Chapter 7 The Restaurant Business

Introduction to Hospitality, Fourth Edition John Walker

©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

NJ 07458 .After Reading and Studying This Chapter. Inc. You Should Be Able to:     Describe the different characteristics of chain and independent restaurants Identify some of the top chain and independent restaurants List the classifications of restaurants Differentiate the characteristics of chain and independent restaurants Introduction to Hospitality. Fourth Edition John Walker ©2006 Pearson Education. Pearson Prentice Hall Upper Saddle River.

Inc. Fourth Edition John Walker ©2006 Pearson Education. family.Restaurants     Vital part of everyday life Patronized several times a week for social purposes as well as to eat and drink Offer society a place to relax and “restore” Offer an opportunity to enjoy the company of friends. NJ 07458 . colleagues and associates Introduction to Hospitality. Pearson Prentice Hall Upper Saddle River.

Fourth Edition John Walker ©2006 Pearson Education. NJ 07458 . Pearson Prentice Hall Upper Saddle River.More About Restaurants    50% of the food dollar is spent away from home Multi-billion dollar business Employs 11. Inc.7 million people Introduction to Hospitality.

Inc. NJ 07458 . Fourth Edition John Walker ©2006 Pearson Education.French Cuisine and Its Foundation  The French are credited with culinary art. largely due to two main events    French cuisine and its foundations   French Revolution Thomas Jefferson  American Adaptation  Mother sauces Nouvelle cuisine (lighter cuisine) Infusion  Blending of flavors and techniques of two cuisines Introduction to Hospitality. Pearson Prentice Hall Upper Saddle River.

Inc. NJ 07458 .Culinary Greats  Auguste Escoffier      Julia Child Emeril “BAM” Lagasse Bobby Flay Charlie Trotter  Patron Saint of Cooking   Alice Waters Paul Prudhomme Considered America’s finest Introduction to Hospitality. Pearson Prentice Hall Upper Saddle River. Fourth Edition John Walker ©2006 Pearson Education.

Inc. Pearson Prentice Hall Upper Saddle River.Chefs of Today Need to Possess:    Cooking skills Employability traits People skills Introduction to Hospitality. NJ 07458 . Fourth Edition John Walker ©2006 Pearson Education.

Inc. Fourth Edition John Walker ©2006 Pearson Education. Pearson Prentice Hall Upper Saddle River. NJ 07458 .Figure 7-1 Approximate Market Share of Restaurant Segments Introduction to Hospitality.

Pearson Prentice Hall Upper Saddle River. Fourth Edition John Walker ©2006 Pearson Education. Inc. NJ 07458 .Full-Service Luxury Restaurants     National Restaurant Association Good selection of menu items made on premises Haute cuisine Fine Dining Hall of Fame    There are few national chains    Le Bec Fin Spago Morton’s Ruth Chris’s Roy Flemings Introduction to Hospitality.

Pearson Prentice Hall Upper Saddle River. NJ 07458 . Inc. Fourth Edition John Walker ©2006 Pearson Education.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 Introduction to Hospitality.

Junior Seau. Denzel Washington Seau’s San Diego All Star Café House of Blues ©2006 Pearson Education. NJ 07458 Introduction to Hospitality. Dan Marino.Other Restaurant Classifications   Theme restaurants Celebrity-owned     Owned by celebrities such as Michael Jordan. Pearson Prentice Hall Upper Saddle River. Fourth Edition John Walker . Steven Segal. Gloria Estefan. Inc.

Inc.Casual Dining and Dinner House Restaurants     Mid-scale casual restaurants Family restaurants Ethnic restaurants Specialty restaurants Introduction to Hospitality. NJ 07458 . Fourth Edition John Walker ©2006 Pearson Education. Pearson Prentice Hall Upper Saddle River.

Inc. Fourth Edition John Walker ©2006 Pearson Education. NJ 07458 . Pearson Prentice Hall Upper Saddle River.Specialty Restaurants Quick Service      Theme related $111 billion annual sales Better known as fast food Limited menus Guest helps defray labor costs Introduction to Hospitality.

Quick Service Hamburger  McDonald’s and Ray Kroc      Added breakfast Expanding overseas Co-develop sites with gasoline companies $33 billion worldwide sales Drive thru Introduction to Hospitality. NJ 07458 . Inc. Fourth Edition John Walker ©2006 Pearson Education. Pearson Prentice Hall Upper Saddle River.

Pearson Prentice Hall Upper Saddle River. Fourth Edition John Walker ©2006 Pearson Education.Quick Service Pizza    Local and regional chains all with delivery service $20 billion market Four major chains     Pizza Hut Domino’s Papa Johns Little Caesars Introduction to Hospitality. NJ 07458 . Inc.

Fourth Edition John Walker ©2006 Pearson Education. Pearson Prentice Hall Upper Saddle River. NJ 07458 .Quick Service Chicken  KFC is market leader   Home delivery “3 in 1” restaurants Church’s Chicken Popeye’s  Other chains   Introduction to Hospitality. Inc.

NJ 07458 .Other Types of Restaurants  Steakhouses   New growth area Outback Steakhouse     Seafood restaurants Pancake restaurants Sandwich restaurants Family restaurants Introduction to Hospitality. Pearson Prentice Hall Upper Saddle River. Fourth Edition John Walker ©2006 Pearson Education. Inc.

Ethnic Restaurants    Independently owned and operated Mexican restaurants are largest growth segment Different types are developing   Thai Indian Introduction to Hospitality. Inc. NJ 07458 . Pearson Prentice Hall Upper Saddle River. Fourth Edition John Walker ©2006 Pearson Education.

Independents ©2006 Pearson Education. NJ 07458 Introduction to Hospitality.Trends          Demographics Branding Alternative outlets Globalization Continued diversification More twin and multiple locations More points of service More hyper-theme restaurants Chains vs. Inc. Fourth Edition John Walker . Pearson Prentice Hall Upper Saddle River.

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