RM 2

• Key objectives when studying this chapter include characterizing different restaurants, describing chef-owned restaurants' pros and cons, and identifying well-known celebrity chefs

Restaurant Segments

• Chain restaurants, independent restaurants (indy) and Franchise restaurants are segments of the restaurant industry
• Quick-service (QSR) and Sandwich shops are different segments
• Other segments consist of Fast/quick casual, Family, Casual, and Fine dining

Top Restaurant Concepts

• Burgers lead in sales with $102,132,100,000
• Casual dining is second with $27,152,900,000
• Sandwiches/bakery-cafes come in third with $25,053,200,000

Chain Restaurants

• Chain restaurants have advantages and disadvantages compared to independent restaurants
• Chain restaurant advantages include recognition, advertising clout, sophisticated systems, and discounted purchasing

Independent Restaurants

• They are relatively easy to open
• Restaurateurs can express their creativity
• Opportunities exist in various locations
• Potential for buyouts from larger companies
• Ability to acquire financing for expansion

Columbia Restaurant

• Columbia Restaurant Located in Tampa, FL celebrated its 100th birthday
• This restaurant is a 5th-generation family-owned chain

Franchised Restaurants

• Benefit from a tested format, reducing the risk of failure
• Franchisees share mission and values, are successful, motivated, and have the needed capital

Franchising Elements

• Franchising encompasses items like building design, menu and marketing plans,and proven marketing concepts
• Training, marketing/management support, fees, royalties, and net worth stipulations are involved in franchising

Franchisor Support

• Franchisors assist with site selection/review, design and building preparation, and pre-opening tasks
• Franchisors also train managers/staff, implement pre-opening marketing, perform unit visits, and provide operating advice

Sandwich Shops

• Sandwich shops are simple to operate and open
• These shops involve minimal cooking
• Hot/cold sandwiches, soups, and beverages are offered
• Limited kitchen equipment is needed
• Examples of sandwich shops include Jimmy John's, The Sandwich Shop in San Francisco, and Subway

Quick-Service Restaurants

• Plate House was the first quick-service restaurant in the 1870s
• The Plate House served quick lunches in roughly 10 minutes
• Quick-service restaurants precook food to serve many customers quickly
• These restaurants require customers to pay beforehand and offer limited menus

Pop-Up Restaurants

• They operate for only a few days and require upfront payment
• One of the main challenges include ordering the correct quantities of food
• Began in London and immediately garnered global traction
• Social media assists in tracking the restaurant's whereabouts

Food Trucks

• An advancement of sidewalk carts, offering superior quality, choices, and quantity

Quick Casual Restaurants

• The defining traits are using high-quality ingredients, fresh made-to-order options, and healthy options
• Quick casual restaurants provide limited or self-serving formats, upscale decor, carry-out meals, and bakery-cafes

Family Restaurants

• Family restaurants evolved from coffee shop-style concepts
• These restaurants are located near suburbs for easy access
• Family restaurants operate informally and provide simple menus
• Wine and beer options are available with most offering non-alcoholic beverages

Casual Restaurants

• Casual restaurants capture the trend of a relaxed lifestyle
• Characterized by signature food, creative bar/wine lists, and comfortable interiors
• Applebee's, Outback, and Chili's are examples of casual restaurants

Fine-Dining Restaurants

• These restaurants are expensive and leisurely
• The average check is $60 or more
• Table turnover is very slow and can be less than one per evening
• Special occasions and business are common reasons customers dine here
• Fine-dining restaurants are relatively small, usually with less than 100 seats and have high rental costs

Hotel Restaurants

• Luxury hotel restaurants have well-trained chefs and elegant décor
• Many feature a three-meal setup and 24-hour service
• Hotels frequently outsource restaurant operations

Steakhouses

• They cater to a well-defined market (steak eaters) with a limited menu
• Steakhouse service ranges from walk-up to high-end
• High food expenses (up to 50%), low labor costs (12%) are characteristics
• The majority of customers at Steakhouses are male

Steak Types

• Tenderloin is the most tender and runs by the backbone
• The T-bone cut is from the small end of the loin
• Porterhouse is a T-bone and tenderloin steak
• New York Strip is compact, dense, and boneless
• Delmonico is a small, often boned steak from the front of the short loin
• Sirloin comes from just in front of the round, between the rump and shank

Seafood Restaurants

• Seafood was a staple in taverns during Colonial America
• Many of today's seafood restaurants are independently operated
• Red Lobster is the largest seafood chain with 682 restaurants generating about $2.8 billion sales annually
• Farm-bred fish has altered the cost and variety of seafood available

Ethnic Restaurants

• Mexican cuisine typically features tortillas, ground beef, cilantro, chilies, rice, and beans
• Mexican restaurants are relatively inexpensive and have low labor costs
• Menus, décor, and music at Mexican restaurants are often quite colorful and exciting

Italian Restaurants

• They are the most numerous of U.S. ethnic restaurants with broad opportunities
• The cuisine's origin is from poor immigrants from southern Italy
• Pizza's origin is from Naples
• American soldiers enjoyed it during World War II
• Chain operators are spreading Italian cuisine via Olive Garden

Asian Restaurants

• Asian restaurants make up only a small percentage of restaurants in America
• Historically run by hardworking Chinese families, their cooking revolves around the wok
• China divides into culinary districts: Szechuan, Hunan, and Cantonese centered on Beijing

Theme Restaurants

• They emphasize entertainment and fantasy with sports, travel, eras in time, and celebrities
• Theme restaurants have a relatively short life and do well outside tourist areas
• Most revenue is from merchandise
• Their costs are high, including capital and operational expenses

Theme Restaurant Categories

• Martin Pegler's theme restaurant design identifies categories such as: Hollywood/movies, sports, and historical periods
• Records, radio, television, travel, and ecology are also options

Coffee Shops

• Coffee shops have a long culture and history
• Inspired by Italian bars, modified to include a broader variety of beverages to appeal to consumers
• Coffee shops can be chains or independent operators
• Key needs include a good brand and location, permits, equipment, furniture, and a few decorations

Chef-Owned Restaurants

• Chef-owned restaurants are an American tradition of family restaurants
• Publicity and a capable backup person are essential
• Wolfgang Puck and Barbara Lazaroff are a known chef/spouse team
• Management, prep, and marketing duties must be shared; spousal teams are subject to divorce

Top American Chef-Owned Restaurants

• Per Se (New York City), Daniel (New York City), CUT (Palazzo Las Vegas) are top restaurants
• Osteria Mozza (Los Angeles), Morimoto (Philadelphia), Mesa Grill (Caesars Palace, Las Vegas) are also top choices
• Hamersley’s Bistro (Boston), NOLA Restaurant (New Orleans), Craftsteak (Las Vegas), and Olives (Las Vegas) round out the list

Women Chefs

• Regarding female restaurateurs, there are many success stories
• Individuals with dedication and grit are often suited for the role
• Female owners are more likely to focus on the details of the sanitation and appearance, as well as empathetic towards customers

Celebrity Chefs

• Emeril Lagasse, Rachael Ray, Suzanne Goin, Alice Waters, Marc Vetri, and Barbara Lynch are famous celebrity chefs

Centralized Home Delivery Restaurants

• They lower ordering, preparation, and accounting expenses
• Home delivery centers confirm credit card data and process transactions
• It also utilizes computer systems for accounting and can operate anywhere in the world with internet access