1. CHAPTER THREE: Concept, Location, and Design
Benefits of a Good Restaurant Name
The Relationship Between Concept and Market
Reasons Restaurant Concept Might Fail
Qualities of Successful Restaurants
Location Factors to Consider
Factors in Developing a Concept
Knockout Criteria

2. WHAT IS A CONCEPT?
The matrix of ideas that constitutes what will be perceived as the restaurant’s image

3. CONCEPTS… Provide the framework on which to hang the image
Apply to any foodservice operation
Should fit a definite target market
Distinguish the establishment as D&B, different and better, than the competition
May be necessary to modify as competition arises

4. CONCEPTS INCLUDE… Public relations Advertising Promotions Building
Curbside appeal
Décor
Menu
Staff
Music
Style of operation

5. SYMBOLS Aspects of the concept Seen in the: Sign Logo Colors
Upholstery
Food
Food presentation

6. CONCEPT EXAMPLES TACO BELL
The word “Taco” is synonymous with Mexican food
THE SPAGHETTI FACTORY
Suggests quick service, low costs, and a fun place for Italian food
THE SEVEN GRAINS
Suggests a healthy-food restaurant
LONG JOHN SILVER’S
Suggests seafood
GRANDMA’S KITCHEN
Suggests a homey, friendly place

7. DEFINING THE CONCEPT AND MARKET
Concept should fit the market
Coffee shop with counter service would appeal to interstate travelers
Restaurant cannot exist without a market
Must be a market gap, or need for the idea

8. THE MARKET/RESTAURANT RELATIONSHIP
The concept and market comprise the hub around which the restaurant develops
The concept and the market are central to the restaurant, supported by the menu, prices, service, quality, location, atmosphere, food, and management

9. SEQUENCE OF RESTAURANT DEVELOPMENT: from concept to opening
Business marketing initiated
Layout and equipment planned
Menu determined
First architectural sketches made
Licensing and approvals sought
Financing arranged
Working blueprints developed

10. SEQUENCE OF RESTAURNT DEVELOPMENT CONT’D
Contracts let for bidding
Contractor selected
Construction or remodeling begun
Furnishing and equipment ordered
Key personnel hired
Hourly employees selected and trained
Restaurant opened

11. PLANNING SERVICES
Many aspects of restaurant design are carried out by other
parties, hired by the owners and management. The designer,
for example, performs the following services:
Basic floor plan
Equipment schedule
Electrical requirements
Plumbing requirements
Equipment
Equipment elevations
Refrigeration requirements
Exhaust and in-take requirements

12. COMMON DENOMINATORS Some factors may be common to all
kinds of restaurants:
Human needs met by the restaurant
Menu prices
Degree of service offered
Space provided for each customer
Rate of seat turnover
Advertising and promotions expenditures
Productivity per employee
Labor cost
Food cost

13. CUSTOMER SPACE / TURNOVER RATE

14. PLANNING DECISIONS THAT RELATE TO CONCEPT DEVELOPMENT
Who are the target customers?
Buy / Build / Lease / Franchise?
Food preparation from scratch or from convenience items?
A limited menu or an extended menu?
Service: limited or full?

15. PLANNING DECISIONS (CONT’D)
Young part-time or older career employees?
Paid advertising or word-of-mouth advertising?
Grand opening or soft opening?
Electricity or gas?

16. ELEMENTS OF THE MISSION STATEMENT
Purpose of enterprise
It’s business strategy
Behavior standards it will follow
Values that the management and employees will hold foremost

17. MISSION STATEMENT Chili’s Grill and Bar
We aim to be a premier growth company with a balanced approach toward people, quality and profits: to cultivate customer loyalty by listening to, caring about, and providing customers with a quality dining experience; to enhance a high level of ethics, excellence, innovation and integrity; to attract, develop, and retain a superior team; to be focused, sensitive and responsive to our employees and their environment: and to enhance long-term shareholder wealth

18. LOCATION CRITERIA Demographics of the area
Visibility from a major highway
Accessibility from a major highway
Number of potential customers passing by the restaurant
Distance from the potential market
Desirability of surroundings
Market population
Family income
Growth or decline of area
Competition from comparable restaurants

19. KNOCKOUT CRITERIA Proper zoning Drainage, sewer, utilities
Minimal size
Short lease
Excessive traffic speed
Access from a highway or street
Visibility from both sides of street

20. DESIGN CRITERIA Design needs to correlate with the theme
Space allocation - front of the house and backstage
Lighting (single most important element)
Color (in tandem with lighting)
Layout of the dining area

21. The End