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Capstone healthcare staffing reviews order capstone project at wgu make my dissertation results on sexism for money I'm really happy to be here and the topic that I was asked to discuss is the convergence of casual and fine I'm going to do what I promised myself I wouldn't do and try to relate my industry to your industry because I am a lover of hotel experiences but I'm going to start by talking about a trend that I see happening absolutely in our industry and I believe you'll find that it's within the hotel industry as well we're in the same industry called hospitality right so whether you're selling a night of sleep or whether you're selling a plate of food the goal is that the person on the receiving end somehow feels better after we do our magic then when they first came in through our front door in the first place we all share that exact same goal one of the things that we're seeing certainly in our industry everywhere and I think Shake Shack is a very good example of this but it's happening in every single category whether it's salad or pizza or grilled food or Greek food Mediterranean of all types is the convergence of casual and fine now if you look at where the food industry has gone throughout its entire history of being food for sale it started with the invention of restaurants and restaurants were invented apparently in France and the word restaurant means to restore the goal was not only to feed travelers as they went from one town to the next but it was to restore a sense of place and a sense of being that that you needed that it's what's sitting down at the table across from someone who you liked a lot is all about and as the automobile industry at the turn of the century really became a factor in the activity of restoration what happened was quite dramatic because restaurants soon became much more transactional in much more places for convenience then there were places to be and obviously the greatest expression of that in the history of our industry in the history of the world economy was fast food now when I say the greatest invention I'm not saying that in a qualitative sense and I'm going to try to illustrate that point in a minute and if you don't believe me there is a McDonald's about a half a mile from here you can try out but the the actual act of of using your automobile which is a product that needs to be refueled actually transformed the activity of restoring yourself into simply a transactional opportunity to refuel yourself not just your automobile but yourself as well and what the fast-food industry did brilliantly to local domination was to apply the same rule of two that each one of us has learned whenever we have renovated a hotel or a restaurant or an apartment or an office whereby you tell your architect and you tell your contractor what your dream looks like and they come back to you after drawing and doing all their stuff and about a week or two after you spell out your dream they come back to you with the plan and generally what we do when we see the plan is our jaw drops and our draw drops because it's gonna cost that much and it's gonna take that much time and they're all trained there's a there's actually a module in architecture school called the rule of two I'm kidding about this but they are all taught at that point when your jaw drops to say well it's the rule of two silly and you go what are you talking about and they go obviously there's only three salient issues quality speed and cost you can have any two of them which two would you like has anyone ever heard that before and doesn't it make you sick when you hear that because because you want it all and so what fast food did brilliantly was to create the rule of two and to create a compact with all of us who went to fast food restaurants that basically said you want it fast check you want to cheap checked leave the quality at the door and we all bought into that and that was fine because what fuel and food meant to us throughout an entire several generations was get it as cheap as you can get it as fast as you can and get on with it have a drive-through window for God's sakes don't even bother with being restored just stay right where you are in your car so what's happening right now is quite fascinating because as as much bad news as we have heard certainly during this election cycle about how awful everything is not only in our country but in the entire world if you look at real statistics in terms of real purchasing power and real consumer growth throughout the entire world more people than ever before on this earth have had qualitative experiences in their lives and they want quality wherever they go and so one of the main reasons that I think we're seeing a rejection the rule of two as it used to be added up is that people don't want to have to have quality go out the window just because they want something faster and less expensive and they're going to continue to want faster and less expensive is there anyone in this room that has more hours in their day today than they had last month there anyone in this room who would like to have more hours in their day today than they had last month it's just speeding up everything is speeding up all the time so here's what the convergence of casual and fine means to me it's basically believe it or not not throwing out the rule of two the rule of two continues to exist but it's challenging how you add up the numbers to get to the rule of two and so here's what I want to propose to you and we'll see if this translates to both of our industries whoever wrote the rule that it has to be one point for speed one point for price and zero points for quality why can't it be point six six point six six and point six six and so if you look at a place like Shake Shack or you look at a place like sweet green which maybe some of you have gone to we actually made an investment in a company on the west coast called tender greens I don't know if anyone's from the west coast and maybe see some nodding heads these are all businesses that are applying the rule of two but they're getting there in a different way and basically what they're saying is this we're gonna save you relative to the experience of going to a full-service restaurant we're gonna save you some of the time but not as much time as fast food because we're actually going to prepare the food to order for you and we're gonna save you some of the cost but not all of the cost the fast-food would because guess what we're not taking a zero for quality because you don't want a zero for quality you actually want a hundred percent of the essential reason you came for the food which is really good food really well sourced but what you're willing to give up and this is what takes it from a one down to 0.65 or 0.66 what you're willing to give up are some of the trappings that you used to expect or the things you thought you needed in a full-service environment so if you take a place like Shake Shack people don't need a reservations so we don't have to pay reservations they don't have a table so we don't need a maitre d or a host they don't have a cocktail made so we don't need a bartender there's no waiters that's a pretty big savings especially in a marketplace where labor and all labor it's going way way up in costs right now they don't need tablecloths they don't need to have a florist they don't need to have a chef and a pastry chef and for sous chefs and a sommelier in the diner that's a hell of a lot of costs to strip out of the equation which allows us to provide as much quality in your mouth same exact ingredients that a restaurant would charge a hell of a lot more for but it allows us to provide amazing value and a lot more speed and a lot more quality and I want to just ask you guys watch what's happening in our industry because it is becoming increasingly challenging for highly highly trained chefs and restaurateurs to open full-service restaurants and it's also becoming challenging time wise and money-wise for our guests to spend as much time whether it's at lunch or it's at dinner in those environments but nobody wants to take a backseat on quality anymore here's the key factor that we found within the category that I call quality it would be a mistake to think that all we're talking about is what's on the plate and what's in the glass a huge part that people do not want to give up ever is hospitality and the greatest thing about hospitality is you will never see whether you're your industry or my industry you will never see a line item on your P&L statement poor hospitality it doesn't cost any more or less money to smile at somebody it doesn't cost any more or less money to remember somebody it doesn't cost any more or less money to to do something thoughtful for somebody making a connection between your heart and your brain it doesn't I would say that if I've learned anyone thing in my career as a restaurateur it's this the greatest longing that human beings have is the longing to be longer and when you talk about recognition what you're really talking about is people want to be long two things we are wired no matter how life changes and technology changes it's already changed since I've started my talk no matter what speed any of that changes the thing that never changes is we are human beings and we are all wired to be tribal creatures we seek to be long the first and most important thing to which we belong is our family most powerful it's probably the one thing that that hasn't changed over time but I think the other things that we used to feel a need to belong to we haven't changed our desire and our need to belong to things in fact I would argue that if anything technology has enhanced that because it's given us other things to which we can belong but if anything I would say that while you see the things that used to matter start to erode this was once a place of religion and now it is a place to have a hotel conference ok religion used to be one of the things to which so many people wanted to belong that it would have been unheard of that this could be transformed into a hotel what about country clubs they're falling away fraternities it's not that they're gonna go away but the things to which we always needed to belong political parties you just name it there they're almost all receding the one thing in addition to family that I think has increased if anything is where you work and I think to the degree that we can make the places where we employ people places that you want to belong that you proudly want to affiliate with that will actually increase the chances that the people who do business with us are going to want to belong to the product we are serving and when you talk about authenticity and you talk about how your hotel and I think about this all the time how can they change like Shake Shack create a sense of belonging it's something that is critically important but it all starts with an understanding of what's motivating people in the first place now I'm going to end with one thought and then my hope is that we can have time for a couple of questions as we think about the convergence of casual and fine please remember that yes I still want speed but it doesn't have to be so fast that I don't know where I am I want to be where I am yes I want a better price and I'm willing to get that better price if you strip away non essential parts of the experience I don't actually need anything when I stay in a hotel except really three things I want a quiet darkroom I want really good shower pressure and I want a good pillow in bed and outside of that yes I want the plug to and I want some hooks on the wall but I don't really need much more than that and when you talk about the convergence of casual and fine in your industries I think there's the same kind of opportunity to pump up the quality and pump down the unnecessary cost that I don't need I've stayed in hotels that are fairly priced I get free internet I've got all the hooks I need I've got great shower pressure the amenities are really nice and I'm totally willing not to have any carpeting for those of you who hate carpeting I'm totally willing to have non plush carpeting that's for sure I'm totally willing not to have a fancy Bureau because I'm not gonna unpack my stuff anyway I don't know what goes into the cost of building a hotel because I've never done that and I have no interest in it by the way but I do know that when I go to a hotel I I feel the same way you probably feel when you come to a restaurant make me feel welcome let me know where I am pretend that like a great bottle of wine that has terroir where I know where the wine was grown by how it tastes give me that sense of where I am why do you think Airbnb is doing so well because you could whenever you check into one you could be nowhere else why do you think a city like New York does so well because when you're here it's authentic there's nowhere else you could be there's great cities in America when I go to San Francisco where else could I be when I go to New Orleans where else could I be when I go to Charleston where else for IV people don't want sameness but at the end of the day that doesn't cost extra money authenticity heart mimed connections I want to end with one thought and it's something that I actually wish I could do better than I wrote this in my book setting the table 10 years ago came out ten years ago last week and I wish I could say it better than I'm about to say it but I can't and that is this remember ladies and gentlemen within three minutes of being born each one of us got four gifts of hospitality that I believe are so deeply imprinted that we spend the rest of our lives in every transaction just longing to have these repeated we got eye contact a smile a hug and some pretty damn good food so think about that and think about how so much in our world has become so transactional right you give me money I give you food next you give me money I give you food next think about how many hotels you've checked into in your lives where you don't know where you are because they all look alike right I show you my ID show you my credit card you give me my room keys next and then you get to the room and it looks like everybody else's room same TV channels same everything that's not what people want anymore they want to know that they're seen they want to know that we're happy to see them the hug is really the best metaphor for hospitality in the world because you only get one if you give one and you only give one if you get one people want to go to a place that is as happy making me happy as I am happy that's the hug and yes they want some pretty damn good food the food is a metaphor for whatever the thing is we're selling but in that equation of for not the law of to and that equation of for the thing we do is only one of four things the real reason they're coming is the sense of belonging that is created by being seen knowing that we're happy to see them and knowing that the exchange is not a transaction it's truly a hardly thank you guys very very much you what is capstone capsim for money Fu Foundation School of Engineering and Applied Science.