1. Chapter 7 The Restaurant Business

2. 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

3. 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

4. More About Restaurants
50% of the food dollar is spent away from home
Multi-billion dollar business
Employs 11.7 million people

5. 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

6. Culinary Greats Auguste Escoffier Julia Child Emeril “BAM” Lagasse
Patron Saint of Cooking
Julia Child
Emeril “BAM” Lagasse
Bobby Flay
Charlie Trotter
Alice Waters
Paul Prudhomme
Nobu Matsuhisa
Gordon Ramsey
Wolfgang Puck

7. Chefs of Today Need to Possess:
Cooking skills
Employability traits
People skills
Jeffrey Vigilla Executive Chef
Hilton Hawaiian Village Waikiki

8. Approximate Market Share of Restaurant Segments

9. 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
Morton’s
Ruth Chris’s
Roy Flemings

10. 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

11. Other Restaurant Classifications
Theme restaurants
Celebrity-owned
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

12. Casual Dining and Dinner House Restaurants
Mid-scale casual restaurants
Family restaurants
Ethnic restaurants
Specialty restaurants

13. Specialty Restaurants Quick Service
Theme related
$111 billion annual sales
Better known as fast food
Limited menus
Guest helps defray labor costs

14. Quick Service Hamburger
McDonald’s and Ray Kroc
Added breakfast
Expanding overseas
Co-develop sites with gasoline companies
$33 billion worldwide sales
Drive thru

15. Quick Service Pizza
Local and regional chains all with delivery service
$20 billion market
Four major chains
Pizza Hut
Domino’s
Papa Johns
Little Caesars

16. Quick Service Chicken KFC is market leader Other chains Home delivery
“3 in 1” restaurants
Other chains
Church’s Chicken
Popeye’s

17. Other Types of Restaurants
Steakhouses
New growth area
Outback Steakhouse
Seafood restaurants
Pancake restaurants
Sandwich restaurants
Family restaurants

18. Ethnic Restaurants Independently owned and operated
Mexican restaurants are largest growth segment
Different types are developing
Thai
Indian

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

20. Hawaii All Star Chefs Roy Yamaguchi Sam Choy Chef Mavro Alan Wong
Russell Siu
Peter Merriman