Chapter 7 PowerPoint

Chapter 7 Restaurants

Introduction to Hospitality, Fourth Edition John Walker

©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Reading and Studying This Chapter, You Should Be Know About:  

Restaurants Classifications:      

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Independent Chain Franchises Fine Dining Casual Dining Quick Service/Fast Food

Trends

Restaurants  

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Vital part of everyday life. Society spends about 50% of our food dollar away from home. The word restaurant comes from the French word meaning “restore.” Monsieur Boulanger set up what many consider the first European restaurant of modern times in 1765. Multi-billion dollar business employing 12.5 million people.

More About Restaurants 

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50% of the food dollar is spent away from home Multi-billion dollar business Employs 11.7 million people

Restaurants 

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The most popular meal eaten away from home is lunch, which brings in about 50% of fast-food restaurant sales. Two main categories: independent and chain restaurants.

Culinary Greats 

Auguste Escoffier 

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Julia Child Emeril “BAM” Lagasse Bobby Flay Charlie Trotter 

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Patron Saint of Cooking

Considered America’s finest

Alice Waters Paul Prudhomme

Independent Restaurants 

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Typically owned by one or more owners, who are usually involved in the daily operation of the business. Not affiliated with any national brand or name. They offer the owner independence, creativity, and flexibility, but are accompanied by the risk of failing.

Chain Restaurants 

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Groups of restaurants, each identical in market, concept, design, service, food, and name. The same menu, food quality, level of service, and atmosphere can be found in any one of the restaurants, regardless of location.

Approximate Market Share of Restaurant Segments

Full-Service Luxury Restaurants    

National Restaurant Association Good selection of menu items made on premises Haute cuisine Fine Dining Hall of Fame  

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Le Bec Fin Spago

There are few national chains   

Morton’s Ruth Chris’s Roy Flemings

Reasons for the Small Number of Luxury Restaurants 

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Labor intensive and require a higher level of skilled labor Small percentage can afford high prices Overhead costs may not be reasonable Economies of scale are not as easily reaped Consistency and quality are not easy to maintain Limited market appeal

Other Restaurant Classifications  

Theme restaurants Celebrity-owned 

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Owned by celebrities such as Michael Jordan, Dan Marino, Steven Segal, Gloria Estefan, Junior Seau, Denzel Washington Seau’s San Diego All Star Café House of Blues

Michael Jordan’s

Casual Dining and Dinner House Restaurants 

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Mid-scale casual restaurants Family restaurants Ethnic restaurants Specialty restaurants

Specialty Restaurants Quick Service     

Theme related $111 billion annual sales Better known as fast food Limited menus Guest helps defray labor costs

Quick Service Hamburger 

McDonald’s and Ray Kroc     

Added breakfast Expanding overseas Co-develop sites with gasoline companies $33 billion worldwide sales Drive thru

Quick Service Pizza 

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Local and regional chains all with delivery service $20 billion market Four major chains    

Pizza Hut Domino’s Papa Johns Little Caesars

Quick Service Chicken 

KFC is market leader 

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Home delivery “3 in 1” restaurants

Other chains  

Church’s Chicken Popeye’s

Other Types of Restaurants 

Steakhouses  

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New growth area Outback Steakhouse

Seafood restaurants Pancake restaurants Sandwich restaurants Family restaurants

Ethnic Restaurants 

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Independently owned and operated Mexican restaurants are largest growth segment Different types are developing  

Thai Indian

Trends      

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Demographics Branding Alternative outlets Globalization Continued diversification More twin and multiple locations More points of service More hyper-theme restaurants Chains vs. Independents