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Examines the reasons why TQM has had relatively little impact in the hospitality sector and recognizes the greater risks involved in implementing TQM as opposed to a more “technique‐based” implementation. Identifies two requirements for successful implementation – the right initial conditions (which reduce the perceived risk) and the need for an appropriate environment within which TQM can flourish. In the latter context, four key concepts are identified: “external awareness”, “change potential”, “motivation”, and “manoeuvrability”. Comparisons are drawn with manufacturing organizations which identify some of the reasons for the greater impact in that sector. Concludes by identifying some ways in which the hospitality sector could start to close the gap.