

24:49

and differentiated rather than the quality and a blonde, which is a terrible exercise.

24:53

So I'm really stressed about Zappos and that one.

24:59

Some of the newer clientele that come in with young families and those Meanjin possibly friends of native builders and their families,

25:04

but they come out and this each chapter them.

25:14

And first time you've been of whatever it is they may be asking the food industry and food order and they speak about the children's meals.

25:16

So the do children's. And it surprises me the number of times when people say what's the hardest?

25:25

Because it goes up, as you know, the how did your children get the same idea that you get a number of times you could go or really in disbelief.

25:33

But why would you not give the children healthy food that the parents offered?

25:44

Why would you do something different for them unless they particularly wanted?

25:49

It also used to stay away from the pizza delivery periods that fast food science.

25:53

I mean, for example, the colour on the menus at attritional it's not a specialised colour.

25:59

It's just that additional curry routine. Not too spicy.

26:06

Just everybody loves it. It's traditional and it's giving people trying to perceive what people actually want.

26:11

People will see of any chance I could get this with that or could you do some meals for me?

26:20

So they knew that it's fresh, whereas if you it achieving anywhere else.

26:24

It's what's on the menu. That's it. Nobody comes to cheque your meals.

26:29

You will get it right 100 percent of the time for a hundred percent of the people.

26:34

Another thing I think you do is you actually ask your customers when it comes to menus whenever you do it, just to implement it.

26:38

And so therefore, you're listening to them and actually devising Europe product because I feel that's still relevant.

26:44

Sometimes there's too many favourites. You can get more on the menu. I'm going to say thank you.

26:51

On. We've taken a fair bit of your time today.

26:56

We've captured the essence of the Alpha Hotel and we really appreciate your time and for any of you watching.

26:59

And to do this. Get yourself up here and excuse yourself, because it really is a treat.

27:06