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FoodOps1
Introduction to Foodservice Operations
| Question | Answer |
|---|---|
| What are the events in history that most affected the foodservice industry? | First restaurants, automats, world war II, prohibition, refrigerators at home |
| Define Four top | table of four, party of four |
| What is a cover? | a customer |
| What is a dupe? | A ticket submitted to the kitchen by the waiter for the customer's order |
| What does fire mean? | Begin cooking food |
| Define food at home | food purchased and prepared at home by the consumer, regardless of where it’s consumed |
| Define food away from home | food purchased in a prepared state, regardless of where it’s consumed |
| What factors caused the increase of FAFH? (food away from home) | highways, women in the workforce, rise in income |
| What factors could cause the increase of FAFH in the future? | Lifestyle, household structure, cost of consumption |
| Give examples of fast casual restaurants | Panera, Chipotle, Baja Fresh |
| Give examples of family restaurants | Denny's, IHOP |
| Give examples of casual proper | Applebee's, Chili's, Outback, TGI Fridays |
| Give examples of upscale casual chains | PF Changs, Cheesecake Factory, Houston's |
| Give examples of quick-service snack | Starbuck's, Dunkin Donut's, Krispy-Kreme |
| Give examples of traditional QSR | McDonald's, Burger King, Wendy's, Yum! |
| Give examples of upscale restaurants | Per Se, Le Cirque, Daniel |
| Average Check Snack | 3-5 |
| Average Check QSR | 5-8 |
| Average Check Fast Casual | 8-12 |
| Average Check Family | 8-12 |
| Average Check Casual | 10-12 |
| Average Check Upscale casual | 15-25 |
| Average Check Luxury | 30+ |
| 4 basic attributes of a fast casual restaurant | Speed Customization Quality Higher price |
| 3 Types of Ownership | Franchise, Independent, Chain |
| Percent of restaurants that are independently owned | 70% |
| Positives of independent ownership: | consistency, supervision, creativity, quality, customer relationship |
| Negatives of independent ownership: | burn out, slow reaction to competition, limited capabilities & resources |
| Advantages of Chains: | Ready access to cash and credit Can experiment without great risk Can hire staff specialists Useful comparative financial information Purchasing power Standardization Controls |
| Disadvantages of Chains: | Bureaucratic rules and procedures can slow response times to market changes Motivating management |
| Top Ten Chains | McDonald's Subway Starbucks Burger King Wendy's Taco Bell Dunkin Donuts Pizza Hut KFC Applebee's |
| Advantages of Franchise: | Start-up assistance Franchisor-sponsored training and materials More revenue due to extensive advertising, name recognition, consistency of products and services Lower costs due to volume purchasing Tested operating procedures Motivated owners |
| Disadvantages of Franchise | Contracts restrict style and methods of operation, products and services, decor and furnishings, equipment Contract favors franchisor Difficult to react to environmental changes |
| What fees do franchises pay? | Development fee, Franchise fee, Advertising fee |
| Top Ten Chains | McDonald's Subway Starbucks Burger King Wendy's Taco Bell Dunkin Donuts Pizza Hut KFC Applebee's |
| What do managed services or foodservice contractors do? | Plan foodservice in large places like hospitals, sports centers, and colleges |
| Advantages of Franchise: | Start-up assistance Franchisor-sponsored training and materials More revenue due to extensive advertising, name recognition, consistency of products and services Lower costs due to volume purchasing Tested operating procedures Motivated owners |
| Disadvantages of Franchise | Contracts restrict style and methods of operation, products and services, decor and furnishings, equipment Contract favors franchisor Difficult to react to environmental changes |
| What fees do franchises pay? | Development fee, Franchise fee, Advertising fee |
| What do managed services or foodservice contractors do? | Plan foodservice in large places like hospitals, sports centers, and colleges |
| What are advantages of contract management services? | Large management companies have more resources to solve problems Can negotiate better deals with suppliers Greater efficiency, therefore lower overall cost Food service operated by experts |
| What are the disadvantages of contract management services? | Management companies assume too much control, affecting public image Dislike of profit-making business operating healthcare, educational, and other noncommercial programs May decrease f&b quality Institution may become dependent on the service |
| What are some non-alcholic trends? | Housemade soda, ice teas, lemonades, organic coffee |
| What are some alcohol trends? | Local beer and wine, culinary cocktails, food and beer pairings |
| What are the top trends overall? | Local, Healthy, Sustainable, Children nutrition, Gluten free |
| A franchise has to be apart of a chain, so is a chain apart of a franchise? | No |
| Prime Cost | Payroll + Cost of Sales |
| Name the Performance Indicators of Restaurants | Number of covers (hour, day, week, month) Average check Number of transactions Covers per employee Sales per server/employee Food/Beverage sales ratio (%) Sales per square foot / per seat RevPASH - Revenue per available seat hour |
| Food Cost is generally ___% of Total Food Sales | 28-32 |
| Define P+L | A financial statement that summarizes the revenues, costs and expenses incurred during a specific period of time - often a fiscal quarter or year |
| What question does the P+L answer? | "Am I Making Any Money?" |
| Is a P+L Statement necessary? | Yes it is the only financial statement required by the IRS |
| What does the guest control in the restaurant? | Sales |
| What does the Manager control? | Cost of Goods and Controllable Expenses |
| What are some examples of controllable expenses? | Payroll, Benefits, Direct Operating, Music, Marketing, Utilities, Administration and General, Repairs and Maintenance |
| What does the owner control? | Occupation costs, depreciation, interest |
| Food Sales Formula | (Beginning Inventory+ Food Sales) - Ending Inventory= COG - Adjustments = Total COG |
| Prime Cost Formula | COGS + Total Labor IN PERCENTS!! %%% |
| How can a restaurant reduce their costs? | Scheduling Reduce Waste Recipe Standardization Ingredient substitution/portion sizes Quality Control (temp. 32 vs 40 degrees) Better Cross utilization of ingredients |
| How can a restaurant increase net revenue? | Upselling items (appetizers, beverage, dessert) Reservation management Examine day parts Menu Design Specials with higher contribution margin |
| Average Check Formula | (Total Sales- Take-out)/# of covers |
| REVPASH Formula | Hours/Day * Seats * Hours/Seats, then Revenue/SeatHours |
| How many restaurants fail during the first year of operations? | 25% |
| Why do restaurants fail? | Financial: Revenue Model, Pricing, Control Capital Marketing: Slow to Adapt, Lack of clear concept Management: Motivation, Burnout, Lifestyle, Planning, Operational procedures |
| What are behavioral factors affecting product value? | Perception of fairness, utility is relative, salient reference prices, COGS perception |
| What are two psychological pricing methods? | Decoy effect, compromise effect |
| All Day | Total amount |
| Back of house | what isn't seen by guests, kitchen, offices etc |
| Comp | free meals given to guests |
| Cover | Customer |
| Deuce | Table party of 2 |
| Dupe | Check given to cooks from waiter for guest order |
| 86 | Off the menu for the time being |
| Expeditor | communicator between the kitchen and waiters |
| Fire | Start cooking |
| Front of house | what the guests see |
| No Call/No Show | reservation doesn't come |
| On the Fly | food needed ASAP |
| Sidework | what waiters do around the restaurant other than wait |
| Sommelier | Wine expert |
| Station | Place where you get stuff |
| Table turn | move one party out, bus and clean for next party |
| upsell | encourage guests to order more expensive items |
| Walk-in | no reservation |
| Well drink | mix drink with super cheap alc |
Created by:
studybuddy44
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