Restaurant Industry

Overview In this presentation, general information about restaurant industry will be given. Goal To introduce the dynamics of Restaurant Industry

Objectives
To learn the history of the Restaurant Industry To learn the founders and leaders of Restaurant To give statistical information about Restaurant Industry To learn restaurant ownership type To analyze restaurant concepts To introduce some restaurant technologies

Where have we come from

Cooking in Quantity Boulangers Restoratives Food Guilds Inns & Taverns Early 20th Century Diners, Drive-ins, Speakeasies, and Roadhouses Franchising

Founders and leaders

Boulanger Marie-Antoine Careme Georges-Auguste Escoffier Delmonico Brothers Cesar Ritz George Pullman John Krueger Ray Kroc

Major changes
System of Inns and Taverns The American Plan 1820s Restaurants Railroad Car Cafeteria

Important Concepts and Technological Leaps

1803 the first ice refrigerator 1815 the first industrial foodservice operation in our nation was begun when Robert Owen opened a dining facility for this workers and their families 1825 the first gas stove 1834 Bowery Savings Bank of New York began and employee dining program, which is still in operation today. 1855 Harvey Parker offered the first a la carte menu as part of the European plan at the original Parker House in Boston. 1860s the development of the first dishwashing machine 1860s the first martini was made in San Franciscos Occidental Hotel

Restaurant timeline
Europe
1800 1833 Careme fashioned La Grande Cuisine 1825 La Physiologie Du Gout published by the worlds best know gourmet, Brillat-Savarin 1825 1858 Alexis Soyer gained culinary eminence. Wrote Gastronomic Regeneration. Introduced steam cooking at Reform Club, Long, in 1840s. Only chef to be mentioned in Britains Dictionary of National Biography. 1880 1900 Cesar Ritz enticed the elite from their homes to hotels for entertaining. Managed the Claridge, the Carlton, and the Savoy. 1880 1935 Auguste Escoffier, known as chef to kings and king of chefs, worked with Ritz, published Le Guide Culinaire (1907), considered by many to be the New Testament of Cookery.

Restaurant timeline
United States
1670 First coffee house in Boston, served coffee and chocolate. 1794 French refugee opened a restorator in Boston. Served truffles, cheese fondue, and delicious soups. 1829 Americas first restaurant opened, Delmonicos in New York City, served lunch, and had a lady cashier. First of more than a dozen eating establishments that brought the name Delmonicos to pre-eminence in the service of fine food. 1881 Louis Sherry opened his first restaurant, developed the art of catering. 1890s The John R. Thompson Company operates first extensive commissary system (Chicago). 1916 Nathans Famous Hot Dogs, Coney Island, NY (Nathan Handwerker) 1920 Orange Julius opened in California by Julius Freed 1921 White Castle Hamburgers opens in Wichita Kansas 1925 Howard Johnsons opens in Wollaston, MA 1926 Pizzeria Regina, Anthony Polcari, Boston, MA 1926 Maid-Rite, Floyd Angell, Muscatine, Iowa 1929 Karmelkorn, WY 1932 Krystal, Chattanooga, TN 1934 Steak n Shake, Normal IL 1936 Carvel Ice Cream, New York NY 1936 Papa Ginos, Boston MA 1937 Krispy Kreme, Salem NC (Vernon Rudolph) 1938 Big Boy, Glendale CA 1939 Country Kitchen, Cincinnati OH

Restaurant timeline
United States
1940 1944 1948 1950 1951 1952 1954 1958 1958 1958 1958 1959 1960 1960 1962 1965 1967 1968 1969 1969 1969 Dairy Queen, Joliet IL Baskin Robbins McDonalds, San Berdoo CA (Maurice & Dick McDonald) Dunkin Donuts Jack in the Box KFC, Corbin NY (Colonel Sanders) Burger King, Miami FL (James Mclomore/Dave Edgerton) IHOP, Toluca Lake CA Sizzler, Culver City CA Pizza Hut, Wichita KS Sbarro, Brooklyn NY Little Caesars, Garden City MI Dominos Pizza Hardees Taco Bell TGI Fridays Chick-fil-a Red Lobster Wendys Long John Silvers Cracker Barrel

Restaurant timeline
United States
1971 1971 1972 1972 1972 1974 1980 1980 1982 1983 1983 1983 1988 Schlotzskys Starbucks Popeyes The Cheesecake Factory Ruby Tuesday Subway Applebees Fuddruckers Olive Garden Quiznos Papajohns Pizza Hooters Outback Steakhouse

Major Market Share

Leading Contract Management Firms
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Leading Contract Managemen t Firms ($million)

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0 Sodexho Aramark Compass Delaw are North HMS Host

Major Market Share

Largest Independent Restaurants ($million)
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Largest Independent Restaurants ($million)

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0 Tavern Hilltop Joe's Bob Chinn's Spark's

Major Market Share

Top Quick Service & Fast Food Chains OutletsMarket Share McDonalds 13,099 43% Burger King 8,248 19% Wendys 5,315 13%

Major Market Share

Top Concepts Asian Panda Express31.81% Pizza Pizza Hut 13.4% Italian Olive Garden 33.35% Quick Service Boston Market 28.6% Sandwich Subway 30.8% Steak/BBQ Outback 32.44% Coffee/Snack Dairy Queen 20.60%

Employment data
Employs 12.2 million people 9% of employed persons Increased training in 2005 Labor-intensive Almost of the nation has worked in this sector

Contributions to the general economy

Restaurant Ownership Type

Partnership
A partnership is the relationship existing between two or more parties who join to carry on a trade or business. Each party contributes money, property, labor or skill and expects to share in the profits and losses of the business. A good example is the Trabant University Center Food Court, it is staffed by both Aramark employees and Delaware students, but is still owned as well by the University.

Pros and Cons

Sharing Profits Two heads are better than one. Liability Issues Management and Control

Leasing
Most Restaurants most commonly use the Ground Lease. Ground means that a tenant pays for long term use of a specified property for an period of time, usually 2-5 years. And example is most every restaurant on Main Street that pays money to the owners of the buildings and the town.

Pros and Cons

Leasing is less capital-intensive. Capital assets may fluctuate in value. Leasing may provide more flexibility to a business. If the successful, lessors may demand higher rental payments.

Franchising
Franchising is essentially buying a pre built Restaurant and the ideals and name that come with it. Franchisees not only use a franchisers product, service, and trademark, but also the complete method for conducting the business, such as the marketing plan and operations manuals. Darden Properties, McDonalds, and other QSRs are prime examples of this.

Pros and Cons

As practiced in retailing, franchising offers franchisees the advantage of starting up a new business quickly based on a proven trademark and formula of doing business, as opposed to having to build a new business and brand from scratch. For some consumers, having franchises offer a consistent product or service makes life easier, they know what to expect when entering a franchised establishment. Loss of control and self thought. Too many franchises in one place can become an eyesore.

Contract Management
Contract Management is used by a Restaurant owner who wants to own the property, but do not want the hassle of running the business. Darden Properties and Carlson Restaurants Worldwide Inc.

Prevailing Terms
Manager vs. Owner Who wins? To sue or not to sue.that is the question. Your place or mine?

Pros and Cons

Allows an owner to essentially remain hands off and just watch the P&L statement. Most managements companies in todays world have vast experience in what they do, and are commonly able to better run a Hotel than your average person. The owner has to pay the management company a set amount of money. And the management company always will get their cut regardless of how bad or well the Hotel is doing.

Restaurant Concepts
Profitable and Satisfying the Owner

Restaurant Concepts
A blue print for restaurant business Dcor, Menu, Style and Location PR, Advertising, The Promotion and The Operation itself Restaurant Name and Restaurant Owner

Variations Among Restaurants

Menu Items Food Quality Menu Prices Service Ambience

Service
Table Service Counter Service Room Service Self Service Takeout or Delivery Service

Catogories of Restaurants
Quick Service Midscale Restaurant Upscale Restaurant

Types of Restaurants
Fast Food Fine Dining Restaurant Ethnic Restaurant Specialty Restaurant Chain Restaurant Theme Restaurant Tops Restaurant

Dude? Wheres my check pad? New and coming technology.

RFID Tagging Wireless Programmable menus CRM Automation Biometrics Self Service Cooking