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Maximizing Profits in the Restaurant Industry

Learn the distinctions in food-service facilities, types of restaurants, and operations to boost profitability. Topics include banquet catering, specialized dining, and ways to increase restaurant profits. Dive into restaurant categories and understand back-of-the-house operations for effective management.

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Maximizing Profits in the Restaurant Industry

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  1. The Restaurant Business Travel & Tourism By: Allison Bentley

  2. Objectives • Explain the difference between commercial and on-site food-service facilities. • Identify the various categories of the commercial food-service industry. • Describe types of restaurant businesses. • Identify and explain front-and back-of-the house operations. • Identify ways restaurants can increase profits.

  3. Banquet A meal served to a group of people who all eat together at the same time and location Catering Special events Involves feeding a large number of people on a variety of occasions and the guests eat at varying times Specialized Dining Restaurants that concentrate on a particular type of food or atmosphere Cafeterias Food service in which the food is displayed along a counter where the customer picks it up Hospitals Food service available to patients, employees and visitors Business Cafeterias Food service provided to employees Corporate businesses Concessions Small, convenient locations where meals, snacks or beverages can be purchased by visitors Theatre Fair Stadium Concerts Theme Parks Terms to Know

  4. Types of Food Service Locations • Commercial • Full Service • Fine dining- Ruth’s Chris Steakhouse • Casual dining-fastest growing • Golden Corral • Limited Service Facilities-most profitable • Quick service facilities • Boston Market, McDonald’s, Starbuck’s • Specialty or Specialized Dining • Theme, ethnic, pizza, chicken, steak, seafood, hamburgers

  5. Types of Food Service Locations • On-Site Facilities • Schools • Health Care Facilities • Business and Industry • Chick-Fil-A Corporate Cafeteria • Military • Airlines and Airports • Restaurants in airports and trade shows • Correctional Facilities • Convenience Stores

  6. Types of Restaurant Businesses • Chain- a type of business that has more than one location and is under the same ownership • Outback • Olive Garden • Franchise-An agreement that is set up to allow a business to sell a companies products at their location • Subway • McDonalds • Independents-Not connected to other well known restaurants • Family Owned

  7. Restaurants Within Properties • Private Clubs • Country Clubs • Theme Parks • Disney • Retail Establishments • Food courts • Lodging Establishments • Denney’s next to moderate priced motels

  8. Restaurant Operations • General Manager • Person ultimately responsible for the operation • Front of the House • What services would this be? • Back of the House • Production and kitchen responsibilities • Like what?

  9. Maintaining Inventory • Periodic Counts (daily and weekly) • Very important to control shrinkage • Liquor • Helps maintain balance between purchases and sales • LIFO/FIFO- inventory control method • What is Par? • The amount of a product a restaurant wants to keep on hand. • Missed Delivery • Spoilage

  10. How do you increase your profits? • Controlling variable expenses • Payroll • Purchases • Utilities • Supplies • Breakage • Giveaways • Leftover food • Maintaining adequate inventory • Increase sales • Increasing unit sales • Suggestive selling – i.e. desserts (high markup) • Raising prices • Increase number of customers

  11. Could you make a profit?

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