Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Chapter 8 Restaurant.

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Chapter 8Restaurant Operations

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

After Reading and Studying This Chapter, You Should Be Able to:

Apply the forecasting technique used in the chapter to measure expected volume of business

Name and describe the various types of services

Explain the important aspects of food production

Describe the key points in purchasing, receiving, storing and issuing

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

After Reading and Studying This Chapter, You Should Be Able to:

Explain the difference between controllable expenses and fixed costs

Explain the components of an income statement and operating ratios

Describe the important aspects of a control system for a restaurant operation

Outline the functional areas and tasks of a foodservice/restaurant manager

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Front of the House

“Curbside Appeal” Organizational chart

Dining Room Manager Hostess Servers Bussers

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Restaurant Forecasting

Budget projections Guest counts or covers

Meal periods Day of week Special holidays

Average guest check

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Food and Beverage Occupancy Statistics

Occupancy Statistics Cover = A guest

Number of Turns = Number of Covers

Number of Seats

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Average RestaurantCheck

Average check =

Food and Beverage Sales Number of Covers

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Service Guests want less formal, yet

professional Training is necessary Servers are salespeople Suggestive selling

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Types of RestaurantService

French Service Russian Service American Service

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Balancing the FOH with the BOH Purchasing Receiving Storing and issuing Food production Stewarding Budgeting Accounting and control

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Food Production

Based on expected volume of business

Prep work done prior to service times

Kitchen layout Cooking line

Teamwork

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Kitchen/Food Production

Staffing and scheduling Training and development Management involvement Employee recognition

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Production Procedures

Production sheets Count the product on hand (par

levels) Determine production level Determine actual sales

Key to consistency and quality of food

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Purchasing

Use of standards (product specs) System of control for theft and loss Par stock and reorder points Who will do the purchasing? Who will handle receiving and

storage?

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Receiving, Storing and Issuing

Time and date delivery is to be made

Point of control Authorized requisitions FIFO

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Food Cost Percentage Opening inventory Purchases are added to opening

inventory Subtract returns, spoilage and

complimentary meals Subtract closing inventory Final number = Cost of goods sold

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Food Cost Percentage

Food Cost Percentage (cont.)

Food Cost / Food Sales X 100 =

Food Cost %

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Typical Cost Percentages

Cost Percentages Labor costs 20 to 24% Food costs 28 to 32% Beverage costs 18 to 24%

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Lease and Controllable Expenses

Expenses Lease cost should be 5 to 8% of sales Typically also pay for insurance,

utilities and commercial fees Controllable expenses are also

variable expenses

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Controls Loss of $20 billion a year due to theft

and cash mishandling One out of every 3 employees will steal 35% of restaurants fail due to theft 75% of missing inventory is from theft 73% of all job applications are falsified Use of POS can solve some problems

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Trends More flavorful food Increased takeout meals and

home meal replacement Food safety and sanitation Guests becoming more

sophisticated

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Trends

More food court restaurants Steakhouses are again popular Segments are splitting into tiers QSRs in convenience stores Difficulty in finding good

employees