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