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1. . . Competencies forThe Food Service Industry. Distinguish between commercial and noncommercial food service operations.Outline the origins and development of food service in hotels, restaurants, and institutions.Describe various commercial and noncommercial food service facilities and discuss
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3. 2 Advantages and Disadvantagesof Chain Restaurants Advantages:
Ready access to cash and credit
Ability to experiment without great risk
Resources to hire staff specialists
Greater access to useful comparative financial information
Disadvantage:
Bureaucratic rules and procedures can slow response times to market changes
4. 3 Advantages and Disadvantagesof Owning or ManagingFranchise Restaurants Advantages:
Assistance in opening and operating the business
Franchisor-sponsored training and materials
Greater exposure and higher revenue because of extensive advertising and name recognition
Lower costs due to volume purchasing
Tested operating procedures
5. 4 Advantages and Disadvantagesof Owning or ManagingFranchise Restaurants Disadvantages:
Franchise contracts restrict style and methods of operation, products served, services offered, décor, and furnishings
Franchise contracts usually favor the franchisor
6. 5 Advantages and Disadvantages of Contract Management in Noncommercial Facilities Advantages:
Large management companies have more resources to solve problems
Ability to negotiate better deals with suppliers
Greater efficiency and therefore lower overall cost
Allows food service to be operated by experts, rather than institution administrators
7. 6 Advantages and Disadvantages of Contract Management in Noncommercial Facilities Disadvantages:
Management companies can affect the institution’s public image
Some people feel that profit-making operators do not belong in noncommercial settings
The institution may become dependent on the management company