The Response of Hotels to Increasing Food Costs due to Food Shortages Murray Mackenzie∗, Catherine Cheung and Rob Law School of Hotel and Tourism Management, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong During 2008–2009 the hotel industry in Hong Kong had to respond to a steady price increase in general food items and in basic food commodities. As most hotels in Hong Kong predict their food cost budgets a year in advance, these sudden and unexpected increases in food commodities came at a time when there was a downturn in the global economy in the wake of the financial crisis and a worldwide influenza A (H1N1) epidemic. There have been articles published in hospitality and tourism journals that have discussed the issue of food cost and control in hotels resulting from poor storage and purchasing, portion control, and preparation and production methods. However, none of the previous studies has examined the sudden and rapid increases in the cost of foods and the impact that this has had on the hotel industry. The measures adopted by Hong Kong hotels of different tiers to control or reduce expected food costs are analyzed in this study. This study employed a cross-sectional exploratory design, encompassing indepth personal interviews with food and beverage managers and executive chefs in high-, mid- and low-tier hotels in Hong Kong. Empirical findings revealed that mid- and low-tier hotels found the increases in commodity prices challenging and thus employed innovative methods to combat rising food costs. High-tier hotels were more concerned about satisfying customers’ needs by maintaining high-quality food products and services. The findings indicate that hotels and restaurants at all points of the market adopted functional strategies to increase their efficiency and profitability. Based on the operating experience of existing hotels, this study demonstrates that enhancing the quality of suppliers’ commodities, good staff communication and training practices, and innovative ideas can improve a hotel’s financial situation. Key words: food shortages, food wastage, cost control, sustainability Asia Pacific Journal of Tourism Research, Vol. 16, No. 4, August 2011 ∗Email: [email protected] Asia Pacific Journal of Tourism Research, Vol. 16, No. 4, August 2011 ISSN 1094-1665 print/ISSN 1741-6507 online/11/040395–22 # 2011 Asia Pacific Tourism Association DOI: 10.1080/10941665.2011.588869 Introduction Theunderlyingcausesofincreasingfoodprices that happen globally have been the subject of keen debate in the hospitality industry in recent years. The factors that have led to this trend are still ongoing and have caused dramatic increases in world food prices (Webster, 2008). As hotel restaurants generally set their food and beverage budgets 12 months in advance, the intra-year food commodity price rises experienced recently have been significant enough to affect all hotels in all market tiers, not just Hong Kong hotels. The hospitality industry has been greatly affected by the recent downturn in the global economy in the wake of the financial crisis and the worldwide influenza A (H1N1) epidemic. This has reduced the number of visitors to Hong Kong and negatively affected related industries such as tourism, hotels, conventions and exhibitions. Coupled with the fall in global supplies of food staples such as rice, corn, soya beans and wheat during 2008, this has led to a radical readjustment of food budgets and costs (Kwa, 2008; Lee, 2008). The restaurant industry in hotels has been forced to adapt and to adjust its long-term forecasts for food costs and budgets during 2008–2009 and beyond. By late 2009, the global food crisis had not appeared to vanish, and, like all food industries, the hospitality industry was affected by the continuing imbalance of demand and supply. Along with concerns about food traceability, food origin, local sourcing, food quality, food pricing, food costing and customer sensitivities have all become significant issues and will continue to be in the future (Webster, 2008). The study reported in this paper investigated how Hong Kong’s hotel restaurants have responded to the steady rise in cost of general food items and in basic food commod ities such as wheat, rice, maize and oils. These increases have forced hotels in Hong Kong to adopt innovative measures for maintaining budgeted food costs and, in some cases, reducing them during times of uncertainty. The topic of environmental management systems (EMS) is gaining popularity in hotels globally (Chan, 2009) and environmental management will be a relevant theme discussed in this study. Environmental management systems are a way of dealing with aspects that have an impact on the environment (Chan, 2009).An organization can control the environmental impact of its activities, products and services through implementing an EMS (Chan, 2009), which could have an additional effect on overall food costs. As environmental management has a broad base (Kirk, 1995) that covers varying concerns such as sustainability, foodwastage,waterandenergyreduction,recycling and pollution, this study will discuss food wastage, recycling and sustainability as factors that could have an influence on reducing food costs in hotel restaurants. In its 2002 annual Global Environmental Outlook 3 (GEO) reports (United Nations Environment Programme 2002), the United Nations (UN) Food and Agriculture Organization (FAO) predicted that the prices of beef and pork might be 20% higher by 2017, wheat could be up to 60% more expensive, and the cost of vegetable oils might rise by 80%. The UN’s World Food Program (WFP) has been affected by the rising cost of staple foods over the last few years. For instance, prices for staple crops such as wheat, maize and oilseed more than doubled between 2005 and 2007,a trendthathas affected WFP initiatives. These rises in staple crop prices have also affected food costs in the hotel restaurant industry. WFP Executive Director Josette Sheeran recently warned of the precautionary measures it had been taking to rationalize 396 Murray Mackenzie et al. food aid. According to the latest WFP data, prices for some food commodities rose by 40% in 2008, and are still continuing. This trend was set to continue until 2010. The WFP also warned the European Parliament that the problem was not a short-term bubble and was almost certain to persist. In their 2008“SpecialReport”,the Asian Development Bank highlighted the fact that during the first months of 2008 food price inflation had increased to double digits in several countries in Asia (Asian Development Bank, 2008). This placed additional demands on operational costs of hotels, inevitably a matter of great concern to hotel and restaurant management. The purchase, storage and production of food and the issue of food waste have long been seen as problem areas in the hospitality sector (Youngs, Nobis, & Town, 1983). Research conducted in the 1970s and early 1980s showed that 15.5% of edible food was wasted (Kirk & Osner, 1981). Regrettably,foodwastagecontinuestoblight the food sector, and the concern was amplified when prices for high-quality ingredients for meals served in restaurants surged during 2008.Riotsandunresttookplaceindeveloping countries over food shortages and increases in pricesforstaplessuchasbread.Despitetheescalation of the problem, the current economic crisis has diverted resources from programs aimed at responding to the global food crisis to efforts to shore up the financial system. International grain prices nevertheless remained high in March and April 2009 in comparison with historical figures (Mendoza, 2009): . the price of rice was 49% above its 10-year average; . the price of maize was 43% above its 10year average; . the price of soybeans was 36% above its 10-year average; . the price of wheat was 31% above its 10-year average. Although these ingredients may be viewed as staple crops, they do have an important link to the beef, poultry and pig industries (Trostle, 2008). Global consumption of meat has increased more rapidly than consumption of grains and oilseeds. As the demand for meat increases, the demand for protein and grain used for animal consumption grows proportionally more quickly (Trostle, 2008). Hong Kong hotels and restaurants are renowned for their high-quality services, generous portions and the variety of foods offered (Buckman, 2004; Raoul, 2003). While these attributes have ensured that Hong Kong hotel restaurants have consistently attracted a loyal customer base, their consumption represents a major component not only of food purchasing, storage and production, but also of wastage in the city. Forecasting daily business volume plays an important role in restaurant operations. Overproduction and inadequate purchasing both lead to costly food wastage (Hu, Chen, & McCain, 2004), affecting a hotel’s food costs and inevitably its bottom line. Hotel restaurants also need to maintain the quality of food and services to retain or increase customer satisfaction levels and ultimately boost profitability (Ramdeen, Stantos, & Chatfield, 2007). Ramdeen et al. (2007) suggested it is necessary to allocate more resources to prevention activities such as quality training and supplier evaluation. Problem Statement As discussed, the cost of food commodities has been increasing in recent years. Hotels have had to instigate innovative methods to Response of Hotels to Increasing Food Costs 397 maintain or lower their food costs. The purpose of this study was to explore how hotel food and beverage management in Hong Kong has responded to higher food costs and food shortages. Findings are based on the views from hotel food and beverage managers and executive chefs. The research questions included: How do hotels respond to high food costs and food shortages? Has the present high food cost made a difference to a hotel’s food and beverage management and operations? What impact has the current food shortage had on hotels in Hong Kong? What sustainable practices have been used to reduce the related problems of high food costs and food shortages? What innovative methods have been implemented, and can they be applied to other hotels, not just in Hong Kong? Finally, does the hospitality industry have an obligation to put measures in place for environmental protection? The following section reviews published articles in the literature of food service systems, and analyzes the inputs and outputs of food and beverage operations. It also reviews previous research on food control systems, an understanding of which is essential given the vital role it plays in food and beverage operations (Hernandez, 1998; Rodgers, 2005). The section concludes with a discussion of food wastage and sustainability. Literature Review The Food Service System Food is a vital element of the tourism and hotel industries (Rodgers, 2005). Selecting and developing a food service system that prevents decay, overproduction and wastage is a critical task in any hotel operation. Applying a traditional strategic management framework (Hill, Jones, & Galvin, 2004) to a hotel’s operations can help identify the best fit among the hotel’s internal resources, organizational capabilities, external environmental operations and threats. Johnson and Chambers (2000) distinguished among three food service benchmarking practices used to measure work processes, products and services, respectively. By differentiating among these aspects of hotel operations, the links between inputs and expected outputs can then be identified through benchmarking and evaluation (Rodgers, 2005). Bender (1994) concluded that there is certainly the capacity to improve the efficiency of food systems to balance global food supply and demand over the long term. Vaden (1980) proposed an earlier food service system model that included inputs, transformation and outputs. Food service system inputs are human and physical resources allied to labor and skills, food and other supplies, space and equipment, money, time, utilities and information. Managers transform these inputs into meals, customer satisfaction, employee satisfaction and financial accountability. The study reported in this paper considered food, a major input in the food service system, and explored the extent to which high food costs influence hotel food and management systems at the input and transformation stages. Although the primary output of the food service system is meals of appropriate quality and quantity, food service systems have been developed to overcome the problems of labor shortages, increasing operational costs, improvements in food safety and changing dietary habits of customers (Creed, 2001). Changing consumer lifestyles, combined with the increasing popularity of convenience meals, has seen the emergence of new technologies and innovative food service systems (Cardello, Schutz, & 398 Murray Mackenzie et al. Lesher, 2007; Creed, 2001; Rodgers, 2005). Satisfying customer needs has consistently been paramount in the food service industry. The hotels that are driven by profit-making objectives are even more interested in the desired outcomes of customer satisfaction, employee satisfaction and financial accountability. Hotel Food Control One of the main functions of food and beverage management is to establish control systems that enable a comparison of actual performance with plans and objectives, or managing and controlling costs via budgeting. Merricks and Jones (1996) suggested that there are four main areas of control that require constant reviews and supervision in the course of the budgeting process: . effective supplier relationships; . effective stock control; . effective waste and loss control; . effective control of products sold and money received. When confronting the challenge of high food costs, managers have to be even more conscious of the actions taken or activities pursued in these four main areas of control. When exercising cost control, hotel managers strive to avoid sacrificing food quality. Several researchers have sought to measure the cost of quality. For instance, Johnson and Chambers (2000) identified benchmarking as a continuous, systematic management process that enables food and beverage managers to ascertain current practice. In a recently conducted study, Ramdeen et al. (2007) measured cost of quality (COQ) concepts in a hotel restaurant environment over a 2-year period using the prevention, appraisal and failure (PAF) model. Their findings indicated that COQ accounts for 12–16% of sales. Food and beverage quality managers should therefore invest more in prevention activities such as quality audits, menu design reviews, quality training and supplier evaluation. Investment in such areas can generate higher quality food and services, which will eventually lead to an increase in customer satisfaction. Furthermore, these types of prevention activity can reduce failure and appraisal costs. The ultimate outcomes will be to improve restaurant profitability and develop competitive advantage through reducing wastage. Food Wastage Hotel kitchens can suffer from unnecessary levels of food wastage for a number of reasons. One is poor stock rotation, which can lead to the deterioration of perishable items and other food not being used by the due date. Stock stored in inappropriate conditions can also become unusable. This is another potential reason for food wastage (Merricks & Jones, 1996). Overproduction, poor preparation and inadequate portion control techniques can also lead to food wastage (Drysdale & Galipeau, 2009). Hong Kong hotels waste large amounts of food. According to Environmental Protection Department figures, more than 3,000 tons of food waste was dumped in landfills every day in 2006 (Wong, 2007). Food wastage in Hong Kong’s restaurants and hotels has more than doubled in recent years. In the United States, Kantor, Lipton, Manchester, and Oliviera (1997) estimated food losses using data from the mid-1970s or earlier. They found that the largest source of losses in the United States is at the last step in the Response of Hotels to Increasing Food Costs 399 food system: final consumption. Although updated data on losses in food service institutions and households were not available, they estimated that one-quarter of the edible food available for human consumption in the United States is lost in these settings. In a more recent study conducted in Sweden, Engstrom and Carlsson-Kanyama (2004) investigated food loss by conducting a study of food service institutes. Again, food consumption and plate waste were highlighted as “the single largest source of loss” (Engstrom and Carlsson-Kanyama, 2004, p. 211). As shown, the cost of food had been steadily increasing during 2008–2009, which in turn placed demands on the Hong Kong hotels in meeting and sustaining budgeted food cost. Further, this has meant a re-evaluation; apart from reducing food waste, Hong Kong hotels have required future investment in maintaining a more economically sustainable hotel industry to meet the needs of growing customer demands. This would entail an environmentally sustainable industry with improved waste removal and recycling, reduction in water and energy consumption, an increase in the purchase of local food products and improved menu engineering. Bender (1994) conducted research by looking at the correlation between increasing food demands from agriculture and the relationship that this has as an external determinant between personal income and food demand. He predicted that the demand for food commodities would increase as a result of the inevitable population increase, coinciding with a global increase of affluent middle class and the consumption of animal products owing to higher income. As the middle class increases demand for animal products, the indirect or derived demand for starchy staples foods in the form of animal feed also increases, thereby increasing the cost and reducing the supply of staple foods such as, corn, soya beans and wheat, due to demand, as stated previously. Through using “end use analysis”, he also found a correlation between personal income and the nutritional requirements of the globalpopulation, necessitating a reduction in food demand. To achieve this reduction in food demand and also increase sustainability, Bender (1994) identified four sources of potential change in global food requirements. These sources were: (1) changes in calorie requirements resulting from improving nutritional food values, which coincided with changes in physical activities; (2) changes in storage, handling, transportation and consumption of foods; (3) change in the structure of diets, particularly the links between starchy foods and the consumption of animal products; and (4) increasing alternative diets leading to a change in knowledge and concerns and changes in dietary structures. In another study, Chan (2005) highlighted the environmental costs generated by hotels and concluded that hoteliers should place a greater focus on lowering their environmental impact. This could be done through environmental improvements that comply with hotel standards on social responsibility and environmental sustainability policies. Environmental Practices A study conducted by Tzschentke, Kirk, and Lynch (2004) explored the reasons why small serviced accommodation establishments in Scotland adopted environmental practices and sought environmental accreditation. Ethical and economic motives were the main reasons behind their decisions to implement environmental procedures. The authors concluded that adequate support, guidance and 400 Murray Mackenzie et al. infrastructure were the necessary factors in the adoption of such procedures, along with the implementation of long-term policies. In the context of Hong Kong, Chan (2005) investigated the environmental costs generated by hotels and concluded that the scale of such costs has been steadily increasing (Chan, 2005; Chan, Wong, & Lo, 2009). The authors suggested that further studies be carried out at a micro level within the hotel sector to investigate where environmental improvements can be made. Information on the environmental impact of the industry then needs to be recorded and published to make it available to the public. Apart from statistical data and reports emphasizing financial and marketing information, the environmental impact of hotels is not recorded in their annual reports (Chan, 2005). Nicholls and Nystuen (1993) highlighted numerous programs aimed at promoting waste reduction through reusing and recycling in which the hospitality industry is involved. They even went as far as to predict that “the metabolic restaurant” would appear one day. This type of restaurant would incorporate several features, including presorted recycling, indoor air filter systems, solar and wind power generation and waste recycling. Many of these systems have already been incorporated into new and existing hotels. For example, EMS have become more recognized and established in the global hotel community (Chan, 2009). The use of this type of system has allowed hotel management to identify features of their work that have a direct impact on the environment. This has been advantageous in that hotels with environmental policies have seen a “major benefit in financial management performance” (Chan, 2009, p. 543). Hotels with ISO 14001 EMS certification (of which there are only four in Hong Kong) have experienced reductions in water consumption and waste production, improved energy conservation practices, lower overall costs through the implementation of “best practice”, and improvements in their public image and reputation (Tsai, Chan, Chou, Schultz, Heike, & Yeung, 2003) There are good reasons for hotel management to pay attention to sustainable practices. The consequences these practices can bring, such as increased profitability and the potential for improved market share, give hotel management good cause to take action on environmental issues (Deng & Burnett, 2002). The literature review undertaken for this study indicates that there is a limited body of evidence on the specific issue of the impact of high food costs on hotel food and beverage operations and management. There are, however, many examples of sustainability and environmental studies undertaken that can be applied to hotels in Hong Kong (Azilah, 2004, 2007; Chan, 2009; Erdogan & Baris, 2007; Kirk, 1995; Tsai et al., 2003). As the findings from this study will show, responses from the Hong Kong hotel industry to the rapid increase of food costs during this time have taken into account several of these initiatives. As there has been no statistical or theoretical evidence to illustrate the relationship between high food cost and food shortages in Hong Kong, this study was the first attempt to explore this critical issue of high food costs and the global food shortages. As part of the investigation, the authors also examined creative strategies for reducing food loss. Data gathered from participating institutes showed that involving staff in discussions and best practice resulted in less food wastage. The findings of these studies all confirmed that food wastage has the potential to increase food costs and create additional waste removal costs. Response of Hotels to Increasing Food Costs 401 Methodology A qualitative research approach will be used to investigate the changes in operational activities, innovative ideas that were implemented and sustainable practices initiated in response to the increase of food commodities. As such, this provides a starting point for possible adjustments in food and beverage practice that assist in maintaining budgeted food costs. A qualitative research approach was conducted with food and beverage managers from high-tier, mid-tier and low-tier hotels in Hong Kong. Two executive chefs were interviewed owing to the unavailability of a food and beverage manager/director. This in no way altered the findings from this research. It would be impracticabletointerviewallfoodandbeverage managers from all hotels in Hong Kong, taking into account available budget and time constraints. Furthermore, Henderson (1991) reminded qualitative researchers not to be too concerned about adequate numbers or random selection. Rather, they should present a working picture of the content from which the observations are drawn. In this study, it is the intention of the researchers to identify the high food costs issues, views and attitudes of the hotel food and beverage managers. Table 1 shows the profile of hotel food and beverage managers and executive chefs interviewed in the three different tiers of hotels. Hence, high-tier, mid-tier and low-tier hotels were chosen as a sampling frame for this study. These were selected through the Hong Kong Hotels Association, as this trade association represents 111 member hotels in Hong Kong and incorporates a hotel grading system throughout Hong Kong. From the association’s mission, it is recognized as a formal channel for the hotel industry in Hong Kong and is represented on a diverse range of organizations associated with travel and tourism. A cross-sectional exploratory research design was adopted and in-depth personal interviews were conducted with the hotel food and beverage managers to investigate the problems associated with high food costs and food shortages. A letterofintroduction andaninvitationweresent via the human resources manager to the director of food and beverage or food and beverage manager of each hotel in the initial sample to requestthat theyparticipatein an in-depth interview in mid-October 2008. The invitations were posted to 104 hotels in three different hotel categories, representing the population of all members of the Hong Kong Hotels Association. Following a 2-week response period, three hotels indicated their intention to participate and four declined the request. A second follow-up letter was then sent via email, yielding apositiveresponsefromfivemorehotels.Atotal of eight hotels (two high-tier, three mid-tier and three low-tier) were finally contacted, and semistructured interviews were conducted with the food and beverage managers and executive chefs, each of which lasted for 30–45 minutes. Food and beverage managers provided an overview of each hotel’s past food and beverage practices, current policies and future direction. Open-ended questions were used to initiate discussion during the interviews and minimize interview bias. This helped avoid signaling to the respondents how they should react. The questions allowed the respondents to answer in an unconstrained way and to use as many words as they wished (Paraskevas & Altinay 2008). The questions were developed to explore how hotel food and beverage management in Hong Kong had responded to high food costs and food shortages. As shown in Table 2, an interview discussion guide was used to guide each interview. In-depth face-to-face interviews can also identify areas of difference from those acknowledged in previous research undertaken 402 Murray Mackenzie et al. and in the literature review. This method of gathering data was continued until the data collected revealed no new relevant facts (Saunders, Lewis, & Thornhill, 2003). The topics covered were the impact of high food costs on food and beverage management and sustainable practices used to reduce the related problems of high food costs and food shortages. Within this initial phase of the study, by using a qualitative approach a comprehensive understanding of food and beverages policies in high-tier, mid-tier and low-tier hotels in Hong Kong was achieved, along with exploratory theory building, rather than theory testing (Ticehurst & Veal, 2000).This technique allowed the interviewers to record what the hotels in the sample had actually put into practice. The interviews were conducted in English and were audio-recorded with the permission of the interviewees. The research assistant also took field notes during the interviews. To ensure the accuracy and trustworthiness of the data collected, the interview findings were triangulated by comparison with information collected from secondary sources such as trade magazines and Table 1 Profile of Interviewees from High-tier, Mid-tier and Low-tier Hotels Profile of Interviewees Hotels Hotel Tier Positions of the Interviewees Hotel A High-tier Director of Food and Beverage Hotel B High-tier Assistant Food and Beverage Manager Hotel C Mid-tier Director of Food and Beverage Hotel D Mid-tier Executive Chef Hotel E Mid-tier Director of Food and Beverage Operations Hotel F Low-tier Director of Food and Beverage Hotel G Low-tier Executive Chef Hotel H Low-tier Director of Operations – Food and Beverage Table 2 Interview Guide Q1 How do hotels respond to high food costs and food shortages? Q2 Does the present high food cost make a difference to your hotel’s food and beverage management and operations? Q3 What impact does the current food shortage have on hotels? Q4 Are there any sustainable practices in your hotel for the problems generated from the global environments leading to serious food shortages? Q5 Do you think that the hospitality industry has an obligation to put measures in place to protect the environment? Response of Hotels to Increasing Food Costs 403 newspaperarticles.Astheinformationdiscussed in the interviews was of a confidential nature, the hotels and interviewees concerned are not identified in this paper. Findings and Discussion Did High Food Costs Make a Difference to Hotels’ Food and Beverage Management? Table 3 shows a summary of responses of the managers interviewed from hotels in different tiers and the food and beverage management approaches taken. Food Suppliers and Food Quality Given that one of the major causes of high food prices is global food shortages (Webster, 2008), hotel managers were asked about their awareness of global food shortages. All hotel managers interviewed stated that they could purchase any products they needed and were unaware of any influence from global food shortages. When asked about their responses to high food costs and the strategies adopted in choosing and using food suppliers, comments varied among managers from the three tiers of hotels. The response from a high-tier hotel food and beverage manager was that “Their food is more expensive, and we do have more than one supplier for each item”. A mid-tier hotel food and beverage manager stated that “Food quality and yield varies depends [sic] on different suppliers, and the purchasing department closely monitors the food cost and pricing”. A lowtier food and beverage manager said that “We change the tender often. This depends on which food commodity”. It was significant, however, that these findings show hotel man agement from Hong Kong, which is one of the most popular tourism destinations in Asia, were not aware of any problems concerning increasing food cost due to food shortages. Hence, there is a need for this research and an urgent need for government and professional bodies to raise awareness of this important issue. The increasing cost of commodities had a greater impact on mid- and low-tier hotels. Suppliers and products for both mid- and low-tier hotels were frequently changed subject to commodity price increases. Substitutes or less expensive alternative commodities were also widely used. Acknowledgement of using less expensive products for the same menu item was shown by “We try to stay with the same quality of the products but we may use different kinds of products”. In some cases, this practice had the drawback of reducing quality and affecting the overall expectations of customers (Sulek & Hensley, 2004). All hotels that participated in this study attempted to lock their suppliers into setting prices for certain commodities over a specified time period to help with budget forecasting and menu pricing. This period ranged from 1 to 6 months. High-tier hotels retained the same suppliers over a period varying from 1 year to several years. This tended to preserve the goodwill built up over the time the same supplier had served the hotel. The hotel looked upon this type of goodwill as an essential link in what was a volatile and unpredictable commodities market and put high-tier hotels in an excellent position to take immediate advantage of any pricing strategies they could adopt for their own benefit, such as special offers on certain commodities. Maintainingonesupplieralsohadthedistinctadvantage of less paperwork, reduced time spent on receiving goods, and left fewer opportunities for pilfering (Merricks & Jones, 1996). One 404 Murray Mackenzie et al. Table3SummaryofResponsesoftheHigh-tier,Mid-tierandLow-tierHotelsontheirApproachestoDealingwithHigh FoodCosts Question:HowdoHighFoodCostsMakeaDifferencetoHotelFoodandBeverageOperationsandManagement? High-tierHotelsMid-tierHotelsLow-tierHotels †Usethesamesuppliersovera numberofyears †Foodsuppliersarechangedweekly, fortnightlyormonthly.Atendergoesto thelowestquotation †Invitemoresupplierstotendera cheaperprice †Maintainhighfoodproduct quality †Lookforalternatives,uselessexpensive fooditems †UsefoodimportedfromMainland China †Costcontrolandattemptto transfercoststocustomersby increasingpricesonthea `lacarte menu †Costcontrolandattempttotransfercosts tocustomersbyincreasingpricesonthea ` lacartemenu †Costcontrolandattempttotransfer coststocustomersbyincreasingprices onthea `lacartemenu †Bulkpurchasesoffooditems†Bulkpurchasesoffooditems†Bulkpurchasesoffooditems †Menuengineering,usinglow-and high-costfooditemstogether †Menuengineering,usinglow-andhighcostfooditemstogether †Innovativefoodandbeverage practicesandmenus †Trainingofstaffinfoodcost controlandawareness †Noemphasisonstafftraining.Staffwere madeawareoffoodcostandcontrol issuesinfoodandbeverageareas †Trainingprovidedtooperatingstaffin kitchenandfoodserviceareasonfood costandcontrol †Marketstudiesandresearchon competitors’menuandtheir pricing †Benchmarkingwithcompetitors’menu pricing †Benchmarkingwithcompetitors’ menupricing Response of Hotels to Increasing Food Costs 405 high-tier hotel pointed out that it specifically arranged for blind tastings of a supplier’s food to ensure quality products were selected at competitive prices. In sum, high-tier hotels firmly believed that the major concern in seeking to satisfy customer needs was to maintain high-quality food products and services. Cost Control The effectiveness of cost control measures taken within a hotel operation depends on the implementation of procedures that closely track daily activities in the hotel. Walker (2006) concluded that the objective of cost controls is to minimize food costs without interfering with hotel operations and profitability. In other words, cost control procedures provide guidelines that allow food and beverage managers to trace the cost of each operation to a specific point in time. As customers are becoming increasingly cautious in their spending, hotel managers have to remain vigilant in controlling costs and implementing cost control measures. The hotel food and beverage managers interviewed in this study did so by scheduling daily management and team meetings to check on procedures and respond to unexpected challenges that may have arisen. The sudden rise in food commodity prices and shortages of basic food commodities in early 2008 appear to have been the major challenges faced recently by hotel food and beverage departments. This was acknowledged by comments such as “In this hotel food cost increased definitely especially in the first half of the year”. The approach the hotels took to respond to this challenge was to use efficient and effective cost control methods to sustain business revenue. At the time this study was conducted, the hotel managers stated that buffet menu prices had reached the maximum, and customers were prepared to pay, but any further increase could mean a loss of customers. However, high-tier hotels were able to increase the prices they charged their customers for a ` la carte and set menus, which attracted patrons willing to pay more for service and menu items. High- to mid-tier hotels had an acceptable rate of 2% on either side of their budgeted food cost forecasts. If their food costs dropped below that margin, questions were asked about food quality and suppliers. If food costs went above that margin, either a substitute product was used or innovative methods were introduced to reduce or maintain food costs. Bulk Purchases Several participating hotels were able to negotiate bulk purchase prices with their suppliers and in some cases directly with the manufacturers. This was especially so with chain hotels that had three or more properties. These practices helped maintain a degree of control over foodcostswhile maintaining the qualityof products supplied to all hotels in the consortium. At the same time, low-tier hotels in the group benefited from higher quality goods at a reduced cost. The outcome was a higher quality ingredient introduced on to the menu and hence added value for the customer. Thisisaclassicexampleof“Porter’sindustry analysis model” concerning suppliers and buyers (Olsen, Tse, & West, 2004). One way of managing the relationship between suppliers and buyers is to build important alliances so that the interdependency is mutually beneficial. 406 Murray Mackenzie et al. Menu Engineering When to purchase, what to purchase, and where to store food commodities are all questions that center on the menu and the product mix. It is also vital that commodity production does not exceed demand. To achieve a balance, menu engineering and product mix help to determine the number of goods to be purchased (Drysdale & Galipeau, 2009). Good menu engineering will maximize a hotel’s profitability. This can be achieved by constructing a menu that subconsciously influences a customer’s choice of food items (Drysdale & Galipeau, 2009). The development of the product mix, pricing and menu design are all parts of a formula that was first introduced by Kasavana and Smith (1982) as a management information tool. It is also vital that commodity production does not exceed demand and that a balanced product mix is achieved on the menu (Drysdale & Galipeau, 2009). The results of this study indicated that all participating hotels were aware of the significance of implementing some form of menu engineering. All the hotels were able to balance high-cost food items with low-cost commodities by incorporating them into the finished dish. For example, fish, shellfish, or prime beef menu items were combined with low-cost foods such as roasted local tomatoes, mixed bean salads, or local pickled vegetables and noodles. This practice was common among all respondents that helped reduce overall food costs. Low-tier hotels instigated innovative practices designed to reduce food costs while maintaining service and quality for the customer. This type of strategy was especially prevalent in buffet menus where fish and shellfish are common, such as where bowls of popular shellfish from the buffet are presented to customers at their table rather than having customers collect these items from the buffet table. This had the effect of reducing the amount of time the customer spent going to and from the buffet table and also reduced the amount of unconsumed shellfish, thereby cutting wastage. All the participating hotels had successfully promoted both luncheon and dinner buffets. Buffets were seen as a necessary food and beverage outlet and offer several advantages to hotel operations (Drysdale & Galipeau, 2009). These advantages include saving labor, the use of local seasonal foods, and the implementation of portion control methods for menu items such as desserts, all of which were considered to have made a valuable contribution to reducing food costs. Portion control methods allowed hotels to reduce food costs by providing customers with a taste of the different desserts offered, but in smaller portions. Staff Training As part of the service-oriented industry, hotels are committed to training staff. Food and beverage training aimed at improving awareness of the importance of food costs, food quality monitoring systems and in some cases innovative portion control methods, as mentioned previously, were some of the aspects on which training was provided. The effective development of performance standards, checklists and operating manuals incorporating current legislative requirements relating to health and safety were all practices that were implemented and maintained by the hotels in this study. In addition to one-on-one and group staff training, daily management meetings, team briefings and informal discussions were employed. Ensuring that information on the Response of Hotels to Increasing Food Costs 407 rationale behind certain cost-saving decisions is communicated to employees was considered important (Lo, Cheung, & Law, 2006). This is likely to ensure that employees remain loyal to their hotel when cost-saving measures are employed (Lo et al., 2006). Maintaining staff morale is always critical during challenging times, and informing employees of the rationale behind decisions on new measures is vital in maintaining a contented workforce (Walker, 2006). In any organization, poor communication results in low productivity and morale among employees (Quinn, Faerman, Thompson, & McGrath, 2003). The relationship between management and employees is vital for the smooth running of any hotel operation (Gill, 2008). Apart from helping to support the short- and long-term goals of all the hotels that participated in this study, maintaining existing staff and staff morale was seen as essential for securing future staff involvement. Benchmarking Knowing what competitors are doing is essential in the hotel industry. Hong Kong hoteliers exchange information regularly through different events held by the Hong Kong Hotels Association and the Hong Kong Tourism Board. This continuing process of communication among hotel managers at all levels seeks to challenge their existing food and beverage practices and ultimately to improve their quality of service. Hotels of all tiers in this study undertook some forms of market research on their direct competitors. This ranged from staff visits to competitors’ establishments and online checking of pricing and the range of items offered on menus to informal meetings with staff and management through local/international food and beverage conferences and events or during public and private events. In addition to maintaining food quality, each hotel that participated in this study looked at sustainable practices that could be implemented in different ways. Our findings indicated that hotels in different tiers varied in terms of their proactiveness in implementing sustainable practices. The following section provides an overview of the interview results. Are there any Sustainable Practices used in Food and Beverage Operations and Management? Table 4 shows the three tiers of hotels that participated in the interviews and their responses when asked about sustainable practices in their food and beverage operations and management. All hotel food and beverage managers closely monitored their food wastage and adopted sustainable practices. This was considered to be crucial to maintaining the food quality and delivering a high perceived value to customers. A close relationship was therefore maintained between the menu and production (Drysdale & Galipeau, 2009) whereby the quantity and quality of food commodities were closely monitored. Communicating with and involving staff at all levels in sustainable practices helped reduce food costs and maintain control, especially in food and beverage outlets. Reduce Food Wastage All hotels explored innovative ways of reducing food wastage, cutting food costs and maintaining food freshness. In this context, buffets were closely monitored and one 408 Murray Mackenzie et al. Table4SummaryofResponsesoftheHigh-tier,Mid-tierandLow-tierHotelsontheirApproachestoSustainablePracticesused inFoodandBeverageOperationsandManagement Question:ArethereanySustainablePracticesusedinFoodandBeverageOperationsandManagement? High-tierHotelsMid-tierHotelsLow-tierHotels †Lookforwaystoreducefoodwastage†Lookforwaystoreducefoodwastage†Lookforwaystoreducefoodwastage †Foodqualitymonitoringsystemwith HACCPcertification †FoodqualitymonitoringsystemnonHACCP-certified †FoodqualitymonitoringsystemnonHACCP-certified †DevelopedCSRcommittee†Nocommitteeformedforsustainable practicepurposes †Nocommitteeformedforsustainable practicepurposes †Stafftrainingandbriefings†Stafftrainingandbriefings†Stafftrainingandbriefings †Involvekitchenstaffincostcontrol†Involvekitchenstaffincostcontrol†Involvekitchenstaffincostcontrol †Emphasizefreshnessoffoodand presentation †Maintainfreshnessoffoodand presentation †Maintainfreshnessoffoodand presentation Response of Hotels to Increasing Food Costs 409 waste reduction method adopted was to replenish frequently buffet items in small quantities. Some hotels tended to reduce the extent to which they replenished food towards the end of the buffet. One low-tier hotel changed from a system in which customers served themselves ice cream to one in which ice cream was served in cups. Another method this hotel employed was to place bottled carbonated beverages in a glassfronted fridge and allow customers to make their choice. Both of these methods reduced a hotel’s food and beverage wastage. All hotel managers indicated that to avoid the deterioration of food and to reduce wastage, staff were required to follow hotel food safety procedures. Considerable efforts were made to check and maintain temperature controls for hot and cold foods in all outlets on an ongoing basis in all of the hotels. Monitoring Systems The principal objective of implementing monitoring systems is to eliminate food wastage, which increases food costs and lowers profit. All hotels in the study put into practice some form of monitoring system, such as physical checking and correct storage of commodities on delivery, standardized recipes, recording temperatures of storage facilities such as fridges and freezers, temperature checks of cooked and chilled items from buffet displays and a ` la carte menus, or portion control measures. High-tier hotels in this study were Hazard Analysis Critical Control Point (HACCP)-certified, meaning that the hotels had implemented and been successfully audited on the seven HACCP principles, which are: . conduct a hazard analysis; . identify critical control points; . establish critical limits for each critical control point; . establish critical control point monitoring requirements; . establish corrective actions; . establish record-keeping procedures; . establish procedures for ensuring the HACCP system is working as intended. HACCP, when used in the food industry, identifies possible food safety hazards. This involves the systematic assessment of each process in food production and the identification of each point that is critical to food safety (Sprenger, 1995) so that key actions can be undertaken to reduce or eliminate potential risk from the identified hazard. However, this study indicated that mid- and low-tier hotels were non-HACCP-compliant but had some form of monitoring system in place, meaning that the hotels were not HACCP-certified but did carry out monitoring and checking procedures on food commodities, to a lesser degree than the high-tier hotels. These monitoring procedures included temperature checks of refrigerators and freezers, physical checking of delivered goods and correct storage of commodities. For any monitoring system to be instigated, communication with and training of staff is essential. High-tier hotels formed a Corporate Social Responsibility (CSR) committee to assist in this process. This committee met on a regular basis to monitor, discuss and implement monitoring procedures when necessary. In terms of their commitment to sustainability, hotels appointed dedicated environmental staff to check food quality and implement HACCP when necessary. In a mid-tier hotel, one member of staff was employed as an environmental officer with the role of helping to train kitchen staff on the receipt and storage of food commodities, including the 410 Murray Mackenzie et al. implementation of food safety and personal hygiene procedural requirements. This role also facilitated the identification of hazards, an overall outcome of becoming HACCPcompliant. Hotels certified as HACCP-compliant also required all their suppliers to be HACCPcertified. However, only two of the hotels that participated in this study were HACCPcertified. Food Freshness The most important aspect of any buffet or other food outlet is the freshness of the food on offer. Wilted lettuce or dried-out sauces, baked items or seafood that detract from the salability of any meal are some examples of unacceptable food items (Drysdale & Galipeau, 2009). High-tier hotel managers commented that food presentation and freshness were areas that were closely monitored. Mid- and low-tier hotels also instigated some checking procedures (visual and physical checks). The purchase of quality ingredients went through a substantial process of maintaining the quality of food items presented to customers. One interesting aspect of this study was the range of countries from which hotels purchased their food. These varied from European countries to America, Australasia, and Asian countries. The quality, freshness and origin of food commodities were the factors that overrode all others (Harmer, 2006). Each hotel in this study stated that it purchased the best quality ingredients for its customers. Hightier hotels were inevitably in a better position to pay higher prices and therefore acquire higher quality products for their customers than their competitors. Environmental Obligations Allhotelmanagerswhoparticipatedinthisstudy agreed that they had an obligation to put measures in place to protect the environment. “Yes, absolutely. I am very strongly believed [sic] in that” and “if one country suffers, other countries will also suffer immediately” were some typical answers. Surprisingly, expatriate operational managers held a different view on the environmental impact of their businesses, resulting in a different approach of management style/techniquesbeingexecutedintheirhotels.In this study, non-Asian managers used effective communication techniques and encouraged the formation of CSR committees where possible. This was evident in a number of the high- and mid-tierhotels.Inthesehotels,staffwereencouraged to use less water and gas, to recycle cardboard and aluminum cans, to use less plastic wrappingandtoreducefoodwastagebyutilizing food commodities as fully as possible. For example, one mid-tier hotel was in the fortunate position of having its own butchery and Chinese barbeque facilities. This enabled it to purchase meat at a lower price and to utilize whole animal carcasses or barbeque its own Chinesestyleducks,geeseandchickens,therebyreducing wastage. High-tier hotels also purchased organic foods through their suppliers and indicated that they hesitate to purchase local food products owing to uncertainty over their quality. For example, there had been recent reports that some eggs and milk from Mainland China were contaminated with melamine (But, 2008; Loh, 2008). These hotels thus preferred to purchase their food from outside Hong Kong and Mainland China. An interesting point was made by managers of mid- and low-tier hotels, in which local Hong Kong restaurant patrons were more price-sensitive and less concerned about the origin of their food. This was probably due Response of Hotels to Increasing Food Costs 411 to the growing confidence of local people in consuming food from Mainland China and the confidence they have in branded hotels that provide quality food items. The situation in high-tier hotels was quite the reverse. Their customers were more alert to the origin of their food, possibly owing to the majority of high-tier hotel restaurant patrons being internationalbusiness customersand travelers. Corporate Social Responsibility Committee Corporate social responsibility, although very much in vogue, as a concept is vague and can mean different things to different people (Crowther & Rayman-Bacchus, 2004). In its broadest sense, CSR implies that a company justifies its existence in terms of service to the community rather than merely profit taking (Bohdanowicz & Zientara, 2008). Successful applications of a socially responsible doctrine have relied on identifying and defining what corporate socially responsible policies are in existence within a business, as well as new corporate socially responsible strategies that best fit the operation. Whether hotel managers in this study felt obliged to put measures in place to protect the environment also varied depending upon their tiers. High-tier hotel managers all agreed that hotels had an environmental obligation and had thus formed a CSR committee. Mid-tier hotel managers believed that they had the same obligation, but had not taken any steps to meet it because of the financial commitment required.Forexample,onehotelhadpreviously hired a recycling company to recycle its kitchen waste. Unfortunately, the overall cost of this service was too high and the hotel abandoned this commitment to social responsibility. Lowtier hotels believed that they had the same obligation, but that it should be met via sourcing arrangementsratherthanbydevelopinginternal measures. For example, food quality and origin were checked before purchase. Continuing with Best Practice Hotel and restaurant management have consistently been aware of the issues surrounding food costs and food wastage. The level of awareness of such issues has increased in recent years owing to the rise in food commodity prices, although food waste from plates has long been considered an area of concern (Youngs et al., 1983). As noted earlier, research from as far back as the 1970s and early 1980s showed that 15.5% of edible food was wasted (Kirk & Osner, 1981). Hotels should, therefore, monitor and continue to implement best practice to help reduce food costs. Food wastage has the potential to increase food costs, to result in additional waste removal costs, and may also be in conflict with the social responsibility standards and environmental sustainability policies of many hotels. Some practices implemented by hotels during the Severe Acute Respiratory Syndrome (SARS) crisis in early 2003 have remained in place. Many such procedures have also remained effective as food commodity prices have increased rapidly in recent years. These include portion control techniques used for buffets, food quality monitoring systems, the employment of HACCP monitoring staff, visual checks and site visits for suppliers and goods, taste testing of food ingredients, ongoing staff training, and communication with staff at all levels through regular management and team meetings. Other sustainable practices that have been adopted include recycling of waste oil and cardboard. One chef from a participating hotel carried out food 412 Murray Mackenzie et al. and water bacterial counts every 2 months to monitor and maintain kitchen hygiene levels. Although the rapid escalation in food prices has affected many hotels in different ways, the maintenance of best practice has helped secure the future of the hotel industry in Hong Kong. The hotel managers who participated in this study found budgeting very difficult as their forecasts were completed 1 year in advance. However, they were able to come up with innovative ways to reduce and control food costs that had a positive effect on their bottom line. Communication among hotels through the Hong Kong Hotels Association continued to play an important role in allowing members to meet with each other and exchange ideas during difficult times. Marketing Implications and Research Contributions This study makes a unique and meaningful contribution to the literature as the first attempt to examine the impact of escalating food costs in the Hong Kong hotel industry and the measures taken within the industry to manage food wastage, a factor that is critical to the bottom line of any hotel operation. This paper also shares industry knowledge and “best practice” aimed at dealing with these issues with the Hong Kong hotel and restaurant industry. It is important that other hotels should endeavor to consider their environmental obligation to reduce food wastage and maintain sustainable practices that have a knock-on effect throughout the hotel sector. Innovation and recognition of corporate social responsibility among hotels are keys in surviving and maintaining competitive advantage in the highly competitive hospitality arena. As we move into the next decade the emphasis that has been placed on social issues needs to be addressed and changed (Pomering & Dolnicar, 2009). Carroll (1979) pointed to the fact that social issues vary greatly depending on the industry and moment in time in which they exist. Each business has to develop its own interpretation of corporate social responsibility that helps to clarify its motivation and underlying commitment, which will enable the identification of key stakeholders and priorities (Maon, Lindgreen, & Swaen, 2008). Further studies on corporate social responsibility in the hotel sector should be pursued and investigated to identify areas of competitive advantage and marketing opportunities that can be incorporated in the future business operations of hotels. Conclusions The study reported in this paper investigated how Hong Kong hotel management responded to the global food shortages that resulted in a consequential increase in basic food commodity prices in recent years. As stated previously, the objective of this study was to investigate the impact that increasing food costs have had on the overall food cost from a hotel management perspective only. The measures employed by Hong Kong hotels in different tiers to control or reduce forecast food costs were subsequently analyzed. Where possible, interviews were conducted with food and beverage managers from hotels in three tiers, as indicated by the Hong Kong Hotels Association. This gave a good cross-section of hotels from which to gauge the level of awareness of the rapid increase in food commodity prices resulting from recent global food shortages. The findings of this study suggest that midto low-tier hotels found the increase in food Response of Hotels to Increasing Food Costs 413 prices challenging and caused them to formulate and utilize innovative methods designed to stabilize food costs and reduce them where possible. In addition to increasing prices for customers and frequently changing suppliers to obtain the best prices, effective communication with employees at all levels was considered to be imperative in maintaining good staff morale and customer loyalty. Furthermore, environmental issues were high on the list of concerns among all participating hotels, with high-tier hotels implementing measures such as CSR committees and becoming HACCP-compliant. However, although mid- to low-tier hotels expressed their support for sustainability, they had taken little in the way of concrete steps to show their commitment to environmental issues because of their cost implications, other than by recycling waste oil and certain materials. Quality products were also seen as crucial in maintaining customer and supplier loyalty. Low- and mid-tier hotels seemed to be more susceptible to increasing food commodity prices. For this reason, the development of innovative methods to overcome price increases and frequent changes of supplier were practices commonly adopted. By contrast, high-tier hotels remained loyal to their existing suppliers and generally passed on most of their increased commodity costs to their customers. Where possible, all the hotels in this study hotel absorbed any slight increase in food commodity costs. This study coincided with the onset of the global financial crisis, which had started to have an impact on the hotel industry in Hong Kong. Foreign exchange rates were also a factor in the purchase of commodities from outside Hong Kong. These rates fluctuate and thus favor hotels in some cases when imported commodities are purchased. Nevertheless, hotels found it very difficult to get through this period of increased food costs as their budgets and forecasts were completed 1 year in advance. Finally, a limitation of the study lies in the results from the few interviews with hotel food and beverage managers. The views of the senior management, financial controllers and purchasing managers would provide more valuable insight into the response of hotels to increasing food costs. Also, future studies concerning food shortages and rising food cost should endeavor to seek the views of customers and hotel owners to ascertain a broader view. The major contribution of this research, therefore, is to confirm that the rising food shortages have had a significant impact on hotel food costs, which warrants the existence of a significant problem or potential risk to the hospitality industry. Acknowledgement The authors would like to thank the two anonymous reviewers for their constructive comments on improving an early version of this paper. Ms Rosanna Leung’s assistance on data collection is also acknowledged. This project was supported by a research grant funded by the Hong Kong Polytechnic University (Contract Number: G-U534). References Asian Development Bank. (2008). Food prices and inflation in developing Asia: Is poverty reduction coming to an end? Special Report. Economics and Research Department, Asian Development Bank, 1–37. Azilah, K. (2004). BESR in the hotel sector: A look at tourists’ propensity towards environmentally and socially friendly hotel attributes in Pulau Pinang, Malaysia. International Journal of Hospitality & Tourism Administration, 5(2), 61–84. 414 Murray Mackenzie et al. Azilah, K. (2007). Corporate environmentalism in the hotel sector: Evidence of drivers and barriers in Penang, Malaysia.JournalofSustainableTourism,15(6),680–699. Bender, W. (1994). An end use analysis of global food requirements. Food Policy, 19(4), 381–395. Bohdanowicz, P., & Zientara, P. (2008). Corporate social responsibility in hospitality: Issues and implications. A casestudyofScandic.ScandinavianJournalofHospitality & Tourism, 8(4), 271–293. Buckman, R. (2004). Gravy train: Investors in Hong Kong eat up annual meetings; Elderly shareholders will go where the food is best; Rushing the buffet table. Wall Street Journal, p. A.1. Retrieved from http://proquest. umi.com/pqdweb?did=653470901&Fmt=7&clientId= 43421&RQT=309&VName=PQD But, J. (2008, October26). Melaminefound in eggs sold in HK for first time. South China Morning Post. Retrieved July 20, 2010, from http://prd5-libwisesearch.wisers. net/ws5/tool.do?wp_dispatch=confirm-view&doc-ids= news:16a1^200810260270003(s:76511758)&menuid=&on-what=selected&from-list&display-style=all& tooldisplay=true Cardello, A. V., Schutz, H. G., & Lesher, L. L. (2007). Consumer perceptions of foods processed by innovative and emerging technologies: A conjoint analytic study. Innovative Food Science & Emerging Technologies, 8(1), 73–83. Carroll, A. B. (1979). A three-dimensional conceptual model of corporate performance. Academy of Management Review, 4(4), 497–505. Chan, W. (2005). Partial analysis of the environmental costs generated by hotels in Hong Kong. International Journal of Hospitality Management, 24(4), 517–531. Chan, W. (2009). Environmental measures for hotels’ environmental management systems ISO 14001. International Journal of Contemporary Hospitality Management, 21(5), 542–560. Chan, W., Wong, K., & Lo, J. (2009). Hong Kong hotels’ sewage: Environmental cost and savings technique. Journal of Hospitality & Tourism Research, 33(3), 329–346. Creed, P. G. (2001). The potential of foodservice systems for satisfying consumer needs. Innovative Food Science & Emerging Technologies, 2(3), 219–227. Crowther, D., & Rayman-Bacchus, L. (2004). Introduction: Perspectives on corporate social responsibility. In D. Crowther & L. Rayman-Bacchus (Eds.), Perspectives on corporate social responsibility (pp. 1–17). Hants, UK: Ashgate Publishing. Deng, S. M., & Burnett, J. (2002). Water use in hotels in Hong Kong. International Journal of Hospitality Management, 21(1), 57–66. Drysdale, J., & Galipeau, J. (2009). Profitable menu planning (4th ed.). Saddle River, NJ: Pearson Prentice Hall. Engstro ¨m, R., & Carlsson-Kanyama, A. (2004). Food losses in food service institutions. Examples from Sweden. Food Policy, 29(3), 203–213. Erdogan, N., & Baris, E. (2007). Environmental protection programs and conservation practices of hotels in Ankara, Turkey. Tourism Management, 28(2), 604–614. Gill, A. (2008). The role of trust in employee–manager relationships. International Journal of Contemporary Hospitality Management, 20(1), 98–103. Harmer, J. (2006). Quality on a tight budget. Caterer & Hotelkeeper, 196(4), 62–62. Henderson, K. A. (1991). Dimensions of Choice: A Qualitative Approach to Recreation, Parks and Leisure Research. State College, PA: Venture. Hernandez, J. (1998). Receiving and storing food safely. Restaurant Hospitality, 82(3), 113–118. Hill, C. W. L., Jones, G.R., & Galvin, P. (2004). Strategic management: An integrated approach. Milton, Australia: John Wiley & Sons. Hu, C., Chen, M., & McCain, S. C. (2004). Forecasting in short-term planning and management for a casino buffet restaurant. Journal of Travel and Tourism Marketing, 16, 79–98. Johnson, B. C., & Chambers, M. J. (2000). Foodservice benchmarking: practices, attitudes, and beliefs of foodservice directors. Journal of the American Dietetic Association., 100(2), 175–180. Kantor, L. S., Lipton, K., Manchester, A., & Oliviera, V. (1997). Estimating and addressing America’s food losses. Food Review, 20(1), 2–12. Kasavana,M.L.,&Smith,D. I.(1982).Menuengineering: A practicalguideto menu analysis. Okemos,MI: Hospitality Publications Incorporated. Kirk, D. (1995). Environmental management in hotels. International Journal of Contemporary Hospitality Management, 7(6), 3–8. Kirk, D., & Osner, R. (1981). Collection of data on food waste from catering outlets in a university and a polytechnic. The Institute of Food Service and Technology (UK), 14(4), 190–194. Kwa, T. (2008, April 25). Rising prices’ whirlwind effect. TheStraitsTimes.RetrievedJune,22,2011,fromhttp:// asiasociety.org/business-economics/economic-trends/ rising-prices-whirlwind-effect Lee, J. (2008, April 25). Worlds poor steaming over rising food prices. The Straits Times. Retrieved June 22, 2011, from http://wildsingaporenews.blogspot.com/2008/04/ worlds-poor-steaming-over-rising-food.html Response of Hotels to Increasing Food Costs 415 Lo, A., Cheung, C., & Law, R. (2006). The survival of hotel during disaster: A case study of Hong Kong in 2003. Asia Pacific Journal of Tourism Research, 11(1), 67–79. Loh, C. (2008, September 25). Stay well – eat local. South China Morning Post. Retrieved July, 20, 2010, from http://prd7-libwisesearch.wisers.net/ws5/tool.do? wp_dispatch=confirm-view&doc-ids=news:0653^2008 09250270043(S:76512227)&menu-id=&on-what=select ed&from-list&display-style=all&tooldisplay=true Maon, F., Lindgreen, A., & Swaen, V. (2008). Thinking of theorganisationas a system:Therole ofmanagerialperceptions in developing a corporate social responsibility strategic agenda. Systems Research and Behavioral Science, 25, 413–426. Mendoza, R. U. (2009). Is the global food crisis over? VOX.org. Retrieved June 3, 2009, from http://www. voxeu.org/index.php?q=node/3459. Merricks, P. & Jones, P. (1996). Designing control systems. In P. Jones & P. Merricks, The Management of Foodservice Operations (pp. 107–126). London: Cassell. Nicholls, L., & Nystuen, C. (1993). Future foodservice waste management. Hospitality Research Journal, 17, 231–241. Olsen, M., Tse, E.C.-Y., & West, J. (2004). Strategic management in the hospitality industry (2nd ed.). Saddle River, NJ: Pearson Prentice Hall. Paraskevas, A., & Altinay, L. (2008). Planning Research in Hospitality & Tourism (1st ed.). Oxford: Butterworth-Heinemann. Pomering, A., & Dolnicar, S. (2009). Assessing the prerequisite of successful CSR implementation: Are consumers aware of CSR initiatives? Journal of Business Ethics, 85, 285–301. Quinn, R. E., Faerman, S. R., Thompson, M.P., & McGrath, M. R. (2003). Becoming a master manager: A competency framework (2nd ed.). Hoboken: Wiley. Ramdeen, C., Stantos, J., & Chatfield, H. K. (2007). Measuring the cost of quality in a hotel restaurant operation. International Journal of Contemporary Hospitality Management, 19(4), 286–295. Raoul, J.C. K. (2003). It’s Chinese New Year this weekend (Kung hei fat choi!). BusinessWorld, p. 1. Rodgers, S. (2005). Selecting a food service system: a review. International Journal of Contemporary Hospitality Management, 17(2/3), 157–169. Saunders, M., Lewis, P. & Thornhill, A. (2003). Research Methods for Business Studies (3rd ed.). England: Prentice-Hall. Sprenger, R. A. (1995). Hygiene for management: A text for food hygiene courses (7th ed.). Doncaster, UK: Highfield Publications. Sulek, J. M., & Hensley, R. L. (2004). The relative importance of food, atmosphere, and fairness of wait: The case of a full-service restaurant. Cornell Hotel and Restaurant Administration Quarterly, 45(3), 235–247. Ticehurst, G.W., & Veal, A. J. (2000). Business Research Methods: A Managerial Approach. Frenches Forest, NSW: Pearson Education Australia. Trostle, R. (2008). Global agricultural supply and demand: Factors contributing to the recent increase in food commodity prices. United States Department of Agriculture. Tsai, T., Chan, L., Chou, K., Schultz, M., Heike, F., & Yeung, F. K. (2003). Island Shangri-La’s environmental management system: A long way to go! Asian Case Research Journal, 7(2), 173–194. Tzschentke, N., Kirk, D. & Lynch, P. (2008). Reasons for going green in serviced accommodation establishments. International Journal of Contemporary Hospitality Management, 16(2), 116–124. United Nations Environment Programme (2002) Environment Outlook 3: Past, Present and Future Perspectives. London, Sterling, VA: Earthscan Publications Ltd. Vaden, A. (1980). Model for evaluating the food service system. Manhattan: Kansas State University. Walker, J. R. (2006). Introduction to hospitality (4th ed.). Englewood Cliffs, NJ: Prentice Hall. Webster, K. (2008). The rise and rise of international food prices. Hospitality in Focus, 18, 7–11. Wong, O. (2007, 25th May). Campaign aims to cut wasteful food servings. South China Morning Post, City, p. 4. Youngs, A. J., Nobis, G., & Town, P. (1983). Food waste from hotels and restaurants in the UK. Waste Management and Research, 1(1), 295–308. 416 Murray Mackenzie et al. Copyright of Asia Pacific Journal of Tourism Research is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use.