Chapter 6: The Restaurant Business

1. Chapter 6: The Restaurant Business

2. Chapter 6 The Restaurant Business • The Restaurant Business • Classical Cuisine • Food Trends and Practices • Developing a Restaurant • Menu Planning • Classifications • Trends

3. The Restaurant Business • Vital part of everyday life • As a society we spend about 50% of our food dollars away from home • The word restaurant comes from the French word meaning restore • Multi-billion dollar business employing 12.5 million people

4. Classical Cuisine • North America gained most of its culinary legacy from France through 2 main events: • French Revolution in 1793—caused the best French chefs of the day to lose their employment because their bosses lost their heads! Many chefs came to North America as a result. • In 1784, Thomas Jefferson spent five years as envoy to France, and brought a French chef to the White House when he became president. • Mari-Antoine Careme (1784–1833) is credited as the founder of classical cuisine • August Escoffier (1846–1935) is also noted for his many contributions to cuisine

5. Classical Cuisine • There are five mother sauces: Béchamel, velouté, espagnole, tomato, and hollandaise • Nouvelle cuisine is a lighter cuisine and is based on simpler preparations—with the aid of processors, blenders, and juicers—using more natural flavors and ingredients

6. Food Trends and Practices • Chefs will need: • A strong culinary foundation. • Multicultural cooking skills and strong employability traits. • Additional management skills.

7. Developing a Restaurant • The restaurant: • Operating philosophy represents the way the company does business. • Market is composed of those guests who will patronize the restaurant. • Concepts are created with guests in mind and should fit a definite market. • Location should also appeal to the target market. • Ambiance, orthe atmosphere,that a restaurant creates has both immediate conscious and unconscious effects on guests.

8. Menu Planning • There are six main types of menus: • A la carte menus—items are individually priced • Table d’hôte menus—a selection of one or more items for each course at a fixed price • Du jour menus—lists the items “of the day” • Tourist menus—used to attract tourists’ attention • California menus—are so named because in some California restaurants, guests may order any item on the menu at any time of the day • Cyclical menus—repeat themselves

9. Menu Planning • The many considerations in menu planning include: • Needs and desires of guests • Capabilities of cooks • Equipment capacity and layout • Consistency and availability of menu ingredients • Price and pricing strategy (cost and profitability) • Nutritional value • Accuracy in menu • Menu analysis (contribution margin) • Menu design • Menu engineering • Chain menus

10. Independent Restaurants • Typically owned by 1 or more owners—usually involved in the day-to-day operation of the business • Not affiliated with any national brand or name • They offer the owner independence, creativity, and flexibility, but are accompanied by the risk of failing

11. Chain Restaurants • A group of restaurants identical in market, concept, design, service, food, and name • The same menu, food quality, level of service, and atmosphere can be found in any one of the restaurants—regardless of location

12. Fine Dining • May be formal or casual and may be further categorized by price, decor/atmosphere, level of formality, and menu • Many serve haute cuisine—a French term meaning “elegant dining,” or literally “high food” • Most are independently owned and operated by an entrepreneur or a partnership • The level of service is generally high

13. Theme Restaurants  • A combination of a sophisticated specialty and several other types of restaurants • Generally serve a limited menu

14. Theme Restaurants • Of the many popular theme restaurants, 2 stand out: • First, the nostalgia of the 1950s—as done in the T-Bird and Corvette diners • Second, the dinner house category—among some of the better-known national and regional chains are TGI Friday’s, Houlihan’s, and Bennigan’s • Casual, American bistro-type restaurants that combine a lively atmosphere created in part by assorted bric-a-brac to decorate the various ledges and walls

15. Celebrity Restaurants • Growing in popularity • Wolfgang Puck, Naomi Campbell, Michael Jordan, etc. • Celebrity restaurants generally have an extra zing to them—a winning combination of design, atmosphere, food, and perhaps the thrill of an occasional visit by the owner(s)

16. Steak Houses • Adding additional value-priced items like chicken and fish to their menus in order to attract more customers • Upscale market leaders are Ruth’s Chris, Morton’s, and Flemings • The mid-price market leader is Outback Steakhouse

17. Casual Dining • Relaxed—includes restaurants from several classifications: • Mid-scale casual restaurants: Romano’s Macaroni Grill, The Olive Garden • Family restaurants: Cracker Barrel, Coco’s, Carrow’s • Ethnic restaurants: Flavor Thai, Cantina Latina, Panda Express • Over the past few years, the trend in dinner-house restaurantshas been toward more casual dining

18. Family Restaurants • Evolved from the coffee shop style of restaurant • Most are individually or family operated • Located in, or with easy access to, the suburbs • Most offer an informal setting with a simple menu and service designed to please the whole family

19. Ethnic Restaurants • Majority are independently owned and operated • Mexican restaurants are the fastest growing segment • Our major cities offer a great variety of ethnic restaurants, and their popularity is increasing

20. Quick-Service/Fast-Food Restaurants • Included in this category: Hamburger, pizza, chicken, pancakes, sandwich shops, and delivery services • Increasing in popularity because of their location strategies

21. Hamburger • McDonald’s • New menu items (salads, breakfast, etc.) • Expanding overseas • Co-developing sites with gasoline companies • Each of the major hamburger restaurant chains has a unique positioning strategy to attract their target markets • Burger King hamburgers are flame broiled • Wendy’s uses fresh patties

22. Pizza • Continues to grow • $21 billion market • Some major chains: • Pizza Hut • Domino’s Pizza • Papa John’s • Little Caesars

23. Chicken • Perceived as a healthier alternative to burgers • KFC is market leader • Other chains: • Church’s Chicken • Popeye’s

24. Sandwich • Recently, menu debuts in the sandwich segment have outpaced all others • Classics, like melts and club sandwiches, have returned—but now there are also wraps • The leader in this segment is Subway—which operates more than 20,000 units in 75 countries

25. Bakery Café • Headed up by Panera Bread • Goal is to make specialty bread broadly available to consumers across the United States • Focuses on the art and craft of bread making with made-to-order sandwiches, tossed-to-order salads, and soup served in bread bowls

26. Trends • Demographics • Branding • Alternative outlets • Globalization • Continued diversification • More twin and multiple locations • More points of service

27. The End