The Restaurant: From Concept to Operation, 3rd Edition

by John R. Walker (United States International Univ., San Diego, California); Donald E. Lundberg (Emeritus, California State Polytechnic Univ. Pomona)

• ISBN13: 9780471356066
• ISBN10: 0471356069
• Edition: 3rd
• Format: Hardcover
• Copyright: 2001-01-01
• Publisher: Wiley

Summary

Recently, there has been an explosion of restaurant openings. The National Restaurant Association predicts that this will continue into this century. Information on starting and operating a restaurant will be of great use to career changers and chefs not formally educated in restaurant management.

Table of Contents

Preface	xvii
Acknowledgments	xix
Introduction	2	(18)
Liabilities of Restaurant Operation	6	(1)
French Culinary History	7	(1)
The Birth of Restaurants in America	7	(1)
The Restaurant Failure Rate	8	(1)
Buy, Build, Franchise, or Manage?	9	(6)
Franchise, Anybody?	13	(2)
Starting from Scratch	15	(1)
Restaurants as Roads to Riches	16	(1)
Summary	16	(1)
Key Terms and Concepts	17	(1)
Review Questions	17	(1)
Endnotes	18	(2)
Kinds and Characteristics of Restaurant and Their Owners	20	(34)
Kinds and Characteristics of Restaurants	22	(1)
The Big Boys Compared with Independent Operators	23	(1)
Quick-Service Restaurants	24	(8)
Colonel Sanders	25	(1)
Wendy's International Restaurants	26	(1)
Carl Karcher	26	(1)
Cleo R. Ludwing, Founder of L-K Restaurants	27	(2)
Regional Burger Chains	29	(1)
The Subway Story	29	(3)
The Mexican Restaurant	32	(1)
Steakhouses	33	(3)
The Lore of Steak	34	(2)
Fine-Dining Restaurants	36	(2)
Seafood Restaurants	38	(1)
Italian Restaurants	39	(2)
Chinese Restaurants	41	(1)
Theme Restaurants	42	(2)
The Chef-Owner Restaurant	44	(2)
Women Chefs as Restaurant Partners	46	(2)
Notable Female Restauranteurs	48	(1)
The Bakery-Cafe	49	(1)
Centralized Home Delivery Restaurants	50	(1)
Truck Stops and Travel Centers	51	(1)
Summary	52	(1)
Key Terms and Concepts	52	(1)
Review Questions	52	(1)
Endnotes	52	(2)
Concept, Location, and Design	54	(46)
Restaurant Concepts	56	(2)
Concept: Clear-Cut, or Ambiguous?	57	(1)
Protecting the Restaurant's Name	58	(2)
The McDonald's Concept and Image	59	(1)
Defining the Concept and Market	60	(2)
The Fine Line Between Junk and Funk	62	(1)
Successful Restaurant Concepts	63	(4)
Concept Adaptation	67	(1)
Changing or Modifying a Concept	67	(1)
Copy and Improve	68	(1)
Restaurant Symbology	69	(1)
When a Concept Fails	70	(1)
The Multiple-Concept Chain	70	(2)
Sequence of Restaurant Development: From Concept to Opening	72	(1)
Planning Services	73	(1)
Common Denominators of Restaurants	73	(1)
Utility versus Pleasure	73	(1)
Degree of Service Offered	74	(1)
Time of Eating and Seat Turnover	75	(1)
Customer Space	75	(2)
Menu Price and Cost per Seat	76	(1)
Advertising and Promoting Expenditures	77	(1)
Labor Costs as a Percentage of Sales	77	(1)
Planning Decisions That Relate to Concept Development	78	(1)
Profitability	79	(1)
The Mission Statement	79	(1)
Concept and Location	80	(1)
High-Growth Areas For Locating a Restaurant	81	(6)
Location Criteria	82	(1)
Some Restaurants Create Their Own Location	82	(1)
Sources of Location Information	83	(1)
Traffic Generators	84	(1)
Knockout Criteria	85	(1)
Other Location Criteria	85	(1)
Suburban, Nook-and-Cranny, and Shopping Mall Locations	86	(1)
Minimum Population Needed to Support a Concept	87	(1)
Downtown versus Suburban	87	(1)
Average Travel Time to Reach Restaurants	88	(1)
Is the Location Right for the Concept?	88	(1)
The Correct Number of Seats	88	(1)
Restaurant Chain Location Specifications	89	(2)
Location Information Checklist	91	(1)
The Takeover Location	92	(1)
Restaurant Topographical Surveys	93	(1)
Is the Location Too Costly?	94	(1)
Visibility and Accessibility	94	(1)
Design Criteria	94	(3)
Summary	97	(1)
Key Terms and Concepts	97	(1)
Review Questions	97	(1)
Endnotes	98	(2)
Restaurant Marketing and Business Plans	100	(28)
The Marketing Plan	102	(4)
The Difference Between Marketing and Sales	106	(1)
Solving Customer Problems	107	(1)
Marketing Planning	107	(1)
Marketing Strategy	107	(1)
Market Assessment	108	(1)
Market Demand	109	(2)
Market Potential	110	(1)
Market Segmentation, Target Market, and Positioning	110	(1)
Marketing Mix---The Four Ps	111	(13)
Place	111	(1)
Product	112	(4)
Price	116	(2)
Promotion	118	(6)
Olive Garden Marketing	124	(1)
Summary	125	(1)
Key Terms and Concept	125	(1)
Review Questions	126	(1)
Endnotes	126	(2)
Financing and Leasing	128	(22)
Sufficient Capital	130	(1)
Compare Interest Rates	131	(1)
Real Interest Rates	131	(1)
Loan Sources	132	(1)
The Small Business Administration	133	(4)
SBICs	135	(1)
Soliciting an SBA Loan	135	(1)
Sequence for Securing an SBA Loan	136	(1)
Stockpiling Credit	137	(1)
Selling the Proposal	137	(2)
Other Sources of Money	139	(1)
Collateral	140	(1)
Keeping the Loan Lines Open	141	(1)
Avoiding Personal Liability	141	(1)
Leasing	141	(6)
Lease Costs	142	(1)
Drawing Up a Lease	142	(2)
Lease Terminology	144	(1)
Length of Lease	144	(1)
Specifics of Most Restaurant Leases	145	(1)
Fire Insurance	146	(1)
What Is a Restaurant Worth?	147	(1)
Summary	147	(1)
Key Terms and Concepts	148	(1)
Review Questions	148	(1)
Endnotes	148	(2)
Legal and Tax Matters	150	(28)
What Business Entity Is Best?	152	(6)
The Sole Proprietorship	152	(2)
The Partnership	154	(2)
The Restaurant as a Corporation	156	(2)
Buy-Sell Agreement with Partners	158	(1)
Two Corporations Recommended	159	(1)
Business and Life Insurance	160	(1)
Business Search Expense	160	(1)
Legal Aspects of Doing Business	160	(3)
Depreciation and Cash Flow	163	(1)
Accelerated or Straight-Line Depreciation	163	(1)
Buying a Loser	164	(1)
Two Choices of Accounting Methods	164	(1)
A Tax Avoidance Plan	164	(1)
Retirement Tax Shelters	164	(1)
Tax-Free Compounding	165	(1)
A Reasonable Return on Investment	165	(1)
Business Expenses and Taxes	165	(2)
Tax Credit for Van or Bus	166	(1)
Tax Breaks for Children in Family Restaurants	166	(1)
Reminders	167	(1)
Local, State, and Federal Taxes	168	(1)
Federal Laws Governing Employment	169	(4)
The Federal Wage and Hour Law (The Fair Labor Standard Act)	169	(1)
Employee Information	170	(1)
The Federal Equal Pay Act of 1963 and Federal Child Labor Laws	171	(1)
Wage Garnishment Act	171	(1)
The Age Discrimination in Employment Act	171	(1)
The Employment Retirement Income Security Act	172	(1)
Civil Rights Act of 1964	172	(1)
Legal Aspects of Contract Services	173	(1)
Complications in Discharging Employees	173	(1)
Reporting Tips to the Internal Revenue Service	173	(1)
Selling Liquor to Minors	174	(1)
Time Off to Vote	174	(1)
In Case of Wage and Hour Audit	174	(1)
Interpretation and Clarification of Government Regulations	174	(1)
Slip and Fall	175	(1)
Summary	175	(1)
Key Terms and Concepts	176	(1)
Review Questions	176	(1)
Endnotes	177	(1)
The Menu	178	(32)
Capability/Consistency	181	(1)
Equipment	181	(5)
Availability	186	(1)
Price	186	(2)
Menu Pricing Strategies	187	(1)
Nutritional Value	188	(4)
Contribution Margin	192	(1)
Flavor	192	(1)
Accuracy in Menu	193	(1)
Kids' Menus	193	(1)
Menu Items	194	(2)
Appetizers and Soups	196	(1)
Lunch and Dinner Menus	196	(1)
Degustation Menus	197	(1)
Menu Types	197	(3)
Salads	200	(1)
Entrees	200	(1)
Desserts	200	(1)
Matching/Pairing	200	(1)
Restaurants in Las Vegas Represent the Best Countrywide	201	(1)
Menu Analysis	202	(1)
Menu Design and Layout	203	(1)
What Kind of Paper?	204	(1)
Standardized Recipes	204	(1)
Food-Cost Percentage	204	(3)
Summary	207	(1)
Key Terms and Concepts	207	(1)
Review Questions	208	(1)
Endnotes	208	(2)
Bar and Beverages	210	(22)
Alcoholic Beverage Licenses	213	(1)
How to Apply for a License	213	(1)
Bar Layout and Design	214	(2)
Placement of a Bar Within a Restaurant	216	(1)
The Speed Gun	217	(1)
Glass Washing	218	(1)
Bartenders	218	(1)
A Basic Bar Inventory	218	(1)
A Wine List	219	(3)
Wines with Food	222	(1)
Responsible Alcoholic Beverage Service	223	(1)
Third-Party Liability	224	(1)
Controls	224	(7)
Controlling Losses	225	(1)
99 Ways to Steal in a Restaurant or Bar	225	(6)
Summary	231	(1)
Key Terms and Concepts	231	(1)
Review Questions	231	(1)
Endnotes	231	(1)
Food Purchasing	232	(18)
A Food Purchasing System	234	(8)
The Purchasing Cycle	237	(1)
Who Sets Up the System? Who Operates It?	237	(1)
Food Quality Standards	238	(1)
Buying by Specification	238	(1)
How Much Inventory?	239	(1)
The Mechanics of Ordering	240	(1)
Storage	241	(1)
Types of Purchasing	242	(1)
Buying from Full-Line Purveyors	242	(1)
Co-op Buying	242	(1)
Beware	242	(1)
Buying Meat	243	(1)
The Chicken versus Turkey Choice	243	(1)
Purchasing Eggs	244	(1)
Buying Fresh Fruits and Vegetables	244	(3)
USDA Wholesale Produce Grades	245	(2)
Canned Fruits and Vegetables	247	(1)
Selecting the Right Coffee	247	(1)
Coffee Brewing Machines	247	(1)
Summary	248	(1)
Key Terms and Concepts	248	(1)
Review Questions	249	(1)
Endnotes	249	(1)
Planning and Equipping the Kitchen	250	(28)
The Open Kitchen	256	(2)
Kitchen Floor Coverings	258	(1)
Kitchen Equipment	258	(4)
Categories of Kitchen Equipment	259	(1)
Select the Right Equipment	259	(1)
Match Equipment with Menu and Production Schedule	260	(1)
Total Cost versus Original Cost	261	(1)
Select the Most Efficient Equipment for the People and Skills Available	261	(1)
De-skilling the job with Equipment	261	(1)
Equipment Stars	262	(12)
The Stove/Oven	262	(2)
Deep-Frying Equipment	264	(1)
Tilting Skillets	265	(1)
Low-Temperature Ovens	266	(1)
Forced-Air Convection Ovens	266	(1)
Microwave Ovens	266	(3)
Infrared Cooking Equipment	269	(1)
Steam Cooking Equipment	269	(1)
Hot-Food Holding Tables	270	(1)
Refrigerators and Freezers	271	(1)
Ice Machines	271	(1)
Pasta-Making Machines	272	(1)
Other Specialty Cooking Equipment	272	(1)
Other Equipment	273	(1)
Maintaining Kitchen Equipment	274	(1)
Dishwashing Equipment	274	(1)
Meeting with the Health Inspector	275	(1)
Summary	276	(1)
Key Terms and Concepts	276	(1)
Review Questions	276	(1)
Endnotes	277	(1)
Budgeting and Controlling Costs	278	(26)
Budgeting	280	(1)
Forecasting Sales	280	(2)
A Method for Forecasting Sales	280	(2)
Income Statement	282	(1)
Budgeting Costs	283	(1)
Gross Profit	283	(1)
Controllable Expenses	283	(1)
Labor Costs	284	(3)
Rent	287	(1)
Uniform System of Accounts for Restaurants	287	(1)
Pre-Opening Expenses	287	(1)
Cash Flow Budgeting	288	(1)
Productivity Analysis and Cost Control	288	(2)
Seat Turnover	290	(1)
Controlling Theft and Accidental Loss	291	(2)
Guest Check Control	293	(1)
Computer Systems	294	(6)
How Much Computer Assistance?	295	(3)
POS Systems	298	(2)
Financial Management	300	(2)
Ratio Analysis	301	(1)
Summary	302	(1)
Key Terms and Concepts	302	(1)
Review Questions	302	(1)
Endnotes	303	(1)
Organization, Recruiting, and Staffing	304	(32)
Task and Job Analysis	306	(2)
Technical Tasks Vary with the Establishment	307	(1)
Job Descriptions	308	(4)
The Job Specification	311	(1)
The Job Instruction Sheet	311	(1)
Organizing People and Jobs	312	(2)
Staffing the Restaurant	314	(1)
Civil Rights Laws	314	(5)
Equal Employment Opportunity	315	(1)
The Americans with Disabilities Act	316	(1)
Hiring People Who Are Physically or Mentally Challenged	317	(1)
AIDS	318	(1)
Recruitment	319	(1)
Selection	319	(1)
Interviewing	320	(2)
Ideal Employee Profiles	322	(1)
Employment of Minors	322	(4)
Restrictions on Employing Minors	325	(1)
Employment of Undocumented Aliens	326	(1)
Employee Sources	326	(1)
Questions to Avoid on the Application Form and During the Interview	327	(3)
Questions You Can Ask	328	(2)
The Multiple Interview Approach	330	(1)
Telephone References	330	(1)
Careful Selection of Personnel	330	(2)
Employment Testing	332	(1)
Screening Out the Substance Abuser	332	(1)
Pre-Employment Physical and Drug Examinations	333	(1)
Summary	333	(1)
Key Terms and Concepts	333	(1)
Review Questions	333	(1)
Endnotes	334	(2)
Employee Training and Development	336	(22)
Orientation	338	(1)
Training	339	(2)
Part-Time Employees Increase the Need for Training	341	(1)
Training and Development	341	(6)
Combine Training with Development	343	(1)
Slogans Help	343	(1)
Step-by-Step Training	344	(1)
Training Theory	345	(2)
Behavior Modeling	347	(1)
Learner-Controlled Instruction	348	(1)
Responsible Alcohol Beverage Service	349	(1)
A Professional Training and Development Program	350	(1)
The Manager As Coach	350	(2)
Leadership	352	(3)
Better Management Behavior	352	(1)
Characteristics of Effective Managers	352	(1)
Subtleties of Supervision	353	(2)
Motivation Through Part Ownership	355	(1)
A Tipping Policy	355	(1)
Summary	356	(1)
Key Terms and Concepts	356	(1)
Review Questions	356	(1)
Endnotes	357	(1)
Service and Customer Relations	358	(18)
The Service Encounter	361	(1)
Gamesmanship	362	(1)
Greeters	362	(1)
The Server as an Independent Businessperson	363	(1)
Foodservice Teams	363	(2)
Hard Sell versus Soft Sell	365	(1)
Formality or Informality	366	(1)
Setting the Table	367	(1)
Taking the Order	367	(1)
Magic Phrases	368	(1)
The Servers' Viewpoint	369	(1)
The Difficult Customer	370	(3)
Teen Confrontations	373	(1)
Service Personnel as a Family	373	(1)
Greeter or Traffic Cop	373	(1)
Tact: Always	374	(1)
Summary	374	(1)
Key Terms and Concepts	374	(1)
Review Questions	374	(1)
Endnotes	375	(1)
Food Protection and Sanitation	376	(25)
Food-Borne Illness	378	(1)
Biological Hazards---Bacteria	378	(1)
Causes of Food-Borne Illness	379	(3)
Controlling or Destroying Bacteria	382	(1)
Acidity and Bacterial Growth	382	(1)
Bacteria and Temperature	383	(1)
Every Staff Member a Sanitarian	384	(1)
Viruses	384	(1)
Chemical Contaminants	384	(2)
Personal Safety	386	(1)
Hazard Analysis of Critical Control Points	386	(2)
Common Food Safety Mistakes	388	(2)
Time/Temperature	388	(1)
Cross-Contamination	389	(1)
Poor Personal Hygiene	390	(1)
Approaches to Food Safety	390	(1)
Food Protection as a System	391	(4)
Contract Sanitation Service	395	(1)
Warewashing and Food Protection	395	(1)
Pest Control	396	(1)
Summary	397	(1)
Key Terms and Concepts	398	(1)
Review Questions	398	(1)
Endnotes	398	(3)
Glossary	401	(8)
Index	409