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HRMPS 12 (MIDTERM)Chapter 4 restaurant operations


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HRMPS 12 (MIDTERM)Chapter 4 restaurant operations

  1. 1. Chapter 8Restaurant Operations
  2. 2. Scope & Sequence 1. Front of the House - Definition - Functions - Restaurant Forecasting - Suggestive Selling 2. Back of the House - Definition - Functions2 Chapter 8 - Restaurant Operations
  3. 3. 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
  4. 4. 3 Areas of the Restaurant: 1.Front of the House 2.Back of the House 3.Office4 Chapter 8 - Restaurant Operations
  5. 5. 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
  6. 6. 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
  7. 7. 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
  8. 8. 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
  9. 9. 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
  10. 10. 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
  11. 11. 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
  12. 12. Typical Cost PercentagesCost Percentages Labor costs 20 to 24% Food costs 28 to 32% Beverage costs 18 to 24%
  13. 13. 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
  14. 14. Trends More flavorful food Increased takeout meals and home meal replacement Food safety and sanitation Guests becoming more sophisticated
  15. 15. 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.
  16. 16. 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