CHAPTER 3: THE

RESTAURANT BUSINESS

Mr. Lamberti

I. INTRODUCTION TO FOOD SERVICE

FOOD SERVICE PROVIDES BASIC NEED AND FOOD SERVICE PROVIDES BASIC NEED AND SOCIAL ATMOSPHERESOCIAL ATMOSPHERE

SALES GENERATED FROM FOOD SERVICE WAS SALES GENERATED FROM FOOD SERVICE WAS AROUND $440 AROUND $440 BILLION $$$$BILLION $$$$

TO BE SUCCESSFUL ALL FOOD SERVICE MUST TO BE SUCCESSFUL ALL FOOD SERVICE MUST CONSIDER: MARKET, LOCATION, ATMOSPHERE, CONSIDER: MARKET, LOCATION, ATMOSPHERE, CONCEPT AND MENUCONCEPT AND MENU

TWO GENERAL CATEGORIES OF FOOD AND TWO GENERAL CATEGORIES OF FOOD AND BEVERAGE OPERATIONS:BEVERAGE OPERATIONS:

COMMERCIAL SITECOMMERCIAL SITE

ON-SITE FACILITYON-SITE FACILITY

II. COMMERCIAL SITES

FIRST TYPE OF FOOD SERVICEFIRST TYPE OF FOOD SERVICE

THESE FOOD SERVICE INDUSTRIES ARE FOR THESE FOOD SERVICE INDUSTRIES ARE FOR PROFIT. PROFIT.

ONLY MARKETPLACE NEEDS AND CONSUMER ONLY MARKETPLACE NEEDS AND CONSUMER PREFERENCES LIMIT THE VARIETYPREFERENCES LIMIT THE VARIETY

FULL-SERVICE RESTAURANT

A. FULL-SERVICE RESTAURANTA. FULL-SERVICE RESTAURANT

THESE ARE DESTINATIONS WHERE THESE ARE DESTINATIONS WHERE

• CUSTOMER SITS CUSTOMER SITS

• GIVES ORDER GIVES ORDER / SERVED FOOD / SERVED FOOD

• ITEMS ARE COOKED TO ORDER- 3 TYPESITEMS ARE COOKED TO ORDER- 3 TYPES

FINE DINING

DISTINGUISHED BY DISTINGUISHED BY

• PRICE PRICE

• SERVICE SERVICE

• AMBIANCE AMBIANCE

• LOCATIONLOCATION

• MENU OPTIONS (FINE WINES)MENU OPTIONS (FINE WINES)

CASUAL DINING

FASTEST GROWING - CATERS TO FASTEST GROWING - CATERS TO

• FAMILIES FAMILIES

• BABY BOOMERSBABY BOOMERS

• MIDDLE CLASS MIDDLE CLASS

RELAXED AND REASONABLE PRICINGRELAXED AND REASONABLE PRICING

B. LIMITED SERVICE FACILITYB. LIMITED SERVICE FACILITY

MOST PROFITABLE CATEGORY (QSR)MOST PROFITABLE CATEGORY (QSR)

SPEEDY SERVICE AND LOW PRICE SOME SPEEDY SERVICE AND LOW PRICE SOME QUESTION LATELY ON HEALTHQUESTION LATELY ON HEALTH

Quick Serve Restaurants

McDonaldsMcDonalds

SubwaySubway

StarbucksStarbucks

Burger KingBurger King

WendysWendys

KFCKFC

Taco BellTaco Bell

ChipolteChipolte

Pizza HutPizza Hut

Little Caesar’sLittle Caesar’s

Jet’s PizzaJet’s Pizza

Hungry HowiesHungry Howies

Domino’sDomino’s

SonicSonic

Dunkin DonutsDunkin Donuts

Tim HortonsTim Hortons

Carls JrCarls Jr

Arby’sArby’s

Dairy QueenDairy Queen

Papa John’sPapa John’s

Popeye’sPopeye’s

Jimmy John’sJimmy John’s

Quizno’sQuizno’s

Culver’sCulver’s

Del TacoDel Taco

Big Apple BagelBig Apple Bagel

Einstein’s BagelsEinstein’s Bagels

White CastleWhite Castle

5 Guys5 Guys

QdobaQdoba

Boston MarketBoston Market

Baskin RobbinsBaskin Robbins

SPECIALITY RESTAURANTS

OFFER SOMETHING FOR EVERY OFFER SOMETHING FOR EVERY TASTE. TASTE. SOME OF THE SPECIALITY SOME OF THE SPECIALITY RESTAURANTS RESTAURANTS MAY INCLUDE:MAY INCLUDE:

Segments of Food

PIZZA/PASTAPIZZA/PASTA SNACKSNACK

CHICKENCHICKEN ASIANASIAN

STEAKSTEAK MEXICANMEXICAN

SEAFOODSEAFOOD

BURGERSBURGERS

SANDWICHSANDWICH

III. TYPES OF RESTAURANT BUSINESSES

MANY STRATEGISTS BELIEVE THAT AN MANY STRATEGISTS BELIEVE THAT AN INDEPENDENT BUSINESS IS NOT ABLE TO INDEPENDENT BUSINESS IS NOT ABLE TO COMPETE WITH A CORPORATE CHAIN OR A COMPETE WITH A CORPORATE CHAIN OR A FRANCHISE, HOWEVER EACH TYPE OF HAS FRANCHISE, HOWEVER EACH TYPE OF HAS STRENGTHS THAT ARE DIFFICULT TO STRENGTHS THAT ARE DIFFICULT TO DUPLICATEDUPLICATE

CHAINSPROMISE CUSTOMERS CONSISTENCY OF PROMISE CUSTOMERS CONSISTENCY OF PRODUCT AND PRODUCT AND EXPERIENCE. (OUTBACK, EXPERIENCE. (OUTBACK, OLIVE GARDEN) RELY ON STRENGTH OF OLIVE GARDEN) RELY ON STRENGTH OF BRAND AND ARE LESS RISKY.BRAND AND ARE LESS RISKY.

FRANCHISESFRANCHISING IS THE SYSTEM OF EXPANDING FRANCHISING IS THE SYSTEM OF EXPANDING OR OPERATING A BUSINESS UNDER A OR OPERATING A BUSINESS UNDER A RECOGNIZED BRAND. RECOGNIZED BRAND. FRANCHISEES FRANCHISEES CONSIDER THEMSELVES INDEPENDENT CONSIDER THEMSELVES INDEPENDENT BUSINESS PERSONS WHO REPORT TO BUSINESS PERSONS WHO REPORT TO FRANCHISORFRANCHISOR. (MCDONALDS). (MCDONALDS)

INDEPENDENTSMOST SUCCESSFUL INDIES HAVE WELL MOST SUCCESSFUL INDIES HAVE WELL KNOWN COMMUNITY KNOWN COMMUNITY MEMBERS RUNNING MEMBERS RUNNING THEM. THE PERSONAL SERVICE IS DIFFICULT THEM. THE PERSONAL SERVICE IS DIFFICULT TO MATCH.TO MATCH.

IV. RESTAURANTS WITHIN OTHER PROPERTIES

FREE STANDING FACILITIES AS WELL AS FREE STANDING FACILITIES AS WELL AS OTHER TYPES OF PROPERTIES HOUSE OTHER TYPES OF PROPERTIES HOUSE COMMERCIAL REST.COMMERCIAL REST.

EXAMPLES

PRIVATE CLUBS-GOLF OR TENNIS RESORTPRIVATE CLUBS-GOLF OR TENNIS RESORT

SPORTS OR THEME PARKSSPORTS OR THEME PARKS

RETAIL ESTABLISHMENTS- MALLRETAIL ESTABLISHMENTS- MALL

LODGING- GREAT WOLF LODGELODGING- GREAT WOLF LODGE

V. ON-SITE FACILITIES

22NDND TYPE OF FOOD SERVICE CATEGORY TYPE OF FOOD SERVICE CATEGORY

PROVIDE MEAL OPTIONS FOR CUSTOMERS PROVIDE MEAL OPTIONS FOR CUSTOMERS DIRECTLY INVOLVED W/ PROPERTYDIRECTLY INVOLVED W/ PROPERTY

FOOD IS NOT PRIMARY SERVICEFOOD IS NOT PRIMARY SERVICE

EXAMPLES:EXAMPLES:

ON-SITE FOOD SERVICE

PRIMARY/SECONDARY SCHOOLSPRIMARY/SECONDARY SCHOOLS

• COLLEGES AND UNIVERSITIESCOLLEGES AND UNIVERSITIES

• HEALTH CARE FACILITIESHEALTH CARE FACILITIES

• BUSINESS AND INDUSTRYBUSINESS AND INDUSTRY

• MILITARYMILITARY

• CORRECTIONAL FACILITIESCORRECTIONAL FACILITIES

• AIRLINES/AIRPORTSAIRLINES/AIRPORTS

VI. RESAURANTOPERATIONS

• THE SUCCESS OF A RESTAURANT IS THE SUCCESS OF A RESTAURANT IS DEPENDENT ON THE QUALITY OF ITS DEPENDENT ON THE QUALITY OF ITS OPERATIONS. OPERATIONS.

• A REST. IS DIVIDED INTO TWO AREAS: FRONT A REST. IS DIVIDED INTO TWO AREAS: FRONT OF HOUSE AND BACK OF HOUSEOF HOUSE AND BACK OF HOUSE

• THE GENERAL MANAGER IS RESP. FOR BOTH THE GENERAL MANAGER IS RESP. FOR BOTH OPERATIONS (SEE 3.2 PG. 60)OPERATIONS (SEE 3.2 PG. 60)

VII. FRONT OF HOUSE

• INCLUDES THE FOLLOWING FUNCTIONS:INCLUDES THE FOLLOWING FUNCTIONS:

INTIAL IMPRESSIONINTIAL IMPRESSION

GREETINGGREETING

TAKING AND TRANSMITTING ORDERSTAKING AND TRANSMITTING ORDERS

SERVING FOODSERVING FOOD

PRESENTING BILLPRESENTING BILL

POSITIONS

ASSISTANT MANAGERASSISTANT MANAGER

OPENING MANAGEROPENING MANAGER

CLOSING MANAGERCLOSING MANAGER

CASHIERCASHIER

HOST/HOSTESSHOST/HOSTESS

SERVER/BARTENDERSERVER/BARTENDER

BUSSERBUSSER

VIII. BACK OF HOUSE

• FUNCTIONS INCLUDE:FUNCTIONS INCLUDE:

PLAN MENUPLAN MENU

PREPARE FOODPREPARE FOOD

DETERMINE PRODUCT SPECSDETERMINE PRODUCT SPECS

OBTAIN BIDS/QUOTESOBTAIN BIDS/QUOTES

SELECT AND CONTACT VENDORSSELECT AND CONTACT VENDORS

PLACE ORDERS/CONTRACTSPLACE ORDERS/CONTRACTS

POSITIONS

EXECUTIVE CHEFEXECUTIVE CHEF- - REPORTS TO GMREPORTS TO GM

SOUS CHEFSOUS CHEF-- PREPARES SAUCESPREPARES SAUCES

PREP COOKPREP COOK-- PREPARING WORK AREAPREPARING WORK AREA

GARDE MANAGERGARDE MANAGER-- MAKES GARNISHESMAKES GARNISHES

PASTRY CHEFPASTRY CHEF-- ESSERTSESSERTS

BAKER-BAKER- BREAD, CAKE, PIEBREAD, CAKE, PIE

STEWARDSTEWARD-- PLACE SETTINGSPLACE SETTINGS

EXPEDITEREXPEDITER-- LINK FROM FRONT TO BACKLINK FROM FRONT TO BACK