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

Introduction to Hospitality, Fourth EditionJohn Walker

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

THE RESTAURANT BUSINESS

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper 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

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper 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

Introduction to Hospitality, Fourth EditionJohn Walker

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

Chefs of Today Need to Possess:

Cooking skills Employability

traits People skills

Introduction to Hospitality, Fourth EditionJohn Walker

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

Figure 7-1Approximate Market Share of Restaurant Segments

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper 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 Morton’s Ruth Chris’s Roy Flemings

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper 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

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper 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

Introduction to Hospitality, Fourth EditionJohn Walker

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

Casual Dining and Dinner House Restaurants Mid-scale casual restaurants Family restaurants Ethnic restaurants Specialty restaurants

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper 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

Introduction to Hospitality, Fourth EditionJohn Walker

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

Quick ServiceHamburger

McDonald’s and Ray Kroc Added breakfast Expanding overseas Co-develop sites with gasoline companies $33 billion worldwide sales Drive thru

Introduction to Hospitality, Fourth EditionJohn Walker

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

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

Introduction to Hospitality, Fourth EditionJohn Walker

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

Quick Service Chicken

KFC is market leader Home delivery “3 in 1” restaurants

Other chains Church’s Chicken Popeye’s

Introduction to Hospitality, Fourth EditionJohn Walker

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

Other Types of Restaurants

Steakhouses New growth area Outback Steakhouse

Seafood restaurants Pancake restaurants Sandwich restaurants Family restaurants

Introduction to Hospitality, Fourth EditionJohn Walker

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

Ethnic Restaurants

Independently owned and operated Mexican restaurants are largest growth

segment Different types are developing

Thai Indian

Introduction to Hospitality, Fourth EditionJohn Walker

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

Trends

Demographics Branding Alternative outlets Globalization Continued diversification More twin and multiple locations More points of service Chains vs. Independents