Transcript Chapter 2

Chapter 2
Understanding
Foodservice
Operations
Objective
• Recognize various types of foodservice
establishments that employ chefs and
cooks
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Types of Foodservice Establishments
• Cooks and chefs
work in
– restaurants
– hotels
– clubs
– catering operations
– institutional
foodservice
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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?
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Hotels
• Hotel dining
options range from
vending machines
to numerous onsite restaurants of
varying styles and
cuisines
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Hotels
• Hotel restaurants provide service to
registered guests as well as the
community
• Many hotels operate room service and
banquet facilities
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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
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Catering
• Catered events are
often held in a hall
or banquet facility
• Off-premise
catering involves
catering locations
that do not normally
serve food
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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
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Objective
• Compare the different forms of business
ownership
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Legal Forms of Business Ownership
• The three main legal categories of
ownership are
– sole proprietorship
– partnership
– corporation
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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
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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
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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
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Objective
• Explain the different ways foodservice
businesses are organized
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Organization of Foodservice Businesses
• Foodservice businesses can be
organized as
– independent restaurants
– chains
– franchises
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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?
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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?
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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
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Objective
• Summarize the risks and rewards of
entrepreneurship
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Entrepreneurship
• Many entrepreneurs
are attracted to
foodservice
businesses
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Entrepreneurship
• Successful chef-entrepreneurs must have
– great culinary skills
– business management expertise
– the ability to see the larger business
environment and new opportunities
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Risks and Rewards
• Risks of
entrepreneurship
– Repayment of debts if
the business fails
– Restaurants have high
failure rates
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• 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
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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
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Review
• What is institutional foodservice?
– Institutional foodservice supplies meals for
businesses and organizations that want to
provide foodservice for employees and
clients
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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
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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
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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
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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
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