Chapter 4 Understanding the Restaurant Industry

1. Chapter 4Understanding theRestaurant Industry Hospitality Today: An Introduction Sixth Edition (103TXT or 103CIN)

2. Competencies forUnderstanding the Restaurant Industry • Describe in general terms the size of the restaurant industry, list restaurant industry segments, and describe eating and drinking places. • Describe food service outlets in lodging operations; the transportation, recreational, business and industry, educational, health care, and retail food service markets; corrections and military food service; and contract food management companies. (continued)

3. Competencies forUnderstanding the Restaurant Industry (continued) • Summarize some of the pitfalls of starting a new restaurant, cite reasons restaurants may fail, and outline some of the issues involved in starting a new restaurant, such as developing a concept, selecting a site, and having a feasibility study done.

4. Restaurant Industry Segments • Eating and drinking places • Lodging operations • Transportation market • Recreational market • Business and industry market • Educational market • Health care market • Retail market • Corrections food service • Military food service • Contractors

5. Full-Service Restaurants • PriceLuxury, high-priced, mid-priced, low-priced • MenuSteak and seafood houses, ethnic, regional, vegetarian • AtmosphereResult of architecture, decor, and setting (continued)

6. Quick-Service Restaurants (continued) • Narrow selection of food • Focus on convenience—speedy preparation and delivery • Limited service

7. Why Restaurants Fail • Lack of business knowledge • Lack of technical knowledge • Lack of sufficient working capital