Understanding Foodservice Operations Chapter 2 Understanding Foodservice Operations

Objective Recognize various types of foodservice establishments that employ chefs and cooks © Goodheart-Willcox Co., Inc.

Types of Foodservice Establishments Cooks and chefs work in restaurants hotels clubs catering operations institutional foodservice © Goodheart-Willcox Co., Inc.

Restaurants Categories of restaurants Full-service restaurants: span a range of styles from fine dining to casual Quick-service restaurants: customers typically place orders at counter; offer speed, convenience, and reasonable prices; often called fast-food restaurants What are some examples of full-service and quick-service restaurants in your area? © Goodheart-Willcox Co., Inc.

Hotels Hotel dining options range from vending machines to numerous on-site restaurants of varying styles and cuisines © Goodheart-Willcox Co., Inc.

Hotels Hotel restaurants provide service to registered guests as well as the community Many hotels operate room service and banquet facilities © Goodheart-Willcox Co., Inc.

Clubs Many private clubs provide their members with clubhouses with restaurant and banquet facilities Members expect fine cuisine and excellent service Members of city clubs use the club’s dining rooms for business and entertaining purposes © Goodheart-Willcox Co., Inc.

Catering Catered events are often held in a hall or banquet facility Off-premise catering involves catering locations that do not normally serve food © Goodheart-Willcox Co., Inc.

Institutional Foodservice Institutional foodservice, also known as noncommercial foodservice, allows employees and business clients a place to eat without leaving the premises Many institutional foodservice operations are run by very large foodservice companies © Goodheart-Willcox Co., Inc.

Objective Compare the different forms of business ownership © Goodheart-Willcox Co., Inc.

Legal Forms of Business Ownership The three main legal categories of ownership are sole proprietorship partnership corporation © Goodheart-Willcox Co., Inc.

Sole Proprietorship The owner of a sole proprietorship is personally responsible for all debts of the business Sole proprietors have final authority on all decisions © Goodheart-Willcox Co., Inc.

Partnership A partnership agreement spells out the responsibilities of each partner and how profits and losses will be divided Each owner is personally responsible for all the debts of the business in a partnership Legally, the partnership is ended when one or more partners dies or leaves the business © Goodheart-Willcox Co., Inc.

Corporation Ownership of a corporation is divided among investors in parts called shares The corporation has most of the rights and responsibilities of a real person, including responsibility for its debts In general, corporations pay more taxes than other forms of ownership © Goodheart-Willcox Co., Inc.

Objective Explain the different ways foodservice businesses are organized © Goodheart-Willcox Co., Inc.

Organization of Foodservice Businesses Foodservice businesses can be organized as independent restaurants chains franchises © Goodheart-Willcox Co., Inc.

Independent Restaurants An independent restaurant is a restaurant that is not a part of a group Each is a unique operation with different ownership Advantage:Independent restaurants can quickly adapt to meet guests needs. Disadvantage: Independent restaurants may have fewer resources available to them than chain or franchise restaurants. What are some advantages and disadvantages for independent restaurants? © Goodheart-Willcox Co., Inc.

Chains Chain restaurants are often referred to as “multi-unit foodservice operations” A chain uses the same menu, décor, and management practices in each location Advantages: Purchasing for many restaurants allows chains to buy products for less; benefit from centralized training and administrative costs. Disadvantage: Changes are more difficult to implement because there are multiple units. What are some advantages and disadvantages for chain restaurants? © Goodheart-Willcox Co., Inc.

Franchises The owner of a franchise restaurant pays for the right to operate a franchise and is called a franchisee The franchisee pays a fee for the right to use the brand name, concept, logo, and advertising is required to use the franchise company’s products and operate by its standards © Goodheart-Willcox Co., Inc.

Objective Summarize the risks and rewards of entrepreneurship © Goodheart-Willcox Co., Inc.

Entrepreneurship Many entrepreneurs are attracted to foodservice businesses © Goodheart-Willcox Co., Inc.

Entrepreneurship Successful chef-entrepreneurs must have great culinary skills business management expertise the ability to see the larger business environment and new opportunities © Goodheart-Willcox Co., Inc.

Risks and Rewards Risks of entrepreneurship Repayment of debts if the business fails Restaurants have high failure rates Rewards of entrepreneurship Being your own boss Financial gain Personal and professional pride © Goodheart-Willcox Co., Inc.

Review Name the types of foodservice establishments that employ chefs and cooks Restaurants, hotels, clubs, catering, institutional foodservice © Goodheart-Willcox Co., Inc.

Review Describe the difference between full-service and quick-service restaurants Full-service: servers take the customer’s order and bring the meal to their table; can be casual or fine-dining Quick-service: customers typically place orders at a counter; offer speed, convenience, and reasonable prices © Goodheart-Willcox Co., Inc.

Review What is institutional foodservice? Institutional foodservice supplies meals for businesses and organizations that want to provide foodservice for employees and clients © Goodheart-Willcox Co., Inc.

Review Name and describe the three forms of business ownership Sole proprietorship: one owner; responsible for all debts of the business; makes all decisions Partnership: ownership shared by two or more people; each owner is responsible for all debts of the business; share business responsibilities Corporation: a separate entity with legal rights; ownership is divided among investors; the corporation is responsible for its debts © Goodheart-Willcox Co., Inc.

Review Explain how independent restaurants, chains, and franchises differ An independent restaurant is not part of a group; a chain is a group of restaurants owned by the same company; franchise restaurants are independently owned restaurants that are part of a larger restaurant chain © Goodheart-Willcox Co., Inc.

Review What attracts entrepreneurs to foodservice businesses? Most restaurants are small, independent operations; small businesses have lower start-up costs; small businesses are easier to manage © Goodheart-Willcox Co., Inc.

Review Describe the risks and rewards of entrepreneurship Risks: having to repay debts if the business fails; restaurants have high failure rates Rewards: being your own boss; financial gain; personal and professional pride © Goodheart-Willcox Co., Inc.

Glossary catering. Providing food and service for groups often in locations that don’t normally serve food. chain restaurants. A group of restaurants owned by the same company, often referred to as multi-unit foodservice operations. © Goodheart-Willcox Co., Inc.

Glossary corporation. A business that is granted a charter from the state, which recognizes it as a separate entity with legal rights. entrepreneur. Someone who organizes a business and assumes the risk for it. © Goodheart-Willcox Co., Inc.

Glossary franchise restaurants. Independently owned restaurants that are part of a larger restaurant chain. full-service restaurants. Foodservice operations that employ servers to take the customer’s order and bring the meal to their table. © Goodheart-Willcox Co., Inc.

Glossary institutional foodservice. Segment of the industry that supplies meals for businesses and organizations, also known as noncommercial foodservice. partnership. A business in which ownership is shared by two or more people. © Goodheart-Willcox Co., Inc.

Glossary sole proprietorship. A business in which one person owns and often operates the business. © Goodheart-Willcox Co., Inc.