Restaurant Ownership Restaurant Management Risa McCann Fall, 2014

Why do people eat out? Food Social reasons Pleasure Business meetings Environmental

Why Open or Own a Restaurant? People open restaurant because it is interesting, challenging, and offers the potential of becoming wealthy! But to be successful in the industry one needs: considerable experience, lots of planning, solid financial support and lots of energy! Also one must be able to work well with others and be able to work hard!

ENERGY required? Excessive fatigue from long hours working in a restaurant can jeopardize a person’s emotional and physical well-being. Plus there is often little job security for managers and staff thereby adding an underlying element of stress.

Risks involved New foodservice businesses fail at a higher rate than new businesses in other industries. Many of these startups have successful concepts but lack the funds to stay open. Family-owned and operated generally are more successful because family will work longer hours for lower wages.

Statistics show… Restaurants that can stay open for 3 years have a higher success rate. Food trucks that are successful often lead to success brick and mortar establishments. Buying an existing restaurant reduces the risk of failure because changes can be implemented for success. Building a new restaurant requires the largest financial investment, offers the greatest potential for self-expression and personal fulfillment.

Things to consider Restaurateurs must be knowledgeable about: Food safety and sanitation Food preparation and service equipment Fire prevention Potential crime & security (theft, burglary) General liability & safety (damage on your property to customers) Engineering and maintenance

More things to consider Employee training and performance Employee management and human resources Menu planning and food production Purchasing and receiving of goods & equipment Accounting: profit and loss statements, cost control, inventory

Life Cycle of a restaurant Birth, growth, maturity, senescence (deterioration with age) and death. Restaurants often fall into decline due to a change in demographics or when the concept falls out of favor with the public. If a restaurant ins failing adapting the restaurant to fit the market can save it.

Concept of a restaurant Name, décor, atmosphere, menu, logo, style of service, location and everything else associated with the operation stems from, and should reflect, the original concept or image of the restaurant. The concept must entice the desired audience in a way that outshines the competition.

Theme Restaurants Theme restaurants are build around an idea with a focus on fun and fantasy. They have a short life cycle and often earn a large portion of their profits from merchandise sales.

Most popular types of Restaurants Types of Fast Food Burgers and/or hotdogs Sandwiches/subs pizza Chicken: fried, grilled, rotisserie, wings or fingers Tacos/fast Mexican food

Most popular types of Restaurants For casual dining Mexican/Southwestern/Tex-Mex Italian Asian(Chinese/Sushi, Indian, Thai, Vietnamese, Mongolian BBQ Mediterranean (Greek, Spanish, Turkish) Middle Eastern

The Four P’s of Marketing Price – should be within the range expected by the target market yet still turn a profit Product – excellent food, service and atmosphere Place – visible, accessible and convenient Promotion – advertising and promoting the restaurant

Professional Advice 1. This is a business, you are there to make money. 2. Keep it simple, do not ‘over-technique’ the food 3. Collaborate with others in the industry 4. Eat out – you are only as good as what you are exposed to! Taste new foods 5. Learn to talk about food- its bitterness, creaminess, its appearance, aroma, etc. 6. Consider sister restaurants, cobranding, or popups