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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Chapter 7

The Restaurant Business

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

After Reading and Studying This

Chapter, You Should Be Able to: Describe the different characteristics of

chain and independent restaurants

Identify some of the top chain andindependent restaurants

List the classifications of restaurants

Differentiate the characteristics of chain andindependent restaurants

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Restaurants Vital part of everyday life Patronized several times a week for social

purposes as well as to eat and drink Offer society a place to relax and

restore Offer an opportunity to enjoy the company

of friends, family, colleagues andassociates

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

French Cuisine and Its

Foundation The French are credited with culinary art, largely

due to two main events French Revolution

Thomas Jefferson French cuisine and its foundations

Mother sauces Nouvelle cuisine (lighter cuisine)

American Adaptation Infusion

Blending of flavors and techniques of two cuisines

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.

Pearson Prentice HallUpper Saddle River, NJ 07458

Culinary Greats Auguste Escoffier

Patron Saint of Cooking

Julia Child Emeril BAM Lagasse Bobby Flay Charlie Trotter

Considered Americas finest Alice Waters Paul Prudhomme

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.

Pearson Prentice HallUpper Saddle River, NJ 07458

Chefs of Today Need to

Possess: Cooking skills Employability

traits People skills

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.

Pearson Prentice HallUpper Saddle River, NJ 07458

Figure 7-1

Approximate Market Share of Restaurant Segments

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.

Pearson Prentice HallUpper Saddle River, NJ 07458

Full-Service Luxury

Restaurants National Restaurant Association Good selection of menu items made on premises Haute cuisine Fine Dining Hall of Fame

Le Bec Fin Spago

There are few national chains Mortons Ruth Chriss Roy Flemings

http://www.restaurant.org/http://www.restaurant.org/

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.

Pearson Prentice HallUpper Saddle River, NJ 07458

Reasons for the Small Number

of Luxury Restaurants Labor intensive and require a higher level of

skilled labor

Small percentage can afford high prices Overhead costs may not be reasonable

Economies of scale are not as easily reaped

Consistency and quality are not easy to maintain Limited market appeal

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.

Pearson Prentice HallUpper Saddle River, NJ 07458

Other Restaurant

Classifications Theme restaurants

Celebrity-owned Owned by celebrities such as Michael Jordan,

Dan Marino, Steven Segal, Gloria Estefan,Junior Seau, Denzel Washington

Seaus San Diego All Star Caf

House of Blues

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.

Pearson Prentice HallUpper Saddle River, NJ 07458

Casual Dining and Dinner

House Restaurants Mid-scale casual restaurants

Family restaurants

Ethnic restaurants

Specialty restaurants

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.

Pearson Prentice HallUpper Saddle River, NJ 07458

Specialty Restaurants

Quick Service Theme related

$111 billion annual sales

Better known as fast food

Limited menus

Guest helps defray labor costs

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.

Pearson Prentice HallUpper Saddle River, NJ 07458

Quick Service

Hamburger McDonalds and Ray Kroc

Added breakfast

Expanding overseas Co-develop sites with gasoline companies

$33 billion worldwide sales

Drive thru

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.

Pearson Prentice HallUpper Saddle River, NJ 07458

Quick Service

Pizza Local and regional chains all with

delivery service

$20 billion market Four major chains

Pizza Hut Dominos

Papa Johns Little Caesars

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.

Pearson Prentice HallUpper Saddle River, NJ 07458

Quick Service

Chicken KFC is market leader

Home delivery

3 in 1 restaurants

Other chains Churchs Chicken

Popeyes

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.

Pearson Prentice HallUpper Saddle River, NJ 07458

Other Types of Restaurants Steakhouses

New growth area

Outback Steakhouse Seafood restaurants

Pancake restaurants

Sandwich restaurants Family restaurants

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.

Pearson Prentice HallUpper Saddle River, NJ 07458

Ethnic Restaurants Independently owned and operated

Mexican restaurants are largest growth

segment Different types are developing

Thai

Indian

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Introduction to Hospitality, Fourth EditionJohn Walker

2006 Pearson Education, Inc.

Pearson Prentice HallUpper Saddle River, NJ 07458

Trends Demographics Branding Alternative outlets Globalization Continued diversification More twin and multiple locations More points of service More hyper-theme restaurants Chains vs. Independents