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  1. 1. Chapter 3The Restaurant
  2. 2. Scope and Sequence: Definition of restaurant History of restaurant Culinary Greats The Restaurant Business - Market - Location - Menu Planning - Menu Engineering - Menu Design and Layout Chain and Independent Restaurant Classification of Restaurant
  3. 3. A restaurant is an establishment which prepares and serves food and drink to customers in return for money, either paid before the meal, after the meal, or with a running tab. Meals are generally served and eaten on premises, but many restaurants also offer take- outand food delivery services3
  4. 4. History4 Chapter 7 - The Restaurant Business
  5. 5. The First Restaurant  The public dining room that came ultimately to be known as the restaurant originated in France, and the French have continued to make major contributions to the restaurants development. The first restaurant proprietor is believed to have been one A. Boulanger, a soup vendor, who opened his business in Paris in 17655 Chapter 7 - The Restaurant Business
  6. 6. French Cuisine and Its Foundation The French are credited with culinary art, largely due to two main events:  French Revolution  Thomas Jefferson
  7. 7. French Revolution  In Paris restaurants did not become an important part of the gastronomic scene until after the Revolution. In the early to mid-18th centure only taverns and inns served food and drink, but even in these establishments there were no menus and no intricate dishes. Meals usually consisted of boiled or roasted meat, served without sauce, and a seasonal vegetable.7 Chapter 7 - The Restaurant Business
  8. 8. Thomas Jefferson  Despite his service as legislator, the governor of Virginia, minister to France, secretary of state, and president of the United States, Jefferson likely believed in the intelligence towards fine food and health8 Chapter 7 - The Restaurant Business
  9. 9. Culinary Great Auguste Escoffier Patron Saint of Cooking. was a French chef, restaurateur and culinary writer who popularized and updated traditional French cooking methods. He is a legendary figure among chefs and gourmands, and was one of the most important leaders in the development of modern French cuisine
  10. 10. The Restaurant Business10 Chapter 7 - The Restaurant Business
  11. 11. The Restaurant Market  The restaurant market will determine who will patronize your restaurant. A respective feasibility study will determine whether a sufficient demand exists in a particular market niche11 Chapter 7 - The Restaurant Business
  12. 12. Factors Needed in Operating A successful Restaurant  Mission  Goals & Objectives  Market  Concept  Location  Menu Planning  Ambiance  Lease  Other occupational costs12 Chapter 7 - The Restaurant Business
  13. 13. Restaurant Location Key location criteria :  Demographics  Average Income  Growth and decline of the area  Zoning, drainage, sewage, and utilities  Visibility  Accessibility  Parking  Curb side appeal13 Chapter 7 - The Restaurant Business
  14. 14. Menu Planning 6 Main Types of Menu: 1.A la Carte menu – Items are individually priced 2.Table d’ hote menu – Offer a selection or more items for each course at a fixed price. 3. Du jour menu – List the items “of the day” 4. Tourist menu – used to attract tourists 5. California Menu – guest may order any item on the menu at any time of the day. 6. Cyclical menu –repeat themselves over a period of time14 Chapter 7 - The Restaurant Business
  15. 15. Menu Analysis  Menu analysis can be defined as a range of techniques and procedures that enable more effective decision making both with respect to marketing and operating the menu.15 Chapter 7 - The Restaurant Business
  16. 16. 2 Methods of Menu Analysis: 1. Quantitative Method - main method to assess the menu mix sales volume popularity) and gross profit profitability/ contribution margin). - The findings imply that once the new menu is launched in the market, the first criterion used to review the menu effectiveness is the menu sales mix reports. 2. Qualitative Method - research projects are carried out to analyse customer trends in food preferences and acceptances.16 Chapter 7 - The Restaurant Business
  17. 17. Menu Design and Layout  It is the only piece of printed advertising that you are virtually 100 percent sure will be read  A well-designed menu can educate and entertain the customer as well as be a communication, cost control, and marketing tool for your restaurant.  The menu is designed to help the guest decide what to order. When you strategically place menu items on the menu, you will sell more of them than if you placed them randomly.17 Chapter 7 - The Restaurant Business
  18. 18. Basic Menu Design and Layout:  Casual menu sometimes written on chalk board.  Quick service menu are often illuminated above the order counter.  More formal menu are generally single page or folded.  Other have separate wine list  Some have pictures with enticing description of the items18 Chapter 7 - The Restaurant Business
  19. 19. Menu Engineering  displays a list of product offerings for consumer choice  Typically the goal with menu engineering is to maximize a firms profitability by subconsciously encouraging customers to buy what you want them to buy, and discouraging purchase of items you dont want them to buy.19 Chapter 7 - The Restaurant Business
  20. 20. CHAIN & INDEPENDENT RESTAURANT20 Chapter 7 - The Restaurant Business
  21. 21. Chain Restaurants –  Any restaurant with more than ten units.  Any restaurant with Corporate Regulatory Structures.  Any restaurant on the stock market.  Chains are popular for a reason. They are consistent. They have long hours and good branding that is easily recognized.21 Chapter 7 - The Restaurant Business
  22. 22. LIST OF SOME CHAIN RESTAURANTS in the PHILIPPINES 1. McDonalds 10. Shakey’s 2. Burger King 11. Popeye’s 3. Jollibee 12. TGI Fridays 4. Chowking 13. Wendy’s 5. Kenny Rogers 14. Max Restaurant 6. Domino’s 15. Cabalen Restaurant 7. Gloria Jean’s 16. Mang Inasal 8. KFC 17. Greenwich 9. Pizza Hut22 Chapter 7 - The Restaurant Business
  23. 23. Independent Restaurant  is one that is not part of a National Chain. They are almost always stand alone properties with the owner working daily IN THE PROPERTY.  Can there be more than one? YES. If the owner and/or founder is involved day to day and the scope is LOCAL in nature. An Independent Restaurant should have a CHEF, but may not if it is something like a burger joint or barbecue shack.23 Chapter 7 - The Restaurant Business
  24. 24. Top Independent Restaurants US PHILIPPINES 1.  Tao Las Vegas Restaurant & Nightclub - 1. KUBLI SPRINGS @ KINABUHAYAN Las Vegas  CAFé, DOLORES, QUEZON 2. Tavern on the Green – NYC 2. ANTONIOS, TAGAYTAY 3. 3. Joes Stone Crab - Miami Beach  3. UGU BIGYAN, TIAONG, QUEZON 4. Smith & Wollensky - NYC  4. ISLA NABUROT, GUIMARAS 5. Tao Asian Bistro - NYC  5. LA COCINA de TITA MONING’S, 6. Old Ebbitt Grill - Washington DC  MANILA 7. Buddakan - NYC  6. KUSINA SALUD, SAN PABLO, LAGUNA 8. Gibsons Bar Steak House - Chicago  7. VIEUX CHALET, ANTIPOLO 9. Joes Seafood Prime Steak &Stone Crab - Chicago  8. CLAUDE TAYAG’s BALE DUTUNG, PAMPANGA 10. Joes Seafood Prime Steak & Stone Crab - Las Vegas 9. CHARLEYS at LIPA CITY, BATANGAS 10. ENTALULA ISLAND, EL NIDO, PALAWAN24 Chapter 7 - The Restaurant Business
  25. 25. CLASSIFICATIONS OF RESTAURANTS DINING WELL25 Chapter 7 - The Restaurant Business
  26. 26. 1. Full-Service Luxury Restaurants Fine Dining Restaurant – is one where a good selection of menu items is offered. Generally at least 15 or more3 different entrees. Many of these restaurants serve “haute cuisine”. . Elaborate or skillfully prepared food The wait staff is usually highly trained and often wears more formal attire .Food portions are smaller but more visually appealing Fine dining restaurants have certain rules of dining which must be followed by visitors
  27. 27. Haute cuisine - . Elaborate or skillfully preparedfood, especially that of France. High-classcooking
  28. 28. Reasons for the Small Number of Luxury Restaurants Labor intensive and require a higher level of skilled labor Small percentage can afford high prices Overhead costs may not be reasonable Economies of scale are not as easily reaped Consistency and quality are not easy to maintain Limited market appeal
  29. 29. 2. Casual Upscale Dining“Casual Fine Dining”. The food has become much more sophisticated in presentation and seasoning, but it is still approachable. The menus are familiar, often a blend of cuisines. The service is very friendly and down-to-earth -- it is identical to what you would encounter in anything from a Hard Rock Cafe to a Kelseys Roadhouse.29 Chapter 7 - The Restaurant Business
  30. 30. Other Restaurant Classifications  Casual Dining  is a restaurant that serves moderately-priced food in a casual atmosphere.  Theme restaurants -  Celebrity-owned  Owned by celebrities such as Michael Jordan, Dan Marino, Steven Segal, Gloria Estefan, Junior Seau, Denzel Washington  Seau’s San Diego  All Star Café  House of Blues
  31. 31. Classifications of Restaurants The Eating Market31 Chapter 7 - The Restaurant Business
  32. 32. Take Out - Establishments that sell take-out exclusively without providing table service are called take-out restaurants or take-aways. s Drive Through -  is a type of service provided by a business that allows customers to purchase products without leaving their cars.  Delivery – The order is placed in the telephone, then the food is being delivered to a desired place. Many delivery chains use a single telephone number (central station), then placed the order to the nearest unit for dispatch.32 Chapter 7 - The Restaurant Business
  33. 33. Contemporary Popular Priced Restaurants Quick Service “Fast food” emphasize speed of service. Operations range from small-scale street vendors with carts to franchised mega- corporations like McDonalds. e Mid Scale Restaurant - Midscale restaurants appeal to businesspersons, couples, singles, and families who desire a dining experience with value-priced food, good service, cleanliness, and atmosphere which, in total, represent the dining experience. a. Family Restaurant b. Commercial Cafeterias and Buffet c. Pizza Restaurant d. Home meal replacement33 Chapter 7 - The Restauran Business
  34. 34. Casual Restaurant - serves moderately-priced food in a casual atmosphere. Casual dining restaurants typically provide table service. a. Specialty Restaurant - Specialty Restaurant feature specific kind of food (seafood, steak, pasta b. Ethnic Restaurant - restaurant featuring a particular cuisine such as Chinese, Mexican, or Italian. With matching ambiance play a larger role. c. Entertainment Restaurant – Diner’s experience is centered in the entertainment provided by the restaurant stage-set like decor.34 Chapter 7 - The Restaurant Business
  35. 35. Other Types of Restaurants Steakhouses  New growth area  Outback Steakhouse Seafood restaurants Pancake restaurants Sandwich restaurants Family restaurants
  36. 36. Trends Demographics Branding Alternative outlets Globalization Continued diversification More twin and multiple locations More points of service More hyper-theme restaurants Chains vs. Independents
  37. 37. SUMMARY Food service is an integral and vital part of life. Food service can be divided into Dining Market and Eating market. Fine dining restaurants have been falling since in the later 1980’s . Casual upscale restaurants on the other hand has become very popular. The most dynamic part of the Eating Market is the off premise segment made up of take-out, drive in and delivery. Other contemporary popular priced restaurant are quick service and mid scale such as family restaurants, cafeterias and buffet. Fine dining restaurant has redefined itself to fit contemporary customers takes a variety of forms. “Entertainment” , which combines food with various kinds of entertainment is new. Some restaurants as a part of a larger enterprise, such department store or mall. Their success depends on the success of the larger unit.37 Chapter 7 - The Restaurant Business
  38. 38. Review Questions: 1. How do dining market and the eating market differ? 2. What are the restaurants included in the dining market and the eating market?38 Chapter 7 - The Restaurant Business
  39. 39. Activity: 1. Form a group, choose among the following restaurants you will visit: b. Theme restaurant c. Celebrity restaurant d. Ethnic restaurant 2. Make an observation on the following: a. Ambiance e. Menu Design & Layout b. Lay out design f. Menu Pricing c. No. of staff g. Food portion d. Uniform of staff 3. Document your visit with photos and observation on a short bond paper39 Chapter 7 - The Restaurant Business