Black Collegian Career Center

In the United States, the hospitality industry is a multi-billion dollar a year industry and, on an international level, a multi-trillion dollar a year industry employing millions of citizens directly and indirectly.  As of 1998, industry analysts predicted that the food service segment of the industry alone would generate revenues of $336.4 billion in sales or have an increase of 4.7% above the 1997 sales of $321.28 billion.  Food-service sales for 1999 are projected to reach $371.6 billion, a 2.5% increase over 1998.

The industry is divided into the following areas: lodging, food service, institutional facilities, and travel and recreation.  The lodging and food services are often intertwined with the travel and recreational segments of the industry.  A point often debated by industry officials is  which division is most prevalent.  This writer thinks that the lodging and food services are the dominant areas.

Workers in the industry often refer to these services as the front of the house and the back of the house.   The front of the house consists of the jobs that allow the workers to interact directly with the guests.  Positions in this area include the general manager, concierge, sales/marketing director.  Workers in the back of the house include the executive chef, chief of security, and controller.  These jobs are very important even though these employees do not have direct contact with the guests.  They do, however, ensure the success of the establishment.

Jason Wallace

According to Jason Wallace, president of Black Culinarians, New York City, N.Y.,   Our ancestors were the original hospitality workers.  Any person, especially an African American, who is willing to put in long hours and to work hard can assure himself/herself of life -long employment in a profession that is honorable.

On the basis of statistics provided by the United States Departments of Commerce and Labor, the service industry, of which the hospitality industry is a branch, predicts that of the newly-created positions in private industry between now and the turn of the century, nine of every 10 will relate to the hospitality/service industry.  In addition, data indicate that 75-80% of first-time employees entering the workforce will originate from historically excluded or
  protected class applicants such as women, minorities, and immigrants.  The tourism industry, for example, is one of the three largest employers in more than one-half of the states in this nation and the largest in several foreign countries.  Nationwide, tourism is responsible for employing six million citizens with an estimated payroll of $90 billion. 

Dr. Charles Monagan

Dr. Charles Monagan, coordinator of Hospitality and Tourism, Morgan State University, Baltimore, MD, states  the window of opportunity is good for a student seeking upper-level managerial positions.  We, being African Americans, don't realize the potential for us in the hospitality industry.  If one is a fast mover, he/she can move up to the general manager position quickly.

Mid-ninety statistics reported the United States was the world leader in generating receipts from the international tourism trade.  The United States had a $25 billion trade tourism surplus, twice as much as second-place France.  During the mid-90s, nearly 45 million visitors came to the United States and spent an estimated $74 billion on tourism services.  These visitors principally came from Japan, Canada, Mexico, Germany, France, the United Kingdom, and Italy.  Because of the current recession in Japan, the downturn in Japanese tourists is having a negative effect on the economy of Hawaii, which depends on tourism dollars for a substantial portion of its revenues.

LODGING

The year 1997 was a banner for the hotel industry.  Hotel values in various markets of the United States rose nearly 70%.  This economic bonanza came six years after the industry bottomed out because of the overbuilding of the 1980s.  The year 1991 saw 35 of 47 major hotel markets lose value.  Because of the economic up-swing during the mid-90s, analysts predict that by the year 2000, hotel values for the top 10 markets will increase by the following percentages*:

Long Island......................................145%
Los Angeles.....................................128%
Anaheim............................................93%
New York.........................................89%
Washington, D.C...............................86%
San Diego.........................................81%
Miami...............................................66%
Boston..............................................56%
Houston............................................49%
Reno................................................48%
*Source HVS consultants

A few of the hottest markets are Colorado (Denver), central and south Florida, and Nevada (Las Vegas).  Demographics point to both the southwest and southeast as locations to where the construction boom is presently occurring.

It should be noted the New York City market is experiencing exceptional profitability with a 90-96% occupancy rate in most hotels.  Despite excellent business, there is little or no major growth, and industry leaders see none in the foreseeable future.

International

On an international level, the chain restaurant/fast food industry is experiencing rapid growth in European nations such as England, Ireland, and Italy.  South American nations, such as Chile and Argentina, are also experiencing economic gain for the industry.  Asia, for several years leading up to 1996, was the fastest growing worldwide market.  The year 1997 saw the Asian market collapse, which is having a ripple effect on various world markets.  Thus far, the monetary problems of Asia have not crippled the European and American economies.  However, popular travel destinations such as Melbourne and Sydney, Australia, as well as Hawaii, have seen their tourism market drop substantially due to the economic problems of Asia.  To help avert a worldwide recession (and prevent a collapse in the industry), in early October of 1998, President Bill Clinton requested that the IMF and the G Seven Group develop a plan to help stabilize the Asian economy.

Current Trends in the Food Service Industry

Casual/upscale ethnic restaurants, such as Mexican or Chinese, are hot.    So are swank sandwich bars.  One-time fashionable establishments, such as Planet Hollywood and Hard Rock Cafe are not, and several franchises are facing financial instability.  Nations' Restaurant News, a leading trade publication for the restaurant industry, announced in one of its Spring, 1998 issues that concept winners included the following:

• Cosi Sandwich Bar, New York.  An upscale sandwich concept that uses made-from-scratch ingredients on a crust flat bread.
• Jamba Juice, San Francisco.  A chain that showcases the snowballing popularity of smoothies.
• MacKenzie River Pizza Co., Bozeman, Montana.  A gourmet pizza concept with a Wild West theme.

Professional Opportunities

As previously noted on the flow chart, there are a number of professional paths an interested applicant might follow.  Competition for employees at the managerial level is so keen that some members of the industry are offering signing bonuses as a way to stimulate growth for their establishments. 

According to Benton Prentice, a recruiter who specializes in the recruiting and placement of African Americans and women for Fortune 500 corporations, the employment outlook is tremendous for minority applicants with bachelor of arts or science degrees.    Entry-level salaries average $28,000 - $30,000 nationwide.  It should be noted that salaries are often higher in cities such as San Francisco, Boston or New York City as a result of a higher cost of living.   Each of the three segments of the Hospitality Industry (a) Restaurant, (b) Lodging, and (c) Tourism are struggling to locate and maintain middle and upper-level personnel.  The lodging industry is hiring at a faster rate than the restaurant or tourism segments.  By the year 2000, the industry will need upwards of one million employees and competent managerial personnel to operate the corporate business.  Top hospitality African-American executives are often lured away by competitors who offer lucrative salaries and bonuses.   Herbert and Gloria Solomon, editors and publishers of Black Meetings and Tourism magazine, San Diego, CA, state, Regarding career opportunities for African Americans in the travel and hospitality industry, we at Black Meetings and Tourism feel quite encouraged by the fact that the challenge we have presented for years to the travel and hospitality industry to provide parity in job search and hiring practices has become a part of the national agenda for the NAACP and other equally prominent groups who now join with us to not only bring attention to this issue but to essentially bring pressure to bear to demand fair and equal opportunities.    The  Solomons further add, Since its inception, Black Meetings and Tourism has served as a voice for African Americans in this industry, which by the year 2002 will be the largest industry in the U.S., as well as an educational resource to bring to light the tremendous economic value of the African-American meetings, travel and tourism market.  Presently the accepted figure is conservatively set at $35 billion plus.

 When considering employment, an applicant should consider:

A) Company reputation
B)  Advancement potential
C) Geographic location
D) Type of work activity

• American Express Travel Related Services
• Hotel Nikko San Francisco
• American Meetings & Conventions
• Hyatt Hotels & Resorts
• Aramark
• JHM Hotels
• Atlantic City Hilton Casino
• Bally's Grand, Atlantic City 
• Marriott Hotels & Resorts
• Bristol Hotels & Resorts
• MGM Grand Hotel
• Chili's Grill & Bar
• New York Hilton & Towers
• Chicago Hilton & Towers
• The New York Palace
• Choice Hotels International
• Ritz-Carlton Hotel Company
• Doubletree Hotels
• Sage Hospitality Resources
• El San Juan Hotel & Casino Puerto Rico
• Spargo Restaurants
• Four Seasons Hotels & Resorts
• Walt Disney World
• Hilton Hotels and Resorts
• Wyndham Hotel & Resorts

Two recent events occurring in 1997-1998 have significantly influenced African-American, or protected class college graduates seeking professional opportunities in the hospitality industry.  First, the present economy of the nation is healthy and employment opportunities are plentiful for those who have either earned degrees and/or specialized training in an area like the culinary arts.  The second condition that has boosted professional opportunities  is the so-called report card system initiated by the NAACP, which questioned the hiring practices of major hospitality employers in regard to diversity.

In light of the NAACP Hospitality Industry Report Card and other civil rights advocates questioning the commitment of the industry; several corporations are activity recruiting protected class citizens and seeking a more diverse workforce.  According to Ed Watkins, editor of Lodging Hospitality magazine, the following are examples of their efforts:

A) In the Sheraton Hotel Corporation, one-fourth of the general manager's bonuses are tied to diversity plans that are created and executed by the general manager.
B) Marriott International is in the process of launching a diversity training program for each company employee.  The company has over 100,000 employees.
C) Denny's and Shoney's restaurant chains have, in recent years, had numerous civil rights suits filed against them.  They've implemented diversity sensitivity and employment  training programs for their staffs.

R. Donohue (Don) Peebles, 38, is president and C.E.O. of Peebles Atlantic Development Corporation (PADC).  He has the first major African-American-owned hotel complex in Dade County (Florida) and the first four-star hotel project developed by an African American in the United States.  Other projects of Peebles' corporation include:

(A)  $40 million, 450 room hotel - Washington, D.C.
(B)  $110 million, 360 room hotel - San Francisco, CA
(C) $40 million, 400 room hotel - Philadelphia, PA
(D) $72.4 million, 500 room hotel - Fort Lauderdale, FL 

The Atlantic Franchise Development Company (AFDC) in Atlanta, GA, was founded in 1995 with annual sales of $60 million by March of 1998.  AFDC made history by the consummation of the largest African-American transaction in the food service industry following the acquisition of 100 company-owned Church's Chicken restaurants for $32 million.

The primary officers are Calvin Vismale, a securities broker and investment consultant, Raymond Sales, an attorney, Dwayne Heard (president and CEO), a former operations executive with Church's Chicken, Kentucky Fried Chicken and Checkers restaurants, and Brian King, a former oil and gas industry analyst with Chemical Bank.  What is unique about these individuals is that they all have various backgrounds including law, finance, marketing and management and pooled their talents toward one objective-to make money and a lot of it!

Todd Alexander, 31, a 1989 Cornell University School of Hotel graduate, founded Vendemmia Inc., Atlanta, GA, with a $50,000 loan from his family in 1992 and opened his wine import and distribution company.  He admits it was not easy obtaining his distribution license because the Bureau of Alcohol, Tobacco and Firearms had an extremely difficult time comprehending why an African-American male wanted to import and sell fine wines in Georgia.  Alexander was his company's only employee when the business first opened.  He now employs eight and plans to expand.  The company's market is the top 5% of connoisseur consumers in the state of Georgia with anticipated sales of $2 million by the year 2000.

Herman Cain

No article would be complete regarding the role of African Americans in the hospitality industry without mentioning that Herman Cain is the current and first African-American president of the National Restaurant Association.  He is a successful executive formally employed by various Fortune 500 companies such as the Pillsbury Corporation and Godfather's Pizza.  His insight and powerful leadership have made him a living legend. As Cain and other African-American executives in this industry have often said the hospitality industry offers unlimited opportunities for an individual who has patience, desires a lucrative professional opportunity and is not afraid of long hours or hard work.