Chapter 8Restaurant Operations

Scope & Sequence1. Front of the House- Definition- Functions- Restaurant

Forecasting- Suggestive Selling2. Back of the House- Definition- Functions

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After Reading and Studying This Chapter, You Should Be Able to:Apply the forecasting technique used in

the chapter to measure expected volume of business

Name and describe the various types of services

Explain the important aspects of food production

Describe the key points in purchasing, receiving, storing and issuing

3 Areas of the Restaurant:

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1.Front of the House2.Back of the House3.Office

Front of the House

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• The key responsibility of the FOH is great satisfaction• It where the exchange of goods and services takes place• The guest expects a friendly greeting, accuracy in order

filling, cheerful willingness to handle any problems that occur.

Tasks: Greeting the guest Taking the order Serving the food Removing used table ware Accepting payment and accounting for sales, charge as

well as cash Thanking the guest and inviting comments and return

business

BACK OF THE HOUSE

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A term used in the restaurant business to refer to kitchen area and staff.

The principal responsibility of BOH is the quality of the food for the guest. Food safety is extremely important.

Cost control, management of supplies are significant responsibilities.

Controlling quality and cost are parallel activities.Standardized recipe is important (correct ingredients

ensuring quality and cost.Closing (cleaning up, shutting down, locking up). The

closing kitchen manager is responsible for major cleaning up. Putting valuable food and beverage into secure storage.

THE OFFICE

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The office staff handles correspondence, phone calls, office procedures. Keeping the books.

Cashier’s deposits, preparation of the payroll, approval of bills, bill payments.

Restaurant Forecasting:Budget projectionsGuest counts or covers

Meal periodsDay of weekSpecial holidays

Average guest check

Making a Profit in Food Service Operation

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Increasing Sales:2 Basic Approaches:1.To sell more to people (advertising)2.To sell more to your present customer (selling

products more). 3. Increase the check average (to increase the

price), however this is not very effective. It may result to the lost of customers.

4.Bundling,(another strategy) ex. Combo meal5.Suggestive selling

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Reducing Cost1.Careful scheduling of employees.2. Improve portion control3.More careful monitoring of the issue and the use of

supplies

Food Cost Control Process1. Purchasing: - Standard for each item (product specification)- Systems that minimize effort and maximize

control of theft and losses from other sources.

2. 2. Receiving:- Is a point of control in the restaurant

operation. The purpose of receiving is to ensure the quantity, quality, and price are exactly as ordered.

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3. Storing/ Issuing:- Records must be kept of all items going into

and out of the stores. If more than one person has access to the stores, it is difficult to know where to attach responsibility in case of losses.

4. Budgeting: (2 Categories) a. Fixed costs – are constant regardless the volume of

business.(rent, interest, depreciation)b. Variable cost – fluctuate with the volume of business, it also

includes the controllable expenses (payroll, benefits, direct operating expense, marketing ands promotion, energy & utility)

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Typical Cost PercentagesCost Percentages

Labor costs 20 to 24%Food costs 28 to 32%Beverage costs 18 to 24%

Controls

Loss of $20 billion a year due to theft and cash mishandling

One out of every 3 employees will steal35% of restaurants fail due to theft75% of missing inventory is from theft73% of all job applications are falsifiedUse of POS can solve some problems

Trends

More flavorful foodIncreased takeout meals and home meal replacement

Food safety and sanitationGuests becoming more sophisticated

Trends in Restaurant OperationsMore flavorful foodsIncrease takeout mealsIncrease food safety and sanitationTwin and multi restaurant locationsQuick-service restaurants in convenience

storesDifficulty in finding good employees.

Summary:

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1. Most restaurants forecast on a weekly and monthly basis.

2. Products need to be purchased, received, and properly stored.

3. The front of the house deals with the part having direct contact with guests.

4. The back of the house do not come contact with guests. This include receiving, storing/issuing, food production, stewarding, budgeting, accounting and control.