Chapter Two: Kinds and Characteristics
of Restaurants and Their Owners
• Various Kinds and
Characteristics of
Restaurants
• Chain vs.. Independent
Restaurant Operations
• Lives and Contributions
of Prominent Past and
Present Restaurateurs
TYPES OF
RESTAURANTS
Quick-Service
Steak House
Fine-Dining
Ethnic
Theme
Chef-Owner
Bakery-Cafe
2
QUICK-SERVICE
McDonald’s and Burger King
• First fast food
restaurant in 1870s
• Quick food production
time is key
• Goal is to serve
maximum number of
customers in
minimum amount of
time
3
QUICK-SERVICE CONT’D
• Computers are used to anticipate sales
volume
• Precooked or partially cooked foods are
ordered and then finished off to decrease
production time
• Time, temperature, and meat thickness
are used to determine doneness
4
STEAK HOUSES
Lone Star and Outback Steakhouse
• Limited menu caters to
a well-identified
market
• Service ranges from
walk-up to high end
• High food costs (as
high as 50%) and low
labor costs (as low as
12%)
• Majority of customers
are men
5
STEAK HOUSES CONT’D
High-end operations:
• may have sales of $5m or more
per year
• greater investment in building,
fixtures and equipment
• serve well-aged beef
• high percentage of wine and
hard liquor sales
Low-end operations:
• sales of $500,000 per year
• beer and moderately priced
wine
6
TYPES OF STEAK
• Steaks vary from a few ounces to well over 1lb
• Tenderloin is most tender, runs along backbone (most
popular)
• T-bone is cut from small end of loin
• Porterhouse contains T-bone and piece of tenderloin
• Wet aged: meat that’s wrapped in cryovac, sealed,
and refrigerated for several days
• Dry aged: controlled temperature, humidity, and air
flow
7
FINE DINING
Daniel and Charlie Trotter’s
• Found in wealthy areas
• Cuisine and service is
expensive and leisurely
• Usually proprietor- or partnerowned
• Restaurants are small, usually
less than 100 seats
• Very low table turnover (can be
<1)
• Customers dine on special
occasions and to impress
business relations
8
ECONOMICS OF FINE
DINING
•
•
•
•
Expensive, average check runs $60 or more
High rent
Large PR budgets
High labor costs due to the necessity of highly
experience employees
• Much of profits come from wine
• Tables, linen, dishes, décor very costly
9
FINE DINING MENUS
• Expensive, imported items
– Foie Gras
– Caviar
– Truffles
• Presentation very important
• Focus on visual, auditory,
and psychological
experience
• Extensive, expensive wine
list
10
THEME
Planet Hollywood and Hard Rock Cafe
• Built around an idea
emphasizing fun and
fantasy
• Glamorize sports,
travel, eras in time
• Celebrities are central
to many theme
restaurants (some are
owners)
11
THEME LIFE CYCLE
• Short life cycle compared
to other types popular of
restaurants
• Do well outside major
tourist attractions
• Locals tire of the hype
when food is often poor
• Most of the profits come
from merchandise, not
food sales
12
THEME COSTS
• Require large investments and
budgets
• Often fail because too much is
spent on image and not
enough on food and service
• High capital and operational
costs
• Extreme décor can be very
pricey
• Often require excessive labor
– Curators, consultants, animal
handlers, etc.
13
THEME CATEGORIES
• Hollywood and the
movies
• Sports and sporting
events
• Time- the good old
days
• Travel- trains, planes,
and steamships
• Ecology and the world
around us
14
ETHNIC
Olive Garden and Panda Express
• Many types
– Mexican, Italian, Moroccan, Chinese,
Thai, etc, or combinations several
• Often owned or operated by
persons of ethnic background
• Feature dishes native to the
country
• Can be argued that every ethnic
restaurant is also a theme
restaurant, with the national
culture as the theme
15
CHEF-OWNER
Spago and Emeril’s
• Part of American tradition
of family restaurants
– Husband is operator/chef
– Wife is hostess
– Children serve, bus, etc.
• Publicity is key in gaining
attention
• Wolfgang Puck best
known
– Owns Spago in Beverly
Hills, with his wife as
partner
16
ADVANTAGES TO CHEF
OWNERSHIP
• Having an
experienced, highly
motivated person in
charge
• Name often already
known and
synonymous with
great food
• Can be very profitable
17
DISADVANTAGES TO
CHEF OWNERSHIP
• Chefs often less
knowledgeable about
“the numbers”
• Can often make more
money working as a
chef in a name
restaurant
• Possibility of marital or
partner dispute
18
BAKERY-CAFE
Panera Bread Company and La Madeleine
• Different than a bakery in that
they serve soups, salads, and
sandwiches
• Mainly quick-service
establishments
• Many bake off goods that are
prepared elsewhere or do final
proofing after receiving goods
• Use central commissary
systems
• Variety of setting, products,
and ambiance
19
The End
20