Chapter 2 Understanding food service operations

1. Chapter 2 Understanding food service operations

2. Food service segments Food purchased from business in the commercial or non commercial food service. The food is prepared from professional chefs Commercial food service segment • Includes business whose mane goal is preparing and selling food to make money Noncommercial food service segment • Operations providing food services as a secondary activity for the business in which it is found

3. Commercial food service • The commercial food service includes restaurants, hotels, clubs, and catering. • Restaurants can be categorize as full service or quick service • Full service restaurants • Employ servers to take orders • Span in range of styles from fine dining to casual • They serve a wide variety of cuisines, and have moderate menu prices • Quick service restaurants • Also known as fast food restaurants • Before 1950’s the quick service industry was very small, today it accounts for 38 percent of the dollars spent on dining out • They offer limited menus • They are some of the most lucrative operations regardless of their lower prices

4. Hotels • Some only have vending machines and a small continental breakfast • Larger hotels offer a variety of cuisines • They often offer room service and banquet facilities • Clubs • Country clubs offer an in house restaurant and banquet facilities for members • Often city clubs are formed around professional or social organizations, and use the clubs dining room to conduct business • Catering • Provides food and services for groups • Off premises catering where the food is taken to the event such as weddings, proms, reunions and conventions

5. Noncommercial foodservice • Serves meals for onsite business and organizations • Institutional foodservice is an example of a noncommercial foodservice • Often offer better hours and benefits then restaurants

6. Legal forms of business ownership • The economic system in the United States is called free enterprise • It promotes a persons right to own a business and manage it with little intervention from the government • Sole proprietorship: • A business in which one person owns and operates the business. This person is responsible for all debts of the business • Partnership: • A business in which ownership is shared by two or more people. The partners should have a legal agreement that spells out the responsibilities of each partner. • Corporation • Is granted a charter from the state, which recognizes it as a separate entity with legal rights. Ownership of a corporation is divided among investors in parts called shares. Shareholders are not responsible for the debts of the corporation.

7. Foodservice laws and regulations • Laws and regulations are rules governing how a restaurant or other foodservice operation can conduct business. • These rules may be enforced by three levels of government: federal state or local • Federal: • Employment and hiring practices • Workplace safety • Environment issues • State: • Chartering a corporation • Establishing a sanitation code • Regulating pay and benefits

8. Local: • Zoning • Licensing and permit issues, such as business licenses • Building inspections • Liquor licenses

9. Organization of food service business • Once the legal form of ownership is decided upon including on how the business is going to be organized. • Independent Restaurant: • A restaurant that is not part of a group, it stands alone as far as uniqueness and has different ownership • Chain restaurants • A group of restaurants owned by the same company and often referred to as multi-unit foodservice operations • Franchise restaurants: • Are independently owned restaurants that are part of a larger restaurant chain. The owner who pays the right to operate a francise is called a franchisee. They pay the parent company for the right to use the brand name, concept, logo, and advertising.

10. Entrepreneurship • Someone who organizes a business and assumes the risk for it. • Most restaurants are independent operations • They require less money to start up and are easier to manage

11. Risks and rewards • Being your own boss • Financially • Assumes the large part of the responsibility for repaying the debts of the failed business • Restaurants suffer from the highest failure rates of any business