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Chapter 8 Restaurant Operations

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Presentation on theme: "Chapter 8 Restaurant Operations"— Presentation transcript:

1 Chapter 8 Restaurant 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
Cover = A guest Number of Turns = Number of Covers Number of Seats

7 Average Restaurant Check
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 Restaurant Service
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 Cost / Food Sales X 100 = Food Cost %

18 Typical Cost Percentages
Labor costs to 24% Food costs to 32% Beverage costs to 24%

19 Lease and Controllable 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

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