1. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 THE RESTAURANT BUSINESS

2. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 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

3. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 More About Restaurants 50% of the food dollar is spent away from home Multi-billion dollar business Employs 11.7 million people

4. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Chefs of Today Need to Possess: Cooking skills Employability traits People skills

5. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Figure 7-1 Approximate Market Share of Restaurant Segments

6. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 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 Mortons Ruth Chriss Roy Flemings

7. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 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

8. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Other Restaurant Classifications Theme restaurants Celebrity-owned Owned by celebrities such as Michael Jordan, Dan Marino, Steven Segal, Gloria Estefan, Denzel Washington All Star Café House of Blues

9. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Casual Dining and Dinner House Restaurants Mid-scale casual restaurants Family restaurants Ethnic restaurants Specialty restaurants

10. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Specialty Restaurants Quick Service Theme related $111 billion annual sales Better known as fast food Limited menus Guest helps defray labor costs

11. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Quick Service Hamburger McDonalds and Ray Kroc Added breakfast Expanding overseas Co-develop sites with gasoline companies $33 billion worldwide sales Drive thru

12. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Quick Service Pizza Local and regional chains all with delivery service $20 billion market Four major chains Pizza Hut Dominos Papa Johns Little Caesars

13. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Quick Service Chicken KFC is market leader Home delivery 3 in 1 restaurants Other chains Churchs Chicken Popeyes

14. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Other Types of Restaurants Steakhouses New growth area Outback Steakhouse Seafood restaurants Pancake restaurants Sandwich restaurants Family restaurants

15. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Ethnic Restaurants Independently owned and operated Mexican restaurants are largest growth segment Different types are developing Thai Indian

16. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Trends Demographics Branding Alternative outlets Globalization Continued diversification More twin and multiple locations More points of service Chains vs. Independents