Types of Foodservice Establishments

2. Chapter 2 Understanding Foodservice Operations

3. Objective • Recognize various types of foodservice establishments that employ chefs and cooks

4. Types of Foodservice Establishments • Cooks and chefs work in • restaurants • hotels • clubs • catering operations • institutional foodservice

5. Categories of restaurants Full-service restaurants: span a range of styles from fine dining to casual Quick-service restaurants: customers typically place orders at counter; offer speed, convenience, and reasonable prices; often called fast-food restaurants What are some examples of full-service and quick-service restaurants in your area? Restaurants

6. Hotels • Hotel dining options range from vending machines to numerous on-site restaurants of varying styles and cuisines

7. Hotels • Hotel restaurants provide service to registered guests as well as the community • Many hotels operate room service and banquet facilities

8. Clubs • Many private clubs provide their members with clubhouses with restaurant and banquet facilities • Members expect fine cuisine and excellent service • Members of city clubs use the club’s dining rooms for business and entertaining purposes

9. Catering • Catered events are often held in a hall or banquet facility • Off-premise catering involves catering locations that do not normally serve food

10. Institutional Foodservice • Institutional foodservice, also known as noncommercial foodservice, allows employees and business clients a place to eat without leaving the premises • Many institutional foodservice operations are run by very large foodservice companies

11. Objective • Compare the different forms of business ownership

12. Legal Forms of Business Ownership • The three main legal categories of ownership are • sole proprietorship • partnership • corporation

13. Sole Proprietorship • The owner of a sole proprietorship is personally responsible for all debts of the business • Sole proprietors have final authority on all decisions

14. Partnership • A partnership agreement spells out the responsibilities of each partner and how profits and losses will be divided • Each owner is personally responsible for all the debts of the business in a partnership • Legally, the partnership is ended when one or more partners dies or leaves the business

15. Corporation • Ownership of a corporation is divided among investors in parts called shares • The corporation has most of the rights and responsibilities of a real person, including responsibility for its debts • In general, corporations pay more taxes than other forms of ownership

16. Objective • Explain the different ways foodservice businesses are organized

17. Organization of Foodservice Businesses • Foodservice businesses can be organized as • independent restaurants • chains • franchises

18. An independent restaurant is a restaurant that is not a part of a group Each is a unique operation with different ownership What are some advantages and disadvantages for independent restaurants? Independent Restaurants

19. Chain restaurants are often referred to as “multi-unit foodservice operations” A chain uses the same menu, décor, and management practices in each location What are some advantages and disadvantages for chain restaurants? Chains

20. Franchises • The owner of a franchise restaurant pays for the right to operate a franchise and is called a franchisee • The franchisee • pays a fee for the right to use the brand name, concept, logo, and advertising • is required to use the franchise company’s products and operate by its standards

21. Objective • Summarize the risks and rewards of entrepreneurship

22. Entrepreneurship • Many entrepreneurs are attracted to foodservice businesses

23. Entrepreneurship • Successful chef-entrepreneurs must have • great culinary skills • business management expertise • the ability to see the larger business environment and new opportunities

24. Risks of entrepreneurship Repayment of debts if the business fails Restaurants have high failure rates Rewards of entrepreneurship Being your own boss Financial gain Personal and professional pride Risks and Rewards

25. Name the types of foodservice establishments that employ chefs and cooks Review • Restaurants, hotels, clubs, catering, institutional foodservice

26. Describe the difference between full-service and quick-service restaurants Review • Full-service: servers take the customer’s order and bring the meal to their table; can be casual or fine-dining • Quick-service: customers typically place orders at a counter; offer speed, convenience, and reasonable prices

27. What is institutional foodservice? Review • Institutional foodservice supplies meals for businesses and organizations that want to provide foodservice for employees and clients

28. Name and describe the three forms of business ownership Review • Sole proprietorship: one owner; responsible for all debts of the business; makes all decisions • Partnership: ownership shared by two or more people; each owner is responsible for all debts of the business; share business responsibilities • Corporation: a separate entity with legal rights; ownership is divided among investors; the corporation is responsible for its debts

29. Explain how independent restaurants, chains, and franchises differ Review • An independent restaurant is not part of a group; a chain is a group of restaurants owned by the same company; franchise restaurants are independently owned restaurants that are part of a larger restaurant chain

30. What attracts entrepreneurs to foodservice businesses? Review • Most restaurants are small, independent operations; small businesses have lower start-up costs; small businesses are easier to manage

31. Describe the risks and rewards of entrepreneurship Review • Risks: having to repay debts if the business fails; restaurants have high failure rates • Rewards: being your own boss; financial gain; personal and professional pride