How Global Are Hospitality Companies?

Companies in the hospitality industry have locations worldwide; however, where do the products they serve in these locations come from? Are they manufactured in different countries or just in the U.S.?

The food sector of the industry may have locations worldwide, but their food products are produced and processed in the U.S. Whether it is the beef, the chicken, or the potatoes, all the ingredients are produced in the U.S. and then shipped to locations worldwide. McDonald's Corp. is the leading global foodservice retailer with more than 33,000 local restaurants serving more than 64 million people in 118 countries each day. More than 80% of McDonald's restaurants worldwide are owned and operated by independent local men and women. Franchising on such a grand scale can be risky, but by providing the same all natural, quality ingredients to all locations excellence in food is something McDonald’s can assure. McDonald’s has established relationships, that run 20 to 30 years deep, with industry leading companies, which means that McDonald’s is partnered with companies who understand the high standards at which McDonald’s operates. Lopez Foods and Keystone Foods provide all the chicken and beef for McDonald’s. They process the meat, check it for quality and safety, and then form the patties and nuggets that are shipped worldwide. In fact, Keystone ships their products in individual shipments that are unique to each locations needs. The “world famous fries” McDonald’s serves are harvested from 100 Circle Farms and then processed by Lamb Weston. All of the companies mentioned have manufacturing plants located in the U.S.

It is important to note that McDonald’s is not the only food company that operates this way. Wendy’s and Chipotle, just to name a few, are other companies that operate similarly. Although their locations are franchised, the food- the core product- is manufactured in one place- usually the U.S. where headquarters are located- and then shipped worldwide. Companies understand that this is a way to assure consistency, quality, and deliciousness.

http://www.mcdonalds.com/us/en/food/food_quality/see_what_we_are_made_of/meet_our_suppliers.html

http://www.wendys.com/quality/

http://www.chipotle.com/en-US/fwi/animals/animals.aspx

http://www.lambweston.com/support/support.jsp

Things are a little different for the lodging sector. Take Marriot International Inc. for example. Marriot currently has 3,300 lodging properties in 68 countries and territories and their supply chain is estimated to be worth $10 billion. Seeing as Marriot specializes in providing lodging, they must manufacture hotels overseas. However, the materials necessary to build these hotels are provided by suppliers worldwide. Marriot, along with many other hotel chains, have different "levels" of hotels. They have the Courtyard and Residence Inn, offering a more inexpensive quality experience. On the other hand, they also have more upscale chains, such as The Ritz Carlton and AC Hotels. These chains offer more exclusive service, higher prices, and access to more luxurious amenities. Each hotel will be designed and decorated according to what "level" hotel it is. Marriot's suppliers are located around the world, each supplying something unique. Marriot does franchises some of their hotels, but regardless most of the supplies needed for the production of the hotels come from a select group of suppliers located worldwide, Costa Rica and Australia are two regions. In addition, a hotel in a specific region, like Asia, might make use of the bamboo grown there. In conclusion, what "level" hotel and in what region the hotel is located in will affect where the supplies come from. Nevertheless, Marriot's suppliers are located globally and Marriot manufactures hotels globally. 

http://www.marriott.com/diversity/corporate-diversity.mi#/section/suppliers​

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http://news.marriott.com/2010/01/marriott-international-and-the-world-environment-center-launch- ​cleaner-production-partnership-in-cen.html​

 

Note to the Reader:  The websites of the companies mentioned above contain insightful and interesting information about how some of the most delicious foods and the hospitable hotels came into being.