Chapter Two: Kinds and Characteristics of Restaurants and Their Owners

• Various Kinds and Characteristics of Restaurants

• Chain vs.. Independent Restaurant Operations

• Lives and Contributions of Prominent Past and Present Restaurateurs

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TYPES OF RESTAURANTS

Quick-ServiceSteak HouseFine-Dining

Ethnic Theme

Chef-OwnerBakery-Cafe

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QUICK-SERVICE

• First fast food restaurant in 1870s

• Quick food production time is key

• Goal is to serve maximum number of customers in minimum amount of time

McDonald’s and Burger King

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QUICK-SERVICE CONT’D

• Computers are used to anticipate sales volume

• Precooked or partially cooked foods are ordered and then finished off to decrease production time

• Time, temperature, and meat thickness are used to determine doneness

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STEAK HOUSES

• Limited menu caters to a well-identified market

• Service ranges from walk-up to high end

• High food costs (as high as 50%) and low labor costs (as low as 12%)

• Majority of customers are men

Lone Star and Outback Steakhouse

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STEAK HOUSES CONT’D

High-end operations:• may have sales of $5m or

more per year• greater investment in

building, fixtures and equipment

• serve well-aged beef• high percentage of wine and

hard liquor sales

Low-end operations:• sales of $500,000 per year• beer and moderately priced

wine

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TYPES OF STEAK• Steaks vary from a few ounces to well over 1lb• Tenderloin is most tender, runs along backbone

(most popular)• T-bone is cut from small end of loin• Porterhouse contains T-bone and piece of tenderloin• Wet aged: meat that’s wrapped in cryovac, sealed,

and refrigerated for several days• Dry aged: controlled temperature, humidity, and air

flow

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FINE DINING

• Found in wealthy areas • Cuisine and service is

expensive and leisurely• Usually proprietor- or partner-

owned• Restaurants are small, usually

less than 100 seats• Very low table turnover (can

be <1)• Customers dine on special

occasions and to impress business relations

Daniel and Charlie Trotter’s

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ECONOMICS OF FINE DINING

• Expensive, average check runs $60 or more• High rent• Large PR budgets• High labor costs due to the necessity of highly

experience employees• Much of profits come from wine• Tables, linen, dishes, décor very costly

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FINE DINING MENUS• Expensive, imported items

– Foie Gras– Caviar– Truffles

• Presentation very important• Focus on visual, auditory,

and psychological experience

• Extensive, expensive wine list

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THEME

• Built around an idea emphasizing fun and fantasy

• Glamorize sports, travel, eras in time

• Celebrities are central to many theme restaurants (some are owners)

Planet Hollywood and Hard Rock Cafe

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THEME LIFE CYCLE

• Short life cycle compared to other types popular of restaurants

• Do well outside major tourist attractions

• Locals tire of the hype when food is often poor

• Most of the profits come from merchandise, not food sales

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THEME COSTS• Require large investments

and budgets• Often fail because too much

is spent on image and not enough on food and service

• High capital and operational costs

• Extreme décor can be very pricey

• Often require excessive labor– Curators, consultants, animal

handlers, etc.

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THEME CATEGORIES

• Hollywood and the movies

• Sports and sporting events

• Time- the good old days

• Travel- trains, planes, and steamships

• Ecology and the world around us

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ETHNIC

• Many types– Mexican, Italian, Moroccan, Chinese,

Thai, etc, or combinations several

• Often owned or operated by persons of ethnic background

• Feature dishes native to the country

• Can be argued that every ethnic restaurant is also a theme restaurant, with the national culture as the theme

Olive Garden and Panda Express

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• Part of American tradition of family restaurants– Husband is operator/chef – Wife is hostess– Children serve, bus, etc.

• Publicity is key in gaining attention

• Wolfgang Puck best known– Owns Spago in Beverly

Hills, with his wife as partner

CHEF-OWNERSpago and Emeril’s

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• Having an experienced, highly motivated person in charge

• Name often already known and synonymous with great food

• Can be very profitable

ADVANTAGES TO CHEF OWNERSHIP

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DISADVANTAGES TO CHEF OWNERSHIP

• Chefs often less knowledgeable about “the numbers”

• Can often make more money working as a chef in a name restaurant

• Possibility of marital or partner dispute

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BAKERY-CAFE

• Different than a bakery in that they serve soups, salads, and sandwiches

• Mainly quick-service establishments

• Many bake off goods that are prepared elsewhere or do final proofing after receiving goods

• Use central commissary systems

• Variety of setting, products, and ambiance

Panera Bread Company and La Madeleine

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The End