It contains basic knowledge about the restaurant business

1. The Restaurant Business
BBAA - 110

2. The Outlook for Food Service
• The changing picture of life in the twenty-first century
shows that fewer people have time to prepare meals
• This means we purchase more convenience food items
and eat more food away from home or purchase prepared
food to eat at home
• People recognize that purchasing meals in restaurants
provides opportunities to socialize or allows more leisure
time that otherwise would have been spent on cooking
and cleaning.

3. Restaurants
• The word restaurant covers a broad range of
food service operations
• The term comes from the French word
restaurant, meaning “restorer of energy”

4. • Describing the restaurant business is like trying
to hit a moving target
– The restaurant market is constantly changing
• There are so many types of restaurants that it is
difficult to devise a model to fit them all.
• Nevertheless, we need some basic terminology
to describe the field, even if in general terms.

5. • Restaurants are commercial outfit, which
specialize in the preparation of quality food and
to serve them to satisfy the customer’s
demands
• Restaurants have state of the art kitchens in
their premises, where food items are prepared,
following a fixed menu to serve the customers

6. • Restaurants are equipped with infrastructure
facilities, table settings, dining halls of various
sizes to cater the needs of small to large
gatherings, trained personnel to provide
satisfactory service.
• Many restaurants are features of hotel
– Such restaurants are open to non-residents also

7. The Dining Market and the Eating Market…
• Consider the basic distinction between the dining
market and the eating market
• Dining operations such as fine-dining and casual-
dining restaurants,
• Rapidly growing off-premise operations such as
takeout and delivery (much of which is referred to
as home meal replacement), that are accounting
for major growth in the eating market.

8. Classification of Restaurants
• Upscale Restaurants:
– High quality cuisine at a high end price
– Offer full service and have a high quality of ambience
• Mid Restaurants:
– Offer full meals at a medium price
– Can be of full service, buffets, of limited service
• Quick Service Restaurants:
– Fast-food restaurants
– Limited menus that are prepared quickly
– Usually drive-thru window and take-out
– May also be self-service outfits

9. Types of Restaurants

10. Cafeterias
• Serve mostly cooked food, arranged behind a food-serving
counter.
• Little or no table service.
• A customer takes a tray and pushed it along a track in front
of the counter.
• Servings may be ordered from attendants, selected as
ready-made portions already on plates, or self-serve of
food of own choice.

11. • Beverages may be filled from self-service
dispensers or ordered from the attendants.
• At the end of the line a cashier rings up the
purchases.
• Trays are filled with selected items of food and
taken to a table to eat.

12. Fast-Foods
• These establishment emphasize speed of service and
low cost over all other considerations.
• Modern fast-food establishments lack cutlery or
crockery.
– The customer is expected to eat the food directly from the
disposable container.

13. • Various types of fast-food establishments:
– Customer collects food from a counter and pays,
then sits down and starts eating.
– Customer first pays at the cash desk, collects a
coupon and then goes to the food counter
– Customer is at the counter; after preparation the
food is brought to one’s table; paying may be on
ordering or after eating
– Drive-thru is a type of fast-food restaurant without
seating

15. Casual Dinning
• Establishments that serve moderately priced
food in a casual atmosphere
• Except for buffet-style, establishments typically
provide table service

16. Fast Casual-Dinning
• Similar to a fast-food service (i.e., does not offer
full table service)
• Average prices charged are higher than fast-
food prices and non-disposable plates and
cutlery are usually offered
• This category is a growing concept that fills the
space between fast-food and casual dinning

17. Cafes/Coffee Shops
• Offer a range of hot meals and sandwiches
• Offer table service
• In some areas, cafes offer outdoor seating

18. Coffee Houses
• Casual units without table service that emphasize
coffee and other beverages
• Limited selection of cold foods such as pastries
and perhaps sandwiches are offered as well
• Their distinguishing feature is that they allow
patrons to relax and socialize on their premises for
long periods of time without pressure to leave
promptly after eating

19. Making a Profit in Food Service Operations
• The purpose that
underlies the logic of
any business is to
make a profit
• Three stakeholders of
any (foodservice)
business:
Business
Customers
EmployeesOwner

20. • There are two basic approaches to increasing
profit:
– One is to increase sales;
– The other is to reduce costs.
• Most commonly, operators try to do both to the
limits of what will make sense for all
stakeholders

21. Increasing Sales
• The two basic approaches to increase sales are to
sell to more people or to sell more to your present
customers—or to do both
• Increasing the customer base is usually thought of
as the job of marketing (and specifically,
advertising and promotion)
• A superior operation that achieves a good
reputation may build its customer base through
word-of-mouth referrals

22. • Another approach is to increase sales to the
customers you now have—that is, to increase
the check average
– One obvious way to do this is simply to raise prices
– Some effective approaches to increase the average
check are menu redesign, “bundling” of food items,
and suggestive selling
• Operators often offer prizes or bonuses for the server
most effective in selling

23. Reducing Costs
• Just as raising prices faster than the competition
will drive off customers, so will cheapening quality
through the use of inferior ingredients or smaller
portions.
• Thus, reducing costs must result from improved
efficiency:
– Involves more careful scheduling of employees,
improved portion control, and more careful monitoring
of the issue and use of supplies

24. • If cost reductions come from improved
efficiency rather than cheapening quality, they
will have a greater impact on profit

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