Restaurant_Operation_management.ppt

1. Restaurant Operations Management: Principles and Practices © 2006 Pearson Education, Inc.
Ninemeier/Hayes Upper Saddle River, NJ 07458
History of Restaurants in Europe
• People ate together in large groups 12,000 years ago.
• Food was sold in public market places 7,000 years ago.
• Greek and Roman banquets occurred 2,500 years ago.
• By the 1500’s, quantity food was produced primarily in religious
institutions, and wealthy persons employed chefs.
• Before the 1600’s, persons living along trade routes were the first
hospitality entrepreneurs as they opened their houses to travelers.
• Separate eating places began in Europe in the mid-1700’s.
OH – 1.1

2. Restaurant Operations Management: Principles and Practices © 2006 Pearson Education, Inc.
Ninemeier/Hayes Upper Saddle River, NJ 07458
History of Restaurants in United States
• Taverns and inns became popular in cities during the 1800’s.
• Most luxurious dining was offered by large hotels.
• By the late 1800’s, public eating places were almost
everywhere and offered a wide variety of food items.
• One of the first restaurant chains was that of Fred Harvey
(Kansas) in the mid-1870’s.
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3. Restaurant Operations Management: Principles and Practices © 2006 Pearson Education, Inc.
Ninemeier/Hayes Upper Saddle River, NJ 07458
History of Restaurants in United States
(continued)
• By 1920, numerous eating places were located near major
highways.
• In the 1940’s, frozen foods became popular.
• McDonald’s restaurant chain began in the 1950’s.
• In the 1970’s, wines increased in popularity.
• The “modern” restaurant era began in the early 1980’s as
Americans began to eat out more frequently.
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4. Restaurant Operations Management: Principles and Practices © 2006 Pearson Education, Inc.
Ninemeier/Hayes Upper Saddle River, NJ 07458
*Including sporting and cultural events, recreation and geographic tours.
**Including stores, markets and shopping malls.
Travel/Tourism
Industry
Hospitality
Accommodations (Lodging)
Other Hospitality
Operations
Foodservices
Transportation
Services
Destination
Alternatives
Activities*
Retail
Shops**
Components of the Travel/Tourism Industry
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5. Restaurant Operations Management: Principles and Practices © 2006 Pearson Education, Inc.
Ninemeier/Hayes Upper Saddle River, NJ 07458
Close Look at the Hospitality Industry
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6. Restaurant Operations Management: Principles and Practices © 2006 Pearson Education, Inc.
Ninemeier/Hayes Upper Saddle River, NJ 07458
Foodservices
Segment
Commercial
Operations
Non-Commercial
Operations
Self-Operated Control Management
Company-Operated
Restaurants
Let’s Review Some Basics
OH – 1.6

7. Restaurant Operations Management: Principles and Practices © 2006 Pearson Education, Inc.
Ninemeier/Hayes Upper Saddle River, NJ 07458
Types of Restaurants
Restaurants
Upscale
(High-Check
Average)
Casual
Service
(Mid-Scale)
Family
Service
Quick-Service
OH – 1.7

8. Restaurant Operations Management: Principles and Practices © 2006 Pearson Education, Inc.
Ninemeier/Hayes Upper Saddle River, NJ 07458
Kitchen Organization: Upscale Restaurant
OH - 1.8
*There is generally one assistant chef for each work shift and, often, for each food preparation (kitchen) area within a multiple-kitchen property.
Executive
Chef
Assistant (Sous)
Chef*
Baker/Pastry
Chef
Short Order
Cook
Pantry Manager
(All cold food items)
Second Cook
(Sauces, stocks,
soups, fish, vegetable
and meat preparations)
Station Cooks
as needed
Cooks’ Helpers
as needed

9. Restaurant Operations Management: Principles and Practices © 2006 Pearson Education, Inc.
Ninemeier/Hayes Upper Saddle River, NJ 07458
Dining Room Organization: Upscale Restaurant
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1The Captain is section (area) supervisor of approximately four guest tables.
2The Sommelier is the wine steward.
3The Chef du Trancheur serves desserts (often from a dessert cart) and other after-dinner
items.
4The Chef du Rang is the lead table server; Commis du Rang is his/her assistant.
Maitre d’ Hotel
Sommelier2 Chef du Trancheur3
Chef du Rang4
Captain1
Commis
du Rang
Chef du Rang4 Chef du Rang4 Chef du Rang4
Commis
du Rang
Commis
du Rang
Commis
du Rang

10. Restaurant Operations Management: Principles and Practices © 2006 Pearson Education, Inc.
Ninemeier/Hayes Upper Saddle River, NJ 07458
Organization of Large Mid-Scale Restaurant
General Manager Bookkeeper
Chef
(Head Cook)
Cooks
Stewards
Dining Room
Manager
Receptionist
Servers
Buspersons
Beverage
Manager
Bartenders
Lounge Servers
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11. Restaurant Operations Management: Principles and Practices © 2006 Pearson Education, Inc.
Ninemeier/Hayes Upper Saddle River, NJ 07458
Organization Chart for a Family-Service
Buffet Restaurant
Dining Room Manager
Cashier
Greeter
Serving Line
Attendants
Buspersons
General Manager Bookkeeper
Head Cook
Prep
Cooks
Stewards
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12. Restaurant Operations Management: Principles and Practices © 2006 Pearson Education, Inc.
Ninemeier/Hayes Upper Saddle River, NJ 07458
Organization Chart for a Family-Service
Tableservice Operation
Dining Room Manager
Receptionist/
Cashier
Food
Servers
Buspersons
General Manager Bookkeeper
Head Cook
Prep-
Cooks
Stewards
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13. Restaurant Operations Management: Principles and Practices © 2006 Pearson Education, Inc.
Ninemeier/Hayes Upper Saddle River, NJ 07458
Organization Chart for a Single-Unit
Quick-Service Restaurant
Shift Leader
Production
Shift Leader
Drive-Through
Shift Leader
Counter Service
Line Employees Line Employees Line Employees
Franchisor's Field
Representative
Owner/Unit Manager
Unit Assistant
Manager
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14. Restaurant Operations Management: Principles and Practices © 2006 Pearson Education, Inc.
Ninemeier/Hayes Upper Saddle River, NJ 07458
Advantages of Multi-Unit
Restaurants:
• Brand recognition.
• Help from the franchisor.
• Opportunities to market/advertise in large regions.
• Benefits of centralization of menu planning,
purchasing and standardization.
• Ability to obtain business loans.
• Easier to sell restaurant.
• Potentially easier employee recruitment.
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15. Restaurant Operations Management: Principles and Practices © 2006 Pearson Education, Inc.
Ninemeier/Hayes Upper Saddle River, NJ 07458
Multi-Unit (Chain) Restaurant Organization
Note: The titles of positions external to the unit vary between organizations. There are typically several
regions within a very large national chain. Some have international subsidiaries. Also, there is a trend
toward “flattening” the organization and increasing the span of control.
National Headquarters
Chief Operating Officer
Regional
Vice-President
District
Manager
Area
Manager
Unit General Manager
Responsible for 6 - 8 District
Managers
Responsible for 12 - 15 Area
Managers
Responsible for 6 - 8 Unit Managers
Responsible for 1 Unit
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16. Restaurant Operations Management: Principles and Practices © 2006 Pearson Education, Inc.
Ninemeier/Hayes Upper Saddle River, NJ 07458
Organization Chart for a Two-Unit: Quick-Service Restaurant
Franchisor's Field Representative
Owner/Unit Manager
(Unit #1)
Shift
Leader Production
Line Employees Line Employees
Shift Leader
Counter
Service
Line Employees
Unit Assistant Manager
Shift
Leader Drive Through
Shift Leader
Production
Line Employees Line Employees
Shift Leader
Counter
Service
Line Employees
Unit Assistant Manager
Shift Leader
Drive Through
Unit Manager
(Unit #2)
Unit #1
Unit #2
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17. Restaurant Operations Management: Principles and Practices © 2006 Pearson Education, Inc.
Ninemeier/Hayes Upper Saddle River, NJ 07458
Organization Chart of a Multi-Unit
Quick-Service Restaurant
Owner
Area
Manager
Unit #1
Manager
Unit #2
Manager
Unit #3
Manager
Unit #4
Manager
Franchisor's Field
Representative
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18. Restaurant Operations Management: Principles and Practices © 2006 Pearson Education, Inc.
Ninemeier/Hayes Upper Saddle River, NJ 07458
Overview of the Food Management Process
Receiving
Storing
Issuing
Production
Preparing
Cooking
Holding
Procurement
Serving
Service
Menu Planning
OH – 1.18

19. Restaurant Operations Management: Principles and Practices © 2006 Pearson Education, Inc.
Ninemeier/Hayes Upper Saddle River, NJ 07458
Basic Management Activities
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20. Restaurant Operations Management: Principles and Practices © 2006 Pearson Education, Inc.
Ninemeier/Hayes Upper Saddle River, NJ 07458
 Planning: The basic management activity which involves defining goals, establishing
strategies to achieve them and designing ways to get work done.
 Organizing: The basic management activity which involves developing and
grouping work tasks.
 Coordinating: The basic management activity which involves arranging group
efforts in an orderly manner.
 Staffing: The human resources function which involves recruiting applicants, selecting
employees, making a job offer and orientating/inducting staff members who
accept the offer of the hospitality organization.
 Directing: The basic management activity which involves supervising the work of staff
members.
 Controlling: The basic management activity which involves determining the extent to
which the organization “keeps on track” of achieving goals.
 Evaluating: The basic management activity which involves determining the
extent to which plans are attained.
Restaurant Terminology at Work
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21. Restaurant Operations Management: Principles and Practices © 2006 Pearson Education, Inc.
Ninemeier/Hayes Upper Saddle River, NJ 07458
Basic Planning Tools
Vision
Mission Statement
Long-Range Plan
Business Plan
Marketing Plan Operating Budget
Vision: To be the restaurant of choice for social groups
in the community.
Mission Statement: To meet needs of social groups by
providing desired food/beverages and services at the
prices which represent value for the guests.
Long-Range Plan: To obtain 60% of all social group
business in the community within five years.
Business Plan: To increase market share of all social
group business in the community by 5% within the next
12 months.
Marketing Plan: Strategies and tactics to increase
social group revenues within the next 12 months.
Operating Budget: Expected revenue generated from
and costs associated with social group business.
Note: The marketing plan and operating budget are very closely related; the marketing plan indicates what will be done to
increase revenues, and the operating budget reflects these planned revenue increases and the costs which are expected to be
incurred to generate the revenue.
Planning Tool Example
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22. Restaurant Operations Management: Principles and Practices © 2006 Pearson Education, Inc.
Ninemeier/Hayes Upper Saddle River, NJ 07458
Alternative Leadership Styles
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Leadership Style
Bureaucratic
Democratic
Laissez-Faire
Dictator (Autocratic)
Example of Leadership
Approach
“Do it by the book.”
“Let’s figure it out
together.”
“You figure it out.”
“Do it my way!”
Useful
when standardized work
(accounting, for example)
must be done
for experienced and
motivated employees
for consultants and sub-
contractors
for new employees doing
relatively simple tasks

23. Restaurant Operations Management: Principles and Practices © 2006 Pearson Education, Inc.
Ninemeier/Hayes Upper Saddle River, NJ 07458
Steps in the Control Process
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24. Restaurant Operations Management: Principles and Practices © 2006 Pearson Education, Inc.
Ninemeier/Hayes Upper Saddle River, NJ 07458
Steps in the Control Process
STEPS
Step 1: Standards Must Be Established
Step 2: Actual Performance Must Be
Measured
Step 3: Variance Between Standards and
Actual Performance Must Be
Assessed
Step 4: Corrective Actions to Address
Variances Between Standards and
Actual Performance Must Be
Implemented
Step 5: Corrective Actions Must Be
Evaluated to Assure Success
EXAMPLE
The restaurant’s operating budget establishes a 35.5%
food cost goal.
The Income Statement indicates that the actual food cost
is 39.3%.
The variance of 3.8% (39.3% - 35.5%) is unexplainable
and excessive.
Decision-making (problem-solving) techniques are used
to generate/select solution alternatives. Two tactics
(improved purchasing and use of portion control
procedures) are implemented.
Food cost is reduced during the next fiscal period to
37.8%; a step towards the 35.5% goal has been taken;
further corrective actions will be planned and
implemented.
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