HBM Exam 1 Study Guide UPDATED
ACTUAL QUESTIONS AND CORRECT
ANSWERS
The Airline Deregulation Act of 1978 had three big impacts on travel and tourism -
CORRECT ANSWER✅✅1. Allowed for increased competition because now there were
more airlines to choose from.
2. Strategic alliances were formed
3. The hub and spoke system was enhanced
The umbrella under which hospitality operates is - CORRECT ANSWER✅✅Tourism
An increase in crime and violence to areas with increased traffic or population is an example
of which impact of tourism? - CORRECT ANSWER✅✅Cultural
The tourism multiplier effect - CORRECT ANSWER✅✅Is a measure that gauges how
much money comes into the economy from visitors and then how that money is disbursed
through the local economy.
The most important force driving changes in hospitality services is - CORRECT
ANSWER✅✅Globalization, because it impacts every facet of operations including:
competition, work force, travel patterns, and company alliances
Leakage - CORRECT ANSWER✅✅A percentage of the new money brought into a local
economy through tourism may eventually leave the area for a variety of reasons
Demographics - CORRECT ANSWER✅✅Objectively measurable characteristics of a
population (age, education level, income)
Psychographics - CORRECT ANSWER✅✅Lifestyle characteristics of a population
Chain operations - CORRECT ANSWER✅✅Three or more businesses with the same
general style, service, basic design elements, and operational procedures (i.e. Starbucks,
Panda Express, Courtyard by Marriott)
Roughly __% of eating and drinking establishments have less than 50 employees -
CORRECT ANSWER✅✅90%
Three things that seem to influence how the hospitality industry is running - CORRECT
ANSWER✅✅Minimum wage, health care, globalization, increased social responsibility
awareness, baby boom generation
The value equation according to Jim - CORRECT ANSWER✅✅Value = Experience -
Expectation
, Before Red Robin became Red Robin as we know it today, what was it called? - CORRECT
ANSWER✅✅Sam's Tavern
A good food cost percentage to shoot for in the development of a restaurant concept that
would keep you within the industry would be roughly __% - CORRECT
ANSWER✅✅30%
List 4 things a restaurant can do to be more green - CORRECT ANSWER✅✅Hand soap
dispensers, linen napkins, composting, bio-degradable packaging
Roughly what __% of food dollars are spent at restaurants? - CORRECT
ANSWER✅✅50%
What percentage of eating and drinking establishments are single unit operations? -
CORRECT ANSWER✅✅70%
What is an average food cost percentage in the restaurant industry? - CORRECT
ANSWER✅✅30%
______ is the act of providing additional levels of responsibility to both employees and
managers. - CORRECT ANSWER✅✅Empowerment
Service vs. Hospitality - CORRECT ANSWER✅✅Service is the ACTIONS that enable
one to be hospitable, whereas hospitality is the FEELING/EMOTION of the experience
QSR stands for - CORRECT ANSWER✅✅Quick Service Restaurants
Roughly how many Starbucks locations are there in the world? - CORRECT
ANSWER✅✅20,000
How many sodas does the average person drink per year in the US? - CORRECT
ANSWER✅✅600
How many pints (16 oz) of beer do you get out of a full 1/2 barrel keg? - CORRECT
ANSWER✅✅125
How many ounces are in a normal 750ml wine bottle? - CORRECT ANSWER✅✅25
Energy drink sales have been declining (T/F) - CORRECT ANSWER✅✅False
Convention and Visitors Bureaus (CVBs) - CORRECT ANSWER✅✅Organizations that
promote tourism on local and regional levels and are generally considered to be "one-stop
shops" for leisure travelers and meeting planners.
Name two segments that have been greatly increasing/emerging - CORRECT
ANSWER✅✅Senior living, Fast casual
ACTUAL QUESTIONS AND CORRECT
ANSWERS
The Airline Deregulation Act of 1978 had three big impacts on travel and tourism -
CORRECT ANSWER✅✅1. Allowed for increased competition because now there were
more airlines to choose from.
2. Strategic alliances were formed
3. The hub and spoke system was enhanced
The umbrella under which hospitality operates is - CORRECT ANSWER✅✅Tourism
An increase in crime and violence to areas with increased traffic or population is an example
of which impact of tourism? - CORRECT ANSWER✅✅Cultural
The tourism multiplier effect - CORRECT ANSWER✅✅Is a measure that gauges how
much money comes into the economy from visitors and then how that money is disbursed
through the local economy.
The most important force driving changes in hospitality services is - CORRECT
ANSWER✅✅Globalization, because it impacts every facet of operations including:
competition, work force, travel patterns, and company alliances
Leakage - CORRECT ANSWER✅✅A percentage of the new money brought into a local
economy through tourism may eventually leave the area for a variety of reasons
Demographics - CORRECT ANSWER✅✅Objectively measurable characteristics of a
population (age, education level, income)
Psychographics - CORRECT ANSWER✅✅Lifestyle characteristics of a population
Chain operations - CORRECT ANSWER✅✅Three or more businesses with the same
general style, service, basic design elements, and operational procedures (i.e. Starbucks,
Panda Express, Courtyard by Marriott)
Roughly __% of eating and drinking establishments have less than 50 employees -
CORRECT ANSWER✅✅90%
Three things that seem to influence how the hospitality industry is running - CORRECT
ANSWER✅✅Minimum wage, health care, globalization, increased social responsibility
awareness, baby boom generation
The value equation according to Jim - CORRECT ANSWER✅✅Value = Experience -
Expectation
, Before Red Robin became Red Robin as we know it today, what was it called? - CORRECT
ANSWER✅✅Sam's Tavern
A good food cost percentage to shoot for in the development of a restaurant concept that
would keep you within the industry would be roughly __% - CORRECT
ANSWER✅✅30%
List 4 things a restaurant can do to be more green - CORRECT ANSWER✅✅Hand soap
dispensers, linen napkins, composting, bio-degradable packaging
Roughly what __% of food dollars are spent at restaurants? - CORRECT
ANSWER✅✅50%
What percentage of eating and drinking establishments are single unit operations? -
CORRECT ANSWER✅✅70%
What is an average food cost percentage in the restaurant industry? - CORRECT
ANSWER✅✅30%
______ is the act of providing additional levels of responsibility to both employees and
managers. - CORRECT ANSWER✅✅Empowerment
Service vs. Hospitality - CORRECT ANSWER✅✅Service is the ACTIONS that enable
one to be hospitable, whereas hospitality is the FEELING/EMOTION of the experience
QSR stands for - CORRECT ANSWER✅✅Quick Service Restaurants
Roughly how many Starbucks locations are there in the world? - CORRECT
ANSWER✅✅20,000
How many sodas does the average person drink per year in the US? - CORRECT
ANSWER✅✅600
How many pints (16 oz) of beer do you get out of a full 1/2 barrel keg? - CORRECT
ANSWER✅✅125
How many ounces are in a normal 750ml wine bottle? - CORRECT ANSWER✅✅25
Energy drink sales have been declining (T/F) - CORRECT ANSWER✅✅False
Convention and Visitors Bureaus (CVBs) - CORRECT ANSWER✅✅Organizations that
promote tourism on local and regional levels and are generally considered to be "one-stop
shops" for leisure travelers and meeting planners.
Name two segments that have been greatly increasing/emerging - CORRECT
ANSWER✅✅Senior living, Fast casual
