Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc....

Restaurant Operations Management: Principles and Practices © 2006 Pearson Education, Inc.

Ninemeier/Hayes Upper Saddle River, NJ 07458

History of Restaurants in Europe

• People ate together in large groups 12,000 years ago.

• Food was sold in public market places 7,000 years ago.

• Greek and Roman banquets occurred 2,500 years ago.

• By the 1500’s, quantity food was produced primarily in religious institutions, and wealthy persons employed chefs.

• Before the 1600’s, persons living along trade routes were the first hospitality entrepreneurs as they opened their houses to travelers.

• Separate eating places began in Europe in the mid-1700’s.

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History of Restaurants in United States • Taverns and inns became popular in cities during the 1800’s.

• Most luxurious dining was offered by large hotels.

• By the late 1800’s, public eating places were almost everywhere and offered a wide variety of food items.

• One of the first restaurant chains was that of Fred Harvey (Kansas) in the mid-1870’s.

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History of Restaurants in United States (continued)

• By 1920, numerous eating places were located near major highways.

• In the 1940’s, frozen foods became popular.

• McDonald’s restaurant chain began in the 1950’s.

• In the 1970’s, wines increased in popularity.

• The “modern” restaurant era began in the early 1980’s as Americans began to eat out more frequently.

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*Including sporting and cultural events, recreation and geographic tours.**Including stores, markets and shopping malls.

Travel/TourismIndustry

Hospitality

Accommodations (Lodging)

Other HospitalityOperations

Foodservices

TransportationServices

DestinationAlternatives

Activities*Retail

Shops**

Components of the Travel/Tourism Industry

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Close Look at the Hospitality Industry

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Foodservices Segment

CommercialOperations

Non-CommercialOperations

Self-Operated Control Management Company-Operated

Restaurants

Let’s Review Some Basics

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Types of Restaurants

Restaurants

Upscale(High-Check

Average)

CasualService

(Mid-Scale)

FamilyService

Quick-Service

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Kitchen Organization: Upscale Restaurant

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*There is generally one assistant chef for each work shift and, often, for each food preparation (kitchen) area within a multiple-kitchen property.

Executive Chef

Assistant (Sous)Chef*

Baker/PastryChef

Short OrderCook

Pantry Manager(All cold food items)

Second Cook (Sauces, stocks,

soups, fish, vegetable and meat preparations)

Station Cooksas needed

Cooks’ Helpersas needed



Dining Room Organization: Upscale Restaurant

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1The Captain is section (area) supervisor of approximately four guest tables. 2The Sommelier is the wine steward.3The Chef du Trancheur serves desserts (often from a dessert cart) and other after-dinner items.4The Chef du Rang is the lead table server; Commis du Rang is his/her assistant.

Maitre d’ Hotel

Sommelier2 Chef du Trancheur3

Chef du Rang4

Captain1

Commisdu Rang

Chef du Rang4 Chef du Rang4 Chef du Rang4

Commisdu Rang

Commisdu Rang

Commisdu Rang



Organization of Large Mid-Scale Restaurant

General Manager Bookkeeper

Chef (Head Cook)

Cooks

Stewards

Dining RoomManager

Receptionist

Servers

Buspersons

BeverageManager

Bartenders

Lounge Servers

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Organization Chart for a Family-Service Buffet Restaurant

Dining Room Manager

Cashier

Greeter

Serving Line Attendants

Buspersons


Head Cook

PrepCooks

Stewards

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Organization Chart for a Family-Service Tableservice Operation

Dining Room Manager

Receptionist/Cashier

FoodServers

Buspersons


Head Cook

Prep-Cooks

Stewards

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Organization Chart for a Single-Unit Quick-Service Restaurant

Shift LeaderProduction

Shift LeaderDrive-Through

Shift LeaderCounter Service

Line Employees Line Employees Line Employees

Franchisor's Field RepresentativeOwner/Unit Manager

Unit Assistant Manager

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Advantages of Multi-Unit Restaurants:

• Brand recognition.• Help from the franchisor.• Opportunities to market/advertise in large regions. • Benefits of centralization of menu planning,

purchasing and standardization.• Ability to obtain business loans.• Easier to sell restaurant.• Potentially easier employee recruitment.

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Multi-Unit (Chain) Restaurant Organization

Note: The titles of positions external to the unit vary between organizations. There are typically several regions within a very large national chain. Some have international subsidiaries. Also, there is a trend toward “flattening” the organization and increasing the span of control.

National Headquarters Chief Operating Officer

RegionalVice-President

DistrictManager

AreaManager

Unit General Manager

Responsible for 6 - 8 District Managers

Responsible for 12 - 15 Area Managers

Responsible for 6 - 8 Unit Managers

Responsible for 1 Unit

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Organization Chart for a Two-Unit: Quick-Service RestaurantFranchisor's Field Representative

Owner/Unit Manager(Unit #1)

Shift Leader Production

Line Employees Line Employees


Line Employees


Shift Leader Drive

Through

Shift Leader Production

Line Employees Line Employees


Line Employees


Shift Leader Drive Through

Unit Manager(Unit #2)

Unit #1

Unit #2

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Organization Chart of a Multi-Unit Quick-Service Restaurant

Owner

Area Manager

Unit #1 Manager

Unit #2 Manager

Unit #3 Manager

Unit #4 Manager

Franchisor's Field Representative

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Overview of the Food Management Process

Receiving

Storing

Issuing

Production

Preparing

Cooking

Holding

Procurement

Serving

Service

Menu Planning

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Basic Management Activities

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Planning: The basic management activity which involves defining goals, establishing strategies to achieve them and designing ways to get work done.

Organizing: The basic management activity which involves developing and grouping work tasks.

Coordinating: The basic management activity which involves arranging group efforts in an orderly manner.

Staffing: The human resources function which involves recruiting applicants, selecting employees, making a job offer and orientating/inducting staff members who accept the offer of the hospitality organization.

Directing: The basic management activity which involves supervising the work of staff members.

Controlling: The basic management activity which involves determining the extent to which the organization “keeps on track” of achieving goals.

Evaluating: The basic management activity which involves determining the extent to which plans are attained.

Restaurant Terminology at Work

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Basic Planning Tools

Vision

Mission Statement

Long-Range Plan

Business Plan

Marketing Plan Operating Budget

Vision: To be the restaurant of choice for social groups in the community.

Mission Statement: To meet needs of social groups by providing desired food/beverages and services at the prices which represent value for the guests.

Long-Range Plan: To obtain 60% of all social group business in the community within five years.

Business Plan: To increase market share of all social group business in the community by 5% within the next 12 months.

Marketing Plan: Strategies and tactics to increase social group revenues within the next 12 months.

Operating Budget: Expected revenue generated from and costs associated with social group business.Note: The marketing plan and operating budget are very closely related; the marketing plan indicates what

will be done to increase revenues, and the operating budget reflects these planned revenue increases and the costs which are expected to be incurred to generate the revenue.

Planning Tool Example

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Alternative Leadership Styles

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Leadership Style

Bureaucratic

Democratic

Laissez-Faire

Dictator (Autocratic)

Example of Leadership Approach

“Do it by the book.”

“Let’s figure it out together.”

“You figure it out.”

“Do it my way!”

Useful

when standardized work (accounting, for example) must be done

for experienced and motivated employees

for consultants and sub-contractors

for new employees doing relatively simple tasks



Steps in the Control Process

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Steps in the Control ProcessSTEPS

Step 1: Standards Must Be Established

Step 2: Actual Performance Must Be Measured

Step 3: Variance Between Standards and Actual Performance Must Be Assessed

Step 4: Corrective Actions to Address Variances Between Standards and Actual Performance Must Be Implemented

Step 5: Corrective Actions Must Be Evaluated to Assure Success

EXAMPLE

The restaurant’s operating budget establishes a 35.5% food cost goal.

The Income Statement indicates that the actual food cost is 39.3%.

The variance of 3.8% (39.3% - 35.5%) is unexplainable and excessive.

Decision-making (problem-solving) techniques are used to generate/select solution alternatives. Two tactics (improved purchasing and use of portion control procedures) are implemented.

Food cost is reduced during the next fiscal period to 37.8%; a step towards the 35.5% goal has been taken; further corrective actions will be planned and implemented.

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Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc....

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