© 2007, Educational Institute Chapter 4 Understanding the Restaurant Industry Hospitality Today: An Introduction Sixth Edition (103TXT or 103CIN)

© 2007, Educational Institute 1 Competencies for Understanding the Restaurant Industry 1.Describe in general terms the size of the restaurant industry, list restaurant industry segments, and describe eating and drinking places. 2.Describe food service outlets in lodging operations; the transportation, recreational, business and industry, educational, health care, and retail food service markets; corrections and military food service; and contract food management companies. (continued)

© 2007, Educational Institute 2 3.Summarize some of the pitfalls of starting a new restaurant, cite reasons restaurants may fail, and outline some of the issues involved in starting a new restaurant, such as developing a concept, selecting a site, and having a feasibility study done. (continued) Competencies for Understanding the Restaurant Industry

© 2007, Educational Institute 3 Restaurant Industry Segments Eating and drinking places Lodging operations Transportation market Recreational market Business and industry market Educational market Health care market Retail market Corrections food service Military food service Contractors

© 2007, Educational Institute 4 Full-Service Restaurants Price Luxury, high-priced, mid-priced, low-priced Menu Steak and seafood houses, ethnic, regional, vegetarian Atmosphere Result of architecture, decor, and setting (continued)

© 2007, Educational Institute 5 Quick-Service Restaurants Narrow selection of food Focus on convenience—speedy preparation and delivery Limited service (continued)

© 2007, Educational Institute 6 Why Restaurants Fail Lack of business knowledge Lack of technical knowledge Lack of sufficient working capital