Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Chapter 7 The Restaurant Business

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ After Reading and Studying This Chapter, You Should Be Able to: Describe the different characteristics of chain and independent restaurants Identify some of the top chain and independent restaurants List the classifications of restaurants Differentiate the characteristics of chain and independent restaurants

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Restaurants Vital part of everyday life Patronized several times a week for social purposes as well as to eat and drink Offer society a place to relax and restore Offer an opportunity to enjoy the company of friends, family, colleagues and associates

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ More About Restaurants 50% of the food dollar is spent away from home Multi-billion dollar business Employs 11.7 million people

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ French Cuisine and Its Foundation The French are credited with culinary art, largely due to two main events French Revolution Thomas Jefferson French cuisine and its foundations Mother sauces Nouvelle cuisine (lighter cuisine) American Adaptation Infusion Blending of flavors and techniques of two cuisines

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Culinary Greats Auguste Escoffier Patron Saint of Cooking Julia Child Emeril BAM Lagasse Bobby Flay Charlie Trotter Considered Americas finest Alice Waters Paul Prudhomme

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Chefs of Today Need to Possess: Cooking skills Employability traits People skills

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Figure 7-1 Approximate Market Share of Restaurant Segments

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Full-Service Luxury Restaurants National Restaurant Association Good selection of menu items made on premises Haute cuisine Fine Dining Hall of Fame Le Bec Fin Spago There are few national chains Mortons Ruth Chriss Roy Flemings

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Reasons for the Small Number of Luxury Restaurants Labor intensive and require a higher level of skilled labor Small percentage can afford high prices Overhead costs may not be reasonable Economies of scale are not as easily reaped Consistency and quality are not easy to maintain Limited market appeal

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Other Restaurant Classifications Theme restaurants Celebrity-owned Owned by celebrities such as Michael Jordan, Dan Marino, Steven Segal, Gloria Estefan, Junior Seau, Denzel Washington Seaus San Diego All Star Café House of Blues

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Casual Dining and Dinner House Restaurants Mid-scale casual restaurants Family restaurants Ethnic restaurants Specialty restaurants

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Specialty Restaurants Quick Service Theme related $111 billion annual sales Better known as fast food Limited menus Guest helps defray labor costs

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Quick Service Hamburger McDonalds and Ray Kroc Added breakfast Expanding overseas Co-develop sites with gasoline companies $33 billion worldwide sales Drive thru

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Quick Service Pizza Local and regional chains all with delivery service $20 billion market Four major chains Pizza Hut Dominos Papa Johns Little Caesars

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Quick Service Chicken KFC is market leader Home delivery 3 in 1 restaurants Other chains Churchs Chicken Popeyes

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Other Types of Restaurants Steakhouses New growth area Outback Steakhouse Seafood restaurants Pancake restaurants Sandwich restaurants Family restaurants

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Ethnic Restaurants Independently owned and operated Mexican restaurants are largest growth segment Different types are developing Thai Indian

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Trends Demographics Branding Alternative outlets Globalization Continued diversification More twin and multiple locations More points of service More hyper-theme restaurants Chains vs. Independents