HRMPS 12 (MIDTERM)Chapter 4 restaurant operations
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HRMPS 12 (MIDTERM)Chapter 4 restaurant operations






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  • The manager should be visible in the dining area. He make sure that the guest are satisfied with every service rendered. He is also responsible in supervising cleaning staff and for the opening and closing procedure
  • Part of the restaurant operation is formulating a budget that project sales and cost for the year on a weekly and monthly basis. Forecasting restaurant sales h 2 components: 1. Guest counts (covers), are the number of guest patronizing the restaurant over a given period of time. To forecast the number of guest for the year, the year is divided into 13 periods.
  • Restaurants have 3 basic stake holders: Customer, Employees, the business owner. Without profit, the restaurant cannot serve the 3 stake holders. Profit serves a vital role in any business. A superior operation is to achieve good reputation (word of mouth)
  • The key to reducing cost is to reduce waste without sacrificing the quality.
  • Purchasing – It is desirable for restaurants to establish standards for each product, called “product specification”. When ordering meat, for example, the cut, weight, size, percentage of fat content, and number of days aged are all factors that are specified by the purchaser.

HRMPS 12 (MIDTERM)Chapter 4 restaurant operations HRMPS 12 (MIDTERM)Chapter 4 restaurant operations Presentation Transcript

  • Chapter 8Restaurant Operations
  • Scope & Sequence 1. Front of the House - Definition - Functions - Restaurant Forecasting - Suggestive Selling 2. Back of the House - Definition - Functions2 Chapter 8 - Restaurant Operations
  • After Reading and Studying ThisChapter, You Should Be Able to:Apply the forecasting technique used in the chapter to measure expected volume of businessName and describe the various types of servicesExplain the important aspects of food productionDescribe the key points in purchasing, receiving, storing and issuing View slide
  • 3 Areas of the Restaurant: 1.Front of the House 2.Back of the House 3.Office4 Chapter 8 - Restaurant Operations View slide
  • Front of the House • The key responsibility of the FOH is great satisfaction • It where the exchange of goods and services takes place • The guest expects a friendly greeting, accuracy in order filling, cheerful willingness to handle any problems that occur. Tasks:  Greeting the guest  Taking the order  Serving the food  Removing used table ware  Accepting payment and accounting for sales, charge as well as cash  Thanking the guest and inviting comments and return business5 Chapter 8 - Restaurant Operations
  • BACK OF THE HOUSE A term used in the restaurant business to refer to kitchen area and staff. The principal responsibility of BOH is the quality of the food for the guest. Food safety is extremely important. Cost control, management of supplies are significant responsibilities. Controlling quality and cost are parallel activities. Standardized recipe is important (correct ingredients ensuring quality and cost. Closing (cleaning up, shutting down, locking up). The closing kitchen manager is responsible for major cleaning up. Putting valuable food and beverage into secure storage.6 Chapter 8 - Restaurant Operations
  • THE OFFICE The office staff handles correspondence, phone calls, office procedures. Keeping the books. Cashier’s deposits, preparation of the payroll, approval of bills, bill payments.Restaurant Forecasting: Budget projections Guest counts or covers Meal periods Day of week Special holidays Average guest check7 Chapter 8 - Restaurant Operations
  • Making a Profit in Food Service Operation Increasing Sales: 2 Basic Approaches: 1. To sell more to people (advertising) 2. To sell more to your present customer (selling products more). 3. Increase the check average (to increase the price), however this is not very effective. It may result to the lost of customers. 4. Bundling,(another strategy) ex. Combo meal 5. Suggestive selling8 Chapter 8 - Restaurant Operations
  • Reducing Cost1. Careful scheduling of employees.2. Improve portion control3. More careful monitoring of the issue and the use of supplies9 Chapter 8 - Restaurant Operations
  • Food Cost Control Process 1. Purchasing: - Standard for each item (product specification) - Systems that minimize effort and maximize control of theft and losses from other sources. 2. 2. Receiving: - Is a point of control in the restaurant operation. The purpose of receiving is to ensure the quantity, quality, and price are exactly as ordered.10 Chapter 8 - Restaurant Operations
  • 3. Storing/ Issuing: - Records must be kept of all items going into and out of the stores. If more than one person has access to the stores, it is difficult to know where to attach responsibility in case of losses. 4. Budgeting: (2 Categories) a. Fixed costs – are constant regardless the volume of business.(rent, interest, depreciation) b. Variable cost – fluctuate with the volume of business, it also includes the controllable expenses (payroll, benefits, direct operating expense , marketing ands promotion, energy & utility)11 Chapter 8 - Restaurant Operations
  • Typical Cost PercentagesCost Percentages Labor costs 20 to 24% Food costs 28 to 32% Beverage costs 18 to 24%
  • Controls Loss of $20 billion a year due to theft and cash mishandling One out of every 3 employees will steal 35% of restaurants fail due to theft 75% of missing inventory is from theft 73% of all job applications are falsified Use of POS can solve some problems
  • Trends More flavorful food Increased takeout meals and home meal replacement Food safety and sanitation Guests becoming more sophisticated
  • Trends in Restaurant OperationsMore flavorful foodsIncrease takeout mealsIncrease food safety and sanitationTwin and multi restaurant locationsQuick-service restaurants in convenience storesDifficulty in finding good employees.
  • Summary: 1. Most restaurants forecast on a weekly and monthly basis. 2. Products need to be purchased, received, and properly stored. 3. The front of the house deals with the part having direct contact with guests. 4. The back of the house do not come contact with guests. This include receiving, storing/issuing, food production, stewarding, budgeting, accounting and control.16 Chapter 8 - Restaurant Operations