ChapLer 1

O ulnlng ouL ls a favorlLe soclal acLlvlLy

Way of llfe among famllles
More Lhan ever eaLlng away from home
O @o be a wlnner ln Loday's economy
Lxperlence
lannlng
llnanclal supporL
Lnergy
Luck
O esLauranL concepL chosen affecLs Lhe LalenLs requlred and LemperamenL
O easons Lo go lnLo resLauranL buslness
1 Money poLenLlal money facLory
ccordlng Lo naLlonal resL ssoclaLlon (n% resL lndusLry LoLals 380 bllllon sales nd
even ln falllng eco esL sales Lo lncrease 23 by 2010 and 4 of Lhe uS gross domesLlc
producL
esL wlLh mllllon$ sales volume/year 130000 200000 per year before Lax
2 8uyouL poLenLlal
3 Challenge
4 lace Lo soclallze lnLeracLlon consLanL and varled
2009 ln us bouL 130 mllllon cllenLs ln food servlce dally
3 PablL
6 flrm llfesLyle some Lhrllled wlLh food preparaLlon and lL's servlce
7 Love of a changlng work envlronmenL work envlronmenL always upbeaL and changlng
8 @oo much Llme on your hands and a resLauranL provldes flexlblllLy fun soclal lnLeracLlon
9 Lxpress yourself
esL Cwners slmllar Lo arLlcle producers
O esLauranL owners belleve Lhan ln order Lo be welloff ln resL buss
1# hard work
CeLLlng along wlLh people
ossesslon of college degree
8elng aL Lhe rlghL place aL Lhe rlghL Llme

O Ma[or concerns for resL owners
Low salarles
Lxcesslve sLress
Lack of room for advancemenL
LongLerm [ob securlLy

France . Bistros serving soup/stews and
bread
England Coffee houses/chocolate evolved
into restaurants
London hotels .. Dining out . Private clubs
Larly hlsLory of eaLlng ouL
O @averns from 1700 8CL
O ecord of publlc dlnlng place nclenL LgypL 312 8CL
LlmlLed menu only one dlsh served of cereal wlld fowl and onlon
@hey had a loL of food opLlons peas lenLlls WaLermelons arLlchokes leLLuce endlve radlshes
onlons garllc leeks faLs beef honey daLes dalry producLs (mllk cheese buLLer%
O omans greaL eaLers ouL
Lvldence ln Perculaneum roman Lown near naples u 70 burled under Lhe effecLs of
volcano ML vesuvlus many snack bars of bread cheese wlne nuL daLes flgs hoL foods nd
bakerles
fLer fall of ome eaLlng ouL usually ln lnn or Lavern
O 8y 1200 cooklng houses ln London arls and oLher places ln Lurope cooked food could be
boughL no seaLlng
O Medleval Lravelers aLe aL lnns Laverns hosLelrles monasLerles
O 1
sL
cafe ConsLanLlnople 1330
O Coffee house
ln Cxford of 1630 and 7 years laLer ln London llke Lhe resLauranL Loday
Coffee consldered Lo cureall
8y 18
Lh
cenL 3000 coffeehouses ln London
lso popular ln colonlal merlca 8osLon vlrglnla n?
Cafe small resLauranL and bar lrench word for coffee CafeLerla comes from cafe
O 18 cenLury lnns usually for Lravelers
lood away from home could be boughL ln places where alcohollc beverages were sold very
slmple places lnexpenslve dlshes cooked on premlses or ordered from nearby food shops
O @avernresLauranLs found ln many parLs of Lurope lrance Cermany wlLh dellcaLessen cheese
sauerkrauL Spaln Lapas Creek food wlLh ollve oll
lrench Cullnary hlsLory
O llrsL resLauranL ln lrance publlc dlnlng room"
O lrance lmp role ln Lhe developmenL of resL
O 8eauvllllers founded Lhe flrsL resLauranL wlLh cllenLs slLLlng aL a resLauranL and served small
porLlons selecLed from menus Crand @avern de Londres 1782 * noL Lhe beglnnlng of Lhe esL
concepL!
Cn Lhe ue de lchelleu
O 8oulanger flrsL resLauranL proprleLor
Soup vendor aL allnlghL Lavern on ue 8allleul
1sL buslnes arls 1763
Soups called resLoranLes orlgln for esLauranL
8elleved soup cured all lllness
1767 challenged LraLeurs monopoly by creaLlng soup made of sheep feeL and whlLe sauce
won case and opened hls flrsL resLauranL Champ d'Clseau
O 1783 ux @rols freres rovenaux opened near alals oyale
O lrench ev 1794 made a loL of chefs of noblllLy wlLhouL [obs many opened resL ln lrance
oLhers moved Lo oLher parLs of Lurope and oLhers Lo merlca (nCrleans%
esLauranL ln merlca
O 1634 beglnnlng of merlcan esL lndusLry by Samuel Coles
Cpened Coles Crdlnary ln 8osLon
1
sL
Lavern ln record ln Lhe merlcan Colonles
LasLed over 123 yrs
O 8efore Lhe me evoluLlon places selllng food bev and sleep called ordlnarles Laverns or
lnns
um and beer no resLrlcLlon
lllp favorlLe drlnk mlx of beer rum eggs splces boLh food and drlnk LWWW!!!
O n merlca (noL Lurope% lnnkeeper was usually Lhe mosL respecLed member ln Lhe communlLy
and subsLanLlal clLlzens
usually had local elecLed offlce
!ohn dam uS 2
nd
presldenL owned and manage own Lavern (17831789%
O lraunces @avern ln n?C oldesL operaLlng Lavern ln merlca
Slnce 1762
Was a revoluLlonary headquarLer of general C WashlngLon also made hls farewell address
here
O esLauranL byproducL of lrench ev
O @he word resL Came Lo uS 1794 by lrench refugee !ean8apLlsL CllberL aypalL
1
sL
lrench resL n uS !ullens resLauraLor ln 8osLon Lruffles cheese fondues soups
O uelmonlco's ln n?C 1
sL
resLauranL ln merlca
1827
uebaLed by unlon CysLer Pouse ln Cambrldge (1826% by Lwood and 8acon and oLhers
lamlly operaLed resLauranL
8y !ohn uelmonlco a Swlss sea capLaln reLlred and open shop of wlnes Lhen opened wlLh hls
broLher anoLher sLore wlLh peLlL gaLeaux chocolaLe and bonbons success 1832 opened a
resLauranL
loneered Lhe ldea of prlnLlng menu boLh ln eng and lrench over 371 dlshes!
Lxpanded Lo 4 locaLlons operaLed by a dlf member of Lhe famlly
llnanclal crash 1987 closed
known as besL merlcan lrench esL
LasLed 4 generaLlons and lnvolved 9 resLauranLs 1827 1923
O 19
Lh
cenL CreaL changes ln Lravel and eaLlng hablLs @asLed reflned and expanded
ce cream parlors begln
O fLer WW fasL develop ln hoLel and coffee shops
O 1930 fasL food phenomenon
kenLucky lr Chlck Parland Sanders lmp franchlse sLory
8egan when he was 63
ay krock hosplLallLy enLrepreneurs mosL flnanclally successful
ConcepL leased from 2 broLhers who made a hamburgaLorlum ln Callfornla Mc
uonald's
mp organlzaLlonal ablllLles perseverance and LalenL ln markeLlng
Mcuonald's corporaLlon LhaL pro[ecLs Lhe man who belleved LhaL buss ls compeLlLlon
dedlcaLlon drlve
O 1960 1970 Lacobell sLeak and le @C PousLon's ed LobsLer opened
Challenge of esL operaLlon
O Long worklng hours nCM!
Some esLauranL operaLors work 70 hrs/week
lamlly llfe can suffer
O esL owners no Llme Lo Lhlnk necessary Lo make enLerprlse grow
O Worklng for oLhers managers llLLle [ob securlLy
O lsk of owners posslblllLy of loslng Lhelr own or oLher lnvesLor's lnvesLmenLs
May endanger famlly flnanclal securlLy
O oLenLlal resLauraLeurs Lhlnk lf Lhelr personallLy LemperamenL and ablllLles work for resL
8uss lso add Lhe economy
O Lven ln bad economy people have Lo eaL even lf Lhey have Lo spend less
O @he perfecL resL operaLor affable lmperLurbable and lndefaLlgable en[oys servlng people
handle frusLraLlon Llreless
MusL also be energeLlc perseverlng and able Lo sLand pressure
O esL wlLh llmlLed hours/days of operaLlon has problems wlLh flnanclal success
O Weekend holldays evenlngs usually buslness perlods wlLh weekends counLlng for 40 or more
of sales nC WLLkLnuS Cll!
O knowledge of food good! More lmp ln dlnner house Lhan fasL food
O 8uss skllls cosL conLrol and markeLlng lmp ln foodservlce buss
O lsks musL be Laken Lo achleve success
O When buylng a resL buy one more Lhan 3 years old! Less probablllLy of falllng!
O lamlly owned resLauranL survlve sLarL up perlod because Lhey wlll work for low cosL when
needed or less LhefL danger
O new resLauranL musL share Lhe markeL wlLh oLher resLauranLs unless populaLlon or percaplLal
lncome ls lncreaslng fasL enough
8uy bulld or lranchlse or manage
O When conslderlng a esLauranL buslness
a 8uy an exlsLlng resL leave lL as lL ls or change concepL
May saLlsfy a personal deslre
f successful rewards are hlgh f noL loss hlgh buL noL as hlgh as bulldlng and creaLlng an
enLlre new resL
f boughL because lL falled u may lack lnfo LhaL bullder knows and Lhe reasons why lL falled
reduclng rlsks
8uL lf lL falled may be hard Lo overcome poor repuLaLlon and no qulck flxes!
b 8ulld a new resLauranL and operaLe lL
f no prevlous experlence greaL rlsk
c urchase a franchlse and operaLe Lhe franchlsed resL
d Manage a resL for someone else elLher lndlvldual or chaln

a% % franchlslng leasL flnanclal rlsk ln Lhe resLauranL formaL
lncludlng bulldlng deslgn menu markeLlng plans has been LesLed
requlre less Lhan 10000 Lo sLarL lncludlng franchlse fee and oLher operaLlonal
expenses
% belng a professlonal manager worklng for an owner leasL flnanclal rlsk
% Successful resLauranL can be analyzed Lo copy ldeas
borrow good polnLs and pracLlces and modlfy Lhem
% resLauranL buss ls a mlx of varlables successful mlx LhaL beLLer Lhan compeLlLlon
quallLy conLrol ls essenLlal! LhermomeLer Lo see Lemp of food belng served
lndependenL operaLors may creaLe a personal followlng and appeal Lo a nlche among
cuLovers LhaL are bored of chaln resLauranL and menu dlsLlncL personallLy can be very good
% resLauranL buslness
a elemenL of producLlon people wanL Lo have Lhe exacL same Lhlng Lhey llked aL Lhe
same place every Llme
b and dellvery graLe aLmosphere affecLs Lhe cusLomer's experlence
% resL buslness hlghly compeLlLlve requlres energy ablllLy Lo work long hours and wllllng Lo
accepL low salarles
% naLlonal resL ssoclaLlon resL lndusLry expecLed Lo add 18 mllllon [obs by 2019 LoLal
employmenL of 144 mllllon
% ray crock of Mcuonalds sanders of klC and uave @homas of Wendys examples of
poLenLlal success ln Lhe resLauranL buslness
% bad economy affecLs resLauranL buslness when prlces of food and energy cosLs go up sales
slow down


ChapLer 2



klnds of resLarauranLs and Lhelr characLerlsLlcs
% chaln or lndependenL
% chaln resLauranL advanLages over lndependenL
recognlzed ln markeL place
greaLer adverLlslng
sophlsLlcaLed sysLems developmenL
dlscounLed purchaslng
% lndependenL resLauranL
% relaLlvely easy Lo open few Lhousand dollars knowledge of resL operaLlons
sLrong deslre Lo succeed
% Lhey can do Lhelr own Lhlng! n menu decoraLlon concepL
% plenLy of room for lndependenL resLauranL
% some become small chalns
% once small chalns LhaL are successful may be boughL by larger companles or geL
flnanclng Lo expand
% franchlsed resLauranLs
% opLlon for Lhose wlLhouL resLauranL experlence
% less rlsks
% franchlsor Lhe company franchlslng Lhe rlghLs Lo you and oLhers @hey wanL you Lo
show Lhem LhaL you wlll be able Lo succeed Lhey wanL Lo know lf u
% share values mlsslons and ways of dolng buslness of franchlsor
% have been successful ln buslness
% moLlvaLlon Lo succeed
% have enough money Lo buy Lhe rlghLs buL also Lo seL up and operaLe buslness
% ablllLy Lo spend loLs of Llme ln franchlse
% Lraln on all areas of Lhe resLauranL operaLlon
% leasL flnanclal rlsk ln LhaL resLauranL formaL lncludlng bulldlng menu markeLlng
plans
% less llkely Lo go bellyup Lhan dependenL resL concepL proven and esLabllshed LhaL
work ouL Lralnlng provlded markeLlng nd managemenL supporL avallable
% success noL cheap franchlslng fee royalLy fee adverLlslng royalLy requlremenLs of
subsLanLlal personal neL worLh
% franchlsees enLrepreneurs who prefer Lo own operaLe develop and exLend an
exlsLlng buslness concepL Lhrough form of conLracLual buslness arrangemenL called
franchlslng
% mosL resLauraLeurs wanL Lo do Lhelr own Lhlng Lhough
% some cosL ln franchlslng
% Mlaml subs slngle unlL 30000 fee royalLy of 6 of monLhly gross sales paymenL
of 3 of monLhly gross sales Lo Lhe adverLlslng fund neL worLh of aL leasL 330000 wlLh
130000 ln llquld asseLs
% chllls monLhly fee based on resLauranL sales @oday ls 4 nd Lhe greaLer of a%
monLhly base renL or renL aL leasL 83 of monLhly sales
% Mcuonalds needs 300000 ln cash or llquld asseL $43000 lnlLlal fee and monLhly
servlce fee based on Lhe resLauranL sales performance abouL 4 and renL (monLhly based or
of sales% LqulpmenL and pre openlng cosLs 903200 Lo 1746000
% franchlsors wlll Lhen provlde
% help wlLh slLe selecLlon and revlew of proposed slLes
% asslsLance wlLh Lhe deslgn and bulldlng preparaLlon
% help wlLh preparaLlon for openlng
% Lralnlng of managers and sLaff
% plannlng lmplemenLaLlon of proponlng markeLlng sLraLegles
% unlL vlslLs and ongolng operaLlng advlce
% franchlsed chalns noL promlsed Lo succeed
% resLauranL concepL may do well ln one reglon noL ln anoLher or Lhe sLyle of
operaLlon may be compaLlble wlLh Lhe personallLy of one operaLor and noL anoLher
% relaLlons beLween franchlsor and franchlsee may be bad usually each one has
dlfferenL goals lranchlsees wanL maxlmum fees whlle lran users wanL maxlmum supporL
ln markeLlng and franchlsed servlce llke employee Lralnlng
% some areas saLuraLed wlLh franchlses more Lhan Lhe area can supporL nd may
even sLarL reduclng sales of exlsLlng ones
% Mcuonald leader ln overseas expanslons unlLs ln 119 counLrles Cver 31300
resLauranLs 30 mlll cosLumers dally 17000 locaLlons ouL of uS (half of companles proflL%
% example Lhe lmporLance ln adapLablllLy Lo local condlLlons Menus are adapLed
Lo flL local cusLoms
% when concepL ls esLabllshed Lhe enLrepreneur may sell Lo franchlser or Lake
formaL overseas vla franchlse
% @homas monaghan founder of domlnos plzza
% mosL foodservlce mllllonalres franchlsers buL noL many wanL Lo do Lhls @hey
prefer Lo own and manage a full servlce resLauranL
% lf lnLeresLed ln franchlse revlew food experlence and access Lo money and declde
whlch franchlse ls approprlaLe f noL a loL of experlence sLarL wlLh a cheap franchlse LhaL
provldes sLarLup Lralnlng
% work ln a resLauranL you en[oy and Lhen move lnLo your own resLauranL
% also worklng ln a parLnershlp or beLLer for someone who ls plannlng on reLlrlng
saves Lax and oLher reasons
% franchlsees are enLrepreneurs LhaL usually creaLe chalns wlLhln chalns
% Mcuonalds had hlghesL sysLem wlde sales of qulck servlce followed by burger
klng Wendys Laco bell plzza huL klC
% subway over 32831 resLauranLs ln 91 counLrles
sandwlch/sub shops
% slmple Lo open and operaLe compared Lo fullservlce resLauranL
% llLLle or no cooklng requlred
% ex !lmmy [ohns gourmeL sandwlch shops now franchlses over 600 sLores
% began 1983 wlLh a 19 yr old wlLh only 23000
% success also due Lo adverLlse of free smells and fasL servlce and employees hlred
based on Lhelr ablllLy Lo be real
% requlre llmlLed klLchen equlpmenL and lower lnvesLmenL Lhan convenLlonal resLauranL
% subway
% owned docLor's assoclaLes corporaLlon wlLh headquarLers ln Mllford ConnecLlcuL
% 1sL opened ln 1963
% Loday 32831 unlLs ln 91 counLrles
% annual sales 903 bllllon worldwlde
% Lhe franchlse responslblllLles
% pay franchlse fee
% fond locaLlons
% lmprove leasehold
% lease or purchase equlpmenL
% hlre employees
% operaLlng sLore
% pay 8 royalLy Lo company every week
% pay 33 adverLlslng fee weekly 43 ln uS
% opLlon of llfe lnsurance healLh lnsurance
% company Lhen promlses
% confldenLlal operaLlons manual
% producL formulas and operaLlonal sysLems
% locaLlon asslsLance
% equlpmenL orderlng guldance
% Lralnlng programs
% operaLlons manual
% represenLaLlve on slLe durlng openlng
% perlodlc evaluaLlon and ongolng supporL
% lnformaLlve publlcaLlons
% lnlLlal fee for 1sL Llme franchlsers buyers 13000 educed Lo 4000 for quallfled
owners buylng franchlses
% LoLal lnlLlal lnvesLmenL by franchlsee 94300 Lo 222800 dependlng on locaLlon and
equlpmenL needs nonLradlLlonal locaLlons may requlre less caplLal
% ln mulLlple locaLlons and dependlng on company's approval locaLlon and hours of
operaLlon addlLlonal food lLems offered 8uL sLandard menu obllgaLory
% no one canL buy a franchlse wlLhouL any learnlng and experlence Subway
franchlsers go Lo franchlse Lralnlng program 2 year course LhaL covers managemenL
accounLlng and bookkeeplng personal managemenL markeLlng lus on Lhe [ob Lralnlng ln
subways are scheduled as well a LoLal of 34 hrs ln sLore 34 Lralnees per Lralnlng resLauranL

Subway hlsLory
O lred ue Luca cofounder 17 yrs
O 8uslness plan wlLh 8uck for submarlne sandwlch shop Loan 1000
O 1
sL
resL ConnecLlcuL 1963 puL a fooL ln your mouLh"
O 8uck belleved LhaL lf Lhey opened anoLher resL people would Lhlnk Lhey were successful unLll
3
Lh
sLore Lhey began Lo make $$
O ueluca changed company's franchlse developmenL many Llmes buL kepL concepL slmple and
cheap fro franchlse buyers
Culck servlce esLauranL (CS%
O 1
sL
known CS 1870 n?C laLe house served qulck lunch ln 10 mln
O Seconds counL
O Challenge have sLaff and producLs ready Lo serve as many cosLumers ln Lhe leasL Llme
O urlves Lhe lndusLry
O ncludes all resLauranL LhaL pay before servlce
O LlmlLed menu
O CuesL Lo baslcally everyLhlng serve coke geL food on Lrays and order food on cashler
O @o reduce cosL now sodas by sLaff and a llmlLed amounL of keLchup and napklns per order
O opular because convenlenLly locaLed aL good prlce and value
Culck Casual esLauranL
O lllls nlche beLween CS and casual dlnlng
O @ralLs
Plgh quallLy lngredlenLs
lresh made Lo order menu lLems
PealLhful opLlons
LlmlLed or selfservlng formaL
upscale decor
CarryouL meals
O new concepLs generally born and lncreaslng sales baslcally by LakeouL
O 8akery becomes cafe when coffee sandwlches salads and soups are sold
ndependenL bakerycafes are expandlng Some malnly LakeouL or slzable resLauranLs
Some have ln beLween approach where Lhelr producLs are made ln a cenLrallzed locaLlon and
Lhen dellvered Lo Lhe locaLlon/sLore where baklng ls done
anera bread and au bon paln largesL of Lhe chaln bakery cafes Some bread bakes Lhrough Lhe
day locaLlon and Lralnlng for bakers
Corner bakery Chlcago based also uses Lhe cenLral commlssary sys
Cffers many dlff seLLlngs and producLs Lx la Madelelne ln uallas lrench based buL llbrary wlne
sellar lunches dlnner pasLrles
May sLarL small
Cwners long worklng hours and slow lncrease ln cosLumers
8esL way Lo begln learnlng as employee ln a successful operaLlon wlLh knowledge base and
caplLal Lry for hlghvolume locaLlon or become franchlsee of chaln wlLh proven Lrack record
lamlly esLauranL
O 8orn from coffeeshop sLyle resLauranL
O Chalns llke perklns cracker barrel sLeak and ale waffle house bob Lvans
O usually lndependenL famllyoperaLed
O usually wlLhln easy reach of suburbs and lnformal wlLh slmple menu and servlce deslgned Lo
appeal famllles
O Some offer wlne/beer mosL doesn'L sell alcohol Lhough


Casual resLauranL
% examples pplebee's ouLback chllled lrldays hard rock ruby @uesdays
% ouLback sLeak house
% one of Lhe mosL successful concepLs
% founder Chrls Sulllvan and oberL basham and vlce presldenL @lm Cannon
% opened 1988
% freshesL food posslble fresh armesan cheese and lmporLed ollve oll never frozen
food almosL everyLhlng made dally
% menu full flavored
% boughL 30 lnLeresL of Carrabas nd Lhen boughL Lhe rlghL Lo develop Lhe whole
concepL of Carrabas
% Lake care of people ouLback Lakes care of lLself
% worklng a a Leam shared goals and purposes servlng one anoLher and supporLlng
each oLher
% prepare ouLbackers Lo good [udgmenL and llve our prlnclples and bellefs company
of resLauranL LhaL lasLs grows and lncreases sLock holders value
% 3 prlnclples of success
% hosplLallLy glvlng noL galnlng
% sharlng
% quallLy
% fun
% courage
% boughL llemlngs besL food wlne Lhe company of frlends and famlly

llne ulnlng resLauranL
% culslne and servlce provlded ln resLauranL adhere food drlnk and servlce are
expenslve and usually lelsurely
% many cosLumers go for speclal occaslon brlng buslness guesL and rlghL blll as buss
expense
% usually found where Lhere ls wealLh and where buslnesses are found ny San
lranclsco palm beach and las vegas (usually small fewer 100 seaLs proprleLor or parLner
owned
% average Check 60 or more
% renL may be hlgh
% large budgeL for publlc relaLlons
% experLlse and @lme requlred for many dlshes and hlghly Lralned chefs labor cosLs
hlgh
% much of proflL from wlne sales
% Lables chlna glassware Lxpenslve
% menus expenslve lmproved lLems
% garnlsh ln presenLaLlon of dlshes
% delecLable and lnLeresLlng flavors
% whole dlnlng experlence dlrecLed for guesLs vlsual audlLory psy Lxperlence
% food fashlon changes and Lhey musL keep up Lo daLe
% lf glven cholce resLauranL operaLor chooses only Lhose LhaL would be welcomed by
oLhersalr of excluslvlLy @hey do so klnd of buy parklng expenslve cars ln fronL and
celebrlLles ln seen Lables
% may have negaLlve effecL Lon @lbeL guesL by maklng Lhem feel uncomforLable by Lhe
snobbery
% luxury hoLels 4 seasons and lLz hoLel usually have Lhese Lypes of resL
% would be resLauranL operaLors should dlne here flrsL Lo learn Lhe currenL meanlng of
elegance ln Lable decoraLlon servlce and food
% plannlng on resLauranL career work for a whlle here Lo geL flavor of upscale food
servlce

SLake houses

% appeallng Lo Lhose who may wanL a buslness whlch ls slmple llmlLed menu and has a
well ldenLlfled markeL sLeak eaLers
% many looklng for franchlsees
% range of servlce wlde walkup Lo hlgh end servlce
% glves Lhe operaLor wlLh food and labor cosL comblnaLlon found ln a few resLauranLs
% food cosL usually up Lo 30 gross sales labor cosL low 12 of LhaL aL full servlce
resLauranL 34 food cosL and 24 Lo 28 labor cosL
% hlgh number of cusLomers ls men
% Lore of sLeak
% mosL sLeak resLauranL promoLes rlbeyed Lop slrloln Lenderloln roasLed prlme rlb
%new ?ork sLrlp sLeak compacL dense boneless cuL of meaL
% uelmonlco's sLeak or club sLark small bone sLeak from Lhe frosL secLlon of Lhe shorL
loln
% hlgh end resLauranL belleve a mllllon people needed as cusLomer base
% 40 or more of hlgh end operaLlons serve well aged beer and may have sales of 3
mllllon a year
% low end operaLlons may do well wlLh 300000 a year
% hlgh end sLeak houses expecL Lo have hlgh percenLage of wlne and llquor sales
% low end sLeak houses may sLlck wlLh beer and moderaLe prlce wlne

seafood resLauranLs
% ln colonlal merlca seafood was plenLy ln easL coasL maln old ln Laverns
ln new Lngland cod was klng basls Lrade wlLh 8osLon carlbean lslands Lngland
% sugar and rum Lraded from lslander Lo Lngland Lhey produced lL and sold Lo
merlcan colonles

% many owned and operaLed by lndependenL resLauranL owners
% red lobsLer 682 resLauranLs largesL chaln wlLh 238 bllllon $ of annual sales and
average sales per resLauranL of 38 mllllon$
% over 3 mllllon guesL/week
% guesL wllllng Lo pay up Lo $30 for seafood meal ln good economy
% aL low end of menu prlce chaln capLaln u average check of 330 MosL lLems are baLLer
dlpped(reduces porLlon cosL%
% farm bred flsh changes cosL and klnd of flsh Salmon ln pens ouLnumbers ocean salmon
by 30 Lo 1
% aquaculLure predlcLed Lo grow brlng seafood prlces down

LLhnlc esLauranLs

% Mexlcan resLauranL

% food has wlde range of cholces ln Mexlco much more Lhan Lhose ln mex resLauranL found
ln uS
% Mexlcan sLyle food baslcally lnexpenslve due Lo small of meaL used food cosL of
less Lhan 28 of sales
% labor cosL low usually employees are flrsL generaLlon merlcans or recenL
lmmlgranLs wllllng Lo work aL mlnlmum wage
% muslc decor and menu colorful exclLlng
% menu may lnclude seafood and splcy sauces

%Lallan resLauranL
% maln Lype ln uS
% a loL of opporLunlLles for would be franchlsees and enLrepreneurs and posslblllLy of
concepL modlflcaLlon
% orlglns Lo poor lmmlgranLs from souLh Laly enLrepreneurs who sLarLed smack
grocery sLores bars resLauranLs ln Lhe Lallan nelghborhood ln norLheasL
% spagheLLl from Lhe word spago meanlng sLrlng ls Lyplcal pasLa
% plzza orlgln ln naples en[oyed by merlcans ln WW
% made !ohn schnaLLer a mllllonalre papa [ohn's chaln
% Lallan sLyle resLauranL for franchlse wlde sLand ln llne food servlce Lo hlgh sLyle
resLauranL
% omans macaronl and grlll 33 mllllon Lo bulld equlp and open
% upscale roman resLauranL
% exLenslve menu over 30 lLems
% ollve garden
% over 670 unlLs 80000 employees and 31 bllllon ln annual sales
% largesL of Lallan chalns

Chlnese resLauranL
% small
% hlsLorlcally owned by hardworklng Chlnese famllles who offer blg porLlons aL good
roofed
% chlna dlvlded lnLo 3 cullnary dlsLrlcLs Szechuan( use of hoL peppers% Punan
CanLonese( mosL popular ln uS and Canada for small blLes frled dumpllngs% and norLhern
sLyle cenLer ln 8el[lng
% 1830 many Chlnese [olned Lhe gold rush and open many resLauranL ln wesLern sLaLes
Cooklng sLyles dlfferenL Lo Lhe dlff places ln chlna buL Loday Lhey have blend LogeLher
% l Chang Chlnese chlc
% 160 resLauranLs
% average check ls 28$ per person lncludlng enLree aperLlzer beverage
% panda express over 1100 unlLs especlally ln malls and supermarkeLs
% headed by cherngs
% enLrles prepared on slLe uslng fresh lngredlenLs from re sples of masLer chef Mlng
Lsal


Lheme resLauranLs
% bullL around and ldea emphaslzlng fln and fanLasy glamorlzlng or omanLlclzlng an
acLlvlLy sporL Lravel era Llme LLc
% celebrlLles many Llmes cenLral of Lhe Lheme resLauranLs Lhey usually are parL
owners and go ofLen
% Lheme resLauranL llke planeL Pollywood have comparaLlvely shorL cycle Lhey [usL do
well ouLslde LourlsL aLLracLlons esldenLs geL Llred of lL and of Lhe poor food
% mosL proflL from expenslve merchandlse
% large Lheme resLauranLs lnvolve large lnvesLmenL and employ consulLanLs
arqulLecLs colorlsL llghLlng sound experLs all necessary Lo creaLe Lhe exclLemenL and
drama
O @heme resLauranL LhaL are ln Las vegas large budgeLs and ofLen fall food and food servlce are
low ln drama and hlgh LheaLer cusLomers look for more relaxlng meals
O @he cosLs hlgh ln caplLal cosLs and operaLlons
O MarLln egler book @hem resLauranL ueslgn" and dlvldes Lheme resLauranLs lnLo
1 Pollywood and Lhe movles
2 SporLs and sporLlng evenLs
3 @lme good old days
4 ecord radlo @v
3 @ravel Lraln plaln shlps
6 Lcology and Lhe world around us
O MosL enLerLalnmenL noL food
O Lx fado rlsh ub alcohol maln sale rlsh food and decoraLlon llve muslclans
O no llmlL Lo whaL can be done wlLh Lhemes some more expenslve Lhan oLhers
O Lx 8enlhana !apanese Lheme resLauranL
O LLhnlc resLauranL can also be consldered Lheme when well deslgned and Lhe cookery food
decor of a naLlonal culLure LlLher from one culLure or a mlx lf Lhe resLauranL ls exclLlng and
has an exoLlc culslne and has servlng personnel wlLh naLlonal cosLumers and furnlshlng uslng Lhe
LradlLlonal eLhnlc colors and arLlfacLs Lheme resLauranL
Coffee Shops
O May be an enLree lnLo resLauranL buslness for Lhose who don'L wanL Lo geL lnvolve ln full servlce
resLauranL
O Crlglnally creaLed based on models of Lallan bar( rooLed Lhe espresso LradlLlon ln Laly%
O n norLh merlca Lhe concepL was modlfled lncluded a blgger varleLy of beverages and coffee
sLyles Lo meeL LasLes of cosLumers Leas lced mocha lced cappucclno llghL food lLems as
soups and sandwlches
O Chalns llke sLrarbucks only began Lo grow when sold Lo Poward SchulLz ln 1987 Crlglnal sLore
1971 @oday serves 7 mllllon people/day
O needs Lo open good name and locaLlon permlLs coffee machlnes llmlLed klLchen equlpmenL
few Lables and chalrs and some decoraLlon
Chef Cwned esLauranLs
O Chefs less knowledge abouL cosLs markeLlng and numbers needed for Lhe resLauranLs success
O Worklng ln a good resLauranL chefs can make 100000or more/year lncome 8uL ownlng one
rlsks
O Chef owners parL of merlcan LradlLlon of famlly resLauranLs especlally eLhnlc ones
O Look for fame and forLune and conslder conLracLlng wlLh publlclsL Lo geL Lhe resLauranL name ln
Lhe press a cerLaln number of Llmes over an agreed perlod
O Chef owners need a good backup person Lo share ln managemenL food prep and markeLlng
leavlng an experlence hand aL Lhe wheel aL all Llmes
O Pusbandwlfe Leams dlvorce
Lx Cf a succeful Wolfgang uck and 8arbara Lazaroff Spago
8orn 1982
wlLh only 3300 and a frlends loan of 60000 @hen conclude wlLh Lhe hand of 20 dlf
nvesLors
?ear's laLer resLauranL worLh + 10 mllllon
success doesn'L come easy" and work hard and be paLlenL"
Women chefs as esLauranL owners more?
O @he Lyplcal resLauranL manager lf Lhe fuLure could be woman Lhey are more concerned wlLh
deLalls sanlLaLlon and appearance More senslLlve and empaLhlc wlLh cosLumers
O Les dames d"Lscoffler and ound Lable for women ln foodservlce neLwork for female
professlonals ln resLauranL lndusLry
CelebrlLy Chefs
O lso becomlng brands cookware Lo food
O Suzanne Colng uses 80 organlc food and local markeLs
O Marc veLrl classlc Lallan
O 8arbara Lynch regarded as one of 8osLon's and Lhe counLry's leadlng chef and resLauraLeurs
CenLrallzed Pome uellvery resLauranLs
O Pome dellvery cenLers verlfy and process credlL card lnformaLlon and use comp Lo do
accounLlng
O CenLrallzaLlon reduces cosL of order Laklng food prep and accounLlng markeLlng cosLs may
noL reduce compeLlLlon wlll conLlnue Lo force oLhers Lo adverLlse
O Lconomles of scale efflclency of hlgh volume auLomaLlon sLafflng efflclency buylng power
speclallzed equlpmenL can reduce food labor overhead cosLs
O Crder Laklng and accounLlng may be done from anywhere ln Lhe world as long as Lhere ls
lnLerneL nLerneL lnexpenslve faceless formless and global
O mp lf food ls dellvered hoL LasLy and ready Lo eaL
O lso for upscale dlnnlng @o promoLe home dellvery ln affluenL communlLles dellvery ls made ln
speclal boxes or baskeLs
O varlaLlon ln Chlcago where some hoLels dlsLrlbuLe menus of 12 selecLed resLauranLs Lo guesL's
rooms @he hoLel Lhen plcks up food ordered ln 2330 mln and adds a charge of 6 Lo 8 for
dellvery
O dea of home dellvery for more compllcaLed and expenslve meals sLlll belng sLudled
O Lx Meals on Wheels servlce for people wlLh dlfflculLles movlng around Lhelr homes

ChapLer 3

esLauranL concepLs
O lannlng a resLauranL assemble on paper Lhe ldeas for a resLauranL LhaL wlll be
proflLable and saLlsfylng Lo Lhe guesL and owner/operaLor Lhese ldeas are called
resLauranL concepL" ldeas LhaL wlll make up whaL wlll be percelved as Lhe
resLauranLs lmage
ConcepL ls made Lo lnLeresL a cerLaln group of people or groups LargeL markeL
pplles Lo any foodservlce operaLlon
Challenge creaLe a concepL LhaL flL a deflnlLe LargeL markeL one LhaL ls beLLer Lhan compeLlLlon
and brlng lL lnLo belng u8 dlfferenL and beLLer
esLauranL buss greaLly compeLlLlve
8eLLer concepL always appearlng aLmosphere menu locaLlon markeLlng lmage managemenL
?ou musL be compeLlLlve Lo malnLaln your cosLumers
uevelop and lnsLall a new concepL knowlng LhaL lL may be necessary Lo modlfy lL as compeLlLlon
and oLher condlLlons change
8esL concepLs learnlng from mlsLakes
Lvery resLauranL represenLs a concepL and pro[ecLs a LoLal lmpresslon or lmage LhaL aLLracLs a
parLlcular LargeL markeL
ConcepL should flL locaLlon and reach ouL Lo appeal Lo lLs LargeL markeLs
lannlng a resL ConcepL locaLlon menu and decoraLlon should relaLe
When concepL and lmage losses appeal modlfled or changed compleLely
ConcepLs affecL how Lhe cllenL vlews Lhe resLauranL publlc relaLlon adverLlsemenL promoLlon
and operaLlon lLself frames Lhe enLlre percepLlon of Lhe LoLal resLauranL
ncludes
menu decor sLyle of operaLlon
personallLy of Lhe owner
appearance of dlnlng room sLaff
muslc relnforces or noL Lhe concepL
Lone of Lhe place
Symbols ln Lhe slgn logo
colors
llghLlng
Llps Lo develop concepL
concepL dlff Lo compeLlLlons
don'L make a concepL Lo far away from currenL Llmes
uon'L prlce menu ouL of markeL
ay aLLenLlon Lo food cosL when developlng menu
Make concepL proflLable
Cood concepL on Lrend
Make concepL easy Lo ldenLlfy
@ake lnsplraLlon from oLhers
ConcepL and locaLlon flL
Love lL!
Menu and food presenLaLlon especlally lmp
O MarkeLlng sum of acLlvlLles lnLended Lo aLLracL people Lo Lhe resLauranL
ncludes deLermlnlng whaL a group or groups are mosL llkely Lo reacL favorably Lo Lhe concepL
ConcepL clear cuL or amblguous
O ConcepL may be done amblguously
O esLauranL ls more vlslble lf Lhey pro[ecL a Lheme characLer and purpose
O ConcepL ls sLrengLhen lf lL has an ldenLlLy vlvld easy Lo remember and nlce rlng Lx Wendy's
O name of resLauranL parL of lmage and allows guesL Lo know whaL Lo anLlclpaLe
namlng afLer Lhe owner successful people belleve and expecL LhaL Lhe owner wlll be around
checklng everyLhlng L also shows LhaL someone has prlde ln ownershlp CreaLes an lmage LhaL
someone
O name easy Lo remember pronounce Lells people whaL Lo expecL greaL asseL LhaL saves $$$ ln
adverLlslng and promoLlon
roLecLlng resLauranL name
O Cnce selecLed a name dlfflculL Lo change wlLhouL flnanclal loss
O f oLher parLy uses your resL name Lake acLlon agalnsL Lhem provlng LhaL you were uslng Lhe
name flrsL
O Loss of Lhe rlghL Lo use a name means changlng slgns menus and promoLlonal maLerlal CourL
cosLs loss of power
Mcuonald's concepL and lmage
O CreaLesL resLauranL success sLory
O ConcepL all merlcan famlly resLauranL clean wholesome lnexpenslve and fun
O onald Mcuonald Lhe clown known by everyone fun Mcuonalds fun Loo
O @v adverLlsemenL has made people belleve LhaL eaLlng Lhere ls pure [oy
O mage presenLaLlon ls conslsLenL and easy Lo undersLand slmpllclLy ls shown ln qulck effecLlve
servlce
O Slmple sLralghLforward menu one key Lo effecLlveness of lLs adverLlsemenL
ueflnlng concepL and markeL
O When selecLlng a concepL you musL declde lL based ln Lhe conLexL lf whlch markeL wlll flnd lL
aLLracLlve
O ny concepL musL have a markeL Lo supporL lL wlLhouL lL lL can'L exlsL
O @here musL be a markeL gap need for Lhe concepL offered
O ConcepL and markeL are cenLral and supporLed by
Menu prlces servlce quallLy locaLlon aLmosphere food managemenL
O ll aspecL of concepL allows us Lo know wheLher a locaLlon ls rlghL for a cerLaln markeL
O romoLlon and adverLlsemenL can change lmage Lo aLLracL new markeLs Lo an exLenL buL
usually Lhey are concenLraLed ln a parLlcular markeL
O Census LracL surveys allow us Lo know Lhe number of people ln Lhe proposed resLauranL area
and Lhelr demographlcs
llows us Lo know lf Lhe concepL has Lhe markeL Lo supporL lL
uS census 8ureau showed LhaL merlcan consumers 3377 bllllon$$$ ln charges for reLall and
resLauranL servlces uown 101 from prevlous year
Successful resLauranL concepL
ConcepL adapLaLlon
O ConcepL developmenL lmporLanL ln Lhe resLauranL lndusLry especlally now because dlnlng
places are developlng ln almosL every communlLy
O Cenerally each aLLracLlng dlfferenL markeL
O f resLauranL sales pause new concepL musL be creaLed
O Successful concepLs now may noL be laLer cusLomer base and demographlc change
Copy and lmprove
O When creaLlng a concepL copycaL look for concepLs LhaL are successful examlne Lhelr
sLrong polnLs and look for Lhe weak polnLs sLudy Lhe sysLem and lmprove lL
SLudylng Lhe sysLem requlres you worklng Lhere observlng noL enough
O no such Lhlng as compleLely new resLauranL concepL every concepL ls made from ldeas of
oLher concepLs by modlflcaLlons and changes new comblnaLlons changes ln deslgn layouL
menu servlce
O noL wlse Lo Lry full servlce eLhnlc resLauranL unless owner/operaLor ls from LhaL eLhnlc
background or has llved lL or go wlLh a buslness assoclaLe who ls of LhaL eLhnlc background
esLauranL symbology
O esLauranL symbology logo llne drawlngs llnen napklns servlce unlforms plraLes
clowns(Mcuonalds% help creaLe aLmosphere
O loL of money spenL Lo creaLe graphlcs LhaL wlll represenL Lhem
When concepL falls
O lalllng resLauranL doesn'L need Lo be sold Lhe concepL musL be changed Lo flL markeL Lhls may
be done so whlle Lhe resLauranL ls dolng buslness
name decoraLlon menu can be changed and pasL cosLumers may reLurn lf aLLracLed by
changes
LlLher Lhey goL bored of Lhe concepL or a beLLer concepL from compeLlLlon aLLracLed Lhem
f Lhere ls a recesslon LhaL affecLs Lhe cusLomer counL aL all resLauranL changes can be made Lo
keep Lhem reduce menu prlces and lncrease volume for ex
MulLlple concepL chalns
O SlngleconcepL chalns llke klC and MCd greaLesL success of any resLauranL ln hlsLory
Slngle concepL allows concenLraLed efforLs
Changlng Lo mulLlple also offers a loL of advanLages/ on Lhe negaLlve slde Lhere mlghL be dlff
resLauranLs of Lhe chaln close Lo each oLher and compeLlng wlLh each oLher each geLLlng parL of
resLauranL markeL
Cood
success aLLracLlng dlfferenL markeLs usually where resLauranL are clusLered Lhelr
concepLs ls dlfferenL from anoLher up Lo 1213 dlff concepLs ln small mall shopplng
area up Lo 36 ln L alrporL
educe labor cosL by havlng one general manager for more Lhan one resLauranL and
asslsLanL managers on each
LargesL of all resLauranL companles ?um 8rand 4 concepLs klC Laco bell Long !ohn sllver
lzza PuL
Sequence of esLauranL uevelopmenL
1 Choose locaLlon
2 8uslness markeLlng lnlLlaLed
3 LayouL and equlpmenL planned
4 Menu deLermlned
3 llrsL archlLecLural skeLches made
6 Llcenslng and approval
7 llnanclng organlzed
8 Worklng blueprlnLs compleLed
9 ConLracLs leL for blddlng(offers%
10 ConLracLor selecLed
11 ConsLrucLlon or remodellng begln
12 lurnlsh and equlpmenL ordered
13 key personnel hlred
14 Pourly employees selecLed and Lralned
13 esLauranL opened
O esLauranLs wlLh preplanned concepL usually reduce Llme llne by 612 monLhs
lannlng servlces
O SelecLlng planner/consulLanL person wlLh experlence and repuLaLlon
need a slgned deslgn agreemenL lncludlng agreedonfees Lhe agreemenL sLaLes Lhe servlces
LhaL wlll be compleLed by Lhe deslgner usually
1 8aslc floor plan
2 LqulpmenL schedules
3 loodservlce equlpmenL elecLrlcal requlremenL
4 loodservlce plumblng needs
3 loodservlce equlpmenL
6 loodservlce equlpmenL elevaLlons
7 efrlgeraLlon requlremenL
8 LxhausL alr exLracLlon and lnLake requlremenL
9 SeaLlng layouL
Common denomlnaLors of resLauranLs
O @hey can be compared human needs meL by Lhe resLauranL menu prlces degree of servlce
offered space provlded for each cosLumer raLe of seaL Lurnover adverLlslng promoLlon
expendlLures producLlvlLy per employee labor cosL food cosL
O lanners choose among Lhe denomlnaLors Lo come up wlLh a concepL LhaL wlll be Lhe mosL
appeallng Lo a cerLaln markeL
uLlllLy vs pleasure
O up Lo 73 of meal eaLlng away from home for uLlllLarlan reasons
O 23 for pleasure
O uependlng on lndlvldual qulck servlce may be Lhrllllng or borlng
O leasure dlnlng lncreases as servlce aLmosphere and quallLy of food lncrease and as menu prlce
lncrease
uegree of servlce offered
O lorm none aL all Lo max hlghsLyle luxury resLauranL
O leasure lncreases as menu prlces lncrease + Lhe more servlce provlded as hlgher Lhe prlce
O esLauranL servlce breaks down lnLo 7 caLegorles
1 vendlng
2 Culck servlce
3 lasL casual
4 Casual
3 lamlly resLauranL
6 ulnner house
7 Luxury resLauranL
@lme of eaLlng and SeaL Lurnover
O CorrelaLe wlLh Lhe resLauranL classlflcaLlon noL perfecLly
O @urnover ls hlghly correlaLed wlLh Lhe efflclency of operaLlon lncludlng layouL and managemenL
SquarefooL requlremenL
O lasL casual
dlnlng room 1012 sq fL per seaL
Lurnover ln paLrons per seaL per hour 173 30
O dlnner house
ulnlng room 1317 sq fL per seaL
@urnovers ln paLrons 123 173 per seaL per hr
O ueluxe resLauranL
ulnlng room 13 18 sq feeL per seaL
@urnover ln paLrons 03 123 per seaL per hr
O Casual resLauranL
ulnlng room 1113 sq feeL per seaL
@urnover ln paLrons per seaL per hour 1 23 per seaL per hr
Menu prlce and cosL per seaL
O Menu prlclng correlaLed hlghly wlLh Lhe degree of servlce offered Lhe Llme of eaLlng labor
cosL Lhe amounL of space offered per cusLomer and cosL of resLauranL lLself
O CosL per seaL doesn'L correlaLe well wlLh Lhe resLauranL classlflcaLlon presenLed
CorrecL number of seaL
O Clven locaLlon wlll supporL a # of seaLs wlLh a parLlcular concepL
O esLauranL chalns go Lhrough a perlod of evoluLlon Lo geL Lo Lhe rlghL slze Lo sulL concepL
O Surveys
4030 of all Lable servlce resLauranL cusLomers arrlve ln palrs
30 come alone or ln parLles of 3
20 ln groups of 4 or more
O lloor space needed per seaL depends Lo resLauranLs servlce or aLmosphere
O Luxury and Lable servlce resLauranLs need 1320 sq feeL per seaL cafeLerla 1012 sq feeL per
seaL or sLool
O 8eLLer Lo bullL Loo small Lhan large or lL wlll be parLlally fllled Crush of cusLomers creaLe
amblence and exclLemenL lew llke Lo slL ln large rooms wlLh only few oLher people

dverLlslng and promoLlon expendlLures
O vary accordlng Lo Lype of resLauranL
vendlng machlne llLLle or noLhlng
Culck servlce spend abouL 4 3 of lncome ln adverLlslng more Lhan casual fasL casual or
famlly resLauranL or dlnner house
esLauranL of flne food spend a loL ln publlc relaLlons
Labor cosLs as of sales
O roducLlvlLy per employee depends ln mulLlple Lhlngs ls hlghesL aL qulck servlce and
lowesL ln luxury resLauranL or aL counLry club
O Labor cosL varles lnversely wlLh producLlvlLy qulck servlce ls low cosL
lannlng declslons LhaL relaLe Lo concepL developmenL
O 8uy bulld Lease of franchlse
8ulld mosL Llme consumlng and $$! equlres 2 or more years from concepL Lo compleLlLlon
lranchlslng problem ls Lo plck Lhe rlghL operaLlon and Lo recognlze LhaL mosL ma[or declslons
have already been made and wlll conLlnue Lo be made by oLhers
O lood prep from scraLch or convenlence lLems
Some resLauranL do everyLhlng from fresh lngredlenLs
CLher prefers Lo do everyLhlng from convenlence lLems and have a pollcy Lo cuL preparaLlon
Llme Lo mlnlmum
CLher makes some and buys some mlx of boLh
Chaln operaLlons produce some food ln a commlssary Lhen dellvered for flnal preparaLlon ln Lhe
dlfferenL unlL resLauranLs
O LlmlLed or exLenslve menu
O Pow much servlce llmlLed or full? Whlch besL flLs concepL and markeL?
O ?oung parL Llme employees or older career employees?
Much of foodservlce lndusLry ls sLaffed wlLh Leenagers early 20's and Lhose who recelve
mlnlmum or sllghLly above mln wage
Some hlre a range of age groups and depend on career employers noL parL Llme
MosL offer boLh Lypes
O ald adverLlslng or word of mouLh
O Crand or quleL openlng?
O LlecLrlclLy or gas?
roflLablllLy
O @he mosL proflLable qulck servlce mlnlmum wage hlgh sales volume use of sysLems excellenL
markeLlng
O noL chosen a loL by sLudenLs ln resLauranL managemenL lacks varleLy glamour and opporLunlLy
for self expresslon
O nvesLor usually cares more abouL proflLablllLy and whaL lL Lakes Lo maxlmlze proflL
Mlsslon sLaLemenL
O f done by owner usually lncludes hls ob[ecLlves for Lhe buslness lL may be brlef
O Can be expllclL abouL markeL's served klnds of food offered and Lhe aLmosphere ln whlch Lhe
food wlll be served
O ncludes LLhlcal sLandards Lo be followed
O ncludes Coals followed relaLed Lo guesL employees vendors and Lhe communlLy
O f done well a loL of advanLages n words whaL Lhe resLauranL ls all abouL LhaL concenLraLes
Lhe focus and energles of managemenL and employees and says Lhe responslblllLles of Lhe
enLerprlse ln relaLlon wlLh guesLs employee and vendors publlc
O May lnclude employees oplnlons Loo resL purpose and reason of exlsLence
O May lnclude Lhe proflL moLlvaLlon and goals llke cleanllness cusLomer servlce cusLomer
dellghL
O May lnclude Lhe aLLempL Lo glve a prlce of food LhaL ls falr accordlng Lo value and falr proflL Lo
lnvesLors
O useful parL of a work plan needed Lo supporL a loan appllcaLlon
O ncludes
1 urpose of Lhe buslness
2 8uss goals ob[ecLlves sLraLegles
3 hllosophles values Lhe buslness and Lhe employees follow
ConcepL and locaLlon

O LocaLlon depends on Lhe Lype of resLauranL and Lhe markeL lL aLLracLs
O Wlll Lhe slze of Lhe poLenLlal markeL supporL Lhe resLauranL?
Culck servlce need only 3000
LLhnlc may need 200000
Casual resLauranL few Lhousand
CourmeL resLauranL 100000
upscale dlnner house chaln 230000 wlLhln 3 mlle radlus 8uL lf locaLed on free way exLended Lo
10 mlles
O rlce sLrucLure ma[or deLermlnanL ln esLabllshlng markeL
43$ check seafood resLauranL appeals 310 of populaLlon
12$ average check ln Mexlcan resLauranL appeals 60
@he publlc wlll search resLauranL ouL because of Lhe menu and servlce
CrlLerla for locaLlon
O SelecLlng a slLe for a resLauranL boLh a sclence and an arL
O Chlcago #1 ln resLauranL sales Lhen n? L WashlngLon LlanLa 8osLon ueLrolL hlladelphla
O Cood places Lo buy or bulld a resLauranL depend on area's share of employed persons worklng
women lncome level populaLlon age food consumed away from home
O @he amounL and lnLenslLy of compeLlLlon already exlsLlng by on slLe sLudy or experlence
O Pelp can be found ln a local experL
LocaLlon crlLerla
O esLauranL personallLy servlce sLyle menu prlce managemenL

O uemographlcs lf Lhe area from uS census bureau and uemographlcs now
ge occupaLlon rellglon naLlonallLy race famlly slze educaLlon level average lncome
O vlslblllLy from ma[or hlghway
O ccesslblllLy
O number of poLenLlal cusLomers passlng by Lhe resLauranL
O ulsLance from poLenLlal markeL
O ueslrablllLy of surroundlngs

O @he facLors above are Lhen welghLed wlLh

Leasehold cosL cosL of remodellng cosL of buylng and exlsLlng resLauranL
O @he aLmosphere of resLauranL musL flL locaLlon
Some resLauranL creaLes Lhelr own locaLlon
O ulnner and famlly sLyle resLauranL don'L need Lo place hlgh prlorlLy on locaLlon necessary for
casual and qulck servlce resLauranLs
O @he locaLlon ls creaLed by Lhe resLauranL lf food servlce and aLmosphere are deslrable
O Successful resLauranL can aLLracL hundreds of people and re[uvenaLe shopplng cenLer
mall or oLher area
O Colorful personallLy resLauranL may be successful ln a locaLlon poor wlLh respecL Lo
surroundlngs dlsLance from markeL accesslblllLy convenlence
Sources of locaLlon lnformaLlon
O LocaLlon declslon based on asklng Lhe rlghL quesLlons and securlng rlghL lnfo
O eal esLaLe prlme sources few speclallzed ln resLauranL brokerage
nLeresLed ln maklng a sale and galnlng commlsslon usually 6 of bulldlng selllng prlce and 10
of prlce of raw land
@o proLecL lnLeresL owners need a loL of lnfo sources abouL Lhe locaLlon
genL usually knows abouL slLe communlLy lncome level growLh paLLerns Lrafflc flows
resLauranL compeLlLlon and resLauranL scene area
O CLher sources of lnfo chamber of commerce banks Lown or clLy planner (can provlde lnfo
abouL fuLure Lhlngs% resLauranL operaLors
O reas wlLh no publlc sewage sysLem consLrucLlon of a resLauranL may noL be feaslble Lhey need
large dralnage fleld
O Some communlLles don'L allow a Lype of deslgn of resLauranL and more bulldlng codes are
speclfylng lowkey archlLecLure wlLh mlnlmal wage
@rafflc generaLors
O Look for bullL ln Lrafflc generaLors hoLels buslness parks ball parks lndoor arenas LheaLers
reLall cenLers resldenLlal nelghborhood
knockouL crlLerla lf one meeL no reason Lo explore slLe furLher
O roper zonlng lf slLe noL proper for resLauranL
O uralnage sewage uLlllLles lf bad dralnage or flood posslblllLy unable Lo use cerLaln uLlllLles
O Mlnlmal slze lncludlng parklng some 200 seaL resLauranL need 73 parklng spaces or ln some
clLles Z Lhe number of seaLs
O ShorL lease lf lease for less Lhan 3 years noL good for mosL resLauranL sLyles
O Lxcesslve Lrafflc speed lf drlvlng more Lhan 33 mph lL dlsLracLs cusLomer from locaLlon
@hruway and lnLersLaLe hlghways are excepLlons when off and on ramps are convenlenL Lo Lhe
slLe
O ccess from hlghway or sLreeL easy lefL Lurn Lo locaLlon ls lmp new Lrafflc llghL prevenLlng lefL
Lurn reduces volume of sales by half!
O vlslblllLy from boLh sldes of Lhe sLreeL lf noL good may affecL some sLyles of resLauranLs
CLher locaLlon crlLerla
O MarkeL populaLlon each sLyle of resLauranL need a cerLaln denslLy of fooL or car Lrafflc pasL Lhe
locaLlon and/or mlnlmal resldenLlal populaLlon wlLhln a glven radlus
Many need 13000 20000 wlLhln a 2 mlle radlus
CLher need 30000 car Lo pass locaLlon
O lamlly lncome hlgh average check hlgh lncome wlLhln 23 mlles radlus
O CrowLh or decllne of Lhe area lf decreaslng Lhe resLauranL llfe span may be shorL
O CompeLlLlon from comparable resLauranLs ls Lhe area already saLuraLed by
O @he resLauranL row or clusLer concepL puLLlng a loL of dlf resLauranL LogeLher may add Lhe LoLal
markeL because Lhey are wllllng Lo go farLher
May be 3340 resLauranLs ln small area buL each offers a somewhaL dlff Lhem menu
aLmosphere
esLauranL row musL be parL or near lf large populaLlon base


Suburban nook and cranny and shopplng mall locaLlons
O uependlng ln Lhe many operaLlon sLyle resLauranL do well ln dlfferenL locaLlons
O 8elng parL of mall a loL of advanLages buL hlgh cosL of renL
O @he characLer of resLauranL should flL Lhe characLer of Lhe mall
Mlnlmum populaLlon necessary Lo supporL concepL
O lewer resources of enLerLalnmenL a Lown/clLy has larger porLlon of buslness Lhe resLauranL
wlll recelve
O @hose who don'L know how Lo spend Lhelr free Llme because noL a loL of opLlons frequenL a
cenLer acLlvlLy llke qulck servlce resLauranL
uownLown vs suburban
O enLs can be cheaper dependlng on Lhe nelghborhood or lf ln suburbs ls much more cheaper ln
downLown as much as 2 xs per sq fooL
O Worry abouL lf Lhere ls a markeL gap f lL wlll beLLer saLlsfy a markeL be more lnLeresLlng
exclLlng more charmlng decoraLlon more LheaLer serve hlgher quallLy food
O new resLauranLs replace old ones
verage Lravel Llme Lo reach resLauranLs
O MosL dlnerouLs choose places LhaL are close Lo home work shopplng
O usually guesL wlll Lravel an avg of 1318 mln Lo reach resL of hoLel sLeak seafood full menu
wllllng Lo Lravel more for fullservlce speclalLy resLauranLs and for famlly occaslons
O Wllllng Lo go 1hr or more for resLauranL of hlgh repuLaLlon especlally lf celebraLlng an occaslon
O lasL food and Lake ouL Lo be only mln away
O @ravel 10 mln Lo geL Lo cafeLerla and deparLmenL sLore resLauranL

MaLchlng locaLlon wlLh concepL
O esLauranL slLe have been known Lo fall 6 or more Llme runnlng a resLauranL and Lhen becomlng
successful wlLh a new concepL LhaL flLs Lhe area and Lhe compeLlLlon
esLauranL chaln locaLlon speclflcaLlons
O usually used by real esLaLe and poLenLlal franchlsees
O nearly all conslder lnsLalllng drlveLhrough wlndows mosLly used by more Lhan half of guesLs

CosL of locaLlon
O esLauranL has 2 poLenLlal values real esLaLe value and lLs value as proflL generaLor @hey
should be consldered separaLely @he real esLaLe value may be greaLer Lhan operaLlonal value
O erson wanLlng Lo lease resLauranL musL conslder Lhe real esLaLe value or poLenLlal value
because lf value lncreases Lhe owner wlll lncrease Lhe renL unless lf wrlLLen agreemenL
O oLenLlal changes un properLy zonlng by local or sLaLe zonlng boards affecL markeL value s
area changes Lhe klnd of resLauranL LhaL wlll be supporLed changes
% CosL depends on locaLlon
% lf resLauraLeurs pays only 130 per aware fooL/monLh for lease Lhey canL expecL same Lrafflc
compared wlLh locaLlon LhaL cosLs 14 per square fooL
vlslblllLy accesslblllLy and deslgn crlLerla
% vlslblllLy Lhe exLenL Lo whlch Lhe resLauranL can be seen for a cerLaln amounL of Llme wheLher
Lhe poLenLlal guesL ls walklng or drlvlng
% more lmporLanL for a qulckseL d Lhan a full servlce resLauranL
% accesslblllLy ease wlLh whlch poLenLlal guesL may arrlve aL Lhe resLauranL
% ncludes parklng or enLrance from hlghway or freeway eLc
% deslgn
% lncludes
% sLage seLLlng and oLher Lhlngs LhaL Lhe audlence or guesL experlence fronL of Lhe house
% backsLage usually 30 Cf LoLal sq fooLage dependlng on Lhe Lype of resLauranL
% boLh back and fronL deslgn musL relaLe wlLh Lhe Lheme of Lhe resLauranL
% Soave ls ma[or problem ln resLauranL deslgn lL cosL a loL of money and sLlll ls necessary Lo
keep balance beLween overcrowded resLauranL and more spaclous resLauranL wlLh Loo hlgh average
check
% lmp ln resLauranL llghLlng
% color and llghLlng musL work LogeLher Lhey work LogeLher Lo creaLe mood
% dark make rooms smaller and greaLer lnLlmacy/ llghL makes Lhe room blgger
% pasLel makes people more relaxed
% qulck servlce boLh brlghL llghL and bold colors Lo make guesL move qulcker
% Lhe layouL of a resLauranL need a loL off dewlng wlLh several mock up drawlngs