make a powerpoint about the paper that i included in the attachment, and also include these points the powerpoint too. Considerations for organizing your presentation content:Include an opening: Background of investigation (why this is of interest to us and why this exploration is worthwhile)Address: What does effectiveness look like in the industry that you have chosen?Exploration of factors driving change and examples of companies adapting.Address: What role does leadership play in driving effectiveness?Description of leadership competencies for driving effectiveness in the sector.Address: What are the primary challenges in achieving and sustaining effectiveness?Include a summary and recommendations for sustaining effectiveness
food_and_restaurants_industry.docx
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Food and Restaurants Industry Research
Group 5
University of Missouri-Kansas City
Food and Restaurants Industry
Background Information
Food comprises part of the everyday life of humans. However, how human beings shop
and experience food are different and continue to change with each passing time. The changes
have dramatic implications for the food and restaurant industry. The food and restaurants
industry is one of the largest industries in the United States, as depicted by the people it employs
and serves. The industry is the second-largest private-sector employer in the United States. In
2017, the United States had more than one million restaurants that employed about 14.7 million
Americans (Marriott, Schilling, & Gravani, 2018). It, therefore, signifies the growth of the
industry and the role in the plays in the economic development of the country.
In 2014, the United States Department of Agriculture reported that the food purchased
away from home accounted for more than fifty percent on the amount people spent on food.
Such statistics show that the country relies on the food and restaurant industry for most of their
food produce (Marriott, Schilling, & Gravani, 2018). The major contributing factors to the
growing trend of people eating away from home since the 1970s are the increment of women
who work away from home and increment in two income-earner households. Increasing
popularity in the food and restaurant industry is the preparation of home-delivered meals,
particularly among young professionals. It has seen an increment in the popularity of the food
trucks that offer quick and convenient food to various homes in the United States. Even with the
continued rise of the food and restaurant industry, challenges will arise in the future, particularly
on legislative and regulatory measures, cybersecurity issues, and increment in labor costs
(Marriott, Schilling, & Gravani, 2018). With the continued growth of competition in other
industries for employees, recruiting and retaining employees will become a top priority in the
industry. The workforce is changing as depicted by the shift to older workers because of the
shrinking pool of young labor.
Food and restaurant industry is facing a challenge of shaking off the criticism that the
industry is contributing to the growth of the obesity epidemic. The continued rise in the cases of
overweight and obesity is consistent with the rise of the food and restaurant industry, as more
people prefer to eat outside their homes (Hwang & Lorenzen, 2008). It, therefore, prompted the
consideration of the influence of the restaurant industry in the eating habits of Americans as a
possible solution to the problem of obesity. The food and restaurant industry responded to the
consideration of the industry as a contributor to some of the health problems by adding other
healthy options to their menus (Hwang & Lorenzen, 2008). Despite the addition of such healthy
options in their menus, the industry has made little efforts in their means to help customers select
healthy food choices.
Measures of Effectiveness
The fast-changing business world has forced most industries to find the right ways of
surviving using forms that help them remain in the market for them to become successful in the
market. Depending on the location of the restaurant, managers have to find the right means of
attracting clients to ensure the growth of the business. Businesses in the food and restaurant
industry are accounting the available marketing analysis and promotions to continue growing
their business (Nexhipi, 2014). Measuring the effectiveness of the industry or any restaurant
entails measuring the performance of the restaurant. Marketing analytics are tools that help in
measuring marketing performance and marketing metrics in a restaurant as one looks for
measures of performance. Metrics are used in business for explaining the phenomena that take
place, diagnosing causes, sharing findings, and projecting results of future events. Metrics
comprise an essential means of measuring the effectiveness of any business by ensuring the
comparison of observations in different places and periods (Nexhipi, 2014). With the collection
of different metrics from different parts of the industry, one can check the progress of the
industry and eventually, the effectiveness of the set measures and the overall industry.
The restaurant industry is highly competitive, and the satisfaction of the guest is the
critical objective, as is the case in most businesses. Challenges restaurant managers face when
operating revolve around the provision of quality food to their customers (Kukanja, 2017). The
customer satisfaction level is, therefore, another measure of effectiveness in the food and
restaurant industry. Individuals operating in the industry strive to gain an advantageous edge
over their competitors because of the competitive nature of the industry. Managers develop
essential marketing strategies and tools to ensure that they get to the intended customers, foster
customer relationship, and establish sustainable market share (Lin, Tou, & Yeh, 2014). The
understanding of customer needs is one of the essential steps managers in the food and restaurant
industry should take to ensure that they deliver quality services.
An effective restaurant has a high number of customer returns since the customers are
satisfied with the quality of the food they received from the restaurant (Kukanja, 2017). The best
managers implement the best strategies to ensure that they meet customers’ expectations by
setting out ways of identifying what they want and then strategizing how to meet them. The
industry experiences the challenge of understanding how the changes affect their business, but
the best business people know that anything that can be measured in the industry can be
improved (Tzeng & Chang, 2011). Metric use in measuring the effectiveness of the industry
ensures that one can track the issues facing the industry and make changes according to the
findings. It, therefore, form the basis for the business to develop.
Financial breakdown is another measure of effectiveness of any industry. Different
organizations have different starting capital and expected the amount to gain after a specified
period. Financial ratio, usually converted by businesspeople to monetary outcomes such as return
on investment (ROI) is an ideal way of measuring the efficiency and effectiveness of an
investment. ROI provides one with a basis of where the business is by directly measuring the
amount of return from the investment relative to what an individual invested. Different industries
have different levels of effectiveness with the business that has a net positive ROI becoming
worthwhile (Nexhipi, 2014). Such financial ratios are essential for industries that seek to expand
since they can know whether their business is profitable or not. Profitable businesses are
effective in what they are doing while the ones that experience losses are ineffective and require
another means to turn around the losses the business is making.
Structural Breakdown and Leadership Profiles
Leadership is essential in any industry because leaders are at the forefront of the business
and influence how the other people within the business function. Leaders influence people
towards the desired objective. Leadership and management complement each other in the
industry with management focusing on stability while leadership focuses on innovating,
adapting, and developing employees. Management ensures that the business copes with the dayto-day activities while leaders look into the future of the business. Leadership play an essential
role in the effectiveness of a business by ensuring that employees follow them because they
connect with them in some significant way (Hinkin, 2011). Such a connection bodes well with
the food and restaurant industry because of the labor-intensive operations within the industry and
its focus on people.
Leaders set clear objectives in an organization with a reward system for employees that
contribute to the reinforcement of the organization’s objectives and culture. Sectors that fail to
reflect their visions and missions in their performance program due to poor leadership are likely
to fail. Leaders in the restaurant industry can establish values such as valuing their people,
encouraging their development and rewarding their performance (Hinkin, 2011). Reinforcement
of the value entails senior leadership evaluating the performance of each employee and focus on
ways of leading people.
Leadership influence the effectiveness of business by setting leadership competencies for
other people to follow. Some of the competencies to set are demonstrating personal excellence,
creating an environment that encouraged team working, building and leveraging relationships,
and communicating effectively (Hinkin, 2011). An example is the Darden Restaurants that have
an established leadership and management style. However, the restaurant separates its
performance management systems into two categories, what the manager does, and how the
manager does it. Each category has its part, with the “what” category composing of finances,
employee development, process excellence, and impact on the guest. Darden Restaurants tailors
the weighting of each objective to the individual based on the responsibility of each individual.
The “how” category, on the other hand, focuses on leadership, particularly, personal, business,
people, and result leadership (Hinkin, 2011). The focus on leadership by the organization shows
the importance of leadership in the success and effectiveness of an organization. Darden
Restaurants are successful in their ventures and continue to expand; thus the need to look at their
leadership to check on how they perform (Hinkin, 2011). Continued success by Darden
Restaurants shows the need for other companies in the sector to adopt a leadership style that
fosters the growth of the company.
Skills, Knowledge, and Competencies in Leadership
Essential skill, knowledge, and competencies in leadership in the food and restaurant
industry entail developing an essential plan to ensure the success of the industry. Ideal leaders
start by understanding themselves, understanding the organization, acknowledging good
performance and correcting poor performance within the organization, establishing objectives
and providing guidance to the set goals, and becoming flexible and ready to adapt. Selfawareness is an essential skill among leaders in the hospitality industry since one can understand
his or her behavioral patterns as well as internal motivators (Hinkin, 2011). Self-awareness
allows an individual to change to adapt appropriately to a particular situation because of the
demonstration of self-control.
The ability to understand the organization is an essential skill for managers and goes
beyond looking at organizational charts to include customers and knowing how workflows
through the organization. The food and restaurants industry is a complex sector that a leader
should understand all the spheres within the sector for optimal working (Hinkin, 2011). A clear
understanding of the sector allows the leader to identify the areas that are not working well and
rectify them to avoid the faltering of the sector. With a clear understanding of the organization,
leaders can, therefore, establish objectives and provide clear direction for employees to follow.
One begins by understanding what to achieve. Since the food and restaurant sector is about
attracting more customers and retaining the available customers, leaders should focus on
satisfying them as the primary objective (Hinkin, 2011). With satisfied customers, the business
continues to grow, which eventually contributes to increased profits.
Flexibility and willingness to adapt is an essential skill for restaurant leaders. The
hospitality industry is dynamic; thus, the need for flexibility and willingness to adapt to meet
customer needs and ensure continuity of the business. The understanding of the organization
contributes to the flexibility and willingness to adapt an individual depicts (Hwang & Lorenzen,
2008). It, therefore, allows an intelligent leader to help the organization achieve its set goals.
Since different individuals from different regions have different types of food they like,
restaurant leaders need to ensure that they know what the customers want and be flexible enough
to provide them with what they want (Hinkin, 2011). Flexibility in providing customers what
they want shows them that the restaurant cares, thus increasing their trust in the restaurant.
Other notable skills for leaders in the sector are self-management, social awareness, and
social skill. Self-management is essential for leaders since one can adjust easily to the changing
situations in the organization without necessarily becoming emotionally upset (Hinkin, 2011). It
allows an individual to control oneself in difficult situations to ensure that the company
continues even when faced with difficult situations. Social awareness entails a leader having
empathy for others and understanding the different organizational dynamics (Hinkin, 2011).
High social awareness allows the leader to become sensitive to the emotions of others within the
organization and understand the perspective of others regarding different issues within the
organization. Social skill entails developing effective communication skills, managing conflict,
and persuading others in any setting (Hinkin, 2011). A leader who has the requisite social skills
is more likely to succeed in his or her endeavors since one can manage different disagreements
within the organization and influence others towards the right path of success.
Influence of Market, Political, and Environmental Forces on Changes
Food intake of people in any given country is influenced by factors such as consumers’
income, educational level, and cultural differences. On the other hand, the market, political and
environmental forces influence the food and restaurant industry. Market forces play an essential
role in the development of the food and restaurant industry. Like any other company, market
forces are essential for the survival of an organization since the market keeps an organization
(Hanaysha, 2016). Readily available market means the industry can prosper, whereas
unavailability of the market hinders the development of the industry.
Political forces affect some aspects of the food and restaurant sector, considering that
politicians have trade groups and lobbying groups that influence the functioning of different
aspects of various sectors. Political leaders influence government spending in the sector, which
can either foster or stifle the growth of the industry (Lin, Tou, & Yeh, 2014). Political activities,
on the other hand, particularly in developing and politically unstable countries, influence the
functionality of restaurants during the electioneering period because of the political climate and
the tension that comes with it (Lin, Tou, & Yeh, 2014). Political tension generates some
negativity among the people who fear going out and influence tourists from visiting the country,
thus hampering the growth of the business.
Ethical Considerations and Corporate Social Responsibility Efforts
Fundamental changes in the current business environment have seen an increment in the
focus of corporate social responsibility and ethical considerations. Some of the key drivers that
influence the new focus on corporate social responsibility in the food industry are investor
pressure, direct stakeholder pressure, increased the sense of social responsibility, and peer
pressure. The continued growth of obesity and weight gain cases in the United States have
contributed to pressure on the food and restaurant sector because more people associate weight
gain with consumption of restaurant food, particularly fast foods (McCool & McCool, 2010).
The moral responsibility of the food industry revolves around providing consumers with
products that do not harm customers, and the responsibility outweighs the firm’s responsibility of
creating profit.
Strategic corporate responsibility incorporate caring corporate community service that
focuses on accomplishing strategic business goals. Foodservice firm should be at the forefront of
engaging in social responsibility, which helps in alleviating obesity. Despite the need to
incorporate corporate social responsibility and ethical considerations, foodservice firms continue
to make a considerable profit (McCool & McCool, 2010). Increased corporate social
responsibility in foodservice firms and the general food industry contributes to essential factors
such as environmental sustainability, which eventually boost the neighboring community.
Recommendation for sustained effectiveness
Ensuring sustained effectiveness in the food sector require some effort from the food
industry owners who have to assemble processes and resources needed to produce, process,
distribute, prepare, and consume food. Such processes are connected to food supply chains and
farm practices, natural resources, and policies for maintaining food for the public. Sustainability
of the food system is the production and maintenance of foods that meet the current needs of
consumers without necessarily compromising future generations. The food and restaurant
industry should ensure the maintenance of quality food that encourages the public to continue
visiting the restaurants to take food. Without quality food, consumers may opt to try food
elsewhere or in their homes, thus resulting in the decline of the industry. Foods that meet the
necessary nutritional status of humans means it maintains the health of consumers without
raising health concerns. It, therefore, encourages consumers to continue consuming food from
the restaurants. However, increased health concerns from restaurant food would influence people
to stay away from the foods, thus making the industry unsustainable.
References
Hanaysha, J. (2016). Testing the effects of food quality, price fairness, and physical environment
on customer satisfaction in fast food restaurant industry. Journal of Asian Business
Strategy, 6(2), 31-40.
Hinkin, T. R. (2011). Becoming a leader in the hospitality industry. Cornell University School of
Hotel Administration Collection, 1-17.
Hwang, J., & Lorenzen, C. L. (2008). Effective nutrition labeling of restaurant menu and pricing
of healthy menu. Journal of Foodservice, 19(5), 270-276.
Kukanja, M. (2017). Quality Measurement in Restaurant Industry from the Marketing
Perspective: A Comparison of Guests and Managers’ Quality Perceptions. Ekonomska
misao i praksa(1), 41-61.
Lin, W. S., Tou, J. C., & Yeh, M. Y. (2014). The effective performance measures for store
managers on restaurant chain growth. Tourism and Hospitality Research, 14(3), 131-142.
Marriott, N. G., Schilling, M. W., & Gravani, R. B. (2018). Principles of food sanitation.
Springer.
McCool, A. C., & McCool, B. N. (2010). The Social responsibility of the foodservice. Caesars
Hospitality Research Summit, 1-12.
Nestle, M. (2013). Food politics: How the food industry influences nutrition and health (Vol. 3).
Univ of California Press.
Nexhipi, O. (2014). Marketing metrics and its usage: A case of restaurant industry. International
Journal of Economics, Commerce and Management, 2(9), 1-17.
Tzeng, G. H., & Chang, H. F. (2011). Applying importance-performance analysis as a service
quality measure in food service industry. Journal of technology management &
innovation, 6(3), 106-115.

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