1. Restaurant OperationsC H A P T E R C H A P T E R
Restaurant Operations 7

2. Front of the House Front… “Curbside Appeal” Organizational chart
Dining Room Manager
Hostess
Servers
Bussers

3. Restaurant Forecasting
Budget projections
Guest counts or covers
Meal periods
Day of week
Special holidays
Average guest check

4. Food and Beverage Occupancy Statistics
Cover = A guest
Number of Turns =
Number of Covers
Number of Seats

5. Average Restaurant Check
Average check =
Food and Beverage Sales
Number of Covers

6. Service Service… Guests want less formal yet professional
Training is necessary
Servers are salespeople
Suggestive selling

7. Types of Restaurant Service
French Service…
Usually in haute cuisine restaurants
Use of a gueridon
Final preparation is at tableside
Several positions
Maitre d’hotel
Chef de Rang
Demi Chef de Rang
Comis de Rang

8. Types of Restaurant Service
Russian Service…
Food is cooked in the kitchen
Dish is presented to the customer
Served individually by placing food onto the plate

9. Types of Restaurant Service
American Service…
Food is cooked in the kitchen
Presented to the guest on individual plates
Defining good service

10. The Production Cycle Production Cycle… Purchasing Receiving
Storing and issuing
Food production

11. The Production Cycle Production Cycle (cont.)… Stewarding Budgeting
Accounting and control

12. Food Production Food Production… Based on expected volume of business
Prep work done prior to service times
Kitchen layout
Cooking line
Teamwork

13. Kitchen/Food Production
Food Production (cont.)…
Staffing and scheduling
Training and development
Management involvement
Employee recognition

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

15. Purchasing 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?

16. Receiving, Storing, and Issuing
Time and date delivery is to be made
Point of controls
Authorized requisitions
FIFO

17. Budgeting Budgeting… Fixed costs Constant no matter what the volume
Rent/lease payments
Interest
Depreciation

18. Budgeting Budgeting (cont.)… Variable costs Fluctuate with volume
Payroll
Music and entertainment

19. Balance Sheet Balance Sheet… Use of USAR Uniform System of Accounts
Shows assets and liabilities at a specific date
For a specific period of time (monthly)

20. Operating or Income Statement
Operating Statement…
On a monthly basis
Prepared after a sales forecast
Food and beverage sales
Cost of sales
Gross profit
Controllable expenses
Net income

21. Food Cost Percentage 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

22. Food Cost Percentage Food Cost Percentage (cont.)… Food Cost %
Food Cost / Food Sales X 100 =
Food Cost %

23. Contribution Margin Contribution Margin…
Amount a menu item contributes to the gross profit
Difference between cost of item and its sales price
Example
Cost of chicken is $2.50
Selling price is $6.75
Contribution margin is $4.25

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

25. 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

26. Controls
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

27. Trends in Restaurant Operations
More flavorful food
Increased takeout meals
Food safety
Steakhouses are again popular
Twin and multi restaurant locations
Difficulty in finding good employees