2. Understanding Foodservice Operations
Chapter 2
Understanding Foodservice Operations

3. Objective
Recognize various types of foodservice establishments that employ chefs and cooks
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4. Types of Foodservice Establishments
Cooks and chefs work in
restaurants
hotels
clubs
catering operations
institutional foodservice
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5. 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?
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6. Hotels
Hotel dining options range from vending machines to numerous on-site restaurants of varying styles and cuisines
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7. Hotels
Hotel restaurants provide service to registered guests as well as the community
Many hotels operate room service and banquet facilities
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8. 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
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9. Catering Catered events are often held in a hall or banquet facility
Off-premise catering involves catering locations that do not normally serve food
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10. 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
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11. Objective Compare the different forms of business ownership
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12. Legal Forms of Business Ownership
The three main legal categories of ownership are
sole proprietorship
partnership
corporation
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13. 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
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14. 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
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15. 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
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16. Objective
Explain the different ways foodservice businesses are organized
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17. Organization of Foodservice Businesses
Foodservice businesses can be organized as
independent restaurants
chains
franchises
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18. 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?
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19. 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?
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20. 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
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21. Objective Summarize the risks and rewards of entrepreneurship
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22. Entrepreneurship
Many entrepreneurs are attracted to foodservice businesses
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23. Entrepreneurship Successful chef-entrepreneurs must have
great culinary skills
business management expertise
the ability to see the larger business environment and new opportunities
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24. 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
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25. Review
Name the types of foodservice establishments that employ chefs and cooks
Restaurants, hotels, clubs, catering, institutional foodservice
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26. 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
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27. Review What is institutional foodservice?
Institutional foodservice supplies meals for businesses and organizations that want to provide foodservice for employees and clients
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28. 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
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29. 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
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30. 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
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31. 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
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32. 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.
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33. 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.
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34. 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.
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35. 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.
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36. Glossary
sole proprietorship. A business in which one person owns and often operates the business.
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