CHAPTER NO.

05
Restaurant Organization
and Management

Prepared by: Sir Syed SHAHNAWAZ

 Factors for Successful Restaurant
Organization

 Guests
 Ambience
 Menu

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 Guests
Everything starts with the Guest or
Customer
•Target Market
•Preferences Analysis
•Trends Analysis
•Loyalty Programs

Qsr, Casual, No Smoking Policy, Customer preference, New

Trends in Market like youth like Fast Food now adays. 3
 Ambience
 Tangible and intangible elements of the
restaurant environment that influence
guest experience.

• Décor • Service methods

• Lightning • Servers and other
• Furnishings employees
• Tableware • Other guests
• Menu 4
Management Fundamentals - Chapter 4 5

Grotta Palazzese, Southern Italy

Management Fundamentals - Chapter 4 6

The Hard Rock Café, Hollywood, USA

 Menu

• Basic Rules

• Menu Preferences

• Menu Categories

• Menu Design

• Menu Prices
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 Menu – Basic Rules
• Give guests what they want
• Use standard recipes
• Take staff’s abilities into account
• Take equipment into account
• Provide variety and balance
• Take the season into account
• Keep nutrition in mind
• Use food wisely 8
Menu Categories & Design

1. Fixed (known as static menu)

2. Cyclical (known as repeated menu)
• Breakfast
• Lunch
• Dinner

3. Specialty (Menu for social gathering,

wedding, meeting seminar etc.) 9
 Restaurant Controls
Effective Controls is result of establishing
standards. Restaurant Managers must keep
track of the followings:-
•Reservation
•Guest ordering
•Guest spending
•Inventory
•Cost & Profit
•Computer network and internet facility 10
 Financial Controls
That tools managers use for analyzing level of
sales, costs and profitability:-
•Accounting System has two important components.
•Balance Sheet: Restaurant financial condition on
particular day.
•The statement of income: Including results of
operation like sales, expenses and net income of the
business for the particular period of time.

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 Operational Controls
Budgeting: Forecasting of revenue, expenses
and profit.
• Menu Planning
• Forecasting
• Purchasing
Control Cycle

• Receiving
Food Cost

• Storing
• Issuing
• Producing
• Serving
• Customer Payments
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• Food Cost Analysis
Key Terms
 FIFO (First in First Out)
 LIFO (Last in First Out)
 Weighted average cost (WAC)
 Perpetual Inventory: Record real time inventory changes.
 Prime Cost: COFS + PAYROLL+EMPLOYEE BENEFITS
 Purchase Specification: Brief description of order item

 Requisition Form: Request

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THANKS
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