Chapter 8 Restaurant Operations

1
Chapter 8Restaurant Operations
2
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

3
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

4
Front of the House

• Curbside Appeal
• Organizational chart
• Dining Room Manager
• Hostess
• Servers
• Bussers

5
Restaurant Forecasting

• Budget projections
• Guest counts or covers
• Meal periods
• Day of week
• Special holidays
• Average guest check

6
Food and Beverage Occupancy Statistics

• Occupancy Statistics
• Cover A guest
• Number of Turns ?
• Number of Covers
• Number of Seats

7
Average RestaurantCheck

• Average check
• Food and Beverage Sales
• Number of Covers

8
Service

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

9
Types of RestaurantService

• French Service
• Russian Service
• American Service

10
Balancing the FOH with the BOH

• Purchasing
• Receiving
• Storing and issuing
• Food production
• Stewarding
• Budgeting
• Accounting and control

11
Food Production

• Based on expected volume of business
• Prep work done prior to service times
• Kitchen layout
• Cooking line
• Teamwork

12
Kitchen/Food Production

• Staffing and scheduling
• Training and development
• Management involvement
• Employee recognition

13
Production Procedures

• Production sheets
• Count the product on hand (par levels)
• Determine production level
• Determine actual sales
• Key to consistency and quality of food

14
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?

15
Receiving, Storing and Issuing

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

16
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

17
Food Cost Percentage

• Food Cost Percentage (cont.)
• Food Cost / Food Sales X 100
• Food Cost

18
Typical Cost Percentages

• Cost Percentages
• Labor costs 20 to 24
• Food costs 28 to 32
• Beverage costs 18 to 24

19
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

20
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

21
Trends

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

22
Trends

• More food court restaurants
• Steakhouses are again popular
• Segments are splitting into tiers
• QSRs in convenience stores
• Difficulty in finding good employees