Chapter 7 The Restaurant Business
After Reading and Studying This Chapter, You Should Be Able to: <ul><li>Describe the different characteristics of chain an...
Restaurants <ul><li>Vital part of everyday life </li></ul><ul><li>Patronized several times a week for social purposes as w...
More About Restaurants <ul><li>50% of the food dollar is spent away from home </li></ul><ul><li>Multi-billion dollar busin...
French Cuisine and Its Foundation <ul><li>The French are credited with culinary art, largely due to two main events </li><...
Culinary Greats <ul><li>Auguste Escoffier </li></ul><ul><ul><li>Patron Saint of Cooking </li></ul></ul><ul><li>Julia Child...
Chefs of Today Need to Possess: <ul><li>Cooking skills </li></ul><ul><li>Employability traits </li></ul><ul><li>People ski...
Figure 7-1 Approximate Market Share of Restaurant Segments
Full-Service Luxury Restaurants <ul><li>National Restaurant Association </li></ul><ul><li>Good selection of menu items mad...
Reasons for the Small Number of Luxury Restaurants <ul><li>Labor intensive and require a higher level of skilled labor </l...
Other Restaurant Classifications <ul><li>Theme restaurants </li></ul><ul><li>Celebrity-owned </li></ul><ul><ul><li>Owned b...
Casual Dining and Dinner House Restaurants <ul><li>Mid-scale casual restaurants </li></ul><ul><li>Family restaurants </li>...
Specialty Restaurants  Quick Service <ul><li>Theme related </li></ul><ul><li>$111 billion annual sales </li></ul><ul><li>B...
Quick Service Hamburger <ul><li>McDonald’s and Ray Kroc </li></ul><ul><ul><li>Added breakfast </li></ul></ul><ul><ul><li>E...
Quick Service  Pizza <ul><li>Local and regional chains all with delivery service </li></ul><ul><li>$20 billion market </li...
Quick Service  Chicken <ul><li>KFC is market leader </li></ul><ul><ul><li>Home delivery </li></ul></ul><ul><ul><li>“3 in 1...
Other Types of Restaurants <ul><li>Steakhouses </li></ul><ul><ul><li>New growth area </li></ul></ul><ul><ul><li>Outback St...
Ethnic Restaurants <ul><li>Independently owned and operated </li></ul><ul><li>Mexican restaurants are largest growth segme...
Trends <ul><ul><li>Demographics </li></ul></ul><ul><ul><li>Branding </li></ul></ul><ul><ul><li>Alternative outlets </li></...
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Chapter07

  1. 1. Chapter 7 The Restaurant Business
  2. 2. After Reading and Studying This Chapter, You Should Be Able to: <ul><li>Describe the different characteristics of chain and independent restaurants </li></ul><ul><li>Identify some of the top chain and independent restaurants </li></ul><ul><li>List the classifications of restaurants </li></ul><ul><li>Differentiate the characteristics of chain and independent restaurants </li></ul>
  3. 3. Restaurants <ul><li>Vital part of everyday life </li></ul><ul><li>Patronized several times a week for social purposes as well as to eat and drink </li></ul><ul><li>Offer society a place to relax and “restore” </li></ul><ul><li>Offer an opportunity to enjoy the company of friends, family, colleagues and associates </li></ul>
  4. 4. More About Restaurants <ul><li>50% of the food dollar is spent away from home </li></ul><ul><li>Multi-billion dollar business </li></ul><ul><li>Employs 11.7 million people </li></ul>
  5. 5. French Cuisine and Its Foundation <ul><li>The French are credited with culinary art, largely due to two main events </li></ul><ul><ul><li>French Revolution </li></ul></ul><ul><ul><li>Thomas Jefferson </li></ul></ul><ul><li>French cuisine and its foundations </li></ul><ul><ul><li>Mother sauces </li></ul></ul><ul><ul><li>Nouvelle cuisine (lighter cuisine) </li></ul></ul><ul><li>American Adaptation </li></ul><ul><ul><ul><li>Infusion </li></ul></ul></ul><ul><ul><ul><ul><li>Blending of flavors and techniques of two cuisines </li></ul></ul></ul></ul>
  6. 6. Culinary Greats <ul><li>Auguste Escoffier </li></ul><ul><ul><li>Patron Saint of Cooking </li></ul></ul><ul><li>Julia Child </li></ul><ul><li>Emeril “BAM” Lagasse </li></ul><ul><li>Bobby Flay </li></ul><ul><li>Charlie Trotter </li></ul><ul><ul><li>Considered America’s finest </li></ul></ul><ul><li>Alice Waters </li></ul><ul><li>Paul Prudhomme </li></ul>
  7. 7. Chefs of Today Need to Possess: <ul><li>Cooking skills </li></ul><ul><li>Employability traits </li></ul><ul><li>People skills </li></ul>
  8. 8. Figure 7-1 Approximate Market Share of Restaurant Segments
  9. 9. Full-Service Luxury Restaurants <ul><li>National Restaurant Association </li></ul><ul><li>Good selection of menu items made on premises </li></ul><ul><li>Haute cuisine </li></ul><ul><li>Fine Dining Hall of Fame </li></ul><ul><ul><li>Le Bec Fin </li></ul></ul><ul><ul><li>Spago </li></ul></ul><ul><li>There are few national chains </li></ul><ul><ul><li>Morton’s </li></ul></ul><ul><ul><li>Ruth Chris’s </li></ul></ul><ul><ul><li>Roy Flemings </li></ul></ul>
  10. 10. Reasons for the Small Number of Luxury Restaurants <ul><li>Labor intensive and require a higher level of skilled labor </li></ul><ul><li>Small percentage can afford high prices </li></ul><ul><li>Overhead costs may not be reasonable </li></ul><ul><li>Economies of scale are not as easily reaped </li></ul><ul><li>Consistency and quality are not easy to maintain </li></ul><ul><li>Limited market appeal </li></ul>
  11. 11. Other Restaurant Classifications <ul><li>Theme restaurants </li></ul><ul><li>Celebrity-owned </li></ul><ul><ul><li>Owned by celebrities such as Michael Jordan, Dan Marino, Steven Segal, Gloria Estefan, Junior Seau, Denzel Washington </li></ul></ul><ul><ul><li>Seau’s San Diego </li></ul></ul><ul><ul><li>All Star Café </li></ul></ul><ul><ul><li>House of Blues </li></ul></ul>
  12. 12. Casual Dining and Dinner House Restaurants <ul><li>Mid-scale casual restaurants </li></ul><ul><li>Family restaurants </li></ul><ul><li>Ethnic restaurants </li></ul><ul><li>Specialty restaurants </li></ul>
  13. 13. Specialty Restaurants Quick Service <ul><li>Theme related </li></ul><ul><li>$111 billion annual sales </li></ul><ul><li>Better known as fast food </li></ul><ul><li>Limited menus </li></ul><ul><li>Guest helps defray labor costs </li></ul>
  14. 14. Quick Service Hamburger <ul><li>McDonald’s and Ray Kroc </li></ul><ul><ul><li>Added breakfast </li></ul></ul><ul><ul><li>Expanding overseas </li></ul></ul><ul><ul><li>Co-develop sites with gasoline companies </li></ul></ul><ul><ul><li>$33 billion worldwide sales </li></ul></ul><ul><ul><li>Drive thru </li></ul></ul>
  15. 15. Quick Service Pizza <ul><li>Local and regional chains all with delivery service </li></ul><ul><li>$20 billion market </li></ul><ul><li>Four major chains </li></ul><ul><ul><li>Pizza Hut </li></ul></ul><ul><ul><li>Domino’s </li></ul></ul><ul><ul><li>Papa Johns </li></ul></ul><ul><ul><li>Little Caesars </li></ul></ul>
  16. 16. Quick Service Chicken <ul><li>KFC is market leader </li></ul><ul><ul><li>Home delivery </li></ul></ul><ul><ul><li>“3 in 1” restaurants </li></ul></ul><ul><li>Other chains </li></ul><ul><ul><li>Church’s Chicken </li></ul></ul><ul><ul><li>Popeye’s </li></ul></ul>
  17. 17. Other Types of Restaurants <ul><li>Steakhouses </li></ul><ul><ul><li>New growth area </li></ul></ul><ul><ul><li>Outback Steakhouse </li></ul></ul><ul><li>Seafood restaurants </li></ul><ul><li>Pancake restaurants </li></ul><ul><li>Sandwich restaurants </li></ul><ul><li>Family restaurants </li></ul>
  18. 18. Ethnic Restaurants <ul><li>Independently owned and operated </li></ul><ul><li>Mexican restaurants are largest growth segment </li></ul><ul><li>Different types are developing </li></ul><ul><ul><li>Thai </li></ul></ul><ul><ul><li>Indian </li></ul></ul>
  19. 19. Trends <ul><ul><li>Demographics </li></ul></ul><ul><ul><li>Branding </li></ul></ul><ul><ul><li>Alternative outlets </li></ul></ul><ul><ul><li>Globalization </li></ul></ul><ul><ul><li>Continued diversification </li></ul></ul><ul><ul><li>More twin and multiple locations </li></ul></ul><ul><ul><li>More points of service </li></ul></ul><ul><ul><li>More hyper-theme restaurants </li></ul></ul><ul><ul><li>Chains vs. Independents </li></ul></ul>
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