Chapter 7 The Restaurant Business
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Introduction to Hospitality, Fourth EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
Chapter 7The Restaurant Business
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
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
More About Restaurants 50% of the food dollar
is spent away from home
Multi-billion dollar business
Employs 11.7 million people
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
Culinary Greats Auguste Escoffier
Patron Saint of Cooking Julia Child Emeril “BAM” Lagasse Bobby Flay Charlie Trotter Alice Waters Paul Prudhomme Nobu Matsuhisa Gordon Ramsey Wolfgang Puck
Chefs of Today Need to Possess:
Cooking skills Employability traits People skills
Jeffrey VigillaExecutive Chef
Hilton Hawaiian VillageWaikiki
Approximate Market Share of Restaurant Segments
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
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
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
Casual Dining and Dinner House Restaurants
Mid-scale casual restaurants
Family restaurants Ethnic restaurants Specialty restaurants
Specialty Restaurants Quick Service
Theme related $111 billion annual sales Better known as fast food Limited menus Guest helps defray labor costs
Quick ServiceHamburger
McDonald’s and Ray Kroc Added breakfast Expanding overseas Co-develop sites with gasoline companies $33 billion worldwide sales Drive thru
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
Quick Service Chicken
KFC is market leader Home delivery “3 in 1”
restaurants Other chains
Church’s Chicken Popeye’s
Other Types of Restaurants Steakhouses
New growth area Outback Steakhouse
Seafood restaurants Pancake restaurants Sandwich restaurants Family restaurants
Ethnic Restaurants Independently owned and
operated Mexican restaurants are
largest growth segment Different types are
developing Thai Indian
Trends Demographics Branding Alternative outlets Globalization Continued diversification More twin and multiple
locations More points of service More hyper-theme
restaurants Chains vs. Independents
Hawaii All Star Chefs Roy Yamaguchi Sam Choy Chef Mavro Alan Wong Russell Siu Peter Merriman
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