2. 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.
Varied Field of Food Service
3. 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!
Varied Field of Food Service
4. On-Site 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...
This is the other major food service sector and is
sometimes referred to as institutional food service.
Varied Field of Food Service
5. Share of Food Service Market:
Percentage of Total Sales in Billions
• 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%
This slide identifies the relative shares of
the market held by the following segments:
Varied Field of Food Service
6. 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 lion’s 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.
Varied Field of Food Service
7. 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...
Varied Field of Food Service
8. 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 Varied Field of Food Service
9. 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
Varied Field of Food Service
10. 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…
11. 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
12. 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
Let’s talk a little more about the
Quick Service Restaurants…
13. 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
14. Midscale Restaurants
• Family restaurants
• Commercial cafeterias and
buffets
• Home meal replacement (HMR)
• Pizza operations
15. Family-Style Restaurant Chains
• Denny’s
• Waffle House
• International House of
Pancakes (IHOP)
• Shoney’s
• Cracker Barrel
• Boston Market
• Perkins Family
Restaurant
• Coco’s
• Big Boy
• Friendly’s Restaurants
• Bob Evans Farms