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1.0 Outlines the ‘Space’
Figure 1.0
The pale shade of the wood used to construct the bar not only gives the sense of type of
beer but also can be connected to brewing as this is a natural process much like the wood
which was chosen as the primary construction material. Furthermore, the designer’s
choice of lighting helps denote a strong feeling of the likeness of beer and warmth which
helps positively affect the ambiance within the servicescape. Furthermore, the mirrors rest
of the servicescape across from the bar area. As well as this the choice to have bottles of
Mac’s beer sitting all about the shelving area not only promotes the primary brand of beer
served in the establishment but also further remind customers walk in that the business is
primarily a ‘brew bar’.
In contrast to these points however, the shelving behind the bar is mismatched and quite
cluttered. Furthermore, the open beer pipes under the bar top are very distinctive of an
industrial design style, which conflicts, with that of the natural design style. In
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conjunction to this, the starburst clock behind the bar is very reminiscing of a mid-century
modern retro design style from the 1950’s so once again falls out of place within the
juxtaposition of both natural and industrial type design styles (BBC, 2016).
Figure 1.1
The dining room within the servicescape as with the bar area promotes the natural process of
brewing beer through the designer’s choice of using wood as the primary construction
material as well as the shades of wood chosen. Moreover, the large windows within the
dining area provide lots of natural light that further contributes towards the link with brewing
as a natural process.
In contrast to these points however, as with the bar area of the servicescape there is quite a
juxtaposition of different styles. The dining room as well as having a natural style also uses a
classical style shown with the choice in electric lights and a modern design style as associated
with the stick sculpture in the centre of the dining room. Furthermore, the beams are quite
typical of an industrial style and the legs facing inwards on tables facing inwards is
associated with a Scandinavian style. The choice of tables and chairs are eclectic which
means they are from a wide range of different styles. The use of minimal table settings, space
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between the tables and minimal wall decoration is linked to minimisation and an open floor
plan that is associated to mid-century modern styles in the 1950s (BBC, 2016).
1.1 Outlines Utilities
Utilities within a fully functioning business include water, gas, electricity and water (which
also includes waste or sewage). These are generally covered under the buildings warrant of
fitness. It is generally the building owner’s responsibility/or the lease owner’s responsibility
to ensure that all these utilities are compliant with all legal building regulations. This is done
by the building owner to engage due diligence before opening up a business to the public.
Due diligence is defined as the minimal degree of effort required to be carried out by the
building owner in order to ensure that all building regulations (which in this case would be all
utilities) are up to both legal and industry standards (TechTarget, 2016). This report
recommends that before Mac’s Brew Bar is transformed into Miller’s Contemporary
Licensed Diner that a structural engineer be employed to comment on the utility supply to the
building. This will ensure that the new business meets all the legal requirements including
Building Regulations 1992 and The Building Act 2004.
1.2 Outlines Theme and Menu
The design style of the new Miller’s Contemporary Licenced Diner is going to be based
around the 1950’s era. The layout of the diner will use an open floor plan as much as possible
by removing any none supporting walls. There will also be a small mezzanine level for
upstairs dining which was quite popular during the 1950’s period. The floor of the business
will be vinyl or porcelain enamel tiles and patterned with either a bold chequerboard pattern,
as was the style of diners at the time. Tables within the diner would feature chrome elements
(most likely the base) and the tops of the tables would probably be made of some type of
plastic such as Formica. Chairs or stools featured with the tables would also consist of a mix
of chrome/Formica and would be padded with vinyl-covered cushion. Other furniture within
the servicescape could include couches or arm chairs with fabric covered in either abstract
patterns such as polka dots or science inspired imagery or with animal print. Primary colours
within the servicescape would be bright bold colours such as either red, lime green, or yellow
or in ice cream shades such as pistachio green, bubble-gum pink and pale blue. Deco
displayed on the on the walls would feature retro/vintage wall art from the 1950s period such
as metal edged pictures of Cadillacs, poster laminates of 1950s musicians and neon signs.
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The food served in the establishment would be simple but as the same typical of food served
diners during the 1950s era. This may include but is not limited to Burgers, fries waffles,
pancakes, hotdogs, hoagies, sundaes and milkshakes. All items within the menu would be
accompanied by a retro styled type name.
1.3 Outlines Purchasing
Setting up a hospitality business is an expensive undertaking. Consequently, purchasing
furniture, fixtures and equipment (FFE) is an important purchasing consideration. Therefore,
the purchasing function is vital because it needs to maximise the ‘value for money’ concept
by the purchasing of materials that are both durable, serviceable, suited to the décor and skill
levels of the staff. Therefore, when purchasing FFE it is vital to consider:
• The budget…how much money is reserved for purchasing FFE
• The décor and menu…this dictates the style of furniture and the equipment needed to
manufacture food and beverage items.
• The skill of the staff…this ties into the menu and its equipment
• The cost of equipment/décor items…. within our allocated budget
• The source of the supplier…. their reputation, after sales service, business longevity,
guarantee/warranty options, location
• Replacement of parts/and or item (e.g. chairs)
• Durability…will the item withstand constant use (abuse)
Often companies use preferred suppliers. A preferred supplier is a supplier who has been
investigated by a company and approved. When a company needs services, it turns to these
suppliers first, which means that being on the preferred list can put a business in a powerful
position. As a general rule, only really large companies and institutions use preferred
suppliers, and people must apply to enter the preferred program. There are several qualities a
company looks for in a preferred supplier. Reputation in the industry is certainly important,
as are issues such as on time performance, reasonable costs, and high quality of products and
services. Suppliers also need to be fully licensed, bonded, and insured, as applicable, with
ample evidence of certification and experience in the area they specialize in. Business
practices by a supplier may also be important. A company that wants to promote
sustainability, for example, will only use suppliers with vetted environmental practices and a
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demonstrated commitment to environmental stewardship. Likewise, a religious company
might prefer to use suppliers that share its religious beliefs (Conjecture Corporation, 2016).
Many companies also expect some concessions from preferred suppliers. By adding a
company to a preferred list, a company is saying that this company will be its first resource
for goods and services, and that it will not look elsewhere unless a supplier cannot provide
the needed services. In return, a company may ask for discounts from the supplier, and for
other special treatment, as the company considers itself a very important customer. Some
companies enter what are known as a preferred supplier agreement, a contract between a
preferred supplier and the company that is intended to spell out the terms of the relationship.
Having such a contract can be a very good idea, as it ensures that everyone understands what
the expectations are, and it can lay the groundwork for legal recourse if a problem develops.
This type of contract should be read carefully by both parties to confirm that there are no
surprises in the terms of the contract. The procurement department often manages
relationships with preferred suppliers, and it has a supplier list which it distributes to other
departments. When people need something, they are expected to see if a supplier on this list
provides it before looking at outside suppliers (Conjecture Corporation, 2016).
1.4 Outlines Gantt
A Gantt chart is a systematic planning tool that allows for multiple tasks to be completed
simultaneously. Consequently, using a Gantt Chart can save time and money. Gantt charts
began a ‘paper versions’ but contemporarily they are part of many computer systems and
software. Microsoft’s Project Manager exemplifies a commonly used ‘e’ version of a Gantt.
A Gantt chart usually lists tasks to be completed vertically and their time frame for
completion horizontally; Refer Figure 1.3 (K, 2015)
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Figure 1.3 (K, 2015)
Gantt Charts not only save time and money but also have the following advantages:
• Enable quick information sharing
• Facilitate quick changes and sharing of change
• Avoid single person knowledge
• Streamline operational thinking
• Provides ‘at-a-glance’ overview, timings, work being completed/anticipated.
In contrast to the many advantages of using Gantt Charts, there are some disadvantages when
using this tool:
• Gantt Charts do not indicate task dependencies - you cannot tell how one task falling
behind schedule affects other tasks.
• Gantt charts are developed early in the planning stages of a project which means there is a
good chance the project will change and the chart needs to be updated. Amendments to
the chart can take a lot of time.
• Big projects businesses may need to hire specific managers to look after the details of the
project, something which could be costly for small businesses that don’t have an in house
project manager
• Don’t show the whole picture – Gantt charts show what tasks need to be done and the
time they should take. They do not show how much work each task will involve or how
many people/resources each task will require.
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(Pronto Marketing, 2015)
History of the Gantt Chart
The first Gantt chart was first devised by Karol Adamiecki in the mid-1980s who was a
Polish engineer running a steel works in Poland and had become interested in management
ideas and techniques. Approximately 15 years after Adamiecki , Henry Gantt, an American
engineer and management consultant, created his own version of the chart and that is the
version we use today. Consequently it was Henry Gantt whose name was to become
associated with charts of this type (Gantt.Com, 2016). Used by project managers throughout
the globe, the Gantt chart is a way of planning and controlling work done during a project;
and allows easy recoding and monitoring of progress – whether the project is ahead or behind
schedule. It is thought that Gantt’s product won popularity over Adamiecki’s because Gantt’s
was produced in a language more accessible to western industry. The most high profile early
use of Gantt charts was during the First World War (Trainer, 2012). They have since been
used in projects such as the construction of the Hoover Dam and the US Interstate highway
network. When personal computing took off in the 1980s, Gantt charts ability to be easily
used digitally and their usefulness in developing digital product meant their use spread
exponentially (Trainer 2012).
2.0 Outlines Basic Flow Characteristics
The concept of flow relates to two key elements, the flow of people and the flow of product
within s known environment. Within hospitality businesses, the flow of people relates to the
way both customers and staff negotiate the ‘servicescape’ (Lin, 2004). Obviously, each group
has different needs within the ‘servicescape’ (Lin, 2004). As a generalisation, staff need to
work within and environment that is:
• Secure
• Integrates the necessary technology to assist their tasks
• Reflects the décor theme and ambient style of the restaurant
• Has a demonstrated flow pattern that promotes efficiency
This last point may be the most important. A Simple example that demonstrates this is how
wait staff will enter the kitchen area, or collect food items for customers from the ‘pass’.
Many restaurants have two doors into the kitchen space. One door is specifically for entry
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whereas the other door is used only for exit. This knowledge is passed to staff within their
basic orientation training and is valuable information. This is because knowing this basic
element of flow helps staff to negotiate the environment and avoid collisions, spill food and
break plates, all activities that would add an element of professional lack from a guest’s
perspective COST.
Another example of the front of house flow is the sectioning of the dining space and its
allocation to different staff. This allocation holds benefit for customers as well. Guests can be
seated simultaneously in different sections, but avoid protracted waiting because each section
is ‘manned’ with staff, thus promoting efficiency in order taking and other guest
communication. A similar pattern of division of labour through the allocation of sections is
evident within the kitchen. Here staff work in ‘parties’ (Escoffier Online, 1995) allocated by
either cooking method or food type. Exemplifying this are well known ‘sections’ of a
kitchen; the garde-manger (or cold food section aka the larder), the pastry section, and the
sauce section. These allocations promote efficiency of product and staff flow, and also
contribute to food separation and hygiene, important considerations in a hospitality business.
Guests within ‘servicescapes’ (Lin, 2004) require a similar flow logic, but a combination of
the staff and signals from the environment often guide their flow. These signals are subtle and
overt. This is best shown within the process of ‘meet/greet and seat’. Within this process a
staff member literally guides the guest through these steps, thus directing their flow towards
specific areas in the ‘servicescape’ (Lin, 2004), namely seated dining areas or the bar. Other
more tangible elements in the “servicescape” (Lin, 2004) direct guests. There are obvious
symbols and signage that prompt guest flow. An obvious example is toilet signage.
The flow of product primarily impacts upon staff. Essentially, raw materials are delivered to
the business, stored, then manufactured into refined products, which are often cooked or
finished in another manner, and then delivered to guests. Therefore, the flow of product
impacts om the back of house staff and the front of house staff, and their convergence often
occurs at the ‘pass’. The ‘pass’ is where the finished food product leaves the kitchen and is
served directly to the guest. This area (the pass) is a critical flow area and training needs to be
given to staff so that efficiency of flow is maximised and accidents and mishaps at the pass
are minimalised. Whether flow occurs in a kitchen environment of within the dining room
and bar, logic suggests that the shortest route from the point of departure to the point of
delivery is the most efficient flow path, i.e. the straight line. However, within hospitality
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‘servicescapes’ (Lin, 2004) items of décor and equipment often impact on logical flow
efficiency. Consequently, each business needs to consider the following elements within their
design flow considerations:
• The layout requirements as dictated by design style
• The efficiency of staff/customer flow
• The requirement for profit and break-even levels
Clearly there is no easy formula to maximise flow so professional hospitality managers need
to evaluate the balance the elements noted, without impeding yet maximising guest
experience while enhancing profitability.
2.1 Integrates Basic Flow Characteristics
Flow can critically reflect on the movement of people and product within hospitality
establishments. The flow chart below outlines the general flow of people/product within the
front of house service space within Miller’s Contemporary Licenced Diner.
As 2.1 and 2.0 demonstrates, flow is important for customers. When customers feel
comfortable within their ‘flow experience’ they will, most likely feel positive. Feeling
positive within retail restaurant ‘servicescapes’ (Lin, 2004) is important because people tend
Guest/s
Arrives
Staff greet,
meet and seat
in the bar
Staff offer
options, direct
to table or
drinks.
Guest/s
are
offered
menu
Dine now
Drink at bar,
dine later Waiter takes
drink/starter
orders and
delivers to
kitchen/bar
Guests have
option to
order
drinks/starter
Waiter
returns with
drink/starter
orders then
takes orders
for
entrees/main
Waiter
returns with
entrée/mains
orders and
asks if any
more drink
orders are
needed
Waiter takes
orders for
entrees/mains
to kitchen
Waiter
offers
suggestions
such as
specials of
the day
Waiter takes
any other
drink orders
to bar
Waiter returns
with drink orders
and takes
dessert/coffee
orders
Guest/s go to front
desk and pay bill and
are thanked and
farewelled
Tables to be
serviced
arranged by
sections
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to spend more when they are positively motivated. This is important because the goal of any
for profit business reflects the need to increase profit, reduce costs and increase market share.
Having a logical and positive flow experience for guests will enhance these goals.
2.2 Integrates Aspects of Design Flexibility
Servicescapes are important to restaurant businesses because they generate revenue, therefore
the concept of a flexible servicescape is important because business owners and managers
realise the need to maximize potential profitability. At Miller’s Contemporary Licenced
Diner, the dominating servicescape format will be an open floor plan with fixed dining
booths down the interior side of each parallel wall and tables with chairs strategically laid out
across the centre of the dining room for á la carte style dining. Behind the service counter will
be the bar and glass food display cabinets with chilled pre-prepared food. The counter will
have bar stools lined along the front of it for customers who wish to consume food/beverages
at the bar.
However, to maximize servicescape flexibility the dining space may be converted for ‘other
use’. Exemplifying this is the portability of all the tables and chairs within the central dining
area of the servicescape. Tables and chairs can be either rearranged into a different layout
format or stored out the back to make much more space within the establishment to make it
available for hire for events such as cocktail parties, 21sts, bachelor parties and even
children’s parties. In addition, the establishment has a full range of equipment stored in the
back of house such as bain maries, benchtop food warmers, electric buffet ranges and food
pans in order to convert the service counter into a fully equip buffet style dining area.
2.3 Balance of Customer/Employee Design Perspectives
The needs of customers and staff within a “servicescape’ (Lin, 2004) differ,
yet hold commonality. Both groups need a logical flow pattern that incorporates their ‘needs’.
Need for guests, within restaurant servicescapes, often reflects their sense of aesthetic. The
restaurant décor, ambiance and environment need to positively stimulate guests encouraging
their participation (and spending) within it. While staff appreciate the environmental
aesthetic, their needs are often pragmatic.
Within Miller’s Contemporary Licenced Diner, the servicescape’s aim will be to stimulate
customers based on smell, music, art, colour and overall ambiance. The smell within the
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servicescape will be both fresh/crisp and delectable with the scents/smells of freshly prepared
diner cuisine. The smell will also be exemplified by the room temperature which will be set
according to seasonal/weather type basis so they customers feel comfortable and at home.
The background music (primarily from a jukebox) will be set accordingly to the primary
market of customer within the diner at the time (usually determined by time of day/day of
week). This will ensure the music meets the tastes of the appropriate type of customer rather
than irritate them which can reflect on them spending less. The colours featured within the
diner will be bright and vivid so they catch the attention of the customers while at the same
time putting the customers in a pleasant/cheerful mood which results in them wanting to
spend more. The art/décor within the establishment will be contemporary but catchy which
makes customers want to ‘ooo’ and ‘ahh’ while at the same time still match the colour
schemes within the diner. Rationale behind choice of décor is further explained within 3.0.
3.0 Clear Rationale for Décor
The servicescape should be compatible with the guests’ expectations. Hence, service
providers have to define their target customers prior to determining the overall layout and
design of the servicescape. The servicescape is congruent to guest taste therefore we need to
know the likes and dislikes of our target market which can generally be found out by talking
to/communicating with the public and building relationships between the business and the
potential customers. Customers liking/enjoying the ‘servicescape’ is important because when
customers feel positive they tend to spend more (Lin, 2004).
Consequently, Miller’s Contemporary Licenced Diner identifies the following two
demographics as its primary market and secondary target markets.
• Smart Starters (PMP Limited, 2009) – Chosen as the primary market this particular
demographical group tend to live in high density populated areas around the CBD for
example Parnell, Grafton, Mount Eden, Newton, Freemans Bay and the Waitemata
Harbour. These specific market are most likely to be either full time students/or have
recently graduated and be single or living on their own or flatting as part of a group.
Usually under the age of 30 and less likely to own and car and more likely to move
around within living arrangements, this group tends to relatively spend more time at pubs
and clubs than other groups (PMP Limited, 2009).
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• Solid and Secure (PMP Limited, 2009) – Chosen as a secondary market this
demographical group is characterised by well off families who generally will spend more
than the average home and family. These are classified as families with children who are
more likely to be living in a home built between 1990 and 2010 (PMP Limited, 2009).
The décor within Miller’s Contemporary Licenced Diner will be designed in accordance to
the characteristics of both target markets. As ‘Smart Starters’ tend to be mostly current or
former students they will looking for a ‘servicescape’ which allows them to congregate with
co-students or other social groups of friends. The table setup will primarily be arranged to
cater for mid to larger groups of people and having the diner as a licensed premise will cater
to the ‘Smart Starters’ alcoholic drinking needs when socialising or unwinding from studies.
The wall décor in the diner will be catchy to the eye and at the same time appealing to
targeted demographic markets. The seating of the diner will feature both stools (at the
counter), chairs and both type seating which will all be comfortable and set within an open
seating plan to ensure customers can move about freely within the establishment. The colours
of the diner will be vibrant and colourful which will match the tastes of both the primary and
secondary target markets (colours discussed further on in report). The 1950’s jukebox will be
set to play a variety of different music styles depending on the time of the day/evening and on
which type of customer dominates the diner during those times to make sure it sets the right
atmospheric tone. The lighting within the diner will be set to match the shade of colours
within the ‘servicescape’, which will further add to the ambience of the furniture, décor and
colours within Miller’s Contemporary Licensed Diner.
4.0 Outline of Basic Colour Characteristics
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Figure: 1.4 (Crowley, 2009)
Modern Design relies on Newton’s colour wheel (refer to figure 1.4). The NWC is divided
into:
Primary colours: Yellow, red and blue.
Secondary colours: Orange, green and violet.
Tertiary colours: Red-orange, orange-yellow, yellow green, green-blue, blue violet and
violet-red.
Two colours not on Newton’s wheel are black and white which means it is self-explanatory
that there are not considered colours. This is supported by Murmson (2016) who says the
correspondence of a colour to a specific wavelength is called spectral colour. White and black
are excluded from this definition because they do not have specific wavelengths. White is not
defined as a colour because it is the sum of all possible colours. Black is not defined as a
colour because it is the absence of light, and therefore colour. In the visual art world, white
and black may sometimes be defined as distinct colours. This is different from the concept of
spectral colour in physics.
Colour harmony is important in the ‘servicescape’ (Lin, 2004). Lin (2004) noted that research
has shown that different colours can stimulate a variety of personal moods and emotions,
which in turn can make that person form either a positive or a negative response in evaluating
a servicescape. Colour specialists often rely on two themes to achieve colour harmony.
• Analogous colours
• Complementary colours
Analogous colours are ‘side by side’ colours on the colour wheel e.g. yellow-green, yellow
and yellow-orange. Complementary colours are opposing colours on the colour wheel e.g.
red, green and red-purple. However, in contemporary design colour combinations often
include unusual and subjectively different combinations that are often enhanced by
‘structure’ (the building design) and textual elements including fabrics, art, furniture, carpets
and other textiles.
4.1 Link of Colour to Concept
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Two of the colours that will be used in the front of house in Miller’s Contemporary Licenced
Diner are as follows with colour images and description information is sourced from Resene
(2016).
Resene Pink Lace – This shade of pale pink is a hearts and roman pastel pink that has a white
tone and is found in the red colour palette.
Resene Acapulco – This pale shade is a deep water green and a 1950s nostalgic pastel type
colour. It carries a light tone and is found in the green colour palette.
These Resene colours fall within complementary constructs with each other. This because
with one falling within a red palette and the other falling within a green palette they fall
within colours which are situated opposite each other on Newton’s Colour Wheel (Crowley,
2009). Traditionally as red is a primary colour found on the colour wheel, this means that the
Resene Pink lace will be/one of the primary colours used in Miller’s Contemporary Licenced
Diner’s FOH. Whereas, green is found to be a secondary colour in design so therefore the
Resene Acapulco colour will be a secondary colour featured in the FOH (Crowley 2009).
Both of these colours chosen are of pastel type shades that have been quite predominantly
chosen in 1950’s interior design. Pastel colours that were particularly popular in the 1950s
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were pink, turquoise, mint green, pale yellow and blue. Pastel colours were/are commonly
used extensively throughout essential elements throughout the FOH in 1950s styled diners
including the tables, seating, counters, walls, floors, ceilings, décor and even the lighting
(Planet Retro, 2016). The 1950s saw the explosion of the neon sign, and even a lot of non-
electrified text, still hinted at some element of a neon glow. On the other hand, interior design
and fashion saw much more use of pastels, in blue, green, pink, and yellow. Tables and chairs
came in pastel blue, pink and yellow often with a matching pastel checkerboard floor
(George, 2014). Below are some examples of pastel colours being used in 1950’s style diners.
(Pinterest, 2016)
The above image features the Empire Diner in New York. They have used pastel pink across
the front of the service counter and on top of the bar stools and in the neon lighting above the
service counter. Also used are shades of pastel turquoise/teal also on the bar stools and the
neon lighting which complement each other.
(Pinterest, 2016)
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In this diner, pastel teal has been used on the seating whereas shades of pastel pink have been
used on the walls, ceiling and floor that not only sets the primary colour constructs but also is
reflected within the lighting of the ‘servicespace’ as well.
(Pinterest, 2016)
Within this diner, the designers have used a mix of pastel pinks and pastel blue throughout
the seating, walls, lighting and other décor within the establishment.
4.2 Integrates Psychology of Colour Use
Constructs of colour and their meaning are enculturated constructs. We learn colour and its
meaning from our parents, peer groups and educators. Colours hold culturally specific
meaning for example in Western cultures the ‘colour’ Red is the colour of passion and
excitement. It has both positive and negative associations — danger, love and excitement.
Red is also associated with power and has some religious undertones when used with green to
represent Christmas.
As well as conveying meaning, colours also convey emotion. Exemplifying this are ‘sayings’
like ‘red with rage, green with envy, white as a ghost. Lin (2004) recommends that these
colours are integral to positive responses from consumers. For example, research showed that
consumers react more favourably to a blue environment in retail settings and had higher
simulated purchase rates. It was also determined that colours can influence people’s
emotional pleasure more strongly than arousal or dominance (Bellizzi & Hite, 1992 as cited
in Lin, 2004). Further research as cited by Boyatzis and Varghese (1994) in Lin (2004), found
that children often relate positive emotions with light colours and negative emotions with
dark colours.
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Research shows that levels of aggression are often influenced by colour. Drunk Tank Pink is
a shade of pink paint that psychologists used to paint jail cells in the 1970s. In an experiment
in the 1960s, they found that schoolchildren were better behaved when they happened to
learn in classrooms that were painted bright pink (Morton, 2016) They were intrigued by the
finding, and began exploring whether the colour might be useful in other areas. Two naval
prison officers ultimately discovered that naval prisoners were much calmer and better
behaved after they spent fifteen minutes in cells painted with the same colour. The cells,
otherwise known as drunk tanks, gave the colour its new name. There are two possible
explanations for the effect. The first is that people associate the colour pink with femininity
rather than masculinity, which in turns primes them to behave less aggressively. The second
is that there is something about this particular shade of pink that interacts with our bodies to
weaken us. Some researchers have argued, for example, that the colour stimulates the
production of melatonin, which causes us to become drowsy (Morton, 2016).
These positions suggest that colour is important psychologically. It can enhance consumer
positivity, a mediator of their consumption as well as well as after mood. Colour and its
impacts are important ‘servicescapes’ considerations (Lin, 2004).
4.3 Integrates Texture/Colour Dynamic
Continuing from the previous section, the report section goes into a further physiological
description of the previous two colours chosen for Miller’s Contemporary Licenced Diner as
described below:
Resene Pink Lace – This shade of pastel pink evokes openness and relaxation within the
customers. Pastel pink is sedating and calming and contains both the passion and power of
red softened with the purity, openness and completeness of white. This shade of pink will
calm and reassure customer’s emotional energies, alleviating feelings of anger, aggression,
resentment, abandonment and neglect. The pastel pink colour will put customers in touch
with their nurturing and giving side or in this case influencing them to want to spend more.
This shade of pink is less saturated than your standard primary colours which makes it feel
light, soft and calming while working well with neutral colours to create a feeling of
earthiness and sophistication (X-Rite, 2015).
Resene Acapulco – This shade of pastel green/blue helps to open the lines of communication
between the heart and the spoken word. It presents as a friendly and happy colour enjoying
life. It heals the emotions creating emotional balance and stability and in the process it can
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appear to be on an emotional roller coaster, up and down, until it balances itself. A
combination of blue and a small amount of yellow, it fits in on the colour scale between green
and blue. It radiates the peace, calm and tranquillity of blue and the balance and growth of
green with the uplifting energy of yellow (X-Rite, 2015).
As well as colour, an equally construct to consider within interior design is texture. Below are
two chosen textures to be used in the design of Miller’s Contemporary Licenced Diner’s FOH
‘servicescape’:
Chrome – Chrome plating has been a common textual element used in 1950s interior design.
In particular, it has been used throughout diners on seating, tables, trimming and other deco
rational elements throughout the ‘servicescapes’ in establishments. Chrome will be ‘bright’
when the substrate is highly polished and coated first with bright nickel. It can however
appear ‘satin’ like when a ‘satin’ nickel coat is pre-applied. Satin chrome is currently a
popular treatment for matching to polished stainless steel or brushed aluminium fittings.
Chrome has an almost “blue” hue and gives a sense of crisp cleanliness and ‘coolness’.
Contemporary’ doesn’t have to be ‘cold’ and ‘bleak’. Chrome creates warmth while
maintaining a contemporary edge (Decoist, 2016).
Linoleum – Often confused with vinyl, real linoleum is much older, much more
environmentally friendly and much cooler than the dowdy stuff that grandma had in her
kitchen. Frequently used as a textual component for flooring in 1950s dining establishments,
this glazed, shiny and smooth material was usually displayed in a chequered type pattern
which made the FOH area of the ‘servicescape’ all the more aesthetically appealing to the
customers. Furthermore, linoleum can come in a wide variety of textural appearances
including a stone and a tiled effect, and the popular round stud tile; and The Rubber Floor
Store which has smooth, bubbly and round stud options in many colours. One of the UK’s
major lino manufacturers is Armstrong which, in recent years, pioneered what it is calling
Lino Art, where flakes of shiny metal have been integrated into the lino to give it a warm
sheen (NIRGOS, 2016).
5.0A Outlines Rationale for Building
Combined with the information in 5.2 (Outline of Building Act), this section provides an
overview of the intent of the Building Act. The Building Act and its consent process is outlined
below.
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5.0B Outlines Rationale for Planning
Currently Auckland City has two ‘plans’ that impact on ZONING. They are:
• The Isthmus Plan – relates to the general geographical area
• The Central Plan – relates to the central city (CBD)
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Between these two plans 10 different zones are identified, but zoning can be distilled into the
following two basic concepts:
• Business/Commercial Zoning
• Residential Zoning
Difficulty can occur when businesses want to establish a restaurant (or similar) within a
residential area. When this occurs issues contained with the Resource Management Act
(RMA) must be considered. The RMA will have a profound impact on business plans and
will add both complication and expense.
According to the Auckland City Council zoning map D09, Nuffield Street falls within the
Business Activity Zone (Auckland Council, 2016).
5.0C Outlines Rationale for Environmental Health
Auckland city (2016) as cited in class notes defines environmental health as those aspects of
human health. Including quality of life, that are determined by physical, chemical, biological,
social, and psychosocial factors in the environment. It also refers to the theory and practice of
assessing, correcting, controlling, and preventing those factors in the environment that can
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potentially affect adversely the health of present and future generations. This definition is
important because it is comprehensive and is pro-active in its view.
Areas considered within environmental health given by the Auckland City Council include:
• Food Safety
• Noise
• Contaminated Sites
• Other premises e.g. hairdressers, tattoo parlours, funeral parlours
• Housing
• Auditing
• Water Quality
• Wastewater
• Hazardous Substances
• Disease Control
• Health Nuisances
• Policy
From this list hospitality, food and beverage and beverage businesses are most interested in:
• Food Safety
• Noise – Noise levels are monitored/controlled and restricted by the city council. Often
noise levels are responded to by public complaints.
• Water Quality – This area is covered within the buildings warrant of fitness (see 1.1).
• Waste Water – As with water quality.
Food Act 2014
This Act replaces the previous Food Act 1981 and its purpose is to:
• Restate and reform the law relating to how persons’ trade in food
• Achieve the safety and suitability of food for sale
• Maintain confidence in New Zealand’s food safety regime
• Provide for risk-based measures that
(a). minimize and manage risks to public health
(b). protect and promote public health
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• Provide certainty for food businesses in relation to how the requirements of this Act will
affect their activities
• Require persons who trade in food to take responsibility for the safety and suitability of
food
(Parliamentary Counsel Office, 2016)
HACCP
Hazard Analysis and Critical Control Point (HACCP) is an internationally recognised system
used to identify and manage significant food safety hazards, and ensure food safety for your
business. HACCP can be used throughout all stages of the food chain, from primary
production to final consumption, forming an important part of risk-based food safety
programmes, such as:
• Risk Management Programmes (RMPs)
• Wine Standards Management Plans (WSMPs).
The principles of HACCP, as defined by the Codex recommended international code of
practice are:
1. Conduct a hazard analysis.
2. Determine the critical control points (CCPs).
3. Establish critical limits for each CCP4. Establish a system to monitor the control of the
CC.P
4. Establish a system to monitor the control of the CCP.
5. Establish the corrective action when monitoring indicates that a particular CCP is not
under control.
6. Establish verification procedures.
7. Establish documentation concerning all procedures and records relevant to the HACCP
principles and their application.
(Ministry for Primary Industries, 2016)
Within Miller’s Contemporary Licenced Diner, the business will effectively manage food
safety within the business by making sure all staff strictly abide to the Food Act 2014.
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Furthermore, the diner will establish a comprehensive HACCP system to ensure all
food/beverages prepared/served within the establishment are fully safe for customer
consumption.
5.1 Outline of Building Act
The Building Act 2004 provides the framework for New Zealand’s building control system.
When reading the Building Act it is important to take account of the Building Amendment
Act 2005 and any subsequent amendments.
In New Zealand, the building of houses and other buildings is controlled by the Building Act
2004. It applies to the construction of new buildings as well as the alteration and demolition
of existing buildings.
The Building Act 2004 has repealed the Building Act 1991 and introduces a number of
changes to the law governing building work. These changes are introduced in stages. Some
have already taken effect, but others will be implemented over the next few years.
The Building Act has five parts:
Part 1: The purpose and principles of the Building Act, together with an overview, and
commencement dates for various provisions and definitions. These sections provide an
important reference point for reading and interpreting the Building Act.
Part 2 (and Schedules 1 and 2): Matters relating to the Building Code and building work (for
example, building consents).
Part 3: Sets out the functions, duties and powers of the chief executive of the Department of
Building and Housing, territorial authorities, regional authorities, and building consent
authorities. It also deals with the accreditation of building consent authorities and dam
owners, and product certification.
Part 4 (and Schedule 3): Matters relating to the licensing and disciplining of building
practitioners.
Part 5 (and Schedule 4): Miscellaneous matters including offences and criminal proceedings,
implied terms of contracts, regulation-making powers, amendments to other enactments and
the repeal of the Building Act 1991, and the transitional provisions from the Building Act
1991 to the Building Act 2004.
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When is a building consent required?
The Building Act (Schedule 1) sets out certain building work that does not require a building
consent. This is often referred to as ‘exempt work’. However, it is important to note that all
building work, whether or not it requires a consent, must be done to meet the standards of
performance set by the Building Code.
Some basic building, such as laying a patio or installing kitchen cupboards, does not require a
building consent. Most building work, however, does. The lists below provide a summary,
but check with your local council (territorial authority) to be sure. Plumbing and drainage are
likely to require a building consent. Some earthworks may also require a building consent or
other approvals.
Examples of work that does require a building consent:
• Structural building - additions, alterations, re-piling, demolition
• Plumbing and drainage (except repair and maintenance of existing (using comparable)
components)
• Relocating a building
• Installing a wood burner or air-conditioning system
• Retaining walls higher than 1.5 meters
• Fences or walls higher than 2 meters, and all swimming pools and their associated fences
• Decks, platforms or bridges more than 1 meter above ground level
• Sheds greater than 10 square meters in floor area
Examples of work that does not require a building consent:
• A patio or deck at ground level
• Garden trellis less than 2 meters’ high
• Maintenance of your house, for example, replacing spouting or a piece of weatherboard
• Building a small garden shed (provided it is no closer than its own height to the boundary,
is under 10 m², and less than one story high)
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5.2 DLA and Sale of Liquor Act
Miller’s Contemporary Licenced Diner will apply for an On Licence Renewal to the District
Licensing Authority, Auckland City Council, under section 9 of the Sale of Liquor Act
(1989). This process is summarised in the following flow chart.
Identify Location
Auckland Central
List all Paperwork
• Original application form plus one photocopy
• A copy of the menu
• A copy of the certificate of Incorporation (if
applying in a company name)
• A copy of the floor plans of the premises or the
conveyance highlighting restricted or supervised
areas and the principal entrance
• A photo of the principal entrance
• A copy of your host responsibility policy and an
alcohol management plan detailing how the
specific points in the policy will be implemented
• A report detailing the target market and how the
proposed business will mitigate any risk which
could negatively impact the local community –
in particular nearby sensitive premises. Also
include any other information which may assist
in determining your application
• A copy of your existing on-licence
• A letter of authorisation for the consultant, if
you use an alcohol licensing consultant
Calculate Fee
Class 2 restaurant - Restaurants that have a
separate bar (which may include a small bar
area) but which, in the opinion of the council,
do not operate that area in the nature of tavern
at any time.
Type of premise (operating times for licence)
- Any time after 3am
Number of enforcements holding in last 18
months: 0
Renewal Fee based on risk category: $816.50
Lodge Documents & Application
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6.0 Overview and Rationalisation of Depreciation
Depreciation is the reduction in an asset's value caused by the passage of time due to use or
abuse, wear and tear. Depreciation is a method of cost allocation. The cost allocation can be
based on a number of factors, but it is usually related to the estimated period of time the
product can generate revenues for the company, also known as the asset's economic life.
Depreciation expense is the amount of cost allocation within an accounting period. Only
items that lose useful value over time can be depreciated. Depreciation can be calculated in
more than one way (Investopedia, 2016).
The two most common ways of calculating depreciation are the straight line and the
diminishing value methods. With the diminishing value method, depreciation is worked out
on the adjusted tax value of the asset (the purchase price, less any depreciation already
claimed in previous years). Diminishing value has higher deductions in the first few years
than straight line depreciation and these deductions decrease each year. With the straight line
method, depreciation is worked out on the purchase price of the asset and the same amount is
claimed each year (Inland Revenue, 2016).
Companies use depreciation to report asset use to stakeholders. Deprecation also reduces the
historical value of assets. Stakeholders can review this information and know when to expect
replacement assets purchased by a company. For example, a company with production
equipment will often replace these items at some time during its operations. When
accumulated depreciation nears the asset's historical cost, a replacement purchase may be
coming up soon. Tax benefits are also possible with depreciation. Although depreciation
represents a non-cash expense on the income statement, it does reduce a company's net
income. Lower net income will incur a smaller tax liability. (Investipedia, 2016).
The Inland Revenue Department sets depreciation rates/times however for ease of reporting
this report will use the diminishing value method set at a rate of 14.5%. It is also important to
factor in that depreciation is calculated without GST.
6.1 5 Year Depreciation/Excel
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Cognisant of Section 6.0 this section presents the depreciation of 10 items (Choice, 2016)
over 5 years, using a set rate of 14.5% this section uses the diminishing value depreciation
method.
Item Cost Dep
Rate
Yr1 Yr2 Yr3 Yr4 Yr5 TOTAL
Double
Width
Dishwas
her
$21,115.
00
14.5
%
$3,061.
68
$2,617.
73
$2,238.
16
$1,913.
63
$1,636.
15
$11,467.
35
2 Door
Electrolu
x Chiller
$10,196.
00
14.5
%
$1,478.
42
$1,264.
05
$1,080.
76
$924.0
5
$790.0
6
$5,537.3
4
2 Door
Electrolu
x Freezer
$11,457.
00
14.5
%
$1,661.
27
$1,420.
38
$1,214.
43
$1,038.
33
$887.7
8
$6,222.1
9
Upright
double
door
display
chiller
$3,180.0
0
14.5
%
$461.1
0
$394.2
4
$337.0
8
$288.2
0
$246.4
1
$1,727.0
3
10 Amp
Electric
Pizza
Oven x 3
$4,160.0
0
14.5
%
$603.2
0
$515.7
4
$440.9
5
$377.0
2
$322.3
5
$2,259.2
6
La Scala
Espresso
Machine
$6,995.0
0
14.5
%
$1,014.
28
$867.2
0
$741.4
6
$633.9
5
$542.0
3
$3,798.9
2
Manual
Electric
Conventi
on Oven
$10,560.
00
14.5
%
$1,531.
20
$1,309.
18
$1,119.
34
$957.0
4
$818.2
7
$5,735.0
3
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Blue
Seal Gas
Range
$8,918.8
0
14.5
%
$1,293.
23
$1,105.
71
$945.3
8
$808.3
0
$691.1
0
$4,843.7
2
Free
Standing
Deep
Fryer
$9,284.0
0
14.5
%
$1,346.
18
$1,150.
98
$984.0
9
$841.4
0
$719.4
0
$5,042.0
5
Vegetabl
e
Preparati
on
Machine
x 2
$3,260.0
0
14.5
%
$472.7
0
$404.1
6
$345.5
6
$295.4
5
$252.6
1
$1,770.4
8
6.2. Rationale/Discussion Durability
WebFinance (2016) define durability as assurance or probability that an equipment, machine,
or material will have a relatively long continuous useful life, without requiring an inordinate
degree of maintenance, ability to undergo permanent deformation without cracking or
fracturing and the ability to exist for long without significant deterioration by resisting the
effects of heavy use, drying, wetting, heating, freezing, thawing, corrosion, oxidation,
volatilization, etc.
Within Miller’s Contemporary Licenced Diner, it is important to consider the durability of
items which will be used regularly over long periods of time in order to assure that the right
types of products/brands of products have been purchased to minimize long term
equipment/furniture and other tangible item costs within the establishment. Below are the
descriptions of two important items which will need to withstand heavy wear and tear over
time.
Linoleum Flooring - From its invention in 1863 up until the early 1950’s, linoleum was one
of the most popular flooring materials in the world. However earlier forms were more brittle
than today’s linoleum, and tended to crack and curl. That, along with the sale of a variety of
substandard linoleum and faux linoleum products, led to it developing a reputation as a low
quality material. In recent years’ innovations in the way that linoleum is manufactured, as
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well as a realization of many of its inherently positive benefits, have caused a resurgence in
the popularity of this versatile and durable material. Linoleum flooring is extremely resistant
to scratches, dents, and mars in the surface of the material. For the most part cracking damage
has been mitigated with new manufacturing processes and curling can be prevented with a
proper water tight installation, and regular sealing maintenance. The hues and patterns found
in linoleum flooring actually extend down through the wear layer, so you do not see fading
and marring of in the surface of the material over time. Some flooring materials tend to
collect dust and dirt, holding them, and then radiating them back into the air when walked
upon. This can trigger allergic reactions or breathing problems in asthmatic individuals.
However, linoleum has an anti-static property which inherently causes it to repel these
harmful particles from its surface. Linoleum naturally inhibits the growth of germs and
microscopic organisms, which makes it a popular material in schools and hospitals. Linoleum
is a porous material and can be damaged by water if not properly sealed. However, a properly
installed and regularly maintained linoleum flooring application is impenetrable and resistant
to damage from water and moisture, making this material suitable for use in bathrooms and
kitchens (About.com, 2016).
Formica tables tops and counters – Formica is still a very popular option, especially for those
on a budget. It's a synthetic material made up of several layers of printer paper bound with
resin under high pressure and cut, shaped and glued onto medium-density fibreboard.
Formica with a high-gloss finish can look as elegant and stylish as natural or engineered
stone and while it’s not as durable, it’s only a fraction of the price. The cons with standard
Formica are it's susceptible to burns, cuts and scratches, so you always need to use mats and
chopping boards. Furthermore, it's difficult to repair dents and chips in the surface and
abrasive cleaners can also leave marks. A Formica benchtop can't usually support an under-
mount sink, which is attached to the underside of the bench, as opposed to a regular sink,
which sits on top of the bench surrounded by a raised "lip" where dirt can collect (Consumer
NZ, 2016).
However, for businesses who are willing to pay a little more, Formica High Pressure
Laminate is a stylish, durable and easy to clean post forming grade of decorative laminate. It
carries resistance to the following:
• Surface wear
• Immersion in boiling water
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• Dry heat
• Impact damage
• Cracking
• Scratching
• Staining
• Cigarette burns
• Steam
(laminexnewzealand, 2016)
6.3 Rationale/Discussion Sustainability
According to the Humanities Education Centre (2009), there is no universally agreed
definition on what sustainability means. There are many different views on what it is and how
it can be achieved. The idea of sustainability stems from the concept of sustainable
development which became common language at the World's first Earth Summit in Rio in
1992. The original definition of sustainable development is usually considered to be
"Development that meets the needs of the present without compromising the ability of future
generations to meet their own needs" (Bruntland Report for the World Commission on
Environment and Development, 1992 as cited by the Humanities Education Centre, 2009).
Over the past several decades, hoteliers have turned their focus to the importance of
sustainability in the hospitality industry as it relates to hotel development and operations,
including the environmental, economic and social impact. Sustainability is one of the most
important issues currently facing our world. The hospitality sector has historically had a
dramatic environmental impact through energy and water consumption, use of consumable
and durable goods, and solid and hazardous waste creation. Hotels consume energy for
HVAC operations, lighting, fuel and other power needs. Water is used for bathrooms, F&B,
and laundry, as well as other general operations (irrigation, cleaning and maintenance). Waste
is generated by the disposal of paper, batteries and bulbs, furniture, equipment, appliances
and more (Stottler, 2015).
Most leading hotel brands today fully endorse sustainability within their businesses. Kipton
Hotels sustainability mission statement is “to lead the hospitality industry in supporting a
sustainable world” and Fairmont Hotels claim to “be literally writing the book on sustainable
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best practices in the lodging industry while developing a comprehensive commitment to
minimizing their hotel’s impact on the planet” (Richardson, 2005). The advantages of
hospitality businesses promoting sustainability within their practices include cost savings,
economic incentives, regulatory affairs, positive impact on guest experiences and positive
reflection on brand/corporate brand images (Stottler, 2015). It is also important to consider
met issues on the planet from sustainable business practices including greenhouse gases and
global warming.
The triple bottom line (TBL) is an accounting framework that incorporates three dimensions
of performance: social, environmental and financial. This differs from traditional reporting
frameworks as it includes ecological (or environmental) and social measures that can be
difficult to assign appropriate means of measurement. The TBL dimensions are also
commonly called the three P’s: people, planet and profits (Slaper & Hall, 2011). The TBL
moves accounting to the beginning of the design process and can lead to design decisions that
yield positive effects, rather than limiting liabilities (Richardson, 2005).
An important sector of the market which is extremely relevant to sustainability is LOHAS
(Lifestyles of Health and Sustainability). It is an estimated $290 billion U.S. marketplace for
goods and services focused on health, the environment, social justice, personal development
and sustainable living. The consumers attracted to this market represent a sizable group in
this country. Approximately 13-19% percent of the adults in the U.S. are currently considered
LOHAS Consumers. LOHAS is split into six funded areas which are personal health, green
building, eco-tourism, natural lifestyles, alternative transportation and alternative energy
(LOHAS, 2010).
In order to promote and actively practice high levels of sustainability within Miller’s
Contemporary Licenced Diner, the business will be complying to sustainability requirements
in compliance with the New Zealand Qualmark Environmental Standards. All businesses that
display a Qualmark star grading or endorsed logo are evaluated on their environmental
performance and have met minimum requirements. Qualmark use a gold, silver and bronze
ranking system to rate businesses in regards to how environmentally aware the companies are
and whether they meet specific criteria to meet each ranking (Tourism New Zealand, 2016).
Miller’s Contemporary Licenced Diner will aim to meet the gold environmental/sustainability
standard by facilities in place for recycling and initiatives to reduce waste, energy or water
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consumption, completing and using an environmental checklist to review the environmental
impacts of the business and having the ability to verify all environmental claims.
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