introduction to hospitality, fourth edition john walker ©2006 pearson education, inc. pearson...

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