Introduction to Hospitality, Lodging
and Food Services Operations
John R. Walker
Chapter 6
Introduction to Hospitality, 6e and Introduction to
Hospitality Management, 4e - Walker
© 2013 by Pearson Higher Education,
1 Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
Introduction to Hospitality, 6e and Introduction to
Hospitality Management, 4e - Walker
© 2013 by Pearson Higher Education,
2 Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
Introduction to Hospitality, 6e and Introduction to
Hospitality Management, 4e - Walker
© 2013 by Pearson Higher Education,
3 Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
The Restaurant Business
• A place to relax and enjoy the company of
family and friends and to restore energy
• As a society we spend about 47.5 % of food
dollars away from home
• The word restaurant comes from the French
word meaning restore
• Multi-billion dollar business employing 12.8
million people
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Classical Cuisine
• North America gained most of its culinary
legacy from France through 2 main events:
– French Revolution in 1793 - caused the best
French chefs of the day to lose their employment
because their bosses lost their heads! Many chefs
went to North America as a result.
– In 1784, Thomas Jefferson spent five years as
envoy to France, and brought a French chef to the
White House when he became president.
• Mari-Antoine Carême (1784 - 1833) is credited
as the founder of classical cuisine
• August Escoffier (1846 - 1935) is also noted for
his many contributions to cuisine
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Classical Cuisine
• There are five mother sauces: Béchamel,
Velouté, Espagnole, tomato, and
hollandaise
• Nouvelle cuisine is a lighter cuisine and is
based on simpler preparations—with the
aid of processors, blenders, and juicers—
using more natural flavors and
ingredients
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Food Trends and Practices
• Chefs will need:
– A strong culinary foundation.
– Multicultural cooking skills and strong
employability traits.
– Additional management skills.
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Culinary Practices
• To be a good cook, one must understand the basic
techniques and principles of cooking.
• There are six skill areas that are important to
becoming a successful chef:
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




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cooking,
menu development,
sanitation/safety,
accounting,
computer training,
food trends and
practices for the new millennium.
• One of the most important things to learn about the
industry is that you can’t do it alone; it’s a team
effort.
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Developing a Restaurant
• The restaurant:
– Operating philosophy represents the way the
company does business.
– Market is composed of those guests who will
patronize the restaurant.
– Concepts are created with guests in mind and
should fit a definite market.
– Location should also appeal to the target
market.
– Ambiance, or the atmosphere, that a
restaurant creates has both immediate
conscious and unconscious effects on guests.
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Operating Philosophy, Mission,
Goals, and Objectives
• The philosophy of the owner is the heart
of the enterprise.
• This represents the way the company
does business.
• It is an expression of the ethics, morals,
and values by which the company
operates.
10
Restaurant Market
• The market is composed of those guests who
will patronize the restaurant.
• A niche is a specific share or slot of a certain
market.
• The catchment area is a given radius or area
where potential customers are - could be a
one or two block radius in a big city or a two
or five mile radius in rural areas.
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Restaurant Market
Introduction to Hospitality, 6e and Introduction to
Hospitality Management, 4e - Walker
© 2013 by Pearson Higher Education,
12 Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
Restaurant Concept
• Successful concepts are created with guests in
mind. The concept represents the type of
restaurant and clientele—it is an impression or
an image that appeals to certain markets
(casual, children, formal, family, ethnic, etc.)
• The restaurant business with the right location,
food, atmosphere, and service is going to get a
good market share and make a good return on
investment.
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Restaurant Location
• The concept should fit the location and
location fit the concept.
• The location should appeal to the target
market.
• Rent/lease costs should be between 5 and 8
percent of sales.
• Some location criteria include; demographics,
average income of catchment area, zoning,
visibility, accessibility, parking, city, suburban,
etc.
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Restaurant Ambiance
• The atmosphere that a
restaurant creates has both
immediate conscious and
unconscious effects on
guests.
• The immediate conscious
effect is how guests react
to the ambiance.
• The subconscious is
affected by mood, lighting,
furnishings, and music.
15
Sustainable Restaurants
• The average American meal has a shockingly
large carbon footprint, usually travelling 1,500
miles to the plate and emitting large amounts of
CO2.
• Each meal produces 275 pounds of waste a day,
making restaurants the worst aggressors of
greenhouse gas emissions in retail history.
• Utility costs are a big line item for restaurants,
accounting for a median of between 2.3 percent
and 3.6 percent of sales.
16
Menu Planning
• The menu may be the most important ingredient in
the restaurant’s success
• There are six main types of menus:
– A la carte menus—items are individually priced
– Table d’hôte menus—a selection of one or more
items for each course at a fixed price
– Du jour menus—lists the items “of the day”
– Tourist menus—used to attract tourists’ attention
– California menus—are so named because in some
California restaurants, guests may order any item
on the menu at any time of the day
– Cyclical menus—repeat themselves
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Menu Planning
• The many considerations in menu planning include:
– Needs and desires of guests
– Capabilities of cooks
– Equipment capacity and layout
– Consistency and availability of menu ingredients
– Price and pricing strategy (cost and profitability)
– Nutritional value
– Accuracy in menu
– Menu analysis (contribution margin)
– Menu design
– Menu engineering
– Chain menus
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Classifications of Restaurants
• There is not a single definition of restaurant
classification.
• Most experts agree there are two main
categories – independent and chain restaurants.
• Other categories include fine dining, quick
service, ethnic, family, dinner house, occasion,
casual, etc.
• Some restaurants may fall into more than one
category. For instance, a restaurant can be both
ethnic and quick service, such as Taco Bell.
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Classifications of Restaurants
• Individual restaurants are typically one or
more owners who are usually involved in the
day-to-day operation of the business.
• Chain restaurants comprise a group of
restaurants, each identical in market, concept,
design, service, food, and name.
• Part of the marketing strategy is to remove
uncertainty from the dining experience.
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Fine Dining
• A fine dining restaurant is one where a
good selection of menu items is offered – at
least fifteen or more different entrees
cooked to order and nearly all the food
being made on the premises from scratch
or fresh ingredients.
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Celebrity Restaurants
• Celebrities who may or may not have F & B
backgrounds own these operations.
• The operations are designed to be
entertaining, drawing heavily on the notoriety
(negative reputation) of their owners.
• Celebrity restaurants generally have an extra
zing (sound) to them…a winning combination
of design, atmosphere, food, and perhaps the
thrill of an occasional visit by the owner(s).
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Steak Houses
• The steak restaurant is still strong in spite of
recent nutritional concerns.
• To remain more competitive, many operations
are adding “value priced items” such as chicken
or fish.
• These items serve to attract more customers.
• The upscale steak house, like Morton’s of
Chicago, Ruth Chris’s, and Houston’s, continue to
attract the expense account and “occasion”
diners.
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Steak Houses
Introduction to Hospitality, 6e and Introduction to
Hospitality Management, 4e - Walker
© 2013 by Pearson Higher Education,
24 Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
Casual Dining
and Dinner House Restaurants
• The types of restaurants that can be included
in the casual dining restaurants category are:
midscale casual restaurants, family restaurants,
ethnic restaurants, theme, and quick-service/fastfood.
• The trend in dinner house restaurants has
been toward more casual dining.
• Many dinner house restaurants have a casual,
eclectic décor that may promote a theme.
25
Family Restaurants
• Family restaurants evolved from coffee shop
restaurants.
• Many are individually or family operated.
• Most often they offer an informal setting with
a simple menu and service designed to please
all of the family.
• The lines separating the various restaurants
and chains in the family segment are blurring
as operators upscale their concepts.
26
Ethnic Restaurants
• The majority of ethnic restaurants are
family owned and operated and sprang up
to cater to tastes of various ethnic groups.
• The fastest growing segment of ethnic
restaurants is Mexican in the USA.
27
Theme Restaurants
• Many theme restaurants are a combination of
a sophisticated specialty and several other
types of restaurants.
• They generally serve a limited menu but aim
to wow the guest by the total experience.
• People are attracted to theme restaurants
because they offer a total experience and a
social meeting place.
28
Quick Service/Fast Food
• This quick-service sector really drives the
industry.
• Quick-service or fast-food restaurants offer
limited menus.
• In an attempt to raise flat sales figures, more
quick-service restaurant (QSR) chains are
using co-branding at stores and nontraditional
locations, including highway plazas and
shopping centers.
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Hamburger
• The world’s greatest fast food success story is
undoubtedly McDonald’s.
• McDonald’s story is amazing because it’s larger
than the next three mega-chains combined –
Burger King, KFC, and Pizza Hut. McDonald’s is
now in 117 countries.
• Each of the hamburger restaurant chains has a
unique positioning strategy to attract their target
markets.
• Burger King hamburgers are flame broiled, and
Wendy’s uses fresh patties (meatballs).
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Pizza
• The pizza segment continues to grow due
to delivery services.
• The segment continues to grow by
marketing discounts and continuing its
very successful delivery business.
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Chicken
• Chicken has always been popular, in part
because it is inexpensive to prepare,
readily available, versatile, and perceived
as a healthier alternative to burgers.
• KFC dominates the chicken segment with a
worldwide total of more than 15,000
units.
32
Sandwich Restaurants
• Sandwich restaurants are a popular way for
entrepreneurs to enter the restaurant
business.
• Subway is a particularly successful chain in this
segment.
• Part of its success may stem from the strategy
of investing half of the chain’s advertising
dollars in national advertising.
33
Bakery Café
• Headed up by Panera Bread with the
mission of “a loaf in every arm” and the
goal of making specialty bread available to
consumers across the country.
• Panera focuses on the art and craft of
breadmaking.
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Trends in Restaurant Business
•
•
•
•
•
Demographics
Branding
Alternative outlets
Globalization
Diversification within
various dining
segments
• Shared locations,
• More points of
service
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End of Chapter Slides
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