Chapter 8 Restaurant Operations

After Reading and Studying This Chapter, You Should Be Able to: Apply the forecasting technique used in the chapter to measure expected volume of business Name and describe the various types of services Explain the important aspects of food production Describe the key points in purchasing, receiving, storing and issuing

After Reading and Studying This Chapter, You Should Be Able to: Explain the difference between controllable expenses and fixed costs Explain the components of an income statement and operating ratios Describe the important aspects of a control system for a restaurant operation Outline the functional areas and tasks of a foodservice/restaurant manager

Front of the House “Curbside Appeal” Organizational chart Dining Room Manager Hostess Servers Bussers

Restaurant Forecasting Budget projections Guest counts or covers Meal periods Day of week Special holidays Average guest check

Food and Beverage Occupancy Statistics Cover = A guest Number of Turns = Number of Covers Number of Seats

Average Restaurant Check Average check = Food and Beverage Sales Number of Covers

Service Guests want less formal, yet professional Training is necessary Servers are salespeople Suggestive selling

Types of Restaurant Service French Service Russian Service American Service

Balancing the FOH with the BOH Purchasing Receiving Storing and issuing Food production Stewarding Budgeting Accounting and control

Food Production Based on expected volume of business Prep work done prior to service times Kitchen layout Cooking line Teamwork

Kitchen/Food Production Staffing and scheduling Training and development Management involvement Employee recognition

Production Procedures Production sheets Count the product on hand (par levels) Determine production level Determine actual sales Key to consistency and quality of food

Purchasing Use of standards (product specs) System of control for theft and loss Par stock and reorder points Who will do the purchasing? Who will handle receiving and storage?

Receiving, Storing and Issuing Time and date delivery is to be made Point of control Authorized requisitions FIFO

Food Cost Percentage Opening inventory Purchases are added to opening inventory Subtract returns, spoilage and complimentary meals Subtract closing inventory Final number = Cost of goods sold

Food Cost Percentage Food Cost Percentage (cont.) Food Cost % Food Cost / Food Sales X 100 = Food Cost %

Typical Cost Percentages Labor costs 20 to 24% Food costs 28 to 32% Beverage costs 18 to 24%

Lease and Controllable Expenses Lease cost should be 5 to 8% of sales Typically also pay for insurance, utilities and commercial fees Controllable expenses are also variable expenses

Controls Loss of $20 billion a year due to theft and cash mishandling One out of every 3 employees will steal 35% of restaurants fail due to theft 75% of missing inventory is from theft 73% of all job applications are falsified Use of POS can solve some problems

Trends More flavorful food Increased takeout meals and home meal replacement Food safety and sanitation Guests becoming more sophisticated

Trends More food court restaurants Steakhouses are again popular Segments are splitting into tiers QSRs in convenience stores Difficulty in finding good employees