Two years ago, the hospitality industry suffered acute monetary and emotional loss from the satanic events of 9/11. Consumers were afraid to vacation; therefore, restaurants and related businesses were forced to lay-off workers. Suppliers were not paid, and the domino effect devastated this proud industry. Hardest hit was the travel and tourism segment in the United States and abroad. However, given time and enhanced security measures, people of all countries slowly began to feel comfortable about traveling. This "return to normalcy" has served to return the hospitality industry to the economic powerhouse it once was prior to 9/11.

Cited below is a narrative of the industry's recovery that focuses on its three major segments and related elements.

Lodging

A milestone was reached in the lodging industry. The Holiday Corporation celebrated its 50th anniversary. The corporation was founded August 1, 1952 in Memphis, Tennessee by Kennons Wilson. In 1991, the chain relocated from Memphis to its new, world headquarters in Atlanta, Georgia.

The Top Ten U.S. Brand and parent Companies are:

The Top Ten Management Companies of Hotels with Total Rooms Managed are:

* Source: Lodging Hospitality Magazine, August 2002
**Totals include properties owned and properties managed for other owners.

The Supply Growth of Guestrooms of Key Markets' Projections Between 2002-2005*

 * Source: Smith Travel Research

The 2nd Quarter of 2002 saw 77 new properties and 19,000 guestrooms opened. In addition, there are 742 properties under construction and 2,112 hotels with 330,000 rooms awaiting financing and related approvals. These figures strongly suggest the lodging segment has turned the corner of the "red ink" seen the 4th Quarter of 2001 and 1st and 2nd Quarters of 2002.

Minority-owned interests in the lodging business are cited below*:

• RLJ Development/Robert L. Johnson/CEO/
  9 hotels, 1,431 rooms/$141.3 million
• Peebles Atlantic Development Corp./ R. Donahue Peebles/
  2 hotels, 610 rooms/$109 million
• Thompson Hospitality/Donnell Thompson/
  6 hotels, 421 rooms/$40 million
• Fitzgerald Properties/Don Barden/
  3 hotels, 638 rooms/$149 million
• George Shanklin Enterprises/George Shanklin
  43 properties, 3,482 rooms, $117 million**

**12 hotels/732 rooms pending
*Source: Horizons Marketing Group

According to Mike Amin of the Asian-American Hotel Owners Association, Indian Americans own about 17,000 properties in the United States. Those figures are approximately 40% of the lodging properties of the United States. What is more amazing, Indian-Americans represent less than 2% of the American population.

It should be noted that prior to the passage of the 1964 Civil Rights Act, there were very few minority-owned hotels/motels. The Moulin Rouge opened in Las Vegas as the "nation's first integrated hotel," and noted African-American businessman A.G. Gaston of Alabama had a chain of motels in the South. However, due to "red lining" discriminatory practices in the banking industry and bans on zoning by conservative city governments, minorities entering the hotel industry as owners were virtually non-existent. What is worse, once accommodations were open to all segments of the public, patrons who supported minority lodging prior to the 1964 Civil Rights Act, no longer patronized minority-owned businesses hastening their demise.

R. Donahue Peebles who recently opened the Royal Palm Hotel, Miami, Florida is utilizing aggressive marketing to ensure his property is not labeled as a "Black Hotel"--a code word for the majority population and others to stay away from the property.

Food And Beverage

The year 2002 saw many surprises in the fastest growing food service eateries. Traditionally this segment belongs to establishments that feature pizza, chicken and that "all American favorite", the hamburger. Krispy Kreme Doughnuts, Panda Express, Panera Bread Company, Quizco', and Starbucks were all part of the top five chains in the United States for system-wide sales growth.

The top five companies ranked by U.S. food service revenues were: McDonald's Corp. ($4.9 billion); Yum! Brands, Inc. {Pizza Hut, Taco Bell, KFC} ($4.8 billion); Aramark Corp. ($4.5 billion); Darden Restaurants Inc. {Red Lobster, Olive Garden, Bahama Breeze}($4.3 billion); and Sodexho ($4.1 billion).

The National Restaurant Association estimated the system-wide sales of the top 100 chain restaurants to exceed $145.36 billion for 2002, with sales to continue to increase this year. However, due to the economy, "fine dining" establishments are facing very tough times as a number of very famous establishments have closed their doors due to poor sales. One prime example was the Russian Tea Room in New York City.

Last year industry sales were estimated at $423.23 billion, down 2.9% from 2001. Projections for 2003 are $437.94 billion in sales or a 3.5% growth.

Interesting to note, 15 years ago, the average American dined out 93 times a year and carried a restaurant meal home 90 times a year. In 2002, the average American dined out 88 times and took 119 meals home. The fastest growing menu items are breakfast fare, while the most skipped over are luncheon items.

Technology continues to intertwine with food service. In 1999, 5,000 fast food establishments accepted credit cards as a way to purchase food. Last year 30,000 units nationally now accept credit cards.

The "fast food" or "quick service" segment faced some extremely controversial lawsuits in 2002. McDonald's settled a case brought against the chain by a religious group who claimed injury while consuming French fries cooked in oil that was not 100% vegetable oil. They claimed there were actually animal fat derivatives in the oil. Unconfirmed reports suggested that McDonald's settled for $12-13 million.

The second controversial case is against McDonald's, KFC, and Burger King wherein plaintiffs are alleging the defendants "failed to warn" the public of a "dangerous product," that consequently leads to obesity, heart attacks, and related health problems. If the above-cited case works its way through the court and a sizeable judgement is awarded, there could be a rippling effect of financial problems for American restaurant establishments.

On a more positive note, major companies such as Home Depot have established ties with eateries which included McDonald's, Dunkin' Donuts, Nathan's Famous Hot Dogs, Little Caesar's and Wendy's International, allowing consumers to shop and dine without leaving the facility.

New trends in dining have patrons enjoying various types of game meat. Chefs around the country are introducing game at numerous eateries. Items such as antelope, "Texas wild boar", venison medallions topped with foie gras and Madeira demi-glace, reindeer sausage served with an omelet and melted cheese are popular choices. Or, one can enjoy black bear as a pâté appetizer or entrée.

Sadly, the year 2002 saw three giants of the industry pass away--Dave Thomas, founder of Wendy's International; William "Bill" Williams, founder of Glory Foods, Inc.--a major distributor of "soul food" canned food products; and William Rossenberg, founder of Dunkin Donuts.

In 2002, Dunkin' Donuts turned 50 and 7-11 turned 75 years old. Both establishments are leaders in the industry, provide thousands of individuals with employment, and will continue to be a powerhouse in this industry. 7-11 is the world's largest convenience retailer with more than 21,000 stores operating in the United States and 16 foreign nations with sales exceeding a staggering $27 billion.

Diversity, Starting Salaries, Career Opportunities

On May 15, 2002, hotel owner R. Donahue Peebles made history when he opened the Royal Palm Crowne Plaza Hotel in Miami, Florida. His hotel is the first 5-star Black-owned convention hotel in American history. Solomon J. Herbert of Black Travel and Tourism gave the hotel superlatives for the first class service, food, music, and "overall good feeling" with regard to the hotel's ambiance. Of historical note, three decades ago, the Miami Beach City Council attempted to pass an ordinance forcing "outsiders" (non residents/minorities) to carry ID badges in order to work within the jurisdiction. The law was modeled after similar legislation in Cape Town, South Africa. After much controversy, the law was defeated.

Other noteworthy achievements

September 17, 2002, Church's Chicken and Alpha Phi Alpha Fraternity, Inc. announced an agreement entering into a franchise partnership to serve underdeveloped/minority communities. Franchises are planned for markets in and around Washington, D.C., Baltimore, Cleveland, Cincinnati, and Columbus. In addition, AFC Enterprises, the parent company of Church's Chicken, which owns 3,896 restaurants, bakeries, cafes in the U.S. and 30 foreign countries has made a commitment to open 100 Church's franchises in 19 African nations over the next 5 years.

Johnson and Wales University received the Multicultural Foodservice & Hospitality Alliance Champion Award in August 2002. The MFHA's President, Gerald "Gerry" Fernandez (right), at their annual banquet, presented the award to Johnson and Wales. According to Scott Cohoon, Director of Fund Raising and Alumni Affairs for Johnson and Wales, "Diversity is a key element in the hospitality industry for success, and this university is committed toward ensuring we inform and train our students with respect to the benefits of diversity." According to Fernandez, "By 2005, 30 percent of consumers and 34 percent of workers will be minorities, which means companies today must have strategies for managing a multicultural and multilingual workforce and for succeeding in multicultural and multilingual consumer markets." Fernandez added, "As the number one private-sector employer of women and minorities, the foodservice and hospitality industries have a strategic imperative and an obligation to lead America's diversity discussion."

A few of the top female executives in the Hospitality Industry are Betsy Holden, CEO of Kraft Foods; Indra Nooyi, President and CEO of Pepsico; Mary Kay Haben, Vice President, Kraft Foods-North America; Ann M. Fudge, board member of the Marriott Corporation and former Vice- President and President of the Beverage, Dessert and Post Group of Kraft Food; and Colleen Barrett, President and COO of Southwest Airlines.

Last year Fortune cited the following corporations as positive places for minorities/protected class citizens to seek employment in the hospitality, travel, hotel, and tourism industry:

McDonald's, Pepsico, Hyatt Hotels, Wyndham International, Hilton Hotels, Marriott International, Coco-Cola, Darden Family Restaurants (largest casual dining restaurant company in the world), and United Airlines Corp.

Due to the problems of the national economy, starting salaries are not as high now as they were in the mid-late 1990s. However, a student can look for an entry-level salary of $35-$40,000 and within 3-5 years earning in excess of $75-$80,000. With a graduate degree and five years experience, an Assistant GM or GM will earn well over six figures working for a major hotel chain in a key market area.

According to Professor Gloria Tate, Hospitality Coordinator at Cheyney University, "Several universities are seeking minorities with Ph.D. or graduate degrees to teach in their hospitality/business programs." She continues, "A minority with the above credentials can write their own ticket." Although teaching usually is not as lucrative as private industry, the trade off is a 20 hours per week teaching commitment, research money, and four months off a year to do consulting. Often tenured professors earn over six figures at major universities, in many instances salaries exceed $250,000 to $500,000 a year.

Often minorities are placed in "safe jobs" such as Human Resources (HR). This is a fine area to work. Very few CEO's or COO's come from HR. Marketing,
accounting/financial, and sales backgrounds are usually where the board looks for its corporate leaders.

With the economy fighting to stabilize, one way to seek employment and maintain skills is to out-source your talents. Independent contracting is an employment concept many professionals and companies are utilizing. It is a win-win for each side. Employers are not required to pay benefits for full-time employees; and, the independent contractor/consultant can be more discerning as to what type of projects to undertake while still maintaining a steady source of income.

Two occupations that are needed:

Private Chefs - There are several wealthy families who seek private chefs. I have three former students who have had jobs such as these and were sorry they resigned these positions. Private jets, yachts, and mansions are work sites for private chefs. Chef Jacqueline L. Frazer (left), who has catered parties for the rich and powerful, such as the Hearst Family notes: "It is a privilege to demonstrate your skills and artistic abilities to those who can truly appreciate fine foods and wines... One can earn a comfortable living."

Qualified Wait Staff - One of the most common complaints throughout the nation is the lack of professionalism and polish in the hospitality industry. A person or persons who can deliver trained professional staff to a large chain can become an instant millionaire.

Where are the Professional Opportunities?

Upon graduation from college, most students often either return to their hometown or stay close to the college. In this industry, it may be necessary to relocate to a new city in order to follow professional opportunities.

In 1997, the following areas were the hot markets:

1.) Bloomington, IL
2.) Cheyenne, WY
3.) Kalamazoo MI
4.) Nashville, TN
5.) Indianapolis, IN

Six years later (2003), they are:

1.) Myrtle Beach, SC
2.) Flag Staff, AZ - Utah
3.) Honolulu, HI
4.) Bainstable-Yarmouth, MA
5.) Panama City, FL

These results were based upon the following:

• market share of employed persons;
• market share of working women;
• market share of households with incomes of $25,000-$34,999;
• market share of households with incomes of $35,000-$49,999;
• market share of households with incomes $50,000 or more;
• market share of population by age;
• market share of food consumed outside the home.

* Source: Restaurant Business, October 1997 & October 2002

Also note, whenever there is growth in the restaurant industry, it follows that additional travel, tourism, and hotel personnel will be needed. This author recommends those seeking employment in the hospitality industry to investigate the Atlantic City area. As a result of the public's fear of traveling away from home, local travel/tourism destinations have reaped the benefits. One such area is Atlantic City. The casino industry has seen a boom in its economy. The New Jersey Department of Labor predicts the hospitality industry in that area will need approximately 4,000 new workers by 2003-2004.

Travel/Tourism

Several major airlines such as Continental, U.S. Airways, and Delta were forced to lay off several thousand employees. More recently, United Airlines was forced to seek Chapter 11 bankruptcy protection after a government loan was denied. Sadly, these airlines continue to have fiscal problems due to disputes with unions. Yet, airlines such as Southwest and Jet Blue are experiencing record-breaking profits.

The top domestic travel destinations in the United States are:

Top travel destinations abroad were:

According to the Department of Commerce, the number of international travelers to the United States held steady last year. The Commerce Department predicts a record 60 million international visitors will visit the United States by 2006. This would be a 32% increase over 2001.

Cruise Industry

According to ICCL (The International Council of Cruise Lines), the cruise industry has easily surpassed the 2001 record of carrying 6.9 million passengers worldwide. As of this writing, 7.4 million cruisers had sailed by the end of the fourth quarter in 2002. Since 1981, cruise passenger growth has increased an average of 8.4% annually*.

Some of the reasons for the boost in business were:

• Customers feel safer on a cruise
• Bargain fares
• Departure cities of cruise ships are more convenient to reach
• Security remains strict with Coast Guard protection.

*Source: Cruise Line International Association (which represents 24 cruise lines).

Conclusion

All indications point to the fact that the hospitality industry has stabilized and will meet pre 9/11 fiscal expectations, and in many instances exceed corporate expectations. The hospitality industry is one of the oldest and most successful industries in the world and shall continue to provide millions of employment opportunities.