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Chapter Three

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-1700s - it was known as any public place that offered soup and bread.

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Chapter Three

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  1. ChapterThree The Restaurant Business

  2. 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-1700s - 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

  3. Employee cafeterias convenience stores traditional restaurants hotel facilities casinos taverns Food Away From Home May Be Purchased in a Variety of Locations: 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

  4. 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

  5. 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

  6. Off- Premise Sales: Includes operations such as drive-through, takeout, and delivery. Biggest growth in food service industry for many years. Since the late 1980s 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. Off-Premise Sales Vs. On-Premise Sales: Varied Field of Food Service

  7. Fast Food Alters the meaning of Restaurant • During the 1960s and 1970s, 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

  8. 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

  9. 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

  10. 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…

  11. 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

  12. 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…

  13. 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 Characteristics of Quick-Service Restaurants

  14. Midscale Restaurants • Family restaurants • Commercial cafeterias and buffets • Home meal replacement (HMR) • Pizza operations

  15. 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 Family-Style Restaurant Chains

  16. Casual Restaurants • Specialty establishments • Ethnic restaurants • Entertainment – sometimes called “eatertainment”

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