Transcript Chapter 2
Chapter 2 Understanding Foodservice Operations Objective • Recognize various types of foodservice establishments that employ chefs and cooks © Goodheart-Willcox Co., Inc. Types of Foodservice Establishments • Cooks and chefs work in – restaurants – hotels – clubs – catering operations – institutional foodservice © Goodheart-Willcox Co., Inc. Restaurants • Categories of restaurants – Full-service restaurants: span a range of styles from fine dining to casual – Quick-service restaurants: customers typically place orders at counter; offer speed, convenience, and reasonable prices; often called fast-food restaurants What are some examples of full-service and quick-service restaurants in your area? © Goodheart-Willcox Co., Inc. Hotels • Hotel dining options range from vending machines to numerous onsite restaurants of varying styles and cuisines © Goodheart-Willcox Co., Inc. Hotels • Hotel restaurants provide service to registered guests as well as the community • Many hotels operate room service and banquet facilities © Goodheart-Willcox Co., Inc. Clubs • Many private clubs provide their members with clubhouses with restaurant and banquet facilities • Members expect fine cuisine and excellent service • Members of city clubs use the club’s dining rooms for business and entertaining purposes © Goodheart-Willcox Co., Inc. Catering • Catered events are often held in a hall or banquet facility • Off-premise catering involves catering locations that do not normally serve food © Goodheart-Willcox Co., Inc. Institutional Foodservice • Institutional foodservice, also known as noncommercial foodservice, allows employees and business clients a place to eat without leaving the premises • Many institutional foodservice operations are run by very large foodservice companies © Goodheart-Willcox Co., Inc. Objective • Compare the different forms of business ownership © Goodheart-Willcox Co., Inc. Legal Forms of Business Ownership • The three main legal categories of ownership are – sole proprietorship – partnership – corporation © Goodheart-Willcox Co., Inc. Sole Proprietorship • The owner of a sole proprietorship is personally responsible for all debts of the business • Sole proprietors have final authority on all decisions © Goodheart-Willcox Co., Inc. Partnership • A partnership agreement spells out the responsibilities of each partner and how profits and losses will be divided • Each owner is personally responsible for all the debts of the business in a partnership • Legally, the partnership is ended when one or more partners dies or leaves the business © Goodheart-Willcox Co., Inc. Corporation • Ownership of a corporation is divided among investors in parts called shares • The corporation has most of the rights and responsibilities of a real person, including responsibility for its debts • In general, corporations pay more taxes than other forms of ownership © Goodheart-Willcox Co., Inc. Objective • Explain the different ways foodservice businesses are organized © Goodheart-Willcox Co., Inc. Organization of Foodservice Businesses • Foodservice businesses can be organized as – independent restaurants – chains – franchises © Goodheart-Willcox Co., Inc. Independent Restaurants • An independent restaurant is a restaurant that is not a part of a group • Each is a unique operation with different ownership What are some advantages and disadvantages for independent restaurants? © Goodheart-Willcox Co., Inc. Chains • Chain restaurants are often referred to as “multi-unit foodservice operations” • A chain uses the same menu, décor, and management practices in each location What are some advantages and disadvantages for chain restaurants? © Goodheart-Willcox Co., Inc. Franchises • The owner of a franchise restaurant pays for the right to operate a franchise and is called a franchisee • The franchisee – pays a fee for the right to use the brand name, concept, logo, and advertising – is required to use the franchise company’s products and operate by its standards © Goodheart-Willcox Co., Inc. Objective • Summarize the risks and rewards of entrepreneurship © Goodheart-Willcox Co., Inc. Entrepreneurship • Many entrepreneurs are attracted to foodservice businesses © Goodheart-Willcox Co., Inc. Entrepreneurship • Successful chef-entrepreneurs must have – great culinary skills – business management expertise – the ability to see the larger business environment and new opportunities © Goodheart-Willcox Co., Inc. Risks and Rewards • Risks of entrepreneurship – Repayment of debts if the business fails – Restaurants have high failure rates © Goodheart-Willcox Co., Inc. • Rewards of entrepreneurship – Being your own boss – Financial gain – Personal and professional pride Review • Name the types of foodservice establishments that employ chefs and cooks – Restaurants, hotels, clubs, catering, institutional foodservice © Goodheart-Willcox Co., Inc. Review • Describe the difference between fullservice and quick-service restaurants – Full-service: servers take the customer’s order and bring the meal to their table; can be casual or fine-dining – Quick-service: customers typically place orders at a counter; offer speed, convenience, and reasonable prices © Goodheart-Willcox Co., Inc. Review • What is institutional foodservice? – Institutional foodservice supplies meals for businesses and organizations that want to provide foodservice for employees and clients © Goodheart-Willcox Co., Inc. Review • Name and describe the three forms of business ownership – Sole proprietorship: one owner; responsible for all debts of the business; makes all decisions – Partnership: ownership shared by two or more people; each owner is responsible for all debts of the business; share business responsibilities – Corporation: a separate entity with legal rights; ownership is divided among investors; the corporation is responsible for its debts © Goodheart-Willcox Co., Inc. Review • Explain how independent restaurants, chains, and franchises differ – An independent restaurant is not part of a group; a chain is a group of restaurants owned by the same company; franchise restaurants are independently owned restaurants that are part of a larger restaurant chain © Goodheart-Willcox Co., Inc. Review • What attracts entrepreneurs to foodservice businesses? – Most restaurants are small, independent operations; small businesses have lower start-up costs; small businesses are easier to manage © Goodheart-Willcox Co., Inc. Review • Describe the risks and rewards of entrepreneurship – Risks: having to repay debts if the business fails; restaurants have high failure rates – Rewards: being your own boss; financial gain; personal and professional pride © Goodheart-Willcox Co., Inc.