Chapter 8 Restaurant Operations

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper 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
2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Introduction to Hospitality, Fourth Edition John Walker

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
2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Introduction to Hospitality, Fourth Edition John Walker

Front of the House

Curbside Appeal Organizational chart

Dining Room Manager Hostess Servers Bussers

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper 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 Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper 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 Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Average Restaurant Check

Average check =
Food and Beverage Sales Number of Covers

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Service

Guests want less formal, yet professional Training is necessary Servers are salespeople Suggestive selling

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Types of Restaurant Service

French Service Russian Service

American Service

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Balancing the FOH with the BOH

Purchasing Receiving Storing and issuing Food production Stewarding Budgeting Accounting and control
2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Introduction to Hospitality, Fourth Edition John Walker

Food Production

Based on expected volume of business Prep work done prior to service times Kitchen layout

Cooking line

Teamwork

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Kitchen/Food Production

Staffing and scheduling Training and development Management involvement Employee recognition

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper 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 Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper 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?
2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Introduction to Hospitality, Fourth Edition John Walker

Receiving, Storing and Issuing

Time and date delivery is to be made Point of control Authorized requisitions FIFO

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper 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
2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Introduction to Hospitality, Fourth Edition John Walker

Food Cost Percentage

Food Cost Percentage (cont.)

Food Cost / Food Sales X 100 =

Food Cost %

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Typical Cost Percentages

Cost Percentages

Labor costs Food costs Beverage costs

20 to 24% 28 to 32% 18 to 24%

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper 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 Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper 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
2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Introduction to Hospitality, Fourth Edition John Walker

Trends

More flavorful food Increased takeout meals and home meal replacement Food safety and sanitation Guests becoming more sophisticated

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper 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

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458