Chapter Three The Restaurant Business
The meaning of the word Restaurant: • The word restaurant covers a broad range of food service operations. • The term comes from a French word meaning “restorer of energy. ” • In the mid-1700 s - it was known as any public place that offered soup and bread. • Today - it is any public place that specializes in the sale of prepared food for consumption on or off premise. Varied Field of Food Service
Food Away From Home May Be Purchased in a Variety of Locations: • Employee cafeterias • hotel facilities • convenience stores • casinos • traditional • taverns restaurants This speaks to the size and scope of the food service industry, and most of these segments are experiencing positive growth! Varied Field of Food Service
On-Site Food Service: This is the other major food service sector and is sometimes referred to as institutional food service. • This part of the industry is composed of contractors and caterers who serve food in the following places: – manufacturing plants – office buildings – healthcare facilities – schools and colleges – and many more. . . Varied Field of Food Service
Share of Food Service Market: Percentage of Total Sales in Billions This slide identifies the relative shares of the market held by the following segments: • Eating places: 67. 4% • Bars and taverns: 3. 2% • Institutions operating own food service: 8. 7% • Managed services: 6. 5% • Food service in hotels and motels: 5. 2% • Other commercial: 8. 7% • Military: 0. 3% Varied Field of Food Service
Off-Premise Sales Vs. On-Premise Sales: • Off- Premise Sales: – Includes operations such as drive-through, takeout, and delivery. – Biggest growth in food service industry for many years. – Since the late 1980 s it has the lion’s share of growth in total restaurant sales • On-Premise Sales – Includes sales that take place at the food service location. – This type of sales actually declined in 1992, but has increased each year since. Varied Field of Food Service
Fast Food Alters the meaning of Restaurant • During the 1960 s and 1970 s, fast food altered dramatically the meaning of what a restaurant was. • This trend toward off-premise consumption suggests a fundamental change in the business definition of restaurants and how they are evolving • But there were other changes happening as well. . . Varied Field of Food Service
Fast Food Alters the meaning of Restaurant • Formal fine dining has been declining in relative importance, whereas casual dining has been growing very rapidly • As mentioned in chapter one, this decline in fine dining and the rise in fast food preference may be due to the changing age composition of North America. • The Baby Boomers were raised on fast food and prefer the informal and casual atmosphere that is comfortable for the whole family Varied Field of Food Service
QSR? • QSR stands for Quick-Service restaurants. • These restaurants has seen sales continue to rise for the most part • Sales rose by 4. 4 percent in 2000 over 1999 • There are many QSRs throughout Florida Varied Field of Food Service
The Restaurant Business: • The restaurant Business is constantly changing • There are so many types of restaurants that it is difficult to devise a mode to fit them all. • Nevertheless, we need some basic terminology to describe the field, even in general terms. So here we go…
Basic Restaurant Terminology: • Eating Market – This includes the off-premise operations such as takeout and delivery. – Much of it is now referred to as home meal replacement (HMR). • Dining Market – This includes the on-premise operations such as fine dining and casual upscale restaurants
More Basic Restaurant Terminology: • Quick Service Restaurants (QSR) – This includes the midscale operations such as family restaurants. – These are the contemporary, popular-priced restaurants and this comprises the largest segment of the restaurant industry today Let’s talk a little more about the Quick Service Restaurants…
Characteristics of Quick-Service Restaurants • Many locations • Limited menus • High and variable sales • Fast service with much self service • Many part-time employees with varied schedules • Unskilled labor • Skilled management • Unit managers in key roles • Highly competitive prices • Chains dominate field • Simple units • Complex systems
Midscale Restaurants • Family restaurants • Commercial cafeterias and buffets • Home meal replacement (HMR) • Pizza operations
Family-Style Restaurant Chains • Denny’s • Waffle House • International House of Pancakes (IHOP) • Shoney’s • Cracker Barrel • Boston Market • Perkins Family Restaurant • Coco’s • Big Boy • Friendly’s Restaurants • Bob Evans Farms
Casual Restaurants • Specialty establishments • Ethnic restaurants • Entertainment – sometimes called “eatertainment”
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