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Restaurant Industry . Overview In this presentation, general information about restaurant industry will be given. Goal To introduce the dynamics of Restaurant Industry . Objectives. To learn the history of the Restaurant Industry To learn the founders and leaders of Restaurant

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restaurant industry
Restaurant Industry

Overview

  • In this presentation, general information about restaurant industry will be given.

Goal

  • To introduce the dynamics of Restaurant Industry
objectives
Objectives
  • To learn the history of the Restaurant Industry
  • To learn the founders and leaders of Restaurant
  • To give statistical information about Restaurant Industry
  • To learn restaurant ownership type
  • To analyze restaurant concepts
  • To introduce some restaurant technologies
where have we come from
Where have we come from…
  • Cooking in Quantity…
  • Boulanger’s Restoratives…
  • Food Guilds…
  • Inns & Taverns…
  • Early 20th Century…
  • Diners, Drive-ins, Speakeasies, and Roadhouses…
  • Franchising…
founders and leaders
Founders and leaders…
  • Boulanger
  • Marie-Antoine Careme
  • Georges-Auguste Escoffier
  • Delmonico Brothers
  • Cesar Ritz
  • George Pullman
  • John Krueger
  • Ray Kroc
major changes
Major changes…
  • System of Inns and Taverns
  • The American Plan
  • 1820s Restaurants
  • Railroad Car
  • Cafeteria
important concepts and technological leaps
Important Concepts and Technological Leaps
  • 1803 – the first ice refrigerator
  • 1815 – the first industrial foodservice operation in our nation was begun when Robert Owen opened a dining facility for this workers and their families
  • 1825 – the first gas stove
  • 1834 – Bowery Savings Bank of New York began and employee dining program, which is still in operation today.
  • 1855 – Harvey Parker offered the first a la carte menu as part of the European plan at the original Parker House in Boston.
  • 1860s – the development of the first dishwashing machine
  • 1860s – the first martini was made in San Francisco’s Occidental Hotel
restaurant timeline
Restaurant timeline…
  • Europe
    • 1800 – 1833 – Careme fashioned “La Grande Cuisine”
    • 1825 – La Physiologie Du Gout published by the world’s best know gourmet, Brillat-Savarin
    • 1825 – 1858 – Alexis Soyer gained culinary eminence. Wrote Gastronomic Regeneration. Introduced steam cooking at Reform Club, Long, in 1840s. Only chef to be mentioned in Britain’s Dictionary of National Biography.
    • 1880 – 1900 – Cesar Ritz enticed the elite from their homes to hotels for entertaining. Managed the Claridge, the Carlton, and the Savoy.
    • 1880 – 1935 – Auguste Escoffier, known as “chef to kings and king of chefs,” worked with Ritz, published Le Guide Culinaire (1907), considered by many to be the New Testament of Cookery.
restaurant timeline8
Restaurant timeline…
  • United States
    • 1670 – First coffee house in Boston, served coffee and chocolate.
    • 1794 – French refugee opened a restorator in Boston. Served truffles, cheese fondue, and delicious soups.
    • 1829 – America’s first restaurant opened, Delmonico’s in New York City, served lunch, and had a lady cashier. First of more than a dozen eating establishments that brought the name “Delmonico’s” to pre-eminence in the service of fine food.
    • 1881 – Louis Sherry opened his first restaurant, developed the art of catering.
    • 1890s – The John R. Thompson Company operates first extensive commissary system (Chicago).
    • 1916 – Nathan’s Famous Hot Dogs, Coney Island, NY (Nathan Handwerker)
    • 1920 – Orange Julius opened in California by Julius Freed
    • 1921 – White Castle Hamburgers opens in Wichita Kansas
    • 1925 – Howard Johnson’s opens in Wollaston, MA
    • 1926 – Pizzeria Regina, Anthony Polcari, Boston, MA
    • 1926 – Maid-Rite, Floyd Angell, Muscatine, Iowa
    • 1929 – Karmelkorn, WY
    • 1932 – Krystal, Chattanooga, TN
    • 1934 – Steak ‘n Shake, Normal IL
    • 1936 – Carvel Ice Cream, New York NY
    • 1936 – Papa Gino’s, Boston MA
    • 1937 – Krispy Kreme, Salem NC (Vernon Rudolph)
    • 1938 – Big Boy, Glendale CA
    • 1939 – Country Kitchen, Cincinnati OH
restaurant timeline9
Restaurant timeline…
  • United States
    • 1940 – Dairy Queen, Joliet IL
    • 1944 – Baskin Robbins
    • 1948 – McDonalds, San Berdoo CA (Maurice & Dick McDonald)
    • 1950 – Dunkin Donuts
    • 1951 – Jack in the Box
    • 1952 – KFC, Corbin NY (Colonel Sanders)
    • 1954 – Burger King, Miami FL (James Mclomore/Dave Edgerton)
    • 1958 – IHOP, Toluca Lake CA
    • 1958 – Sizzler, Culver City CA
    • 1958 – Pizza Hut, Wichita KS
    • 1958 – S’barro, Brooklyn NY
    • 1959 – Little Caesars, Garden City MI
    • 1960 – Domino’s Pizza
    • 1960 – Hardees
    • 1962 – Taco Bell
    • 1965 – TGI Fridays
    • 1967 – Chick-fil-a
    • 1968 – Red Lobster
    • 1969 – Wendy’s
    • 1969 – Long John Silvers
    • 1969 – Cracker Barrel
restaurant timeline10
Restaurant timeline…
  • United States
    • 1971 – Schlotzskys
    • 1971 – Starbucks
    • 1972 – Popeyes
    • 1972 – The Cheesecake Factory
    • 1972 – Ruby Tuesday
    • 1974 – Subway
    • 1980 – Applebees
    • 1980 – Fuddruckers
    • 1982 – Olive Garden
    • 1983 – Quizno’s
    • 1983 – Papajohn’s Pizza
    • 1983 – Hooters
    • 1988 – Outback Steakhouse
major market share
Major Market Share…

Leading Contract Management Firms ($million)

major market share12
Major Market Share…

Largest Independent Restaurants ($million)

major market share13
Major Market Share…

Top Quick Service & Fast Food Chains

Outlets Market Share

  • McDonalds 13,099 43%
  • Burger King 8,248 19%
  • Wendy’s 5,315 13%
major market share14
Major Market Share…

Top Concepts…

  • Asian Panda Express 31.81%
  • Pizza Pizza Hut 13.4%
  • Italian Olive Garden 33.35%
  • Quick Service Boston Market 28.6%
  • Sandwich Subway 30.8%
  • Steak/BBQ Outback 32.44%
  • Coffee/Snack Dairy Queen 20.60%
employment data
Employment data…
  • Employs 12.2 million people
  • 9% of employed persons
  • Increased training in 2005
  • Labor-intensive
  • Almost ½ of the nation has worked in this sector
partnership
Partnership
  • A partnership is the relationship existing between two or more parties who join to carry on a trade or business. Each party contributes money, property, labor or skill and expects to share in the profits and losses of the business.
  • A good example is the Trabant University Center Food Court, it is staffed by both Aramark employees and Delaware students, but is still owned as well by the University.
pros and cons
Pros and Cons
  • Sharing Profits
  • Two heads are better than one….
  • Liability Issues
  • Management and Control
leasing
Leasing
  • Most Restaurants most commonly use the Ground Lease. Ground means that a tenant pays for long term use of a specified property for an period of time, usually 2-5 years.
  • And example is most every restaurant on Main Street that pays money to the owners of the buildings and the town.
pros and cons21
Pros and Cons
  • Leasing is less capital-intensive.
  • Capital assets may fluctuate in value.
  • Leasing may provide more flexibility to a business.
  • If the successful, lessors may demand higher rental payments.
franchising
Franchising
  • Franchising is essentially buying a pre built Restaurant and the ideals and name that come with it. Franchisees not only use a franchiser’s product, service, and trademark, but also the complete method for conducting the business, such as the marketing plan and operations manuals.
  • Darden Properties, McDonalds, and other QSR’s are prime examples of this.
pros and cons23
Pros and Cons
  • As practiced in retailing, franchising offers franchisees the advantage of starting up a new business quickly based on a proven trademark and formula of doing business, as opposed to having to build a new business and brand from scratch.
  • For some consumers, having franchises offer a consistent product or service makes life easier, they know what to expect when entering a franchised establishment.
  • Loss of control and self thought.
  • Too many franchises in one place can become an eyesore.
contract management
Contract Management
  • Contract Management is used by a Restaurant owner who wants to own the property, but do not want the hassle of running the business.
  • Darden Properties and Carlson Restaurants Worldwide Inc.
prevailing terms
Prevailing Terms
  • Manager vs. Owner – Who wins?
  • To sue or not to sue….that is the question.
  • Your place or mine?
pros and cons26
Pros and Cons
  • Allows an owner to essentially remain hands off and just watch the P&L statement.
  • Most managements companies in today’s world have vast experience in what they do, and are commonly able to better run a Hotel than your average person.
  • The owner has to pay the management company a set amount of money. And the management company always will get their cut regardless of how bad or well the Hotel is doing.
restaurant concepts

Restaurant Concepts

Profitable and Satisfying the Owner

restaurant concepts28
Restaurant Concepts
  • A blue print for restaurant business
  • Décor, Menu, Style and Location
  • PR, Advertising, The Promotion and The Operation itself
  • Restaurant Name and Restaurant Owner
variations among restaurants
Variations Among Restaurants
  • Menu Items
  • Food Quality
  • Menu Prices
  • Service
  • Ambience
service
Service
  • Table Service
  • Counter Service
  • Room Service
  • Self Service
  • Takeout or Delivery Service
catogories of restaurants
Catogories of Restaurants
  • Quick Service
  • Midscale Restaurant
  • Upscale Restaurant
types of restaurants
Fast Food

Fine Dining Restaurant

Ethnic Restaurant

Specialty Restaurant

Chain Restaurant

Theme Restaurant

Tops Restaurant

Types of Restaurants
dude where s my check pad new and coming technology
Dude? Where’s my check pad? New and coming technology….
  • RFID Tagging
  • Wireless
  • Programmable menus
  • CRM
  • Automation
  • Biometrics
  • Self Service Cooking