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The problems of developing restaurant business in Kazakhstan

This article explores the restaurant business in Kazakhstan, which takes a special place in increasing revenue sources by attracting external visitors to the country. This is due to the possibility of timely and immediate investigation of the restaurant business market. Currently, in connection with the crisis, it is difficult to say that eating out, in restaurants and cafes is in great demand and is in the first place. Therefore, because of the consequences of the crisis, people began to save on food outside the house. The lack of staff and qualified personnel, the lack of modern culinary schools, above all, the transition from the Soviet catering, which ruled the country until the times of independence, to modern conditions of public catering is not easy, besides it requires a qualification technique and a specialized approach. The problematic aspects of management and marketing of the restaurant business area deserve a scientific interest, therefore this article is an actual scientific research of novelty and scientific and practical importance. The conducted analysis to identify the problematic aspects of the development of the public catering sector will allow management to make more effective decisions when planning the future activities of catering establishments where there is a high probability of success in the restaurant business. The developed proposals can be used to create state targeted marketing and organizational programs for the development and improvement of the restaurant business and the resolution of problematic parties.

Introduction

Due to the fact that in the history of the development of the society, the process of restaurant business is one of the most important places, this sphere has been continuously developed since ancient times and now the catering sphere has reached many heights, but still requires further improvement in the form of development of services and directions for improvement. Currently, there are many restaurants in the catering sector of Kazakhstan, and most of them are formed in large cities. Therefore, the competitiveness between restaurants also prevails in these cities. To be competitive in this area, restaurants must constantly improve the quality of services provided, keep a competitive price for products, and in various ways attract customers to themselves.

The requirements of the time to match the current stream of modern society. Therefore, in our country, various measures are taken to improve and develop various spheres of production. They also concern the catering business. From all the countries around the world, who came to the house to an unfamiliar guest or relatives, special attention was paid and high respect was shown, so the constant improvement of public catering services has now become an actual problem.

In the Middle Ages, the interests of holding events in crowded places were already being manifested. Therefore, the rich people organized evenings, where hundreds of guests were served. On such invitations, depending on the status of the different ranks of the guests, different food was offered, so the different services on one side were humiliating. The masters of high position, aristocrats, respectively, got the most tasty pieces of food. Usually in all places of public catering dozens of varieties of food were prepared, tables and food consumption tools were neatly covered, but spruce dishes were not exemplary, but by savage crude methods. In the role of forks, fingers were used, chunks of meat were taken from fatty soups. The knife performed two functions: they cut it and ate it. Ready meals were placed on wooden boards or arranged on equally cut pieces of old dried bread. In ancient times, even in the Middle Ages, few thought about hygiene and microbes. Food was stored on the shelves, and sometimes lay on the floor. Nobody knew how, in what conditions and at what temperature it is necessary to store food. As a result, without taking into account the difference between the rich and the poor from one to the other, various infectious diseases were transmitted.

Since the ancient time process of nutrition in the history of human development has played a particularly important role, the current state of the public catering sector has achieved much higher success, but many parties still require further improvements.

Discussion and Results

Public catering is the sphere of the national economy, which includes the preparation and sale of finished products and consumer services. Usually catering food in organizations, restaurants, canteens, buffets, as well as providing food on order from catering places to the house or workers and training places, etc. [1].

Currently, in the sphere of tourism, the peculiarity of the role of institutions providing services at the location of tourists has grown so much that the so-called catering sphere turns into a special sphere of services. The reason for this is that catering enterprises, along with catering services, provide other services, including accommodation, entertainment and health improvement, becoming enterprises with the highest rates of income from tourist arrivals. Being the main base of public catering in tourism, food enterprises plan and independently promote the development of tourism.

The restaurant business industry plays an important role in the working life of people, because every worker, leaving the house for work in the morning and returning only in the evening, obligatory for breakfast or lunch visits places of public catering. Therefore, the products sold in places of public catering directly affect the health of this part of humanity.

Public catering enterprises are part of the trading places of public and private organizations. Since ancient times the authorities have paid special attention to the development of public catering. A lot of restaurants and taverns in the time of the Soviet government were processed into canteens to feed workers and their families. The general development of public catering establishments is based on the development of the industry through the creation of highly automated enterprises that provide semi-finished products, finished products, canned and frozen finished products, also manufactured at specialized enterprises or in the relevant sphere of industry or production [2].

The growth of goods turnover and production of catering products is realized in two directions: by expanding the territory of the population served by the public catering system and increasing the share of consumption of catering products for each consumer served in this area in the total turnover of public catering establishments.

Tourism has an active influence on the economy of the country. Creation and functioning of economically active subjects in the sphere of tourism is inextricably linked with the development of road transport, public catering and other spheres that provide trade, medical and cultural services to the population. The acquisition of Kazakhstan's independence laid the foundation for regulating tourism activities and modernizing the historical and cultural heritage of the population [3].

Kazakhstan is a republic with more than 100 nationalities. The history of institutions of public catering from ancient times goes back to the habits and custom of receiving guests. Since long ago the guest has been given special attention, he was sitting in the honorable places of the house to the right of the owner

Intensive development of public catering establishments began with the advent of the Great Silk Road. From ancient times and in the Middle Ages from the Hemisphere to China, the system of crossing the caravan routes of Eurasia was considered the source of the emergence and development of trade and cultural ties between peoples. On these lands, large shopping centers were built, so travelers from different countries arrived here. It was impossible to accommodate all the tourists in the yurt, so inns and restaurants began to appear. In the inns, the most necessary services were provided: accommodation, meals, water services. On the trade routes were built caravan-sheds, for horses and camels special construction points were built [4].

The political situation determined the choice of the timetable for diplomats and traders. This also contributed to the emergence of tourism and catering business. The cities began to stand out for their places of business. In places with mineral waters, sanatoriums were built. With the development of therapeutic tourism began to develop mountain tourism and began to build places for tourists overnight [5].

So in Kazakhstan with the development of public catering a lot of tourist bases were built. Every year, despite the number of places for public catering, places of additional types of means of accommodation and services for tourists began to grow rapidly. At first it was impossible to keep track of the main and additional types of accommodation facilities in the catering business. Along with public catering places, private flats rented began to provide accommodation and services. So the emergence of new institutions of public catering and tourism in Kazakhstan is the beginning of the twentieth century.

Recently, the tourism industry in the restaurant business has become one of the useful businesses in the world. It simultaneously develops the sphere of tourism. And tourism, at one time, as an intersectoral complex of social and domestic infrastructure, plays a key role in the world economy. Therefore, in the near future will be its most important factor [6].

The restaurant business is an integral part of the tourist industry. Marketing tools of catering services have taken an important place in the tourism industry [7]. There is an opinion that the catering business reduces the profitability of developed competitive firms, since the development of new services, which often requires a number of additional costs, leads to an increase in advertising costs, and these activities require huge funds [8]. However, the competitive advantage is not always accompanied by a decrease in profitability. The most important competitive advantage of a firm is not due to extensive development, but by increasing the effective use of its constituent instruments, i.e. reducing costs, improving management by increasing the professionalism of employees, etc.

The influence of places of public restaurant business in educational institutions and other workers' organizations showed that for a long time every child and worker serving in places of public catering manifested himself in changing moods, the state of methods and methods of nutrition, tried to have fun, to be more polite, more attentive to each other in time of joint nutrition, showed a warm relationship and high respect [9]. These qualities helped people to be closer to others and to a higher mutual understanding, which ultimately leads to an increase in the efficiency of the work of everyone using the services of public catering places.

The economic growth of the country and the increase in the prosperity of the population create the attractiveness of the catering business market. Presently, the catering business is manifested as one of the potential and promising sectors of the country's economic development.

Business in the field of public catering is a kind of entrepreneurial activity, consisting of types of service services, based on the manifestation of attention and hospitality while maintaining the principles of catering when dealing with guests [10].

The display of high respect for the guests, in every possible way to achieve success in pleasing clients, to provide high-quality services to external visitors of the country and the internal population who are ready to use public catering services lead to high profitability of public catering establishments. This situation itself leads to the immediate development of the restaurant business in the country.

The restaurant business takes a special place in increasing revenue sources by attracting external visitors to the country. This is due to the possibility of timely and immediate investigation of the restaurant business market, a clear definition of customer needs and constant analysis of competitors' activities, proper assessment of their own capabilities and making strategically correct decisions than management in catering.

Restaurant business is a kind of entrepreneurial activity related to the production, processing, sale and organization of food consumption [11].

Methods

At present, there are a lot of restaurants in the restaurant business of Kazakhstan, and most of them are located in Almaty, so the competition between them in this city is high. To confront this struggle, restaurants need to improve the quality of services provided, maintain a competitive price for food products, and also in every possible way attract potential consumers and customers. Research in this area is engaged in marketing.

Management in the restaurant business is one of the leading places. To date, management problems in the restaurant business in Kazakhstan are relevant. Kazakhstani firms receive only the initial stage of experience in the field of management.

According to experts, per capita, the average cost of restaurant services in Kazakhstan, compared to other countries, this figure is much lower. For example, in 2016, in Kazakhstan, per person, the average out- of-home expenses, that is, in public places, amounted to approximately 15 thousand tenge. This Kazakhstan indicator is much lower than the corresponding indicator in other countries, for example, in the USA it was - 190 thousand tenge, in France - 125 thousand tenge, and in Germany - 60 thousand tenge [12]. As you can see, the lowest indicator is assigned to Kazakhstan. Lagging this indicator in Kazakhstan indicates that in the country with a high potential of the restaurant market there is not enough of its provision (Fig.).

According to the established state standards in the traditional classification of restaurants are divided into 3 classes: luxury, supreme and first. Each of them corresponds to the established and approved requirements. But today there is another modern division: elite, middle class restaurants and a number of cafes. In recent years, the public catering business interests and attracts investors from other areas of business. For institutions of public catering there is one main concept, as constant maintenance of inflow of clients. Therefore, many restaurants are located in the central places of passage of the population. This phenomenon is explained by the fact that guests and residents of the city prefer to spend their free time in interesting places in the central districts of the city. But in the catering business, there are also some reverse sides, which are shown in the table below in the analysis (Table).

Table

SWOT - analysis of the influence of micro and macroenvironment on the activities of restaurant business organizations

Opportunities

Threats

1 ¯

2 ¯

  1. Reducing the position of competitors
  2. Average competition
  3. Growth in the level of real income of the population
  4. Changing views on social standards of consumer demand
  1. Increased competition
  2. Toughening customer requirements for quality of services
  3. Changes in the macro environment (the dynamics of changes in the exchange rate, inflation, rising prices for products, depreciation, changes in the laws in the field of public catering)

Strengths

Weaknesses

  1. Location
  2. Affordable prices
  3. Specialized institutions (for example, pancake)
  4. Demand and interest of the consumer
  5. Availability of car parking
  6. The presence of air conditioning
  1. Lowly qualified personnel
  2. Narrow and modifiable assortment
  3. Lack of advertising
  4. Insufficient participation in competition

Common problems of catering organizations

  1. Ineffective advertising strategy
  2. Poor quality of service
  3. Narrow assortment
  4. Disadvantages in the menu for the client
  5. Insufficient desire for big business in the market of public catering

 

Continuation of Table

1 I 2

Suggestions

  1. Develop an effective advertising strategy
  2. Continuing professional development of the staff
  3. Growth of quality control of service
  4. Presence in the menu of own, firm dishes
  5. Reproduction and development of varieties of dishes separately for each day. Include days of national cuisine
  6. Offer natural natural remedies to tea
  7. Develop and frequently change (for example, every week) new menu views
  8. Continuous introduction of innovations
  9. Permanent offer of additional services
  10. Organization of family, corporate parties, parties for children
  11. Delivery of meals at home or at the workplace
  12. Organization of lunch dishes for target groups (children, students, etc.)
  13. Development of relationship marketing
  14. Concomitant to changes in the dynamics of market conditions

The structure of the restaurant business market has changed at all stages of its development. In the first half of the 90s, undoubtedly, the leaders of the restaurant business market were expensive restaurants and cafes. And it should be noted that they were visited in many ways by visitors with high and medium incomes. In subsequent years, the country's long-term economic growth has raised the standard of living and the state of the middle class, which has begun to make up for what was lost in the past. As a result, in recent years and the beginning of the global financial crisis, the development of the market has been driven mainly by the enterprises of the democratic segment: cafeterias, ready-to-eat boutiques, fast food preparation places on the roads, shopping places, etc. They reached significant heights in their income and the number of fast food places, their annual growth in quantity was 25-30 % [13]. This, in turn, led to a drop in the growth rate of the segment of elite restaurants.

Conclusion

Thus, in Kazakhstan it is possible to nullify the serious market experience and long-standing traditions of serving customers in the public catering sector. Along with this, there is no methodological base that would help in the restaurant business. Another common mistake of investors who came to the restaurant business from other spheres of business - they direct all their efforts and make bets on the national cuisine, which they know and understand. But this is not enough. In order to make the restaurant profitable, in order to attract and retain the target audience, it is necessary to create a targeted and competent marketing policy. Therefore, it is necessary to inform the public in advance about opening a public catering establishment, then, along with the retention of familiar customers, it is necessary to constantly attract new consumers and maintain a constant influx of interest in the institution.

However, nowadays, in connection with the crisis, it is difficult to say that eating out, in restaurants and cafes is in great demand and is in the first place. Therefore, because of the consequences of the crisis, people began to save on food outside the house. Moreover, the favorite dishes and a fairly high level of service are offered by a number of newly opened restaurants. Despite this, it's too early to talk about them as a successful project. Of course you do not want to believe in their decline in the market of catering business, but unfortunately this is a real possibility. The following concept has long been defined in the restaurant business market of the «southern capital»: a catering establishment is opening, they are fully informed about the opening, but they cannot attract and retain a sufficient number of customers.

The lack of staff and qualified personnel, the lack of modern culinary schools, above all, the transition from the Soviet catering, which ruled the country until the times of independence, to modern conditions of public catering is not easy, besides it requires a qualification technique and a specialized approach. The problem aspects of management and marketing of the public catering sphere deserve a scientific interest, therefore this article is an actual scientific research that has a novelty and scientific and practical significance

The study uses statistical data on average per capita expenditures in restaurant business places of different countries and on the dynamics of changes in the number of places of public catering in Kazakhstan. An analysis was carried out for 1 person of the average cost of restaurant services in Kazakhstan compared to other countries, in the course of statistical and literary review, a SWOT analysis was developed, which makes it possible to take into account the most problematic aspects of management and marketing of the catering industry. On the way of development of the restaurant business sector in Kazakhstan in the coming years, adhering to the conclusions and proposals of this scientific article in the activities of entrepreneurs engaged in restaurant business would lead this industry in our country to development and prosperity and it would be a source of high profit.

The conducted analysis to identify the problematic aspects of the development of the restaurant business sector will allow management to make more effective decisions when planning the future activities of catering establishments where there is a high probability of success in the restaurant business. The developed proposals can be used to create state targeted marketing and organizational programs for the development and improvement of the restaurant business sector and the resolution of problematic parties.

 

References

  1. Dajyrbekov, O.D., Altynbekov, B.E., Torgauytov, B.K., Kenesariyev, U.I., & Khaidarova T.S. (2005). Terminolohicheskii slovar po Strakhovaniiu i predotvrashcheniiu boleznei v mestakh obshchestvennoho pitaniia [Terminological dictionary on insurance and prevention of diseases in the places of public catering], Shymkent: Hasyr-Sh [in Russian].
  2. Liu, Dan. (2015). Study on the Service Quality Management Countermeasures of Catering Business. Conference: 2015 4th International Conference on Social Sciences and Society (ICSSS 2015), Pt 3Location. Paris, FRANCE: MAY 20-21, 2015.
  3. Rice, V. (2006). Kontrol izderzhek v restorannom biznese [Control over costs in the restaurant business]. Moscow: Creativ Holdinh [in Russian].
  4. Pikalev, A., & Maevskaya, A. (2004). Kak uvelichit dokhod restorana, bara, kafe [How to increase the income of a restaurant, bar, cafe]. Saint-Petersburg: Biznes-pressa [in Russian].
  5. Ehemen Kazakstan [Egemen Kazakhstan]. (2016. No. 17). [in Russian].
  6. McLauchlin, J., Jorgensen, F., Aird, H. & et al. (2017). An assessment of the microbiological quality of liver-based pate in England 2012-13: comparison of samples collected at retail and from catering businesses. Epidemiology And Infection, Vol. 145, 8, 1545-1556. Published: JUN 2017.
  7. Kim, Jewoo; Jun, Jinhyun; Tang, Liang (Rebecca), & et al. (2018). The Behavioral and Intermediate Effects of Advertising on Firm Performance: An Empirical Investigation of the RestaurantIndustry. Journal of Hospitality & Tourism Research, Vol. 42, 2, 319-337. FEB 2018.
  8. Sezgin, Erkan; Gode, Merve Ozgur. (2017).Local survivor vs. global brand: Behavioural intention and brand loyalty tales of fast food restaurants TOURISM, Vol. 65, 4, 406-421. DEC 2017.
  9. Park, Jungsun; Park, Jong-shik; Han, Boyoung & et al. (2017). Vulnerability of employees in businesses with fewer than five workers (micro-enterprises) to occupational safety and health problems. American Journal of Industrial Medicine, Vol. 60, 12, 10561065. DC 2017.
  10. Kim, Kathleen Jeehyae; Bae, Gumkwang; & Kim, Dae-Young. (2017). The Effects of Visible Customer Characteristics on Servers' Perceptions of Tipping: Potential Threats to Service Interactions. Cornell Hospitality QuarterlyVol. 58, 4, 400-408. NOV 2017.
  11. Cho, Meehee; Bonn, Mark A.; Giunipero, Larry & et al. (2017). Contingent effects of close relationships with suppliers upon independent restaurantproduct development: A social capital perspective. International Journal of Hospitality Management, Vol. 67, 154–162. OCT 2017.
  12. Jeon, Seongmin; Qi, Jiayin; Wang, Jiyuan. Do local consumers behave differently from visitors? An exploratory study in online group buying. Electronic Commerce Research And Applications, Vol. 25, 95–104. SEP-OCT 2017.
  13. Hensel, Kelly. Management Tool Enhances the Business Side of Restaurants. Food Technology, Vol. 71, 9, 21–21. SEP 2017.

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