Introduction to Hospitality

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Introduction to Hospitality

• The Restaurant Business

Virginia Stipp Lawrence, MHM
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Welcome to being a Foodie!

• First things First
• Module Assignments, Confusion?
• Career Goal Assignment
• www.austincc.edu/vlawrenc/
• What is a Foodie?

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The meaning of the word Restaurant

• The word restaurant covers a broad range of food
  service operations.
• The term comes from a French word meaning
  restorer of energy.
• In the mid-1700s - it was known as any public
  place that offered soup and bread.
• Today - it is any public place that specializes
  in the sale of prepared food for consumption on
  or off premise.

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Food Away From Home May Be Purchased in a Variety
of Locations

• Employee cafeterias
• convenience stores
• traditional restaurants

• hotel facilities
• casinos
• taverns

This speaks to the size and scope of the food
service industry, and most of these segments are
experiencing positive growth!
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On-Site Food Service
This is the other major food service sector and
is sometimes referred to as institutional food
service.

• This part of the industry is composed of
  contractors and caterers who serve food in the
  following places
• manufacturing plants
• office buildings
• healthcare facilities
• schools and colleges
• and many more...

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Share of Food Service MarketPercentage of Total
Sales in Billions
This slide identifies the relative shares of the
market held by the following segments

• Eating places 67.4
• Bars and taverns 3.2
• Institutions operating own food service 8.7
• Managed services 6.5
• Food service in hotels and motels 5.2
• Other commercial 8.7
• Military 0.3

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Off-Premise Sales Vs. On-Premise Sales

• Off- Premise Sales
• Includes operations such as drive-through,
  takeout, and delivery.
• Biggest growth in food service industry for many
  years.
• Since the late 1980s it has the lions share of
  growth in total restaurant sales

• On-Premise Sales
• Includes sales that take place at the food
  service location.
• This type of sales actually declined in 1992, but
  has increased each year since.

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Fast Food Alters the meaning of Restaurant

• During the 1960s and 1970s, fast food altered
  dramatically the meaning of what a restaurant
  was.
• This trend toward off-premise consumption
  suggests a fundamental change in the business
  definition of restaurants and how they are
  evolving
• But there were other changes happening as well...

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Fast Food Alters the meaning of Restaurant

• Formal fine dining has been declining in relative
  importance, whereas casual dining has been
  growing very rapidly
• As mentioned in chapter one, this decline in fine
  dining and the rise in fast food preference may
  be due to the changing age composition of North
  America.
• The Baby Boomers were raised on fast food and
  prefer the informal and casual atmosphere that is
  comfortable for the whole family

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QSR?

• QSR stands for Quick-Service restaurants.
• These restaurants has seen sales continue to rise
  for the most part
• Sales rose by 4.4 percent in 2000 over 1999
• There are many QSRs throughout Florida

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The Restaurant Business

• The restaurant Business is constantly changing
• There are so many types of restaurants that it is
  difficult to devise a mode to fit them all.
• Nevertheless, we need some basic terminology to
  describe the field, even in general terms. So
  here we go

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Basic Restaurant Terminology

• Eating Market
• This includes the off-premise operations such as
  takeout and delivery.
• Much of it is now referred to as home meal
  replacement (HMR).
• Dining Market
• This includes the on-premise operations such as
  fine dining and casual upscale restaurants

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More Basic Restaurant Terminology

• Quick Service Restaurants (QSR)
• This includes the midscale operations such as
  family restaurants.
• These are the contemporary, popular-priced
  restaurants and this comprises the largest
  segment of the restaurant industry today

Lets talk a little more about the Quick Service
Restaurants
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Characteristics of Quick-Service Restaurants

• Many locations
• Limited menus
• High and variable sales
• Fast service with much self service
• Many part-time employees with varied schedules
• Unskilled labor

• Skilled management
• Unit managers in key roles
• Highly competitive prices
• Chains dominate field
• Simple units
• Complex systems

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Midscale Restaurants

• Family restaurants
• Commercial cafeterias and buffets
• Home meal replacement (HMR)
• Pizza operations

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Family-Style Restaurant Chains

• Dennys
• Waffle House
• International House of Pancakes (IHOP)
• Shoneys
• Cracker Barrel
• Boston Market

• Perkins Family Restaurant
• Cocos
• Big Boy
• Friendlys Restaurants
• Bob Evans Farms

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Casual Restaurants

• Specialty establishments
• Ethnic restaurants
• Entertainment sometimes called eatertainment

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• Restaurant Operations

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Three Main Areas of Food Service Operations

• Front of the House
• Back of the House
• Office

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Front of the House

• The key responsibility of the front of the house
  is GUEST SATISFACTION!
• It is extremely important to remember that as a
  front of the house employee, the key to providing
  excellent guest satisfaction is fulfilling the
  guests wants and expectations depending upon
  what type of Food Service Operation is employing
  you

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Front of the House Tasks Include

• Some tasks include
• Greeting the guest
• Taking the order
• Serving the food
• Removing used tableware
• Accepting payment and accounting for cash and
  charge sales
• Thanking the guest and inviting them for future
  business

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Back of the House

• The principal responsibility of the back of the
  house is the quality of the food the guest is
  served
• Sanitation is an extremely important
  responsibility of employees in the back of the
  house
• Finally, cost control - food, labor, and supplies
  - is a make or break responsibility of the back
  of the house

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Back of the House Tasks

• Some Tasks Performed include
• Food production
• Food quality and cost control
• Dish washing and pot washing
• Labor cost control
• Back-of-the-house cleaning
• Pest control

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Office

• The first responsibility of employees in the
  office is providing administrative assistance to
  the general manager and his or her staff
• The office staff is responsible for all of the
  daily correspondence, phone calls, and office
  procedures to help free the managers from these
  time-consuming duties
• Lastly, the office staff is responsible for
  keeping the books

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Office Staff Tasks

• Correspondence
• Phone calls
• Bookkeeping, (i.e., preliminary processing of
  cashier deposits, payroll preparation, and bill
  approval)
• Cost control report preparation

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Division of a Restaurants Day

• Opening
• Before and after the rush
• Meal periods
• Closing

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Controllable Expenses

• Payroll costs
• Employee benefits
• Utilities
• Advertising and promotion
• Administrative costs
• Repairs and maintenance

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Restaurant Organizations Chain, Independent or
Franchise?
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Forms of Restaurant Ownership

• Chain
• Independent
• Franchise

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Chain Strengths

• Marketing and brand recognition
• Site selection expertise
• Access to capital
• Purchasing (economies of scale)
• Centrally administered control and information
  systems
• Personnel program development

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Two Kinds of Franchising

• Product/Trade name franchising Confers the
  right to use a brand name and to sell a
  particular product
• Business Format franchising Includes the use of
  product, service, and other systems and standards
  associated with the business

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Common Characteristics of a Franchise Agreement

• Financial accounting and maintenance of records
• Training
• Insurance
• Products and services which will be purchased by
  franchisee
• Transferability and renewals

• The duration of the agreement
• Fee and payment structure
• Responsibilities of both parties
• Permitted use of symbols
• Operating procedures
• Confidentiality
• Advertising and Promotion

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Services Provided to Franchisees

• Initial Services
• Overall concept/design planning
• Franchisee screening
• Site selection and planning
• Pre-opening training
• Operations manuals
• Employee handbooks

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Services Provided to Franchises

• Continuing Services
• Operating and control procedures
• Information management
• Quality control
• Training
• Field support

• Purchasing
• Marketing
• Advertising
• New products
• New concepts

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What is your role, skills?

• Leadership
• Management
• Organizational
• Operational
• Human
• Balance
• Service

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Next Week

• Culinary Arts