1. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 History of Restaurants in Europe People ate together in large groups 12,000 years ago. Food was sold in public market places 7,000 years ago. Greek and Roman banquets occurred 2,500 years ago. By the 1500’s, quantity food was produced primarily in religious institutions, and wealthy persons employed chefs. Before the 1600’s, persons living along trade routes were the first hospitality entrepreneurs as they opened their houses to travelers. Separate eating places began in Europe in the mid-1700’s. OH – 1.1

2. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 History of Restaurants in United States Taverns and inns became popular in cities during the 1800’s. Most luxurious dining was offered by large hotels. By the late 1800’s, public eating places were almost everywhere and offered a wide variety of food items. One of the first restaurant chains was that of Fred Harvey (Kansas) in the mid-1870’s. OH – 1.2

3. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 History of Restaurants in United States (continued) By 1920, numerous eating places were located near major highways. In the 1940’s, frozen foods became popular. McDonald’s restaurant chain began in the 1950’s. In the 1970’s, wines increased in popularity. The “modern” restaurant era began in the early 1980’s as Americans began to eat out more frequently. OH – 1.3

4. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 *Including sporting and cultural events, recreation and geographic tours. **Including stores, markets and shopping malls. Travel/Tourism Industry Hospitality Accommodations (Lodging) Other Hospitality Operations Foodservices Transportation Services Destination Alternatives Activities* Retail Shops** Components of the Travel/Tourism Industry OH – 1.4

5. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Close Look at the Hospitality Industry OH – 1.5

6. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Foodservices Segment Commercial Operations Non-Commercial Operations Self-OperatedControl Management Company-Operated Restaurants Let’s Review Some Basics OH – 1.6

7. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Types of Restaurants Restaurants Upscale (High-Check Average) Casual Service (Mid-Scale) Family Service Quick-Service OH – 1.7

8. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Kitchen Organization: Upscale Restaurant OH - 1.8 * There is generally one assistant chef for each work shift and, often, for each food preparation (kitchen) area within a multiple-kitchen property. Executive Chef Assistant (Sous) Chef* Baker/Pastry Chef Short Order Cook Pantry Manager (All cold food items) Second Cook (Sauces, stocks, soups, fish, vegetable and meat preparations) Station Cooks as needed Cooks’ Helpers as needed

9. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Dining Room Organization: Upscale Restaurant OH – 1.9 1 The Captain is section (area) supervisor of approximately four guest tables. 2 The Sommelier is the wine steward. 3 The Chef du Trancheur serves desserts (often from a dessert cart) and other after-dinner items. 4 The Chef du Rang is the lead table server; Commis du Rang is his/her assistant. Maitre d’ Hotel Sommelier 2 Chef du Trancheur 3 Chef du Rang 4 Captain 1 Commis du Rang Chef du Rang 4 Commis du Rang Commis du Rang Commis du Rang

10. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Organization of Large Mid-Scale Restaurant General Manager Bookkeeper Chef (Head Cook) Cooks Stewards Dining Room Manager Receptionist Servers Buspersons Beverage Manager Bartenders Lounge Servers OH – 1.10

11. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Organization Chart for a Family-Service Buffet Restaurant Dining Room Manager Cashier Greeter Serving Line Attendants Buspersons General ManagerBookkeeper Head Cook Prep Cooks Stewards OH – 1.11

12. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Organization Chart for a Family-Service Tableservice Operation Dining Room Manager Receptionist/ Cashier Food Servers Buspersons General Manager Bookkeeper Head Cook Prep- Cooks Stewards OH – 1.12

13. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Organization Chart for a Single-Unit Quick-Service Restaurant Shift Leader Production Shift Leader Drive-Through Shift Leader Counter Service Line Employees Franchisor's Field Representative Owner/Unit Manager Unit Assistant Manager OH – 1.13

14. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Advantages of Multi-Unit Restaurants: Brand recognition. Help from the franchisor. Opportunities to market/advertise in large regions. Benefits of centralization of menu planning, purchasing and standardization. Ability to obtain business loans. Easier to sell restaurant. Potentially easier employee recruitment. OH – 1.14

15. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Multi-Unit (Chain) Restaurant Organization Note: The titles of positions external to the unit vary between organizations. There are typically several regions within a very large national chain. Some have international subsidiaries. Also, there is a trend toward “flattening” the organization and increasing the span of control. National Headquarters Chief Operating Officer Regional Vice-President District Manager Area Manager Unit General Manager Responsible for 6 - 8 District Managers Responsible for 12 - 15 Area Managers Responsible for 6 - 8 Unit Managers Responsible for 1 Unit OH – 1.15

16. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Organization Chart for a Two-Unit: Quick-Service Restaurant Franchisor's Field Representative Owner/Unit Manager (Unit #1) Shift Leader Production Line Employees Shift Leader Counter Service Line Employees Unit Assistant Manager Shift Leader Drive Through Shift Leader Production Line Employees Shift Leader Counter Service Line Employees Unit Assistant Manager Shift Leader Drive Through Unit Manager (Unit #2) Unit #1 Unit #2 OH – 1.16

17. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Organization Chart of a Multi-Unit Quick-Service Restaurant Owner Area Manager Unit #1 Manager Unit #2 Manager Unit #3 Manager Unit #4 Manager Franchisor's Field Representative OH – 1.17

18. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Overview of the Food Management Process Receiving Storing Issuing Production Preparing Cooking Holding Procurement Serving Service Menu Planning OH – 1.18

19. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Basic Management Activities OH – 1.19

20. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458  Planning: The basic management activity which involves defining goals, establishing strategies to achieve them and designing ways to get work done.  Organizing: The basic management activity which involves developing and grouping work tasks.  Coordinating: The basic management activity which involves arranging group efforts in an orderly manner.  Staffing: The human resources function which involves recruiting applicants, selecting employees, making a job offer and orientating/inducting staff members who accept the offer of the hospitality organization.  Directing: The basic management activity which involves supervising the work of staff members.  Controlling: The basic management activity which involves determining the extent to which the organization “keeps on track” of achieving goals.  Evaluating: The basic management activity which involves determining the extent to which plans are attained. Restaurant Terminology at Work OH – 1.20

21. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Basic Planning Tools Vision Mission Statement Long-Range Plan Business Plan Marketing PlanOperating Budget Vision: To be the restaurant of choice for social groups in the community. Mission Statement: To meet needs of social groups by providing desired food/beverages and services at the prices which represent value for the guests. Long-Range Plan: To obtain 60% of all social group business in the community within five years. Business Plan: To increase market share of all social group business in the community by 5% within the next 12 months. Marketing Plan: Strategies and tactics to increase social group revenues within the next 12 months. Operating Budget: Expected revenue generated from and costs associated with social group business. Note: The marketing plan and operating budget are very closely related; the marketing plan indicates what will be done to increase revenues, and the operating budget reflects these planned revenue increases and the costs which are expected to be incurred to generate the revenue. Planning ToolExample OH – 1.21

22. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Alternative Leadership Styles OH – 1.22 Leadership Style Bureaucratic Democratic Laissez-Faire Dictator (Autocratic) Example of Leadership Approach “Do it by the book.” “Let’s figure it out together.” “You figure it out.” “Do it my way!” Useful when standardized work (accounting, for example) must be done for experienced and motivated employees for consultants and sub- contractors for new employees doing relatively simple tasks

23. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Steps in the Control Process OH – 1.23

24. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Steps in the Control Process STEPS Step 1: Standards Must Be Established Step 2: Actual Performance Must Be Measured Step 3: Variance Between Standards and Actual Performance Must Be Assessed Step 4: Corrective Actions to Address Variances Between Standards and Actual Performance Must Be Implemented Step 5: Corrective Actions Must Be Evaluated to Assure Success EXAMPLE The restaurant’s operating budget establishes a 35.5% food cost goal. The Income Statement indicates that the actual food cost is 39.3%. The variance of 3.8% (39.3% - 35.5%) is unexplainable and excessive. Decision-making (problem-solving) techniques are used to generate/select solution alternatives. Two tactics (improved purchasing and use of portion control procedures) are implemented. Food cost is reduced during the next fiscal period to 37.8%; a step towards the 35.5% goal has been taken; further corrective actions will be planned and implemented. OH – 1.23