RESTAURANTS AND TAKEAWAYS
Contents
Warning
General
Part 1 – Restaurants & Takeaways
Introduction
Facts, Figures & Events
The Proprietors and Primary Staff
Income
Types of Meals
Specialist Restaurants
Stock Management
Suppliers
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion
Premises and Running Costs
Promotion, Advertising & Competition
Customers
Legislation
Licensing
Gross Profit Rates
Effects on Profitability
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion
Useful Information
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion
Restaurant Observations
Records
Meals: Drinks Ratios
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion
E- Compliance Issues
Tips, Gratuities and Service Charges
The Tronc System
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion
Part 2 – Types of Restaurant
Chinese Restaurants & Takeaways
Indian Restaurants & Takeaways
Thai Restaurants
Italian Restaurants
Greek Restaurants
French Restaurants
Spanish Restaurants – Tapas Bars
African/Caribbean Restaurants
Japanese Restaurants
Glossary
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion
Appendix 1 – Annual Catering Events
Appendix 2 – Maximising profitability
Warning
These notes are not intended to provide an exhaustive or definitive picture. Any tactical tips
must be treated with a ‘health warning’ as the BIU cannot test or validate theories or ideas
submitted to it, but merely supplies information to be used with common sense and
discretion.
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
Links to the Internet
There are a number of links to Internet addresses scattered throughout this note. These are
not linked and need to be accessed separately from this TIP.
Reference to commercial organisations and products
This TIP may contain references to commercial organisations, together with reference to
specific products or services. Please note these are included for example purposes only and
are not endorsements of the organisations, products and services.
This TIP may also contain information or statements from external Web sites. Links to non HMRC Internet sites do not imply any official endorsement of or responsibility for the validity of
the information, data or products presented. The sole purpose of links to other sites is to
indicate further information available on related topics.
General
This Tactical and Information Package (TIP) covers the mainstream restaurant trade, the
majority being independents, in private ownership, which are either sole, family or partnership
based businesses. It provides background information on the restaurant trade as a whole,
together with a basic insight into a sample of the different types of restaurants found in the UK.
Many restaurants and takeaways of all types share the same characteristics and impacted upon
by the same risks and economic pressures. Part 1 of this TIP covers the generic issues of this
sector whilst Part 2 concentrates on specific types of restaurants and takeaways.
The TIP has been formatted in two parts as follows:
Part 1 – General information relating to the restaurant and takeaway trade
Part 2 – Types of restaurants and takeaways and their trading practices in the UK
Part 1 – Restaurants and Takeaways
Introduction
A restaurant is defined as a public place or premises, where meals or refreshments may be
obtained. The term restaurant is generally used to signify an eating place providing a wide
range of food, with either table or self-service. It can encompass everything from a local
takeaway to an exclusive highly acclaimed outlet.
Essentially restaurants prepare and serve food for the public.
The majority of national and specialist restaurants catering for the entertainment or leisure food
market are in private ownership and are sole, family or partnership based businesses.
In the last 20 years eating out has become one of the UK’s top five leisure activities. There has
been a culinary revolution in the UK and although we are still lagging behind the French and
Italians, eating out is now becoming “big business”.
Despite forecasts that consumers’ expenditure on eating out will continue to grow, independent
restaurants may lose sales to the large breweries that have already successfully introduced
food sales into their pubs, and specialist chains that have achieved a high national profile.
Consumer expectation has resulted in a huge variation in the style of restaurants and the type
of food now available and reports suggest that some restaurants are relying on attracting
greater numbers of customers to counter a general fall in the average spend per-head.
The restaurant trade expands and contracts according to the performance of the economy.
There has been a growth in personal disposable incomes in recent years, however any future
downturn is likely to have a significant negative impact on the industry, as expenditure on dining
out is often among the first sacrifices to be made when available disposable income is reduced.
Fast food and café style outlets at the lower end of the market may be more resilient to
economic downturn than more upmarket establishments, while the most exclusive restaurants
are often among the hardest hit.
The UK restaurant sector can be segmented in the following ways, Restaurants- licensed and
unlicensed, Hotel restaurants, Fast food outlets, Café bars, Table service outlets, Pub
restaurants and exclusive and highly acclaimed restaurants. Different businesses tend to serve
a particular market niche; this is often reflected in their decor, menu and prices.
Location, decor, menu and prices often indicate the restaurant position in the market.
The independent middle market offers a selection of good quality, moderately priced food in
reasonable surroundings.
Many people who decide to open a restaurant think of it as a hobby and this is a possible
reason for the high rate of failures in this sector. Proprietors require previous hands on
experience or qualifications, together with good marketing skills to meet this demanding trade.
Growth in ethnic food sales has been driven by a number of factors. The established restaurant
base in the UK, rise in foreign travel, and a plethora of cookery programmes, have all
encouraged diners to become more adventurous in their eating habits.
As well as the popularity of Indian, Chinese, Italian, Spanish and French restaurants, there has
been an expansion into more diverse foods, such as Japanese Sushi bars and Thai restaurants.
Restaurants and takeaways of all types share many of the same characteristics and economic
pressures. They are generally also subject to the same considerations such as costing, price
structure, profit margins, overheads and wastage.
Facts, Figures and Events
The following table of facts and figure may assist when reviewing specific years:
2000
The implementation of the National Minimum Wage Act in April 1999
had a significant impact on the catering sector in general.
2001
Many top London restaurants reported difficult trading conditions due
mainly to over-capacity in the sector; the sharp rises in operating costs
and a downturn in the economy.
The Foot and mouth disease outbreak in the first half of 2001 had a
significant, if temporary, negative impact on the sector, primarily as a
result of a sharp decline in both inbound and domestic tourism.
2002
Growth continued despite a somewhat less favourable economic
climate and a series of adverse events.
London saw record numbers of both new openings and business
failures this year and some complained that the introduction of the
congestion charge had a negative effect on sales.
2003
The lower ends and middle markets in the catering sector benefited
from strong demand for good value restaurant dining and some
restaurants were adopting higher drink margins.
2004
The number of meals eaten outside the home continued to rise.
However, according to ONS figures (PA 1003), 80% of all VAT
registered restaurants and eating places turned over less than
£250,000 in 2004, while 40% turned over less than £100,000.
2005
There are indications that there were in excess of 18,000 restaurants
in the UK at July 2005 and 70% of businesses were owner-operated.
Restaurants employed more than 500,000 full and part time staff.
72% of adults were identified as users of pub restaurants.
2006
Information sources suggest that consumers’ expenditure on eating
out will continue to grow however independent restaurants may lose
sales to the large breweries with pub restaurants and to specialist food
chains with a high national profile.
The late night foodservice sector, particularly the after-pub curry
restaurants are likely to be affected by the new licensing laws that
were introduced in November 2005.
It is also likely that in the near future all catering outlets will be required
to display the report from their last hygiene inspection at the door of
their premises.
The Food Standards Agency (FSA) is likely to introduce a system of a
compulsory hygiene inspection of all new food outlets prior to them
trading.
Future events
The total smoking ban that is going to be introduced in summer 2007
will also impact on this sector. However, many restaurants have
already imposed their own smoking policies by allocating non-smoking
areas in their restaurants.
The government has announced its intention to outlaw gaming
machines in unlicensed premises such as takeaways. The ban is
likely to take effect from the beginning of 2007.
The Proprietor and Primary Staff
Proprietors set up and operate restaurants, where meals can be bought and consumed by
diners.
In recent years consumer expectation of the style of restaurants and the types of food available
has become an important aspect in this sector.
As trends have changed successful proprietors have had to respond and gain further skills.
Proprietor skills and qualifications
All proprietors will require some form of practical experience prior to setting up in business.
In addition they will require specific personality traits, such as having a good sense of humour in
order to communicate with a variety of different types of customer and stamina in order to work
excessively long hours outside of the normal opening hours.
It will also be important for the to maintain a general interest in changing food trends in order to
provide the exact type of food that customers will expect.
Basic business skills and marketing techniques are also important requirements.
There are no specific qualifications required to open a restaurant, but training in basic food
preparation is important.
Basic Food Hygiene Course will be available in most college prospectus and catering colleges
will be based in most major cities.
Nationally recognised qualifications include:

National Provisional GNVQ Foundation Level Achievement, Hospitality and Catering.

City & Guilds Food Preparation and Cooking

City & Guilds Profile of Achievement (Catering)
There are also a variety of other City & Guild courses relating to catering and hospitality that are
appropriate for staff employed at the restaurant.
Primary Staff
More than half the UK's restaurants are owner-managed, or run by the owner in partnership with
managers; this number is steadily increasing.
Primary staff will include restaurant managers and catering managers.
Restaurant managers welcoming diners when they enter the restaurant and show them to their
table. Their role includes making sure that customers are satisfied with the quality of food and
service of the restaurant.
Catering manager’s work behind the scenes in the kitchens ensuring that things are running
smoothly. Their role includes managing staff recruitment; ensuring full training is given to all
employees; organising shift patterns; and keeping staff motivated. They also often control
maintenance of equipment, stock and the budget.
There are likely to be overlaps in the work of the catering manager and the restaurant manager.
Working Practices
Restaurant managers will more than likely work evenings, weekends and public holidays and
split shifts are a common practice, while catering managers are more likely to work regular
daytime hours. Overtime on the lead up to important events and flexible hours are likely to be
worked by both.
As restaurants/takeaways hours are likely to vary considerably, it will be important to establish
the businesses exact opening hours in order to compare primary staff working patterns.
Manager Training
Hands on training are usually provided and many will work towards a qualification such as an
NVQ/SVQ Level 3 or BTEC National Certificate in Hospitality Supervision.
Many experienced manager’s move on and start-up their own businesses in contract catering or
in hotel management. Some move to the large hotel and restaurant chains and progress to
regional or area management.
Earnings
The following figures are provided for guidance only:

wages for a junior restaurant or catering manager, may rang between £10,000 and
£18,000 annually

when experience has been gained the salary could rise to between £20,000 and
£27,000 annually

senior managers may be able to earn around £40,000
Restaurant manager wages
Independent restaurant managers are likely to earn between £18,000 (low) and £30,000 (high)
if the turnover of the restaurant is up to £750,000 and between £22,000 and £40,000 if the
turnover is between £750,000 and £2m.
Details relating to staff in general can be found at the E-Compliance section of this TIP.
Income
The average restaurant and takeaway has two primary sources of income: Food and Drink,
however there is also ample opportunity for additional and subsidiary income to be derived.
The following lists those sources you are most likely to encounter:

Vending Machines - where there is a takeaway service operated there may be video,
gaming and various vending machines. There are often machines providing sweets,
especially where children are catered for and beauty and health products supplied in
washrooms. Some outlets will have cigarette vending machines, although the level of
commission received will depend upon the terms of the contract. Income from vending
machines should be recorded separately, but is often included in the daily takings or
omitted altogether

Payphones (although in decline due to the development of the mobile phone)

Function Rooms - restaurants may be hired out at times when they are closed to the
public, for example on a Sunday afternoon for a Christening or on a Saturday afternoon
for a wedding. The proprietor will supply the catering needs that will usually be hot and
cold buffets and these types of function may provide a main source of additional income

Outside Bars - in a marquee for a wedding, in a church hall for a social function or in a
school hall for a football or sports club – food may also be provided

Car Park - restaurants with large car park may permit car boot sales - payments are
likely to be in cash

Match day parking - those situated close to a football ground may charge a fee for car
parking on match days – thus providing additional cash in hand income

Entertainment - ticket charges for various forms of entertainment may be in excess of
the actual price paid out for the entertainment

Delivery charges - a nominal charge may be made for takeaways delivered outside a
particular radius

Non-food items - the sale of plastic cutlery and soft drinks in takeaways

Cancellation policy - some restaurants at the top end of the market have a policy of
charging a cancellation fee, which may be up to £15 per head if a table is cancelled with
less than 24 hours notice – possibly off record

Price increases - benefits can be gained when the brewers announce price increases,
bar prices increased before stocks bought at the pre-increase prices have been used

Wine - the sale of wine in restaurants is high and some proprietors may purchase cases
of wine from wholesalers in addition to that put through the books

Corkage – income may be gained see section on Corkage

Relief cover - a proprietor may take over the catering activities in a friend’s or
associate's restaurant to cover holiday relief. In some cases this may be a reciprocal
arrangement, but in others off record fees may be paid - establish how holidays are
covered.
Types of Meals
Meals may be offered in the following ways and this will also impact on the sales mix:
A la Carte
Buffets
Haute cuisine
Children’s
Gourmet cuisine
Healthy eating
Set 3 course meals
Vegetarian
Sunday lunches
Organic
Carvery
Takeaway food
Expansion on some of the above types of meals:
Carvery
The Carvery is popular as a Sunday Lunch alternative. Carvery meals usually include a choice
of three, carved roasts plus a selection of potatoes and vegetables. A set advertised price is
usually charged with starters and sweets charged separately.
There are a number of tricks of the trade, which allow owners to control portions and maximise
profit on carvery meals, such as:

medium sized plates may be used at a carvery to prevent customers overloading food

patterned plates may be used to give an impression of being full before they really are

large Yorkshire Puddings may be served, leaving less room for meat and vegetables.
Vegetarian
Vegetarianism is reported as being the fastest-growing food trend in the UK.
Previously vegetarians were not sufficiently catered for in restaurants and were often offered
melon and nut cutlet or a ploughman’s or a salad as a vegetarian option.
Whilst most restaurants include some vegetarian dishes, there are not many who specialise
entirely in vegetarian cuisine.
Apart from preparing traditional dishes using meat substitutes such as soya meat, most
vegetarian establishments are moving away from the meat substitute concept to providing
original and more imaginative dishes with more of an emphasis on health or nutritional foods.
Whilst salads predominate on most menus, other widely used ingredients include pasta, rice,
legumes, cheeses, vegetables and nuts. Good chefs who have an interest in catering for
vegetarians now provide a wide choice of options.
The costing for Vegetarian food is likely to be less than the costing of a meal containing meat
and this should be reflected in the menu price. However some proprietors may include
vegetarian dishes in an overall price on the menu and a higher profit will be made.
Healthy Eating
Healthier eating is a definite current trend and many traders are acknowledging this fact and
changing their menus accordingly.
Many are now offering virtually fat free and low calorie dishes and actually state the fat and
calorie content on their menus.
If the chef is using different cooking techniques to aid healthy eating, such as steaming and
poaching food, then this should be stated on the menu and will add to the appeal of the
restaurants image. This could also be a good advertising factor to promote the business.
Healthy eating dishes will contain different ingredients and may be more expensive to prepare.
Organic Food
Recent research suggests that concerns about healthy eating and food safety have helped to
see sales of organic food reach £1 billion. Sales have apparently nearly doubled in the UK in
the last five years.
Fruit and vegetables is the most popular organic produce, but sales of organic meat and poultry
have also increased.
Despite the fact that organic products account for little more than 1% of overall food and drink
sales, there is no doubt that these products have joined the mainstream.
Organic food items are usually more expensive than non-organic produce.
In order to legally produce or serve food, which is described as organic farmers, manufacturer
and restaurant must be registered with one of the UK's certification organisations.
Each of these organisations have a logo which will be shown on the menu which is intended to
act as a guarantee that the ingredients are wholly organic.
The organisations are:

United Kingdom Register of Organic Food Standards

Soil Association Certification

Organic Food Federation

Organic Farmers and Growers

Bio-Dynamic Agricultural Association

Scottish Organic Association.
Information sources suggest that there are many restaurants that use a proportion of organic
produce in their kitchens but without certification, as they do not operate a 100% organic menu.
Specialist Restaurants
Specialised restaurants tend to concentrate on a particular type of food such as fish or steaks.
Generally speaking these restaurants are more cost effective than other restaurants that offer a
wider choice and with variable menus.
Fish Restaurants
Specialist fish restaurants do not include fish and chip shops.
Specialist fish restaurants are likely to be situated close to docks, fishing ports or good fresh fish
markets to enable them to have access to fresh fish.
The majority of good fish restaurants only cook fresh fish, which apart from the improved taste is
actually cheaper than frozen fish.
Most are likely to offer a 100% fish and crustacean menu.
The trends towards healthier eating habits is seeing a resurgence in the popularity of fish as
diners become more eager and willing to try different varieties of fish.
Menus now no longer contain a thousand and one variations on Dover sole, but now include
sea bass, eel, turbot and swordfish.
In restaurants, fish has always had a gourmet and upmarket image and salmon, Dover sole,
trout and crustaceans such as crab, lobster and prawns have always sold at premium prices. As
long as this image continues to be fostered, the progress of fish as a food for the populace will
be impeded.
Steak Restaurants
The vast majority of specialised steak restaurants are operated by multiples such as Chef and
Brewer, Schooner Inns, Angus Steak Houses, Beefeater Inns and so on and run in conjunction
with public houses and are often known as “Steak Houses”.
Menus are fairly standardised and provide for an all inclusive fixed price meal comprising
starter, main course, desert and coffee.
Vegetables such as chips and peas are usually frozen and steak portions are either ready to
serve frozen or vacuum packed portions.
The only food preparation involved on site is normally the cleaning and cutting of salad
vegetables.
The independents in this field may not be able to match the multiples on menu prices but
usually offer a better quality and more varied menu with fresh meats and vegetables being used
instead of frozen or convenience foods.
Independent traders may use a local supplier for their meat products, for example if the
restaurant is located in a rural area, meat may be obtained through a local farmer. This may
result in proprietors being able to supply top quality meat to the customer, while purchasing at a
competitive price from the farmer.
Stock Management
Stock ordering system
Stocktaking
Volume forecasting
Base stock
Bulk purchasing
Stock report
Stock rotation
Misappropriated Goods Inwards
Stock management is an important aspect of the efficiency and profitability of a business. The
following highlights areas that should be explored with the proprietor to establish the exact
methods used frequency of stock checks and who within the business is responsible for this.
Stock Ordering System
In order to manage food stock effectively the owner will need to know the popularity of stock
items.
To check how many times stock turns over in a given period, they proprietor will need to divide
the cost of sales by the value of stock at cost. The more frequent that stock turns over in a
period the more efficiently the business is being run, provided that stock does not run out.
Volume Forecasting
It is not always possible for the owner to pass on cost increases to the customer therefore cost
control is very important to the business. In order to ensure that costs are kept to a minimum
the owner will need to estimate the demand for a particular dish in order to eliminate over or
under ordering supplies.
Over-ordering will lead to wastage where fresh foods are concerned and under-ordering will
lead to customer dissatisfaction and ultimately loss of business.
The owner should base forecast volumes on sales in recent weeks and use personal
experience to allow for expected seasonal or other fluctuations.
Volume forecasting is particularly important where raw materials are perishable.
Bulk Purchasing
It should be recognised that seasonal variations in price can lead to the purchase of bulk
supplies when the price is favourable, with gaps resulting when the price is high. The nature of
the supplies and the type and extent of storage space available should also be considered.
Discounts may be given by some suppliers for bulk ordering, these may encourage owners to
hold larger stocks of food than required, providing they are not perishable items.
Whilst it may be appropriate to order larger quantities if discounts apply and if there is likely to
be a price increase on a particular product, cash control has to be considered. Many will
however still take advantage of unexpectedly favourable trading conditions.
Stock Rotation
Food items will have a “best used by” date or “sell by date” stamped on them by the supplier.
It is important that stock is rotated to avoid old stock being left unused resulting in wastage and
food placed in fridges will require daily rotation.
Stocktaking
Senior kitchen staff should keep an inventory of all food items purchased food on hand at the
start of the week together with a final stock at the end of the week.
Stocktaking can be very time consuming but it is an essential step towards maintaining
profitability.
Many will employ the services of a stocktaker that will make regular reviews and provide advice
on profit variances and pricing problems.
Stocktaking is usually carried out on a quarterly basis, but if there are extreme stock problems, it
may be necessary to take stock monthly.
No stock should be removed from the kitchen or storerooms during the stock count and if a food
delivery is received during the stock take, the stocktaker must be made aware of its arrival.
If any dishes are in the preparation stage when a stocktake is in progress, the ingredients must
be taken into consideration by the stocktaker.
Base Stocks
The catering sector has a need for minor fixed assets including cutlery, tablecloths and napkins.
By their nature these items need to be replaced as they are subject to vigorous use.
It would therefore be impractical to record each item separately as fixed asset or to apply a
depreciation policy to them. A base stock can be established, which represents the likely level
of requirements at any one point in time.
Consider treatment of Plant and Machinery under CA20000 onwards.
Renewal Basis CA29220
Short Life Assets CA23600 onwards.
Stock Report
The Stock Report provides an evaluation of:

cost and retail value of food sales in any period

gross profit achieved on each stock item and total business done

stock value held for each stock line

number of day’s stock held, based on the correct period’s sales.
Allowance will have to be considered for free staff food and for wasted food and customer
complaints where an incorrect dish has been prepared.
Misappropriated Goods Inwards
The person responsible for goods inwards should check all food supplies when they are
delivered against the delivery note and at a later stage against the invoice. Discrepancies
should be taken up with the supplier at the time of delivery and a strict check on all stock should
be kept to ensure that stock could not be misappropriated.
Suppliers
Suppliers
There are many different sources for catering suppliers including:

cash and carry outlets

specialist chilled and frozen food suppliers

fresh vegetable and fish markets

local butchers and bakers

local farmers
Deliveries tend to be weekly for non-perishable goods, and twice weekly for perishable ones.
Fresh produce such as bread, milk, diary products, fish and meat will be purchased daily.
In addition to food items, there will also be the purchase of alcoholic and soft drinks, which may
be from the following sources:

major breweries

cash and carry outlets

local off licenses

wine merchants and importers
Suppliers Terms
The terms obtained from suppliers can vary considerably.
Wholesalers may offer bulk purchase discounts of around 10% and up to 30 days credit plus
some money off promotions.
Most cash and carry outlets will be cash or cheque only but some may offer 7 day’s credit and
volume discounts/retrospective rebates of 1.5% - 2.75%.
Local retailers are likely to offer discounts of between 5% and 35% and 7 to 30 day’s credit.
Local off licenses and wine merchants may offer trade discounts of up to 10% for volume and
between 7 and 45 days credit.
Brewery payments are usually by direct debit within 3 to 4 days of delivery.
Token Payments
Some suppliers issue vouchers when goods such as rice are purchased, these can then be
redeemed for supplies at a later date.
For example 2 tokens may be given for every sack of rice purchased and when 10 tokens have
been collected they can be exchanged for a free sack of rice.
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
This area of guidance had been withheld because disclosure would prejudice
the assessment or collection of taxes/duties or assist tax/duty avoidance or
evasion.
Premises and Running Costs
Premises
Staffing
Equipment
Running costs
Cash flow
Premises
The initial cost to any business is the acquisition of premises, which will vary according to
location, size and whether they are rented, freehold or leasehold.
The location of a restaurant/takeaway is paramount as a crowd will attract a crowd and
subsequently increase business.
Historically city centre high streets have been considered as the prime sites and commanded a
high premium/rent. However, those situated close to cinemas and theatres on the outskirts of
towns are likely to achieve high evening turnover with higher food pricing to compensate for
high rental costs.
Example: In central London an 80-seater restaurant, would cost around £1million, while a
restaurant on a suburban high street should cost between £70,000 and £150,000.
Restaurant premises will usually include a catering kitchen with a food preparation area, store
rooms with frozen storage facilities, a main dining area, toilet and possibly a staff rest area, a
bar and seating area and underground wine cellars in some larger restaurants.
Those situated in rural areas will rely on their reputation to build customer loyalty and if they are
situated in sparsely populated local beauty spots seasonal trade may govern them.
If a business is acquired on lease terms, it will be a totally binding contract for the duration of
the lease and will normally contain onerous clauses concerning responsibilities and liabilities.
Refurbishment of the premises is likely to be a major cost particularly if structural alterations are
required such as adding rooms or making changes to the property in order to comply with Fire
and Health and Safety regulations.
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
Equipment
There are some basic costs that will apply to almost any restaurant, including tables, chairs,
cutlery and crockery, kitchen and cooking equipment including ovens, fridges, freezers,
dishwashers and storage unit and toilet facilities.
Kitchen equipment in a large restaurant is likely to cost around £5,000 and dining room furniture
a further £5,000, obviously these figures will vary according to size of restaurant.
Fresh vegetable preparation can be a costly and time-consuming process. There is now
dedicated food processing equipment on the market, capable of handing almost every type of
fruit and vegetable and able to meet varying cutting requirements. Average outputs can range
from around 10 lbs. per minute to 2.5 tons per hour.
Refrigeration systems need to be digitally controlled and both mechanical and electrical
ventilation systems are compulsory.
You would also expect to find invoices for stationery, advertising, signs, licences and printing of
menus plus computer software packages for accounting systems.
Linen such as table clothes and napkins will be required and you may find invoices relating to
laundry costs for these items.
A vehicle will usually be required for cash and carry buying and you would expect to find fuel
receipts and vehicle maintenance expenditure. If takeaway food is being transported to
customer’s homes a van may also be purchased specifically for this purpose.
If the premises have multi-story lifts for disabled diners and for taking food and plates between
floors, they will cost in the region of £8000 to £10,000 to have installed.
The cost for security measure will be in the region of £2,000 depending on devices installed.
Separate hot and cold areas and cooked and raw areas in kitchens and non-porous surfaces
will be required to meet regulations and will inflate start up costs.
The alternative to purchasing new equipment is lease purchasing, rental or buying second hand
items. Proprietors may also choose to purchase a bulk lot of equipment at auction at a
competitive price. Environmental Health Officers will however, insist on catering equipment
being of a certain standard.
Cashflow
Cashflow will be required; there is a relatively high risk associated with opening a new
restaurant, as they are very sensitive to the economy.
Staffing
Staff is one of the biggest fixed costs and restaurants that are open seven days a week will
require more than one chef.
Head chefs can these days command salaries of between £30,000 and £40,000 and staff
shortages in this field are critical. Head chefs should have 10 years’ experience, while their
more junior colleagues should have three to four years.
It is often items that the customer does not see in a restaurant that are the most expensive and
figures suggest that a potential average for initial start up costs may be in the region of
£150,000 for a large restaurant.
Running Costs
As with many different types of business, similar costs are incurred that are not generally
affected by the level of business carried out and regardless of how much or how little income is
generated, these costs will remain constant.
Fixed costs include:

rental on premises or mortgage/lease on property

business & water rates

utilities

insurance cover including public liability
Others:

cleaning and general maintenance

cleaning materials and laundry

furnishings and fixtures and fittings

equipment

consumables

administration

legal and professional costs

advertising - small Yellow Pages advertisements will cost from £500, full-page adverts
will be much more expensive.
Promotion, Advertising & Competition
Promotion
Internet Advertising
Promotional Events
Competition
Advertising
Promotion
Promotion may be in the following ways:

by displaying a well designed sign, which meets with local authority regulations

providing a well-maintained property to encourage passing trade

glossy price list for takeaways and menus for restaurants describing the food offered.
Promotional Events
The provision of food and drink by the proprietor at a promotional event is an allowable expense
and the adjustment should be made between cost of sales and below the line expenses to avoid
distorting the gross profit percent.
Advertising
Restaurants and takeaway details are likely to be found in advertisements in:

local newspapers

flyers detailing special 2 for 1 deals

“Good Food Guides”
In addition traders are likely to advertise in directories such as Thomson directory, Yellow
Pages and Up My Street.
Word of mouth is considered to be one of the best forms of advertising, but a good reputation
takes time to build.
Internet Advertising
The Internet has created a revolution for restaurant and takeaway marketing and is a relatively
cheap way to promote a business both domestically and overseas.
Websites often graphically show the layout of the establishment, detailing opening hours, a
representative menu selection with prices, and if booking is desirable.
Some have interactive sites where pictures can be seen of the inside of the restaurant and all
individual dining rooms.
Competition
This sector is extremely competitive.
Based on the number of restaurants registered for VAT, business failures are running at over
20% within their first two trading years.
Industry sources suggest that an average of only 1 in 20 restaurants survive for any length of
time, particularly in large cities and areas where competition is fierce.
When demand for dining out is strong, new outlets tend to proliferate, however, lack of demand
forces many restaurants to close through loss of business.
Even when demand is strong; business turnover in this sector is generally high, as new
businesses take customers away from the existing ones.
Established outlets will be a major competitor to a new restaurant, as word of mouth
recommendations should provide them with busy restaurants.
New restaurants can however capitalise on unique points of their menus that other local
competitors do not offer.
Independent restaurants may come under increasing pressure as major chains and wellestablished branded outlets continue to expand within the catering sector.
The independents also face competition from the following:

theme restaurant chains

'gastro pubs' and the licensed trade in general

ethnic restaurants

cafes and supermarket self service food areas

high quality home consumption meals
Food prices are vulnerable to price changes but fierce competition in the sector may mean that
price increases are often absorbed. Circumstances do however arise which leave no
alternative but to pass increased costs on to the customer. For example the effects of Foot and
Mouth during 2001 increased meat prices.
Customers
Restaurant and takeaway customers will be from all walks of life and from young children
through to senior diners.
However, a survey undertaken suggested that those most likely to eat out were high earners,
unmarried, or married without children. It also stated that young adults are likely to eat out at
least once every month.
An increasing number of consumers dine out now on a regular basis and regard it as a way of
life rather than as an occasional treat.
Some restaurants are currently providing facilities for customers with disabilities to enable them
to have easy access into and around the restaurant in wheelchairs. The modifications are also
useful for more senior clientele.
The large conglomerates that sell fast food such as burgers and fries influence children’s
choices of food and in turn impact on family choice of meals, therefore children and families are
increasingly using restaurants and takeaways.
The traditional 3 meals a day have been replaced by “grazers” or those who “eat on the move”
and restaurants providing convenience food will gain custom from these people.
Other customers will include retired people with a higher level of disposable income and leisure
time; they tend to eat out during the day as a leisure activity.
Those who cater for a variety of customers and gain a good reputation for their food are likely to
have continuously full booking diaries.
Customers terms
Restaurants and takeaways may offer their customers the following:

special offers, such as two meals for the price of one on selected dishes

set menus, which may be cheaper than ordering the same dishes a la carte

'eat all you can' deals at certain times of the week

a complimentary drink to customers spending over a set amount

student discounts of around 10%

takeaway meal discounts often between 10% and 25%
Business customers may be offered special prices and account facilities, with up to 30 days
credit and early settlement discounts.
Discounts or free dishes may also be given to friends of the proprietor and staff is often
provided with a free meal.
Cover charges or minimum orders may sometimes be imposed at busy times and many
restaurants impose a service charge.
Methods of Payment
Diners are likely to pay by credit card, cheque or cash, but credit card sales make up a
substantial percentage of sales throughout this sector.
Traditionally a high percentage of credit card sales were found in high quality restaurants, but in
recent years, the trend appears to suggest that credit card sales make up a substantial
percentage of sales throughout the restaurant sector.
However, credit card usage is still not so prevalent in takeaways and some takeaways do not
accept them at all.
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
Customers Records and Confidentiality
Proprietors of restaurants and takeaways may hold personal details relating to customer’s i.e.
name and address or telephone number.
If they maintain records of customer’s personal details electronically they are required to
register as a data user with the Information Commissioner. Further information can be found at
www.informationcommissioner.gov.uk
Legislation
Legislation of particular relevance to the restaurant sector includes:

Food Premises (Registration) Regulation 1991: requires all businesses connected
with the food industry to register with the local authority at least 28 days prior to trading

The 1995 Food Regulation: covers the preparation, storage and retail of food and the
specifications of the premises, fittings and equipment used, plus training requirements

Food Safety Act 1990: legislates on food safety and consumer protection in the food
sector. All food businesses must establish a system allowing their products to be traced
back to the supplier – see www.food.gov.uk/foodindustry/guidancenotes/

Regulations 1995 Temperature Control: requires that certain temperature controls
are observed and records maintained of storage temperatures and hygiene of food

Colours in Foods Regulations 1995: this specifies which colourings are permitted for
use, purity criteria and conditions of use including maximum levels permitted

Price Marking (Food and Drink) Services Order 2003: requires restaurants and
takeaways to display information relating to prices of food and drink. If up to 30 items of
food are available then prices for all must be displayed. If more than 30 items of food
are available, prices of at least 30 items must be displayed

Registration of Fish Buyers and Sellers and Designation of Fish Auction Sites
Regulations 2005: those who purchase more than 25kg of fish on any day direct from
fishermen must register as a fish buyer with the Fisheries Department. A purchase note
must be completed for each purchase made and a copy sent to the local fisheries office
within 48 hours. If fish is only bought from a designated fish auction site, there is no
need to register as a buyer or complete purchase notes

Weights and Measures Act 1985: alcoholic drinks must be sold in specified measures.
In addition:

If tables are placed on the pavement outside the restaurant, clearance will have to be
obtained from the local Highways Department

The National Minimum Wage Act 1998 had a significant impact on this sector, which
relies heavily on a plentiful supply of unskilled and semi-skilled low wage labour.
The Foods Standards Agency - current information on legislation relating to restaurants and the
preparation of food can be found at: www.food.gov.uk
Disposal of Catering Waste
Restaurants have certain obligations concerning the storage and disposal of food waste.
The Environmental Protection Act puts the responsibility on to the caterer for the discarding of
waste food, which must be disposed of by a reputable and licensed collector and must be taken
to a proper disposal site.
Proprietors are required to keep transfer notes of collections for a minimum of two years, and
must also keep tip receipts if they personally take refuse to the disposal site.
Records of the nature of the waste, quantities and the arrangements made for its disposal must
also be maintained for the waste regulation authorities.
Further legislative information can be found at:

The Office of Public Sector Information – www.opsi.gov.uk

The Scottish Executive – www.scotland.gov.uk

The National Assembly for Wales – www.wales.gov.uk

The \northern Ireland Executive – www.ni-executive.gov.uk
Proprietors must also comply with the requirements of general, employment and health
and safety legislation.
Licensing
Licensing Act 2003 – sale of alcohol
Restaurants selling alcohol prior to 2005 required an on-licence from the local licensing justice.
A new system of alcohol licensing in England and Wales took effect from November 2005.
Two licences are now required - a premises licence and a personal licence for the person who
supplies or authorises the supply of alcohol.
Responsibility for issuing licenses has now been passed to local authorities that will only award
a licence if certain standards are met.
The new legislation does not apply in Scotland, where a licence must be obtained from the local
licensing board.
Information relating to alcohol and public entertainment licensing can be found on the
Department for Culture, Media and Sport website: www.culture.gov.uk/alcohol.
Other licences required include:

where background music, live music, a juke box or Karaoke are provided, a licence
from the Performing Right Society (PRS) will be required

for public use of music recordings, a licence from Phonographic Performance Limited
(PPL) is required and for using music videos, a Video Performance Limited (VPL)
licence is required

if dancing, music events or live performances involving two or more performers are to
be held, a licence from the local authority is required. The previous system of separate
entertainment and alcohol licences has now been replaced by the single premises
licence, which is obtained from local authorities.
Gross Profit Rates
Gross profit rates will vary considerably depending on the product mix and the nature of the
business. However, in most cases they will be relatively high in order to take into account staff
wages and overheads and the possibility of a substantial amount of wastage.
The majority of income is normally divided broadly between food sales and drinks sales in most
licensed restaurants.
You would expect to see GPR’s in the region of 60% to 65%, while the more successful
businesses will achieve in excess of this.
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
A restaurant might aim for a consistent gross margin of 60% on all food with a 150% mark-up
rate, or they may choose to mark up different meals individually.
Wine will have varying gross profit rates often ranging between 40% and 60% with a mark up
rate of anywhere between 67% and 150% or alternatively bottles of wine may be marked up
individually and are likely to produce a higher GPR.
You would expect to see GPR’s in the region of 50% - 55% for a wine bar or other outlet with a
large volume of wet sales.
Main courses are likely to have a lower gross profit than a dessert or starter, in order that the
price of the main dish does not appear unreasonable to the diner.
A gross profit rate of 50% may be aimed at on main courses, but for a dessert, this may
increase to between 75% - 80%, which then overall will increase the gross profit rate.
The following factors may also have an impact on a restaurants gross profit rate:

lack of portion control

making poor purchasing decisions

introducing an 'eat as much as you like' promotion

selling a significant number of takeaway – price is less than restaurant prices

the product mix

giving discounts and offering special deals and complimentary drinks

staff meals and drinks.
Meals served in a restaurant may be created purely from raw ingredients or may be purchased
in part as ready prepared. It is more difficult to achieve a target gross profit rate when all the raw
ingredients are purchased individually as they are likely to be subject to price fluctuations and
potential availability restrictions.
Some may absorb a rise in purchase price of ingredients and food items rather than passing
these on to the customer; this will have the effect of suppressing the profit rate.
Consideration should be given to external factors affecting the gross profit rate of businesses.
For example the Foot and Mouth outbreak which began in February 2001 may have affected
restaurants in rural areas resulting in a decline in trade while others in cities may have seen an
increase in table reservations.
Effects on Profitability
Expansion
Trading patterns
Location & covers
Annual catering events
Fresh produce vs. Convenience Foods
Product mix
Portion control
Beverages
Wastage
Overview
The following gives an indication of factors, which will have varying effects on profitability:
Expansion
Factors effecting the expansion of the restaurant include:

levels of disposable income

economic trends

diners having a greater interest in food

affluence of the customer base

diners using restaurants on a more regular basis

restaurants portraying a smarter image

changes in the cooking styles and more varied menus

introduction of takeaways and home delivery

gaining good food awards

inclusion tourist board brochures and good food guides

new extended alcohol licensing laws see licensing.
Location and covers
The location of the restaurant/takeaway will be of prime importance, they are likely to be found
in suburban, rural and city centre positions and the size of each outlet will vary considerably.
As an example a small exclusive restaurant may only provide between 15 and 25 covers while
in comparison some London restaurants are able to accommodate between 600 and 700 diners
in their brasseries.
Fresh produce vs. Convenience Foods
Most restaurants and takeaways will use fresh produce and skilled staff to prepare the meals.
Locally grown food is now becoming a good selling point on restaurant menus, helping to
increase custom.
Where direct links have been formed between caterers and farmers, benefits may include
fresher produce and more control in the quality and specification of produce delivered and
cheaper prices. It is estimated that savings of up to 50% can be made by direct purchase.
For the farmer, it provides better returns; more scope for diversification and further awareness
of consumer trends.
In order to meet the demands of caterers, some farmers have turned to cultivation of more
exotic produce, such as mange tout, asparagus, shallots, courgettes, speciality lettuce and
garlic and herbs. Many of which were previously imported through wholesalers.
On the other hand some proprietors may use ready prepared frozen food and packaged and
tinned items, the benefits being: consistent quality, precise cost and portion control, reduced
kitchen costs, minimal wastage and quick serving times.
Most suppliers offer their products in single or multi portion trays, however careful stock control
and judgement on daily demand will be required to eliminate wastage.
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
Portion Control
Portion control plays a major factor in all types of catering. Staff may be tempted to give a larger
portion to a friend or they may not be sufficiently trained in portion control.
Meat and poultry are generally prepared to the size required and then frozen or retained in a
fridge in air-tight-vacuum packs. Vacuum packed meat is ideal for use in smaller restaurants
where it is difficult to estimate meat orders. These packs have an extended shelf life of 10 to 14
days if stored at between 1C and 3C.
In connection with the provision of a takeaway service - portion control is a fundamental part of
a restaurant pricing policy. The use of standard containers enables consistent and accurate
control over portion size.
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
Wastage
The amount of wastage will vary depending on the type of cuisine, method of preparation and
the skills of the chef.
Wastage at some level is unavoidable and will no doubt be quoted by the proprietor as a prime
reason for low margins.
It is important to differentiate between wastage that arises during preparation and that which is
the result of unsold food that has been prepared.
It should be noted that where the majority of ingredients are pre-packed there should be little or
no wastage.
Whilst it is not possible to generalise regarding typical or average rates the following factors
should be borne in mind when looking at particular cases:

use of frozen or chilled portion controlled products, cooked to order resulting in little or
no waste. Particularly applicable to fast food outlets

experience of the proprietor

regular sales patterns over a long period should enable the owner to control stock and
meal preparation efficiently
Losses do occur and general pilferage of food by staff should be taken into consideration, for
example staff may often consider it to be their entitlement to pilfer drinks and even raw materials
as compensation for the low levels of wages paid by the proprietor. They may also give friends
and family free or cheap meals.
General causes of loss and wastage include:

over estimating demand and over ordering perishable items

poor stock rotation resulting in out of date food

poor portion control

incorrect temperature controls in fridge’s resulting in wastage

poor storage of raw meat produce.
In licensed restaurants there may be wastage on “wet stock” from spillage and pipe cleaning if
draught beers and lager are sold.
Restaurants that offer a takeaway service may suffer wastage when orders are placed over the
telephone and then not collected and therefore not paid for.
Wastage may also occur if a buffet is booked and food is ordered from suppliers on a nonreturnable basis and the buffet is then cancelled.
Some restaurants have now adopted a “no show” charge of up to £15 per head.
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
Trading patterns
There are a number of considerations that should be taken into account when looking at trading
patterns of a restaurant or takeaway, which may include:

Christmas is a very busy time when sales are usually boosted by parties and Christmas
Day, Boxing Day and New Years Eve meals are much more highly priced

the quietest period for many takeaways and restaurants is January and February when
customer expenditure on non-essential is low and students return to college/university

conversely restaurants located in college towns and cities may suffer a decline in
business during the summer months, when the student population is absent

food offers and promotions will be offered in January and February to boost sales

changes may occur weekly in business or city centre restaurants

trade may decline at the end of each month when customers are forced to economise

you would expect to see an increase in sales during Easter and Bank holidays. Other
busy times may include St. Valentine's Day, Mothering Sunday and Fathers' Day,
additional menus may be served on these days to reflect the occasions

fluctuations may occur according to climatic seasons in seaside, tourist and resort
restaurants and some restaurants in these areas may close in the winter months

pavement dining may boost turnover during summer months

this sector will be busiest on Friday, Saturday and Sundays, but slow or closed on
Mondays. Some will offer speciality menus served at quiet times

lunchtime trade is often light but proprietors will take this opportunity to prepare food
for the evening trade.
Annual catering events
There are substantial profits to be made on one-day catering events and takings should be
increased on these dates for both drinks and food sales.
Extra casual staff may be drafted in to assist with food preparation and service. For the above
events and higher rates of pay for staff working after midnight (into New Years Day) may apply.
Examples of Important events that may have an effect on the catering industry can be found at
Appendix 1
Many restaurants will run special events pertinent to their locale. Local knowledge of events or
the review of local newspapers may prove useful in establishing what activities are taking place
and the potential effect on local restaurants.
You would expect to see an increase in sales during the period of promotion and possibly in the
ensuing months reflected in the business records.
Product Mix
The average restaurant has two primary sources of income – food sales and wet sales. They
should be clearly identifiable and accounted for on a separate basis.
The product mix will depend on the type of food and drink for sale, which in turn will be
influenced, by the type of restaurant, its location and customer base.
Variations in product mix will obviously effect the overall gross profit rate achieved and the
location and customer profile may determine the amount by which food and drink are marked
up.
Some may have extensive wine lists designed to suit the particular restaurant and a choice of
champagnes may also be available.
A proportion of turnover may be accounted for by service charges and a small amount of
additional income might be derived from nominal ‘corkage’ charges made if the outlet does not
hold a licence to serve alcohol.
Services charges also require consideration, as do any sales of cigarettes that are not in a
vending machine.
Some restaurants add a charge (often £1) to the final bill if jugs of iced water are served at the
table. This is to discourage customers from asking for water instead of purchasing a drink.
However, most restaurants will offer bottled mineral water at an inflated price.
Beverages
Beverages should also be considered, as coffee is an increasingly important part of a
restaurants sales mix.
Coffee was traditionally a morning drink but has now become an all-day and all occasion
beverage.
Latte, Espresso and Cappuccino appeal to the UK’s emerging coffee culture, however filter
coffee is still the most popular.
Some restaurants will serve coffee in individual cafetieres, this way coffee can be made fresh to
order and individuality in choice of blend can be offered to customers. This type of service is
likely to be more expensive than filter coffee.
In addition some restaurants may offer tea, particularly those situated in city centres where
shopper provide the main trade base.
The cost of the raw material for tea is generally less than half that of coffee and therefore profits
should be exceedingly high.
Overview
The average spend at lunchtime on both food and wet sales is typically much lower than at
dinner and combining them all together will make your information less meaningful. A valuable
exercise will therefore be to compare figures for various lunchtimes and various evening.
A breakdown of sales in a restaurant by mix of menu items will provide information on the
popularity of individual dishes.
With any business economic exercise you will needs to be aware that each product may have
its own particular margin. Certain broad categories can however be useful in providing an
indication of the likely level of pre-waste margin.
The usual method of establishing product mix figures is via purchase invoice analysis but as
several basic ingredients may have several possible “uses” a degree of interpretation may be
required.
This area of guidance had been withheld because disclosure would prejudice
the assessment or collection of taxes/duties or assist tax/duty avoidance or
evasion.
Advertising
Advertising literature and directories are also vital sources of information. Catering outlets are
likely to advertise in the following ways and this information may assist in providing an indication
of their trading activities:

Yellow Pages may reveal locally based restaurants and takeaways - review
www.yell.com

Upmystreet - www.upmystreet.co.uk can also be reviewed for specific local information

advertisements and articles in local newspapers are also a useful source
An ever-growing source of information is the Internet, where advertisements often graphically
show the layout of the establishment, detailing opening hours, a representative menu selection
with prices, and if booking is desirable. Internet searches for this type of information can be
worthwhile for project work, as well as providing valuable information in specific cases for the
enquiry officer.
Various web sites exist which promote takeaway food services, it may be worth checking if your
business under review subscribes to any sites which provides the service for potential
customers to order and have food delivered on line.
Directories
Other directories, which can provide useful examples, include:
My Cartel UK Business Directory can be accessed at http://dir.mycartel.co.uk/Food_and_Drink/.
By selecting the “restaurant” section a drop down list of all types of restaurants will appear.
Simply make your selection from the list and these are then broken down into areas. When an
area has been chosen a list of businesses with names and addresses will appear.
Other sites can be used to locate businesses specific to your area, i.e.
Nottingham restaurants can be located in the following directory:

http://www.city-visitor.com/nottingham/restaurants.html

http://www.touchnottingham.com/business/directory/catId/2578
Such sites as www.thomweb.co.uk and www.Yell.com should also be reviewed at local level.
Own websites
Many establishments now have their own websites and these can provide useful insights. For
example a review of entries on the website of the Edinburgh Restaurateur Association www.edinburghrestaurant.co.uk, lists a number of restaurants, accessing this information
provides:

opening hours

range of prices

a small write up detailing specialities

whether it is recommended to book tables in advance
Some restaurants operate a shift system, which limits diners to the number of hours for example
to book a table a diner will be given the option of 7.15pm or 9.15pm, limiting the 7.15pm diners
to two hours. The aim is to maximise the number of covers served and not have tables stood
empty for say a 7.30pm or 8.00 p.m. booking which then may be occupied by the same diners
the whole evening.
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
Useful Information Sources
Useful information sources that should be reviewed include:

The Good Food Guide 2005

“Which” Consumer Guide

The Good Curry Restaurant Guide

Egon Ronay Guide – which lists the top 10 Egon Ronay starred restaurants (1* to 3*)
Restaurants that achieve acclaim for the highest quality food through inclusion in food guides
such as Egon Ronay or by the award of Michelin stars to the chef are at the top end of the
market in terms of both quality and price.
British Companies Website
The British Companies Website list names and addresses of food and drink Associations and
Federations. On entering their Website simply select the “Food & Drink” section at
www.britishcompanies.co.uk/food.
Trade Magazines & Journals
The following provides a list of useful catering magazines:

Caterer & Hotelkeeper - weekly trade journal

Fish & Chips and Fast Food - a monthly journal

Fish Friers' Review - monthly trade journal

Indian Food and Drink - monthly consumer magazine

Tandoori Magazine - monthly trade journal.
Useful addresses
Food and Drinks Federation, 6 Catherine Street, London WC2B 5JJ
Food Standards Agency, Aviation House, 125 Kingsway, London WC2B 6NH
Scottish Food and Drink Federation, 4a Torphichen Street, Edinburgh, Midlothian EH3 8JQ
Restaurant Association, Queen's House, 55-56 Lincoln's Inn Fields, London WC2A 3BH
Chinese Food Traders Association, C/o Hoo Hing House, Eastway, Hackney, London E9
Chinese Chamber of Commerce (UK), 19 Frith Street, London WC2
Confederation of Catering Management, 118-120 Great Titchfield Street, London W1W 6SS
Curry Club, PO Box 7, Haslemere, Surrey GU27 1EP
Guild of Bangladeshi Restaurateurs, Bourne House, Horsell Park, Woking, Surrey GU21 4LY
Institute of Food Science and Technology, 5 Cambridge Court, 210 Shepherds Bush Road,
London W6 7NJ
This area of guidance had been withheld because disclosure would prejudice
the assessment or collection of taxes/duties or assist tax/duty avoidance or
evasion.
Restaurant Observations
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
Trading times
All eating outlets may serve different meals at different times of the day and some restaurants
will only open in the evenings.
Obtaining details of the specific trading times for the business under enquiry is essential.
The evening opening hours of both takeaways and restaurants are usually from 5.00pm 5.30pm to 11.00 - 12 midnight, although these may vary with the introduction of the new
licensing laws. See the Licensing section of this TIP.
Some restaurants will open at lunchtime, particularly if they are situated in towns and cities, as
they will benefit from trade from office staff and shoppers. Even if they are not very busy the
chef will prepare meals for the evening during this period.
Most will close one day each week which is often Monday, however on a Bank Holiday it is very
likely that the business will open in anticipation of a high turnover in trade. It is then likely that
they will close on the following day.
Flexible restaurants are likely to offer a range of snacks and refreshments throughout the day
and then serve substantial meals in the evening.
Records
Section 12B of the Taxes Management Act 1970 requires traders to keep business records and
supporting documents for a period of six years. "Supporting documents" includes accounts,
books, deeds, contracts, vouchers and receipts.
There is a range of formal records available to assist in assessing the accuracy of the SA
Return when the enquiry has been opened including:

purchase invoices/suppliers' account statements

details of suppliers' accounts settled by standing order

daily record of takings

meal tickets/meal pads

wages records

stock control records and specialised ordering systems

corporate account customers, details of terms given and payments outstanding

credit card slips

end of night reports from credit card machines

details of gratuities or 'tips' received

advance bookings; this should include a record of cancellations and “no shows”

till rolls

Expense vouchers - i.e. motor expenses, capital expenditure

bookings diaries

compare takeaway containers purchased with the declared amount of takeaway meals

consider whether peak periods are reflected in the records
For VAT purposes, traders are requested that records be retained in a particular manner for
example:

credit card slips are retained (compulsory) and attached or cross-referenced

meal bills are pre-numbered in a unique sequential series

end of night reports from credit card machines are retained and cross-referenced to the
appropriate batch of meal bills

meal bills show the date, table number and number of diners.
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
Food purchasing records
Since the introduction of the EU General Food Law in January 2005 all businesses in the food
and drink industry are required to maintain records for 5 years of their food and drink supplies.
They must include details of the supplier's name and address, the products and the date of
delivery.
Proprietors who purchase fish direct from fishing boats require a licence and must keep certain
records under the 2004 “Registration of Fish Buyers and Fish Sellers Regulation”. Details to be
recorded include the date and location of each transaction, the quantity of each species
purchased, the price paid and the name, address and registration number of the seller. Records
must be kept until the end of the second calendar year following the date of purchase.
Disposal of catering waste records
Transfer notes for collections of catering waste for disposal must be kept for a minimum of two
years and the owner must keep tip receipts if they personally take refuse to the disposal site.
Records of the nature of the waste, quantities and the arrangements made for its disposal must
also be maintained for the waste regulation authorities. .
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
Meals: Drinks Ratios
A review of all restaurant meal slips for a sample period enables a calculation of the meals to
drinks ratio to be made.
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
Consideration should be given to any special offers, for example, a free bottle of wine for a table
of 4 customers or free drinks to regular customers. Claims that large amounts have been given
away should be treated with caution.
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
This area of guidance had been withheld because disclosure would prejudice
the assessment or collection of taxes/duties or assist tax/duty avoidance or
evasion.
This area of guidance had been withheld because disclosure would prejudice
the assessment or collection of taxes/duties or assist tax/duty avoidance or
evasion.
E-Compliance Issues
Employment
Employees Uniform
P46’s
Staff Meals
Part time & Casual Employees
Taxi’s
Employees Wages
Employment
The amount of staff required will depend on the size of the restaurant/takeaway and the
turnover, however even small outlets are likely to employ a number of staff due to the labour
intensive nature of the trade.
Restaurants employ a wide range of people, from those with no formal training who earn
minimum wages to highly skilled professionals who can more or less dictate their own salary.
As staff will mainly be on minimum wages there is often a high incidence of part-time and
temporary workers employed at seasonal peaks, such as during the summer months and
around the Christmas and New Year period.
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
P46’S
It will be important to establish that the correct PAYE procedures are being used – is the P46
procedure correctly followed for part time staff, family members or casual staff.
Examination of P46’s is detailed in the Employer Compliance Handbook
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
Part Time & Casual Employees
The employment of casual staff is common due to the highs and lows of demand. In the case of
small restaurants, payments to “staff” may often mean nothing more than wages to a member of
the family.
Proprietors who only pay the minimum wage are likely to have a high turnover of staff.
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
Employees Wages
Salaries and wages are invariably the largest single item of expenditure incurred in this sector.
The Annual Survey of Hours and Earnings 2004 quotes average gross weekly wages as:

Chefs - £296.10

Waiting staff - £227

Bar staff - £226.80
These are UK averages, which will be subject to regional variations.
Details for previous years can be found at www.statistics.gov.uk.
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
Employees Uniforms
Corporate uniform or protective clothing may be provided.
Refer to SE32475 – Other expenses: clothing – uniforms for information relating to 2002/03 and
earlier years.
Refer to EIM32465 – Other expenses: clothing: specialist clothing relating to 2003/04 onwards.
Staff meals
Meals for staff, as a general rule providing staff with meals at their normal place of work can
result in a taxable benefit. However Extra Statutory Concession A74 exists which provides
some measure of exemption. Any cash allowances or reimbursements made to staff in respect
of meals at their normal workplace should be treated as pay and so subject to IT and NIC.
Taxi’s
In a service sector shift work is prevalent and the owner may provide staff taxi’s. What is often
overlooked is that unless certain conditions are met, the cost to the employer is generally
treated under present law as a benefit to the employee.
These conditions are:

the employee is occasionally required to work late but those occasions are neither
regular nor frequent

at the time of going home, either public transport between the employee’s place of work
and home has ceased or that it would not be “reasonable” in the circumstances for the
employer to expect the employee to use it
If these conditions are met, the employee will not be taxed on the cost of the taxi or transport.

a requirement to work late means working until 9pm or later

late working is regarded as frequent if it occurs on more than 60 occasions per tax year.

regular refers to a predictable pattern- i.e. every Friday night
It should be noted that although the cost of paying for a taxi to take an employee home from
work at 3am, if the above conditions are met, is not a taxable benefit, the cost of paying for a
taxi to bring another employee to work at 3am is.
Tips, Gratuities and Service Charges
Tips, gratuities and service charges are part and parcel of the restaurant trade.
Payments of this nature generally count as pay and are taxable income.

where tips are collected from the tables and retained by the individual, there is no
requirement for the proprietor to operate PAYE, the onus is on the individual employee
to declare the tip

if tips are collected into a central pool or 'tronc' before being shared out the distributor or
'troncmaster' will be required to operate PAYE

when tips and service charges are collected by the employer and then distributed, they
should be aggregated with the employees' pay and taxed through the payroll
Information relating to top restaurants in London suggests that service charges range between
12% - 15%. As more fashionable and exclusive restaurants are now operating in major cities
outside of London it is likely that similar charges will apply elsewhere.
Although many bills are now paid by credit card, the service charge, where a tronc system
exists, will still be passed on to the troncmaster. The employer may actually make an
administration charge for processing the credit card payment, for example will retain 1.5% to 2%
of the service charge as the fee and pass the balance to the troncmaster, and this may be made
by cash, cheque, or even BACS.
In addition to a service charge, there may well be a cash tip left by the customer. Many tourists,
especially American and Japanese are known for leaving cash tips, and this also applies to a
restaurant that has a business clientele.
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
Chip & PIN
Chip and PIN, the payment system introduced to eliminate plastic card fraud has had an
adverse affect on waiting staff in restaurants receiving Tips from customers.
The old signature system provides diners with a blank credit card slip to add a gratuity to at their
leisure if they had received good service from waiting staff.
The new hand held Chip and PIN consoles force customers to make an instant decision in front
of the waiting staff and on most occasions tips are not added.
Information sources suggest that tips have fallen by as much as 15% since Chip and PIN was
introduced.
The Tronc System
Tronc originally meant “poor box”.
The Tronc master operates the Tronc system and this should be independent of the
management team of the hotel restaurant. However this is rarely the case, and it is essential
that the relationship between the two be established.
The system will include front of house staff and from Commis and Sous Chefs upward.
The troncmaster will usually have a bank account and payments to staff maybe made by cash
or cheque from this account.
The Tronc Master should maintain records detailing charges and division of payments.
The division of tips and service charges is usually based upon a points system, for example:
10 points for the top waiter, down to 1 point for the newest waiter -then gradually increasing.
The points system may vary from one hotel to another.
Top staff can demand a higher wage level; not all of this will come from the payroll, but will be
paid in part from the Tronc.
Staff will receive two pay cheques, one from the payroll, the second, being their allocation of the
service charge.
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
This area of guidance had been withheld because disclosure would prejudice
the assessment or collection of taxes/duties or assist tax/duty avoidance or
evasion.
Part 2 – Types of Restaurants
The following information provides an insight into the various types of restaurants and
takeaways and their trading practices in the UK.
There is essentially very little difference between these and other general restaurants. For
example like any other catering business, they are subject to the same considerations such as
costings, pricing, profit margins and general overheads.
Many working practices will be similar to those in Part 1 of this TIP but the following information
is specific to each separate type of restaurant or takeaway.
Chinese Restaurants & Takeaways
French Restaurants
Indian Restaurants & Takeaways
Spanish Restaurants – Tapas Bars
Thai Restaurants
African/Caribbean Restaurants
Italian Restaurants
Japanese Restaurants
Greek Restaurants
There will of course be other types of restaurant such as Greek, Turkish, Malaysian, Indonesian
and Portuguese but as there are a lesser number of these restaurants in the UK they have not
been covered specifically in this TIP.
Chinese Restaurants and Takeaways
Introduction
The enormity of China's geography is reflected through the individual types and style of Chinese
food experienced throughout the country. For example:
1. The northern plains including Beijing
Beijing dishes are also known as “mandarin cuisine” and many foods from this region are
wheat-based rather than rice-based. Dishes consist of a variety of dumplings, baked and
steamed bread and buns and noodles.
Sometimes, dumplings and buns are filled with meat and baked or fried.
Mandarin style meals usually include soups, vegetable dishes, fish and tofu and the food is mild
in taste. These dishes are often slightly oily and both vinegar and garlic are common
ingredients. The method of cooking is usually by braising, stewing and frying.
2. The south which is famous for Cantonese dishes
Cantonese food is colourful, less spicy with delicate flavouring and is usually stir-fried to
preserve the texture and flavour.
Dim Sum or “tea lunch” which are tasty little dumplings and pastries filled with vegetables and
meats are served at Cantonese restaurants at lunchtime as entrees, often in bamboo or
aluminium steamers and trays.
The majority of restaurants and takeaways in the UK concentrate on Cantonese style cuisine.
3. Szechwan and Hunan Provinces
Food from the Szechwan (or Four Rivers) basin is characteristic south-western Chinese food.
Garlic and chillies are the main ingredients and consequently the food is very spicy and very
tasty. When the dishes are prepared in a traditional manner, many are very hot.
Sichuan food is distinguished by its hot and peppery taste, while dished from Hunan province
are richer and oily and may be either spicy and hot or sweet and sour. Pork, Chicken and fish
are all used in these dishes.
Trends
The majority of Chinese catering operations are single outlet, privately owned and many are
family run.
The sector has now polarised with modern, innovative outlets at one end of the market and
traditional restaurants and takeaways that are still in the majority at the other.
Growth has occurred as a result of increased disposable income, a rise in the number of meals
eaten out and an increase in demand for convenience foods.
Turnover by Chinese takeaways has experienced a steady increase but growth in this sector
has not kept pace with the major chains in the fast food industry.
Information sources suggest that there are around 7,000 Chinese restaurants and 16,000
takeaways in the UK, with restaurants turning over around £1.7b each year. If takeaways are
also taken in to consideration then the figure will move to around £3b.
Many Chinese restaurants are in the upper end of the mid-spend catering market, while
takeaways tend to be comparatively lower, offering low-priced meals in basic surroundings.
Low or static prices and an increase in people making home cooked stir-fry and similar Chinese
meals have affected Chinese takeaways. Takeaways have traditionally attracted a substantial
amount of late night custom, especially where in the vicinity of pubs, however this will be
affected where there are any changes or decline in the pub trade in that area. Chinese
restaurants have been affected by competition from other types of catering operation,
consumers favouring less formal meals and from market saturation.
External factors have also had an impact for example one Chinese Association estimates that
its members' turnover typically declined by between 20% and 40% during the Foot and Mouth
disease outbreak in the UK in 2001, primarily due to a sharp decline in tourism.
The sector also suffered during 2004 as a result of labour shortages due to restrictions relating
to the employment of unauthorised overseas workers. Tighter immigration controls were
introduced in the UK, together with tougher penalties for employers who employed illegal
immigrant workers without checking their documentation.
Publicised cases include a proprietor who employed unauthorised East Asian workers and was
plunged into crisis as he had to dismiss unauthorised staff and many employees decided to
resign.
Anecdotal information suggests that some outlets lost around 70% of their staff.
Although Cantonese cuisine has traditionally dominated the UK Chinese catering industry
recent reports suggest that many chefs are now changing their menus to reflect the following:

the introduction of ‘fusion’ cooking

changing emphasis from traditional spicy cooking towards more subtle intricate dishes

increasing specialisation in vegetarian cooking

cuisine from different regions of China such as Huanese and Fujianese.
Cuisine
The concept of Chinese food has evolved from the Chinese philosophy of the two opposing
forces in life, the Yin and the Yang. Yin is cold and negative and represented by the moon and
is a female force. Yang is hot, positive and aggressive represented by the sun and is male.
Foods are considered to contain properties of both Yin and Yang, for example red meats are
Yang food and fish is Yin. The objective is to have a harmonious balance between these two
forces and thus ensure good health.
Five basic flavours are apparent in Chinese gastronomy, sweet, sour, bitter, spicy-hot and salty.
These flavours are said to represent the five natural elements which are metal, wood, water, fire
and earth and again a balance of these flavours is required.
Some Chinese outlets may specialise in the cuisine of a particular region and to meet changing
consumer preferences some restaurants will combine Far Eastern cooking with Western or
Mexican cuisine.
Many restaurants in the UK are Cantonese and specialise in authentic Chinese dishes.
There is however a prolific number of restaurants run mainly by expatriates of Hong Kong with a
style of Chinese food entrenched in the British tradition.
Dishes prepared are by and large variations or derivatives of authentic Chinese food and dishes
such as chop suey and chow mein, both American in origin, play a substantial role in their
menus.
Cantonese
Canton duck is one of the many Cha Shao or barbecue dishes and is almost as famous as
Peking duck. With Cha Shao dishes the meat (usually pork strips) is marinated for a few hours
in a sauce of soya, wine, oyster sauce, spices and sugar and then barbecued.
In the case of Canton duck, a mixture of boiling water, red colouring, honey and vinegar is
poured over and it is then left to hang for around 6-8 hours and then barbecued.
Other meats used in Canton cooking are chicken and beef as well as sea-foods such as
lobsters, prawns, crab and squid, served deep-fried, stir-fired or stir-braised. Fish may also be
steamed and served with a wine and ginger based sauce.
The light but savoury qualities typical of Cantonese dishes are achieved either by cooking meat
and fish together or serving/cooking meat with or in a fish flavoured sauce, such as oyster
sauce. On the same principle, shrimp and prawn shells are boiled up in chicken or meat stocks,
to form the basis of soups.
Light colours and delicate flavours typify Cantonese dishes. The clear stock based sauces are
often flavoured with ground ginger, wine and soya sauce and slightly thickened with cornflour.
Stir-frying or stir braising is the most common cooking methods with some meats and fish also
being poached or stewed.
Steamed noodles or rice is the staple accompaniment.
Pekinese
The international dish known as Peking duck is cooked usually hanging up in an oven. Before
cooking, the duck is marinated in a soya and honey sauce and basted in the sauce during
cooking. The duck is then usually cut into small pieces and served with a fruity hoisin sauce and
wheat pancakes.
Sauces are generally thicker and spicier than Cantonese.
The usual method of cooking is called Chiang Pa, which literally translated means stir-fried and
exploded. Small pieces of meat are quickly stir-fired and then drained. A sauce made from
soya, wine, water, sugar or honey and ginger is added to the pan and quickly reduced. Then the
meat is stirred in, coated with the sauce, and served. With a dish such as chicken in chilli sauce,
chilli powder and garlic will be added to the sauce to provide the heat.
Peking is also noted for Chiang Rou dishes. These are marinated cold meat dishes. The meat
pieces are rubbed with a mixture of soya, cane sugar and garlic, left to stand for a while and
then roasted slowly.
Noodles, steamed bread and rolls or pancakes are usual accompaniments to dishes
Chinese cuisine is based around beef, pork, prawns and chicken and duck dishes. There are
indications that poultry and fish dishes are generally more popular than pork and beef.
Extra side dishes, vegetables, dim sum and rice and sweet and sour or black bean sauce may
also be on the menu.
Special set meals for more than one person may also be available.
Starters may include chicken and sweet corn soup and a variety of hors-d’oeuvres.
Desserts such as lychees and banana fritters are served in restaurants and where a Chinese
buffet is offered for Sunday lunchtime, deserts may include a selection of fresh fruit, gateaux
and cream and a variety of ice creams.
In some cases a large party, particularly one made up by members of the local Chinese
community, might simply request a buffet or banquet style meal costing a certain amount per
head for a specified number of people.
Chinese New Year
Chinese New Year 2006 is the year of the “Dog” and festivities begin this year on 29th January
2006 and officially last fifteen days (in China), but in London for example they are scaled down
to four or five days.
Festivities include dragon, unicorn and lion dancing, as well as special firecracker performances
and Tai Chi demonstrations.
On New Years Eve it is tradition to keep all lights on the whole night and at midnight, the sky is
lit up with fireworks.
It's traditionally a time to visit family members and pay respect to elders. Very early on New
Years Day children greet their parents and receive presents of cash wrapped up in red paper
packages. Then the family greets their relatives and their neighbours and they exchange gifts.
It's a time for reconciliation - old grudges are easily cast off and the air is warm and friendly.
Going to temples to draw a fortune stick is also a traditional custom. Many Chinese people
believe their luck in the New Year will be revealed on the stick they draw.
Food
This cultural event is an opportunity to sample a variety of Chinese foods and delicacies.
One of the most popular courses is jiaozi - dumplings boiled in water. Jiaozi means "sleep
together and have sons," a good wish for a family. Alternatively tang yuan - dumpling made of
sweet rice rolled into balls and stuffed with either sweet or spicy fillings.
Vegetables, fish, poultry and meats are dried, smoked, pickled, or salted.
The dishes served are also significant to the very superstitious Chinese. Ingredients are
significant, not necessarily for their taste but for what they represent. Peaches represent
immortality; duck a harmonious marriage, prawns laughter and oranges wealth and prosperity.
Cold starters are followed by soup and a main course of meat or fish and as it is considered bad
luck to serve parts of an animal or fish - whole beasts are offered. Steamed fresh scallops with
garlic or black bean sauce, braised dried shrimps with pine nuts and vermicelli, roast crispy
suckling pig, or whole steamed sea bass are dishes, which fit the entire beast requirement.
Lobster is also often served.
Chickens are served with their feet and heads intact and noodles are served uncut to represent
long life.
The Festival of Lanterns is fifteen days later, an occasion for shows and folk dances; this
marks the end of the New Year.
It is at this time of the year that you would expect to see an increase in trade in a Chinese
restaurant, due to these celebrations by both the Chinese and non-Chinese community.
However, there is likely to be a fall in trade in general in the restaurant sector in January and
February.
The cost of a meal in a Chinese restaurant to celebrate their New Year is much higher than
normal and some restaurants will have a set menu especially for the occasion.
Working Practices
Chinese restaurants - often occupy high street and central locations in towns and cities, many
offer traditional surroundings and bar facilities will be provided if the restaurant is licensed.
Chinese takeaways - will be found in residential areas, suburban precincts and secondary
trading locations, as well as in more central areas. You would also expect to find them where an
established 'Chinatown' exists; many will be small and basic.
The interior of a takeaway will usually include a counter with a large menu glued to it, a till or an
electronic ordering system, canned drinks for sale and bottles of soya sauce and chopsticks.
See also chopstick section of this TIP.
Seats are often provided for customers, as well as newspapers, menus and a television.
Some Chinese restaurants will also offer a takeaway service even if they do not have a specific
takeaway section attached to their premises. Customers are usually given a specific time when
they should collect their takeaway if it has been ordered over the telephone and then the food is
prepared ready to meet that time.
Some Chinese takeaways will offer a free delivery service within a 1 or 2 mile radius of the
shop. If the delivery is outside this area a charge may be made.
Where the cost of a takeaway exceeds a certain level free prawn crackers may be given.
Equipment
Restaurant and takeaway may have the following fixtures and fittings:

multi-burner cooking range

hard topped tables and work surfaces

steamers, woks and deep fat fryers

commercial refrigerators and freezers.
Chopsticks
There are different styles of chopsticks; the Chinese varieties are blunt at the “eating end”, while
the Japanese ones have pointed tips.
There are also shorter length chopsticks for children’s use.
They can be made out of ivory, plastic, silver and jade, however the most popular ones used in
most restaurants are made of bamboo, wood or ivory.
Chinese food is prepared in order that it can be easily eaten with chopsticks.
Chopsticks are also used for cooking and are useful for serving noodles and for stir-frying.
You may find that Chopsticks are offered for sale in Chinese takeaways as an ancillary to food.
For price guidance, wooden chopsticks from a Chinese supermarket are likely to cost in the
region of £1.50 for 10 pairs. Even if these are then retailed at between 50p and 75p per set a
substantial profit can be gained. However, the amount of retail sales for both chopsticks and
small bottles of Soya sauce is likely to be small.
Stock & Suppliers
Proprietors of Chinese restaurants and takeaways are likely to purchase basic ingredients in
their 'raw' unprocessed state and carry out a considerable amount of their own food preparation.
Those situated close to local markets are likely to buy fresh fruit and vegetables and fish on a
daily basis from market traders. It is unlikely that receipts will be given for market purchases.
Many stock items are likely to be purchased periodically in bulk and stored for long periods with
much of the food being tinned, dry goods or frozen. You would therefore expect to see high
levels of stock, certainly in excess of £1,000.
The bulk of the foodstuffs are usually purchased from a small number of suppliers and invoices
may be difficult to decipher.
Some will purchase their goods from a Chinese Supermarket that deals only in Chinese food.
Catering equipment and items for resale such as plastic cutlery are usually purchased from
specialist suppliers.
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
Competition
Chinese proprietors may have been unable to increase their prices substantially due to strong
competition from various other types of eating outlets.
Takeaways that that have not been re-furbished or changed their types of dishes to suit
customer demand may also have experienced similar resistance to price increases, as the
number of outlets offering high quality, good value food has increased.
Outlets will also have to compete with supermarkets that sell a variety of Chinese dishes for
home consumption.
Customers
A 2004 survey indicated that 48.8% of adults visited Chinese takeaways during the preceding
three months, slightly more than the percentage that had visited a fish and chip shop.
Key take-away customers include students and other young adults.
Children are becoming increasingly acquainted with spicy ethnic foods; restaurants are able to
capitalise on this by targeting younger families.
More upmarket Chinese restaurants may attract couples, mixed groups and business people.
In areas where there is a large Chinese community, a popular restaurant may attract a
significant number of regular Chinese diners.
Chinese restaurants and takeaways may offer their customers the following:

set meals - various options including both main and side dishes, catering for between 2
and 8 people. Set meal prices are usually lower than the sum of their individual
constituents (if these were all ordered separately)

telephone ordering facilities for takeaway meals and some may offer home delivery

some may give a calendar to customers who purchase a meal during the Chinese New
Year – late January to early February

a complimentary drink may be offered when the bill exceeds a pre-set amount.
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
Wastage
In Chinese restaurants, the vast majority of ingredients are delivered pre-packed and so there
will be little if any wastage.
Meat and poultry are usually purchased whole or as a carcass, often in bulk, the meat is then
prepared to the size required and frozen if not used.
The main meat losses may come from the skin and ligament removal.
Examples of wastage that may be incurred are as follows:

chicken (meat removed from carcass and cooked) - weight loss 55% - 65%

fillet steak (individual steaks cut from a single fillet tail and trimmed) - up to 15%

topside beef (trimming and cutting) - around 25%

pork leg (trimming, boning, and cutting) - around 30% - pork loin may be around 15%

chips made from whole potatoes - weight loss can vary, but generally between 50% 55% - if frozen chips are used, wastage will be minimal
Some suppliers will provide the meat in a pre-cut form, in which case wastage will be minimal,
therefore it is worthwhile establishing how the chef purchases the raw product.
Portion control is totally rigid and dependent on the skill of the chef. The method of cooking and
the expertise of the chef should ensure that wastage is kept to a minimum.
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
Indian Restaurants & Takeaways
Introduction
Indian restaurants dominate the ethnic restaurant market mainly due to the fact that Indian
cuisine is officially the UK’s favourite food.
A guild indicates that there are around 9,800 Indian restaurants in the UK, with the trade worth
in the region of £3.2b.
The majority of ethnic restaurants are small, independent operations, however small regional
chains exist which may benefit from a heightened profile, purchasing benefits and centralised
advertising and marketing.
It is estimated that almost 50% of all UK curry restaurants remain down-market serving 'Indian
style' dishes at low prices. Many of these rely heavily on late night 'after pub' trade.
It may be that several restaurants within a particular area are linked through family ties. While
they are generally run as separate businesses, the individual outlets may co-operate with each
other on pricing and purchasing matters.
Trends
Indian restaurants have become a generic term for curry restaurants, which offer a variety of
types of cuisine from the Indian Sub-Continent.
The following provides an easy guide to effects that have had an impact on the sector:
2000 - according to a survey undertaken in 2000, 63% of curry restaurants turned over less
than £260,000 annually.
Indian and Bangladeshi proprietors made considerable efforts to establish their own respective
identities within the curry sector.
2001 - although growth diminished the average number of covers per outlet increased.
2002 - the market reached saturation point and there was a shortage of experienced trained
staff, in particular chefs, which resulted in some businesses resorting to 'headhunting'
established chefs from the Subcontinent.
2003 - saw an increase in new businesses, mainly upmarket outlets, enabling higher prices to
be charged.
The catering sector as a whole enjoyed fairly buoyant conditions as the economy saw modest
levels of growth and consumer spending on catering remained strong.
The government introduced the “Sector Based Scheme” as a special measure to help fill certain
lower skilled vacancies. The scheme enabled individuals who are sponsored by an UK
employer to enter the UK on a 12-month visa to work in a specific job.
2004 - there was a huge growth in the market for 'home ready meals' which are readily available
from supermarkets as microwaveable dishes or fresh from the deli counter.
According to ONS figures 80% of all VAT registered restaurants and takeaways turned over
less than £250,000 and 40% turned over less than £100,000.
In May 2004 tighter immigration controls were introduced in the UK, with tougher penalties for
employers who take on illegal immigrant workers and fail to check their documentation properly.
2005 – saw an increase in the number of businesses operating, mainly due to the assimilation
of "going for a curry" into mainstream British leisure culture.
Technicalities and falling quotas reduced the effectiveness of the “Sector Based Scheme” and
reports suggest that many curry restaurants could be forced to close due to staff shortages.
The New Licensing Act was introduced in November 2005 and will have an effect on the sector
for further details go to the Licensing section in Part 1 of this TIP.
2006 - The current trend towards cooking a curry at home also threatens restaurants' share of
the market. According to a survey 75% of people cook an Indian meal at least once per month.
Specialist spice and sauce manufacturers now target the home curry market, which is worth an
estimated £600 million plus annually.
While the top end of the market will continue to grow and expand, the lower end could struggle
as customer expectations and demands increase.
Curry businesses may have to keep their prices down in order to compete with intense
competition from others in the food sector and new upmarket Curry restaurants.
Restaurants at the lower end of the market will have to compete with supermarket ready meals
and chilled meals, which cost a fraction of the prices charged in restaurants.
Skill shortages is a problem that will affect Indian restaurant owners in the future, hundreds of
restaurants may be forced to close because they are unable to recruit enough staff from the
Indian sub-continent.
If immigration laws are tightened further, proprietors will experience difficulties in obtaining
experienced waiters and skilled chefs and this may limit future market growth.
Although catering industry turnover is forecast to increase over the next two to three years,
growth in the Indian restaurant sector may be unable to keep up the pace.
Operating Practices
Curry restaurants often occupy High Street and central locations in towns and cities. You may
also find a number of them situated close to each other in a particular area.
Many will be licensed to sell alcohol.
Curry takeaways are likely to be located in residential areas, suburban precincts and secondary
trading locations, although some will also be found in central areas.
They may be linked through family and community ties or may be owned by one proprietor.
The proprietor’s extended family is likely to staff the restaurants and takeaways and will often
work on a part time basis.
Owners may offer staff accommodation in rooms above the restaurants if full time staff other
than family is employed. Sometimes staff accommodation will be quite basic and may be
offered in caravans or temporary buildings at the back of the restaurant and a minimal charge
may be made to staff for this.
Restaurant sizes will vary from a small restaurant for between 40 and 50 diners through to
“mega restaurants” providing up to a 1,000 covers.
Recent information suggests that the average number of covers is around 50.
Indian restaurants are more likely to remain open until the early hours as much of their trade is
gained after pubs and night -clubs close. Around 60% also open at lunchtime.
100 main courses, as well as starters, desserts, ice cream and side dishes may be on offer.
Waiter service is normal, although some outlets offer self-service buffets.
A takeaway and home delivery service may be offered.
Sharing meals is done to a lesser degree than with Oriental restaurants
Home buffets
As an alternative to traditional meals served in an Indian restaurant or takeaway, there has
been the development of Home Buffets. Buffet style meals are served in the comfort of the
customers’ own home for dinner parties usually over a specific number, say 10 or 15 persons,
but this will vary.
The proprietor sets up the buffet style selection and leaves the rest to the customer or
alternatively they supply all dishes, plates and tablecloths, napkins, cutlery and an experienced
waiter, in which case there will obviously be a charge for this service.
Restaurant Hire
Restaurant hire is becoming more common especially within the Indian restaurant sector. For
example a recent advertisement offered the premises for hire for celebrations of 30 people or
more. The restaurant was offered free of charge between 12.00noon and 4.00pm which was
outside their normal opening hours. The proprietor would obviously make profits on the food
and drink consumed outside their normal opening times.
Food issues
Food Promotions
Influences on food
Food Preparation
Food Promotions
'All you can eat' promotions have become increasingly popular. Despite first thoughts of erosion
of profit margins, many proprietors have found that in fact regular customers, who participate in
this offer, often do not eat more than a regular meal.
However, this is not always the case as some do take advantage and take excessive amounts
of food, which they are often unable to consume.
Many proprietors offer discounts to students on production of their NUS card, this could be
anything from a £1 of meals to a 10% reduction, but is usually for takeaway meals.
Specials and 2 for 1 meals are often offered on evenings when trade is quiet such as a Monday
and Tuesday, with a fixed price being offered per head.
Food Preparation
Most Indian dishes are simmered for a long period of time for assimilation of spices and to
create body and flavour.
However, there is a degree of instant cooking of individual meals, using a base of pre cooked
prime curry sauces and marinated meats.
A base sauce is usually used, a curry sauce, and then secondary sauces including korma or
chasnior. The chef then adds the necessary spices and vegetables to create the individual
order.
Staple accompaniments to most meals are rice, either boiled or fried, or specialised rice dishes
such as pilaus or byrianis, and chapattis or leavened bread.
Chappatis are usually made from wholemeal flour and the dough is prepared by adding a small
quantity of oil or clarified butter (ghe) and water. The prepared dough is broken into small balls
of around 1” to 2” diameter, which is then rolled out and dry fried.
It is usually possible to make up to a dozen chappatis from a pound of flour, though this will vary
depending on the size and thickness of the chappatis.
Restaurant cooking is often a compromise between traditional methods and the commercial
necessity of providing a meal in as short a time as possible, whilst allowing the customer a
choice from a wide and varied menu.
Influences on food
One of the prime influences in Indian cooking, giving it a broad range of content and style, is the
various religious practices on the sub-continent. Hinduism is the predominant religion followed
by that of the Muslims, Buddhists and Sikhs.
Some of the essential differences flowing from these religions are illustrated as follows:

Hindus do not eat meat, although they are allowed to eat fish, which is considered to be
the fruits of the sea

Kashmari Hindus do not eat onions or garlic, as these are considered to inflame the
passions and lead men to sin

Buddhists are vegetarian and Muslims will not eat pork or shell fish

the basic grain of Northern India is wheat, whilst rice is the staple grain of Southern
India and pulses are common to all regions

the north grows fruit and vegetables more akin to western culture, such as apples,
pears, strawberries, peaches, cauliflower, beans, cabbage and mushrooms. Produce
from Central and South India is tropical with fruit and vegetables such as bananas,
mangoes, coconuts, tamarind, aubergines and cane sugar

northern dishes are usually served with leavened bread called Nan with chappatis. In
the South, rice is a common accompaniment

vegetarian cooking found in the South has a strong emphasis on coconuts, tamarinds
and chillies. The South is also noted for pungent fish dishes

a common dish in most restaurants is vindaloo, which is a hot curried pork dish and
originated from the Portuguese settlement of Goa in Southwest India

another common menu is tandoori, which in fact describes a type of cooking and not the
dish. Tandoori meat is basically meat marinated in spices and curds and baked in an
earthenware tandoori pot.
Spices are universal and a combination of some spices can be found in nearly every regional
dish. There are 13 classical Indian spices, which include, Ginger, Chilli, Garlic, Cardamom,
Onion, Cinnamon, Cumin, Nutmeg, Coriander, Pepper, Cloves, Fenugreek and Turmeric.
The name of a particular type of curry dish may reflect its strength, ingredients and place of
origin.
Curries are cooked in various styles and strength, ranging from Korma – mild to Vindaloo, which
is very hot. Accompaniments include Nan bread and various types of rice. Side dishes include
bhajis and popadoms.
Suppliers and terms
Most of the ingredients used in curry dishes fall into one of three main categories:
1.
perishables, including meat, seafood and vegetables
2.
dry goods such as spices, flour and rice
3.
non-perishables including cooking oils and tinned goods
Ingredients may be bought from some or all of the following types of supplier:

specialist ethnic cash and carries

spice manufacturers, importers and wholesalers

ethnic food wholesalers and markets

curry sauce and paste producers

butchers and fishmongers

non-food suppliers

brewers, alcohol and wine merchants
Some proprietors will go to considerable lengths to source high quality, authentic, basic
ingredients, including making personal imports and overseas buying trips.
Ingredient prices may fluctuate considerably, although larger suppliers may be able to offer
greater price stability.
The local ethnic wholesale market is very competitive and caterers may be able to play one
supplier off against another in order to achieve the best possible prices.
Some will be bound by family ties to purchase part or all supplies from a particular wholesaler.
The following terms may be obtained from suppliers:

pro forma payment, or credit of up to 30 days and occasionally longer

discounts for volume, loyalty and early settlement

occasionally up to 7 days credit from cash and carries and volume
discounts/retrospective rebates of 1.5% - 2.75%
On average a trader will visit a cash and carry outlet once a week.
Food suppliers are likely to deliver to restaurants and takeaways on a regular basis.
Several outlets may co-operate when purchasing certain supplies, in order to achieve larger
volume discounts.
Customers
Indian restaurants and takeaways are likely to gain customers from all walks of life, from
children through to retired clientele in both Indian restaurants and in takeaways.
However, reports indicate that younger adults are most likely to eat out, with 80% of 16-19 year
olds and 75% of 20-29 year olds eating out at least once every month.
Curry restaurants at the lower end of the market often attract large groups of young customers,
particularly at the weekend.
The student population also provides a major source of custom.
In recent years there has been a growth in restaurants aiming at a more upmarket sector of the
population including couples, mixed groups and business people. Many proprietors are now
trying to provide a more stylish and comfortable environment.
Customers may be given 'free' extras as standard, such as complimentary mints and a
complimentary drink will be offered where the customer spends over a certain amount.
Customers who claim dissatisfaction may be routinely offered a 'discretionary' discount of 15%.
Average cost of a meal
The Curry Club estimated an average spend of around £12 - £15 per person in 2005, although
restaurants that have moved upmarket, particularly those located in London, may have a
significantly higher average spend than this.
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
Turnover
Turnover continues to be adversely affected by low and often near static prices and by strong
competition from other, often more innovative, areas of the catering sector.
Other adverse factors include an increase in home cooked curries and a decline in the
popularity of visiting pubs (due to home alcohol consumption) as many curry restaurants and
takeaways rely heavily on late night ‘after pub’ trade.
The curry sector has however benefited from the following positive trends within the catering
industry, which have boosted growth:

expansion in the level of both disposable income and leisure time

an increase in customers using restaurants

an increase in demand for ethnic foods

the popularity of "a beer and a curry" as a night out.
Factors affecting sales
The following may have an effect on sales:

'regionalising' the menu and specialising in authentic cuisine

an increase or decrease in the average spend per head

extending or reducing the range of products offered

promoting special events

competition.
Opening times
Curry restaurants may remain open for most of the year, often closing only for Christmas day
due to lack of demand and Eid al Fittr that is a Muslim festival during Ramadan.
Fridays and Saturdays are the likely to be the busiest days of the week for the majority of curry
restaurants while Monday will be the quietest day of the week.
GPR’s
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
Indian takeaways are likely to achieve somewhat lower gross profit rates than restaurants.
Those which have increased their prices have usually done so in conjunction with a move
upmarket; such a move is, however, likely to have given rise to greater ingredient costs and
may have led to no increase in the gross profit rate.
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
Sales mix
Where a restaurant offers a takeaway service, these meals may account for between 15% and
30% of turnover although these figures may vary considerably in individual cases.
Lunchtime trade is likely to only account for around 10% of total sales.
Chicken curries are reported as being the most commonly ordered dishes, with chicken tikka
masala being the most popular.
Drink sales may average around 15% of total turnover, with lager being the most popular choice
in over 75% of restaurants.
Popular Indian bottled and draught beers served in Indian restaurants include Cobra, Lal
Toofan, Kingfisher and Bangla, all of which are specially blended to compliment Indian cuisine.
Cobra also has a range of special red and white wines to accompany spicy foods.
High profits can also be gained from soft drinks and concentrates dispensed through pumps.
In some cases, a considerably higher percentage of turnover is accounted for by drinks sales,
particularly where the outlet targets late night trade.
Other income may be derived from the sale of cigarettes as well as from vending and
amusement machines, a payphone and service charges.
An unlicensed restaurant may receive a small amount of income from nominal ‘corkage’
charges made to customers who bring their own alcohol. However around 80% of curry
restaurants have a license to sell alcohol.
Taxi firms may pay owners a commission for recommendation but this is only likely to be a very
small amount.
Staff
Staffing levels and wages paid may be understated and you will often find that proprietors of this
type of restaurant fail to maintain staff records.
Staff will predominantly be paid in cash.
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
Thai Restaurants
Introduction
In the last twenty years Britain has experienced a boom in Thai food with restaurants seemingly
springing up on every street corner.
Thai food is reported to be London’s fastest growing cuisine with the number of restaurants
increasing by 4,325% in the last ten years.
A magazine indicates that there are in the region of 600 Thai restaurants throughout Britain.
Factors such as diners looking for more exotic tasting foods, the immigration of many more Thai
people in to the country and the popularity of Thailand as a tourist destination have all
contributed to the popularity of this cuisine.
Thai food also offers an alternative to Chinese and Indian food and is regarded as one of the
best in the world.
As with most forms of cuisine introduced to the UK, Thai restaurants are subject to the impulse
of fashion, but they have generally maintained their position at the top end of the market, with
prices and margins to match.
These types of restaurants are usually found in large or major towns or cities.
Thai Cuisine
Food plays a central role in Thai life and culture, the cuisine is generally considered to be a
mixture of Chinese and Indian influences, the precise nature reflecting regional variations within
Thailand.
However, contrary to Chines food being eaten with chopsticks, Thai food is eaten with a fork.
In the past Thai dishes consisted of rice accompanied by lightly cooked plain vegetables and
fish. Over the years spices have been introduced and curries of varying strengths are now
served.
The essence of Thai cuisine is contrast, as well as harmony as sweet, sour, spicy, and salty
play a balancing act together where one flavour never supersedes the other.
Most dishes are rice based with noodles also forming a major constituent. Coconut milk,
seafood and fruit also play an important roll in this cuisine which has become immensely
popular around the world in the past few years.
A typical Thai menu now should consist of soup, salad, something crispy, something hot and
spicy, and something sweet.
A representative meal will consist of meat, fish and vegetables; the main Thai flavours are
lemon grass, coriander, basil, garlic, chillies and lime, with coconut milk being used extensively.
Meat is eaten by most Thais and is served in small quantities in stir-fries and salads and curries.
All the dishes of the main course are served together with diners helping themselves to small
portions.
The general idea is that such meals are eaten at a leisurely pace, however where this is the
practice, diners may occupy the table for the whole evening resulting in the restaurateur only
being able to offer one sitting to diners each opening. However to address commercial
requirements it is becoming more common for the 'sittings' basis to be adopted, i.e. 1 st sitting at
7.00pm with the 2nd sitting being at 9.00pm.
The following are examples of the most popular dishes that will be found on Thai restaurant:

Tom Yam Kung - hot and sour shrimp soup

Phat Thai - fried noodles Thai style

Tom Kha Kai - chicken coconut soup

Kaeng Khiao Wan Nua - green curry with beef.
An example of a typical set meal:
Starters:

Kanom Bang Na Hed - Seasoned mushrooms on toast deep-fried and served with onion
and cucumber dip.

Bor Bia - Crispy pancakes with filling of vermicelli with pork and Thai mushrooms and
served with plum sauce
Main Course:

Gang Gal Musselman - Southern style chicken curry with peanuts and potatoes

Pla Trout Joop Bang Tord - Fillet of trout fried in a light batter and served with a
delicious tamarind sauce

Ner Pat Namman Hoi - Top side of beef with mushrooms and spring onions in oyster
sauce

Nua Nok Pat Dow Hoo - Beansprouts stir fried with bean curd and garlic in soy sauce.
Ownership and staff
It is commonplace for Thai restaurants to be owned or part owned by English and/or Ethnic
Chinese – the latter in fact own a significant proportion of restaurants in Thailand itself.
The chefs however are invariably Thai and may have been brought into the UK by the
restaurant owner, sometimes at considerable expense.
Tips are often retained by the owner rather than shared out among staff, but meals are
frequently provided before and/or after each shift.
Profit margins
In view of the above it is not unusual for many of the restaurants to import directly fresh herbs
and vegetables from their originating country. However as the cost of the meals is fairly high it
is considered that the profit margins achievable are on a par with Chinese and Indian
restaurants.
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
Wastage
As chefs prepare decorative food displays and use traditional cooking methods, there may be a
high degree of wastage.
Careful evaluation of this aspect is required in order to establish the practices adopted by each
individual restaurant.
Thai and oriental mobile event catering
Thai and oriental mobile event catering trailers may be found at events and shows throughout
the UK, covering music concerts, and sporting events steam rallies, boat shows, exhibitions,
fairs and carnivals.
Menus may be tailor made to suit the weather for example soup for winter events and green
chicken wraps for summer festivals.
Meals will usually be served in Chinese type takeaway boxes and will consist of a variety of
different stir-fry meals, green chicken curry, Thai fish cakes, and spicy payaya salad. Thai
snacks may include prawn crackers, fortune cookies, mini spring rolls, thick egg noodles and
sweet chilli sauce.
This type of trailer is also likely to sell a selection of beverages, fruit juices and mineral waters.
Some will offer vegetarian and healthy option meals as an alternative.
Some events will have an attendance of between 1,000 and 5,000 people each day and in
these situations you would expect to find more that one Thai catering trailer.
Tables and chairs and heaters may be found surrounding the trailer for customer comfort.
Staff is usually provided with a uniform and free food and drink. Most will work between 10 and
12 hours per day and this is usually weekend work.
Some trailer owners may also offer a similar service for private parties and for corporate
functions with tailor made menus to suit individual requirements. However certain technical
requirements have to be met.
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
Italian Restaurants
Introduction
Information sources suggest that there are in excess of 4,000 Italian restaurants in the UK with
an annual turnover of over £1 billion.
Although there are no signs of decline in this sector growth has only been moderate over recent
years and the market is reported as being stable.
There are indications that pizza takeaways and delivery outlets will take a greater share of the
catering market in the future.
“Gourmet Italian” restaurants are also gaining in popularity, offering a more up-market and
expensive dining experience.
The old labels Ristorante, Trattorias and osteria have become somewhat interchangeable in
recent years; many of the smarter and most expensive restaurants now call themselves Osterie
and take pride in reinterpreting strictly local dishes with great flair.
Italian restaurants are usually small independent family run business owned by families and
passed on through generations.
Businesses are likely to fall into two main categories:

Pizzerias and Trattorias - cater for the lower end of the market and will usually provide
a wide range of pizza and pasta dishes

Ristorantes - offer more expensive dishes
The sale of pizzas as part of the restaurant menu and as a takeaway option forms a significant
part of this trade.
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
Italian Cuisine
Italian catering originated from Italian migrants but the traditional Italian ingredients had to be
adapted for the British market.
In Italy there are an incredible diverse number of dishes, ingredients and cooking times used
from one region to another.
In the North - they use rice and butter and Polenta is often served with rich meat and vegetable
sauces. Bollito Misto is a popular meat dish - a combination of beef brisket, veal cheek, capon,
zampone (rich pork sausage meat stuffed into the skin from a pig leg, including the trotters) and
tongue and is usually combined with a piquant salsa verde.
Central Italy - is best known for its distinct produce. Tuscans eat beans, wild boar, rabbits, and
fungi of all sorts, artichokes and nettles. Less butter, cream and heavy seasonings are used but
more olive oil is used. Favourites include pasta e fagioli (a delicious soup made with pasta and
borlotti beans), inzimino di baccala (salt cod cooked with chickpeas) and cibreo di rigaglie (a
rich and satisfying stew made with chicken offal).
The South - eats pasta and cook with olive oil. Southern Italy is the home of tomato sauces,
pizza and pasta. Flavours are stronger, richer and spicier and include grilled branzino (sea
bass), spaghetti alle vongole (spaghetti with clams) and fried mozzarella sandwiches.
In Britain
There is, of course, a lot more to Italian food than pasta and pizzas.
Italian food is complex and varied and consists of diverse regional variations and specialisms.
It is true to say however that restaurants in the UK concentrate on a fairly narrow and uniform
type of cuisine with pasta dishes dominating the menu.
The versatility and accessibility of Italian food has increased its popularity in Britain.
Most Italian restaurants will offer pasta and pizza; they will also serve food that has been
adapted to Italian cooking styles. Italian ingredients are used in order to produce a more
authentic taste in response to customer demands.
Basic spices used in sauces to provide the distinctive Italian flavours, are oregano and basil.
Risotto is now gaining popularity due to its flexibility and potential for individuality. It may include
contain butter, chicken stock, Parmigiano and white truffle shavings.
Italian food can range from a takeaway through to haute cuisine providing a choice for diners.
The use of organic produce in Italian restaurants is become more widespread to fit in with
today’s health conscious society.
Fish also plays a dominant role, and some restaurants will offer daily specials of fresh fish.
In addition to the main courses, starters and antipasti are a major part of Italian cuisine. The
most common ingredients being salami, olives, pimentos, ham, and seafood.
Food and Preparation
Pasta comes in all shapes and sizes and flavours. Shapes range from the ornamental
conchiglie (shells) to the practical ribboned tagliatelle.
Colours also vary from black to deep red to green or even orange.
Pasta is basically a wheat-based product with eggs and in some cases, the addition of
semolina.
The use of authentic pasta has increased, with factory made dried pasta declining. Many
establishments either make their own or buy in fresh pasta.
Like rice, pasta absorbs up to three time its weight in water and about 5 kilos of dry pasta will
produce approximately 50 generous portions, making it a vary cost effective product.
Pasta is invariably served with a sauce or cream accompaniment. Tomatoes feature
prominently in the majority of sauces. Basic spices used in sauces to give them their distinctive
Italian flavour are oregano and basil. Parmesan cheese is used as an almost universal garnish.
Italian cuisine is also famous for its fine range of hors d'oeuvres or antipasti. The most common
ingredients used are salami, olives, anchovies, small artichokes, and pimentos. A variety of
hams and other port based products such as Lonza - fillet of port, Coppa - pigs head brawn and
Mortadello sausage are used for antipasta dishes in addition to a variety of fish and sea food
antipasta.
There are also varieties of hot antipasti dishes, such as crostine, rounds of fried or baked bread
garnished with melting cheese and herbs, and frittelle (ham and cheese fritters).
Prices
Prices will obviously vary in Italian restaurants depending on the location and the specific type
of restaurant.
For guidance only - a family based restaurant may charge on average £10 to £15 per head for a
meal including drinks. A gourmet restaurant is likely to have higher overheads and may charge
between £25 and £60 per head. It will also depend on the drinks consumed; if expensive wine is
chosen then the prices will increase accordingly.
Wine
Wine is an important element of the turnover and the quality and cost of the wine will usually
follow the trend of the food served.
The wine list may not, by comparison be extensive, but to care and know about wine is part of
the Italian ethos, therefore the list may be selective.
Customers
Italian restaurants often appeal to students as Italian cuisine is usually cheaper and more
versatile than Indian and Chinese cuisine.
However, custom is varied; the restaurants are often small, warm and friendly, encouraging
adult groups, couples and families as well as young people.
Children in particular are a main consumer group. Children and families usually eat early
evening and therefore benefit from food offers in family orientated restaurants.
Professionals often choose Italian restaurants for their versatility at lunchtime for a business
meal or simply to eat out with friends.
Many Italian restaurant owners are now adapting their restaurants to provide upmarket Italian
venues specifically aimed at customers with higher disposable incomes.
Restaurants will be designed to meet a specific niche market, for instance those that are suited
to children and families will require a different setting and menu to those aimed at attracting
professionals.
Promoting the business
Proprietors will promote their business in various ways but probably the best form of promotion
is by word of mouth recommendation from satisfied customers.
Some will have a customer mailing list and will send out money-off or buy- one- get –one- free
offers in the form of vouchers, to encourage customers to make further visits to the restaurant.
In the restaurant itself, traditional wood-fired ovens and open kitchens where customers can
actually see their meal being cooked are a further form of promoting the cleanliness and
expertise of the business.
Customers will also be impressed if the chef prepares innovative Italian dishes and uses
authentic ingredients.
Competition
The main form of competition will come from the pizza and pasta restaurant chains, which are
very popular and have a wide and loyal customer base.
Competition will also come from other restaurants serving international dishes.
Independent and branded takeaways are a growing threat as customers choose to eat at home.
Pubs and cafes also often offer Italian dishes on their menus.
Supermarkets often have a separate section for pizzas and staff will make them to order using
toppings of the customers’ choice. Some are now also providing a takeaway delivery service in
order to expand on their products.
Equipment
The equipment required when first setting up an Italian restaurant will be similar to that required
for any type of restaurant and details can be found in part 1 of this TIP at Premises and
Running Costs.
A pasta machine is usually used for mixing, rolling or extruding and they are either manual or
automatic. An automatic machine will do the first three processes in minutes and depending on
size can process loads from 1.5 to 25 kilos, with a throughput reaching several hundred portions
an hour.
In addition a special pizza oven will be required and prices are likely to range from £1,000
upwards depending on the style, design and size required for the restaurant.
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
Greek Restaurants
Greek food has a wide regional spread with similarities to the cuisine of Turkey, Armenia and
the Balkan countries.
Greek cuisine is noted for its many excellent sea food dishes.
Lamb is the favourite Greek meat and the standard method of cooking is roasting on a spit.
Rice and pitta bread are common staple accompaniments to most dishes and extensive use of
olive oil, onions, tomatoes, garlic, herbs and spices typify the flavour of Greek cooking.
Most vegetable dishes are sautéed in olive oil and "a la grecque" is known internationally as
denoting the unique method of cooking vegetables in the Greek style.
Typical dishes include:

Entrather - lamb and artichokes

Moussaka - minced lamb and aubergines

Youvorlakis - meat balls in tomato sauce

Spanakopeta - cheese and spinach mixture in a pastry crust

Dolmadakia - vine leaves stuffed with meat and rice.
In addition the cuisine is noted for its many types of pilav dishes using steamed rice with fish,
meat and poultry.
A famous Greek cheese is feta, used in salads.
Apart from a few authentic Greek restaurants, many will feature a mix of Greek, Mediterranean
and English items on the menu.
Menus will include kebabs with pitta bread and rice based dishes such as dolmades and
moussaka.
Doner kebabs based on the traditional Greek dish have been adapted as a fast takeaway food.
The meat, usually lamb, comes in a reconstituted block and is slow roasted on an electric rotary
spit. Slices of meat are carved off the joint as and when required and served in pitta bread with
salad and chilli sauce.
The profit margin on this type of kebab is normally high and the mark ups will often range
between 150 and 200%.
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
French Restaurants
Introduction
French cuisine is remarkably varied with many regional differences based on the produce and
gastronomy of each region. Markets and speciality shops sell local delicacies relating to specific
regions.
Culinary traditions have been developed and perfected over the centuries and even basic
dishes require careful preparation and great attention to detail.
The use of fresh locally produced seasonal ingredient plays an important role in French
cooking. Garlic, olive oil and herbs and olives are also important ingredients in many dishes.
Regional dishes include cereals, cheese, a selection of pastas and many vegetable dishes.
These dishes will therefore appeal to vegetarians.
French gastronomy in the Provence-Alpes-Côte d'Azur is very distinctive from the rest of French
cuisine. Their food has a Mediterranean influence and hot spices and seafood forms the basis
of their menus.
Because of the mountainous country, without the rich farmlands and herds of dairy cattle,
Provencal cooking uses very little milk and goat cheeses are predominant.
Some larger restaurants in Cities in this area also offer vegetarian options.
In the UK French restaurants range from the modest “corner shop” bistro or brasserie to the
high-class gourmet restaurant with Michelin Guide ratings.
However, they all have one thing in common and that is to prepare and present food in the best
traditions of French cookery.
French chefs are renown for being innovative and individualistic and quite literally the restaurant
revolves around the chef. The chef will stamp style on the food sold and govern the dishes on
the menu. The character and reputation of a restaurant stands or falls on the ability of the chef.
“Sous-vide” is used in French gourmet cooking it means “under vacuum” and the technique of
fast chilling and vacuum packing are used to provide a fast high quality gourmet service.
The food is cooked by master chefs at a central point; fast chilled and vacuum packed and then
distributed to restaurants. Fast steamers are used to heat food before serving.
The advantages of “sous vide” include:

It is not necessary to have a chef in every restaurant

the shelf live of food is extended to 21 days and wastage is minimised

the time between taking the diners order and the food being served is reduced

kitchen sizes can be reduced, allowing a bigger dining area
Commercial caterers have entered the “sous vide” field and production in factories now service
a whole range of catering outlets.
Food preparation
Whilst making use of the same basic meats and vegetables, there is a substantial difference in
the way they are prepared in French restaurants.
Plain roasted, grilled, fried or baked foods would typify British cooking, with the usual garnish of
gravy or white sauce, whereas French cooking is typified by:

marinating in wine and herbs and spices to enrich the flavour

a profusion of sauces and garnishes mainly wine based, to complement every type of
meat and manner of cooking

vegetables being sautéed and taste and flavour enhanced with herbs, spices and nuts

a wider use of basic ingredients such as onions, garlic, mushrooms and truffles, which
are unique to French cooking.
The difference can best be illustrated when comparing two dishes using the same raw
materials, beef and vegetables:
The British way would be either:

roast beef with roast, baked or boiled potatoes, boiled carrots and /or peas and gravy

grilled steak with chips and peas garnished with grilled mushrooms and/or tomatoes
Or
The French way would be either:

the steak may be entrecote steak; that is, mid-rib marinated in a sauce of beef extract,
wine, tomatoes, herbs and spices, accompanied with a variety of sautéed vegetables

fillet of beef stilton, a particularly attractive way of cooking and presenting a piece of fillet
steak. The steak is topped with a seasoned chicken and cheese mousse, baked and
served on a bed of spinach leaves, with a port and veal stock sauce.
Or
Beef and lamb are the main meats used in French cuisine and the way the meat is cut and
prepared differs fairly substantially from the traditional British methods.
One of the basic differences is the practice of hanging meat to improve tenderness and
appearance. Beef is usually hung for between 2 and 3 weeks and during this process the meat
will lose some weight through water evaporation.
French restaurants usually use fresh produce and ingredients in their dishes and will often offer
different menus each day or session of opening.
Many French chefs will make a set amount of portions of a dish each day (say 20 portions),
when they have all been sold they will be removed from the menu which is usually on a
chalkboard.
The chef will then offer alternative dishes of similar portions and so on.
By using this method waste is eliminated and customers are provided with fresh food.
Examples of items that you would expect to find on French menus include:
Salads
In most French restaurants salads will be listed on the menu, however a French salad is usually
very generous in size and big enough to be a light meal in itself.
It should therefore be noted than many customers will order only a salad at lunchtime.
Only the smallest salad on the menu, a "salade verte" (lettuce) "salade mixte" (lettuce and
tomatoes) is intended only as an hors d'oeuvre.
Salade de Chèvre Chaude is a lettuce salad with white goat cheese served hot on pieces of
toast or croutons and is also a popular hors d’oeuvre.
Soups
Soupe de Poissons is a speciality soup which is served steaming hot in a tureen and because
of the ingredients and amount of fish used in the soup can often be ordered on its own for a
substantial snack meal at lunchtime in a restaurant. Soupe au Pistou – the main ingredients for
this soup are beans and usually four varieties are used together with pistou sauce.
Fish
Fish dishes are likely to include filet de loup de mer - sea bass and moules marinieres and
rougets grilles – red mullet and various types of seafood.
Moules marinieres - mussels steamed in white wine and onion are also a popular dish, which is
always eaten with the fingers, an empty mussel shell is often used as pincers to pick each
mussel out of the shells.
Pasta
Pasta dishes are also usually offered with dishes such as ravioli stuffed with meats and
vegetables being a popular option.
Herbs
Rosemary, sage, origan, marjoram and savory sarriette are used alone or in different mixtures
together to give cooking its unique taste and smell.
Nouvelle cuisine
Nouvelle cuisine was characterised by lighter sauces and tiny portions, served in a decorative
manner. The current trend is a movement away from both haute and nouvelle cuisine, focussing
on simple hearty bistro type dishes.
Wine
Each of ten principal wine-producing regions in France has its own identity, based on grape
varieties. Appellation contrôlée laws guarantee a wine's origins and style.
Wine is an important element of the turnover and the quality and cost of the wine will usually
follow the trend of the food served.
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
Spanish Restaurants – Tapas Bars
Spanish foods are as distinctive as the country and with some exceptions, the majority of wellknown dishes are based on rice and seafoods, with the distinctive aroma of olive oil and garlic.
Vegetables such as tomatoes, olives, red and green pimentos, aubergines, artichokes,
chickpeas, runner beans and courgettes, typify Spanish cooking.
The two most well known Spanish dishes are paella and Spanish omelette.
The Spanish word Tapa is translated as “lid and the concept of tapas originated when farmers
and labourers in Spain finished work for the day they would go to the “tascas” for a drink. The
word “tasca” translates as “inn” or “tavern”.
The innkeeper would place a slice of bread on top of their drink to prevent flies from going into
the glass. Subsequently cured meats and sausages and olives were placed on top of the bread
and they were eaten to accompany the drink.
An advantage of serving cured meats is that they created a greater thirst, making the customers
purchase yet more drinks.
Tapas have now evolved into a unique way of eating in many restaurants in the UK where
customers can now choose from many different types of food and eat as little or as much as you
like to suit their appetite.
Tapas were originally small dishes or bowls of snack-size foods meant to be eaten between
meals. However in some restaurants a variety of tapas can also be served as a main meal and
in this form it is known as rations and include various sea foods especially anchovies and
sardines served hot or cold, with or without sauces, in marinades or as salads.
Diners can order dishes individually, or as a group of related dishes. Olives are still popular
ingredients for tapas, as are cheese, ham and other foods that lend themselves to small snacks.
Various selections of Paellas will also be available.
Other popular tapas dishes include herbed goat cheese with ham and shrimp, chickpeas and
spinach, mushrooms and cheese, small servings of Spanish omelette, tuna and olive crostini.
Many Spanish style restaurants choose décor to create the idea of being in a Spanish holiday
resort. Some will be able to accommodate up to 200 customers and may offer terraces for
outside dining in the summer.
Tapas is an ideal type of food for “food sharing” therefore consideration should be given to this
fact when compiling a business economics exercise.
Food and preparation
All types of seafoods including squid and octopus will be prepared. Soups and stews are
popular and a whole host of recipes and regional variations using sea foods, rice, vegetables,
chick peas, black puddings and meats, such as pork, chicken or beef are used.
They are usually called cocidas or pucheros and most, if not all recipes will contain olive oil,
onions, tomatoes, garlic and almond paste, usually used for aroma and thickening.
Wine is seldom used in Spanish cooking, though white wine is used in some soups and sauces.
Meats such as beef, kid and lamb are usually roasted and served with sauces such as solsu
espanola which is a brown roux made with meat and vegetable stock, or sofrito, chopped
onions and tomatoes cooked in olive oil with garlic and spices.
Roast dishes may be accompanied with vegetables such as potatoes, baby artichokes,
courgettes or beans. Fish, octopus and squid are usually boiled and then may be garnished with
a sauce or marinated in olive oil and paprika before serving. Marinated octopus and squid are
usually cut into small rings and are served either hot or cold.
The Spanish food listed below provides some of the essential flavour of Spanish cuisine:

Brochitas - a spicy kebab made with pork and beef

Cocido - a Spanish hot-pot of chick peas, beef, chicken, black pudding and sausage

Bacalao a la Vizcaina - salt cod with a sauce of garlic, hot red peppers and onions

A la Gallega - cooked with green and red peppers and shallots

Ajoarriero - a stew, fish or meat in olive oil, with tomatoes, onions, garlic, potatoes

Andalusian cold soup - made with almonds, garlic and olive oil

Boquerone en Vinagre - anchovies filleted and marinated in olive oil and vinegar

Octupus a la Gallega - boiled octopus marinated in olive oil and paprika

Zarzuela de Mariscos - a famous fish soup. A large variety of fish and shellfish cooked
in tomatoes, olive oil and garlic. A fish stock seasoned with paprika and saffron and
some white wine, used in final seasoning.
Or
Spain is also famous for its wide variety of sweetmeats; most originating from the Moorish
period and the most renowned being Turron, a honey and almond based nougat.
Other sweets include:

Tocino de Cielo - made from egg yolks and sugar syrup

Quesode - a scented cheese made from boiling quince with sugar

Tocinillo de Almendras - a rich sweet, made from egg yolk, almonds and sugar

Bizcocho de Almendras - a rich almond sponge.
Costs
Costs for tapas dishes are likely to be low - between £2 and £4 each but it should be
remembered that the portions are only small and therefore a selection are likely to be consumed
Tapas buffets
A tapas buffet may include several kinds of cheeses and meats and finger-sized vegetables
such as mushrooms, olives and carrots. A variety of small breads will also be provided in order
that diners can make their own tapas combinations to suit their individual tastes.
Drinks
Spanish wines and beers will usually be offered together with the popular Spanish drink Sangria
that may be served either by the glass or in a pitcher for sharing.
Drinks may include San Miguel and Cava, but Spanish wine is likely to be the biggest seller.
Spanish restaurants often attempt to create a party atmosphere and so may encourage
customers to spend a long time at their table.
This may result in a higher level of drink sales than in other restaurants.
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
African/Caribbean Restaurants
For the purpose of this TIP African/Caribbean restaurants will t be referred to as Afro
Caribbean Restaurants.
Introduction
African restaurants offer a variety of distinctive West Indies inspired cuisine, which chefs
prepare from authentic ingredients to traditional recipes.
The UK public are becoming increasingly interested in ethnic food, probably because allinclusive Caribbean holidays are becoming more affordable and diners then try to relive the
experience when they return to the UK.
Television cookery programs also contribute to growth in demand for this type of cuisine.
Most African restaurants will be located in and around London as African food is still a relatively
niche area.
Cuisine
Dishes may include jerk chicken, rice and peas, curried goat and plantain in addition to food
from other Caribbean islands such as snapper, saltfish and breadfruit.
All dishes are usually fiery and flavoursome and unusual vegetables and bean side dishes are
often served. Other side dishes may include plantain, black-eye beans, ingera bread and rice.
For a main course spicy chicken known as Doro Wot is a popular dish.
Drinks
African restaurants are usually brightly coloured in a Caribbean style and may serve tropical
cocktails and special beers.
African beers and wines and homemade ginger beer may also be available in some restaurants.
To finish spice tea may be an option.
Training
The chef will require experience in both food preparation and African food, together with
knowledge of basic food hygiene and have ideally reached the level of Sous Chef.
Customers
Customers are likely to include those born in the Caribbean that have move to the UK, they will
be accustomed to eating this type of food and will expect authentic ingredients to be used in
restaurant meals.
Diners who enjoy calypso evenings will use African restaurants when they hold this type of
event.
Many people will dine at an African restaurant purely because they enjoy trying different types
of food and tastes, rather than visiting mainstream venues.
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
Japanese Restaurants
Introduction
The popularity of Japanese cuisine has grown dramatically over the last 18 months, and there
are indications that it has overtaken Thai cuisine in the popularity stakes.
There are over 150 Japanese restaurants in London alone.
Major chains are also appearing in cities across the country.
Cuisine
Soup
Some restaurants in particular those that are parts of a chain offer unlimited amounts of miso
soup for a set price of around £1.50.
Teppanyaki and Sushi are the two most popular types of Japanese cuisine.
Many of the foods served as part of a meal are left raw or only slightly cooked to maintain
freshness and taste. The base of the meals is often found to be rice, fish and pickles.
The Japanese obtain the bulk of their protein from soybeans and seafood.
Red meat is used in cooking, this is mainly beef and pork and meals are generally light and
cooked with very little oil.
Although rice usually supplements a main course, noodles are also very popular and noodle
bars and restaurants are now being established to specialise in them.
Teppanyaki
Teppanyaki is one of the most popular cuisine types, it is stir-fried meat and vegetables cooked
and eaten off a large tabletop grill.
In Japanese “teppan” means an iron plate or a steel sheet, they are actually made of stainless
steel and come in a variety of shapes and sizes. A large teppan, including the surrounding
counter from where customers can eat can seat up to 20 people, whilst watching the chef
prepare the meal on the grill in front of them.
The chef only works on one course at a time, and as the food is prepared on the same surface
that keeps it warm, meals are served as soon as they are ready.
Examples of a Teppanyaki menu:

Teppanyaki Hitsiu - Lamb fillet with black pepper

Teppanyaki Ebi - Giant King prawn with lemon juice

Teppanyaki Soristeki - sirloin steak

Teppanyaki Gingami Yaki - fresh seafood with vegetable teppanyaki
All the above are served with salad and Japanese steamed rice.
Sushi Restaurants
Sushi restaurants tend to have a modern, trendy feel and Sushi dishes are becoming
increasingly popular.
Trade articles on such venues indicate that in addition to busy lunchtime trade, when a more
fast-food environment may prevail, there is now a variety of clientele including families and
people of all generations eating at restaurants in an evening.
Menus offered are often extensive; including steamed rice, fresh vegetables and fish, then
wrapped in a thin layer of cultivated seaweed.
The main types of fish used are eel and yellowtail or tuna.
Green Tea may be offered in some restaurants and Chain operations may charge a set price of
around £1 for unlimited amounts.
The use of a circular conveyor belt which slowly transports the dishes of sushi in front of the
diners was originally a feature found in London restaurants, however the use of this feature has
extended to sushi bars throughout the UK.
The following are examples of Sushi foods and their translations:

Nigiri - the most common form of sushi - pieces of raw and blanched seafood on a bed
of rice, which is sometimes held together with a strip of Nori

Sashimi - slices of raw seafood

Nori - Seaweed sheets

Wasabi – a Japanese horseradish dip

Maki - rolled sushi, which includes fish, rice and nori

Gari or Shoga - sliced pickle ginger, a condiment used to clean the palette between
sushi.
Profit Margins
Little information relating to profit margins is known, however Area feedback received so far
suggests GPR of 80%.
This area of guidance had been withheld because disclosure would prejudice the assessment
or collection of taxes/duties or assist tax/duty avoidance or evasion.
Glossary
The following terms may be used within the restaurant and takeaway sector:
balti
simple and popular way of serving moist curries
brasserie
often large, informal continental style restaurants
carvery
customers choose from hot roast joints of meat which are then sliced
in front of them
corkage
a nominal charge made to customers who are allowed to take their
own alcohol into an unlicensed restaurant
cover
individual place settings in a restaurant
cover charge
minimum expenditure charge made for those sitting in a restaurant
without purchasing food. It may sometimes be imposed on all diners
as a matter of course
dim sum
selection of small Oriental dishes - each diner might consume a
number of different dishes and they are often shared
doggy bag
food that is purchased in the restaurant but uneaten - taken home in
a bag or container
extras
additional or side dishes, such as chips, garlic bread, prawn crackers
and chapattis
front of house
the area of the restaurant where customers are welcomed and
introduced to their tables; front of house staff are those who deal
directly with customers
fusion cuisine
the blending of complementary ingredients from different countries to
produce a new and distinctively flavoured dish
hrm’s
home made ready meals
nouvelle cuisine
emphasises the visual appeal of food and uses light sauces to bring
out natural flavours
petits fours
are small delicacies, served before, during or after a meal
plated service
individual meals are brought to the customer on dishes
“runner”
to leave a restaurant without paying
set meals
often offered by takeaways; a combination of items from the menu
which are sold at a special price to be shared - may be available for
2,4,6 or more persons
silver service
individual meals are served by waiters from large dishes
sommelier
staff member in charge of the wine cellar
specials
additions to the normal menu and only available for a limited time
tandoor
clay oven of Indian origin
tasting menu
or a grazing menu - comprising a large number of small dishes
troncmaster
person responsible for receiving and apportioning tips and gratuities
from customers
wok
large semi-spherical metal pan used for Chinese cooking
This area of guidance had been withheld because disclosure would prejudice
the assessment or collection of taxes/duties or assist tax/duty avoidance or
evasion.
This area of guidance had been withheld because disclosure would prejudice
the assessment or collection of taxes/duties or assist tax/duty avoidance or
evasion.
This area of guidance had been withheld because disclosure would prejudice
the assessment or collection of taxes/duties or assist tax/duty avoidance or
evasion.
Appendix 1 - Annual catering events
A lucrative profit can be gained from one-day catering events as special types of food may be
made available on occasions such as:
January 25th - Burns Night
Haggis with Tatties and Neaps and whiskey
offered as a toast to the haggis. Tickets may
be sold prior to this type of event.
February 14th - St. Valentines Day
Cocktails served on arrival-prior to a candle
lit dinner with dishes on the menu named in
connection with romance. Usually a set menu
highly priced. Food sharing dishes are
popular on Valentines Day.
March - Mothers Day
Mothering Sunday is now classed, as the
busiest Sunday trading day of the year
therefore bookings are usually required.
Special set menus will be available and
prices will be inflated.
October 31st – Halloween
Restaurants with children’s areas may offer
special children’s menus – witches brew &
ghost pie etc, which will bring added trade to
the Restaurant, as parents will usually also
purchase a meal.
Christmas Fayre and Christmas Day
Special Christmas Fayre menus for groups
and parties will be available.
Christmas Day menus will usually be set
meals with a choice of around 3 starters,
main courses and sweets. Coffee and mints
and a mini liqueur are often offered and
included in an overall price, which will be in
the region of £35 to £50 per head, although
in the London area this will be move higher.
December 31st - New Years Eve
Extra delicacies will be included in the menu
and courses may be extended to 5. Some
may also offer a special buffet menu
including a Piper to pipe in the New Year and
a Firework display. Prior bookings will be
required and the cost will probably be
between £50 and £60 for a five-course meal,
again in the London area, this will be much
higher.
Appendix 2 - Maximising Profitability
The following information illustrates the type of yield that can be obtained by purchasing basic
food items such as 25 fresh chickens for a buffet meal rather than using pre-cooked chickens or
convenience frozen portions.
It may be natural to assume that the chickens would be fully utilised in catering for the buffet
meal, but as the following illustrates the restaurateur can obtain many dishes from the chickens
and this will have an effect on profits or may provide ancillary income.
25 Fresh Chickens
Use and method of cooking
Roast portions for the buffet
Assuming that the chef is catering for 100 people with an
allocation of either one roast leg or one roast breast portion
per person, 25 chickens will be required
Fillet Portions
If the “fillets” are removed from the breast portions there will
be 50 fillets. By serving 5 fillets per portion either battered or
served in a white wine casserole - 10 meals can be provided
The Carcass Meat
By removing the remaining meat from the carcass and putting
it trough a mincer and adding stuffing and white sauce a filling
for pasties can be made. The carcass meat from 25 chicken
would produce around 36 pasties for the buffet
Soup
Home made chicken soup can be prepared by stewing the
carcasses in a 6 gallon stew pan with onions, stock and a few
root vegetables and bouquet garni. This should produce
approximately 4 gallons of soup @ 25 portions to the gallon =
100 portions of soup.
In this illustration the total yield from 25 fresh chickens is therefore:

100 portions of roast chicken for the buffet

10 meals of chicken fillets

36 chicken pasties for the buffet or sold separately

100 portions of home made chicken soup
As a result wastage is kept to a minimum and extra profits have been made that would not have
been possible if pre-cooked chickens or convenience frozen portions had been used.