The Restaurant Business
ACTIVITY
• Explain the differences between an
independent and chain ownership
restaurant.
• List examples of these two types of
restaurants which are available in
Egypt.
The Restaurant Business
• Why Restaurants are a vital part
of our everyday life styles?
• because we are a society on the go,
we patronize them several times a
week to socialize, well as eat and
drink.
What is the word restaurant come
from?
• Restaurants offer a place to relax and enjoy
the company of family, friends, groups, and
business associates, to restore our energy level
before heading off to the next class whatever.
Actually, the word restaurant is from the word
restore.
Classifications of Restaurants
• There are two main categories: independent
restaurants and chain restaurants.
Individual restaurants
• Owned by one or more owners
• Usually involved in the day-to-day
operation of the business
• These restaurants are not associated
with any national brand or name.
• They offer the owner independence,
creativity, and flexibility, but are
accompanied by risk
Chain restaurants
• Comprise a group of restaurants, each have the
same market, concept, design, service, food, and
name.
• The same menu, food quality, level of service, and
atmosphere can be found in any one of the
restaurants, regardless of location.
• These are usually owned by family teams or other
entrepreneurs
Full-Service Restaurant
• Restaurant types included in this category are
fine dining, theme, celebrity, and some ethnic
restaurants.
Fine Dining
• A fine dining restaurant is one where a good selection
of menu items is offered; generally at least fifteen or
more different entrees cooked to order.
• Many of these restaurants serve haute cuisine, which is
a French term meaning elegant dining or high food.
• Many of the fine restaurants in the United States are
based on French or Northern Italian cuisine, which,
together with fine Chinese cuisine, are considered by
many Western experts to be the finest in the world.
Cont. Fine Dining
• Most fine dining restaurants are
independently owned and operated by an
entrepreneur or a partnership. These
restaurants are in almost every city.
• Today, with value-conscious guests expecting
more for their money, it is becoming
increasingly more difficult to make a profit in
this segment of the business because of strong
competition from other restaurants.
Cont. Fine Dining
•
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The level of service in fine dining restaurants:
is generally high,
with a hostess or host to greet and seat patrons.
Captains and food servers advise guests of special
items and assist with the description and selection of
dishes during order taking.
 If there is no separate sommelier (wine waiter), the
captain or food server may offer a description of the
wine that will complement the meal and assist with
the order taking.
 Some upscale or luxury full-service restaurants have
table-side cooking and French service from a
gueridon cart.
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 earned
 Consistency and quality are not easy to
maintain
 Limited market appeal.
Theme Restaurants
• Many theme restaurants are designed around a
particular theme, this theme is used or reflected in
every element of the establishment's ambiance,
 They generally serve a limited menu but aim to
wow the guest by the total experience.
 Possibilities for theme are railroad cars or stations,
airplanes, dining cars, rock and roll, and many
others. Examples of theme restaurants are: TGI
Friday’s, Hard Rock Cafe, Studio Misr, and Bedouin
Nights.
Cont. Theme Restaurants
• People are attracted to theme restaurants
because they offer a total experience and a
social meeting place. This is achieved through
decoration and atmosphere and allows the
restaurant to offer a limited menu that blends
with the theme.
Celebrity Restaurants
• Celebrity-owned restaurants have been growing in
popularity. Some celebrities, such as Wolfgang Puck, came
from a culinary background, while others, like Naomi
Campbell, Claudia Schiffer, and Elle Macpherson (owners
of the Fashion Café), did not.
•
 A number of sports celebrities also have restaurants.
Among them is Michael Jordan. Television and movie stars
have also gotten into the act. Oprah Winfrey has been part
owner of The Eccentric in Chicago for a number of years.
•
 Celebrity restaurants generally have an extra zing to
them—a winning combination of design, atmosphere, food,
and perhaps the thrill of an occasion visit by the owner(s).
Top Restaurants
• Refer to food and beverage operations located on
the top floors of hotels or other tall buildings,
usually located in some part of a major city where
there is an interesting or spectacular view.
• An example is windows on the world at the top of
one of twin towers of the world trade center in
New York. (till 9/11 booming)
• Example in Egypt, Cairo Tower Restaurant,
Capital Club ( ) ‫نادى العاصمة‬and Window of the
World (Hilton Ramses, Cairo)
Casual Dining and Dinner House
Restaurants
• The types of restaurants that can be included in
the casual dining restaurants category are as
follows:
• a) Casual Restaurants
• b) Family Restaurants
• c) Ethnic Restaurants
• Casual Dining is relaxed and could include restaurants
from sever classifications: chain or independent, ethnic,
or theme. Hard Rock Cafe, and TGI Friday’s, are good
examples of casual dining.
• Family Restaurants is one that caters to family
groups-parents with children and other contemporary
family grouping. Most offer an informal setting with a
simple menu and service designed to please all the
family. Prices are kept in a low to moderate range.
• Ethnic Restaurants are specialized in foods associated
with a particular culture, such as Chinese Mexican, or
Greek. Ethnic restaurant vary service, and ambiance.
Quick-Service / Fast-Food
Restaurants
• Quick-service restaurants consist of diverse
operating facilities whose slogan is “quick
food.”
•
 The following types of operations are
included under this category hamburger, pizza,
chicken, pancakes, sandwich shops, and
delivery services.
Cont. Quick-Service / Fast-Food
Restaurants
• Quick-service or fast-food restaurants offer
limited menus featuring food such as
hamburgers, fries, hot dogs, chicken (in all
forms), tacos, various finger foods, and other
items for the convenience of people on the go.
•
 Customers order their food at a counter under a
brightly lit menu featuring color photographs of
food items. Customers are even encouraged to
clear their own trays, which helps reduce costs.
Cont. Quick-Service / Fast-Food
Restaurants
• The following are examples of the different
types of quick-service/fast-food restaurants:
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Hamburger—McDonald’s, Burger King, Hardee’s
 Pizza—Pizza Hut, Domino’s,
 Steak—Bonanza, Ponderosa
 Seafood—Long John Silver’s
 Chicken—KFC,
 Sandwich—Subway
 Mexican—Taco Bell,
 Drive-Thru-In Delivery—Domino’s, Pizza Hut,
McDonald’s

Trends in the Restaurant Business
• Branding: Restaurant operators are using the power of
branding, both in terms of brand name recognition from a
franchising viewpoint and in the products utilized.
 Alternative outlets: Increased competition from
convenience “c-stores” and home meal replacement outlets.
 Globalization: Continued transnational development.
 Continued diversification within the various dining
segments.
 More twin and multiple locations.
 More points of service (e.g., Taco Bell at gas stations).
 More hyper theme restaurants.
 Chains vs. independents.
Restaurant Operations
• Restaurant operations are generally divided
between what is commonly called front of the
house and back of the house.
•
 The front of the house includes any one with
guest contact from the hostess to the busperson.
•
 The back of the house is generally run by the
kitchen manager and refers to all the areas that
guests do not normally come in contact with. This
includes purchasing, receiving, storing/issuing,
food production, stewarding, budgeting,
accounting, and control. .