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Chapter 1 The Food Service Industry

1. . . Competencies forThe Food Service Industry. Distinguish between commercial and noncommercial food service operations.Outline the origins and development of food service in hotels, restaurants, and institutions.Describe various commercial and noncommercial food service facilities and discuss

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Chapter 1 The Food Service Industry

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    3. 2 Advantages and Disadvantages of Chain Restaurants Advantages: Ready access to cash and credit Ability to experiment without great risk Resources to hire staff specialists Greater access to useful comparative financial information Disadvantage: Bureaucratic rules and procedures can slow response times to market changes

    4. 3 Advantages and Disadvantages of Owning or Managing Franchise Restaurants Advantages: Assistance in opening and operating the business Franchisor-sponsored training and materials Greater exposure and higher revenue because of extensive advertising and name recognition Lower costs due to volume purchasing Tested operating procedures

    5. 4 Advantages and Disadvantages of Owning or Managing Franchise Restaurants Disadvantages: Franchise contracts restrict style and methods of operation, products served, services offered, dcor, and furnishings Franchise contracts usually favor the franchisor

    6. 5 Advantages and Disadvantages of Contract Management in Noncommercial Facilities Advantages: Large management companies have more resources to solve problems Ability to negotiate better deals with suppliers Greater efficiency and therefore lower overall cost Allows food service to be operated by experts, rather than institution administrators

    7. 6 Advantages and Disadvantages of Contract Management in Noncommercial Facilities Disadvantages: Management companies can affect the institutions public image Some people feel that profit-making operators do not belong in noncommercial settings The institution may become dependent on the management company

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