Challenges for the Tourism and Hospitality Industry

Hospitality and Tourism Industry Challenge

One of the most significant issues is to comply with various Georgia state laws and regulations about health and safety within the hospitality industry. Most of the restaurant managements feel that legislators do not consider the consequences of various laws they pass on the hospitality industry and the local economy. The Georgia Department of Community Health, together with the local community health departments, regulates the hospitality industry, majorly, the restaurants. Those agencies impose extensive licensing fees for restaurants that operate in businesses like musical entertainment, liquor, and food service. In some cases, the most burdensome restrictions like smoking bans in all bars and restaurants have caused considerable business losses. Also, introducing regulation on the sale of alcohol is another challenge to the hospitality industry (Khartishvili et al. 410).

Consequently, the restaurant business is one of those enterprises that continues to experience difficulties in exploring business opportunities. Understanding the current challenges can enable business owners and managers to develop unique strategies that can improve their chances of success in the market. Within the state of Georgia, some of the significant challenges facing restaurants include the provision of health care coverage. Since the beginning of the affordable care policy, restaurant owners must also consider the health care expenses due to the law's requirement that any business with more than 50 employees must provide health care coverage through the employer shared responsibility payment provision act. To navigate through this challenge, the association of national restaurants should form a resource center website to provide updated information and appropriate tools to assist those in the restaurant business in implementing and comply with the regulations guiding the sector before any financial penalty is induced unto them (Gooroochurn et al. 26).

Subsequently, another challenge facing most of the restaurants in Georgia is the lack of effective menu pricing and inventory management. The key instrument for keeping costs low in a restaurant is to manage the inventory effectively. Restaurants that fail to do so may face unanticipated expenditures and supply shortages during the peak periods of the business. Therefore, restaurant management should carefully manage the expenses. At the same time, those tasked with managing the inventory and menu pricing also opt to streamline the ordering processes to reduce waste significantly and monitor the various fluctuating costs that would affect the gross profit (Khartishvili et al. 410).

The use of computers in lodging operations and food service in Georgia has brought positive progress within every segment, including personnel management, accounting, reservation, and sales records. As a result, the demand for convenience in most of the operations has been realized. Also, computers have enhanced customer experience in making reservations through Apps, hence improving customer dining experience and convenience. Moreover, through computerization, the management has benefitted ample time because most pre-order apps contain features that enable online payment, thus easing sales record storage and improving general business operations (Gooroochurn et al. 37).

Consequently, through computerization, most of the restaurants in Georgia dealing in the foodservice industry have adopted delivery apps like Deliveroo and Foodora to increase access to their customer base whenever they are located at a given time. As a result, an excellent level of convenience has been experienced by both the management and the customers as people can now order for whatever they need anytime, anywhere and have them delivered immediately. Currently, travelers are increasingly getting services through the adoption of the computer system. For instance, a computerized system in the Lodging sector enables international travelers to order room services, play games, receive secure emails, and even older movies (Iosava, 178).

Across all the restaurants in Georgia, businesses have been influenced by technological advancement and technology usage by customers. As a result, the utilization of technology has become a massive factor in the restaurant business operation, thus blossoming the hotel and hospitality industry, advancing customer computer usage, and developing complex software to aid the delivery services. Also, most of the restaurants have significantly invested in information technology, allowing their clients to use their personal computers to access some services other than seeking direct human service. Such technology has since enabled most restaurants within Georgia to realize huge profits in terms of growth and increased revenue (Khartishvili et al. 410).

However, even though many restaurants have primarily adopted new technology, some restaurants have not become IT-driven in delivering services and goods and production. Such restaurants have not considered IT a significant function within the hospitality industry; for instance, less than 50% of the IT managers in such restaurants are fully dedicated to IT services. On the other hand, most of the restaurants that embraced technology have recently adopted Front of House and Back of House technologies that support the house and back (Gooroochurn et al. 40).

Interdependence between the lodging, food service, and meeting segments in the hospitality industry exists in Georgia. The players are continually engaged as a team, forming mutual dependence on each other for their success. It is a synergy. Consequently, whenever an of the sector, for instance, the lodging sector, fails, almost the entire hospitality sector bears the risk of failure. This is because, when clients attend a meeting, they need both the options of lodging and food provided in a single-stop shopping to minimize stress during their extended stay. Such a synergy level guarantees customer satisfaction and the organization's success (Khartishvili et al. 410).

To upscale such synergy, teamwork, and cooperation would increase flow due to successful standardization. The increased flow would result in more revenue for the business, while standardization will enhance cost-effectiveness in the operations of the businesses. In addition, to increase synergy, there are various associations that sub-sectors can join to enhance their synergies. For example, in Savannah, Georgia, there is a tourism leadership council, an entity whose key mandate is to enhance unity amongst the members in the hospitality industry. The organization enables her members to come up with tangible ideas that lower the expenses but increase revenue generation, enable the membership to have a universal goal, and promotes different elements with the hospitality sector. The membership includes tour companies, hotels, printers, caterers, banks, restaurants, distributors, and food and beverage, amongst many more (Gooroochurn et al. 34).

For example, Johnny Harris, a local restaurant in Savannah, Georgia, has developed a cooperative effort with the area museums and local trolley company. As a result, when a team books from their facility to dine, they also book entertainment and touring as a package with a discount. Lastly, to improve the synergy, the organizations opt to improve the staff's welfare, which is also the backbone of a successful synergy (Khartishvili et al. 410).