CHAPTER 8: Concept, Location, and Design Benefits of a Good Restaurant Name The Relationship Between Concept and Market Reasons Restaurant Concept Might Fail Qualities of Successful Restaurants Location Factors to Consider Factors in Developing a Concept Knockout Criteria

2 WHAT IS A CONCEPT? The matrix of ideas that constitutes what will be perceived as the restaurant’s image

3 CONCEPTS… Provide the framework on which to hang the image Apply to any foodservice operation Should fit a definite target market Distinguish the establishment as D&B, different and better, than the competition May be necessary to modify as competition arises

4 CONCEPTS INCLUDE… Public relations Advertising Promotions Building Curbside appeal Décor Menu Staff Music Style of operation

5 SYMBOLS Aspects of the concept Seen in the: –Sign –Logo –Colors –Upholstery –Food –Food presentation

6 CONCEPT EXAMPLES TACO BELL The word “Taco” is synonymous with Mexican food THE SPAGHETTI FACTORY Suggests quick service, low costs, and a fun place for Italian food THE SEVEN GRAINS Suggests a healthy-food restaurant LONG JOHN SILVER’S Suggests seafood GRANDMA’S KITCHEN Suggests a homey, friendly place

7 DEFINING THE CONCEPT AND MARKET Concept should fit the market –Coffee shop with counter service would appeal to interstate travelers Restaurant cannot exist without a market Must be a market gap, or need for the idea

8 THE MARKET/RESTAURANT RELATIONSHIP The concept and market comprise the hub around which the restaurant develops The concept and the market are central to the restaurant, supported by the menu, prices, service, quality, location, atmosphere, food, and management

9 SEQUENCE OF RESTAURANT DEVELOPMENT: from concept to opening 1.Business marketing initiated 2.Layout and equipment planned 3.Menu determined 4.First architectural sketches made 5.Licensing and approvals sought 6.Financing arranged 7.Working blueprints developed

10 SEQUENCE OF RESTAURNT DEVELOPMENT CONT’D 8.Contracts let for bidding 9.Contractor selected 10. Construction or remodeling begun 11. Furnishing and equipment ordered 12. Key personnel hired 13. Hourly employees selected and trained 14. Restaurant opened

11 PLANNING SERVICES Many aspects of restaurant design are carried out by other parties, hired by the owners and management. The designer, for example, performs the following services: Basic floor plan Equipment schedule Electrical requirements Plumbing requirements Equipment Equipment elevations Refrigeration requirements Exhaust and in-take requirements

12 COMMON DENOMINATORS Some factors may be common to all kinds of restaurants: Human needs met by the restaurant Menu prices Degree of service offered Space provided for each customer Rate of seat turnover Advertising and promotions expenditures Productivity per employee Labor cost Food cost

13 CUSTOMER SPACE / TURNOVER RATE

14 PLANNING DECISIONS THAT RELATE TO CONCEPT DEVELOPMENT Who are the target customers? Buy / Build / Lease / Franchise? Food preparation from scratch or from convenience items? A limited menu or an extended menu? Service: limited or full?

15 PLANNING DECISIONS (CONT’D) Young part-time or older career employees? Paid advertising or word- of-mouth advertising? Grand opening or soft opening? Electricity or gas?

16 ELEMENTS OF THE MISSION STATEMENT Purpose of enterprise It’s business strategy Behavior standards it will follow Values that the management and employees will hold foremost

17 MISSION STATEMENT Chili’s Grill and Bar We aim to be a premier growth company with a balanced approach toward people, quality and profits: to cultivate customer loyalty by listening to, caring about, and providing customers with a quality dining experience; to enhance a high level of ethics, excellence, innovation and integrity; to attract, develop, and retain a superior team; to be focused, sensitive and responsive to our employees and their environment: and to enhance long-term shareholder wealth

18 LOCATION CRITERIA Demographics of the area Visibility from a major highway Accessibility from a major highway Number of potential customers passing by the restaurant Distance from the potential market Desirability of surroundings Market population Family income Growth or decline of area Competition from comparable restaurants

19 KNOCKOUT CRITERIA Proper zoning Drainage, sewer, utilities Minimal size Short lease Excessive traffic speed Access from a highway or street Visibility from both sides of street

20 DESIGN CRITERIA Design needs to correlate with the theme Space allocation - front of the house and backstage Lighting (single most important element) Color (in tandem with lighting) Layout of the dining area