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Chapter 7 The Restaurant Business

Chapter 7 The Restaurant Business. 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 and independent restaurants List the classifications of restaurants

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Chapter 7 The Restaurant Business

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  1. Chapter 7The Restaurant Business

  2. 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 and independent restaurants • List the classifications of restaurants • Differentiate the characteristics of chain and independent restaurants

  3. 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, and associates

  4. More About Restaurants • 50% of the food dollar is spent away from home • Multi-billion-dollar business • Employ 11.7 million people

  5. 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

  6. Culinary Greats • Auguste Escoffier: • Patron saint of cooking • Julia Child • Emeril “BAM” Lagasse • Bobby Flay • Charlie Trotter: • Considered America’s finest • Alice Waters • Paul Prudhomme

  7. Cooking skills Employability traits People skills Chefs of Today Need to Possess:

  8. Figure 7-1Approximate Market Share of Restaurant Segments

  9. 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: • Morton’s • Ruth Chris’s • Roy Flemings

  10. 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

  11. Other Restaurant Classifications • Theme restaurants • Celebrity-owned: • Owned by celebrities such as Michael Jordan, Dan Marino, Steven Segal, Gloria Estefan, Junior Seau, Denzel Washington • Seau’s San Diego • All Star Café • House of Blues

  12. Casual Dining and Dinner House Restaurants • Mid-scale casual restaurants • Family restaurants • Ethnic restaurants • Specialty restaurants

  13. Specialty Quick Service Restaurants (QSR) • Theme related • $111 billion annual sales • Better known as fast food • Limited menus • Guest helps defray labor costs

  14. Quick ServiceHamburger • McDonald’s and Ray Kroc: • Added breakfast • Expanding overseas • Co-develop sites with gasoline companies • $33 billion worldwide sales • Drive thru

  15. Quick Service Pizza • Local and regional chains all with delivery service • $20 billion market • Four major chains: • Pizza Hut • Domino’s • Papa Johns • Little Caesars

  16. Quick Service Chicken • KFC is market leader: • Home delivery • “3-in-1” restaurants • Other chains: • Church’s Chicken • Popeye’s

  17. Other Types of Restaurants • Steakhouses: • New growth area • Outback Steakhouse • Seafood restaurants • Pancake restaurants • Sandwich restaurants • Family restaurants

  18. Ethnic Restaurants • Independently owned and operated • Mexican restaurants are largest growth segment • Different types are developing: • Thai • Indian

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

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