Chapter 2: Kinds & Characteristics of
Restaurants & Their Owners
• Chain or Independent
• Fast Casual
Kinds & Characteristics of
Restaurants & Their Owners
• Steak House
• Women Chefs & Restaurant
• Centralized Home Delivery
Chain or Independent
• Chain restaurants have
some advantages & some
• The advantages include:
recognition in the
development & discounted
Chain or Independent
• Independent restaurants are
relatively easy to open.
• The advantage for the
independent restaurateur is
that they can “do their own
thing” in terms of concept
development, menus, décor &
• Some independent restaurants
will grow into small chains &
larger companies will buy them
• Franchising involves the
– Restaurant format,
including building design,
menu & marketing plans,
have already been tested in
– Less likely to go “belly up”
– Training is provided.
– Marketing & management
supports are available.
• To open a franchise there is a
franchising fee, a royalty fee,
advertising royalty & requirements
of substantial personal net worth.
• Franchisors help:
– Site selection
– Review of any proposed sites
– Assist with design & building
– Help with preparation for opening
– Train managers & staff
– Plan & implement pre-opening
– Conduct unit visits & provide on-going
• The Plate House, opened
in the 1870’s, was the 1st
• They served a quick lunch
in about 10 minutes.
• Quick food production
time is key.
• Many quick-service
restaurants precook or
partially cook food so that
it can be finished off
• The segment includes all
restaurants where the food
is paid for before service.
• Limited menus featuring
burgers, chicken in many
forms, tacos, burritos, hot
dogs, fries, gyros, teriyaki
bowels & so on.
• Goal is to serve maximum
number of customers in
minimum amount of time.
• Defining traits are:
– The use of high quality
– Fresh made to order menu
– Healthy options
– Limited or self-serving formats
– Upscale décor
– Carry-out meals
• Mainly quick-service
• Different than a bakery in that
they serve soups, salads &
• Many bake off goods that are
prepared elsewhere or do final
proofing after receiving goods.
• Many use central commissary
• Variety of setting, products &
• Grew out of coffee shop
• Are frequently located in
or within easy reach of
• Are informal with a
simple menu & service
designed to appeal to
• Some offer wine & beer
but most offer no
• Fits the societal trend
of a more relaxed
• Defining factors
– Signature food items
– Creative bar menus or
enhanced wine service
– A comfortable, homey
• Cuisine & service is expensive
• Very low table turnover (can
• Customers dine on special
occasions & business
• Usually proprietor- or partnerowned.
• Restaurants are small, usually
less than 100 seats.
Economics of Fine
Expensive, average check runs $60 or more
Large PR budgets
High labor costs due to the necessity of highly
• Much of the profits come from wine
• Tables, linen, dishes, décor very costly
• Limited menu caters to
• Service ranges from
walk-up to high end.
• High food costs (as
high as 50%) & low
labor costs (as low as
• Majority of customers
• May have sales of $5
million or more per year
• Serve well-aged beef
• High percentage of wine &
hard liquor sales
• Sales of $500,000 or less
• Beer & moderately priced
Types of Steak
Steaks vary from a few ounces to 24 ounces!
Tenderloin is most tender & runs along backbone.
T-bone is cut from the small end of loin.
Porterhouse contains T-bone & piece of tenderloin.
New York Strip is a compact, dense, boneless cut of meat.
Delmonico steak (or club steak) is a small, often boned steak,
taken from the front section of the short loin.
• Sirloin steaks come from just in front of the round, between the
rump & the shank.
• Wet aged: Meat that’s wrapped in cryovac, sealed & refrigerated
for several days.
• Dry aged: Takes place under a controlled temperature,
humidity & air flow process that causes weight loss of 15% or
• In Colonial America, seafood was a staple
food in the taverns.
• Many seafood restaurants are owned &
operated by independent restaurant owners.
• Red Lobster, with 677 restaurants, is the
largest chain, with $2.5 billion in annual
sales & average sales per restaurant of
almost $3 million.
• Farm-bred fish is changing the cost & kind
of fish that are readily available.
• French-farmed salmon, grown in pens,
outnumber wild salmon from the ocean by
50 to 1.
• Seafood prices continue to rise but are in
competition with shrimp grown in Mexico,
India & Bangladesh.
• Aquaculture is predicted to grow & may
bring the price of seafood down dramatically.
– Menu is often built around tortillas,
ground beef, cilantro, chiles, rice &
– Relatively inexpensive because of the
small percentage of meat used,
which results in a food cost of less
than 28% of sales.
– Labor costs are also low because
many of the employees are firstgeneration Americans or recent
immigrants willing to work at
– Menus, décor & music in Mexican
restaurants are often colorful &
• Italian Restaurants
– Italian restaurants, including
pizza chains, boast the largest
number of ethnic restaurants in
the United States.
– Offer an array of opportunities for
would-be franchisees &
– Owe their origins largely to poor
immigrants from southern Italy,
entrepreneurs who started small
grocery stores, bars & restaurants
in Italian neighborhoods.
– Pizza is native to Naples & it was
there that many American
soldiers, during World War II,
learned to enjoy it.
• Chinese Restaurants:
– Represent a small percentage of all
restaurants in America.
– Historically, they are owned by
hardworking ethnic Chinese families.
– The cooking revolves around the wok, a
large metal pan with a rounded bottom.
– China is divided into culinary districts:
Szechuan, Hunan, Cantonese & Northern
style centered in Beijing.
– Cantonese food is best known in the United
States & Canada for its dim sum (small
bites), steamed or fried dumplings stuffed
with meat or seafood.
– Szechuan food is distinguished by the use
of hot peppers.
– Chinese cooking styles reflect the places in
China from which the chefs came.
• Built around an idea emphasizing
fun & fantasy.
• Glamorize sports, travel, eras in
• Celebrities are central to many
theme restaurants (some are
• Short life cycle compared to other
types of popular restaurants.
• Do well outside major tourist
• Locals tire of the hype when food is
• Most of the profits come from
merchandise not food sales.
• The cost of most of the large theme
restaurants is high, both in capital
costs & in operations.
Hollywood & the movies.
Sports & sporting events.
Time-the good old days.
Travel-trains, planes &
• Ecology & the world
• Part of American tradition
of family restaurants.
• Publicity is key in gaining
• One of the best-known
culinary team is Wolfgang
Puck & Barbara Lazaroff.
• Having an experienced, highly motivated person in
• Name often already known & synonymous with great
• Can be very profitable.
• Chefs often less knowledgeable about “the
• Can often make more money working as a chef in a
• Location & other factors are just as important for
success as food preparation & presentation.
Women Chefs & Restaurant Owners
• The “typical” restaurant
manager of the future may be
• Those with stamina &
ambition may be better suited
for management than are
men with similar
• It is agreed that women are
more concerned with details,
sanitation & appearance.
• Women are more likely to be
sensitive & empathetic with
Centralized Home Delivery
• Centralization reduces the costs of order
taking, food preparation, & accounting.
• Marketing costs may not decrease.
• Home delivery centers verify & process credit
card information & use computers to perform
• Order taking & accounting can be done at any
location connected to the Internet, locally or
• The system does not even require that
operators know what the customer has
ordered; they simply transmit the order to a