1. Concept, Location, and Design
Chapter 3
Concept, Location, and Design

2. Objectives
After reading and studying this chapter, you should be able to:
Recognize benefits of a good restaurant name
Explain the relationship between concept and market
Explain why a restaurant concept might fail
Discuss some qualities of successful restaurant concepts

3. Objectives (cont’d.)
Identify factors to consider when choosing a restaurant’s location
Identify factors to consider when developing a restaurant concept
List restaurant knockout criteria

4. Restaurant Concepts Matrix of ideas
Constitute what will be perceived as the restaurant’s image
Should fit a definite target market
Distinguishes the establishment as D&B (different and better), than the competition
May be necessary to modify as competition arises
Best concepts are often the result of learning from mistakes

5. Restaurant Concepts (cont’d.)
Tips:
Make it different enough from the competition
Do not let it be too far ahead of current times
Do not price your menu out of the market
Pay attention to food costs
Make your concept profitable
Good concepts are on-trend
Make your concept easily identifiable
Take inspiration from others and love your concept
Make sure the concept and location fit

6. Concepts: Clear Cut or Ambiguous?
Many restaurants lack clear cut concepts
No integration of the atmospherics
Everything should fit together:
Signs
Uniforms
Menus
Décor
Concept is strengthened if it establishes an identity

7. Protecting a Restaurant’s Name
Lawsuits over names happen
If another party uses your name, you should take action
Loss of the right to a name means:
Changing signs, menus, promotional material, etc.
Court costs and, perhaps, loss of power that has been built into the name by the superior operator

8. The McDonald’s Concept and Image
Greatest restaurant success story of all time
Concept: all-American family restaurant
Clean
Wholesome
Inexpensive
Fun
Simple, straightforward menu
Key to effectiveness of McDonald’s advertising

9. Defining the Concept and Market
Selecting a concept
Define it precisely in the context of which markets will find it appealing
Market may constitute a small percentage of the total population
Coffee shop with counter service appeals to interstate travelers
There must be a market gap
Need for the concept offered

10. Figure 3.1: The concept and market comprise the hub around which the restaurant develops

11. Successful Restaurant Concepts
Examples:
T.G.I. Friday’s
Spago
Planet Hollywood
Lettuce Entertain You Enterprises
Corner Bakery Café
Hard Rock Café
Union Square Hospitality Group
Parallel 33

12. Concept Adaptation Concepts that have not been tested
Most need some adaptation to the particular market
Concept development
Always has been important in the industry
Becoming more so now that dining districts are developing in almost every community
Different menus and prices attract different markets

13. Changing or Modifying a Concept
Many highly successful concepts that have worked well for years gradually turn sour
Customer base and demographics change
Morale and personal service may decline
Copy and improve
Every concept is built on ideas from other concepts
Modifications and changes, new combinations, and changes in design, layout, menu, and service

14. Restaurant Symbology
Includes the logo, line drawings, linen napkins, and service uniforms
All helps to create the atmosphere
César Ritz: waiters dressed in tails
Chart House: servers dressed in Hawaiian attire
McDonald’s: Ronald McDonald
Take cues from larger companies to come up with symbols and signs that reflect the restaurant’s concept

15. When a Concept Fails Concept can be changed to fit the market
Conversion can take place while the restaurant is doing business
Name, decor, and menu can be changed
Customers who have left may return if the new concept appeals to them
New concept may better appeal to the same market
Siphon customers away from the competition

16. Multiple-Concept Chains
Can have five or more restaurants in the same block
Each competing with the others
Each acquiring a part of the restaurant market
Tricon Global Restaurants, Inc.
Largest of all restaurant companies
Three concepts: KFC, Taco Bell, and Pizza Hut

17. 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
Contracts for bidding created

18. Sequence of Restaurant Development (cont’d.)
Contractor selected
Construction or remodeling begins
Furnishing and equipment ordered
Key personnel hired
Hourly employees selected and trained
Restaurant opened

19. Planning Services
Many aspects of design are carried out by other parties
Designers perform the following services:
Basic floor plan and seating layout
Equipment schedule
Electrical requirements
Plumbing requirements
Equipment
Equipment elevations
Refrigeration requirements
Exhaust and in-take requirements

20. Common Denominators Some common factors:
Human needs met by the restaurant
Menu prices and cost per seat
Degree of service offered
Space provided for each customer
Time of eating and seat turnover
Square-foot requirements
Advertising and promotions expenditures
Productivity per employee
Labor and food costs

21. Planning Decisions Include: Who are the target markets, the customers?
Buy, build, lease or franchise?
Food preparation from scratch or from convenience items?
A limited or extended menu?
How much service: limited or full?

22. 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?

23. Profitability
Most profitable restaurants are in quick-service category
Predominantly minimum-wage personnel
High sales volume
The use of systems
Excellent marketing

24. The Mission Statement Encapsulates objectives for the business
Can be brief, encompassing, and/or explicit
Elements:
Purpose of the business and the nature of what it offers
Business goals, objectives, and strategies
Philosophies and values followed by the business and employees

25. Concept and Location Good location depends on the:
Kind of restaurant
Roadside restaurants
Clientele
Professionals
Size of potential market
Price structure
Criteria for locating a restaurant
Restaurant Business
Annual Restaurant Growth Index

26. Location Criteria Includes: 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

27. Some Restaurants Create Their Own Location
Dinner or family-style restaurants
Need not place the same high priority on convenience of location
Necessary for casual and quick-service establishments
Sources of location information
Location decisions
Based on asking the right questions and securing the right information
Real estate agents are prime sources
Other sources: chamber of commerce, banks, town or city planner, other restaurant owners, etc.

28. Knockout Criteria Includes: Proper zoning Drainage, sewage, utilities
Minimal size
Short lease
Excessive traffic speed
Access from a highway or street
Visibility from both sides of the street

29. Other Location Criteria
Includes:
Market population
Family income
Growth or decline of the area
Competition from comparable restaurants
Restaurant row or cluster concept

30. Suburban, Nook-and-Cranny, and Shopping Mall Locations
Restaurants do well in a variety of locations
Depends on menu and style of operation
Additional considerations:
Minimum population needed
Downtown versus suburban
Average travel time to reach restaurants
Matching location with concept
Takeover locations
Restaurant topographical surveys
Cost of the location

31. Visibility, Accessibility, and Design Criteria
Visibility and accessibility
Important criteria for any restaurant
Visibility: extent to which the restaurant can be seen for a reasonable amount of time
Accessibility: ease of arrival
Design
Needs to correlate with the theme and includes:
Space allocation
Lighting and color
Layout of the dining area

32. The End