Innovation and Development in Restaurant Operations Week Two: Classifying Restaurant Operations Mark Ashton Contents » Considering the scope of the Food Service Sector » Categorising Restaurant Operations - theory » Practical Restaurant Categorisation – virtual visit to Guildford » Feedback to Group #uniofsurrey 2 Considering the Scope of the Food Service Sector • We will divide you into three groups facilitated by Sumeetra, Chris and I • Consider the scope of the food service sector • What type of operations make it up? • Where are they located? • What’s changing? • Meet back here to present back in 15 minutes A short walk from Waterloo to Hixter Bankside » A walk of about fifteen minutes covering a distance of less than a mile. » At Waterloo Station - Bagel Factory, Benugo, Boots, Burger King, Cabin, Caffe Nero, Cafe Ritazza, Carluccio’s, Costa, Delice de France, M&S Simply Food, MacDonald's, Mi Casa Burritos, Natural Kitchen London, Pret A Manger, Sports Bar and Grill, Starbucks, The Beer House Waterloo, The Pasty Shop, Upper Crust, Wasabi, West Cornwall Pasty Company, Whistlestop, WHSmith, Yo! Sushi » On the way - The Fire Station, GBK, Wahaca, Penny at the Old Vic, Pret A Manger (again), Pret A Manger (and again), Caffe Nero, Spice of India, Capital Kebab House, The Windmill Tavern, Culture Chinese, Olive Cafe, Restaurant Olivelli, Young Vic The Cut bar│restaurant │cafe, Meson Don Felipe, Freshcut Sandwich Bar, Byron, Southbank Tandoori, Costa, Tas, The Anchor and Hope, Ma's kitchen rotisserie, The Ring, Baltic, Lord Nelson, Nando's, Travelodge, Carlo's Kitchen, The Union Jack, Union Street Cafe, The White Hart, Costa, Thyme in the Premier Inn, Hilton Bankside, Mercure London Bridge, Marco's New York Italian, Citizen M, Vapiano, Rosie Tate Cafe, Itsu, Caravan Bankside, Hixter, » 67 individual operations. » A simple analysis of the list shows that 51 operations are affiliated to a chain and 16 are independent operations; there are 3 bars, 3 cafes, 9 coffee shops, 4 hotels, 7 pubs, 28 restaurants, 4 retailers, and 9 take-aways; 3 of the operations are run by ‘celebrity’ chefs. If there are this many different types of operations in one fifteen minute walk across one mile of London, how much more complex is it to consider the totality of food and drink service operations across the whole of the industry in the UK and internationally? #universityofsurrey 4 Why classify? • To provide meaningful and comparable statistics. • UK - the Standard Industrial Classification (SIC). The SIC is very detailed and provides interesting statistics, the categories it uses are not necessarily the ones that correspond best to the dynamics of the industry and due to the nature of the system exclude certain activities, such as catering in schools and hospitals • USA - the North American Industry Classification System (NAICS). • Benchmarking. • Particularly for statistical or metric benchmarking to work effectively, the choice of your comparison set is critical and the more scientific the choice the more successful the comparison is likely to be. • A number of researchers have spent considerable effort in designing systems that can provide these groupings. See, for example, Barrows, Vieira and DiPietro (2016), Barrows and Vieira (2013) in the references at the end of Chapter 2 in FBM 6th . • Common issues. • While every food and drink service operation is unique, they do display similarities in the way they can and should be operated and understanding where the similarities and differences lie can help the manager understand how to manage their operation in the best way. • Indeed as Barrows (2001 p. 59) has suggested, • “Classifying operations is critical since different segments tend to have unique characteristics including the areas of labor expertise, operating systems, cost structures and profitability. One very important area where segments tend to differ is with respect to the management challenges they face and the strategies that each segment employs.” 5 Approaches to classification » Classifying by the name • In Japan, what is the difference between a Shabu-shabu and a Shojin restaurant?. • In Italy, what is the difference between a pizzeria and a pizza rustica or pizza à taglio? • And in France what is the difference between a bistro, a brasserie and a buvette. Japanese hot pot, featuring paper-thin slices of tender meat and fresh vegetables cooked together in a large open pot. A typical shojin ryori meal is centered around soybean-based foods like tofu along with seasonal vegetables and wild mountain plants, which are believed to bring balance and alignment to the body, mind, and spirit. This simple meal contributed to Japan’s elegant haute cuisine called kaiseki, and today can be eaten at the dining halls located in Buddhist temples across Japan. 6 Wikipedia » Automat » Delicatessen » Automated restaurant » Dhaba » » Bakery Bar » » Diner Dining car » Ice cream parlor » Raw bar » Ice cream van » Refectory » Izakaya » Rejuvenation of dai pai dong » Juke joint » Revolving restaurant » Kafana » Roadhouse (facility) » Kissaten » Rodízio » Kopi tiam » Sandwich bar » Lunch counter » Seafood restaurant » Mamak stall » Bar mleczny » Dining room » Bistro » Dinner theatre » Bouchon » Dinner train » Brasserie » Drive-in » Breastaurant » Drive-through » Snack bar » Männergarten » Brewpub » Fast food restaurant » Soda shop » Meadery » » » Soup kitchen Bridge restaurant Fast casual restaurant » Meat and three » » » Steakhouse Café gourmand Floating restaurant » Microdistillery » Strausse » Cafeteria » Food booth » Milk bar » Supper club » Cakery » Food cart » Mobile catering » Take-out » Cantina » Food court » Mystery dinner » Tavern » Carvery » Food hall » Osteria » Taverna Food truck » Ouzeri » Theme restaurant » Oyster bar » Thermopolium » Paladar » Tower restaurant » Pancake house » Trattoria » Pie and mash » Truck stop » Pølsevogn » Underground restaurant » Pop-up restaurant » Volxkuche » Pub » Punjabi dhaba » Chifa » » Chuckwagon » Gastropub » Churrascaria » Greasy spoon » » » » » Coffeehouse Concession stand Coney Island (restaurant) Cosplay restaurant Dai pai dong » » » » Haute cuisine Hawker centre Health food restaurant Heuriger 7 More ways to classify » Classifying by food type • burgers, chicken, coffee, sandwich, deli, pizza, Mexican, American, steak, Italian, seafood, ice cream, Chinese, Japanese, pan Asian, donuts, BBQ, beverage, brew pub, soup and salad, hot dogs, bakery, fondue, Caribbean, eclectic/fusion, pancakes/waffles, desserts/snacks, New Orleans, pasta, bagels, Southwest, other ethnic, and chili. (Barrows and Viera, 2013) • Local, national, ingredient based, theme, healthy » Classifying by business format • • • • Independent owner operated Chain Franchise Pubs • • • • • managed houses retail agreement franchise agreement tenancy agreement Lease • Management contract. 8 And still more » Classifying by market / direct v indirect • Who chooses where you eat? » Classifying by venue / occasion • Where you eat – SIC plus » Classifying by service style / level • Fine dining • Casual Dining • Fine casual. • Fast casual. • Quick Service Restaurants (QSR).. • Coffee shops • Take away / mobile. » Classifying by average spend 9 Service Style Positioning Matrix 10 Fine Dining A possible schema Casual Restaurants Coffee Shops QSR Take-away, Pop up & Mobile Direct Food and Drink Service Operations Hotels Accommodation B&B / Hostels Pubs, Bars & Nightclubs Membership Clubs Events Business & Industry School Meals Education Colleges and Universities In-flight Indirect Travel Cruise Rail Hospitals Health and Welfare Care Catering The Services Prisons 11 So how should we categorise restaurants? • Get into eight groups • Virtually Visit Guildford and list the food service providers in your assigned geographical area • Note their features using . . . ? ? ? • Keep your list with annotated features – we will use this again in week 5 • Come up with a way of categorising them • Produce a one page schematic of this • Meet back here at 11am to present back to the class by sharing your screen and justifying your method 3 2 1 7 4 6 5 8 Questions? #universityofsurrey 14 15