The Restaurant: From Concept to Operation, 4th Edition

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

• ISBN13: 9780471450283
• ISBN10: 0471450286
• Edition: 4th
• Format: Hardcover
• Copyright: 2004-10-01
• Publisher: Wiley

Summary

A successful restaurant is a dream business. It offers guests a fabulous experience, while the restaurateur gets an exciting workplace, creative license, and potentially nice profit margins. Of course, restaurant success does not arrive on a silver platter. It takes know-how, the right planning, and access to quality information. A one-stop guide to the business, The Restaurant: From Concept to Operation, Fifth Edition gives readers the knowledge they need to conceive, open, and run any type of restaurant, from fast-food franchise to upscale dining room. The book progresses logically, from choosing a good concept to finding a market, developing business and marketing plans, and securing financial backing. Topics covered include location selection, permits and legal issues, menu development, interior design, and employee hiring and training. Along the way, such all-important skills as turning first-time guests into regular patrons are also described. Special features of this Fifth Edition include: Increased focus on the independent restaurateur, with greater emphasis on restaurant business plans, A new chapter on food production and sanitation, Greater emphasis on restaurant business plans, including new exercises, New Profiles, which describe a recently opened restaurant, begin Parts 1, 2, 3, and 4, New coverage of restaurant concepts and use of technology in restaurants, Expanded sections on back-of-the-house and control contents; franchising; and leasing and insurance. This field-proven guide gives students, chefs, and entrepreneurs all of the skills and information they need to master every challenge and succeed in this highly competitive and rewarding industry. Book jacket.

Author Biography

JOHN R. WALKER, DBA, CHA, FMP, is the McKibbon Professor of Hotel and Restaurant Management at the School of Hotel and Restaurant Management at the University of South Florida, Sarasota-Manatee.<BR> DONALD E. LUNDBERG, PHD, (deceased) was dean of the College of Business at United States International University and Professor Emeritus at California State Polytechnic University, Pomona, California.

Table of Contents

Preface	xv
Acknowledgments	xvii
Introduction	1	(16)
Liabilities of Restaurant Operation	4	(1)
French Culinary History	5	(1)
The Birth of Restaurants in America	5	(1)
The Restaurant Failure Rate	6	(1)
Buy, Build, Franchise, or Manage?	7	(6)
Starting from Scratch	13	(1)
Restaurants as Roads to Riches	14	(1)
Summary	14	(3)
Kinds and Characteristics of Restaurants and Their Owners	17	(33)
Kinds and Characteristics of Restaurants	18	(2)
The Big Boys Compared with Independent Operators	20	(1)
Quick-Service Restaurants	20	(9)
Colonel Sanders	21	(1)
Wendy's International Restaurants	22	(1)
Carl Karcher	23	(1)
Cleo R. Ludwig, Founder of L-K Restaurants	24	(1)
Regional Burger Chains	25	(1)
The Subway Story	26	(3)
The Mexican Restaurant	29	(1)
Steakhouses	29	(4)
The Lore of Steak	30	(1)
Outback Steakhouse	31	(2)
Fine-Dining Restaurants	33	(1)
Seafood Restaurants	34	(1)
Italian Restaurants	35	(2)
Chinese Restaurants	37	(1)
Theme Restaurants	38	(3)
The Chef-Owner Restaurant	41	(2)
Women Chefs as Restaurant Partners	43	(1)
Notable Female Restaurateurs	44	(1)
The Bakery-Cafe	45	(1)
Centralized Home Delivery Restaurants	46	(1)
Summary	47	(3)
Concept, Location, and Design	50	(48)
Restaurant Concepts	51	(5)
Concept: Clear-Cut or Ambiguous?	52	(2)
Protecting the Restaurant's Name	54	(1)
The McDonald's Concept and Image	54	(2)
Defining the Concept and Market	56	(1)
The Fine Line Between Junk and Funk	57	(1)
Successful Restaurant Concepts	58	(7)
Concept Adaptation	65	(1)
Changing or Modifying a Concept	66	(1)
Copy and Improve	67	(1)
Restaurant Symbology	67	(1)
When a Concept Fails	68	(1)
The Multiple-Concept Chain	69	(1)
Sequence of Restaurant Development: From Concept to Opening	70	(2)
Planning Services	71	(1)
Common Denominators of Restaurants	72	(1)
Utility versus Pleasure	72	(1)
Degree of Service Offered	72	(1)
Time of Eating and Seat Turnover	73	(3)
Square Foot Requirements	74	(1)
Menu Price and Cost per Seat	74	(1)
The Correct Number of Seats	75	(1)
Advertising and Promotion Expenditures	76	(1)
Labor Costs as a Percentage of Sales	77	(1)
Planning Decisions that Relate to Concept Development	77	(2)
Profitability	79	(1)
The Mission Statement	79	(1)
Concept and Location	80	(1)
Criteria for Locating a Restaurant	81	(12)
Location Criteria	81	(1)
Some Restaurants Create Their Own Location	82	(1)
Sources of Location Information	82	(2)
Traffic Generators	84	(1)
Knockout Criteria	84	(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)
Matching Location with Concept	88	(1)
Restaurant Chain Location Specifications	88	(1)
Takeover Locations	89	(1)
Restaurant Topographical Surveys	90	(2)
Cost of the Location	92	(1)
Visibility and Accessiblity	92	(1)
Design Criteria	92	(1)
Location Information Checklist	93	(3)
Summary	96	(2)
Restaurant Business and Marketing Plans	98	(26)
The Business Plan	99	(3)
The Difference between Marketing and Sales	102	(1)
Solving Customer Problems	103	(1)
Marketing Planning and Strategy	103	(1)
Market Assessment	104	(1)
Market Demand	105	(2)
Market Potential	106	(1)
Market Segmentation, Target Market, and Positioning	106	(1)
Marketing Mix---The Four Ps	107	(14)
Place	107	(2)
Product	109	(3)
Price	112	(3)
Promotion	115	(6)
Olive Garden Marketing	121	(1)
Summary	122	(2)
Financing and Leasing	124	(37)
Sufficient Capital	125	(1)
Preparing for the Loan Application	126	(15)
Budgeting	128	(1)
Forecasting Sales	129	(3)
Income Statement	132	(1)
Budgeting Costs	133	(1)
Gross Profit	133	(1)
Controllable Expenses	133	(1)
Uniform System of Accounts for Restaurants	134	(2)
The Balance Sheet	136	(1)
Preopening Expenses	137	(1)
Cash Flow Budgeting	137	(2)
Productivity Analysis and Cost Control	139	(1)
Seat Turnover	139	(2)
Securing a Loan	141	(11)
Compare Interest Rates	141	(1)
Real Interest Rates	141	(1)
Loan Sources	142	(1)
The Small Business Administration	143	(4)
Stockpiling Credit	147	(1)
Selling the Proposal	148	(2)
Other Sources of Money	150	(1)
Collateral	151	(1)
Keeping the Loan Lines Open	152	(1)
Avoiding Personal Liability	152	(1)
Leasing	152	(6)
Lease Costs	153	(1)
Drawing Up a Lease	153	(2)
Lease Terminology and Length	155	(1)
Specifics of Most Restaurant Leases	156	(1)
Fire Insurance	157	(1)
What Is a Restaurant Worth?	158	(1)
Summary	159	(2)
Legal and Tax Matters	161	(26)
What Business Entity Is Best?	162	(5)
The Sole Proprietorship	163	(1)
The Partnership	164	(1)
The Restaurant as a Corporation	165	(2)
Buy--Sell Agreement with Partners	167	(1)
Legal Aspects of Doing Business	168	(3)
Depreciation and Cash Flow	171	(1)
Accelerated or Straight-Line Depreciation	172	(1)
Retirement Tax Shelters	172	(2)
The Rule of 72	173	(1)
A Reasonable Return on Investment	173	(1)
Business Expenses and Taxes	174	(1)
Reminders	174	(1)
Local, State, and Federal Taxes	175	(1)
Federal Laws Governing Employment	176	(5)
The Federal Wage and Hour Law (The Fair Labor Standards Act)	176	(2)
Employee Information	178	(1)
The Federal Equal Pay Act of 1963 and Federal Child Labor Laws	179	(1)
Wage Garnishment Act	179	(1)
The Age Discrimination in Employment Act	179	(1)
The Employment Retirement Income Security Act	180	(1)
Civil Rights Act of 1964	180	(1)
Legal Aspects of Contract Services	181	(1)
Complications in Discharging Employees	181	(1)
Reporting Tips to the Internal Revenue Service	182	(1)
Selling Liquor to Minors	182	(1)
Time Off to Vote	182	(1)
Wage and Hour Audits	183	(1)
Interpretation and Clarification of Government Regulations	183	(1)
Falls	184	(1)
Summary	184	(3)
The Menu	187	(29)
Capability/Consistency	189	(1)
Equipment	190	(1)
Availability	190	(1)
Price	190	(3)
Factors in Pricing	191	(1)
Menu Pricing Strategies	192	(1)
Calculating Food Cost Percentage	192	(1)
Nutritional Value	193	(1)
Contribution Margin	194	(1)
Flavor	195	(1)
Accuracy in Menu	195	(5)
Kids' Menus	200	(1)
Menu Items	200	(4)
Appetizers and Soups	202	(1)
Salads	202	(1)
Entrees	203	(1)
Desserts	203	(1)
Matching/Pairing	203	(1)
Menu Types	204	(1)
Lunch and Dinner Menus	205	(1)
Degustation Menus	205	(1)
Restaurants in Las Vegas Represent the Best Countrywide	205	(3)
Menu Analysis	208	(1)
Menu Design and Layout	209	(4)
Standardized Recipes	213	(1)
Summary	213	(3)
Bar and Beverages	216	(25)
Alcoholic Beverage Licenses	217	(1)
How to Apply for a License	218	(1)
Bar Layout and Design	219	(2)
Placement of a Bar within a Restaurant	221	(1)
The Speed Gun	222	(1)
Glass Washing	223	(1)
Bartenders	224	(1)
A Basic Bar Inventory	224	(1)
How to Select a Wine List	225	(4)
Wines with Food	229	(1)
Responsible Alcoholic Beverage Service	230	(2)
Third-Party Liability	232	(1)
Controls	232	(7)
Controlling Losses	233	(1)
99 Ways to Steal in a Restaurant or Bar	233	(6)
Summary	239	(2)
Food Purchasing	241	(20)
A Food Purchasing System	241	(10)
The Purchasing Cycle	247	(1)
Who Sets Up the System? Who Operates It?	248	(1)
Food Quality Standards	248	(1)
Buying by Specification	248	(1)
How Much Inventory?	248	(2)
The Mechanics of Ordering	250	(1)
Storage	250	(1)
Types of Purchasing	251	(3)
Buying from Full-Line Purveyors	251	(2)
Co-op Buying	253	(1)
Beware	253	(1)
Buying Meat	254	(1)
Buying Fresh Fruits and Vegetables	255	(3)
USDA Wholesale Produce Grades	257	(1)
Canned Fruits and Vegetables	257	(1)
Selecting the Right Coffee	258	(1)
Summary	258	(3)
Planning and Equipping the Kitchen	261	(24)
The Open Kitchen	264	(2)
Kitchen Floor Coverings	266	(2)
Kitchen Equipment	268	(4)
Categories of Kitchen Equipment	268	(1)
Select the Right Equipment	269	(1)
Match Equipment with Menu and Production Schedule	270	(1)
Total Cost versus Original Cost	271	(1)
Select the Most Efficient Equipment for the People and Skills Available	271	(1)
De-skilling the Job with Equipment	271	(1)
Equipment Stars	272	(9)
The Stove/Oven	272	(1)
Deep-Frying Equipment	272	(2)
Low-Temperature Ovens	274	(1)
Forced-Air Convection Ovens	274	(1)
Microwave Ovens	275	(2)
Infrared Cooking Equipment	277	(1)
Hot-Food Holding Tables	277	(1)
Refrigerators and Freezers	277	(1)
Ice Machines	278	(1)
Pasta-Making Machines	279	(1)
Other Specialty Cooking Equipment	279	(1)
Evaporative Coolers	280	(1)
Other Equipment	280	(1)
Maintaining Kitchen Equipment	281	(1)
Meeting with the Health Inspector	282	(1)
Summary	283	(2)
Restaurant Operations and Control	285	(24)
Restaurant Operations	286	(1)
Front of the House	287	(4)
Control	291	(4)
Liquor Control	295	(2)
Controllable Expenses	297	(1)
Labor Costs	298	(5)
Guest Check Control	303	(3)
Productivity Analysis and Cost Control	306	(1)
Seat Turnover	307	(1)
Summary	307	(2)
Organization, Recruiting, and Staffing	309	(33)
Task and Job Analysis	310	(4)
Technical Tasks Vary with the Establishment	311	(3)
Job Descriptions	314	(2)
The Job Specification	314	(1)
The Job Instruction Sheet	314	(2)
Organizing People and Jobs	316	(3)
Staffing the Restaurant	319	(9)
Recruitment	319	(2)
Preemployment Testing	321	(1)
Interviewing	321	(2)
Selection	323	(2)
Employment of Minors	325	(1)
Employment of Undocumented Aliens	326	(1)
Employee Sources	327	(1)
Civil Rights Laws	328	(3)
Equal Employment Opportunity	328	(1)
The Americans with Disabilities Act	329	(1)
Hiring People Who Are Physically or Mentally Challenged	330	(1)
AIDS	331	(1)
Questions to Avoid on the Application Form and During the Interview	331	(6)
Questions You Can Ask	332	(4)
The Multiple Interview Approach	336	(1)
Telephone References	336	(1)
Careful Selection of Personnel	337	(2)
Screening Out the Substance Abuser	339	(1)
Preemption Physical and Drug Examinations	339	(1)
Summary	339	(3)
Employee Training and Development	342	(22)
Orientation	343	(1)
Training	344	(2)
Part-Time Employees	346	(1)
Training and Development	346	(8)
Training Aids	348	(1)
Combine Training with Development	348	(1)
Slogans Help	349	(1)
Step-by-Step Training	350	(1)
Training Theory	351	(3)
Methods for Training Employees	354	(3)
Behavior Modeling	354	(1)
Learner-Controlled Instruction	354	(2)
The Manager as Coach	356	(1)
Leadership	357	(4)
Better Management Behavior	358	(1)
Characteristics of Effective Managers	358	(1)
Subtleties of Supervision	359	(2)
Motivation through Part Ownership	361	(1)
A Tipping Policy	361	(1)
Summary	362	(2)
Service and Guest Relations	364	(18)
The Service Encounter	366	(1)
Gamesmanship	367	(1)
Greeters	368	(1)
The Server as an Independent Businessperson	369	(1)
Foodservice Teams	369	(1)
Hard Sell versus Soft Sell	370	(2)
Formality or Informality	372	(1)
Setting the Table	373	(1)
Taking the Order	373	(1)
Magic Phrases	374	(1)
The Servers' Viewpoint	375	(1)
The Difficult Customer	376	(3)
Strategies for Handling Complaints	376	(2)
Teen Confrontations	378	(1)
Service Personnel as a Family	379	(1)
Greeter or Traffic Cop	379	(1)
Tact: Always	380	(1)
Summary	380	(2)
Restaurant Technology	382	(17)
Technology in the Restaurant Industry	383	(14)
Back-of-the-House Technology	383	(6)
Front-of-the-House Technology	389	(8)
Guest Services and Web Sites	397	(1)
Summary	397	(2)
Glossary	399	(8)
Index	407