Restaurant Business

Topic 2
Objective of the lecture
● List the classification of restaurants
● Overview of the restaurant operations
● Summarize the different characteristics of
chain and independent restaurants
Restaurant
● The word covers a broad range of food
service operations
● Public places that specialize in the sale of
prepared food for consumption on- or off-
premise
● “Restorer of energy”
Classification of Restaurants
● There are many ways to classify restaurants
in the industry. We can classify them by price,
service level (of type), menu, etc.
● In the next segment, we will classify them into
“dining” and “eating”
Dining Market
● The dining market is defined as including those
restaurants that primarily serve social needs
● People will eat in restaurants (that makeup the
dining market) to escape from boredom, to
socialize, to be waited on, to have a different
experience, and for convenience
Live to Eat
● The most obvious example of a restaurant
type that makes up this market is fine dining
● Fine dining restaurants tend to be
characterized as: full-service, small,
independent, high-quality food and service,
nice ambience, and expensive
● Largely due to the economy, the demand for fine
dining has decreased, resulting in the increasing
popularity of “casual upscale” dining

● Casual upscale restaurants are characterized by

sophisticated menus, excellence in food, strong
management (typically run by chains), and good
wine lists but are slightly less expensive and more
casual than traditional fine dining restaurants
● Examples of casual upscale chains would
include , Ding Tai Fung, Hai Di Lou, Bens
● Independent – Marini’s on 57, Troika Sky
Dining
● Because of their ambience and the overall
experience that they provide, many of these
concepts appear as if they are independent
restaurants
Celebrity Restaurant
● Celebrities who may or may not have food
and beverage backgrounds own these
operations.
● The operations are designed to be
entertaining, drawing heavily on the notoriety
of their owners
Casual Restaurant
● Casual restaurants are a “step-up” from
Midscale Restaurants
● These restaurants have become more
popular in recent years driven by their
popularity with a number of demographic
groups
● These restaurants are characterized by a
relaxed atmosphere, more varied menus and
reasonable prices
Casual restaurants include:
● “Mainstream” casual restaurants such as Chili’s and
Friday’s
● Specialty restaurants such as those focusing on
steak (Outback), seafood (Fatty Crab) or Sushi
(Sushi Mentai), Banana leaf (Devi’s corner)
● Ethnic restaurants include, Chinese (Hakka,
Shanghai), Malay (Authentic), Indian (Northern,
Southern), Mamak, Vietnamese, Thai, Japanese
● Eatertainment
● Theme restaurants including Hard Rock Café
● Fusion (Halal Chinese restaurant)
Midscale
● Midscale restaurants include those
restaurants that have simplified production
systems (requiring lesser skilled employees),
specialized menus and moderately priced
food
● This category of restaurants include:
● Family restaurants
● Cafeterias and buffets
● Pizza (sit-down)
Fast Casual
● Full-service quality in a quick-service format
● Hybrid that combines convenience with
higher-quality ingredients
● Examples include, Papparich, Ipoh white
coffee
Eating Market
● The eating market caters more to meeting biological
needs
● The best (and most obvious) example would be
quick-service restaurants or QSR
● Contemporary popular-priced restaurants, is another
example of eating market
● The eating market can be sub-divided into (1)
on-premise and (2) off-premise dining
● Off-premise can be further classified into:
● Takeout (or take-away)
● Drive through
● Delivery
● Together, these three areas have grown
tremendously as a result for customers’
demand for speed and convenience
Eat to live
QSR
● The QSR industry is characterized by a variety of
things including:
● Location
● Limited menus
● Sales volume
● Fast service
● Types of employees (many part-timers)
● Use of unskilled labor
● Key roles for unit managers
● Highly competitive menu prices
● Chain domination
● Simple unit, complex system
● Some changes have occurred over the last
few years including:
● Going more “upscale”
● Drinks are the main attraction eg roof top bar
● Companies diversifying eg selling brand products at
Supermarket
● Introduction of healthy items (eg Keto Diet, Vegan)
● Expansion of menus
● Nontraditional locations eg Kiosk in shopping malls,
transportation hub
● Café street concept eg Penang Heritage Cafe
● Emergence of take away
● Purchase food on line
Herserlef
 THE EATING AND DINING MARKETS

Upscale
Family Dining Casual
Vending

QSR Fast
Casual Fine Dining
Casual
Dining
Vending
● Making food and beverage available to
customers
Cafeteria
● The typical restaurant can be divided into
three general areas:
● (1) The front-of-the-house;
● (2) The back-of-the-house and;
● (3) The office
The front-of-the-house
● We can see
● Is where the customer is serviced
● The front-of-the-house is the part of the
restaurants with which most of us are familiar
because it is the most visible
● It is where the customer and service staff
come together—as a result it is referred to as
the “marketplace” portion of the restaurant
Tasks for front liners
● Greeting the guest
● Taking the order
● Serving the food (and beverages)
● Checking with the table
● Removing used tableware
● Accepting payment
● Thanking the guest (last opportunity for internal
promotion)
Positions found at Front of the
House
● Hosts/Hostesses
● Servers
● Cashier
● Bussers
● Supervisor
● Manager
The back of the house
● Is where the food is produced/prepared
Responsibilities
● The primary responsibility of the BOH is to
prepare “quality” food
● Food Safety and Sanitation
Tasks
● Various BOH tasks include:
● Purchasing and receiving
● Food “prep”
● Food production
● Portion control
● Quality control
● Safety and sanitation
● Dishwashing, etc.
Position found at Back of the
House
● Chefs -----I Food
● Commis -----I Production
● Kitchen helper
● Purchasing and Receiving personnel
● Stewarding
The Office
● Is where much of the planning and
management takes place
Responsibilities and Tasks
● Correspondence
● Office Procedures
● Document account records
Increasing Sales
● Sell to more people
● Sell more to present customers
● Increase check average during festive
season
● Bundling
● Suggestive selling
● More time for selling
Reducing costs
● Portion Size
● Manpower
● Reduce amenities
Restaurant Industry Organization

Companies are divided into 3 groups

●Chains (corporate)
●Independent
●Franchises
Berjaya Corporation Berhad
Chain Restaurant Systems
● Marketing and Brand Recognition
● Site Selection
● Access to Capital
● Purchasing economics
● Centrally control and information Systems
● Actively involve in new product development
● Comprehensive Human Resource
Programme Development
Independent
● Not associate with chain
● Marketing and Brand Recognition
● Site Selection
● Access to Capital
● Purchasing economics
● Centrally Control and information Systems
● New Product Development
● Human Resource Programme Development
● Flexibility
● Local recognition
● Personal identity
Franchise
● Franchisor
● Franchisee
Franchisor
● Global expansion
● Reputation
● Brand recognition
● Provide the potential for greater profits
Franchisee
● Provision of a recognized brand, refined product,
service concepts, technical assistance
● Dependent on franchisor
● Loyalty fee
● Site Selection
● Pre-opening training
● Operations manuals
● Operating and control procedures
● Information management
● Purchasing, marketing, advertising, new product
development
  | February 17, 2017
Former Chatime master franchisee Loob Holdings' numbers contradict that of
Taiwanese owner who claims that almost 50 out of 165 outlets will remain with them.

Loob Holding Sdn Bhd chief executive officer Bryan Loo (middle, white shirt) speaking to reporters after launching Loob’s new brand, Tealive.