Chapter 8 Restaurant Operations

1. Chapter 8Restaurant Operations

2. After Reading and Studying This Chapter, You Should Be Able to: • Apply the forecasting technique used in the chapter to measure expected volume of business • Name and describe the various types of services • Explain the important aspects of food production • Describe the key points in purchasing, receiving, storing and issuing

3. After Reading and Studying This Chapter, You Should Be Able to: • Explain the difference between controllable expenses and fixed costs • Explain the components of an income statement and operating ratios • Describe the important aspects of a control system for a restaurant operation • Outline the functional areas and tasks of a foodservice/restaurant manager

4. Front of the House • “Curbside Appeal” • Organizational chart • Dining Room Manager • Hostess • Servers • Bussers

5. Restaurant Forecasting • Budget projections • Guest counts or covers • Meal periods • Day of week • Special holidays • Average guest check

6. Food and Beverage Occupancy Statistics • Occupancy Statistics • Cover = A guest • Number of Turns = Number of Covers Number of Seats

7. Average RestaurantCheck • Average check = Food and Beverage Sales Number of Covers

8. Service • Guests want less formal, yet professional • Training is necessary • Servers are salespeople • Suggestive selling

9. Types of RestaurantService • French Service • Russian Service • American Service

10. Balancing the FOH with the BOH • Purchasing • Receiving • Storing and issuing • Food production • Stewarding • Budgeting • Accounting and control

11. Food Production • Based on expected volume of business • Prep work done prior to service times • Kitchen layout • Cooking line • Teamwork

12. Kitchen/Food Production • Staffing and scheduling • Training and development • Management involvement • Employee recognition

13. Production Procedures • Production sheets • Count the product on hand (par levels) • Determine production level • Determine actual sales • Key to consistency and quality of food

14. Purchasing • Use of standards (product specs) • System of control for theft and loss • Par stock and reorder points • Who will do the purchasing? • Who will handle receiving and storage?

15. Receiving, Storing and Issuing • Time and date delivery is to be made • Point of control • Authorized requisitions • FIFO

16. Food Cost Percentage • Opening inventory • Purchases are added to opening inventory • Subtract returns, spoilage and complimentary meals • Subtract closing inventory • Final number = Cost of goods sold

17. Food Cost Percentage • Food Cost Percentage (cont.) • Food Cost / Food Sales X 100 = Food Cost %

18. Typical Cost Percentages • Cost Percentages • Labor costs 20 to 24% • Food costs 28 to 32% • Beverage costs 18 to 24%

19. Lease and Controllable Expenses • Expenses • Lease cost should be 5 to 8% of sales • Typically also pay for insurance, utilities and commercial fees • Controllable expenses are also variable expenses

20. Controls • Loss of $20 billion a year due to theft and cash mishandling • One out of every 3 employees will steal • 35% of restaurants fail due to theft • 75% of missing inventory is from theft • 73% of all job applications are falsified • Use of POS can solve some problems

21. Trends • More flavorful food • Increased takeout meals and home meal replacement • Food safety and sanitation • Guests becoming more sophisticated

22. Trends • More food court restaurants • Steakhouses are again popular • Segments are splitting into tiers • QSRs in convenience stores • Difficulty in finding good employees