Legal Requirements For Establishing And Operating A Restaurant

Research and identify legal requirements for compliance

The Grace Hotel, Australia, being a major established and popular hotel is where I have been working. To manage successful business functioning, it is essential for managing three different types of suppliers who supply goods and services along with raw materials and resources like meat, fruits, vegetables, cleaning services, beverages, insurance, etc. for ensuring successful business functioning and exceptionally good manufacturing and production processes too (Chen et al., 2015). The hotel falls under the tourism sector and thus most of the items include food and beverage items, raw materials and resources required for the production of food, etc.

Supplier 1: Food and beverage vendors

Products or services provided: the vendors mainly deliver the finished goods, i.e., the raw materials like vegetables, fruits, meats to the hotel and thus they are considered as major sources of the supply chain. These are essential for preparing the food items that the clients require and so consistency of quality for the resources is essential to meet the quality standards and cater the tastes of people properly.

Supplier 2: Cleaning services suppliers

Products or services provided: These kinds of suppliers are affiliate merchants who supply cleaning materials, blankets and laundry services. Ferguson et al. (2016) opines that they are linked with the hotel and for driving the traffic level, they present their products through banner ads all throughout the affiliates’ network, thus will allow the company to pay them for delivering the goods at the right time for serving the clients at the hotel efficiently.

Supplier 3: Drop shippers

Products or services provided: Drop shippers are considered as major suppliers because they supply the products and services directly to the customers once they have made purchases from the hotel. It is a cost effective way, though considering the fact that they have direct connection with the hotel and are liable to provide necessary things that the customers need. The drop shippers include suppliers like event planners who manage the events at hotels celebrating the guests’ birthday, wedding ceremony and during other auspicious occasions.

The key performance indicators required to supply the products and services from each of the suppliers include quality of products and services prepared and provided to the guests cording to the supplies made available to the hotel by the suppliers. On the other hand, Annison, (2017) is of the view that the quality of food made and guest satisfaction are considered as key performance indicators based on the supplies made by the food and beverage vendors.

List of suppliers

The clean and fresh laundry and clothing items along with room decoration materials are positive signs that the laundry services are provided properly and the cleanliness has been maintained as well.

The drop shippers, when delivered the products and services directly to the clients, were checked whether those have been delivered timely or not. Thus, the timely delivery of products and services to the clients is considered as a major performance indicator here.

The manufacturers are alternatives to vendors who are responsible for researching, developing and producing the finished goods, i.e., they are associated with the management of crops and production that are later supplied to the hotels along with meat for the production of good quality food items.

The wholesalers and distributors act as alternative to suppliers who purchase materials in bulk amount from other manufacturers and vendors and sell those to the organisation directly (Tzamalis et al., 2016).

The independent crafts people, i.e., the farmers and other persons who are engaged with crop production activities and management of farmyards, have developed smaller scale of economy and later sold the unfinished good to the hotels or organisations directly.

At Grace Hotel, innovation is consistent and thus quality and pricing are important components contributing to the satisfaction of clients of the company.  There were situations when few of the suppliers, especially those who supply the raw materials like fruits, vegetables, etc. to the hotel and are used for the purpose of manufacturing and production processes provided bad quality and stale items. In such cases, it is important to ensure that the suppliers who are incapable of delivering the right quality and freshest vegetables and fruits needed to enhance the production process efficiency. According to the opinions of Nychas et al. (2016), there are certain areas and aspects that are needed to be negotiated with properly and obtain new suppliers for ensuring smooth business functioning.

The prices of products offered at the hotel automatically get high with the higher priced supplies provided by the suppliers and this is one of the major reasons, because of which, clients get unsatisfied. They switch on to some other hotel for getting the products available at lower prices, which could also make the company face decline in sales and revenue generation. The existing suppliers demanded higher amount of money, in spite of delivering low quality goods needed for the production process. The existing suppliers, especially the cleaning service suppliers demanded high rates for the blankets and other cleaning services provided to the hotel for serving the customers. Due to this, they should be replaced with other suppliers who could demand reasonable prices for the supplies offered.

Key performance indicators

The supplies should be reliable and effective enough for ensuring that it could meet the criteria of hotels and ensure that the guests at the hotel are kept satisfied largely. To maintain reliability, it is also important for choosing the right suppliers considering the prices they charge along with the quality of goods they offer, so that it can be checked at earlier stages about whether the clients’ needs could be fulfilled or not (Grover et al. 2016).

The needs of the organisation, i.e., the Grace Hotel include good quality supplies available at reasonable prices and loyal suppliers. The organisation also demands fresh items and so to meet the demands and high expectations of clients, the company needs to purchase supplies in bulk amounts and keep it stored properly, furthermore maintain enough capital to make investments and increase the purchasing power too. This would help in keeping abundant supplies in stocks, furthermore ensure production of food items smoothly along with other hospitality services needed to serve the guests at Grace Hotel with much ease and effectiveness.

The suppliers are to be negotiated with according to the way the money should be paid to them in the form of bill paid for by the bank, foreign currency or as bank drafts. The potential costs incurred while managing the administrative activities, transactions, transport are considered along with the assessment of risks associated with the existing suppliers. The suppliers are to be engaged with and form string relationships through proper collaboration, negotiations, management and skills for performance reviewing (Aung & Chang, 2014). By replacing the existing suppliers, especially those who supply poor quality fruits, vegetables and also are associated with the cleaning services’ providers with newer ones, it would be easy for getting the best quality services from them along with strengthening of relationships with hem, which could further ensure service level agreements along with management of proper suppliers contracts. Negotiations with the suppliers are managed with the checking of national and international certification bodies that could enable monitoring the quality of the potential suppliers and their abilities to deliver the right goods at the right time. Setting the objectives is also part of the negotiations with suppliers considering the price, value for money, terms and conditions of payment, lifetime costs of products, after sales service, etc. According to Augustin et al. (2017), prior to negotiations, investments are needed along with necessary training facilities to facilitate the negotiation process furthermore. Understanding what actually the suppliers need is important as well by checking whether the supplier runs a monopoly or not, which could provide a helping hand and allow obtaining various sources from which the supplies could be made. A negotiation strategy is essential for managing the negotiations properly, furthermore defend the various statements made for negotiating with the suppliers effectively too.

Alternative suppliers

Conducting negotiations can help in developing the relationships with the suppliers. The most important certification body is the International Organisation for Standardisation or ISO certificate that has set various quality standards used and assessed by companies all over the world to facilitate global trade activities with the provision of set of standards. Negotiations are based on researching the actual costs and discover the areas where both the company and suppliers could be mutually benefited. On the contrary, De Boeck et al. (2015) states that the multiple suppliers are to be assessed to check which one of them offer the best quality services at the value for money prices. Providing reference about the clients could also allow the suppliers to understand the needs of the hotel and how it could serve the customers based on which, the supplies should be made accordingly. Negotiations on price could be done by asking for prices that look higher through exposure of ongoing costs including various expenditures, consumables, repairing costs, etc. Good prices paid to the suppliers strengthen the relationships with them while the detailed agreements make the relationships easier and flexible.

Negotiation 1
Real Negotiation                  Simulated Negotiation
Supplier details	Specialized in delivering good quality fruits, vegetables and meat
represented by:	Yarra Valley Farms
Location	Yarraville VIC, Australia
Date	15.12.2018
Nature of negotiation	The pricing structure is considered because the supplier’s demand is high amount of money because of its reputation in delivering freshest quality vegetables, fruits, etc.
Details	Yarra Valley Farms is a major supplier of fresh quality Fruits and Vegetables that are supplied to hotels and other areas to serve for commercial purposes.
	It has leveraged its professional network and with its strong brand name and image, a large number of companies within the tourism and hospitality industry have been benefited.

Negotiation 2
Real Negotiation                  Simulated Negotiation
Supplier details	Event planner agency managing the events like birthdays, wedding ceremonies, etc. for the guests by collaborating with the hotel.
represented by:	ID Events Australia
Location	Suite 41, Upper Level, Jones Bay Wharf, 26-32 Pirrama Road, Pyrmont NSW 2009, Australia
Date	20.12.18
Nature of negotiation	There are various terms and conditions, because as the event planner is considered as drop shippers, delivering services directly to clients after making purchases from the hotel.
Details	The entire event is managed by the event planner agency, though the profit will be shared among the company and the agency

Supplier 1	Outcome	approved	not approved
Details negotiated
Prices to be paid for the supplies	Proper prices should be paid to keep suppliers satisfied
Payment terms and conditions	Either in cash or as bank drafts
Intellectual property	To maintain the patents, copyrights, etc.
Supplier 2	Outcome
Details negotiated
Confidentiality	Maintaining confidentiality of the event planner
Warranty periods	Making sure that the services and products are arranged according to the warranty period
Termination and exclusion clauses	Right to terminate the contract in case of any faulty situations faced

The suppliers should be contacted with by sending emails and also by engaging in telephonic conversations and video conferences. Both the parties are to be agreed upon with for ensuring that the contract meets the legal obligations.

The management contracts in tourism and hospitality allows for operating own property and even pair up with other hotels by agreeing to a contract, furthermore leverage the resources and best systems to ensure successful business functioning. The staffs are trained to build professionalism and unite properly to deliver high performance and ensure that the hotel runs properly to serve the clients (Nyarugwe et al. 2016).

Contracting parties include ID Events Australia, Yarra Valley Farms that are located in New South Wales, Australia and are considered as major suppliers with whom The Grace Hotel has formed contract with. The Risks of loss or damage are low, because of the management of good relationships with the suppliers, which not only resolves certain disputes but also manages proper agreements between both parties involved in the contractual agreement. Signature provisions include signing to the documents and making written agreements for facilitating the contractual agreement furthermore (Adam et al., 2017).

References

Adam, S. M., Morsy, M. A., & Moawad, E. H. (2017). Food Safety Risk Management System in Three Star Hotels: Barriers, Benefits and Motivations of Application. International Journal of Heritage, Tourism, and Hospitality, 10(2/2).

Annison, G. (2017). The triumvirate underpinning Australia’s food industry. Food Australia, 69(3), 18.

Augustin, J. C., Ellouze, M., & Guillier, L. (2017). Microbial risk assessment: integrating and quantifying the impacts of food processing operations on food safety. Quantitative Microbiology in Food Processing: Modeling the Microbial Ecology, 581-599.

Augustin, J. C., Ellouze, M., & Guillier, L. (2017). Microbial risk assessment: integrating and quantifying the impacts of food processing operations on food safety. Quantitative Microbiology in Food Processing: Modeling the Microbial Ecology, 581-599.

Aung, M. M., & Chang, Y. S. (2014). Traceability in a food supply chain: Safety and quality perspectives. Food control, 39, 172-184.

Chen, E., Flint, S., Perry, P., Perry, M., & Lau, R. (2015). Implementation of non-regulatory food safety management schemes in New Zealand: a survey of the food and beverage industry. Food control, 47, 569-576.

De Boeck, E., Jacxsens, L., Bollaerts, M., & Vlerick, P. (2015). Food safety climate in food processing organizations: development and validation of a self-assessment tool. Trends in Food Science & Technology, 46(2), 242-251.

Ferguson, M., O’dea, K., Chatfield, M., Moodie, M., Altman, J., & Brimblecombe, J. (2016). The comparative cost of food and beverages at remote Indigenous communities, Northern Territory, Australia. Australian and New Zealand journal of public health, 40(S1), S21-S26.

Grover, A. K., Chopra, S., & Mosher, G. A. (2016). Food safety modernization act: A quality management approach to identify and prioritize factors affecting adoption of preventive controls among small food facilities. Food Control, 66, 241-249.

Nyarugwe, S. P., Linnemann, A., Hofstede, G. J., Fogliano, V., & Luning, P. A. (2016). Determinants for conducting food safety culture research. Trends in Food Science & Technology, 56, 77-87.

Nychas, G. J. E., Panagou, E. Z., & Mohareb, F. (2016). Novel approaches for food safety management and communication. Current Opinion in Food Science, 12, 13-20.

Tzamalis, P. G., Panagiotakos, D. B., & Drosinos, E. H. (2016). A ‘best practice score’for the assessment of food quality and safety management systems in fresh-cut produce sector. Food Control, 63, 179-186.