Introduction to Hospitality, Fourth EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
Chapter 7Restaurants
Reading and Studying This Chapter, You Should Be Know About:
Restaurants Classifications:
Independent Chain Franchises Fine Dining Casual Dining Quick Service/Fast Food
Trends
Restaurants Vital part of everyday life. Society spends about 50% of our
food dollar away from home. The word restaurant comes from the
French word meaning “restore.” Monsieur Boulanger set up what
many consider the first European restaurant of modern times in 1765.
Multi-billion dollar business employing 12.5 million people.
More About Restaurants 50% of the food dollar
is spent away from home
Multi-billion dollar business
Employs 11.7 million people
Restaurants The most popular meal
eaten away from home is lunch, which brings in about 50% of fast-food restaurant sales.
Two main categories: independent and chain restaurants.
Culinary Greats Auguste Escoffier
Patron Saint of Cooking Julia Child Emeril “BAM” Lagasse Bobby Flay Charlie Trotter
Considered America’s finest
Alice Waters Paul Prudhomme
Independent Restaurants Typically owned by one or more
owners, who are usually involved in the daily operation of the business.
Not affiliated with any national brand or name.
They offer the owner independence, creativity, and flexibility, but are accompanied by the risk of failing.
Chain Restaurants Groups of restaurants, each
identical in market, concept, design, service, food, and name.
The same menu, food quality, level of service, and atmosphere can be found in any one of the restaurants, regardless of location.
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