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
 TYPES OF
RESTAURANTS
Quick-Service
Steak House
Fine-Dining
Ethnic
Theme
Chef-Owner
Bakery-Cafe 2
 QUICK-SERVICE
McDonalds and Burger King
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 3
QUICK-SERVICE CONTD
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
Lone Star and Outback Steakhouse
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
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STEAK HOUSES CONTD
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 6
 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 thats wrapped in cryovac, sealed,
and refrigerated for several days
Dry aged: controlled temperature, humidity, and air
flow

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 FINE DINING
Daniel and Charlie Trotters
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 8
 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, dcor 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
Planet Hollywood and Hard Rock Cafe

Built around an idea

emphasizing fun and
fantasy
Glamorize sports,
travel, eras in time
Celebrities are central
to many theme
restaurants (some are
owners) 11
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
12
 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 dcor can be very
pricey
Often require excessive labor
Curators, consultants, animal
handlers, etc.
13
 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
14
 ETHNIC
Olive Garden and Panda Express

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
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CHEF-OWNER
Spago and Emerils
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 16
 ADVANTAGES TO CHEF
OWNERSHIP
Having an
experienced, highly
motivated person in
charge
Name often already
known and
synonymous with
great food
Can be very profitable
17
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
18
 BAKERY-CAFE
Panera Bread Company and La Madeleine
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
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The End

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