C-RESMT Module 2 - The Restaurant Business

CONCEPT

What kind of restaurant

PRODUCT

What are you selling

MARKET

Who are you selling to

PRICING

How much will guests spend

LOCATION

Where should the restaurant be

COMPETITION

Why should guests choose you

FINANCE

Can the business actually make money

PRODUCT + SERVICE

You offer:

Food • Beverages

But at the same time… You deliver:

Hospitality • Convenience • Atmosphere • Experience

WHAT MAKES RESTAURANTS DIFFERENT

• PRODUCTION & CONSUMPTION HAPPEN TOGETHER

• CAPACITY IS PERISHABLE

• DEMAND CHANGES CONSTANTLY

• IT IS PEOPLE-INTENSIVE

• CONSISTENCY IS DIFFICULT

• SMALL DECISIONS CAN HAVE BIG FINANCIAL EFFECTS

PRODUCTION & CONSUMPTION HAPPEN TOGETHER

The guest often experiences your product almost immediately after it is produced.

CAPACITY IS PERISHABLE

An empty table tonight cannot be stored and sold tomorrow.

DEMAND CHANGES CONSTANTLY

Lunch ≠ Dinner Monday ≠ Saturday

IT IS PEOPLE-INTENSIVE

Employees directly affect the customer experience.

CONSISTENCY IS DIFFICULT

Guests expect the same quality every time.

SMALL DECISIONS CAN HAVE BIG FINANCIAL EFFECTS

Waste • Portions • Scheduling • Discounts • Purchasing

WHY RESTAURANT MANAGEMENT IS DIFFICULT

• Guests waiting

• A missing employee

• A complaint

• A broken piece of equipment

• A late supplier

• A kitchen problem

• Rising food costs

• Slow sales

WHAT A RESTAURANT MANAGER ACTUALLY MANAGES

• PEOPLE- Employees • Guests • Suppliers

• OPERATIONS- Service • Production • Systems • Quality

• MONEY- Sales • Costs • Profit

• FACILITIES- Equipment • Layout • Maintenance • Safety

• EXPERIENCE- Service • Atmosphere • Satisfaction • Loyalty

FOUR FUNCTIONS OF MANAGEMENT

• PLANNING

• ORGANIZING

• LEADING

• CONTROLLING

PLANNING

What are we trying to achieve?

Concept • Goals • Forecasts • Budgets • Staffing

ORGANIZING

How will everything work?

People • Responsibilities • Systems • Schedules • Workflow

LEADING

How do we get people to perform?

Communication • Motivation • Training • Culture

CONTROLLING

Are we getting the results we expected?

Sales • Costs • Quality • Inventory • Guest Feedback

NOT ALL RESTAURANTS ARE THE SAME

DIFFERENT RESTAURANTS = DIFFERENT MANAGEMENT

• QUICK SERVICE- Speed • Volume • Consistency

• CASUAL DINING- Service • Experience • Value

• FINE DINING- Precision • Personalization • High Service Level

• BARS / LOUNGES- Beverage Revenue • Atmosphere • Night Operations

• FAST CASUAL- Efficiency + Higher Perceived Quality

• PREMIUM CASUAL- Higher Spend • Design • Experience

• CAFÉS / BAKERIES- Product • Convenience • Turnover

• SPECIALTY / CONCEPT RESTAURANTS- Differentiation • Experience • Identity

WHAT "SUCCESS" MEANS

• FINANCIAL- Sales • Costs • Profitability

• CUSTOMER- Satisfaction • Loyalty • Reputation

• OPERATIONS- Efficiency • Consistency • Quality

• PEOPLE- Productivity • Retention • Culture

• BUSINESS- Growth • Sustainability • Competitive Position

SALES ≠ PROFIT BUSY ≠ SUCCESSFUL