THE RESTAURANT BUSINESS AND FOOD AND BEVERAGE OPERATIONS

THE RESTAURANT BUSINESS AND FOOD AND BEVERAGE OPERATIONS 1

THE RESTAURANT BUSINESS Vital part of everyday life As a society we spend about 50% of our food dollars away from home Average family eats out 4 nights a week Multi-billion dollar business employing 12. 5 million people 2

INDEPENDENT RESTAURANTS Typically owned by 1 or more owners— usually involved in the day-to-day operation of the business Not affiliated with any national brand or name They offer the owner independence, creativity, and flexibility, but are accompanied by the risk of failing 3

CHAIN RESTAURANTS A group of restaurants identical in market, concept, design, service, food, and name The same menu, food quality, level of service, and atmosphere can be found in any one of the restaurants— regardless of location 4

FINE DINING May be formal or casual and may be further categorized by price, decor/atmosphere, level of formality, and menu Many serve haute cuisine—a French term meaning “elegant dining, ” or literally “high food” Most are independently owned and operated by an entrepreneur or a partnership The level of service is generally high 5

THEME RESTAURANTS A combination of a sophisticated specialty and several other types of restaurants Generally serve a limited menu 6

THEME RESTAURANTS Of the many popular theme restaurants, 2 stand out: First, the nostalgia of the 1950 s—as done in the T-Bird and Corvette diners Second, the dinner house category—among some of the better-known national and regional chains are Hard Rock Cafe, Rain Forest Cafe and Boston Pizza Casual, Canadian bistro-type restaurants that combine a lively atmosphere created in part by assorted bric-a-brac to decorate the various ledges and walls 7

STEAK HOUSES Adding additional value-priced items like chicken and fish to their menus in order to attract more customers Market leader in Canada is The Keg 8

CASUAL DINING Relaxed—includes restaurants from several classifications: Mid-scale casual restaurants: Jack Astor’s, Kelsey’s, The Olive Garden Family restaurants: Cracker Barrel, Smitty’s, Denny’s Ethnic restaurants: Mandarin, Sala Thai, Margueritaville Over the past few years, the trend in dinner-house restaurants has been toward more casual dining 9

FAMILY RESTAURANTS Evolved from the coffee shop style of restaurant Most are individually or family operated Located in, or with easy access to, the suburbs Most offer an informal setting with a simple menu and service designed to please the whole family 10

ETHNIC RESTAURANTS Majority are independently owned and operated Our major cities offer a great variety of ethnic restaurants, and their popularity is increasing 11

QUICK-SERVICE/FAST-FOOD RESTAURANTS Included in this category: Hamburger, pizza, chicken, pancakes, sandwich shops, and delivery services Popular because of their price point and location strategies 12

HAMBURGER Mc. Donald’s New menu items (salads, breakfast, etc. ) Expanding overseas Each of the major hamburger restaurant chains has a unique positioning strategy to attract their target markets Burger King hamburgers are flame broiled Wendy’s uses fresh patties 13

PIZZA Continues to grow $21 billion market Some major chains: Pizza Hut Domino’s Pizza Little Caesars 14

CHICKEN Perceived as a healthier alternative to burgers KFC is market leader Other chains: Restaurants serving Broasted Chicken Popeye’s 15

SANDWICH Recently, menu debuts in the sandwich segment have outpaced all others Classics, like melts and club sandwiches, have returned—but now there also wraps The leader in this segment is Subway—which operates more than 34, 000 locations around the world 16

TECHNOLOGY n Restaurant Without Waiters n u. Wink 17

FOOD & BEVERAGE DEPARTMENTS Food and Beverage Management Kitchen Food Operations Bars Stewarding Department Catering Department Room Service/In-Room Dining 18

FOOD AND BEVERAGE MANAGEMENT The director of food and beverage reports to the general manager and is responsible for the efficient and effective operation of the following departments: Kitchen/catering/banquet Restaurants/room service/minibars Lounges/bars/stewarding 19

FOOD AND BEVERAGE MANAGEMENT The skills needed by a food and beverage director: Exceeding guests’ expectations in food and beverage offerings and service Leadership Identifying trends Finding and keeping outstanding employees Training Motivation Budgeting Cost control Finding profit from all outlets Having a detailed working knowledge of the frontof-the-house operations 20

FOOD OPERATIONS Restaurant managers are generally responsible for the following: Exceeding guest service expectations Hiring, training, and developing employees Setting and maintaining quality standards Marketing Banquets Coffee service In-room dining, minibars, or the cocktail lounge Presenting annual, monthly, and weekly forecasts and budgets to the food and beverage director 21

KITCHEN A hotel kitchen is under the charge of the executive chef, or chef in smaller and mediumsized properties Some executive chefs are called kitchen managers Controlling costs is an essential part of operations; as labor costs represent the most significant variable costs, staffing becomes an important factor Financial results are generally expressed in ratios, such as food cost percentage and labor cost percentage 22

BARS In a large hotel there are several kinds of bars: Lobby bars Restaurant bar Service bar Pool bars Minibars Night clubs Sports bars Casino bars Catering and banquet bar 23

BARS The profit percentage on beverages is higher than it is on food items, making bars an important revenue source The responsibilities of a bar manager include the following: Supervising the ordering process and storage of wines Preparing a wine list Overseeing the staff Maintaining cost control Assisting guests with their wine selection Proper service of wine Knowledge of beers and liquors and their service 24

STEWARDING DEPARTMENT Responsibilities of Chief Steward: Cleanliness of back of house Cleanliness of glassware, china, and cutlery Maintaining strict inventory control and monthly stock check Maintenance of dishwashing machines Inventory of chemical stock Sanitation Pest control Forecasting labor and cleaning supply needs 25

CATERING DEPARTMENT Catering: Includes a variety of occasions when people may eat at varying times Banquets: Refers to groups of people who eat together at one time and in one place Terms are used interchangeably 26

CATERING DEPARTMENT The Director of Catering reports to the food and beverage director, and is responsible for selling, servicing, catering, banquets, meetings, and exhibitions The Catering Service Manager reports to the Director of Catering and is responsible set up, last minute details and house person The Banquet Maitre D’ reports to the Director of Catering and is responsible for food service, banquet captains and servers 27

ROOM SERVICE/IN-ROOM DINING 56% of all properties offer room service and 75% of airport properties provide room service Generally, the larger the hotel and higher the room rate, the more likely they will offer room service Challenges include: Delivering orders on time—especially breakfast Making room service profitable/forecasting demand Avoiding complaints of excessive charges Having well-trained and competent employees 28

RESTAURANT OPERATIONS Front of the House Operations Suggestive Selling Back of the House Operations Restaurant Forecasting Food Production Restaurant Systems 29

RESTAURANT ORGANIZATIONAL CHART 30

FRONT OF THE HOUSE Includes anyone with guest contact from the hostess to the bus person Curbside appeal: Keeping the restaurant looking attractive and welcoming 31

FRONT OF THE HOUSE The hostess, host, or greeter is responsible for greeting the guests and the rotation of arriving guests among sections or stations Servers introduce themselves and offer a variety of beverages and/or specials, and invite guests to select from the menu This is known as suggestive selling 32

WHAT ARE EXAMPLES OF SUGGESTIVE SELLING? Potent weapon in the effort to increase food and beverage sales Many restaurateurs cannot think of a better, more effective, and easier way to boost profit margins The objective here is to turn servers into sellers On a hot day, for example, servers can suggest frozen margaritas or daiquiris before going on to describe the drink specials 33

BACK OF THE HOUSE Purchasing Receiving Storing and issuing Food production Stewarding Budgeting Accounting and control

FOOD PRODUCTION Based on expected volume of business The sales from the previous year gives a good indication of the expected volume and a breakdown of the number of sales for each menu item The kitchen manager checks the head line cook’s order, which will bring the prep area up to the par stock for prepared items Prep work is done prior to service times 35

KITCHEN/FOOD PRODUCTION Staffing and Scheduling: Crucial for the successful running of a kitchen Training and Development: Implementing a comprehensive training program is vital in the kitchen, due to a high turnover rate 36

RESTAURANT FORECASTING Formulating a budget that projects sales and costs for a year on a weekly and monthly basis Forecasting restaurant sales has 2 components: Guest counts or covers and the average guest check Guest counts or covers: The number of guests patronizing the restaurant over a given time period Average guest check: Calculated by dividing total sales by the number of guests

WHAT ARE EXAMPLES OF COMPUTERS SYSTEMS USED WITHIN A RESTAURANT? 38

FRONT-OF-THE-HOUSE RESTAURANT SYSTEMS Point-of-sale (POS) systems: Wireless POS Systems: Used to track food and beverage charges and other retail charges that may occur at a hotel or restaurant Allows the servers to use a handheld personal digital assistant to send orders to the kitchen Guest Services Solutions: Applications that are designed to help a restaurateur develop a dining relationship with guests Applications include a frequent-diner management program, delivery management with caller ID interface, and guest accounts receivable to manage home accounts and gift certificate management 39

BACK-OF-THE-HOUSE RESTAURANT SYSTEMS Includes inventory control, food costing, labor management, and financial reporting features Kitchen Display Systems: Printers in the kitchen are replaced with video monitors and presents orders to kitchen associates along with information on how long orders are taking to be prepared Labor Management: Includes a human resources module to track hiring, employee personal information, vacation, security privileges, tax status, availability, and any other information pertinent to employees working at a restaurant 40

BACK-OF-THE-HOUSE RESTAURANT SYSTEMS Financial Reporting: Posts data into a relational database located on the central server The restaurant manager uses these data for reporting and decision making, profit and loss reports, budget variances, end-of-day reports, and other financial reports are generated 41

GROUP EXERCISE Search the web for examples of four great restaurant websites. Compare them and discuss your findings. 42