Transcript Restaurant Industry

Restaurant Industry
Overview
□ In this presentation, general
information about restaurant industry
will be given.
Goal
□ To introduce the dynamics of
Restaurant Industry
Objectives
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To learn the history of the Restaurant
Industry
To learn the founders and leaders of
Restaurant
To give statistical information about
Restaurant Industry
To learn restaurant ownership type
To analyze restaurant concepts
To introduce some restaurant technologies
Where have we come from…
□ Cooking in Quantity…
□ Boulanger’s Restoratives…
□ Food Guilds…
□ Inns & Taverns…
□ Early 20th Century…
□ Diners, Drive-ins, Speakeasies, and
Roadhouses…
□ Franchising…
Founders and leaders…
□ Boulanger
□ Marie-Antoine Careme
□ Georges-Auguste Escoffier
□ Delmonico Brothers
□ Cesar Ritz
□ George Pullman
□ John Krueger
□ Ray Kroc
Major changes…
□ System of Inns and Taverns
□ The American Plan
□ 1820s Restaurants
□ Railroad Car
□ Cafeteria
Important Concepts and
Technological Leaps
□ 1803 – the first ice refrigerator
□ 1815 – the first industrial foodservice operation in our
nation was begun when Robert Owen opened a dining
facility for this workers and their families
□ 1825 – the first gas stove
□ 1834 – Bowery Savings Bank of New York began and
employee dining program, which is still in operation
today.
□ 1855 – Harvey Parker offered the first a la carte menu as
part of the European plan at the original Parker House
in Boston.
□ 1860s – the development of the first dishwashing
machine
□ 1860s – the first martini was made in San Francisco’s
Occidental Hotel
Restaurant timeline…
□ Europe
□ 1800 – 1833 – Careme fashioned “La Grande Cuisine”
□ 1825 – La Physiologie Du Gout published by the world’s best
know gourmet, Brillat-Savarin
□ 1825 – 1858 – Alexis Soyer gained culinary eminence. Wrote
Gastronomic Regeneration. Introduced steam cooking at
Reform Club, Long, in 1840s. Only chef to be mentioned in
Britain’s Dictionary of National Biography.
□ 1880 – 1900 – Cesar Ritz enticed the elite from their homes to
hotels for entertaining. Managed the Claridge, the Carlton,
and the Savoy.
□ 1880 – 1935 – Auguste Escoffier, known as “chef to kings and
king of chefs,” worked with Ritz, published Le Guide Culinaire
(1907), considered by many to be the New Testament of
Cookery.
Restaurant timeline…
□ United States
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1670 – First coffee house in Boston, served coffee and chocolate.
1794 – French refugee opened a restorator in Boston. Served truffles, cheese fondue,
and delicious soups.
1829 – America’s first restaurant opened, Delmonico’s in New York City, served lunch,
and had a lady cashier. First of more than a dozen eating establishments that
brought the name “Delmonico’s” to pre-eminence in the service of fine food.
1881 – Louis Sherry opened his first restaurant, developed the art of catering.
1890s – The John R. Thompson Company operates first extensive commissary system
(Chicago).
1916 – Nathan’s Famous Hot Dogs, Coney Island, NY (Nathan Handwerker)
1920 – Orange Julius opened in California by Julius Freed
1921 – White Castle Hamburgers opens in Wichita Kansas
1925 – Howard Johnson’s opens in Wollaston, MA
1926 – Pizzeria Regina, Anthony Polcari, Boston, MA
1926 – Maid-Rite, Floyd Angell, Muscatine, Iowa
1929 – Karmelkorn, WY
1932 – Krystal, Chattanooga, TN
1934 – Steak ‘n Shake, Normal IL
1936 – Carvel Ice Cream, New York NY
1936 – Papa Gino’s, Boston MA
1937 – Krispy Kreme, Salem NC (Vernon Rudolph)
1938 – Big Boy, Glendale CA
1939 – Country Kitchen, Cincinnati OH
Restaurant timeline…
□ United States
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1940 – Dairy Queen, Joliet IL
1944 – Baskin Robbins
1948 – McDonalds, San Berdoo CA (Maurice & Dick McDonald)
1950 – Dunkin Donuts
1951 – Jack in the Box
1952 – KFC, Corbin NY (Colonel Sanders)
1954 – Burger King, Miami FL (James Mclomore/Dave Edgerton)
1958 – IHOP, Toluca Lake CA
1958 – Sizzler, Culver City CA
1958 – Pizza Hut, Wichita KS
1958 – S’barro, Brooklyn NY
1959 – Little Caesars, Garden City MI
1960 – Domino’s Pizza
1960 – Hardees
1962 – Taco Bell
1965 – TGI Fridays
1967 – Chick-fil-a
1968 – Red Lobster
1969 – Wendy’s
1969 – Long John Silvers
1969 – Cracker Barrel
Restaurant timeline…
□ United States
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1971 – Schlotzskys
1971 – Starbucks
1972 – Popeyes
1972 – The Cheesecake Factory
1972 – Ruby Tuesday
1974 – Subway
1980 – Applebees
1980 – Fuddruckers
1982 – Olive Garden
1983 – Quizno’s
1983 – Papajohn’s Pizza
1983 – Hooters
1988 – Outback Steakhouse
Major Market Share…
Leading Contract Management Firms
5000
Leading
Contract
Managemen
t Firms
($million)
4500
4000
3500
3000
2004
2500
2000
1500
1000
500
0
Sodexho
Aramark
Compass
Delaw are North
HMS Host
Major Market Share…
Largest Independent Restaurants ($million)
40
35
Largest
Independent
Restaurants
($million)
30
25
2004
20
15
10
5
0
Tavern
Hilltop
Joe's
Bob Chinn's
Spark's
Major Market Share…
Top Quick Service & Fast Food Chains
Outlets Market Share
□ McDonalds
13,099
43%
□ Burger King
8,248
19%
□ Wendy’s
5,315
13%
Major Market Share…
Top Concepts…
□ Asian
Panda Express
□ Pizza
Pizza Hut
□ Italian
Olive Garden
□ Quick Service Boston Market
□ Sandwich
Subway
□ Steak/BBQ
Outback
□ Coffee/Snack Dairy Queen
31.81%
13.4%
33.35%
28.6%
30.8%
32.44%
20.60%
Employment data…
□ Employs 12.2 million
people
□ 9% of employed
persons
□ Increased training in
2005
□ Labor-intensive
□ Almost ½ of the
nation has worked
in this sector
Contributions to the general
economy
Restaurant Ownership Type
Partnership
□ A partnership is the relationship existing
between two or more parties who join to
carry on a trade or business. Each party
contributes money, property, labor or skill
and expects to share in the profits and losses
of the business.
□ A good example is the Trabant University
Center Food Court, it is staffed by both
Aramark employees and Delaware students,
but is still owned as well by the University.
Pros and Cons
□ Sharing Profits
□ Two heads are better than one….
□ Liability Issues
□ Management and Control
Leasing
□ Most Restaurants most commonly use the
Ground Lease. Ground means that a
tenant pays for long term use of a specified
property for an period of time, usually 2-5
years.
□ And example is most every restaurant on
Main Street that pays money to the owners
of the buildings and the town.
Pros and Cons
□ Leasing is less capital-intensive.
□ Capital assets may fluctuate in value.
□ Leasing may provide more flexibility to
a business.
□ If the successful, lessors may demand
higher rental payments.
Franchising
□ Franchising is essentially buying a pre built
Restaurant and the ideals and name that
come with it. Franchisees not only use a
franchiser’s product, service, and
trademark, but also the complete method
for conducting the business, such as the
marketing plan and operations manuals.
□ Darden Properties, McDonalds, and other
QSR’s are prime examples of this.
Pros and Cons
□ As practiced in retailing, franchising offers
franchisees the advantage of starting up a new
business quickly based on a proven trademark and
formula of doing business, as opposed to having to
build a new business and brand from scratch.
□ For some consumers, having franchises offer a
consistent product or service makes life easier, they
know what to expect when entering a franchised
establishment.
□ Loss of control and self thought.
□ Too many franchises in one place can become an
eyesore.
Contract Management
□ Contract Management is used by a
Restaurant owner who wants to own
the property, but do not want the
hassle of running the business.
□ Darden Properties and Carlson
Restaurants Worldwide Inc.
Prevailing Terms
□ Manager vs. Owner – Who wins?
□ To sue or not to sue….that is the
question.
□ Your place or mine?
Pros and Cons
□ Allows an owner to essentially remain hands off and
just watch the P&L statement.
□ Most managements companies in today’s world
have vast experience in what they do, and are
commonly able to better run a Hotel than your
average person.
□ The owner has to pay the management company
a set amount of money. And the management
company always will get their cut regardless of how
bad or well the Hotel is doing.
Restaurant Concepts
Profitable and Satisfying the Owner
Restaurant Concepts
□ A blue print for restaurant business
□ Décor, Menu, Style and Location
□ PR, Advertising, The Promotion and
The
Operation itself
□ Restaurant Name and Restaurant
Owner
Variations Among Restaurants
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Menu Items
Food Quality
Menu Prices
Service
Ambience
Service
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Table Service
Counter Service
Room Service
Self Service
Takeout or Delivery Service
Catogories of Restaurants
□ Quick Service
□ Midscale Restaurant
□ Upscale Restaurant
Types of Restaurants
□ Fast Food
□ Fine Dining
Restaurant
□ Ethnic Restaurant
□ Specialty
Restaurant
□ Chain Restaurant
□ Theme Restaurant
□ Tops Restaurant
Dude? Where’s my check pad?
New and coming technology….
□ RFID Tagging
□ Wireless
□ Programmable menus
□ CRM
□ Automation
□ Biometrics
□ Self Service Cooking