Chapter 2 Understanding Foodservice Operations. © Goodheart-Willcox Co., Inc. Objective Recognize...

Chapter 2Chapter 2

UnderstandinUnderstanding Foodservice g Foodservice Operations Operations

© Goodheart-Willcox Co., Inc.

ObjectiveObjective

• Recognize various types of foodservice establishments that employ chefs and cooks


Types of Foodservice Types of Foodservice EstablishmentsEstablishments

• Cooks and chefs work in– restaurants– hotels– clubs– catering operations– institutional

foodservice


RestaurantsRestaurants

• 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?


HotelsHotels

• Hotel dining options range from vending machines to numerous on-site restaurants of varying styles and cuisines


HotelsHotels

• Hotel restaurants provide service to registered guests as well as the community

• Many hotels operate room service and banquet facilities


Clubs 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


CateringCatering

• Catered events are often held in a hall or banquet facility

• Off-premise catering involves catering locations that do not normally serve food


Institutional FoodserviceInstitutional 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


ObjectiveObjective

• Compare the different forms of business ownership


Legal Forms of Business Legal Forms of Business Ownership Ownership

• The three main legal categories of ownership are– sole proprietorship– partnership– corporation


Sole ProprietorshipSole Proprietorship

• The owner of a sole proprietorship is personally responsible for all debts of the business

• Sole proprietors have final authority on all decisions


PartnershipPartnership

• 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


CorporationCorporation

• 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


ObjectiveObjective

• Explain the different ways foodservice businesses are organized


Organization of Foodservice Organization of Foodservice BusinessesBusinesses

• Foodservice businesses can be organized as– independent restaurants– chains– franchises


Independent RestaurantsIndependent 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?


ChainsChains

• 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?


FranchisesFranchises

• 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


ObjectiveObjective

• Summarize the risks and rewards of entrepreneurship


EntrepreneurshipEntrepreneurship

• Many entrepreneurs are attracted to foodservice businesses


EntrepreneurshipEntrepreneurship

• Successful chef-entrepreneurs must have– great culinary skills– business management expertise– the ability to see the larger business

environment and new opportunities


Risks and RewardsRisks and Rewards

• Risks of entrepreneurship– Repayment of debts if

the business fails– Restaurants have high

failure rates

• Rewards of entrepreneurship– Being your own boss– Financial gain– Personal and

professional pride


ReviewReview

• Name the types of foodservice establishments that employ chefs and cooks

– Restaurants, hotels, clubs, catering, institutional foodservice


ReviewReview

• Describe the difference between full-service 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


ReviewReview

• What is institutional foodservice?– Institutional foodservice supplies meals for

businesses and organizations that want to provide foodservice for employees and clients


ReviewReview

• 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


ReviewReview

• 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


ReviewReview

• 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


ReviewReview

• 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

Chapter 2 Understanding Foodservice Operations. © Goodheart-Willcox Co., Inc. Objective Recognize...

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