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Restaurant Operations

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C H A P T E R. C H A P T E R. Restaurant Operations. 7. Front of the House. Front… “Curbside Appeal” Organizational chart Dining Room Manager Hostess Servers Bussers. Restaurant Forecasting. Forecasting… Budget projections Guest counts or covers Meal periods

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Restaurant Operations

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  1. C 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 • Forecasting… • Budget projections • Guest counts or covers • Meal periods • Day of week • Special holidays • Average guest check

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

  5. Average RestaurantCheck • 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 RestaurantService • 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 RestaurantService • 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 RestaurantService • 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 • 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 • 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 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 • Cost Percentages… • Labor costs 20 to 24% • Food costs 28 to 32% • Beverage costs 18 to 24%

  25. Lease and Controllable Expenses • 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 • Trends… • More flavorful food • Increased takeout meals • Food safety • Steakhouses are again popular • Twin and multi restaurant locations • Difficulty in finding good employees

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